Moldova lost about 40% of industry and 12% of population in Transnistrian conflict

[Info-Prim Neo article from the series “20 years of the start of the war. When should we expect peace?”] Economic expert and director of the Market Economy Institute Roman Chirca said that according to different estimates, the industrial complex of Transnistria represented 35– 40% of the industry of the former Moldovan Soviet Socialist Republic (MSSR) before the armed conflict of 1992. The region’s population constituted about 12% of the MSSR’s population, Info-Prim Neo reports. Roman Chirca said that in the former USSR there was pursued the policy of concentrating large industrial companies in this region, which were strategic and vital for Moldova’s energy security, like the power plants in Cuchurgan and Dubasari and the gas distribution networks. During the last 20 years, the region’s industrial complex deteriorated significantly, especially the enterprises of the former military complex, mainly because there were not markets to sell the products. Some of the enterprises managed to develop, like the metallurgical plant based in Rybnitsa, the cognac factory “Kvint” and some of the textile industry companies. Roman Chirca said that most of the Transnistrian companies were privatized, but not very transparently. Among the main investors are enterprises and businessmen from Russia and Ukraine. Their investments in the Transnistrian enterprises are open question as the region and the ownership rights there are not recognized. The expert also said that the loss of control over the Transnistrian region had a major impact on the development of Moldova’s economy after the proclamation of independence. About 40% of the GDP, the energy independence and synergy were lost after the unitary economic complex was destroyed. The consequences disappeared in 20 years, considers Roman Chirca. Adjusting itself to the new realities, Moldova developed its own economic model that is principally inefficient, but stable. If the Transnistrian economy is integrated into the national economy, this would have a beneficial effect on the people living on the two sides of the Nistru River and may significantly strengthen the economic growth. Roman Chirca stressed that most of the companies in the Transnistrian region are registered as economic entities of Moldova, at least formally, so as to be able to perform international commercial activities. The director of the Market Economy Institute considers the costs that Moldova may incur in the process of territorial reintegration are minimum, but a period of time will be needed to legally and functionally adjust the system of pensions, health insurance, fiscal policies, accounting, etc. [Mariana Galben, Info-Prim Neo]