AGP Executive Report

EU Accession Momentum: EU member states agreed to open the first accession negotiation cluster with Ukraine and Moldova, with talks set to start Monday in Luxembourg, focusing on “fundamentals” like rule of law, democratic institutions, justice, and core rights—an important shift from symbolism to detailed scrutiny. Energy Market Upgrade: Moldelectrica activated balancing services for the first time using hybrid photovoltaic plants with electricity storage (50 MW in Radeni and 40 MW in Negureni), supporting grid stability and showing storage can help balance renewables. Electricity Costs Clarified: Moldova’s energy regulator (ANRE) says regulated electricity prices for end consumers won’t change, stressing draft prices apply only to last-resort supply situations. Anti-Fraud Pressure: Parliament hearings report 754 phone-fraud cases in Moldova, with authorities and banks discussing stronger protections and legislative fixes. Business & Investment Links: Over 120 leaders met at the BENELUX–Republic of Moldova Business Forum in Maastricht to build new partnerships, especially in agri-food and logistics. Diplomacy for Trade: Moldova opened an honorary consulate in Roskilde, Denmark, aiming to boost economic, cultural, and tourism cooperation and support the Moldovan community.

EU Accession Momentum: EU member states agreed to open the first EU accession negotiation cluster with Ukraine and Moldova next week, starting with “fundamentals” covering rule of law and democratic institutions—while leaders avoided any clear accession timetable. Energy Market & Grid Stability: Moldelectrica activated, for the first time, balancing services from hybrid solar plants with storage (50 MW Rădeni, 40 MW Negureni), showing how renewables plus storage can stabilize the grid; ANRE also clarified regulated electricity prices for end users won’t change. Energy Security: Government approved higher gas security stocks for both banks of the Dniester, including a 15% storage obligation for Transnistria. Anti-Fraud Push: Parliament hearings heard that phone and online fraud is surging—754 cases in hand, losses rising sharply—and a bill would require SIM identification at activation to curb anonymous use. Business & Trade: Moldova won the right to export hatching eggs to Ukraine after an audit; poultry exports could expand as producers gain access to a new market. Housing Watch: New housing completions fell to a historic low, with commissioning projected to stay weak in 2026.

Energy Market & Grid Stability: Moldelectrica activated balancing services for the first time using hybrid solar plants with storage in Rădeni (50 MW) and Negureni (40 MW), cutting output up to 25 MW to keep the grid balanced. Energy Regulation: Moldova’s energy regulator (ANRE) says regulated electricity prices for end consumers won’t change, clarifying that draft prices only cover the “last-resort” supply service for customers temporarily without a provider. EU Accession Momentum: EU ambassadors agreed to open the first phase of accession talks with Ukraine and Moldova, with the first “fundamentals” cluster set to start June 15; leaders avoided a clear accession date but stressed a merit-based, progress-driven process. Gas Security: The government approved higher gas security stocks and a 15% storage obligation for Transnistria, aiming to strengthen supply continuity on both banks. Trade & Agriculture: Moldova won approval to export hatching eggs to Ukraine after an audit of sanitary and traceability requirements. Consumer Protection & Fraud: Moldova is tightening rules to curb phone fraud by requiring SIM subscriber identification at activation, as losses and blocked scam calls continue to rise. Business & Investment Outreach: Moldova promoted investment reforms at the Moldova–Benelux Forum in Maastricht and discussed new cooperation opportunities with China’s Guangdong Province.

Energy Security & Infrastructure: Moldova approved a near-6.5 million m³ boost to natural gas security stocks for the 2026–2027 heating season, targeting 56.3 million m³, while also tightening rules for Transnistria’s required storage (at least 15% of average annual regional consumption). Power Grid Upgrade: Construction at the Vulcănești Electrical Substation is completed and teams are preparing connections at Chisinau’s substation to energize the Vulcănești–Chișinău “Independence Line,” aimed at reducing energy blackmail risk. Tax & Investment Climate: The government submitted the 2027 fiscal policy for public consultation, pitching a simpler, more competitive tax system—lower wage-related personal income tax for incomes under 1 million lei, faster VAT refunds, and a 0% rate on reinvested (undistributed) profit. Agriculture & Water: With World Bank support under AGGRI, three modernized irrigation systems will connect about 1,900 hectares in Briceni district, including new pumping stations and reservoir upgrades. Business & Trade: Moldova presented its customs reform and trade facilitation push at a CEFTA regional forum, focusing on green corridors, AEO programs, and digitized customs procedures aligned with EU rules. Skills & Jobs: Moldova joined WorldSkills Europe, gaining access to European vocational standards and business-linked training modernization. Regional Cooperation: PM Alexandru Munteanu agreed with Bulgaria to host an autumn economic forum in Chisinau on IT, agri-food, and energy partnerships. Aviation & Mobility: Wizz Air will keep all 11 A321XLRs on its own network, including deployments at airports in Moldova and the region.

Defense & Climate Risk: Parliament speaker Igor Grosu links a drone crash near Lopatna to Russia’s war and urges Moldova to keep investing in defense, while also calling on mayors to urgently unclog drainage channels ahead of heavy rains to prevent flooding. Energy Security: Government boosts natural gas security stocks by 6.5 million m³ to 56.3 million m³ for 2026–27 and extends stock obligations for Transnistria; meanwhile, Vulcănești Electrical Substation construction is finished and ready for energization. Agriculture & Water: About 1,900 hectares in Briceni will be connected to modernized irrigation after World Bank-funded works worth about $11.8m. Tax & Business Climate: Moldova submits its 2027 fiscal policy for public consultation, aiming for a simpler, more competitive tax system (including a 0% rate on reinvested profit and faster VAT refunds). EU-facing Growth: PM says Moldova’s June 4 Moldova–EU Investment Conference delivered €1bn in announced investments; Moldova also plans a joint economic forum with Bulgaria next autumn (IT, agri-food, energy). Local Development: DAR 1+3 allocates 10m lei for 33 community projects, from solar and biomass heating to water and road upgrades. Media Reform: Parliament advances a new Mass Media Law aligned with EU standards.

Inflation Watch: Moldova’s headline inflation stayed steady at 6.8% y/y in May, after a 0.36% m/m rise; food was up 5.7% y/y, services 7.5%, while utility inflation cooled to 2.0% y/y as electricity tariff hikes were offset by lower gas prices. Chisinau Infrastructure: Mayor Ion Ceban launched an international tender to modernize Industrial Street, covering about 4.2 km and aiming to improve traffic flow and connectivity, with bids due July 24. EU Accession & Lawmaking: MPs set June 11’s plenary agenda, including EU-labelled drafts on anti-corruption and media rules aligned with European standards. Diplomacy & Trade Links: Prime Minister Alexandru Munteanu met Bulgaria’s Rumen Radev and Serbia’s Djuro Macut, pushing deeper economic cooperation alongside EU integration. Energy & Power Grid: Energy Minister Dorin Junghietu confirmed the Vulcănești–Chișinău overhead line project deadline remains June 30, 2026. Business & Investment: TeraPlast agreed to expand into Spain by acquiring Aliaxis’s MASA polyethylene pipes business. Markets & Culture: Moldovan wine won 66 medals at the Concours Mondial de Bruxelles 2026, reinforcing the sector’s export and jobs role.

Black Sea diplomacy: Moldova’s PM Alexandru Munteanu met Bulgaria’s Rumen Radev in Sofia to discuss political dialogue, European accession momentum, and support for the Bulgarian community in Moldova, including protection of language and culture and plans to develop the Taraclia branch of Angel Kanchev University. Regional trade push: Munteanu also held talks with Serbia’s Djuro Macut, focusing on boosting political dialogue and strengthening bilateral and economic cooperation, including trade exchanges and draft agreements. EU integration & governance: Moldova’s Foreign Policy Committee approved two new ambassador nominations—Inga Ionesii (to India) and Sergiu Gurduza (to Portugal)—as Chisinau continues building its international economic ties. Energy infrastructure: Energy Minister Dorin Junghietu inspected the Chișinău Electrical Substation and confirmed the Vulcănești–Chișinău line completion deadline remains 30 June 2026, a World Bank-financed project aimed at covering over half of Moldova’s peak consumption. Business expansion: TeraPlast agreed to acquire Aliaxis’s MASA polyethylene pipes business in Spain, signaling a push deeper into Western Europe and North Africa. Agriculture & labor: Berry growers report worsening labor shortages, with fewer workers arriving from third countries than usual, threatening harvest capacity. Crypto risk watch: A new report warns stablecoin attacks are shifting toward custody and infrastructure weaknesses, while also flagging how stablecoins can be used to evade sanctions. Wine exports: Moldovan wines won 66 medals at the Concours Mondial de Bruxelles 2026, reinforcing the sector’s role in agriculture and jobs. Education investment: A World Bank-backed project equipped a central Moldova gymnasium with interactive IT devices for 180 students and 16 teachers.

Moldova–Hungary Diplomacy: Deputy PM and Foreign Minister Mihai Popsoi spoke by phone with Hungary’s newly appointed FM Anita Orbán, congratulating her and agreeing to hold interministerial consultations and a joint economic commission meeting, with both sides stressing support for Moldova’s EU accession and plans for concrete bilateral projects. Energy Market Momentum: Moldova’s OPEM power exchange logged a new record day on the day-ahead market, with over 304 MWh traded and prices ranging from 68.5 to 82 bani/kWh, as buy-sell activity matched solar generation profiles. Electric Mobility Push: Authorities say the number of electric cars in Moldova could double by 2030 and are preparing a roadmap to expand charging infrastructure, backed by a UNDP Moldova project financed by Denmark. Appliance Recycling Drive: Over 300 tons of used refrigerators and washing machines were collected under the EcoVoucher Programme, with shipments for recycling and a focus on cutting energy bills and landfill waste. Fraud Crackdown: Chisinau police seized more than 5 million lei after searches in a fraud case; five suspects were detained over a scheme involving fake “emergency” calls and loan transfers. EU Sanctions Watch: The EU unveiled its 21st Russia sanctions package, including a proposed EU-wide entry ban for people who served in the Russian armed forces since the 2022 invasion, alongside tighter energy, finance, crypto and shadow-fleet measures. Customs Alignment: Moldova’s Customs Service is working with Romanian experts to harmonize its customs code with EU rules, supported by the European Commission’s TAIEX instrument. Regional Security & Reintegration: Valeriu Chiveri met French senators to discuss Transnistria, regional security and Ukraine’s impact, reaffirming Moldova’s reintegration priorities and confidence-building steps.

EU Sanctions & Security: The European Commission unveiled its 21st Russia sanctions package, tightening energy, finance and crypto curbs and proposing an EU-wide entry ban for people who served in the Russian Armed Forces since the 2022 invasion. Moldova Energy Market: Moldova’s OPEM power exchange hit a new record for day-ahead trading volume (over 304 MWh), with prices ranging 68.5–82 bani/kWh. Energy Transition & Efficiency: The EcoVoucher Programme has collected over 300 tons of used appliances for recycling, exporting equipment to Romania and helping households swap old, energy-hungry devices. Urban Mobility: Moldova’s deputy PM studied France’s tram and public transport modernization in Paris, focusing on operations, safety and passenger access. Customs & EU Alignment: Moldova’s Customs Service is working with Romanian experts to align its customs code with EU rules, drafting implementation steps and legislative amendments. Fraud Crackdown: Chisinau police detained five suspects in a fraud case after seizing over 5 million lei tied to fake “emergency” calls and bank loans. EU Accession Momentum: Von der Leyen said the first negotiation cluster for EU talks with Moldova and Ukraine will open soon. Business & Payments: T2 (Rostelecom) launched international money transfers via its app to multiple CIS and Asia destinations, including Transnistria. Diplomacy: Foreign Minister Mihai Popsoi spoke with Hungary’s new foreign minister, agreeing on future consultations and economic cooperation meetings.

EU-Moldova Investment Push: Moldova’s first Moldova–EU Investment Conference delivered a portfolio of over €1bn in investment partnerships and projects, with officials framing it as faster economic transformation and EU-level competitiveness. Energy Infrastructure: Progress continues on the Chisinau Electrical Substation under the Vulcanesti–Chisinau interconnection, with Romania calling itself a reliable partner for Moldova’s energy security and ENTSO-E alignment. Local Development: Sarata Galbena commune in Hîncești received over 27m lei to expand sewage networks and modernize roads, connecting public institutions and households. Green Finance for SMEs: A €10m programme is opening a call for proposals to support Moldovan SMEs and start-ups for inclusive green transition, including eco-innovations, circular economy and renewable/efficiency solutions. Air Connectivity: Eugen Doga International Airport reported 538,125 passengers in May (+42,307), with growth on key business and city-break routes. Labour & Integration: Moldova and Switzerland advanced a labour and employment roadmap aimed at aligning policies with European standards and reducing informal work. Policy Watch: Parliament is set to examine a Socialist proposal to create a Moldova Investment and Modernization Bank.

EU Accession Momentum: EU Enlargement Chief Marta Kos says Poland’s objections to Ukraine’s first accession cluster are “solved,” with formal talks set to open June 15—an acceleration that also keeps Moldova’s own EU track in focus. Moldova–EU Investment Push: Moldova hosted its first Moldova–EU Investment Conference, with officials citing over €1bn in announced investment partnerships and projects, while Luxembourg MPs visiting Chisinau pledged continued support for Moldova’s European path. Green Transition Funding: UNDP and the EU will back five Moldovan recycling firms with up to €425,000 to expand recycling capacity, and a €10m green-transition program is launching non-financial support for SMEs and start-ups. Education Modernization Loan: Moldova is moving to access a €40m EIB loan to modernize 20 rural model schools, targeting energy efficiency, digital learning, and safer facilities. Labour & Skills Cooperation: Moldova and Switzerland signed a 2026–2029 roadmap on labour and employment, aiming to cut undeclared work and align policies with European standards. Banking & Capital Markets: Iute’s EUR 300m bond volume (due 2030) has reached benchmark size after a EUR 140m tap issue, supporting growth of its digital banking plans. Retail Payments Rule: From July, certain businesses will face mandatory card payments, with fines of 4,000–6,000 lei per case for non-compliance. Transport & Connectivity: Chisinau’s Eugen Doga airport served 538,125 passengers in May, up 42,307 year-on-year, with growth on routes to Yerevan, Barcelona, Berlin, Brussels, Prague and Athens.

EU Accession Momentum: Moldova is set to keep moving toward EU talks as the EU-Western Balkans push gathers pace, with leaders in Montenegro backing faster, more practical integration steps for candidates. Energy Modernization: Moldova Digital Summit 2026 highlighted plans to digitalize energy invoices with smart meters in the next five years, aiming for real-time consumption data and fewer estimated bills. Agribusiness Exports: EU Commissioner Marta Kos visited a cherry farm in Moldova’s Slobozia-Dusca, spotlighting EU market access for local producers and rural jobs. Rural Support for Farmers: FAO launched Farmer Field Schools in Hâncești to help small vegetable growers boost productivity, climate resilience, and market access. Banking & Investment Debate: A bill-backed push for a state development bank argues Moldova’s banking sector is overly consumer-focused and concentrated among foreign owners, calling for more financing for industry and risky strategic sectors. Weather Disruption: Heavy rains flooded homes and blocked roads across multiple districts, including Chisinau, prompting dozens of emergency responses. Cross-border Cooperation: Azerbaijan and Moldova expanded agriculture cooperation, including trade, technology transfer, and winemaking links.

EU Accession Momentum: Moldova’s formal EU accession talks are set to begin June 15, but the road still looks rocky as Russia pushes back hard on any “unification with Romania” narrative. Energy & Digital Services: Moldova is moving toward smart energy meters and digitalized invoices within five years, aiming for real-time consumption data and more transparent billing. Agriculture & Exports: EU Commissioner Marta Kos visited a cherry producer in Moldova, highlighting EU market access; meanwhile, FAO is launching farmer field schools to boost climate-resilient vegetable production and market reach. Investment & Risk: Moldova’s investment risk outlook worsened in a global index, while the country’s EU-linked reserve and funding dynamics show continued support flows. Weather Disruptions: Heavy rains flooded homes and damaged roads across multiple districts, triggering dozens of emergency calls. Local Development: UN Women’s “Women for Peace and Prosperity” supported community upgrades from sports facilities to safer markets and bus stops. Regional Trade Ties: Moldova and Azerbaijan expanded agriculture cooperation, including technology transfer and trade in farm products.

EU-Moldova Agriculture & Environment: EU Enlargement Commissioner Marta Kos visited the Dniester area with Moldova’s environment minister, focusing on river pollution linked to Russia’s war and EU support for cleanup efforts. Agri Exports: Kos also toured a cherry farm in Slobozia-Dusca, highlighting new exports to the EU and the push to meet EU market standards. Local Services Upgrade: EU support for mayors continues, with plans to modernize 20 more schools and fund community projects under the European Village programme. Energy Digitalization: Moldova plans smart meters over the next five years, aiming for real-time consumption data, fewer estimated invoices, and better grid-loss detection. Farmer Training: FAO launched Farmer Field Schools in Hancesti to help small vegetable growers use climate-resilient practices and improve market access. Banking Reform Debate: A bill-backed push would create a state development bank, arguing Moldova’s banking sector is overly consumer-focused and dominated by foreign investors. Diaspora & Jobs: Over 1,000 Moldovans abroad registered for the June 11 Online Career Fair, linking diaspora talent with local employers. Trade & Business Links: “Republic of Moldova presents” opened in Vaslui, bringing 60 Moldovan companies to Romania for B2B meetings and product promotion.

EU Accession Momentum: Moldova’s EU path stayed in focus as Commissioner Marta Kos met mayors and backed reform delivery, with EU support earmarked to modernize 20 more schools and fund community projects. Energy Digitization: Moldova plans smart meters over the next five years, aiming for real-time consumption visibility, fewer estimated bills, and better grid-loss detection for both households and businesses. EU-Moldova Investment Push: At the Moldova–EU Investment Conference, leaders highlighted reforms unlocking EU funds and up to €641m in strategic investments, while Balkan Pharmaceuticals unveiled a €20m expansion into pharma infrastructure, R&D and a MedTech Park. Local Business & Trade: “Republic of Moldova presents” returned in Vaslui, bringing 60 Moldovan companies for B2B meetings and product promotion into Romania’s market. Agriculture Support: FAO launched farmer field schools in Hîncești to help small vegetable growers boost productivity, quality and market access amid climate pressure. Minimum Wage Reform: Parliament approved a bill to change how the minimum wage is set, with new criteria meant to better reflect adequacy for workers and planning for employers. Finance Watch: Moldova’s foreign exchange reserves rose overall in early 2026, with EU budget support cited as a key driver behind the reserve uptick.

EU Enlargement Momentum: EU and Western Balkans leaders met in Tivat, Montenegro, pushing enlargement as a security and economic priority; Montenegro’s accession is said to be “within reach,” with a working group drafting its treaty and talk of a faster, more practical path for candidates including Moldova. Moldova–EU Accession Steps: In Chișinău, EU Commissioner Marta Kos met Prime Minister Alexandru Munteanu and deputies, citing 28 of 30 reform stages completed under the Economic Growth Plan and pointing to potential additional EU funding. Digital Economy & GovTech: Moldova Digital Summit 2026 opened with Prime Minister Munteanu saying 78% of business services are online and IT exports exceed €1bn, with a goal to make Moldova a GovTech hub. Local Governance Debate: Opposition MPs urged “real decentralization” and warned against budget centralization from Chisinau during talks with Kos. Trade & Business Links: Moldova Presents opened in Vaslui, Romania, with 60 Moldovan firms and B2B meetings aimed at expanding access to the EU market. Green Transition: EU/UNDP support will back five Moldovan waste management companies to expand recycling and modernize facilities. Cross-border Enforcement: Europol supported an international action targeting counterfeit medicines and supplements, including call centres and warehouses in Moldova.