Third €3.5 Billion Tranche Approved by EU for Ukraine’s Reconstruction Efforts
The European Union will provide Ukraine with nearly €3.5 billion as part of the third tranche of non-repayable grants and loans
The authorities in Transnistria, a self-declared breakaway region of Moldova, have rejected €60 million in aid offered by the European Union to address the region’s ongoing energy crisis. The Moldovan government, led by Prime Minister Dorin Recean, confirmed that the rejection was influenced by Russian pressure. While Tiraspol, the capital of Transnistria, cited opposition to certain conditions attached to the aid—particularly the planned gradual increase in energy tariffs—Recean believes Moscow’s influence was the real driver behind the decision, fearing that accepting EU support could undermine its control over the region. Despite this, Moldova has ensured that gas supplies will continue to flow into Transnistria, with the Hungarian company MET Gas and Energy Marketing AG overseeing the delivery. The gas, funded by Dubai-based JNX General Trading, is contracted through Moldova’s national operator, Moldovagaz, with the region paying for the transit.
Following the rejection of EU funds, Moldova remains committed to providing for the people of Transnistria, ensuring that heating and electricity were restored earlier this month after a period of rolling blackouts. However, the EU aid, which began flowing on February 1, will be exhausted by February 10, and Transnistria faces the prospect of having to secure its own energy supplies. Moldovan President Maia Sandu stated that, should the region not accept the EU’s conditions, it could seek Russian gas through routes like Turkey, similar to how Slovakia receives gas. But such arrangements would have to comply with international sanctions. Sandu noted that after the European grant runs out, Transnistria must either negotiate for further aid under stringent conditions or find alternative ways to meet its energy needs.
Transnistria’s reluctance to accept the EU’s aid package stems from a variety of factors, including the requirement for energy tariffs to align with market prices. The EU’s conditions also include the protection of fundamental freedoms, the release of political prisoners, and improvements in human rights practices. Moldova, while caught in a delicate political balancing act, is determined to prevent the region’s residents from enduring another winter of energy shortages. This is despite ongoing tensions and the region’s unrecognised status, with Moldova’s government continuing to assert that it will not abandon the left bank of the Dniester River.
The energy crisis in Transnistria began after Russian gas supplies to Moldova and the region were halted in January, following Ukraine’s refusal to extend its gas transit agreement with Russia and Moldova’s outstanding debts to Gazprom. This situation left both Moldova and Transnistria facing potential humanitarian challenges, prompting Moldova to declare a state of emergency. While the situation remains precarious, both the Moldovan government and the EU have remained engaged in efforts to ensure stability in the region, albeit under the looming shadow of Russian influence.
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The European Union will provide Ukraine with nearly €3.5 billion as part of the third tranche of non-repayable grants and loans
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