● MONDAY, April 7
FAO opens Representative Office in Chisinau
The Food and Agriculture Organization of the United Nations (FAO) will have an official Representative Office in Moldova. An agreement to this effect was signed by FAO Director General Jose Graziano da Silva and Minister of Agriculture and Food Industry Vasile Bumacov in Chisinau on April 7. Since 1995, when Moldova joined FAO, there were implemented a number of technology transfer projects to support the farmers in their efforts, especially the young ones. Jose Graziano da Silva said that Moldova has soil of a high quality and thus they will pay increased attention to the implementation of soil conservation technology. Projects to reduce the impact of climate change on agricultural production and to prevent disasters will continue to be carried out.
Contest to choose new director of Moldova’s Railways fails
The administration board of Moldova’s Railways didn’t manage to elect a new director of the state-run company. According to a communiqué from the company, two of the four applying candidates didn’t pass the interview test. One candidate withdrew from the contest, while the fourth didn’t present himself at the interview. The administration board will hold a new meeting to agree the period during which applications for a new contest can be submitted.
● TUESDAY, April 8
Russia bans import of meat products made by Moldovan business
Russia halted the import of meat products manufactured by a Moldovan company, arguing the requirements of the Customs Union aren’t met. According to the official website of Russia’s veterinary and phytosanitary watchdog Rosselkhoznadzor, the competent Russian authorities asked the Moldovan side to analyze the identified problems and to inform them about the conclusions in the nearest future.
Denmark will assist Moldova in developing green economy
They have spoken a lot about sustainable development in Moldova in the last 20 years, but not much was done to achieve this goal. In the conference “Green Sustainable Development in the Republic of Moldova”, organized by the Government in partnership with UNDP and the executive of Denmark, Prime Minister Iurie Leanca said it’s not right that only the rich countries afford sustainable development through the green economy. This objective does not depend on the political color and can be achieved in Moldova too. Attending the event, the Foreign Minister of Denmark Martin Lidegaard said the Danish authorities will assist Moldova in developing the green economy. The development of such an economy is a necessity given that the global economy is expected to become twice larger in the next 20 years and, evidently, a part of this growth will take place in Moldova.
Grants program for agricultural producers
The Moldovan agricultural producers will be able to obtain investment grants for purchasing machinery and equipment for the post-harvest infrastructure in horticulture. The grants will represent 50% of the made investments, but will not exceed 350,000 per group of producers. The grants program is supported by the World Bank. According to a communiqué from the Ministry of Agriculture and Food Industry, in a news conference held to present the program, director general of the Agency for Payments and Intervention in Agriculture Petru Maleru said the program’s objective is to facilitate farmers’ access to markets by supporting the creation of groups of agricultural producers in horticulture, fostering investments in technology and equipment intended for the post-harvest infrastructure and, consequently, increasing the competitiveness of the Moldovan agricultural products. The grants will be used to buy 25 types of machinery and equipment for washing fruit and vegetables, sorting, packing and labeling lines, cold-storage facilities, steam generators, etc.
● WEDNESDAY, April 9
“UniAgroProtect” demands raising subsidization fund to 1bn lei
The National Union of Agricultural Producers Associations “UniAgroProtect” in its annual assembly decided to demand that the subsidization fund for 2015 should be increased to 1 billion lei. The Union suggests partially switching to the allocation of subsidies per hectare starting with 2015 and examining the possibility of introducing subsidization in advance. It also proposes raising the ceilings on the subsidization of purchases of agricultural machinery and equipment to 500,000 lei per unit and to 1 million lei per recipient. “UniAgroProtect” considers that the VAT of 8% on the sale of agricultural products should be maintained unconditionally, while the VAT for agricultural products distributed to farmland owners instead of paying rent should be annulled.
Agreement on creation of Free Trade Area with EU discussed in Moscow
Chisinau and Moscow discussed aspects of the bilateral cooperation in the context of the creation of the Deep and Comprehensive Free Trade Area between Moldova and the European Union. In the consultations, the provisions of the accord were presented in detail so as to ensure transparency in the bilateral relations and elucidate all the unclear points of this document. The participants in the consultations considered the compatibility of the Free Trade Agreement signed in St. Petersburg on October 18, 2011 with the Agreement on the Creation of the Deep and Comprehensive Free Trade Area between Moldova and the EU. The Moldovan delegation said that Moldova will be able to have a facilitated trade regime with both of the markets of strategic importance.
Another two free economic zones to be set up in Transnistria
The Transnistrian administration decided to create two more free economic zones in the Transnistrian region, besides the existing three. The two zones will be set up in the villages Proteagailovka and Gasca of Bender district. According to the Transnistrian information agency “Novostipmr”, the residents of the free economic zones in Transnistria are fully exempted from paying the land and income taxes. The three free economic zones working in Transnistria are situated in Corjova village of Dubasari district, Kremenchug village of Tiraspol municipality, and in the micro-quarter “Severnyi” of Bender town.
Agriculture minister goes to Moscow to discuss trade issues
Minister of Agriculture and Food Industry Vasile Bumacov next week will go to Moscow to have discussions with representatives of the veterinary watchdog Rosselkhoznadzor. He made the announcement in an interview for Radio Free Europe. The visit will be paid in the context of the ban imposed by Russia on the import of meat products manufactured by a Moldovan company and in order to prevent the imposition of bans on the import of Moldovan fruit and vegetables. Vasile Bumacov said that 80% of the apples are exported to Russia. If these exports are blocked, Moldova will face problems. The ban on the import of meat products imposed by Russia does not cause serious damage as Moldova does not export large quantities of such products to Russia, only several tonnes a year. But it is a sign that arouses suspicion.
● THURSDAY, April 10
“AGROinform” announces priorities for this year
The National Federation of Agricultural Producers “AGROinform” in 2014 aims to contribute to the adoption of the Law on the Common Tax in Agriculture and to obtain clear regulations governing the fuel market, chairman of the Administration Board of “AGROinform” Alexei Ivanov said. In the Federation’s General Assembly held on April 10, Alexei Ivanov stated that “AGROinform” will strengthen its position on the cooperation with farmers by establishing partnerships between the Government and agricultural projects financed by international cooperation agencies. The activities to disseminate information about the sales and production systems in the EU and the good agricultural practice will be stepped up. “AGROinform” executive director Aurelia Bondari underlined that the promotion of women, especially from rural areas, in businesses will remain a major goal in the Federation’s work and projects.
● FRIDAY, April 11
Parliament annuls excise duties imposed on Transnistrian economic entities
The MPs on April 11 annulled the excise duties imposed on the Transnistrian economic entities that import goods. After 2001, the Transnistrian companies registered in Moldova, which do not have fiscal relations with its budget system, hadn’t paid import duties and other excises. Last December, Parliament modified the budget-fiscal policy and reintroduced these taxes. Tiraspol reacted, saying they will return to the Transnistrian conflict settlement talks in the 5+2 format only when the excises are annulled. The lawmakers also voted to increase the excises on vehicles with engine with alternative spark-ignition piston and with the cylindrical capacity of over 3,000 cm3 and on vehicles with free-piston engine compressors and with the cylindrical capacity of over 2,500 from €2 to €3 per cm3.
Free Trade Agreement with EU can take effect this year, Valeriu Lazar
The Deep and Comprehensive Free Trade Agreement with the European Union will most probably come into force at the end of this year, not at the start of 2015, as projected earlier, Deputy Prime Minister and Minster of Economy Valeriu Lazar said in the Moldovan-Italian Forum held in Chisinau on April 11. According to the official, when the accord takes effect, Moldova will become more attractive for foreign investors as the legal civil and commercial framework was adjusted and the process of consolidating the institutions for its better implementation is in full swing. Valeriu Lazar stated the industrial companies will be given a vacation of half a year on paying VAT on the imported raw material on condition that the finished products are exported.
Government will negotiate loan of €100m for agrifood sector
The Government of Moldova will negotiate with Poland a loan of €100 million for supporting the agrifood sector. Prime Minister Iurie Leanca will sign an order to this effect. The loan will be repayable in 25 years, with a grace period of 10 years, at an interest rate of 0.2%. In a national conference, Iurie Leanca said the free trade area with the EU will have a positive impact on the economic development of Moldova. He underlined the importance of making progress in the process of meeting the European standards in the agrifood sector given the anticipated signing of the Association Agreement with the European Union, which envisions the creation of a free trade area with the EU.
● SATURDAY, April 12
Feasibility study for bringing Romanian gas to Chisinau will be ready in autumn
The feasibility study for building the Ungheni-Chisinau duct of the Iasi-Ungheni gas pipeline will be ready in autumn, Deputy Minister of Economy Tudor Copaci, who coordinates the energy policies at the Ministry, said in a program on Radio Moldova. “At the end of June – the start of July, the construction of the Iasi-Ungheni gas pipeline will be completed. Having the feasibility study for the second part of this project, the next Government already will sign a lending agreement with the EBRD and EIB, which expressed their readiness to finance the building of this duct. The European Commission promised to offer Moldova €10 million in budget support for implementing the project,” said the deputy minister.
Romania will assist Moldova to equip milk testing lab
Moldova and Romania signed a plan of action in agriculture and rural development for 2014-2015. Under the plan, technical assistance will be provided in outfitting a milk testing laboratory and instituting official milk control. The animal artificial insemination program will be developed, while the personnel will be trained. The document was signed by Minister of Agriculture and Food Industry Vasile Bumacov and Minister of Agriculture and Rural Development of Romania Daniel Constantin. Technical assistance and support will be also offered for implementing Moldova’s cattle races improvement program for 2014-2020, the sheep and goat breeding program for 2014-2020, and the agriculture and rural environment development strategy for 2014-2020.
