AGP Executive Report

2027 Tax Policy: Parliament adopted a package expected to raise 5.1 billion lei, including higher VAT for hotels and restaurants, higher dividend taxes and taxes on low-value parcels. Households will get VAT relief on basic electricity use and larger personal allowances. SME Support: A bill aligning rules with EU standards could bring 147 more companies into the SME category and widen access to financing and export support. Investment Climate: In talks with the IMF, Prime Minister Vasile Tofan backed investment, business-friendly reforms and more efficient state enterprises, while warning against growth driven by unsustainable public spending. U.S. officials also discussed investment opportunities with Moldova’s leadership. Trade and Technology: Moldovan IT exports to the EU rose nearly 20% in a year, while table-grape exports reached €13.85 million, underscoring the value of expanding access to foreign markets. Energy Infrastructure: Parliament advanced plans for the Straseni–Gutinas power line and declared district-heating upgrades in Chișinău and Bălți projects of national public interest.

Energy: Moldova could forfeit €15 million in EU funding if the Vulcănești–Chișinău power line is not energized by year-end. Agriculture: Farmers threaten machinery protests by October 30, citing soaring costs and export bottlenecks; meanwhile, 17,700 tonnes of this year’s table grapes have earned €13.85 million in exports. Labour: A new five-year plan aims to strengthen wage negotiations as living costs strain households. Business: Moldova’s railway reported a 22.7 million lei profit in the first nine months, reversing years of losses. IT services exports reached €742.7 million in 2025, up nearly 21%, with the EU taking 38.4%. Market oversight: Authorities are investigating Yandex Go’s ownership and handling of user data, and have given the company 20 days to provide information.

Digital Business: Moldova’s review of Yandex Go is testing oversight of a major player in the taxi market: the company has 20 days to disclose its owners, while authorities investigate how it handles user data. Yandex Go serves about 60% of the market. Energy & Taxes: Moldova will negotiate €75 million in French Development Agency financing for energy reforms as it seeks more favorable gas supplies, including through talks with Ukraine. The proposed 2027 fiscal package would raise the monthly electricity-use threshold exempt from VAT to 150 kWh and offer incentives for renewable-energy investment. Tech Exports: IT services exports reached €742.7 million in 2025, up nearly 21%; EU markets accounted for €285.5 million, with Romania, Germany and Belgium leading. In the first quarter of 2026, exports to the EU totalled €69.9 million. Electric Mobility: A new government program aims to lift public EV charging points from about 250 to at least 600 by 2030, with at least 30% of new stations outside the capital.

Digital Business: Moldova has launched an investigation into Yandex Go over possible personal-data transfers to Russia and alleged tax evasion. The company has 20 days to disclose information, including its ownership structure; authorities could ultimately ban the app or seize assets. Energy Costs: Electricity prices may be adjusted as rising procurement costs make peak-hour supplies more expensive. Moldova’s prime minister will also visit Ukraine to discuss gas cooperation and other energy links. Trade Routes: The EIB is providing Ukraine with €60 million to upgrade border crossings, including those connecting with Moldova, aiming to speed freight and reduce trade costs. Investment: Germany’s ambassador urged German companies to invest in Moldova, citing an open business environment. Market Access: New rules will gradually raise the threshold for foreign-exchange operations that require central-bank authorization, reaching €100,000 and then €250,000 in 2028. Local Producers: The Made in Moldova exhibition is set for January 27–31, with about 500 businesses expected to showcase domestic products.

Currency Rules: Moldova is easing foreign-exchange controls, raising the threshold for operations needing National Bank authorization from €10,000 to €100,000, then €250,000 from 2028. Rail Freight: Moldovan Railways has resumed rail imports of scrap metal from Romania, carrying 1,125 tonnes through Ungheni. Local Producers: The Made in Moldova exhibition returns to Chișinău on Jan. 27–31, with about 500 businesses expected. Food Prices: Potato supplies could fall 10–20% this season; wholesale prices have climbed to 6–7 lei per kilogram, with further increases expected. Trade and Investment: Moldova’s government discussed Growth Plan reforms with businesses and civil society, while talks with China focused on investment and better access for Moldovan wine, honey and fruit. Export Routes: Russian attacks on Ukrainian logistics are putting trade corridors through Moldova at risk, with Ukraine’s export losses estimated at €60 million a day.

China Trade: Prime Minister Vasile Tofan urged Chinese firms to invest in Moldova, especially in export-oriented sectors, and discussed better access for Moldovan wine, honey and fruit in China. Finance: An IMF team visits Chișinău Oct. 21–28 to assess the economy and policy priorities. The Finance Ministry is offering government bonds at annual rates of 7.65%–8.05% through Nov. 2. Business & Logistics: Maib hosted Chișinău’s first customer-experience conference, while Nova Post opened a parcel-locker hub with 624 compartments near the airport. Energy: Electricity needs were met without emergency assistance last week; consumption fell 6.5% year over year, and fuel stocks remained stable. Trade & Investment: Moldova’s trade deficit reached €4.42 billion in the first eight months of 2026. The country was also named Europe’s fastest-growing startup ecosystem, while KMG International reported higher fuel sales in Moldova.

Government Finance: Moldova’s Finance Ministry is offering one- to four-year government bonds at annual rates of 7.65% to 8.05%, with subscriptions open through Nov. 2. The offer comes as an IMF mission visits Chișinău Oct. 21–28 to assess economic conditions and discuss policy priorities amid pressure on public finances. Agriculture: Tomato growers report high yields but struggle to find buyers; some crops are spoiling or being sold directly from fields. The growers’ association says advance supply contracts could help farmers plan production. Trade and Investment: Moldova’s trade deficit reached €4.42 billion in the first eight months of 2026. Separately, the country is set to receive €102.9 million from the EBRD for irrigation infrastructure, supporting farmers’ access to water. Energy: Electricity needs were fully covered last week without emergency assistance, while fuel stocks remained stable. The Vulcănești–Chișinău power line has reached final testing, a step toward reducing reliance on the Transnistrian energy node.

Corporate Oversight: Moldova’s anticorruption authorities will investigate Energocom’s government-securities purchases, including 361 million lei invested in the first half of 2026; details on returns and terms have not been made public. Investor Caution: The financial markets regulator warned that social-media promotions for high-risk derivatives direct users to firms not authorised in Moldova. Industry: Prime Minister Vasile Tofan visited factories in Fălești and Ungheni, where employers cited workforce shortages and administrative burdens as they look to expand production. Trade and Growth: Moldova’s trade deficit reached €4.42 billion in the first eight months of 2026, while the country was named Europe’s fastest-growing startup ecosystem in a global ranking. Infrastructure: Moldova is advancing road and rail links to Romania, including the Ungheni bridge and a European-gauge railway, to improve market access and cut logistics costs. EU Integration: New accession negotiations could open the way to more European funding and investment as Moldova pursues reforms.

Industry: Prime Minister Vasile Tofan visited factories in Fălești and Ungheni that supply European fashion and automakers. Their expansion plans hinge on finding workers and reducing administrative burdens. EU Integration: Moldova opened talks on the EU’s internal market and competitiveness clusters, advancing work on 17 chapters tied to economic integration. Startups: Moldova was named Europe’s fastest-growing startup ecosystem, with its index score up 91.9% year on year and the country climbing eight places to 82nd globally. Trade & Infrastructure: Moldova’s trade deficit reached €4.42 billion in the first eight months of 2026. New links to Romania’s A8 motorway, an Ungheni bridge and European-gauge rail are planned to ease trade logistics; the EBRD is providing €102.9 million for irrigation upgrades.

Industry: Prime Minister Vasile Tofan visited factories in Fălești and Ungheni, where businesses highlighted plans to expand production and a shortage of workers. One Italian-owned clothing maker, which supplies global brands, welcomed a new zero tax on reinvested profits. Transport Links: Moldova is prioritizing road and rail connections to Romania, including the A8 motorway link, an Ungheni bridge and a European-gauge railway, to cut logistics costs and improve access to EU markets. Business Climate: Moldova’s startup ecosystem grew 91.9% in the latest StartupBlink index, the fastest rate in Europe; the country rose eight places to 82nd globally. Trade and Investment: Moldova’s trade deficit reached €4.42 billion in the first eight months of 2026. Qatar has expressed interest in investment opportunities in agriculture, IT, healthcare and renewable energy. Agriculture: The EBRD is providing €102.9 million for irrigation infrastructure, supporting farmers’ access to more reliable water supplies.

Industry: Prime Minister Vasile Tofan visited factories in Fălești and Ungheni, where producers supplying European carmakers and fashion brands discussed expanding output, hiring workers and easing red tape. One company welcomed a new zero tax on reinvested profits. Connectivity: Moldova is pushing ahead with links to European transport corridors, including an A8 connection, a bridge at Ungheni and European-gauge rail, to cut logistics costs and improve market access. Startups: Moldova was named Europe’s fastest-growing startup ecosystem, with its index score up 91.9% year on year and its global ranking rising to 82nd. Trade & Farming: The trade deficit reached €4.42 billion in the first eight months of 2026. Separately, the EBRD is providing €102.9 million for irrigation upgrades, while Japan is backing a $55 million agricultural machinery modernization project. EU Market Access: Moldova opened negotiations on clusters covering the internal market and competitiveness, part of its broader push to align with EU rules and attract investment.

Startups: Moldova was named Europe’s fastest-growing startup ecosystem in 2026, with its index score up 91.9% and the country rising eight places to 82nd globally. Investment & Trade: Moldova and Qatar discussed investment in energy, IT, healthcare and agriculture, alongside broader trade and access for Moldovan food products. Energy: Moldova is exploring US liquefied natural gas supplies to diversify imports, while the Vulcănești–Chișinău power line’s capital substation enters final testing. Agriculture: The EBRD is providing €102.9 million for irrigation infrastructure, a boost for farmers facing water shortages. EU Integration: Moldova opened two more EU accession clusters, covering the internal market and competitiveness—steps that could support deeper trade and investment ties. Trade Balance: Moldova’s trade deficit reached €4.42 billion in the first eight months of 2026.

Energy Security: Moldova is exploring long-term U.S. liquefied natural gas supplies to diversify imports, while the Chișinău substation on the 400 kV Vulcănești–Chișinău power line is in final testing. Investment & Trade: Prime Minister Vasile Tofan discussed Qatari investment in energy, IT, healthcare and agriculture, alongside better access for Moldovan food products to Qatar. EU Integration: The EU has opened two more accession clusters covering the internal market and competitiveness, bringing 17 of 33 chapters into negotiations and advancing reforms with direct implications for businesses. Business Oversight: Authorities gave Yandex Go 20 days to disclose its ownership and beneficial owners as Moldova reviews data-protection and national-security risks linked to the platform. Trade & Agriculture: Moldova’s trade deficit reached €4.42 billion in the first eight months of 2026; a €102.9 million EBRD loan will support irrigation infrastructure.

EU Integration: Moldova could open all six EU accession clusters by year-end, the EU ambassador says, after four opened in four months. The latest clusters cover the internal market and competitiveness, with direct implications for businesses, consumers and investment. Yandex Go Review: Moldova has launched a security assessment of the platform and given it 20 days to disclose ownership and beneficial owners; authorities will also examine how user data is handled. Trade: The goods deficit reached €4.42 billion in January–August, as imports of €6.66 billion far outpaced exports of €2.24 billion. Investment: A €102.9 million EBRD loan will support irrigation upgrades, while an €80 million package will modernize 25 vocational institutions by 2032.

Trade: Moldova’s goods deficit widened to €4.42 billion in January–August 2026. Exports rose 9.3% to €2.24 billion, but imports reached €6.66 billion; August exports fell year on year while the monthly deficit climbed to €549 million. Digital Economy: Prime Minister Vasile Tofan said the new Moldova AI Hub could help modernize public services and spur growth, with pilot projects potentially covering administration and subsidy distribution. Business Support: Eight companies will receive grants and advice to create family-friendly workplaces. A separate SME reform would raise turnover and asset limits, bringing 147 more firms into the category and widening access to support. Agriculture: Japan-backed financing of up to $55 million will help farmers buy machinery, irrigation and storage equipment. The EBRD is also providing €102.9 million for irrigation infrastructure. EU Integration: Moldova opened negotiations on two more accession clusters, covering the single market and competitiveness—areas central to closer economic integration and future investment.

EU Market Access: Moldova opened 17 accession chapters covering the internal market and competitiveness, bringing 24 of 33 into negotiations. The reforms could ease hiring and trade and attract investment, but businesses will need predictable rules and stronger institutions. SME Support: A draft law would raise the turnover ceiling for medium-sized businesses from €25 million to €50 million and the asset limit from €21.5 million to €43 million, bringing 147 more firms into the support system. Agriculture: Japan-backed financing of up to $55 million will let farmers buy machinery and irrigation equipment on favorable terms; farmers repay the loans at 3.2% interest. Separately, an EBRD loan of €102.9 million will fund irrigation upgrades. Energy Investment: Parliament is preparing to designate the Strășeni–Gutinaș power line and substation works as nationally important, speeding permits and land acquisition. The project has a $130 million U.S. financing commitment. Skills and Efficiency: An €80 million program will renovate 47 buildings at 25 vocational institutions, while a proposed $52 million World Bank-backed project aims to cut energy use in public buildings by at least 20%. Small Businesses: Proposed food-safety changes would let some low-risk producers start after notifying the agency, easing the path for home-based food sales.