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US Ambassador: Potential investors are discouraged by official corruption in Moldova // INTERVIEW

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The current US Ambassador to Moldova, James D. Pettit, has been here for about half a year, enough to witness a change of prime-ministers and the formation of a new political coalition. In an exclusive interview for Moldova.ORG, he shares his views on several topical issues in our country.

-Mister Ambassador, it’s been a few months since you came into office. Which are the projects started or finished during this spell that you are proud of?

-We have a lot of assistance projects here in the Republic of Moldova. I can’t think of any programs that started and ended during the time I’ve been here, but certainly everyone is familiar with the Millennium Challenge Corporation program, building the highway up north, towards Soroca, and also the refurbishment of 10 Soviet-era irrigation plants, which are now operational, providing much-needed irrigation to farmlands.

USAID has numerous programs in diverse sectors of society. Some of them in the are of governance, they work with civil society, they work on issues such as judicial reform, we have training for law enforcement. USAID is also active in economic growth activities, including high-value agriculture.

And of course we have our Peace Corps volunteers, over 100 of them deployed throughout the country, assisting at the community level.

-You’re probably following what happens with these projects after they end. You’ve seen that the Sarateni road has been damaged by the locals, I guess this affects the Embassy staff in a way. Do you have a message in this regard?

-It’s very important with our projects that we have acceptance and buy-in from the local community. Once these projects are completed, their sustainability has to be guaranteed by the people who benefited by the programs.

And, for example, with the Millennium Challenge Corporation irrigation projects, we’ve created local water authorities under Moldovan law to ensure that these irrigation facilities are properly managed for the years in the future.

-The US has repeatedly expressed its support for the fight against corruption in Moldova. Are you happy with way these reforms are unfolding?

-I think progress in the anticorruption fight has been very slow. The programs we’ve worked on, as I mentioned earlier, involve reforms in the judiciary, which includes things such as audio-recordings for cases, as well as random case-assignment to judges.

We also have assistance projects designed for streamlining the bureaucratic process for permitting. In general, we think that economic growth in Moldova is only going to happen when authorities create an atmosphere that is friendly for business and entrepreneurship.

But official corruption corruption remains the primary obstacle toward improving Moldova’s economy.

-Do you know of any American businessman who returned to the US because of this or avoided doing business here knowing that Moldova is a corrupt country?

-There are definitely cases of American and other foreign investors and enterprises who have been discouraged by the lack of a business-friendly environment here.

And quite often, potential American or foreign investors who come here are discouraged by what they see and they look for markets elsewhere.

Another issue that is very discouraging for foreign investors is the lack of transparency in the judicial sector. Too many investors and companies discovered that they cannot be assured that contracts will be honoured in the courts.

-Let’s turn to the situation in the banking sector. Do you think that the authorities reacted as we, society and the diplomatic corps, expected?

-The banking crisis is clearly something that has been transpiring for a number of years. And regardless who the guilty parties are, it shows a major deficiency in how the banking regulatory scheme is implemented.

Despite an initial audit, the so-called Kroll report, there has been very little progress since then in investigating where the money went, who is responsible and what efforts need to be made to recover the stolen money.

I do understand that the government is taking steps to liquidate the three problematic banks, but this problem will continue in the banking sector without a regulatory reforms and proper supervision.

-Do you think that the situation is favourable for the authorities to start solving the economic and social issues or do we still have to wait?

-I think it’s too early to tell. It’s a brand new coalition and we wish them success. All three parties in the coalition claim to be pro-European and we hope that translates into beginning very soon the reforms required by the Association Agreement with the EU.

And once negotiations with the IMF are completed we hope necessary reforms are undertaken to free up donor assistance. Our colleagues in the EU and the US government and the major international financial institutions all want to assist as well they can Moldova to implement these reforms.

-Do you think there’s any chance for IMF to release funding for Moldova before the turn of the year?

-It really depends upon the progress that is made in terms of negotiations with the IMF and the ability of the Moldovan government to convince the IMF and the international development partners that they are serious about undertaking the necessary reforms.

-Might the fact that Moldova has no official aspirations to become a NATO member affect the level and type of assistance it receives? For the Ministry of Defense, let’s say.

-The US completely recognizes Moldova’s right to be a neutral country and we understand it’s in their constitution. It is nevertheless a very important member of the Partnership for Peace Program.

We have a very good bilateral military relationship that is aimed at modernizing Moldova’s army and helping it to be inter-operable with NATO elements in peace-keeping missions.

And we anticipate that our military assistance, our military financial assistance should not only stay at the current level but should increase in the next years.

We believe that a strong, modern and effective Moldovan military is essential for the security of the nation.

-Could we say that the conflict in the Middle East has overshadowed the conflicts in Ukraine and Transnistria?

-I don’t think it has overshadowed attention to the regional conflict here. Obviously, there is a limited number of resources, political and financial. But we consider the regional situation, particularly in Ukraine, very serious and we’ll do everything possible to ensure that the Minsk agreements are followed.

The situation with Transnistria… progress continues, but it’s very, very slow. We are hopeful that the 5+2 format can be revived in the near future, but I feel that what’s most important now is continued progress at the 1+1 level, between Chisinau and Tiraspol.

The entire region, including Transnistria, is experiencing a period of economic stress and it’s very important that the authorities of Chisinau and neighbours such as Ukraine do everything to ensure that Transnistria remains economically stable.

One important way to address this are current discussions with the EU on assisting Transnistria to comply with the DCFTA. This will ensure that Transnistria has good access to the European market.

-What if Tiraspol refuses to comply with the DCFTA? Moldova and EU cannot force it.

-No, no one wants to force Transnistria into doing a thing that it’s not seen in their own interests. But it is difficult for me to even imagine how Tiraspol could think that denying itself access to the European market, which the largest market in the world, would be beneficial to its people.

-Russia is selectively allowing some companies from Moldova to export to Russia. What do you think about this?

-I think it’s good that they are lifting their punitive embargo on some companies. R|ussia’s a very natural export market for Moldova’s produce and we hope that their easing of the embargo will continue.

-What do you think about the situation of Moldovan mass-media. Do you think Moldova can and should fight against Russian propaganda?

-I think the best way to counter Russian propaganda is to be a success as a nation. Moldova doesn’t have the financial resources to counter Russia’s 1 billion+ propaganda.

But it’s very important to promote the level of Moldova’s news programming and the professionalization of its journalists. And it’s also important to ensure there is a free and independent mass-media environment in Moldova.

-Thank you.

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#WorldForUkraine – a map that shows the magnitude of the world’s actions against Russian aggression

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The international community and volunteers from all over te world have launched #WorldForUkraine as a platform that shows the magnitude of the world’s actions against the Russian aggression. In a digital world – it is an interactive map of public support of Ukrainians under the hashtag #WorldForUkraine – rallies, flash mobs, protests around the world. In the physical dimension – it is your opportunity to take to the streets and declare: “No to Putin’s aggression, no to war.”

„Today, along with the political and military support, emotional connection with the civilized world and truthful information are extremely important for Ukraine. The power to do it is in your hands. Join the #WorldForUkraine project and contribute to the victorious battle against the bloodshed inflicted on Ukraine by the aggression of the Russian Federation”, says the „about the project” section of the platform.

Go to the streets — Tell people — Connect and Unite — Become POWERFUL

Volunteers have launched #WorldForUkraine as a platform that shows the magnitude of the world’s actions against Russian aggression. In digital world – it is an INTERACTIVE MAP of public support of Ukrainians worldforukraine.net under the hashtag #WorldForUkraine – rallies, flash mobs, protests around the world. In the physical dimension – it is your opportunity to take to the streets and declare: “No to Putin’s aggression, no to war.” There you may find information about past and future rallies in your city in support of Ukraine. This is a permanent platform for Ukrainian diaspora and people all over the world concerned about the situation in Ukraine.

So here’s a couple of things you could do yourself to help:

* if there is a political rally in your city, then participate in it and write about it on social media with geolocation and the hashtag #WorldForUkraine

* if there are no rallies nearby, organize one in support of Ukraine yourself, write about it on social media with geolocation adding the hashtag #WorldForUkraine

The map will add information about gathering by #WorldForUkraine AUTOMATICALLY

Your voice now stronger THAN ever

All rallies are already here: https://worldforukraine.net

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How is Moldova managing the big influx of Ukrainian refugees? The authorities’ plan, explained 

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From 24th to 28th of February, 71 359 Ukrainian citizens entered the territory of Republic of Moldova. 33 173 of them left the country. As of this moment, there are 38 186 Ukrainian citizens in Moldova, who have arrived over the past 100 hours. 

The Moldovan people and authorities have organized themselves quickly from the first day of war between Russia and Ukraine. However, in the event of a prolonged armed conflict and a continuous influx of Ukrainian refugees, the efforts and donations need to be efficiently managed. Thus, we inquired about Moldova’s long-term plan and the state’s capacity to receive, host, and treat a bigger number of refugees. 

On February 26th, the Ministry of Labor and Social Protection of Moldova approved the Regulation of organization and functioning of the temporary Placement Center for refugees and the staffing and expenditure rules. According to the Regulation, the Centers will have the capacity of temporary hosting and feeding at least 20 persons, for a maximum of 3 months, with the possibility of extending this period. The Centers will also offer legal, social, psychological, and primary medical consultations to the refugees. The Center’s activity will be financed from budget allocations, under Article 19 of Provision no. 1 of the Exceptional Situations Commission from February 24th, 2022, and from other sources of funding that do not contravene applicable law.

The Ministry of Inner Affairs and the Government of Moldova facilitated the organization of the volunteers’ group “Moldova for Peace”.  Its purpose is to receive, offer assistance and accommodation to the Ukrainian refugees. The group is still working on creating a structure, registering and contacting volunteers, etc. It does not activate under a legal umbrella. 

Lilia Nenescu, one of the “Moldova for Peace” volunteers, said that the group consists of over 20 people. Other 1700 registered to volunteer by filling in this form, which is still available. The group consists of several departments: 

The volunteers’ department. Its members act as fixers: they’re responsible for connecting the people in need of assistance with the appropriate department. Some of the volunteers are located in the customs points. “The Ministry of Inner Affairs sends us every day the list of the customs points where our assistance is needed, and we mobilize the volunteers”, says Lilia Nenescu. 

The Goods Department manages all the goods donated by the Moldavian citizens. The donations are separated into categories: non-perishable foods and non-food supplies. The volunteers of this department sort the goods into packages to be distributed. 

The Government intends to collect all the donations in four locations. The National Agency for Food Safety and the National Agency for Public Health will ensure mechanisms to confirm that all the deposited goods comply with safety and quality regulations. 

The Service Department operates in 4 directions and needs the volunteer involvement of specialists in psychology, legal assistance (the majority of the refugees only have Ukrainian ID and birth certificates of their children); medical assistance; translation (a part of the refugees are not Ukrainian citizens). 

According to Elena Mudrîi, the spokesperson of the Ministry of Health, so far there is no data about the number of  Covid-19 positive refugees. She only mentioned two cases that needed outpatient medical assistance: a pregnant woman and the mother of a 4-day-old child. 

The Accommodation Department. The volunteers are waiting for the centralized and updated information from the Ministry of Labor about the institutions offering accommodation, besides the houses offered by individuals. 

The Transport Department consists of drivers organized in groups. They receive notifications about the number of people who need transportation from the customs points to the asylum centers for refugees.

The municipal authorities of Chișinău announced that the Ukrainian children refugees from the capital city will be enrolled in educational institutions. The authorities also intend to create Day-Care Centers for children, where they will be engaged in educational activities and will receive psychological assistance. Besides, the refugees from the municipal temporary accommodation centers receive individual and group counseling. 

In addition to this effort, a group of volunteers consisting of Ana Gurău, Ana Popapa, and Andrei Lutenco developed, with the help of Cristian Coșneanu, the UArefugees platform, synchronized with the responses from this form. On the first day, 943 people offered their help using the form, and 110 people asked for help. According to Anna Gurău, the volunteers communicate with the Government in order to update the platform with the missing data. 

Translation from Romanian by Natalia Graur

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FC Sheriff Tiraspol victory: can national pride go hand in hand with political separatism?

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A new football club has earned a leading place in the UEFA Champions League groups and starred in the headlines of worldwide football news yesterday. The Football Club Sheriff Tiraspol claimed a win with the score 2-1 against Real Madrid on the Santiago Bernabeu Stadium in Madrid. That made Sheriff Tiraspol the leader in Group D of the Champions League, including the football club in the groups of the most important European interclub competition for the first time ever.

International media outlets called it a miracle, a shock and a historic event, while strongly emphasizing the origin of the team and the existing political conflict between the two banks of the Dniester. “Football club from a pro-Russian separatist enclave in Moldova pulls off one of the greatest upsets in Champions League history,” claimed the news portals. “Sheriff crushed Real!” they said.

Moldovans made a big fuss out of it on social media, splitting into two groups: those who praised the team and the Republic of Moldova for making history and those who declared that the football club and their merits belong to Transnistria – a problematic breakaway region that claims to be a separate country.

Both groups are right and not right at the same time, as there is a bunch of ethical, political, social and practical matters that need to be considered.

Is it Moldova?

First of all, every Moldovan either from the right or left bank of Dniester (Transnistria) is free to identify himself with this achievement or not to do so, said Vitalie Spranceana, a sociologist, blogger, journalist and urban activist. According to him, boycotting the football club for being a separatist team is wrong.

At the same time, “it’s an illusion to think that territory matters when it comes to football clubs,” Spranceana claimed. “Big teams, the ones included in the Champions League, have long lost their connection both with the countries in which they operate, and with the cities in which they appeared and to which they linked their history. […] In the age of globalized commercial football, teams, including the so-called local ones, are nothing more than global traveling commercial circuses, incidentally linked to cities, but more closely linked to all sorts of dirty, semi-dirty and cleaner cash flows.”

What is more important in this case is the consistency, not so much of citizens, as of politicians from the government who have “no right to celebrate the success of separatism,” as they represent “the national interests, not the personal or collective pleasures of certain segments of the population,” believes the political expert Dionis Cenusa. The victory of FC Sheriff encourages Transnistrian separatism, which receives validation now, he also stated.

“I don’t know how it happens that the “proud Moldovans who chose democracy”, in their enthusiasm for Sheriff Tiraspol’s victory over Real Madrid, forget the need for total and unconditional withdrawal of Russian troops from Transnistria!” declared the journalist Vitalie Ciobanu.

Nowadays, FC Sheriff Tiraspol has no other choice than to represent Moldova internationally. For many years, the team used the Moldovan Football Federation in order to be able to participate in championships, including international ones. That is because the region remains unrecognised by the international community. However, the club’s victory is presented as that of Transnistria within the region, without any reference to the Republic of Moldova, its separatist character being applied in this case especially.

Is it a victory?

In fact, FC Sheriff Tiraspol joining the Champions League is a huge image breakthrough for the Transnistrian region, as the journalist Madalin Necsutu claimed. It is the success of the Tiraspol Club oligarchic patrons. From the practical point of view, FC Sheriff Tiraspol is a sports entity that serves its own interests and the interests of its owners, being dependent on the money invested by Tiraspol (but not only) oligarchs.

Here comes the real dilemma: the Transnistrian team, which is generously funded by money received from corruption schemes and money laundering, is waging an unequal fight with the rest of the Moldovan football clubs, the journalist also declared. The Tiraspol team is about to raise 15.6 million euro for reaching the Champions League groups and the amounts increase depending on their future performance. According to Necsutu, these money will go directly on the account of the club, not to the Moldovan Football Federation, creating an even bigger gab between FC Sheriff and other football clubs from Moldova who have much more modest financial possibilities.

“I do not see anything useful for Moldovan football, not a single Moldovan player is part of FC Sheriff Tiraspol. I do not see anything beneficial for the Moldovan Football Federation or any national team.”

Is it only about football?

FC Sheriff Tiraspol, with a total estimated value of 12.8 million euros, is controlled by Victor Gusan and Ilya Kazmala, being part of Sheriff Holding – a company that controls the trade of wholesale, retail food, fuels and medicine by having monopolies on these markets in Transnistria. The holding carries out car trading activities, but also operates in the field of construction and real estate. Gusan’s people also hold all of the main leadership offices in the breakaway region, from Parliament to the Prime Minister’s seat or the Presidency.

The football club is supported by a holding alleged of smuggling, corruption, money laundering and organised crime. Moldovan media outlets published investigations about the signals regarding the Sheriff’s holding involvement in the vote mobilization and remuneration of citizens on the left bank of the Dniester who participated in the snap parliamentary elections this summer and who were eager to vote for the pro-Russian socialist-communist bloc.

Considering the above, there is a great probability that the Republic of Moldova will still be represented by a football club that is not identified as being Moldovan, being funded from obscure money, growing in power and promoting the Transnistrian conflict in the future as well.

Photo: unknown

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