[Joint House and Senate Hearing, 118 Congress]
[From the U.S. Government Publishing Office]


               SUPPORTING A DEMOCRATIC AND SECURE MOLDOVA

=======================================================================

                                HEARING

                               BEFORE THE

            COMMISSION ON SECURITY AND COOPERATION IN EUROPE

                        U.S. HELSINKI COMMISSION

                     U.S. HOUSE OF REPRESENTATIVES

                    ONE HUNDRED EIGHTEENTH CONGRESS

                             SECOND SESSION
                               __________

                             JULY 12, 2023
                               __________

 Printed for the use of the Commission on Security and Cooperation in 
                                 Europe

                              [CSCE118-4]
                              
                              
                              
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                       Available via www.csce.gov
                       
                               __________

                    U.S. GOVERNMENT PUBLISHING OFFICE
                    
52-923 PDF                WASHINGTON : 2023                        
                       
            COMMISSION ON SECURITY AND COOPERATION IN EUROPE

                        U.S. HELSINKI COMMISSION

             U.S. HOUSE

                                                 U.S. SENATE

JOE WILSON, South Carolina Chairman	BEN CARDIN, Maryland Co-Chairman
STEVE COHEN, Tennessee Ranking Member	ROGER F. WICKER, Mississippi 				   			
ROBERT B. ADERHOLT, Alabama		   Ranking Member		
EMANUEL CLEAVER II, Missouri		RICHARD BLUMENTHAL, Connecticut		
RUBEN GALLEGO, Arizona			JOHN BOOZMAN, Arkansas			
RICHARD HUDSON, North Carolina		JEANNE SHAHEEN, New Hampshire		
MIKE LAWLER, New York			THOM TILLIS, North Carolina			
GWEN MOORE, Wisconsin			SHELDON WHITEHOUSE, Rhode Island
VICTORIA SPARTZ, Indiana
MARC VEASEY, Texas

                            EXECUTIVE BRANCH
                 Department of State - to be appointed
                Department of Defense - to be appointed
                Department of Commerce - to be appointed

                         C  O  N  T  E  N  T  S

                              ----------                              
                                                                   Page

                             COMMISSIONERS

Hon. Joe Wilson, Chairman, U.S. House from South Carolina........     1

Hon. Mike Lawler, U.S. House from New York.......................     2

Hon. Ben Cardin, Co-Chairman, U.S. House, from Maryland..........     3

Hon. Deborah Ross, U.S. House, from North Carolina...............     5

Hon. Marc Veasey, U.S. House, from Texas.........................     6

Hon. Steve Cohen, Ranking Member, U.S. House, from Tennessee.....     8

Hon. Emanuel Cleaver, U.S. House, from Missouri..................    13

Hon. Richard Blumenthal, U.S. Senate, from Connecticut...........    14

Hon. Victoria Spartz, U.S. House, from Indiana...................    26


                               WITNESSES

Dan Bischof, Acting Deputy Assistant Secretary of State for 
  European Affairs...............................................     6

Igor Grosu, President of the Parliament of the Republic of 
  Moldova........................................................    17

Doina Gherman, Chair of the Foreign Relations Committee of the 
  Parliament of the Republic of Moldova..........................    23

Ambassador [ret.] William Hill, Global Fellow at the Wilson 
  Center.........................................................    20


 
               SUPPORTING A DEMOCRATIC AND SECURE MOLDOVA

                              ----------                              

   COMMISSION ON SECURITY & COOPERATION IN 
                                    EUROPE,
                          U.S. HELSINKI COMMISSION,
                                  HOUSE OF REPRESENTATIVES,
                                          Wednesday, July 12, 2023.

    The Hearing Was Held From 10:11 a.m. To 11:35 a.m., Room 
2020 Rayburn House Office Building, Washington, DC, 
Representative Joe Wilson [R-SC], Chairman, Commission for 
Security and Cooperation in Europe, presiding.
    Committee Members Present: Representative Joe Wilson [R-
SC], Chairman; Senator Ben Cardin [D-MD], Co-Chairman; 
Representative Steve Cohen [D-TN], Ranking Member; 
Representative Mike Lawler [R-NY]; Representative Marc Veasey 
[D-TX]; Representative Emanuel Cleaver [D-MO]; Senator Richard 
Blumenthal [D-CT]; Representative Victoria Spartz [R-IN] Other 
Members Present: Representative Deborah Ross [D-NC].
    Witnesses: Dan Bischof, Acting Deputy Assistant Secretary 
of State for European Affairs; Igor Grosu, President of the 
Parliament of the Republic of Moldova; Doina Gherman, Chair of 
the Foreign Relations Committee of the Parliament of the 
Republic of Moldova; Ambassador [ret.] William Hill, Global 
Fellow at the Wilson Center.

  OPENING STATEMENT OF JOE WILSON, CHAIRMAN, U.S. HOUSE, FROM 
                         SOUTH CAROLINA

    Chairman Wilson: [Sounds gavel.] Good afternoon. On behalf 
of the United States Helsinki Commission, I would like to 
welcome everyone to be here today as we discuss the support for 
the democratic and secure Moldova.
    I am honored to pass the gavel to one of our newest 
commissioners, a really special member who has a deep affection 
for the people of Moldova. He likes them so much he married a 
Moldovan, Okay? Let's make it really clear. [Laughter.] We are 
really grateful that Michael Lawler of New York, who is been 
very active and engaged as a member of the Helsinki Commission 
and a powerful advocate for Moldova, within just a--for a just 
and durable European security system. Mr. Chairman, I want to 
thank you for your efforts in organizing the hearing. I will 
now turn to Mr. Lawler for his opening statement before hearing 
from our Co-Chairman, Senator Ben Cardin, all the way from 
Maryland.
    Mr. Lawler, the gavel is yours.

      STATEMENT OF MIKE LAWLER, U.S. HOUSE, FROM NEW YORK

    Representative Lawler: Thank you, Chairman Wilson, and 
thank you, Co-Chairman Cardin, for your leadership on the 
Commission and your roles in putting today's hearing together. 
I am honored to take the gavel today. I am also honored to be 
joined by my wife, Doina, who is here to listen to the hearing.
    The purpose of this hearing is to discuss the significance 
of Moldova's role in European peace and security. This small 
country has an outsized importance in the regional dynamics of 
Eastern Europe and has played a central role in standing up to 
Russia long before Vladimir Putin invaded Ukraine. This will be 
a very important discussion, and I want to thank everyone here 
for joining us today as we discuss a country and a set of 
issues that is particularly near and dear to my heart. As 
mentioned, my wife, Doina, was born in Moldova. She was raised 
there. Her family still lives in a village called Mih'ileni in 
the county of Shuldunest [ph]. I am lucky to have visited their 
village and the country multiple times.
    Through my family and my work in Congress, particularly on 
the Helsinki Commission, the Foreign Affairs Committee, and my 
co-chairmanship of the House Moldova Caucus, I am continuously 
reminded of the powerful impact of the Moldovan people in 
Europe and here in the United States. Just a little over a 
month ago my wife and I were in Chicago for the 9 Annual 
Moldovan-American Convention. We got to meet with President 
Sandu, Ambassador Ursu, and many others, as well as our own 
State Department officials and USAID, to discuss the important 
relationship between the United States and Moldova.
    Moldovans have been dealing with Russian aggression for 
ages, let alone since the dissolution of the Soviet Union. 
Moscow still maintains a military presence in the breakaway 
region of Transnistria, and leveraging ethnic and language 
differences, its economic weight and energy dominance to 
control Moldova's future and deny its people the independence 
they deserve. Like Ukraine, Moldova does not have the security 
guarantees that come with NATO membership. Like Ukraine, the 
country has fallen victim to Putin's imperial appetites and 
vocal Soviet nostalgia.
    Crucially, the Moldovan people have rejected this malign 
agenda and courageously resisted Russian pressure and 
blackmail. The election of President Maia Sandu in 2020, and a 
reformist parliament in 2021, demonstrated loudly and clearly 
that Moldovans wanted to move toward European integration. 
President Sandu's Government has answered that call and 
embarked on an ambitious reform agenda. We have seen real 
progress in recent years, culminating in the European Union 
granting the country candidate status in their quest for 
membership. This is a tremendous achievement that might have 
seen unthinkable only a few years ago.
    Moldova has also stepped up to assist their Ukrainian 
neighbors. Moldova has taken in more Ukrainian refugees per 
capita than any other country in Europe and is actively working 
to ensure these refugees have access to employment, education, 
and more during their stay. They do so, despite Russia's 
continued blackmail, threats, and energy embargos. Moreover, 
the Kremlin continues to conspire through friends and proxies 
to sow unrest in Moldova, undermine confidence in reforms, and 
stoke economic dislocation.
    They have done so in many other places. Russia believes 
they can use Moldova's budding democracy against itself and, 
once again, extend Moscow's empire of kleptocracy. We cannot 
let this happen. We must work with our allies to support 
Moldova's democratic reform agenda, anticorruption endeavors, 
and security needs. We must bolster investment in Moldova's 
economy and do what we can to ensure an imminent invitation to 
join the European Union. Today's hearing serves as a platform 
to explore how we can deepen the U.S.-Moldova partnership with 
Moldova. We are privileged to have distinguished witnesses with 
us today who will provide valuable insights into these pressing 
issues.
    Our first witness, Mr. Dan Bischof, the acting deputy 
assistant secretary of State for European affairs, will provide 
us with an overview of U.S. policy toward Moldova. He will shed 
light on the specific ways the United States is showing support 
for the Sandu administration and how we can continue to enhance 
existing assistance.
    The second panel of witnesses will include Moldova's 
President of the Parliament Mr. Igor Grosu. He will underscore 
the significance of U.S.-Moldova relations, highlight ongoing 
cooperation on reforms, and shed light on the opportunities and 
challenges that lie ahead. Accompanying President Grosu is 
Doina Gherman, chair of the Foreign Relations Committee of the 
Moldovan Parliament. I am sure we all appreciate Mr. Grosu and 
Ms. Gherman's traveling to the United States to provide their 
perspectives.
    Last, we will have the privilege of hearing from former 
Ambassador William Hill, an independent expert with deep 
experience in Moldova, including as former head of the OSCE 
mission there. Ambassador Hill's remarks will offer us valuable 
recommendations as we navigate the complexities of supporting 
Moldova's democratic aspirations and countering security 
threats.
    I thank all of you for your participation and look forward 
to a rich and purposeful discussion here today. With that, I am 
going to turn it over and recognize the Co-Chairman of the 
Helsinki Commission, Senator Cardin, for opening remarks.

    STATEMENT OF BEN CARDIN, CO-CHAIRMAN, U.S. SENATE, FROM 
                            MARYLAND

    Senator Cardin: Well, Chairman Lawler, first of all, thank 
you very much for your work in helping to organize this 
extremely important hearing of the Helsinki Commission, and to 
Chairman Wilson for his leadership on this Commission. He was 
extremely helpful to me when I chaired the commission in the 
last Congress, and we work together on these issues. Today's 
hearing is just another example of that bipartisan cooperation 
that we have on the Helsinki Commission.
    Representative Wilson and I just returned from Vancouver 
for the annual meeting of the OSCE Parliamentary Assembly. I 
mention that because one of the major accomplishments of that 
Vancouver conference was the Vancouver declaration that is 
very, very strong in unity and support for Ukraine. We made 
it--we make it very clear that there is no division among the 
participating states that were there in Vancouver and our 
strong support for Ukraine sovereignty, and doing everything we 
can to make sure that Ukraine is successful.
    We authored an amendment to that declaration in regards to 
Moldova, to thank Moldova for what they have done in the war 
effort in accepting refugees under extremely challenging 
circumstances for their country. We talk about U.S. taxpayers 
providing help to Ukraine, and we have. I think $75 billion in 
military assistance to date. Countries like Moldova have made 
tremendous sacrifices in dealing with welcoming the refugees 
and being the front line to defend us against Russia's 
aggression. We thank you very much for your help in regards to 
the unity and making clear that we stand with Ukraine. We will 
be there until there is total victory in protecting their 
sovereignty.
    It is been a long time since we have had a hearing in this 
Commission on Moldova. The last one, I was told, was March 
2020. That takes us back, of course, before the Russia 
aggression in Ukraine, but also before COVID. It is nice that 
we are all here together and can actually have a hearing in 
person. Moldova has changed a great deal. As the chairman 
indicated, they have elected a government that is reform 
government, a Pro-West Government. We appreciate that. We 
appreciate that they are taking on corruption, to fight 
corruption in their own country. That they are on path, we 
hope, for EU integration, with candidate status given in 2022. 
That is an extremely positive step.
    We have seen them strengthen their democratic institutions 
in combating corruption. We are looking for how the United 
States can strengthen that partnership, what we can do to help. 
there is ways we can help you in sending a clear message 
against those who are trying to prevent the type of democratic 
reform. We have done that with some of our sanctions against 
some of the former government individuals who abused their 
power. We also can do that through economic and strategic 
partnerships. I hope that we will have a chance to talk about 
how we can build on those relationships during this hearing.
    It is particularly nice to have fellow parliamentarians 
here. It is nice to have an executive agency, but it is the 
parliamentarians that we particularly can identify with. We 
welcome you here, and we look forward to your testimony. Thank 
you, Mr. Chairman.
    Representative Lawler: Thank you, Co-Chairman Cardin.
    Now, I will recognize the Chairman of the Helsinki 
Commission Congressman Joe Wilson from South Carolina.
    Chairman Wilson: Thank you, Mr. Chairman. Our hearing today 
is a rich and pointed discussion about Moldova, a small country 
that has loomed large with its strategic position in Eastern 
Europe, and what it has become to represent in democracy 
struggle against war criminal Putin's aggression and malign 
intent. Sadly, war criminal Putin is sacrificing young Russians 
to death for Putin's personal benefit of oil, money, and power. 
Moldova is on the frontlines of Putin's assault on the basic 
fabric of European security and global world peace. It also 
represents, sadly, an early indicator of, Russia's aggressive 
intent toward the region as a whole. Like Ukraine and like 
Georgia, Moldova has been torn asunder by Russian proxies and 
held hostage by a web of economic interests, corruption, and 
energy blackmail.
    In this way, Moldova is another reminder of Moscow's 
longstanding role as both Europe's chief arsonist and self-
appointed firefighter. In Moldova, it has done so, as in many 
places, the Putin regime has created or exaggerated and 
exacerbated problems, which it used to deepen its influence to 
dominate its neighbors and breed corruption and servitude, 
leaving no crisis behind. However, Moldova is also an example 
of a country whose people have powerfully rejected Putin's 
malign agenda. In electing President Maia Sandu and a 
parliament of reformers, Moldova has moved at breakneck speed 
toward democracy and its European destiny, winning, very 
significantly, the European Union candidate status just last 
year.
    Meanwhile, it has flung its doors open to Ukrainian 
citizens, demonstrating their country's incredible humanity 
despite their own share of challenges. Moldova is important not 
just because Putin seeks to harm it. Moldova is important 
because it is a flashing reminder of how some countries in 
Europe have been left open to Putin pillaging, which only 
encourages Moscow to press further on its imperial agenda, 
bringing us to this destructive invasion, and tragic, of 
Ukraine. The United States must not ever allow that to happen 
again in Europe. That is that European security should not be 
divided into haves and have nots but should be inclusive and 
protective especially of those at greatest risk, particularly 
from Putin invasion and aggression.
    I look forward to hearing from our distinguished witnesses 
today on how we can support our Moldovan friends. It is 
particularly meaningful to have our parliamentarians here. It 
is just so inspiring to have you here and speak to the American 
people and it just is heartwarming. God bless. With this, I 
yield. I thank you for your attention.
    Representative Lawler: Thank you, Chairman. I now recognize 
Commissioner Cleaver for any opening remarks he may like to 
give. Good? Okay. I will now recognize my Moldova caucus Co-
Chair Deborah Ross, for an opening remark.

   STATEMENT OF DEBORAH ROSS, U.S. HOUSE, FROM NORTH CAROLINA

    Representative Ross: Well, thank you so much, particularly 
to Chairman Wilson and Co-Chairman Cardin, and Representative 
Lawler for leading the hearing today, and for allowing me to 
participate--since I am not an official member.
    My home State of North Carolina has enjoyed a strong and 
unwavering bond with Moldova, dating back to 1999. For example, 
Moldova has been paired with North Carolina in the Department 
of Defense's National Guard State Partnership Program for more 
than a quarter of a century. As Co-Chairs of Moldova Caucus, 
Representative Lawler and I have worked diligently to bolster 
support for the country as it navigates a complex set of 
challenges, and a dangerous one at that.
    Moldova gained independence, as we all know, from the 
Soviet Union in 1991. Since then, the country has faced 
continuous threats from Russia--threats that have only been 
exacerbated by Russia's unprovoked and unconscionable invasion 
of Ukraine in February 2022. Moldova applied for EU membership 
and was granted candidate status in June 2022. This is an 
important step in the right direction. Representative Lawler 
and I led a letter with support from 11 of our colleagues 
asking Secretary Blinken and the State Department to continue 
expressing support for Moldova's EU candidacy.
    Moreover, we submitted an amendment to the NDAA that 
supports Moldova's defense modernization with the help of the 
United States. Today, President Sandu is working tirelessly to 
make sure Moldova stays on the path of freedom and democracy. 
The United States has a real responsibility to continue to 
support her administration at this precarious moment. 
Safeguarding Moldova's precious democratic institutions is 
imperative if we are to help secure a more peaceful and 
prosperous future for the Moldovan people. Thank you so much 
for allowing me to speak. I yield back.
    Representative Lawler: Thank you, Representative Ross.
    I will now recognize Commissioner Veasey for an opening 
remark.

        STATEMENT OF MARC VEASEY, U.S. HOUSE, FROM TEXAS

    Representative Veasey: Thank you very much. I am really 
glad that we are here having this discussion today, 
particularly as it centers around Moldova. This country is very 
important in the scheme of things, particularly right now with 
everything that is happening in the Ukraine, and Russia's 
aggressions, and the statements that Russia has made about 
various countries and about how Russian-speaking citizens are 
being treated in those countries. We should take every threat, 
and we should take every statement, we should take all of them 
very seriously.
    Moldova is obviously a country that is small and does not 
necessarily have the largest defense budget and population, 
like some other European countries. A lot of experts think that 
if the Ukraine situation were not to go the right way, that 
Moldova would definitely be next on Putin's list. When you hear 
Putin say things and make statements saying that Gorbachev's 
biggest mistake was not keeping the Soviet Union together, we 
know that this is someone that thinks in historical terms. I 
think it is all the more important that we are having this 
hearing today. I look forward to learning more and appreciate 
the Commission getting together to have this hearing. Thank 
you. I am going to yield back.
    Representative Lawler: Thank you, Representative Veasey.
    At this time I will now recognize Mr. Bischof to provide 
witness testimony for 5 minutes.

STATEMENT OF DAN BISCHOF, ACTING DEPUTY ASSISTANT SECRETARY OF 
                   STATE FOR EUROPEAN AFFAIRS

    Mr. Bischof: Well, good afternoon. I would like to thank 
Chairman Wilson and Cardin, and Ranking Members Cohen and 
Wicker for convening this hearing today. I appreciate the 
opportunity to discuss the ways the United States is 
demonstrating its support for Moldova's sovereignty, titorial 
integrity, and continued democratic development. The Helsinki 
Commission's active engagement with Moldova has been critical 
in deepening our bilateral relationship.
    Moldova's on the front line of our strategic priorities for 
Europe--strengthening democracy, rule of law, enhancing 
European energy security, and ensuring our continued unity in 
standing up to Russia's war of aggression against Ukraine. With 
the support of Congress, the administration has committed 
approximately $628 million since February of last year to help 
Moldova address the impacts of Russia's war, build political 
and economic resilience, and deepen Euro Atlantic integration.
    Moldovan voters sent a clear message in their 2020 and 2021 
elections. They called for tangible progress on the country's 
path to European integration, which means a renewed fight 
against corruption and more accountable institutions enforcing 
the rule of law. The United States has worked closely with 
Moldova to advance these objectives. For example, the State 
Department and USAID have supported Moldova's multistage effort 
to increase justice sector transparency and integrity. U.S. 
assistance to civil society is reinforcing its critical role 
and working with the government to strengthen Moldova's 
democracy, promote accountability, and advance an inclusive 
human rights agenda.
    Moldova's hard work was reflected in the European Council's 
decision to grant Moldova EU candidate status last year. We 
engage continuously with EU counterparts and member states to 
align our support for Moldova as it moves toward EU accession. 
On security, Moldova is investing in defense of its sovereignty 
and titorial integrity, consistent with its constitutionally 
guaranteed neutrality. The United States is committed to 
supporting Moldova's military modernization along with efforts 
to strengthen border security and law enforcement capacity. 
U.S. Defense assistance to Moldova increased from $3.3 million 
in 2021 to $29.6 million last year, and we have seen similar 
investment increases through the EU's European Peace Facility.
    In the economic and energy sphere, Russia's War against 
Ukraine has caused deep shocks for Moldova, elevating inflation 
and energy prices, and cutting off export markets. With 
extensive U.S. and EU support, Moldova has connected its 
electrical grid to the to the rest of Europe and began trading 
gas in European markets for the first time, both critical steps 
in reducing dependence on a Russia-controlled energy supply. 
This administration, with the support of Congress, is 
allocating an additional $300 million for Moldova's energy 
security to offset energy shocks and drive long-term energy 
security. We have also helped Moldova increase global 
competitiveness in key sectors, such as tech and high value 
agriculture, and unlock new opportunities in Western markets.
    We greatly appreciate Moldova's continued generosity in 
welcoming more than 860,000 refugees from Ukraine since 
Russia's invasion in February of last year, more than 100,000 
of whom are still there in Moldova, with many hosted in private 
homes. The United States and international partners will 
continue to support Moldova in addressing the immediate and 
long-term impacts of the humanitarian crisis caused by Russia's 
War against Ukraine.
    Across these priorities, we continue to see Russia's 
attempts to undermine Moldova's reform trajectory through 
ongoing instability fomented by the continued presence of 
Russian troops on Moldovan territory, energy coercion, 
destabilization campaigns, and illicit financing of Kremlin-
controlled political entities. The United States has worked 
with Moldova and our European partners to build Moldova's 
resilience and counter Russia's malign efforts in the 
information space.
    Last, the United States remains committed to supporting 
OSCE-led efforts to promote a peaceful, comprehensive, and 
lasting settlement of the Transnistria conflict at the OSCE and 
beyond, we will continue to call on Russia to fulfill its 
longstanding commitments to withdraw its troops and munitions 
from Moldova, where they remain entrenched without Moldova's 
consent.
    As President Biden said earlier this year, the United 
States is proud to stand with President Maia Sandu and the 
freedom-loving people of Moldova. The United States will 
continue to advance Moldova's democracy, prosperity, and 
security as we support the Moldovan people in building their 
chosen European future. Thank you again for your time today, 
and I look forward to your questions.
    Representative Lawler: Thank you, Mr. Bischof.
    I want to recognize my colleague and the ranking member of 
the Helsinki Commission, Congressman Cohen, to give some 
opening remarks.

  STATEMENT OF STEVE COHEN, RANKING MEMBER, U.S. HOUSE, FROM 
                           TENNESSEE

    Representative Cohen: Thank you, Mr. Lawler. I apologize 
for being a little bit late, I had to get a passport to get 
over here from Rayburn. Also a tour guide. [Laughter.] A very 
unusual spot for us to have a hearing.
    I appreciate your remarks, sir. Moldova's important to 
America and to democracy. It is also, unfortunately, important 
to Russia, which desires to fulfill Peter the Great's ambitions 
through his successor in interest, Mr. Putin and Moldova's just 
the next step after Ukraine, in his mind. The best way we can 
protect Moldova is to protect Ukraine. If Russia retreats or 
finds a reason to enter into a treaty which ceases hostilities 
with Ukraine, Moldova will be secure. If Russia for some reason 
wins, Moldova is in danger. I am sure Poland, and Lithuania, 
and Estonia, and Latvia will be as well. Finland and Sweden, 
for Mr. Putin's desires have no limits.
    His desires are such that they extend into the afterlife, 
and the hope that he will be right up there with Lenin. The 
sooner the better. That he will be remembered as Peter the 
Great part two. We have to support democracy throughout the 
world. NATO does that. The United States has done a great job 
with seeing that Sweden was permitted in. I am sure President 
Biden had much to do with Mr. Erdogan's decision, which I was 
very pleased to see as a Co-Chair of the Turkey caucus that 
Turkey stopped its hold on Sweden's entry into NATO and agreed 
to it, so NATO's gotten stronger. That is good for Moldova, and 
it is good for the world.
    Moldova has had problems in the past, but they are 
eliminating corruption, or trying to, and have more democratic 
society. That is important that they do that. When they were so 
close to being under the thumb of the Soviet Union, it is 
natural that they would have problems with corruption because 
that is kind of the stock and trade of the Soviet Union, it 
was, and then Russia. They deal in corruption as a way of life. 
That is what they have done with the oligarchs.
    That was the most mainlining of corruption in--probably in 
the world of the last couple--200 years. Divvy up the country 
to your friends. Give them all these riches. The idea that you 
are doing something good for the country, which you are not, of 
course. I appreciate being here. I always appreciate being in 
the same room with Mr. Wilson, who has given me the opportunity 
to visit Cannon 210, that I never seen before and probably will 
never see again. With that, I yield back the balance of my 
time.
    Representative Lawler: Thank you, Ranking Member.
    At this time, I will afford myself 5 minutes to ask 
questions. Mr. Bischof, I have long believed that if Russia was 
successful in its war against Ukraine, they would not stop 
there. That countries like Moldova would be next on their 
target list. I believe, in addition to supporting the Ukrainian 
people and their government in defending their sovereignty, 
that this war goes well beyond that and is about ensuring that 
our allies in Eastern Europe, writ large, are able to ensure 
their own sovereignty. What--does the administration agree with 
that assessment and line of thinking? If so, how has that been 
taken into account during deliberations about the war in 
Ukraine?
    Mr. Bischof: Perhaps I will talk a bit about Russia in 
Moldova and the concerns that we have there, because I think 
you bring up a very important point. One thing we have heard 
from our Moldovan friends is that if we want to help Moldova, 
we do need to help Ukraine. I think that is an important 
starting point for what we do.
    That said, as we have said since Russia started as its 
unprovoked unjustified full-scale invasion of Ukraine last 
year, we have not seen an immediate military threat by Russia 
against the Republic of Moldova. Russia's violations of 
Moldovan airspace, however, to launch missile attacks on 
Ukraine are an unacceptable risk and demonstrate blatant 
disrespect for Moldova's sovereign territory. Now, we are 
firmly committed to supporting Moldova's constitutional 
neutrality as well as sovereignty and its territorial 
integrity.
    We are taking the following measures to support Moldova in 
countering the threats from Russia, including upping our 
security assistance from 3.3 million dollars 2 years ago to 
29.6 million dollars last year. We are actually developing--
excuse me--deploying a cyber defense adviser to the Ministry of 
Defense in Moldova and strengthening critical infrastructure 
protection. We know we are getting support from allies via NATO 
defense Capacity Building Initiative that was mentioned in 
today's communique that came out from NATO, which is also good. 
Also, we are working on border and internal security to address 
emerging threats. We have provided approximately $30 million 
for border security assistance.
    We do have--besides for the military threat, we do have 
concerns about Russian disinformation and their efforts to 
destabilize Moldova. Russia's had a long history of malign 
influence both in Moldova and in the region. We have worked 
closely with Moldova to build its resilience and to counter 
longer term efforts by Russia to undermine their democratic 
institutions. On June 5, we designated seven leading members of 
a Russian intelligence-linked malign influence group for their 
role in the Russian Federation's destabilization campaign and 
continued malign influence campaigns in Moldova. We are 
confident in the Moldovan Government's ability to manage this 
challenge as we continue to share information with them to 
inform their response.
    Representative Lawler: As Moldova seeks EU status that 
would certainly, you know, improve their economy and their 
security, as a member of the EU, I think obviously when we look 
at the situation in Ukraine, when we look at other parts of the 
world, the Indo Pacific, shared economic prosperity is critical 
to ensuring peace. I think, obviously, for a country like 
Moldova, which has taken in over 800,000 refugees--they have 
about 2.6 million people living there currently. It is--the 
future of their economy is critical. What are we doing, what is 
the State Department doing, what is USAID doing to help improve 
investment in Moldova, particularly as it relates to trade 
diversification and their agricultural and wine industries?
    Mr. Bischof: Well, thank you for that question. I think 
you, again, bring up an excellent point about EU accession. We 
are fully supportive of Moldova's EU aspirations and the 
reforms that are necessary inside of Moldova before it is able 
to accede to the EU. We have talked about the European Council 
granting its candidate status last year. The EU recommended 
nine priority actions for Moldova to complete to advance that 
integration, including steps on combating corruption and 
justice reform, public administration and financial management, 
and promoting human rights.
    Moldova seeks to open accession talks by the end of this 
year. Ultimately, that is a decision for the EU and the member 
states. Our underlying assistance is helping Moldova implement 
the reforms that will benefit its EU accession. I think that is 
perhaps the single best thing we can do to help Moldova economy 
and trade is to complete these reforms.
    Representative Lawler: Appreciate it.
    My time is expired. I will now recognize Chairman Wilson 
for 5 minutes.
    Chairman Wilson: Thank you, Mr. Chairman. Indeed, I am very 
happy to point out how smart Congressman Lawler is to marry 
over his head a Moldovan. We have shared family heritage in 
that regard. As we are showing our appreciation for the people 
of Central and Eastern Europe, my oldest son was smart enough 
to marry a Polish American. Over and over again, we could say 
that we appreciate Central and Eastern Europe, but the American 
relationship is so strong and it is exciting too that we have 
just been joined by the Ambassador from Romania and members of 
the national assembly. The extraordinary relationship between 
the two great countries of Moldova and Romania so strong, and I 
always like to point out my hometown, the sister city of 
Columbia, South Carolina, is Cluj Napoca in Transylvania, 
Romania. There is contact, after contact, after contact.
    With that in mind, what is the situation? Aside from direct 
military action, what is the most likely avenues that Russia 
poses to the people of Moldova? How can the United States 
contribute to mitigating the risk and enhancing the security of 
the people of Moldova?
    Mr. Bischof: Thank you for that question. It is nice to see 
our Romanian friends. I think Moldova may have no better friend 
than Romania. It has been a privilege to work with my 
counterparts inside the Romanian embassy since I have taken on 
this role.
    To answer your question, I think that for years, as we have 
talked about, Russia has supported influence and 
destabilization campaigns in the region which involve 
weaponizing corruption to further its goals. Russia has pushed 
its narrative by supporting influence agents. It simultaneously 
takes advantage of corruption to advance its own interests. We 
have worked closely with Moldova to build the resilience, as I 
mentioned, and to counter longer-term efforts. We have 
designated seven leading members of a Russian intelligence-
linked malign influence group. That is extremely important. We 
are, again, confident in the Moldovan Government's ability to 
manage the challenge.
    I would like to talk a little bit about energy security, 
however, because I think that is also important. We have 
supported Moldova's efforts to diversify away from Russian 
energy supplies. There has been significant progress. With--you 
know, with Congress assistance, we have set aside $300 million 
in energy-related assistance, including money for budget 
support, development of high-priority electric power generation 
projects, and 85 million dollars to improve Moldova's 
capability to procure energy supplies from alternative sources. 
I think this weaning off of cheap Russian energy sources is 
also something extremely important the United States can 
continue to do to support Moldova and to separate from Russia.
    Chairman Wilson: I am glad you mentioned energy because 
Romania has become a real leader in promoting small modular 
reactors, clean energy, and in fact we will be--Americans could 
be copying Romania and following the Romanian path to re-
achieving energy independence because of small modular 
reactors. In fact, obviously we like Romania so much that we 
copied their name, Transylvania, as part of the region I 
represent. We have to acknowledge that it was Transylvania was 
first in Romania, not in North and South Carolina. We still 
claim it.
    With this in mind, was your assessment of Moldova's 
progress since the Party of Action and Solidarity has come to 
power? Could you highlight some of the notable achievements or 
the positive developments?
    Mr. Bischof: It has been a real pleasure to work with 
President Maia Sandu and her administration. We have fully 
supported Moldova's democratic reform agenda and the priorities 
that she and her administration have outlined. This is 
reflected in the substantive increase of U.S. assistance, 
including $628 million since February of last year. We have 
also seen a real uptick in the number of visits that we have--
high level visits--including President Sandu's meetings with 
President Biden and Vice President Harris, as well as visits to 
Moldova by Secretary Blinken, Administrator Power, Ambassador 
Thomas-Greenfield, among others.
    On their accomplishments, they have certainly laid out an 
ambitious political and economic reform agenda. We are engaged 
across all reform priorities. There is a multistage effort 
underway to improve integrity and transparency in the justice 
sector and to combat corruption, including reforms to the 
electoral code in line with recommendations by OSCE ODIHR and 
the Venice Commission. As well as passage of legislation to 
improve protections against gender-based violence, as well as 
countering discrimination and hate-based crimes. We are working 
closely with the government, as well as civil society, to press 
for continued progress to improve protections for vulnerable 
communities, including women, Roma, the Jewish community, 
persons with disabilities, and LGBTQI+ persons.
    Chairman Wilson: Thank you very much for your service. 
Again, it is so exciting to see the progress of the country of 
Moldova. We wish the best for the people of Moldova, and how 
thoughtful they are for the people of Ukraine. I yield back.
    Representative Lawler: Thank you, Chairman Wilson.
    I will now recognize the Co-Chair of the Moldova caucus, 
Representative Ross, for 5 minutes.
    Representative Ross: Thank you so much. We have talked 
about the increase in defense spending and assistance for 
Moldova, and that it is increased to $29.6 million. What 
actions has the State Department taken to make sure that this 
funding is used constructively? Are there benchmarks for future 
funding?
    Mr. Bischof: Well, thank you for that question. I think, 
because I also cover Ukraine, you know, our concerns about 
assistance are always there. We intend always to be good 
stewards of the taxpayer dollars. If you all permit me to take 
back that question and get you a more detailed answer about the 
sort of benchmarks we are looking at going forward as well as 
the safeguards that we have in place.
    Representative Ross: That would be great. I have another 
question. How can Congress better support Moldova's 
humanitarian efforts to assist the Ukrainian refugees?
    Mr. Bischoff: It is certainly been such a good news story, 
you know what Moldova has done. I think the whole world is 
grateful for that. As we have talked about, more than 860,000 
refugees were welcomed to Moldova. More than 100,000 are still 
there. I think we are all extremely impressed with their 
management of this unprecedented wave of refugees. I think 
perhaps the most impressive thing of all is that many of them 
are in private homes or with families. This is a testament 
really to the generosity and humanity of the Moldovan people. 
We have provided $96 million in humanitarian assistance, the 
U.S. has, through international humanitarian organizations, to 
help with refugee relief efforts, address immediate response 
needs, and promote longer-term integration. I think that is a 
need that will not go away. I was recently in Berlin, and I met 
with some of our locally employed staff out of our embassy in 
Kyiv, who have relocated to Germany. Obviously, the conditions 
in Ukraine are not quite right for many Ukrainians to go back. 
I think that is one area where we will continue to need to help 
other countries.
    Representative Ross: My final question, we have in North 
Carolina quite a strong relationship with Moldova, and on the 
defense side, and as far as cultural exchanges, and also 
economic exchanges. We are now engaging in some training of 
local elected officials through our university system. You 
know, the Federal Government does not have to do everything. 
Are there things that our State Governments can do to help when 
we have this strong relationship with Moldova?
    Mr. Bischof: That is also an excellent question. The State 
Department recently has stood up an office that does more, 
like, state-and city-level diplomacy as ways to put people 
together. I would like to touch base with that office and come 
back to you with some concrete ideas on things we can do. 
Suffice it to say North Carolina is famous for your 
relationship with Moldova. It is something that is deeply 
appreciated.
    Representative Ross: Thank you.
    Thank you, Mr. Chairman. I yield back.
    Representative Lawler: Thank you, Representative Ross.
    We will now recognize Commissioner Cleaver, for 5 minutes.

    STATEMENT OF EMANUEL CLEAVER, U.S. HOUSE, FROM MISSOURI

    Representative Cleaver: Thank you, Mr. Chairman.
    Thank you for being with us today. We are witnessing, I 
think, a valiant effort by the Ukraine to enter into the United 
Nations [sic; NATO]. I think our State Department, president 
are all moving in the right direction. Moldova also wants to be 
a part of the EU, and probably they would like to join in 
something that would create--may create some additional 
problems for us, and that is NATO. What do you think we, the 
United States, should do with Moldova wanting to have EU 
membership? I think they have candidate status. Is the next 
step going to create more problems with Russia becoming nervous 
about their borders?
    Mr. Bischof: It is a challenging question. Obviously, we 
are fully supportive of Moldova's EU aspirations. You mentioned 
the candidate status from last year. We know that the EU has 
recommended nine priority actions for Moldova, and we think 
they are making good headway on them. We also see our 
assistance to Moldova as directly helping them prepare for that 
EU accession. It is a more difficult question to say on Russian 
reaction. I would say that we are firmly committed to assisting 
Moldova in this effort and their Euro-Atlantic integration. 
That will not change.
    Representative Cleaver: Now, there the predominant language 
is Romanian? I ask because, of course, Putin has the philosophy 
that if they speak--if anybody speaks Russian on a street 
corner, the Nation belongs to Russia. Where does Russian fit 
into the language community in Moldova? Percentage wise, if you 
have that.
    Mr. Bischof: I am not aware of how widely spoken Russian is 
inside of Moldova. I will probably ask that the follow-on main 
star of the hearing answer that question. I think he is 
probably better positioned than I am. I am--I think that the 
influence of Russia certainly is there. There are--that is 
something that causes us concern.
    Representative Cleaver: My concern is whether or not there 
is an area in Moldova that is Russian, right? Primarily 
Russian.
    Mr. Bischof: Yes. Okay, so maybe perhaps we could talk 
about Transnistria for a minute, if that is Okay? Just to say 
we firmly support Moldova's sovereignty and territorial 
integrity. On that basis, we support the OSCE-led 5+2 process 
to find a comprehensive, peaceful, and lasting settlement that 
would allow for special status for Transnistria within a 
territorial hole in sovereign Moldova. We continue to encourage 
Chisinau now and Tiraspol to work together to identify 
solutions to pressing concerns of communities on both sides of 
the Dniester River.
    We are pleased to see the sides continuing to meet to 
discuss these concerns. We support the critical role of the 
OSCE mission to Moldova in advancing the settlement process. 
That said, we recognize that under the current circumstances, 
the 5+2 format faces challenges. Ultimately, it is up to 
Chisinau and Tiraspol to identify a suitable political solution 
that--excuse me--that respects Moldova's sovereignty and 
territorial integrity. That is Transnistria. Apologies for--
    Representative Cleaver: Thank you.
    Representative Lawler: Thank you. Thank you, Commissioner. 
I would just note, under my experience, most people in Moldova 
are able to speak both Romanian and Russian. In addition, many 
can speak French. That is generally what is taught in the 
schools. My wife speaks Romanian, Russian, French, and English. 
I speak English for anybody counting. [Laughs.] With that, I 
will introduce Commissioner Blumenthal, senator from 
Connecticut, for 5 minutes.

 STATEMENT OF RICHARD BLUMENTHAL, U.S. SENATE, FROM CONNECTICUT

    Senator Blumenthal: Thank you. Thank you, Mr. Chairman. 
Thank you for convening this bipartisan hearing into a very, 
very important topic. Moldova certainly is of strategic 
importance, although many Americans--I am tempted to say most 
Americans--do not appreciate how important it is. I apologize 
if I am going to be repeating some of what you may have already 
said.
    I am interested in knowing what the degree of infiltration 
is by Russia in terms of numbers of troops. I understand the 
energy sources have been largely separated. Militarily and 
economically, what is the degree of Russian influence, 
infiltration, perhaps dominance in some areas?
    Mr. Bischof: Since Russia launched its invasion of Ukraine 
last year, we have not seen any immediate Russian military 
threat to Moldova. Obviously, we are in constant communication 
with our Moldovan counterparts, and to the extent possible we 
share information with them on a regular basis. There has been 
violations of Moldovan airspace by the Russians to launch 
missile attacks, which is an unacceptable risk and demonstrates 
blatant disrespect for Moldovan sovereign territory. We are 
firmly committed to supporting Moldova as its--as it has its 
own constitutional neutrality, but also its own sovereignty and 
territorial integrity. I think that the greater challenges we 
have are their malign influence, Russia's malign influence and 
destabilization efforts, which they have done for years.
    Senator Blumenthal: Those destabilization efforts would 
consist of disinformation and cyber? Maybe you can elaborate a 
little bit.
    Mr. 1Bischof: Sure. On that, mostly what we see are in they 
involve weaponizing corruption to further its own goals. Russia 
pushes its narrative by supporting influence agents and 
simultaneously takes advantage of corruption to advance its own 
interests. As I said, it is had a long history of this malign 
influence both in Moldova and across the region. We have worked 
very closely with our Moldova counterparts to build resilience 
among them and to counter these longer-term effects by Russia 
to undermine the democratic institutions.
    Senator Blumenthal: In terms of airspace, do they have any 
realistic way to stop the Russians? How important strategically 
is it for the Russians to be using that airspace for their 
missiles?
    Mr. Bischof: I think perhaps in this venue, there is only 
so much I can say. I would be happy to come and brief 
separately on that for you. I think as far as the violations of 
airspace, I probably ought to leave it there for now.
    Senator Blumenthal: Is that an area where the United States 
should be more directly involved?
    Mr. Bischof: I think that we are doing what we can on the 
airspace issue. I think, again, this might be better for a 
separate venue.
    Senator Blumenthal: In terms of corruption, I know you have 
talked about this before, is there more that the United States 
can be doing to help? I know that we are providing help in 
anticorruption measures, but is there more that we can be 
doing?
    Mr. Bischof: Absolutely. You know, the best part is that we 
are partnering with a country that has this as a priority, to 
fight against corruption. They have made significant progress. 
Our Bureau of INL and USAID are supporting Moldova's multistage 
vetting process to improve integrity within the justice sector, 
including prosecutors, judges, and their oversight bodies. This 
process has occasionally encountered vested interests seeking 
to maintain the status quo, but Moldova continues to implement 
the necessary reforms.
    We have also seen progress and Moldova's ability to 
investigate and prosecute high-level corruption, while 
safeguarding the independence of its judiciary. Moldova has a 
small but robust civil society and independent journalists. 
They continue to actively engage the government on reforms. 
Then finally, in the financial sector, Moldovan authorities 
continue to implement measures to increase financial sector 
oversight and transparency in line with its IMF reform program 
and international standards.
    Senator Blumenthal: Am I correct in saying that the 
Russians store ammunition in Moldova? I noticed that Ambassador 
Hill makes a reference--or nearby in the region?
    Mr. Bischof: If it is Okay with you, sir, I will take this 
question back and provide you a separate answer.
    Senator Blumenthal: Thank you. Thank you, Mr. Chairman.
    Representative Lawler: Thank you, Commissioner Blumenthal. 
Now, I will recognize Commissioner Veasey for 5 minutes.
    Representative Veasey: Thank you very much. Mr. Secretary, 
I know that the United States has imposed sanctions on several 
Moldovan oligarchs, but for some reason the former president 
Dodon has not been subject to any sanctions. Can you explain 
why he would not be subject to sanctions?
    Mr. Bischof: It is a difficult question. We do not 
typically preview sanctions. We are continuing to work with our 
interagency colleagues from the State Department, with other 
agencies to consider all the tools that we have, including 
sanctions and visa restrictions, in order to promote 
accountability and support Moldova's capacity to hold corrupt 
actors accountable. I think you probably recall last fall in 
October we designated two fugitive oligarchs, Vladimir 
Plahotniuc, and Ilan Shor, along with a larger group of 
individuals and entities, for their involvement in corruption 
and Kremlin-linked efforts.
    Following what we did, other countries--the U.K., EU, and 
Canada have announced similar designations against corrupt 
actors threatening Moldova's democracy. Then on May 30 of this 
year, the EU imposed restrictive measures including asset 
freezes and travel bans on seven individuals under a newly 
established regime targeting people responsible for actions 
aimed at destabilizing, undermining, or threatening the 
sovereignty and independence of Moldova.
    I share this to show you we are leading the way on this, 
and we are also working with likeminded countries to go after 
those people who are fomenting these things inside of Moldova. 
This is something--sorry to--and you may hear this from the 
speaker. It has been completely welcomed by the Moldovan 
Government. They celebrated this when it happened last fall. It 
was a major bilateral success.
    Representative Veasey: You talked about the military, you 
know, help that they need. You talked about the energy security 
piece, which is obviously very key, particularly when they were 
bad Russian--when there are bad European winners. Is there any 
other thing that needs to be done that can really help Moldova 
sort of mitigate some of the risks that they have with being so 
close to Russia?
    Mr. Bischof: I am just double checking my notes to see, 
because, you know, the key areas that I came in that I wanted 
to share with you were the anticorruption reforms, I think we 
have discussed that, energy security and diversification, 
extremely important. Third is the security assistance. You 
mentioned that. Then finally, what were--we have done and what 
we are continuing to do on refugees. I think those are perhaps 
the four main areas that I would focus on as we go forward. We 
are making good progress. Moldova is making great progress on 
these things. I would like to continue to work on those.
    Representative Veasey: Are they doing enough, as it relates 
to social media and other sorts of manipulation in that area?
    Mr. Bischof: I know that we are working with civil society 
groups to improve the way that information is presented. Your 
detailed question on social media, I would need to get back to 
you on that.
    Representative Veasey: Okay. Okay. Then also too, because 
you you have mentioned Transnistria several times. What is your 
sense of what the average person there ultimately wants? 
Because I think that because of the sort of peculiar situation 
of where they sit, and, of course, how they can ultimately 
affect Moldova's overall security, that is a very sensitive 
area. When people there say that this is what they ultimately 
want to see, exactly what is it? Can you give us a sense of 
that?
    Mr. Bischof: It is a challenging question. I think that 
there is a significant human rights situation in Transnistria 
that bears talking about. De facto authorities continue to 
restrict fundamental freedoms and hold political prisoners. 
Progress on human rights in Transnistria is a critical piece of 
Moldova's reform progress, and it is imperative for their 
future EU accession. Obviously, the State Department regularly 
engages on political prisoner cases, pressing for release and 
encouraging our colleagues in Chisinau to prioritize the work 
of public authorities focused on improving human rights in 
Transnistria. So I think, you know, by way of answer to your 
question, I think the people there want what all people want. 
They want freedom and the ability to have the right to speak. 
We are quite concerned about the human rights situation there.
    Representative Veasey: Yes, yes. No, thank you. I am almost 
out of time. Thank you.
    Representative Lawler: Thank you, Commissioner Veasey.
    Oh, one follow-up question on Commission Veasey's line of 
questioning with respect to Ilan Shor, who is currently in 
Israel. Has the State Department done anything with respect to 
seeking extradition to Moldova?
    Mr. Bischof: It is a difficult question for me, because I 
am not able to comment on ongoing law enforcement matters. This 
is exactly the kind of question I can take back and give you a 
separate answer on, sir.
    Representative Lawler: I would appreciate a separate 
answer. Thank you.
    With that, I want to thank our witness, Mr. Bischof, for 
his testimony. That concludes panel one. We will now welcome 
our guests here from Moldova for panel two. I would ask that 
Mr. Grosu and Ms. Gherman and Mr. Hill join us at the witness 
table.
    All right. Well, thank you for joining us here today. I 
will now ask Mr. Grosu to provide his testimony and give him 5 
minutes.

  STATEMENT OF IGOR GROSU, PRESIDENT OF THE PARLIAMENT OF THE 
                      REPUBLIC OF MOLDOVA

    Mr. Grosu: Honorable Chair Lawler, honorable Members of the 
Congress, distinguished audience, thank you for organizing this 
discussion. It is important for us to talk about the essence of 
events occurring in Eastern Europe, in particular in the 
Republic of Moldova. It is a country that has been for almost 1 
year and a half in close proximity of a brutal war in which 
thousands of innocent people are dying, and which forced 
millions of Ukrainians to flee their homes. Today, Ukraine is 
fighting to keep us safe, to keep Europe safe. Ukraine needs 
our assistance.
    From the very first day of the invasion, Moldova joined the 
international community in condemning the war of Russian 
Federation against Ukraine and requesting the immediate 
cessation of aggression. The Republic of Moldova, a country 
with less than 3 million people, sheltered more than half a 
million of refugees who fled the war. At the peak of the 
influx, our country's population increased by 4 percent. About 
more than 80,000 refugees have chosen to further stay with us.
    At the invitation of Mr. Stefanchuk, Chairman of the 
Verkhovna Rada, I personally visited Kyiv and its suburbs 
Bucha, Irpin. What I saw there can only be called a genocide. 
Peaceful men, elders, women, and children killed in their homes 
just because they had the pride to call themselves Ukrainians. 
When Russia started the war against Ukraine, all our states 
institution worked hard to keep the peace. We did our best to 
ensure that all the citizens of Moldova, including those living 
in the separatist Transnistria region, continue to live in 
peace.
    While we are struggling to keep the peace, our economy and 
our society bear the weight of Russian war against Ukraine. The 
high price of natural gas and the Russian attempt to weaponize 
gas and oil supply triggered an unprecedented energy crisis. We 
were blackmailed by Kremlin people in the middle of winter, 
that we would freeze and have no electricity because of our 
position on the war. We resisted.
    The United States of America, the European Union member 
states, stood by us. We have light, heating, and a safe 
tomorrow. We managed to get rid of the Kremlin natural gas 
blackmail and we strengthening energy independence of the 
Republic of Moldova. For the first time in our history, we are 
able to procure gas the advantage and in the interest of our 
citizens. Also for the time, we made stocks that provides gas 
during the winter. The government set up in record time the 
fund for the reduction of energy vulnerability, which provides 
support for the most vulnerable citizens. Our friends, the 
United States of America, Romania, European Union, Germany, 
France Sweden, extend loans, grants, and direct budgetary 
support to help Moldova overcome the energy crisis this winter.
    This war has disrupted logistic chain throughout the 
region. We adapted in record time together with colleagues from 
Ukraine and Romania. We relaunch the traffic on the Berezino-
Basarabeasca railway station, through which the connection with 
the port in Romania is ensured. We facilitated the transit of 
thousands of shipments by providing a green corridor for them. 
The floating bridge over the Prut River, Leova-Bumb'ta, was 
built in no time. It is the first new bridge over the Pruit 
built since the country's independence by Republic of Moldova 
and Romanian brothers. We are grateful to USAID for supporting 
the border crossing infrastructure.
    Moldova become the first non-EU country to join the 
connecting Europe facility, the most important instrument for 
building infrastructure projects in the European Union. We 
synchronized European electric transmission network, ENTSO-E, 
and started the construction of the Vulcanesti-Chisinau 
overhead power line. The internal security hub was established 
and the EU partnership mission was launched, which will further 
help strengthening resilience and maintaining public order in 
combating threats in differen--of different nature.
    Ladies and gentlemen, all this time we have faced a wide 
spectrum of hybrid threats from disinformation and propaganda 
to cyberattacks and energy pressure. Kremlin, through its 
servant in Chisinau, is doing everything to divide us, to make 
us argue with each other, to make us weak in the face of 
threats. With the support of Congress and United States 
administration, by introducing sanctions against Kremlin's main 
agents, the threats from individuals contributing to the 
destabilization of the domestic situation have been eliminated.
    At the initiative of the President Maia Sandu, the Center 
for Strategic Communication in Combating Disinformation, to be 
created--is to be created. This information has been--this 
institution has been especially--has been especially designed 
to fight propaganda coming from Moscow, propaganda from outside 
because we know how extensive the implications of this 
disinformation can be. While the action that we have undertaken 
so far have not been enough, now everyone understand how 
serious this subject is. Some countries have already been 
successful in combating propaganda. We will learn from these 
countries. We suspended the broadcast licenses of six TV 
stations that misinformed or manipulated public opinion.
    We no longer want to be part of structures and agreements 
that have no value. The presence of the Republic of Moldova in 
the Commonwealth of Independent States structures did not and 
does not bring any benefit to Moldovans. After one of the 
founding countries of Commonwealth Independent States, the 
Russian Federation, barbarically attacked another founding 
State, Ukraine, occupying its territories and killing its 
citizens, this organization can no longer be called a 
commonwealth. Therefore, during the current parliamentary 
session we initiated the procedure for withdrawal of the 
Republic of Moldova from the agreement of the Inter-
Parliamentary Assembly of the Commonwealth of Independent 
States. We are considering withdrawing from many more 
agreements. We will denounce everything that goes against our 
national interest.
    Despite the crisis that befell Moldova, we started making 
changes in the most important areas. We firmly and loudly 
declare both at the authorities and citizens level that we see 
the future of Moldova in the great European family. We intend 
to advance on the complex path of European integration. The 
efforts to transform the country are focusing on the justice 
system reform and the fight against corruption. These are the 
key commitment of the government I represent, and we will see 
them through. We are determined to have honest judges and 
prosecutors, as evidenced by the vetting process that we are 
now in full swing. Our country was damaged due to the weak and 
corrupt judicial system. Therefore, a total cleaning and reset 
of the justice system was indeed needed.
    All this systematic reform to improve the functioning 
system of the market economy bring us ever closer to our 
aspiration to bring Europe home to the Republic of Moldova. We 
are working to fulfill the nine recommendations of the European 
Commission intended to consolidate the rule of law and to 
prepare our integration into a single European market. The 
assistance provided by the United States was crucial to advance 
our goal, especially during these challenging times. We are 
extremely grateful for your support and for the trust you have 
in Moldova transformation. We would like to especially comment 
on the effort of the U.S. Congress in bolstering our resolve to 
consolidate democracy, improve the living standards to our 
citizens. Through this joint efforts, we will manage to restore 
our peace--to restore peace in the European continent, promote 
democratic values, integrate European future for the Republic 
of Moldova. Thank you.
    Representative Lawler: Thank you. President Grosu.
    I now recognized Ambassador Hill for 5 minutes.

  STATEMENT OF WILLIAM HILL, AMBASSADOR, GLOBAL FELLOW AT THE 
                         WILSON CENTER

    Mr. Hill: Thank you very much, Mr. Chairman. Chairman 
Lawler, Chairman Wilson, and other members of the Commission, I 
want to thank you for the opportunity to testify on Moldova, a 
subject to which I have devoted a substantial I have developed 
a deep affection. It is also a great pleasure for me to return 
to the Helsinki Commission. I first worked with commissioners 
and staff in 1985, and have consistently come back and worked 
with the Commission, met frequently over the succeeding four 
decades. It is always, always great to be back here and to 
contribute to your work.
    I have already submitted written testimony, which I request 
to be accepted into the record. In my oral remarks today, I 
would like to emphasize and elaborate a few points from this 
testimony. The key thing, as you have heard, Moldova today 
faces grave threats, no argument. The war in Ukraine is 
terrible. At the same time, there are unprecedented 
opportunities.
    Russia's expansion of the war, the massive attack on 
Ukraine in February 2022, upended both of the regional and 
global political and security order. The war has had a 
particularly great effect in this respect on Moldova. For a 
time, Moldova had a realistic fear that Russian troops in 
southern Ukraine would reach the Moldovan border. The most 
immediate military threat has passed. The Moldovan military is 
dealing with effects of the war, such as missiles--stray 
missiles, or missiles intentionally traversing its airspace, 
but--and is responding to that with U.S. assistance that should 
be continued. I welcome that. Hundreds of thousands of 
Ukrainian refugees have been either given passage, and over a 
hundred thousand are still being sheltered in Moldova despite 
the strain this has put on Moldova.
    Moldova's relations with Russia have deteriorated markedly 
since February 2022 despite President Sandu's efforts when she 
came into office to create a decent and stable working 
relationship. This is because of the war in Ukraine certainly, 
but there are other factors. Historically, Russia has sought to 
ensure a friendly, pliable government in Chi'in'u by its 
influence and support for the breakaway Transnistrian region. 
Transnistria is not an aim in itself for Russia, but a means to 
an end of controlling all of Moldova.
    Since 2014, Russia has not really been able to supply 
people--resupply people or physical goods to Transnistria, so 
they have begun to work through other means such as energy or 
political destabilization in Moldova. Since October 2021, 
Russia has manipulated both supply and price of natural gas to 
Moldova. Moldova is a hundred percent dependent--or has been--
was a hundred percent dependent on Russia for its energy. This 
is changing. It is difficult, and what has happened because of 
the difficulties in finding new supplies, prices for energy 
have gone up sometimes 10 times more in Moldova. This has 
resulted in unhappy consumers and political discontent, and it 
is a real threat to the regime--to the current administration, 
excuse me, in Chi'in'u, and the U.S., I believe, should do 
everything it can to help meet the immediate threat of high 
energy prices as well as the longer-term process that Speaker 
Grosu has described of finding alternative sources and building 
infrastructure.
    Russia has also injected itself into domestic politics in 
Moldova. I will cite only two instances--there is just not 
enough time to go into all of the details--but Russia has 
centered on the 'OR Party, the smaller of the two opposition 
parties represented currently in Moldova's parliament. 
Members--parliamentarians from the 'OR Party have been up in 
Petersburg and Moscow consulting with the Russians, and the 'OR 
Party has helped organize and lead massive protests against 
economic and energy, you know, prices in Moldova during the 
past winter. This relationship continues.
    In Gagauzia, as elsewhere, Moscow takes advantage of real 
economic problems--the autonomous region of Gagauzia--takes 
advantage of real economic problems and legitimate social, 
economic, and political aspirations to try to seek political 
destabilization and change in government in Moldova. These 
Russian efforts can and are being countered, but this creates 
problems and diverts the attention of the Moldovan government 
from other, you know, key things that they are trying to do.
    Finally, Transnistria--over three decades Moldova has been 
best known internationally for the separatist problem, the 
separatist conflict that has remained unresolved with the 
Transnistrian region. Without going into the complicated 
history of efforts at seeking a political settlement, just let 
me say that I believe the war in Ukraine has opened a window 
for making real progress on bringing Transnistria back into 
Moldova.
    Transnistria today is very different from the Soviet quasi 
--the Soviet region that it was when it broke away from Moldova 
in 1990-92. Left Bank businesses, enterprises on the Left Bank 
have been really integrated into Moldova's economic and legal 
space through the EU Deep and Comprehensive Free Trade Area 
instituted in 2015. They register in Moldova, they operate 
according to Moldovan law. They are inspected by Moldovan 
Customs.
    Transnistria--the Sheriff conglomerate in Transnistria has 
a football team that is in the European Champions League. They 
have no real desire to go back to Russia and--to Russia for 
these things.
    Local authorities and--many local authorities, elites on 
the Left Bank, irrespective of what they might say or show in 
public, are not supportive of Russia's war in Ukraine, and see 
the war as a real threat to the security and stability of their 
own region and their livelihoods. Now Transnistria still 
receives support from Russia economically. There are 1,500, 
1,600 Russian troops in Transnistria; about a quarter of those 
are so-called peacekeepers. The rest are guarding one large 
base that has about 20,000 metric tons of old Soviet-era 
ammunition there. An equally significant problem is a large 
number of civilian officials sprinkled through Transnistrian 
civilian and security institutions. The Moldovan Government--
not just this one, but every Moldovan Government since 
independence has asked the Russians to withdraw their troops, 
and the Russians continue to fail to do that. They should do 
that right away.
    The larger question--it is going to take a while to deal 
with the Russian influence that remains, I have spent a lot of 
time in Transnistria. I lived in Moldova for 7 years during two 
terms as the OSCE head of mission, and I would say today, more 
than ever, the vast majority of citizens living in Moldova's 
Transnistrian region desire the same things as their 
counterparts on the Right Bank. They want peace, stability, and 
the possibility, the capability of pursuing prosperity.
    The war in Ukraine has shaken--although not totally 
eliminated--a considerable degree of popular faith in the 
region in Russia. This, I believe, creates a real opportunity 
to convince, for, you know, international and Moldovan domestic 
efforts, to convince Left Bank elites and citizens that their 
way forward is to be found in and with--together with Chi'in'u. 
I think that the U.S. should join in international efforts and 
in supporting Moldova in the effort to make progress on this 
score.
    I have not mentioned corruption at all, which is the main-- 
the main point of this government. They are making progress, 
but it is going to take a lot of time, so they are going to 
need support in the anti-corruption efforts, rooting they are 
concentrating on the judiciary and prosecutors, but money 
laundering--massive money laundering from Russia through to 
Europe was a problem over the last decade, and they are working 
on that, too, in terms of the banking, insurance, and 
securities industries. There are results, but these efforts are 
going to take time to show really lasting changes.
    Consider our own experience. It took 40 years or more to 
deal with the Cosa Nostra and to root them out of American 
life. These things do not happen at once.
    The Moldovan is dedicated to anti-corruption and European 
integration. These are goals that we should and must help them 
pursue because Moldova is a key element in the changes in 
Europe and the region, and it is a key element in Ukraine's 
success, too.
    I will just close. Twenty years ago I helped eliminate over 
500 Russian Soviet-era tanks, armored personnel carriers, and 
heavy artillery from Moldova's Transnistrian region. Imagine 
what the front behind Odessa would look like if those things 
were still there. This was largely because of U.S. assistance 
and working through the OSCE. We need to continue these efforts 
--bilaterally, with the OSCE, with the EU, other international 
bodies in order to help Moldova make it through this time of 
challenge and achieve their aspirations in joining Europe, 
fighting corruption, and bringing Transnistria with them in 
this.
    Mr. Chairman, I thank you and all of the commissioners for 
this opportunity to appear before you today and to express 
these views. Thank you.
    Representative Lawler: Thank you, Ambassador. I would just 
let members know we have about 20-plus minutes or so for 
questions, so we will try to move expeditiously.
    Mr. Grosu, since the election of President Sandu and the 
change in power in the legislature that followed suit, leaving 
your party in the majority, things have certainly changed in 
Moldova, and in my opinion, for the better.
    What are your priorities as speaker that the parliament is 
currently working on?
    Mr. Grosu: Thank you, Chair. For this year, immediate 
priority, I say for--not only for Moldova but for Ukrainian 
also --is to be able to fulfill all the recommendations that we 
see from the European Union, and at the end of the year, to be 
able to receive the opening of the negotiation for European 
integration.
    It is crucial, it is strategic for our--for both countries, 
and of course, it will encourage those big part of the society 
that desire to be a part of the European Union. The role of the 
parliament is a crucial one because it is a place where we vote 
the laws, but it is also the place where we explain to the 
people, yes, for all meetings from the parliament, why we 
promoting this reform or that reform, especially the justice 
reform. The justice reform is core reform in our European path 
because it took other sectors like investment, or climate, or 
social protection, health--it is directly dependent on the 
progress in justice reform.
    Thank you for United States position--tough position, and 
you was the first country that applied the sanctions against 
oligarch and those who work in partnership with Russian 
Federation, trying to destabilize the political situation, 
paying for protests, trying to corrupt the politicians, and we 
have, fortunately, the politicians that are corrupted by the 
Russian Federation.
    One of them now is sentenced already for 15 years. We are 
speaking about Shor--he is now in Israel. We have to continue 
because the people--Moldavian people, what they are waiting 
for, they are waiting for justice.
    Representative Lawler: Have you received, with respect to 
Mr. Shor, has there been any dialog with the government in 
Israel with respect to extradition?
    Mr. Grosu: The last information that we have is we sent it 
to the Israeli authorities--all needed updated documents after 
the final decision of the appeal court, now are looking for the 
actions of Israeli authorities.
    Representative Lawler: Very good. Ms. Gherman, given the 
focus on accession to the EU, and your role as chair of the 
foreign relations committee of the Parliament, what work are 
you focused on with respect to strengthening the relationships 
within the EU and really helping advance the cause with respect 
to accession to the EU?

  STATEMENT OF DOINA GHERMAN, CHAIR OF THE FOREIGN RELATIONS 
     COMMITTEE OF THE PARLIAMENT OF THE REPUBLIC OF MOLDOVA

    Ms. Gherman: Thank you, Mr. Chairman, ladies and gentlemen, 
dear friends of Moldova.
    First of all, I would like to thank you, and we are really 
grateful for your strong commitment to support Moldovan people 
and Moldova's European path. Of course, today our country's 
efforts are concentrated around the national project of 
European integration. It is our first priority, and we are 
working hard on those nine recommendations formulated in the 
opinion of European Commission.
    Also, there is a second important process, mainly on the 
platform of committee on foreign affairs and European 
integration, and it is about the key--[inaudible]. We have 
already created all those 35 needed groups accordingly to their 
recommendations, working hard. We do not seek for shortcuts. We 
know that it is a hard and long path, but we are really 
optimistically looking ahead, and it is a unique challenge. We 
are just living historic times now in Moldova.
    It is not about only the will of the political class, of 
the presidency, or government, or parliament. It is the will 
and the choice of the majority of the citizens of the Republic 
of Moldova. A real example in this sense, it was the National 
Assembly of European Moldova on the 21 of May, about 80,000 
people joined in the center of capital in Chi'in'u and just 
declared hard that our path--Moldova's path is European and 
that our place is in the European Union.
    Representative Lawler: Thank you. Now my time has expired, 
so I will now recognize Chairman Wilson for 5 minutes.
    Chairman Wilson: Thank you, Mr. Chairman. Indeed, President 
Grosu and Chairwoman Gherman and Ambassador Ursu, being here 
with you today is a dream come true. I had always hoped that we 
would have the opportunity to meet with leaders of a free and 
democratic Moldova in Central and Eastern Europe, and so it is 
so exciting to be here with you.
    Then it is also exciting to be joined by Congresswoman 
Victoria Spartz. She was born in the Soviet Union, and now she 
is a champion for her birthplace, Ukraine. It--who would 
imagine that something like this could occur, and particularly 
for me. I campaigned in high school for U.S. Senator Barry 
Goldwater of Arizona who was running for president, and he 
championed Why Not Victory--liberation of his ancestral home, 
Poland, and Central and Eastern Europe. To see this come to 
life, and then--flash forward--I had the opportunity to be an 
election observer in 1990 in Bulgaria, and so it was so 
exciting. When I got there, it was stepping back to the 1930's, 
and things that I could identify. I used to pump gas, and so a 
service station in Bulgaria at that time looked like an 
outhouse with a pump out front, and I would have not known what 
it was but there were a line of cars a mile long because there 
was no gas. Then I found out they were not cars; they were two-
stroke motorcycle engines with plastic covers. Now when I go 
back to Bulgaria, it is a Circle K with a Wendy's.
    Then I am very excited to see the number of people who 
drive X5s there in Bulgaria, and we want the same in Moldova, 
and that is the X5s BMWs are made in South Carolina, and we 
want everybody in Moldova to have one. I think that is real 
important.
    How far things have come, and with that, actually--and, 
hey, you should be aware, too, this is bipartisan. I was so 
happy Congresswoman Ross pointed out the program--the State 
partnership program. The National Guard has a wonderful 
program, and I am so grateful to know that North Carolina, 
which has great professionalism, is working with you.
    With that in mind, what other specific areas can the United 
States provide what resources to promote democratic 
institutions and overall resilience to face the threats--and 
for each of you, and Mr. President, and Chairwoman.
    Mr. Grosu: Thank you. I would say that, first of all, in 
order to help us, please continue to help Ukraine. This is the 
most--the crucial approach, and please do the best you do and 
continue to help our neighbors that are fighting for our 
liberty, they are fighting for liberty of Europe, entire world.
    In case of Moldova, of course there are areas that are 
very, very important for us in energy security, despite the 
fact we managed this--those last two winters to protect our 
infrastructure, to protect our citizens, our industry. We 
understand that we have to invest, to continue to invest and to 
diversify the sources of energy, to invest in renewables, so 
please, we would like to strengthen this sector.
    Defense sector--yes, we are a neutral country, which is 
mentioned in our constitution, but in case of neutral 
countries, they have in a double manner to invest in the 
defense, and we saw how fragile is the security, especially the 
protection of aerospace. We already in the process of 
strengthening our defense capacity, aerospace protection. We 
benefit from the cooperation of United States and also of 
European Peace Facility.
    The last--but not the least--it is the business 
environment. We understand that it is hard to promote the 
investment climate, to improve the investment climate due to 
the security reason, but this is the core sector that will 
allow us--beside the security issues--to increase the people 
living conditions, and they trust in our European integration 
path.
    Thank you.
    Chairman Wilson: Madam Chair?
    Ms. Gherman: In fact, today Moldova is the most vulnerable 
neighbor of Ukraine, and this unjust war has led to significant 
security challenges, many crises--economic, energy sectors--but 
despite all these crises, Moldova has resisted in the last 
year.
    It is about giving hope to our citizens, and the 
consolidation of the whole society around the project of 
European integration is a priority for us as a parliamentary 
majority, as a governing party. It is extremely important now 
to continue to support our neighbors and friends, Ukraine, and 
we strongly believe that Ukraine will win, and together with 
Ukraine--Moldova and Ukraine.
    My appeal to each of one is not to uncouple Moldova from 
Ukraine because a safe Ukraine is a safe Moldova, and a safe 
Ukraine is a safe Europe. Just please continue to be with us, 
and continue to support as well as Ukraine's and Moldova's.
    Chairman Wilson: Best wishes for continued success. I yield 
back. Thank you.
    Representative Lawler: Thank you, Chairman Wilson. I now 
recognize Representative Ross for 5 minutes.
    Representative Ross: Mr. Chairman, since Congresswoman 
Spartz has not had an opportunity to speak, and I have spoken 
quite a lot, and the hour is getting late, I will yield all of 
my time to her, and thank you.
    Representative Lawler: Thank you.

     STATEMENT OF VICTORIA SPARTZ, U.S. HOUSE, FROM INDIANA

    Representative Spartz: Thank you. I really appreciate it. 
Well, I will try to be brief. Thank you for being here, and I 
understand the challenges you have, so I will just kind of 
quickly just get to the questions. I apologize if you already 
covered this question.
    I think, Mr. Grosu, this question for you. You know--and I 
know--I think Ambassador mentioned that it is important to have 
lasting changes; you know, it is changes that is actually 
structural changes when you deal with issues of corruption and 
really strengths of--of weakness of democratic institution. It 
is been a problem. It is over 30 years as opposed--so the 
country still struggles with that.
    Can you give me three examples of some of the concrete 
reforms, structural reform you are doing in your judicial 
system, electoral system, or your financial system 
transparency--just specific legislation, give me examples that 
you make sure that you actually address it?
    Mr. Grosu: Thank you. Speaking about the justice reform, 
like Ukraine, we applied--how to say-- an ordinary--not an 
ordinary approach of preventing the judges--those who candidate 
for superior courts.
    Representative Spartz: Do you have your judges elected or 
are they appointed?
    Mr. Grosu: Well, we have all them--all those eight that are 
already in the superior court of magistracy, they are passing 
through this process of--
    Representative Spartz: What about the downstream, you know, 
like a local and other judges? Do you elect judges or are they 
actually appointed by president?
    Mr. Grosu: We will continue with this process with other 
judges--all judges. They have to pass through this process.
    Representative Spartz: What is this process? You start 
electing or you appoint--because I see the problems--
    Mr. Grosu: No, no, no.
    Representative Spartz: What is your process? Are you 
changing--
    Mr. Grosu: No, they are not elected by the voters. They are 
appointed--
    Representative Spartz: Who is it that actually appoint 
them?
    Mr. Grosu: The new composition of the Superior Council of 
Magistracy--those who pass the pre-vetting, this--
    Representative Spartz: Who appoints this council?
    Mr. Grosu: A part was appointed by the parliament, no 
judge--those who are no judges was appointed by the parliament. 
They represent the civil society, they are coming from the 
civil society, and the judges, they are appointed by general--
    Representative Spartz: They are reevaluated--are they 
reevaluated?
    Mr. Grosu: They are appointed by general assembly of the 
judges from the Republic of Moldova.
    Representative Spartz: They are reelected every few years 
or--
    Mr. Grosu: No, they have a mandate--
    Representative Spartz: Well, just one thing, and I do not 
need to get--I see the problems a lot of time why there is 
centralization of power happen in a lot of former republics 
because there is so much at executive level central government 
appointment of prosecutors and judges. I do not want to get in 
details, but it is very--if you want to have--you know, look, 
we have a lot of judges, prosecutors selected at different 
levels, and voters have some input.
    You know, what about your lateral system? Are you looking 
at some of financial systems, specific laws where you improve 
in framework to have more stability?
    Mr. Grosu: Speaking about electoral system, political 
system, let's say, we have proportional system, and in our 
opinion, the corruption is coming the most--the region of 
corruption is coming from the political parties.
    Representative Spartz: Are people elected by party lists, 
or they actually represent you like here?
    Mr. Grosu: That is why we invested in the Central Electoral 
Commission that should be very careful and, yes, have enough 
capacity to monitor and evaluate how the parties are financed, 
how they spend--
    Representative Spartz: I see big problems, and I am not 
going to--you know, but a lot of time when there is a party 
list, a lot of countries--and I am just saying I do not 
understand your system. People start serving the party versus 
in United States. I do not care sometimes party does not like 
me, and I am very outspoken, but as long as my voters like me, 
I get elected. It is important, that input and connection. I 
just wanted to share with you some of the observations that I 
have seen in a lot of Post-Soviet countries, including Ukraine. 
They have huge challenges with that, too.
    What about financial system and transparency? What are you 
trying to do there?
    Mr. Grosu: Yes. Yes, yes. We improved the bank ownership 
transparency, so all the owners of--that have a--yes, they 
participated to playing in the banking system, they have to 
prove who they are, how they get the money, yes, and how 
transparent is the sector. We improved the capacity of national 
bank, and those who could not--or was not able to argue the 
origin of the money, so we took--the national bank take it.
    Representative Spartz: Yes, it is very important. I am 
just--I am not--I have only got 15 seconds left, but I just 
kind of wanted to share my observation.
    Ms. Gherman--I am not sure if I say your name correctly--
just quickly from you from Transnistria situation, you know, 
are you doing something to deal with the situation? It was so 
cold, peacekeeper contentions are still existing there because 
this is not a big issue, but as Ambassador said, it is an 
opportunity.
    Are you taking any steps as the government to resolve this 
situation because I think Moldova has an opportunity to become 
strong country, but has to deal with that situation?
    Ms. Gherman: Yes, thank you for the question. Of course, 
the message is the same. We request to withdraw the troops from 
the Moldovan territory. We are consequent, but still now 
concentrating all our efforts on European integration. We 
believe that we cannot just put together the process of the 
European integration and the Transnistrian conflict, so there 
are two different processes, and two different terms of period.
    Representative Spartz: Well, I think my time has expired. 
Thank you.
    Representative Lawler: Thank you, Commissioner Spartz.
    I want to thank our witnesses for joining us today. It is 
an important conversation to have. The United States and the 
relationship with Moldova is critical to me, on a personal 
level, but certainly to our countries it is important to see 
Moldova continue to do the work that has been done in recent 
years to reform, to address the corruption that had gone on in 
prior administrations, to take on the oligarchs, to continue to 
grow the economy, to address the energy challenges, and 
certainly, to continue to build those relationship with the 
European Union. I think the accession into the EU is critical 
for Moldova's future. Obviously, the relationship with Romania 
has been very strong, and we thank the Romanian Government for 
continuing to be a strong ally to Moldova. Certainly we want to 
see a free and prosperous Moldova moving forward. I appreciate 
your testimony, I appreciate the work that all of you are 
doing. Ambassador, thank you for providing your insights into 
Moldova and the conflict in the region, as well as obviously 
some of the historical view on Transnistria,
    Again, thank you for this valuable testimony. With that, we 
will conclude this hearing, but I thank you very much on behalf 
of the Helsinki Commission for coming here and participating in 
this hearing today. [Sounds gavel.]
    [Whereupon, at 4:02 p.m., the hearing ended.]

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                 Additional Submissions for the Record

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                  Additional Submission for the Record

                                 ______
                                 

 STATEMENT OF DANIEL R. BISCHOF DIRECTOR FOR EASTERN EUROPEAN AFFAIRS, 
                        U.S. DEPARTMENT OF STATE

    Good afternoon! I would like to thank Chairmen Wilson and Cardin 
and Ranking Members Cohen and Wicker for convening this hearing today. 
I appreciate the opportunity to discuss the ways the United States is 
demonstrating its support for Moldova's sovereignty, territorial 
integrity, and continued democratic development. The Helsinki 
Commission's active engagement with Moldova has been critical in 
deepening our bilateral relationship.
    Moldova is on the frontline of our strategic priorities for 
Europe--strengthening democracy and rule of law, enhancing European 
energy security, and ensuring our continued unity in standing up to 
Russia's war of aggression against Ukraine.
    With the support of Congress, the Administration has committed 
approximately $628 million since February 2022 to help Moldova address 
the impacts of Russia's War, build political and economic resilience, 
and deepen Euro-Atlantic integration.
    Moldovan voters sent a clear message in their 2020 and 2021 
elections. They called for tangible progress on the country's path to 
European integration which means a renewed fight against corruption and 
more accountable institutions enforcing the rule of law. The United 
States has worked closely with Moldova to advance these objectives. For 
example, the State Department and USAID have supported Moldova's multi-
stage effort to increase justice sector transparency and integrity. 
U.S. assistance to civil society is reinforcing its critical role in 
working with the government to strengthen Moldova's democracy, promote 
accountability, and advance an inclusive human rights agenda.
    Moldova's hard work was reflected in the European Council's 
decision to grant Moldova EU candidate status in 2022. We engage 
continuously with EU counterparts and member states to align our 
support for Moldova as it moves toward EU accession.
    On security, Moldova is investing in defense of its sovereignty and 
territorial integrity--consistent with its constitutionally guaranteed 
neutrality. The United States is committed to supporting Moldova's 
military modernization, along with efforts to strengthen border 
security and law enforcement capacity. U.S. defense assistance to 
Moldova increased from $3.3 million in 2021 to $29.6 million in 2022, 
and we have seen similar investment increases through the EU's European 
Peace Facility.
    In the economic and energy sphere, Russia's War against Ukraine has 
caused deep shocks for Moldova, elevating inflation and energy prices 
and cutting off export markets. With extensive U.S. and EU support, 
Moldova has connected its electrical grid to the rest of Europe and 
begun trading gas in European markets for the first time--both critical 
steps in reducing dependence on a Russia-controlled energy supply.
    This Administration, with the support of Congress, is allocating an 
additional $300 million for Moldova's energy security to offset energy 
shocks and drive long-term energy security. We also have helped Moldova 
increase global competitiveness in key sectors--such as tech and high-
value agriculture--and unlock new opportunities in Western markets.
    We greatly appreciate Moldova's continued generosity in hosting 
more than 700,000 refugees from Ukraine since February 2022, over 
100,000 of whom are still there, with many hosted in private homes. The 
United States and international partners will continue to support 
Moldova in addressing the immediate and long-term impacts of the 
humanitarian crisis caused by Russia's War against Ukraine.
    Across these priorities, we continue to see Russia's attempts to 
undermine Moldova's reform trajectory through ongoing instability 
fomented by the continued presence of Russian troops on Moldovan 
territory, energy coercion, destabilization campaigns, and illicit 
financing of Kremlin-controlled political entities. The United States 
has worked with Moldova and our European partners to build Moldova's 
resilience and counter Russia's malign efforts in the information 
space.
    Last, the United States remains committed to supporting OSCE-led 
efforts to promote a peaceful, comprehensive, and lasting settlement of 
the Transnistria conflict. At the OSCE and beyond, we will continue to 
call on Russia to fulfill its longstanding commitments to withdraw its 
troops and munitions from Moldova, where they remain entrenched without 
Moldova's consent.
    As President Biden said earlier this year, the United States is 
proud to stand with President Maia Sandu and the freedom-loving people 
of Moldova. The United States will continue to advance Moldova's 
democracy, prosperity, and security as we support the Moldovan people 
in building their chosen European future.
    Thank you again for your time today. I look forward to your 
questions.

                 MOLDOVA: CHALLENGES AND OPPORTUNITIES

      TESTIMONY OF WILLIAM H. HILL, GLOBAL FELLOW WOODROW WILSON 
                   INTERNATIONAL CENTER FOR SCHOLARS

    I wish to thank the Helsinki Commission, in particular Chairman 
Wilson and Co-Chairman Cardin, for this opportunity to address the 
dramatic changes in the region, posing both existential threats and 
rare opportunities for the Republic of Moldova. Russia's aggression and 
expansion of the war in Ukraine has upended the regional and global 
political and security orders. The Russian advance toward Odesa in the 
spring of 2022 and the flow of hundreds of thousands of refugees from 
Ukraine into and through Moldova tested the capacity of Moldova's 
society and government and threatened the very existence of the 
Moldovan State. Moldova's Government and people responded bravely and 
generously to these challenges.

                        SUMMARY AND INTRODUCTION

    The most immediate threats posed to Moldova by Russia's war in 
Ukraine have receded somewhat, but the effects of the war on Europe's 
political and security order have provided real opportunities for 
Moldova. The European Union officially declared Moldova a potential 
candidate for membership, and Chisinau has now met three of the nine 
conditions set by Brussels for opening membership negotiations. Russian 
political interference and manipulation of natural gas supplies and 
prices have inflicted hardships on Moldova's population and government, 
but have also opened a possible path to ending Moldova's total 
dependence on Russia for its energy. Finally, the political and 
economic upheaval created by the war in Ukraine offers opportunities 
for further progress in integrating the Transnistrian region into 
Moldova's social, economic, and political structures, against the 
background of a regional geopolitical reorientation.
    Moldova was already in the midst of a fundamental social and 
political transformation before the geopolitical crisis caused by 
Russia's massive attack on Ukraine in February 2022. President Maia 
Sandu was elected in November 2020 on a platform calling for an all-out 
fight against Moldova's massive corruption as the key element in 
movement toward integration with Europe. President Sandu's Party of 
Action and Solidarity [PAS] won a decisive victory in July 2021 
legislative elections, obtaining a comfortable working majority in 
parliament. Since then, President Sandu and her government have been 
engaged in continuous efforts to root out and replace corrupt 
officials, especially in the judicial system, and to mitigate the 
effects of almost a decade of a captured State.
    These efforts are showing some modest success, but will take time. 
The prospect of EU membership, along with continued support and 
assistance from the U.S., will increase the prospect of meaningful, 
lasting improvements. There are other major challenges facing Moldova 
with which the U.S. and our Allies can be helpful. Russia's energy 
blackmail has caused economic distress, with domestic political 
consequences. This short-term issue must be addressed successfully to 
ensure the present government's ability to continue with its longer-
term reform efforts. While the fighting in Ukraine has not physically 
touched Moldova, the consequences of the war have created social, 
economic, and security challenges for which continuing external support 
and assistance will be required.
    These needs and challenges are interconnected, not easily separate, 
and need to be addressed with a comprehensive policy of support and 
assistance for Moldova's process of domestic reform and geopolitical 
reorientation. In this testimony, I will address the following key 
elements:

      The political and demographic background to Moldova's 
current situation;

      The ongoing fight against corruption, strengthening of 
rule of law, and the problem of government and institutional capacity;

      Russian political meddling on the right bank, including 
Gagauzia, and economic pressure brought against the Moldovan 
government;

      Economic and energy issues, including those resulting 
from Russian pressure and Russia's war in Ukraine;

      Security issues facing Chisinau, including effects of the 
war and the Russian military presence in the Transnistrian region; and

      The current State of relations between Chisinau and 
Tiraspol and prospects for integrating the Transnistrian region.

                    MOLDOVA'S COMPLEX ELECTORAL MAP

    Maia Sandu and the Party of Action and Solidarity [PAS] first came 
to power in June 2019 in a broad national revolt against 10 years of 
corrupt oligarchic rule, the latter years of which were dominated by 
now-fugitive oligarch Vladimir Plahotniuc. Sandu became Prime Minister 
in a short-lived left-right coalition with the pro-Moscow Socialist 
Party [PSRM]. After the coalition fell apart, Sandu successfully 
challenged President and PSRM head Igor Dodon in the November 2020 
Presidential elections on an anti-corruption, pro-European integration 
platform. Her party then won a resounding victory in legislative 
elections in July 2021, giving PAS both the presidency and an absolute 
majority in the parliament.
    In achieving these landmark victories, Sandu and PAS extended their 
appeal beyond the traditional center-right electorate composed 
primarily of Romanian speakers, with Moldovan or Romanian surnames, 
especially in the capital region. In elections over the thirty years 
since Moldova achieved independence the Moldovan electorate has been 
almost equally split between two blocs: one right and center-right 
oriented toward Romania and the West, and another left and center-left 
composed of Russian speakers and ethnic Slavs, and oriented toward 
Russia or Russian culture. In her 2020 and 2021 campaigns President 
Sandu made inroads into this second bloc with her anti-corruption 
message.
    The other major factor in President Sandu and PAS's electoral 
success in 2020-2021 was a massive increase in voting by the Moldovan 
diaspora, almost all of which tilted heavily in Sandu's favor. At least 
500,000 Moldovan citizens live and work abroad, most of these of prime 
working age. Most of these were thought to be potential center-right, 
pro-Europe voters, so left and left-center Chisinau leaders long 
resisted measures to facilitate voting by the diaspora. For a number of 
reasons, including the pandemic, voting by the diaspora was made easier 
in 2020. The result was massive support for Sandu and PAS. It is not 
yet clear whether this pattern will continue in elections expected in 
2024 and 2025. Whatever the results of future elections may be, the 
2020-2021 votes have presented President Sandu and PAS a rare 
opportunity to effect far-reaching, fundamental reforms in Moldova's 
governance, economy, and political orientation.

              ANTI-CORRUPTION, RULE OF LAW, AND GOVERNANCE

    The central message of President's Sandu's campaigns and 
administration is anti-corruption. Throughout the post-cold war period 
Moldova has been plagued by endemic corruption. This phenomenon 
increased in scope over the past decade, as Moldova's government and 
economy were increasingly dominated by Vladimir Plahotniuc and an array 
of allies and associates. The oligarchic capture of the Moldova State 
was best exemplified by the so-called ``theft of the century'' of 
November-December 2014, when approximately one billion dollars--almost 
10 percent of Moldova's GDP at that time--was looted from three major 
Moldovan banks through a complex series of non-performing loans.
    While some of the principal culprits in this massive theft have 
been identified, indicted, or convicted, responsibility and involvement 
for this theft extended deep into Moldovan elites from all political 
parties. The theft is also only the most notable of a number of corrupt 
schemes and arrangements that looted the Moldovan economy over the past 
decade. Major political figures, government officials at all levels, 
prosecutors, and especially the courts were all deeply involved in this 
widespread corruption. Many anti-corruption investigations and 
prosecutions during the 2010's were actually political reprisals by 
leaders of one party against another, rather than real efforts to 
reform the system. This was the situation which President Sandu and PAS 
inherited when they came to power at the beginning of this decade.
    The Sandu administration has concentrated on reforming and re-
staffing the justice system, as the core of its anti-corruption 
efforts. This makes considerable sense, since corrupt judges and 
corrupt prosecutors were a key part in the system that allowed 
oligarchs such as Plahotniuc to prosper and seize control of the State 
apparatus. The current administration has also undertaken to 
restructure and reform the country's banking, securities, and insurance 
systems, all of which were deeply involved in money laundering and 
other corrupt activities during the reign of the oligarchs. The Sandu 
administration has also sought to reverse high-profile corrupt deals, 
such as the franchise for the control of Chisinau Airport.
    Finally, the government is pursuing those involved in corruption, 
but the process is difficult. Vladimir Plahotniuc has fled prosecution, 
and his precise whereabouts remain unclear. After many delays, Ilan Sor 
has been convicted of involvement in the 2014 theft. He leads his 
political party of the same name from exile in Israel, which has 
declined to extradite him because of his Israeli citizenship. Other 
criminal cases are in progress; many of those involved have fled to 
countries beyond the reach of Moldovan justice.
    The current administration is re-building the judicial system from 
the ground up. It has been a long, deliberate, and slow process. 
Institutions and processes have been developed to vet judges and 
prosecutors. Many have been removed, and some new, trustworthy 
candidates have been identified. The process is especially difficult, 
and not just in the justice system. Moldova is a small country, with a 
sizable portion of its working age population in residence abroad. 
Since so many political actors and government officials were touched by 
the past decade's corruption, it is especially hard to identify and 
place in responsible positions those who are untainted, whether because 
they were not at all involved, or were in government but did not 
participate in illicit activities.
    The personnel dilemma facing Moldova's anti-corruption activities 
is an impediment to almost all of Moldova's current reform efforts. The 
government simply does not have enough capable people. Financial 
assistance can help, and the US and the EU are providing a great deal. 
However, external donors also need to provide people, and to help 
convince talented Moldovans to return to their country to join and 
assist in the reform efforts. It took over 20 years for corruption in 
Moldova to reach its dimensions at the fall of Plahotniuc in 2019. It 
will take considerable time to eradicate, but I believe progress is 
being made.

                       RUSSIAN POLITICAL MEDDLING

    At the start of her administration President Sandu took a 
conciliatory posture toward Russia and the Russophone elements in 
Moldovan society. Moscow did not respond with a similar approach. In 
August 2021 Russia offered a favorable deal on natural gas supplies in 
return for a Transnistrian settlement on terms long known to be 
unacceptable to Moldova. When Chisinau declined the package deal, 
Moscow quickly began a pressure campaign involving manipulation of 
natural gas prices and supplies. This pressure has continued and at 
times intensified after the Russian attack and expansion of the war in 
February 2022.
    The aim of this pressure has been to ensure dominant Russian 
influence in Moldova as a whole, not just the Transnistrian region, and 
a friendly, compliant administration in Chisinau. In my view this has 
always been Russia's aim since 1992 in supporting the breakaway 
administration in Tiraspol. Since the outbreak of war in Ukraine in 
2014 Russia has been physically cutoff from Transnistria and unable to 
continue its substantial physical and personnel support to that region. 
Moscow has thus been forced to resort to other means, such as the 
energy weapon, to influence the government in Chisinau.
    The chief other lever with which Moscow has sought to influence 
Chisinau is involvement in Moldovan politics. Before 2021 Russia 
provided clear, consistent, considerable support to the Socialist Party 
[PSRM] and President Igor Dodon. In return, Dodon and the PSRM were 
seen generally to follow a political line favorable to Moscow. However, 
Moscow was clearly disappointed by the poor performances of Dodon and 
the PSRM in the 2020-2021 elections, and began looking for other 
political actors to support in Moldova.
    Russian authorities quickly settled on exiled oligarch Ilan Sor and 
the Sor Party, the smaller of the two opposition parties represented in 
the parliament elected in 2021. Even though Sor uses his own 
considerable wealth to bankroll his party, Moscow has provided 
considerable funds to the Sor Party. Sor Party deputies have been seen 
frequently traveling to Russia to meet with their counterparts. Sor 
Party representatives, with advice and support from Moscow, have been 
among the leaders of massive demonstrations in Moldova over the winter 
of 2022-2023 protesting energy prices and economic conditions in 
Moldova.
    Moscow has also meddled in the traditionally pro-Russian Gagauz 
Autonomous Region. Russia has prompted sympathizers in Gagauzia to 
protest high energy prices and various Chisinau policies. Most notable, 
Moscow provided strong support for the winning Sor Party candidate in 
the recent elections of a new regional Governor [Bashkan]. During the 
campaign Moldova refused entry to a senior Russian official seeking to 
visit Gagauzia, and an investigation is ongoing into financing of the 
Sor candidate's campaign. Nonetheless, the victorious candidate, 
Evgeniia Gutul, will be inaugurated Bashkan next week.
    The Russian efforts and discontent in Gagauzia are concerning, but 
the danger to the region and the country should not be exaggerated. The 
U.S. has provided considerable developmental assistance to the region 
over the past two decades; the warm reception recently given by the 
outgoing Governor to U.S. Ambassador Kent Logsdon is evidence that 
sentiment in the region is not solely pro-Russian. In my estimation 
there are substantial elements, likely a majority, in Gagauzia ready to 
work with Chisinau, the EU, and the U.S., given the proper approach. A 
few symbolic steps from Chisinau costing little or nothing might 
encourage such positive interaction.
    Russian disinformation also poses an ongoing problem in Moldova. 
Russian language media have always had considerable influence, in part 
due to widespread primary use of the Russian language, even among 
ostensibly ethnic Moldova population. The level and anti-government 
tone of Russian disinformation heightened after February 2022. Chisinau 
shut down several of the most egregious outlets for Kremlin 
disinformation. Contrary to some Kremlin allegations, Russian language 
media remain readily available in Moldova for those who seek 
information in that language.

                       ECONOMIC AND ENERGY ISSUES

    I have already mentioned Moscow's energy pressure on Chisinau, but 
it is worth examining energy and economic issues in a bit more detail. 
Moldova, including its Transnistrian region, since gaining independence 
has been one hundred percent dependent on Russia for its energy, 
primarily from natural gas delivered in pipelines through Ukraine and 
onward to the Balkans. From time to time Moscow has used gas prices or 
delivery interruptions to pressure Moldova. So the pressure campaign 
begun in 2021 was not unprecedented.
    Moldova's energy and economic landscape is also inextricably 
involved in the Transnistrian question, since Moldova has traditionally 
received a major portion of its electricity from the massive power 
plant in Cuciurgan in the south of the Transnistrian region on the 
border with Ukraine. While the following is a gross oversimplification 
of the history and current practice, basically Transnistria has 
received natural gas from Russia for free, which enables it to sell 
electricity to Moldova at relatively low prices. This in turn 
facilitates the operation of many enterprises and economic activity in 
general on both the left and right banks of the Nistru in Moldova.
    The war in Ukraine since 2022 has disrupted this pattern, causing 
Moldova urgently to seek other suppliers of energy and complicating 
Chisinau's energy relationship with the Transnistrian region. Prior to 
2022 Chisinau had begun to purchase electricity from Ukraine, but the 
war has made that impossible for the moment. Both Moldova and Ukraine 
have connected to the European energy grid, and Chisinau has begun to 
purchase some electricity from Romania. Over the past decade a gas 
pipeline has been constructed from Iasi in Romania to Chisinau, which 
has a capacity sufficient to supply Moldova's capital with its energy 
needs. The pipeline has recently been put into use, and as I understand 
it gas supplies other than redirected gas from Russia are being 
identified.
    The current administration in Chisinau has expressed a desire and 
intent to end the country's dependence on Russian energy. This should 
be seen in the broader context of Europe's overall movement away from 
usage and dependence on Russian energy. This process involves 
challenges both in identifying supplies and in managing prices. For 
over a year and a half, key officials from Chisinau and Tiraspol have 
negotiated division of reduced natural gas deliveries from Russia and 
prices for electricity produced by the Cuciurgan plant. Light and heat 
for the population on both banks have been maintained, but prices have 
soared, rising tenfold and more at times. This has become a critical 
political issue in Moldova, as Russia, its Sor Party allies, and the 
rest of the opposition seek to use energy price protests to destabilize 
and topple the government.
    In my view, assistance with this energy transition is probably one 
of the most important and the most urgent acts by which the U.S. can 
assist the current Government of Moldova. We share and support many of 
the aspirations and policies of the current government. However, long-
term anti-corruption, rule of law, and governance reforms are much less 
likely if the current administration is replaced because of energy 
issues with another which seeks to take the country in an entirely 
different direction.

                            SECURITY ISSUES

    At the beginning of her administration President Sandu sought to 
fashion a cooperative, if not friendly relationship with Russia. 
Moscow's actions made that impossible, first with its attempt to mis-
use the Transnistrian question and energy pressure and then with the 
war in Ukraine. Even after Russia's massive attack on Ukraine in 
February 2022, Chisinau sought to avoid burning bridges with Moscow, 
not immediately joining international sanctions against Russia.
    The most immediate effect of the war in Ukraine on Moldova was a 
massive flow of refugees. Hundreds of thousands of Ukrainians fleeing 
the fighting crossed into and through Moldova into the EU. For months 
at any one point there were at least 100,000 Ukrainian refugees 
resident in Moldova; tens of thousands still remain. Moldova has been 
exceptionally generous, especially given its limited capacity. Many 
refugees have been housed with Moldovan families, and Ukrainian 
children are being allowed to attend school in Moldova. This has been a 
particularly heavy burden on one of the poorest countries in Europe, 
yet one gracefully accepted by the government and population.
    In the initial stage of the Russian attack, during the advance 
through Kherson toward Mykolaiv, Moldovan authorities legitimately 
feared that Russian forces might reach Odesa and joint with the small 
Russian contingent in Transnistria. Fortunately, that did not happen. 
Since mid-2022 Moldova's greatest concern from the hostilities in 
Ukraine has been the occasional Russian rockets that have flown across 
and sometimes landed on Moldovan territory. There were also several 
bombings in the Transnistrian region, but in general Moldova has not 
suffered from violence or military action from the war in Ukraine.
    As a result of its experience during the heightened war in Ukraine, 
the Moldovan government has undertaken to modernize its armed forces. 
The aim, as I understand it from Moldovan officials, is not so much to 
defend Moldova against a massive military attach as to acquire the 
capability to protect Moldovan citizens against the fallout of 
conflicts in the region or small scale action, for example the ability 
to track and defend against occasional intrusions into its air space. 
Other military equipment simply needs to replaced or updated, as most 
of Moldova's equipment still dates from the cold war era.
    To effect this modernization Moldova and its Defense Ministry is 
working closely with the EU and NATO. While there has been some public 
discussion of whether Moldova should maintain the neutrality embedded 
in its constitution or possibly seek NATO membership, as of now there 
is no change in the country's neutral status. As a potential candidate 
for EU membership, Moldova is aligned in that sense. Moldova has also 
increasingly condemned Russia's war against Ukraine, and has joined 
international sanctions. For these and other reasons, Moldova's 
relations with Russia have grown increasingly testy, with frequent 
mutual accusations and denunciations. In my estimation, there is little 
prospect these relations will improve until and unless Russia ends its 
war against Ukraine.
    The best-publicized security issue in the Moldova-Transnistria 
settlement process is the continuing presence of Russian troops in 
Moldova's Transnistrian region and Moscow's repeated failure to heed 
Chisinau's demands that they be withdrawn. This is an important issue 
of principle, and is a sine qua non of any settlement, but it is 
probably far from the most difficult security issue. The number of 
Russian troops is relatively small--1500-1600--and most of the enlisted 
personnel are local residents; only a smaller number of officers are 
actually from Russia. The overall figure includes the Russian troops 
which are part of the Joint Peacekeeping Forces established by the July 
21, 1992 Cease Fire Agreement. I have been on the record since 2005 
that this peacekeeping force can and should be replaced by an 
international civilian monitoring mission.
    Transnistrian authorities have at least as many men under arms as 
the Moldovan government, in the Transnistrian Army, the Ministry of 
State Security [MGB] forces, and militarized Internal Ministry [police] 
forces. The biggest problem to demilitarization and integration of the 
region in my estimation is probably posed by the MGB. All of these 
institutions on the left bank are populated at all levels with 
secondees from Russia or local residents with Russian passports who see 
their primary allegiance to Moscow. The removal to Russia of these 
individuals should be encouraged and ensured. From my own observations 
over an extended period and from what I have been told by those who 
should know, there is little or no desire at any level in the uniformed 
military and security forces on the left bank actually to fight. This 
should help in a process of reintegration.
    The major Russian military property remaining in the Transnistrian 
region is the ammunition depot and base at Colbasna. Of an initial 
42,000 metric tons of ammunition of all types, roughly 21,000 metric 
tons remained after the withdrawals of 2003-2004. The OSCE Mission last 
visited the Colbasna base in 2007; the Mission has a comprehensive 
inventory of the ammunition remaining in Colbasna dating from that 
time. While this inventory was accurate at that time, it is almost 
certain that some ammunition has been removed in the interim for use in 
Russian military exercises in Transnistria. As a first step, a new, 
comprehensive, transparent inventory of the ammunition stocks remaining 
in Colbasna should be performed.
    Disposing of the ammunition in Colbasna will likely be a lengthy, 
expensive task. In 2003-2004 ammunition was transported from Colbasna 
across Ukraine by train to bases in the Russian Federation. It is hard 
to envision any geopolitical circumstances in the foreseeable future 
which would allow such shipments to resume. International agreement 
might be reached to sell some of this ammunition to acceptable buyers, 
but most of it will likely need to be destroyed onsite. From 2001 on 
the OSCE Mission conducted extensive studies on possible destruction of 
the ammunition onsite. Most approaches involved constructing new 
factories and/or augmenting existing enterprises, all at substantial 
cost, especially to ensure physical security and environmental 
protection. The one bright spot in this issue is that the conditions at 
the base under which the ammunition was stored, when OSCE experts had 
access to it, were generally fairly safe and secure. Given proper 
control of access and physical security, disposition of the ammunition 
should be able to be accomplished in a systematic, non-urgent manner.

                       THE TRANSNISTRIAN QUESTION

    Since the brief war in 1992 Moldova's Transnistrian region has 
received political, financial, material, and personnel support from 
Russia. In return, Transnistrian authorities repeatedly professed their 
loyalty to and alliance with Russia. The search for a political 
settlement of the Transnistrian conflict has been close to a solution 
in 1997 and 2003. The Five Plus Two negotiations facilitated by the 
OSCE, the latest iteration in this process, had considerable success in 
resolving practical issues from 2014 to 2020. However, the pandemic and 
war in Ukraine have basically stalemated the 5+2. The OSCE Mission 
provides a forum and support for direct working contacts between 
Chisinau and Tiraspol, but the Mission lately has been hobbled by 
Russian obstructionism in the OSCE's Vienna headquarters.
    Russia complains that there has not been a 5+2 meeting for over 2 
years. However, it is impossible to conceive of Russian and Ukrainian 
representatives working harmoniously in this forum while the war in 
Ukraine continues. Russia has also not made any proposals that would 
warrant consideration and action in the 5+2. Instead, Moscow seems to 
be using the lack of action in the negotiating process as a lever to 
seek influence or concessions in other areas.
    The PAS Government seems fully engaged and absorbed by Moldova's 
potential EU candidacy, and has shown relatively little interest in the 
Transnistrian question. Many PAS members apparently see Transnistria as 
an impediment to European integration. The government's Deputy Prime 
Minister and Bureau for Reintegration continue to work, and PAS 
deputies in parliament established a special commission on 
Transnistrian reintegration. To my knowledge not much new or of note 
has come of these efforts.
    In my view, the Moldovan Government may be missing an opportunity. 
The Transnistria of 2023 is not the same separatist, pro-Soviet entity 
that first broke away from Moldova in 1990. The region's economy and 
society are dominated by the Sherrif conglomerate, which may pay lip 
service to Russia but is hardly subservient. Transnistrian enterprises 
have since the late 1990's been oriented toward the European market. 
Since 2015 left bank enterprises have been a part of the Moldovan DCFTA 
with the EU, thus operating fully within the Moldovan legal and 
economic space. The region is thus well on its way to integration 
within Moldova; it is the political relationships that have yet to be 
defined.
    Sherrif's relationship with Moscow has always been rocky. Russia's 
February 2022 expansion of the war in Ukraine created risks and 
disruptions that dismayed Sherrif and many other left bank enterprises 
and elites. Transnistrian elites were always happy to receive political 
and economic support from Moscow, but they also depended on regional 
stability and good working relationships with their counterparts in 
Ukraine and Moldova. Russia's war against Ukraine disrupts a 
comfortable status quo with no apparent concomitant benefits for 
Transnistrians. Tiraspol has nothing to gain by supporting or joining 
the war against Kyiv, and a lot to lose.
    In these circumstances I believe a timely and moderate approach by 
Chisinau could reaffirm what many Transnistrians already realize 
privately: integration with Moldova is their best course to maintain 
stability and pursue prosperity. Complicated issues of property rights 
and local political authorities will need to be settled. While 
difficult, such questions are not insoluble. Leaders from Chisinau and 
Tiraspol have settled such questions before; given mutual trust and 
flexibility, they might again.
    There is no guarantee of success, but the present geopolitical 
upheaval in Europe and the world because of Russia's war against 
Ukraine offers Chisinau a rare opportunity to break with the status quo 
that has dominated the past thirty years. Moldova has already done so 
in terms of its political and economic relationship with Europe by 
becoming a potential EU candidate. Chisinau and Tiraspol have enough 
common aspirations and interests that they might also make such a break 
with three decades of separation, and move together toward Europe.

                        WHAT SHOULD THE U.S. DO?

    First of all, keep doing what we already are. Moldova's reforms are 
going to take some time, and will need continued support in the form of 
both money and personnel;
    Second, on an urgent basis help Moldova find alternative sources 
and provide energy--heat and light--to Moldovan consumers at affordable 
prices;
    Third, encourage the government to develop a plan for Transnistrian 
integration and to begin implementation of that plan while 
circumstances are propitious;
    Fourth, support the OSCE Mission as the best instrument for 
facilitating contacts, dialog, and cooperation between Chisinau and 
Tiraspol;
    Fifth, offer continued political, financial, and personnel support 
for demilitarization of the region, including destruction or withdrawal 
of Russian ammunition stored at Colbasna;
    Sixth, encourage Chisinau to pursue a stance of inclusion and 
cooperation toward Gagauzia in parallel with U.S. and EU assistance to 
the region;
    Seventh, actively encourage and participate in multilateral and 
coordinated international support for Moldova's transformation, 
including reintegration of the Transnistrian region and European 
integration.
      
      
      

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