About the political and socio-economic situation developing in Pridnestrovie

The Minister of Foreign Affairs of the Pridnestrovian Moldavian Republic Vitaly Ignatiev and the First Deputy Chairman of the Government – Minister of Economic Development of the Pridnestrovian Moldavian Republic Sergey Obolonik spoke before the delegates of the VII Congress of Deputies of all levels of the PMR.

The foreign affairs chief spoke about the political situation around Pridnestrovie. Vitaly Ignatiev emphasized that our republic faces special challenges formed by a combination of powerful external factors today. First of all, this is general foreign policy instability and its consequences.

The Minister of Foreign Affairs noted that Pridnestrovie is hostage to a geopolitical knot of contradictions to a certain extent. Unity is more important than ever for the Pridnestrovian people in conditions when international norms and principles are collapsing, and universal international organizations are not coping with the tasks assigned to them.

The deliberate crisis of the international settlement process, including the “5+2” format, is another factor. The Moldovan side has actually abandoned the negotiation mechanisms for resolving existing problems and does not comply with previously reached agreements to date.

The Minister of Foreign Affairs touched upon the unprecedented external socio-economic pressure from Moldova, associated with a massive violation of the rights and freedoms of all Pridnestrovians. The discussion was about amendments to the Criminal Code of the Republic of Moldova, adopted by the Moldovan parliament last year, limiting the import of medicines and medical equipment for the needs of Pridnestrovians and the introduction of customs duties for Pridnestrovian economic agents from January 1, 2024.

First Deputy Chairman of the Government – Minister of Economic Development of the PMR Sergei Obolonik told people's deputies about the difficult socio-economic situation in Pridnestrovie. The report noted that the amount of losses of the state budget was estimated at almost 13 million rubles in January.

According to operational information, the volume of industrial production in January 2024 compared to the level of the same period in 2023 at current prices for large and medium-sized enterprises decreased by 14.3%. The largest decrease was recorded in such sub-sectors as mechanical engineering and metalworking – 65%, chemical industry – 50.3%, building materials industry – 27.4%.

Additional costs of Pridnestrovian enterprises for 2024 are estimated at $100 million. These are the consequences of the banking blockade, VAT paid to the budget of Moldova when importing goods, as well as losses from the introduction of new customs duties. Sergei Obolonik emphasized that these costs amount to about 10% of the republic’s GDP. Moreover, the rate of decline in GDP of most countries was no more than 6% even in the most crisis periods.

The Minister of Economic Development of the Pridnestrovian Moldavian Republic added that these problematic issues are constantly raised at meetings of political representatives of the PMR and the Republic of Moldova, at meetings of expert working groups and at other venues. Sergei Obolonik emphasized the importance of ensuring that all parties involved and influencing the life of Pridnestrovie know about the socio-economic situation in the republic.