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Country Commercial Guides FY 2000: Moldova Report prepared by U.S. Embassy Chisinau, released July 1999 Note*

Chapter III: Political Environment

A. Political Overview

Moldova gained its independence from the Soviet Union in 1991. In 1994 it adopted a constitution which provides for a multi-party representative government with power divided among a president, cabinet, parliament, and judiciary. President Petru Lucinschi began his four-year term in January 1997. In the March 1998 parliamentary elections, four center and center-right parties won sixty-one seats and formed a coalition government. Prime minister Ion Ciubuc retained his office. The Communist Party won the remaining forty seats and is in the opposition. A new parliament was elected for a 4-year period in elections held on march 22, 1998. International observers considered the elections to be free and fair, although Transnistrian authorities blocked busses carrying citizens who were heading for the right bank of Moldova to cast their ballots. In March 1999, the Moldovan parliament voted in a new prime minister, Ion Sturza, after the resignation of Ciubuc.

B. Separatist Regions

1. Transnistria

Moldova remains divided, with a separatist Transnistrian region along the Ukrainian border controlled primarily by ethnic Slavs. The Organization For Security And Cooperation In Europe (OSCE), the Russian Federation, and Ukraine act as mediators to resolve the conflict. The two sides have generally observed the cease-fire of July 1992, which ended armed conflict between them, but progress toward a comprehensive settlement has been slow at best.

The separatist regime of Transnistria heavily affects the business climate in the region. Business entities located in the region are not registered with the Moldovan registration chamber and are not controlled by Moldovan fiscal authorities. The region is heavily used for various fiscal evasions while importing and exporting goods to the NIS region. Post assistance for American business located in that region is also limited. Post is unable to advocate for U.S. businesses with the Transnistrian authorities and is unable to provide regular consular protective services (in case of arrests, for example).

2. Gagauzia

A Christian Turkish minority, the Gagauz, enjoy local autonomy in the southern part of the country.