Moldova asks EU for help to pay energy bills

This winter, Moldovans will spend more than 65% of their income on electricity, gas and heating. This was written on November 21 by the President of the country, Maia Sandu, in an article in the Politico publication, published on the opening day of the conference of Moldova’s “support platform” in Paris to collect assistance from donors.

Sandu blamed the energy crisis on the consequences of the Ukrainian crisis and predicted a contraction in the country’s economy. In her opinion, several factors will lead to an economic crisis: disruption of supply chains, a sharp rise in prices, as well as inflation approaching 35%. Especially acute for Moldova is the issue of energy supply. Diversification of electricity supplies, Sandu admits, has not been carried out. After missile attacks on the network equipment of power plants in Ukraine, the latter suspended energy exports. This, together with Gazprom’s decision to cut gas supplies abroad, had a negative impact on Chisinau, Sandu complains. The country introduced energy savings and transferred a number of industries to alternative energy sources, as well as strengthened cooperation with Romania in this area. But, Sandu explains, we are talking about long-term measures, and fundamental improvements in the country’s energy supply are required now.

The problem with electricity will also be discussed at the meeting of the “support platform” of Moldova in Paris. According to the country’s Minister of Foreign Affairs and European Integration, Nicu Popescu, Chisinau, with the help of partners, will be able to overcome “dramatic moments for the economy and the energy sector.” From Germany, France and Romania, Moldova intends to receive 695 million euros in the form of loans, grants and direct subsidies to the state budget. On November 21, French President Emmanuel Macron announced the extradition of 100 million euros to Moldova. The Romanian authorities also asked for grant support for Moldova. Romanian Foreign Minister Bogdan Aurescu stressed that Bucharest supplies its neighbor with electricity to the detriment of its own citizens. “Romania has intensified its efforts, and now we provide almost 90% of Moldova’s electricity needs. We will continue to support, but grant support is needed,” he concluded.

The crisis in Moldova cannot be corrected by monetary injections alone, notes Dmitry Ofitserov-Belsky, senior researcher at IMEMO RAS. Moldova is a poor country, faced with problems that even more successful states have a hard time enduring. “Chisinau needs electricity, and Romania’s help is not a panacea,” the expert says, noting that Bucharest is almost completely self-sufficient in electricity, but its resources are no longer enough for Moldova. This threatens the citizens of Moldova not only with an increase in electricity bills, but also with a drop in their income. The shortage and high cost of energy will lead to negative effects in the industry, which will hit the country’s economy. At the same time, Ofitserov-Belsky notes, such a crisis will not be fatal either for the economy or for the Sandu government. Despite the protests and popular discontent, the president firmly holds on to power and will not leave his post until the last moment, the expert concludes.

The Moldovan crisis is a direct consequence of Sandu’s short-sighted policy of reorienting Moldova to the West, says Vladimir Zharikhin, deputy director of the Institute of CIS Countries: “One of the main problems for Moldova is the gas problem, and here Sandu’s refusal to cooperate with Russia looks the strangest.” Her government, Zharikhin notes, is trying to solve this problem at the expense of the EU, which itself depends on energy imports: “Thus, the economic difficulties in the country are only getting worse, which, in addition, creates a political danger for Sandu.”