November 10 (SeeNews) - The European Commission will provide financing of 250 million euro ($251 million) in grants and loans to help Moldova meet its gas supply and budgetary needs in the context of the war in Ukraine, Commission president Ursula von der Leyen announced on Thursday.
"First, we are pledging 200 million euro to help Moldova meet its gas supply needs. This will consist of 100 million euro in grants and 100 million euro in loans. The money should be available from January 2023," Ursula von der Leyen said in a live-streamed news conference together with Moldovan president Maia Sandu in Chisinau.
"Secondly, we will provide an additional 50 million euro for budgetary support to Moldova. This will help provide support to those most vulnerable so that this is a targeted budgetary support," the Commission president said.
According to the head of the EU's executive arm, Russia continues to wage its "brutal war against Ukraine, targeting essential infrastructure – electricity, heating, water – in despicable acts of cruelty, and creating chaos on global energy markets with its weaponising of energy," also affecting Moldova.
Almost 600,000 Ukrainian refugees have passed through Moldova, of whom 80,000 remain in the country, von der Leyen noted.
In June, the European Council decided to grant EU candidate status to Moldova and Ukraine. Ukraine, Moldova and Georgia applied for EU membership in the wake of the Russian invasion of Ukraine launched in February.
The Moldovan president said that peace in Ukraine is vital for the peace and well-being of the whole continent, and it is essential for Moldova, as security risks have increased considerably since the beginning of the war, according to a statement posted on the presidential administration's website.
"The authorities are making great efforts to secure the country's energy resources and reduce the burden of energy prices on people and the economy. Society is also making efforts - households, institutions and businesses have reduced their energy consumption. In October, consumption of gas fell by 57% and of electricity by 14% compared to October last year. However, the situation is still difficult and we can only face the energy crisis together," Maia Sandu added.
Earlier this month, the EC announced a non-reimbursable financial support of 52 million euro for Moldova.
In October, Moldovan deputy prime minister Andrei Spinu said that the country is facing power shortages as a result of Russia's attacks on Ukraine's energy system and cutbacks in gas volumes delivered by Russia's Gazprom, prompting the government to implement power saving measures.
($=1.0041 euro)