In October, Moldovan voters must vote on joining the EU and making it a constitutional objective. Although the majority of the population would be in favor of this scenario according to polls, the fate of the pro-Russian separatist region of Transnistria has not been resolved.
“Yes” or “no” to Europe? On October 20, Moldovans will vote in a referendum on whether EU membership should be included in the Constitution as a national objective.
Euronews journalist Hans von der Brelie visited this country located on the borders of Romania and Ukraine. He spoke with pro-Europeans in the west and pro-Russian separatists in the east, in the Moldovan separatist region of Transnistria.
What impact could EU membership have on the economy and daily life of Moldovans?
This report began in Ungheni, near the Romanian border, on the site of an industrial carpet manufacturer. The immense buildings, which date from the Soviet era, saw some 2,000 workers pass through every day, coming to make carpets for the Eastern bloc. Since the fall of the USSR, the country has undergone sometimes painful changes, to which have been added political unrest, the financial crisis, the pandemic, soaring energy prices and the invasion of Ukraine by Russia.
Today, the carpet factory has only 150 employees.
But Ghenadie Podgornii, technical director of Covoare Ungheni, gives an optimistic point of view: “Joining the European internal market would mean getting rid of all the bureaucracy linked to exports and imports,” he believes.
Almost 70% of the carpets are sold to customers in the EU. Aliona Tiuticov, financial director, believes that the potential is even greater: “Becoming a member of the EU would be an added value,” she says, “it’s good for our image as a country and as a company.”
Looking West
Management is looking to hire 30 more people, but many Moldovans work in Western Europe. EU membership could bring economic stability to Moldova and thus slow down the exodus, believes Ms Podgornii.
“EU membership would be an advantage for our company, as it would help us keep workers in Moldova. To earn money, they will no longer be forced to work abroad. he explains.
Podgornii himself had this experience: “I lived abroad, I worked for 12 years in Italy. I came back to Moldova because I wanted to achieve something in my own country. But above all I came back because here, I feel at home.”
What do employees think of the European Union?
“It’s a good thing to join the European Union,” believes Maria, an industrial carpet weaver, “because wages will then be higher.”
Not all factory workers share this pro-European enthusiasm.
“Prices in stores could increase even more,” says another weaver. But according to polls, most Moldovans say they are in favor of joining the EU. Already today, the country has access to aid programs financed by the EU. This is how the carpet company was able to install photovoltaic panels on its roof, which allowed it to reduce its electricity bill.
A first step towards EU membership
Moldova exports many agricultural products such as plums, apples, nuts and wine. In a village in the center of the country, near the capital Chisinau, Igor Golbian launched a start-up producing dried organic fruits and sunflower oil. Unable to find enough employees locally, he hired Indian contract workers.
This boss plans to export to Romania, Belgium, Germany and the Netherlands, but this ambition can only be realized at the cost of a long preparatory period.
“As an exporter, you need to be well informed about technical requirements regarding packaging rules, storage conditions, logistics, labeling and sampling. Right now, Moldova is at a turning point. This is our last chance to jump on the bandwagon towards the European Union! »
During the next referendum in October, Moldovans will have to vote on joining the EU. But all 27 EU member states will also have to agree, which could take some time. And the situation in Transnistria, in eastern Moldova, remains a thorn in Chisinau’s side, and testifies to a divided country.
In the east, pro-Russian separatists are at the forefront.
Nearly 2,000 Russian soldiers are still present in Transnistria. 34 years ago, this Russian-speaking region declared its independence. But this proto-state is not recognized by the international community, not even by Moscow, at least for the moment.
We spoke to residents of Tiraspol, the separatist capital, to find out what they think about Moldova’s possible EU membership and what it would mean for Transnistria. Daria, a young woman, says she is in favor of the idea:
“This is a good initiative and would have benefits for both sides, Transnistria and Moldova.” “We are waiting for Russia”, proclaims Tatiana for her part,
“because we will be recognized as part of this country. Or at least Russia will recognize us as an independent state.”
An economic standoff
Transnistria’s heavy industry depends on almost free Russian gas. At the end of December this could end. This could be fatal for many factories.
Since the beginning of the year, Moldova has been collecting import and export duties, VAT and royalties from Transnistrian businesses, and has stepped up the fight against money laundering. From an EU perspective, these are ordinary procedures that follow common rules. But it is a blow to local oligarchs, who pull the political and economic strings of the breakaway region.
Furthermore, there are suspicions that electronic parts manufactured in Transnistria are used in Russian weapons systems, as part of “dual use”.
Large companies such as Elektromash, Moldavisolit and Bender Potential are among the suspects.
The head of the Transnistrian Industrial Federation, Yuriy Mikhaylovich Cheban, denies the allegations and criticizes the strict export controls introduced by the Republic of Moldova, which he says are based on “political motives”.
“More than 40,000 people took to the streets to protest,” he assures. “Because of all these measures, we have already lost 70 to 80 million euros, this money is missing from our budget.”
Self-proclaimed “president” of Transnistria calls Moldovan taxes” assault “.
“These goods have become 15 to 20% more expensive because of these taxes,” indicates the one who calls himself Minister of Economy of Transnistria, Sergei Obolnik, “and are therefore now more expensive than Moldovan products. In addition, all the tools to continue interacting with the West are disappearing, due to this double taxation and the closure of some of our bank accounts in Moldova. This leads to a situation close to economic collapse.
With or without the EU
Back in Chisinau, the capital of the Republic of Moldova, we meet with Moldova’s Minister of Economy and Deputy Prime Minister of the country, Dumitru Alaiba.
Preparations for the integration of the Moldovan economy into the European internal market are well underway. But what about Transnistria?
“This (Transnistrian) part of our economy is quite well integrated (into the European internal market), with around 80% of exports going to the European Union,” he notes. On the subject of companies placed under “embargo”, his answer is unequivocal.
“When a Moldovan company produces dual-use goods for export to Russia, we do not allow it,” Dumitru Alaiba slice. “Period.”
