ECO-BUS WEEKLY DIGEST February 7-13. Most important Economy & Business news by IPN
● MONDAY, February 7
Fuel prices continue to go up
The rises in fuel prices continue. Gasoline “95” on February 8 will be by 0.11 lei more expensive and will cost 23.43 lei a liter, while the price of diesel fuel will be by 0.13 lei more expensive and will be sold for 20.36 lei a liter. These are the price ceilings set by the National Agency for Energy Regulation, IPN reports.
The Agency noted that the level of oil prices continues to be powerfully influenced by the rise in quotations at international stock exchanges.
“During the last ten days alone, the Platts quotations for the main oil products grew by over 50 dollars/tonne and exceeded 890 dollars/tonne for gasoline and 825 dollars/tonne for diesel fuel. During the sessions of the previous week, the Brent quotations exceeded 93 dollars/tonne. This level was last recorded in October 2014,” the Agency noted in a press release.
Carriers take strike action
The carriers’ strike announced by the Employers Associating of Road Transport Operators for national regular routes for February 7-9 begins today. The Employers Association of Transport Professionals “Transportatorul” said they would join in and would suspend the regular routes they serve, IPN reports.
The disagreements between the authorities and carriers arouse last October. The carriers asked for the recalculation of fares, while the government dismissed the request as unfounded.
The sides had a number of consultations, but the carriers ultimately called a strike because “the Ministry of Infrastructure and Regional Development didn’t react to operators’ demands stipulated in the open letter of January 22, 2022. It didn’t review the draft order on the approval of tariffs. It didn’t renounce the illegal mechanism for instituting a new permissive document – the local councilors’ consent to increase fares – and didn’t present real calculations of the tariffs for transport services. It didn’t approve the document by which to set the tariff for bus station services and didn’t abandon support for illegal schemes in the transport sector.”
● TUESDAY, February 8
What should be done for Moldovan fruit to enter “premium” category?
About 70% of the commercial volume of stone fruits exported by Moldova to the EU in 2021 was certified with GLOBAL.G.A.P. In total, almost 30 000 tonnes of plums, apricots, cherries and sour cherries were sent to the EU market last year, IPN reports, with reference to EastFruit.com
As EastFruit previously reported, more than 100 producers in the horticulture sector of Moldova have valid GLOBAL.G.A.P certificates, 40 have GRASP. According to this indicator, Moldova is ahead of many countries of Eastern and South-Eastern Europe.
Carriers continue protest, regular routes suspended
Carriers didn’t give up the protest and the regular routes in the country remain suspended for the second consecutive day. They estimate 90% of the routes will be unavailable today, as on Monday.
Contacted by IPN for a comment, the chairman of the Board of the Employers Association of Road Transport Operators Oleg Alexa said that the Ministry of Infrastructure and Regional Development on the first day of the protest didn’t show any sign that it will take measures to solve carriers’ problems. The discussions with representatives of the State Chancellery were constructive, but this body cannot adopt decisions in the transport sector.
Oleg Alexa noted it is not very clear what the authorities will tell them in the discussions set for this Thursday and the lack of certainty made them continue the protest. Given the existing problems and the continuous rise in fuel prices, the carriers are now in the situation in which they have nothing to lose.
● WEDNESDAY, February 9
Gazprom about audit at Moldovagaz: Results could be rejected
The Russian company Gazprom accuses the Moldovan authorities of unilateral approach to the organization of the audit of Moldovagaz’s debt, saying this runs counter to the agreements signed in October 2021. The Russian gas giant noted that such an approach cannot guarantee an objective and transparent audit, while the Supervisory Board of Moldovagaz could reject its results. For their part, representatives of the Moldovan government earlier said the documents signed last October stipulate the Moldovan side’s obligation to initiate an external audit of the debts owed by SA Moldovagaz to Gazprom, IPN reports.
In a press release, Gazprom says that a meeting of the Supervisory Board of SA Moldovagaz was set for February 2, but this didn’t take place because the Moldovan Government’s representatives didn’t show up. It was expected that the Supervisory Board will agree the approaches to the auditing of the company’s debts to Gazprom for the gas supplied to consumers on the right side of the Nistru River, as it is stipulated in the negotiation protocol on the solving of problems in the gas sector of October 29, 2021.
Ceiling on purchase of scrap iron with cash approved
The buyers of ferrous and nonferrous scrap metals will be obliged to make electronic payments in case of transactions whose total value exceeds 10,000 lei a month in the relations with one taxation subject. The cabinet approved a relevant bill to amend the Tax Code, IPN reports.
The bill was proposed by a group of PAS MPs. The obligation to use electronic payment instruments is aimed at limiting the circulation of cash. The sponsors said the goal is to avoid tax evasion and to reduce activities related to ferrous and nonferrous scrap metals as economic activities without a license.
The bill is to be debated and adopted by Parliament.
● THURSDAY, February 10
Trade unions ask for population support measures following price rises
The National Confederation of Trade Unions of Moldova requests the Government and Parliament to implement more support measures for the population and the national economy now that the prices of natural gas, heat, fuels, food products and goods are higher, IPN reports.
“Even if the measures to subsidize the natural gas and heat rates covered a part of the rise in rates for household users, the lack of subsidization measures for producers following the 29.32% rise in fuel prices during 12 months of 2021 and the rise in the pries of energy resources led to a 17.46% increase in foods prices and a 12.06% increase in nonfood prices,” the Confederation says in a statement.
2.8 MW photovoltaic park built in Criuleni with China’s support
A 2.8 MW photovoltaic park was set up in Criuleni district with the assistance of the Government of China. This occupies an area of 8 ha and has 7,400 photovoltaic panels and 16 invertors. The total value of the project is €4 million, IPN reports.
The power station will enable to generate over 3 million kWh of electrical energy a year and will satisfy the electricity needs of the public institutions of Criuleni district, such as hospitals, schools, kindergartens, administrative buildings, etc.
The energy produced by the photovoltaic panels will be sold and, depending on the negotiated tariff, the district budget will be supplemented with about 3-5 million lei yearly.
High inflation of food products should concern authorities, expert
The last available data on inflation in Europe for last December show the total inflation rate in the Republic of Moldova is 13.9%, while the inflation rate of food products is 17.46%, shows the website Trading Economics. It is a substantial rise compared with the figures for December 2020. “We see a higher inflation of food products and this is paradoxical as the Republic of Moldova is an agrarian country,” economic expert Viorel Gîrbu commented for IPN. Food inflation is higher than in the energy sector. This thing should concern the authorities.
This has happened in the Republic of Moldova not today or yesterday, but for a longer period of time. “During at least four years, the inflation has been pushed up by the rise in food prices. That’s why we should see where the dysfunctionality is. The conclusion is that there is no competition. The market is not sufficiently elastic and does not adjust swiftly. This makes the prices rise considerably in particular periods of time,” explained Viorel Gîrbu.
● FRIDAY, February 11
Maia Sandu about joint meeting of governments of Moldova and Romania: It is a unique chance
“We have a unique chance to implement projects of major importance for our country,” President Maia Sandu posted on her Facebook page ahead of the joint meeting of the Governments of the Republic of Moldova and Romania, which is to take place in Chisinau on February 11. In the meeting, there will be signed an agreement on non-reimbursable financial and technical assistance to the value of €100 million, an agreement on the building of a bridge between Ungheni in Moldova and Ungheni in Romania, an agreement on the renovation and modernization of the Ghiurgiulești-Galați bridge and an agreement on the reduction of roaming charges, IPN reports.
Roaming services between Moldova and Romania to be cheapened
The charges on roaming calls from Romania to the Republic of Moldova will decrease at least ten times. No charge will be put on roaming calls received in Romania from the Republic of Moldova, while the Internet services used in roaming in Romania will decline at least five times. Such an agreement between the Government of Moldova and the Government of Romania was signed today in Chisinau, in the joint meeting of the executives of the two states, IPN reports.
The document was signed by Deputy Prime Minister Nicu Popescu, Minister of Foreign Affairs and European Integration, and Minister of Research, Innovation and Digitization of Romania Marcel Boloș.
● SATURDAY, February 12
Romania-Moldova joint action plan in energy crisis to be designed during next six months
The Republic of Moldova and Romania over the next six months will work out a common plan of action for an eventual energy crisis. The document will stipulate a series of actions and measures needed to ensure continuity in the supply of electrical energy and natural gas. Among the actions is the mutual provision of alternative fuels for producing heat intended for centralized heating systems and combined heat and power.
The designing of the plan is stipulated in the Memorandum of Understanding between the Government of the Republic of Moldova and the Government of Romania on cooperation in energy security that was signed by Deputy Prime Minister Andrei Spînu, Minister of Infrastructure and Regional Development, and Minister of Energy of Romania Virgil Daniel Popescu, IPN reports.