EU disburses €75 million to Moldova to support societal and state resilience

Today, the EU has disbursed a €75 million budget support grant (in the form of a “State and Resilience Building Contract”) for the Republic of Moldova. This assistance package will support the country to cope with the multiple repercussions in the energy sector of the Russian military aggression against Ukraine. In particular, it will help mitigate the socio-economic consequences of the high energy prices on the most vulnerable citizens and alleviate the economic strain resulted from hosting and supporting refugees. It will also help building the long-term socio-economic recovery, energy security and energy transition of the Republic of Moldova.

This is the second budget support provided by the EU in the last 8 months to address rising energy costs, as well as the severe impact of Russia’s war against Ukraine. Together with the first assistance package of €60 million adopted in December 2021, it brings the European Union’s total budget support to the energy sector in Moldova to €135 million.

Commissioner for Neighbourhood and Enlargement,Olivér Várhelyi, announced this assistance package at the Ministerial Conference of the Moldova Support Platform on 15 July in Bucharest:”The EU stands by the Republic of Moldova in these difficult times. We continue to provide support to help the country deal with the severe impact of Russia’s war against Ukraine, notably in the field of energy security. European solidarity with the Republic of Moldova is unwavering.”

Today’s disbursement follows also the recent disbursement of €50 million in macro-financial assistance to the Republic of Moldova, of which €35 million in long-term loans on concessional terms and €15 million in grants. This is the first disbursement under the new Macro-Financial Assistance for Moldova worth €150 million, which entered into force on 18 July 2022 and is available for two and a half years.

The EU has also provided emergency assistance to the Republic of Moldovaincludes:                

• €13 million in humanitarian assistance, to provide emergency support at border crossing points, transit points and reception centres, as well as to ensure basic living conditions to refugees currently displaced in Moldova.
• €15 million to support the dignified and efficient processing of refugees and the secure transit and repatriation of third-country nationals, working closely with the International Organization for Migration (IOM).
• €15 million to support the EU Border Assistance Mission (EUBAM). The Mission has recently redirected its activities to assist the Moldovan border guards in managing the arrivals of refugees. The Mission will work hand in hand with Frontex, which is increasing its deployment in the country, following the Status Agreement on border management cooperation signed on 17 March 2022 by the EU and Moldovan authorities. EUBAMs mandate has also been enhanced, giving possibilities to obtain executive powers for border control. This will enable EUBAM staff to directly participate in border control if needed, and complement the border management teams of the European Border and Coast Guard Agency (Frontex).
• Through the EU Civil Protection Mechanism, already 19 countries (18 Member States plus Norway) have offered large quantities of shelter items, energy supply and medical aid. The Commission has also mobilised medical equipment from the rescEU medical stockpiles hosted by Hungary and the Netherlands.

In addition to the crisis management, the EU continues to support Moldova’s long-term resilience, in particular through the Eastern Partnership Economic and Investment Plan, aiming to mobilisearound €3.4 billion in public and privateinvestmentsfor five flagships: SME support, trade facilitation, energy efficiency, connectivity and human capital development. Last week the European Investment Bank and Moldova agreed €150 million loan to connect Moldova to the TEN-T network.

Background

Since 24 February 2022, Russia’s unprovoked and unjustified military aggression against Ukraine has had devastating consequences, in particular for the Ukrainian people. As more than 4 million refugees have fled the war, it has also posed a clear challenge for neighbouring countries. Since the beginning of the aggression, Moldova has welcomed a high number of refugees fleeing the Russian bombs. With one hundred thousand refugees from Ukraine currently in Moldova, it is the country with the most refugees per capita, while also having to manage twice as many refugees transiting through its territory.

Moldova Support Platform

The Moldova Support Platform is an inter-governmental instrument meant to help the country overcome the sizeable challenges stemming from the ongoing Russian invasion of neighbouring Ukraine. It was launched in Berlin on 5 April 2022. A follow-up conference on further support to Moldova was organised in Bucharest on 15 July. Until now, the international and bilateral donors pledged some €1.3 billion of additional assistance to Moldova under five priority areas – humanitarian assistance, border management, economic recovery and resilience, justice, energy. A sixth priority focusing on public administration reform and public finance management was added on the occasion of the second meeting of the Platform in Bucharest.

For more information: Moldova (europa.eu)