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Transnistrian Conflict on June 1–15, 2009

Speaker Shevchyuk loses to Smirnov

The Bender-based newspaper “Novaya Gazeta” has published an analysis regarding the conflict between the legislative and executive branches from Transnistria related to the revision of the constitution. According to the newspaper, the “initiative of the 17” members of the Supreme Soviet which seeks the revision of the constitution has failed. The pressures by Transnistrian leader Igor Smirnov and his acolytes from the media and public organisations made the lawmakers retreat. On May 27, 2009 the initiative group for the modification of the Transnistrian constitution handed in an appeal to speaker Evgeni Shevchyuk, asking him to withdraw the initiative concerned. In his turn, Shevchyuk gratified them for “proving wisdom and civic position,” but stressed that “the time will hit the nail on the head.” In the context, “Novaya Gazeta” notes that the majority faction of the “Obnovlenye” Party in the Supreme Soviet did not dare to step in the opposition against Smirnov, willing to defeat Smirnov’s clan at the next presidential elections with palliative measures and statements such as “adjustment of the Transnistrian legislation to the Russian Federation’s”. By behaving like a coward, the Supreme Soviet led by Shevchyuk has exposed itself and could be dissolved, while its head runs the risk to lose support at the next presidential elections in the region.

Investment forum in Transnistria

During June 4–5, Tiraspol hosted the first investment forum in Transnistria organised by the chamber of commerce and industry from the region. The forum considered 92 projects aimed to attract investments worth 700 million dollars. According to organisers, potential investors gave green light to 33 initiatives capable to attract investments worth 242 million dollars. The private sector has succeeded to attract 60 percent of eventual investments. The investment attractions included among others the Hydro-power Plant in Dubasari and the Power Plant in Dnestrovsk. Seventy out of more than 300 participants in the forum represented 12 countries.

The need of investments in Transnistria’s economy becomes clear on background of the economic-financial crisis which seriously hit the region. Transnistria’s GDP has decreased by 9.3 percent in the 1st quarter of 2009, while the industrial production has fallen by 30.4 percent. Overall, 178 enterprises have reduced the production volume, of them 21 did not resume the production process in general. The chemical industry has reduced the production volume by 71.7 percent, electro-technical industry by 65.4 percent, engineering industry by 65.1 percent, metallurgical industry by 61 percent, and light industry by 42.3 percent. On the other hand, the electricity production has grown by 21.7 percent and housing opening by about 70 percent.

Note by ADEPT: The investment forum in Transnistria took place on background of a political crisis following the conflict between the legislative and executive branches in connection with constitutional amendments and redistribution of tasks. As well, two businessmen from the region were killed prior and on the days of the investment forum and the head of the “investment policy” department of the Transnistrian ministry of economy was the victim of an attempt.

May 2–31, 2009 June 16–30, 2009