Liberalization of metal market worked for a month only, statement

The chairman of the Metal Employers Association Valentin Eșanu said the current director of the state-run scarp metal enterprise “Metalferos” acts as director on paper only as the company is actually controlled by a Democratic MP and by a former director who served during 2009-2014 and who is a relative of President Igor Dodon. The enterprise must be privatized, but only after the metal market is really liberalized. The liberalization of the metal market worked for a month only, he stated.

In a news conference at IPN, Valentin Eșanu said ten phantom companies work on the metal market at present. They are controlled by groups of interest that purchase metal from collection points and then sell it to “Metalferos”. About 25,000-30,000 tonnes of metal go monthly through these companies. They buy the metal for US$ 170 per tonne and then sell it to “Metalferos” for US$200-210. Simple calculations show that these phantom companies monthly gain US$ 1 million on average by such schemes that were taken over by the current government. “Metalferos” signs contracts only with these companies. The other business entities that try to obtain such contracts are obliged to meet conditions that they cannot accept.

Valentin Eșanu also said that his company last November obtained a license to export ferrous and non-ferrous metals. As the identification of foreign partners lasts, a contract was signed with the Rybnitsa metallurgical plant. Last December, the price was US$ 250 per tonne and about 4,000 tonnes were supplied to the plant. This month the plant decreased the price to US$140 and the last price was US$100 per tonne. He has information that senior government officials, including from the Transnistrian region, became involved in this scheme so as to make sure that the metallurgical plant cooperates only with “Metalferos”.

The chairman of the Metal Employers Association said “Metalferos” should be privatized only when the metal market is really liberalized and there are 15-20 exporting companies. The privatization process should not be launched as long as there is no people’s government that would ensure transparency. It is alleged that “Metalferos” will be bought by persons affiliated to the Rybnitsa metallurgical plant.

  • Valentin Esanu despre Metalferos
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