Moldova Invest in dialogue with Ștefan Krasovschi-MUREA, Counselor Minister at the Embassy of Romania in the Republic of Moldova

The Office for Economic Promotion and Cooperation in Chișinău operates with the aim of promoting Romania’s economic and commercial interests in the Republic of Moldova.

Through its activities, the focus is on developing trade, with an emphasis on Romanian exports, facilitating economic cooperation, and attracting foreign investments to Romania. The main areas of action include promoting the economic location and investment opportunities in Romania, identifying and promoting Romanian export offerings in the Moldovan market, as well as facilitating economic dialogue at both governmental and non-governmental levels.

Additionally, the Office provides informational support and specialized assistance to the Romanian business environment, adapting to the specifi cities of the residence market and providing relevant economic information. By organizing economic promotion events such as trade missions, participation in fairs and exhibitions, or organizing business forums and seminars, the Offi ce contributes to strengthening the commercial and economic relationships between Romania and the Republic of Moldova.

Ștefan Krasovschi-Murea holds the position of Minister Counselor, Head of the Offi ce for Commercial and Economic Promotion within the Embassy of Romania in Chișinău. In this interview, he provided further details regarding the economic and commercial relations between Romania and the Republic of Moldova, conducting a comparative analysis based on statistics from the last two years.

What is the role of the Office for Commercial and Economic Promotion of the Embassy of Romania in Chișinău in supporting bilateral economic and trade relations, and how can it be contacted for additional support and information for investors and entrepreneurs from Romania?

The Embassy of Romania in the Republic of Moldova, through the Office of Commercial and Economic Promotion in Chișinău and the Association of Romanian Investors in the Republic of Moldova, provides specialized assistance to Romanian businesses traveling to the Republic of Moldova for market exploration, negotiation, and contract conclusion for exports. It also supports The participation of Romanian companies in international exhibitions and fairs organized in the Republic of Moldova, identifies partners for leveraging off ers transmitted by ANEIR, other professional associations, and Romanian companies, promotes among the business community in the host country the main international exhibition events in Romania, as well as those organized in the Republic of Moldova, etc.

Additionally, it deals with maintaining and developing dialogue with institutions, bodies, and professional associations with economic and commercial profiles from Romania and the Republic of Moldova.

The Office of Commercial and Economic Promotion of the Embassy of Romania in Chișinău can be contacted for support and information on the Embassy of Romania’s website in the Republic of Moldova, under the Team section – Chișinău Office of Commercial and Economic Promotion, or via email at economic@ambasadaromaniei.md.

What are the main reasons why the Republic of Moldova can be considered an attractive destination for Romanian investors? What is the level of openness of the authorities in the Republic of Moldova towards the Romanian private sector?

In Moldova, there are advantageous conditions for investors seeking honest and transparent businesses.

Alignment with the acquis communautaire, development platforms such as Free Economic Zones and IT Parks that cater to various business models, and the digitization of public services and the economy are compelling reasons to invest in the Republic of Moldova. In the future, expanding access to funding for small and medium enterprises and investing in large-scale energy, road, and rail infrastructure projects are significant assets.

„Romanian companies in the Moldovan market have generated over 10,000 jobs and have a total turnover exceeding 2 billion euros”

An economic strategy, encompassing investment attraction, will provide a clear framework for action and demonstrate the commitment of the Government and Ministries. It is necessary for the Ministry of Economy and Digitalization to accelerate the adoption of a strategy in this regard. This will prevent delays in implementing necessary measures for attracting investments, contributing to building investor confidence in the Republic of Moldova. Currently, at least Romanian investors are increasingly interested in the Moldovan market. I can say that this trend is evidenced by the interest expressed and conveyed, including by the Office for Commercial and Economic Promotion in Chișinău.

Can you provide a concise summary of the 2023 balance sheet? What are the prospects for 2024?

In the first 11 months of 2023, we exceeded 3.1 billion USD (2.04 billion USD in Romanian exports; 1.1 billion USD in imports from Moldova) – a decrease of -2.81% compared to the same period in 2022, amidst multiple crises in the region. Moldova remains Romania’s 6th largest non-EU trading partner (after Turkey, China, Ukraine, UK, USA), 5th in exports (after Turkey, UK, Ukraine, USA), and 2nd in trade surplus (after the UK).

Romania has solidified its status as Moldova’s primary trading partner, accounting for 15.1% of Moldova’s imports and 35% of its exports.

By the end of 2022, Romania’s total investments in Moldova reached 692 million USD. Romanian companies in the Moldovan market have generated over 10,000 jobs and have a total turnover exceeding 2 billion euros.

The interest shown by Romanian entrepreneurs in the Moldovan market is refl ected in the establishment, on January 24, 2018, of the Association of Investors from Romania in Moldova (AIR), which currently boasts 37 members. Their direct investments amount to over 260 million euros, with an annual turnover exceeding 1 billion euros. AIR is a member of the Economic Council alongside the Prime Minister of Moldova.

Assuming no unforeseen events from the eastern front, 2024 is expected to witness a new record in trade between Romania and Moldova.

What are the main sectors or industries in which there is significant collaboration between the two countries, contributing to the development of bilateral relations?

The primary economic sectors with potential for collaboration include:

• agriculture, with a strong emphasis on the production of fresh products;
• winemaking, featuring internationally recognized brands;
• the light industry, particularly textiles and footwear;
• meat and dairy;
• construction;
• cosmetics;
• the automotive industry.

Romania has supplied over a quarter of the external consumption needs of Moldova in the following product categories: machinery and electrical equipment, rubber, electric energy, iron and steel, seeds and oilseeds, other materials and chemicals, mineral fuels, lubricants, and related materials, etc

How do you believe Romanian investments in the Republic of Moldova and vice versa can be stimulated?

Romania is interested in the stability of the Republic of Moldova and its commitment to a European course. To achieve these objectives, it is crucial, first and foremost, to consolidate trends toward stability and predictability by genuinely, credibly, and visibly relaunching the necessary reforms in Moldova.

Secondly, projects aimed at strengthening economic and institutional ties with Romania should be consistently promoted. In particular, there is a desire to reinforce the presence of Romanian investments – a step dictated by the market’s own logic. We are interested in the opportunities presented in the context of resuming the privatization process in the Republic of Moldova.

Despite global investor mistrust and caution towards risks putting significant pressure on investments worldwide, foreign direct investments in the Republic of Moldova increased by 50% in 2022. At the same time, Foreign Direct Investment (FDI) enterprises demonstrate higher efficiency, acting as promoters of advanced management and production technologies, as well as quality standards. FDI contributes to the development of industries and showcases systemic importance for sustainable development and the national economy.

What initiatives currently exist to promote collaboration between businesses in the two countries?

The complementarity of economies and the benefits provided by a generous bilateral legal framework are robust arguments for the continuous intensification of bilateral business relations, especially in the current regional and global context.

Moldova needs support in promoting trade in services with Romania, and the Romanian experience, geographical proximity, and absence of language barriers are assets worth exploiting. Consulting services in all fields, IT and telecommunications services, financial services, education, and healthcare services are sectors in which Romanian firms can invest in the Republic of Moldova.