The Council of the European Union approved today, Tuesday, the establishment of the "Reform and Growth Facility" for the Republic of Moldova, a new instrument to support EU-related reforms and economic growth in the country, with a value of 1.9 billion euros (approximately 2 billion US dollars).  

In a statement, the Council noted that this new financial package represents the largest support package provided by the European Union to Moldova since its independence and comes in addition to the significant support already provided by the EU to the country.  

The statement indicated that this package will contribute to strengthening Moldova's economy and bringing it closer to EU membership by accelerating reforms, while also helping the country address challenges arising from the ongoing war between Russia and Ukraine.  

It added that the facility will support Moldova in implementing EU-related reforms, as well as in accelerating growth and achieving economic convergence with the EU, particularly through the implementation of the comprehensive European strategy for Moldova's energy independence. This aims to disconnect Moldova from the insecurity of Russian energy supplies and fully integrate it into the European energy market.  

This facility serves as the financial pillar of Moldova's Growth Plan, which was presented by the European Commission in October 2024 to support Moldova during the period from 2025 to 2027. It is expected to provide up to 385 million euros (420 million US dollars) in grants and 1.5 billion euros (1.6 billion US dollars) in loans.  

Moldova, one of the Eastern European countries, was part of the former Soviet Union and shares borders with Ukraine to the north, east, and south, and with Romania to the west. With a population exceeding 2.5 million, it is classified as one of the poorest countries in Europe, with concerns about potential targeting by Russia.