Drone Crash Causes Large Explosion
On the night of August 8, a drone crashed in a field near the town of Crocmaz in the Ștefan Vodă district. According to police the drone crashed into a tree around 2.5 m off the ground, exploded and started a brush fire. No one was injured or killed, but nearby houses sustained damage.
Crocmaz is a town located on the Dniester river immediately across from Ukraine. It is located near the border crossings of Palanca and Tudora and is very close to the Et Cetera Winery.
Prime Minister Tofan addressed the incident, saying:
“It’s good that it hit a tree and not a house. At the same time, we have damage almost 800 meters away - at some households, windows shattered from the impact. (…) We feel this war. We all know who the aggressor is in this case.”
“Missile-Drone”
Initial statements from the police, and remarks condemning the incident from President Sandu, indicate that this is the first crash in Moldova of a new generation of Russian drones.
For the past several years, Russia’s main attack drone was the Geran-2, an improved copy of the Iranian Shahed-136. Russia has been testing a new version, the Geran-3, which replaces the Geran-2’s pusher propeller with a jet engine. A second “missile-drone” entered Moldovan airspace on the night of August 10 before departing towards Odesa one minute later. Local media reported this as a Geran-3, but reports on the Geran program indicate that the Geran-3 was a proof of concept model and is already out of production - replaced with the Geran-4, which uses a better Chinese turbojet engine. In either case, the Geran-3/4 has blurred the line between a drone and a cruise missile, offering substantially higher speeds, higher operating altitude and the ability to maneuver to evade threats.
New estimates indicate that jet-powered drones now comprise up to 2/3 of Russian drone attacks while Ukrainian intercept rates are falling.
The Geran-4 is itself giving way to the Geran-5, which is closing the drone-cruise missile loop with a design very similar to the original V1 flying bomb. Russia is effectively iterating its way from cheap loitering drones to cheap mass-produced, fully capable cruise missiles. This incident is Moldova’s first interaction with this new phase of the war.
Other Security & Transnistria News
Here’s a roundup of the other top security stories of the week:
Is a Polish former deputy minister of justice hiding in Transnistria? Polish radio RMF24 reported that former politician Marcin Romanowski, who is wanted on more than a dozen corruption charges, sent a petition to the Warsaw court with a return address in Tiraspol. Romanowski is facing up to 25 years in prison on charges of corruption, abuse of power and being part of an organized criminal group related to an alleged $40 million fraud when he was part of the Law and Justice government. In 2024, he fled Poland to evade arrest and was granted political asylum by Viktor Orban in Hungary. Following the fall of Orban, he vanished. Poland’s government has reached out to Moldova with a request to confirm his presence, and Poland’s ruling coalition called Transnistria “a new destination for politicians who have run into trouble with the law to flee.1” Moldovan police have confirmed that there is no evidence of Romanowski crossing the Moldovan border, and are taking steps to ascertain if he is in Transnistria.
More Transnistrians are coming to Moldova for work. The first half of 2026 saw a 67% increase, to a total of more than 20,000, in the number of Transnistrian residents employed on the right bank. While the actual population of the region is unknown, this is likely to represent a considerable share of the total workforce2.
Transnistria to pay VAT from September 1. A new draft resolution would levy VAT and excise taxes on 12 categories of goods from Transnistria by September 1. These include luxury goods such as alcohol, caviar, tobacco, fireworks, jewelry, etc. Taxes on five more categories, including critical raw-material inputs, are proposed to go into effect on January 1. Taxes on energy may be included from April to harmonize with the proposed changes in the rest of Moldova.
Water & Electricity Crisis Updates
On August 13, falling water levels in the Danube caused Romania to fully shut down its only nuclear power plant at Cernavoda. While Romania is quickly firing up emergency coal plants and asking users to conserve power, the country will still be a major net importer of electricity for the near term.
Right now experts estimate that Moldova will not run short of power, and neither country is actively discussing rolling blackouts or emergency measures. At the same time, the regional electricity market is coming under considerable strain, and Moldovan experts expect price increases.
Energocom announced that the company has finished purchasing natural gas for the winter and has contracts covering 76% of Moldova’s projected consumption from October 1, 2026 through September 30, 2027. This equates to 100% of winter consumption. These contracts were signed after 24 rounds of public tenders starting in July, and are not fixed-price but are based on formulas calculated on public indexes. Suppliers are still making purchases to ensure that Moldova will have 15% of yearly supplies in physical storage by November 1.
On the water front, the level of the Novodnistrovsk reservoir continues to fall rapidly. On August 11, the Dniester Commission decided to reduce outward flow from 85 to 75 cubic meters / second through the end of August. The goal is to stretch out the Dniester’s water reserves as long as possible since no substantial rain is forecast in the Carpathians in the next 2 months. Moldova’s authorities continue to ask people to conserve water as much as possible.
Other Political Updates
Here’s a roundup of the other politics and news updates of the week:
Teachers threaten protests as promised salary increases are delayed. Their union has stated that unless their salaries are increased on September 1 as promised by the former Minister of Finance, they will take action. The government has explained that these increases are directly tied to the tax reform, which has been delayed3. The Ministry of Education has promised clarifications in the coming weeks.
RFE/RL Investigation - more trouble on state company boards. According to an investigation by Europa Libera, substantial numbers of state employees serve on the boards of more than 3 state-owned companies. Legally, the limit is 3 board seats. At the Public Property Agency (APP), a total of 60 officials hold a combined 219 board seats - averaging 3.65. At the Ministry of Economy, 68 employees hold an average of 2 seats each. In 42 of the 81 companies controlled by the APP, officials sat on both the board and the state oversight bodies. Numerous state employees are paid more for their board positions than for their official salaries. The Ministry of Economy responded by launching internal investigations and forcing resignations of anyone on more than 3 boards. Quick analysis in a footnote4.
The Ministry of Economy presented a new investment law that defines strategic investment sectors including R&D, IT industry, semiconductor / chip manufacturing, electronics manufacturing, energy production and more. Investors putting a minimum of €10 million into one of these sectors will benefit from fast-track permitting and a 1 stop shop bureaucracy concierge service operated by the Investment Agency. Investments of over €20 million will benefit from free leases of state land for up to 49 years, and investments over €40 million will be able to enter into direct agreements with the government. Strategic investment sectors explicitly exclude armaments and dual-use technologies, which are subject to more complex regulations.
100 foreign workers relocated to dormitories after TV8 investigation. The investigation had found workers from Bangladesh and Nepal were housed in repurposed train sleeper cars in cramped and unsanitary conditions. The General Inspectorate for Migration has reported that inspections of the company resulted in new housing.
Taraclia will become a municipality (like Chisinau and Balti). The Taraclia district will be dissolved and the town of Taraclia will become a municipality, directly absorbing some towns while converting others into official suburbs. Secretary General of the Government Alexei Buzu explained: “Because in Taraclia we have our citizens of Bulgarian ethnicity, we want to offer them this status, so that they have these powers including on aspects related to cultural programs.” The Taraclia district has approximately 26,000 residents with 10,000 in the town, of whom a majority are ethnic Bulgarians. Asked whether Bulgaria pushed Moldova to do this, Secretary Buzu simply noted that the Bulgarian government was part of the discussion.
There will be a military parade on Independence Day. It will include more than 2,000 soldiers and security personnel from Moldova and partner countries, and will take place in the city center. This will include 150 Moldovan veterans and soldiers from Romania, Ukraine, Italy, France, Poland, Lithuania, the Czech Republic and the United States. In addition to the soldiers, around 100 military vehicles will take part in the parade. Asked my Moldova is putting its military in the center of this celebration, President Sandu replied that it will highlight recent defense investments, and underscore that “peace is paramount, and the security of our citizens is our top priority.”
In fairness, this is an old trick for Moldovan politicians. They should all start a special retirement home there.
Transnistria’s own (false) census data estimate 450,000 residents and we can assume maybe ~55% are working age = 245,000 people. With this number around 8% are employed in Moldova. In reality, the 450k number is nonsense. Transnistrian state media reported that at the end of 2025 only 120,000 residents were working. That tracks with emigration estimates and the 250,000 population estimate we tend to use at Moldova Matters. This would imply that around 16% of the region’s population is coming to Moldova for work - up from 12% a year ago.
Just as a bus that flies off of a cliff, sails into an airplane and causes all involved to plummet into the sea, results in travel delays.
Public outrage is getting ginned up by salaries - people doubling their salaries on these boards. In some cases this anger is really warranted, in many, the salaries are low both in the state agency and on the board. The less discussed part of the scandal is that these are basically no-show jobs. Instead of raising civil service salaries, people are given no-show jobs overseeing state companies to make their renumeration competitive. This leads to abuses (too many board seats for some) and poor management and oversight of state companies. It’s a workaround that causes more problems and needs to be handled head-on.
I found the two notes on Transnistria particularly interesting - is integration happening without a fuss?
How are they going to collect VAT from Transnistria?