● MONDAY, May 23
Farmers seek urgent convocation of Supreme Security Council
The Association “Force of Farmers” asks to urgently convoke the Supreme Security Council to discuss the modification of the Food Security Strategy so as not to allow dominant positions in such sectors as the production, keeping, processing and sale of agrifood products. The farmers make reference to the recent significant increases in the price of vegetal oil, noting that it goes either to abuse of dominant position by a processor or to a cartel agreement by large commercial chains. Representatives of the Association expressed their concern about the rises in the price of oil, describing the phenomenon as dangerous given that the rises occur amid the considerable decline in the prices of sunflower seeds the past two months following the massive import of raw material from Ukraine at lower prices. “The last case eloquently showed Moldova’s food vulnerability to a low number of companies that are preliminarily controlled from outside the country, including offshore areas. Amid the world food crisis expected in the near future, the risks for our country grow enormously. The Association noted that the keeping, transportation and export of grain and oleaginous plants and the processing of particular food products are controlled by one business entity with multiple affiliated enterprises registered in areas where the international financial transparency standards are not respected,” runs a statement issued by the Association.
Period for procuring electricity extended into June
The period for the purchase of electrical energy by SA “Energocom” based on direct negotiations was extended into June, as the Commission for Exceptional Situations decided. Another decision taken by the Commission refers to the signing of a contract for the procurement of 24 500 000 cubic meters of natural gas between SA “Energocom” and SA “Moldovagaz”, at the purchase price for March-April. Also, the Commission decreed that the Public Services Agency will organize an emergency procurement procedure to purchase blank IDs, secured holographic laminate and the software services needed for making identification papers. This way, the decision of May 18, 2022 concerning the extension of the period of validity of expired passports for Moldovans will be applied with regard to the Moldovan authorities and also to the authorities of the countries that confirmed the given provisions of the Commission for Exceptional Situations’ decision.
Automated Interbank Payment System modernized
A new version of the Automated Interbank Payment System (AIPS) was launched. The new functions ensure a higher level of automation of the whole chain of payments – from the initiation of these by the payer to the receiving of the money by the beneficiary. According to the National Bank of Moldova, the advantages of modernization will be felt and appreciated by the users of payment services in Moldovan lei – both private individuals and legal entities. In accordance with the concept for developing the payments sector of the Republic of Moldova, the modernization of AIPS is a first stage of the actions that are to be taken by the Bank. This will be followed by the implementation of instant payments nationwide, as part of the second stage. “The moves are aimed at developing the payments sector in the Republic of Moldova. These are designed to facilitate the modernization of payment services and to offer the financial community a system of payments that incorporates the high-performance infrastructure and modern payment instruments that meet the needs of consumers,” noted the central bank.
Moldova looking for ‘most advantageous’ electricity and gas prices
Moldova is looking for offers to buy electricity and gas at the lowest possible prices and welcomes any help to overcome the energy crisis as soon as possible. This was stated by Deputy Prime Minister/Minister of Infrastructure Andrei Spanu during an event on energy diversification and security held in Bucharest. Identifying low-priced offers is for Spanu a short-term goal. In the long run, it is planned to reduce bills through energy efficiency measures. To achieve this, work is underway on a 75 million euro energy efficiency program for public buildings. At the same time, support is provided for energy efficiency and investments in various renewable energy sources at local level through the “European Village” Program. Representatives of the energy sector are looking for financial resources for energy efficiency and the use of renewable energy for residential buildings, the official said. Earlier today, the Commission for Emergencies decided to extend the deadline for electricity procurement by the state company Energocom for the period of June based on direct negotiations. Also, a contract for the purchase of natural gas for 24,500,000 cubic meters will be signed between Energocom and Moldovagaz at the same price as in March and April.
Moldova to buy gas for $920 in May
In May, the wholesale price of gas will be 920 dollars per thousand cubic meters, announced Moldovagaz chairman Vadim Ceban. This is a reduction from April, when the price was 1194 dollars, but an increase from January, when it was 620 dollars. Ceban wrote on his Telegram account that for household consumers, the rate has remained unchanged. “It is too early to talk about conditions for lowering the rate under the current circumstances”, added Vadim Ceban. The rate paid by household consumers is 14.06 lei per cubic meter, plus 8% VAT. Until March, the government offered partial compensation for gas consumption of up to 150 cubic meters.
● TUESDAY, May 24
Victor Parlicov: Record inflation is also due to delay in increasing prices
The prices in the Republic of Moldova should have grown less, but gradually. The authorities delayed the increase in prices and adjustment of tariffs for political reasons and inflation exploded as a result, hitting a record high in Europe, said energy expert Victor Parlicov. For their part, representatives of the government said the authorities are trying to help the citizens cope with the high prices by increasing pensions and salaries. According to official data, the Republic of Moldova witnesses the highest inflation rate in Europe, of 27%. The central bank forecast that inflation can reach 31%. Expert Victor Parlicov noted that a part of the blame for this situation is borne by the authorities that artificially maintained the prices and tariffs at a low level for a long period of time. “A large part of inflation in the Republic of Moldova is a consequence of the increase in prices globally and of the delay in increasing prices in the Republic of Moldova. This is a delayed effect. The inflation rate of 27% is for the past 12 months. If the prices had been raised gradually, the jump in prices would have been smaller. The highest inflation in Europe is the effect of a delayed increase in prices. The prices and tariffs should have been adjusted earlier, but they put off this too much. The gas prices generated a wave of inflation and the Government now can no longer provide subsidies. They subsidized in winter as long as they could, but now the prices had to be adjusted,” Victor Parlicov stated in the program “In Depth” on ProTV Chisinau channel.
Janis Mazeiks: There are no immediate dangers to Moldova’s security
The Head of the EU Delegation in Chisinau Janis Mazeiks said that there are no dangers to Moldova’s security for now. According to the diplomat, the opinion belongs to representatives of the European Union and also to other international partners. The whole international community is making effort for the war in Ukraine not to spread to the Republic of Moldova. Ambassador Janis Mazeiks expressed his regret at the fact that the international community didn’t manage to avoid a catastrophe in Ukraine by diplomatic ways. The EU’s priority is to avoid the expansion of the war outside Ukraine’s borders. “There are particular limits as to what we can obtain by diplomatic ways. The European Union did its utmost to prevent a war in Ukraine and we continue working to make sure that this war does not spread to the Republic of Moldova. As everyone, we were impressed by the way in which the Moldovans hosted refugees. It is remarkable that most of the refugees were housed by host families. If r speak about solidarity, the Moldovans acted in a European way indeed. It is very important for the whole society to promote peace and stability,” Janis Mazeiks stated in the program “Expertise Hour” on JurnalTV channel.
French assistance of €800,000 for “Moldelectrica” and CFM
The Government of France will offer technical assistance to the value of €800,000 to the state-run enterprises “Moldelectrica” and “Moldova’s Railways“ (CFM). Deputy Prime Minister Andrei Spînu, Minister of Infrastructure and Regional Development, and Chief Executive Officer of the French Development Agency Rémy Rioux signed a memorandum to this effect. In a news conference, Andrei Spînu said the signed memorandum comes to support the important reforms in the field of railways and the modernization of Moldova’s energy system. By this gesture, the French government proves its support and friendship for Moldova. A sum of €400,000 will be used to ensure energy security and to carry out two studies on the post-synchronization of the transport network of “Moldelectrica” with the European Network of Transmission System Operators for Electricity ENTSO-E. The rest of the sum will go to implement the reform and reorganization plans of CFM.
Moldovagaz sells 24,5m cubic meters of natural gas to Energocom
Moldovagaz sold 24.5 million cubic meters of natural gas to Energocom in accordance with the market rules approved by the National Agency for Energy Regulation in 2019. The president of the Administration Board of Moldovagaz Vadim Ceban informed about this through Telegram. He said the transaction is a historical success on the national gas market.
The transaction was performed based on the decision taken by the Commission for Exceptional Situations on May 23, 2022. The gas was bought by Energocom for being stored. The profits from the transaction will be used by Moldovagaz to fulfill it financial obligations to Russia’s gas giant Gazprom.
● WEDNESDAY, May 25
Moldovagaz asks to raise gas rate for end users by 58.1%
Moldovagaz requested the National Agency for Energy Regulation to increase the average natural gas rate for end users. According to the calculations presented by this, the rate for the natural gas distributed through low pressure pipelines should be raised from 14,060 lei to 22,229 per 1,000 cubic meters of gas or by 58.1%. In a press release, Moldovagaz says the considerable increase in the purchase prices of gas is the main factor that requires a revision of the gas rates. “This decision is in strict compliance with the legislation. It will enable to fully cover the purchase piece and to this way fulfill the terms of the contract signed with the gas supplier,” noted the company. Moldovagaz asks that the new rates should take effect on June 1, 2022. The rate on natural gas at regulated prices is adopted by the National Agency for Energy Regulation in a public meeting. The purchase price of natural gas for May is US$920 per 1,000 cubic meters.
● THURSDAY, May 26
Andrei Spînu: Current gas rate does not cover purchase price of gas
Deputy Prime Minister Andrei Spînu said Moldovagaz’s request to raise the natural gas rate to 24 lei per cubic meter, with VAT included, is exaggerated, but admitted that the current gas rate of 15.18 lei should be raised as it does not cover the purchase price of gas. The official assured that the state will partially compensate the natural gas rates for consumers with low incomes. Yesterday, Moldovagaz requested the National Agency for Energy Regulation to increase the average gas rate for end users. According to the company’s calculations, the natural gas rate should be raised from 14,060 lei to 22,229 lei per thousand cubic meters of gas or by 58.1%. Deputy Premier Andrei Spînu admitted that the rate should be raised as the purchase price is now higher. “Owing to the war in Ukraine, we have an unprecedented situation. I cannot recollect a year when the price of gas in summer was higher than in winter. Calculations show the current rate does not cover the cost of the gas we buy from Gazprom. In April, we had a price of almost US$1,200. In May, the price is US$920. Respectively, the accumulated negative deviations made Moldovagaz to come with such a request to NAER. The Agency needs to do all the calculations, but I think the final rate of 24 lei is slightly exaggerated,” Andrei Spînu stated in the talk show “Secrets of the Power” on JurnalTV channel.
IPN withdraws the news article entitled „Alexei Gherțescu: Six companies will be penalized for carter agreement on oil market ”
Rectification: Following a notification from the Competition Council, IPN withdraws the news article entitled “Alexei Gherțescu: Six companies will be penalized for carter agreement on oil market”, published on 26.05.22, for the reason that it allegedly “contains inaccurate information that distorts the message transmitted by the president of the Competition Council in the program “Special Edition” of 25.05.22, misleading the general public”.
Gasoline will cost almost 31 lei on Friday
A liter of gasoline “95” on May 27 will cost almost 31 lei after the National Agency for Energy Regulation announced a rise of about 0.20 lei. So far this May, the price of gasoline “95” grew by 3 lei a liter. Today, a liter of gasoline “98” at filling stations is sold for almost 32 lei. A liter of gasoline costs 27.15 lei, while a liter of liquefied petroleum gas is sold for about 16.80 lei. At the beginning of last September, a liter of gasoline “95” cost 20.23 lei, while a liter of diesel oil – 16.42 lei.
Parliament ratifies €20m loan agreement with Poland
The MPs ratified the €20 million loan agreement between the Government of the Republic of Moldova and the Government of Poland. The money will be used to finance state budget needs, including to manage the Ukrainian refugee crisis. The loan will be disbursed in one tranche within three months of the coming into force of the agreement and will be repaid in 20 years in one installment. The interest rate is 0.01% a year and will be paid in 20 years. The loan agreement between the Government of the Republic of Moldova and the Government of Poland was signed on April 8, 2022 in Warsaw by the Prime Minsters of the two countries. The relevant bill was given two readings.
Minimum salary in public sector raised to 3,500 lei
The minimum salary in the public sector will be 3,500 lei as from May 1, as a bill that was adopted by Parliament after giving it two readings provides. The public sector employees who will have a minimum monthly salary lower than 3,500 lei when the given provisions take effect will get compensatory payments. A sum of 136 million lei is needed for implementing the provisions this year. The money will be allocated from the state budget. The minimum guaranteed monthly salary in the public sector is examined annually taking into account the minimum subsistence level for a given year. In 2020, the subsistence level was 2,000 lei, in 2021 it was 2,200 lei, while for this year it is 3,100 lei.
● FRIDAY, May 27
Vadim Ceban: Adjustment of tariff is a legal instrument by which we can cove purchase price
The president of the Administration Board of Moldovagaz said the raising of natural gas rates for end users is a legal instrument by which the company can cover the high purchase price of gas. Vadim Ceban noted that the current tariff is based on the purchase price of US$620, but during two consecutive months the purchase price was over US$900. The war in Ukraine disrupted the international natural gas market and the Republic of Moldova should adjust the rates to the new realities. Moldovagaz requested the National Agency for Energy Regulation to increase the average gas rate for end users from 14,060 lei to 22,229 lei per thousand cubic meters of gas or by 58.1% as from June 1. Vadim Ceban said they made such a request because the purchase price calculated based on the formal agreed with Gazprom is high. “It is the formula we agreed last October. It has two important components – the oil and natural gas quotations on stock exchanges. In winter, the oil component is about 70%, while the gas component is 30%. In summer, it is the opposite. In summer, the prices on stock exchanges usually decline. This year regrettably, given the war in Ukraine, massive amounts are stored in underground reservoirs in summer and the quotations do not decrease,” the head of Moldovagaz Vadim Ceban stated in the program “Shadow Cabinet” on JurnalTV channel.
Parliament to set up two commissions, on inflation and on fuel
A parliamentary commission will be constituted to examine the decision-making process concerning control over inflation and the monetary policy over the past 18 months. Another parliamentary commission will be created to examine the implementation of regulations in the sector of liquid fuels. Such recommendations were formulated by the Supreme Security Council that discussed the economic and social effects of the rise in prices and the risks to which the national economy is exposed in its Friday meeting. President Maia Sandu told a news conference that the meeting centered on the high inflation. “A number of public institutions presented reports and analyzes and relevant decisions were taken. I asked for clarification in the sectors where there are signals that they didn’t intervene on time or where monopolies continue to exist and to dominate,” stated the official. The Council recommended the Ministry of Economy, together with other responsible institutions, to analyze and remove the restrictions and impediments faced by small producers on local and improvised markets. The Government was recommended to eliminate the inefficient chains of intermediaries that do nothing but monopolize the distribution channels and unjustifiably increase prices.
● SATURDAY, May 28
11 million lei to enter Chisinau coffers after auctioning of vendor permits
Around 11 million lei will enter the Chisinau municipal budget after the auctioning of 23 lots in three open tenders for permits to place and operate temporary vending facilities in the city. 20 locations were on offer at each action. Half of them were withdrawn by the Auction Commission due to lack of bidders. The most expensive locations were a kiosk with soft drinks and hot beverages on Zelinski Street, 13 (which went for 1,006,250 lei) and for a news stall at the intersection of Ștefan cel Mare Boulevard with Bănulescu Bodoni Street (1,120,000 lei). Also, two locations for summer terraces in the La Izvor Park went for 962,500 lei each.
Three bankrupt banks involved in 2014 fraud recovered 2.8 billion lei from selling assets
As of March 31, Banca de Economii, Banca Sociala and Unibank managed to recover 2.77 billion lei, with trustees taking further steps to sell the assets of the banks that went bankrupt after the infamous fraud discovered in 2014. During November 2014 to October 2015, the three troubled banks received 14.1 billion lei in bailout loans from the National Bank.
The money recovered from selling the assets is used to cover operational costs in the liquidation process and for paying back debts. “The liquidators of the three banks take further measures to recover the loans. The liquidators cooperate with the investigation bodies and the judicial bodies and continue working with the debtors, the final goal being the repayment of the loans taken out from these banks and the payment of the emergency loans granted by the NBM”, the central bank said in a press release.
