The President held a meeting of the PMR Security Council

01/08/24 14:47

The President held a meeting of the PMR Security Council

The Security Council was held by Vadim Krasnoselsky. The agenda included ensuring food security and new measures of economic pressure on Pridnestrovie. We are talking about the collection of customs duties by Moldova from Pridnestrovian entrepreneurs from the beginning of the year. The measure is unlawful, unjustified and clearly demonstrates the attitude of the Moldovan side towards the Pridnestrovians. There is no other way to describe what is happening than robbery, the meeting participants noted. “The Moldovan side has not clarified the situation until now. We don’t know what product groups duties have been introduced on, how this mechanism will work, where these funds will go when collecting duties,” the President noted, recalling that customs and tax fees should go to the local budget, that is, this money must be returned to the Pridnestrovian treasury in any case. The President emphasized that this issue is being considered in the context of ensuring the economic security of the republic. Vadim Krasnoselsky focused on the fact that much has been done in this direction in Pridnestrovie. One of the priority tasks set by the President seven years ago and spelled out in the PMR Development Strategy is an effective internal policy aimed at ensuring food security. Vadim Krasnoselsky requested up-to-date information. According to data announced by the Chairman of the Government of the PMR, Pridnestrovian farmers harvested in 2023 more than 526 thousand tons of grain and leguminous crops. 338 thousand tons of winter wheat were threshed. This volume is enough to not only fully satisfy the needs of Pridnestrovians for bread, but also to export grain. The available wheat will last the republic for two years, barley – for two and a half, corn – for three, sunflower (with domestic oil production) – for one and a half years. The remains of these crops are constantly monitored. The President ordered the provision of updated data on balances for these and other items, including medicines, every two weeks. It was also noted that local agricultural producers supply the domestic market with seasonal vegetables by 90% (carrots and cabbage – 100%, beets –90%, onions and potatoes – 65%), meat – by 39.2%, milk – by 72%, eggs – by 34%. The production of sausages in the republic is 4.5 times higher than the demand.

Speaking about foreign economic activity, they noted that the export of Pridnestrovian products (excluding electricity) decreased by 12% (to 468.7 million conventional monetary units) for 11 months of 2023 (January – November). As a result, the negative balance of foreign trade turnover reached minus $108.1 million compared to 2022. Four main groups of exported goods: metal and metal products, products of the light, engineering and chemical industries – together make up half of all exports. The total volume for these items was decreased by 18.8% last year. It was stated at the meeting that the reason for this state of affairs is the increased sanctions pressure from Moldova in addition to the difficult geopolitical situation.

Alexander Rosenberg recalled that in violation of the agreements reached Moldova introduced a fee for customs clearance of imports and exports of Pridnestrovian participants in foreign economic activity (0.4% of the customs value of imports and 0.1% of exports) on August 10, 2023. The monthly amount of additional costs of Pridnestrovian enterprises is estimated at 260 – 300 thousand dollars. The Rybnitsa cement plant and Moldavian metallurgical plant are unreasonably charged for environmental pollution. Pridnestrovian producers of alcoholic beverages – KVINT and Bouquet of Moldova – are experiencing pressure from the fiscal authorities of Moldova. The export of goods from the enterprises Elektromash, Moldavizolit, Potential, and Pribor has been blocked. The suspension of the activities of the Moldavizolit, Potential and Pribor plants has already led to a reduction in tax revenues to the Pridnestrovian budget by 1.5 million rubles per month. The treasury of Pridnestrovie will receive a monthly shortfall of 27 million rubles if the blockade practice continues against the eight designated producers. The norm of the Customs Code of the Republic of Moldova, introduced on January 1, 2024, requiring the payment of duties by Pridnestrovian importers, according to preliminary estimates, will result in additional costs exceeding $5 million. Moldova’s blocking of bank transfers adds difficulties, including financial ones. The greatest losses in case of payment of customs duties are expected for such items as milk, butter, cheeses, eggs, sugar, pasta, confectionery, as well as fiberglass, glass products, air conditioners, refrigerators, washing machines, video recording and video playback equipment.

Members of the Security Council discussed specific measures to support Pridnestrovian producers, steps designed to strengthen the production potential of the republic and ensure the economic security of the country. Instructions were given to continue negotiations with the Moldovan side and with representatives of the international community to resolve the current situation.


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