Resumption of 5 + 2 negotiations

According to a press release issued today by the Bureau for Reintegration,  the negotiations on the Transnistrian conflict settlement in the 5 + 2 format will be resumed after a two-years break. They are to be held in Berlin on 2 and 3 June. The negotiations on the Transnistrian conflict in the 5 + 2 format stopped in June 2014, the period during which Moldova signed the Association Agreement with the European Union.

media_146478391451188600.jpgAccording to agora.md, the negotiations will bring together representatives of the parties, mediators and observers in the negotiations – Moldova, Transdniestria, the OSCE, the Russian Federation, Ukraine, the USA and the EU. They will be chaired by the Ambassador Cord Meier-Klodt, which is the Special Representative of the OSCE from German Chairmanship-in-Office for the Transdniestrian settlement process.

Meanwhile, the separatist Tiraspol administration announced that an initiative from Moscow on removing the obstacles from the path of a functional dialogue, including on boosting the settlement of criminal cases opened on certain representatives of the Transnistrian administration would be discussed at the meeting.

The Executive Director of the Foreign Policy Association, Victor Chirila told Radio Chisinau that Moldova should not make concessions, only to continue these discussions, as this position would be detrimental to the country. The analyst also mentioned the need to examine political issues within the negotiations’ framework, avoided by Moscow and Tiraspol, and that not only socio-economic and humanitarian problems should be discussed.

Tiraspol's position in these negotiations seems to be clear. At yesterday's meeting of the Parliament of the self-claimed republic the deputees unanimously supported a resolution on the creation of the logo for the 10th anniversary of the referendum on Transnistria independence and subsequent accession to Russia, festivity to be marked in September this year. A special commission was created to organize the respective event.

            The increasing currency crisis

The situation on the Transnistria currency market was discussed during the Supreme Soviet session yesterday, attended by the government leadership and Bank of Republic of Transnistria president, Eduard Kosovskii. The governor of the central bank mentioned that aspects announcing an imminent currency crisis appeared at the end of the last year. He noted that a major factor was the new contract signed between Energocapital and Energocom for the supply of electricity to Moldova, which would be unprofitable, the tariff being reduced by 28%. Among other factors, Kosovskii also noted a significant decrease of the income in foreign currency of main exporters, as well as of individuals (the so-called "guest workers"), and the negative dynamics within deposits.

It is worth to be noted that the Transnistrian press also found the electricity supply company Energocapital guilty of the currency crisis. In addition, the mass media writes that the currency crisis in Transnistria was worsened by the fuel and food crisis, as well. The article of Crime Moldova is here. 

According to Ziarului National, the poor economic situation in Transnistria has influenced a new phenomenon. Lacking jobs, more and more men in Transnistria enroll in the Russian army from the region.

The number of its troops had increased considerably in recent months, writes the dniester.ru portal.

ZN also notes that to get a military job for men in Transnistria is considered to be lucky, because this ensures a decent salary, and other benefits such as clothing and food.

In spring this year, Moldova was on the brink of a diplomatic scandal with the Russian Federation after it was discovered that Russia undertook a campaign on the enrollment in the Russian Army in Bender.

The Russian Ambassador, Farit Muhametsin was then summoned to the Foreign and European Integration Ministry to give explanations on the case.

The resignation of the Transnistrian Republican Bank president (doc/ru)

The President of the Transnistrian Republican Bank, Eduard Kosovskii is accused by the Transnistrian deputees of deepening the currency crisis

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At the yesterday’s meeting of the Transnistrian legislature, after hearing the report presented by Kosovskii, the deputees have addressed several questions. Kosovskii was asked about the causes and initiators of the massive devaluation, proposed in March this year, and about the false information that lies at the basis of these proposals that caused commotion on the forex market: "Who is responsible for this fatal decision and its consequences the Transnistrians feel even today? " – asked the deputy Alexander Martynov. Martynov is convinced that the devaluation is beneficial for somebody. And that somebody is not the people of Transnistria.

There was a very curious questions among those that deputies have addressed. Although Energocom was sued by Energocapital for debts on paying the electricity supply, by the question of one of the Transnistrian deputies, Piotr Pasat, it can be understood that a significant amount was repaid. "The Moldovan company has repaid a significant debt in foreign currency to Energocapital. "Where's the money? "– inquired Piotr Pasat. Another deputy, Mr. Oleg Leontiev, also asked about the amounts and currency Energocapital paid dividends in during recent years.

"Is the Central Bank aware that in case of a massive devaluation the living standard will be drastically reduced?"– asked Gregory Dyachenko. "Did anyone think about people when foreign exchange reserves have been emptied on the background of praises about maintaining the exchange rate? At the same time, there were plans for a massive devaluation"– noted Oleg Petrik.

Andrei Safonov asked a question that raised the interest of the majority of MPs and their electorate: "What is the official position of the president on this issue?". The official representative of the President was however dodged to answer. The MP suggested the President to come up with a written response.

According to the vice-speaker Alexander Scherba, the proposed devaluation will worsen the situation on the currency market. "2/3 of all food products are imported. Changing the exchange rate will affect their price. It will increase" - said Scherba. "Did the Central Bank analyze how far will the prices raise? We are not talking about inflation of 4.6%. It seems that this forecast is a way to avoid liability" - said the chairman of the Supreme Soviet Vadim Krasnoselsky.

The deputy Oleg Vasilaty asked about the status of the currency in recent years. It seems that in 2012 Transnistria got 30 million USD from the Central Bank of Russia. Today, the foreign currency reserve is empty.        

Vladislav Tydfil is sure that the situation on the currency market was caused by excessive demand for foreign currency, which appeared in the context of a presidential decree on limiting foreign exchange auction, and a statement of the BRT on the possible increase of the rate to the limits of 14- 16 rubles per dollar. The MP believes that the measures to stabilize the situation on the currency market should be taken, but in the framework approved by the Supreme Soviet: 11 rubles - 11.30 rubles per 1 dollar.

The deputies believe that a person is guilty of the crisis. "We see the controlled chaos theory" – said Igor Buga. Without questioning the merits and the experience of Eduard Kosovskii, Buga said that currently the main financial regulator (BRT) has not fulfilled its functions of a state bank, which creates prerequisites for the change of its leadership.

Following the respective discussions, the Supreme Soviet approved a resolution "On the situation on the currency market and measures taken by the central bank to stabilize it" stating that the BRT President Eduard Kosovskii does not fulfill his duties properly, and proposing, in this respect, to submitt a request to the President so that, within three days, the head of the central bank would be dismissed.

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In addition, the participants of the meeting requested the Transnistrian Government to present a forecast regarding the way the rate proposed by the BRT will affect the inflation.

 

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