ECO-BUS WEEKLY DIGEST November 29 –December 5. Most important Economy & Business news by IPN
●MONDAY, November 29
On Moldovan leu’s day, central bank puts jubilee and commemorative coins into circulation
On the occasion of the 28th anniversary of the Moldovan leu, the National Bank of Moldova puts four jubilee and commemorative coins into circulation as legal tender and for numismatic purposes. The series “Classical Writers’ Alley in the Public Garden “Ștefan cel Mare și Sfânt” in Chisinau Municipality” is supplemented with a commemorative coin issued in connection with the 200th anniversary of the birthday of poet, dramatist, diplomat and politician Vasile Alecsandri. Silver commemorative coin dedicated to historian, poet, encyclopedist and politician Nicolae Iorga (150 years of birth) will complement the series of coins “Personalities”. The series “Science and Innovation” is supplemented with a new jubilee silver coin dedicated to famous Romanian linguist, writer, poet and art critic Eugen Coșeriu (100 years of birth). The series “Red Book of the Republic of Moldova” is supplemented with a silver coin that shows the Hepatica nobilis Mill – a plant species protected by law.
Moldovagaz recalculates natural gas consumption for October
The natural gas consumption for October is being recalculated after the Corporate Security Division identified multiple cases of artificial overestimation of natural gas consumption last month, with an internal inquiry being launched to prevent significant financial losses, SA Moldovagaz has said. The company said it was determined that some of the employees of gas distribution enterprisers, using their position, included tens of thousands of cubic meters of gas in the database and, consequently, in bills, in the financial interests of persons, without those quantities of gas being actually consumed.The internal inquiry goes on and those to blame will be punished appropriately, IPN reports, quoting the company.
●TUESDAY, November 30
Moldovagaz Supervisory Board modified
The extraordinary general assembly of shareholders of SA Moldovagaz approved the new composition of the company’s Supervisory Board. Among the new members is the adviser to the President on economic matters Veaceslav Negruță. The members of the previous composition who remained are: Elena Burmistrova, deputy chairwoman of the Gazprom Management Committee, director general of SRL Gazprom Export; Sergey Kuznets, department head at SAP Gazprom; Dmitri Handoga, department head at SAP Gazprom, and Kirill Neiumin, division head at SAP Gazprom. Among the new members are presidential adviser Veaceslav Negruță and secretary of state at the Ministry of Infrastructure and Regional Development Constantin Borosan. Secretary general of the Ministry of Finance Dina Roșca was named members of the Censorship Commission.
Non-preferential certificates of origin to be issued in electronic form as well
The non-preferential certificates of origin will be issued by the Chamber of Commerce and Industry (CCI) in electronic form too. The service will become functional on January 1, 2022 and is available on www.client.chamber.md. Besides the possibility of filing an application and of receiving the certificate at a distance, the platform enables to check online the period of validity of the certificate. This ensures the security of documents in foreign economic transactions. In the even held to launch the service, CCI president Sergiu Harea said that their system, together with the local offices, annually issues over 13,000 certificates. The digitization of the given certificates will ensure greater transparency and reduced costs and time for the applicants for certificates. The CCI will facilitate the issuing of this certificate by lower taxes as well. The non-preferential certificate of origin in electronic form is launched with the support of the USAID Moldova Structural Reform Program. The Program’s director Milo Stevanovich noted the dynamic efforts and activities to automate processes witnessed in Moldova. In accordance with the new procedures, the non- preferential certificates of origin can be easier asked and obtained and, respectively, presented and checked by the relevant authorities. The electronic certificate brings benefits not only inside the CCI, but also throughout the issuing and circulation chain.
Automation of services for business community is at high level, Milo Stevanovich
The processes to automate and modernize the services provided for the business community are at a high level, said the director of the USAID Moldova Structural Reform Program Milo Stevanovich. Answering a question put by IPN’s reporter in a news conference, Milo Stevanovich said Moldova draws closer to the international level and even exceeds it in parts. According to him, the time in the Republic of Moldova is opportune for developing automation services based on the experience of the region and the whole world. “That’s why we can note the unsuccessful moments elsewhere so as not to replicate them. But the successful examples, such as that of Estonia, should be followed and continued,” stated the director of the USAID Moldova Structural Reform Program. Milo Stevanovich said the persons whom he met in the Republic of Moldova have a high level of expertise, knowledge and professionalism. This makes him be sure that swift steps will continue to be taken and Moldova will align itself with the international level and will even exceed the international average in some of the cases. The news conference was held to present the Chamber of Commerce and Industry’s service to issue non-preferential certificates of origin in electronic form. The service, which is launched with support from the USAID Moldova Structural Reform Program, will become functional on January 1, 2022 and is available on www.client.chamber.md. Besides the possibility of filing an application and of receiving the certificate at a distance, the platform enables to check online the period of validity of the certificate. This ensures the security of documents in foreign economic transactions.
Only Vitalie Perciun is interested in functioning of “Central House”, lawyer
Vitalie Perciun, the founder and majority associate of “Central House” and founder-manager of “Central Group”, is the only person who want the two firms to operate. The other “alleged representatives” by far do not have such an interest, said Raisa Morozan, who represents Vitalie Perciun. In a news conference at IPN, the lawyer said that so-called representatives of “Central House”, which is insolvent, and so-called creditors of “Central House” disseminate false information. These are Veaceslav Timotin, assistant to the insolvency administrator of “Central House”, the person designated by this, lawyer Andrei Iosip, and the current director of “Gările Auto Moderne” SRL Iurie Moroz. They furnished calumnious information about Vitalie Perciun, asserting that this causes damage to “Central House”. The company is subject to a raider attack so as to appropriate its property to the value of over 150 million lei. The lawyer related that by its November 17, 2021 judgment, the Supreme Court of Justice upheld the June 8, 2021 judgment of the Chisinau Appeals Court and the March 7, 2020 judgment of the Chisinau City Court by which the September 2019 termination of the sale and purchase contract based on which “Ubicuit Grup” SRL was excluded as an associate of “Central House” SRL and was obliged to restore a 70% holding to Vitalie Perciun was recognized. As a result, Vitalie Perciun acquired 90% of the share capital of “Central House” SRL. “Ubicuit Grup” SRL didn’t invest anything in “Central House” SRL, even if it had a 70% shareholding, while the buildings of “Central House” SRL, which were estimated at over 150 million lei, were erected with the investments of the Azerbaijani associate and of Vitalie Perciun.
“Central House” is controlled and managed by persons who do not represent its interests
“Central House” SRL is controlled and managed by persons who do not represent its interests. “An insolvency administrator named by an excluded founder, who is in litigation with “Central House” SRL, no way represents the interests of “Central House” SRL,” said lawyer Raisa Morozan, who represents the interests of Vitalie Perciune, the founder and majority associate of “Central House”. In a news conference at IPN, the lawyer related that Veaceslav Timotin, assistant to the insolvency administration of “Central House” SRL and the lawyer designated by this, Iosip Andrei, say they represent the interests of the company, but this is not so. Receiving money from “Central House”, Veaceslav Timotin transmits it to “Gările și Stațiile Auto”. It comes to about 600,000 lei a month that is transferred as if as rental for the lots on which the buildings that belong to “Central House” are situated. But the report of the National Center for Judicial Expertise shows “Central House” SRL paid in advance 9.5 million lei rent for those lots. The illegally transferred sums are used by Iurie Moroz who manages “Gările Auto Moderne” “to procure” the debts owed by the enterprise to the state. This ultimately enabled him to designate Albert Puiu as liquidator of the state-owned enterprise “Gările și Stațiile Auto”.
Authorities asked to intervene to stop bankruptcy of “Central House”
Raisa Morozan, the lawyer for Vitalie Perciun, who is the founder of “Central House” SRL, called on the authorities to intervene and stop the actions taken to cause the bankruptcy of the company. “The citizens of the Republic of Moldova want to work at home and to invest at home,” the lawyer stated in a news conference at IPN. According to the lawyer, legal action over causing of insolvency was taken against Vitalie Perciun, but he is actually the only person who wants the company to operate. The business entities that rent commercial areas from “Central House” SRL based on the contract signed with Veaceslav Timotin, assistant to the insolvency administrator of “Central House”, admitted that they are pressed to make false statements against Vitalie Perciune or their leases that expire at the end of this year will not be extended or they will have criminal cases over tax evasion started against them. Raisa Morozan said “Central House” is subject to a raider attack so as to appropriate its property to the value of over 150 million lei and is intentionally led to bankruptcy by a group of persons who pose as representatives and creditors of “Central House” SRL in the insolvency process. She named Veaceslav Timotin, assistant to the insolvency administrator of “Central House”, the person designated by this, lawyer Andrei Iosip, and the current director of “Gările Auto Moderne” SRL Iurie Moroz. They furnished calumnious information about Vitalie Perciun, asserting that this causes damage to “Central House”. “These persons fulfill the instructions of Vladimir Andronachi and Alexandru Vîlcu, as Vitalie Perciune said.”
Green economy to ensure sustainability in Moldova
The circular or green economy is at an incipient stage in Moldova in terms of the accumulated experience. There are few countries that have systemic approaches to all the aspects. However, being aware that waste mutilates the face of the planet Earth, the people work out rules and laws, learn to transform waste into different useful things that help preserve nature. The Republic of Moldova is part of this process and is connected to sources that generate and promote changes beneficial to nature. The subject was discussed in a workshop titled “Young people’s perspective on the implementation of the concept of circular economy in the Republic of Moldova” that was staged by IPRE with support from the Hanns Seidel Foundation. The event brought together speakers from the legislative and executive spheres and from the participatory sector. For the effort to produce result, one should be trained as things will stagnate without competence, said Aurelia Bahnaru, president of the Association for Waste Recovery. She noted that certification is to be obtained for training courses on the environment and recycling economy so that primarily the young people know the ecological ABC. Vladislav Cain, a Moldovan who lives in the Swedish city Malmö, considers the awareness-raising stage was passed and emphasis now should be placed on concrete projects and this would be the best signal that the authorities really focus on waste recycling.
●WEDNESDAY, December 1
Siegfried Mureșan: Agreement with IMF opens up doors for new EU financing
Romanian MEP Siegfried Mureșan said the European Union is preparing a new financial assistance package for the Republic of Moldova. He avoided specifying its value, but noted that the provision of this money is conditional upon the signing of a new program with the International Monterey Fund as this is a guarantee of political stability in Moldova. Siegfried Mureșan noted the EU is analyzing IMF experts’ conclusions concerning the Republic of Moldova and the signing of a new assistance program with the IMF will be followed by the provision of EU funds, possibly as budget support. “The agreement with the IMF is an economic confidence certificate. This shows that the IMF, together with all its economists, trusts that the Republic of Moldova follows the right economic and social path, is attractive to investors and ensures political stability. It is a certificate of appropriate political and economic behavior. This agreement implies investments, economic development potential,” Siegfried Mureșan stated in the talk show “Emphasis on Today” on TVR Moldova channel.
State reserve to be supplemented with 440 tonnes of wheat
The Material Reserves Agency is to procure 440 tonnes of wheat and announced a public tender contest for the purpose of fulfilling its public procurement plan for 2021. In a response to an inquiry made by IPN, the Agency said the announcement concerning participation in the public tender contest for the purchase of the 440 tonnes of wheat was published on Novembers 22. No bid was submitted and the contracting authority reran the procurement procedure on Novembers 24. As the year is coming to an end, the procurement of 440 tonnes of wheat is the only purchase that is to be made this year, the Material Reserves Agency said in its response.
Gas suppliers will be obliged to store gas for two winter months
The natural gas suppliers of last resort will be obliged to store natural gas in an amount equal to the consumption for two winter months. Such an amendment to the law on the natural gas was proposed by the Ministry of Infrastructure and Regional Development. According to Minister Andrei Spînu, they also suggest that the Government should have the right to impose the obligation to store natural gas for the state reserves and propose introducing the necessary legal framework for determining, in a harmonized way, the entry and exit tariffs for the transport service – the mechanism of reciprocal compensation between transport operators. It is also proposed introducing specific provisions concerning the integrity and transparency of the wholesale natural gas market and empowering the National Agency for Energy Regulation to carry out investigations into natural gas market manipulation cases – REMIT Regulations, and demarcating the online trading activities and natural gas supply.
PAS: Ion Ceban seeks increase in public transport fares. Reaction of Chisinau City Hall
The mayor general of the municipality of Chisinau Ion Ceban is paving the way for the urban public transport fares to be increased to 6-7 lei by the end of this year, PAS municipal councilors stated in a news conference. They said the mayor tries to persuade the local councilors to approve the rises. He promises Zonal Urbanistic Plans to some and benefits, such as places in boards of joint stock companies and municipal enterprises, to others. For his part, Vladimir Mitru, adviser to the mayor, said the fares haven’t been adjusted since 2009 and the fuel prices increased meanwhile. The salaries also rose and the purchasing power of the citizens is bigger. The real cost of a trip by public transport is now 14 lei. Roman Cojuhari, the head of the PAS group on the Chisinau Municipal Council, said that no mayor during the 30 years of independence verified the correctness of the figures based on which money is allocated to the Chisinau Bus Company and the Chisinau Electric Transport Company. “Ion Ceban didn’t do this either and, as a result, in 2021 alone the City Hall allocated over 450 million lei, which is almost one fourth of the city’s budget intended for investments, to the two companies,” said the councilor, noting that in 2022, the two companies are to get 700 million lei. Zinaida Popa, deputy head of the PAS group on the CMC, noted that they ask the mayor to carry out an audit at the two companies, but he ignores them or makes reference to the partnership with Liublin city within which such an audit will be conducted in an indefinite future. But the sum of 700 million lei is higher than the costs that would have been incurred for performing the audit.
●THURSDAY, December 2
Finance minister: Private individuals will be able to trade in state securities soon
Private individuals will be able to directly trade in state securities on a specialized platform that will be implemented by the Ministry of Finance. The information was furnished to IPN by Minister of Finance Dumitru Budianschi in response to an inquiry about the program on the direct sale of state securities to private individuals in the Republic of Moldova. “According to the Government’s action plan for 2021-2022, the given platform is to be implemented until the end of 2022,” stated the minister. “The state securities are financial instruments issued by the Ministry of Finance in the form of treasury bonds and state bonds. These are loans for short and long terms in national currency. Investing in state securities, the private individuals lend money to the state for supporting the economic development of the country and investment activities. When maturity is reached, the state pays the invested sum plus interest,” said Dumitru Budianschi. He explained that if the person invests in treasury bonds (for a short term), interest is paid on the maturity day. If this invests in government bonds (for a long term), interest is paid half-yearly in the form of coupons.
PSRM comments on CEC decision concerning Șor Party’s candidate for mayor of Bălți
The Party of Socialists, which is an opposition parliamentary party, considers the actions taken with regard to Șor Party’s candidate for the mayoralty of Bălți are illegal and represent an abuse on the part of the government regime. “The regime of Maia Sandu actively follows the path to state capture by the model of the odious regime of Vladimir Plahotniuc,” the party said in a press release issued after the Central Election Commission asked the court to remove Marina Tauber from the electoral competition several days before the runoff vote for the reason that she used undeclared funds in the campaign. The PSRM says the regime subjugated the prosecution service, the judiciary and intelligence service and turned them into instruments for fighting the political opponents in breach of their constitutional duties, as during the time of the regime of Plahotniuc”. “In fact, many of the abuses of these institutions are committed by the same persons who served oligarch Plahotniuc and now serve the current anti-democratic regime,” runs the press release. The Socialists call on the diplomatic missions working in Chisinau to take attitude to the main deviations from the rule of law norms and principles or an authoritarian regime that will always ignore the democratic values and the law will develop in this part of Europe, according to them.
Termoelectrica has a new director
The joint stock company Termoelectrica as from Decembers 2 will be managed by an acting director general. This is Vasile Leu, Doctor of Technical Science with over 25 years’ experience in the energy sector. “I encourage you to adopt principles of transparency, to promote new values and exemplary corporate management,” director general of the Public Property Agency Eugeniu Cozonac said when presenting Vasile Leu to the staff of Termoelectrica. Vasile Leu said he will lay emphasis on the functionality and solvency of the company, cooperation with the central and local authorities and efficient management of the debts accumulated for natural gas consumption.
Fiberglass products factory to be built in Strășeni
A factory for making fiberglass items and fabrics will be erected in Strășeni. For building and outfitting the factory with modern equipment, the German company BauTex-Stoffe is to invest about US$18 million next year. The investor signed an agreement with the Bălți Free Economic Zone, becoming a resident of this. It is planned that 100 jobs will be created at the factory in 2022, with sales projected to reach almost US$10 million during the first year of the launch of production. At the factory in Strășeni, the company will make glass fabrics Ortex – a German roving cloth used to make fiberglass for different industries, such as naval constructions, automotive industry, building and sport. There will also be made polyphane products, such as abrasive discs, aquapanels and composite armature.
As spare parts grew more expensive, repair shops raised prices of services
Despite the forecasts that weather is growing colder and the first snowfalls are expected the next few days, the car service stations in Chisinau today didn’t have many clients. “This is due to the milder weather conditions this year. The previous years, the snow caught the drivers by surprise and many of them besieged the vehicle services to have the tires changed,” the manager of a repair shop situated on Mircea cel Bătrân Blvd in Ciocana district, stated for IPN. He said the service to change the tiers this year costs 250 lei for a Sedan car (largest category of cars in Moldova, e.n.), by 30 lei more than last year. The prices were raised because the spare parts are also more expensive. The same service station provides car wash services. The full (inside and outside) wash of a Sedan car costs 150 lei. The price was raised by 20 lei a month ago because the cleansing agents used to wash the cars are now more expensive too. The agents are made in Moldova, but the raw material is imported and its price is higher. As the tariffs and prices of other services grew, the managers of service stations look for solutions to raise the salaries of employees so as to keep them. At other repair shops in Ciocana, the drivers could have their tires replaced for 240 lei.
Investments of €14m and 250 jobs as part of new project
A new investment project to the value of €14 million will generate 250 jobs. The steel processing company Omni Steel today announced its investment project. The company will use raw material (scarp iron) purchased from local business entities and will use induction smelting technology that has a reduced impact on the environment. In the launch, Minister of Economy Sergiu Gaibu expressed his confidence that the project will be an example to be followed by other investors. “We are witnessing an event that supports the Ministry of Economy’s strategy for developing the national economy: investments in developing industrial platforms and creation of jobs; attraction of the diaspora home for putting into practice the experience gained abroad, in this case the transfer of technology from Romania; cooperation between the IT sector and other industries, one of the investors being an entrepreneur in the IT sector,” said Sergiu Gaibu, being quoted in a press release of the Ministry of Economy. Omni Steel is based in Pănășești, the Strășeni subzone of the Bălți Free Economic Zone. The production process is set to start next autumn.
● FRIDAY, December 3
NBM has two new vice governors
Two new vice governors were named at the National Bank of Moldova. These are Tatiana Ivanicichina and Arcadie Albul, who will hold office during seven years. Two draft decisions to this effect were adopted by Parliament on December 3. Tatiana Ivanicichina worked in the field of public finance at the Ministry of Finance, covering the path from consultant to secretary of state. She held the last post in 2017-October 2021. Arcadie Albul has international experience. Since 2012, he has worked for the Bank for International Settlements, Basel, Switzerland. Earlier, he served as a specialist at the European Central Bank. In Moldova, he worked for PWC in 2008-2010 and for Magenta Consulting in 2006-2008.
Obstacles are placed to realization of right to defense in Metalferos case, statement
Members of the Moldovan Ferrous and Nonferrous Metals Recycling and Processing Association, who are featured in the case of Metalferos, meet with obstacles in realizing their right to defense as the main principles of court proceedings are being violated. The defense is unable to familiarize itself with the materials of the case in the order and in the conditions stipulated by law. The accusations were made by the Association’s president Ion Drăniceru in a news conference at IPN. According to Ion Drăniceru, on December 1 the prosecutor in charge of the case Vladislav Căruceru issued an order by which he unilaterally set the timetable for presenting the materials of the case to the parties for these to examine them. Each of those involved and the lawyer were given by six days to familiarize themselves with 259 volumes of the file. Instead of enabling the defense to examine the materials, conditions that flagrantly violate the fundamental rights are imposed. “It is evident that the six-day period is insufficient for familiarizing oneself with the materials of the case,” stated Ion Drăniceru. He disapproves of the proposal to present the materials of the case in electronic format that is stipulated in the order. He said the Penal Procedure Code provides that the materials are presented on numbered sheets of paper in a file. At the
Disciplinary proceedings requested against prosecutor dealing with Metalferos case
The Moldovan Ferrous and Nonferrous Metals Recycling and Processing Association calls on the Superior Council of Prosecutors to order disciplinary proceedings against the prosecutor handling Metalferos Vladislav Căruceru, who is called “system bandit”. The Association filed a complaint to the Council, expressing his hope that this will be examined thoroughly so as to establish if the prosecutor acted legally. In a news conference at IPN, the Association’s president Ion Drăniceru said that if the wrongdoings continue, they reserve the right to file complaints to the Parliament’s responsible commissions. By a public call, he asked for an audience with the President. “If the goal is to do justice, let’s really do reforms in the justice sector in this country,” he urged. The members of the Moldovan Ferrous and Nonferrous Metals Recycling and Processing Association are accused of forming part of a criminal group that was created by the ex-Democratic leader Vladimir Plahotniuc in 2009. The Association, which collects metals and sells them to the state-owned company “Metalferos”, is accused of falsifying procurement documents and of not declaring the real value of transactions, causing damage to the state budget this way. The Association’s administration denies any wrongdoing.
Central bank raises core rate by 1.0 percentage points
In view of inflationary expectations, the Executive Board of the National Bank of Moldova (NBM) decided to increase the core rate applied to the main short-term monetary policy operations by 1.0 percentage points to 6.50 percent annually. The decision aims to create the monetary conditions necessary to temper the growth rates of consumer price. At the same time, interest rates on overnight loans and deposits will increase by 1.0 percentage points - up to 8.50 and 4.50 percent annually, respectively. The level of required reserves remains unchanged. The decision comes in support of consumer preferences for savings from immediate consumption that has emerged amid the economic activity seen during the current year.
Furnizare Energie SRL announces impossibility to supply electricity
Furnizare Energie SRL, a power distribution company supplying electricity mostly to corporate clients in Chisinau, has notified the National Energy Regulation Agency ANRE that it will be unable to continue supplies beginning with December 4. The reason put forward is that the Kuchurgan power plant cannot confirm supplies to the company for an indefinite period. As a result, the ANRE required the utilities Premier Energy and Furnizare Energie Electrică Nord SA to take over and make sure that Furnizare Energie’s clients don’t experience outages. The two companies haven’t yet issued their reactions.
EU supports 14 entrepreneurs and 5 NGOs in south of Moldova
Fourteen entrepreneurs in the region of Cahul received grants of 15,000 to 30,000 euros each for private sector development. Grants of up to 20,000 euros each were offered to two non-governmental organizations, and three others received 1620 euros each. The assistance was provided by the European Union as part of the second call for proposals under the EU4Moldova: Focal Regions Program, implemented by UNDP and UNICEF. “Assistance under the EU4Moldova: Focal Regions Program is accompanied by mentoring and training activities, which will ultimately stimulate job creation and grow local businesses,” said EU Ambassador Moldova Jānis Mažeiks during the a ceremony to hand over the grant certificates. The beneficiaries of the second edition of the business grants program cover various fields of activity: agriculture, tourism, pastry making, tailoring, construction materials, etc. Overall, supported businesses will create more than 100 new permanent and seasonal jobs in Cahul region
● SATURDAY, July 31
NBM takes anti-inflationary measures
The base rate on the main short-term monetary policy operations was raised by 1 percentage point to 3.65% a year. The interest rate on overnight loans was increased by 1 percentage point to 6.15% annually, while that on overnight deposits to 1.15% annually. The monetary policy decision was adopted by a unanimous vote by the Executive Board of the National Bank of Moldova (NBM). According to NBM, the updated forecast shows the inflation rate can exceed the upper limit of the variation interval of the inflation target in the pronounced pro-inflationary context of the external environment that is marked by the higher than anticipated recovery rate of the world economy and of the main foreign commercial partners of the Republic of Moldova, alongside the persisting high oil quotations. At the same time, the inflationist pressure is supported by the internal aggregate demand that is fueled by the recovery of the population’s consumption following the rise in salaries in the economy, the volume of released new loans and of money transfers in favor of private individuals.
