The United States, through the U.S. Agency for International Development (USAID), is providing $30 million in direct budgetary support to help the Government of Moldova address spiking energy prices caused by the Kremlin’s unprovoked and unjustified war against Ukraine. This assistance, made through the World Bank Multi-Donor Trust Fund, is critical as Russian pressure has exacerbated Moldova’s energy and fiscal challenges, and is a key element of the $320 million in emergency support the United States has provided since February to help Moldova to address the economic, energy, security, and humanitarian impacts of Putin’s war against Ukraine.
These funds, provided by the United States through the World Bank, will assist Moldova through a process of reimbursement for prior verified electricity purchases. Moldova has been beset by multiple shocks in recent years: the COVID-19 pandemic, a severe drought that wracked agricultural production, and the 2021 European gas crisis that pushed gas prices up by around 400 percent. Just as Moldova was emerging from this series of severe shocks, the social and economic spillovers from the war in Ukraine placed Moldova’s short-term economic recovery and its long-term economic prospects at risk. The World Bank established a Multi-Donor Trust Fund to facilitate monetary donations from international partners to help the Government of Moldova respond to these challenges.
USAID’s contribution to this fund demonstrates the U.S. government’s continued support for the Government of Moldova as it responds to unprecedented challenges in the wake of Putin’s war against Ukraine. USAID will promote donor coordination and aid efficiency while also helping to mobilize additional resources to respond to critical needs and service delivery in Moldova.
This year marks thirty years of partnership between USAID and the Moldovan people. Since 1992, the American people have invested more than $640 million in Moldova through USAID assistance programs to strengthen democratic governance and economic growth and improve education and healthcare outcomes, as well as to address urgent humanitarian needs, including the needs of refugees from Ukraine.