The suffocating blockade of Transnistria. Chisinau is euphoric, Tiraspol is not giving up
Transnistria lives under increased pressure from Moldova, which has taken control of the foreign economic operations of the unrecognized republic. Chisinau is blocking Transnistrian cargo, it is not possible to import diagnostic medical equipment into the republic, and the issue of exporting products from engineering enterprises and alcoholic beverages has not been resolved.
From January 1 of this year, Moldova introduced customs duties on the import and export of Pridnestrovian enterprises. According to calculations by the State Customs Committee of the PMR, the annual damage from Moldova’s new repressive measure could amount to about $16 million.
Transnistria is trying to support business entities and fulfill social obligations to citizens.
I have something to answer
The head of the main foreign policy department of the PMR Ministry of Foreign Affairs, Dmitry Palamarchuk, commenting on the new sanctions, said on Pridnestrovian Radio 1 that economic, political-diplomatic, information pressure against Transnistria has always taken place, but now the conflict between Chisinau and Tiraspol has escalated against the backdrop of political turbulence and transformations, which are happening all over the world.
“The Moldovan side is experiencing euphoria in connection with the start of negotiations with the EU, taking advantage of the fact that it has destroyed the “5+2” negotiation format, the fact that the Pridnestrovian-Ukrainian border is closed to goods and the movement of people, and this strengthens the position of Chisinau. There is serious Western support for Moldova, including military, and this gives Moldovan politicians certain cards in their hands. But I must say that we also have cards, and we will use them to the maximum,” the diplomat explained.
He noted that Tiraspol has mechanisms to influence the situation - both political and diplomatic, and from the point of view of demonstrating civil solidarity (one example is the recent protest rally in Tiraspol), there are no problems with articulating its position.
“The question is whether any triggers will occur that can influence the position of the Moldovan side and correct its openly aggressive course towards Transnistria today,” says Dmitry Palamarchuk.
A representative of the PMR Foreign Ministry said that it is not so easy to drag Pridnestrovie into the Moldovan political field.
“Yes, the Moldovan side is provoking the impoverishment of the population of Transnistria, various problems, including the shutdown of a number of enterprises, but this does not mean that we will remove border posts or take down Russian flags. History is cyclical, we will see how the situation will develop in the future,” he said.
According to the diplomat, Russia is reacting to the deterioration of the situation in Transnistria, including in the security sphere, and to the economic hybrid war waged by Moldova.
“These processes are closely watched in Moscow, since there are Russian peacekeepers, Russian citizens, and compatriots here, and Russia is the guarantor and mediator in the settlement process. There has already been a certain reaction in terms of information, and there will be more,” Palamarchuk said.
Money for essentials
Meanwhile, the introduction of customs duties by Moldova led to a reduction in the budgets of Transnistrian cities and regions. In particular, Tiraspol's income will decrease. The capital is the main donor of the republican budget; it retains only 12% of the taxes collected.
At the hearings on the draft city budget 2024, it was noted that plans would have to be cut, in particular for infrastructure development. For manufacturing enterprises (a significant part of them are concentrated in Tiraspol), the authorities have developed support measures that will help reduce the financial burden in the face of external economic pressure.
“We are working with enterprises regarding their tax exemption or deferment of tax payments. A reserve has been formed in the budget, which will help keep enterprises afloat and provide workers with wages,” said the head of the city’s state administration, Oleg Dovgopol, at the budget hearing.
By decision of the PMR government, loan repayment and debt repayment terms have been extended for business entities. Textile production will pay less for water used in the process.
The authorities promise to fulfill social obligations to the population in full, and do not abandon plans to increase salaries.
“We are directing the money to the essentials; we plan to allocate part of the money to increase wages for public sector employees, which is planned in the coming months,” said the head of Tiraspol.
Salaries and pensions will still increase
An increase in salaries of public sector employees is still being planned, but pensions, maternity and childhood benefits and other social benefits have already been increased by 1% from February 10. The Supreme Council approved the presidential proposals in this regard the day before. The state had to use the budget reserves available at the end of 2023 and reconsider the financing of other items.
“The amount of money that should be additionally allocated to the Unified State Social Insurance Fund is about 184 million rubles. This is quite a large amount for our budget. And we understand perfectly well that today we are in difficult conditions, when our neighbors, the Republic of Moldova, are taking actions that could lead to the budget not receiving a certain part of the revenue,” said the chairman of the parliamentary committee on economic policy, budget and finance Victor Guzun.
The head of the Supreme Council of the PMR, Alexander Korshunov, commenting on the adopted bills, noted that the decision to increase pensions and benefits was not easy.
“It was necessary to cut costs somewhere in a number of areas, including many trust funds. But we believe that today, in the current conditions, it is necessary to increase social obligations,” the speaker said.
As for increasing wages, two sectors are being considered: education and healthcare. By reducing funding for a number of state programs in March, it is planned to increase the salaries of teachers, educators, sports school coaches and teachers working in the additional education system. An increase in salaries for doctors is planned from April 1. In 17 medical institutions subordinate to the Ministry of Health, a pilot salary project will be launched (optimization, reduction of empty rates, bed capacity), which was tested in 2023 at the Republican Clinical Hospital. The experiment was considered successful: the salaries of RCH workers increased by half on average.
In-house production of medicines
Due to import restrictions, there is already a shortage of some medicines in Transnistria. The republic decided to develop pharmaceutical production - to produce everything possible on its own.
A pharmaceutical enterprise has been operating in Grigoriopol since 2006, which produces antiseptics, solutions, tinctures, oils, heart drops, and dressings. The range is expanding. In addition, they will now revive industrial pharmacies, which operated everywhere during Soviet times, but were preserved only in some places, mainly at city and regional hospitals.
Pharmacy drug production according to individual recipes, production of children's dosage forms will at least partially reduce the dependence of pharmacies on external supplies. The plan for the development of industrial pharmacies, legal and organizational nuances are being worked out in the Ministry of Health of the Republic on behalf of President Vadim Krasnoselsky.
Advice for Pridnestrovians crossing the border of Moldova
Recently, stories have been heard about how Moldovan border guards do not allow home residents of Transnistria traveling with Russian passports. Such cases took place at the Chisinau airport.
Diplomat Dmitry Palamarchuk advises travelers to have with them a certificate of consular registration in Moldova, issued by the consular post of the Russian Federation, and any other documents confirming the fact of permanent residence in the territory of Transnistria.
“If a citizen finds himself in a difficult situation when crossing the border of Moldova, he needs to notify the PMR Ministry of Foreign Affairs and contact the employer. It is also important to act preventively: before leaving, consult the competent authorities of Transnistria - the same Ministry of Foreign Affairs or the Ministry of State Security. It is quite difficult to guarantee security on the territory of an unfriendly state; any provocations can occur,” says a representative of the diplomatic department.
He explains that the issue here “is not about Russian passports, but about the political motives that guide the Moldovan side when filtering out Pridnestrovians at the Chisinau airport.”
“[Transnistria] officials with Moldovan passports are subjected to exactly the same procedure, only recruiting approaches are still applied to them, they are threatened with the law on separatism, they are trying to persuade them to cooperate. Therefore, you still need to think about which passport is better to fly with: with a Russian one, risking being deported, or with a Moldovan one, risking ending up in prison on the territory of the Republic of Moldova,” the diplomat noted.
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