Tiraspol, March 26. /Novosti Pridnestrovya/. Today the actions of the Moldovan authorities in relation to Pridnestrovie actually lead to the non-functionality of the duty-free trade regime of the PMR with the European Union. Chisinau creates a barrier to this regime by introducing various tariff and non-tariff restrictions.
The Minister of Economic Development of the PMR, Sergei Obolonik, stated this at the international conference “Pridnestrovie in the realities of geopolitical confrontation: blockade 2024”. The conference was organized by the Center for the Study of Peacekeeping and took place today at the Pridnestrovian State University.
Sergei Obolonik recalled that Moldova has increased economic pressure on the PMR since 2019, when it began blocking the accounts of Pridnestrovian enterprises in commercial banks of the Republic of Moldova. Since 2022 Pridnestrovie has faced a variety of export-import restrictions, bureaucratic barriers, new fees (environmental and customs) and payment procedures. This led to an increase in the price of medicines and other essential goods in the republic, as well as to difficulties in the operation of enterprises - even to the point of their shutdown.
The introduction of customs duties by Moldova from the beginning of 2024 was a shock for the Pridnestrovian economy. Because of this, the republic’s trade turnover decreased by 19% in January. In February there was a certain recovery, but not complete.
“We still lost 11% of what was imported before. Since the beginning of the year, fewer shoes, clothes, cotton, medicines, fertilizers, sugar, animal and vegetable oils have been imported,” Sergei Obolonik said.
He drew attention to the fact that the banking blockade seriously aggravates the effect of customs duties in Moldova. Pridnestrovian enterprises cannot open accounts in Moldova, and if they do not have accounts, they cannot obtain a preferential Euro-1 certificate, which gives the right to duty-free import of goods.
“It turns out that the same product, for example from Italy, is imported into Moldova without duties, and into Pridnestrovie with duties,” Sergei Obolonik stated today.
He recalled the estimates of Pridnestrovian experts: the minimum losses from duties introduced by the Republic of Moldova in 2024 will amount to $12 million. But, most likely, these losses could be much greater - up to $33 million, again due to the fact that Pridnestrovian enterprises will not always be able to obtain preferential certificates.
“These 33 million, taking into account the classical laws of economics, will have to be paid directly by the residents of Pridnestrovie, buying goods that have become more expensive in stores,” the head of the Ministry of Economic Development said.
He also drew attention to the other side of the problem: due to various import restrictions from Moldova, Pridnestrovie is forced to purchase more and more goods, including essential goods, from the Republic of Moldova. However, their price already includes the Moldovan value added tax. This also leads to higher prices for goods.
“VAT, which goes to the budget of the Republic of Moldova, has increased by almost 15 million dollars in recent years: from 17 million in 2019 to 32 million in 2023,” Sergei Obolonik noted.
In general, additional costs for Pridnestrovian enterprises from customs duties of the Republic of Moldova, Moldovan VAT and the consequences of the banking blockade this year could reach about $100 million. This is about 10% of Pridnestrovian GDP.
“Even during crisis periods - the COVID-19 pandemic, the 2008 crisis - the rate of decline in GDP of most countries was no more than 6%, and this 6% was felt very painfully and hard by the population,” the head of the Ministry of Economic Development emphasized, adding that “no previous regional crises did not have such a detrimental effect on the economy of Pridnestrovie as the unilateral steps of Moldova.”
