Weekly Roundup

January 23 - 28

Welcome back to Moldova Matters! In this weekly roundup we will check in with the top stories of the week in Politics and Economics. Subscribe to Moldova Matters to get our Weekly Roundup and other content sent right to your email! And consider becoming a paid subscriber to support our work at Moldova matters. For just $5 / month, the price of a nice coffee, you can support this work and help us expand into even better content!

This week, we once again have to lead with updates on the unfolding crisis in Ukraine. That said, we’re going to try and move through the topic quickly in order to do a rapid fire roundup of all the other news that has been happening in the past 2 weeks and has largely been overshadowed by the regional tensions. If you want more background on the crisis in Ukraine please see the last Weekly Roundup or our Deep Dive: Will Russia Invade Ukraine? from last month. 

Regional Tensions - Crisis in Ukraine

This week, speculation about the direction events may take in Ukraine has been a constant source of punditry and analysis by the western press. In a much talked about study from the Ukrainian Center of Defense Strategies the writers consider the utilization of Russian troops in Transnistria likely in the case of conflict and for the second time in 2 weeks Russian troops in Transnistria are conducting combat readiness exercises. At the same time, NATO’s Deputy Secretary General made the following statement: - “At the moment, we have no reason to believe that there is a military threat to Moldova. And this is confirmed, among other things, during the dialogue that we have with the Moldovan authorities.”

Russian troops in Transnistria conducting readiness exercises - photo source Agora.md

In the US and NATO official written response to Russian demands to re-write the security architecture of Europe, US Secretary of State Blinkin stressed that “This is about respecting nations and their right to choose their own path,” -. “Russia should also withdraw its forces from Ukraine, Georgia, and Moldova where they are deployed without these countries’ consent.” Russia promptly rejected withdrawing troops from Moldova calling on all parties to "abandon such statements far from historical reality."

So with all this talk at least tangentially implicating Moldova… do we have a response from the authorities?

Yes, sorta. This week we have had a few new statements from the Moldovan authorities on the unfolding situation. Again, these statements have largely been in the context of questions asked by journalists and no official press conference or written statement has yet been released. 

President Sandu called on citizens to “be alert, but do not panic” noting that the government is working up scenarios for all possible developments. In a TV interview this week she said the following: 

“If we look at the statements made at the level of other countries, the risks are very high. We hope that these risks do not materialize and that a diplomatic solution is found. We cannot rule out the worst case scenario - military action. We are obliged and consider all risks with a lower or higher probability,” ….

“There is a chance for a diplomatic solution. What does it mean to be alert? To know that such risks exist, to receive information from reliable sources, because many politicians are trying to speculate on this topic and misinform that Moldova wants war. We are a peaceful country and do not pose a danger to other countries. We need peace to focus on domestic issues ,” 

Meanwhile, Prime Minister Gavrilita said the following in press conference:

“We want our voice to be heard in these international discussions concerning our region. We firmly declare that every country, independent and sovereign, must determine its own future and make choices in the field of security. We are a neutral country and we want peace and stability in the region. In all discussions, we are in favor of de-escalation and we hope for the prudence of the parties involved,”

The Prime Minister went on to say that the government will amend the state budget to increase military spending in the coming days. She noted that spending has decreased in recent years and that her government has been focused on domestic reforms, social spending and support for citizens in the cold season. The Prime Minister noted that a concrete action plan for new spending will be presented at the next government meeting and focus on improving organization and living conditions for the army as well as preparing for possible risks. 

A Rare Interview with the Director of SIS

One very unexpected statement on the potential conflict came from Alexandr Esaulenko, the director of Moldova’s Security and Information Service SIS (Moldova’s foriegn and domestic intelligence agency). He rarely speaks to the Moldovan press but gave an interview with Ukrainian outlet GlavCom.ua. In the interview, he noted that Russia has both “peacekeepers” and regular army troops in Transnistria. He said that the regular army forces are fortifying their positions especially around the Cobasna military depot. He stated that Moldova is taking the security situation seriously and is making preparations for a flow of refugees. The Director stressed the need to remain calm and to work closely with Ukraine on the evaluation of the situation. When asked about the potential for Russian special services to be operating in Moldova he said that yes, there are suspicious elements but that they are under surveillance and investigation by SIS. Asked about scenarios involving the capture of Odessa he said that the “Eastern Neighbor” [Russia] cannot be underestimated and that SIS is preparing for all scenarios including this one. 

Local Moldovan outlet Newsmaker attempted to confirm the legitimacy of this interview with SIS but got no response. They note that the SIS Director almost never gives interviews in Moldova. Director of Watchdog.md Valeriu Pasha commented to Newsmaker that SIS should probably hold a press conference rather than giving this very strange interview to a Ukrainian outlet. He also noted that this is all we really have in terms of information about state preparations as there is continued silence (or very careful statements) from the President. 

It’s hard to know what to make of this SIS interview, but there has been no reason to doubt it so far and the message is fairly straightforward. Moldova is monitoring the situation, working with the Ukrainians, and preparing for refugees should conflict start. 

Gas Crisis

This week, in response to increasing energy prices and exchange rates, the National Energy Regulator approved the price increase of natural gas from 11.01 lei / cubic meter to 15.18 lei. In response Prime Minister Gavrilita announced that the government is exercising it’s emergency powers to maintain the current amount of gas subsidies for the first 150 cubic meters per household regardless of price increases. She stated that the average household will not feel the price increase due to the increased subsidies but she implored citizens to economize on gas as much as possible. Meanwhile, GazProm announced that it opposes an outside audit of MoldovaGaz and insists that Moldova pay the debts as GazProm sees them. It seems they wanted to remind Moldova of the swiss army knife of options that it possesses to wield bureaucratic processes to cut the flow of gas should the Kremlin decide to do so. 

Gagauzia Making its Own Deal on Gas?

The People’s Assembly in Gagauzia has decided to send a delegation to Moscow to try and negotiate their own delivery contract for gas bypassing the national government in Chisinau. The move was not fully explained but likely stems from the highly pro-Russian autonomous region’s dissatisfaction with the Chisinau government’s recent negotiation on gas prices. In response to this news, the director of MoldovaGaz stated that it is commercially and technically possible to supply Gagauzia independent from the rest of Chisinau provided that a local distribution company is set up. 

Responding to this development, Prime Minister Gavrilita flatly rejected the idea and noted that the People's Assembly in Gagauzia has been unable to elect a chairman for months and is about to dissolve in early elections due to their inability to even overcome this procedural hurdle. She implied that their ability to directly negotiate with Russia on gas is very unlikely.

While this is likely all true, there is also another not so subtle message being sent by Moscow and MoldovaGaz (on behalf of its owner GazProm). Russia is capable of supplying it’s friendly regions of Transnistria and Gagauzia with heat this winter at the same time that it threatens to cut off the rest of the country. 

Political Updates

Outside the various crises plaguing the country and region the primary news of the last 2 weeks on the political front has been a controversial new law that changes the conditions of immunity against searches and arrest for lawyers in Moldova. Currently, in order for a lawyer to be arrested or for a search of a lawyer to be conducted, the Council of the Union of Lawyers must consent in advance. MP Olesea Stamate who leads the legal committee in parliament proposed a set of amendments limiting this immunity. Her arguments were twofold, firstly, that these special protections were added at the suggestion of Marina Tauber of the Shor party, presumably to cover the tracks of Ilan Shor. Secondly, that lawyers have plenty of civil rights and protections just like everyone else does. 

The lawyers in Moldova did not agree. Through their professional organization lawyers noted how often abuses had occured in the past. Specifically, lawyers handle sensitive information for many clients at a time and unless searches are very restricted there is the risk of the authorities using false pretexts to obtain sensitive information - something that has apparently happened in the past. Initially lawyers protested by wearing white ribbons when in court as a show of solidarity. When their concerns were not taken into account they went on a national strike for 4 days last week. Ultimately, the law was passed with some concessions. Protections against search are maintained except in blatant cases of corruption. In those cases, a senior representative from the Council of Lawyers may be present to supervise the search and assure that it is being conducted narrowly and lawfully. The law was passed and promulgated by the President. Having lost, the lawyers ended their strike but have petitioned the government to set up a working group to further amend the law in their favor. If this is not done by April they threaten to strike again.

Rapid Fire Roundup

In order to get through a lot of updates quickly, we’ll quickly touch on some other key news:

• The government has appointed Oleg Serebryan, an experienced diplomat and former ambassador to France and Germany appointed Deputy Prime Minister for Reintegration, His job will be to handle questions regarding Transnistria and negotiations for a settlement to the frozen conflict. 

• The Constitutional Court upheld the ratification of the Istanbul Convention “on preventing and combating violence against women and domestic violence“ and rejected the arguments of the Socialist party against it. 

• The government announced that it has plans to investigate the rise in prices for key products in the light of current inflation. They  state that while there is clear inflation in Moldova and around the world some products are seeing "unreasonable increases" and that there is potential that cartels are exploiting the crisis for profit. No more details were given at this time. 

• Even after the government’s new reforms of the Supreme Council of Prosecutors and appointment and evaluation process for the Prosecutor General… well something slipped through. The National Academy of Sciences which is tasked with appointing one of the members of the Supreme Council of Prosecutors decided their pick would be Vladimir Plahotnuic’s lawyer Gheorghe Avornic. President Sandu noted that she is “disappointed.” That seems like a very polite response to such a disheartening mess.  

• Chisinau Mayor Ceban complains about "abusive controls" conducted on city hall by the national government. These inspections are for checking the integrity of workers, finances and more. The mayor says they are done to harass him and not let him get things done. Small business owners across Moldova (like this author) are unlikely to feel sympathy for Mr. Ceban and instead welcome him to the “abuse, harassment, extortion and wasting time” party that we all live in.  On a serious note it is probably good that someone is checking affairs at city hall because… 

Chisinau City Hall vs Newsmaker. 

The local news outlet Newsmaker recently reported on how city hall has illegally issued a construction permit to build a 5 story residential and commercial complex right at the edge of Valea Morilor park in the historic city center (Alexei Mateevic 109/2). The mayor had previously pledged to suspend all permits for construction in the historic city center as they sort out past abuses. This location is a) in the historic center b) zoned for special use (hospitals, churches, schools, etc) c) borders and is within the protected boundaries of 4 other historic buildings and d) is immediately adjacent to the US Embassy. 

A few hours after publishing the article the Newsmaker journalist responsible for the investigation received a call from an unknown number via the app Telegram and was told they should "write more delicately on such subjects." The caller then hung up and deleted the Telegram account. Meanwhile, the mayor and city hall officials have publicly attacked Newsmaker calling the article “lies” and disputing the fact that the proposed building is actually in the historical city center (it is). 

If construction begins there is also a major diplomatic problem given the proximity of the US Embassy. A few years ago similar completely illegal construction occurred in the historical center in the form of a building that was directly adjacent to the French consulate. Just like the US Embassy, the French Consulate is an open complex of 2 story buildings with courtyards. Having an apartment building towering overhead was a serious security issue. Once it became clear that the protests against the clearly illegal construction were going nowhere, the French packed up and went home. It would be fair to say the US Embassy may also lodge protests against such illegal construction right next door to them. . 

COVID-19 Update

Cases continue to rise as the Omicron wave continues to spread across Moldova. The 7 day average has been 4049 cases / day and 16 deaths per day. As you can see from the charts this is the largest number of daily cases since the beginning of the pandemic (by far). These numbers are likely vastly underreported as home tests are not counted and free government tests are restricted to people with serious symptoms. Testing availability is technically expanded with tents conducting tests across Chisinau… but you still need a doctor’s recommendation to get a test and this is only given with fairly serious symptoms. 

In response to the growing number of cases and sheer number of people out of work at this time the period of required quarantine for those exposed to positive cases has been reduced from 14 to 10 days with the possibility to test negative and end quarantine early on day 5. This only applies to the unvaccinated as anyone with a full vaccination is not required to quarantine at all after exposure provided they wear a mask and take precautions. 

The wave is being felt by all segments of society. This week an MP from the Communist party passed away from COVID at the age of 52. Meanwhile, the newly elected mayor of Balti is in the hospital and the mayor’s office reports that 50% of staff are out with COVID right now. 

Economics and Infrastructure 

Back on January 9th two large electric poles that supported electricity, street lights and trolley lines came crashing down on the Viaduct road just out of the city center. Thankfully no one was hurt. Upon inspection it was found that the base of the poles had rusted out and all it took was a trolley catching a cable wrong to bring the whole construction to the ground. Apparently the poles had been installed in the 1980s and not inspected in decades. This situation resulted in Mayor Ceban ordering an evaluation of all critical infrastructure in the city and promising to replace 300 light poles in the coming year. 

Apparently, this case is a perfect example of a serious issue with the country’s aging and neglected infrastructure. A report released by the State Roads Commission this week declared that 1 in 4 bridges in the country is in “unsatisfactory condition.” The leadership of the commission admits in the report that if they were to evaluate the bridges based on EU safety norms nearly 100% of the bridges in Moldova would need to be demolished and rebuilt. On the Viaduct bridge, where the light poles fell, the waterproofing is over 25 years expired and the expansion joints are in need of serious maintenance. This is not the worst bridge in the capital. Journalists noted that on the Mihai Viteazul bridge you can see cracks from the vantage of a low flying plane. The bridge on Izmail is particularly bad and anyone who has ever bravely walked across it next to traffic knows that there are spots where the cracks became holes and the holes grew large enough that you can stare through the bridge at the ground below. Under the bridge someone illegally built a car wash business and utilizes a rope net over the small building to catch the falling bits of stone and concrete that the bridge regularly sheds (that is one brave or crazy business owner).

The report notes that  every few years the government evaluates the problems and puts out tenders for repair… but no one responds. Companies say that the costs of the work vastly exceed the offered payments and the state agency notes that there are very few qualified companies in Moldova for this work. So let’s hope that they figure this out before we see something like the situation in Pittsburgh this week. 

Crime and Corruption

This week, police announced that they identified the source of the now constant bomb threats plaguing Moldova and causing evacuations of courts, malls and more. Apparently, the perpetrator is a teenager from Gagauzia who was acting as part of a larger network stretching across EU countries, Ukraine and Russia. Individuals across the region have been playing some kind of game and communicating the status of their bomb threats via encrypted Telegram channels. Ukraine and Russia have each had a huge number of bomb threats in past months just like Moldova. Unlike Moldova, Ukraine has been blaming Russia and Russia blaming Ukraine. Apparently, it’s been teens sitting at home playing some kind of game and inadvertently stoking war tensions. The kid from Gagauzia was arrested and his parents will face civil liability. Shortly after this news was announced another bomb threat was called in against a court in Chisinau. So apparently knowing the answer isn’t quite enough to stop what is going on.

Network of Arms Traffickers Arrested 

Police arrested members of an arms trafficking network in Chisinau, Orhei and Calarasi this week. They found small arms, bullets, grenade launchers, anti-tank missiles and parts of surface to air missiles. What they were doing with this very alarming assortment of illegal arms was not explained but videos showing the arms seized showed some old hardware and rusty bullets. It’s not known if this was a network supplying very unusual collectors, or if these men were planning to start their own little war while the topic is trending (video in the link above).

No Jail for Corruption Cases?

A report from the Legal Resources Center in Moldova highlighted just how few repercussions are in store for people convicted of corruption in the country. 8 in 10 persons convicted of corruption never spend a single day behind bars. The average time to try a case is 3.5 years with the longest case on record being 12.6 years. Prison is often off the table because the long trial delays allow the term of criminal liability to expire as the case is pending. Only 18% of defendants spend an average of 2.3 years in prison and 2 in 10 have to pay a fine. The most common officials tried for corruption are police officers (25% of court decisions), individuals (16% of court decisions), local councilors (6%), mayors (4%), lawyers and accountants (3%) and customs inspectors (2). %). It is worth noting the conspicuous absence of politicians, bureaucrats, inspectors, teachers and medical workers on this list. 

General Prosecutor Case Progresses

Lining up to… apparently spend no time in prison… are 3 more prosecutors who have been charged in the case against the former General Prosecutor Stoianoglo. All 3 were involved in the decision to drop the case against Veaceslav Platon and then allow him to leave the country immediately after the parliamentary elections last summer. 

Ending on a High Note!

Moldovan Biathlete Alina Stremous won silver in the European Championships this week! She is off to the Olympics in the next few days alongside 5 other Moldovan athletes! With all that’s going on in the world, and given the shadow of human rights abuses that is hovering over the Olympics in China, it’s important to remember just how amazing it is for these athletes to go and compete for their country. Go team Moldova! 

In a somewhat strange post script, it was announced that Moldovan athletes will be competing with a uniform bearing the Adidas logo as well as the Moldovan flag. Apparently Moldova did not manage to allocate funding for its athletes' uniforms or equipment and the IOC helped find them a sponsor. 

And consider becoming a paid subscriber to support our work at Moldova matters. For just $5 / month, the price of a nice coffee, you can support this work and help us expand into even better content!