Transnistria asking for Russia's financial assistance although it fails to pay for gas

31 October 2007
The Transnistrian MPs are set to call on the lawmakers of the Russian State Duma to provide Tiraspol with 60 million dollars in financial assistance, because of the precarious financial situation in the breakaway region. A proposal to this effect has been made by the speaker of the self-proclaimed Transnistrian Moldovan republic, Yevgeniy Shevchuk.

The region’s economics minister, Yelena Chernenko, stated late last September that Transnistria needs a 65-million-dollar financial assistance to cope with the crisis. “This money is strictly necessary. We are ready to call on the leadership of several states to help us, but first and foremost we are calling on the Russian Federation,” Chernenko said.

“We need 35 million euros to cover losses in agriculture and to solve the inflation problem, both triggered by the increase in foodstuff prices caused by this year’s drought. Without foreign assistance, we will have hard times solving these problems,” Chernenko added.

Earlier, the Tiraspol authorities ruled to no longer pay for Russian gas in order to be able to pay retirement benefits, transferring to the pension fund the amount of 14 million dollars paid by gas consumers. Accordingly, in the first half of 2007 alone, the region amassed 102.6-million-dollar debts to the Russian gas giant Gazprom, with payments standing at only seven per cent.

In 2006, the Russian Federation provided Tiraspol with financial assistance of over 80 million dollars, grounding its decision on “the economic blockade imposed by Moldova through the new customs regime on goods produced in the region”. In 2007, Russia gave up this practice [because of misappropriation of these means, according to some reports], but with the Russian election campaign getting closer, it is possible that the breakaway region will receive the required assistance.



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