Pridnestrovie does not agree to 'playing it long'

04/13/17 12:47

Pridnestrovie does not agree to 'playing it long'

The minister of economic development talked about the consequences of establishing a joint Moldo-Ukranian customs and border post in Kuchurgan

Tiraspol, 12 April. /Novosti Pridnestrovya/. Establishing a joint Moldo-Ukrainian border and customs post at the Kuchurgan crossing point will result in serious losses for Pridnestrovie. According to the Ministry of Economic Development, they are estimated at $38 million, or approximately 6% of GDP.

The minister of economic development, Sergey Obolonik, explained that the amount is primary and composed from both the budget losses and the losses incurred by economic agents.

«It must be clearly understood that the closure of 'Kuchurgan' does not cost $38 million. This is just one element of the economic collapse," Obolonik said in an interview with the First Pridnestrovian TV channel.

According to him, establishing the joint Moldo-Ukranian control may result in Moldova blocking «Kuchurgan» for Pridnestrovian economic agents and redirecting cargo traffic to other international crossing points. Besides, such a Moldo-Ukrainian point may be established at the Goyany checkpoint.

«And we will be blocked everywhere," said the minister.

The Kuchurgan border crossing is the eastern gate of Pridnestrovie, through which go nearly 75% of Pridnestrovian imports (excluding power supplies). These are mainly goods from Russia and to a lesser extent from Ukraine.

Speaking about our country's exports, Sergey Obolonik underscored that changes in the work of the Kuchurgan passing point would entail the reformatting of the work of entrepreneurs «if they are at all ready and agree to such changes» because, otherwise, they might leave the country or register as unemployed.

«This will again lead to budget losses in the form of allowances. As well as losses of the budget revenues in the form of patent value, in the form of taxes in general. This entire set of losses, including logistical, economic and budgetary, amounts to $38 million," the minister explained.

In addition, the redirection of import flows to Moldova will significantly affect the interaction of Kishinev and Tiraspol.

«A Pridnestrovian agent importing goods directly from Moldova rather than from the EU pays both VAT and excise duties to Moldova's budget. In doing so, Pridnestrovie also finances Moldova's economic growth that was promised by the European Union," said Obolonik.

It is also difficult to predict the impact of the Moldo-Ukranian post in Kuchurgan on the work of legal persons since neither Moldova nor Ukraine provides clear information

«The customs agencies of Moldova are currently issuing product and export certificates in Kishinev. There are no guarantees this could be done in Kuchurgan," said the minister.

«In general, it is not reasonable to consider the conditions that are being put forward to us because this is already a complex blockade. This is a matter of sovereignty. This is what they are trying to achieve by pushing small businessmen working under patent, who are over 20,000 in number here, to the jurisdiction of Moldova. This is a huge proportion of the economically active population of Pridnestrovie," said the minister.

According to the minister, Moldova and Ukraine are «playing it long», but Pridnestrovie is not going to give up its positions.

«By gradually creating prerequisites and conditions, a situation may finally arise where positions should be given up, which we oppose to… Undermining statehood is not perhaps the right thing the rationality of which we should consider and speculate about. This is in principle unacceptable," concluded Sergey Obolonik.

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