Ignatyev: ‘The main obstacle to the country's economic growth and well-being is the discriminatory steps taken by neighbouring states’

05/17/17 11:49

Ignatyev: ‘The main obstacle to the country's economic growth and well-being is the discriminatory steps taken by neighbouring states’

Pridnestrovie's foreign minister spoke about Moldova using economic leverage against Pridnestrovie

Tiraspol, 17 May. /Novosti Pridnestrovya/. The main problem of Pridnestrovie's industrial complex is that its potential is deliberately constrained by economic blockade measures, including deliberate restrictions on its banking system. Vitaly Ignatyev spoke about the methods Moldova is using against Pridnestrovie in an interview with the Centre for Military and Political Studies of MGIMO-University.

«Any economy can thrive only when it is not restricted by politics, in our case by discriminatory steps taken by neighbouring state and aimed at destroying Pridnestrovie's foreign economic relations. This is a crucial moment and a major obstacle to the economic growth of the country," said the minister.

According to him, Moldova is systematically violating the agreements concluded in the framework of the negotiating process, seeking to create new leverage over our economy and social sphere, dragging the country in its legal framework. In this regard, the process of establishing trade and economic relations with partners is not always smooth.

«In spite of this, it is well understood by all leading partners that Pridnestrovie has its own economy, financial systems and budget, not connected with Moldova, that Pridnestrovian enterprises remain Pridnestrovian, having only a legal shell in Moldova. For this reason, we haven't managed up to now to find compromise solutions, enabling trade on a mutually beneficial basis.

Because of the economic blockade and internationally unrecognised status, as well as constantly changing rules imposed by Moldova on Pridnestrovian business, Pridnestreovie's enormous investment potential is standing idle, the diplomat notes.

«The PMR has a favourable geographical position, and we are prepared to create the most flexible and advantageous conditions for foreign investors, including for the purpose of attracting hi-tech industries in the republic. However, whatever conditions we create, the investor will always be intimidated by uncertainty, the inability to predict when and to which extent far more discriminatory regime of foreign economic trade will be imposed by Kishinev to once again hit the PMR's economy," said Ignatyev.

However, according to him, despite the difficulties, the country's enterprises produce hi-tech goods that are in demand in the countries of both the EU and the Eurasian Union.

«Taking into account the capabilities of Pridnestrovian enterprises, the country is equally interested in the markets of Russia, Eurasian EU, Europe and even Asia, moreover, we regard them as promising, but in the face of external constraints, the need to pay taxes to the Moldovan budget in exchange for export rights, Pridnestrovian goods often prove uncompetitive," Ignatyev concludes.

At the same time, Ignatyev cites the Elektromash plant which successfully sells its goods to Eurasian countries as an example. In Kazakhstan, for example, the machines made at our plant are used to mine gold. The high-tech units manufactured by Elektromash have long been employed by Russia's Transneft, and there are plans to expand the geography of supplies.

«The conclusion is simple — even despite all the additional costs, some of our factories remain competitive in a situation where the final consumer is thousands of kilometres away. It is easy to assume that under equal competition our other goods will also find market outlets in the EEU," noted the foreign minister.

 

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