PRIME-MINISTER OF MOLDOVA VASILE TARLEV INVITED BUSINESSMEN OF AZERBAIJAN TO MOLDAVIAN MARKET

 

"Azerbaijan and Moldova today maintain good political relations and regulations. Having signed 6 more intergovernmental agreements in Baku, we do not see any obstacles in our way of strengthening trade and economic cooperation between the two countries", said Vasile Tarlev, Prime-Minister of Moldova, speaking on February 23 at the meeting with representatives of companies with Caspian integration Business Club  (CIBC) February 23 in Baku.

 

The Moldavian Prime-Minister said at the meeting that, unfortunately, trade and economic figures do not meet the countries' capacities and ‘first of all it is the fault of government and businesses. But I have a hope that it can be fixed in a short time'.

Moldova has a good tax and fiscal basis, political stability and the country is leading in considerable reforms. Moldova's government works to establish mutually beneficial partnerships between administration and business to make the country attractive for investors.

On January 1, 2007 Moldova became one of the neighboring countries of the EU. "We are running the last meters to join the European Union", Tarlev said. Prior to 2002 Moldova's external trade turnover was 90% with CIS countries but it then rose considerably in terms of money and the West's part is already 50%", Moldova's official said. "This means that Moldova's geographic location enables us to have good relationship with both the West and the East and increase the quality of our commodities", Tarlev stressed.

Moldova and the EU have struck an agreement regarding the partial asymmetric trade which is in effect since January 1, 2006. This authorizes over 9,000 types of goods access the EU duty-free. "This year's task is to sign a Moldova-EU agreement about a full asymmetric trade. In this respect, all problems have been solved at the experts' level and it will come into effect latest by January 1, 2008", Tarlev went on. Thus, to get exported to the EU, Moldavian goods shall comply with only two requirements: they shall bear the "Made in Moldova" certificate and their manufacturer shall be Moldova's resident. Furthermore, all types of such goods will be subject to zero custom duties. "This means that you, businessmen, can establish with Moldavian counterparts some joint ventures to promote your interests in Moldavian market and use Moldova's privileges in other markets as well", Tarlev stressed, addressing members of Caspian Integration Business Club.

Last year Moldova was affiliated as a full member of OBSEC, which brings together 9 countries of Balkan region; this helped establish trade relations between Balkan space and Moldova, which opens new prospects and possibilities for the country.

"I regret Moldavian businessmen not being members of CIBC. As a former businessman I know the most important is to establish trustful interface and dialog between government and business", Tarlev said, stressing that ‘he is fully aware there will be no development in an economy apart from stable work and trusting relations'.

"Business reps attending sessions of Moldova's Government have a full right to share their opinion anytime", Moldova's official said, touching upon the business situation in Moldova.

Speaking about the economic situation in Moldova, Tarlev outlined the dynamic growth of the country, which is, certainly, incomparable with that of Azerbaijan, but is nevertheless sustainable.  He expressed his hope for cooperative progress of friendly countries such as Azerbaijan and Moldova. Touching upon possible fields of mutual activity, Moldova's Prime-Minister especially underlined all sectors of national economies, agricultural and banking sectors, industry and energy. "I will be leaving your country with hope that we will enforce all our joint projects and obtain the results we are eager to achieve", he  said.

Speaking the specific examples of cooperation, Mr. Tarlev said the joint work with an Azerbaijani company on an oil terminal construction in Moldova is complete so far. First tankers will be coming to this terminal in March. "By the end of the year this cooperation will proceed further by commissioning of cargo and (next year) a passenger terminal. Thus, we are getting  free access to the Black Sea, using which we will be closer to Azerbaijan, and Azerbaijani goods will be freely passing to Europe via Moldova, and members of the Club will feel like home in Moldova", Tarlev stated further.

He reminded that Moldova had been a member of WTO since May 2001. WTO, said Tarlev, is a promising organization and ‘the most important is to make negotiations on joining WTO in a timely and correct manner' and not to give into mechanisms of protection of rights and interests of domestic business. "We are ready to stand by Azerbaijan and collaborate in PACE, GUAM, UN, CIS, OSCE and other organizations", Tarlev stressed, calling CIBC companies to the open dialog, "We would love to be Azerbaijan's partners and you to gain pleasure and profit from our joint work, for this is the very thing Moldova and Azerbaijan's peoples' welfare depends on", Tarlev stressed.

Answering Club members' questions about Moldova's energy market liberalization, Prime-Minister said energy market in Moldova had been liberalized so far. "Two-thirds of distribution networks are private-owned (operated by Spanish company). At present we are working on progressing our generating capacities and building new thermal power plants. We are currently executing a project of 400MW output rating thermal power plant and upgrading the two existing plants to 500 MW", official said, inviting Club's companies to join these projects.

Currently, the Moldavian government is designing the installation of 330kV power lines from Novodnestrovsk (Ukraine) to Beltsi (Moldova) and 400kV power lines from Beltsi to Suchava (Romania). These power lines will enable transmitting electricity to Balkans and Romania to ensure energy security in the region.

"We are observers in UCTE (energy market of Southeast Europe). By the end of the year we will be full members of this organization and Moldova's energy market will connect to that in Europe. Having a common energy market with CIS countries, Moldova is becoming attractive for transit and sale of electric energy. We already have projects with Greek companies", Moldavian official said.

An incentives package for the further liberalization of the country's economy has been prepared so far. The income tax for legal entities in Moldova today is 15%, compared to 32% five years ago. "The two-fold reduction of this tax is quite a significant step. We are preparing a surprise in tax sphere, which will provide for additional guarantees in investment sector", Moldova's Prime-Minister said.

Speaking about new possibilities for business in view of opening access to the Danube River and opportunities of Azeri capital participation in these projects, Tarlev said that ‘the Danube is indeed opening big chances for Caspian-Black Sea cooperation. We have established a free economic zone (FEZ) within the Julest oil and passenger terminal. One may deliver duty-free raw stock and auxiliary materials within the FEZ'. The Prime-Minister also said that a more attractive design of Danube passage had been prepared. "We are quite pragmatic; we always leave the door open and chances for cooperation are really high", he said.

Speaking the dependence on Russian energy resources and oil&gas supply diversification, Tarlev said Moldova had depended on Russia only up to the year 2001. "We do not import electricity, oil or diesel fuel from Russia, we just purchase gas", he stressed.

Moldova, with gas purchase contracts up to the year 2011, hopes the related obligations will not be failed unilaterally. "At the same time, we are working on various projects, including Odessa-Brodi, NABUCCO, and in close cooperation with Azerbaijan", Tarlev said.

The Moldavian official speaking on oil production in the country, stressed that the first 30,000 tons of Moldavian oil has been produced from a depth of 600m at one of the fields, and the related letters with proposals to Azerbaijan have been prepared. Through the meeting between Tarlev and President of Azerbaijan Ilham Aliyev the agreement was achieved on Azeri-Moldavian cooperation in oil&gas production cooperation.

Moldavian experts suggest considerable hydrocarbon reserves at the depth of 1,200-2,400 meters. Tarlev also said Moldova is going to develop alternative energy sources.

Moldova has drawn the energy sector program up to 2020 to be submitted to the European Commission. "We realize that our own energy system is a guarantee of state, sovereignty and territorial integrity", he outlined.

As for privatization mechanisms in Moldova, said Tarlev, 98% of grounds are privatized in Moldova. All large facilities are privatized too. He added that the government still holds stocks in energy facilities in the north of Moldova.

The enterprises of  the wine and electronic industry, as well as tractor construction and infrastructure are now attractive for privatization. Moldova today experiences a construction boom, which is one more sector to seduce foreign investments.

"We are introducing a new enterprise management mechanism through government bonds. The government has handed over its stock to other shareholders for free in case it was below 10%. At the moment it also estimates its resulting stock in the companies where original package was up to 50+1% for further privatization. The state stock will remain in the entities of national interest or national security", said Tarlev.

It was also agreed to open trade houses in Azerbaijan and Moldova. "Exhibitions of Moldavian commodities will take place in Baku under my personal supervision, and members of the Club will get a chance to get acquainted with Moldova's potential. The offer on opening an airline route between Baku and Kishinev will be a good tool of cooperation among businessmen of the two countries and members of the Club alike", Tarlev underlined.

«Since 1995 I am the chairman of Union of Commodity Producers of Moldova and dialog with business is always pleasant for me. It will be really useful for both our countries and companies. I would love to be a good friend and partner of Caspian integration Business Club", Tarlev said.

Telman Aliyev, President and CEO with CIBC, described the Club's work over the past five years and its contribution to the region's business-community consolidation.

"This is the Club's third meeting with the Prime-Minister of a country representing the Black Sea region", Telman Aliyev stressed. Speaking `about the Club geography extension, he called upon cooperation with Moldova's Businessmen Club. The companies with the club grew from 14 in 2002 to 300 in 2007.

The Club today is running beyond the frames of the Caspian region and affiliating to companies from the EU economic region, stated Aliyev.

Vasile Tarlev answered numerous questions of CIBC companies' reps. During the session, the Prime-Minister was presented with a honorary membership certificate of CIBC.

Participating at the CIBC session were representatives from companies in Azerbaijan, Moldova, Georgia, Kazakhstan, Turkey, Russia, Ukraine, Latvia, Iran and others.