EU Greenlights Aid For Moldova Amid Tug Of War With Russia

BRUSSELS, , (APP - UrduPoint / Pakistan Point News - 15th Jun, 2017 ) - The EU on Thursday gave the green light to economic aid for Moldova provided it steps up anti-corruption efforts, as Brussels and Moscow vie for influence in the impoverished nation.

The European Union intends to give linguistically-divided Moldova 100 million Euros ($111 million) in loans and grants to stabilise and reform its economy while forging ahead with a key political and trade deal opposed by its pro-Russia president.

"Sixty million euros was agreed in loans and 40 million euros in the form of grants. This will supplement resources provided by the IMF and other multilateral institutions," said a statement from the European Council, which groups the 28 member states.

But the aid depends on Moldova and the European Council, the executive European Commission and the European Parliament signing a memorandum of understanding aimed at fighting corruption in Chisinau, according to the statement.

The three bodies want Moldova to make sure it has a multi-party parliamentary system, follows the rule of law, and protects human rights in return for the aid. More specifically, it must ensure efficient, transparent and accountable public finance management, establish ways to prevent corruption and money laundering, and supervise the financial sector.

The EU wants to forge ahead with a free trade and political agreement similar to pacts it has signed with other former Soviet-era satellites, most notably Ukraine, to offer them an EU option. But Moscow says such overtures amount to dangerous meddling in Russia's backyard.

Moldova's President Igor Dodon said after talks with President Vladimir Putin in January that the EU deal had failed to deliver the benefits promised, and that he wanted the "full re-establishment" of economic cooperation with Moscow.

The EU has defended the 2014 accord, saying it was "the main basis of EU-Moldova bilateral relations and offers a strong legal framework for our political and trade bonds." Moldova is wedged between Ukraine and Romania and has an East-West cultural and linguistic split, similar to Ukraine's.

A brief civil war in the 1990s ended with the Russian-speaking Transdniestr region breaking away and declaring independence, backed by Moscow, which now stations troops there.