economy

The Speaker of Transdniestria's Parliament says that to attract foreign investments, more free market reforms are needed. 39 year old Yevgeny Shevchuk is a native-born Transdniestrian from Rybnitsa and head of the country's largest opposition party, Renewal. Since opening up the economy in 2001, Transdniestria's GNP has increased four-fold.

Tiraspol, the capital of Pridnestrovie, is fast becoming Eastern Europe's largest exporter of long stemmed roses. A new plant has been built with Dutch assistance and it is now on track to produce a million roses per year. Soil consists of coconut pieces which have been specially imported from Sri Lanka for this purpose.

Pridnestrovie could receive assistance from the World Bank over the next four years. According to a World Bank spokesperson, this is one of the priorities in the organization's new four year plan. Discussions will now be opened with the authorities to determine which projects the bank can fund in the new and emerging country.

Drivers in Rybnitsa got a break from high gas prices on 24 December 2007. With the opening of a new gas station in the city, every car received a gift of 15 liters (4 gallons) of free gasoline. Rybnitsa is Pridnestrovie's third-largest city.

From January 1, 2008, Transdniestria will be paying more for gas supplies than neighboring Moldova. For the unrecognized country, Russia's Gazprom has set the price at $192 per thousand cubic meters of gas. Moldova, on the other side of the Dniester river, will pay two dollars less.

In a repeat of 2007 there will be no handouts for Transdniester in 2008 either. Just like this year, next year's national budget envisions a fully self-supporting economy. The unrecognized country receives no financial help from Russia, Moldova or any other part of the world.

Coming out firmly against the failed Soviet economic model, Pridnestrovie's President supports the increasing role of private firms in the economy. Having grown ten percent over last year, there are now just over 4,000 privately owned companies in Pridnestrovie. Their profits have more than doubled in comparison with 2006.

The Parliament of Pridnestrovie (Transdniestria) is appealing to Russia's State Duma for financial help. A devastating drought this year caused more than $40 million in losses for the new and emerging country. Pridnestrovie doesn't receive any part of the aid which Moldova gets for its own drought relief work.

For Pridnestrovie's Parliament, the economic blockade from Moldova is the number one concern. Speaker Yevgeny Shevchuk says that unfavorable conditions for foreign trade are causing losses and hardship for everyone living in Pridnestrovie. The Speaker also mentioned a number of issues where Parliament disagrees with the President and key ministries.

In a unilateral move for free trade with Moldova, the Transdniestrian parliament has abolished a series of import duties on Moldovan goods. Analysts believe that increased business and trade flows will lead to more contacts, cooperation and better understanding between the two sides. Moldova has not eased restrictions on Transdniestria, however, and still maintains its economic blockade against the unrecognized country.