Yevgeny Shevchuk: "We want to treat each other with respect"

Speaker of Parliament Yevgeny Shevchuk wants Moldova to treat Pridnestrovie with respect, and promises to do the same in return

TIRASPOL (Tiraspol Times) - Yevgeny Shevchuk, the young Speaker of Pridnestrovie's Parliament, says that progress is possible in status negotiations with Moldova if both sides can just treat each other with respect. In this interview, the leader of Pridnestrovie's largest opposition party, Renewal, answers questions on issues including taxes, conflict resolution and problems with press freedom in the new and emerging country.

A 100% import duty on some Moldovan goods has been canceled. Will it be canceled in full in 2008? Does Parliament plan this?

" - Thanks for your question. If you keep a watch on the Parliamentary business, then you know that on September 5, 2007 when discussing the tax and budgetary policy Parliament gave consideration to import duties on all Moldovan goods. The officers of the executive government, Parliament and the Audit Chamber were tasked to analyze the efficiency of the import duty. Then they must submit a report to the government. According to preliminary conclusions the economic actors of Pridnestrovie have to purchase more expensive goods in more distant regions. As you know, the President has already made a decision to suspend his decree as to particular items, mainly foodstuffs. Parliament thinks that economic actors should be given maximum freedom in deciding what to buy and where to buy. It’s a necessary condition in the market economy, especially in view of a steady increase in energy prices and the expected rise in prices for foodstuffs all over the world. So it’s possible to buy goods either in Ukraine, or Moldova or the European Union. It should be done if it brings profits. Our position is to encourage the companies in our economy to obtain maximum profits that will benefit all the citizens. I hope soon the Audit Chamber will submit a report to Parliament that will make a decision having regard to its recommendations."

Unfortunately the situation in the republic does not leave us much time to think it over and requires immediate decisions to be taken. Is there any timescale for Parliament to launch tax reforms?

" - As for the timescale for the tax reform, Parliament decided not to launch it but to decide whether it is necessary or not considering the report presented by the executive government and the Audit Chamber. The experts should estimate the positive and negative effects. If it is beneficial, then the changes will be discussed by Parliament. If it has a negative impact, then there will be no tax reforms. The economy requires well-considered decisions. As far as I remember we give two months for the experts to make an analysis. Then they submit a report at first to the Committee for economic policy and then to Parliament for consideration."

What are the chances to return to the previous system of taxation, for instance, collection of the value added tax?

" - In relation to the values added tax, I think there’s no way back to it since it was not of any economic value. There will be debates whether to approve the value added tax under the Russian or European scheme. There are options. We should remember that some large countries, for instance, neighboring Ukraine, state that they are likely to annul the value added tax. Europe and other states admit that it’s a highly corruptive tax, since the system of control over collection of this tax depends on the decisions made by the official. Everything must be taken into consideration. But the changes should be launched in stages."

As far as I understood the executive government expects the rate of inflation much higher than forecast by Parliament. Can you comment on it?

" - Regarding inflation, we have material about it. Of course, no one can predict a drought. The opinion of the Economy Ministry and our opinion differ. As the year of 2007 has shown our forecast is more real."

What do you think about the idea of liquidation of the armed forces of Pridnestrovie and reallocation of funds for defense and social needs? I mean the proposal of President Voronin; what’s your attitude to the package of initiatives moved by the Moldovan president?

" - Speaking about abolishment of the Defense Ministry or any other Pridnestrovian ministry, this is something I’d rather be careful about. In my opinion, the tension is still high, it’s rather risky to disband the Defense Ministry or any other state agency. We should understand that the security forces of Pridnestrovie provide real protection for our citizens. Such decisions are possible only after normalization of relations with Moldova, and offering a mechanism of guarantees; including guaranteed peace by the international community.

In relation to President’s Voronin proposals, I’d like to dwell on some aspects and move a proposal as well.

In my opinion, after the acute confrontation of 2004-2006 when the traffic and customs regimes were changed, I hope these proposals are a positive move in relations with Moldova, maybe, they’re trying to adopt a different position with regards to their relations with Pridnestrovie. In the past, we have always said that we could reach final settlement only if both Moldova and Pridnestrovie speak positively about each other. I hope for such a scheme of relations in the future.

I’d like to note that any ideas or proposals should be put into practice under a concrete scheme. We have lots of agreements signed by both President Voronin and President Smirnov that allow us to smooth over disagreements between Moldova and Pridnestrovie. We can’t nullify all the work and forget the period between 1992 and 2007. The working groups, experts and international organizations were functioning.

I’d like to extend an offer to the Moldovan Parliament and to the Pridnestrovian Parliament to both hold consultations and to ratify main documents signed in the course of negotiations, moreover, not only to ratify but to oversee implementation of these agreements. I’d like to remind you that among those documents are the agreement on mutual recognition of documents, on harmonization of the customs code. In this case there could be no need to have checkpoints on the border between Pridnestrovie and Moldova. If our colleagues from Chisinau welcome the idea, we are ready to meet them and to discuss this issue.

We’d like to hear a clear answer about the so-called autonomy law of Moldova. I think that avoidance of unilateral moves and observance of earlier signed agreements will facilitate free movement of people, goods, and increased financial flows through the borders of Pridnestrovie and Moldova and will create favorable environment for signing political agreements. I’d like to note that it is in the power of Chisinau to create favorable conditions for a dialogue, they have means and resources for this. A more active Parliamentary role in settlement through ratification and control over implementation of earlier signed agreements is one of the possible solutions.

Moldova can restore the rail traffic in full and in this way increase the competitive ability of Pridnestrovie’s private companies even when they have to pay double taxes [to two countries, ed.]. We should do our best to unblock it and to ensure optimal conditions for both Moldovan and Pridnestrovian corporations.

So I think in view of Parliament’s decisions on cancellation of the migration fee, and a 100% import duty on Moldovan goods, all these ideas will win support and will be put into practice and then we can talk about a new stage in stabilization of relations."

Am I right that one of the goodwill gestures that you offer to the Parliament of Moldova is to suspend the law on the status of the Pridnestrovian region?

" - I’d like to say that we should find out their position on this law. I think the adoption of this law was a counterproductive move. Unilateral actions usually cause aggression. We want to treat each other with respect, so the provisions of this law should be revised…
We also want Moldova’s economy to make progress in order to raise living standards of their citizens. And we want them to not place obstacles against our economy and not to use economic measures to press Pridnestrovie to return to the negotiating table."

The left and right bank media express different views on Voronin’s initiatives. Can the President of one side propose changes to the other side? There are other ways – diplomatic, official.

" - There are other ways and everyone is free to choose. So I think any proposals are welcome since they make us think about mechanisms to stabilize relations. I am not speaking about the proposal but about certain approaches. We should move forward on appropriate proposals that could be mutually acceptable. It seems to me that the actions being taken against Pridnestrovie, in particular against our private companies, don't create positive atmosphere."

When there’s a budget shortfall the state tries to find extra sources to fund the budget and usually raises taxes on goods and service that are of little importance: alcohol, tobacco, gambling. Does our state intend to do this?

" - The recent initiative by the President to raise excise duties on some alcohol drinks failed to win support in Parliament. It’s true that such companies are in difficult conditions now for they have no access to the markets. The Russian Federation is the key foreign market for the KVINT distillery. There has been no access to this market for more than a year already. We regarded it unwise to increase excise duties. If there are any shifts in the situation, then the companies will need time to gain access to the market and to restore the product sales. If there is positive dynamics, the state will consider opportunities of raising the budget revenues through indirect taxation. And we understand that if we gain access to the markets, it will ensure more tax payments to the budget."

Are there any companies subject to tax relief in Pridnestrovie? Are provisions on tax privileges for bodies corporate planned to be revised?

" - Regarding tax privileges, there are companies subject to tax relief in the Pridnestrovian Moldavian Republic. Tax privileges are prescribed by law in the field of foreign investments, innovations and technical re-equipment. The bodies corporate acting in compliance with law enjoy this privileges. If we speak about innovations, then a certain sum of money should be invested to set up a new company in Pridnestrovie.
I’d like to note that such privileges are offered by legislations of other states, though in view of our difficult situation we can’t compete for instance, with Russia where hundreds of millions of dollars are invested. Our investment scale is lower but the legislative regulation is modeled on the laws of the CIS states and a number of European states."

The information about your wish to run in the elections for the Russian State Duma for the United Russia Party was published? Is it true?

" - I don’t know where you find such information. It is not true. There’s a Pridnestrovie-born candidate for another party. As for the December elections, we’ve already said that we would support the United Russia Party. We are working out appropriate mechanisms of interaction, the public committee is being set up under the Renewal party and I hope that the United Russia Party will win support by a majority of Pridnestrovie’s voters."

The parliamentary elections took place in Ukraine. What Pridnestrovie expects from the new leadership of Ukraine?

" - Firstly, Pridnestrovie wish political stability for Ukraine. It first of all will benefit Ukrainian citizens and all neighboring states as well. We have common borders so it’s our concern. The rest is up to Ukrainian people. We respect their choice. I think and hope that Ukraine’s political forces will reach an agreement. We wish them to do so."

The findings on the work of the Health Ministry were submitted to the Prosecutor’s Office. Was Parliament informed about the outcome?

" - Under the preliminary report, the law-enforcement agencies initiated criminal proceedings; the criminal responsibility is enforced against some health officials. It is not good, since it’s a measure of a last resort, but anyway, the court will establish the truth and decide who is guilty. Parliament will keep a close watch on this and then a final report of the Prosecutor and the Interior Minister will be laid before Parliament. Of course, we’ll inform the public about the decisions that will be taken.

Parliament believes that the principal officers of the Health Ministry didn’t cope with their duties in full and we expressed our views in the appropriate resolution. Parliament has not changed its position. I think considering the report of the Audit Chamber it would be more useful if the Minister resigned. I hope we’ll receive the President’s answer to our proposals and discuss it at the plenary sitting of Parliament."

Could you comment on the current relations between Parliament and the state-run television company?

" - We have serious concerns about it considering the fact that it is not just a correspondence between Parliament and the Ministry for information and telecommunications but concrete actions: when Parliamentary reportages are edited and abridged. In this situation we have to apply to the Prosecutor to give estimation to such actions and to the steps taken by officers of the Ministry for information and telecommunication. We believe that legislation banning censorship on the territory of Pridnestrovie must be observed.

It’s clear that every journalist’s or MP’s or citizen’s judgments are rather subjective. He or she gives an appraisal of these events and there are mechanisms of protection for government agencies. Presidential and Parliamentary press-services are official sources of information. I think nobody irrespective of the rank or office is authorized to edit or to not broadcast official information. I read the letter addressed to the Parliamentary Press-service by the Information Minister and I express my deep concern about the minister’s words: I gave orders to the Editor-in-chief and others. I do not want to question the professionalism of TV PMR's or other media’s reporters. The Information Ministry’s approaches to the reporting of the information conflict with the current legislation and the Media Law.

Parliament believes that the Media Law is not implemented in full. You know that the law stipulates the existence of the state-run media. Unfortunately, they are not duly registered. We have the media founded by the Ministry for information and telecommunications, whereas, it is the departmental media under the law. In this case I’d like to offer to the Board of founders that is to meet soon to express its position on the Presidential Decree of 1998, under which Parliament is a founder of TV PMR and other republican media. I’d like to remind that we didn’t abdicate responsibility as founders. Our position is the following. It’s clear that the state should pursue a uniform policy, including the information policy. The state implements it through certain mechanisms regulated by law. A legally regulated mechanism is the Board of founders, registration of the media as a media founded by two power branches, the elections of the Editor-in-chief and implementation of the provisions of law.

In relation to the refusal to accredit TV PMR to Parliament I’d like to say that according to the accreditation rules, a media must not be monopolized by a government agency. If it conflicts with the law, then we can’t implement it. I think and I want the Board of founders to meet in the near future and to dot all the “i”s and Parliament will listen to the opinion of the Prosecutor’s Office. Why is it so important? It’s nonsense to impose restrictions on the supreme legislative or executive body and information presented by the press-service.

We think that the uniform rules should be applied to all government agencies funded from the budget and the law should be observed. I hope for fast resolution of the problem."

As far as I understand it is applied not only to the television?

" - Yes, it is not referred to the television only. As for the compliance with law, we think that the media funded from the republican budget and maintained by taxpayers should be the media founded by the President and Parliament. The local media should be financed from the local budget if founded by a government agency, for instance Tiraspol city Council or the Parliamentary newspaper falls within the Parliament’s budget. There’s a provision in the Standing Orders binding Parliament to have a publication, that’s why we launched it and now finance it."

You have just returned from the party forum of the United Russia Party. Could you as a leader of the Renewal Party unveil your plans for cooperation with the United Russia Party?

" - The Press-service of the Renewal Party is functioning and it taught the party leader to furnish the media with the information through the party’s press-service. All the information is available on the official website. Of course, we have good contacts. We have a good partner in ideological and political fields and we are striving for promoting deeper contacts."

You visited the forum not only as the leader of the Renewal party but as the Speaker of Parliament. Were financial aid issues under discussion?

" - No doubt, any visit of both legislative and executive officers is aimed at discussing topical issues on Pridnestrovie with competent officials. Of course, we informed Russian officials about our difficulties."

See also:
» Yevgeny Shevchuk: "We should be ready for the worst"
» Yevgeny Shevchuk: "This situation doesn't help constructive dialogue and a search for solutions"
» Yevgeny Shevchuk: "Democracy means respecting the majority will of the people"
» Yevgeny Shevchuk: "We will work for more and more democratization"