The European Times - Moldova 2

MOLDOVA

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MOLDOVA

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MOLDOVA INTRODUCTION

FINANCE & INSURANCE

• Making the Choice for European Integration

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• Embassy Strengthening Ties between Moldova and EU and NATO

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• Ambassador Highlights Close Ties between Ukraine and Moldova

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• Italy a Top Source of FDI in Moldova

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PHARMACEUTICALS

• Romania: Leading Trade Partner

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• Minister of Health Cites Impressive Progress in Healthcare System

• Embassy Fostering Ties between Republic of Moldova and Romania

• Financial-Sector Reforms in Progress

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• Ambitions for Insurance

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• BC Moldindconbank

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• Agriculture a Key Driver of Moldova’s Economy

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• Massive Development Projects Transforming Chisinau

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ICT • ICT Minister Outlines Ambitious Projects for 2020 • EST Computer

BUSINESS & INVESTMENT OPPORTUNITIES • Foreign Affairs Minister Highlights Advantages of Association Agreement

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• Exports to EU Rose by 20% in 2014

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• Transport Association Promoting International Standards

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TOURISM • Promoting Cultural Heritage

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• Manhattan Hotel

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• Leogrand Hotel & Convention Center

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• Building International-Standard Infrastructure

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• Top Off-the-Beaten Track Destination

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• Dessa International

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• Regency Hotel

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MOLDOVA International Manager: Aukje Oostendorp – Country Manager: Laurentiu Liferi – Project Coordinator: Jelena Baric – Production Coordinator: Ivana Atanasoska – Copy Editor: Vicky Kox – Editorial: Emily Emerson-Le Moing, Jake Addison, Chris Herrett – Design: Martine Vandervoort, Johny Verstegen, Walter Vranken, Dirk Van Bun The European Times Zinas Kanther 16 – Karantoki Building – 4th Floor, Office 12 – 1065 Nicosia – Cyprus Phone: +357 22 030248 – info@european-times.com – www.european-times.com The European Times is a trading name of Media Plus Holding Ltd. This guide is protected by copyright. All rights reserved. This publication, or any part thereof, may not be reproduced, stored electronically or transmitted in any form, without the prior written permission of European Times. Every effort has been made to ensure information contained in this publication is correct and up-to-date. The authors and publisher accept no responsibility for any errors it may contain, or for any loss, financial or otherwise, sustained by any person using this publication. – (301015)

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Introduction

Making the Choice for European Integration Ribnita

© Serghei Starus-Dreamstime.com

Moldova, a small former Soviet republic sandwiched between

Romania and Ukraine, has been working to forge stronger ties with the EU and the West for many years and signed an

Association Agreement with the EU in June 2014. Supporters of the decision noted that with the agreement, Moldova proved it no longer sees itself as an extension of Russia but rather as

a member of the European community, to which it is linked by shared values and culture.

Even before the agreement, Moldova had increased its exports to the EU from 41% of its total exports in 2005 to 46% in 2013, while its exports to CIS countries dropped from 50% to 40% over the same period. Moldova has also stepped up its cooperation with NATO, and in June this year NATO ministers endorsed a defencecapacity-building package to help Moldova enhance its defence and security institutions.

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Long and rich cultural history The Republic of Moldova has a long history dating back to 1359 when the principality of Moldova gained independence from the Hungarian Empire. Stephen the Great successfully defended Moldova from the Ottoman Empire in the 15th century and the country flourished; many churches and other landmarks from that era remain

in Moldova today. Moldova later became part of the Ottoman Empire until 1812, when most of the country was ceded to the Russian Empire under the name Bessarabia. In 1859, western Moldova and Valachia joined to become Romania while Bessarabia remained part of Russia. In 1918, Bessarabia chose to become part of Romania, with which Moldovans share a long history, culture and language. After World War II, Bessasrabia/Moldova was annexed by the Soviet Union. The Republic of Moldova declared its independence from the Soviet regime in 1991 and established a democratic government in its capital city, Chisinau.

A landlocked nation, Moldova has a population of only 3.6 million and its economy is one of the poorest in Europe.

It has remained largely dependent on Russia. With limited natural resources, Moldova must import most of its energy supplies and currently imports its natural gas from Russia’s Gazprom, to which it is now in debt. Russian troops remain in Moldova’s Transnistria region, which has strong ties to Moscow. In addition, the Russian government vigorously opposes Moldova’s closer relations with the EU and the US and has threatened to cut off the country’s gas supplies if it continues to pursue European integration instead of joining the Russia-led Customs Union.

Pro-European government since 2009 In spite of its long-standing ties to Russia, Moldova elected a pro-EU

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Sector

© Serghei Starus-Dreamstime.com Dniester river

government in 2009. As former Prime Minister Iurie Leanca commented, “Moldova has made decisive steps to establish closer and irreversible ties with the EU, modernising its institutions, improving governance and pursuing structural reforms in the economy. As a result of our efforts, in 2013 Moldovan citizens were granted the freedom to travel across Europe without any barriers. This is a strong success for my country and a symbol of our deepening relationship with the EU. However, this is only the beginning: through the Association Agreement Moldova’s goods and services will gain access to the EU common market.”

As the former Prime Minister warned, however, the partnership with the EU requires an on-going commitment

by Moldova and its leaders. He said, “Without strong and competent insti-

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tutions and without a proper rule-of law state, the benefits of closer ties with the EU will not be fully felt and appreciated by the citizens of my country.

This is why we have taken bold steps to increase the transparency of our institutions; have pushed through a package of difficult but vital reforms to enhance the freedom but also the responsibility of our judiciary; and adopted legislation to curb corruption at all levels.”

Iurie Leanca’s warning proved to be justified. Moldova’s pro-European government experienced serious infighting which eventually forced the Prime Minister out of office. Then, in 2014, Moldova was rocked by a major banking scandal; around €1 billion, or 12% to 15% of the country’s GDP, disappeared, apparently diverted from local banks to corrupt members of the govern-

ment. The funds have still not been recovered. In the huge public protests that followed reports of the missing millions, pro-Russian political groups gained a bigger following.

In June this year, however, residents of Chisinau elected a strongly pro-EU mayor, Dorin Chirtoaca. The new mayor commented, “I hope we will build something that is certain, definitive, irreversible, for the future of Chisinau and Moldova.” His election is seen as a big victory for supporters of Moldova’s European integration. When she cast her vote in Chisinau, Moldova’s Interim Prime Minister Natalia Gherman, who is also pro-EU, said, “I voted for a city that will look like Stockholm, Brussels or Vienna.” Moldova faces significant challenges, but seems determined to become a productive member of the EU and global communities.

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Introduction

Embassy Strengthening Ties between Moldova and EU and NATO Mihai Gribincea, Moldovaʼs Ambassador to Belgium and NATO

By signing the EU Association Agreement in June 2014, Moldova confirmed its commitment to joining the EU. As Prime Minister Iurie Leancă pointed out at the signing, Moldova considers itself an EU country, not only because of its geographical location but also because of the values it shares with other EU members.

Mihai Gribincea, Moldovaʼs Ambassador to the kingdom of Belgium and Head of Moldovaʼs Mission to NATO, discusses his countryʼs EU and NATO ties.

European Times: What is the importance of the EU Association Agreement for Moldova?

Mihai Gribincea: The Association Agreement aims to deepen political and economic relations between the EU and Moldova and to gradually integrate Moldova into the EU’s internal market, the largest single market in the world, through the Deep and Comprehensive Free-Trade Area (DCFTA) covering the EU and Moldova. Members of EU Parliament approved the Association Agreement in a vote of 535 to 94, with 44 abstentions. As Petras Auštrevicius, Lithuanian Member of the EU Parliament and part of the EU-Moldova Parliamentary Cooperation Committee delegation, explained, “The ratification of the EU-Moldova Association Agreement is a clear acknowledgment of the success of

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Moldova’s political and economic reform process, which establishes its European prospects and bears witness to its determination eventually to join the EU.” European Times: What impact will the Association Agreement have on Moldova?

Mihai Gribincea: The Association Agreement is regarded by Moldovan authorities as a roadmap for future reforms. Its implementation will help the government to complete Moldova’s modernisation process and make Moldova a truly European democracy with a free market, competition and transparency. The agreement is bringing EU standards to Moldova’s political, social, and economic spheres, and offers the benefits of European integration to Moldovan citizens, who will feel part of

the greater European family of nations.

The government also expects that the Association Agreement will positively affect the Moldovan economy. For Moldovan producers and farmers, the agreement has opened up a market of 500 million consumers and will lead to further modernisation as well as improved quality of Moldovan products. In addition, the Agreement makes Moldova much more attractive as an FDI target and this will result in significant job creation. Independent economic research suggests that Moldova’s participation in the DCFTA will boost its exports to the EU by 16%, and imports from the EU by 8%. The DCFTA as a whole is expected to increase Moldova’s GDP by 5.4% annually, if reforms are completed. Moldova welcomes European trade partners and investors. Investing in Moldova can not only benefit Moldova but will also make the EU stronger and help bring stability to the region.

European Times: What are the main tasks of the Embassy of the Republic of Moldova in Belgium?

Mihai Gribincea: The embassy promotes the Moldovan government’s EU integration policies and supports Moldova’s political and economic interests.

One of the embassy’s key tasks is to present a positive image of Moldova through highlighting its culture, arts and national traditions. For Moldova, joining the EU represents cultural as well as economic integration, and helping Europeans understand Moldova’s culture, history and arts will show them that Moldova shares EU values. Moldova is a European country that deserves a European destiny.

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Ambassador Highlights Close Ties between Ukraine and Moldova can result in new infrastructure connecting the two markets.

Moldova’s parliamentary elections on November 30 this year will determine the country’s long-term economic relationships.

In spite of the current conflict in Ukraine, the country strongly supports Moldova’s EU integration process and its fight against corruption.

European Times: Are Ukrainian investors targeting Moldova?

Serghii Pyrozhkov, Ukraineʼs Ambassador to Moldova, discusses the long-term ties between the two countries and new types of bilateral

partnerships currently being created. He also highlights Moldovaʼs attractions for Ukrainian

investors as well as both countriesʼ commitment to integrating into the EU.

European Times: Can you describe the relationship between Ukraine and Moldova?

Serghii Pyrozhkov: Ukraine and Moldova are not just neighbours; Ukrainians have been living in Moldova since 1359 and, according to a study in 2004, Ukrainians now make up the country’s second-largest ethnic group. The two countries also share a border in the Transnistra territory. Ukraine is Moldova’s third-most-important trade partner. Moldova mainly imports metals, food, coal and machinery from Ukraine and exports wine and agricultural products to Ukraine. Bilateral trade between Moldova and Ukraine totalled around US$1004,9 million in 2013. The two countries signed a free-trade agreement on June 27, 2014. Ukraine and Moldova have also formed a Euroregion containing six regions from the two countries. These regional partnerships along borders have great potential and

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Serghii Pyrozhkov: Ukrainian investors have invested around US$12.7 million in Moldova to date. Moldova is a small market for Ukraine, but as new opportunities arise here, more Ukrainian investors will come. One opportunity is in joint-venture partnerships, for example in road construction. One of Moldova’s biggest challenges is modernising its road infrastructure, and a lot of Ukrainian road-construction companies are interested in taking part in this process. Fighting corruption remains a challenge for investors, but both sides are working on this. With the war in Ukraine right now, we cannot count on large investments from Ukraine in Moldova, but when the situation stabilises, Ukraine will have good potential for investments and the economy of the country will be considerably improved.

European Times: What is your personal view on the relationship between Moldova and Ukraine?

Serghii Pyrozhkov: Both countries are actively developing their connections to Europe. It is the concern of the realisation of European principles, standards and values. At present, both Ukraine and Moldova have signed an Association Agreement with the EU, including provisions on the establishment of a deep and comprehensive free-trade area. It is a historic event for each country and it describes their civilized choice.

However, the implementation of the Association Agreement is a complex and long process that requires considerable efforts of the government and the society. In addition, the signing and implementation of the provisions of this Agreement raises new challenges for Ukraine and Moldova. In this regard, it is necessary to reform and deepen Ukrainian-Moldovan relations. Moldova and Ukraine have great potential for working together and both countries are preparing themselves to integrate into the economic area of the EU.

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Italy a Top Source of FDI in Moldova ties, and travel between them is getting easier thanks to new air-travel connections.

European Times: Which sectors investors targeting in Moldova?

Italy and Moldova have established close ties, both culturally and economically. Enrico Nunziata, Italyʼs Ambassador to Moldova,

discusses trade between the two countries and highlights Moldovaʼs attractions for Italian and other foreign investors.

European Times: What is the relationship between Moldova and Italy?

Enrico Nunziata: Italy is Moldova’s third-biggest export market after Russia and Romania and its fourth-biggest source of imports. Moldova’s exports to Italy totalled around 7.7% of the country’s exports, while Moldova’s imports from Italy totalled around 6.2% of total imports. Over 1,000 Italian companies are operating in Moldova, including Exim Bank and Cedacri International. Italy accounts for 13% of Moldova’s FDI and is the country’s top investor in equity capital. In addition, around 150,000 Moldovans live in Italy.

Italy is also supporting a number of cultural projects in Moldova. An Italian delegation recently visited Moldova to discuss projects for Italian specialists to help restore historic landmarks here. The two countries continue to forge new

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are

Italian

Enrico Nunziata: Italian investors are present in many sectors, from manufacturing to call centres and financial services. A significant new Italian investment is a plant to produce electrical cables, which will open in the Balti free zone by the end of this year. This company, like many Italian companies in Moldova, aims to manufacture products to be exported to Russia, Ukraine, Kazakhstan and other eastern markets. Another example is the cooperation between the Confederation of the Italian Manufacturing Industry and Private Enterprises of Florence (Confimpresafirenze) and the Scientific-Practical Institute of Biotechnologies and Veterinary Medicine for a project concerning livestock production.

European Times: What are some new investment opportunities being created in Moldova?

Enrico Nunziata: Italian investors are increasingly looking into possibilities in Moldova in business services, municipal services, food-processing and packaging, and renewable energy, to give some examples. In general, investors in larger projects have fewer challenges. The Italian embassy organises an investment forum in Moldova every year and the Moldovan government is a big supporter of this initiative.

Moldova’s pavilion at Expo Milano in 2015 will showcase Moldova’s investment attractions. This will be a wonderful occasion for Moldova to show its economic potential to the world.

European Times: What is your personal message to potential investors?

Enrico Nunziata: Moldova has proven that it can produce goods and services which meet EU standards. Investing in Moldova benefits the local population and brings profits for investors.

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Romania: Leading Trade Partner European Times: What are your priorities as ambassador?

Marius Lazurca: I want to foster opportunities for Romanian investors in Moldova as well as opportunities for Moldovan investors in Romania. The new free-trade area between Moldova and the EU will create new opportunities, and Romania aims to become the leader in trade and investment in Moldova.

European Times: Which sectors have Romanian investors targeted in Moldova?

Marius Lazurca, Romaniaʼs Ambassador to

Marius Lazurca: Romanian investors are active in all major sectors of the Moldovan economy. In the banking sector, BCR-Romanian Commercial Bank has a strong reputation, while in the oil sector a major player is Romania’s Petrom. Romanian companies are also playing key roles in Moldova’s construction and distribution sectors, among others. Now Romania wants to participate in new sectors, particularly renewable energy, where Romanian companies have expertise, and ICT, where Moldova is seen as a good base for outsourcing.

Agriculture, waste-processing and recycling are other sectors where Romanian companies can provide needed expertise.

the

European Times: What about Moldova’s ties to the EU?

Moldova, discusses the close ties between two

countries,

economically.

He

both

culturally

highlights

growing investment appeal.

and

Moldovaʼs

European Times: Can you describe the relationship between Romania and Moldova?

Marius Lazurca: Romania is Moldova’s most important European trade partner and will soon be the country’s most important trade partner overall. Moreover, our bilateral trade is complex, balanced and sophisticated rather than relying on a single item or set of products, as is the case for trade between Moldova and Russia. In addition, the two countries are culturally compatible, and many investors in Romania see Moldova as an extension of the Romanian market. The political relationship between the two countries has been getting better and better and this positive climate has created new investment and commercial opportunities for entrepreneurs on both sides.

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Marius Lazurca: Moldova is a leader in the Eastern Partnership, where it was the first country to sign a civil-aviation agreement with the EU and the first to sign a visa agreement that allows Moldovan citizens to travel freely to Schengen countries. After the signing of the Association Agreement with the EU on June 27, Moldova is now aiming for EU integration and is already benefiting from significant EU funding. With Romania’s help, Moldova will become a more European country every day.

European Times: What is your personal message about Moldova?

Marius Lazurca: Moldova offers excellent opportunities, both for tourists and for investors. Moldova can serve as a link to the Ukraine and Russia markets as well as to Moldova’s other trade partners to the east.

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Embassy Fostering Ties between Republic of Moldova and Romania Moldovaʼs embassy in Bucharest plays a key role in maintaining strong and diversified ties

between the Republic of Moldova and Romania.

Iurie Renita, Moldovaʼs Ambassador to Romania

since 2010, discusses Moldovaʼs links to Romania and the EU.

European Times: How would you describe relations between the Republic of Moldova and Romania?

Iurie Renita: Before coming to Romania as Ambassador, relations between our countries had been damaged because of conflicting policy promoted by communist regime in Chisinau. I have been focusing on promoting our two countries’ many links, including our common language, traditions and history. My major objective was to re-establish normal relations between our two countries. I have received the full support of the leading Alliance for European Integration in Chisinau as well as of all government institutions in Romania, including the President, President of Senate, Speaker of Parliament, Prime Minister and Minister of Foreign Affairs. Now, I am happy to say that the goal I was assigned has been accomplished, and the current stage of cooperation between Chisinau and Bucharest is being considered as excellent concerning bilateral relations.

European Times: What are your priorities for the future?

Iurie Renita: Our main priority is to achieve Moldova’s EU integration with Romania’s assistance and we have received full support from all Romanian institutions dealing with foreign affairs, in all political parties. We are also working with Romania to diversify our energy supplies. The Republic of Moldova depends 100% on Russia for gas and 75% to 80% for electricity. A key energy diversification project for Moldova is the Iasi-Ungheni pipeline project with Romania, which we launched on August 27 2013, exactly on our Independence Day. Thanks to this pipeline, we will be able to buy gas from Romania at a much cheaper price than the current price from Russia or any EU country. When we talk about getting closer

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Iurie Renita, Moldovaʼs Ambassador to Romania

to Romania, we are also talking about connecting to the EU since Romania is an EU member.

European Times: In what other ways are Moldova and Romania cooperating?

Iurie Renita: Romania is Moldova’s top export market in the EU; we export more than €1 billion in goods to Romania per year, which is substantial for a small country like Moldova.

Today, around 60% of Moldova’s exports are to the EU and this percentage should increase considerably thanks to our new free-trade agreement with the EU. European Times: What can Moldova offer to Romanian and EU investors?

Iurie Renita: Moldova has many high-potential sectors in industry and agriculture, including famous Moldovan wines. My country also proved to be a dedicated, credible, responsible international partner. Undoubtedly, Moldova is a European country, which shares European values of democracy, freedom, free market and much more. The strong majority of Moldovans supports EU integration.

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Agriculture a Key Driver of Moldova’s Economy and with the right kinds of investments, including in food processing, agriculture can help Moldova meet the criteria for joining the EU. European Times: What is your ministry doing to promote the agriculture sector?

Vasile Bumacov, former Minister of Agriculture, discusses his ministryʼs efforts to promote the agriculture sector as a key driver of

Moldovaʼs economy. He notes the challenges

Moldovan farmers face, particularly difficulties in obtaining financing, and points out that investors in the agriculture sector will find many opportunities in Moldova.

European Times: Why is agriculture important to Moldova?

Vasile Bumacov: Many people in Moldova believe that agriculture is not important, but this is a mistake.

Agriculture is what we can do. The agriculture sector accounts for around 42% of Moldova’s exports and in 2013 the sector grew by 38% and played a leading contribution to Moldova’s 8.9% GDP growth. With reforms

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Vasile Bumacov: I have a lot of international experience and I am trying to implement international standards in the agriculture sector. I have launched reforms in food safety to meet EU standards and our ministry is helping to educate farmers in ways to use better technologies and methods to increase their yields. I also want all agricultural subsidies to be completely transparent so that they truly benefit farmers. We have also begun a programme with the US Millennium Challenge Corporation to build rural roads and irrigation systems, and we have launched six programmes supported by investment from Japan along with two programmes with funding from the European Investment Bank. Moldova has two million hectares of very fertile soil and we need to make the most of it with the help of international partners and investors. I want to change Moldova’s 2020 strategy to include a focus on agriculture. While I am minister I also plan to begin the European Neighbourhood Programme on Agriculture and Rural Development through which we will support many of our farmers to modernise production and make our products more competitive on the European market. I would like to see more education, land reform, and research and development in agriculture in Moldova.

European Times: What are your goals for the future of agriculture in Moldova?

Vasile Bumacov: We must learn to promote our products, and that means promoting our country. How can we promote Moldova’s excellent wine and fruit if half of the people in Europe do not even know where Moldova is? The future of Moldova’s agriculture sector is the EU. The EU can provide not only financing but also technological transfer, a market, and the EU can be a partner in fighting corruption.

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Introduction

Massive Development Projects Transforming Chisinau pedestrian-zone project and we established a public-private partnership with the company operating our bus services.

We have also received significant private international investment in construction projects in the city, including a Turkish investment in a cutting-edge healthcare centre. Moldova’s association agreement with the EU will create new opportunities for foreign investors and international companies in Chisinau.

European Times: Which sectors offer potential for foreign investors?

Chisinau has been transformed during the administration of

Dorin Chirtoaca, General Mayor. He discusses how the city has changed and describes his plans for the future as Moldova gears up for EU membership.

European Times: Chisinau changed became mayor?

How since

has you

Dorin Chirtoaca: When I came into office, the city was bankrupt. We began a massive development programme with the support of the EBRD, the World Bank and other partners. We built new water and sewage pipelines serving around 100,000 households, built new roads, and awarded a tender to a company to provide new trolley cars for public transport. We have greatly improved water quality by adopting EU-standard processes and now we are rebuilding the waste-water treatment plant in phase

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II. We also launched an EU-supported energy plan. This year we are involved in a €22 million project to rehabilitate six main streets and create a pedestrians-only zone, the city’s first. In addition, we have boosted heating services by around 20% and have decreased our expenditures by 30% in one year alone. We have managed all this even though Chisinau’s city budget is one of the smallest in the region for a city of one million inhabitants.

European Times: Are you working with private-sector partners?

Dorin Chirtoaca: We are partnering with a brewing company for the

Dorin Chirtoaca: We already have manufacturing enterprises producing textiles and furniture; Italian companies have been operating here for five years. The city has also attracted significant private investment from Turkey. Chisinau and Moldova in general offer outstanding FDI opportunities since, unlike some other countries in the region, we are just beginning to develop our economy and can guarantee great growth potential and low costs. We welcome investment in manufacturing, energy, services and value-added activities that will create jobs. Moldova aims to be a reliable partner for the EU. European Times: What is your personal message to potential investors?

Dorin Chirtoaca: I welcome European investors and partners who can help us continue to fight corruption, transform our city and implement EU standards in every area.

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• Exports to EU Rose by 20% in 2014 • Transport Association Promoting International Standards • Building International-Standard Infrastructure

Business & Investment Opportunities

“Moldova is moving forward in the European integration process and we welcome European trade partners and investors.”

Natalia Gherman, Minister of Foreign Affairs

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Sector Opportunities Business & Investment

Foreign Affairs Minister Highlights Advantages of Association Agreement Moldovaʼs

new

crowning

achievement

reunify Moldova is through European integration.

association

agreement with the EU is a

“Investing in Moldova can not only benefit Moldova but also make the EU stronger and help bring stability to the region.”

for

Natalia Gherman, Minister of Foreign Affairs, who has been

leading preparations for the

agreement since 2009. She

discusses the impact of this historic agreement.

European Times: How will the new association agreement affect the Moldovan economy?

European Times: What are your priorities as Minister of Foreign Affairs?

Natalia Gherman: Our top priority since 2009 has been preparing for the association agreement with the EU. I am honoured to have been Moldova’s chief negotiator in this process.

Another priority was to abolish the visa regime for Moldovan citizens travelling to the EU and this has been a great success. The association agreement will forge new connections between Moldova and the EU and will result in bringing EU standards to Moldova’s political, social, and economic spheres.

European Times: What is the next step now that the association agreement has been signed?

Natalia Gherman: Obviously a lot will depend on how well and how fast we implement the conditions of the association agreement and free-trade area. We want to modernise Moldova

Natalia Gherman, Minister of Foreign Affairs

and make it a truly European democracy with a free market, competition and transparency. All three parties in Moldova’s coalition government agree on this. We still need to fight corruption but we have taken a great step forward.

European Times: What about security issues?

Natalia Gherman: We have decided to adopt EU security policies, which include preparing our security forces to maintain peace and stability. Concerning Transnistria, we are seeing a huge demand among residents for Moldovan instead of Transnistrian passports since Moldovan citizens can now travel freely to the EU. I believe the best way to

Natalia Gherman: For Moldovan producers and farmers, it has opened up a market of 500 million consumers and will lead to further modernisation and improved quality of Moldovan products.

In addition, the agreement makes Moldova much more attractive as an FDI target and this will result in significant job creation.

The EU’s recent decision to double quotas of imports of Moldovan fruit and to import Moldovan wine demonstrates to the people of Moldova who their real friends are in these difficult times.

European Times: What is your personal message to potential investors?

Natalia Gherman: Moldova is moving forward in the European integration process and we welcome European trade partners and investors. Investing in Moldova can not only benefit Moldova but also make the EU stronger and help bring stability to the region.

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Exports to EU Rose by 20% in 2014 Moldova is making economic progress, particularly after signing an Association Agreement and a free-trade agreement with the EU last year. Moldovaʼs GDP exceeded expectations to grow by 4.6% in 2014 thanks to increased agricultural production and a 20% boost in exports to the EU.

The EU is now Moldova’s biggest trade partner, accounting for 46.4% of its trade. EU-Moldova trade totaled €3.51 billion in 2014. The EU’s main exports to Moldova are machinery and appliances, mineral products, transport equipment and chemical products. The EU imports textiles, machinery and appliances, vegetables and other foods and beverages from Moldova. In spite of these positive signs, Moldova’s per capita GDP is only around €2000, making it one of Europe’s poorest countries.

Moldova has a temperate climate, fertile farmland and limited industry, so its economy relies heavily on agriculture,

particularly the production of vegetables, fruits, wine and tobacco. Remittances from the roughly one million Moldovans working abroad also play a key role. Challenges include a large external debt and dependence on Russia (and Ukraine) for natural gas. A new pipeline being built between Moldova and Romania aims to end the Russian gas monopoly and help Moldova pursue sustainable economic development.

Infinite Textile Infinite Textile has developed excellent industry expertise through working with household names like Target, Nike, Sears and Walmart, and is now keen to develop its customer base further.

EU-Moldova “trade in goods” statistics

€ Billion

4 2 0

2012 ■

114

2013

2014

EU imports ■ EU exports ■ Balance

It has already worked with companies from the US, Europe and Russia, and General Director and partner Mehmet Akay is more than ready for the demand new customers will bring.

“We are ready to expand even further if the demand increases and new markets in Europe become available”, he said.

Infinite Textile is looking to offer its services to countries like Germany and Italy, and Mehmet Akay says they have everything ready to go for the right partners.

He says Moldova is ideal for business, because it can offer high quality and low prices. “We have a strategic location in the heart of Europe. The cost to ship items is fairly low and we can reach everywhere in Europe by truck, rather than ship or plane like other courtiers must do”, Mehmet Akay said.

Should Moldova’s proposed Free Trade Agreement with Europe come into play, both nation and Infinite Textile will benefit. “This agreement will bring more attention and business to the country and also make it cheaper and easier to do business”, Mehmet Akay emphasized.

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Business & Investment Opportunities

Transport Association Promoting International Standards Asociatia

Internationala

Moldova

(AITA),

Transportatorilor

Auto

Republic of Moldova and managing the international transport guarantee chain, protecting the interests of transport operators, and ensuring the smooth operation of any transport activity in which Moldovan carriers are involved.

a

din

founded

in 1992, provides essential

services contributing to the development

of

transport industry.

Grigore Bernavschi, President, explains that AITA’s mission is to unite transport companies of Moldova to represent and protect their professional and business interests both in relation with national authorities and international institutions.

AITA also provides financial guarantees for transport companies through issuing TIR carnets (transit documents). Grigore Bernavschi discusses AITA and recent developments in Moldova’s transport sector.

European Times: How does the TIR carnet work?

Grigore Bernavschi: A TIR carnet as a unique transit document allows a transport operator to transport goods under customs seals from the place of first loading to the place of final unloading without customs control and brokers’ services helping to save time and cheapen the transportation.

The guarantee of a TIR carnet does not cover the total value of the goods transported but covers customs taxes and duties imposed on these goods. Europe and a part of Asia – including China – benefit from the TIR System.

European Times: What other kinds of support do you offer transport companies?

1

European Times: How do companies become members of AITA?

Moldovaʼs

Grigore Bernavschi, President Transport Association

Grigore Bernavschi: We help transport companies to purchase certain types of insurance and establish contacts with transport organisations in other countries. We also help foreign transport companies operating in Moldova. Our goal is to support the interests of transport operators, for example concerning the challenges being created during the process of harmonization of national regulations with those of the EU, difficulties related to the transport-related rules in Russia, and numerous other issues.

European Times: What is your role as president of AITA? Grigore Bernavschi: I am the association’s number one representative to the International Road Transport Union (IRU) in Geneva. I am also responsible for keeping up the TIR procedure in the

Grigore Bernavschi: The process is easy. A company contacts AITA and we help collect and legalize all the necessary documents to present them to customs authorities. After filing an application and having received permission from the state customs service the company must then deposit a financial guarantee, after which it starts functioning according to the TIR procedure.

European Times: What is your personal message concerning Moldova’s transport sector and AITA? Grigore Bernavschi: The Moldovan transport sector could really benefit from increased investment. Moldova strengthened its regulations for the transport sector through a new transport code passed by Parliament in September 2014. I believe that this will allow transport services to continue to improve. Speaking as the President of AITA, I believe that transport operators should observe both international and national regulations, and should strive to enhance their professional competence. AITA is one of the top 10 most highly rated transport associations in the IRU, and we are dedicated to continuing this strong performance.

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THE EUROPEAN TIMES

MOLDOVA Sector

Building InternationalStandard Infrastructure Old railroad bridge across the Dniester

High Standards and On-Time Delivery Dessa International employs the most advanced

technologies and manufactures its products in-house to ensure high standards and on-time delivery.

© Serghei Starus-Dreamstime.com

Infrastructure development is a top priority in Moldovaʼs ambitious 2020 strategy, and major projects are in the works to upgrade the countryʼs road, rail, and air transport, water, sanitation, energy and inland-waterway infrastructure.

These projects offer exceptional opportunities for investment and joint-venture partnerships.

Many projects are getting off the ground through support from international funding organisations, including the EU, the EIB and the EBRD. The EBRD recently announced a €52.5 million loan to state-owned rail company Calea Ferata din Moldova to co-finance the acquisition of 10 new locomotives and support other infrastructure projects. In 2013, the EBRD provided a loan of around €10 million to Danube Logistics, the owner and operator of Moldova’s Giurgiulesti International Free Port, to finance a mixed-gauge rail terminal there.

Giurgiulesti International Free Port is a key logistics hub for landlocked Moldova since it is located at the crossroads of major road, rail and inland-waterway links to Romania and Ukraine.

The port includes an oil terminal, container and general cargo terminals, and grain and vegetable-oil terminals. “Rehabilitation of the infrastructure in Moldova is an investment priority for the EBRD,” says Sue Barrett, EBRD Director for Transport.

International investors looking to get involved in Moldova’s infrastructure initiatives can count on reliable local partners. An example is Dessa International, which implements high-quality infrastructure projects in the places that need them most.

16

Iurie Cosciug, founder and CEO, is a native of Moldova but was educated in Ottawa, Canada. He explains, “We concentrate on efficient and effective technologies, because Dessa International focuses on results and client satisfaction. We are a customer-oriented company rather than a sales-oriented company.”

Moldova is a testing ground for Dessa International, which aims to expand in Central Asia, Ukraine and Africa. Dessa is completing a street-lighting project in Balti which includes redeveloping the city’s energy network in spite of budgetary constraints. Dessa has other projects in the works concerning cost-effective water systems and turn-key energy-saving solutions, and it is involved in a traffic-monitoring system in collaboration with Moldova’s Ministry of Internal affairs and local authorities. “Traffic-monitoring is important in all developing countries, and Dessa International can bring our expertise in this field to other countries,” Iurie Cosciug says.

Dessa International welcomes partners. Iurie Cosciug concludes, “Dessa International is a transparent, ethical project-management company, a company with North American values now operating in the heart of Moldova.”

dessa international

1

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• Financial-Sector Reforms in Progress

Finance & Insurance

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MOLDOVA

Financial-Sector Reforms in Progress Authority building in Chisinau

while deposits total around 45%. The financial sector is dominated by banking; collective assets of banks in Moldova total around 70% of GDP.

Strong growth potential in insurance

© Serghei Starus-Dreamstime.com

Moldova is making progress in upgrading its financial sector. The governmentʼs fiscal deficit

declined by 4.6 percentage points between 2009 and 2014 to reach 2.8% of GDP. In addition,

the Moldovan government has been improving its efficiency and has managed to increase its funding for education and social services.

In the financial sector, three local banks (Banca de Economii, Unibank, and Banca Sociala) were placed under special administration in November 2014 following the disappearance of millions of euros in fraudulent bank transactions. In its latest country report on Moldova published in April 2015, the World Bank calls for a significant overhaul of governance in Moldova’s financial system to resolve problems, particularly in the banking sector.

The World Bank is providing advice to Moldova’s government concerning stabilising the banking industry, amending the Capital Market Law, strengthening financial-sector regulatory agencies, developing electronic payments, and enhancing the legal framework for the non-bank financial sector. The World Bank is also financing the Competitiveness Enhancement Project II, which includes a multi-million-euro credit line for Moldovan exporters.

Access to financial services in Moldova remains relatively low. Credit to the private sector totals around 35% of GDP

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Moldova’s insurance, microfinance and capital-markets activities are currently very limited. All these financial-services segments offer significant potential for companies and investors which can bring world-class standards, new technologies and new products to Moldova. For EU financialservices companies, the Moldovan market has outstanding opportunities for growth and joint-venture partnerships, particularly in the insurance sector.

Moldova ranks 78th out of 189 economies in the World Bank’s 2014 Doing Business report and 89th out of 148 economies in the World Economic Forum’s 2013-2014 Global Competitiveness Report. The Moldovan government’s Regulatory Reform Strategy 2013-2020 aims to tackle the problems.

Ambitions for Insurance Asterra Group is urging European companies to explore opportunities in Moldovaʼs insurance sector.

The business prides itself on innovation and is now investigating opportunities in health insurance. “We could use the know-how of a European partner to better create and promote this package. It is very important to find a partner in this field to make the product the best it can be,” Director Roman Andronic said.

Asterra Group is open to selling shares to achieve this.

“A joint venture would allow a win-win situation for both parties,” Roman Andonic said. “We welcome the opportunity to develop a strong business with them.”

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Finance & Insurance

A Moldovan Success Story Svetlana Banari, Chairman of

the Managing Board, discusses Moldindconbankʼs success story in Moldova.

European Times: Can you describe shortly the history of Moldindconbank?

Founded on July 1st 1959 as the Moldavian branch of USSR Stroybank, Moldindconbank is considered one of the oldest banks in Moldova, celebrating 56 years of success this year. In 1991, the bank performed the transition to the market economy by becoming a Joint Stock Company, which nowadays provides one of the most diversified and qualitative banking services to both corporate (over 18,000 entities) and retail customers (over 330,000 persons).

European Times: What is the present Moldindconbank market position?

Today, Moldindconbank is one of the leading Moldovan commercial banks, ranking second by total assets and managing the second largest loan portfolio, with market shares of 14.7% and 17.3% respectively (Q3 2014 data).

However, for the last two years we maintain the leading position as the most

Valerian Mîrzac, Chairman of the Board of Directors

efficient bank, registering highest financial indicators on the market, such as ROA (return on assets) – 3.2% and ROE (return on equity) – 25.9% (Q3 2014 data).

European Times: Where are Moldindconbank’s services provided?

The bank operates mainly on the Moldovan market and has the second largest branch network with 124 offices and 152 ATMs, covering all regions and cities of the country. Also, the bank is focussing on smart banking solutions, by investing in the latest internet and mobile technologies so that we can serve our clients wherever they are.

European Times: What are the main achievements of the bank?

We consider one of the main achievements the development of a highly competent managing system that can effectively realise the most enthusiastic business strategies. But it wouldn’t be possible without building trustworthy and durable relationships with our

1

Svetlana Banari, Chairman of the Managing Board

customers. Therefore we helped our entities to improve their business and individuals to fulfil their needs.

European Times: What are the key factors of Moldindconbank success?

One of the main ingredients of our success is providing long term financing to local businesses and the national economy, where Moldindconbank is a leader by amount of funds contracted from international financial institutions. In this order, the bank established reliable partnerships with such notorious organisations such as EBRD, World Bank, FMO and BSTDB. This strategic cooperation is even more important as the local demand for investments is constantly increasing due to the structural economic reforms carried by the Moldovan government.

BC Moldindconbank S.A. 38, Armeneasca Street, 2012 Chisinau Tel.: +373 22 57 67 82, www.micb.md

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MOLDOVA

Pharmaceuticals

“ Moldova is a European country and its people have a European mentality.”

Andrei Usatîi, Minister of Health

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MASTER REGIO

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Pharmaceuticals

Minister of Health Cites Impressive Progress in Healthcare System I began to establish a sustainable network of physicians and health centres throughout the country.

Today, every community with 4,000 people or more has a health centre and we plan to set up around 100 more centres. Moldova can now guarantee proper medical treatment.

In addition, thanks to reforms over the past four years, our hospitals are much more efficient. This year, we opened a new surgical hospital with 16 state-of-the-art operating rooms in May and now the general public has access to top-quality surgical treatments.

Dr. Andrei Usatîi, Minister of Health, discusses recent developments in Moldovaʼs healthcare sector. He also highlights opportunities for

international investors and partners.

European Times: Can you discuss some recent advances in Moldova’s healthcare sector?

Andrei Usatîi: I studied medicine in Moldova and Russia, and also worked in Canada. In upgrading Moldova’s healthcare system, I have tried to implement what I learned in Canada, particularly concerning primary care. Beginning in 2000 when I was the deputy minister,

1

European Times: What are your top priorities for the healthcare sector?

Andrei Usatîi: Moldova needs to ensure that the healthcare system is workable and is focused on outcomes.

This involves four pillars. The first is financing, and we have succeeded in more than doubling our healthcare financing, from €2 billion in 2009 to €5 billion today. Our next pillar is development. We need to adjust to a new system of healthcare. The third pillar is to be more efficient in our training and management of our healthcare professionals. Finally, our main challenge is human resources. We need to motivate our physicians to remain here in Moldova. We received around €58 million between 2010 and 2014 from international partners, including the EU, for training programmes and other improvements to our healthcare system,

and many of our physicians have been trained abroad. We continue to develop our healthcare infrastructure.

European Times: Are there opportunities for international investors in Moldova’s healthcare sector?

Andrei Usatîi: Moldova welcomes international investors in the healthcare sector, including through public-private partnerships. We are currently looking for a partner to develop a new regional hospital.

European Times: What is your personal message to potential investors?

Andrei Usatîi: Moldova is a European country and its people have a European mentality. We are committed to developing a healthcare system which provides universal access to quality healthcare services, and Moldova has a good track record as an international partner.

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MOLDOVA

ICT

“ Investors can count on strong growth for their ICT projects here.”

Pavel Filip, Minister of Information Technology and Communications

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ICT

ICT Minister Outlines Ambitious Projects for 2020 Pavel Filip, Minister of Information Technology and Communications

used at its full potential and special measures are imposed in order to raise the efficiency of its use as well as to guarantee the right of access and the use of national backbone networks by local providers of electronic communications services. We are also implementing a national program for the efficient use of radio frequency spectrum which will create new conditions for operators to develop mobile services based on principles of neutrality of technologies. Thanks to a range of measures oriented to stimulate competition and investment, Moldova already enjoys very fast Internet connection speeds and is listed in the top 20 countries with the fastest Internet speed at a global level.

European Times: Can you highlight opportunities for investors in Moldova’s ICT sector?

Digital Moldova 2020 Strategy sets out four main goals for the countryʼs ICT sector: to continue the development of the countryʼs ICT infrastructure; to create local digital content; to educate and train the Moldovan population to make the best use of ICT services; and to ensure cyber security.

Pavel Filip, Minister of Information Technology and Communications, discusses his country’s ICT development strategies. The minister recently received the Medal of International Communications from the UN for his efforts to develop Moldova’s ICT sector.

European Times: What are some of your recent ICT projects?

Pavel Filip: Moldova now has a fibre-optic network which covers most of the country (about 85% of the communities) and which will cover the entire country by 2020. According to a new law on the shared use of electronic communications infrastructure which will be adopted soon, all new bridges, roads and buildings must be fitted with a special place for Internet cables.

We feel that the electronic communications infrastructure is not

Pavel Filip: Currently, a series of dynamic IT companies with an impressive turnover, which are focused on providing IT outsourcing services to foreign companies, are operating in the Republic of Moldova. Currently, employees of IT companies (developers) have special tax incentives in the form of exemption from the payment of the mandatory state social insurance and income tax until 2016, inclusively. We have also strengthened our regulatory environment to provide additional protection for investors. In a partnership with USAID, the Ministry of Education and the Technical University of Moldova and with participation from a variety of national and multinational IT companies like Microsoft, IBM and others, we are preparing to open a Centre of Excellence in ICT training and education to provide skilled human resources for the ICT industry.

European Times: How important is the ICT sector to Moldova’s economy?

Pavel Filip: I believe that Moldova’s economic development will be driven by the ICT industry. Moldova is a small country whose wealth is its people, with their knowledge, their intelligence and their capabilities. This is why we are focusing on building a knowledge-based economy in Moldova; a knowledge-based economy is driven by ICT. With the association agreement being signed with the European Union, Moldova will now be even more attractive to foreign investment, not only from Europe, but the world. And I am confident to say, investors can count on strong growth for their ICT projects here.

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MOLDOVA

Software Development Services that Meet Highest Global Standards EST Computer has made a

name for itself as a provider of

exceptional

development customers

software

services

worldwide.

for

The

company specialises in B2B services and works with a

number of clients in the U.S. healthcare industry.

Dr. Ioachim Drugus, founder and CEO, is a well-known pioneer in Moldova’s ICT sector. “After a career in the US for seven years, I returned to Moldova to set up this company, because this is my home, and since this country offers high-quality labour at competitive prices. Companies that choose outsourced software services from Moldova can count on quality at very attractive costs,” Dr. Ioachim Drugus states.

Since the company’s main customers are in America, the company develops B2B software in compliance with the American X12 electronic data interchange standard. However, both X12 and EDIFACT – the standard compliant with EU criteria and recommended by the UN for worldwide use, have the same foundational principles and the transition to EDIFACT is “doable.”

Therefore, Dr. Ioachim Drugus is sure that EST Computer is ready for cooperation with foreign companies interested in B2B based on EDIFACT. Besides outsourced services, the company is working on its own sci-

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ence-consuming hi-tech solutions. As an associate researcher of the Institute of Mathematics and Computer Science (IMCS) of the Academy of Sciences of Moldova, Dr. Ioachim Drugus is focused on modelling natural languages – one of the active directions of research at IMCS. The research results are implemented into several projects which in turn, attract professional researchers and university graduates. Even though this activity does not bring profit, he regards it with the same importance as the basic activity on outsourced services. Furthermore, this activity helps select gifted young people and prepares them for future projects.

Dr. Ioachim Drugus thinks this direction of R&D is very important and provides the reason that Europe has the largest linguistic diversity in the world. “This technology means Europeans could both enjoy speaking their native language and enhance their intercommunication, if computers serve as their omnipresent interpreters. Imagine yourself speaking English

over your mobile with an interlocutor speaking Swedish, and you both perfectly understand each other. This will become a reality as soon as intelligent software is developed,” he says. Dr. Ioachim Drugus is open to working with investors and partners from Western Europe, and considers this project as a first priority project for investment.

He believes, that “the risks for investments in Moldova are significantly lower than in other regions, due to low costs and professional labour.

As to quality, the fact that numerous American healthcare organisations and companies are using software developed in Moldova, speaks for itself.” His dream is that, in several years, Moldova will become the “Software Klondyke” of Europe.

EST Computer SRL bd. Stefan cel Mare 171/1, et. 3, MD-2004 Tel.: +373 22 85 69 66 office@estcomputer.com www.estcomputer.com

THE EUROPEAN TIMES

• Promoting Cultural Heritage • Top Off-the-Beaten-Track Destination

Tourism

“We plan to continue to promote culture throughout the country and upgrade our cultural attractions with the help of investors.”

Monica Babuc, Minister of Culture

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MOLDOVA

Promoting Cultural Heritage project, and around €9 million in funding will be used to upgrade 1,000 rural libraries over the next five years.

Moldova is also allocating more state funding for cultural projects, including for renovating museums which are also architectural monuments. Thanks to promotional efforts, this year’s “Night of the Museums” event attracted over 43,000 people, double the usual number. The Ministry of Culture has also greatly improved our collaboration with local administrations, which are beginning to promote local cultural projects. We have organised training in Romania for some of our cultural authorities, and Moldova’s circus building, which was closed for 10 years, has just been reopened, although its arena with seating for 2,000 still needs to be restored.

European Times: Can you highlight some of Moldova’s cultural achievements?

Monica Babuc: Moldova has a long history of opera and theatre and is hosting the 23rd International Festival of Opera and Ballet this year in our National Theatre. We also have thriving theatre, music and film schools, and our cultural heritage includes unique costumes, dances and crafts. Many architectural monuments and fine museums can be found throughout the country, including the 17th century Adormirea Maicii Domnului church in Causeni, which needs to be renovated, and Orheiul Vechi (old Orhei) on the Raut river. Moldova has a rich cultural heritage with much to offer international visitors.

Monica Babuc, Minister of Culture, outlines her ministryʼs recent projects to promote Moldovaʼs

cultural

heritage.

She

also

discusses the ministryʼs efforts to make

the Moldovan people more aware of the importance of preserving their culture.

European Times: What are some of your recent projects?

Monica Babuc: One of our biggest achievements has been to draw the public’s attention to culture. One of our projects is Novateca, which began as a pilot project last year with support from the Bill and Melinda Gates Foundation. We have upgraded 69 libraries through this

126

European Times: How will Moldovan culture be represented at Expo Milano in 2015?

Monica Babuc: We will show a film of traditional Moldovan folk dancing as well as exhibits on national costumes, traditional music, traditional food, modern artists and cultural festivals.

European Times: What are you planning for the future?

Monica Babuc: Moldova’s Culture 2020 strategy includes attracting investment to cultural activities, such as fashion design and cinema, and promoting Moldovan crafts. We also plan to continue to promote culture throughout the country, showcase Moldovan culture to the world, and upgrade our cultural attractions with the help of investors.

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MASTER REGIO Tourism

World-Class Hotel in the Heart of Chisinau

Manhattan Hotel has been rated one of Chisinauʼs top five hotels since it opened five years ago, and the hotel has won the coveted Trip Advisor “Certificate of Excellence” for its world-class facilities and services.

Eugen Jarcutchii, general manager, explains that service makes the difference at Manhattan Hotel. He says, “This is a family-owned hotel and we treat both our staff members and our guests as members of our family. Our boss is my mother, Zinaida Jarcutchii.”

The hotel offers a state-of-the-art conference facility for up to 70 guests, a well-equipped business centre, a rooftop terrace with views of the city, a spa, 24-hour room service, WiFi connections throughout the hotel, desks in guestrooms, and much more. The hotel’s food and beverage options are Manhattan restaurant, serving European, international and Moldovan cuisine à la carte, and the Manhattan Lounge Bar, designed in the style of New York City’s Little Italy. Events can also be organised on the terrace. Manhattan Hotel is a winning combination of Manhattan’s sophistication and style with Moldovan hospitality.

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Adding new rooms and expanding facilities A boutique property with 33 guestrooms and suites, Manhattan Hotel will be expanded over the next two years and will eventually offer 50 guestrooms. The owners also plan to expand the hotel’s restaurant and conference facilities.

Manhattan Hotel

Strada Ciuflea 1, Chisinau 2001 Tel.: +373 22 260 888

reservation@manhattan-hotel.md reception@manhattan-hotel.md www.manhattan-hotel.md

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MASTER MOLDOVA REGIO

Moldova’s Top Hotel Going to the Next Level The

Leogrand

Convention

Hotel

Centre

and

in

Chisinau is Moldovaʼs leading business

hotel

and

top

convention venue for the past 12 years, and is set to become

even more distinctive thanks to a €10 million renovation and

expansion

project

undertaken by the hotelʼs owner, Summa International

Construction, in partnership with

the

Carlson

Rezidor

groupʼs Radisson Blu brand.

The new five-star Radisson Blu

143

Leogrand

upscale

Hotel

offers

guestrooms

and suites, and a range of brand-new

facilities.

The

suites are perfectly fitting for any executive and feature a presidential level of quality.

Summa International Construction developed the Leogrand Hotel & Convention Center. This Turkish company is ranked in the top 225 international contractors, according to the ranking of ENR (Engineering News-Record), and has already developed major real estate projects in Moldova including Shopping MallDova, Medpark, the first private

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international hospital in Moldova, and Crown Plaza Residences.

Trip Advisor Certificate of Excellence 2014 The Leogrand Hotel and Convention Centre is known for its winning combination of the highest international standards; a warm Moldovan welcome and outstanding service. Winner of the coveted Trip Advisor Certificate of Excellence in 2014 and 2013, the Leogrand enjoys an ideal location in the heart of Chisinau, Moldova’s capital. It is the preferred hotel for visiting foreign diplomats and notable world leaders such as United States Vice President Joe Biden, President of the European Commission José Manuel Barroso, the Prime Minister of Turkey Recep Tayyip Erdogan. Guests can take advantage of the location being near the entire city’s

major government, business, cultural, shopping, and entertainment venues.

The Leogrand has already made a name for itself in Moldova. In addition to its top-quality convention facilities, the hotel offers the popular Ambassador Restaurant for fine dining, the Caffe INN Terrace for more casual meals, and Apty’s Pub, which is open until the early hours of the morning.

Husnu Tayanc points out, “most of Moldova’s important events are held

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Tourism

industry and a gateway for Moldova to both foreign investors and tourism visitors, Husnu Tayanc believes. He says, “We expect to be one of the top five ranking Radisson Blu chain hotels once the renovation and expansion project are completed. We count on Moldovan hospitality to continue to keep our service level high.”

Ideal location and exceptional quality of life in the Leogrand, not only because of our great meeting space but also because of our exceptional catering services. We can offer any type of cuisine and our banquet team can make any event a success. It truly is world class.”

The Leogrand’s additional services include an airport shuttle, a fully equipped business centre, modern fitness centre with a sauna, spa services, and a beauty salon which is considered to be the best in Moldova. Guests are able to take advantage of the hotel’s partners located on the premises who are able to organise tours of the city or a tour of Moldova’s best-known wineries, including Cricova, Purcari, Milestii Mici, and Chateau Vartely. At request, the Leogrand can arrange chauffeured transport and a translator to accompany guests.

Moldova’s first five-star international-brand hotel Through the project with Carlson Rezidor, the Leogrand will be taken to the next level. “We are delighted to announce our partnership and to arrive in Moldova to open the first five-star, internationally branded chain hotel in Chisinau. We are further strengthening our position as the leading international hotel operator in

Russia, the CIS region, and the Baltics,” says Carlson Rezidor’s CEO and President Wolfgang M. Neumann. Carlson Rezidor operates 75 hotels with a total of almost 18,800 rooms in the region.

The Radisson Blu Leogrand Hotel will pamper guests with free high-speed internet access, two new upscale restaurants, a gourmet roof restaurant and bar, a more casual dining option featuring Tex-Mex cuisine in New York style, one all-day dining restaurant, one bar, and a 400 sq m ultra-luxurious fitness and spa centre.

More than 2,000 sq m of meeting facilities The hotel is already equipped with the world’s finest and newest IT engineering technologies. Looking forward, the upgraded hotel will continue to boast the same state-of-the-art facilities with an expansion to more than 2,000 sq m for conventions and meetings. Husnu Tayanc says, “We will also expand our parking facilities and expand and upgrade our fitness centre and spa, which will be a global classic. The hotel will still have our popular beauty salon and many boutiques.”

The new Radisson Blu Leogrand will serve as a benchmark in Moldova’s hotel

Husnu Tayanc highlights Moldova’s many investment incentives, rapidly developing infrastructure supported by private investment, business-friendly government, and wealth of investment opportunities. He urges leisure travellers as well as potential investors to discover Moldova, for example on a wine tour. He says, “For investors, Moldova is ideally located with easy access to the Romanian, Ukrainian or Turkish markets. For leisure travellers, Moldova is an exciting stop on a tour of the region.”

Defining what makes Moldova an attractive investment and vacation venue, Husnu Tayanc says, “I love Moldova.

Moldovans have a very modern attitude and the country’s cultural mix is dynamic. Also, the quality of life is high. The pace is not too fast here, Chisinau is a very safe city, the government supports foreign investors, the people are welcoming, the nightlife is vibrant, and of course Moldovan wine and food are outstanding.” For visitors and investors, the Leogrand is and will continue to be the top hotel of choice in Moldova.

Leogrand Hotel & Convention Center Mitropolit Varlaam str. 77 2012 Chisinau Tel.: +373 22 201 201 info@leograndhotels.com reservation@leograndhotels.com www.leograndhotels.com

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MASTER REGIO

Top Off-the-Beaten-Track Destination Ranked the number two off-the-beaten-track

© Serghei Starus-Dreamstime.com

tourism destination in the world by Lonely Planet readers in 2013, Moldova is making a name for itself in the global travel industry.

The capital, Chisinau, is filled with parks and gardens and offers lively nightlife and a growing choice of dining options.

It also has several hotels with world-class services for both business and leisure travelers.

Visitors can also taste Moldova’s famous wines and tour local wineries. One of the best known is Cricova, 15 km north of the capital, which has 120 km of cellars dating from the 15th century; around half of them are lined with wine bottles. The Moldovan Wine Festival is held every year in the first week of October.

Moldova’s top historic landmark is Orheiul Vechi (‘Old Orhei’), near modern Orhei. Overlooking the Raut River, it includes ruins, thermal baths, caves and religious structures built over the centuries; some constructions date back more than 2000 years. The Cave Monastery in Orheiul Vechi was carved out of a cliff by monks in the 13th century.

The best Moldovan travel agencies can provide a range of services for European travel-industry partners and for tourists, from arranging airport transfers and hotel reservations to organizing guided wine tours, business conferences and more. Moldova welcomes visitors.

High-Quality Services for International Visitors Voiaj International has been playing a major role in the development of Moldova’s tourism sector since the travel agency was founded in 1995. Today, thanks to Moldova’s Association Agreement with the EU, Voiaj International is looking forward to continued strong growth as Moldova’s visitor numbers continue to increase.

Managing Director Afanasie Esanu points out, “Voiaj International has established partnerships with a number of global corporate clients, including Carlson Wagonlit. These partnerships are the result of our company’s very high standards.”

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Watchtower in Chisinau

Lonely Planet guidebooks ranks Moldova Europe’s number one off-the-beaten-track destination, and Voiaj International makes sure that international visitors to Moldova can count on world-class travel services there. Ecaterina, who oversees the company’s services for international visitors, explains that Voiaj International offers cultural and adventure tours, airport transfers, wine-tasting excursions, hotel bookings, guides, business-travel support (including team-building exercises, conferences and seminars), and personalised travel support.

Afanasie Esanu is very open to more EU partnerships. He says, “We want to develop our relationships with companies in the EU in order to bring more business and leisure travelers to Moldova and help boost investment in the country. I welcome visitors to Moldova. Come see, taste and touch our country. You will love it!”

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Tourism

Newest Business Hotel in Chisinau The

four-star

Regency

Hotel

opened its doors at the end of

2012 and is Chisinauʼs newest business

hotel.

Established

through a Moldovan and Greek

joint venture, the hotel is led by Ion Cebotari, the general manager, a notorious person in the hospitality industry in Moldova.

Ion Cebotari explains: “From the beginning we focused on implementing the style and standards of a top-of-theline European four-star hotel. I’m an engineer by trade, but have worked in the hotel business throughout my professional life, and I’m glad that I managed to combine all my professional skills in order to establish Regency Hotel.”

The hotel is clearly a success. During its first year of operation, Regency received the distinction of the Most Booked Hotel in Chisinau, according to booking. com, leading the chart for almost a year.

“Today we are number two in the chart but taking into consideration our small capacity it is quite a challenge for us to compete with bigger hotels. We are proud to say that services at Regency Hotel correspond to the European standards and are the best in Chisinau, but at the same time if somebody offers constructive criticism, we always do our best to improve and be even better.”

Around 80% of the hotel’s guests are business travellers, depending on the season. Regency has established partnerships with most of the travel operators from Moldova and has already provided services for accommodating tourist groups from

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all over the world. “During our 2 years of activity we had guests from over 48 different countries. Each guest is unique for us; this is why we try to provide services to fulfil most of our clients’ wishes. Somebody can ask for a room with a bathtub or shower only, or somebody says I don’t want carpet in my room then we provide a non-carpeted room, we do everything at Regency just to make our guests happy,” Ion Cebotari says.

Regency Hotel is popular because of its central location, high-quality conference facilities, cleanliness, European standard services and comfortable rooms. “Thanks to our conference facilities, we are able to attract high-profile guests. We have organised events for different local state and private institutions, as well as for EU institutions from Brussels, WHO, UN and other important organisations,” Ion Cebotari says.

“We feel responsible to make the stay of foreign guests in Moldova as enjoyable as possible, trying to make them like our country and our people as much as possible,” he says, “and we want to play a

key role in making Moldova better known worldwide. Moldova and Moldovan people need to market themselves, because they work hard and do great things. Here at Regency Hotel, we will continue to focus on serving every guest’s individual needs and handling every possible situation with a smile.”

“Me and my family plan to develop a chain of hotels in Moldova, since not only Chisinau city is in need for high quality hospitality services. We are open for partnerships with international investors in this regard and we are ready to work with any investor that is committed to developing the Regency brand and doing business in the right way.” To travellers, he concludes: “Come to Moldova, stay with us and experience it for yourself !”

Regency Hotel 17 Sfatul Tarii Str., 2012 Chisinau Tel.: +373 22 999 100 +373 60 999 100 + 373 78 999 100 booking@regency.md www.regency.md

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