EU approves over $2 billion in economic support for Moldova
The Council of the EU gave its final approval to 1.9 billion euros (over $2 billion) in support for Moldova's EU-related reforms and economic growth, the council's press service announced on March 18.
The Reform and Growth Facility, which includes 1.5 billion euros ($1.6 billion) in low-interest loans and 385 million euros ($420 million) in grants, will cover the period of 2025-2027 and is part of the EU's long-term Moldova Growth Plan.
Brussels has ramped up support for Moldova over the past few years to help alleviate the regional impacts of Russia's war against Ukraine and help Chisinau on its path to membership. Moldova launched accession talks with the EU last June.
"Today we are helping Moldovans advance key socio-economic reforms, boost their economy and accelerate the country's accession to the EU," said Adam Szlapka, Poland's Europan affairs minister, in a statement.
"The new instrument will also strengthen Moldova's resilience by mitigating the impact of Russia's unjust war of aggression against Ukraine."
The newly approved tool marks the single largest support package provided to Moldova by the European bloc.
The facility will now be signed by the presidents of the European Parliament and the Council of the EU and enter into force a day after being published in the EU Official Journal.
Ukraine's neighbor Moldova has received Ukrainian refugees and repeatedly warned about Russia's attempts to destabilize the country, primarily through the Russian-occupied Moldovan region of Transnistria.
Transnistria has faced a major energy crisis after the halt of Russian gas supplies at the start of the year. While Moldova has pivoted to European gas supplies prior to the transit halt, it has also faced difficulties as it receives electricity from a gas-powered energy plant located in Transnistria.
Last month, the EU allocated 250 million euros ($273 million) to boost Moldova's energy independence and resilience.
Read also: 'Talk about an invasion is everywhere' — How Lithuania is preparing for war with Russia
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