EU to the Rescue: €30 Million Emergency Aid to Tackle Transnistria's Energy Crisis
EU | January 28, 2025, Tuesday // 09:37| views
The European Union (EU) has announced a €30 million emergency aid package to help Moldova address a worsening energy crisis caused by Gazprom's decision to halt gas supplies to the country. This funding will be used to secure natural gas and restore heating and electricity to more than 350,000 residents in Transnistria, an area that has been severely affected by the disruption. The EU's assistance will continue until February 10, 2025, and it will also facilitate the flow of electricity between the Left and Right Banks of the Dniester river.
This new financial support is part of a broader EU effort to stabilize Moldova’s energy sector. Since 2021, the EU has already provided Moldova with €240 million in budget support, as well as €67 million in grants for improving energy efficiency and supporting vulnerable citizens. The Energy Vulnerability Reduction Fund (EVRF) has aided more than 750,000 households during the current heating season.
Moldova has also been working to reduce its dependence on Russian energy, and since 2022, its electricity grid has been connected to the European network, increasing the country’s energy security. The EU has supported this shift by increasing export capacity to Moldova and ensuring that the Right Bank no longer relies on Russian gas. Despite these efforts, the recent halt in Gazprom's gas supply has left Transnistria, a Russian-speaking breakaway region of Moldova, in urgent need of external assistance.
To address the immediate crisis, the EU has pledged to provide both natural gas and possibly coal supplies from Ukraine. Moldova will purchase the necessary gas from Ukrainian or European providers to ensure continued power and heating in Transnistria and the Right Bank. Moldova’s Prime Minister Dorin Recean confirmed that the temporary solution will involve supplying 3 million cubic meters of natural gas to Transnistria, ensuring the region’s gas system remains functional until the end of January 2025.
As part of a broader intervention, the EU will also help Moldova purchase discounted gas from February 1 through 10, 2025. These measures will ensure that the energy crisis does not spiral out of control while providing Moldova with the necessary support to maintain stability in Transnistria.
The gas supply from Moldova to Transnistria is seen as a temporary measure to alleviate the energy shortages. Moldova’s President Maia Sandu, in talks with Ukrainian President Volodymyr Zelensky, discussed the possibility of Ukraine supplying coal for the region's major power plants.
The crisis in Transnistria was triggered when Gazprom stopped supplying gas to the region on January 1, 2025, due to an outstanding debt of 9 million. Moldova has accused Russia of deliberately creating a humanitarian crisis to destabilize the country. Meanwhile, Russia has placed the blame on Moldova and Ukraine for the disruption.
While Moldova has secured some relief from the EU’s emergency funding, long-term energy stability remains a key concern. The EU is working with Moldova on a more comprehensive assistance package aimed at mitigating the social impact of the crisis and ensuring energy resilience for the future.
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