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Updated April 18, 2019
Moldova: An Overview
Moldova is one of three post-Soviet states, together with
Figure 1. Moldova at a Glance
Ukraine and Georgia, that have sought greater integration
with the West while coping with separatist territories
occupied by Russian forces. Moldova is located near the
Black Sea between Ukraine and Romania.
Politics
Moldova held parliamentary elections on February 24,
2019. Elections to the 101-seat legislature did not produce a
clear victor, and coalition negotiations continue. If no
agreement is reached, Moldova’s president may dissolve
parliament in mid-June 2019 and hold new elections.
Four parties and electoral blocs entered parliament (see
Table 1). President Igor Dodon’s Socialist Party, an
economically left, socially conservative, pro-Russian party,
came in first. The incumbent Democratic Party of Moldova
(PDM) came in second; the PDM claims a center-left, pro-
Western mantle, but critics argue that it primarily represents
Source: Moldova National Bureau of Statistics and IMF (does not
the interests of its chairman, wealthy businessman Vladimir
include Transnistria). Figure created by CRS.
Plahotniuc. A Western-leaning reform alliance, ACUM (or
“Now”), came in third. The Shor Party, led by a regional
Although the PDM-led Cabinet and President Dodon have
mayor who is appealing a seven-year prison sentence for
been divided on several issues, they cooperated before
bank fraud, placed fourth.
elections to revise Moldova’s election code. The new law
replaced the pure party-list system with a mixed system that
Table 1. February 2019 Parliamentary Elections
includes single-member districts. Many observers predicted
Party
Single Mandate
Total
this change would favor the ruling PDM and the Socialist
Party
List (%)
Seats
Seats
Party at the expense of ACUM. In the February 2019
elections, the PDM and the Socialist Party each won 17
Socialists
31%
17
35
single-member seats, and ACUM won 12, despite placing
PDM
24%
17
30
second in the party-list vote.
ACUM
27%
12
26
Shor Party
8%
2
7
The PDM gained power in 2016 after the previous
Independents
—
3
3
government collapsed amid fallout from a massive bank
fraud case involving the alleged loss of some $1 billion,
International observers said the elections were competitive
but “tainted by allegations of pressure on public employees,
equivalent to more than 12% of Moldova’s gross domestic
product (GDP). Pro-Western forces had won a contentious
strong indications of vote buying, and the misuse of state
resources.”
election in 2009, but infighting, corruption, and popular
The U.S. Department of State said it shared
protest gradually weakened their authority. From 2013 to
observers’ concerns about election improprieties.
2016, four pro-Western ruling coalitions collapsed in
succession. From 2001 to 2009, Moldova was run by a
Before the 2019 elections, Moldova’s political environment
reformed Communist Party.
was already contentious. In summer 2018, mass protests
were held against a court decision to annul the results of a
Transnistrian Conflict
snap mayoral election in Chisinau, Moldova’s capital,
Since becoming independent in 1991, Moldova has coped
which had been won by Andrei Năstase, who later became
with the secession of Transnistria, a Russian-backed
one of ACUM’s two co-leaders. The court’s decision was
territory with more than 10% of the country’s population
criticized by outside observers, including the European
and a substantial but faltering industrial base. Despite its
Union and the United States.
separatist status, Transnistria has economic relations with
the European Union (EU), the destination for more than
Moldova has had a directly elected presidency since 2016.
half of its exports.
In November 2016, Igor Dodon was elected with 52% of
the vote in a second round. Maia Sandu, who later became a
A political settlement to the Transnistrian conflict remains
co-leader of ACUM, came in second place with 48% of the
distant. The Moldovan government supports the
vote. President Dodon has sought to expand the relatively
establishment of a “special status” for Transnistria within
limited formal powers of the presidency.
https://crsreports.congress.gov
Moldova: An Overview
Moldova, but the Russia-backed Transnistrian authorities
facilitate trade, and resolve the conflict with Transnistria,
have resisted an agreement. Russia has stationed
which shares a long border with Ukraine.
approximately 1,500-2,000 forces in the region, a few
hundred of which Moldova accepts as peacekeepers. Russia
Although Moldova does not aspire to join NATO, it
also has distributed Russian passports to residents.
maintains close relations with the alliance. NATO-Moldova
cooperation is structured around an Individual Partnership
The conflict-resolution process operates in a “5+2” format
Action Plan. Moldova participates in NATO- and U.S.-led
under the chairmanship of the Organization for Security and
military exercises and contributes troops to the NATO-led
Cooperation in Europe (OSCE), with the OSCE, Russia,
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 related to Romanians by ethnicity and language, and
engage in a substantive, result-oriented dialogue” that
most of Moldova was part of Romania from 1918 to 1940.
focuses on a set of practical issues and confidence-building
At least half a million Moldovans are estimated to hold dual
measures known as the “package of eight.” Since then, the
citizenship with Romania, an EU member. Some
sides have resolved several issues related to transit,
Moldovans support unification with Romania, although
education, and agriculture.
most are opposed.
Economy
Moldova’s relationship with Russia remains difficult, even
as President Dodon has sought to improve ties. Since 2013-
Moldova is one of the poorest countries in Europe, although
it has made “significant progress in reducing poverty and
2014, Russia has imposed bans on various Moldovan
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
growth has averaged around 4.3% a year; it is forecast to
In 2017, Moldova’s Constitutional Court ruled that the
grow between 3.5% and 4% a year in 2019 and 2020.
presence of Russian troops in Moldova was
unconstitutional. The Moldovan parliament then adopted a
Agriculture, especially fruit and wine, plays an important
role in Moldova’s economy.
declaration calling on Russia to withdraw its troops. In June
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
one-third of the labor force. Moldova also depends on
“unconditionally and without further delay.”
remittances from labor migrants, which have equaled
almost 20% of GDP over the past five years.
In August and September 2018, the OSCE expressed
concern about “unsanctioned military exercises” of Russian
In 2018, Moldova’s top-five merchandise trading partners
military forces in Transnistria, which involved practice
were Romania (18%), Russia (11%), Germany (8%), Italy
crossings of the Dniester river, the primary boundary
(8%), and Ukraine (8%). As a whole, the EU accounted for
between Transnistria and the rest of Moldova.
56% of Moldova’s total trade and 70% of its exports.
Foreign Policy
In 2018, Moldova passed legislation to effectively prohibit
Russian television news broadcasts, and its parliament
Moldova pursues a pro-Western foreign policy. Unlike the
adopted a declaration accusing Russia of political
similarly pro-Western Ukraine and Georgia, however,
interference and cyberattacks.
Moldova is a constitutionally neutral state. The pro-Russian
President Dodon has been at odds with the rest of the
U.S. Assistance
government, which has sought closer relations with NATO
In March 2019, U.S. Ambassador to Moldova Derek Hogan
and the West while seeking to reduce Russian influence. A
called on Moldova’s “newly elected officials to choose the
sizeable number of Moldovans support closer relations with
common good over self-interest.” He said that the United
Russia; in a 2018 poll, 46% of respondents supported
States “stands ready to partner with whatever government is
membership in the EU and 39% supported membership in
formed” to “improve the lives of every Moldovan citizen.”
the Russia-led Eurasian Economic Union.
In recent years, the United States has increased assistance to
Moldova: $45 million in FY2016, $66 million in FY2017,
The EU’s main framework for engagement is the EU-
and $74 million in FY2018. The Trump Administration’s
Moldova Association Agreement (AA), which entered into
FY2020 request is $22 million.
force in 2016 and includes a free-trade agreement. The EU
also has granted Moldovans visa-free travel. The EU is a
During the 115th Congress, parallel resolutions were
major provider of financial assistance to Moldova, but in
introduced in the House and Senate to support Moldova’s
November 2018, it stated that a €100 million macro-
sovereignty and territorial integrity, as well as an enhanced
financial assistance program, which had been made
conditional on respect for “effective democratic
U.S.-Moldova partnership (H.Res. 745, S.Res. 629).
mechanisms” and implementation of reforms, would be
suspended and other aid reduced.
Cory Welt, Specialist in European Affairs
IF10894
The EU supports conflict management through its Border
Assistance Mission to Moldova and Ukraine, which seeks
to help the two countries combat transborder crime,
https://crsreports.congress.gov
Moldova: An Overview
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