Transnistria may terminate trade relations with Moldova
Moldova, which artificially creates economic problems for Transnistria, may itself face a more serious crisis in the economy. Moldovan currency has accumulated in the PMR in the amount of a billion lei (135 million dollars). This is due to the fact that the unrecognized republic sells more goods to Moldova than it buys: in 2020, exports amounted to $370 million, and imports – only $250 million.
Yuri Cheban, President of the Union of Industrialists, Agrarians, and Entrepreneurs of Pridnestrovie, spoke about this in an interview with the First Pridnestrovian TV channel, reports a PolitNavigator correspondent.
“Lei are depreciating because they do not correspond to the mass of goods. But there is no marketable mass,” said Cheban.
The problem is that Moldovan banks, on the instructions of their government, do not open foreign currency accounts for Transnistrian enterprises and do not allow them to convert lei into foreign currency. The process began to intensify after Chisinau concluded a gas supply contract with Russia. Now gas for Moldovan consumers is 10 times more expensive than for residents of Transnistria.
“The logic of action is very simple. The mass of lei that exists in Moldova is also beginning to depreciate. It will continue to depreciate due to other tariffs under the gas contract. The gas component will also influence inflationary processes, and they will lead to devaluation processes in Moldova. A smaller left mass is needed to enhance the hardness of the lei. Let us give part of the lei to Transnistria. They are going to resolve their issues at our expense,” Cheban said.
Primarily large industrial enterprises in Transnistria suffer from an oversupply of lei. In particular, the Moldavian State District Power Plant, owned by RAO UES, which provides 70% of Moldova’s electricity needs. Chisinau's discriminatory banking policy may face a new (after gas) energy crisis.
“The Moldovan side is not playing a very good game with Russia. It is not profitable for the Moldavian State District Power Plant to receive Moldovan candy wrappers for a real product. It is unlikely that there will be flows from Ukraine in the near future, because there is a shortage there. Most likely, our colleagues from Russia will reconsider their relationship strategy for the next contract period.
This is not just a struggle between our banking systems. Since the Moldavian State District Power Plant feels the negative impact most seriously, there are most likely extrapolations to the Russian Federation. A solution may be found in such a way that Moldova will lose from it,” Ceban said.
Deputy Minister of Foreign Affairs of Transnistria Alexander Stetsyuk does not rule out a complete severance of trade relations with Moldova.
“Chisinau has chosen the path of creating major problems for the implementation of foreign economic activity of Pridnestrovie and is not ready to compromise. The strategic goal has been chosen - to collapse interbank relations. Chisinau is pursuing its political goals - the suppression of Transnistria. The goal is one - to cause maximum damage.
Moldova has been actively implementing this process for the last two years. Not only the international transactions of our agents were blocked, but also financial exchanges between enterprises from Transnistria and Moldova. The goal is clear, all that remains is for Pridnestrovie to take a step in this direction. And, taking into account the factor of excess lei, we can say that a breakdown in relations between Transnistria and Moldova is quite real. There is not much time left to correct this situation,” Stetsyuk said.
Transnistria may cease trade relations with Moldova.