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1 1 (August 23, 2024)

handle is hein.crs/goveqlk0001 and id is 1 raw text is: Congressional Research Service lnforrr ing the legislative debate since 1914 Updated August 23, 2024 Moldova: An Overview Moldova is one of three post-Soviet states-together with Ukraine and Georgia-that have sought greater integration with the West in the face of Russian interference and territorial occupation. Members of Congress may assess U.S. efforts to support Moldova's democratic trajectory and European integration, as well as efforts to combat Russian malign influence. Moldova's president and governing party were elected on pro-European platforms in 2020 and 2021, respectively. Their reform-oriented agenda has been buoyed by the European Union's (EU's) June 2022 decision to name Moldova a candidate for EU membership and the launch of EU accession negotiations in June 2024. The United States and the EU have supported Moldova's efforts to implement EU-related reforms, curtail Russian influence, and address the impacts of Russia's war against Ukraine. Moldova's leaders have warned that a Russian victory in Ukraine could expose Moldova to heightened Russian aggression. Politcal and Economic Background In 2021, President Maia Sandu's reform-oriented Party of Action and Solidarity (PAS) won snap parliamentary elections with 53% of the vote (winning 63 of 101 seats). PAS's victory, and the formation of a single-party government, ended more than a decade of rule by fragile coalitions that often included allegedly corrupt political forces. The presidency holds symbolic importance but has relatively limited formal powers under Moldova's parliamentary system. Prime Minister Dorin Recean has led Moldova's government since February 2023. The PAS government has pledged to strengthen the rule of law and address long- standing concerns about corruption and state capture. Its reform agenda partly centers on nine priorities the EU outlined in 2022 as criteria for Moldova's further progress in the EU accession process (see below). Moldova is scheduled to hold a presidential election on October 20, 2024, along with a referendum on enshrining the goal of EU membership in the country's constitution (parliamentary elections are due by July 2025). President Sandu is seeking a second term. She was initially elected in 2020, defeating incumbent Igor Dodon in a runoff vote. Dodon was the de facto head of the Russia-leaning, socially conservative Party of Socialists, the former ruling party (which in the 2021 parliamentary elections spearheaded a bloc that won 27% of the vote). The third party to enter parliament in 2021, the populist, Russia-leaning Shor Party (banned in 2023, see below), was led by political and business figure Ilan Shor, who fled Moldova in 2019 while appealing a seven-year sentence for his role in a $1 billion bank fraud scandal. In April 2023, an appeals court sentenced Shor in absentia to 15 years in prison and ordered the confiscation of nearly $300 million of his assets. Shor, who is subject to U.S. and EU sanctions, lives in exile (reportedly now in Russia) but remains involved in Moldovan affairs through allied parties and political proxies. One of Europe'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 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 to be equivalent to 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). Imp act of Russia's War on Ukraine Russia's war against Ukraine has posed new economic and security challenges for Moldova. After Russia launched its 2022 invasion of Ukraine, concerns arose that Russia also would seek to invade Moldova. With a resident population of under 3 million, Moldova hosts more than 120,000 refugees from Ukraine. Since 2022, Russian-leaning political parties and individuals in Moldova have come under greater scrutiny. Shor and other Russia-connected actors allegedly have sought to foment unrest in Moldova, including by tapping into discontent over economic conditions and inciting protests. In June 2023, the Constitutional Court of Moldova dissolved the Shor Party for not complying with Moldova's laws and constitution. Ahead of local elections in November 2023, officials accused Russia of election interference, banned candidates from a Shor party offshoot, and blocked Russian media websites.

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