DCFTA HELPED TRANSNISTRIA TO AVOID ECONOMIC COLLAPSE - IDIS

Expert of the Institute of Development and Social Initiatives (IDIS) “Viitorul” Ion Tabirta presented his research, in which he said that the Deep and Comprehensive Free Trade Agreement helped Transnistria to avoid collapse in economy.

He pointed that in recent years, the region is facing a serious regress in economy: the GDP fell by 7.5%, the industrial production fell by almost one-fourth, exports were also seriously affected (-26%), as well as imports (-47%), while population incomes fell by 33%.

“All these facts demonstrate weak development of Transnistrian economy, which is still working on Soviet model and in conditions of total monopoly of the Sheriff company”, the expert told.

According to him, the main factor of such a weak development is geopolitical and concerns the Ukrainian crisis, which forced Kiev to seriously revise relations with the unrecognized PMR: the flow of contraband goods was cut, the Transnistrian business people’s access to Ukrainian ports, first of all Ilyichevsk, was restricted.

“However, due to the DCFTA, Transnistria managed to achieve a small economic growth in 2017 – in January-October the volume of industrial production grew US$6 million – to 601.7 million against the equivalent period of 2016; exports grew 17% - to US$515.9 million (40% of which accounted for EU countries), while imports – to US$809 million”, Tabirta said.

According to him, the DCFTA should become an efficient instrument of Chisinau influence on Tiraspol, as in this way Transnistria will get into even bigger dependence on Moldova, which will in the end strengthen socio-economic connections and will approach the two sides of the Dniester River.