News Updates

2 December 2014

Moldova 30 November 2014: Election results

ele2Sum-up of Moldovan preliminary votes after processing of 98, 79% of Electoral Reports. According to the Constitution of Moldova, a political party needs 6% of the total votes in order to be part of the new Government.

1. Democratic Party of Moldova (PDM) 15.9% – equivalent of 19 Mandates

2. Liberal-Democrat Party of Moldova (PLDM) 19.98% – equivalent of 23 Mandates

3. Socialist Party of Republic of Moldova (PSRM) 20.72% – equivalent of 25 Mandates

4. Communist Party of Republic of Moldova (PCRM) 17.67% – equivalent of 21 Mandates

5. Liberal Party (PL) 9.54% – equivalent of 13 Mandates

Pro-EU (forecasted) coalition PDM + PLDM + PL = 55 Mandates

9 September 2014

A dairy company in Moldova expands in Kazakhstan

JLC JLC Group, one of the largest dairy producers in Moldova, Kazakhstan extended. Recently, the company has put into operation a new plant in Almaty region – “JLC Syt”. In late August, the factory was visited by President Nursultan Nazarbayev, the Kazakh media writes. During the visit, President Nursultan Nazarbayev familiarized with production technology. The Head of State also spoke about the results of the reconstruction of the plant, increasing capacity and prospects of development of the resource base, according Factory “JLC Syt” is equipped with Italian equipment, designed to produce more than 50 types of dairy products. In the first phase, the plant will produce 15 tons per day, and in the future, management plans to expand to 21,800 tons per year. To date, 102 sites have been created and will soon open another 50. In 2013, the company benefit from the program “Business Road Map-2020″ received state support for the construction of cable line, subsidies worth 3 million euros. Company “JLC Group” is a transnational group, consisting of production enterprises, enterprises in wholesale and retail trade and service provision. Enterprises group of companies is in the Republic of Moldova, Ukraine, Kazakhstan, Germany and Romania. Main activities of the company are: dairy products including pasteurized milk and milk products in various packaging, weighing and packing butter, powdered milk (skim and whole), ice cream and soda; construction; Automobile; agriculture; flexography; wholesale and retail trade. Corporate headquarters “JLC Group” is located in Chisinau, Moldova.

20 August 2014 Boat

Premiere for Moldova: grain export by river

After long expectations grain exporters will be able to export via river. In this regard, yesterday, August 19, Câșlița-Prut village was inaugurated the first trans-shipment of grain on the river Prut, according UNIMEDIA. Câșlița-Prut village is 11 km upstream from Giurgiulesti. map Grains were loaded into a special machine, pontoon, for then to be taken by a ship. The first two barges, each loaded with 700 tons of wheat will reach the ports of Reni and Constanta, where goods are loaded on a ship, the final destination is Egypt. Creating such a point load of grain, then transported on the river Prut, facilitate the export of grain, as businesses was previously faced with a shortage of freight cars and truck for export. Currently there are six barges available for trans-shipment of grain, which is leased from the port Reni, Ukraine. According to Transport Minister Vasile Botnari, this year there are requests from operators to carry 200,000 tons of grain. He also speaks about the advantages of this kind of transportation, which is less expensive than land transport. Tudor Calcatinge, Câșlița-Prut terminal manager is confident that after the terminal will be set up, this will foster the development of infrastructure in the area and create jobs for the local municipality. Minister Vasile Botnari also speaks of follow-up projects of cleaning of the river Dniester, for it to become open to navigation.

19 August 2014

Transnistrian economic relations: trade with the EU increased by 2.3 times

Foreign trade has increased significantly in the second quarter of this year, according to a study by the Independent Expert Group Analytical Center. Thus, exports to the EU increased by 2.3 times, and deliveries to the CIS increased by 39.1% over the same period last year. “Export growth was driven by higher metal delivery outside. In the second quarter, exports grew by 71.4% over the same period last year “, says the study” Economic Reality of Transnistria”. During the reporting period, exports of metals increased by 13.8 times compared to same period last year. However, imports increased by 10.1% over the same period last year. With regard to internal trade, it is stagnant and January-June 2014 has advanced 0.1%. This development is due to reduced retail while public services have increased relatively constant, explain experts Expert-Grup Independent Analytical Center. During the period January to June, retail trade fell by 1.2% compared to your access period and public services increased by 4.5%. “Economic Reality Transnistria” is a quarterly publication that identifies the most important economic and political developments in eastern districts of Moldova.

12 June 2014

The Russian `Solution` for preventing re-exports after Moldova signs Association Agreement with EU

Since July this year, the producers of the Customs Union of Belarus, Kazakhstan will be able to obtain detailed information about the volume and origin of imported goods. This will allow to track possible actions of dumping efficiently, said members of the Eurasian Economic Commission, writes RBK. According to him, the new service will be a relevant response to the signing of the Republic of Moldova and Ukraine Association Agreement with the European Union. “This will enable companies to quickly identify assets increase re-exported to Russia,” said a source within the Eurasian Economic Commission. The service itself will be an electronic platform where entrepreneurs have access to the database on imports. Access will be via a ten-digit code according to the nomenclature of goods in the context of supplier countries. Subsequently, local businesses will be able to use this data to submit and substantiate complaints about dumping actions by competitors.

27 May 2014

100 million Euros from Sweden

Sweden will provide Moldova with about 100 million euros to implement reforms. This is stipulated in the Swedish government’s strategy, based on the results of the cooperation in reforms with the Eastern Europe for 2014-2020, launched at a today’s joint news briefing between Prime Minister Iurie Leanca and Swedish Ambassador to Moldova Ingrid Tersman, the government’s communication and media relations department has reported. The official said the strategy stipulated that the government would invest 500 million euros for supporting reforms in the Eastern Partnership countries during the next seven years, and the important sectors of implementing the strategy would be identified under an analysis of outcomes achieved in the Eastern European states. “Moldova is a priority country within the Eastern Partnership. Thus, Sweden ruled to earmark 14 million euros each year to promote reforms, and during seven years, this amount would reach almost 100 million euros,” Tersman said. The ambassador also said the strategy would be focused on three basic trends: Moldova’s closer economic integration into the EU and development of market economy, strengthening democracy, ensuring better respect of human rights and supremacy of law, building a better environment, reducing climate impact of human activities and strengthening resistance of society and economy against extreme weather events and global climate changes. Leanca highly appreciated the support provided by the Swedish government for Moldova’s development in different sectors. Leanca said the document was the one with direct implications on our country’s future, which goal was focused on the development priorities and short-term purposes set by the Moldovan government and fully meet our EU integration demarche. “The small and medium enterprises will have a special role in Moldova’s economic integration into the EU and development of market economy. Yet, although in 2013, about 60 per cent of the workforce was employed at these enterprises, which generated only one third of the GDP. Thus, Moldova’s integration into the EU market and fortification of basic institutions of the market economy will help these structures recover the competitive gap and productivity in relation with the large enterprises and to offer new chances, especially, to young people from rural areas,” Leanca said. Leanca also said Sweden was among the most important development partners of Moldova, with projects in the most diverse social and economic sectors. Thus, under the cooperation strategy for 2011-2014 alone, Moldova benefitted from a yearly financing worth about 11 million euros. The action area of this cooperation is focused on such sectors as: democracy, human rights and gender equality, lasting infrastructure, market development and fighting corruption and central public administration reform. Leanca welcomed the initiative by the Swedish Embassy in Chisinau to organise the launch of the strategy at the Agrodor enterprise from the Cojusna village, which proved the results of generous assistance of the Swedish government, managing to develop business, reduce economic and climate vulnerabilities. The premier said this example was a proof that the strategy’s goals for our region aimed at making better and safer the life of the Moldovan citizens. Note: The Agrofor Company benefitted from the support of the Swedish Embassy in Moldova via the TAM BAS programme of the European Bank for Reconstruction and Development in 2012. Under this project, the Swedish government offered 9 out of 16,000 euros for the construction of a deposit and a fridge to preserve the agricultural production. This allowed doubling the returns of enterprises and increasing three-fold the company’s contribution to the state budget. In 2014, the company, which has 40 employees, marks its tenth anniversary.

20 May 2014

June 5-12: Investment-Event in Moldova

The biggest investment-event of the year – “Moldova Business Week” will be organized in Chisinau from June 5 to 12. It will gather representatives from the EU, Austria, Bulgaria, Turkey and several European institutions such as the EIB, EBRD. The week will start with ‘Exporter’s Forum’ which is a gathering of the top 100 exporters of 2013. During the first day, the focus will be on the Moldovan infrastructure system, the E-customs, the DCFTA agreement and the internal and external mechanisms for funding enterprises. During the first day the second session of the Diplomatic Economic Club will take place. DEC is a platform initiated in 2013 by the Ministry of Economy, which brings together representatives of diplomatic missions accredited in Chisinau in order to promote investment opportunities in Moldova. On June 9, separate seminars will be organized for the development by regions of Moldova: North, Center, South, Gagauzia and Cosnita (Dubosari). The main objective of regional seminars is to establish specific investment needs and attract investors in the regions. On June 10, MIEPO is organizing a reunion with the assistance of VEF (Vienna Economic Forum). The forum will be dedicated to: developing regions, prioritizing investments in infrastructure for the increasing of competitiveness, the enhancement and diversification of foreign trade of Moldova. Also, the Forum will host an exhibition on the investment potential of industrial parks and FEZs. The Moldova Business Week will end with the EU-Moldova Investment Conference, scheduled for June 12, with the participation of Jose Manuel Barroso. He will be accompanied by senior officials of European investment management arm of the EU – EBRD and EIB, and international companies. The conference will discuss in detail about the Association Agreement and DCFTA impact of European economic integration for business and investment in Moldova.

20 May 2014

Russia Said to Plan Retaliation If Moldova Strengthens EU Ties

Russia may raise trade barriers against Moldova if the former Soviet republic follows Ukraine in seeking an association agreement with the European Union, said two government officials with knowledge of the plans. Moldova, which plans to sign a free-trade pact with the 28-member bloc next month, may face higher import duties if the deal leads to the free flow of European goods that hurts the competitiveness of Russian products, the people said, declining to be named because the deliberations aren’t public. Moldova, whose breakaway region of Transnistria last month appealed for recognition to President Vladimir Putin, is pressing ahead with plans to seal the agreement in the face of outside political and economic pressure, President Nicolae Timofti said May 12. Russia, a destination for about a quarter of Moldovan exports including fruit and vegetables, banned imports of its wine last year before an EU Eastern Partnership summit, where the Chisinau government initialed the accord. Read more in the following article >>

12 May 2014

Moldova and Poland to sign agreement on modernization of livestock sector

Agreement to modernize Moldova’s livestock sector is going to be signed on Wednesday, May 14, during the official visit of Prime Minister Iurie Leanca, in Warsaw. The agreement was approved today, May 12, by the members of the Cabinet. The document provides obtaining an assistance credit on favorable terms. The Polish government will give Moldova a loan in the amount of 100 million euros for a period of 25 years, the annual rate of credit is 0.15% with a five-year grace period. The agreement will allow to restructure and modernize the agriculture sector, especially the farms producing traditional (milk, meat) and other competitive agricultural products. Also, the assistance will allow investment in modern technologies for processing agricultural products. It was announced about the agreement at the end of March, by Premier Leanca and his Polish counterpart, Donald Tusk, who was then in an official visit to Chisinau. In Poland, Prime Minister will be accompanied by a group of ministers to attend the annual meeting of the Board of Governors of the European Bank for Reconstruction and Development.

29 March 2014

Moldova accesses to the Eastern Europe Energy Efficiency and Environment Partnership

The Republic of Moldova will benefit from grants amounted at 20 million euros from the Eastern Europe Energy Efficiency and Environment Partnership Fund (E5P). The Inter-ministerial Committee on Strategic Planning decided to sign the financing Agreement with E5P at the request of the Economy Ministry of the Republic of Moldova. The grants provided by E5P can be used both for projects of technical assistance and for investments. Under this fund, there will be financed energy and environment projects which aim to enhance the heating system, water supply, streets’ illumination, energy efficiency of public buildings, wastes management and recycling. Under the rules of association to the Eastern Europe Energy Efficiency and Environment Partnership, the countries which want to benefit from grants provided by E5P should come with their own contribution. The Republic of Moldova will contribute with a sum of one million euros for this fund, runs a release of the Economy Ministry. The Economy Ministry held negotiations with the representatives of the E5P Fund aimed to staggering Moldova’ s own contribution for a 5 year period. The Eastern Europe Energy Efficiency and Environment Partnership Fund has a 93 mln Euro capital and was initiated in 2009 by the Government of Sweden in partnership with EBRD, EIB, World Bank Group, Nordic Environment Finance Corporation and the Nordic Investments Bank. This Fund aims to provide financial support for increasing energy efficiency in the countries of Eastern Partnership of the European Union.

21 March 2014

World Bank to provide a 25 million dollar grant to Moldova

The World Bank (WB) will provide to the Republic of Moldova with a 25.3-million-dollar grant to implement the Project “Competitive Agriculture in Moldova”. The Parliament ratified an agreement on the matter today, March 21. The grant agreement is offered to Moldova by the Swedish government and will be managed by the International Bank for Reconstruction and Development. The project’s development goal is to strengthen the competitiveness of agri-food sector by supporting the modernization of the system and facilitating farmers’ access to sales markets. The project regards a string of beneficiaries in the private and public sectors, as well as the agriculture sector associations. The money will be provided for setting up producer groups benefitting from grants estimated at up to 300,000 dollars, Moldpres reports. The project is worth 25.3 million dollars in all, of which 18 million dollars will be provided by the World Bank. The project will be implemented for a five-year-period.