Updated October 15, 2018
Moldova: An Overview
Moldova is one of three post-Soviet states, together with
Public opinion generally is critical of the country’s current
Ukraine and Georgia, seeking greater integration with the
course and government. Some 69% of respondents in the
West as it copes with separatist territories occupied by
recent poll said Moldova is going in the wrong direction;
Russian forces. A small, landlocked state, Moldova is
61% disapproved of the government, and 29% approved.
located near the Black Sea between Ukraine and Romania.
Public opinion toward President Dodon is almost equally
divided, appearing to reflect an overall split between
Politics
Western-leaning and Russian-leaning populations.
Observers consider Moldova a functioning democracy,
although it has faced numerous political challenges. Most
Figure 1. Moldova at a Glance
recently, in summer 2018, mass protests were held against a
court decision to annul the results of a snap mayoral
election in Chisinau, Moldova’s capital, which had been
won by an opposition leader. The court’s decision was
criticized by outside observers, including the European
Union and the United States.
The current government, formed in 2016, is led by Prime
Minister Pavel Filip of the Democratic Party of Moldova
(PDM). The PDM claims a pro-Western mantle, although
critics argue that the party primarily represents the interests
of its chairman, wealthy businessman Vladimir Plahotniuc.
Since 2016, Moldova has had a directly elected presidency.
In November 2016, the Russian-leaning Igor Dodon of the
Socialist Party was elected with 52% of the vote in a

Sources: Moldova National Bureau of Statistics and IMF (does not
second-round vote. The president has relatively limited
include Transnistria). Figure created by CRS.
formal powers, but Dodon has sought to expand them.
The PDM gained power after the previous government
The next parliamentary elections were to be held in
collapsed as the result of fallout from a massive bank fraud
November 2018, but in July 2018 the parliament voted to
case involving the alleged loss of some $1 billion,
delay the elections until February 2019. The Socialist Party
equivalent to more than 12% of Moldova’s gross domestic
is the country’s most popular party (with 32% support,
product (GDP). This was Moldova’s fourth pro-Western
according to a spring 2018 poll). The second most popular
ruling coalition to collapse since 2013. From 2001 to 2009,
party is the opposition Action and Solidarity Party (PAS),
Moldova was run by a reformed Communist Party. Pro-
with 15% support. PAS leader and ex-presidential candidate
Western forces won a contentious election in 2009, but
Maia Sandu supported the efforts of Andrei Năstase to
infighting, corruption, and popular protest gradually
claim the Chisinau mayor’s office in June 2018; their two
weakened their authority.
parties are expected to unite for the upcoming elections.
The ruling PDM is much less popular, with 8% support.
Transnistrian Conflict
Since independence, Moldova has coped with the secession
Although the PDM-led Cabinet and President Dodon have
of Transnistria, a Russian-backed territory with some 15%
been divided on several issues, they have cooperated in
of the country’s population and a substantial but faltering
support of a controversial new election code. The law
industrial base. Transnistria has economic relations with the
replaces a party-list system for elections with a mixed
European Union (EU), the destination for around half of
system of party lists and single-member districts. The
Transnistria-origin exports.
changes are said to favor the PDM and the Socialist Party at
the expense of smaller parties.
A political resolution to the Transnistrian conflict remains
distant. The Moldovan government supports the
In some cases, the Constitutional Court has ruled against
establishment of a “special status” for Transnistria within
Dodon. It has temporarily suspended him from office at
Moldova, but the Russia-backed Transnistrian authorities
least four times for not fulfilling what it said were his
have resisted an agreement. Russia has stationed around
constitutional duties. The suspensions permitted
1,500-2,000 forces in the region, a few hundred of which
parliamentary chairman Andrian Candu to appoint ministers
Moldova accepts as peacekeepers. Russia also has
and pass legislation while serving as interim president.
distributed Russian passports to residents.
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Moldova: An Overview
The conflict-resolution process operates in a “5+2” format
Liaison Office in Chisinau. Moldova participates in NATO-
under the chairmanship of the Organization for Security and
and U.S.-led military exercises and contributes troops to the
Cooperation in Europe (OSCE), with the OSCE, Russia,
NATO-led Kosovo Force, or KFOR.
and Ukraine as mediators and the EU and the United States
as observers. The process stalled in 2014 but resumed in
Moldova has a close relationship with Romania. Moldovans
2016, when Chisinau and Transnistria committed “to
are ethnically related to Romanians, and most of Moldova
engage in a substantive, result-oriented dialogue” that
was part of Romania from 1918 to 1940. Several hundred
focuses on a set of practical issues and confidence-building
thousand Moldovans are estimated to hold dual citizenship
measures known as the “package of eight.” In November
with Romania. Some Moldovans support unification with
2017, the sides agreed to address several issues related to
Romania, although most are opposed.
transit, education, agriculture, and telecommunications.
Moldova’s relationship with Russia remains difficult, even
Economy
as President Dodon has sought to improve ties. Since 2013-
Moldova is one of the poorest countries in Europe, although
2014, Russia has imposed bans on various Moldovan
it has made “significant progress in reducing poverty and
agricultural products, including wine and fruit (some of
promoting inclusive growth since the early 2000s,”
these bans have been partially lifted or periodically recur).
according to the World Bank. Since 2010, Moldova’s GDP
In May 2017, Moldova’s Constitutional Court ruled that the
growth has averaged around 4.5% a year; it is forecast to
presence of Russian troops in Moldova is unconstitutional.
grow between 3.5% and 4% a year in 2018 and 2019.
Two months later, the Moldovan parliament adopted a
Agriculture, especially fruit and wine, plays an important
declaration calling on Russia to withdraw its troops. In June
role in Moldova’s economy. The sector, together with agro-
2018, the U.N. General Assembly passed a resolution
processing, makes up approximately one-third of GDP and
calling on Russia to withdraw from Transnistria
“unconditionally and without further delay.”
one-third of the labor force. Moldova also depends on

remittances from labor migration which, over the last five
years, have equaled almost a quarter of GDP.
In August 2018, the OSCE expressed concern about
“unsanctioned military exercises” of Russian military forces
In 2017, Moldova’s top five merchandise trading partners
in Transnistria. The exercises involved practice crossings of
were Romania (18%), Russia (11%), Ukraine (8%), Italy
the Dniester river, which serves as the main boundary
(8%), and Germany (8%). As a whole, the EU accounted
between Transnistria and the rest of Moldova.
for 55% of Moldova’s total trade.
In February 2018, Moldova passed legislation that
Foreign Policy
effectively bans Russian news broadcasts, and its
Moldova pursues a pro-Western foreign policy. However,
parliament adopted a declaration accusing Russia of
unlike the similarly pro-Western Ukraine and Georgia,
political interference and cyberattacks.
Moldova has proclaimed neutrality. The pro-Russian
U.S. Relations
President Dodon has been at odds with the rest of the
government, which has sought closer relations with NATO
The United States and Moldova enjoy good relations. In
and the West while seeking to reduce Russian influence. A
2013, then-Secretary of State John Kerry visited Moldova
sizeable number of Moldovans support closer relations with
to congratulate the country on initialing its AA with the EU.
Russia; in the above-mentioned poll, 46% of respondents
In February 2018, the co-chairs of the Congressional
supported membership in the EU and 36% supported
Moldova Caucus introduced a resolution supporting
Moldova’s sovere
membership in the Russia-led Eurasian Economic Union.
ignty and territorial integrity and an
enhanced U.S.-Moldova partnership (H.Res. 745). In
The EU’s main framework for engagement with Moldova is
September 2018, a related resolution was introduced in the
the EU-Moldova Association Agreement (AA), which
Senate (S.Res. 629).
entered into force in 2016 and includes a free-trade
agreement. The EU also has granted Moldovan citizens
The United States has increased assistance to Moldova in
visa-free travel. The EU is a major provider of financial
recent years: $45 million in FY2016 and $57 million in
assistance to Moldova. In September 2017, the EU stated
FY2017. For FY2018-FY2019, the Senate Appropriations
that the disbursement of a new assistance program would be
Committee recommended allocating $59 million and $52
conditional on respect for “effective democratic
million, respectively. In 2010, Moldova received a five-year
mechanisms” and implementation of specified reforms.
$262 million agriculture and infrastructure grant from the
Millennium Challenge Corporation.
The EU supports conflict management through its Border
Assistance Mission to Moldova and Ukraine, which seeks
The State Department’s 2018 Trafficking in Persons Report
to help the two countries combat transborder crime,
notes that Moldova is “a source country for men, women,
facilitate trade, and resolve the conflict with Transnistria,
and children subjected to sex trafficking and forced labor.”
which shares a long border with Ukraine.
Cory Welt, Analyst in European Affairs
Although Moldova does not aspire to join NATO, it
maintains close relations with the alliance. NATO-Moldova
IF10894
cooperation is structured around an Individual Partnership
Action Plan. In December 2017, NATO opened a NATO
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Moldova: An Overview


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