Authorities in Moldova’s separatist Transnistria region are facing growing financial constraints as the unrecognised administration seeks additional resources to cover pensions and public sector wages.

Several days before extending the state of emergency in the economy on May 13, the authorities in Tiraspol announced the creation of a voluntary public donations mechanism named the Together Social Support Fund, according to NovostiPMR.

The fund has already received TRR100mn (€5mn) from Sheriff holding, the conglomerate that dominates much of Transnistria’s economy, alongside TRR0.4mn from other donors.

Deputy Chairman of the separatist region’s Supreme Council Alexander Korshunov said the mechanism was not unprecedented, noting that a similar fund had operated during the Covid-19 pandemic.

“The fund was created to provide state social payments, such as pensions, benefits and salaries,” Korshunov said. “It’s not mandatory; it’s charitable.”

Officials in Tiraspol blamed Moldova’s constitutional authorities for part of the economic difficulties, accusing Chisinau of imposing additional fiscal pressure on companies operating in the region.

According to Transnistrian estimates, taxes collected by Moldovan authorities from local companies since January 2024 have reached approximately $28mn -- compared to the region's GDP, which is roughly estimated at €1bn.

Chisinau has gradually moved toward integrating Transnistria into Moldova’s broader fiscal framework, including by removing VAT-related exemptions previously granted to companies operating in the separatist region. Moldovan authorities have argued that the revenues collected should support the region’s development.

However, the most significant economic shock for Transnistria came after Russia halted free natural gas deliveries in January 2025. Moscow later replaced the arrangement with a more limited and uncertain supply mechanism, significantly affecting industrial activity in the region.

“Transnistria has been living in a state of emergency for a very long time,” said Vadim Kravchuk, deputy of the separatist Supreme Council.

“This emergency has led to a number of enterprises in our republic suspending operations for reasons beyond our control. Some enterprises are already idle. All of this is having a significant impact on our budget revenues,” Kravchuk added.

The separatist administration says social spending, including pensions, healthcare, education and salaries, remains its primary budget priority as economic conditions continue to deteriorate.