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Updated April 16, 2024

Moldova: An Overview

Moldova is one of three post-Soviet states-together with
Ukraine and Georgia-that seek greater integration with the
West in the face of Russian resistance and territorial
occupation. Members of Congress may assess U.S. efforts
to support Moldova's democratic trajectory and European
integration, as well as conflict resolution processes
concerning Moldova's breakaway, Russia-backed
Transnistria region.
Moldova's president and governing party were elected on
pro-European platforms in 2020 and 2021. Their reform-
oriented agenda was buoyed by the European Union's
(EU's) June 2022 decision to name Moldova a candidate
for EU membership. The United States and the EU have
supported Moldova's efforts to implement EU-related
reforms while taking steps to curtail Russian influence and
address the impacts of Russia's war against Ukraine.
Moldova's leadership has warned that a Russian victory
could expose Moldova to Russian aggression.
Politcal and Economic Background
Moldova's political environment has been contentious since
2009, when Western-oriented parties first unseated a
Communist Party-led government. In 2021, President Maia
Sandu's reform-oriented Party of Action and Solidarity
(PAS) won snap parliamentary elections. PAS's victory
marked the first time in 20 years that a party received an
absolute majority of votes in a parliamentary election. The
party's victory, and the formation of a single-party
government, ended years of rule by unstable coalitions that
often included allegedly corrupt political forces. Prime
Minister Dorin Recean has led the government since
February 2023. Moldova is due to hold a presidential
election in late 2024. Parliamentary elections are due by
mid-2025.
President Sandu was directly elected in 2020, defeating
incumbent Igor Dodon in a second-round vote. Dodon was
the de facto head of the Russia-leaning, socially
conservative Party of Socialists, the former ruling party; he
is currently under investigation on charges related to
corruption and treason. The presidency holds symbolic
importance but has relatively limited formal powers under
Moldova's parliamentary system. Sandu is seeking a second
term in Moldova's 2024 presidential election.
In the 2021 parliamentary elections, PAS won 53% of the
vote and 63 of 101 seats. A Socialist-led bloc won 27% of
the vote and 32 seats. The third party to enter parliament,
the populist, Russia-leaning Shor Party (banned in 2023,
see below), was led by political and business figure Ilan
Shor, who fled the country in 2019 while appealing a
seven-year sentence for his role in a $1 billion bank fraud
scandal from 2014; in April 2023, an appeals court

sentenced Shor in absentia to 15 years in prison and ordered
the confiscation of nearly $300 million in assets.
The PAS government pledged to strengthen the rule of law
and has adopted some reforms related to Moldova's EU
membership bid. Moldovan officials have stated that
challenges arising from Russia's war against Ukraine-
including inflation and high energy costs-slowed reform
efforts.
One ofEurope's poorest countries, Moldova has made
significant progress in reducing poverty and promoting
inclusive growth, according to the World Bank. Moldova's
annual gross domestic product (GDP) declined by 8% in
2020 due to the impact of the COVID-19 pandemic but
rebounded in 2021 with 14% growth. GDP declined by 5%
in 2022, due in part to the impact of Russia's war against
Ukraine, and grew by 2% in 2023. An estimated 1 million
or more Moldovans live abroad; remittances are estimated
at about 15% of GDP.

Figure I. Moldova at a Glance

Notes: Figure created by CRS using the National Bureau of Statistics
of the Republic of Moldova (does not include Transnistria).
Impact of Russa's War on Ukra ne
Russia's war against Ukraine has created new challenges
for Moldova. After Russia launched its expanded invasion
of Ukraine in February 2022, concerns arose that Russia
would also seek to invade Moldova, using control of
territory in southern Ukraine and its military presence in
Transnistria. With a resident population of under 3 million,
Moldova hosts more than 115,000 refugees from Ukraine.
Since 2022, Russian-leaning political parties and
individuals in Moldova have come under greater scrutiny as
part of broader government efforts to curtail Russian
influence. Ilan Shor and other Russia-connected actors
allegedly have sought to foment unrest in Moldova,

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