● MONDAY, November 27
RISE Moldova: Goods from Moldova continue to be imported into annexed Crimea despite Ukraine’s sanctions
Moldovan firms continue to export national goods and goods made in Western Europe to the Crimea annexed by Russia. Moreover, it happen despite the sanctions imposed by the Ukrainian authorities. Kyiv imposed bans on the trade with Crimea in 2015. At the same time, goods from Moldova continue to be imported into Crimea. The authors of the investigation ascertained that to avoid the sanctions, businessmen use the services of intermediary companies from Russia. They gave as example Moldovan companies whose products were exported to Crimea, such as “Standardul moldovenesc” (“Moldovan standard”) of Tvardita and “Berhord” SRL of Chisinau. According to information from the customs database of Ukraine, before the annexation of Crimea, “Standardul moldovenesc” imported goods for “Magliv” directly and then through the Agency of Russian firms. “Berhord” SRL acted by the same scheme.“From Moldova write the destination Krasnodar. It is important not to indicate Crimea as a destination. This should not be indicated in the customs declaration. Your addressee is a firm from Krasnodar region,” Russian customs expert Svetlana Poluleah explained to journalists. Director of “Standardul moldovenesc” Vasili Shoshev denied that their products are exported to Crimea. He noted that imports to the peninsula stopped long ago. “Berhord” director Andrei Iosip, in an interview for RISE Moldova, stated that they have commercial relations only with a firm based in the Russian city of Krasnodar that bears the same name. However, the authors of the investigation showed the goods are sent to “Berhord” SRL of Crimea.
● THUESDAY, November 28
Interconnection of infrastructure discussed at Tbilisi Belt and Road Forum 2017
The Republic of Moldova supports the efforts to develop cooperation within the One Belt and One Road Initiative and encourages the promotion of partnerships that enable the states from the region to obtain benefits from economic globalization, Prime Minister Pavel Filip stated in the Tbilisi Belt and Road Forum 2017. The Premier noted that this event is an important platform for discussions on the enhancement of economic cooperation between states and strengthening of regional and international trade development. Pavel Filip said the Moldovan authorities support the development of electronic trade and the national policies in the field were adjusted to the Community acquis. In 2018, Moldova takes over the presidency of GUAM and will thus make effort for the Organization’s Transport Corridor to be developed and applied and to be integrated into the One Belt and One Road Initiative. The Tbilisi Belt and Road Forum 2017 involves about 1,000 representatives from over 50 countries and international organizations.
Gasoline decreases in price, diesel fuel grows more expensive
The National Agency for Energy Regulation announced the new fuel price ceilings for the next two weeks. As of November 29, the price ceiling for gasoline will be 17.67 lei/liter, down 0.12 lei, while for diesel fuel will be 15.78 lei/liter, by 0.07 lei higher. The new price ceilings will be valid until December 12, 2017. The Agency urges to report cases when filling stations post prices higher than the ceilings on the green line +373 800 10 800 or through the email address anre@anre.md.
Moldova will receive €21.5m from EU in budget support
By the end of this year, the Republic of Moldova will receive €21.5 million in budget support from the European Union. The money will be allocated following the measures taken to liberalize visas, trade, public finances and within the police reform, Minister of Finance Octavian Armasu announced in the weekly briefing of the PDM. According to the minister, the measures were implemented in 2016 and were assessed by the EU this year. As a result, €21.5 million in budget support is to be allocated by this yearned. Asked about the €100 million in macro-financial assistance, Octavian Armasu assured that all the measures planned to be taken for the first tranche to be disbursed will be implemented by this yearend. Later, a team of EU evaluators will be invited to Chisinau. The authorities set the objective of obtaining the first tranche in the first quarter of next year.
● WEDNESDAY, November 29
Banking sector is consolidated at accelerated pace, Expert-Grup
The process of consolidating and enhancing the national banking sector is conducted at an accelerated pace. The measures imposed by the National Bank of Moldova concerning the reassessment of released loans generated an important growth in provisions at some banks and the consolidation of the level of capital. Such a conclusion derives from the third banking performance rating produced by the independent think tank “Expert-Grup”. According to the experts, in general the banking sector is well capitalized and offers a consistent reserve of resources that can absorb eventual losses. However, even if the banks are solidly capitalized and have liquidity in excess following the constraints in the lending process, the banks incur opportunity costs that show the reduced development level of the national financial system and of the general intermediation mechanism. BCR Chisinau, EuroCreditBank and Eximbank have the best capitalization in relation to the owned assets. Victoriabank, Comertbank and Eximbank have the largest volume of liquidity, while FinComBank, EuroCreditBank and ProCredit Bank own assets of the highest quality.
Cash transfers from abroad on the rise
The cash transfers from abroad in the first ten months of this year rose by 10.5% compared with the corresponding period last year. Net transfers this October totaled US$116.13 million, up 19% on last October. According to the National Bank of Moldova, the cash transfers from the EU accounted for 36.3% of the total transfers for this October, from the CIS for 35.2%, while 28.6% were remittances from other states. Among countries, the largest volume of cash transfers came from Russia – 39.9% of the total. But this volume is by 4.6% lower than last October. The cash transfers from abroad to private individuals in Moldova in January – October 2017 came to US$ 988.24 million, an increase of 10.5% compared with the corresponding period last year.
● THURSDAY, November 30
Ukraine offers additional authorizations for Moldovan carriers
Ukraine will offer Moldova an additional number of 5,000 authorizations for international freight transportation by this yearend. Under the agreement, Moldovan carriers will be able to transport freight in a bilateral regime and by transiting the territory of Ukraine. The Prime Ministers of Moldova and Ukraine agreed to increase the number of authorizations for international freight transportation for next year by 17,000, from 43,000 to 60,000, and to extend the period of stay by Moldovan drivers on the territory of Ukraine to over 90 days. Agreements to this effect are yet to be signed.
Cabinet rejects bill allowing vehicles older than ten years to be imported into Moldova
The Cabinet didn’t support the legislative initiative that allows to import motor vehicles of the 8702 tariff position older than ten years into Moldova. Under the rejected bill, the highest age of vehicles with over 20 seats that could be imported into Moldova will be extended from 10 to 15 years, as will be the age of engines and coachwork. The highest age of vehicles with at most 20 seats will be extended from seven to 11 years. The executive argued that its intention is to reduce polluting vehicle exhaust emissions and to protect the environment and the people.
Details about Single Support Framework for 2017-2020
The Republic of Moldova will benefit from EU support in the amount of €79 million for 2017. The money will not reach the authorities directly, but will be allocated for different projects, acquisitions, technical assistance, equipment and others and will be managed by the EU through the EBRD, EIB and other organizations. The Single Support Framework for 2017-2020 envisions €284 to €348 million in assistance. The final sum will depend on Moldova’s absorption capacity. The information was presented in a news conference staged by the EU Delegation to Moldova.
National trade facilitating plan for 2018-2020 approved
The executive approved the national trade facilitation plan for 2018-2020. The document contains about 100 measures to develop the sector. The main measures refer to the optimization of the administrative procedures, including by simplifying the clearance procedures, implementing the one-stop shop for trade, developing the Authorized Economic Operator concept and the electronic transit system. Under the plan, the infrastructure needed to conduct or control foreign trade will be improved. There will be applied modern information technology in the state control procedures and in the interaction with the business community (electronic clearance, use of electronic documents). Measures will be taken to ensure access to information and transparency in regulating trade. About €137 million will be needed to implement all the measures. The money will be allocated from the budgets of the responsible institutions and from foreign financial support.
● FRIDAY, December 1
Pavel Filip: EaP Summit gave a new impetus to Moldova’s European aspirations
The Eastern Partnership Summit that took place in Brussels last week gave a new impetus to Moldova’s European aspirations and this was the most important thing. At the same time, the Summit’s Declaration contains only positive theses referring to Moldova, Prime Minister Pavel Filip stated in the program “Moldova live” on public TV channel Moldova 1. The Premier said the EaP Declaration contains a positive vocabulary in many aspects, such as the integration into the European transport corridors and the TEN-T networks, reduction in roaming charges with the EU and energy security. He noted that in the Summit they also discussed the development of SMEs. “A separate element, I think, is the program of the 20 key deliverables for 2020. This is a very interesting program,” said the Premier, adding there are intentions to develop a plan of action for ensuring the delivery of these results.
IPN: Monitor of Official Gazette, 01.12.2017
The Official Gazette (No. 421-427) contains other regulations awaited by our diaspora – Law to ratify the agreement on social security between Moldova and Turkey (No. 220, October 27, 2017). The given agreement, signed on May 5, 2017, is based on the European principles defined in the regulation (EC) No. 883/2004 on the coordination of social security systems. The agreement benefits the Moldovan citizens who live and/or work in Turkey, including employees, freelancers, personnel of the diplomatic service, and also their relatives in Moldova. The amendments made to Law No. 192/1998 on the National Commission for Financial Markets (No. 221, October 27, 2017) underline the necessity of presenting, together with the annual report, a report on the fulfillment of the budget of the entity so that the use of the earned money and its distribution could be monitored in the future. The Parliament Decision on the 2016 report of the Court of Auditors concerning the administration and use of public financial resources and public property (No. 234, November 16, 2017) contains an alarming conclusion: the recommendations of this important inspection body are improperly implemented by the audited entities, mainly the local public authorities. In this regard, the Government is to initiate the necessary changes in the regulations to remedy the situation.
EIB-funded road rehabilitation project could be extended until end of 2018
The period during which the European Investment Bank (EIB) will provide financing for implementing the road rehabilitation project in Moldova will be extended until December 31, 2018. This is provided in an amendment to a contract signed with the EIB on November 23, 2010 that was approved by the Cabinet. Under the contract, the EIB will offer Moldova a total of €75 million to support the implementation of this project. The repair works were to be carried out in 2011- 2013. But they were executed slower by contractors owing to their low money absorption capacity. The implementation period of the project was extended until December 31, 2016, but the works continued to be delayed. Therefore, the Government opened talks with the EIB on an amendment to extent the contract with the EIB for two years, which is until December 31, 2018.
