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ECO-BUS WEEKLY DIGEST– February 19 – 25. Most important Economy & Business news by IPN


https://www.ipn.md/en/eco-bus-weekly-digest-february-19-25-most-important-economy-7966_1040208.html

● MONDAY, February 19

Moldova’s exports up $380m, while imports up over $800m


Moldova’s exports in 2017 rose by 18.6% or US$ 380.5 million against 2016. Of the total exports, 67.7% were national goods, while the rest were re-exported goods. Exports to the EU member states represented 65.9% of the total exports, while those to the Commonwealth of Independent States – 19.1%. Moldova also exported to Turkey (4.3%), Switzerland (1.8%), China (0.8%) and other states. Last year, the exports of fruit and vegetables had the biggest influence on the rise in exports. These exports increased by 46.1% compared with January – December 2016. The exports of machines and electrical appliances and parts for these grew by 37.1%, of medicinal and pharmaceutical products by 28.1%, of seeds and oleaginous oils by 19.5%, of grains and grain products by 15.2%, of beverages by 15.6%, of clothing and accessories by 14% etc.

TUESDAY, February 20

Moldova should first of all conquer own market, expert


The balance-of-trade deficit of the Republic of Moldova shows that the county needs prudence in developing its production and export capacities and to also provide skilled labor force and to protect investors. For Moldova, it is very important to first of all conquer the domestic market of goods and services, programs director of the Institute for Development and Social Initiative “Viitorul” Viorel Chivriga stated in a TV program. According to the Ministry of Economy and Infrastructure, in January-December 2017 Moldova exported goods to the value of US$ 2.425,1 billion, while imports came to US$ 4.831,4 billion.

Gasoline and diesel fuel prices down almost 1 leu

The National Agency for Energy Regulation announced the fuel price ceilings for the next two weeks. In the period between February 21 and March 6, a liter of gasoline will cost at most 17.76 lei, down 0.95 lei compared with the past two weeks, while of diesel fuel 15.58 lei, by 0.90 lei less. The Agency calls on those who possess information about cases when filling stations post higher prices than the ceilings to report these on the green line +373 800 10 800 or through the email address anre@anre.md.

First calendar of cultural-touristic events launched

For the first time in the Republic of Moldova, there was launched a centralized schedule of cultural-touristic events that will be organized in 2018 under the brand “Life Tree”. The included events promote folklore and traditions, the wines of Moldova, its music, cuisine and sport. The calendar includes 28 events, 60% of which will be staged outside Chisinau so as to orient the flow of travellers to rural areas. According to the authors, the existence of such an agenda will increase the visibility of important festivals and will promote Moldova’s image of tourist destination at the local, regional and international levels. The calendar is part of the campaign to promote tourism abroad #Fiioaspetelenostru, which is publicized through www.moldova.travel, social networking sites, local and foreign press and at dedicated exhibitions.

Business climate became less noxious, study

The business entities consider the business climate in Moldova became less noxious, shows the World Bank survey “Cost of doing business 2017” that was presented on February 20. The survey has been carried out in Moldova for 15 years and refers to 17 areas of state intervention in entrepreneurial activity. The formulated proposals and suggestions are taken into consideration when drafting business development policies, said Iulia Costin, Secretary of State at the Ministry of Economy and Infrastructure.

Recipients of subsidies obliged to use visual identity elements

The agricultural producers that received subsidies in 2017 are obliged to use visual identity elements this year, IPN reports. This is provided in the regulations concerning the method of distributing the funds of the National Subsidization Fund for 2017-2021, said the Ministry of Agriculture and Regional Development. There are three types of visual identity elements. The sticker is put on all machines and units of equipment the subsidy for which is higher than 20,000 lei. Another visual element is the informative plate that is put if the subsidy ranges between 100,000 and 500,000 lei. The informative panel is the third visual element, which is used if the subsidy is higher than 500,000 lei.

Milk scandal is aimed at denigrating company, JLC director

The administration of JLC, which was covered by the inspections carried out by the National Food Safety Agency, said the milk scandal is a campaign aimed at denigrating the company, without specifying the organizer. Moreover, the producer intends to sue the publication that at the start of February posted the study showing that its milk products contained more vegetable fats than it was indicated on packing. According to the source, employees of the company admitted that they use vegetable fats in the manufacture of some of the dairy products, but everything is shown on packing. According to technologist Olga Galat, all their products sold in plastic containers are natural. The sour cream packed in polyethylene is sold under the name “sour cream product”, which means that it contains vegetable fats.

● WEDNESDAY, February 21

Serious deviations identified at sausage company in Anenii Noi


Serious deviations from the sanitary norms were found at a sausage company based in Anenii Noi town. Products to the value of over 23,000 lei were confiscated and will be destroyed. The General Police Inspectorate said inspections were carried out together with employees of the National Food Safety Agency. The violations refer to the portioning of meat and keeping of pork products. Over 1,500 kilograms of products, such as bones, fat, pig legs and semi-manufactured goods, didn’t have markings with the production date and period of validity. The products were stored at the Anenii Noi Food Safety Subdivision and are to be destroyed. The company’s administration also faces a fine of up to 15,000 lei.

State-owned companies will have more time to present statistical reports

The state-owned companies and joint stock companies with partial or complete state capital will be able to present reports on the size and circulation of public property as the annual activity results to the National Bureau of Statistics by March 31. An initiative to this effect was submitted by the Ministry of Finance. Currently, the deadline is January 25. The move is aimed at offering the entities more time for verifying data so as to avoid providing inaccurate information. In Moldova there are over 240 state-owned companies and 70 joint stock companies with partial or complete state capital.

Carriers can travel again through customs post “Costesti”

Trucks without goods (except for tanks and thermos trailers) and the goods and units of transport of Authorized Economic Operators can leave again Moldova through the customs post “Costesti”. The movement through this customs post (exit) of trucks carrying goods intended for export was banned on May 10, 2010. The reason invoked at that time was the deficient infrastructure and insufficiency of technical control equipment. The Customs Service said the resumption of traffic for particular categories of carriers became possible after repairing, with the support of the U.S. Government, mobile scanning equipment and diversifying the antifraud instruments. Last November, the measure was implemented at the customs post “Cahul”. The business entities and carriers of goods are urged to choose these customs posts so as to avoid forming traffic jams at the others.

Some producers prefer to be fined than to comply with standards, opinion

Particular producers find it more suitable or even simpler to pay a fine of 12,000 to 15,000 lei than to comply with standards as much larger investments were made in production, said Sorin Mereacre, president of East Europe Foundation, which commissioned a lab examination of dairy products. “The National Food Safety Agency noted once again that a series of lab analyses and inspections were conducted last year and nonconforming products were identified at particular food producers and the Agency surely applied fines in accordance with the legislation. The analyses were repeated in February and these confirmed that particular products are nonconforming,” Sorin Mereacre stated.

“Roshen” manager confirms it does business with “Sheriff” Ltd

Veaceslav Moskalevski, manager of the confectionery corporation “Roshen”, which belongs to the President of Ukraine Petro Poroshenko, confirmed that they cooperate with “Sheriff” Ltd owned by the Transnistrian oligarch Victor Gusan. “The point is that we do business with them as with residents of Moldova. <…> In fact, we weren’t informed that this is a separatist zone Transnistrian region. It has happened so for 10 or 20 years,” stated Moskalevski. Asked why the goods were sent directly to the eastern districts bypassing Moldova’s control, the company’s manager argued that there are no Moldovan border guards at the border between Moldova and Ukraine along the Transnistrian segment. Moreover, the businessman is convinced that one can reach Moldova from Ukraine only by crossing Transnistria.

NAER director confirms there are preconditions for reducing natural gas tariffs

The director general of the National Agency for Energy Regulation (NAER) Tudor Copaci confirmed that there are preconditions for reducing the natural gas tariffs, but not to the extent to which some of the energy experts projected earlier. In the nearest future, the Agency will hold public debates to adjust the tariffs. In the February 21 meeting of the parliamentary commission on economy, budget and finance, Tudor Copaci said the tariffs will decrease by at most 25%. “The exchange rate is a reference point. The rate then was over 21 lei, but now is over 16 lei per US$ dollar. There is also the slight decrease in the import price of natural gas. The price was then US$ 200, but now Moldovagaz presented the price of US$ 178,” stated Tudor Copaci.

“Apa-Canal Chisinau” invested 24m lei from own funds in rehabilitation of networks

The joint stock company “Apa-Canal Chisinau”  last year invested 24 million lei from the own funds in the  renovation of the water supply and sewerage networks. In a press release, the supplier said the works to build the water pipeline that goes from Sangerea town to the Codru pumping station, with a length of 4.5 km, started in 2014 and were completed in 2017. The works were assessed at 18.5 million lei. In the suburban village Bubuieci, there were repaired the water pipes on the streets Gagarin, Sergey Lazo, Alexei Mateevici, Ion Creanga and 27 August. The pipes are of different diameters and are 1.2 km long overall. The expenditure estimate was 405,000 lei. The 1.7 km long pipe D-500 from Hancesti St of Chisinau municipality was reconstructed at a cost of 1.7 million lei. In parallel, the sewer D-800 situated at 106 Grenoble St, with a length of about 200 meters, and the sewer from 9 Grenoble St were repaired at a cost of 3.2 million lei. The supplier said the water pipe from Moscova Blvd was relocated at a cost of about 500,000 lei.

THURSDAY, February 22

Ministry of Agriculture: The higher is price, the greater is concentration of juice in package


The higher is the price of a liter of juice, the greater is the concentration of juice in the container. The lower prices are an indicator of the fact that a product is less natural, Secretary of State at the Ministry of Agriculture, Regional Development and Environment Iurie Usurelu stated in the program “Issue of the Day” on Canal 2 channel. According to him, the consumers should pay special attention to the label on the package when they want to purchase juice. “The simplest method is for the consumer to see the composition of the juice on the label,” stated Iurie Usurelu. He noted that the natural juice should not contain sugar, honey or other sweeteners.

Water suppliers will sign individual contracts with apartment owners

The operators that provide public water supply and sewerage services will sign individual contracts with each apartment owner apart, at the request of one of the sides. The contracts will be signed within 30 days of the submission of an application. The MPs passed a bill to this effect in the final reading on February 22. The informative note to the bill says the current law violates consumers’ rights. The public water supply and sewerage services are provided based on contracts signed with all the dwellers of an apartment building and the volume of water consumed by some of the dwellers that do not pay the water bills is included in the bills of dwellers that regularly pay for the consumed water.

Employers will submit notifications in case of collective redundancies

Employers will be required to inform and consult staff representatives in the case of collective redundancies, in written form, 30 days beforehand and to indicate the reasons and period of redundancies. A copy of the notification will be transmitted to the Employment Agency. The Cabinet approved a bill to amend the Labor Code in a move to transpose the EU Collective Redundancies Directive. The Collective Redundancies Directive concerns the procedures and warnings that any employer is under a duty to its workforce to follow if it finds it necessary to make more than 20 employees over 90 days (or 10 to 30 employees depending on firm size over 30 days). The law requires employers to initiate consultations with staff representatives and with employees to reduce the consequences of collective redundancies and to consider providing compensation or ensuring the possibility of re-qualification.

Regulations for implementing “First house” program approved

The Cabinet endorsed the regulations concerning the implementation of the state program “First house”, which is the last document needed for putting the program into practice. The approval of the regulations will be followed by technical procedures, such as the signing of contracts of cooperation with the involved banks and drawing up of several standard contracts. The Ministry of Finance aims to implement the measures in the shortest period of time possible. The date from which the citizens can submit applications for loans and the banks that take part in the program will be announced in the nearest future. The program is designed to help families to purchase the first home in more advantageous lending conditions than those existing on the market. The state guarantees 50% of the raised loan. The annual ceiling of state guarantees and the sums needed for covering these will be set annually. The 2018 state budget includes a guarantee fund of 50 million lei.

FRIDAY, February 23

Energy regulator suggests reducing natural gas tariffs by 20.3%


The National Agency for Energy Regulation proposes decreasing the natural gas tariffs for 2018 by 20.3%. The proposal was posted on the website anre.md, in the decisional transparency and public consultations rubric. Earlier in hearings at the competent parliamentary commission, the Agency’s director general Tudor Copaci said there are preconditions for reducing the tariffs given the exchange rate oscillations and the reduction in the import price of gas. Energy experts estimated that the tariffs should be reduced by 30%. Household consumers now pay 6.3 lei per cubic meter of gas, with VAT of 8% being included.

Over 1,700 kg of meat destroyed in Drochia

After the National Food Safety Agency two days ago ordered to destroy 1,500 kg of meat and meat products at a sausage company based in Anenii Noi town following irregularities identified there, today the Agency’s inspectors confiscated over 1,700 kg of meat from another processing company, situated in Nicoreni village of Drochia district. In a press release, the Agency said the meat didn’t have origin and quality certificates. Raw material with the use-by date expired was found at the company in Nicoreni during surprise visits. Based on the regulations concerning nonconforming food products, it was decided to immediately destroy the consignment of meat. The company was fined 7,500 lei.