Moldova’s Energy Crisis Saga: A New Chapter is Unfolding this Winter

Editorial by Guillermo Llinás, Country Director, People in Need Moldova

The energy crisis in Moldova is not new; it has its origins in 2021 with the end of the Moldova-Russia gas supply agreement 2016-2021. Following the end of this agreement, there was a significant increase in the cost of gas and electricity, as Moldova’s energy is mostly produced with gas in Transnistria. The situation was worsened in May 2022 when output from Russia was reduced, and supplies of gas to Moldova were cut by one-third. At the same time, another Russia-driven crisis was developing as hundreds of thousands of Ukrainian refugees fled from war to Moldova. Combined, both crises have resulted in unprecedented inflation in Moldova (28.57% in 2022), which has significantly affected the entire population. Now, there is an expected suspension of Russian gas transit to Transnistria. This part of Moldova, accustomed to an artificially low-cost of energy against the cumulation of foreign debt, will be the most hardly hit. This crisis is neither the fault of the Ukrainian government, who, despite fighting a war against Russia, allows Russia to send gas to Moldova, nor of the Moldovan government, who tried and continues to seek a negotiation to end this crisis.

At People in Need, we are deeply concerned about the impact these events and a new crisis may have on the most vulnerable population. At the same, having supported Moldovan people in response to the energy crisis since its onset, we have seen solidarity, friendship, camaraderie, resilience, and strengthened response capacities. These are the stories we like to tell and be a part of.

In 2021, with European Union support, we collaborated with the Ministry of Labour and Social Protection. We distributed winter cash assistance support to Moldovans, helping over 38,000 households. We distributed firewood and supported local CSOs to serve hot meals, support the older population and raise awareness of energy efficiency. At the end of that winter, Moldovan society massively mobilised, opened the borders and welcomed their Ukrainian friends fleeing the war at their homes, provided shelter in established refugee accommodations while distributing food, water, and non-food items.

In 2022, along with the refugee crisis, came many new international actors to Moldova that joined the cause. All over Europe, solidarity with Ukraine and Moldova’s struggles grew tremendously. Czech public, private and social mobilisation was amazing and complementing European funds allowed us further to strengthen support to both vulnerable Moldovans and Ukrainians, expanding emergency activities beyond cash and winter support to education, vocational and educational training, entrepreneurship, psychosocial support, child protection, and funding to local civil society.

In 2023, the winter response to the energy crisis transitioned from a government-coordinated one, to an institutional response with a massive programme of energy compensation on electricity bills. The “Ajutor la comptor” programme supported hundreds of thousands of Moldovan households. At the same time, local and international organisations provided additional support. For example, we launched a successful winter clothing programme for children that has been scaled-up this year.

Moldovans can be proud of the capacities that have been built over time. The support from the Ministry of Labour and Social Protection has now migrated to direct cash assistance for utilities proportional to the degree of vulnerability of the household; this rewards those saving energy and compensates better those, usually in rural areas, using alternative heating sources.

In addition, this winter, we can also tell many stories of resilience: of vulnerable Moldovans and Ukrainians from the North that consolidated successful businesses and showcased them in Balti; of over 1000 refugee children now have improved access and integration into Moldovan schools; of Moldovan activists and filmmakers that premiered the film Shadow of War funded by People in Need during Moldox, a Moldovan documentary film festival that has reached European standards; of the and of veterinaries that are ensuring that even the cows we support will have a better winter this year. All these stories fill our hearts with joy, and we invite you to read them.

Winter has just started, and many challenges remain. However, let us reflect on how the capacities of the government, the different civil society actors and our own have increased. We stand ready and prepared to respond to the challenges ahead.

For the time being, let’s enjoy the festive season and celebrate all that which we have achieved together.

Happy holiday season!