ECO-BUS WEEKLY DIGEST November 22-28. Most important Economy & Business news by IPN
● MONDAY, November 22
Call to institute Day of Winemaker and Winegrower in Moldova
The Employers Association of the Tourism Industry of the Republic of Moldova, the National Office of Vine and Wine, the Sommelier Association and the Tourism Development Association suggest instituting the professional Day of Winemaker and Winegrower in the Republic of Moldova, which would be celebrated on the second Sunday in November. In a news conference at IPN, Sergiu Manea, president of the Employers Association of the Tourism Industry of the Republic of Moldova, said the proposal was formulated in connection with the promotion in Moldova of World Wine Tourism Day so as to celebrate the specialists working in the field, given that the national Wine Day hasn’t been celebrated the last few years and given the importance of the wine industry for the national economy and the role and responsibility of the experts from the field.
● TUESDAY, November 23
Gazprom demands payment for current gas consumption
Gazprom will halt the supply of gas to the Republic of Moldova in 48 hours if Chisinau does not pay its current debts, Sergey Kupriyanov, press secretary to Chairman of the Management Committee of Gazprom, stated for “Rossia 24” channel, being quoted by RIA Novosti news agency. “Gazprom signed a contract with Moldova on condition that the current payments for gas are fully made. The next deadline was November 22. Therefore, the company notified Moldova that the supply of gas to it will be halted in 48 hours if the owed payment is not made today,” Sergey Kupriyanov told “Rossia 24”.
Viorel Gherciu: Only those who do not ensure quality of products face problems
Minister of Agriculture and Food Industry Viorel Gherciu said that a Moldovan law obliges the stores to exhibit national products on 50% of the length of shelves. Difficulties in selling fresh and processed products are faced only by those who do not ensure high quality. The national products of a high quality in stores are sold faster than the imported ones. The law on domestic trade that obliges the shop chains to display national products on 50% of the length of the shelf was promulgated last December. The minister said the law advantages only the producers who meet the quality standards and ensure large quantities of products.
Politicians and commentators about Gazprom’s request to pay current debt during 48 hours
Commenting on Gazprom’s message transmitted to Moldovagaz, which says that the supply of gas to Moldova will be halted if the current debt is not paid during 48 hours, former PPPDA MP Vasile Năstase said that someone should be jailed for putting the signature on this embarrassing document. “The Kroll report is much overshadowed by what the incompetent government signed. We demand to fully publish the troublesome contract!” Vasile Năstase posted in his Facebook page. On the same subject, ex-Premier Ion Chicu posted a photocopy of a documents signed by Moldova’s representatives and Gazprom, saying that Deputy Prime Minister Andrei Spînu, by point 8 of this protocol, undertook to make sure that the Commission for Emergencies takes a decision to allocate additional funds for paying gas as it was clear that Moldovagaz will be unable to pay the difference between the old and new gas prices.
Andrei Spînu: Moldovagaz didn’t find commercial solution to repay debt to Gazprom
Moldovagaz didn’t find a commercial solution to clear the current debt to Gazprom. Therefore, the Government became involved to identity solutions and guarantee the supply of gas to the country’s citizens, said Deputy Prime Minister Andrei Spînu, Minister of Infrastructure and Regional Development. According to the official, after the new gas price started to be applied in November, Moldovagaz has to fully pay for the consumed gas to Gazprom. In a post on Facebook, Andrei Spînu said the Ministry of Infrastructure and Regional Development received the approach made by Moldovagaz following the created situation and a meeting of the Supervisory Board of Moldovagaz was held on November 22, at the request of Gazprom. Moldovagaz’ current debt for October and November was the only issue discussed there. After the meeting, Moldovagaz was issued with a payment notice to clear the debt during 48 hours. The debt now totals US$74,278,446.91. The debt accumulated because the purchase price of gas in October was over US$790 per 1,000 cubic meters, while the gas rate applied in October could not cover the difference. The overdue amount was to be paid by November 20. The gas payment formula is part of the main contract between Moldovagaz and Gazprom and is not a new condition.
Government working on Gazprom debt solution, but more time needed, says deputy prime minister
The solution proposed by the Government to repay a current debt owed by Moldovagaz to Gazprom is a debt transfer contract worth 1.4 billion lei, whereby the state company Energocom would take over a part of the debt owed by the utility Termoelectrica to Moldovagaz. The Government has been working on this solution since last week, but more time is needed to get it through all the legal procedures, stated Deputy Prime Minister Andrei Spînu. In a press conference on Tuesday, Spînu recalled that 1.7 billion lei had been allocated to Energocom during the October energy crisis. It used some 300 million lei to buy gas from alternative sources, leaving 1.4 billion lei unspent. But the expenses, which involve State Budget adjustment, require Parliament’s approval. The legislature is due to assemble on Thursday to give its final sanction.
● WEDNESDAY, November 24
Wheat harvest next year can be compromised, Farmers Federation
Owing to the scarce precipitation this autumn, grain harvest next year will decrease essentially. The wheat and other winter crops sprout with difficulty due to the insufficiency of water in soil, Vasile Mârzenco, executive director of the National Farmers Federation, stated for IPN. According to him, the wheat only started to develop, but should have formed a green carpet already. The grain harvest in 2021 was very good, but can be comprised next year owing to the shortage of water. The situation is alarming and can worsen further if it does not rain in spring. The state will have to take measures to ensure the country’s food security.
Prosecutor’s actions in Metalferos case are nonprofessional, statement
Members of the Moldovan Ferrous and Nonferrous Metals Recycling and Collection Association consider the actions of the prosecutor who handles the Metalferos case are nonprofessional, are populist in character and are aimed at influencing public opinion. The Association’s president Ion Drăniceru in a news conference at IPN said this prosecutor does nothing but make unfounded accusations against persons who are evidently innocent, instead of investigating the case honestly and in good faith. He asked to stop all the abusive actions against members of the Association – persons working on the metals market of Moldova, collectors and recyclers.
Ferrous and Nonferrous Metals Association seeks meeting with prosecutor general
Representatives of the Moldovan Ferrous and Nonferrous Metals Recycling and Collection Association ask for a meeting with acting prosecutor general Dumitru Robu. In a news conference at IPN, the Association’s president Ion Drăniceru related that he registered a request for an audience with the acting prosecutor general in the name of the Association on November 22. Today he will ask senior prosecutor Adrian Mircos, of the Prosecutor General’s Office, to drop the case featuring members of the Association, called the Metalferos case, as the prosecutors who investigate this case committed a series of violations.
● THURSDAY, November 25
Moldovan leu celebrates 28th anniversary
The national currency is not only an element of the state. It plays an important role in the economy. The improvement of the quality of the national currency and the growing of the number of cashless payments are among the strategic objectives of the National Bank of Moldova, said the Bank’s governor Octavian Armașu. The celebrations that will be held on the occasion of the 28th anniversary of the Moldovan lei will start with a festive event to launch commemorative and jubilee coins, IPN reports, quoting a press release of the Bank. The event will take place at the National Bank on November 29 and will be broadcast live on the website of the NBM and on Facebook and Youtube.
Carriers protest in front of Government Building
Tens of minibuses and buses were parked in front of the Government Building on November 25 as part of a protest mounted by passenger carriers. They said they can no longer work at a loss following the rise in the prices of fuels, technical overall services and car insurance. Many complained about the decline in the flow of passengers and about illegal passenger transport practices that create unfair competition. The chairman of the Board of the Employers Association of Road Transport Operators Oleg Alexa said that this is a new protest staged after a period of about two years. The carriers hoped things will change, including in the passenger transport. But the situation remained the same or even worsened. “There are illegal practices that steal passengers and those who work legally remain with two-three passengers. Corruption at ANTA (National Agency of Road Transport, e.n.) flourishes and illegal transport practices also do so,” said Oleg Alexa. According to him, car insurance grew more expensive even if operators’ calculations show that fewer accidents involving passengers occurred and less damage was caused.
MPs vote to allocate money for paying debt owed to Gazprom
Parliament gave a final reading to the bill to amend the 2021 state budget and allocate the amounts needed to settle the current debts to the Russian gas giant Gazprom, adopting it by the voters of 57 PAS MPs and three MPs of Șor Party. The Communist and Socialist MPs voted against. So as to prevent a halt in gas supplies, the bill was examined as a matter of urgency, at the request of Prime Minister Natalia Gavrilița. Minister of Finance Dumitru Budianschi said in Parliament that the possible disconnection from the supply of gas is not a media show or an organized act, as they rumor, but is a real risk that can occur if Moldovagaz does not pay the debt for this October and the 50% advance for the natural gas supplied this November. The Government was asked to intervene as Moldovagaz experiences a cash flow deficit and cannot immediately pay the sum asked by the Russian company.
● FRIDAY, November 26
European integration implies European highways, Natalia Gavrilița
The Government plans to connect Moldova to the network of European highways so that the Moldovans could travel from Chisinau to Bucharest by thoroughfares, Prime Minister Natalia Gavrilița stated in a news conference held jointly with European Commissioner for Transport Adina Vălean in the evening of July 25. She noted that the transport and infrastructure projects form part of the great ambitions of the Government and a Ministry was established to manage these areas and to ensure financing for a number of road rehabilitation projects for the next few years.
Parliament gives first reading to law to raise retirement age
As of January 1, 2022, the standard retirement age for men will be 63, while the full insurance period will be 34 years. The standard retirement age of 63 for women will start to be applied on July 1, 2028, while the full insurance period of 34 years will begin to be used on July 1, 2024. Until then, the retirement age and the insurance period will rise gradually. The bill to amend the law on the public pension system was given a first reading and was adopted by the votes of 56 MPs. The new rules restore the system for increasing the retirement age set in 2018.
MPs pass bill to ban gaming adverts in final reading
Parliament banned advertising for all forms of gambling, including lotteries, raffles, sports and non-sports betting. This includes adverts on television, in the print media, in movie theaters, in video and online content, through mobile networks, on billboards, transit advertising, or via mail. The MPs gave the bill a final reading and adopted it by 55 votes in favor on November 25. The bill was drafted by a group of PAS MPs, who argued that gaming creates victims and addiction, including among minors, while this industry is being promoted through aggressive marketing and publicity campaigns. The lawmakers consider addiction to gambling has a devastating effect on the financial situation of the population. The bill sponsors said over 1.3 million lottery tickets are sold daily in Moldova and most of them are bought by low-income people. According to them, in 2017 lottery ticket sales totaled 3.4 million lei, in 2020 they amounted to 613 million lei, skyrocketing to 2.6 billion lei in just eight months of this year. And whereas 425,000 tickets were sold in 2017, in eight months of this year their number amounted to 328 million.
Agriculture minister about risk of winter grain crops being affected
The agricultural sector is exposed to climate change and the rehabilitation of the irrigation sector is therefore a priority. But things cannot be changed overnight, Minister of Agriculture and Food Industry Viorel Gherciu said, when asked about the scarce precipitation and concerns about the state of winter crops. In a news conference, the official said that only 200,000 ha were sowed with winter crops this year, as opposed to over 300,000 ha the previous years. Owing to the low level of soil moisture, the crops are in a bad state and some of the areas will be probably sowed again. Additional costs will be therefore incurred. “Namely for these reasons, the Ministry of Agriculture will continue to have an intense dialogue with the donors and the Ministry of Finance so as to identity the necessary financial resources and to attract investments for rehabilitating the irrigation sector so that we ensure at least partial protection and a particular harvest and can ensure the country’s food security,” stated Viorel Gherciu.
Corn producers incur larger costs due to higher gas price
The delayed harvesting and the rise in the prices of natural gas that is used by most of the grain elevators led to a rise in costs associated with corn drying. Minister of Agriculture and Food Industry Viorel Gherciu told a news conference that the selling price of corn increased and he is hopeful that the producers will achieve a better result and will be satisfied with the crop. The minister said that about 60% of the crop fields are now being harvested. The delay is not only due to the gas crisis. The corn was sowed with a delay. All the grain elevators currently work without interruption. In the case of some types, the corn can be stored without being dried.
Parliamentary commission of inquiry: Situation in extractive industry is alarming
The situation in the field of extraction of valuable minerals is alarming. The normative framework contains many shortcomings that enable the ill-intentioned entrepreneurs to cause damage to the national public budget, with preconditions for fueling corruption throughout the value chain being created, PAS MP Mariana Cușnir, who is a member of the commission of inquiry into the exploitation of valuable minerals, told a news conference. She said that violations were identified at most of the quarries and considerable damage is thus done to the national public budget. As a result of inspections carried out by the specialized division of the Environmental Protection Inspectorate for, the damage caused to the subsoil was estimated at 39 100 000 lei, while to the soil at 75 000 00. Only 99 000 lei damages were covered. The results for 2021 are even more alarming. The division gauged the damage caused to the environment at 733 500 000 lei. Damage totaling 13 500 000 lei was also caused after illegally taking farmland out of the agricultural circuit. The imposed fines came to only 54,000 lei. The highest fine, in accordance with the Contravention Code, is 6,000 lei.
Ministry of Agriculture drafted strategy for promoting national products
The Ministry of Agriculture and Food Industry drafted a national strategy for promoting the national products in schools and kindergartens, Minister Viorel Gherciu Gherciu announced in a news conference. According to the official, by this program they will promote the products in the short food chain. It also covers the procurement procedures for providing the schools and kindergartens with food products. The document will be submitted to the Government for approval and then to Parliament for consideration. Viorel Gherciu said that 2021 wasn’t at all easy, but large harvests for most of the crops could be secured. For the first time, there were harvested over 1.5 million tonnes of wheat, more than 800,000 tonnes of sunflower and the corn crop is also expected to be large, of over 2.5 million tonnes. There were gathered over 600,000 tonnes of apples and more than 315,000 tonnes of grapes.
● SATURDAY, November 30
Adina Vălean: There is potential for financing modernization of railways
The European Union invests in the modernization of railways as trains are among the vehicles that pollute the least, said European Commissioner for Transport Adina Vălean. Being in Chisinau on a visit, the official said the Republic of Moldova, being situated at the intersection of the EU and the Eastern area, should invest in the mechanism for adjusting the rolling stock to different gauges, while the absence of railway electrification in Moldova is a problem that can be solved with the assistance of the foreign partners. Commissioner Adina Vălean noted the Republic of Moldova should put forward concrete projects to modernize the railroads as now the EU invests a lot in this means of transportation.
Bee honey production declines and sector needs state support, ANARM
About 6,800 beekeepers and 29 local associations of beekeepers who look after 250,000 bee families work in Moldova. Some 85-90% of the honey production in Moldova is exported, primarily to the EU states. As many as 5,000 tonnes of honey were exported in 2017, while in 2020 exports declined to 3,385. To survive, the beekeeping sectored needs to be supported by the state by subsidies per bee family or per kilogram of honey sold and included in accounting documents, Ion Maxim, president of the National Beekeepers Association, stated for IPN on the occasion of the fourth National Apicultural Forum that was held in Chisinau. Ion Maxim said the temperatures, heavy rain and drought affect the state of bee families. The attestation of bio honey production is another problem faced by beekeepers. There are two attestation firms in Moldova, but one of these is not recognized in the EU, while it is recognized by the Ministry of Agriculture, while the other firm is recognized in the EU, but is not recognized in Moldova and the Ministry of Agriculture needs to make changes to normative documents.
