Russia instituted an economic blockade for Moldova – expert

Halting by Russia of Moldovan wines imports is a political decision, aiming to institute an economic blockade to Moldova, considers the economic analyst, Veaceslav Ionitsa. Even previously, Ionitsa declared that the exports will be re-launched as soon as possible, now he is rather skeptic about this. Still, he affirms that, for a long-term, the result of exports’ banning will be a positive one. The analyst considers that the current situation should determine the authorities to start working seriously for the identification of new markets. He hopes that the government will manage to solve the problem at least now, after the second mistake, if it could not ensure alternative markets after the crisis of 1998 in Russia. The current form of wine exports to Russia was characterized by Ionitsa, as primitive, because Moldovan do not have a delivering industry, but the Russians do have it. At the same time, he says that the mistake of the state and of the enterprises’ owners was not investing in promoting wines. The state intends to spend about 200 million lei this year, for stimulating grapes production but it does not foresee anything for promoting exports. Ionitsa considers that Moldova must distribute proportionally its investments: 50% for producing grapes and wines and 50% for promotion campaigns. This happens at a moment when Moldova does not have problems with the production of grapes, but it lacks a national promoting and selling industry, requiring resources of at least 100 million dollars annually. In normal conditions, winning over a new market, usually, requires a 5-year period, noted Veaceslav Ionitsa. But, in major force situation the new markets have to be captured in 2 years. Wine promoting does not have to start on already created markets of developed country, but on those of developing countries or of the new EU members. According to Ionitsa’s opinion, Polish market is an example in this sense: it is a very large market; polishes do not have their own wines, so the Moldovan wines could be for a real interest for them. In the context of wine producers’ losses, Ionitsa mentioned that the annual incomes of the exports to Russia amounting to 200 million dollars are not in fact losses, but only failed incomes, as „the wines are not going anywhere so we can still export them”. He underlined as well that those who really have losses are the Russian dealers, as Moldovan wines were exported to Russia at the price of 50 cents, but were sold there with 4.5 dollars.