Norway provides new contribution to support Moldova's resilience this winter
Press release | Date: 19/12/2024 | Ministry of Foreign Affairs
Moldova is facing a challenging winter. The country is especially vulnerable due to increased energy prices and uncertainties regarding gas supplies in 2025. Norway is now providing a new contribution of 60 million NOK through the World Bank’s multi-donor fund, M-GROW (Moldova – Growth, Resilience and Opportunities for Well-being).
– We see that Russia is trying to undermine Moldova’s stability and force the authorities in Chișinău into submission by exploiting the uncertainty surrounding gas supplies. This is a prime example of why Moldova has sought to free itself from Russian monopoly in its energy supply, said Foreign Minister Espen Barth Eide.
Currently, most of Moldova's electricity comes from a gas-fired power plant in the breakaway region of Transnistria, which is universally recognized to be part of Moldova. The plant uses gas supplied by Russian company Gazprom through Ukrainian pipelines. The transit agreement between Ukraine and Russia expires on December 31, 2024, and alternative routes are expected to significantly more expensive. Furthermore, Gazprom is reportedly linking future gas supplies to Moldova with alleged outstanding debt. Moldova contests these claims, and an independent audit report supports Moldova.
Although Moldova has significantly strengthened its energy independence in recent years, a potential complete halt in this supply channel could have serious consequences. In light of the uncertain situation, parliament, on Prime Minister Dorin Recean's request, declared a state of emergency in the energy sector, starting December 16, 2024.
With budget support through the World Bank’s M-GROW fund, Norway is helping to maintain Moldova’s fiscal stability and reform efforts during these turbulent times. M-GROW contributes to energy efficiency in public buildings. Increased energy efficiency is one of the key measures that will most effectively reduce consumption and enhance energy security in Moldova in the short and medium term.
– Despite the challenging situation caused by Russia’s war of aggression against Ukraine, Moldova is an example of democratization and progress. Norway engaged early after the full-scale invasion with humanitarian aid, increased political contact, and provided budget and energy support," said Foreign Minister Eide.
In 2023, Norway contributed 100 million NOK to M-GROW and 400 million NOK through the EBRD to support the purchase of gas. In total, Norway has contributed around 1.6 billion NOK to Moldova since the full-scale invasion. In addition to the new 60 million NOK through the World Bank and the 275 million NOK announced in September, Norway has also provided an 8 million NOK contribution to the Council of Europe’s action plan for Moldova. Support to local media and civil society to combat disinformation has been increased with a nearly 6 million NOK contribution through International Media Support (IMS).