How much money did the Republic of Moldova receive from external donors to manage the energy crisis
The government of the Republic of Moldova obtained, in 11 months of last year, from external donors non-refundable financial assistance in the amount of over 460 million euros to be able to deal with the energy crisis. The most money came from the European Commission – 125 million euros.
The information provided to Free Europe by the Ministry of Finance shows that 50 million euros of the amount offered by the European Commission have been allocated to carry out reforms in the energy sector and the governance of the financial sector.
Authorities have the use of financial resources to buy and store natural gas, to procure electricity, fuel oil and coal, as well as to compensate citizens for the increase in energy tariffs. For example, for the Energy Vulnerability Reduction Fund, the German government has provided 40 million euros that you do not have to pay back. The state budget approved for 2023 provides that this fund will constitute 5 billion lei (243 million euros), compared to 400 million lei (around 20 million euros) in 2020.
For the storage of natural gas in warehouses in Romania and Ukraine, the Chisinau authorities used the loan obtained in June 2022 from the European Bank for Reconstruction and Development (EBRD). At the beginning of this year, the state enterprise “Energocom” announced that all the money has already been spent, and the volume of gas stored is enough for the right bank of the Dniester to get through the winter season.
Starting from October 1, 2022, the Russian concern Gazprom reduced the supply of natural gas to the Republic of Moldova, which led to the onset of the energy crisis. Due to the gas shortage, Tiraspol has reduced the amount of electricity delivered to the right bank of the Dniester. Therefore, the Republic of Moldova was forced to buy energy from Romania and natural gas from the European Union at higher prices. Following further investigation, Chisinau gave Tiraspol all the gas coming from Russia in exchange for cheaper electricity.
The crisis led to a significant increase in energy tariffs for consumers, and the authorities decided to compensate the difference in bills, depending on the income of citizens, for this external aid.