● MONDAY, May 16
Moldova experienced biggest shock of gas price rises, analysis
The Republic of Moldova at the end of last year and the start of this year experienced the biggest shock of price rises. This fact harshly hit the population, business entities and the national public budget. Economist Veaceslav Ioniță said the shock of price increases almost passed and the Moldovans accepted the new reality. But Moldova’s biggest problem - the supply of natural gas - remained unsolved.
The price of gas for Moldova rose seven times during a year and a half, from $167 in 2020 to $1,129 in April 2022. Europe also witnessed increases in the prices of gas, but the Europeans are richer and didn’t feel the increase so sharply. For the Moldovans, this was a serious blow. “The gas crisis hit suddenly the Moldovan citizens. The purchasing power of the Moldovans decreased abruptly. During a year the price of gas grew five times, but the pressure faced now by the Moldovans cannot be compared with that of 2005. Now the Government offered enormous support. The Republic of Moldova will be able to overcome this crisis and will forget this problem. The biggest problem of the Republic of Moldova is not the price of gas. The problem is that no alternative gas supply opportunities were created in 2010-2020. We have been dependent on one source,” stated the expert.
NBM says taken measures are aimed at coping with price rises
The increases in the prices of energy resources and food prices witnessed globally had a major impact on the prices in Moldova and the central bank has to take measures to cope with these so as to avoid much more painful long-term consequences, states the bank in a press release. As the inflation shocks are more powerfully felt in countries with small and open economies, like the Republic of Moldova, and, respectively, the inflation is more persistent, restrictive monetary policy measures need to be taken further. The National Bank of Moldova reiterates that, alongside the other central banks, it decided to pursue a monetary policy aimed at ensuring financial stability.
Scrap metal checks to be carried out along Transnistrian segment
Beginning on Tuesday, joint control groups will work at internal customs checkpoints along the administrative border with the Transnistrian region to verify scrap iron, steel and other metals, the Moldovan Customs Service announced. The joint control groups will operate within the customs posts 2200 Rybnitsa (PVI), 2220 Rezina pod (PVIC) and 2240 Criuleni 14,18 (PVIC), from Monday to Friday, between 08.00 and 18.00. Authorization to pass as a result of the control carried out by the representatives of the joint control groups will be recorded by issuing the "Control Ticket", the form of which was established and approved by an interinstitutional order on 12 May.
● TUESDAY, May 17
Beyond objective factors that fuel inflation, there is also bad management of state affairs, opinions
Representatives of the extraparliamentary opposition said that beyond objective factors that fuel price rises, the Republic of Moldova witnesses also bad management of state affairs. According to representatives of extra-parliamentary parties, the institutions that need to keep inflation under control show inaction and incompetence. For their part, representatives of the government said the increase in prices is a global phenomenon and the Republic of Moldova is also impacted. According to the National Bureau of Statistics, in April 2022 the prices in the Republic of Moldova grew by 27% compared with the same period last year. Also, the National Bank of Moldova announced that inflation the next few months can reach 31%.
Siegfried Mureșan: European funds will get to Chisinau in June-July
Romanian MEP Siegfried Mureșan said that all the procedures for the disbursement of the €100 million announced earlier by the European Union were performed and the promised financial support will reach Chisinau in June-July. Moreover, the EU offered Moldova another €53 million in budget support. The official is sure that the Republic of Moldova will soon obtain the candidate country status and the accession negotiations will start immediately afterward.
Premier Energy to ask for rise in electricity rates
The company Premier Energy is considering making approaches to ask for an increase in electricity rates for May now that it signed an additional agreement to the contract for the purchase of electrical energy with the supplier “Energocom” SA. “Given the rise in the purchase price of electrical energy for this May, according to the contracts signed with ÎS Energocom, given that the price of electricity bought from MGRES rose to 60 USD/MWh for a volume of 70% and to 84.74 USD/MWh for 30% of the amount of electricity purchased from UKRHydroenergo, and given also the debt owed to ÎS Energocom due to the adjustment of the electricity delivery price for exercising its legal rights and for fulfilling its responsibilities as regards the sustainability of the economic flows in the energy sector, ÎCS “Premier Energy” SRL is in the process of analyzing the data concerning the adjustment of the delivery price to see if this exceeds the margin of 5% of tariff deviations,” the company noted in a press release.
● WEDNESDAY, May 18
Sergiu Gaibu: We are fully dependent on foreign energy resources
“Moldova is the only country in the region that is fully dependent on foreign energy resources. We all feel the impact of prices. The prices of gasoline and diesel fuel are directly connected to the international price of these products. We daily see the fluctuations in the prices of these products, in accordance with the developments on the international market. Therefore, we limited the profit margin on a series of socially important products so as to diminish this impact. The business entities are less satisfied with these measures, but it is important to limit the possibilities of speculation and unjustified price rises on a series of socially important products,” Sergiu Gaibu stated in a special edition on the public TV channel. The minister explained that the significant rise in the prices of a number of foods products is due to the fact that imports from Ukraine were partially stopped after the war started, while local producers are for now unable to satisfy demand.
Information System “Transport e-Authorization” launched
After two years of testing, the National Road Transport Agency has launched the Information System “Transport e-Authorization”. The road transport operators can make use of registration in and removal from the Register of Road Transport Operators and can ask for an extract and can also ask to be registered in or struck off the State Register of Enterprises that perform road transport activities on their own. They can also ask for single road haulage permits and road carnets and can submit a report on the use of CEMT permits.
BCS calls on Government to support agricultural producers
The MPs of the Bloc of Communists and Socialists (BCS) call upon the Government to support agricultural producers so as to ensure the country’s food security. These formulated several proposals that provide for the reimbursement of 100% excise duty and VAT paid for diesel used for work in the agricultural sector, but also the refund of VAT on the purchase of plant protection products and fertilizers. Likewise, the socialists propose the compensation of at least three lei for a kilogram of apples given for processing at a price of only 1.45 lei / kg. According to Radu Mudreac, this would allow at least partial coverage of the expenses incurred by the fruit producers, who were left with the production in the refrigerators.
Moldova to borrow €15M from French Development Agency
The Republic of Moldova is to borrow 15 million euros from the French Development Agency, after the Government on Wednesday approved the start of negotiations. According to Minister of Finance Dumitru Budianschi, who has been designated as chief negotiator on behalf of Moldova, the money will be used to finance State Budget needs, including health care services, education, social transfers, etc.
Deodorized cooking oils to be considered social products during state of emergency
During the current state of emergency, deodorized cooking oils will be considered socially important products, meaning their price will be regulated. At the same time, starting with May 19, the VAT on the export and re-export of deodorized sunflower oil, including from the Free Economic Zone and the Giurgiulesti Free International Port, will be made without the right to deduct. The decisions were approved at the meeting of the Exceptional Situations Commission.
● THURSDAY, May 19
Igor Dodon threatens with protests, wants Chicu and Ceban to unite against government
Former President Igor Dodon said the record inflation witnessed in the Republic of Moldova is a proof of the amateurism of the current government. The annulment of the VAT and excise duty on oil products for a definite period of time would lead to a reduction in fuel prices and to a subsequent decline in the prices of products and services. The government’s incompetence could be penalized by the citizens by mass protests organized by the leaders of a number of political parties.
“When time comes, I will rally the people to protests. We know how to do this as we organized hundreds of protests. The protests should be mounted together, not by each party separately. All those who are against the government should combine forces. Who is against? PSRM and PCRM, surely! The Chisinau City Hall is against the government and we see this daily. Ex-Premier Chicu, who criticizes in a reasonable and competent way, is also against. Everyone’s forces should be united,” stated Igor Dodon.
Final vote for bill on electronic identification and trust services
The bill concerning electronic identification and trust services was adopted by the MPs after being given a final reading. The new law will regulate the area of security of electronic identification means and trust services. It contains new notions that cannot be found in the national legislation, such as trust service, electronic seal, registered electronic distribution service, website authentication certificate. It stipulates the method of accrediting trust service providers.
● FRIDAY, May 20
IMF representative: Even if it is an independent institution, NBM can be held accountable for what it does
The International Monetary Fund supports the independence of the National Bank of Moldova (NBM). At the same time, even if it is an independent institution, the NBM can be held accountable for what it does, said IMF Resident Representative in Moldova Rodgers Chawani. He noted that besides the basic program, the IMF offered Moldova US$260 million that is necessary for coping with shocks caused by the war in Ukraine. After the war broke out in Ukraine, the IMF agreed with the Moldovan authorities to increase the financial assistance by US$260 million, the total value of the loan rising to US$800 million. Instead, the IMF expects the Moldovan authorities will do reforms and will support the vulnerable sections of the population.
Experts: Russia will not halt gas as it would create humanitarian crisis in Transnistria
Even if the Republic of Moldova didn’t honor its contractual obligations to audit the debts owed by Moldovagaz until May 1, Gazprom will not risk halting the supply of natural gas, consider energy and economic experts. According to them, Russia can maintain the separatist regime in Tiraspol functional only by supplying this with natural gas delivered through Moldovagaz. At the same time, the experts believe the Republic of Moldova should store natural gas as the Kremlin’s policy is fully unpredictable now.
Units of transport without freight can leave Moldova through Costești and Cahul too
The units of transport without fright as from today and during the state of emergency can cross the Moldovan-Romanian border when leaving the Republic of Moldova also through the Costești and Cahul customs posts, except for vehicles with refrigerators (trailers, semi-trailers, tanks). To reduce the waiting time in customs posts, the Customs Service recommends the business entities to obtain the Authorized Economic Operator status or the Approved Exporter status. Freight carriers with TIR Carnet are advised to use the TIR Electronic PRE-Declaration system.
NBM: Situation on foreign exchange market improved in April
In April, the NBM intervened on the local interbank market through both procurement and foreign currency sales, with net sales of 0.05 million dollars recorded for the whole month. The Moldovan leu depreciated in April by an average of 0.3% against the US dollar, to 18.4274 lei for 1 dollar, compared to 18.3739 lei for a dollar in March.
● SATURDAY, May 21
Viorel Gerciu: We should get ready for increases in agrifood prices
The Ministry of Agriculture and Food Industry has gloomy forecasts. Minister Viorel Gherciu said the increases in agrifood products are likely to continue. According to the official, the energy resources and fertilizers form a large part of the food prices and the prices of these continue to rise. “98% of the fertilizers are imported. Also, the energy resources and even a part of the seeds are imported. This has an impact on the prices of agrifood products. The cost of storing last year products also increased. The storage and transportation costs, including on the country’s territory, and the salaries of employees rose. As a result of subsequent price rises, the prices of food products also grew,” Viorel Gherciu stated in the program “Rezoomat with Ileana Pîrgaru” on RliveTV.
