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Summary

Although a small country, Moldova has been of interest to U.S. policymakers due to its position between NATO and EU member Romania and strategic Ukraine. In addition, some experts have expressed concern about alleged Russian efforts to extend its hegemony over Moldova through various methods, including a troop presence, manipulation of Moldova's relationship with its breakaway Transnistria region, and energy supplies and other trading links. Moldova's political and economic weakness has made it a source of organized criminal activity of concern to U.S. policymakers, including trafficking in persons and weapons. On April 5, 2009, Moldova held parliamentary elections. The Communist Party of the Republic of Moldova (PCRM) won just under 50% of the vote and 60 seats in the 101-seat parliament. The Communist victory sparked protests against alleged electoral fraud. Some demonstrators sacked and looted the parliament building and the offices of the president. Moldovan President Vladimir Voronin denounced the protests as an attempted coup d'etat. He claimed that Romania instigated the riots, pointing to the Romanian flags some protestors displayed at the demonstrations. The failure of the PCRM to secure the 61 seats needed to elect a new president triggered new parliamentary elections on July 27, 2009. The PCRM suffered a drop in support, winning only 48 seats, but the opposition parties also fell short of the total needed to elect their own candidate as president. This result could prolong the country's political stalemate yet again, unless the opposition can reach a compromise with some members of the PCRM. Moldova is Europe's poorest country. Living standards are low for the great majority of Moldovans, particularly in rural areas. Remittances from Moldovans working abroad amounted to 38.3% of the country's Gross Domestic Product in 2008. The global financial crisis has had a negative impact on Moldova. Remittances have dropped, as Moldovan emigrants have lost jobs in other hard-hit countries. As a self-declared neutral country, Moldova does not seek NATO membership, but participates in NATO's Partnership for Peace (PFP) program. Moldova currently has a Partnership and Cooperation Agreement with the European Union (EU), which provides for cooperation in a wide variety of spheres and holds out the possibility of an eventual free trade agreement. Moldova hopes to become a candidate for EU membership, although the EU is unlikely to accept Moldova as a candidate in the foreseeable future, due to Moldova's poverty and the EU's own internal challenges. The United States and Moldova have enjoyed good relations since the country's independence in 1991. The United States has supported democracy and free market reform in Moldova. The United States reacted cautiously to the outcome of the April 2009 Moldovan election, saying its view of the vote was "generally positive," but noting some problems. After the July 2009 election, a State Department spokesman noted that international observers reached a similar conclusion about the July vote. The United States has tried to support the country's fragile sovereignty and territorial integrity by advocating the withdrawal of Russian forces from Moldova and for negotiating a settlement of the Transnistria issue consistent with Moldova's territorial integrity.

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