THE ECONOMIC SITUATION IN THE
TRANS-DNIESTRIAN MOLDAVIAN REPUBLIC.
Economic and geographical specific.
Situation along the Dniester (navigable part within the republic consists 398
km), exit to the Black Sea and Danube via the Dniester liman (lake), determines
the important role of the region in the Black Sea basin. The republic possesses
developed transport infrastructure: two international railroad highways, three
gas mains, and two international highways cross its territory. The airdrome
in Tiraspol is able to receive modern airplanes of any modification and carrying
capacities.
Trans-Dniestria has its own currency system, makes active work for reforming
its industrial potentials, plans institutional and structural changes of the
industry.
Industry.
The republic possesses considerable industrial potentials. The industrial complex
includes the following branches: power engineering, black metallurgy, machine-building
and metal-working, electrical engineering, chemical, wood-working, furniture,
printing and publishing, glass, textiles, construction materials industry.
The industry includes 144 enterprises of different types of ownership: 113 of
which are state-owned, 9 hired, 11 joint-stock companies, 6 collective enterprises.
The Trans-Dniestrian Moldavian Republic fully provides itself with electricity
from proper electric stations (the Moldavian hydroelectric power station - HEPS
on Kuchurgan lake, the Dubossary HEPS on the Dniester), and exports electricity
to the CIS countries and Europe. Cables nets, electric line-conductors, cable
lines of different capacities and distance present eastern and southeastern
electric nets.
Many kinds of goods, produced in Trans-Dniestria, received certificates, confirming
conformity of its quality with world standards. The republic performs external
economic activity with 58 countries (for export), and with 59 countries (for
import). The average foreign trade turnover of enterprises consists $ 770 million
per year.
The most important kinds of industrial goods, produced by enterprises of Trans-Dniestria,
are as follows: power engineering, equipment for foundry industry, big electric
machines, low-voltage apparatus, cables production, electric-isolation materials,
steel rolled metal, pumps, cement, glass-plastic (and goods from it), furniture,
cotton fabric, shoes, sewing goods. Abroad the republic, there the enterprises
recommended themselves, as follows: "The Moldavian metallurgic plant",
Rybnitsa pump factory, "Moldavizolit" (isolation material), "The
Experimental plant of metal-foundry-graphics", "Electromash"
(electric machinery), "Moldavkabel" (cables), Tiraspol and Bendery
electric apparatus plants, Rybnitsa cement plant, "Tirotex" (textiles),
and few others.
Brief characteristics of the most important enterprises of Trans-Dniestria.
The quality of production of Rybnitsa cement plant is worldwide recognized,
which is confirmed by awards of prestigious international organizations. In
1993, the Golden Star "The Arc of Europe" in Madrid, Spain awards
the plant's cement. Asbestos-cemented sheets (SV-40/150) were given the international
award of quality, after examination of the metrology service in Debrecen, Hungary.
In 1998, the plant was given the international award "Arts-maker"
in the nomination: "For dynamics and progress of economic development in
conditions of transformation economy".
At the Joint Stock Company "Moldavian
Metallurgic Plant", founded 15 years ago and situated in the
town of Rybnitsa, recently there has been a reconstruction.
It contributed to the fact that the enterprise got an opportunity not only to
exceed considerably its project capacities, but also to maintain the production
quality at world standards level, to enlarge the assortment, to reduce production
costs considerably. And results are evident: high quality of production of the
Moldavian Metallurgic Plant is marked by a number of the most prestigious international
awards, including "The Arc of Europe" and "The Diamond Star".
The plant is awarded the international quality certificate ISO of series 9000.
The enterprise successfully competes at world and European markets, enlarges
production, and attracts foreign investments for that. The MMP produces steel,
and rolled metal. The production is exported to the USA, Germany, Spain, Egypt,
Israel, Taiwan, Thailand, Hong-Kong, Turkey, Iran, Argentina, Chile, Russia,
Ukraine, Belorussia, Lithuania, Latvia, and Estonia.
The JSC "Electromash" (Tiraspol) is one of the biggest specialized
industries of producing unique types of electric machinery. The enterprise is
awarded the international quality certificate ISO-9001 on behalf of the "TUF-Thuringen";
the plant's products have certificates of conformity of the Russian Federation,
Ukraine, Czech Republic, and Moldova. The plant is the permanent participant
of prestigious international exhibitions: during the last 2 years it took part
in the International Fair in the city of Daliang, China, in the International
exhibition in Brno, Czech Republic, in the 10th International Fair "Consume-Expo
'98", and in some others. The plant is awarded with diploma of the International
exhibition "Electric engineering equipment". The enterprise's production
is exported to Russia, Ukraine, Belorussia, Turkmenistan, Azerbaijan, Kazakhstan,
Moldova, Baltic States, and other countries.
The Trans-Dniestrian JSC "Moldavizolit"
is the only enterprise in the territory of the CIS and Europe, producing nearly
the whole spectrum of foiled and non-foiled materials on the basis of electric-isolate
material, based on glassed- fabric, cotton fabric, paper and pellicle. A joint
enterprise is established together with Turkey "Bef-Moldavizolit",
with Russia "Tiraslaminat", two affiliate enterprises on the basis
of structural units of the plant: "Rio-Moldavizolit" and the Department
of energy-provision. New nine types of production, necessary for the market,
are elaborated and mastered, as follows: laminate for laser technologies, decorative
non-burning, glassed textolitus of the PTK type. The enterprise is given the
certificate of conformity with international standards ISO of the series 9001.
The production is exported to the CIS and far abroad.
The enterprise "Tighina"
produces more than 150 models of high-qualified shoes for men, women, and children.
Brand-new technologies of the "Inform Brill GmBH" (from Germany) are
utilized in production. The enterprise is given the international standard ISO
9001. "Tighina" has two international awards: the golden Cup "For
Technology and Quality" and "The Diamond Star 'For Quality'",
as well as an international bronze prize is given for design and quality. The
enterprise exports shoes to Russia, France, Romania, provides requirements of
the internal market of Trans-Dniestria.
The enterprise "Floare" from Bendery produces diverse home shoes for
men, women, and children. Thanks to its attractive design and good quality characteristics,
the shoes are in demand on the internal market as well as on the external one:
the goods are exported to Russia, Moldova, Romania, Israel.
The JSC "Tirotex" is the largest enterprise (in its branch) in the
southwest part of the CIS. The enterprise is oriented for production of fabric
and sewed goods. The JSC "Tirotex" enforces its positions on the world
market, new types of production are worked out, as follows: utilization of yearn
(spun by the rolling method); adoption of jacquard fabric, and their realization
on the western market; the technology of fabric (produced with the effect of
compression); over 90 new articles of fabric of different directions are adopted
into production. Adoption of new assortment let the JSC "Tirotex"
enters the market of Scandinavian countries and improves efficiency of production.
In order to adopt an investment program for technical rearmament, to enlarge
sellers' markets of production, directing to countries of far abroad, the enterprise
established the Concern of light and textile industry.
The agro-industrial complex of Trans-Dniestria.
The agro-industrial sector of economy unites the agriculture, processing of
agricultural raw materials, and specialized infrastructure: transportation,
storage, wholesale and retail trade, and so on. Collective, co-operative, and
peasants' farms are busy with agriculture.
The agro-industrial sector has a considerable industrial and land potentials
as well. For today, in agriculture, there are 246,6 thousand hectares of agricultural
lands, from which fields cover 203,4 thousand hectares (82,5%), 24,2 thousand
hectares - perennial plantations (9,8%). The agro-industrial complex numbers
209 enterprises, organizations, and institutions, including 70 kolkhoz and interfarm
enterprises, 11 sovkhoz-plants, 5 poultry-factories, 1 fish-farm, 3 pork-producing
enterprises, 29 processing enterprises, and 86 servicing organizations and institutions.
Well-developed branches characterize the agro-industrial production of the region,
as follows: fruit, vegetables, and tin industry, grain production (flour, cereals,
combined forage), sugar-alcohol, and meat-and-dairy production. Among the enterprises,
processing fruit and vegetables, the leading role belongs to agro-industrial
companies, well known abroad: "The 1st of May" and "Varnitsa".
The special role belongs to the winemaking branch. The goods of the wine-and-cognac
plant "KVINT"
have been having high reputation for many years already, it is awarded with
70 golden, silver, and bronze medals. The plant is a laureate of the honorable
European "Golden Medal" and the highest award "Grand-prix of
the USA for quality and service". By means of its goods, the enterprise
provides the internal market, exports it to the CIS, and far abroad. In addition
to world-widely authoritative cognacs, the sovkhoz-plant "The Bouquet of
Moldavia" is able to satisfy any requirements in dessert wines and, first
of all, in the unique drink bearing the same title.
Development of the 'small business'.
In Trans-Dniestria, there is created an economic and legislative base for development
of the 'small' business. There are laws, as follows: "About business activity",
"About 'small' privatization", "About development of the 'small'
business", "About free economic zones", the Regulation "About
leasing". The republic numbers 2252 enterprises of the 'small' business.
Steps of state assistance to peasants' farms.
In Trans-Dniestria, there is worked out the legislative base for provision of
conditions for development and maintenance of peasants' farms. One of them was
the decree #48 dated February 15th 2000, "About some steps of state assistance
of peasants' farms". The Decree stipulates that the total area of 15 thousand
hectares is given in that purpose from reserve land funds. It is foreseen that
in created farms there is introduced a unique land tax; besides, peasants will
need to make payments (in the order fixed by the present legislation) to the
Pension Fund and the Social Assurance Fund. In order to ensure possibilities
for maintenance and development of the new farms, they will be liberated from
the unique land tax - during the first year of their activity; the second year
the tax will be reduced for 75%, the third - for 50%. The document stipulates
that such tax privileges are considered as state investments, and these means
are to be restituted only in case if a farm cancels the agreement of land-using,
or if that farm is liquidated by initiative of its founders within 7-year term
from the moment of the farm establishment, as well as in case of irrational
using of the land. The republic is already experienced in creation of farms':
the last year 7 farms were founded in Rybnitsa district, and positive results
are obtained. This year the process of establishing new farms goes on in Rybnitsa,
Slobodzeia and other districts of Trans-Dniestria.
Investment climate.
In the republic, there is created an economic and legislative basis of considerable,
mutually profitable home and foreign investments. Activity of foreign investors
is regulated by the Law "About foreign investments in the territory of
the TMR" dated August 3rd 1999, where there are stipulated legal, organizational
and economic conditions for carrying out foreign investments in Trans-Dniestria.
This document defines conditions of foreign investments, forms of their accomplishment,
rights and duties of investors, state guarantees and support in that direction,
other provisions. Activity of foreign investors is also regulated by other juridical
acts of the TMR, by interstate and international treaties, intergovernmental
treaties with participation of the TMR, other acts of the international law,
recognized in the territory of the TMR.
Translated by Ernest A. Vardanean