Weekly Roundup: Antony Blinken Visits Moldova
May 30, 2024
US Secretary of State Antony Blinken Visits Chisinau
On Wednesday May 29th Antony Blinken visited Chisinau where he met with President Sandu, Prime Minister Recean and other members of the nation’s leadership. During the meeting Secretary Blinken pledged $85 million dollars in aid that will enable the construction of large scale electric battery storage systems in the country. These batteries will support Moldova’s energy grid by helping with load balancing and will enable the integration of more renewable energy. This money will come from a $300 million dollar aid fund that had previously been announced. He also stated that the US Administration would work with congress to allocate another $50 million dollars to "strengthen Moldova’s ability to resist Russian interference, help hold free and fair elections, and continue its path towards European integration.”
Secretary Blinken visited the a local power station with Prime Minister Recean where the batteries will be installed. Additionally he gave a joint press conference with President Sandu.
During the press conference journalists from ZdG pressed Secretary Blinken with questions about American companies, specifically Facebook (Meta), violating US sanctions and taking money from Ilan Shor for advertising and propagating disinformation. A fact that has previously been widely reported in Moldova (notably by ZdG).
Secretary Blinken responded saying:
"We always urge these social media platforms to enforce their own laws/regulations. Most do. Where we can share information with these platforms, we do, of course. But they are independent entities and make their own decisions, and we expect them to apply their own rules, and if we receive information about the abuse of these platforms, we will take appropriate action ,"
The Secretary stressed that he did not know the specifics about this particular case, but his response also clearly indicated that companies like Facebook are expected to self-police to some degree. That may be what happened, or there may simply have been a coincidence of timing, as Facebook (Meta) announced on the same day that they had shut down 1326 facebook accounts, 80 pages and groups and 1 instagram account. All the accounts were said to be producing disinformation targeting Moldova.
The Shor-led “Pobeda” (Victory) block staged multiple protests against the visit from Blinken attempting to block the main road leading to the airport and protesting outside the US Embassy. Protestors held signs such as “Blinken go home” and “No NATO, no problem.” The protests were relatively small and 100% Russian speaking.
International Affairs and Security News
Here’s a rapid fire roundup of the other top international affairs and security news of the week:
Russia continues to make belligerent statements about Moldova. The Russian S
spokeswoman for the Ministry of Foreign Affairs commented on a statement by the Romanian Prime Minister indicating that he supported Maia Sandu’s reelection calling his words "gross interference." She went on to state that Russia "will firmly repress any attempt at external interference in the affairs of sovereign states, including the Republic of Moldova." Russia’s director of the FSB Alexander Bortnikov also stated that NATO "is literally dragging Moldova into a military confrontation with Russia and Belarus."
Ukraine has detained a Moldovan citizen whom they accuse of working for the FSB. According to the Ukrainian security services the Moldovan man was offered $2000 by the FSB to set electrical substations in the Odesa region on fire. He now faces life in prison under the charges of “sabotage committed under conditions of martial law.”
Speaker of Parliament Igor Grosu addressed the Black Sea Security Forum praising Moldova’s neighbors saying:
“I also said that over the past 2-3 years, during which we have been and are going through crisis after crisis together … Moldova feels safe. We are grateful and proud to have such reliable neighbors. Romania is our sincere and selfless defender on Moldova’s path to European integration. And Ukraine, which defends the values of the free world, the Western world, making great sacrifices, demonstrating courage and determination, keeps our common enemy at a distance,”
Residents of Ialoveni reported seeing, and in some case filming (video in linked article), a burning and crashing small plane. Police searched for wreckage finding nothing. They also checked with all small airports who reported no problems with any flights during the day. The security services reported nothing of the kind reported on radar either. It remains unclear what residents observed.
The licenses for 5 Shor-affiliated TV stations were permanently revoked. These stations have not broadcast for some time as their licenses were first suspended during the state of emergency, and later by the Council for the Promotion of Investment Projects of National Importance. The council has now concluded its investigation and confirmed that in all 5 cases financial transactions linking the stations to the “Plahotniuc-Shor group” were confirmed.
Moldova’s parliament will adopt a parliamentary resolution condemning genocide in Ukraine. Moldova would join Ukraine and the Baltic states in supporting an official recognition of genocide. Canada, Ireland and various other states have partially recognized genocide with bills passed in one house of their legislative assemblies. Explaining the move Vice Speaker Doina German stated:
“We are happy that children in Moldova live in peace and security. At the same time, in neighboring Ukraine, children face the harsh realities of war every day. With this declaration, Moldova declares that the denial of the existence of the Ukrainian nation, along with all of Russia’s inhumane policies towards Ukrainian children, falls under the definition of genocide,”
Political News
Chisinau Mayor Ion Ceban stated in a press conference that he will not run for president in the October elections. He stated:
“I am not interested in running for the presidency of Moldova this fall, because the people expressed a vote of confidence in me in Chisinau, and I cannot disappoint the people of Chisinau,”
The Mayor, who was widely expected to be a presidential contender, went on to say that his MAN party will contest parliamentary elections expected to be held in summer 2025. He also used the press conference to level various accusations at PAS including “destroying the democracy of this country.”
This announcement comes amidst continued news of opposition groups attempting to find a joint candidate to run against President Sandu in the fall. At this time, these negotiations appear to be faltering with Ion Chicu’s PCRM party announcing they will run their own candidate and former Prime Minister Filat calling the nomination of a joint candidate “unlikely.”
The Pact for Europe
On May 26th 15 political parties in Moldova came together to sign a “Pact for Europe.” The initiative, which was led by the pro-Europe "Together" block is modeled on the 1995 “Snagov Pact” which committed all major political parties in Romania to seeking a future in the European Union.
DA party leader Dinu Plingau stated that the pact was open to "all willing parties," a fact that resulted in a somewhat confusing group of signatories. Among others, PAS, MAN, PCDM, PLDM and later AUR all signed the pact. Without going through all the acronyms of minor parties, what is important to note is that there are various contradictions in this group. Andrei Curararu from Watchdog.md noted that MAN, PDCM and PLDM all participated in Natalia Morari’s meeting to find a common candidate with the pro-Russian Socialist party for the presidential elections. Also, that multiple parties among the signatories have indicated that they are going to campaign against the referendum on joining the EU. Experts remain divided on what, if anything, this pact will mean.
Other Political Updates
Here’s a rapid fire roundup of the other important political stories of the week:
President Sandu awarded outgoing US Ambassador Logsdon the “Order of Honor” “as a sign of high appreciation for his contribution to the deepening of Moldovan-American relations and the introduction of democratic and economic reforms in our country, as well as for supporting Moldova’s efforts to strengthen national security.” Ambassador Logsdon is ending his term of service in Moldova and is set to be replaced by President Biden’s nominee of Kelly Adams-Smith, currently Deputy Chief of Mission at the US Diplomatic Mission to the EU. Kelly Adams-Smith’s arrival time is uncertain as she has not yet been confirmed by the Senate.
PAS Deputies have proposed amendments to the law defining “treason.” The proposed changes update Article 337 to make 3 key changes. Firstly, while the current law can only be applied in times of war the new amendments remove this restriction. Secondly, acts of treason are currently defined as acts that create "damage to the homeland." This clause will be removed so that the government would not be forced to prove concrete damages in a treason case. Thirdly, whereas treason is currently defined as working on behalf of a “foreign state” or “foreign organization” the amendments will also add “anti-constitutional formation” to this list. PAS representatives explained that these changes are needed to combat Russian created political groups such as Shor’s Pobeda (Victory) party. Under the new law, spreading disinformation or acting as a cash courier could be considered treason if it is done in support of a foreign government or “anti-constitutional formation.”
Opposition parties react to the proposed treason legislation. The Socialist party decried the proposed amendments calling them "an attack on pluralism of opinions and a political instrument." Additionally the pro-EU CUB party, which is a member of the new Together Block, also stated that they oppose the amendments and threatened protests if PAS does not hold broad pubic consultations on the law.
Ilan Shor announced that a party conference for Pobeda (Victory) will be held in Moscow on June 9th. In his announcement he compared himself to Vladimir Lenin during the late Soviet leader’s time in exile before the revolution stating:
“I confirm that on June 9 a congress of our Pobeda bloc will be held in Moscow! … Let's remember the story: Vladimir Lenin held his congresses in Switzerland, and this did not stop him from winning. So what can stop us from meeting on neutral and friendly territory for us - in Russia? Nothing,”
The fugitive oligarch’s comparison of himself to a man who organized a violent revolution from the safety of a foreign country (and with the support of Germany) seems to indicate that he is not too worried about accusations of “treason.”
Crime and Corruption
Here is a rapid fire roundup of the top stories in crime, corruption and justice of the week:
The man who threw 2 molotov cocktails into the Russian embassy was found guilty. The court convicted him of obstructing election activities for attempting to stop voters in Vladimir Putin’s re-election. He was sentenced to 150 hours of community service which was reflected as time served given that he has spent 50 days in pre-trial detention.
A judge sentenced to 10 years for corruption escaped the country due to a judicial “error.” In a case that rather clearly highlights the failures of Moldova’s justice system, Judge Valeriu Ghedreuțan benefited from a number of “errors” and delays in the consideration of his case. In 2010 Judge Ghedreuțan provided a “consultation” to a woman seeking to win control of property in a divorce case. Following this consultation, which cost 200 euros, the judge promised the woman to rig the case assignment process to assure that he would preside over the case. He did. Then, he asked for and received a bribe of 6200 euros to settle the case in favor of the woman. This money was wired directly to his account from her account in Italy. The case against the judge began in 2016 and, in spite of direct wire transfer evidence from a plaintiff to the judge, dragged on until April 30th 2024. In the conviction notice a “typo” by the judge overseeing the case stated that Ghedreuțan would be remanded to custody only after all his appeals had been exhausted - according to the law he should have immediately been taken into custody to begin serving his sentence. The court noticed the “error” but could not correct it because the presiding judge had gone on vacation. Judge Ghedreuțan then waited nearly a full month before slipping over the border into Ukraine on May 27th. Ghedreuțan’s lawyer is now arguing that even if the order was a typo it is now binding and cannot be reversed. He also noted that he is no longer in contact with his client.
Smuggler of 80,000 euros acquitted in court. A court acquitted a man who failed to declare 80,000 euros stuffed in a toolkit under his car’s seat in November 2022. The man said it was a “mistake” and prosecutors found that he neither declared it when attempting to enter Moldova, nor when leaving Romania. He also could not prove in any way where this money came from. The judge apparently believed it was an honest mistake and acquitted him in a ruling that prosecutors called “illegal” and vowed to appeal.
Prime Minister Recean has again called out corrupt judges and prosecutors. In this case the Prime Minister referred to a 2012 murder case involving former PD MP Constantin Tutu. The former Plahotniuc party MP was charged along with 12 other people regarding a “shootout” at a restaurant which resulting in one person being murdered. All the accused have now been released due to either amnesties or the statute of limitations expiring during the trial.
Anti-Corruption Prosecutors have announced that they have closed their investigation into the airport concessions tender. Prosecutors announced that they found no irregularities or abuse of power in the attempt to find a suitable company to run the airport’s duty free shops and restaurants. A new tender, the 3rd attempt, has been announced and will be held from June 1st to June 24th with the winner being announced on June 27th.
Economic News
Here’s a rapid fire roundup of the top economic stories of the week:
The government announced a re-vamping of the Prima Casa program dubbed “Prima Casa Plus.” The program, which assists people in purchasing a first home by subsidizing mortgage rates, will now be expanded in multiple ways. First, the borrowing cap will be raised from 1 million to 2.5 million lei. Secondly, the loan guarantee amount will be increased from 50% of the loan to 65% in Chisinau and 70% outside of Chisinau. Additionally, people who own a home already will be eligible if that home is smaller than 50 sq meters. Finally, the loan term has been increased from 25 to 30 years. Prima Casa borrowers benefit from a 7.63% annual interest rate - which is extremely low on the Moldovan market.
Japanese automotive company Fujikura announced that it is leaving Moldova. The company previously announced in March that they would be closing their plant in Comrat but would be continuing operations at their plant in Chisinau. Now the auto parts supplier, which focuses on wiring harnesses for German automakers, is leaving Moldova entirely. According to the National Investment Agency the reason is because of a lack of contracts due to a slow down of German auto manufacturing due to the war in Ukraine. Fujikura’s own announcements in March indicate that this may not be a lack of contracts for Fujikura, but a lack of contracts for factories based in Moldova. The company stated that their major client, Volkswagen, had made a decision to locate all component manufacturing inside of NATO countries for security reasons. The plant closure will represent a loss of around 200 jobs. At the start of Russia’s invasion in 2022 Fujikura employed over 1200 people in Moldova but has been steadily decreasing its workforce since then.
The Ministry of Economy has announced an agreement with the Multilateral Investment Guarantee Agency (MIGA) to guarantee investments in Moldova. MIGA, which is part of the World Bank Group, will provide companies investing in Moldova guarantees up to 95% of their investment amount. Minister Alaiba noted that while Moldova does not see a direct security threat to Moldova right now, agreements like this are required to increase investor confidence in the country.
Moldova has been ranked in the top 10 countries globally for cheap high-speed internet. In Moldova the average cost of high speed internet is $9.19 / month and most consumers, including in small towns, have access to high speed internet from at least 3 providers. Competition is even fiercer in urban areas and Moldova continues to provide some of the lowest costs, and highest speeds, in Europe.
Love the cheap internet!