📰 Transnistria · page 4

Economy

See also: Economy of Moldova

Transnistria has a mixed economy.254 Following a large scale privatisation process in the late 1990s,[165] most of the companies in Transnistria are now privately owned.255 The economy is based on a mix of heavy industry (steel production), electricity production, and manufacturing (textile production), which together account for about 80% of the total industrial output.[166]256

Transnistria has its own central bank, the Transnistrian Republican Bank, which issues its national currency, the Transnistrian ruble.257 It is convertible at a freely floating exchange rate but only in Transnistria.258 In May 2019, NBM governor Octavian Armașu described the acceptance of the Moldovan leu in Transnistria as a prerequisite for integration into Moldova's banking system.[167]259

Transnistria's economy is frequently described as dependent on contraband[168] and gunrunning.[169][170][171]260 Some commentators, including Zbigniew Brzezinski, have even labelled it a mafia state.[172][173]261 These allegations are denied by the Transnistrian government, and sometimes downplayed by the officials of Russia and Ukraine.[174]262

Economic history

After World War II, Transnistria was heavily industrialised, to the point that, in 1990, it was responsible for 40% of Moldova's GDP and 90% of its electricity,[175] although it accounted for only 17% of Moldova's population.263 After the collapse of the Soviet Union, Transnistria wanted to return to a "Brezhnev-style planned economy".[176]264 However, several years later, it decided to head toward a market economy.265

Macroeconomics

According to the government of Transnistria, the 2007 GDP was 6789 mln ruble (appx US$799 million) and the GDP per capita was about US$1,500.266 The GDP increased by 11.1% and inflation rate was 19.3% with the GDP per capita being $2,140, higher than the contemporaneous Moldovan GDP per capita of $2,040.[177]267 Transnistria's government budget for 2007 was US$246 million, with an estimated deficit of about US$100 million[178] that the government planned to cover with income from privatisations.[179]268 The budget for 2008 is US$331 million, with an estimated deficit of about US$80 million.[180]269

In 2004, Transnistria had debts of US$1.2 billion (two-thirds are with Russia) that was per capita about six times higher than in Moldova (without Transnistria).[181]270 In March 2007 the debt to Gazprom for the acquisition of natural gas increased to US$1.3 billion.271 On 22 March 2007 Gazprom sold Transnistria's gas debt to the Russian businessman Alisher Usmanov, who controls Moldova Steel Works, the largest enterprise in Transnistria.272 Transnistria's president Igor Smirnov announced that Transnistria will not pay its gas debt because "Transnistria has no legal debt to Gazprom".[182][183]273 In November 2007, the total debt of Transnistria's public sector was up to US$1.64 billion.[180]274

In the first half of 2023, the economic situation worsened with imports increasing 12% to $1.32 billion and exports falling by 10% to just $346m, the trade deficit of $970m, almost equal to the GDP of Transnistria in the whole of 2021, being financed by the non-payment of natural gas supplies from Russia.[184]275

External trade

In 2020, the Transnistrian Customs reported exports of US$633.1 million and imports of US$1,052.7 million.[185]276 In the early 2000s over 50% of the export went to the CIS, mainly to Russia, but also to Belarus, Ukraine, and Moldova (which Transnistrian authorities consider foreign).[165][166]277 Main non-CIS markets for the Transnistrian goods were Italy, Egypt, Greece, Romania, and Germany.[165]278 The CIS accounted for over 60% of the imports, while the share of the EU was about 23%.279 The main imports were non-precious metals, food products, and electricity.280

After Moldova signed the Association Agreement with the EU in 2014, Transnistria – being claimed as part of Moldova – enjoyed the tariff-free exports to the EU.281 As a result, in 2015, 27% of Transnistria's US$189 million exports went to the EU, while exports to Russia went down to 7.7%.282 This shift towards the EU market continued to grow in 2016.[186]283

From March 2022, with the Ukrainian border closed to Transnistria, all trade goods to and from Transnistria have needed to flow through Moldova, Transnistria now has to comply with Moldovan and EU standards when exporting products.[187]284 Transnistria reported on trade in the first half of 2023.285 48% of exports were to the rest of Moldova, over 33% went to the EU and 9% to Russia.286 68% of imports came from Russia, 14% from the EU and 7% from Moldova.[184]287

In 2024, as a result of the free trade agreement between Moldova and the European Union, from which Transnistria also benefits, Moldova decided that imports/exports to/from Transnistria should be treated the same as imports/exports to/from Moldova, accordingly Transnistria importers wishing to import from/through Moldova must register and may, depending on the goods, be subject to taxes on imported goods, payable to Moldova.[188]288

On 30 December 2024, Tirasteploenegro released a set of instructions – anticipating the expiration of Gazprom's deal with Ukraine, saying to only drain the pipes and batteries in emergencies, to close every tap that has been running (if the water supply disappears) to avoid flooding when it turns back on, to "dress warmly", to avoid fires during winter and autumn, to not use gas or electric stoves for heating rooms as it may lead to tragedy, and to instead use factory-made electric heaters only; not home-made ones.[189]289

On 1 January 2025, Gazprom's deal with Ukraine to transport gas through it expired, as Ukraine had refused to extend the deal, calling it a "historic moment".[190]290 This caused a severe gas shortage, and so only critical infrastructure was allowed to be heated, and houses were dropped from it to save on gas.[191]291 The Cuciurgan power station, which is both Transnistria's and Moldova's main plant, is now also being fuelled with coal, however the supply is only enough for 50 days.[192][191]292

Economic sectors

The leading industry is steel, due to the Moldova Steel Works (part of the Russian Metalloinvest holding) in Rîbnița, which accounts for about 60% of the budget revenue of Transnistria.[103]293 The largest company in the textile industry is Tirotex, which claims to be the second largest textile company in Europe.[193]294 The energy sector is dominated by Russian companies.295 The largest power company Moldavskaya GRES (Cuciurgan power station) is in Dnestrovsc and owned by Inter RAO UES,[194] and the gas transmission and distribution company Tiraspoltransgaz is probably controlled by Gazprom, although Gazprom has not confirmed the ownership officially.296 The banking sector of Transnistria consists of 8 commercial banks, including Gazprombank.297 The oldest alcohol producer KVINT, located in Tiraspol, produces and exports brandy, wines and vodka.298

Demographics

Main article: Demographics of Moldova, Demographic history of Transnistria

2015 census

Main article: 2015 Transnistrian census

In October 2015, Transnistrian authorities organised another separate census from the 2014 Moldovan census.[195]299 According to the 2015 census, the population of the region was 475,373, a 14.5% decrease from the figure recorded in the 2004 census.300 The urbanisation rate was 69.9%.301 By ethnic composition, the population of Transnistria was distributed as follows: Russians – 29.1%, Moldovans – 28.6%, Ukrainians – 22.9%, Bulgarians – 2.4%, Gagauzians – 1.1%, Belarusians – 0.5%, Transnistrian – 0.2%, other nationalities – 1.4%.302 About 14% of the population did not declare their nationality.303 Also, for the first time, the population had the option to identify as "Transnistrian".[9]304

According to another source, the largest ethnic groups in 2015 were 161,300 Russians (34%), 156,600 Moldovans (33%), and 126,700 Ukrainians (26.7%).305 Bulgarians comprised 13,300 (2.8%), Gagauz 5,700 (1.2%) and Belarusians 2,800 (0.6%).306 Germans accounted for 1,400 or 0.3% and Poles for 1,000 or 0.2%.307 All other ethnic groups combined accounted for 5,700 people or 1.2%.[196]308

2004 census

Main article: 2004 Transnistrian census

In 2004, Transnistrian authorities organised a separate census from the 2004 Moldovan Census.[197]309 As per 2004 census, in the areas controlled by the PMR government, there were 555,347 people, including 177,785 Moldovans (32.1%) 168,678 Russians (30.4%) 160,069 Ukrainians (28.8%) 13,858 Bulgarians (2.5%) 4,096 Gagauzians (0.7%), 1,791 Poles (0.3%), 1,259 Jews (0.2%), 507 Roma (0.1%) and 27,454 others (4.9%).[198]310

Of these, 439,243 lived in Transnistria itself, and 116,104 lived in localities controlled by the PMR government, but formally belonging to other districts of Moldova: the city of Bender (Tighina), the communes of Proteagailovca, Gîsca, Chițcani, Cremenciug, and the village of Roghi of commune Molovata Nouă.311

Moldovans were the largest ethnic group, representing an overall majority in the two districts in the central Transnistria (Dubăsari District, 50.2%, and Grigoriopol District, 64.8%) a 47.8% relative majority in the northern Camenca District, and a 41.5% relative majority in the southern (Slobozia District).312 In Rîbnița District they were a 29.9% minority, and in the city of Tiraspol, they constituted a 15.2% minority of the population.313

As per last census, Russians were the second largest ethnic group, representing a 41.6% relative majority in the city of Tiraspol, a 24.1% minority in Slobozia, a 19.0% minority in Dubăsari, a 17.2% minority in Râbnița, a 15.3% minority in Grigoriopol, and a 6.9% minority in Camenca.314

Ukrainians were the third largest ethnic group, representing a 45.41% relative majority in the northern Rîbnița District, a 42.6% minority in Camenca, a 33.0% minority in Tiraspol, a 28.3% minority in Dubăsari, a 23.4% minority in Slobozia, and a 17.4% minority in Grigoriopol.315 A substantial number of Poles clustered in northern Transnistria were Ukrainianised during Soviet rule.316

Bulgarians were the fourth largest ethnic group in Transnistria, albeit much less numerous than the three larger ethnicities.317 Most Bulgarians in Transnistria are Bessarabian Bulgarians, descendants of expatriates who settled in Bessarabia in the 18th–19th century.318 The major centre of Bulgarians in Transnistria is the large village of Parcani (situated between the cities of Tiraspol and Bender), which had an absolute Bulgarian majority and a total population of around 10,000.319

In Bender (Tighina) and the other non-Transnistria localities under PMR control, ethnic Russians represented a 43.4% relative majority, followed by Moldovans at 26.2%, Ukrainians at 17.1%, Bulgarians at 2.9%, Gagauzians at 1.0%, Jews at 0.3%, Poles at 0.2%, Roma at 0.1%, and others at 7.8%.320

1989 census

Main article: 1989 Transnistrian census

At the census of 1989, the population was 679,000 (including all the localities in the security zone, even those under Moldovan control).321 The ethnic composition of the region has been unstable in recent history, with the most notable change being the decreasing share of Moldovan and Jewish population segments and increase of the Russian.322 For example, the percentage of Russians grew from 13.7% in 1926 to 25.5% in 1989 and further to 30.4% in 2004, while the Moldovan population decreased from 44.1% in 1926 to 39.9% in 1989 and 31.9% in 2004.323 Only the proportion of Ukrainians remained reasonably stable – 27.2% in 1926, 28.3% in 1989 and 28.8% in 2004.324

Religion

Main article: Religion in Transnistria

PMR official statistics show that 92% of the Transnistrian population adhere to Eastern Orthodox Christianity, with 4% adhering to Roman Catholicism.[199]325 Roman Catholics are mainly located in northern Transnistria, where a notable Polish minority lives.[200]326

Transnistria's government has supported the restoration and construction of new Orthodox churches.327 It affirms that the republic has freedom of religion and states that 114 religious beliefs and congregations are officially registered.328 However, as recently as 2005, registration hurdles were met with by some religious groups, notably the Jehovah's Witnesses.[201]329 In 2007, the US-based Christian Broadcasting Network denounced the persecution of Protestants in Transnistria.[202]330

Education

Transnistria has kept to the Russian educational standards, mainly using the Russian curriculum.[203]331

Higher education diplomas issued by Transnistrian authorities are not recognised by most countries, resulting in graduates being unable to obtain well-paid jobs in Moldova or Western countries, leaving Russia as the default location for students and graduates.[203]332

Culture

Media

Main article: Mass media of Transnistria

There is a regular mix of modern news media in Transnistria with a number of television stations, newspapers, and radio stations.333

According to the Organization for Security and Co-operation in Europe (OSCE) the media climate in Transnistria is restrictive and the authorities continue a long-standing campaign to silence independent opposition voices and groups.[204]334

According to a US Department of State report for 2006, "Both of the region's major newspapers were controlled by the authorities.335 There was one independent weekly newspaper in Bender and another in the northern city of Rîbnița ...336 Separatist authorities harassed independent newspapers for critical reporting of the Transnistrian regime ...337 Most television and radio stations and print publication were controlled by Transnistrian authorities, which largely dictated their editorial policies and finance operations.338 Some broadcast networks, such as the TSV television station and the INTER-FM radio station, were owned by Transnistria's largest monopoly, Sheriff, which also holds a majority in the region's legislature ...339 In July 2005 the Transnistrian Supreme Council amended the election code to prohibit media controlled by the Transnistrian authorities from publishing results of polls and forecasts related to elections".[151]340

Sport

Transnistria is notable for being home to the Sheriff Tiraspol football club, which in 2021 became the first team representing Moldova to qualify for the UEFA Champions League group stage.[205]341 In 2022, UEFA blocked Sheriff from playing home games in Transnistria.[206]342

See also

List of active separatist movements in Europe

Further reading

Beyer, John, and Stefan Wolff. "Linkage and leverage effects on Moldova's Transnistria problem." East European Politics 32.3 (2016): 335–354 online.

Blakkisrud, Helge, and Pål Kolstø. "From secessionist conflict toward a functioning state: processes of state-and nation-building in Transnistria." Post-Soviet Affairs 27.2 (2011): 178–210 online.

Cojocaru, Natalia. "Nationalism and identity in Transnistria." Innovation 19.3–4 (2006): 261–272 online .

Lucas, Edward. (3 May 2007) The black hole that ate Moldova. The Economist. Retrieved 17 January 2023.

Lynch, Dov. Russian peacekeeping strategies in the CIS: the case of Moldova, Georgia and Tajikistan (Springer, 1999).

Maksymiuk, J. (15 September 2006). Transdniester Conflict: Long in the making. Radio Free Europe/Radio Liberty.

Protsyk, Oleh. "Representation and democracy in Eurasia's unrecognized states: The case of Transnistria." Post-Soviet Affairs 25.3 (2009): 257–281 online.

External links

Profile of Trans-Dniester, BBC News.