Updated August 27, 2021
Moldova: An Overview
Moldova is one of three post-Soviet states—together with
center-left PDM gained power in 2016 amid fallout from a
Ukraine and Georgia—that has sought greater integration
bank fraud scandal involving the alleged loss of some $1
with the West while dealing with separatist territories
billion, equivalent to more than 12% of Moldova’s gross
occupied by Russian forces. Many Members of Congress
domestic product (GDP). Many observers say the PDM and
have long supported Moldova’s democratic trajectory and
its former leader Vladimir Plahotniuc, a wealthy
territorial integrity and have called on Russia to respect
businessman, “captured” Moldova’s state institutions for
Moldova’s sovereignty and withdraw its military forces.
personal and party gain. In 2019, Plahotniuc left the
country; he has been indicted for financial crimes.
Moldova’s political environment has been contentious for
years. However, the twin victories of reformist Maia Sandu
Figure 1. Moldova at a Glance
in the 2020 presidential elections and her pro-European
Party of Action and Solidarity (PAS) in 2021 snap
parliamentary elections point to renewed efforts to
reinvigorate Moldova’s governance reforms and boost its
European integration efforts. PAS’s victory ends years of
rule by shifting and unstable parliamentary coalitions that
often included allegedly corrupt political forces.
2020 Presidential Election
In November 2020, Maia Sandu was directly elected as
Moldova’s president. Moldova’s presidency has relatively
limited powers under the country’s parliamentary system,
but the position holds symbolic importance. Sandu defeated
incumbent President Igor Dodon, 58% to 42%, in a second-
round vote. Dodon is the de facto leader of the Russian-
leaning, socially conservative Party of Socialists.

Before the election, some observers thought Dodon had an
Source: Figure created by CRS using Moldova National Bureau of
advantage due to the Socialists’ control of major media
Statistics and World Bank (does not include Transnistria).
organizations and the anticipated manipulation and

mobilization of pro-Russian voters in Moldova’s breakaway
2021 Snap Parliamentary Elections
region of Transnistria and among Moldovans in Russia.
At the end of 2020, Sandu, the PAS, and the Socialists all
expressed support for snap parliamentary elections, as a
Sandu’s campaign targeted the government’s alleged
stable majority did not exist. A temporary stalemate
economic mismanagement and poor COVID-19 pandemic
followed, however, as the Socialists and its allies sought to
response. In addition, Sandu accused Dodon and other
retake power. In February 2021, as part of an agreed plan
government officials of corruption. Sandu’s margin of
for calling snap elections, the parliament rejected Sandu’s
victory was expanded significantly by heavy turnout among
nomination of the PAS-backed Natalia Gavrilita as prime
Moldovan voters in Europe. Voters abroad made up 16% of
minister. The Socialists then unexpectedly nominated
total turnout; 93% of them voted for Sandu (relatively few
another candidate, who claimed the support of a majority in
Russia-based voters participated in the election).
parliament. Sandu rejected this candidate, stating that his
list of supporters had been secured by corrupt means and, in
Prior to the 2020 election, Sandu had served briefly as
any case, did not represent an official majority faction.
prime minister in a coalition government comprising a
political bloc she co-led and the Socialists. This uneasy
After the parliament failed to support a second presidential
coalition formed in 2019 to unseat the formerly ruling
nominee, President Sandu requested the Constitutional
Democratic Party of Moldova (PDM), which failed in an
effort to use Moldova’s Constitutional Court to block the
Court pronounce she had the right to dissolve parliament
and hold snap elections. The Court ruled affirmatively and
Sandu government from coming to power. In November
opposed two more Socialist efforts to forestall new
2019, the Sandu government fell after the Socialists
elections—the imposition of a state of emergency, allegedly
initiated a no-confidence vote, and a new Socialist-backed
related to the COVID-19 pandemic, and an effort to remove
government formed with PDM support.
the Constitutional Court chairman.
These developments followed a period of concern over
In April 2021, Sandu dis solved parliament and scheduled
alleged deterioration of the rule of law in Moldova. The
snap parliamentary elections for July 11, 2021. Sandu’s
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Moldova: An Overview
pro-European PAS won the elections with 53% of the vote
Moldova is a constitutionally neutral state and does not
and 63 of 101 seats. In August 2021, the newly constituted
aspire to join NATO. Moldova maintains close relations
parliament confirmed a government led by Prime Minister
with NATO and the EU and, especially, Romania, a NATO
Natalia Gavrilita.
and EU member. Moldovans are related to Romanians by
ethnicity and language. According to Romanian authorities,
A Socialist-led bloc came in second place, with 27% of the
more than 640,000 Moldovans have Romanian citizenship.
vote and 32 seats. The third party to enter parliament, the
Shor Party, is officially led by a wanted political and
The main framework for EU-Moldova relations is an
business figure who fled Moldova in 2019 while appealing
Association Agreement that includes a free-trade
a seven-year prison sentence for his alleged role in
agreement. The EU also provides Moldovans visa-free
Moldova’s $1 billion bank fraud. The PDM received less
entry to most member states.
than 2% of the vote and did not enter parliament.
Looming over Moldova’s development, and of interest to
Transnistrian Conflict
many in Congress, is the question of Russia’s influence and
Since Moldova gained independence in 1991, it has coped
intentions. During Moldova’s 2020 presidential election,
with the de facto Russian-backed secession of Transnistria,
Russian officials appeared to support Dodon and accused
a multiethnic and predominantly Russian-speaking region
the United States of plotting his overthrow. Overt Russian
with about 10% of Moldova’s population and a substantial
interference was not evident, however, and turnout among
industrial base. Moldovan authorities support a special
Moldovan voters in Russia and Transnistria was relatively
governance status for Transnistria, but Russian authorities
low, as was the case in the 2021 parliamentary elections.
and authorities in Transnistria have resisted making an
Some observers concluded that the Russian government had
agreement on such a status.
“abandoned” Dodon and the Party of Socialists.
Despite its separatist tendencies, Transnistria has strong
Economy
economic links with the rest of Moldova and the European
One of Europe’s poorest countries, Moldova has made
Union (EU), the destination for more than half of its
“significant progress in reducing poverty and promoting
exports. Residents who have retained Moldovan citizenship
inclusive growth,” according to the World Bank. Moldova’s
may vote in Moldovan elections at polling stations outside
annual GDP growth averaged about 4.2% from 2016 to
Transnistria; some 28,000 such residents of Transnistria
2019. Due to the impact of the COVID-19 pandemic, GDP
voted in Moldova’s 2021 snap parliamentary elections.
growth declined by 7% in 2020. It is estimated that at least
one million Moldovan citizens live abroad. In recent years,
Russia stations about 1,500 soldiers in Transnistria, a few
labor remittances have been estimated at more than 15% of
hundred of which Moldova accepts as peacekeepers. In
GDP. As a whole, in 2020, the EU accounted for 67% of
2017, Moldova’s Constitutional Court ruled that Russia’s
Moldova’s exports and 52% of its total trade.
non-peacekeeping troop presence was unconstitutional. In
U.S. Relations
2018, the U.N. General Assembly passed a resolution
calling on Russia to withdraw its troops from Moldova
Moldova is the third highest recipient of U.S. foreign aid in
“unconditionally and without further delay.”
Europe and Eurasia. U.S. bilateral assistance to Moldova

was $56 million a year in FY2019 and FY2020 and $54
A conflict resolution process operates in a “5+2” format
million in FY2021. For FY2022, the Administration’s
under the chairpersonship of the Organization for Security
budget request includes $55 million in bilateral aid.
and Cooperation in Europe (OSCE), with the OSCE,
Russia, and Ukraine as mediators and the EU and the
In November 2020, the U.S. Embassy congratulated Sandu
“on her historic achievement as Moldova’s first female
United States as observers. The EU also supports conflict
elected president”
management through the EU Border Assistance Mission to
and said the United States would
“robustly support” Moldova’s reform, security, and public
Moldova and Ukraine, which seeks to help the two
countries combat transborder crime, facilitate trade, and
health efforts. The FY2022 budget request states that U.S.
assistance “will advance our shared priorities with
resolve the conflict over Transnistria.
reformers like President Maia Sandu ... to make Moldova a
In 2016, the Moldovan government and Transnistrian
more competitive and democratic European country.”
leaders committed within the “5+2” format “to engage in a
substantive, results-oriented dialogue” focused on a set of
In January 2020, the United States imposed a visa ban on
practical issues and confidence-building measures. The
former PDM leader Plahotniuc (and his family) for
sides resolved several issues related to transit, education,
involvement in “corrupt acts that undermined the rule of
agriculture, and the recording of civil statistics. In 2020,
law and severely compromised the independence of
restrictions related to the COVID-19 pandemic slowed
democratic institutions in Moldova.” Then-U.S. Secretary
dialogue; nevertheless, the two sides agreed in July 2020 to
of State Michael Pompeo said the visa ban “sends a strong
restart discussion of issues related to transit,
signal the United States does not tolerate corruption and
telecommunications, and financial connectivity.
stands with the people of Moldova in their fight against it.”
Foreign Policy
Cory Welt, Specialist in Russian and European Affairs
Moldova generally has pursued a pro-European foreign
policy, although the Party of Socialists and many
IF10894
Moldovans support a closer relationship with Russia.
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Moldova: An Overview


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