logo

ECO-BUS WEEKLY DIGEST December 12 - 18. Most important Economy & Business news by IPN


https://www.ipn.md/index.php/en/eco-bus-weekly-digest-december-12-18-most-important-economy-7966_1094120.html

● MONDAY, December 12

2023 state budget approved in first reading amid criticism from opposition

After more than two hours of debate, the draft 2023 state budget was approved in the first reading by the majority group PAS. The opposition Communists and Socialists refrained, criticizing the government for presenting the draft on too short a notice before it was put to a vote and with little time for improvements. Meanwhile, the Shor group boycotted the meeting altogether.

● TUESDAY, December 13

Import of Moldovan fruit into Russia banned


After the food safety surveillance body Rosselkhoznadzor gave the go-ahead for the import of Moldovan apples, the Association of Horticulturists of Russia requested Prime Minister Mikhail Mishustin to limit the import of apples from Moldova. This way, as Kommersant wrote, the Russian producers try to solve the own problems and do not want competition when there is a bumper crop.

Oleg Serebrian about contract with MGRES: Society reacted rather positively

The necessity of supplying the people with electricity at a more accessible price was the top priority of Chisinau in the negotiations with the self-styled Transnistrian authorities, said Deputy Prime Minister for Reintegration Oleg Serebrian. According to him, only representatives of the opposition and some of the political commentators criticize the contract signed with MGRES (Kuchurgan power plant), while society approved of the agreement.

USAID extends support for strengthening energy security of Moldova

The United States Agency for International Development (USAID) increases its assistance designed to strengthen the energy security of the Republic of Moldova. The financing for the USAID Moldova Energy Security Activity (MESA) was supplemented with US$42 million to help Moldova cope with the challenges this winter and realize its energy potential. Also, technological solutions and equipment will be purchased to increase the country’s energy sustainability in the long run, to attract investment and to increase renewable energy integration.

Moldovagaz chief to have new meeting with Gazprom head

The president of the Administration Board of SA Moldovagaz” Vadim Ceban will pay a working visit to Russia to meet with the head of Gazprom Alexei Miller during the next few days. The announcement was made by Vadim Ceban himself in a program on N4 TV channel.

Price of gasoline COR 95 falls under 23 lei a liter

The price of gasoline COR 95 declined to 22.99 lei a liter after the National Agency for Energy Regulation decreased the price ceiling for gasoline by 0.24 lei for Wednesday. The price ceiling for diesel fuel was set at 23.22 lei a liter, down 0.13 lei on today.

There are concerns about future agricultural season in Moldova, report

There are concerns about the 2022/2023 agricultural season in Moldova. The drought of 2022 is not yet over, while the prices of agricultural inputs and the interest rates on bank loans are expected to remain high. Such conclusions were drawn by the FAO Mission that visited Moldova in October. Based on the collected facts, the specialists recommended providing emergency support for the agricultural sector at least until the next harvest, of 2023. Together with the Ministry of Agriculture and Food Industry, FAO will design a response plan that will include direct proposals for solving the crisis, Raimund Jehle, FAO Representative in Moldova, stated when announcing the assessment results.

● WEDNESDAY, December 14

Vadim Ceban says gas purchased from Energocom costs about US$1,000


There are yet no preconditions for reducing the gas rates, said the president of the Administration Board of Moldovagaz Vadim Ceban. He noted that if Energocom purchases gas at the market price, the rate can rise to 35 lei. For now, Energocom hasn’t set the final price for the gas sold to Moldovagaz, but this is approximately US$1,000 per 1,000 cubic meters.

OTP Bank brings another €15 million from EBRD to Moldova


OTP Bank in Moldova brings another €15 million from the European Bank for Reconstruction and Development to Moldova. The EBRD is providing a new €15 million loan to OTP Bank under the EU4Business-EBRD Credit line, IPN reports, quoting the Bank’s website.

Andrei Spînu: Chisinau will sue Gazprom for non-execution of contract

Through the fault of Gazprom, Moldova has to purchase gas and electricity from the market and the jurists are considering these details so as to sure the Russian gas company. The energy crisis experienced by Moldova is generated by Gazprom and the Kremlin, Deputy Prime Minister Andrei Spînu stated for Deutsche Welle.

CUB reaction to 2023 state budget: “It is not in citizens’ interests”

The late presentation of the draft state budget law eliminated the possibility of proposing better solutions for managing the public funds and this led to the adoption of decisions that are not really in the interests of the citizens, representatives of the party “Coalition for Unity and Welfare” (CUB) stated in a news conference.

Employees of IT parks could work remotely

The employees of IT parks will be able to work from a distance, either on the territory of the Republic of Moldova or form outside the country. The Parliament’s commission on economy, budget and finance approved a report on the bill providing this.

Smaller permissive document prices for road transport operators

The prices of permissive documents for road transport operators will decrease. For example, the price of an annual multilateral CEMT (European Conference of Ministers of Transport) road haulage permit will decline from €580 to €40. The short-term permits will cost €20, down from €50, while the standard price of an international freight transport permit will be €5. This is stipulated in a bill that was examined by the Parliament’s commission on economy, budget and finance.

Association “Force of Farmers” calls on authorities to identify more funds for agriculture

The farmers are dissatisfied with the way in which the agricultural sector will be subsidized in 2023. They consider the state allocated insufficient funds for this sector. Representatives of the Association “Force of Farmers” on Wednesday discussed lending to farmers and subsidization of the agricultural sector with Minister of Agriculture and Food Industry Vladimir Bolea.

Second stage of Advanced Cross-river Capacities for Trade project launched

The first stage of the UNDP project Advanced Cross-river Capacities for Trade (AdTrade), financed by Sweden and the United Kingdom, brought the micro, small and medium-sized enterprises from both sides of the Nistru closer to the Western standards on business management and organization. Currently, the companies from the left side of the Nistru have a closer commercial partnership with the EU. Over half of the export-import relations of the Transnistrian region are with the EU member states. Given the achieved positive results, the next stage of the project was launched today and will last until 2025.

Joint Moldovan-Ukrainian control at Basarabeasca-Serpniovo border crossing


Moldovan and Ukrainian authorities will cooperate to establish joint border and customs control at the Basarabeasca/Serpniovo-1 rail border crossing, located within Moldova’s territorial jurisdiction.

● THURSDAY, December 15

Gasoline and diesel fuel will be imported in a simplified way


Gasoline and diesel fuel will be imported according to a simplified procedure, as a decision approved by the Cabinet provides. In the case of direct import from producers of EU member states, the documents showing the quality of the oil products will be recognized and there will be no need to take samples on the customs territory of the Republic of Moldova.

Infrastructure facilities compatible with purpose could be placed in green spaces

Business entities will be able to set up facilities for economic and social activities in publicly owned green spaces on condition that these are compatible with the given areas. Also, the placing of facilities does not imply the modification of the purpose of those lots, as a bill that was given a first reading by Parliament provides.

Capacities to fight undeclared work to be increased

The State Labor Inspectorate will be empowered to inform the State Tax Service of cases of undeclared work and unofficial payment of salaries identified at employers. The MPs gave a first reading to a bill that is designed to help the institution strengthen its capacities to fight undeclared work.

Moldova-EU agreement on freight road transport liberalization extended

The agreement between the Republic of Moldova and the European Union on the liberalization of carriage of freight by road was extended until June 30, 2024, Deputy Prime Minister Andrei Spînu, Minister of Infrastructure and Regional Development, posted in social media.

● FRIDAY, December 16

EU offers €100 million more for reconstruction of roads in Moldova


The European Investment Bank (EIB), the bank of the European Union, and the Ministry of Finance of Moldova signed an agreement for a €100 million increase to the original €150 million loan for the rehabilitation and upgrading of key national road sections, IPN reports, quoting a press release of the EIB. These sections are mainly on the extended trans-European transport network (TEN-T) and the Solidarity Lanes going through Moldova, contributing to better integration with the European Union.

Maia Sandu about contract with MGRES: I will discuss with Government on first occasion

“I have questions about the contract signed with MGRES,” said President Maia Sandu. According to her, the conditions of the transaction with the self-styled Transnistrian authorities will be discussed with the members of the Government on the first occasion. She noted that the informing of the public on the issue should have been prompt as the announcement of the signing of the contract in several days of the transaction only left room for interpretations and suspicions.

Moldelectrica warns about high risk of power outages


Moldelectrica said the electrical energy system of the Republic of Moldova witnesses again perturbations following air strikes staged by Russia against Ukraine and therefore warns about a high risk of blackouts.

Victor Chironda: There is a risk of legalization of new real estate schemes

The suspended deputy mayor of Chisinau Victor Chironda sounds the alarm. He said that a new real estate scheme is to be legalized by decisions by the Chisinau Municipal Council. In a news conference at IPN, Victor Chironda said the councilors support a number of zonal urban design plans that envision the building of residential complexes in inappropriate places that would further clog traffic in the municipality of Chisinau.

Some 2023 fiscal policy measures are vague and present risks for corruption, Expert-Group

Although some measures included in the draft fiscal and customs policy for 2023 are welcome and necessary, they are often vaguely formulated, while risks for corruption are not considered seriously enough. This is one of the conclusions made by experts at the Expert-Grup think tank, who also came up with a series of recommendations.

Alexandru Stratan: Over 8% of population left Moldova for good in 16 years

Migration reaches greater proportions. In 2004-2020 alone, over 230,000 citizens left the Republic of Moldova for good. This is over 8% of the population. Also, persons close to the retirement age return from abroad and this will exert enormous pressure on the pension fund in the near future, the rector of the Academy of Economic Studies of Moldova (ASEM) Alexandru Stratan stated in a public lecture given at the Academy of Sciences.

● SATURDAY, December 17

Energocom to sell up to 100 million m3 of gas to Moldovagaz


The state company Energocom will sell up to 100 million cubic meters of gas to Moldovagaz in order to alleviate the energy crunch caused by the reduction of supplies by Russia’s Gazprom, the Commission for Emergency Situations decided on Friday evening.

Carriers bringing unaccepted foreigners into Moldova required to cover costs of sending them back

Carriers that bring in foreigners who do not meet the conditions for entering Moldova will be required to ensure their transportation back to the place of boarding or to another location accepted by those foreigners and where those foreigners are accepted. This was decided by the Commission for Emergency Situations on Friday evening.