Updated November 27, 2020
Moldova: An Overview
Moldova is one of three post-Soviet states—together with
of some $1 billion, equivalent to more than 12% of
Ukraine and Georgia—that has sought greater integration
Moldova’s gross domestic product (GDP).
with the West while dealing with separatist territories
occupied by Russian forces. Many Members of Congress
Many observers say the PDM and its former leader
have long supported Moldova’s democratic trajectory and
Vladimir Plahotniuc, a wealthy businessman, “captured”
territorial integrity and have called on Russia to respect
Moldova’s state institutions for personal and party gain. In
Moldova’s sovereignty and withdraw its military forces.
2019, the PDM failed in an effort to use Moldova’s
Constitutional Court to block the Sandu government from
2020 Presidential Election
coming to power. Plahotniuc subsequently left the country
In November 2020, a reform-oriented, pro-European
and has been indicted for financial crimes.
candidate, former prime minister Maia Sandu, was elected
Moldova’s president. Moldova’s presidency has relatively
In November 2019, the Sandu government fell after the
limited powers under the country’s parliamentary system,
Socialists initiated a no-confidence vote against Sandu for
but the position also holds symbolic importance.
seeking to grant herself greater control over the
appointment of the country’s prosecutor-general. Sandu
Sandu defeated incumbent President Igor Dodon, 58% to
reportedly made the move because she feared Dodon and
42%, in a second-round vote (in the first round, Sandu beat
the Socialists were seeking to sabotage judicial reforms.
Dodon, 36% to 33%). Dodon is the de facto leader of the
Russian-leaning, socially conservative Party of Socialists,
A new government led by Ion Chicu, a former finance
the ruling party. The election was a rematch of Moldova’s
minister with ties to Dodon, formed with PDM support.
first direct presidential election in 2016 when Dodon
Some PDM members left the party to form a new
defeated Sandu, 52% to 48%.
parliamentary faction. In March 2020, the PDM officially
joined the Chicu government but withdrew in November
Before the election, polls suggested the outcome was
2020. Sandu and other politicians have called for new
uncertain. Some observers thought Dodon had an
parliamentary elections. It is unclear if the Chicu
advantage. Factors contributing to this perception included
government will retain enough support to remain in power.
the Socialists’ control of major media organizations and the
anticipated manipulation and mobilization of pro-Russian
Transnistrian Conflict
voters in Moldova’s breakaway region of Transnistria and
Since Moldova gained independence in 1991, it has coped
among Moldovan voters in Russia. In October 2020, a joint
with the de facto but limited secession of Transnistria, a
Moldovan-Russian nongovernmental investigation alleged
Russian-backed region with at least 10% of Moldova’s
that Dodon’s campaign had received support from Russia’s
population and a substantial industrial base. Moldovan
foreign intelligence service.
authorities support a special governance status for
Transnistria, but Russia and authorities in Transnistria have
Sandu’s campaign targeted the government’s alleged
resisted making an agreement on such a status.
economic mismanagement and poor COVID-19 pandemic
response. In addition, Sandu accused Dodon and other
Despite its separatist tendencies, Transnistria has strong
government officials of corruption. Sandu also appeared to
economic links with both Moldova and the European Union
benefit from the divided vote of supporters of third-place
(EU), the destination for about half of its exports. Residents
finisher Renato Usatii, who is generally considered pro-
may vote in Moldovan elections at polling stations outside
Russian but criticized Dodon. Ultimately, Sandu’s margin
Transnistria; some 31,000 were reported to have voted in
of victory was expanded significantly by heavy turnout
the second round of the 2020 presidential election.
among Moldovan voters in Europe. Voters abroad made up
16% of total turnout; 93% of them voted for Sandu.
Russia stations about 1,500 soldiers in Transnistria, a few
hundred of which Moldova accepts as peacekeepers. In
Political Background
2017, Moldova’s Constitutional Court ruled that Russia’s
Moldova’s political environment has been contentious for
non-peacekeeping troop presence was unconstitutional, and
years. After parliamentary elections in 2019, Sandu served
its parliament adopted a declaration calling on Russia to
as prime minister in a short-lived coalition government of
withdraw these forces. In 2018, the U.N. General Assembly
ACUM (“Now”)—a reform-oriented, Western-leaning
passed a resolution calling on Russia to withdraw its troops
alliance that she co-led—and the Socialists. The uneasy
from Moldova “unconditionally and without further delay.”
alliance, which formed in June 2019 after a three-month
stalemate, unseated the formerly ruling Democratic Party of
A conflict-resolution process that was renewed in 2011
Moldova (PDM). The PDM gained power in 2016 amid
operates in a “5+2” format under the chairmanship of the
fallout from a bank fraud scandal involving the alleged loss
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Moldova: An Overview
(OSCE), with the OSCE, Russia, and Ukraine as mediators
unlikely to stand aside in 2019 as the Sandu government
and the EU and the United States as observers. The EU also
implemented reforms that could help promote Moldova’s
supports conflict management through a Border Assistance
European integration. The dismissal of the Sandu
Mission to Moldova and Ukraine (EUBAM), which seeks
government that year reinforced such concerns, although
to help combat transborder crime, facilitate trade, and
Russia did not openly play a role in the affair. During
resolve the conflict over Transnistria.
Moldova’s 2020 election campaign, Russian officials
appeared to support Dodon and accused the United States
In 2016, the Moldovan government and Transnistrian
of plotting his overthrow. Overt Russian interference was
leaders committed “to engage in a substantive, results-
not evident, however, and turnout among Moldovan voters
oriented dialogue” focused on a set of practical issues and
in Russia and Transnistria was relatively low.
confidence-building measures. The sides resolved several
issues related to transit, education, agriculture, and the
Economy
recording of civil statistics. In 2020, restrictions related to
One of Europe’s poorest countries, Moldova has made
the COVID-19 pandemic slowed dialogue, but in July 2020,
“significant progress in reducing poverty and promoting
the two sides agreed to discuss issues related to transit,
inclusive growth,” according to the World Bank. Moldova’s
telecommunications, and financial connectivity.
annual GDP growth has averaged about 4.2% since 2016.
Due to the impact of the COVID-19 pandemic, GDP
Figure 1. Moldova at a Glance
growth is expected to decline by 3%-4% in 2020.
Agriculture and food processing account for more than 15%
of GDP and more than a quarter of Moldova’s labor force.
It is estimated that up to one million Moldovan citizens live
abroad. In recent years, labor remittances have been
estimated at more than 15% of GDP. In 2019, Moldova’s
top-five merchandise trading partners were Romania (19%),
Russia (11%), Germany (8%), Italy (8%), and Ukraine
(8%). As a whole, the EU accounted for 66% of Moldova’s
exports and 55% of its total trade.
U.S. Relations
U.S. assistance to Moldova was $74 million in FY2018,
$56 million in FY2019, and an estimated $48 million in
FY2020. The United States supports OSCE-led negotiations
on Transnistria.
In November 2019, the U.S. Embassy in Moldova said the

dismissal of the Sandu government was “unfortunate” and
Source: Moldova National Bureau of Statistics and IMF (does not
that “Moldovans deserve leaders who will work for the
include Transnistria). Figure created by CRS.
good of the country and will free it from the corruption that
Foreign Policy
has prevented Moldova from reaching its potential.” In
November 2020, the U.S. Embassy issued a statement
Moldova generally has pursued a pro-European foreign
congratulating Sandu “on her historic achievement as
policy, although the Socialist Party and many Moldovans
Moldova’s first female elected president.” The Embassy
support a closer relationship with Russia. Moldova is a
stated that the United States would “robustly support”
constitutionally neutral state and does not aspire to join
Moldova’s reform, security, and public health efforts.
NATO. Moldova maintains close relations with NATO and
the EU and, especially, NATO and EU member Romania,
The United States has taken action against former PDM
although disputes with the latter have arisen under Dodon.
leader Plahotniuc. In January 2020, the United States
Moldovans are related to Romanians by ethnicity and
imposed a visa ban on Plahotniuc (and his family) for
language; between half a million to one million Moldovans
involvement in “corrupt acts that undermined the rule of
are estimated to hold Romanian citizenship.
law and severely compromised the independence of
democratic institutions in Moldova.” U.S. Secretary of State
The main framework for EU-Moldova relations is an
Michael Pompeo said the visa ban “sends a strong signal
Association Agreement, which entered into force in 2016
the United States does not tolerate corruption and stands
and includes a free-trade agreement. The EU also provides
with the people of Moldova in their fight against it.” In
Moldovans visa-free entry to most member states. The EU
March 2020, the U.S. Embassy in Moldova confirmed
suspended financial assistance to Moldova under the PDM
reports that Plahotniuc had entered the United States prior
government but resumed assistance in 2019 under the
to the imposition of the visa ban and that proceedings to
Sandu government. An EU spokesperson said the dismissal
deport him were underway. Subsequent reports indicated
of the Sandu government in 2019 sent “worrying signals for
that Plahotniuc was unsuccessful in an effort to seek
the reform process in the country.”
political asylum in the United States.
Looming over Moldova’s development, and of interest to
many in Congress, is the question of Russia’s influence and
Cory Welt, Specialist in Russian and European Affairs
intentions. Many observers believed that Russia was
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Moldova: An Overview


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