Updated August 8, 2022
Moldova: An Overview
Moldova is one of three post-Soviet states—together with
The PAS government expressed an intent to pursue
Ukraine and Georgia—that seeks greater integration with
ambitious reforms in judicial, anticorruption, business, local
the West in the face of Russian resistance and territorial
development, and educational spheres. One prominent early
occupation. Many Members of Congress have long
action was the suspension from office and arrest of
supported Moldova’s democratic trajectory and territorial
Moldova’s prosecutor general, who was charged with a
integrity and have called on Russia to withdraw its military
series of corruption-related offenses in October 2021. On
forces from Moldova’s breakaway region of Transnistria. In
March 6, 2022, President Sandu said Moldova’s need to
June 2022, the European Union (EU) officially granted
address social and economic issues resulting from Russia’s
Moldova (and Ukraine) EU candidate status (although the
war against Ukraine had put “our [reform] plans on hold.”
accession process is lengthy and does not guarantee
membership).
Subsequently, polls suggest that inflation and other
economic pressures related to Russia’s war against Ukraine
Russia’s 2022 war against Ukraine has created new
may be weakening support for Sandu and the ruling PAS.
security, economic, and social concerns for Moldova.
The Socialist Party retains its support base, even as
Moldovan officials and many observers have expressed
authorities placed former President Dodon under house
concern that Russia could seek to attack and occupy all of
arrest in May 2022 while he is being investigated on
Moldova if Russian armed forces were to seize control of
charges related to corruption and treason.
nearby areas of southern Ukraine, including the port city of
Odesa. With a resident population of under 3 million,
Figure 1. Moldova at a Glance
Moldova hosts more than 80,000 refugees from Ukraine as
of August 2022; more than half a million people have
entered Moldova from Ukraine since the start of the war.
Political Background
Moldova’s political environment has been contentious for
years. However, the consecutive victories of reformist Maia
Sandu in the 2020 presidential elections and her pro-
European Party of Action and Solidarity (PAS) in 2021
snap parliamentary elections led to renewed efforts to
reinvigorate Moldova’s governance reforms and boost its
European integration efforts. PAS’s victory, and the
formation of a new single-party government under Prime
Minister Natalia Gavrilita, ended years of rule by unstable
parliamentary coalitions that often included allegedly
corrupt political forces.
In November 2020, Sandu was directly elected as

Moldova’s president
Source: Figure created by CRS using Moldova National Bureau of
. Sandu defeated incumbent President
Statistics and World Bank (does not include Transnistria).
Igor Dodon, 58% to 42%, in a second-round vote. Dodon
was the de facto leader of the Russian-leaning, socially
Transnistrian Conflict
conservative Party of Socialists, the former ruling party.
Moldova’s presidency has relatively limited powers under
Since Moldova gained independence in 1991, it has coped
the country’s parliamentary system, but the position holds
with the de facto Russian-backed secession of Transnistria,
a multiethnic and predominantly Russian-speaking region
symbolic importance.
with about 10% of Moldova’s population and a substantial
Snap parliamentary elections were held in July 2021.
industrial base. Moldovan authorities support extending
Sandu’s PAS won the elections with 53% of the vote and
special governance status to Transnistria to resolve the
63 of 101 seats. A Socialist-led bloc placed second with
dispute. Russian authorities and authorities in Transnistria
27% of the vote and 32 seats. The third party to enter
have resisted this proposal, however, keeping the territorial
parliament, the Shor Party, is officially led by a wanted
dispute frozen for more than three decades.
political and business figure, Ilan Shor, who fled the
country in 2019 while appealing a seven-year prison
Russia stations about 1,500 soldiers in Transnistria, a few
sentence for his alleged role in a $1 billion bank fraud
hundred of which Moldova formally accepts as
peacekeepers. In 2017, Moldova’s Constitutional Court
scandal from 2014 that continues to be under investigation.
ruled that Russia’s non-peacekeeping troop presence was
unconstitutional. In 2018, the U.N. General Assembly
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Moldova: An Overview
passed a resolution calling on Russia to withdraw its troops
government had “abandoned” Dodon and the Party of
from Moldova “unconditionally and without further delay.”
Socialists. Subsequently, Russia’s 2022 invasion of Ukraine
has led many to fear that Russia also has aggressive
Despite its separatist tendencies, Transnistria has strong
intentions toward Moldova.
economic links to the rest of Moldova and the EU, the
destination for more than half of its exports. Many residents
Economy
have Moldovan citizenship and may vote in Moldovan
One of Europe’s poorest countries, Moldova has made
elections at polling stations outside Transnistria.
“significant progress in reducing poverty and promoting
inclusive growth,” according to the World Bank. Moldova’s
Immediately prior to and since Russia’s 2022 invasion of
annual gross domestic product (GDP) growth averaged
Ukraine, many observers speculated whether Russia would
about 4.3% from 2016 to 2019. GDP growth declined by
seek to establish a greater military presence in Transnistria
7% in 2020 due to the impact of the COVID-19 pandemic
or use its forces there to engage in military operations
but recovered in 2021 by an estimated 14%.
against Ukraine. Local authorities in Transnistria appear to
Russia’s war in Ukraine threatens to have a negative impact
be avoiding overtly supporting Moscow’s invasion of
on Moldova’s economy, especially given Moldova’s
Ukraine and have taken in Ukrainian refugees (Transnistria
is home to many ethnic Ukrainians). At the same time,
economic ties to Ukraine and an influx of refugees.
Transnistrian authorities have not condemned Russia’s
Moldova depends on Russia for natural gas imports, which
aggression and have expressed opposition to Moldova’s EU
Russia has sought to use as leverage over Moldova.
candidate status.
An estimated one million or more Moldovan citizens live
abroad. In recent years, labor remittances have been
A conflict resolution process for Transnistria formally
estimated at more than 15% of GDP.
operates in a “5+2” format under the chairpersonship of the
Organization for Security and Cooperation in Europe
U.S. Relations
(OSCE), with the OSCE, Russia, and Ukraine as mediators
The United States supports Moldova’s sovereignty and
and the EU and the United States as observers. The sides
territorial integrity within its internationally recognized
have addressed several issues related to transit, education,
borders. The United States also supports OSCE-led
agriculture, and the recording of civil statistics. The
negotiations over Transnistria.
COVID-19 pandemic slowed the dialogue in 2020; the
process began to renew again before halting once more
In April 2022, the United States and Moldova formally
after Russia’s 2022 invasion of Ukraine.
relaunched a bilateral Strategic Dialogue (which first
convened in 2014). In the 117th Congress, H.Res. 833
The EU also has supported conflict management through an
reaffirmed support for strong U.S.-Moldova relations and
EU Border Assistance Mission, which has sought to help
Moldova’s democracy, sovereignty, and territorial integrity.
Moldova and Ukraine combat transborder crime, facilitate
S.Res. 638 expressed support for Moldova and commended
trade, and resolve the conflict.
Moldova for its support of Ukrainian refugees.
Foreign Policy
Moldova is the third highest recipient of U.S. foreign aid in
Moldova generally has pursued a pro-European foreign
the Europe and Eurasia region. U.S. bilateral assistance to
policy, although the former ruling Party of Socialists and
Moldova was about $55 million a year from FY2019 to
many Moldovans have supported a closer relationship with
FY2021. Since Russia’s 2022 invasion of Ukraine, the
Russia. Moldova has a free-trade agreement with the EU,
Administration has provided more than $200 million in aid,
and the EU provides Moldovans visa-free entry to most
including $75 million to support Moldova’s efforts to assist
member states. As a whole, the EU and the UK accounted
refugees from Ukraine. The State Department’s FY2023
for almost two-thirds of Moldova’s exports and half of its
budget justification states that U.S. assistance intends to
total trade in 2021. Moldova officially applied to join the
“help its pro-reform government maintain stability and
EU after Russia launched its 2022 invasion of Ukraine and
increase medium-term growth and development and
was granted candidate status in June 2022.
strengthen Moldova’s democracy and resiliency, as it hosts
refugee populations and addresses disruptions to trade and
Moldova is a constitutionally neutral state and does not
supply chains.”
aspire to join NATO. Moldova maintains close relations
with NATO and the EU and, especially, Romania, a NATO
The United States has taken action against the leader of a
and EU member. Moldovans are related to Romanians by
former Moldovan ruling party, Vladimir Plahotniuc (whose
ethnicity and language; many have dual citizenship.
Democratic Party of Moldova governed from 2016 to
Looming over Moldova’s
2019). Plahotniuc fled Moldova in 2019 and has been
development, and of interest to
many in Congress, is the question of Russia’s
indicted for financial crimes. In January 2020, the United
influence and
States imposed a visa ban on Plahotniuc (and his family) for
intentions. Some observers allege that Russian officials
corruption.
have provided illicit support to the Socialist Party and ex-
President Dodon. Overt Russian interference in Moldova’s
2020 and 2021 elections was not evident, however, and
Cory Welt, Specialist in Russian and European Affairs
turnout among Moldovan voters in Russia and Transnistria
IF10894
was relatively low. Some observers concluded the Russian
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Moldova: An Overview


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https://crsreports.congress.gov | IF10894 · VERSION 15 · UPDATED

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