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Lyudmila Fokina

RAS Institute of Economics

After the USSR collapsed Moldova plunged into permanent political and economic crisis. 20 years after the political elite is still indecisive – either to pursue the declared strategic goal of integration into Europe or to shift to the Eurasian integration.

After the USSR collapsed Moldova plunged into permanent political and economic crisis. 20 years after the political elite is still indecisive – either to pursue the declared strategic goal of integration into Europe or to shift to the Eurasian integration.

 The case for Moldova’s secession from the USSR before it disintegrated.

Soviet Moldova rushed to secede from the USSR even before the Union failed. It happened on June 23, 1990 when the Supreme Council of MSSR adopted the Declaration of independence. For this reason the republic refused to participate in the union-wide referendum on the preservation of the USSR. Following the resolution of the Parliament (May 23, 1991) the word “Soviet Socialist” were eliminated from the country’s name, based on the conclusions of a special commission established in Moldova on Molotov-Ribbentrop Pact that declared the creation of Moldova SSR illegal.

20 years after, when the liberals of the far right from the “Alliance for European integration” came to power, Moldova returned to the issue of its identity.

The main reason to secede from the USSR was the argument about ethnic identity of the Moldavians, identity of the official language of the country and the need to reunite with Romania. This argument became the key ideological slogan of the national movement “People’s Front of Moldova” that emerged in 1989. The movement was striving to convince the citizens that they are representatives of Romanian and not Moldavian nation, that Romanian language should become official one and that the main objective of Moldova Republic is the unification with Romania. 20 years after, when the liberals of the far right from the “Alliance for European integration” came to power, Moldova returned to the issue of its identity. The leader of the Liberal party M.Grimpu is a zealot of Romanian identity. While this issue continues to preoccupy the minds of political elite the risk to lose the ethnic identity and Moldavian nationhood is still high.  

 Failed expectations of Moldova

Soon after the USSR disintegration and Moldova’s shifting the emphasis on independent development, it became clear that the expected economic miracle and welfare will not come overnight. For twenty years the country was gripped by permanent political and economic crisis. It was, first of all, caused by the reforms carried out against the backdrop of broken links with the FSU economy and total absence of power resources. Secondly – the armed conflict in Transnistria (1992) caused a huge damage – a unified economic complex was split. Moldova suffered great damage having lost a part of its territory – Transnistria with its industrial potential and population. The combined impact of economic and political crisis resulted in the fall of GDP, decline in industrial output, hyperinflation and abrupt drop of living standards. Today the international community considers Moldova the poorest country in Europe. Till today is hasn’t regained the social and economic level of 1990. Despite the reforms, development and adoption of strategies and programs, the economy of sovereign Moldova hasn’t shown any progress by the 20-years anniversary.  The key reason is the absence of the effective mechanism able to change the current “model of economic growth without development”.  This model is based only on the increase of consumers’ demand, mainly covered by import, hard currency sent to the country by Moldavian migrant workers and financial assistance from international organizations. Problems faced by Moldova have become systemic. Got mired in   abusive practices and unable to elect the President for over two years, the ruling Alliance for European integration can not offer a strategic vision of how to shift to a new paradigm of development.

Political coloration of Moldova-Russia relations

During twenty year the relations between Moldova and Russia were going by fits and starts, ranging from the strategic partnership to the proclamation of the course for integration with Europe and spreading of Russophobic views aimed to deface the Soviet period in Moldavian history.

During twenty year the relations between Moldova and Russia were going by fits and starts, ranging from the strategic partnership to the proclamation of the course for integration with Europe and spreading of Russophobic views aimed to deface the Soviet period in Moldavian history.

The interest in the strategic partnership with Russia was brought to life by the objective factors, mainly by the absence of primary materials in Moldova. The republic found itself dependent from the supplies of Russian utilities (gas, petroleum products) and other goods necessary for the economic development – commercial timber, vehicles, pulp and paper products, pipes and some construction and agricultural machinery. In its turn, the Russian market is the key consumer of Moldavian agricultural products and wines.

Today the main stumbling block in the relations between Moldova and Russia is the presence (since 1991) of Russian military in Transnistria which violates the sovereignty of the republic. Moldova demands the immediate withdrawal of the troops and their replacement by international observers. Russia, that during all the years was mediating the negotiations to settle the conflict and guaranteeing the stability in the region, doesn’t accept this demand. Looking for the resolution of Transnistria problem Russia pursues the idea of maintaining Moldova’s territorial integrity in the form of a federal state.  

Over the last two years the attitude of the Alliance for European integration towards Russia has become aggressive and Russophobic.  It is evidenced by the attempts to institute a “Day of Soviet occupation” on June 28 (not recognized by the Constitutional Court of Moldova), to rename the ‘Victory Day’ into the ‘Last day of World War II’ etc.

Nevertheless, Russia still remains one of the major economic partners for Moldova. Moldavian side presses for the reduction of gas price, customs free transfer of Moldavian wines (Russia’s quality claims to the wine are regarded as politically motivated) and opening of outlets for Moldavian wines in regions of Russia. Russia also has some claims to Moldavian partners, i.e. the guarantees for the inviolability of property of Russian business (particularly in Transnistria) and protection of its interests in Moldova. Moscow is ready to reduce the gas price subject to the participation of Russia in investment project, e.g. privatization of Moldavian heat distribution networks. In political domain Russia is interested in the neutrality of Moldova on the international arena, in the presence of Russian troops in Transnistria until the conflict is settled. Russia is concerned by the fate of its compatriots in Moldova, the status of Russian schools and the Russian language. Moreover, with the long-standing political crisis the top priority for Russia is the establishment of a stable democratic power in the republic with the legitimately elected president to allow the country to build long-term and mutually beneficial relations.

The Future of Moldova-Russia relations

In the near future the step up in Moldova-Russia relations will depend on two fundamental documents: biannual program of intergovernmental cooperation approved by the XII meeting of Russian-Moldavian inter-governmental commission for economic cooperation (March 17, 2011) [2] and by the Agreement on the Free trade zone in CIS signed by Moldova at the summit of CIS heads of governments in St. Petersburg on October 18, 2011. The signing of this Agreement opens for the republic new possibilities for strengthening effective ties with Moscow. 

In fact, MR government now faces a choice – either to pursue the declared strategic goal, i.e. integration with Europe which is a long-term challenge or to move towards Eurasian integration. Moldova definitely understands that it will take of lot of years to meet the criteria of EU membership. At the same time, it’s too early to speak about a full Eurasian integration for Moldova. The pragmatic approach of Moldavian leadership and the EU position on further enlargement in the present critical conditions make the key factors which can push Moldova towards Moscow and Eurasian integration.

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Poll conducted

  1. In your opinion, what are the US long-term goals for Russia?
    U.S. wants to establish partnership relations with Russia on condition that it meets the U.S. requirements  
     33 (31%)
    U.S. wants to deter Russia’s military and political activity  
     30 (28%)
    U.S. wants to dissolve Russia  
     24 (22%)
    U.S. wants to establish alliance relations with Russia under the US conditions to rival China  
     21 (19%)
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