● TUESDAY, June 6
„Moldavskaya GRAS” to also supply electric power to Moldova
SA „Energocom” has signed a contract for the supply of electric power to Moldova with ZAO „Moldavskaya GRAS”. The contract took effect on June 5, 2017 and is valid until March 31, 2018, as the contract signed with Ukraine’s „DTEK Traiding” at the end of March. The two contracts guarantee the provision of Moldova with electric power - 30% by the Ukrainian company and 70% by „Moldavskaya GRAS”. According to „Energocom”, this will enable the Moldovan end-users to benefit from the most advantageous and safe conditions of electricity supply during the contractual period.
There are preconditions for 2017 revenues to be higher than planned, expert
The 16.7% rise in the national public budget revenues during the first four months of this year compared with the corresponding period last year is due to the increase in incomes collected as taxes and duties, social contributions, mandatory premiums and grants, said Dumitru Budianschi, expert of the Analytical Center “Expert Grup”. According to the expert, the revenues from taxes and duties represented 20.1%, the social contributions and mandatory premiums rose by 14.1%, while the grants constituted 30% of the level of 2016. The income tax of private individuals made up 109.4% compared with the first four months of 2016, the social contributions – 115.5%, while the health insurance premiums – 110.3%. The expert noted the share of revenues for this period is one of the highest in the last five years for all the main taxes. There are solid preconditions for the effective revenues for 2017 to be higher than it was planned - by 12% huigher compared with 2016.
Fines of over 19m lei imposed by Competition Council last year
The Competition Council last year imposed fines totaling over 19 million lei. Of this sum, 5 million lei was already collected into the state budget. In an event held to present the Council’s report for 2016, chairwoman Viorica Carare said the goal of the national competition regulator is not to punish business entities, but to make them realize that they can distort the competition environment. The existence of fair competition is a precondition for the population to benefit from goods and services of a high quality and at reasonable prices. The Competition Council was created ten years ago. It developed its institutional capacities with the assistance of experts from EU member states, mainly Romania.
● WEDNESDAY, June 7
Government officials explain why procurement of power from Cuciurgan plant was resumed
The resumption of the procurement of electricity from the Cuciurgan power plant is a step towards the country’s reunification. This is how the Moldovan authorities explain the return to the old contracts on the supply of power after importing electricity only from Ukraine for a period. Explanations were provided in the talk show „Moldova live” on the public TV channel Moldova 1. „Some look at the electric power purchases from Cuciurgan as at an economic form of the support for the separatist Transnistrian regime. Others, on the contrary, consider such an act represents support for the Transnistrians, who are also citizens of the Republic of Moldova. The restoration of relations with Cuciurgan forms part of the measures taken to increase the confidence of the region’s residents in the Government of Moldova. By such a step, we avoided the worsening of the relations with Transnistria”, said Ion Stavila, ambassador with special missions of the Ministry of Foreign Affairs and European Integration. Moldova on June 5 resumed the procurement of electrical energy from the Cuciurgan power plant after refusing two months ago to sign a contract with this in favor of the contract with a Ukrainian company.
There were no real reasons for signing contract with ZAO “Moldavskaya GRAS”, experts
Experts Sergiu Tofilat and Ruslan Surugiu said the signing of the contract with ZAO “Moldavskaya GRAS”, for the supply of electrical energy to the Republic of Moldova, represents continuation of the financing of the separatist Transnistrian regime and of accumulation of debts for gas, which now total US$6.5 billion. The experts consider that by supporting the signing of this contract in secret, through the Ministry of Economy, the Moldovan authorities are promoting the interests of the Russian Federation. These addressed a public letter, including to the law enforcement bodies, whereby they ask the Ministry of Economy to explain the necessity of signing the contract for the purchase of power with ZAO “Moldavskaya GRAS” after signing a similar contract with the Ukrainian company and to make public the documents showing that the latter cannot fully supply the quantities of power requested by “Energocom”.
PPPDA suggests solutions for fighting underground economy
The underground economy is one of the main threats to the economic security of Moldova, considers the Party “Platform Dignity and Truth” (PPPDA). According to the party, national and foreign experts estimated that the black economy accounts for 50% to 70% of the Gross Domestic Product, which means that about 70-90 billion lei circulates annually in the underground economy. If this economic segment is legalized, the national public budget will annually collect at least 30 billion lei as taxes and contributions, which is almost one more state budget. The PPPDA believes the activity of offshore firms in the strategic areas of the country’s economy, such as banking sector, insurance and others, should be banned and a special tax on transactions with offshore companies should be introduced. The party suggests decreasing the state mandatory social insurance contributions by 6 % and reducing these by another 3% during the next two years and diminishing the mandatory health insurance premiums by 2% and not taxing incomes that ensure minimum subsistence. The income tax should be reduced to 10%.
● THURSDAY, June 8
Share capital of Chisinau Glass Factory to be increased
The Ministry of Finance will allocate 12.5 million lei from the 2017 state budget to the state-run company “Fabrica de sticla din Chisinau” (“Chisinau Glass Factory”) for increasing its share capital, IPN reports, quoting a Government decision. The Ministry of Economy, which is the factory’s founder, argued that in 2016 the factory stopped work as a result of an incident at the melting furnace of section No. 2. It thus had to initiate capital repair works. Also, the company works in a very harsh competition environment and permanent investment is needed to ensure its products are competitive. The Ministry of Economy also said that about 18 million lei will be collected from the factory as taxes into the state budget if this resumes work. Also, there will be earned dividends of 4.4 million lei. It is planned that the state-run company will resume work this July. The factory employs over 500 persons who get an average salary of 6,103 lei.
Advertising of alcoholic drinks could be restricted
The Cabinet on June 8 approved a bill to amend and supplement a number of legal acts on alcohol control in a bid to restrict the advertising of alcoholic drinks. The bill bans messages that promote alcoholic products in education institutions and medical-sanitary facilities. The bill stipulates a series of exceptions, such as the advertising of alcoholic products through radio and TV stations between 10pm and 7am and in public areas authorized by the local public authorities during the celebration of national holidays and special events centering on the manufacture and circulation of alcoholic drinks.
Moldova transposes European directive on animals used for experimental purposes
The Cabinet approved the initiative of the Ministry of Agriculture and Food Industry on the protection of animals used for experimental and other scientific purposes. The bill ensures the transposition of the EU Directive on the protection of animals used for experimental and other scientific purposes that was published in the Official Journal of the European Union. The law will enable the National Food Safety Agency, the Ministry of Education, the Ministry of Environment and the Ministry of Health as well as the Academy of Sciences of Moldova to have a more efficient mechanism for protecting the animals used for experimental and other scientific purposes in Moldova by laying out minimum requirements concerning the maintenance, welfare and health of animals and for preventing the ill-treatment of animals.
● FRIDAY, June 9
Cabinet approves new accounting law
Accounting will be regulated by a new law that was adjusted to the provisions of the European legislation on corporate financial reporting. Only the public authorities and self-managing institutions will be obliged to implement the Accounting Law. In case of budget-funded institutions, financial reporting will be regulated by the Law on Public Finances. The new accounting law approved by the Cabinet updates the criteria for classifying by categories the entities and groups of enterprises (micro, small, medium-sized and large) and specifies the accounting and financial reporting requirements for these. Besides transporting the requirements of the EU directives in the field, the draft law updates the notions used in accounting and financial reporting and specifies the requirements as regards the primary documents and accounting registers and the persons responsible for keeping accounting records and financial reports at the entity. The bill also contains provisions concerning the financial situation responsibility of the members of the Board and of the executive and surveillance body.
Possibilities of exporting to EU market discussed at “AgriFood Export” forum
Entrepreneurs from both sides of the Nistru River were informed about possibilities of exporting agrifood products to the European Union and subsidization programs at the business forum “AgriFood Export”. Attending the event, the Ambassador of Italy in Chisinau Valeria Biagiotti said almost three thirds of Italy’s agrifood exports are intended for the EU, which can be an attractive market for Moldova as well. In the same event, Deputy Minister of Agriculture and Food Industry Iurie Usurelu said that to obtain more important market shares, the exported products should be of a high quality and in larger amounts, which can be provided only if small and medium-sized producers form associations. The cooperation with foreign partners that already have significant experience in the field is very important for accelerating the progress of companies operating in the agrifood sector.
Campaign to promote importance of free trade with EU
The EU Delegation in the Republic of Moldova has launched a series of videos showing testimonials by businessmen in the Republic of Moldova. The Delegation will request the Broadcasting Coordination Council to recommend the broadcasters to disseminate the videos. The eight participating companies come both from the agricultural sector and from the industrial sector. According to the Head of the EU Delegation Pirkka Tapiola, the Moldovan products’ access to the European market is very difficult, but Moldova is a success story. “We wear shoes made by Floare, have German cars with Moldovan cables inside and wear clothes made by Ionel. Moldova is part of the DCFTA and becomes more competitive year after year,” Pirkka Tapiola stated in the event to launch the videos.
Last African swine fever hotbed liquidated in Edinet
The sanitary-veterinary restriction imposed in Bratuseni village of Edinet district following the detection of an African swine fever hotbed was lifted. During a working visit to Edinet district, specialists of the National Food Safety Agency established that a number of remedying measures have been taken in the period and the animals there didn’t show signs of disease. In a press release, the Agency says all the lab tests performed on the 7th, 14th and 21st days were negative. In this connection, the Agency’s vice director general Vsevolod Stamati ordered to lift the sanitary-veterinary restriction imposed in Bratuseni. The African swine fever virus was brought to Moldova from Ukraine despite the strict control of the import of meat.
