After 1990, the Republic of Moldova entered a strong economic decline which ended as late as 2000. Agriculture has the highest share in the economy. The main products are fruits, vegetables, wine and tobacco. The Republic of Moldova imports oil, coal and natural gas, mainly from Russia.
The construction of Giurgiuleşti oil terminal, which is expected to increase Moldova’s access to the international oil market and to reduce its critical energy dependency of Russia, was finalized at the end of 2006. As part of the ambitious economic liberalisation from the beginning of the ‘90s, Moldova has introduced a convertible currency, has liberalised prices, has stopped granting preferential credits for state-owned companies and firms, has begun privatisation processes, has eliminated controls for exports and has frozen interest. In April 2007, in order to eliminate illegal activities, the complete fiscal amnesty was approved for the economic activities developed before January 2007, the legalisation of illegal capital in exchange of 5% of the amount and the annulment of interest income. For the Republic of Moldova, next to other 5 countries in the former “soviet bloc”, the Eastern Partnership set in 2009 means the opportunity to sign free trade agreements, to benefit from financial aids, to receive support in ensuring the energy supply. The six countries will receive increased financial assistance from the EU to continue political and economic reforms.
The Republic of Moldova is member of TRACECA Programme which increases its chances of becoming an important hub for the international freight transport in the Eurasian platform.
Financial support for railway projects
The interest of the Republic of Moldova in improving relationships with the European Union is not only manifested through the implementation of fiscal policies to attract as many foreign investors as possible, but also through the development of railway freight and passenger transport.
The Railway Company in the Republic of Moldova (CFM) focuses on reviving the railway transport system. To this end, the company shows interest to increasing the speed of trains, upgrade the fleet of wagons for the transport of freight and renew the fleet of coaches for the transport of passengers on international routes.
“The priorities of Moldovan Railways include, first of all, reducing infrastructure maintenance costs, strengthening the position of railway passenger transport on international routes, the only segment currently profitable and, also, the construction of new wagons for the railways connecting the Russian Federation (Moscow, Saint Petersburg, Rostov), Ukraine (Odessa and Kiev) and the European side, to Romania, on the route Bulgaria – Istanbul, these being routes that have been successful before, as well as on the route to Warsaw and to Lvov”, declared Vitalie Struna, the General Manager of Moldovan Railways, in an interview for Railway Pro this April.
Other very important projects refer to the modernisation of the passenger rolling stock for transport to the EU countries, a project estimated at EUR 25 Million, as well as the modernisation of the rolling stock fleet for the transport of passengers to the CIS countries, with costs of EUR 25 Million. The modernisation of the locomotive fleet is another project which would require EUR 25 Million. Financing might come from European bank and talks, CFM representatives say, are underway.
Share on:
