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Reference ID	Created	Released	Classification	Origin
08CHISINAU418	2008-04-16 14:48	2011-08-30 01:44	UNCLASSIFIED//FOR OFFICIAL USE ONLY	Embassy Chisinau

VZCZCXRO9751
RR RUEHAG RUEHAST RUEHDA RUEHDF RUEHFL RUEHIK RUEHKW RUEHLA RUEHLN
RUEHLZ RUEHPOD RUEHROV RUEHSR RUEHVK RUEHYG
DE RUEHCH #0418 1071448
ZNR UUUUU ZZH
R 161448Z APR 08
FM AMEMBASSY CHISINAU
TO RUEHC/SECSTATE WASHDC 6568
INFO RUEHZL/EUROPEAN POLITICAL COLLECTIVE

UNCLAS CHISINAU 000418 
 
SIPDIS 
 
SENSITIVE 
 
SIPDIS 
 
STATE FOR EUR/UMB 
 
E.O. 12958: N/A 
TAGS: ECON PGOV PBTS ETRD MD
SUBJECT: FIRST QUARTER TRANSNISTRIAN TRADE GROWS 
 
REF: CHISINAU 130 
 
SENSITIVE BUT UNCLASSIFIED; PLEASE PROTECT ACCORDINGLY 
 
¶1. (SBU) SUMMARY: The Government of Moldova's (GOM) Transnistrian 
(TN) trade data show significant increases in certified exports 
(+30%) and imports (+22%) documented by the Moldovan Customs Service 
(MCS) in the first quarter.  Since January, 26 more TN companies 
have registered with Chisinau, increasing the total number of 
registered TN entities to 409.  Steel products, light manufacturing, 
cement and electricity account for 93.2% of all TN exports. 
Chisinau continues to facilitate legal TN trade, providing 
registered TN enterprises equal access to Moldovan trade preferences 
(reftel).  END SUMMARY. 
 
TN COMPANIES CONTINUE TO REGISTER WITH CHISINAU 
--------------------------------------------- -- 
 
¶2. (SBU) According to the Ministry of Reintegration, 26 TN 
enterprises registered with Chisinau in the first quarter of 2008 
(20 temporarily and 6 permanently).  This increased the total number 
of registered TN enterprises to 409 (258 temporarily and 151 
permanently).  More than 7,300 customs declarations (on exports) 
were filed by 60 TN enterprises with the MCS during this quarter. 
About 30% of the declarations were for exports to the EU.  The vast 
majority (89%) of exports were from Moldova Steel Works (MMZ) and 
Ribnitsa Cement.  MCS processed 1,076 customs declarations filed by 
37 TN enterprises, of which 32 declared imports of raw materials for 
production. 
 
(LEGAL) TN TRADE EXPANDS 
------------------------ 
 
¶3. (SBU) Total first quarter TN trade documented by the MCS was 
valued at Moldovan Lei (MDL) 2.65 billion (about USD 238 million), a 
30% increase compared with 2007.  (NOTE: The average official 
exchange rate January-March was MDL 11.11 per USD.  END NOTE.) 
Exports totaled MDL 2.34 billion (about USD 210 million) and imports 
equaled MDL 315 million (about USD 31.5 million).  Transnistria's 
main exports continue to be steel products from MMZ, which account 
for 62%, and light manufacturing (apparel, footwear and textiles 
mainly from Tirotex), which accounts for 15.5% of the total 
certified exports.  Other exports include cement from the Ribnitsa 
Cement Factory (11.4%), industrial machinery (5.2%), and electricity 
from the Moldavskaya GRES power plant (4.7%). 
 
¶4. (SBU) According to the GOM, the Moldovan Chamber of Commerce and 
MCS issued 597 certificates of origin to 39 TN enterprises, 
including 442 preferential and 155 non-preferential certificates. 
Preferential trade certificates included 230 Type "A" for access to 
the EU and Turkey, 97 Type "EUR-ATP" for access to the EU via the 
new autonomous trade preference (ATP), 68 Type "CT-1" certificates 
for access to the CIS, and 47 Type "EUR-CEFTA" certificates for 
access according to the Central European Free Trade Agreement.  The 
GOM also processed requests for refunds on VAT and customs duties 
from four TN enterprises for the period January-February, refunding 
MDL 7.4 million (about USD 666,000).  (NOTE: The GOM refunds VAT and 
customs duties on imports of production inputs bound for export 
products.  END NOTE.) 
 
COMMENT 
------- 
 
¶5. (SBU) The GOM continues to deliver on its promise to facilitate 
trade for registered TN companies.  Although the number of 
registered TN economic entities continues to grow, four large 
companies (MMZ Steel Works, Tirotex, Ribnitsa Cement, and 
Moldavskaya GRES power plant) account for 85% of total exports. 
We've previously noted the difficulties these companies face, most 
notably increased transportation costs because of railroad 
re-routing and customs procedures.  However, it seems these 
companies realize that the road to preferential trade passes through 
Chisinau. END COMMENT. 
 
KIRBY

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Viewing cable 08CHISINAU418, FIRST QUARTER TRANSNISTRIAN TRADE GROWS