Economic war and the costs of our independence

Russia has declared war against us. A media war. A cold war. An economic war. The Russian Prime Minister has recently asked the government to adopt urgent decisions to sanction Moldova. The action is a response to the signing of the EU - Republic of Moldova Association Agreement.

As expected, the penalties increase. On the day when the Association Agreement was ratified by the Parliament, the Russian authorities decided to interdict the import of Moldovan meat products. Rospotrebnadzor has announced that during autumn Moldova will have to adopt the veterinary certificates required by the Customs Union. This will also "justify" apple and fruit export bans. Migration rules will be toughened.

Formally, these measures protect Russian market against the reexport of European goods under Moldovan brands. But it is hard to believe that a country as large as Russia, which imports 80% of consumer goods, could be threatened by Moldovan exports. In reality, the sanctions come to discredit the current government in the eyes of voters.

Paradoxically, a preliminary analysis shows that Russian sanctions will affect largely Russian population itself. We are, indeed, a country with a multiethnic population and the Russians are, numerically, the second after the Ukrainian national minority. Over 30% of the population consider Russian their native language. Russian private capital prevails in the Moldovan economy. Russian investors, including those from the Transnistrian region, are the most numerous and the most influential, having control in the main sectors of the national economy.

Nearly ¾ of the wine factories belong to Russians. Over 70% of the banking sector is controlled by Russian capital. More than 90% of electricity production belongs to Russia. All the infrastructure of gas pipelines was given to Gazprom. Russian companies control the oil market, too. The only international airport is leased to Russians for 49 years. Important parts of what remains of our national industry were also seized by Russians. Therefore, the introduction of economic sanctions will directly affect employers and employees of these companies, which have mainly Russian capital and are usually oriented to the Eastern market.

I am not a Russophobe. I respect the Russian people and their culture. I have done postgraduate studies in Moscow. I have obtained a PhD degree at a prestigious institution in Russia. I have relatives living in Russia and friends of Russian nationality.

But only now, after 20 years since the breakup of the Soviet Union, we see the cost of strategic mistakes made by the government, which has allowed the over-penetration of Russian capital. The control over national economy threatens economic security and undermines our independence. I will offer you one example, that of Gazprom. In the late 90s, I have participated to the restructuring and reorganization of this sector. When I came up with the proposal not to allow Gazprom to hold 50% plus one share in the capital of Moldovagaz, I was told I didn't know history and geography, nor the origin of gas. When I have drawn the attention to the fact that the "own contribution" of Gazprom to share capital, equal to the value of magistral pipelines ensuring the transit to Europe - generously transferred by the government for the debt of the wild transition period, is undervalued by 100 million dollars, I was ordered to leave the energy sector.

These weren’t just accidental or unintentional mistakes. Russia knew how to reward these generous services. We know at least eight (!) people which have obtained high state positions in Moldova and further high-paying jobs in Russian transnational enterprises.

We know that political mistakes cannot be repaired. It's time to pay for them. The impact of Russian sanctions is not negligible. Penalties may significantly affect the competitiveness of national goods on domestic and foreign markets. The government should assess possible scenarios and apply appropriate policies. Some have already been applied, of which the construction of Iasi-Ungheni pipeline. We need to support exports. Whatever the origin of the capital. To enhance actions aiming at energy preservation and saving. On both banks of Nistru. We must mobilize society in order to make European integration bearable and advantageous for the entire population. Regardless of nationality. This would be the cost of our independence.

Mihai Roscovan