ECO-BUS WEEKLY DIGEST January 17– 23. Most important Economy & Business news by IPN
● MONDAY, January 17
Clarification about days off for persons who get vaccinated
The person who gets a vaccine against COVID-19 can take two days off – the day the vaccine is administered and the next day. Two days off are provided for each of the administered vaccine doses. The Ministry of Labor and Social Protection said that as vaccination in the Republic of Moldova is not mandatory in character, the days off are offered at the request of the salary earner, who files an application at the workplace and then presents the vaccination certificate. The salary paid by the employer to the employee for the given days off is covered with state budget funds that are transferred directly to the employer, who makes a request to this effect by filing out a form available on raportare.gov.md, which was designed and approved by the State Tax Service. If the salary earner got vaccinated during the annual leave, unpaid leave, medical leave or studies, given the goal pursued by offering days off for vaccination, this cannot ask for more days off.
Casa Modei and former ASITO building remain property of Vladimir Russu
Casa Modei and the former head office of ASITO company remain the property of businessman Vladimir Russu. Veaceslav Platon lost the case in which the Chisinau Appeals Court passed a final and irrevocable judgment, IPN reports. “The judges accepted the appeals of buildings’ owners and annulled the illegal decisions that enabled Platon to misappropriate property that didn’t belong to him. The court ruled that the buildings situated at 182 Ștefan cel Mare și Sfânt Blvd and at 57/1 Mitropolit Bănulescu Bodoni St remain ownership of “SCM Development Mol” and “Continental Business Invest” SRL, which are owned by businessman Vladimir Russu”, says a press release issued by Continental Business Invest.
● TUESDAY, January 18
Andrei Spînu: Gazprom, as majority shareholder, can offer us a deferment of payment
Deputy Prime Minister Andrei Spînu said that he is having discussions with the president of Gazprom Alexei Miller for obtaining a deferral of payment for the purchased gas. The Moldovan Government’s request is to put off the payment for January for at most a month given that the gas rate paid by the citizens does not cover the purchase price, while Moldovagaz accumulated debts of over US$30 million. Gazprom, as the main shareholder of Moldovagaz, can make a concession in favor of Moldova. In January Moldova pays a purchase price of US$646 per 1,000 cubic meters of gas. The rate of 11.08 lei, with VAT included, which is paid by the citizens for natural gas, was calculated at the purchase price of US$450. The difference between the purchase price and the rate makes the Moldovan authorities ask for a small payment deferral. Moldovagaz is unable to pay the advance for this month by January 20.
Vadim Ceban: Moldovagaz will ask for support from Gazprom
The Administration Board of SA Moldovagaz will seek help from all the shareholders, including the Russian company Gazprom. It will request to consider the possibility of deferring the payments or of providing short-term loans for covering the financial deviations, Moldovagaz chief Vadim Ceban announced. To overcome the current crisis, Ceban also suggests refunding the VAT to Moldovagaz as this way a rise of at least US$22 million in deviations will be avoided. Vadim Ceban said the Government should examine the possibility of increasing the state subsidies for household users. According to him, the company will continue to optimize costs. “In the long run, the industry should be taken to a free market, where the prices for domestic consumers and for producers differ significantly,” stated Vadim Ceban.
EU twining assistance project to strengthen financial sector
The European Union has launched a major twinning project to strengthen surveillance, corporate governance and risk management in the financial sector of the Republic of Moldova. Within this project, during two years the National Bank of Moldova (NBM) and the National Commission for Financial Markets (NCFM) will benefit from the assistance of EU partner institutions that formed a consortium. The project will help the two institutions to further develop their capacities, following the best EU practices to ensure a high level of stability in the financial sector for the benefit of the citizens and enterprises. In the launch, NBM governor Octavian Armașu said the partner institutions from the EU that created a consortium are the National Bank of Romania (project leader), the Central Bank of the Netherlands and the Central Bank of Lithuania, in cooperation with the Financial Surveillance Authority of Romania and the National Authority for Consumer Protection of Romania.
Parking system is top priority of Chisinau municipality in 2022, deputy mayor
The setting up of parking lots is a priority for 2022, deputy mayor Ilie Ceban said in the context of the public discussions on the daft opportunity study of the implementation of the car parking management system in the municipality of Chisinau. It is proposed dividing the city into three zones. The parking fee for Zone I could be 10 lei an hour, for Zone 2 - 5 lei an hour, while for Zone 3 parking could be free. On Saturday and Sunday, parking can be also free. Parking places will be built inside residential quarters for which dwellers can pay monthly or annual subscription. There will be also erected multistory car parks based on public-private partnerships at the seven entrances to the city so that the visitors could leave their cars in parking lots and use public transport.
Government to propose multi-sourcing in power supply procurement
In an effort to enhance Moldova’s energy security, the Government on Wednesday will introduce draft amendments requiring at least two suppliers for procurement of electricity, announced Prime Minister Natalia Gavrilița. Gavrilița told a press conference that the amounts bought from each supplier will depend on the prices. “There will be a call of bids where the supplier with the lowest price will take over a certain amount and the bidder with the second lowest price will take over a much smaller amount, depending on the price difference”. Earlier, Infrastructure Minister Andrei Spînu said the government will invite bids in February given that the current supply contract with the Kuchurgan Power Plant is due to expire on March 1.
USAID supports Customs Service in facilitating trade and implementing Association Agreement
Over the past five years, with the support of the USAID Moldova Structural Reform Program, the Customs Service has taken major steps to implement the DCFTA/Association Agreement with the EU. It has made a significant contribution to facilitating the country’s international trade. The first Trade Information Portal (www.trade.gov.md) was created, which allows the national and international business community to quickly, detailed and transparent access to the information necessary for the import and export of goods to and from Moldova, the Program said in a press release. USAID Moldova Mission Director Scott Hocklander met with Moldovan Customs Service Director Igor Talmazan. The meeting focused on the efficient collaboration developed within the partnership between the two institutions to facilitate trade in Moldova.
● WEDNESDAY, January 19
Commission for Exceptional Situations convened, state of emergency to be declared
Given the risk to the country’s and citizens’ energy security, the Commission for Exceptional Situations comes together for an emergency meeting today. The taken decisions will be made known after the Cabinet meeting that starts at 3pm. The Premier will propose Parliament to declare a state of emergency in the energy sector and tomorrow will go to Parliament to ask for this. In a press briefing, Prime Minister Natalia Gavrilița said the Russian gas giant Gazprom sent an official letter to Moldovagaz by which it informed about its intention to halt gas supplies to Moldova if the payments are not made fully by January 20. The sum that Moldovagaz must pay until tomorrow is US$63 million, while the company collected only US$38 million.
Record prices of gasoline and diesel fuel
The National Agency for Energy Regulation for January 20 set record prices for the oil products of the standard type. A liter of gasoline “95” will cost at most 22.33 lei (+0.11), while a liter a diesel fuel at most 19.30 lei (+0.16). According to the Agency, the accelerated rise in oil prices is influenced by the general upward trends of the oil quotations at international stock exchanges, which reached record highs the last few days. Today, the Brent oil quotations went up to US$89.05 USD per barrel, rising to the highest level since October 13, 2014. The same highest level of the last seven years have persisted for the Platts gasoline and diesel fuel quotations.
“MOVE IT like Lublin” project presented in Chisinau
The project “MOVE IT like Lublin” – a Chisinau public transport sustainable development initiative co-funded by the European Union – was presented in Chisinau. The project will be implemented until 2025. In the period, good practices applied in the Polish city Lublin will be transposed to Chisinau. For the purpose, the EU will provide £3.3 million in grant funding, while the contribution of the local public administration is €175,000. Poland’s Ambassador to Moldova Bartlomiej Zdaniuk said the project “Move it like Dublin” is an additional proof of the friendship between Poland and the Republic of Moldova. With Poland’s support, a number of development projects have been implemented in rural and urban areas in Moldova.
Government approves procurement of power from at least two sources
The procurement of electrical energy should be ensured from at least two sources. A relevant amendment to the law on electricity was endorsed by the Government in a move to enhance the country’s energy security. A decision by the National Agency for Energy Regulation will stipulate the amounts that are to be procured from two or more bidders, depending on the percentage difference between the prices offered by these. Minister of Infrastructure and Regional Development Andrei Spînu said the only bidder accepted in October and December, which now has a contract with power suppliers, was unable to provide the necessary amount. The Government’s bill is designed to ensure multi-sourcing in power procurement.
Government suggests declaring state of emergency for 60 days
The Cabinet requests Parliament to declare a state of emergency for a period of 60 days. A draft decision to this effect was taken in the January 19 meeting of the Government following the difficulties faced in the natural gas sector. The Government makes reference to the Commission for Exceptional Situations’ report that underlines the necessity of declaring a state of emergency given that the insufficiency of natural gas directly and immediately affects the security of the state and the citizens. Under the draft decision, during the state of emergency the Commission for Exceptional Situations, as the responsible administrative authority, will issue ordinances that will be binding on the managers of the central and local public authorities, business entities, public institutions, citizens and other persons who are on Moldova’s territory.
Chisinau – Strășeni – Călărași water pipeline will be rehabilitated and extended
The Government instituted a preliminary research commission for declaring the works to build the Chisinau – Strășeni – Călărași water pipelines as public utility of national interest. The rehabilitation and extension of the water pipeline will be executed within a project financed by the Federal Government of Germany through the KfW Development Bank that offers a grant of €25 million. A new 52-km main will be built along the Chisinau – Strășeni – Călărași route and this will be connected to the reservoirs existing in the two towns in case the funds are insufficient and KfW does not have objections (official approval) to the villages with internal networks existing along the route of the pipes.
Fruit vendors will have to hold conformity certificates
Vendors selling fresh fruit and vegetables will be required to hold a certificate of conformity issued by the National Food Safety Agency. Previously, the requirement applied only to exporters of fresh fruit and vegetables. The new rules have been approved by the Government in line with the standards adopted by the United Nations Economic Commission for Europe (UNECE). Certificates attesting to the compliance with sanitary standards will be issued following tests performed at an accredited laboratory. The certificate of conformity does not replace the certificate of harmlessness, yet the latter becomes optional
● THURSDAY, January 20
Moldovan-Japanese agreement in customs sector
The Government of the Republic of Moldova and the Government of Japan signed an agreement on mutual administrative assistance and cooperation in the customs sector. The document envisions the exchange of information for implementing the customs legislation and preventing customs fraud, for ensuring economic security. As a result, clearance will take place much faster, Igor Talmazan, director of the Customs Service of the Republic of Moldova, said after the signing of the agreement. Igor Talmazan noted that the document will create conditions for facilitating international trade by simplifying and harmonizing customs procedures. Under the agreement, the customs authorities of Moldova and Japan will provide mutual administrative assistance in correctly implementing the customs legislation, in preventing, investigating and combating customs fraud, in exactly determining customs payments and in ensuring the security of the international commercial supply chain.
Moldovagaz pays January bill to Gazprom
Moldovagaz has fully paid Gazprom for the natural gas supplied in the first half of January. Today’s amount of $34.4 million is the latest and final installment of the $63 million owed for the respective period, Moldovagaz said in press release. “This has been possible thanks to the support of the Moldovan Government, including the allocation of 469 million lei in advance for partial subsidies for the gas consumed by households, the deferral of VAT payments to the state budget, and the transfers made to Energocom”, said the utility. The Government was able to offer this assistance after earlier today Parliament decreed a state of emergency for a period of 60 days in connection with the gas crisis.
● FRIDAY, January 21
Natalia Gavrilița: Gazprom is a big, serious company; payments could have been deferred
The Government of Moldova considers Gazprom’s decision to halt the gas supplies to Moldova if the overdue amounts are not paid by January 21, 9am, is an unfriendly gesture. Prime Minister Natalia Gavrilița said that benevolence can exist even in the commercial relations, but Gazprom didn’t show openness. The official noted Moldovagaz fully paid for the gas consumed in December and the 50% advance for January and this means that there are no reasons for concern, for now. Premier Gavrilița said the declaring of the state of emergency for being able to transfer the money to Moldovagaz for avoiding a halt in gas supplies in winter was a solution as Gazprom sent a warning letter to Chisinau, threatening with a halt in gas supplies. “Gazprom is a large, serious company and the payment of this US$25 million could have been deferred for ten days or a month. We consider commercial solutions could have been found with slight openness. We perceive this as an unfriendly gesture. At least this letter we received said it clearly that if the payments are not made by the date of 20, gas supplies will be stopped on January 21, 9am. This is an unfriendly gesture as we fulfilled all the agreements stipulated in the protocol. We subsidize a significant part of the gas rate for the citizens,” Natalia Gavrilița stated in the program “Shadow Cabinet” on JurnalTV channel.
EBRD President looks to strong investment in Moldova in 2022
European Bank for Reconstruction and Development (EBRD) President Odile Renaud-Basso expects the Bank to undertake a robust investment program in Moldova in 2022, combined with support for key economic policies to help the country advance on its reformist path. The President was on her first official visit to the country from 18 to 20 January 2022, IPN reports, quoting a press release of the EBRD. The Moldovan economy is set to rebound despite uncertainties and the EBRD expects gross domestic product (GDP) to grow 4.0 per cent in 2022. The Bank is committed to a high level of engagement with the country, as in 2021, when its investment in various sectors stood at over €100 million, bringing the Bank’s three-year investment in Moldova to €300 million. The overwhelming majority of the 2021 financing was channeled to projects promoting sustainability, and a third was dedicated to small and medium sized-enterprises and provided through local banks.
NCFM has a new president
Cornelia Kozlovski was appointed as member and president of the National Commission for Financial Markets (NCFM) by Parliament on January 21, IPN reports. Cornelia Kozlovski has experience in banking and leasing and held senior managerial posts, including in the public service. Answering MPs’ questions, Cornelia Kozlovski said the capital market is not developed, while the population is excessively indebted after raising consumer loans. System risks that cannot be supervised have persisted. In the same sitting, the MPs named Adrian Gheorghiță as a member and deputy president of the NCFM Administration Board for a five-year term. At the start of last September, Parliament dismissed all the members of the Administration Board of the National Commission for Financial Markets after the Board’s work was described as unsatisfactory and ineffective. On October 7, 2021, the MPs appointed Vitalie Lemne as a member and deputy president of the NCFM Administration Board for a five-year term.
Restrictions for hospitality industry are the harshest again, MĂR
The National Association of Restaurants and Leisure Facilities (MĂR) is dissatisfied with the fact that the new anti-COVID-19 restrictions cover again the hotels, restaurants and cafes, not yet the places where there are crowds of people, such as markets and public transport. In a post on Facebook, the Association said the authorities continue to take decisions that disfavor particular sectors of the economy. “The restrictions for the hospitality industry are the harshest again: reduced work program, from 7am until 10pm, utilization of 50% of the capacities in the hall + presentation of the COVID restrictions. “All these decisions are taken as if out of inertia. It was already proven that the restrictions for the hospitality industry do not influence the rise or decline in the number of cases of infection, while the restrictions imposed on other areas have a significant influence. But the restrictions in these areas haven’t been appropriately obeyed and state inspections haven’t been properly performed. The COVID was busy as it was at the restaurant, waiting for the authorities,” says the Association’s statement that is quoted by IPN.
Carriers will continue to protest, disagree with Infrastructure Ministry’s proposal
The carriers intend to continue their protests. They do not support the Ministry of Infrastructure and Regional Development’s proposal providing that higher passenger transport fares will be introduced with the consent of councils of local public authorities. “This proposal means only that carriers will continue to protest,” the chairman of the Board of the Employers Association of Road Transport Operators Oleg Alexa stated in a news conference at IPN. The proposal stipulates two types of tariffs: for district transport services and for inter-district transport services. Even if the bill provides that the tariff can rise from the current tariff of 0.60 lei/km to 1 leu/km per passenger after March 1, this is not so in reality, said Oleg Alexa.
Operators disagree with proposal to introduce higher tariffs with local councils’ consent
Bus and minibus operators criticize the Ministry of Infrastructure and Regional Development’s proposal providing that higher passenger transport fares will be introduced with the consent of councils of local public authorities. The proposal was put up for public consultations in January. In a news conference at IPN, the chairman of the Board of the Employers Association of Road Transport Operators Oleg Alexa accused the Ministry of incompetence. In December, the Ministry presented particular calculations, while the January bill contains fully different calculations that do not take into account the taxes paid by carriers. “We pay taxes and they should be considered if we pay them,” he stated.
● SATURDAY, January 22
Leu dropped 0.8% on dollar in December
In December, the Moldovan leu dropped 0.8% on average against the US dollar, to 17.7378 compared to 17.6036 in November, the National Bank of Moldova reported. The degree of coverage of the net demand for foreign currency by economic agents through the net supply of foreign currency from individuals constituted 78.5%, compared to 23.7% in November. Compared to the previous month, the net supply of foreign currency from individuals increased by $ 111.3 million (2.3 times), and the net demand for foreign currency by economic agents decreased by $ 108.4 million ( -30.3%). The NBM intervened on the local interbank market by selling foreign currency in the amount of 35.8 million dollars.
