Trade relations between Russia, Moldova, Gagauzia and Transnistria - an objective view of the situation.
On July 5-6, 2016, Russian Deputy Prime Minister Dmitry Rogozin is due to arrive in Moldova to agree with the Moldovan authorities on a roadmap to remove restrictions on the export of Moldovan goods to the Russian market. The Government of Moldova expects that as a result of this meeting, the barriers that hinder the intensive development of trade and economic relations between Russia and Moldova will be removed.
The signing of the agreement between Moldova and the EU is the loss of the Russian market.
In the summer of 2014, the Moldovan Parliament ratified an association agreement with the European Union, according to which Moldova will fully open its market to European goods. In response, Russia imposed a ban on the import of certain types of Moldovan products, including fruits, canned vegetables, meat and wine. The official reason for the ban was import violations and non-compliance with the safety requirements of Moldovan food products.
Later, in 2015, Rosselkhoznadzor lifted the food embargo for all enterprises in Transnistria, as well as selectively for enterprises in Moldova and Gagauzia for the supply of apples, pears, quinces, apricots and peaches to Russia. As a result, at the end of 2015, the trade turnover between Russia and Moldova amounted to $1 billion 222.2 million, having decreased by $574.2 million (32%) compared to 2014. This trend continues in 2016: in January – In April, the trade turnover between Russia and Moldova decreased by 23.2% – to $395.3 million.
As for Gagauzia, the volume of exports of goods to Russia in 2015 increased by 25% compared to 2014, which was due precisely to the abolition of restrictions on the export of wine and fruit and vegetable products to the Russian market.
Pridnestrovie is a hostage of circumstances.
The situation with Pridnestrovie is much more complicated: the crisis in Russia, namely the depreciation of the ruble, has led to the fact that export deliveries of goods to the Russian Federation have become unprofitable for Pridnestrovian manufacturers, due to the high cost of their products. In addition, the transit of goods to Transnistria through Ukraine has halved. Trade turnover with Ukraine in the first quarter of 2015 decreased by 54%.
According to the latest data for 2016, in January-March, the trade turnover of Pridnestrovie with Russia decreased by 40%: the export of goods to Russia decreased from $11.2 to $7.8 million, the import of goods from Russia to Pridnestrovie decreased from $217.9 million to $129 .8 million
The drop in trade between Pridnestrovie and Moldova in January-May 2016 amounted to 22%. The import of goods from Moldova decreased by more than $10 million, the export of goods to Moldova decreased by almost $20 million. With other CIS countries, imports and exports decreased by 31%. At the same time, the export of goods from Pridnestrovie to the EU countries increased from $39.7 million to $49.4 million, while imports from the EU to the PMR decreased by $9 million.
Nevertheless, it is the Customs Union (primarily Russia), Ukraine, Moldova and the EU that account for more than 95% of import-export deliveries from Transnistria. Thus, in 2015, 40% of the trade turnover of the PMR accounted for the CU countries (almost $702 million). At the same time, due to the devaluation of the Russian ruble, the Belarusian ruble and the Kazakh tenge, exports from the PMR to the CU over the past two years have decreased by 2 times in dollar terms.
The shares of Moldova and Ukraine in the Transnistrian trade turnover amounted to 22% and 12%, respectively. The volume of deliveries from the PMR to Moldova in 2015 amounted to $300 million, which is almost half of Pridnestrovian exports. The EU countries accounted for 23% of export deliveries – $398 million. Thus, in the current circumstances, when it became unprofitable to sell to Russia, Pridnestrovie does not have a normal development of trade relations with Ukraine, Moldova and the EU remain the most pragmatic partners of the PMR.
Moldova has officially become an associated member of the EU.
On July 1, 2016, the Association Agreement signed between Moldova and the European Union came into force. Taking into account the close trade and economic cooperation (creation of a free trade zone), which this document implies, we can expect another “pitfalls” from Russia related to the export of goods from Moldova.
Against the backdrop of political turmoil, economic crisis, sanctions and food embargo between the EU and Russia, other countries are also drawn into solving problems at the interregional level. Ukraine, Moldova, as well as Gagauzia and Transnistria cannot but feel the problems described above in their economies. Nevertheless, business must develop even in a crisis, and often it is the unfavorable economic conditions that become the impetus for the modernization of production and the search for new logistics schemes.
Our freight forwarding company from Moldova and Pridnestrovie is the leader in organizing the transportation of all types of cargo in South-Eastern Europe and the CIS, – continues to work successfully in all directions even in times of crisis. For cargo owners from Moldova, Transnistria, Gagauzia, Ukraine, Russia, European countries, we offer the best options for cargo delivery to the countries of the European Union and the Customs Union. Using our services, you will be able to make sure that reliable and efficient cargo transportation is possible.even in times of crisis and “sanctions wars”.
