Following the dissolution of the Soviet Union, the U.S. recognized the independence of Moldova on December 25, 1991, and opened an Embassy in its capital, Chisinau, in March 1992. The U.S. supports the sovereignty and territorial integrity of the Republic of Moldova and on that basis supports the 5+2 negotiations to find a comprehensive settlement that will provide a special status for the separatist region of Transnistria within a territorially whole and sovereign Moldova.
U.S. Assistance to Moldova
U.S. government assistance aims to help Moldova strengthen its democratic institutions, increase prosperity, secure its internationally recognized borders, and integrate with Europe and the Euro-Atlantic community. Since 1992, the U.S. has provided over $1.4 billion in assistance to Moldova. Moldova’s $262 million, 5-year Millennium Challenge Corporation compact for economic development and investment projects in irrigation infrastructure, high-value agricultural production, and road rehabilitation ended in 2015.
Bilateral Economic Relations
As a country with a small market, Moldova benefits from liberalized trade and investment and wants to promote the export of its goods and services. A U.S.-Moldovan trade agreement providing reciprocal most-favored-nation tariff treatment took effect in 1992. The same year, an Overseas Private Investment Corporation agreement was signed, encouraging U.S. private investment in Moldova through direct loans and loan guarantees. A bilateral investment treaty was signed in 1993. The U.S. granted Moldova generalized system of preferences status in 1995, and some Eximbank coverage became available the same year.