Moldova: A Dispute Resolution Overview

Introduction

As the Republic of Moldova continues its economic and legal integration into European and global markets, the effectiveness of its dispute resolution framework has become a matter of strategic importance. For domestic economic actors and foreign investors alike, access to reliable mechanisms for resolving commercial and investment disputes is a key indicator of legal certainty and investor confidence.

Moldova has developed a multi-layered dispute resolution system encompassing domestic courts, alternative dispute resolution mechanisms, international commercial arbitration, and investor–state arbitration under international treaties. This framework reflects both internal legal reforms and Moldova’s commitments under international law.

The Moldovan judicial system remains the primary forum for resolving civil and commercial disputes. It is structured on three levels: courts of first instance, courts of appeal, and the Supreme Court of Justice. Civil and commercial litigation is governed by the Civil Code and the Code of Civil Procedure, which apply equally to disputes involving domestic and foreign parties.

Mediation is regulated by a dedicated legislative framework and is available for civil, commercial, labour, and certain family disputes. It is voluntary, confidential, and focused on consensual settlement. While mediation remains more commonly used in smaller-scale disputes, it is increasingly promoted as a cost-effective tool capable of preserving commercial relationships.

International Arbitration in Moldova

Arbitration in Moldova is governed by legislation largely aligned with the UNCITRAL Model Law. Currently, the arbitration proceedings seated in Moldova are governed by two sets of laws:

• the law on arbitration, applicable to domestic arbitrations; and
• the law on international commercial arbitration, governing international arbitrations seated in Moldova.

The Moldovan Parliament is expected to adopt a new arbitration law in 2026, currently in draft form.

Domestic courts generally uphold arbitration agreements and apply the principle of minimal judicial intervention. Court involvement is limited to issues such as the appointment of arbitrators, interim measures, jurisdictional challenges, and the setting aside of arbitral awards on narrowly defined grounds.

International arbitration plays a central role in Moldova’s dispute-resolution architecture, particularly in cross-border commercial relations. Moldova is a contracting party to the principal international instruments governing arbitration, including the 1958 New York Convention on the Recognition and Enforcement of Foreign Arbitral Awards and the European Convention on International Commercial Arbitration. Foreign arbitral awards are recognised and enforced through a judicial exequatur procedure. The grounds for refusal are limited and correspond to international standards, such as:

• lack of due process;
• invalidity of the arbitration agreement; or
• violation of public policy.
• In recent years, national courts have shown increased consistency in applying these standards, reinforcing Moldova’s reputation as an arbitration-friendly jurisdiction.

FDI Screening, Protection of Foreign Investments and International Remedies

FDI screening in Moldova is a mandatory national-security review mechanism for certain investments. It was introduced by Law No 174/2021 and significantly strengthened through amendments effective in 2025, bringing Moldova closer to the EU’s FDI-screening model. The regime applies when an investor gains control, major influence or key assets in sectors crucial to state security. These sectors include energy, transport, telecommunications, water supply, data and IT infrastructure, cybersecurity, defence-related activities, aerospace, geological and hydrometeorological services, strategic mapping, nuclear-related activities and certain critical real estate. Public-private partnerships or concessions in sensitive areas are also included.

Investments meeting the criteria require prior authorisation before completion. The review is conducted by the Council for the Examination of Investments of Importance for State Security, a governmental body with broad investigative and decision-making powers.

When assessing a transaction, authorities consider factors such as:

• investor’s ownership structure;
• source of funding;
• potential links to foreign governments;
• compliance with sanctions and anti-money laundering rules;
• cybersecurity and data protection risks; and
• the investor’s reputation and track record.
• Investments may be blocked if they pose risks to national security or public order.
• Non-compliance carries serious consequences, including transaction nullification, forced divestment and suspension of operations.

The protection of foreign investments in Moldova is guaranteed by the Constitution and by specific investment legislation. Moldova is a party to 43 Bilateral Investment Treaties as well as the Energy Charter Treaty (ECT). Most of the treaties provide for an Investor-state dispute settlement mechanism. Under this mechanism, a foreign investor may usually initiate arbitration proceedings against Moldova under the ICSID Convention or the UNCITRAL Arbitration Rules. A significant number of treaties also opt for SCC arbitration. These disputes frequently concern allegations of treaty violations, including denial of fair and equitable treatment or unlawful expropriation. While ISDS provides investors with a neutral and enforceable forum, it also entails financial and regulatory risks for the host state.

Political Trends

Moldova’s political steps towards energy transition and climate change have substantive implications for attracting foreign investment and the application of international investment treaties.

Moldova’s energy and climate policies through 2030 are guided primarily by the National Energy and Climate Plan (NECP) 2025–2030 and a strengthened national climate governance framework aligned with European Union standards and international climate commitments. Together, these strategies aim to improve energy security, reduce greenhouse gas (GHG) emissions, modernise infrastructure, and enhance resilience to climate change, while supporting Moldova’s broader objective of European integration.

Under the NECP, Moldova has committed to aligning its energy system with the core principles of the EU Energy Union: decarbonisation, energy security, energy efficiency, market integration and innovation. A central target is to increase the share of renewable energy to approximately 30% of final energy consumption by 2030, relying mainly on wind, solar and biomass resources. This transition is intended to reduce dependence on imported fossil fuels while supporting domestic energy production. At the same time, Moldova aims to limit primary energy consumption to around 2,949 kilotonnes of oil equivalent (ktoe) and final energy consumption to approximately 2,762 ktoe, reflecting a strong emphasis on efficiency and demand management.

Reducing greenhouse gas emissions is another key objective of the energy strategy. By 2030, Moldova plans to cut emissions by around 68.5% compared to 1990 levels, with the potential to reach reductions of up to 88% under favourable economic and technological conditions. These reductions are closely linked to:

• the expansion of renewable energy;
• improvements in energy efficiency; and
• the gradual modernisation of energy infrastructure.

Energy security and market integration are critical components of the NECP. Moldova seeks to diversify its energy import routes and significantly reduce reliance on Russian energy supplies by strengthening interconnections with Romania and integrating more fully into the ENTSO-E European electricity network. Market reforms focus on liberalising electricity and gas markets, introducing day-ahead and intraday trading mechanisms and coupling Moldova’s markets with those of neighbouring countries to improve transparency, competition and price stability.

The adoption of the Climate Actions Law in 2024 establishes a legal foundation for low-carbon development and climate resilience, with a long-term goal of climate neutrality by 2050.

Future of Dispute Resolution in Moldova

Looking ahead, we anticipate a notable increase in direct foreign investments, driven by Moldova’s candidate status for EU accession. As foreign investors increasingly engage with local partners, many prefer arbitration to manage their contractual disputes, suggesting that the number of arbitrations in Moldova is likely to rise in parallel with the growing volume of investment projects. Particularly noteworthy are developments in the energy and infrastructure sectors, where Moldova’s ambitions for greater energy independence are catalysing new and dynamic projects. Taken together, these trends point to a period of significant economic and legal activity, reflecting both the opportunities and evolving challenges in Moldova’s investment landscape.