US approves $130 million project to build power line in Moldova

CHISINAU (Reuters) -The U.S. has approved a $130 million project to construct a high voltage transmission line to ensure a reliable electricity supply to Moldova from European markets, the U.S. embassy in Moldova said on Wednesday.

Moldova depends on electricity produced in the separatist region of Transdniestria, which uses Russian gas for its production.

After Ukraine refused to extend the contract for the transit of Russian gas to Europe, Transdniestria sharply reduced its energy production and only resumed it after alternative supplies from Europe began.

The embassy said the project would create significant opportunities for U.S. firms by enabling Moldova to adopt and utilize U.S. technologies.

"It will unlock potential across multiple sectors, including transmission infrastructure, grid optimization technologies, information and communication technologies, nuclear power, and battery storage," it said on Facebook.

(Reporting by Alexander TanasWriting by Pavel PolityukEditing by Frances Kerry)