Moldova
GANG INFORMATION
PROFILE
OFFICIAL NAME:
Republic of Moldova
Geography
Area: 33,843 sq. km. (13,000 sq. mi.); slightly larger than Maryland.
Cities: Capital--Chisinau.
Terrain: Rolling steppe, gradual slope south to Black Sea.
Climate: Moderate winters, warm summers.
Time Zone: GMT+2
People
Nationality: Noun--Moldovan(s). Adjective--Moldovan.
Population (preliminary 2004 census): 3.36 million, excluding
the estimated Transnistrian population of 580,000. Population
growth rate: -0.3% (est.).
Ethnic groups (1989 est.): Moldovan/Romanian (65%), Ukrainian
(13.8%), Russian (13%), Gagauz (3.5%), Jewish (1.5%), Bulgarian
(2%), other (1.7%).
Main religions: Christian Orthodox (98%), Jewish, Baptist.
Languages: Romanian (officially known as Moldovan), Russian, Ukrainian,
Gagauz.
Education: Literacy--96%.
Health: Infant mortality rate--44/1,000. Life expectancy--67 years.
Work force (2 million): Agriculture--35%; industry--20%; other--45%.
Government
Type: Republic.
Constitution: Adopted July 28, 1994.
Independence: August 27, 1991 (from Soviet Union).
Branches: Executive--President (head of state), Prime Minister
(head of Government), Government (cabinet). Legislative--unicameral
Parliament. Judicial--Supreme Court.
Administrative subdivisions: 32 counties (raions), 4 municipalities,
and one autonomous territorial unit.
Political parties: Communist Party, Popular Christian Democratic
Party, Our Moldova Alliance, Democratic Party, Social Liberal
Party, and Social-Democratic Party.
Suffrage: Universal at 18.
Economy
GDP (2004 est.): $2.6 billion ($2.0 billion in 2003; $1.6 billion
in 2002; $1.5 billion in 2001).
GDP real growth rate (January-September 2004): 5.7% (6.3% in 2003;
7.2% in 2002; 6.1% in 2001).
Per capita GDP (2004 est.): $760 ($540 in 2003: $448 in 2002;
$422 in 2001).
Natural resources: Lignite, phosphates, gypsum, arable land, and
limestone.
Agriculture: Products--vegetables, fruits, wine and spirits, grain,
sugar beets, sunflower seeds, meat, milk, eggs, tobacco, walnuts.
Industry: Types--processed foods and beverages, including wine
and refined sugar; processed fruit and vegetable products, including
vegetable oil; dairy and meat products; tobacco items; metal processing
and production of machinery; textiles and clothing, shoes; furniture.
Trade (2003): Exports--$790 million (of which 46% go to countries
outside the former Soviet Union): foodstuffs, wine, textiles,
clothing, footwear and machinery. Major markets--Russia, Romania,
Italy, Ukraine, Germany. Imports--$1,403 million (of which 58%
come from countries outside the former Soviet Union): gas, oil,
coal, steel, machinery and equipment, chemical products, textiles,
foodstuffs, automobiles, and other consumer durables. Major suppliers--Ukraine,
Russia, Germany, Italy, Romania.
Currency: Moldovan Leu (plural Lei).
Exchange rate: Lei/US$ (2004): 12.33; 12.46 (end of year); (13.94
average in 2003); (13.57 average in 2002)
PEOPLE AND HISTORY
Ethnic groups represented in Moldova include Moldovan/Romanian,
Ukrainian, Russian, Gagauz, and Bulgarian. Romanian (officially
known as Moldovan) is the official language; Russian, Ukrainian,
and Gagauz also are spoken. The great majority of Moldova's population
is Christian Orthodox -- 90% of the population nominally belongs
to one of the two main Orthodox denominations. The Moldovan Orthodox
Church, an autonomous diocese of the Russian Orthodox Church and
loyal to the Patriarch of Moscow, has 1,194 parishes; the Bessarabian
Orthodox Church, affiliated with the Romanian Orthodox Patriarchate
in Bucharest, has 124 parishes. In addition, followers of the
Old Rite Russian Orthodox Church (Old Believers) make up approximately
3.6% of the population.
The Republic of Moldova occupies most of what has been known
as Bessarabia. Moldova's location has made it a historic passageway
between Asia and southern Europe, as well as the victim of frequent
warfare. Greeks, Romans, Huns, and Bulgars invaded the area, which
in the 13th century became part of the Mongol empire. An independent
Moldovan state emerged briefly in the 14th century under celebrated
leader Stefan the Great but subsequently fell under Ottoman Turkish
rule in the 16th century.
After the Russo-Turkish War of 1806-12, the eastern half of Moldova
(Bessarabia) between the Prut and the Dniester Rivers was ceded
to Russia, while Romanian Moldavia (west of the Prut) remained
with the Turks. Romania, which gained independence in 1878, took
control of Russian-ruled Bessarabia in 1918. The Soviet Union
never recognized the action and created an autonomous Moldavian
republic on the east side of the Dniester River in 1924.
In 1940, Romania was forced to cede Bessarabia to the Union of
Soviet Socialist Republics (U.S.S.R.), which established the Moldavian
Soviet Socialist Republic by merging the autonomous republic east
of the Dniester and the annexed Bessarabian portion. Stalin also
stripped the three southern counties along the Black Sea coast
from Moldova and incorporated them in the Ukrainian Soviet Socialist
Republic. Romania sought to regain Bessarabia by joining with
Germany in the 1941 attack on the Soviet Union. However, Moldova
was ceded back to Moscow when hostilities between the U.S.S.R.
and Romania ceased at the end of World War II. The present boundary
between Moldova and Romania was established in 1947.
In September 1990, the Supreme Soviet elected Mircea Snegur as
President of the Soviet Socialist Republic of Moldova. A former
Communist Party official, he endorsed independence from the Soviet
Union and actively sought Western recognition. On May 23, 1991,
the Supreme Soviet renamed itself as the Parliament of the Republic
of Moldova, which subsequently declared its independence from
the U.S.S.R.
In August 1991, Moldova's transition to democracy initially had
been impeded by an ineffective Parliament, the lack of a new constitution,
a separatist movement led by the Gagauz (Christian Turkic) minority
in the south, and unrest in the Transnistria region on the left
bank of the Nistru/Dniester River, where a separatist movement
declared a "Transdniester Moldovan Republic" in September
1990. The Russian 14th Army intervened to stem widespread violence
and support the Transnistrian regime which is led by supporters
of the 1991 coup attempt in Moscow. In 1992, the government negotiated
a cease-fire arrangement with Russian and Transnistrian officials,
although tensions continue, and negotiations are ongoing. In February
1994, new legislative elections were held, and the ineffective
Parliament that had been elected in 1990 to a 5-year term was
replaced. A new constitution was adopted in July 1994. The conflict
with the Gagauz minority was defused by the granting of local
autonomy in 1994.
GOVERNMENT AND POLITICAL CONDITIONS
In 2000, Parliament passed a decree making Moldova a parliamentary
republic, with the president elected by Parliament instead of
by popular vote. Widespread popular dissatisfaction with previous
governments and economic hardship led to a surprise at the polls
in February 2001. In elections certified by international observers
as free and fair, slightly over half of Moldova's voters cast
their ballots for the Communist Party. Under the rules of Moldova's
proportional representation system, the Communist faction, which
in the previous Parliament consisted of 40 of Parliament's 101
seats, jumped to 71 -- a clear majority. The Parliament then elected
the leader of the Communist faction, Vladimir Voronin, to be President.
President Voronin's first term was marked by up and down relations
with the International Monetary Fund (IMF) and the World Bank.
Politically, the government was committed to the reduction of
poverty by allocating more resources to social safety net items
such as health, education, and increasing pensions and salaries.
Voronin proceeded with former President Lucinschi's plans to privatize
several important state-owned industries and even on occasion
broke with his own party over important issues. Under President
Voronin, relations with the United States have remained strong.
From January to April 2002, large demonstrations took place in
opposition to several controversial government proposals, including
expanded use of the Russian language in schools and its designation
as an official language. While the demonstrations were sometimes
tense, the government did not use force and ultimately agreed
to Council of Europe (CoE) mediation.
In March 2005 parliamentary elections, the Communist Party received
46.1% of the vote, or 56 seats in the 101-member Parliament --
more than enough for the 51-vote minimum required to form a government,
but short of the 61 votes necessary to elect a president. However,
President Voronin was re-elected with support from the Christian
Democratic Popular Party and from the Democratic and Social Liberal
party factions, after Voronin promised to deliver on needed reforms
and Euro-Atlantic integration for the country. Those factions
broke away from the Moldovan Democratic Bloc following the elections,
leaving the Our Moldova Alliance (AMN) of former Chisinau Mayor
Serafim Urechean as the second-largest party in Parliament with
26 seats.
Local elections in May and June 2003 -- the first nationwide
contests since the Communists came to power -- did not meet the
relatively high electoral standards set in previous Moldovan elections,
according to international observers. While the voting itself
generally met international standards, the government's behavior
in the campaign period -- including bias in state media, misuse
of administrative resources, and the arrests of two opposition
mayors -- represented a step backward. The Communists won the
largest share of votes, but lost in the country's highest-profile
race, for mayor of Chisinau. Former Mayor and AMN leader Serafim
Urechean decided to give up his mayoral seat to retain his mandate
as an elected parliamentarian in the March 2005 elections, as
Moldovan legislation prohibits holding both positions simultaneously.
Early mayoral elections for Chisinau were held in July 2005 but
were invalid due to low turnout.
In addition to state-sponsored media, there are several independent
newspapers, radio and television stations, and news services.
The independent media organizations, along with some that are
affiliated with political parties, often criticize government
policies. In August 2004, Teleradio Moldova (TRM) was officially
transformed from a state-owned company into a public broadcaster.
However, journalists and civil society representatives, who claimed
the process was nontransparent and meant to stack the new TRM
staff with those favorable to the government, met this move with
large protests. Peaceful assembly is allowed, though permits for
demonstrations must be obtained; private organizations, including
political parties, are required to register with the government.
Legislation passed in 1992 codified freedom of religion but required
that religious groups register with the government.
Transnistria
The population of the Moldovan region of Transnistria is approximately
40% Romanian/Moldovan, 28% Ukrainian, and 23% Russian. Separatist
forces maintain control of the Transnistrian region, which lies
along the Ukrainian border. Moldova has tried to meet the Russian
minority's demands by offering the region rather broad cultural
and political autonomy. The dispute has strained Moldova's relations
with Russia. The July 1992 cease-fire agreement established a
tripartite peacekeeping force comprised of Moldovan, Russian,
and Transnistrian units.
Negotiations to resolve the conflict continue, and the cease-fire
is still in effect. The Organization for Security and Cooperation
in Europe (OSCE) is trying to facilitate a negotiated settlement
and has had an observer mission in place for several years. In
July 2002, OSCE, Russian, and Ukrainian mediators approved a document
setting forth a blueprint for reuniting Moldova under a federal
system. Over the next year and a half, the settlement talks alternated
between periods of forward momentum and periods of no progress.
In February 2003, the U.S. and EU imposed visa restrictions against
the Transnistrian leadership. In April 2003, the Moldovan Government
and the Transnistrian authorities agreed to establish a joint
commission to draft a constitution for a reintegrated state. However,
fundamental disagreements over the division of powers remained,
and a settlement proved elusive.
In May 2003, Ukraine and Moldova reached an agreement under which
Ukraine would no longer recognize Moldova's obsolete customs stamps,
which were still being used by the Transnistrians; in reality,
however, the Moldovans exercise little control over their border
with Ukraine and illegal trade remains an issue in the region.
Moldova has continued to call for international monitoring of
the border.
In a surprise move, President Voronin decided not to sign a Russian-brokered
settlement with Transnistria in November 2003. The appearance
of the Russian proposal -- seen by many as pro-Transnistrian --
was enough to set off a brief wave of opposition protests. The
potential for continued protest over these contentious issues
remains. During the summer of 2004, the Transnistrian separatists
forcibly closed Romanian language Latin-script schools. These
actions were internationally condemned, and the OSCE Mission to
Moldova mediated a solution to the crisis; however, negotiations
on the larger conflict have since come to a standstill.
Russia has failed to remove weapons and munitions of the Operational
Group of Russian Forces (formerly the Russian 14th Army) stationed
in Transnistria, as required under the timetable set forth in
the 1999 Istanbul Accords, and this process remained stalled throughout
2004.
Principal Government Officials
President--Vladimir Voronin
Prime Minister--Vasile Tarlev
President of Parliament--Marian Lupu
Foreign Minister--Andrei Stratan
Ambassador to the United States--Mihai Manoli
Ambassador to the United Nations--Vsevolod Grigore
Moldova's embassy in the United States is at 2101 S Street NW,
Washington, DC 20008 (tel: 202-667-1130; fax 202-667-1204).
More information about Moldova can be found at the official (Romanian
and Russian language) Government of Moldova website at www.moldova.md.
The Moldova.org site is maintained by the Moldova Foundation,
a non-governmental organization, and has some useful links.
ECONOMY
Moldova remains the poorest country in Europe. It is landlocked,
bounded by Ukraine on the east and Romania to the west. It is
the second smallest of the former Soviet republics and the most
densely populated. Industry accounts for only 20% of its labor
force, while agriculture's share is more than one-third.
Moldova's proximity to the Black Sea gives it a mild and sunny
climate. This makes the area ideal for agriculture and food processing,
which accounts for about 40% of the country's GDP. The fertile
soil supports wheat, corn, barley, tobacco, sugar beets, and soybeans.
Beef and dairy cattle are raised, and beekeeping is widespread.
Moldova's best-known product comes from its extensive and well-developed
vineyards concentrated in the central and southern regions. In
addition to world-class wine, Moldova produces liqueurs and champagne.
It is also known for its sunflower seeds, walnuts, apples, and
other fruits.
Like many other former Soviet republics, Moldova has experienced
economic difficulties. Since its economy was highly dependent
on the rest of the former Soviet Union for energy and raw materials,
the breakdown in trade following the breakup of the Soviet Union
had a serious effect, exacerbated at times by drought and civil
conflict. The Russian ruble devaluation of 1998 had a deleterious
effect on Moldova's economy, but economic growth has been steady
since 2000.
Moldova has made progress in economic reform since independence.
The government has liberalized most prices and has phased out
subsidies on most basic consumer goods. A program begun in March
1993 has privatized 80% of all housing units and nearly 2,000
small, medium, and large enterprises. Other successes include
the privatization of nearly all of Moldova's agricultural land
from state to private ownership, as a result of an American assistance
program, "Pamint" ("land"), completed in 2000.
A stock market opened in June 1995.
Inflation was brought down from over 105% in 1994 to 11% in 1997.
Though inflation spiked again after Russia’s 1998 currency
devaluation, Moldova made great strides in bringing it under control:
18.4% in 2000, 6.3% in 2001, and 4.4% in 2002. In 2003 inflation
escalated again -- due mainly to a drought-driven rise in agricultural
prices -- reaching 15.7%, although it was reined in to 12.5 %
in 2004. The local currency appreciated considerably in 2003 and
the first months of 2004. By May, the leu had reached its highest
level since the end of 1999. After the National Bank of Moldova
increased considerably its purchases on the foreign exchange market,
the leu stabilized in November-December 2004 at 12.00-12.50 to
the U.S. dollar.
Moldova continues to make progress toward developing a viable
free-market economy. The country recorded its fifth consecutive
year of positive GDP growth in 2004, with year-end real GDP growth
of 8%. This growth is impressive considering that, prior to 2000,
Moldova had recorded only one year of positive GDP growth since
independence. Budget execution in 2004 was also impressive, as
actual consolidated budget revenues exceeded projections by 1.4%
for most of the year.
Privatization results in 2004 were not significant: several smaller
companies and one winery were privatized in 2004, but the government
postponed indefinitely the privatization of several larger state
enterprises, including two electricity distribution companies.
Sporadic and ineffective enforcement of the law, economic and
political uncertainty, and government harassment and interference
continue to discourage inflows of foreign direct investment.
Imports continued to increase more rapidly than exports during
the first nine months of 2004; Moldova’s terms of trade
worsened, as higher-priced energy imports outpaced the value of
Moldova’s main exports--agricultural and agro-processing
goods.
During 2002, Moldova rescheduled an outstanding Eurobond, in
the amount of $39.6 million, to avoid a potential default. In
May 2004, Moldova redeemed promissory notes with a total value
of $114.5 million to Russian Gazprom for just $50 million. Moldova
informed its bilateral creditors in mid-2003 that it would no
longer service its debts. The 2004 budget did provide funds for
external debt service (interest) at some 6% of the government
budget; the 2005 budget projects external debt service at some
4%. The International Monetary Fund (IMF) and World Bank resumed
lending to Moldova in July 2002, and then suspended lending again
in July 2003. Although Moldova passed a Poverty Reduction Strategy
in 2004, it has yet to reach an agreement with international financial
institutions.
DEFENSE AND MILITARY ISSUES
Moldova has accepted all relevant arms control obligations of
the former Soviet Union. On October 30, 1992, Moldova ratified
the Conventional Armed Forces in Europe Treaty, which establishes
comprehensive limits on key categories of conventional military
equipment and provides for the destruction of weapons in excess
of those limits. It acceded to the provisions of the nuclear Non-Proliferation
Treaty in October 1994 and to the Biological Weapons Convention
in December 2004. It does not have nuclear, biological, or chemical
weapons. Moldova joined the North Atlantic Treaty Organization's
Partnership for Peace on March 16, 1994. Due to Moldova's constitutional
neutrality, it is not a participant in the Commonwealth of Independent
States (CIS--a group of 12 former Soviet republics) Collective
Security Agreement.
FOREIGN RELATIONS
Moldova's Parliament approved the country's membership in the
Commonwealth of Independent States and a CIS charter on economic
union in April 1994.
In 1995, the country became the first former Soviet republic
admitted to the Council of Europe. In addition to its membership
in NATO's Partnership for Peace, Moldova also belongs to the United
Nations, the OSCE, the North Atlantic Cooperation Council, the
International Monetary Fund, the World Bank, and the European
Bank for Reconstruction and Development. Moldova is a member of
the World Trade Organization (WTO).
In 1998, Moldova contributed to the founding of GUAM, a regional
cooperative agreement made up of Georgia, Ukraine, and Azerbaijan,
in addition to Moldova. Although the agreement initially included
a declaration of mutual defense, Moldova has since declared its
disinterest in participating in any GUAM-based mutual defense
initiative. Moldova has been involved in information exchange,
trade and transportation, border control, and energy projects
issues within this regional agreement.
In the atmosphere of heightened international sensitivity to
terrorism following the events of September 11, 2001, Moldova
has been a supporter of American efforts to increase international
cooperation in combating terrorism. Moldova has sent demining
units and peacekeepers to participate in post-conflict humanitarian
assistance in Iraq.
U.S.-MOLDOVAN RELATIONS
The dissolution of the Soviet Union in December 1991 brought an
end to the Cold War and created the opportunity to build bilateral
relations with the 15 new states that had made up the former U.S.S.R.,
as they began political and economic transformation. The United
States recognized the independence of Moldova on December 25,
1991 and opened an Embassy in its capital, Chisinau, in March
1992. The current U.S. Ambassador to Moldova, Heather M. Hodges,
arrived at post in October 2003.
A trade agreement providing reciprocal most-favored-nation tariff
treatment became effective in July 1992. An Overseas Private Investment
Corporation agreement, which encourages U.S. private investment
by providing direct loans and loan guarantees, was signed in June
1992. A bilateral investment treaty was signed in April 1993.
Generalized system of preferences status was granted in August
1995, and some Eximbank coverage became available in November
1995.
[Fact sheet on FY 2005 U.S. Assistance to Moldova.]
Principal U.S. Embassy Officials
Ambassador--Heather M. Hodges
Deputy Chief of Mission--John Winant
Consular Officer--Marlin Hardinger
Management Officer--Charles Eaton
Political/Economic Officers--H. Martin McDowell, J. Larry Wright
Public Affairs Officer--Aleisha Woodward
Regional Security Officer--Cameron Burks
USAID Officer--John Starnes
The U.S. Embassy in Moldova is at Strada Alexei Mateevici #103,
Chisinau (tel: 373-22-40-83-00/23-37-72; fax: 373-22-23-30-44).
TRAVEL AND BUSINESS INFORMATION
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Consular Information Sheets, Travel Warnings, and Public Announcements.
Consular Information Sheets exist for all countries and include
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Travel Warnings are issued when the State Department recommends
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Free copies of this information are available by calling the Bureau
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202-647-3000. Consular Information Sheets and Travel Warnings
also are available on the Consular Affairs Internet home page:
http://travel.state.gov. Consular Affairs Tips for Travelers publication
series, which contain information on obtaining passports and planning
a safe trip abroad, are on the Internet and hard copies can be
purchased from the Superintendent of Documents, U.S. Government
Printing Office, telephone: 202-512-1800; fax 202-512-2250.
Emergency information concerning Americans traveling abroad may
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The National Passport Information Center (NPIC) is the U.S. Department
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passport information. Telephone: 1-877-4USA-PPT (1-877-487-2778).
Customer service representatives and operators for TDD/TTY are
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Travelers can check the latest health information with the U.S.
Centers for Disease Control and Prevention in Atlanta, Georgia.
A hotline at 877-FYI-TRIP (877-394-8747) and a web site at http://www.cdc.gov/travel/index.htm
give the most recent health advisories, immunization recommendations
or requirements, and advice on food and drinking water safety
for regions and countries. A booklet entitled Health Information
for International Travel (HHS publication number CDC-95-8280)
is available from the U.S. Government Printing Office, Washington,
DC 20402, tel. (202) 512-1800.
Information on travel conditions, visa requirements, currency
and customs regulations, legal holidays, and other items of interest
to travelers also may be obtained before your departure from a
country's embassy and/or consulates in the U.S. (for this country,
see "Principal Government Officials" listing in this
publication).
U.S. citizens who are long-term visitors or traveling in dangerous
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travel registration web site at https://travelregistration.state.gov
or at the Consular section of the U.S. embassy upon arrival in
a country by filling out a short form and sending in a copy of
their passports. This may help family members contact you in case
of an emergency.
Further Electronic Information
Department of State Web Site. Available on the Internet at http://www.state.gov,
the Department of State web site provides timely, global access
to official U.S. foreign policy information, including Background
Notes and daily press briefings along with the directory of key
officers of Foreign Service posts and more.
Export.gov provides a portal to all export-related assistance
and market information offered by the federal government and provides
trade leads, free export counseling, help with the export process,
and more.
STAT-USA/Internet, a service of the U.S. Department of Commerce,
provides authoritative economic, business, and international trade
information from the Federal government. The site includes current
and historical trade-related releases, international market research,
trade opportunities, and country analysis and provides access
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