MOLDOVA

Republic of Moldova

Republica Moldoveneasca

CAPITAL: Chişinău

FLAG: Equal vertical bands of blue, yellow, and red; emblem in center of yellow stripe is Roman eagle with shield on its breast.

ANTHEM: n/a

MONETARY UNIT: The leu is a paper currency, replacing the Russian ruble. 1mld = $0.07962 (or $1 = mld12.56) as of 2005.

WEIGHTS AND MEASURES: The metric system is in force.

HOLIDAYS: Independence Day, 27 August.

TIME: 2 pm = noon GMT.

LOCATION, SIZE, AND EXTENT

Moldova is a landlocked nation located in eastern Europe, between Ukraine and Romania. Comparatively, it is slightly larger than the state of Maryland with a total area of 33,843 sq km (13,067 sq mi). Moldova shares boundaries with Ukraine on the n, e, and s; and Romania on the w. Moldova's border length totals 1,389 km (864 mi).

Its capital city, Chişinău, is located in the south central part of the country.

TOPOGRAPHY

Moldova consists mostly of a hilly plain that is cut by deep valleys with many rivers and streams. The terrain slopes gradually southward. The Codri Hills run through the center of the country and contain the nation's highest point of Mount Balanesti, at 430 meters (1,410 feet). The lowest point is along the Dniester River, with an elevation of 2 meters (6.6 feet).

The Dniester, along the eastern border, is the longest river with a total length of 1,400 kilometers (870 miles). The second longest river, the Prut, is a major tributary of the Danube. There are no major lakes, but saline marshes are found along the lower reaches of the Prut and in river valleys of southern Moldova.

CLIMATE

The climate is of the humid continental type. The country is exposed to northerly cold winds in the winter and moderate westerly winds in the summer. The average temperature in July is 20°c (68°f). The average temperature in January is -4°c (24°f). Rainfall averages 58 cm (22.8 in) a year.

FLORA AND FAUNA

Three-fourths of the country's terrain features chernozem (black soil), which supports the natural vegetation of steppe-like grasslands. The central hill country is densely forested. Common trees include oak, maple, linden, hornbeam, and beech. Badgers, pole-cats, ermines, wild boar, foxes, and hares are common animals. Larks, blackbirds, and jays are common birds. Carp, bream, trout, and pike populate the lakes and streams. As of 2002, there were at least 68 species of mammals, 175 species of birds, and over 1,700 species of plants throughout the country.

ENVIRONMENT

The natural environment in Moldova suffers from the heavy use of agricultural chemicals (including banned pesticides such as DDT), which have contaminated soil and groundwater. Poor farming methods have caused widespread soil erosion. In 2000, total carbon dioxide emissions was at 6.6 million metric tons. As of 2003, 1.4% of Moldova's total land area is protected. According to a 2006 report issued by the International Union for Conservation of Nature and Natural Resources (IUCN), threatened species included four types of mammals, eight species of birds, one type of reptile, nine species of fish, and five species of invertebrates. Threatened species include the European bison, European souslik, and the great bustard.

POPULATION

The population of Moldova in 2005 was estimated by the United Nations (UN) at 4,206,000, which placed it at number 121 in population among the 193 nations of the world. In 2005, approximately 10% of the population was over 65 years of age, with another 20% of the population under 15 years of age. There were 92 males for every 100 females in the country. According to the UN, the annual population rate of change for 2005–10 was expected to be -0.2%; the rate fell below zero in the mid-1990s. The government is concerned about the low fertility rate and high emigration rate, both of which contribute to the population decline. The projected population for the year 2025 was 3,967,000. The population density was 125 per sq km (323 per sq mi).

The UN estimated that 45% of the population lived in urban areas in 2005, and that urban areas were growing at an annual rate of 0.47%. The capital city, Chişinău, had a population of 662,000 in that year. Tiraspol had an estimated 209,800 people; Bălţi (Beltsy), 207,738; and Tighina, 144,900.

MIGRATION

There was a net emigration of 6,000 in 1979–88 to other Soviet republics. This grew to 16,300 in 1989 and 29,800 in 1990. Since independence in 1991, Moldova has experienced difficulties. A short but violent civil war in 1992—the Trans-Dniestrian conflict—resulted in the internal displacement of some 51,000 people and the external displacement of some 56,000 refugees, who fled to the Ukraine. There is no central authority in Moldova that registers and determines claims for refugee status. In 2004, there were 57 refugees and 184 asylum seekers. In 2004, some 5,641 Moldovans were refugees in Germany and 4,799 in the United States. Between 2000 and 2004, 900 Moldovans sought asylum in European and non-European countries. However, in 2004 over 6,700 Moldovans sought asylum in European countries, Ireland, and the United Kingdom. In 2005, the net migration rate was an estimated -0.25 migrants per 1,000 population, a significant change from -5.8 per 1,000 in 1990. The government views the immigration level as satisfactory, but the emigration level as too high.

ETHNIC GROUPS

The most recent estimates indicate that the population is 64.5% Moldovan/Romanian; 13.8% Ukrainian; 13% Russian; 2% Bulgarian; 1.5% Jewish; and 5.2% Gagauz or other. The Gagauz are a Christian Turkic minority that live primarily in the south. The government estimates the number of Roma to be about 11,600; however, nongovernmental organizations have placed the estimated Romani population at anywhere between 20,000 and 200,000.

LANGUAGES

Moldovan, the official language, is considered a dialect of Romanian rather than a separate language. It is derived from Latin but, unlike the other Romance languages, preserved the neuter gender and a system of three cases. There are a large number of Slavonicderived words. Under Soviet rule the language was written in the Cyrillic alphabet, but Latin script was restored in 1989. This switch has caused problems, particularly in the separatist Transnistrian region where local authorities have closed schools that were teaching the Latin script.

Russian and Gagauz, a Turkish dialect, are also spoken within the country. Government officials are expected to know both Moldovan and Russian.

RELIGIONS

Over 90% of the population belong to one of two Orthodox denominations: the Moldovan Orthodox or the Bessarabian Church. About 3.6% of the population belong to the Old Rite Russian Orthodox Church (Old Believers). Other Christian denominations include Roman Catholics, Baptists, Pentecostals, Seventh-Day Adventists, Jehovah's Witnesses, Lutherans, Presbyterians, and Mormons. The Jewish community has about 31,300 members. There are also communities of Muslims and Baha'is. Though there is no state religion, the Moldovan Orthodox Church has a privileged status with the state and the government imposes some restrictions on religious groups that are not officially registered. For instance, unregistered groups are not permitted to build churches.

TRANSPORTATION

In 2004, Moldova's railroad system consisted of 1,138 km (707 mi) of standard and broad gauge railways, not including industrial lines. Of that total, broad gauge accounted for nearly all of it at 1,124 km (698 mi). As of 2003, Moldova's highway system consisted of 12,730 km (7,910 mi) of roadway, of which 10,973 km (6,818 mi) were paved. As of 2004, Moldova had 424 km (263 mi) of inland waterways. As of 2005, Moldova's merchant fleet consisted of two cargo vessels of 1,000 GRT or more. Access to the sea is through Ukraine or Romania. There were an estimated 23 airports in 2004, six with paved runways, as of 2005. Air transport is provided by Air Moldova International and Moldavian Airlines, both private carriers, and a state company, Air Moldova. In 2003, about 179,000 passengers were carried on domestic and international airline flights.

HISTORY

The region that is now Moldova (also called Bessarabia) has historically been inhabited by a largely Romanian-speaking population. The region was part of the larger Romanian principality of Moldova in the 18th century, which in turn was under Ottoman suzerainty. In 1812, the region was ceded to the Russian Empire, which ruled until March 1918 when it became part of Romania. Moscow laid the basis for reclaiming Moldova by establishing a small Moldovian Autonomous Soviet Socialist Republic on Ukrainian territory in 1924.

The 1939 Nazi-Soviet pact assigned Moldova to the Soviet sphere of influence. Soviet forces seized Moldova in June 1940. After the Nazi invasion of the USSR, Germany helped Romania to regain Moldova. Romania held it from 1941 until Soviet forces reconquered it in 1944.

Moldova declared its independence from the USSR on 27 August 1991. In December, Mircea Snegur was elected the first president of the new nation. Moldova's new constitution was adopted on 28 July 1994, replacing the old Soviet constitution of 1979. The Agrarian Democratic Party, composed largely of former Communist officials, won a majority of seats in the new parliament elected the same year.

Although independent, Moldova has remained one of the poorest countries in Europe and has confronted internal problems with two breakaway regions, the predominantly Turkish Gagauz region in the southern part of the country, and the largely Russian Transdniestria region east of the Dniester River. Russian forces have remained in the latter region and have supported its Russian population in proclaiming an independent "Transdniestria Republic," with which the Moldovan government was still trying to reach a political settlement as of 2003.

Petru Lucinschi (Independent), former speaker of the parliament, defeated Snegur in a December 1996 presidential runoff election (54% to 46%) and became Moldova's new president early in 1997. The following year, Moldova's Communist Party won a parliamentary majority in legislative elections. By 1999 Lucinschi was seeking to strengthen the nation's presidency in order to overcome an extended stalemate between the executive branch and parliament that was preventing the government from effectively addressing the nation's pressing economic problems. In a referendum, voters approved constitutional changes proposed by Lucinschi, but they were rejected by the parliament.

In July 2000, parliament cancelled the direct election of the president, and he or she is now elected by parliament for a four-year term. Parliament failed to chose a new president by December 2000, and early parliamentary elections were held in February 2001. Communists took 71 of 101 seats, and in April, Vladimir Voronin, head of the Communist Party, became president. Voronin campaigned on a platform of protecting human rights, continuing the process of democratization, and ensuring that citizens had adequate food, employment, and medical care.

In February 2003, Voronin, a native of Transdniester, proposed a new initiative to settle the dispute with Transdniester. He called for a new constitution that would turn Moldova into a loose confederation of two states, and grant the Russian language official status. Both Moldova and Transdniester would have their own governing and legislative bodies, and budgets. Defense, customs, and monetary systems would be common for the federation. However, when in January 2002 plans had been announced to make Russian an official language and compulsory in school, mass protests were held, and ended only when the plans were revoked. As of February 2003, Russia maintained 2,500 troops in Transdniester, although in 1999 it agreed to withdraw all of its troops by 2001. The situation in Transdniester is complicated by fears among the Slavic population of Moldova's unification with Romania. On the other hand, at the beginning of 2003, consultations were taking place on the possible entry of Moldova into a union with Russia and Belarus.

The Communist Party stayed on track with market reforms and the European integration process. Although it is considered to be one of the poorest countries in Europe, and despite an economic base that is fairly fragile, between 2001 and 2004 Moldova registered GDP growth rates of over 6%. Also, the national currency—the Moldovan leu—was been very stable over this time period.

In the March 2005 elections the Communist Party managed to hold on to power by garnering 46.1% of the votes; the Democratic Moldova Bloc got 28.4%, the Christian Democratic Popular party (PPCD) got 9.1%, and other parties got 16.4%. The popularity of the Communist Party was not as big as it was in 2001—they only won 56 parliamentary seats out of the 101 available—but they still managed to vote President Voronin in for a second term.

Moldova's middle-term goal of joining the European Union, and its short term goal of having its citizens travel freely within the Schengen space, were hampered by the raging conflict in the Transdniester region. The European Union stated that Moldova had no immediate prospects for integration.

GOVERNMENT

Elections to Moldova's first postindependence parliament were held on 27 February 1994. The parliament consists of a single chamber of 101 seats, and members are elected for four-year terms on the basis of proportional representation. In order to enter the parliament, parties must garner at least 6% of the votes; blocks of two parties need 9%, blocks of three or more parties need 12%, while independent candidates have to poll at least 3%. The votes obtained by the parties that did not pass these thresholds are redistributed in favor of the parties that did, according to their overall representation in the Parliament.

Prior to 2000, the president was directly elected. As of July 2000, however, the president is elected by parliament for a four-year term and may serve no more than two consecutive terms. The president nominates the prime minister upon consultation with parliament. The cabinet is selected by the prime minister, subject to approval by parliament.

The July 1994 constitution and the law provide for freedom of speech, press, assembly, and religion; however, the law requires that religious groups register with the government. Peaceful assembly is allowed; however, permits for demonstrations must be approved and political parties and private organizations are required to register with the government.

Reforms approved in 1995 authorized the creation of a court to deal with constitutional issues and a system of appeals courts.

POLITICAL PARTIES

Although 26 parties or coalitions of parties participated in the February 1994 elections, only four received more than the 4% of the national vote (then) required to gain seats.

The Agrarian Party had been the largest political group in the parliament with a plurality of 46 seats, following the departure of 10 deputies in 1995. They left to join a new party, the Party of Renewal and Conciliation, headed by then-president Mircea Snegur. The Socialist-Edenstro bloc had 26 seats, while the pro-Romanian parties, the Popular Front and the Peasants and Intellectuals bloc, had 11 and 9 seats, respectively.

Although the Party of Moldovan Communists won the single largest number of parliamentary seats (40) in the elections held on 22 March 1998, they had insufficient support to form a governing coalition and thus remained an opposition party, while the governing coalition consisted of the Democratic Convention of Moldova (26 seats), the Bloc for a Democratic and Prosperous Moldova (24), and the Party of Democratic Forces (11).

Twelve political parties or blocs participated in the parliamentary elections held on 25 February 2001. Three of them gained seats in parliament: the Communist Party, 71; the centrist Braghis Alliance (led by Dumitru Braghis) of the Social-Democratic Alliance of Moldova, 19; and the conservative Christian Democratic Popular Party, 11.

In 2005, 9 parties, 2 alliances, and 12 independent candidates entered the electoral race. The Communist Party (PCRM) won 56 of 101 parliamentary seats, the centrist and pro-Russian Democratic Moldova Block (BMD)—led by Dumitru Braghis and Chişinău mayor Serafim Urechean—won 34, while the rightist and pro-Romanian Christian Democratic Popular Party (PPCD) won 11. Despite their fragile majority, the communists managed to vote former president Vladimir Voronin in for a second term—he received 75 of the 101 parliamentary votes. Vasile Tarlev was the designated prime minister.

LOCAL GOVERNMENT

Following administrative reforms, Moldova's 40 districts, or raions, have been reorganized into nine counties, one municipality (Chişinău), and two territorial units (Transdniestria and Gagauzia).

The Russian minority on the east bank of the Dniester River have proclaimed their independence as the "Transdniestria Republic," but it has not been recognized by the Moldovan government, which is, however, willing to allow this region a degree of autonomy. The predominantly Turkish Gagauz region has also been granted autonomy.

JUDICIAL SYSTEM

There are courts of first instance, an appellate court, a Supreme Court, and a Constitutional Court. The Supreme Court is divided into civil and criminal sections.

The Constitutional Court was created in 1995. A 1995 judicial reform law provided for a system of appeals courts.

There are district courts of the first instance and five regional tribunals. The Higher Appeals Court and the Supreme Court are both in Chişinău. However, as of 2003, there was a backlog of cases at the tribunal and the Higher Appeals Court levels, due to lack of funding.

The Superior Court of Magistrates nominates and the president appoints judges for an initial period of five years. The judges may be reappointed for a subsequent 10 years, and finally, on their third term, they serve until retirement age. The judiciary is more independent now than when it was subject to the Soviet regime. The Constitutional Court made several rulings in 1996 that demonstrated its independence. For example, in April 1996 the Constitutional Court found that the attempted dismissal of Defense Minister Creanga by President Snegur was unconstitutional. The Constitutional Court also overturned a Central Electoral Commission decision to exclude a presidential candidate from competing in the November 1996 election. And in 2000, the Court ruled that legislation requiring political parties to be registered for two years prior to participating in elections was unconstitutional.

Criminal defendants enjoy a presumption of innocence and are afforded a number of due process rights, including a public trial and a right of appeal. In practice, a number of convictions have been overturned on appeal.

In 2004 Moldova was deemed one of the most corrupt nations in the world. While the constitution states that the judiciary is independent, there have been several reports of political interference in the judicial process, and corruption among underpaid judges was believed to be pervasive.

ARMED FORCES

In 2005 the active armed forces numbered 6,750 personnel, backed by 66,000 reservists. The Army had 5,710 personnel, with 44 armored infantry fighting vehicles, 266 armored personnel carriers, and 227 artillery pieces. The Air Force had 1,040 active members, with five transport aircraft and eight support helicopters. There is also a paramilitary force that consisted of 2,379 internal troops and 900 riot police, all of which are under the Ministry of Interior. The defense budget for 2005 totaled $9.2 million. Moldova has peacekeeping forces in Sudan, Côte d'Ivoire, and Liberia. Russia has an estimated 1,400 troops stationed in Moldova.

INTERNATIONAL COOPERATION

Moldova was admitted to the United Nations on 2 March 1992, and is a member of the ECE and several nonregional specialized agencies, such as the IAEA, ICAO, ILO, IMF, UNCTAD, UNESCO, UNIDO, WHO, and the World Bank. Moldova joined NATO's Partnership for Peace on 16 March 1994. It is also a member of the Council of Europe, the WTO, the Black Sea Economic Cooperation Zone, the Commonwealth of Independent States (CIS), the Euro-Atlantic Partnership Council, the European Bank for Reconstruction and Development, the OSCE, and the NATO Partnership for Peace. In 2001, Georgia, Uzbekistan, Ukraine, Azerbaijan, and Moldova formed a social and economic development union known as GUAAM. Uzbekistan withdrew from the partnership in 2005.

In environmental cooperation, Moldova is part of the Basel Convention, Conventions on Biological Diversity and Air Pollution, CITES, the Kyoto Protocol, the Montréal Protocol, and the UN Conventions on Climate Change and Desertification.

ECONOMY

At 51% of GDP in 2000, services comprise the most important sector of Moldova's economy, while agriculture accounted for 28%. The country's wide range of crops provides significant export revenue and employment.

Moldova has no major mineral deposits and must import all of its supplies of coal, oil, and natural gas. Since the breakup of the Soviet Union in 1991, energy shortages have contributed to sharp production declines. Moldova is seeking alternative energy sources and working to develop its own energy supplies including solar power, wind, and geothermal. The country is implementing a national energy conservation program.

In 1998, the Moldovan economy experienced an 8.6% decline due primarily to fallout from the financial crisis in Russia, by far its biggest export market. Continuing financial turmoil in Ukraine and Romania hurt Moldova's exports, which were needed to pay for imports of fuel from these countries. About one-fourth of Moldova's external debt burden, which peaked at 75% of GDP in 2000, is traceable to energy imports from Russia, which has on occasion suspended gas supplies, and from the Ukraine and Romania, both of which have on occasion suspended electricity power to Moldova. Further isolation occurred in 1999 when the IMF halted loans following the refusal of the Moldovan parliament to carry out privatization plans. By year's end, the Moldovan economy had contracted to roughly one-third of its 1989 level, with end of period inflation soaring to 45.8%. In 2000, the contraction was halted with real GDP growth of 2.2%, and in December, the government entered into a three-year arrangement with the IMF under its Poverty Reduction and Growth Facility (PRGF). Although average inflation for 2000 was 31.3%, by the end of the year the rate had moderated to 18.5%. In 2001 and 2002, inflation has been reduced to single digits: 6.4% and 8%, respectively. Real growth was 6.1% in 2001 and peaked at 4.8% in 2002. The external debt burden had eased somewhat to 58% of GDP.

The economy continued to expand in the following years, registering GDP growth rates of 6.3% in 2003, and 7.3% in 2004; the estimates for 2005 place the growth at 6.0%. This increase was encouraged mainly by remittances send by Moldovans working abroad, and by a strong economic performance in Moldova's neighboring countries. However, the prolonged and deep economic recession that preceded this economic expansion put Moldova in a lagging position in comparison with all its neighbors.

Today, Moldova still is one of Europe's poorest economies. The GDP per capita was only $717 in 2004, and the country's production capacity was reduced due to the exodus of working-age Moldovans. The inflation rate was on the rise in 2004, reaching 12.4%, after falling to 5.2% in 2002. The fact that most of its industry is located in secessionist Transnistria and its dependence on trade with neighboring countries makes Moldova extremely vulnerable.

INCOME

The US Central Intelligence Agency (CIA) reports that in 2005 Moldova's gross domestic product (GDP) was estimated at $9.4 billion. The CIA defines GDP as the value of all final goods and services produced within a nation in a given year and computed on the basis of purchasing power parity (PPP) rather than value as measured on the basis of the rate of exchange based on current dollars. The per capita GDP was estimated at $2,100. The annual growth rate of GDP was estimated at 6%. The average inflation rate in 2005 was 12%. It was estimated that agriculture accounted for 20.5% of GDP, industry 23.9%, and services 55.6%.

According to the World Bank, in 2003 remittances from citizens working abroad totaled $465 million or about $110 per capita and accounted for approximately 23.5% of GDP. Foreign aid receipts amounted to $117 million or about $28 per capita and accounted for approximately 5.1% of the gross national income (GNI).

The World Bank reports that in 2003 household consumption in Moldova totaled $1.86 billion or about $438 per capita based on a GDP of $2.0 billion, measured in current dollars rather than PPP. Household consumption includes expenditures of individuals, households, and nongovernmental organizations on goods and services, excluding purchases of dwellings. It was estimated that for the period 1990 to 2003 household consumption grew at an average annual rate of 8.7%. In 2001 it was estimated that approximately 31% of household consumption was spent on food, 11% on fuel, 3% on health care, and 15% on education. It was estimated that in 2001 about 80% of the population had incomes below the poverty line.

LABOR

Moldova's civilian workforce in 2005 totaled 1.34 million. As of 2003, industry accounted for 16% of the labor force, while 43% were in agriculture, and nearly 41% were in the service sector. The unemployment rate in 2002 was estimated at 8%. Approximately 25% of working age Moldovans are employed outside the country.

The law provides workers with the right of association, including the right to form and join labor unions. The General Federation of Trade Unions of Moldova (GFTU) is the successor to the previously existing Soviet trade union system. Various industrial unions still maintain voluntary membership in the GFTU, and there have been no attempts to form alternate trade union structures. Government workers do not have the right to strike, nor do those in essential services such as health care and energy. Unions in the private sector may strike if two-thirds of their membership assents. Collective bargaining is used to negotiate workers' pay and benefits.

The unrestricted minimum working age is 18, with restrictions as to the number of hours that may be worked for those between 16 and 18 years of age. Children generally do not work except in agriculture on family farms. The labor code stipulates a standard workweek of 40 hours, with at least one day off weekly. In 2002, the monthly minimum wage was $9.00 in the public sector and $12.75 in private firms. The median salary was estimated to be $39 per month.

AGRICULTURE

Cropland covers about 65% of the Moldovan land area. Agricultural activities engaged 23% of the labor force in 2000. Agriculture is the most important sector of the Moldovan economy, accounting for 28% of GDP and 60% of exports in 2004. Agricultural output had an average annual decline of 13.7% during 1990–2000. Crop production during 2002–04 was up 7.2% from 1999–2001. In 2000, state-controlled farms accounted for only 1.2% of gross agricultural production, down from 10.2% in 1995. About 14% of all cropland is under irrigation.

Moldovan crops and their 2004 production amounts (in tons) include: sugar beets, 907,000; wheat, 690,000; grapes, 600,000; corn, 1,840,000; sunflowers, 331,000; barley, 260,000; potatoes, 318,000; and soybeans, 35,000.

Wine and tobacco products are important agricultural exports. Wine exports in 2003 were estimated at 20 million liters, accounting for about 3% of world market share. Tobacco production was 10,200 tons in 2004. All tobacco is grown on state farms; the monopoly and lack of buyers has limited privately grown tobacco. Wine and tobacco exports in 2004 were valued at $215.8 million and $8.9 million, respectively, and together accounted for about 23% of exports.

ANIMAL HUSBANDRY

About 13% of the total land area consists of pastureland. In 2005, the livestock population included 400,000 head of cattle, 500,000 pigs, 830,000 sheep, 115,000 goats, and 14,000,000 chickens. Pork production amounted to 38,500 tons in 2005, when 23,500 tons of beef were produced. In 2005, 630,000 tons of cow's milk and 43,000 tons of eggs were also produced.

FISHING

With no direct connection to the Black Sea, fishing is limited to the Dnister River. The total catch in 2003 was 2,981 tons, with carp accounting for 93% of the landings. Commercial fishing is not a significant part of the national economy.

FORESTRY

Forested areas accounted for about 9.9% of the total land area in 2000. Production is largely domestically consumed; wood and paper product imports in 2004 amounted to $29.2 million.

MINING

Moldova did not possess significant mineral resources. More than 100 deposits of gypsum, limestone, sand, and stone were exploited. Production totals for 2002 were: gypsum, 32,000 metric tons (estimated); sand and gravel, 300,000 metric tons; lime, 3,500 metric tons; and cement, 300,000 metric tons. Moldova also produced crude steel, peat, oil, and natural gas.

ENERGY AND POWER

Moldova, as of 1 January 2005, had no proven reserves of oil or natural gas, and as of 2002, no estimated recoverable reserves of coal. As a result, Moldova must rely upon imports of refined oil products and natural gas from Russia, Ukraine, and Belarus to meet its fossil fuel needs.

In 2004 consumption and imports of refined oil each came to an estimated 33,000 barrels per day. In 2002, natural gas consumption and imports each came to an estimated 78 billion cu ft. In 2002, Moldova imported and consumed 200,000 short tons of coal.

Electric power generating capacity has declined since Moldova gained its independence in 1992 due to lack of funds, civil disturbances, and a general economic downturn in the 1990s. Total installed generating capacity in 2002 was estimated at one million kW. Total electricity generation and consumption in 2002 was estimated at 3.9 billion kWh and 4.6 billion kWh, respectively. Conventional thermal fuel sources provided around 78% to 90% of the electric generated, with hydropower providing the remainder.

INDUSTRY

Moldova's industry, including processed food, is composed of approximately 600 major and mid-sized enterprises and associations. It accounts for 23% of Moldova's GDP.

In 1998 the most prominent industries were: food processing (57%), electric energy (18%), engineering and metal processing (5%); production of construction materials (4%), light industry (5.4%), and forestry, wood processing, pulp and paper (3%). Other industrial products include agricultural machinery, foundry equipment, shoes, hosiery, textiles, washing machines, and refrigerators and freezers.

In the wake of the economic downturn in 1998, Moldova's industrial production declined 11% from the previous year. Growth in industrial output was a component of improved economic performance in 2001, as industrial output registered a 3.1% growth rate that year. This growth expanded to 17% in 2004, but industrial representation in GDP and labor force remained low in 2004, at 24.8% and 14% respectively; agriculture made up 22.4% of the economy, and occupied 40% of the labor force; services came in first with a 52.8% contribution to the GDP, and 46% representation in the labor force. Most of the country's industry is situated in conflict riddled and politically instable Transnistria, which makes any current industrial strategy superfluous.

SCIENCE AND TECHNOLOGY

The Moldovan Academy of Sciences, founded in 1961, has sections of physico-mathematical sciences, biological and chemical sciences, technical sciences, agricultural sciences, and medical sciences, and 14 research institutes concerned with the natural sciences. Four scientific institutes conduct medical and agricultural research. Moldovan State University, founded in 1945, has faculties of physics, mathematics and cybernetics, chemistry, biology, and soil science. The Technical University of Moldova, founded in 1964, and the Chişinău Medical Institute and State Agricultural University of Moldova, founded in 1932, are located in Chişinău. M.V. Frunze Agricultural Institute is another educational institution in the sciences. In 1987–97, science and engineering students accounted for 52% of university enrollment. In 2002, there were 171 researchers and 201 technicians per million people that were engaged in research and development (R&D). In that same year, high technology exports totaled $8 million, or 4% of manufactured exports. In 1997 (the latest year for which data was available), Moldova spent $47.191 million, or 0.81% of GDP on R&D. Of that amount, 51.4% came from the business sector, followed by 47.8% from government sources. Higher education and foreign sources accounted for 0.2% and 0.6%, respectively.

DOMESTIC TRADE

Chişinău is the main commercial center, with a well-developed system for product distribution. Both national and foreign firms have a strong presence within the retail sector. Since two-thirds of Moldova is rural, local farm markets play an important role in the domestic economy. A great deal of progress had been made in liberalizing and privatizing the economy. With US assistance, nearly all of the nation's farmlands were under private ownership as of 2000. As of January 2003, nearly 2,000 small, medium, and largesized enterprises had also been transferred to private ownership.

In purchasing power parity terms, per capita gross domestic product (GDP) was $1,900 in 2004, with more than 80% of the population under the poverty line. Most of the household consumption is fueled by remittances sent home by Moldovans working abroad.

FOREIGN TRADE

Traditionally, Moldova has maintained a trade surplus with the other Soviet republics and a trade deficit with the rest of the world. However, as of 2005, Moldova's only significant trade surplus is with Russia. Total imports almost double total exports.

A trade agreement between the United States and Moldova providing reciprocal most-favored-nation tariff treatment became effective in 1992. The same year, an overseas Private Investment Corporation agreement, encouraging US private investment by providing direct loans and loan guarantees, was signed. In 1993 a bilateral investment treaty was signed between the United States and Moldova; a general system of preferences status was granted in 1995 as well as the availability of EX-IM bank coverage. Wine tops the list of Moldova's export commodities (24%), followed by apparel (16%). Other exports include tobacco (6.5%), glassware (5.7%), and meat (5.4%). The European Union was Moldova's main trade partner in 2003. Russia and the Ukraine came in second, with a representation of 22.4% and 16.7% in its overall trade respectively.

In 2004, exports totaled $1.03 billion (FOB—Free on Board), while imports where almost double that at $1.83 billion (FOB). Russia remains Moldova's main export market, receiving 35.8% of total exports; it is followed by Italy (13.9%), Romania (10%), Germany (7.3%), Ukraine (6.6%), Belarus (6%), and the United States (4.6%). Imports came mainly from the Ukraine (24.6%), Russia (12.2%), Romania (9.3%), Germany (8.5%), and Italy (7.4%). Main import categories were fuel and energy, capital goods, and foods.

BALANCE OF PAYMENTS

External debt stood at $1.3 billion in 2002. That year, $168.7 million in debt service payments were due, accounting for over 60% of all budget revenues. The government took the dramatic step of handing 50% of ownership of its gas lines to Russia's Gazprom, one of its largest creditors. In 2000, the IMF had approved a three-year $142 million loan to reduce poverty and promote growth.

The US Central Intelligence Agency (CIA) reported that in 2002 the purchasing power parity of Moldova's exports was $590 million while imports totaled $980 million, resulting in a trade deficit of $390 million.

Exports of goods and services reached $1.2 billion in 2004; imports climbed at $2.0 billion, resulting in a resource balance of -$766 million. The current account balance was -$173 million in 2004, an improvement from the previous year's -$181 deficit. External debt reached $1.4 billion in the same year, and its total reserves (including gold) were $321 million, covering only two months of imports.

BANKING AND SECURITIES

Moldova's banking sector will play a key role in the country's transition from a managed economy to a market economy. The banking system was reformed in 1991. The National Bank of Moldova (NBM, the central bank) is charged with implementing monetary policy and issuing currency. State banks include the State Savings Bank, with 1,000 branches, and the Bank for Foreign Economic Exchange. Holdovers from the old Soviet system include three regional banks, which have been changed to joint-stock companies whose shares are owned by state enterprises. There are 20 commercial banks in the country with licenses to perform international transactions. The currency unit is the leu, introduced in late November 1993.

November 1993 was a turning point for Moldova's financial stability. The NBM became a fully independent central bank with its own administrative council, and was no longer required to finance industrial and agricultural funding shortfalls. As the leu was introduced, the NBM started phasing out credit emissions. As of January 1994, the NBM became fully responsible for monetary policy.

The bank has two policy instruments: reserve requirements which were raised progressively throughout 1994, and interest rates. The discount rate reached a peak of 377% in February 1994, and was kept high despite the subsequent dramatic fall in inflation. As of 2001, the money market rate was 11%.

The banking system comprises four former Soviet banks, Agroindbank, Molindconbank, Moldotsbank, and the Savings Bank, as well as 20 commercial banks at the end of 2002. As in many other republics of the former Soviet Union, licensing procedures in the early 1990s were quite lax, with the result that the country is now overbanked, with too many small institutions, and a relatively high level of nonperforming loans (11% of total commercial bank balance sheets as of mid-1996).

Moldova's 15 voucher funds have played an important role in the privatization program. Most citizens have opted to invest their vouchers in the funds rather than directly acquire shares in newly privatized companies.

The International Monetary Fund reports that in 2001, currency and demand deposits—an aggregate commonly known as M1—were equal to $194.3 million. In that same year, M2—an aggregate equal to M1 plus savings deposits, small time deposits, and money market mutual funds—was $377.1 million. The money market rate, the rate at which financial institutions lend to one another in the short term, was 11%.

The Chişinău-based Moldovan Stock Exchange opened for business in June 1995. Trading is electronic and is based on an order-driven system. As of mid-1996, it listed 11 shares. The most actively traded shares are Cupicini Canning Factory and Banea de Economii. As of 1998, there were 15 investment funds and eight trust companies. A commodities exchange is planned. The government began auctioning 91-day treasury bills in 1995 and introduced 730-day treasury bills in 1997.

Foreign currency reserves at the NBM rose by one-third in 1996, from $226.7 million at end-1995 to $304.1 million. This is to be explained by the substantial inflows of funds from multilateral institutions, notably, the World Bank and the European Bank for Reconstruction and Development. In December 1996, Moldova made its debut in the international bond market with a $30 million floating rate note issued as a private placement through Merrill Lynch.

INSURANCE

The demand for insurance services continues to rise. Forty companies employing 2,800 persons competed for the insurance market in 1998.

PUBLIC FINANCE

In 1993, following independence, Moldova undertook a massive privatization program. By January 2003, 80% of all housing units were in private hands, as were nearly all small, medium, and large businesses. Agriculture was privatized ending in 2000 through a US-sponsored program called "Pamint" (land).

The US Central Intelligence Agency (CIA) estimated that in 2005 Moldova's central government took in revenues of approximately $1 billion and had expenditures of $1 billion. Revenues minus expenditures totaled approximately $4 million. Public debt in 2005 amounted to 72.9% of GDP. Total external debt was $1.926 billion.

The International Monetary Fund (IMF) reported that in 2003, the most recent year for which it had data, central government revenues were mld7,376.8 million and expenditures were mld6,828.5 million. The value of revenues was us$529 million and expenditures us$487 million, based on an exchange rate for 2003 of us$1 = mld13.9449 as reported by the IMF. Government outlays by function were as follows: general public services, 33.4%; defense, 1.7%; public order and safety, 7.7%; economic affairs, 3.3%; environmental protection, 0.5%; health, 6.2%; recreation, culture, and religion, 1.5%; education, 9.2%; and social protection, 36.5%.

TAXATION

The personal income tax rate ranges from 10–50%. The corporate rate is a standard 18%. Capital gains derived from the sale, exchange or transfer of capital assets are taxed at an effective rate of 9%. Dividends are subject to a 10% withholding tax if paid to nonresidents, and 18% if paid to resident legal entities. Dividends

received by resident individuals from resident and nonresident companies are considered part of taxable income. Dividends paid to Moldovan citizens by resident firms are exempt from taxation. Payroll taxes are charged at rates of 4.7–30%. Also levied is a 20% value-added tax (VAT). A reduced rate applies to bread, milk and other dairy products. For five years, 2002 to 2007, a number of housing projects will be exempt from VAT.

CUSTOMS AND DUTIES

Moldova's foreign trade environment is characterized by extensive export and import tariffs, exhaustive license requirements, and export quotas. Under the provisions of a 2001 budget law, all imports are assessed a 5% tax of their customs cost regardless of their country of origin. Moldova also levies customs tariffs on all imports except those from the former Soviet Union, Romania, the European Union, and a select group of countries with which Moldova has free trade agreements. Excise taxes apply to automobiles (30%), alcoholic beverages (50%), electronics (50%), and cigarettes (70%). Since 1998 most imports are subject to a value-added tax (VAT) that amounts to 20% of the customs value of the goods. Grain and medical supplies may be imported duty-free.

FOREIGN INVESTMENT

With the exception of certain state-controlled enterprises, current legislation does not restrict foreign capital participation in Moldovan enterprises. Some foreign equity participation in privatization of government-owned enterprises is also possible. Land under privatized enterprises can now be owned by the enterprise owners. Barriers in Moldova to foreign investment involve the underdeveloped banking, insurance, legal, and trade services.

In 1997 and 1998, average annual foreign direct investment (FDI) inflows into Moldova had reached $77 million, up from about $24 million in 1996. In 1998, the financial crisis in Russia, which accounts for a 30% share of Moldova's inward FDI, helped reduce inflows to $40.6 million for the year, but in 2000 and 2001, record levels of FDI inflows of $143 million and $160 million, respectively, were attained. Total FDI stock has increased 22 times over since independence. The total stock of FDI in Moldova reached $620 million in 2001, equivalent to 36% of GDP and about 82% of gross fixed capital formation (compared to the world average of 22%). Moldova's share of world inflows of FDI from 1998 to 2000, while small in absolute terms, was 1.7 times its share of world GDP. Foreign investment was $110.8 million in 2003, and by 2004 total investments made up 17.1% of the GDP.

Moldova remains a relatively unattractive market for investors due to the ongoing conflict in Transnistria. It has however a significant future potential due to its highly educated population, low wages, and competitive costs.

ECONOMIC DEVELOPMENT

In March 1993, the Moldovan government inaugurated the Program of Activity of the Government 1992–95 to make the transition to a market-oriented economy. The first stage focused on stabilization, including price liberalization, and the second stage concentrated on economic recovery and growth, including privatization, agrarian reform, infrastructure development, social protection, and trade reform. However, the government was slow to institute privatization in the agricultural sector. Although the government backed privatization, freed prices and interest rates, and removed export controls, economic growth was difficult. By 1998, Moldova's economy stood at one-third its 1989 level. In large part, this decline is due to unfavorable circumstances: the Transnistrian conflict, the collapse of the Soviet Union, the near-total loss of the grape crop in 1997, and the Russian 1998 financial crisis.

As of 2002, close to 2,000 small, medium, and large enterprises had been privatized, as were 80% of all housing units. Nearly all of Moldova's agricultural land is privatized as well. In 2000, Moldova negotiated a three-year $147 million Poverty Reduction and Growth Facility (PRGF) Arrangement with the International Monetary Fund (IMF), to expire in December 2003. Moldova joined the WTO in 2001. That year, the government adopted laws to combat money laundering and the financing of terrorism. The economy had turned around: spurred by industrial growth and a good harvest in 2001, real gross domestic product (GDP) growth increased by 6%. Nevertheless, Moldova carries a heavy external debt burden, and depends upon international financial support, including from the private sector.

Moldova remains one of Europe's poorest economies, and is highly dependent on agriculture. It has virtually no mineral resources, its industrial base is situated in conflict stricken Transnistria, and it relies on Russia and Romania for most of its energy supply. The World Bank considers Moldova to be a low-income country, and most of the household consumption (and subsequently most of its economic growth) is fueled by remittances from abroad.

SOCIAL DEVELOPMENT

A social insurance system provides benefits for old age, disability, and survivorship in addition to worker's compensation for injury and unemployment, and family allowances. Benefits are available to salaried citizens, agricultural workers, the self-employed, and public officials. The government contributes the whole cost of social pensions for those who are excluded from coverage from the national social security system. Medical care is available to all residents. Moldova has comprehensive legislation for the protection of children, including programs for paid maternity leave, a birth grant, and family allowances. Sickness and maternity benefits were first implemented in 1993, and were updated in 2003.

Although women are accorded equal rights under the law, they are underrepresented in government and other leadership positions. Nevertheless, the president of the country's largest bank is a woman, and women constitute a growing percentage of publicsector managers. Several women's organizations participate in political or charitable activities. Domestic violence remains a problem and is rarely prosecuted. In 2004 the government took efforts to increase public awareness of the problem.

The constitution provides for equality under the law regardless of race, sex, disability, religion, or social origin, but discrimination persists. The minority Roma population continues to suffer violence and harassment. Human rights are generally observed and respected, although there were reports of mistreatment of prisoners and detainees. Prison conditions remain harsh.

HEALTH

Moldova has been working on developing its own standards for health care. As of 2004, there were an estimated 35 physicians per 100,000 people. Total health care expenditures were 6.4% of GDP.

The birth rate was 14 per 1,000 people and the maternal mortality rate was 34 per 100,000 live births in 2003. Average life expectancy was 65.18 years in 2005. The infant mortality rate for that year was 40.42 per 1,000 live births. The overall death rate was estimated at 12.6 per 1,000 people as of 2002. In 1992, there were approximately 1,000 deaths from ethnic conflict within the country. Nearly the entire urban population (96%), but only 9% of the rural population, had access to sanitation.

Moldova's immunization rates for children up to one year old were: tuberculosis, 99%; diphtheria, pertussis, and tetanus, 97%; polio, 98%; and measles, 99%. Despite immunization rates, epidemic diphtheria has spread throughout the new independent states of the former Soviet Union. The HIV/AIDS prevalence was 0.20 per 100 adults in 2003. As of 2004, there were approximately 5,500 people living with HIV/AIDS in the country. There were an estimated 300 deaths from AIDS in 2003.

HOUSING

In 2000, there were about 1.3 million housing units in about 910,000 buildings nationwide. Though the government has encouraged privatization of housing and individual home ownership, most residents, particularly in urban areas, find home ownership to be far too expensive in a poor economy. The existing housing stock is in serious disrepair and overcrowding is an issue. Most structures were built before 1980 and maintenance has been poor. Only about 28.9% of all dwellings have an indoor bathroom; only 31% have access to a sewage system. About 62% of all households use wells as a primary source of water. In 1999, only 2,900 structures were completed. Most new housing is built with brick or stone and concrete frames. The average number of rooms per dwelling is about 2.8.

EDUCATION

While Moldova was a part of the Soviet Union, its education system was based on the Soviet pattern, and Russian was the language of instruction. However, after its separation, extensive changes were introduced in the education system. Education is compulsory for 11 years, between the ages of 6 and 17. Primary school covers four years of study. This is followed by five years of general secondary studies. Upper secondary studies may cover two or three years of study, depending on a student's interests. The academic year runs from September to July.

In 2001, about 39% of children between the ages of three and six were enrolled in some type of preschool program. Primary school enrollment in 2003 was estimated at about 79% of age-eligible students. The same year, secondary school enrollment was about 69% of age-eligible students. It is estimated that about 82.5% of all students complete their primary education. The student-to-teacher ratio for primary school was at about 19:1 in 2003; the ratio for secondary school was about 13:1.

The Moldovan State University was founded in 1945 and uses both Moldovan and Russian as languages of instruction. In 2003, about 30% of the tertiary age population were enrolled in some type of higher education program; 26% for men and 34% for women. The adult literacy rate for 2004 was estimated at about 96.2%.

The primary administrative body is the Ministry of Education, Youth and Sports. As of 2003, public expenditure on education was estimated at 4.9% of GDP, or 21.4% of total government expenditures.

LIBRARIES AND MUSEUMS

The National Library at Chişinău holds 418,000 volumes. The Scientific and Technical Library of Moldova holds about 600,000 volumes. The country's largest library, at the State University of Moldova, has over 1.82 million volumes, including a valuable rare books collection. The Technical University of Moldova has over 1.04 million volumes. The country had a public library system of over 1,300 branches.

Chişinău is home to several museums, including the National Museum of Fine Arts, the National History Museum, the Museum of Ethnography and Archaeology, and the Alexander Pushkin House and Museum. The Museum of Popular Art is in Ivancea.

MEDIA

Telecommunications links are via land line to the Ukraine and through Moscow's switching center to countries beyond the former USSR. In 2003, there were an estimated 219 mainline telephones for every 1,000 people; about 88,000 people were on a waiting list for telephone service installation. Also in 2003, there were approximately 132 mobile phones in use for every 1,000 people.

The state-operated Teleradio-Moldova operates one television and one radio station. Many stations are independent. In 2003, there were about 20 radio stations and 30 television stations in operation. In 2003, there were an estimated 758 radios and 296 television sets for every 1,000 people. About 24.6 of every 1,000 people were cable subscribers. Also in 2003, there were 17.5 personal computers for every 1,000 people and 80 of every 1,000 people had access to the Internet. There were nine secure Internet servers in the country in 2004.

A wide variety of political views and commentaries are expressed through a number of newspapers and periodicals. National and city governments sponsor newspapers, as do political parties, professional organizations, and trade unions. The largest newspapers in 2002 were Moldova Suverana (Sovereign Moldova, circulation 105,000), Nezavisimaya Moldova (Independent Moldova, 60,692), and Viata Satului (Life of the Village, 50,000).

The constitution provides for free speech and a free press, and the government is said to generally respect these rights.

ORGANIZATIONS

The Chamber of Commerce and Industry of the Republic of Moldova handles the internal and external economic affairs of the country. The Central Union of Consumers Co-operatives of the Republic of Moldova serves farmers as well as a variety of food producers and retailers. There are trade and professional associations throughout the country as well.

Political associations and organizations in the country include the Union of Council of Labor Collectives (ULC), Ecology Movement of Moldova (EMM), the Christian Democratic League of Women of Moldova, and the Alliance of Working People of Moldova.

The Academy of Sciences of Moldova works to promote public interest and education in scientific fields.

There are several sports associations within the country, including branches of the Special Olympics and the Paralympic Committee. The National Scout Organization of Moldova offers programs for youth.

The NGO Club was formed to assist in the development and consolidation of various organizations, as well as to serve as an informational network between groups. National women's organizations include the Women's Organization of Moldova (est. 1996) and the Gender in Development (GID) Project (est. 1994). International organizations with national chapters include Save the Children, Caritas, and the Red Cross.

TOURISM, TRAVEL, AND RECREATION

Picturesque scenery, several casinos, and wineries are the primary attractions of Moldova, including Cricova, the underground wine city. Unfortunately, civil unrest since Moldova's independence has caused a decline in tourism. In 2003, there were 23,598 tourist arrivals and tourism receipts totaled $83 million. There were 2,559 hotel rooms with 4,632 beds and an occupancy rate of 22%. Tourists need a valid passport to enter Moldova. Members and candidates to join the European Union, Canada, Japan, the United States, and many other European countries do not need a visa to enter Moldova for stays of up to 90 days.

In 2004, the US Department of State estimated the daily cost of staying in Moldova at $202.

FAMOUS MOLDOVANS

Petru Lucinschi (b.1940) was elected president in 1996, and served until 2001. He succeeded Mircea Snegur (b.1940), the first president of the Republic of Moldova. Vladimir Nicolae Voronin (b.1941) became president in 2001.

DEPENDENCIES

Moldova has no territories or colonies.

BIBLIOGRAPHY

Brezianu, Andrei. Historical Dictionary of the Republic of Moldova. Lanham, Md.: Scarecrow Press, 2000.

Dannreuther, Roland. European Union Foreign and Security Policy: Towards a Neighbourhood Strategy. New York: Routledge, 2004.

Dima, Nicholas. From Moldavia to Moldova: The Soviet-Romanian Territorial Dispute. 2nd ed. Boulder, Colo.: East European Monographs, 1991.

Dyer, Donald (ed.). Studies in Moldovan: The History, Culture, Language and Contemporary Politics of the People of Moldova. Boulder, Colo.: East European Monographs, 1996.

Gribincea, Mihai. Agricultural Collectivization in Moldavia: Basarabia during Stalinism, 1944–1950. Boulder, Colo.: East European Monographs, 1996.

King, Charles. The Moldovans: Romania, Russia, and the Politics of Culture. Stanford, Calif.: Hoover Institution Press, 2000.

Lobell, Steven E. and Philip Mauceri (eds.). Ethnic Conflict and International Politics: Explaining Diffusion and Escalation. New York: Palgrave Macmillan, 2004.

McElrath, Karen (ed.). HIV and AIDS: A Global View. Westport, Conn.: Greenwood Press, 2002.

Mitrasca, Marcel. Moldova: A Romanian Province under Russian Rule: Diplomatic History from the Archives of the Great Powers. New York: Algora, 2002.

Moldova

Compiled from the October 2007 Background Note and supplemented with additional information from the State Department and the editors of this volume. See the introduction to this set for explanatory notes.

Official Name:

Republic of Moldova

PROFILE

Geography

Area: 33,843 sq. km. (13,000 sq. mi.); slightly larger than Maryland.

Cities: Capital—Chisinau.

Terrain: Rolling steppe, gradual slope south to Black Sea.

Climate: Moderate winters, warm summers.

Time Zone: GMT+2

People

Nationality: Noun—Moldovan(s). Adjective—Moldovan.

Population: (January 2006) 3.39 million, excluding the estimated Transnistrian population of 537,000.

Population growth rate: 0.5% (2005).

Ethnic groups: (2004 census) Moldovan (83.7%), Ukrainian (6.6%), Russian (1.7%), Gagauz (4.5%), Bulgarian (1.7%), Romanian (1.4%), other (0.4%).

Religions: Christian Orthodox (93.3%), Baptist (1%), Adventist, Roman Catholic, Jewish.

Languages: Romanian (officially known as Moldovan), Russian, Ukrainian, Gagauz.

Education: Literacy—96%.

Health: Infant mortality rate—12/ 1,000. Life expectancy-68.4 years.

Work force: (1.3 million) Agriculture—41%; industry—12%; other—47%.

Government

Type: Republic.

Constitution: Adopted July 28, 1994.

Independence: August 27, 1991 (from Soviet Union).

Government branches: Executive—President (head of state), Prime Minister (head of Government), Government (cabinet). Legislative—unicameral Parliament. Judicial—Supreme Court.

Political subdivisions: 32 counties (raions), 4 municipalities, and one autonomous territorial unit.

Political parties: Communist Party, Christian Democratic People's Party, Our Moldova Alliance, Democratic Party, Social Liberal Party, Social-Democratic Party and the Party for Social Democracy.

Suffrage: Universal at 18.

Economy

GDP: (2006) $3.35 billion ($2.9 billion in 2005; $2.6 billion in 2004).

GDP real growth rate: (January-June 2007) 8.0% (5.0% in 2006; 8.6% in 2005; 6.5% in 2004).

Per capita GDP: (2006) $937 ($890 in 2005; $766 in 2004: $540 in 2003).

Natural resources: Lignite, phosphates, gypsum, arable land, and limestone.

Agriculture: Products—vegetables, fruits, wine and spirits, grain, sugar beets, sunflower seeds, meat, milk, eggs, tobacco, walnuts.

Industry: Types—processed foods and beverages, including wine and refined sugar; processed fruit and vegetable products, including vegetable oil; dairy and meat products; tobacco items; metal processing and production of machinery; textiles and clothing, shoes; furniture.

Trade: (2006) Exports—$1,051.6 million (of which 50% go to countries outside the former Soviet Union) foodstuffs, wine, textiles, clothing, footwear and machinery. Major markets—Russia, Romania, Ukraine, Italy, Belarus, Germany. Imports—$2,693.2 million (of which 60% come from countries outside the former Soviet Union) gas, oil, coal, steel, machinery and equipment, chemical products, textiles, foodstuffs, automobiles, and other consumer durables. Major suppliers—Ukraine, Russia, Romania, Germany, Italy. Currency: Moldovan Leu (plural Lei).

Exchange rate: Leu/US$ (2006) average 13.13; 12.91 (end of year); 12.60 (average in 2005); 12.33 (average in 2004); 13.94 (average in 2003).

PEOPLE AND HISTORY

Ethnic groups represented in Moldova include Moldovan/Romanian, Ukrainian, Russian, Gagauz, and Bulgarian. Romanian (officially known as Moldovan) is the official language; Russian, Ukrainian, and Gagauz also are spoken. The great majority of Moldova's population is Christian Orthodox —90% of the population nominally belongs to one of the two main Orthodox denominations. The Moldovan Orthodox Church, an autonomous diocese of the Russian Orthodox Church and loyal to the Patriarch of Moscow, has 1,194 parishes; the Bessarabian Orthodox Church, affiliated with the Romanian Orthodox Patriarchate in Bucharest, has 124 parishes. In addition, followers of the Old Rite Russian Orthodox Church (Old Believers) make up approximately 3.6% of the population.

The Republic of Moldova occupies most of what has been known as Bessarabia. Moldova's location has made it a historic passageway between Asia and southern Europe, as well as the victim of frequent warfare. Greeks, Romans, Huns, and Bulgars invaded the area, which in the 13th century became part of the Mongol empire. An independent Moldovan state emerged briefly in the 14th century under celebrated leader Stefan the Great but subsequently fell under Ottoman Turkish rule in the 16th century.

After the Russo-Turkish War of 1806-12, the eastern half of Moldova (Bessarabia) between the Prut and the Dniester Rivers was ceded to Russia, while Romanian Moldavia (west of the Prut) remained with the Turks. Romania, which gained independence in 1878, took control of Russian-ruled Bessarabia in 1918. The Soviet Union never recognized the action and created an autonomous Moldavian republic on the east side of the Dniester River in 1924.

In 1940, Romania was forced to cede Bessarabia to the Union of Soviet Socialist Republics (U.S.S.R.), which established the Moldavian Soviet Socialist Republic by merging the autonomous republic east of the Dni-ester and the annexed Bessarabian portion. Stalin also stripped the three southern counties along the Black Sea coast from Moldova and incorporated them in the Ukrainian Soviet Socialist Republic. Romania sought to regain Bessarabia by joining with Germany in the 1941 attack on the Soviet Union. On June 22, 1941, German and Romanian troops crossed the border and deportations of the Jews from Bessarabia began immediately. By September 1941, most of the Jews of Bessarabia and Bukovina had been transported in convoys and force marched to concentration camps in Transnistria. About 185,000 Jews were in the Transnistria area in concentration camps by 1942 in abysmal conditions. Very few were left alive in these camps when the Soviets reoccupied Bessarabia in 1944.

In September 1990, the Supreme Soviet elected Mircea Snegur as President of the Soviet Socialist Republic of Moldova. A former Communist Party official, he endorsed independence from the Soviet Union and actively sought Western recognition. On May 23, 1991, the Supreme Soviet renamed itself the Parliament of the Republic of Moldova, which subsequently declared its independence from the U.S.S.R.

In August 1991, Moldova's transition to democracy initially had been impeded by an ineffective Parliament, the lack of a new constitution, a separatist movement led by the Gagauz (Christian Turkic) minority in the south, and unrest in the Transnistria region on the left bank of the Nistru/Dniester River, where a separatist movement declared a “Transdniester Moldovan Republic” in September 1990. The Russian 14th Army intervened to stem widespread violence and support the Transnistrian regime which is led by supporters of the 1991 coup attempt in Moscow. In 1992, the government negotiated a cease-fire arrangement with Russian and Transnistrian officials, although tensions continue, and negotiations are ongoing. In February 1994, new legislative elections were held, and the ineffective Parliament that had been elected in 1990 to a 5-year term was replaced. A new constitution was adopted in July 1994. The conflict with the Gagauz minority was defused by the granting of local autonomy in 1994.

GOVERNMENT AND POLITICAL CONDITIONS

In 2000, Parliament passed a decree making Moldova a parliamentary republic, with the president elected by Parliament instead of by popular vote. Widespread popular dissatisfaction with previous governments and economic hardship led to a surprise at the polls in February 2001. In elections certified by international observers as free and fair, slightly over half of Moldova's voters cast their ballots for the Communist Party. Under the rules of Moldova's proportional representation system, the Communist faction, which in the previous Parliament consisted of 40 of Parliament's 101 seats, jumped to 71 — a clear majority. The Parliament then elected the leader of the Communist faction, Vladimir Voro-nin, to be President.

President Voronin's first term was marked by up and down relations with the International Monetary Fund (IMF) and the World Bank. Politically, the government was committed to the reduction of poverty by allocating more resources to social safety net items such as health, education, and increasing pensions and salaries. Voronin proceeded with former President Lucinschi's plans to privatize several important state-owned industries and even on occasion broke with his own party over important issues. Under President Voronin, relations with the United States have remained strong. From January to April 2002, large demonstrations took place in opposition to several controversial government proposals, including expanded use of the Russian language in schools and its designation as an official language. While the demonstrations were sometimes tense, the government did not use force and ultimately agreed to Council of Europe (CoE) mediation.

In March 2005 parliamentary elections, the Communist Party received 46.1% of the vote, or 56 seats in the 101-member Parliament —more than enough for the 51-vote minimum required to form a government, but short of the 61 votes necessary to elect a president. However, President Voronin was re-elected with support from the Christian Democratic People's Party and from the Democratic and Social Liberal party factions, after Voronin promised to deliver on needed reforms and Euro-Atlantic integration for the country. These defections broke apart the opposition unity of the pre-election Moldovan Democratic Bloc, led by Our Moldova Alliance (AMN) faction leader and former Chisinau Mayor Serafim Ure-chean.

Nationwide local elections in June 2007 showed improvement over nationwide parliamentary elections in 2005, with better access to the media for opposition candidates, and greater evidence of impartiality by the Central Election Commission. While the voting itself generally met international standards, the government's behavior in the campaign period — including bias in state media and misuse of administrative resources—remained a concern. The Communist Party suffered a significant setback, losing the high-profile Chisinau mayoral election and control of numerous local councils to opposition party coalitions. Elections in the semi-autonomous region of Gagauzia were held in December 2006; Mikhail Formuzal, a longtime opponent of President Voronin, was elected “Bashkan” (Governor). Parliamentary elections are scheduled for 2009 and the new Parliament will elect the next President of Moldova. In addition to state-sponsored media, there are several independent newspapers, radio and television stations, and news services. The independent media organizations, along with some that are affiliated with political parties, often criticize government poli-

cies. In August 2004, Teleradio Moldova (TRM) was officially transformed from a state-owned company into a public broadcaster. However, journalists and civil society representatives, who claimed the process was nontransparent and meant to stack the new TRM staff with those favorable to the government, met this move with large protests. In February 2007, a controversial privatization process shut down the popular, pro-opposition Chisinau radio station Antena C, and installed new, pro-Government management. The U.S. Ambassador, the OSCE and western diplomatic missions condemned the developments, which seemed to run counter to the Moldovan Broadcasting Code and risked silencing political opposition. Peaceful assembly is allowed, though permits for demonstrations must be obtained; private organizations, including political parties, are required to register with the government. Moldova enacted a new law on religion in July 2007. The new law, while noting the special status of the Moldovan Orthodox Church in Moldovan history and culture, simplifies registration procedures and allows religious groups more access to public places.

In February 2005, Brussels and Chisinau agreed on an EU-Moldova Action Plan, a "roadmap” of reforms to strengthen the democratic and economic situation of the country and facilitate its Euro-Atlantic integration. Although Moldova has made some progress toward laying the structural and legislative foundation for reform, the EU has emphasized that more implementation is needed.

Transnistria

The population of the Moldovan region of Transnistria is approximately 40% Romanian/Moldovan, 28% Ukrainian, and 23% Russian. Separatist forces maintain control of the Transnistrian region, which lies along the Ukrainian border. Moldova has tried to meet the Russian minority's demands by offering the region rather broad cultural and political autonomy. The dispute has strained Moldova's relations with Russia. The July 1992 cease-fire agreement established a tripartite peacekeeping force comprised of Moldovan, Russian, and Transnistrian units.

Negotiations to resolve the conflict continue, and the cease-fire is still in effect. The Organization for Security and Cooperation in Europe (OSCE) is trying to facilitate a negotiated settlement and has had an observer mission in place for several years. In July 2002, OSCE, Russian, and Ukrainia mediators approved a document setting forth a blueprint for reuniting Moldova under a federal system. Over the next year and a half, the settlement talks alternated between periods of forward momentum and periods of no progress. In February 2003, the U.S. and EU imposed visa restrictions against the Transnistrian leadership. In April 2003, the Moldovan Government and the Transnistrian authorities agreed to establish a joint commission to draft a constitution for a reintegrated state. However, fundamental disagreements over the division of powers remained, and a settlement proved elusive.

President Voronin decided not to sign a Russian-brokered settlement with Transnistria in November 2003; the proposal — seen by many as pro-Transnistrian—sparked opposition protests. During the summer of 2004, the Transnistrian separatists forcibly closed several Romanian language Latin-script schools in the region, for which the regime was subject to international condemnation. In 2005, Tiraspol prevented several farmers on the right bank of the Nistru River from working their fields on the left bank, within Transnistria's “borders.” The OSCE Mission to Moldova eventually mediated solutions to these cri-

After a 15-month pause, the sides met for a renewed round of settlement negotiations in October 2005. Mediators from Ukraine, Russia and the OSCE joined the Moldovan and Transnistrian representatives at the talks. In addition, the U.S. and EU joined the talks as observers. However, subsequent “5+2” negotiations have made little progress on a settlement or on withdrawal of Russian forces from Moldova: Russia still has weapons and munitions of the Operational Group of Russian Forces (formerly the Russian 14th Army) stationed in Transnistria, although it pledged to remove them under a timetable established at the 1999 OSCE Ministerial—the so-called “Istanbul Accords.” However, there has been no progress on Russian withdrawals since early 2004.

In response to Moldova's call for international monitoring of the border, in December 2005 the EU dispatched a Border Assistance Mission (EUBAM) to help stem the flow of illegal trade between Ukraine and Moldova. In March 2006, Ukraine and Moldova began implementing a 2003 customs agreement, under which Transnistrian companies seeking to engage in cross-border trade must register in Chisinau. Despite the protests of the Smirnov regime, all major Transnistrian businesses have subsequently registered. In what is seen as a response to the new customs procedures, the Smirnov regime boycotted the 5+2 talks in March 2006. The talks have been stalled ever since. In September 2006, the Transnistrian regime held an “independence referendum.” Despite the fact that the Smirnov regime claimed that the referendum demonstrated overwhelming support for independence, the vote was not monitored by any western organizations, and no country recognized the referendum or the independence of Transnistria.

Principal Government Officials

Last Updated: 2/1/2008

Pres.: Vladimir VORONIN

Prime Min.: Vasile TARLEV

First Dep. Prime Min.: Zinaida GRECIANI

Dep. Prime Min.: Andrei STRATAN

Dep. Prime Min.:

Min. of Agriculture & Food Industry: Anatolie GORODENCO

Min. of Culture & Tourism: Artur COZMA

Min. of Defense: Vitalie VRABIE

Min. of Economics & Trade: Igor DODON

Min. of Education, Youth, & Sport: Victor TVIRCUN

Min. of Environment & Natural Resources: Constantin MIHAILESCU

Min. of Finance: Mihai POP

Min. of Foreign Affairs: Andrei STRATAN

Min. of Health: Ion ABABII

Min. of Industry & Infrastructure: Vladimir ANTOSII

Min. of Information Development: Vladimir MOLOJEN

Min. of Internal Affairs: Gheorghe PAPUC

Min. of Justice: Vitalie PIRLOG

Min. of Local Public Admin.: Valentin GUZNAC

Min. of Reintegration: Vasile SOVA Min. of Social Protection, Family, & Children: Galina BALMUS

Min. of Transport & Roads Management: Vasile URSU

Sec., Supreme Security Council: Ion MOREI

Prosecutor Gen.: Valeriu GURBULEA Dir., Security & Intelligence Service: Artur RESETNICOV

Pres., National Bank: Leonid TALMACI

Ambassador to the US: Nicolae CHIRTOACA

Permanent Representative to the UN, New York: Alexei TULBURE

More information about Moldova can be found at the official (Romanian and Russian language) Government of Moldova website at www.moldova.md. The Moldova.org site is maintained by the Moldova Foundation, a non-governmental organization and has some useful links.

ECONOMY

Moldova remains the poorest country in Europe. It is landlocked, bounded by Ukraine on the east and Romania to the west. It is the second smallest of the former Soviet republics and the most densely populated. Industry accounts for less than 15% of its labor force, while agriculture's share is more than 40%.

Moldova's proximity to the Black Sea gives it a mild and sunny climate. This makes the area ideal for agriculture and food processing, which accounts for one third of the country's GDP. The fertile soil supports wheat, corn, barley, tobacco, sugar beets, and soybeans. Beef and dairy cattle are raised, and beekeeping is widespread. Moldova's best-known product comes from its extensive and well-developed vineyards concentrated in the central and southern regions. In addition to world-class wine, Moldova produces liqueurs and champagne. It is also known for its sunflower seeds, walnuts, apples, and other fruits.

Like many other former Soviet republics, Moldova has experienced economic difficulties. Since its economy was highly dependent on the rest of the former Soviet Union for energy and raw materials, the breakdown in trade following the breakup of the Soviet Union had a serious effect, exacerbated at times by drought and civil conflict. The Russian ruble devaluation of 1998 had a deleterious effect on Moldova's economy, but economic growth has been steady since 2000.

Moldova has made progress in economic reform since independence. The government has liberalized most prices and has phased out subsidies on most basic consumer goods. A program begun in March 1993 has privatized 80% of all housing units and nearly 2,000 small, medium, and large enterprises. Other successes include the privatization of nearly all of Moldova's agricultural land from state to private ownership, as a result of an American assistance program, “Pamint” (“land”), completed in 2000. A stock market opened in June 1995.

Following the economic difficulties caused by the Russian currency crisis of 1998, inflation dropped to 5.2% in 2002, the lowest level since Moldova's independence. However, inflation spiked again to 11.6 % in 2003 and never fell below 11% over the following years, rising as high as 12.7% in 2006. In 2006, Moldova faced twin external shocks—a two-fold increase in gas prices and a politically-motivated Russian ban on Moldovan wine imports, a key export item. While relatively stable in recent years, in 2007 the local currency appreciated because of a weakening U.S. dollar and pressure from record remittances from Moldovans working abroad. Reforms to the National Bank of Moldova in 2006 changed the central bank's policy priority from currency stability to price stability (fighting inflation). The National Bank of Moldova has the difficult task of sterilizing the money supply to contain stubbornly high inflation.

Moldova continues to make progress toward developing a viable free-market economy. The economy grew by an average 7% from 2000 to 2005 after years of recession since independence. External shocks in 2006 slashed economic growth to just 4%. After a budget surplus of 1.6% of GDP in 2005, the country had a slight deficit of 0.3% of GDP in 2006 despite better than anticipated revenue performance and prudent spending. The Moldovan economy continues to depend greatly on remittances sent from Moldovans working abroad. These inflows have increased to an estimated $1.2 billion a year.

Privatization results in recent years were not significant. Total proceeds in 2006 amounted to $12.4 million. Several smaller companies, two land plots in Chisinau and a large hotel were privatized in 2006. The government postponed indefinitely the privatization of large state enterprises in the power, telecommunications and agribusiness sectors. In 2007, Parliament passed a new law, introducing new approaches to privatizing and managing state-owned assets (including public-private partnerships), giving priority to economic efficiency. As the European Union expanded to Moldova's border, 2006 saw record high inflows of foreign direct investment. However, cumulative FDI since independence is only $1.28 billion, far below the country's needs. Sporadic and ineffective enforcement of the law, economic and political uncertainty, and government interference continue to discourage FDI inflows.

Spurred by soaring consumption and higher energy prices, imports have been growing more rapidly than exports. This was most prominent in 2006 when Moldova's trade deficit worsened as higher-priced energy imports surpassed exports, which were stunted by Russia's ban on Moldovan wine and agricultural products. Moldova traditionally exported between 70-80% of its wine production to Russia. The country lacks diversification in terms of sector development and export markets. The International Monetary Fund (IMF) and World Bank resumed lending to Moldova in July 2002, and then suspended lending again in July 2003. In early 2006, Moldova reached agreement with the Paris Club on rescheduling of Moldova's foreign debt. In addition, in the spring of 2006, the IMF reached an agreement with the Moldovan Government for a Poverty Reduction and Growth Facility designed to bolster foreign reserves against external shocks with a 3-year, $175 million program that includes a new IMF loan to the National Bank of Moldova.

Moldova continues to be subject to Russian economic pressure. In 2005, Russia enacted a ban on Moldovan agricultural products and in 2006, it banned imports of Moldovan wines. The wine ban has been particularly painful because, prior to the ban, Moldovan wines accounted for a third of the country's exports and 80% of wine exports went to Russia. Although Russian President Putin announced an end to the wine ban in November 2006, Russia had still not resumed importing Moldovan wine as of September 2007. In January 2006, Russian energy giant Gazprom temporarily cut off natural gas deliveries to Ukraine and Moldova—which is almost completely dependent on its neighbors for energy—and subsequently doubled the price of gas to Moldova. The impact has been substantial: Moldova's exports to Russia declined by 47.6% in 2006 and total exports dropped 3.6%, further contributing to a widening trade deficit (47% of GDP). In the first half of 2007, the country's trade deficit was already more than $1 billion (compared with $1.6 billion for all of 2006).

Moldova suffered from a severe drought during much of 2007 which caused hundreds of millions of dollars in agriculture sector losses and prompted concerns about food availability. In response to a request for assistance from the Government of Moldova, the United States provided $350,000 worth of seed to drought ravaged farmers in time for fall planting.

DEFENSE AND MILITARY ISSUES

Moldova has accepted all relevant arms control obligations of the former Soviet Union. On October 30, 1992, Moldova ratified the Conventional Armed Forces in Europe Treaty, which establishes comprehensive limits on key categories of conventional military equipment and provides for the destruction of weapons in excess of those limits. It acceded to the provisions of the nuclear Non-Proliferation Treaty in October 1994 and to the Biological Weapons Convention in December 2004. It does not have nuclear, biological, or chemical weapons. Moldova joined the North Atlantic Treaty Organization's Partnership for Peace on March 16, 1994. Due to Moldova's constitutional neutrality, it is not a participant in the Commonwealth of Independent States (CIS—a group of 12 former Soviet republics) Collective Security Agreement.

FOREIGN RELATIONS

Moldova's Parliament approved the country's membership in the Commonwealth of Independent States and a CIS charter on economic union in April 1994.

In 1995, the country became the first former Soviet republic admitted to the Council of Europe. In addition to its membership in NATO's Partnership for Peace, Moldova also belongs to the United Nations, the OSCE, the North Atlantic Cooperation Council, the International Monetary Fund, the World Bank, and the European Bank for Reconstruction and Development. Moldova is a member of the World Trade Organization (WTO).

In 1998, Moldova contributed to the founding of GUAM, a regional cooperative agreement made up of Georgia, Ukraine, and Azerbaijan, in addition to Moldova. Although the agreement initially included a declaration of mutual defense, Moldova has since declared its disinterest in participating in any GUAM-based mutual defense initiative. Moldova has been involved in information exchange, trade and transportation, border control, and energy projects issues within this regional agreement. In 2006, the organization's members voted to change the name to the Organization for Democracy and Economic Development—GUAM.

The past two years have seen significant developments in Moldova's relations with the West. In 2005, the European Union appointed a Special Representative for Moldova and the negotiations to resolve the Transnistrian conflict and the Delegation of the European Commission opened an office in Chisinau, In December 2005, Moldova welcomed an EU Border Assistance Mission (EUBAM) along its Ukrainian border to crack down on smuggling, strengthen customs procedures and facilitate cross-border cooperation. In accordance with a 2005 Action Plan with the EU, Moldova has begun to harmonize Moldova's laws with those of the EU. As part of this, in late 2005, Moldova enacted its “Guillotine” laws, which slashed unnecessary business regulations, established a framework for relations between the private sector and government and created a mechanism to review the suitability of draft legislation.

In the atmosphere of heightened international sensitivity to terrorism following the events of September 11, 2001, Moldova has been a supporter of American efforts to increase international cooperation in combating terrorism. Moldova has sent demining units and peacekeepers to participate in post-conflict humanitarian assistance in Iraq.

U.S.-MOLDOVAN RELATIONS

The dissolution of the Soviet Union in December 1991 brought an end to the Cold War and created the opportunity to build bilateral relations with the 15 new states that had made up the former U.S.S.R., as they began political and economic transformation. The United States recognized the independence of Moldova on December 25, 1991 and opened an Embassy in its capital, Chisinau, in March 1992. The U.S. Ambassador to Moldova, Michael Kirby, arrived at post on September 1, 2006.

A trade agreement providing reciprocal most-favored-nation tariff treatment became effective in July 1992. An Overseas Private Investment Corporation agreement, which encourages U.S. private investment by providing direct loans and loan guarantees, was signed in June 1992. A bilateral investment treaty was signed in April 1993. Generalized system of preferences status was granted in August 1995, and some Eximbank coverage became available in November 1995.

In November 2006, the U.S. Millennium Challenge Corporation approved Moldova's $24.7 million Threshold Country Plan to combat corruption. The MCC also ruled that Moldova is eligible to apply for full compact assistance and the Moldovan Government is preparing its compact proposal.

Principal U.S. Embassy Officials

Last Updated: 2/19/2008

CHISINAU (E) 103 Str. A. Mateevici, 373-22-40-8300 or 202-558-7920 (VoIP), Fax 373-22-23-3044, INMARSAT Tel 6-831-32845, Workweek: M-F 9:00 a.m.–6:00 p.m., Website: http://chisinau.usembassy.gov.

TRAVEL

Consular Information Sheet

January 22, 2008

Country Description: Moldova is a republic with a freely elected government. It has been an independent nation since 1991. Its capital, Chisinau, offers adequate hotels and restaurants, but tourist facilities in other parts of the country are not highly developed, and many of the goods and services taken for granted in other countries are not yet available.

Entry Requirements: Since January 1, 2007, citizens of the United States, EU member states, Canada, Switzerland, and Japan do not require visas to enter Moldova. For more information on entry requirements, please contact the Moldovan Embassy, 2101 S Street NW, Washington, DC 20008, telephone: (202) 667-1130, (202) 667-1131, or (202) 667-1137, fax: (202) 667-1204, e-mail: [email protected]. Travelers may also wish to consult the Moldovan Ministry of External Affairs and European Integration's web site at http://www.mfa.md/En/ConsularInf/VisasInfo.htm for general information on Moldovan visas and for application forms.

Safety and Security: The U.S. Government has no information related to the targeting of U.S. citizens, interests or facilities by terrorist organizations in Moldova, and no Americans have been killed or injured as a result of terrorist activity in Moldova. However, the U.S. government remains deeply concerned about the heightened threat of terrorist attacks against U.S. citizens and interests abroad. Americans are reminded to remain vigilant with regard to their personal security and to exercise caution. Because Moldovan Government authorities often ask to see identification on the street, Americans should carry a copy of their passport with them at all times.

The separatist regime in control of the Transnistria region is not recognized by the United States, and consular assistance to American citizens in that region cannot be ensured. Travelers should exercise caution when visiting or transiting Transnistria. Travelers should be aware that there are numerous road checkpoints along roads leading into and out from Transnistria. Taking photographs of military facilities, public buildings, and security forces, including checkpoints along roads leading into and out from Transnistria, is strictly prohibited.

Racially motivated incidents against foreigners and persons of color have occurred in Moldova. Persons of African, Asian, or Arab heritage may be subject to various types of harassment, such as verbal abuse, and denied entrance into some clubs and restaurants.

For the latest security information, Americans traveling abroad should regularly monitor the Department of State, Bureau of Consular Affairs’ web site at http://travel.state.gov, where the current Travel Warnings and Travel Alerts, as well as the Worldwide Caution, can be found. Up-to-date information on safety and security can also be obtained by calling 1-888-407-4747 toll free in the U.S. and Canada, or for callers outside the U.S. and Canada, a regular toll-line at 1-202-501-4444.

Crime: Moldova's economic difficulties, as well as organized criminal activity and more frequent travel by foreigners to Moldova, contribute to the risk visitors face from street crime, some potentially violent. While this risk is no greater than in most cities in the United States, many Americans have reported theft of money and small valuables from hotel rooms and local apartments. Cases of breaking and entering into homes and offices have occurred. Travelers are wise to exercise the same precautions with regard to personal safety and protection of valuables in Chisinau that they would in any major U.S. city.

Precautions should also be taken when using ATMs in Moldova. Some Americans have reported unauthorized withdrawals from their accounts after using ATMs. Instances have been reported of PIN theft from use of ATMs in Moldova, either by “skimming” devices, which record the ATM card information while in use, or by surreptitious observation.

Train and bus services are below Western European standards and some U.S. citizens have been victims of crimes involving thefts while traveling on international trains to and from Moldova.

Americans who use the Moldovan postal service report frequent losses from international letter and package mail.

Internet Fraud Warning: The Embassy is aware of various confidence schemes that have taken advantage of American citizens, frequently via the Internet. In some cases these involve the purchase or sale of items on the Internet in which the payment or shipment of goods was not completed by a Moldovan counterpart. In the spring of 2006, Moldovan police recovered over $250,000 in jewelry that was sent to “buyers” in Moldova from the U.S. via fake online escrow companies. Substantial criminal enterprises specializing in this type of crime (Internet auction fraud) are emerging in Moldova. In other cases, American citizens, particularly males, have met potential Moldovan fiancé(e)s on the Internet who have convinced them to send hundreds or even thousands of dollars, but have no intention of a serious relationship. Once the American citizen starts to question the reason for sending the money, the Moldovan fiancé(e)s suddenly ends his/her contact. On occasion, American citizens who come to Moldova to visit someone they have first met over the Internet have reported becoming subject to crimes such as extortion and involuntary detention. American citizens should be aware that any such activity committed by individuals in Moldova is subject to the Moldovan legal system and could prove difficult to prosecute. In the vast majority of cases, there is little that the U.S. Embassy can do to assist American citizens who are defrauded by Moldovans via the Internet.

Information for Victims of Crime: The loss or theft abroad of a U.S. passport should be reported immediately to the local police and the nearest U.S. Embassy or Consulate. If you are the victim of a crime while overseas, in addition to reporting to local police, please contact the nearest U.S. Embassy or Consulate for assistance. The Embassy/Consulate staff can, for example, assist you to find appropriate medical care, contact family members or friends and explain how funds could be transferred. Although the investigation and prosecution of the crime is solely the responsibility of local authorities, consular officers can help you to understand the local criminal justice process and to find an attorney if needed.

Medical Facilities and Health Information: Medical care in Moldova is substandard throughout the country, including Chisinau. In the event of serious medical conditions every effort should be made to go to Western Europe. In the event of emergency, travelers should attempt first to contact the local ambulance service, which is trained to determine which medical facility is most appropriate for treatment and will transport the injured or sick person to that location. Hospital accommodations are inadequate throughout the country and advanced technology is lacking. Shortages of routine medications and supplies may be encountered. Elderly travelers and those with existing health problems may be at particular risk due to inadequate medical facilities. The U.S. Embassy maintains lists of medical facilities and English-speaking doctors, but cannot guarantee or endorse competence. Visitors to Moldova are advised to bring their own supply of both prescription and common over-the-counter medications. Pharmacies are not stocked to Western standards and products are not labeled in English. Poor quality and/or fraudulent medications have been reported.

Medical Information: Tuberculosis is an increasingly serious health concern in Moldova; the World Health Organization (WHO) has placed it in its “highest risk” category. Travelers planning to stay in Moldova for more than 3 months should have a pre-departure PPD skin test status documented. Given the way TB is transmitted, travelers should consider limiting their exposure to TB by avoiding crowded public places and public transportation whenever possible. Domestic help should be screened for TB. For further information, please consult the CDC's Travel Notice on TB at http://wwwn.cdc.gov/travel.

Other major health concerns include Hepatitis A (food-borne), Hepatitis B, and Hepatitis C (blood-and body fluids-borne). The incidence of sexually transmitted diseases is as high as it is in most developing countries.

Information on vaccinations and other health precautions, such as safe food and water precautions and insect bite protection, may be obtained from the Centers for Disease Control and Prevention's hotline for international travelers at 1-877FYI-TRIP (1-877394-8747) or via the CDC's web site at http://wwwn.cdc.gov/travel. For information about outbreaks of infectious diseases abroad consult the WHO's web site at http://www.who.int/en. Further health information for travelers is available at http://www.who.int/ith/en.

Medical Insurance: The Department of State strongly urges Americans to consult with their medical insurance company prior to traveling abroad to confirm whether their policy applies overseas and if it will cover emergency expenses such as a medical evacuation.

Traffic Safety and Road Conditions: While in a foreign country, U.S. citizens may encounter road conditions that differ significantly from those in the United States. The information below concerning Moldova is provided for general reference only, and may not be totally accurate in a particular location or circumstance.

Moldova's highway infrastructure consists mainly of two-lane roads that often lack markings or signage, are unevenly maintained, and seldom have lighting. Caution should be taken to prevent collisions with agricultural vehicles and/or livestock. Urban roads in Moldova are infrequently maintained and often lack clear signs or lane markings. Travel outside of urban areas before dawn and after dusk should be avoided if at all possible. Drivers and pedestrians should exercise extreme caution to avoid accidents, which are commonplace. Many Moldovan drivers would be considered aggressive or erratic by American standards. Many accidents involve drunk drivers. The quality and safety of public transportation vary widely. Trains, trolleybuses, and buses are often old and may frequently break down. Taxis are available in most urban areas, and vary from old Soviet-era vehicles to newer, Western European or American model vehicles.

Visit the website of the Moldova's national tourist office at http://www.turism.md.

Aviation Safety Oversight: As there is no direct commercial air service between the United States and Moldova, the U.S. Federal Aviation Administration (FAA) has not assessed Moldova's Civil Aviation Authority for compliance with International Civil Aviation Organization (ICAO) aviation safety standards. For more information, travelers may visit the FAA's web site at http://www.faa.gov

Special Circumstances: Travelers are advised to register any foreign currency brought into Moldova with customs authorities upon entering the country. It is advisable to contact the Embassy of Moldova in Washington for specific information regarding customs requirements. Visas and residency: Current Moldovan Government (GOM) border registration procedures will remain unchanged under the new immigration law. As of January 1, 2007, U.S. and most other foreign nationals arriving in Moldova do not require a visa and are permitted stays of up to 90 days in any given six-month period. At the point of entry (i.e., airport or border), the Border Guard Service enters the traveler's personal data into a computer program and transfers the data to the GOM's Population Register. Visitors are no longer given a paper “registration receipt.” U.S. citizens are able to enter Moldova through Transnistria. However, because they will not have been registered at the border, they will still have to register with the nearest office of the Ministry of Information Development (MID) within three days of arrival in right-bank (western) Moldova.

For stays exceeding 90 days, foreign nationals are required to obtain “immigration certificates” and residence permits from the National Bureau for Migration. Foreign nationals planning to work in Moldova must also obtain a work permit. Immigration, residence and work permits usually need to be extended annually, but may be issued for up to five years.

For more information on registering with Moldovan authorities, U.S. citi-zens are encouraged to call the Consular section of the U.S. Embassy in Chisinau at (373) (22) 40-83-00.

Requirement to Carry Documentation: As noted above, Moldovan police have the right to request identity documents from any person. Individuals who fail to produce appropriate ID upon request may be subject to detention and fines. Therefore, Americans are advised to carry their U.S. passports (or a copy of their passports biographic information page) with registration card, if applicable, or a Moldovan-issued identification document when in public.

Consular Access: Moldovan law enforcement authorities have an uneven record of reporting the arrest or detention of American citizens to the U.S. Embassy, as required under international agreements. American citizens are therefore advised that if they are detained or arrested by Moldovan authorities, they should immediately request that the U.S. Embassy be contacted. Moldovan authorities have generally respected such requests in a prompt manner.

Americans sometimes report encounters with police or other Moldovan officials in which they are pressured to pay a bribe. Such low-level bribery attempts are commonplace in Moldova. These encounters should always be reported to the U.S. Embassy. Americans who have refused to pay bribes in Moldova generally report no consequences beyond being delayed or inconvenienced.

Photography: Americans who choose to travel in Transnistria should be aware that foreigners have reported being detained or harassed by authorities for taking photographs of military facilities or public buildings. Photography of checkpoints along roads leading into and out from the Transnistria region, or the personnel working there, is prohibited.

Dual Nationality: Moldovan legislation allowing dual citizenship went into effect on October 18, 2003. There is no requirement that dual nationals enter Moldova on their Moldovan passports. For further questions, please contact the Moldovan Embassy in Washington, D.C.

Telephone and Postal Services: Outside of Chisinau, travelers may have difficulty finding public telephones and receiving or making international and local calls. Losses have been reported from international letter and package mail, both of which are subject to a customs inspection before delivery. “Express” mail services such as DHL and Federal Express are available in Chisinau, although in most instances prices are high, and shipments arrive from (or reach) the United States in no less than five (5) business days.

Disabled Access: Persons with disabilities should be aware that public facilities and transportation in Moldova are rarely designed or built in a way that allows for wheelchair access. Wheelchair entrances, ramps, lifts or similar accommodations are rare; those that do exist are often below Western standards and/or poorly maintained. Most streets, sidewalks and other public paths are not well maintained and can be hazardous, particularly in poor weather conditions.

Commercial Transactions: Although still generally a cash-only economy, traveler's checks and credit cards are becoming increasingly accepted in Chisinau, although locations that will accept them outside the capital are still rare. Some vendors require the customer dial in a PIN to authorize a sale by credit card. Caution is advised, however, as some travelers have reported incidents of unauthorized expenditures made on credit cards during or following their use in Moldova, and there have also been reported incidents of fraud and account theft using bank machines.

Business in Transnistria: As noted in the Safety and Security section above, a separatist regime controls a narrow strip of land in eastern Moldova known as Transnistria (“Prid-nestrovie” in Russian). Individuals considering doing business in Transnistria should exercise extreme caution. The Embassy may not be able to offer consular or commercial services to Americans in Transnistria. Moldovan law requires firms (including those located in Transnistria) to register with the Moldovan Government and to use Moldovan customs seals on their exports. Under a December 2005 agreement between Moldova and Ukraine, Ukrainian customs and border officials require Moldovan customs seals on goods exported from Moldova, including Transnistria, and are enforcing this requirement with EU assistance. Transnistrian firms not legally registered with Moldovan authorities operate in contravention of Moldovan law, which may complicate or prevent the import or export of goods. The Government of Moldova has indicated that it will not recognize the validity of contracts for the privatization of firms in Transnistria that are concluded without the approval of the appropriate Moldovan authorities. A number of Internet fraud schemes have originated in Transnistria.

Criminal Penalties: While in a foreign country, a U.S. citizen is subject to that country's laws and regulations, which sometimes differ significantly from those in the United States and may not afford the protections available to the individual under U.S. law. Penalties for breaking the law can be more severe than in the United States for similar offenses. Persons violating Moldovan laws, even unknowingly, may be expelled, arrested or imprisoned. Penalties for possession, use, or trafficking in illegal drugs in Moldova are severe, and convicted offenders can expect long jail sentences and heavy fines. Engaging in illicit sexual conduct with children or using or disseminating child pornography in a foreign country is a crime, prosecutable in the United States.

Children's Issues: U.S. Citizens who adopt a Moldovan child must ensure that the child has a visa valid for travel to Romania in the child's Moldovan passport. This visa is necessary to allow the child to travel to Bucharest, where the parents must apply at the U.S. Embassy for the child's immigrant visa to the United States. Without a Romanian visa, the child will be turned back at the airport or border crossing.

Registration and Embassy Locations: Americans living or traveling in Moldova are encouraged to register with the U.S. Embassy through the State Department's travel registration web site, and to obtain updated information on travel and security within Moldova. Americans without Internet access may register directly with the U.S. Embassy. By registering, American citizens make it easier for the Embassy to contact them in case of emergency. The U.S. Embassy is located in Chisinau, Moldova, Strada Alexei Mateevici 103; telephone: (373) (22) 23-37-72, after-hours telephone: (373) (22) 23-73-45; Consular Section Fax: (373) (22) 22-63-61. The Embassy's web site is http://moldova.usembassy.gov.

International Adoption

May 2007

The information in this section has been edited from a report of the State Department Bureau of Consular Affairs, Office of Overseas Citizens Services. For more information, please read the International Adoption section of this book and review current reports online at http://travel.state.gov/family.

Disclaimer: The information in this flyer relating to the legal requirements of specific foreign countries is based on public sources and current understanding. Questions involving foreign and U.S. immigration laws and legal interpretation should be addressed respectively to qualified foreign or U.S. legal counsel.

Please Note: Adoption in Moldova can be a complicated process, sometimes involving long waits. Moldovan adoption law gives preference to Moldovan citizens and citizens of countries that have implemented the 1993 Hague Convention on Inter-country Adoption. The United States intends to ratify and implement the Convention in 2007.

Patterns of Immigration: Please review current reports online at http://travel.state.gov/family.

Intercountry adoptions are permitted in exceptional cases, when no relatives or other Moldovan families are able to adopt orphans or become their guardians. Children who have health or developmental problems that Moldovan families cannot afford to treat are also considered exceptional cases.

Information about children eligible for adoption is published in the Monitorul Official, the Moldovan government's official register. For the first six months after this information is published, an adoptable child is eligible only for domestic adoption by Moldovan citizens. After six months, an adoptable child is eligible for intercountry adoption. Prospective adoptive parents may indicate the sex and age range of the child they prefer.

Adoption Authority:
The Ministry of Social Protection,
Family and Child
Adoption Department
Ms. Eugenia Gonciar
Head of Department
# 1 Vasile Alecsandri Street, Office # 409
Chisinau, Moldova
Tel/Fax: (373 22) 725 300

Eligibility Requirements for Adoptive Parents: The minimum age requirement for adoptive parents is 25, and the maximum is 50, unless one of the couple is under the age of 50. Married couples and single people may adopt; unmarried couples may not adopt from Moldova.

The presence of the following conditions disqualify prospective adoptive parents from adopting in Moldova: HIV/AIDS, psychological and behavioral disorders, drug addiction, chronic alcoholism, chronic somatic diseases (disability of the 1st and 2nd degree), various forms of cancer, Hepatitis B, C or D. The following conditions may temporarily disqualify a person from adopting: sexually transmitted diseases, tuberculosis and severe virulent diseases.

Residency Requirements: There are no residency requirements for foreign adoptive parents.

Time Frame: An adoption can take six to nine months to complete from the time a child is matched with prospective adoptive parents until the completion of the adoption.

Adoption Agencies and Attorneys: Please review current reports online at http://travel.state.gov/family for a list of agencies.

Adoption Fees: There is a government fee of 1,500 euros for each adopted child and cost of airfare for adoption-related travel. Separate attorneys’ fees can vary greatly.

Adoption Procedures: To begin the adoption process, a registered adoption agency, through its Moldovan representative, forwards the foreign prospective adoptive parents’ file to the Adoption Department. The Department in turn forwards the file to the Education Directorate in the district where a prospective adoptable child resides.

The local Inspector for the Protection of Children's Rights in the district, together with a physician and the director of the orphanage, examines the file and matches the family with an eligible child.

The prospective adoptive parents are then provided with complete, official information about the child, including health and family background. The Moldovan representative sends the prospective parents this information including photographs or a video of the child. The prospective parents have the option to refuse a prospective adoptive child. If they do so, they must inform the Moldovan authorities in writing of their decision.

If the prospective parents agree to accept the child, they send a letter to the Adoption Department through their agency's representative, acknowledging that they are aware of any specific health or other problems, and accept the child. The orphanage receives a copy of the letter the Department. The district's Directorate of Education must then approve the prospective adoption and provide full information on the adoptive parents and the adoptive child to the Adoption Department.

If approved, the Directorate of Education will forward a Notice of Approval of Adoption to the Department. The Adoption Department will then decide whether to approve the adoption. Although prospective adoptive parents do not need to travel to Moldova to meet the prospective adoptive child at the time of the acceptance of the match, both parents must appear in court in Moldova to finalize the adoption.

The approved adoption file then proceeds to the court system through the district's Inspector for the Protection of Children’ Rights. Once the adoptive parents satisfy the Moldovan adoption requirements, a judge must grant a final adoption. The Moldovan government will then allow the child to leave Moldova. The adoptive parents can change the child’ name and request a new birth certificate (listing their names as parents) at the Moldovan Civil Registry office. Afterwards, the adoptive parents need to apply for a passport for the child at the Moldovan passport office.

Required Documents: The adoption application should contain:

• name; year, month and day of birth; residence of the prospective adoptive parent(s);
• name; year, month and day of birth; residence of the child to be adopted;
• information about the biological parents and siblings of the prospective adoptive child; and,
• request to change name and place of birth (in the case of adoption of a child who is 1 year of age or over), and register the adoptive parents as the birth parents on the child's birth certificate.

The following documents shall be attached to the application:

• A copy of the adoptive parent's birth certificate, if the adoption is solicited by an unmarried person;
• The written consent of the spouse or, proof of the legal termination of any prior marriage (such as a final decree of divorce), if applicable;
• Doctor's certificate of the prospective adoptive parents;
• Employment certificate, including the occupation, years of service, and income;
• An authenticated copy of the prospective adoptive parent's Deed of Sale or lease agreement;
• The court presiding over the adoption may require additional documents, including criminal records, if applicable; and
• Approval by the prospective adoptive parents’ government and permission for the adopted child to reside in their new country of residence. An approved Form I-600A will meet this requirement.

All documents must be properly authenticated and translated into the State Language (Romanian). Two copies of all the above-listed documents must be submitted together with the adoption application.

Embassy in the United States
2101 S. Street N.W.
Washington, D.C. 20008
Tel: (202) 667-1130/1/7
Fax: (202) 667-1204
E-mail: [email protected]

U.S. Immigration Requirements: Prospective adoptive parents are strongly encouraged to consult USCIS publication M-249, The Immigration of Adopted and Prospective Adoptive Children, as well as the Department of State publication, International Adoptions. Please see the International Adoption section of this book for more details and review current reports online at http://travel.state.gov/family.

U.S. Embassy
103, A. Mateevici Street
Chisinau, Moldova MD 2009
Tel: (373 22) 408 300
Fax: (373 22) 226 361
E-mail: [email protected]
Internet: http://moldova.usembassy.gov

Additional Information: Specific questions about adoption in Moldova may be addressed to the U.S. Embassy in Chisinau. Questions about applying for an immigrant visa should be directed to the U.S. Embassy in Bucharest. General questions regarding intercountry adoption may be addressed to the Office of Children's Issues, U.S. Department of State, CA/OCS/CI, SA-29, 4th Floor, 2201 C Street, NW, Washington, D.C. 20520-4818, and toll-free Tel: 1-888-407-4747.

Moldova

Compiled from the August 2006 Background Note and supplemented with additional information from the State Department and the editors of this volume. See the introduction to this set for explanatory notes.

Official Name:
Republic of Moldova

PROFILE

PEOPLE AND HISTORY

GOVERNMENT AND POLITICAL CONDITIONS

ECONOMY

DEFENSE AND MILITARY ISSUES

FOREIGN RELATIONS

U.S.-MOLDOVAN RELATIONS

TRAVEL

PROFILE

Geography

Area: 33,843 sq. km. (13,000 sq. mi.); slightly larger than Maryland.

Cities: Capital—Chisinau.

Terrain: Rolling steppe, gradual slope south to Black Sea.

Climate: Moderate winters, warm summers.

Time Zone: GMT+2

People

Nationality: Noun—Moldovan(s). Adjective—Moldovan.

Population: (January 2006) 3.39 million, excluding the estimated Transnistrian population of 580,000.

Population growth rate: (2005) 0.5% (est.).

Ethnic groups: (2004 census) Mold-ovan (83.7%), Ukrainian (6.6%), Russian (1.7%), Gagauz (4.5%), Bulgarian (1.7%), Romanian (1.4%), other (0.4%).

Religions: Christian Orthodox (93.3%), Baptist (1%), Adventist, Roman Catholic, Jewish.

Languages: Romanian (officially known as Moldovan), Russian, Ukrainian, Gagauz.

Education: Literacy—96%.

Health: Infant mortality rate—12/1,000. Life expectancy—68.4 years.

Work force: (1.3 million) Agriculture—41%; industry—12%; other—47%.

Government

Type: Republic.

Constitution: Adopted July 28, 1994.

Independence: August 27, 1991 (from Soviet Union).

Government branches: Executive—President (head of state), Prime Minister (head of Government), Government (cabinet). Legislative—unicameral Parliament. Judicial—Supreme Court.

Political subdivisions: 32 counties (raions), 4 municipalities, and one autonomous territorial unit.

Political parties: Communist Party, Christian Democratic People’s Party, Our Moldova Alliance, Democratic Party, Social Liberal Party, Social-Democratic Party, and the Party for Social Democracy.

Suffrage: Universal at 18.

Economy

GDP: (2005) $2.9 billion ($2.6 billion in 2004; $2.0 billion in 2003).

GDP real growth rate: (January-March 2006) 6.2% (7.1% in 2005; 7.4% in 2004; 6.6% in 2003; 7.8% in 2002).

Per capita GDP: (2005) $890 ($766 in 2004; $540 in 2003: $448 in 2002).

Natural resources: Lignite, phosphates, gypsum, arable land, and limestone.

Agriculture: Products—vegetables, fruits, wine and spirits, grain, sugar beets, sunflower seeds, meat, milk, eggs, tobacco, walnuts.

Industry: Types—processed foods and beverages, including wine and refined sugar; processed fruit and vegetable products, including vegetable oil; dairy and meat products; tobacco items; metal processing and production of machinery; textiles and clothing, shoes; furniture.

Trade: (2005) Exports—$1.091 billion (of which 50% go to countries outside the former Soviet Union) foodstuffs, wine, textiles, clothing, footwear and machinery. Major markets—Russia, Italy, Romania, Ukraine, Belarus, Germany. Imports—$2.312 billion (of which 60% come from countries outside the former Soviet Union) gas, oil, coal, steel, machinery and equipment, chemical products, textiles, foodstuffs, automobiles, and other consumer durables. Major suppliers—Ukraine, Russia, Romania, Germany, Italy.

Currency: Moldovan Leu (plural Lei).

Exchange rate: Lei/US$: (2005) 12.60; 12.83 (end of year); (12.33 average in 2004); (13.94 average in 2003); (13.57 average in 2002).

PEOPLE AND HISTORY

Ethnic groups represented in Mold-ova include Moldovan/Romanian, Ukrainian, Russian, Gagauz, and Bulgarian. Romanian (officially known as Moldovan) is the official language; Russian, Ukrainian, and Gagauz also are spoken. The great majority of Moldova’s population is Christian Orthodox—90% of the population nominally belongs to one of the two main Orthodox denominations.

The Moldovan Orthodox Church, an autonomous diocese of the Russian Orthodox Church and loyal to the Patriarch of Moscow, has 1,194 parishes; the Bessarabian Orthodox Church, affiliated with the Romanian Orthodox Patriarchate in Bucharest, has 124 parishes. In addition, followers of the Old Rite Russian Orthodox Church (Old Believers) make up approximately 3.6% of the population.

The Republic of Moldova occupies most of what has been known as Bessarabia. Moldova’s location has made it a historic passageway between Asia and southern Europe, as well as the victim of frequent warfare. Greeks, Romans, Huns, and Bulgars invaded the area, which in the 13th century became part of the Mongol empire. An independent Moldovan state emerged briefly in the 14th century under celebrated leader Stefan the Great but subsequently fell under Ottoman Turkish rule in the 16th century.

After the Russo-Turkish War of 1806-12, the eastern half of Moldova (Bessarabia) between the Prut and the Dniester Rivers was ceded to Russia, while Romanian Moldavia (west of the Prut) remained with the Turks. Romania, which gained independence in 1878, took control of Russian-ruled Bessarabia in 1918. The Soviet Union never recognized the action and created an autonomous Moldavian republic on the east side of the Dniester River in 1924.

In 1940, Romania was forced to cede Bessarabia to the Union of Soviet Socialist Republics (U.S.S.R.), which established the Moldavian Soviet Socialist Republic by merging the autonomous republic east of the Dniester and the annexed Bessarabian portion. Stalin also stripped the three southern counties along the Black Sea coast from Moldova and incorporated them in the Ukrainian Soviet Socialist Republic. Romania sought to regain Bessarabia by joining with Germany in the 1941 attack on the Soviet Union. However, Moldova was ceded back to Moscow when hostilities between the U.S.S.R. and Romania ceased at the end of World War II. The present boundary between Mold-ova and Romania was established in 1947.

In September 1990, the Supreme Soviet elected Mircea Snegur as President of the Soviet Socialist Republic of Moldova. A former Communist Party official, he endorsed independence from the Soviet Union and actively sought Western recognition. On May 23, 1991, the Supreme Soviet renamed itself the Parliament of the Republic of Moldova, which subsequently declared its independence from the U.S.S.R.

In August 1991, Moldova’s transition to democracy initially had been impeded by an ineffective Parliament, the lack of a new constitution, a separatist movement led by the Gagauz (Christian Turkic) minority in the south, and unrest in the Transnistria region on the left bank of the Nistru/Dniester River, where a separatist movement declared a “Transdniester Moldovan Republic” in September 1990.

The Russian 14th Army intervened to stem widespread violence and support the Transnistrian regime which is led by supporters of the 1991 coup attempt in Moscow. In 1992, the government negotiated a ceasefire arrangement with Russian and Transnistrian officials, although tensions continue, and negotiations are ongoing. In February 1994, new legislative elections were held, and the ineffective Parliament that had been elected in 1990 to a 5-year term was replaced. A new constitution was adopted in July 1994. The conflict with the Gagauz minority was defused by the granting of local autonomy in 1994.

GOVERNMENT AND POLITICAL CONDITIONS

In 2000, Parliament passed a decree making Moldova a parliamentary republic, with the president elected by Parliament instead of by popular vote. Widespread popular dissatisfaction with previous governments and economic hardship led to a surprise at the polls in February 2001. In elections certified by international observers as free and fair, slightly over half of Moldova’s voters cast their ballots for the Communist Party. Under the rules of Moldova’s proportional representation system, the Communist faction, which in the previous Parliament consisted of 40 of Parliament’s 101 seats, jumped to 71—a clear majority. The Parliament then elected the leader of the Communist faction, Vladimir Voronin, to be President.

President Voronin’s first term was marked by up and down relations with the International Monetary Fund (IMF) and the World Bank. Politically, the government was committed to the reduction of poverty by allocating more resources to social safety net items such as health, education, and increasing pensions and salaries. Voronin proceeded with former President Lucinschi’s plans to privatize several important state-owned industries and even on occasion broke with his own party over important issues.

Under President Voronin, relations with the United States have remained strong. From January to April 2002, large demonstrations took place in opposition to several controversial government proposals, including expanded use of the Russian language in schools and its designation as an official language. While the demonstrations were sometimes tense, the government did not use force and ultimately agreed to Council of Europe (CoE) mediation.

In March 2005 parliamentary elections, the Communist Party received 46.1% of the vote, or 56 seats in the 101-member Parliament—more than enough for the 51-vote minimum required to form a government, but short of the 61 votes necessary to elect a president. However, President Voronin was re-elected with support from the Christian Democratic People’s Party and from the Democratic and Social Liberal party factions, after Voronin promised to deliver on needed reforms and Euro-Atlantic integration for the country. These defections broke apart the opposition unity of the pre-election Moldovan Democratic Bloc, led by Our Moldova Alliance (AMN) faction leader and former Chisinau Mayor Serafim Urechean.

Local elections in May and June 2003—the first nationwide contests since the Communists came to power—did not meet the relatively high electoral standards set in previous Moldovan elections, according to international observers. While the voting itself generally met international standards, the government’s behavior in the campaign period—including bias in state media, misuse of administrative resources, and the arrests of two opposition mayors—represented a step backward.

The Communists won the largest share of votes, but lost in the country’s highest-profile race, for mayor of Chisinau. Former Mayor and AMN leader Serafim Urechean decided to give up his mayoral seat to retain his mandate as an elected parliamentarian in the March 2005 elections, as Moldovan legislation prohibits holding both positions simultaneously. Early mayoral elections for Chisinau were held in July 2005 but were declared invalid due to low turnout. Elections in the semi-autonomous region of Gagauzia will be held in 2006, and local elections across Mold-ova are scheduled for 2007.

In addition to state-sponsored media, there are several independent newspapers,

radio and television stations, and news services. The independent media organizations, along with some that are affiliated with political parties, often criticize government policies. In August 2004, Teleradio Moldova (TRM) was officially transformed from a state-owned company into a public broadcaster. However, journalists and civil society representatives, who claimed the process was nontransparent and meant to stack the new TRM staff with those favorable to the government, met this move with large protests.

Peaceful assembly is allowed, though permits for demonstrations must be obtained; private organizations, including political parties, are required to register with the government. Legislation passed in 1992 codified freedom of religion but required that religious groups register with the government.

In February 2005, Brussels and Chisinau agreed on a European Union (EU)-Moldova Action Plan, a “road-map” of reforms to strengthen the democratic and economic situation of the country and facilitate its Euro-Atlantic integration. Although Mold-ova has made some progress toward laying the structural and legislative foundation for reform, the EU has emphasized that more implementation is needed.

Transnistria

The population of the Moldovan region of Transnistria is approximately 40% Romanian/Moldovan, 28% Ukrainian, and 23% Russian. Separatist forces maintain control of the Transnistrian region, which lies along the Ukrainian border. Moldova has tried to meet the Russian minor-ity’s demands by offering the region rather broad cultural and political autonomy. The dispute has strained Moldova’s relations with Russia. The July 1992 ceasefire agreement established a tripartite peacekeeping force comprised of Moldovan, Russian, and Transnistrian units.

Negotiations to resolve the conflict continue, and the ceasefire is still in effect. The Organization for Security and Cooperation in Europe (OSCE) is trying to facilitate a negotiated settlement and has had an observer mission in place for several years. In July 2002, OSCE, Russian, and Ukrainian mediators approved a document setting forth a blueprint for reuniting Moldova under a federal system. Over the next year and a half, the settlement talks alternated between periods of forward momentum and periods of no progress. In February 2003, the U.S. and EU imposed visa restrictions against the Transnistrian leadership. In April 2003, the Moldovan Government and the Transnistrian authorities agreed to establish a joint commission to draft a constitution for a reintegrated state. However, fundamental disagreements over the division of powers remained, and a settlement proved elusive.

In a surprise move, President Voronin decided not to sign a Russian-brokered settlement with Transnistria in November 2003; the proposal—seen by many as pro-Transnistrian—sparked opposition protests. During the summer of 2004, the Transnistrian separatists forcibly closed several Romanian language Latin-script schools in the region, for which the regime was subject to international condemnation. In 2005, the Transnistrian regime prevented several farmers on the right bank of the Nistru River from working their fields on the left bank, within Transnistria’s “borders.” The OSCE Mission to Moldova eventually mediated solutions to these crises.

After a 15-month pause, the sides met for a renewed round of settlement negotiations in October 2005. Mediators from Ukraine, Russia, and the OSCE joined the Moldovan and Transnistrian representatives at the talks. In addition, the U.S. and EU joined the talks as observers. However, subsequent “5+2” negotiations have made little progress on a settlement or on withdrawal of Russian forces from Moldova.

Russia still has weapons and munitions of the Operational Group of Russian Forces (formerly the Russian 14th Army) stationed in Transnistria, although it pledged to remove them under a timetable established at the 1999 OSCE Ministerial—the so-called “Istanbul Accords.” However, there has been no progress on Russian withdrawals since early 2004.

In response to Moldova’s call for international monitoring of the border, in December 2005 the EU dispatched a Border Assistance Mission (EUBAM) to help stem the flow of illegal trade between Ukraine and Moldova. In March 2006, Ukraine and Moldova began implementing a 2003 customs agreement, under which Transnistrian companies seeking to engage in cross-border trade must register in Chisinau. Despite the protests of the Transnistrian regime, most Transnistrian businesses have subsequently registered. In what is seen as a response to the new customs procedures, the Transnistrian regime boycotted the 5+2 talks and declared that a “referendum” on the independence of the regime would be held in September 2006.

Principal Government Officials

Last Updated: 1/24/2007

President: Vladimir VORONIN

Speaker of the Parliament: Marian LUPU

Prime Minister: Vasile TARLEV

First Dep. Prime Min.: Zinaida GRECIANI

Dep. Prime Min.: Andrei STRATAN

Dep. Prime Min.: Vitalie VRABIE

Min. of Agriculture & Food Industry: Anatolie GORODENCO

Min. of Culture & Tourism: Artur COZMA

Min. of Defense: Valeriu PLESCA

Min. of Economics & Trade: Igor DODON

Min. of Education, Youth, & Sport: Victor TVIRCUN

Min. of Environment & Natural Resources: Constantin MIHAILESCU

Min. of Finance: Mihai POP

Min. of Foreign Affairs: Andrei STRATAN

Min. of Health: Ion ABABII

Min. of Industry & Infrastructure: Vladimir ANTOSII

Min. of Information Development: Vladimir MOLOJEN

Min. of Internal Affairs: Gheorghe PAPUC

Min. of Justice: Vitalie PIRLOG

Min. of Local Public Admin.: Vitalie VRABIE

Min. of Reintegration: Vasile SOVA

Min. of Social Protection, Family, & Children: Galina BALMUS

Min. of Transport & Roads Management: Vasile URSU

Sec., Supreme Security Council: Ion MOREI

Prosecutor Gen.: Valeriy BALABAN

Dir., Intelligence & Security Service: Ion URSU

Pres., National Bank: Leonid TALMACI

Ambassador to the US: Nicolae CHIRTOACA

Permanent Representative to the UN, New York: Alexei TULBURE

Moldova’s embassy in the United States is at 2101 S Street NW, Washington, DC 20008 (tel: 202-667-1130; fax 202-667-1204).

More information about Moldova can be found at the official (Romanian and Russian language) Government of Moldova website at www.mold-ova.md. The Moldova.org site is maintained by the Moldova Foundation, a non-governmental organization, and has some useful links.

ECONOMY

Moldova remains the poorest country in Europe. It is landlocked, bounded by Ukraine on the east and Romania to the west. It is the second smallest of the former Soviet republics and the most densely populated. Industry accounts for only 20% of its labor force, while agriculture’s share is more than one-third.

Moldova’s proximity to the Black Sea gives it a mild and sunny climate. This makes the area ideal for agriculture and food processing, which accounts for about 40% of the country’s GDP. The fertile soil supports wheat, corn, barley, tobacco, sugar beets, and soybeans. Beef and dairy cattle are raised, and beekeeping is widespread. Moldova’s best-known product comes from its extensive and well-developed vineyards concentrated in the central and southern regions. In addition to world-class wine, Moldova produces liqueurs and champagne. It is also known for its sunflower seeds, walnuts, apples, and other fruits.

Like many other former Soviet republics, Moldova has experienced economic difficulties. Since its economy was highly dependent on the rest of the former Soviet Union for energy and raw materials, the breakdown in trade following the breakup of the Soviet Union had a serious effect, exacerbated at times by drought and civil conflict. The Russian ruble devaluation of 1998 had a deleterious effect on Moldova’s economy, but economic growth has been steady since 2000.

Moldova has made progress in economic reform since independence. The government has liberalized most prices and has phased out subsidies on most basic consumer goods. A program begun in March 1993 has privatized 80% of all housing units and nearly 2,000 small, medium, and large enterprises. Other successes include the privatization of nearly all of Moldova’s agricultural land from state to private ownership, as a result of an American assistance program, “Pamint” (“land”), completed in 2000. A stock market opened in June 1995.

Following the economic difficulties caused by the Russian currency crisis of 1998, inflation dropped to 5.2% in 2002, the lowest level since Moldova’s independence. However, inflation spiked again to 11.6% in 2003; 12.4% in 2004, and 11.9% in 2005. The local currency continues to be comparatively stable.

The annual average exchange rate between 2001 and 2005 fluctuated between Leu 12.50 to 13.50 to the U.S. dollar. However, the National Bank of Moldova has been forced to intervene actively on several occasions to bolster the currency market.

Moldova continues to make progress toward developing a viable free-market economy. The country recorded its sixth consecutive year of positive GDP growth in 2005, with year-end real GDP growth of 7.1%. This growth is impressive considering that prior to 2000, Moldova had recorded only one year of positive GDP growth since independence.

Budget execution in 2005 was also positive, as actual state budget revenues exceeded projections by 0.4%. The Moldovan economy continues to depend greatly on remittances sent from Moldovans working abroad. These inflows are estimated at U.S. $400-500 million dollars annually.

Privatization results in 2005 were not significant; total proceeds amounted to U.S. $5.1 million. Several smaller companies and one winery (Cojusna) were privatized in 2005, but the government postponed indefinitely the privatization of several large state enterprises, including two power distribution companies. Sporadic and ineffective enforcement of the law, economic and political uncertainty, and government harassment and interference continue to discourage inflows of foreign direct investment.

Imports continued to grow more rapidly than exports during the first half of 2006. Moldova’s trade deficit worsened as higher-priced energy imports outpaced the value of Moldovan exports, which have been severely limited by Russia’s ban on imports of Moldovan wine and agricultural products. Moldova traditionally exported between 70-80% of its wine production to Russia.

The International Monetary Fund (IMF) and World Bank resumed lending to Moldova in July 2002, and then suspended lending again in July 2003. In early 2006, Moldova reached agreement with the Paris Club on rescheduling of Moldova’s foreign debt. In addition, in the spring of 2006, the IMF reached an agreement with the Moldovan Government for a Poverty Reduction and Growth Facility designed to bolster foreign reserves against external shocks with a 3-year, $117 million program that includes a new IMF loan to the National Bank of Moldova.

Moldova continues to be subject to Russian economic pressure. In 2005, Russia enacted a ban on Moldovan agricultural products, and in 2006 it banned imports of Moldovan wines. The wine ban has been particularly painful because, prior to the ban, Moldovan wine sales approached 15% of GNP, and it exported approximately 80% of its wine to Russia. In January 2006, Russian energy giant Gazprom temporarily cut off natural gas deliveries to Ukraine and Moldova —which is almost completely dependent on its neighbors for energy—and subsequently doubled the price of gas to Moldova. The impact has been substantial: Mold-ova’s exports to Russia declined by 38.9% in the first half of 2006 and total exports dropped 8.5%.

DEFENSE AND MILITARY ISSUES

Moldova has accepted all relevant arms control obligations of the former Soviet Union. On October 30, 1992, Moldova ratified the Conventional Armed Forces in Europe Treaty, which establishes comprehensive limits on key categories of conventional military equipment and provides for the destruction of weapons in excess of those limits. It acceded to the provisions of the nuclear Non-Proliferation Treaty in October 1994 and to the Biological Weapons Convention in December 2004. It does not have nuclear, biological, or chemical weapons. Moldova joined the North Atlantic Treaty Organization’s Partnership for Peace on March 16, 1994. Due to Moldova’s constitutional neutrality, it is not a participant in the Commonwealth of Independent States (CIS—a group of 12 former Soviet republics) Collective Security Agreement.

FOREIGN RELATIONS

Moldova’s Parliament approved the country’s membership in the Commonwealth of Independent States and a CIS charter on economic union in April 1994.

In 1995, the country became the first former Soviet republic admitted to the Council of Europe. In addition to its membership in NATO’s Partnership for Peace, Moldova also belongs to the United Nations, the OSCE, the North Atlantic Cooperation Council, the International Monetary Fund, the World Bank, and the European Bank for Reconstruction and Development. Moldova is a member of the World Trade Organization (WTO).

In 1998, Moldova contributed to the founding of GUAM, a regional cooperative agreement made up of Georgia, Ukraine, and Azerbaijan, in addition to Moldova. Although the agreement initially included a declaration of mutual defense, Moldova has since declared its disinterest in participating in any GUAM-based mutual defense initiative.

Moldova has been involved in information exchange, trade and transportation, border control, and energy projects issues within this regional agreement. In 2006, the organization’s members voted to change the name to the Organization for Democracy and Economic Development—GUAM.

In the atmosphere of heightened international sensitivity to terrorism following the events of September 11, 2001, Moldova has been a supporter of American efforts to increase international cooperation in combating terrorism. Moldova has sent demining units and peacekeepers to participate in post-conflict humanitarian assistance in Iraq.

U.S.-MOLDOVAN RELATIONS

The dissolution of the Soviet Union in December 1991 brought an end to the Cold War and created the opportunity to build bilateral relations with the 15 new states that had made up the former U.S.S.R., as they began political and economic transformation. The United States recognized the independence of Moldova on December 25, 1991 and opened an Embassy in its capital, Chisinau, in March 1992.

A trade agreement providing reciprocal most-favored-nation tariff treatment became effective in July 1992. An Overseas Private Investment Corporation agreement, which encourages U.S. private investment by providing direct loans and loan guarantees, was signed in June 1992. A bilateral investment treaty was signed in April 1993. Generalized system of preferences status was granted in August 1995, and some Eximbank coverage became available in November 1995.

The past year has seen significant developments in Moldova’s relations with the West. In 2005, the European Union appointed a Special Representative for Moldova and the negotiations to resolve the Transnistrian conflict and the Delegation of the European Commission opened an office in Chisinau. In December 2005, Moldova welcomed an EU Border Assistance Mission (EUBAM) along its Ukrainian border to crack down on smuggling, strengthen customs procedures, and facilitate cross-border cooperation. In accordance with a 2005 Action Plan with the EU, Mold-ova has begun to harmonize Mold-ova’s laws with those of the EU.

As part of this, in late 2005, Moldova enacted its “Guillotine” laws, which slashed unnecessary business regulations, established a framework for relations between the private sector and government, and created a mechanism to review the suitability of draft legislation. In addition, Mold-ova is currently negotiating a Threshold Country Program focused on fighting corruption—still a significant obstacle to development—with the Millennium Challenge Corporation.

Principal U.S. Embassy Officials

CHISINAU (E) Address: 103 Str. A. Mateevici; Phone: 373-22-40-8300; Fax: 373-22-23-3044; INMARSAT Tel: 6-831-32845; Workweek: M-F 9:00 a.m.–6:00 p.m.; Website: www.usembassy.md.

Last Updated: 1/5/2007

TRAVEL

Consular Information Sheet : December 8, 2006

Country Description: Moldova is a republic with a freely elected government. It has been an independent nation since 1991. Its capital, Chisinau, offers adequate hotels and restaurants, but tourist facilities in other parts of the country are not highly developed, and many of the goods and services taken for granted in other countries are not yet available.

Entry/Exit Requirements: On June 28 President Voronin signed into law a act which will exempt citizens of the United States, EU member states, Canada, Switzerland and Japan from visa requirements starting January 1, 2007. These nationals will no longer need Moldovan visas and will be able to stay in the country for up to 90 days within a six-month period without registration.

In the interim, American citizens can obtain a visa from a Moldovan diplomatic mission abroad before traveling to Moldova. Alternatively, American citizens holding passports still valid for 6 months can obtain visas at the Chisinau International Airport or at specific border crossings, but only for stays of up to 90 days. American citizens are no longer required to have an invitation from a Moldovan citizen or entity in order to obtain a visa. For more information on entry requirements, please contact the Moldovan Embassy, 2101 S Street N.W., Washington, D.C. 20008, telephone: (202) 667-1130, (202) 667-1131, or (202) 667-1137, fax: (202) 667-1204, email: moldova@ dgs.dgsys.com. Travelers may also wish to consult the Moldovan Ministry of Foreign Affairs’ website for general information on Moldovan visas and for application forms: http://www.mfa.md/En/ConsularInf/Visas-Info.htm.

Safety and Security: The U.S. Government has no information related to the targeting of U.S. citizens, interests or facilities by terrorist organizations in Moldova, and no Americans have been killed or injured as a result of terrorist activity in Moldova. However, the U.S. government remains deeply concerned about the heightened threat of terrorist attacks against U.S. citizens and interests abroad. Americans are reminded to remain vigilant with regard to their personal security and to exercise caution. Because Moldovan Government authorities often ask to see identification on the street, Americans should carry a copy of their passport with them at all times.

A separatist regime controls a narrow strip of land in the Transnistria region of eastern Moldova. The United States and other countries do not recognize this regime. Since no formal diplomatic relations exist between the United States and local authorities there, the provision of consular assistance to American citizens cannot be ensured. Travelers should exercise caution in visiting or transiting the area.

Travelers should be aware that there are numerous road checkpoints along the roads into and out of the Transnistria region. Taking photographs of checkpoints into and out of the Transnistria region or the personnel working there is prohibited.

For the latest security information, Americans traveling abroad should regularly monitor the Department’s Internet web site where the current Worldwide Caution Public Announcement, Travel Warnings and Public Announcements can be found.

Up-to-date information on safety and security can also be obtained by calling 1-888-407-4747 toll free in the U.S. and Canada, or for callers outside the U.S. and Canada, a regular toll-line at 1-202-501-4444. These numbers are available from 8:00 a.m. to 8:00 p.m. Eastern Time, Monday through Friday (except U.S. federal holidays).

Crime: Moldova’s economic difficulties, as well as increased organized criminal activity and more frequent travel by foreigners to Moldova, contribute to the risk visitors face from street crime, some potentially violent. While this risk is no greater than in most cities in the United States, many Americans have reported theft of money and small valuables from hotel rooms and local apartments. Cases of breaking and entering into homes and offices have occurred. Travelers are wise to exercise the same precautions with regard to personal safety and protection of valuables in Chisinau that they would in any major U.S. city.

Precautions should also be taken when using ATM machines in Mold-ova. Some Americans have reported unauthorized withdrawals from their accounts after using ATMs. Instances have been reported of PIN theft from use of ATMs in Moldova, either by “skimming” devices, which record the ATM card information while in use, or by surreptitious observation.

Train and bus services are below Western European standards and some U.S. citizens have been victims of crimes involving theft while traveling on international trains to and from Moldova.

Americans who use the Moldovan postal service report frequent losses from international letter and package mail.

Internet Fraud Warning: The Embassy is aware of various confidence schemes that have taken advantage of American citizens, frequently via the Internet. In some cases these involve the purchase or sale of items on the Internet in which the payment or shipment of goods was not completed by a Moldovan counterpart. In the spring of 2006, Moldovan police recovered over $250,000 in jewelry that was sent to “buyers” in Moldova from the U.S. via fake online escrow companies. Substantial criminal enterprises specializing in this type of crime (Internet auction fraud) are emerging in Mold-ova. In other cases, American citizens, particularly males, have met potential Moldovan fiancé(e)s on the Internet who have convinced them to send hundreds or even thousands of dollars, but have no intention of a serious relationship.

Once the American citizen starts to question the reason for sending the money, the Moldovan fiancé(e)s suddenly ends his/her contact. On occasion, American citizens who come to Moldova to visit someone they have first met over the Internet have reported becoming subject to crimes such as extortion and involuntary detention. American citizens should be aware that any such activity committed by individuals in Moldova is subject to the Moldovan legal system and could prove difficult to prosecute. In the vast majority of cases, there is little that the U.S. Embassy can do to assist American citizens who are defrauded by Moldovans via the Internet.

Information for Victims of Crime: The loss or theft abroad of a U.S. passport should be reported immediately to the local police and the nearest U.S. Embassy or Consulate. If you are the victim of a crime while overseas, in addition to reporting to local police, please contact the nearest U.S. Embassy or Consulate for assistance. The Embassy/Consulate staff can, for example, assist you to find appropriate medical care, contact family members or friends and explain how funds could be transferred.

Although the investigation and prosecution of the crime is solely the responsibility of local authorities, consular officers can help you to understand the local criminal justice process and to find an attorney if needed.

Medical Facilities and Health Information: Medical care in Mold-ova is substandard throughout the country including in Chisinau. In the event of serious medical conditions every effort should be made to go to Western Europe. Hospital accommodations are inadequate throughout the country and advanced technology is lacking.

Shortages of routine medications and supplies may be encountered. Elderly travelers and those with existing health problems may be at particular risk due to inadequate medical facilities. The U.S. Embassy maintains lists of medical facilities and English-speaking doctors, but cannot guarantee or endorse competence. Visitors to Moldova are advised to bring their own supply of both prescription and common over-the-counter medications.

Pharmacies are not stocked to Western standards and products are not labeled in English. Poor quality and/or fraudulent medications have been reported.

Major health concerns include Hepatitis A (food-borne), Hepatitis B and Hepatitis C (blood and body fluids-borne). The incidence of sexually transmitted diseases is high as in most developing countries. Tuberculosis is common in Moldova and the World Health Organization has placed it in its “highest risk” category. Travelers planning to stay in Mold-ova for more than 3 months should have a pre-departure PPD skin test status documented. Travelers should limit their exposure to TB by avoiding crowded public places and public transportation whenever possible. Domestic help should be screened for TB.

Information on vaccinations and other health precautions, such as safe food and water precautions and insect bite protection, may be obtained from the Centers for Disease Control and Prevention’s hotline for international travelers at 1-877-FYI-TRIP (1-877-394-8747); or via the CDC’s Internet site at http://www.cdc.gov/travel. For information about outbreaks of infectious diseases abroad consult the World Health Organization’s (WHO) website at http://www.who.int/en.

Medical Insurance: The Department of State strongly urges Americans to consult with their medical insurance company prior to traveling abroad to confirm whether their policy applies overseas and if it will cover emergency expenses such as a medical evacuation.

Traffic Safety and Road Conditions: While in a foreign country, U.S. citizens may encounter road conditions that differ significantly from those in the United States. The information below concerning Moldova is provided for general reference only, and may not be totally accurate in a particular location or circumstance.

Moldova’s highway infrastructure consists mainly of two-lane roads that often lack markings or signage, are unevenly maintained and seldom have lighting. Caution should be taken to prevent collisions with agricultural vehicles and/or livestock. Urban roads in Moldova are infrequently maintained and often lack clear signs or lane markings. Travel outside of urban areas before dawn and after dusk should be avoided if at all possible.

Drivers and pedestrians should exercise extreme caution to avoid accidents, which are commonplace. Many Moldovan drivers would be considered aggressive or erratic by American standards. Many accidents involve drunk drivers. The quality and safety of public transportation vary widely. Trains, trolleybuses, and buses are often old and may frequently break down. Taxis are available in most urban areas, but vary from old Soviet-era vehicles to newer, Western European or American model vehicles.

Visit the website of the country’s national tourist office at http://www.turism.md/.

Aviation Safety Oversight: As there is no direct commercial air service between the United States and Moldova, the U.S. Federal Aviation Administration (FAA) has not assessed Moldova’s Civil Aviation Authority for compliance with ICAO international aviation safety standards. For more information, travelers may visit the FAA’s Internet web site at http://www.faa.gov.

Special Circumstances: Travelers are advised to register any foreign currency brought into Moldova with customs authorities upon entering the country. It is advisable to contact the Embassy of Moldova in Washington for specific information regarding customs requirements.

Registration: Current Moldovan Government (GOM) border registration procedures will remain unchanged under the new immigration law. Currently, U.S. and most other foreign nationals arriving in Moldova can obtain a visa and register at the point of entry (i.e., airport or border). The Border Guard Service enters the traveler’s personal data into a computer program and transfers the data to the GOM’s Population Register. Visitors are no longer given a paper “registration receipt.”

For stays exceeding 90 days, foreign nationals will be required to obtain “immigration certificates” and residence permits from the National Bureau for Migration. Foreign nationals planning to work in Mold-ova must also obtain a work permit. Immigration, residence and work permits usually need to be extended annually, but may be issued for up to five years.

Until January 1, 2007, U.S. and other citizens will require a Moldovan visa. Although they may enter Moldova from Ukraine through the secession-ist-controlled Transnistria region, they will be unable to obtain a visa at a border crossing (because the border is not under GOM control) and may face possible penalties in Moldova for illegal entry. Therefore, until January 1, 2007, U.S. citizens planning to enter Moldova overland through Ukraine are strongly encouraged to obtain their visas in advance (e.g., from the Moldovan Embassy in Washington or Kyiv).

When the new law goes into effect, U.S. citizens will be able to enter Moldova through Transnistria without having to obtain visas or registration documents at the border. However, because they will not have been registered at the border, they will still have to register with the nearest office of the Ministry of Information Development (MID) within three days of arrival.

For more information on registering with Moldovan authorities, U.S. citizens are encouraged to call the Consular section of the U.S. Embassy in Chisinau at (373) (22) 40-83-00.

Requirement to Carry Documentation: As noted above, Moldovan police have the right to request identity documents from any person. Individuals who fail to produce appropriate ID upon request may be subject to detention and fines. Therefore, Americans are advised to carry their U.S. passports (or a copy of their passport’s biographical information page) with registration card, if applicable, or a Moldovan-issued identification document when in public.

Consular Access: Moldovan law enforcement authorities have an uneven record of reporting the arrest or detention of American citizens to the U.S. Embassy, as required under international agreements. American citizens are therefore advised that if they are detained or arrested by Moldovan authorities, they should immediately request that the U.S. Embassy be contacted. Moldovan authorities have generally respected such requests in a prompt manner.

Americans sometimes report encounters with police or other Moldovan officials in which they are pressured to pay a bribe. Such low-level bribery attempts are commonplace in Mold-ova. These encounters should always be reported to the U.S. Embassy. Americans who have refused to pay bribes in Moldova generally report no consequences beyond being delayed or inconvenienced.

Photography: Americans who choose to travel in Transnistria should be aware that foreigners have reported being detained or harassed by authorities for taking photographs of military facilities or public buildings. Photography of checkpoints into and out of the Transnistria region or the personnel working there is prohibited.

Dual Nationality: Moldovan legislation allowing dual citizenship went into effect on October 18, 2003. There is no requirement that dual nationals enter Moldova on their Moldovan passports. For further questions, please contact the Moldovan Embassy in Washington, D.C.

Telephone and Postal Services: Outside of Chisinau, travelers may have difficulty finding public telephones and receiving or making international and local calls. Losses have been reported from international letter and package mail, both of which are subject to a customs inspection before delivery. “Express” mail services such as DHL and Federal Express are available in Chisinau, although in most instances prices are high, and shipments arrive from (or reach) the U.S. in no less than five (5) business days.

Disabled Access: Persons with disabilities should be aware that public facilities and transportation in Mold-ova are rarely designed or built in a way that allows for wheelchair access. Wheelchair entrances, ramps, lifts or similar accommodations are rare; those that do exist are often below Western standards and/or poorly maintained.

Most streets, sidewalks and other public paths are not well maintained and can be hazardous, particularly in poor weather conditions.

Commercial Transactions: Although still generally a cash-only economy, traveler’s checks and credit cards are becoming increasingly accepted in Chisinau, although locations that will accept them outside the capital are still rare.

Caution is advised, however, as some travelers have reported incidents of unauthorized expenditures made on credit cards during or following their use in Moldova, and there have also been reported incidents of fraud and account theft using bank machines.

Business in Transnistria: A separatist regime controls a narrow strip of land in eastern Moldova known as Transnistria (“Pridnestrovie” in Russian). Individuals considering doing business in Transnistria should exercise extreme caution. The Embassy may not be able to offer consular or commercial services to Americans in Transnistria. Moldovan law requires firms (including those located in Transnistria) to register with the Moldovan Government and to use Moldovan customs seals on their exports.

Under a December 2005 agreement between Moldova and Ukraine, Ukrainian customs and border officials require Moldovan customs seals on goods exported from Moldova, including Transnistria, and are enforcing this requirement with EU assistance. Transnistrian firms not legally registered with Moldovan authorities operate in contravention of Moldovan law, which may complicate or prevent the import or export of goods. The Government of Moldova has indicated that it will not recognize the validity of contracts for the privatization of firms in Transnistria that are concluded without the approval of the appropriate Moldovan authorities. A number of Internet fraud schemes have originated in Transnistria.

Criminal Penalties: While in a foreign country, a U.S. citizen is subject to that country’s laws and regulations, which sometimes differ significantly from those in the United States and may not afford the protections available to the individual under U.S. law. Penalties for breaking the law can be more severe than in the United States for similar offenses. Persons violating Moldovan laws, even unknowingly, may be expelled, arrested or imprisoned. Penalties for possession, use, or trafficking in illegal drugs in Moldova are severe, and convicted offenders can expect long jail sentences and heavy fines. Engaging in sexual conduct with children or using or disseminating child pornography in a foreign country is a crime, prosecutable in the United States.

Children’s Issues: For information on international adoption of children and international parental child abduction, see the Office of Children’s Issues website at http://travel.state.gov/family/family_1732.html.

Registration/Embassy Location: Americans living or traveling in Moldova are encouraged to register with the U.S. Embassy through the State Department’s travel registration website, and to obtain updated information on travel and security within Moldova. Americans without Internet access may register directly with the U.S. Embassy. By registering, American citizens make it easier for the Embassy to contact them in case of emergency. The U.S. Embassy is located in Chisinau, Moldova, Strada Alexei Mateevici 103; telephone: (373)(22) 23-37-72, after-hours telephone: (373)(22) 23-73-45; Consular Section Fax: (373)(22) 22-63-61. The Embassy’s website is http://moldova.usembassy.gov.

International Adoption : October 2006

The information below has been edited from a report of the State Department Bureau of Consular Affairs, Office of Overseas Citizens Services. For more information, please read the International Adoption section of this book and review current reports online at www.travel.state.gov/family.

Disclaimer: The information in this flyer relating to the legal requirements of specific foreign countries is based on public sources and current understanding. Questions involving foreign and U.S. immigration laws and legal interpretation should be addressed respectively to qualified foreign or U.S. legal counsel.

Please Note: The Government of Moldova temporarily suspended intercountry adoptions for most of 2005 as the new National Committee for Adoptions (NCA) reaccredited all active adoption agencies operating in Moldova. In early 2006, the NCA allowed reaccredited adoption agencies to process cases and several families completed their adoptions.

Moldova has not passed a comprehensive adoption law and, on June 27, 2006, the Moldovan Constitutional Court ruled that the creation and existence of the NCA were unconstitutional. The U.S. Embassy is working with Moldovan officials to clarify the status of intercountry adoptions from Moldova. This flyer will be updated as more information becomes available.

Patterns of Immigration: Inter-country adoptions are permitted in exceptional cases, when no relatives or other Moldovan families are able to adopt orphans or become their guardians.

Children who have health or developmental problems that Moldovan families cannot afford to treat are also considered exceptional cases. Information about children eligible for adoption is published in the Monitorul Official, the Moldovan government’s official register.

For the first six months after this information is published, an adoptable child is eligible only for domestic adoption by Moldovan citizens. After six months, an adoptable child is eligible for intercountry adoption. Prospective adoptive parents may indicate the sex and age range they prefer.

Adoption Authority:
Ms. Eugenia Goncear
General Director
The National Committee
for Adoption
# 1, Piata Marii Adunari Nationale,
room # 661
Chisinau, Moldova
Tel: (373 22) 250 158
Fax: (373 22) 250 439

Eligibility Requirements for Adoptive Parents: The minimum age requirement for adoptive parents is 25, and the maximum is 50, unless one of the couple is under the age of 50. Married couples and single people may adopt; unmarried couples may not adopt from Moldova. Please review current reports online at www.travel.state.gov/family.

Residency Requirements: There are no residency requirements for foreign adoptive parents.

Time Frame: An adoption can take six to nine months to complete from the time a child is matched with prospective adoptive parents until the completion of the adoption.

Adoption Agencies and Attorneys: Prospective adoptive parents are required to use an accredited adoption agency when adopting in Moldova. There are seven U.S.-based adoption agencies accredited by the National Committee for Adoption, The list may be found at: http://mold-ova.usembassy.gov/international_adoption.html. A list of local attorneys is available on the Embassy’s web site at: http://moldova.usembassy.gov/local_lawyers.html.

Adoption Fees: There is a government fee of 1,500 Euros for each adopted child and cost of airfare for adoption-related travel. Separate attorneys’ fees can vary greatly.

Adoption Procedures: To begin the adoption process, a registered adoption agency, through its Moldovan representative, forwards the foreign prospective adoptive parents’ file to the National Committee for Adoption.

The Committee in turn forwards the file to the Education Directorate in the district where a prospective adoptable child resides. The local Inspector for the Protection of Children’s Rights in the district, together with a physician and the director of the orphanage, examines the file and matches the family with an eligible child.

The prospective adoptive parents are then provided with complete, official information about the child, including health and family background. The Moldovan representative sends the prospective parents this information including photographs or a video of the child. The representative will also send answers from the Moldovan authorities to all additional questions the prospective adoptive parents may have about the child.

The prospective parents have the option to refuse a prospective adoptive child. If they do so, they must inform the Moldovan authorities in writing of their decision. If the prospective parents agree to accept the child, they send a letter to the Committee through their agency’s representative, acknowledging that they are aware of any specific health or other problems, and accept the child. The orphanage receives a copy of the letter from the Committee.

The district’s Directorate of Education must then approve the prospective adoption and provide full information on the adoptive parents and the adoptive child to the Committee. If approved, the Directorate of Education will forward a Notice of Approval of Adoption to the Committee.

The Committee will then decide whether to approve the adoption. Although prospective adoptive parents do not need to travel to Mold-ova to meet the prospective adoptive child at the time of the acceptance of the match, both parents must appear in court in Moldova to finalize the adoption.

The approved adoption file then proceeds to the court system through the district’s Inspector for the Protection of Children’s Rights. Once the adoptive parents satisfy the Moldovan adoption requirements, a judge must grant a final adoption.

The Moldovan government will then allow the child to leave Moldova. The adoptive parents can change the child’s name and request a new birth certificate (listing their names as parents) at the Moldovan Civil Registry office. Afterwards, the adoptive parents need to apply for a passport for the child at the Moldovan passport office.

Documentary Requirements: The adoption application should contain:

• name; year, month and day of birth; residence of the prospective adoptive parent(s);
• name; year, month and day of birth; residence of the child to be adopted,
• information about the biological parents and siblings of the prospective adoptive child;
• request to change name, place of birth, and date of birth (in the case of adoption of a child who is 1 year of age or over), and register the adoptive parents as the birth parents on the child’s birth certificate;

The following documents shall be attached to the application:

• A copy of the adoptive parent’s birth certificate, if the adoption is solicited by an unmarried person;
• A copy of the marriage certificate of the adoptive parents if the adoption is solicited by a married couple;
• The written consent of the spouse or, proof of the legal termination of any prior marriage (such as a final decree of divorce), if applicable;
• Doctor’s certificate of the prospective adoptive parents;
• Employment certificate, including the occupation, years of service, and income;
• An authenticated copy of the prospective adoptive parent’s Deed of Sale or lease agreement;
• The court presiding over the adoption may require additional documents, including criminal records, if applicable; and
• Approval by the prospective adoptive parents’ government and permission for the adopted child to reside in their new country of residence. An approved Form The I-600A will meet this requirement.

Embassy in the United States:
2101 S. Street N.W.
Washington, D.C. 20008
Tel: (202) 667-1130/1/7
Fax: (202) 667-1204
E-mail: [email protected]

U.S. Immigration Requirements: Prospective adoptive parents are strongly encouraged to consult USCIS publication M-249, The Immigration of Adopted and Prospective Adoptive Children, as well as the Department of State publication,

International Adoptions. Please see the International Adoption section of this book for more details and review current reports online at travel. state.gov/family.

U.S. Embassy in Moldova:
103, A. Mateevici Street
Chisinau, Moldova MD 2009
Tel: (373 22) 408 300
Fax: (373 22) 226 361
E-mail: [email protected]
Internet: moldova.usembassy.gov

Additional Information: Specific questions about adoption in Moldova may be addressed to the U.S. Embassy in Chisinau. Questions about applying for an immigrant visa should be directed to the U.S. Embassy in Bucharest. General questions regarding intercountry adoption may be addressed to the Office of Children’s Issues, U.S. Department of State, CA/OCS/CI, SA-29, 4th Floor, 2201 C Street, N.W., Washington, D.C. 20520-4818, and toll-free Tel: 1-888-407-4747.

MOLDOVA

Republic of Moldova

Republica Moldoveneasca

COUNTRY OVERVIEW

LOCATION AND SIZE.

Located in southeastern Europe and bordered on the west by Romania and on all other sides by Ukraine, landlocked Moldova has an area of 33,843 square kilometers (13,067 square miles), making it slightly larger than Maryland. Moldova's border totals 1,389 kilometers (864 miles). The capital, Chişina˘u, is situated in its central part.

The portion of the country that lays east of the Nistru River is known as the Transnistria. Populated primarily by Slavs and economically and culturally oriented toward the Ukraine, the Transnistria has been in revolt against the Moldovan majority in the country (see below).

POPULATION.

The population of Moldova was 4,430,654 in 2000 and its average density was 129.1 inhabitants per square kilometer (334 per square mile) in 1994. In 2000, the birth rate was 12.86 per 1,000 population, while the death rate equaled 12.58 per 1,000. With a net migration rate of-0.31 per 1,000 and a fertility rate of 1.63 children born per woman, the population growth rate was about zero in 2000. Over the 1990s, the population declined because of net economic emigration .

Moldova's population is youthful by European standards, with 23 percent below the age of 14 and 10 percent older than 65. Ethnic Moldovans (Romanians) account for 64.5 percent of the population, Ukrainians for 13.8 percent, Russians for 13 percent, Gagauz (a Turkic-speaking people of Christian faith) for 3.5 percent, Bulgarians for 2 percent, Jews for 1.5 percent, and other groups for 1.7 percent, according to 1989 estimates. In the early 1990s, interethnic violence occurred between the Moldovans and the Slavic majority in the Transnistria region (east of the Nistru [Dniester] River, with a population of 750,000) and the Gagauz in the country's south. The official language is Moldovan (Romanian) but Russian is widely spoken and is the second official language in Transnistria. About 98.5 percent of the population belong to the Orthodox Church. Moldova is predominantly rural, with about 54 percent of the population living mostly in large villages in 1999. The population in the capital of Chişina˘u was 667,000 in 1992; other major cities include Tiraspol and Tighina (Bender) in the east, and Balti in the north.

OVERVIEW OF ECONOMY

Moldova is among Europe's poorest countries. Before Moldova gained its independence from the USSR in 1991, the Soviet regime developed some of Moldova's industries, but Moldova's favorable climate, rich farmland, and lack of mineral resources defined its role as the USSR's primary supplier of fruits, vegetables, wine, tobacco, and processed foods. Soviet planners forced Moldova to develop those economic sectors, and Moldova imported its oil, coal, and natural gas from other USSR republics. The loss of Soviet markets and cheap energy sources with independence in 1991 caused a steep economic decline, energy shortages, and unemployment. Interethnic war, the Russian crisis of 1998, the problems of Ukraine and Romania (which, with Russia, receive 70 percent of Moldova's exports), and record droughts combined for the sharpest gross domestic product (GDP) decline seen in a former Soviet republic; in 1998, the economy reached only 33 percent of its size in 1989. By 1999, GDP was $2,033 per capita.

Since independence, Moldova has followed a path toward reform, introducing a convertible currency, freeing prices from state control, ending subsidies for state-owned enterprises, privatizing the formerly collectivized farmland, removing export controls, and freeing bank interest rates with assistance from the International Monetary Fund (IMF) and the World Bank. (Taken together, these corrections are called structural reform because they change the structure of the economy.) Mass privatization in 1994 transferred to the private sector 1,142 large and medium and 1,093 small enterprises. Cash privatizations were less successful; tenders for the Moldtelecom (the telephone company) in 1998 and the tobacco firm Tutun in 1996 were canceled, and other privatization deals were disappointing. In 1997 and 1998, 223 enterprises were sold at auctions, generating $4.45 million; foreign direct investment reached $7.6 million.

The country's external debt was estimated at $1.3 billion (December 1999) and posed a major challenge to the economy. The country handed 50 percent of its gas pipelines to Russia's gas monopoly Gazprom, its biggest creditor (Moldova owes it $320 million and Transnistria another $400 million). The country is dependent on economic aid, and the International Monetary Fund (IMF) and the World Bank have granted $547 million between 1992 and 1999.

POLITICS, GOVERNMENT, AND TAXATION

Independent since 1991, Moldova is a republic with a multiparty system. Moldova's unicameral parliament is elected by universal suffrage. In February 2001, the Communist Party of Moldova (CPM) won 71 of the 101 seats, the formerly ruling centrist Alliance got 19 seats, and the right-wing nationalist Christian Democratic Popular Party (CDPP) won 11 seats. Popularly-elected President Vladimir Voronin of the CPM appointed a cabinet led by independent ethnic Bulgarian Prime Minister Vasile Tarlev. The CPM has generally opposed privatization and independence for Transnistria, and advocated reorientation towards Russia, but it is highly unlikely that market reforms will be reversed. With its absolute majority in parliament, the CPM will be able to pursue reform without distraction. It is expected that poorer voters will more readily accept austerity policies if they come from a leftist administration such as the CPM. The CPM retained key ministers from the previous reformist cabinet to stress continuity and it maintains rigorous inflation and budget targets, but it focuses on restoring industrial and agricultural output through policies that may antagonize the IMF. Also on the CPM agenda are reforming the public pension system by linking contributions to benefits and raising the retirement age; restructuring the public health care system by partially privatizing health services; and reforming the social assistance system. The IMF expressed satisfaction with its stabilization and privatization plans.

The Democratic Convention (DCM) is a right-of-center, pro-Western bloc, and the Democratic Party of Moldova (DPM) is a centrist group that developed from the older Movement for a Democratic and Prosperous Moldova, the Popular Democratic Party, the New Forces, and the National Youth League. There are also a variety of small and relatively insignificant parties.

The government's role in the economy is large but declining as the size of the private sector has grown considerably over the 1990s. In 1999, an estimated 60 percent of the economy was in the private sector. Industries were more than 60 percent private, agriculture 86 percent private, retail and services 70 percent, and construction and transport almost 44 percent. The private sector accounted for 45 percent of GDP in 1999. The tax system is considered business-unfriendly, particularly with the introduction in 1998 of value-added tax (VAT) of 20 percent on imported goods and services, and of excise taxes in 1992. The business environment, legal framework, regulation, licensing, inspection, investment climate, access to bank credits, and business infrastructure have been deemed unfavorable to western investment.

Moldova has faced 2 major political conflicts since gaining independence in 1991. The most pressing of these conflicts was in the Transnistria region. The Transnistria region is a narrow strip of land laying east of the Nistru River (also known as the Dniester or Dniestr River). More heavily industrialized than the rest of Moldova, and populated primarily by Slavs, the region identifies itself more closely with Ukraine than with Moldova and has sought independence. Russian forces remained east of the Nistru River after 1991, supporting the self-proclaimed Transnistria Republic, which the government in Chişina˘u has not recognized. Russia and Ukraine are acting as mediators between Chişina˘u and Transnistria; the parties have observed a cease-fire since 1992, but progress to a settlement on the status of Transnistria has been slow. The region is still used for tax and customs evasions. The government in 2001 seems more willing to accept a Russian presence in return for greater pressure on Transnistria to discard sovereignty claims. Russia's influence will likely be acknowledged, and chances of political and economic union with Russia and Belarus may grow. Less pressing is the conflict in Gagauzia, a small region in the south of the country that is populated primarily by a Christian Turkic minority known as the Gagauz. Gagauzia has been granted a great deal of autonomy, including the right to control the privatization of assets in the region and the right to determine trade relations.

INFRASTRUCTURE, POWER, AND COMMUNICATIONS

Moldova is landlocked and depends on railroad and road networks for trade. Soviet-built railroads are of decent quality and comprise 1,318 kilometers (824 miles) of tracks; 10,531 kilometers (6,582 miles) of roads account for most local transport and 80 percent of passenger travel. The major rivers—the Nistru (Dniester) and the Prut—are used for local transport. In 1995, the government established Terminal S.A., a joint Moldovan-Greek venture to build and maintain an oil terminal in Giurgiulesti on the Danube with the assistance of the European Bank for Reconstruction and Development (EBRD). The country is served also by pipelines for natural gas from Russia (310 kilometers, or 192 miles, in 1992). Air traffic is served by the state-owned carrier, Air Moldova, and by 2 smaller airlines.

Moldova's electricity production was 5.661 billion kilowatt-hours (kWh) in 1998, 93 percent of which were generated in thermal plants and 7 percent in hydropower facilities. The country imported 1.8 billion kWh in 1998. Domestic sources account for 2 percent of primary energy supply, and gas accounts for 61 percent of the imports, oil for 20 percent, and coal for 10 percent. A large gas power plant in Transnistria produces 85 percent of the electricity. Moldova remains reliant on Russian gas, and Gazprom periodically cuts off supplies due to chronic non-payment, as do Romania, Ukraine, and Transnistria for unpaid electricity. Mounting bills result from non-payment by consumers, electricity theft, and wastage. The sector has been restructured into 2 generators and 5 distributor companies, and in 2000, Moldova completed

the first round of electricity privatization, selling 3 of the distributors to Union Fenosa of Spain.

Moldova has an antiquated telephone system with 15 lines per 100 inhabitants in 1997, very few pay phones, many villages without service, and a mobile phone penetration rate of just 0.3 percent in 1998. Moldtelecom, the national telecom, is currently upgrading and has signed agreements with Denmark's Great Northern Telegraph (GNT), which is investing $10 million in a digital switch system and fiber-optic technology. The government intends to sell 51 percent of Moldtelecom following a failed attempt at privatization in 1998 to a Greek company. In 1998, Voxtel, a consortium comprising 1 French, 1 Romanian, and 2 Moldovan companies, launched mobile service in the GSM standard. In 2000, Moldova awarded a second GSM license to Moldcell, a joint venture between Turkish Turkcell (77 percent) and Chişina˘u-based Accent Electronics (23 percent). In 1999, the Internet usage was 5.8 per 1,000 of the population, there were 16 Internet service providers, and Moldova leased out its "md" domain name to inhabitants of the state of Maryland in the United States.

ECONOMIC SECTORS

The entire economy of Moldova has been in decline since independence in 1991. In 1998, the contributions to GDP of the 3 major sectors were as follows: agriculture, 31 percent; industry, 35 percent (mostly from food processing); and services, 34 percent. Agriculture employed 40.2 percent of the labor force , while industry employed 14.3 percent, and other sectors employed 45.5 percent. Over the 1990s, industrial output declined 2.5 times due to the loss of markets and the drop in domestic farm production. The country has a development strategy focusing on light manufacturing (textiles, consumer electronics) and cement.

AGRICULTURE

Agriculture provides employment for over 40 percent of the population and contributes nearly a third of GDP. Some 75 percent of Moldovan territory is fertile Chernozem (black earth) and agricultural products account for 75 percent of all exports. Twenty-one percent of Moldovan agricultural land was held as individual farms, 61 percent as cooperative farms, and 18 percent by state-owned farms in 1999; in all, 85,000 private farmers were operating throughout the country. Privatization of former cooperative farms has been slow (al-most nonexistent in Transnistria) and the land market has been small, not least because foreigners are not allowed to purchase land. Farm consolidation is taking root as approximately 10,000 larger farms were formed in 1998 and 1999.

Cereals, sunflowers, sugar beets, potatoes, vegetables, tobacco, fruits, and grapes are grown, but plantings of capital-intensive crops—tobacco and vegetables— have declined due to the loss of markets and limited domestic consumption. The number of livestock decreased considerably over the 1990s due to high costs and low demand. The agricultural sector has been affected over the 1990s by droughts, frosts, floods, and shortage of materials, machines, and fertilizers once supplied by the USSR. More intensive farming techniques have lowered productivity by 35 percent. The sector still receives subsidies and tax incentives, but recent command measures (such as the attempt to ban wheat exports) continue to repel potential investors.

INDUSTRY

Food processing (including sugar and vegetable oil) is the largest domestic industry, followed by power generation, engineering (mostly agricultural machinery, foundry equipment, refrigerators, freezers, and washing machines), hosiery, shoes, and textiles. Industrial production decreased by 10 percent in 1999 and the sector, which accounts for less than 15 percent of GDP, has been declining ever since independence, devastated by rising energy prices, the decline in agriculture, and the loss of markets. The conflict with Transnistria has had a significant effect on this sector since all production of electric machines, power transformers, gas containers, slate, 95 percent of the cotton fabrics, 87 percent of the electricity, and a large part of the cement industry are located there.

The food industry accounted for 58.2 percent of the manufacturing output in 1997, far ahead of energy production (18.4 percent), the second largest industry. The importance of the third largest sector, engineering and metal processing, declined from almost 18 percent in 1990 to 5.9 percent in 1997. Similarly, the importance of light industry, which was the second biggest sector after food-processing in 1990, has also declined, from 21.1 percent in 1990 to 5.8 percent in 1997. Efforts to produce exports for more stable and lucrative markets such as those in the European Union (EU) have been difficult due to the lower product quality of Moldovan firms. Wine represents a major product of Moldova's economy, with exports in a good year accounting for up to 50 percent of the total export income. The wine industry has attracted some western investment and loans from the EBRD, but in 1998 Russia still accounted for 85.6 percent of wine export sales. The tobacco processing industry remains one of the country's most important; during Soviet times, the republic produced 40 percent of the USSR's annual crop. Moldova plans to privatize Tutun, the country's largest tobacco concern. Some new industries, such as scrap metal processing, chemicals, and medical equipment, have also emerged since independence. The construction materials industry is expanding through exports of cement, gypsum, and ceramics, and through investment in civil engineering.

SERVICES

The banking system includes the independent National Bank of Moldova (NBM) and 21 commercial banks. Although small, the banking system has functioned well over the 1990s. Banking laws and accounting standards correspond to international standards, and there are no restrictions on foreign banks. There were 21 commercial banks in 2000; 3 others closed down in 1998. The largest banks, accounting for two-thirds of all assets and deposits, are Agroindbank, Petrol Bank, Banca De Economii, Moldindconbank, Banca Sociala, and Victoriabank. Victoriabank, a private commercial bank, has been most active in supporting small industry and retail. A network of savings and credit associations is being developed in villages, and insurance is becoming important, with 40 companies providing services.

Chişina˘u shows signs of developing a retail sector with several private Western-style shops and restaurants. Outside town, options are limited. The Green Hills is the largest of the supermarkets, while the Ninevia and the Fidesco supermarkets carry many imported supplies. High prices on imported goods make them unavailable for the majority of the population. Tourism is underdeveloped with a few Soviet-era hotels in Chişina˘u and no efforts to attract foreign visitors.

INTERNATIONAL TRADE

Exports amounted to $470 million in 1999 and included foodstuffs, wine, and tobacco (which accounted for 66 percent of total exports), textiles and footwear, and machinery. Most exports in 1998 were shipped to Russia (53 percent), while Romania took 10 percent, Ukraine 8 percent, Germany 5 percent, and Belarus 4 percent. Imports in 1998 were worth $560 million and included mineral products and fuel, machinery and equipment, chemicals, and textiles. The majority of imports originate from Russia (22 percent); other major importers were Ukraine (16 percent), Romania (12 percent), Belarus (9 percent), and Germany (5 percent). In 1998, the collapse in the value of the leu brought the trade deficit to $389.1 million from $297.3 million in 1997, due to lower exports and higher import costs.

Prospects for increased trade grew by the turn of the century. In 2000 alone Moldova's foreign trade rose 22 percent to US$1.27 billion dollars. Moreover, Moldova joined the World Trade Organization (WTO) in 2001, an action which held the promise of opening trade beyond the limited confines of former Soviet countries.

MONEY

The National Bank of Moldova (NBM) was established in 1991 and is responsible for monetary policy and banking supervision. The first years following independence were a difficult time for Moldovan finances. Inflation hit 2,700 percent in 1993, but prudent fiscal policies brought the inflation level down to 11.2 percent in 1997. The Russian crisis led to intense pressure on the Moldovan currency, and after the devaluation of the Russian rouble, the NBM abandoned support of the leu

in order to conserve its foreign exchange reserves , and it was devaluated at 100 percent. Inflation rates that peaked at 40 percent during the Russian financial crisis were expected to drop to 10 percent in 2001.

Other elements of the financial sector are less developed but include the National Commodity Exchange, established in 1991; the Moldova Interbank Currency Exchange; the Moldovan Stock Exchange, established in 1995; 15 investment funds; and 8 trust companies. The National Commission on the Securities Market supervises the market participants. The Moldovan Stock Exchange (MSE) was established in June 1995 as an electronic, screen-based, order-driven system. Only 20 companies are listed, but the trade volume increased from US$2.5 million in 1996 to US$52.6 million in 1998. The unregulated over-the-counter market accounted for 48 percent of the transactions in 1999.

POVERTY AND WEALTH

Under the Soviet regime, employment was almost total and provided modest livelihoods for nearly everyone in a relatively egalitarian society (with the exception of the more affluent groups of the communist elite and the underworld). But independence and the reforms of the 1990s generated unemployment, crime, corruption, poverty, and illicit fortunes. The population below the poverty line was estimated in 1999 at a stunning 75 percent (in Romania, it was 30 percent; in Russia and

Ukraine, 25-50 percent). Moldova's Gini index (measuring economic equality, with 0 standing for perfect equality and 100 for perfect inequality) in 1992 was 34.4, far lower than in the United States (40.6), but considerably higher than in Bulgaria (28) and Greece (32).

The social cost of market reforms has been greater than was assumed, and the state has proved incapable of ensuring support for the poor. It failed to stimulate the private sector as a compensation for unemployment or to reorganize the social services. Mass privatization turned unworthy assets over to poor owners and funneled high-quality assets to the well connected. The reach of the underground economy (which was estimated at 35 percent of GDP in 1999), leads to corruption, reduced public revenues, and widening income inequality. Poverty is causing stress, particularly in rural areas, and limiting private economic initiative. To relieve poverty, the Moldovan government has relied on international aid, such as IMF's $142 million poverty reduction facility, and on plans to decentralize social services in order to boost social sector reform.

WORKING CONDITIONS

The labor force numbered 1.7 million in 1998, and the unemployment rate was about 31 percent in 2000. Economic instability, according to United Nations Development Program reports, makes it difficult for the government to uphold adequately the right to social insurance and protection (guaranteed by article 47 of the constitution), the right to work and labor protection (Article 43), the right to health protection (article 36), and the right to a favorable working environment (article 37). The state does not meet its commitments to protect family and orphans (article 49), the interests of mothers, children and youth (article 50), or the interests of persons with disabilities (article 51). The average monthly wage in 1999 reached $25, insufficient to provide a decent standard of living. Many workers were using outdated technology

without adequate safety regulations, and work-place conditions were poor and often dangerous. Under the Soviet regime, unions were government-controlled; independent ones began to emerge in 1991, but their influence is limited partly due to the increasing size of the private sector.

COUNTRY HISTORY AND ECONOMIC DEVELOPMENT

14TH CENTURY. The principality of Moldavia is founded by the Vlachs, inhabitants of the Carpathian Mountains and other parts of the Balkan Peninsula.

15TH CENTURY. The Ottoman Empire absorbs Moldavia and develops a feudal agricultural society.

1812. Russia annexes the eastern portion of Moldavia, historically known as Bessarabia.

1856. European powers grant Moldavia and Bessarabia independence from the Ottoman Empire and Russia, respectively, and they are united with independent Walachia in 1859, assuming the newly-minted name of Romania.

1878. Russia regains Bessarabia.

1918. After the 1917 Russian revolution, Russian Bessarabia decides in favor of unification with Romania. Western powers recognize the incorporation at the Paris Peace Conference of 1920.

1924. The Soviets establish the Moldavian Autonomous Soviet Socialist Republic (ASSR) east of the Nistru (Dniester) River within Ukraine.

1939. A German-Soviet Nonaggression Pact forces Romania to cede Bessarabia to the USSR.

1940. The Soviet government proclaims the Moldavian Soviet Socialist Republic (SSR), including the territory of the former Moldavian ASSR (Transnistria), with a capital in Chişina˘u.

1941. Romania, an ally of Nazi Germany, declares war on the USSR and invades Bessarabia with German assistance during World War II.

1944. The USSR reestablishes the Moldavian SSR toward the end of World War II. Over the next 50 years its economy is integrated into the Soviet system with collective and state farms on expropriated farmland. The country remains rural, although new industries appear in urban areas, and Russians become the majority in the cities.

1985. Soviet leader Mikhail Gorbachev introduces political and economic reforms in the USSR.

1989. The Popular Front of Moldova (PFM), the first opposition group, is formed.

1990. A local referendum approves autonomy for the predominantly Slavic Transnistria region, giving rise to a lasting controversy over the status of the region.

1991. The Moldavian SSR changes its name to the Republic of Moldova and declares its independence from the USSR.

1992. Moldova joins the International Monetary Fund.

1994. First multi-party elections; the first post-Soviet constitution is adopted.

2001. Moldova joins the World Trade Organization.

FUTURE TRENDS

The economic future of Moldova depends on the successful completion of its reforms, the future strength of the Russian and Ukrainian economies, and the successful accession of Romania to the European Union, since these 3 countries receive 70 percent of its exports and supply almost all its energy. Prior to elections in 2000 Moldova appeared to be heading toward greater trade relations with the international community, but the ascension to power of the Communist Party of Moldova (CMP) puts such engagement in doubt. The CMP's control of government may reduce political instability, particularly regarding the Transnistria stand-off, but any slowing of economic reforms could limit GDP growth to 3-3.5 percent a year while possible fiscal and monetary liberalization may cause 20 percent inflation in 2001. The more pro-Romanian and pro-European direction of centrist foreign policy may give way to closer ties and even integration with the Russian-Belarusian union.

The CPM may also run contrary to the IMF agreement with its renewed price controls and state monopoly over the wine and tobacco sectors; it is unlikely, however, that the general direction of reform toward a market economy will be reversed. Moldova has good long-term growth prospects in terms of geographical location, resources, and a skilled workforce, but has a long way to go before an operational market economy could create the sustainable ground for improved living standards for the majority of the people.

DEPENDENCIES

Moldova has no territories or colonies.

BIBLIOGRAPHY

Dawisha, Karen, and Bruce Parrott, eds. Democratic Changes and Authoritarian Reactions in Russia, Ukraine, Belarus and Moldova. Cambridge: Cambridge University Press, 1997.

Economist Intelligence Unit. Country Profile: Moldova. London: Economist Intelligence Unit, 2001.

Fedor, Helen, editor. Belarus and Moldova: Country Studies. Washington, D.C.: Library of Congress, 1996.

Republic of Moldova. <http://www.moldova.md>. Accessed August 2001.

Republic of Moldova Site. <http://www.moldova.org>. Accessed August 2001.

United Nations Development Program. Human Development Report, Republic of Moldova. New York, 2000.

U.S. Central Intelligence Agency. World Factbook 2000. <http:// www.odci.gov/cia/publications/factbook/index.html>. Accessed August 2001.

U.S. Department of State. FY 2001 Country Commercial Guide: Moldova. <http://www.state.gov/www/about_state/business/com_guides/index.html>. Accessed August 2001.

—Valentin Hadjiyski

CAPITAL:

Chişina˘u

MONETARY UNIT:

Moldovan leu (MDL; plural lei). One leu equals 100 bani. There are coins of 1, 5, 10, 25, and 50 bani, and notes of 1, 5, 10, 20, 50, 100, and 200 lei.

CHIEF EXPORTS:

Foodstuffs, wine, and tobacco (66 percent); textiles and footwear, machinery.

CHIEF IMPORTS:

Mineral products and fuel (31 percent); machinery and equipment, chemicals, textiles.

GROSS DOMESTIC PRODUCT:

US$9.7 billion (1999 est.).

BALANCE OF TRADE:

Exports: US$470 million (f.o.b., 1999). Imports: US$560 million (f.o.b., 1999).

MOLDOVA

Compiled from the August 2005 Background Note and supplemented with additional information from the State Department and the editors of this volume. See the introduction to this set for explanatory notes.

Official Name:
Republic of Moldova

PROFILE

Geography

Area:

33,843 sq. km. (13,000 sq. mi.); slightly larger than Maryland.

Cities:

Capital—Chisinau.

Terrain:

Rolling steppe, gradual slope south to Black Sea.

Climate:

Moderate winters, warm summers.

Time Zone:

GMT+2

People

Nationality:

Noun—Moldovan(s). Adjective—Moldovan.

Population (preliminary 2004 census):

3.36 million, excluding the estimated Transnistrian population of 580,000.

Population Growth rate:

−0.3% (est.).

Ethnic groups (1989 est.):

Moldovan/Romanian (65%), Ukrainian (13.8%), Russian (13%), Gagauz (3.5%), Jewish (1.5%), Bulgarian (2%), other (1.7%).

Main religions:

Christian Orthodox (98%), Jewish, Baptist.

Language:

Romanian (officially known as Moldovan), Russian, Ukrainian, Gagauz.

Education:

Literacy—96%.

Health:

Infant mortality rate—44/1,000. Life expectancy—67 years.

Work force (2 million):

Agriculture—35%; industry—20%; other—45%.

Government

Type:

Republic.

Constitution:

Adopted July 28, 1994.

Independence:

August 27, 1991 (from Soviet Union).

Branches:

Executive—President (head of state), Prime Minister (head of Government), Government (cabinet). Legislative—unicameral Parliament. Judicial—Supreme Court.

Administrative subdivisions:

32 counties (raions), 4 municipalities, and one autonomous territorial unit.

Political parties:

Communist Party, Popular Christian Democratic Party, Our Moldova Alliance, Democratic Party, Social Liberal Party, and Social-Democratic Party.

Suffrage:

Universal at 18.

Economy

GDP (2004 est.):

$2.6 billion ($2.0 billion in 2003; $1.6 billion in 2002; $1.5 billion in 2001).

GDP real growth rate (January-September 2004):

5.7% (6.3% in 2003; 7.2% in 2002; 6.1% in 2001).

Per capita GDP (2004 est.):

$760 ($540 in 2003: $448 in 2002; $422 in 2001).

Natural resources:

Lignite, phosphates, gypsum, arable land, and limestone.

Agriculture:

Products—vegetables, fruits, wine and spirits, grain, sugar beets, sunflower seeds, meat, milk, eggs, tobacco, walnuts.

Industry:

Types—processed foods and beverages, including wine and refined sugar; processed fruit and vegetable products, including vegetable oil; dairy and meat products; tobacco items; metal processing and production of machinery; textiles and clothing, shoes; furniture.

Trade (2003):

Exports—$790 million (of which 46% go to countries outside the former Soviet Union): foodstuffs, wine, textiles, clothing, footwear and machinery. Major markets—Russia, Romania, Italy, Ukraine, Germany. Imports—$1,403 million (of which 58% come from countries outside the former Soviet Union): gas, oil, coal, steel, machinery and equipment, chemical products, textiles, foodstuffs, automobiles, and other consumer durables. Major suppliers—Ukraine, Russia, Germany, Italy, Romania.

Currency:

Moldovan Leu (plural Lei).

Exchange rate:

Lei/US$(2004): 12.33; 12.46 (end of year); (13.94 average in 2003); (13.57 average in 2002)

PEOPLE AND HISTORY

Ethnic groups represented in Moldova include Moldovan/Romanian, Ukrainian, Russian, Gagauz, and Bulgarian. Romanian (officially known as Moldovan) is the official language; Russian, Ukrainian, and Gagauz also are spoken. The great majority of Moldova's population is Christian Orthodox—90% of the population nominally belongs to one of the two main Orthodox denominations. The Moldovan Orthodox Church, an autonomous diocese of the Russian Orthodox Church and loyal to the Patriarch of Moscow, has 1,194 parishes; the Bessarabian Orthodox Church, affiliated with the Romanian Orthodox Patriarchate in Bucharest, has 124 parishes. In addition, followers of the Old Rite Russian Orthodox Church (Old Believers) make up approximately 3.6% of the population.

The Republic of Moldova occupies most of what has been known as Bessarabia. Moldova's location has made it a historic passageway between Asia and southern Europe, as well as the victim of frequent warfare. Greeks, Romans, Huns, and Bulgars invaded the area, which in the 13th century became part of the Mongol empire. An independent Moldovan state emerged briefly in the 14th century under celebrated leader Stefan the Great but subsequently fell under Ottoman Turkish rule in the 16th century.

After the Russo-Turkish War of 1806-12, the eastern half of Moldova (Bessarabia) between the Prut and the Dniester Rivers was ceded to Russia, while Romanian Moldavia (west of the Prut) remained with the Turks. Romania, which gained independence in 1878, took control of Rus-sian-ruled Bessarabia in 1918. The Soviet Union never recognized the action and created an autonomous Moldavian republic on the east side of the Dniester River in 1924.

In 1940, Romania was forced to cede Bessarabia to the Union of Soviet Socialist Republics (U.S.S.R.), which established the Moldavian Soviet Socialist Republic by merging the autonomous republic east of the Dniester and the annexed Bessarabian portion. Stalin also stripped the three southern counties along the Black Sea coast from Moldova and incorporated them in the Ukrainian Soviet Socialist Republic. Romania sought to regain Bessarabia by joining with Germany in the 1941 attack on the Soviet Union. However, Moldova was ceded back to Moscow when hostilities between the U.S.S.R. and Romania ceased at the end of World War II. The present boundary between Moldova and Romania was established in 1947.

In September 1990, the Supreme Soviet elected Mircea Snegur as President of the Soviet Socialist Republic of Moldova. A former Communist Party official, he endorsed independence from the Soviet Union and actively sought Western recognition. On May 23, 1991, the Supreme Soviet renamed itself as the Parliament of the Republic of Moldova, which subsequently declared its independence from the U.S.S.R.

In August 1991, Moldova's transition to democracy initially had been impeded by an ineffective Parliament, the lack of a new constitution, a separatist movement led by the Gagauz (Christian Turkic) minority in the south, and unrest in the Transnistria region on the left bank of the Nistru/Dniester River, where a separatist movement declared a "Transdniester Moldovan Republic" in September 1990. The Russian 14th Army intervened to stem widespread violence and support the Transnistrian regime which is led by supporters of the 1991 coup attempt in Moscow. In 1992, the government negotiated a cease-fire arrangement with Russian and Transnistrian officials, although tensions continue, and negotiations are ongoing. In February 1994, new legislative elections were held, and the ineffective Parliament that had been elected in 1990 to a 5-year term was replaced. A new constitution was adopted in July 1994. The conflict with the Gagauz minority was defused by the granting of local autonomy in 1994.

GOVERNMENT AND POLITICAL CONDITIONS

In 2000, Parliament passed a decree making Moldova a parliamentary republic, with the president elected by Parliament instead of by popular vote. Widespread popular dissatisfaction with previous governments and economic hardship led to a surprise at the polls in February 2001. In elections certified by international observers as free and fair, slightly over half of Moldova's voters cast their ballots for the Communist Party. Under the rules of Moldova's proportional representation system, the Communist faction, which in the previous Parliament consisted of 40 of Parliament's 101 seats, jumped to 71—a clear majority. The Parliament then elected the leader of the Communist faction, Vladimir Voronin, to be President.

President Voronin's first term was marked by up and down relations with the International Monetary Fund (IMF) and the World Bank. Politically, the government was committed to the reduction of poverty by allocating more resources to social safety net items such as health, education, and increasing pensions and salaries. Voronin proceeded with former President Lucinschi's plans to privatize several important state-owned industries and even on occasion broke with his own party over important issues. Under President Voronin, relations with the United States have remained strong. From January to April 2002, large demonstrations took place in opposition to several controversial government proposals, including expanded use of the Russian language in schools and its designation as an official language. While the demonstrations were sometimes tense, the government did not use force and ultimately agreed to Council of Europe (CoE) mediation.

In March 2005 parliamentary elections, the Communist Party received 46.1% of the vote, or 56 seats in the 101-member Parliament—more than enough for the 51-vote minimum required to form a government, but short of the 61 votes necessary to elect a president. However, President Voronin was re-elected with support from the Christian Democratic Popular Party and from the Democratic and Social Liberal party factions, after Voronin promised to deliver on needed reforms and Euro-Atlantic integration for the country. Those factions broke away from the Moldovan Democratic Bloc following the elections, leaving the Our Moldova Alliance (AMN) of former Chisinau Mayor Serafim Urechean as the second-largest party in Parliament with 26 seats.

Local elections in May and June 2003—the first nationwide contests since the Communists came to power—did not meet the relatively high electoral standards set in previous Moldovan elections, according to international observers. While the voting itself generally met international standards, the government's behavior in the campaign period—including bias in state media, misuse of administrative resources, and the arrests of two opposition mayors—represented a step backward. The Communists won the largest share of votes, but lost in the country's highest-profile race, for mayor of Chisinau. Former Mayor and AMN leader Serafim Urechean decided to give up his mayoral seat to retain his mandate as an elected parliamentarian in the March 2005 elections, as Moldovan legislation prohibits holding both positions simultaneously. Early mayoral elections for Chisinau were held in July 2005 but were invalid due to low turnout.

In addition to state-sponsored media, there are several independent newspapers, radio and television stations, and news services. The independent media organizations, along with some that are affiliated with political parties, often criticize government policies. In August 2004, Teleradio Moldova (TRM) was officially transformed from a state-owned company into a public broadcaster. However, journalists and civil society representatives, who claimed the process was nontransparent and meant to stack the new TRM staff with those favorable to the government, met this move with large protests. Peaceful assembly is allowed, though permits for demonstrations must be obtained; private organizations, including political parties, are required to register with the government. Legislation passed in 1992 codified freedom of religion but required that religious groups register with the government.

Transnistria

The population of the Moldovan region of Transnistria is approximately 40% Romanian/Moldovan, 28% Ukrainian, and 23% Russian. Separatist forces maintain control of the Transnistrian region, which lies along the Ukrainian border. Moldova has tried to meet the Russian minority's demands by offering the region rather broad cultural and political autonomy. The dispute has strained Moldova's relations with Russia. The July 1992 cease-fire agreement established a tripartite peacekeeping force comprised of Moldovan, Russian, and Transnistrian units.

Negotiations to resolve the conflict continue, and the cease-fire is still in effect. The Organization for Security and Cooperation in Europe (OSCE) is trying to facilitate a negotiated settlement and has had an observer mission in place for several years. In July 2002, OSCE, Russian, and Ukrainian mediators approved a document setting forth a blueprint for reuniting Moldova under a federal system. Over the next year and a half, the settlement talks alternated between periods of forward momentum and periods of no progress. In February 2003, the U.S. and EU imposed visa restrictions against the Transnistrian leadership. In April 2003, the Moldovan Government and the Transnistrian authorities agreed to establish a joint commission to draft a constitution for a reintegrated state. However, fundamental disagreements over the division of powers remained, and a settlement proved elusive.

In May 2003, Ukraine and Moldova reached an agreement under which Ukraine would no longer recognize Moldova's obsolete customs stamps, which were still being used by the Transnistrians; in reality, however, the Moldovans exercise little control over their border with Ukraine and illegal trade remains an issue in the region. Moldova has continued to call for international monitoring of the border.

In a surprise move, President Voronin decided not to sign a Russian-brokered settlement with Transnistria in November 2003. The appearance of the Russian proposal—seen by many as pro-Transnistrian—was enough to set off a brief wave of opposition protests. The potential for continued protest over these contentious issues remains. During the summer of 2004, the Transnistrian separatists forcibly closed Romanian language Latin-script schools. These actions were internationally condemned, and the OSCE Mission to Moldova mediated a solution to the crisis; however, negotiations on the larger conflict have since come to a standstill.

Russia has failed to remove weapons and munitions of the Operational Group of Russian Forces (formerly the Russian 14th Army) stationed in Transnistria, as required under the timetable set forth in the 1999 Istanbul Accords, and this process remained stalled throughout 2004.

Principal Government Officials

Last Updated: 11/9/2005

President: Vladimir VORONIN
Speaker of the Parliament: Marian LUPU
Prime Minister: Vasile TARLEV
First Dep. Prime Min.: Zinaida GRECIANI
Dep. Prime Min.: Valerian CRISTEA
Dep. Prime Min.: Andrei STRATAN
Min. of Agriculture & Food Industry: Anatolie GORODENCO
Min. of Culture & Tourism: Artur COZMA
Min. of Defense: Valeriu PLESCA
Min. of Economy & Commerce: Valeriu LAZAR
Min. of Education, Youth, & Sport: Victor TVIRCUN
Min. of Environment & Natural Resources: Constantin MIHAILESCU
Min. of Finance: Mihai POP
Min. of Foreign Affairs: Andrei STRATAN
Min. of Health & Social Protection: Ion ABABII
Min. of Industry & Infrastructure: Vladimir ANTOSII
Min. of Information Development: Vladimir MOLOJEN
Min. of Internal Affairs: Gheorghe PAPUC
Min. of Justice: Victoria IFTODI
Min. of Reintegration: Vasile SOVA
Min. of Transport & Roads Management: Miron GAGAUZ
Sec., Supreme Security Council: Ion MOREI
Prosecutor General: Valeriy BALABAN
Dir., Intelligence & Security Service (ISS): Ion URSU
Pres., National Bank: Leonid TALMACI
Ambassador to the US: Mihai MANOLI
Permanent Representative to the UN, New York: Vsevolod GRIGORE

Moldova's embassy in the United States is at 2101 S Street NW, Washington, DC 20008 (tel: 202-667-1130; fax 202-667-1204).

More information about Moldova can be found at the official (Romanian and Russian language) Government of Moldova website at www.moldova.md. The Moldova.org site is maintained by the Moldova Foundation, a non-governmental organization, and has some useful links.

ECONOMY

Moldova remains the poorest country in Europe. It is landlocked, bounded by Ukraine on the east and Romania to the west. It is the second smallest of the former Soviet republics and the most densely populated. Industry accounts for only 20% of its labor force, while agriculture's share is more than one-third.

Moldova's proximity to the Black Sea gives it a mild and sunny climate. This makes the area ideal for agriculture and food processing, which accounts for about 40% of the country's GDP. The fertile soil supports wheat, corn, barley, tobacco, sugar beets, and soybeans. Beef and dairy cattle are raised, and beekeeping is widespread. Moldova's best-known product comes from its extensive and well-developed vineyards concentrated in the central and southern regions. In addition to world-class wine, Moldova produces liqueurs and champagne. It is also known for its sunflower seeds, walnuts, apples, and other fruits.

Like many other former Soviet republics, Moldova has experienced economic difficulties. Since its economy was highly dependent on the rest of the former Soviet Union for energy and raw materials, the breakdown in trade following the breakup of the Soviet Union had a serious effect, exacerbated at times by drought and civil conflict. The Russian ruble devaluation of 1998 had a deleterious effect on Moldova's economy, but economic growth has been steady since 2000.

Moldova has made progress in economic reform since independence. The government has liberalized most prices and has phased out subsidies on most basic consumer goods. A program begun in March 1993 has privatized 80% of all housing units and nearly 2,000 small, medium, and large enterprises. Other successes include the privatization of nearly all of Moldova's agricultural land from state to private ownership, as a result of an American assistance program, "Pamint" ("land"), completed in 2000. A stock market opened in June 1995.

Inflation was brought down from over 105% in 1994 to 11% in 1997. Though inflation spiked again after Russia's 1998 currency devaluation, Moldova made great strides in bringing it under control: 18.4% in 2000, 6.3% in 2001, and 4.4% in 2002. In 2003 inflation escalated again—due mainly to a drought-driven rise in agricultural prices—reaching 15.7%, although it was reined in to 12.5% in 2004. The local currency appreciated considerably in 2003 and the first months of 2004. By May, the leu had reached its highest level since the end of 1999. After the National Bank of Moldova increased considerably its purchases on the foreign exchange market, the leu stabilized in November-December 2004 at 12.00-12.50 to the U.S. dollar.

Moldova continues to make progress toward developing a viable free-market economy. The country recorded its fifth consecutive year of positive GDP growth in 2004, with year-end real GDP growth of 8%. This growth is impressive considering that, prior to 2000, Moldova had recorded only one year of positive GDP growth since independence. Budget execution in 2004 was also impressive, as actual consolidated budget revenues exceeded projections by 1.4% for most of the year.

Privatization results in 2004 were not significant: several smaller companies and one winery were privatized in 2004, but the government postponed indefinitely the privatization of several larger state enterprises, including two electricity distribution companies. Sporadic and ineffective enforcement of the law, economic and political uncertainty, and government harassment and interference continue to discourage inflows of foreign direct investment.

Imports continued to increase more rapidly than exports during the first nine months of 2004;Moldova's terms of trade worsened, as higher-priced energy imports outpaced the value of Moldova's main exports—agricultural and agro-processing goods.

During 2002, Moldova rescheduled an outstanding Eurobond, in the amount of $39.6 million, to avoid a potential default. In May 2004, Moldova redeemed promissory notes with a total value of $114.5 million to Russian Gazprom for just $50 million. Moldova informed its bilateral creditors in mid-2003 that it would no longer service its debts. The 2004 budget did provide funds for external debt service (interest) at some 6% of the government budget; the 2005 budget projects external debt service at some 4%. The International Monetary Fund (IMF) and World Bank resumed lending to Moldova in July 2002, and then suspended lending again in July 2003. Although Moldova passed a Poverty Reduction Strategy in 2004, it has yet to reach an agreement with international financial institutions.

DEFENSE AND MILITARY ISSUES

Moldova has accepted all relevant arms control obligations of the former Soviet Union. On October 30, 1992, Moldova ratified the Conventional Armed Forces in Europe Treaty, which establishes comprehensive limits on key categories of conventional military equipment and provides for the destruction of weapons in excess of those limits. It acceded to the provisions of the nuclear Non-Proliferation Treaty in October 1994 and to the Biological Weapons Convention in December 2004. It does not have nuclear, biological, or chemical weapons. Moldova joined the North Atlantic Treaty Organization's Partnership for Peace on March 16, 1994. Due to Moldova's constitutional neutrality, it is not a participant in the Commonwealth of Independent States (CIS—a group of 12 former Soviet republics) Collective Security Agreement.

FOREIGN RELATIONS

Moldova's Parliament approved the country's membership in the Commonwealth of Independent States and a CIS charter on economic union in April 1994.

In 1995, the country became the first former Soviet republic admitted to the Council of Europe. In addition to its membership in NATO's Partnership for Peace, Moldova also belongs to the United Nations, the OSCE, the North Atlantic Cooperation Council, the International Monetary Fund, the World Bank, and the European Bank for Reconstruction and Development. Moldova is a member of the World Trade Organization (WTO).

In 1998, Moldova contributed to the founding of GUAM, a regional cooperative agreement made up of Georgia, Ukraine, and Azerbaijan, in addition to Moldova. Although the agreement initially included a declaration of mutual defense, Moldova has since declared its disinterest in participating in any GUAM-based mutual defense initiative. Moldova has been involved in information exchange, trade and transportation, border control, and energy projects issues within this regional agreement.

In the atmosphere of heightened international sensitivity to terrorism following the events of September 11, 2001, Moldova has been a supporter of American efforts to increase international cooperation in combating terrorism. Moldova has sent demining units and peacekeepers to participate in post-conflict humanitarian assistance in Iraq.

U.S.-MOLDOVAN RELATIONS

The dissolution of the Soviet Union in December 1991 brought an end to the Cold War and created the opportunity to build bilateral relations with the 15 new states that had made up the former U.S.S.R., as they began political and economic transformation. The United States recognized the independence of Moldova on December 25, 1991 and opened an Embassy in its capital, Chisinau, in March 1992. The current U.S. Ambassador to Moldova, Heather M. Hodges, arrived at post in October 2003.

A trade agreement providing reciprocal most-favored-nation tariff treatment became effective in July 1992. An Overseas Private Investment Corporation agreement, which encourages U.S. private investment by providing direct loans and loan guarantees, was signed in June 1992. A bilateral investment treaty was signed in April 1993. Generalized system of preferences status was granted in August 1995, and some Eximbank coverage became available in November 1995.

Principal U.S. Embassy Officials

CHISINAU (E) Address: 103 Str. A. Mateevici; Phone: 373-22-40-8300; Fax: 373-22-23-3044; INMARSAT Tel: 6-831-32845; Workweek: M-F 9:00 a.m.-6:00 p.m.; Website: www.usembassy.md.

TRAVEL

Consular Information Sheet

November 14, 2005

Country Description:

Moldova is a republic with a freely elected government. It has been an independent nation since 1991. Its capital, Chisinau, offers adequate hotels and restaurants, but tourist facilities in other parts of the country are not highly developed, and many of the goods and services taken for granted in other countries are not yet available.

Entry/Exit Requirements:

American citizens can obtain a visa from a Moldovan diplomatic mission abroad before traveling to Moldova. Alternatively, American citizens holding passports still valid for 6 months can obtain visas at the Chisinau International Airport or at specific border crossings, but only for stays of up to 90 days. American citizens are no longer required to have an invitation from a Moldovan citizen or entity in order to obtain a visa. For more information on entry requirements, please contact the Moldovan Embassy, 2101 S. Street N.W., Washington, D.C. 20008, telephone: (202) 667-1130, (202) 667-1131, or (202) 667-1137, fax: (202) 667-1204, e-mail: [email protected]. Travelers may also wish to consult the Moldovan Ministry of Foreign Affairs' website for general information on Moldovan visas and for application forms: http://www.mfa.md/En/ConsularInf/Visas-Info.htm.

Safety and Security:

The U.S. Government has no information related to the targeting of U.S. citizens, interests or facilities by terrorist organizations in Moldova, and no Americans have been killed or injured as a result of terrorist activity in Moldova. However, the U.S. government remains deeply concerned about the heightened threat of terrorist attacks against U.S. citizens and interests abroad. Americans are reminded to remain vigilant with regard to their personal security and to exercise caution.

A separatist regime controls a narrow strip of land in the Transnistria region of eastern Moldova. The United States and other countries do not recognize this regime. Since no formal diplomatic relations exist between the United States and local authorities there, the provision of consular assistance to American citizens cannot be ensured. Travelers should exercise caution in visiting or transiting the area. Travelers should be aware that there are numerous road checkpoints along the roads into and out of the Transnistria region.

For the latest security information, Americans traveling abroad should regularly monitor the Department's Internet web site at http://travel.state.gov where the current Worldwide Caution Public Announcement, Travel Warnings and Public Announcements can be found. Up-to-date information on safety and security can also be obtained by calling 1-888-407-4747 toll free in the U.S., or for callers outside the U.S. and Canada, a regular toll-line at 1-202-501-4444. These numbers are available from 8:00 a.m. to 8:00 p.m. Eastern Time, Monday through Friday (except U.S. federal holidays).

Crime:

Moldova's economic difficulties, as well as increased organized criminal activity and more frequent travel by foreigners to Moldova, contribute to the risk visitors face from street crime, some potentially violent. While this risk is no greater than in most cities in the United States, many Americans have reported theft of money and small valuables from hotel rooms and local apartments. Cases of breaking and entering into homes and offices have occurred. Travelers are wise to exercise the same precautions with regard to personal safety and protection of valuables in Chisinau that they would in any major U.S. city.

Precautions should also be taken when using ATM machines in Moldova. Some Americans have reported unauthorized withdrawals from their accounts after using ATMs. Instances have been reported of PIN theft from use of ATMs in Moldova either by, "skimming" devices, which record the ATM card information while in use, or by surreptitious observation.

Train and bus services are below Western European standards and some U.S. citizens have been victims of crimes involving thefts while traveling on international trains to and from Moldova.

Americans who use the Moldovan postal service report frequent losses from international letter and package mail.

Internet Fraud Warning:

The Embassy is also aware of various confidence schemes that have taken advantage of American citizens, frequently via the Internet. In some cases these involve the purchase or sale of items on the Internet in which the payment or shipment of goods was not completed by a Moldovan counterpart. Losses have included merchandise valued above $1,000. In other cases, American citizens, particularly males, have met potential Moldovan fiancé(e)s on the Internet who have convinced them to send hundreds or even thousands of dollars, but have no intention of a serious relationship. Once the American citizen starts to question the reason for sending the money, the Moldovan fiancé(e)s suddenly ends his/her contact. On occasion, American citizens who come to Moldova to visit someone they have first met over the Internet have reported becoming subject to crimes such as extortion and involuntary detention. American citizens should be aware that any such activity committed by individuals in Moldova is subject to the Moldovan legal system and could prove difficult to prosecute. In the vast majority of cases, there is nothing that the U.S. Embassy in Moldova can do to assist American citizens who are defrauded by Moldovans via the Internet.

Information for Victims of Crime:

The loss or theft abroad of a U.S. passport should be reported immediately to the local police and the nearest U.S. Embassy or Consulate. If you are the victim of a crime while over-seas, in addition to reporting to local police, please contact the nearest U.S. Embassy or Consulate for assistance. The Embassy/Consulate staff can, for example, assist you to find appropriate medical care, contact family members or friends and explain how funds could be transferred. Although the investigation and prosecution of the crime is solely the responsibility of local authorities, consular officers can help you to understand the local criminal justice process and to find an attorney if needed.

Medical Facilities and Health Information:

Medical care in Moldova is limited and there are often severe shortages of basic medical supplies. Elderly travelers and those with existing health problems may be at risk due to inadequate medical facilities. The U.S. Embassy maintains lists of medical facilities and English-speaking doctors, but cannot guarantee or endorse competence.

Visitors to Moldova are advised to bring their own supply of both prescription and common over-thecounter medications. Pharmacies are not stocked to Western standards and products are not labeled in English. Poor quality and/or fraudulent medications have been reported.

Information on vaccinations and other health precautions, such as safe food and water precautions and insect bite protection, may be obtained from the Centers for Disease Control and Prevention's hotline for international travelers at 1-877-FYI-TRIP (1-877-394-8747); or via the CDC's Internet site at http://www.cdc.gov/travel. For information about outbreaks of infectious diseases abroad consult the World Health Organization's (WHO) web-site at http://www.who.int/en. Further health information for travelers is available at http://www.who.int/ith.

Medical Insurance:

The Department of State strongly urges Americans to consult with their medical insurance company prior to traveling abroad to confirm whether their policy applies overseas and if it will cover emergency expenses such as a medical evacuation.

Traffic Safety and Road Conditions:

While in a foreign country, U.S. citizens may encounter road conditions that differ significantly from those in the United States. The information below concerning Moldova is provided for general reference only, and may not be totally accurate in a particular location or circumstance.

Moldova's highway infrastructure consists mainly of two-lane roads that often lack markings or signage, are unevenly maintained and seldom have lighting. Caution should be taken to prevent collisions with agricultural vehicles and/or livestock. Urban roads in Moldova are infrequently maintained and often lack clear signs or lane markings. Travel outside of urban areas before dawn and after dusk should be avoided if at all possible. Drivers and pedestrians should exercise extreme caution to avoid accidents, which are commonplace. Many Moldovan drivers would be considered aggressive or erratic by American standards. Many accidents involve drunk drivers. The quality and safety of public transportation varies widely. Trains, trolleybuses, and buses are often old and may frequently break down. Taxis are available in most urban areas, but may vary from old Soviet-era vehicles to newer, Western European or American model vehicles.

Visit the website of the country's national tourist office at http://www.turism.md/.

Aviation Safety Oversight:

As there is no direct commercial air service between the United States and Moldova, the U.S. Federal Aviation Administration (FAA) has not assessed Moldova's Civil Aviation Authority for compliance with ICAO international aviation safety standards. For more information, travelers may visit the FAA's Internet web site at http://www.faa.gov/safety/programs_initiatives/oversight/iasa.

Special Circumstances:

Travelers are advised to register any foreign currency brought into Moldova with customs authorities upon entering the country. It is advisable to contact the Embassy of Moldova in Washington for specific information regarding customs requirements.

Registration:

All foreign citizens staying in Moldova for three days or longer are required to register with local authorities at the Office of Visas and Registration within the first three working days of their stay in Moldova. A registration card is issued to the foreigner and should be kept with his/her passport. The place of registration (usually, a district police station) depends on where a visitor is staying in Moldova. Most hotels will register guests automatically. The Embassy encourages U.S. citizens to ask about registration when checking into a hotel. U.S. citizens not staying in a hotel are responsible for registering with authorities. To find out exactly where to register, a U.S. citizen may call the central Office for Visas and Registration at (373) (22) 21-30-78, and should be prepared to give the address of his/her residence in Moldova. Under Moldovan law, those who fail to register with authorities may be required to appear in court and pay a fine, possibly delaying their departure from Moldova. For more information on registering with Moldovan authorities, U.S. citizens are encouraged to call the Consular section of the U.S. Embassy in Chisinau at (373) (22) 40-83-00.

Requirement to Carry Documentation:

Moldovan police legally have the right to request identity documents from any person. Individuals who fail to produce appropriate ID upon request may be subject to detention and fines. Therefore, Americans are advised to carry their U.S. passports (or a copy of their passport bio page) with registration card, if applicable, or a Moldovan-issued identification document when in public.

Consular Access:

Moldovan law enforcement authorities have an uneven record of reporting the arrest or detention of American citizens to the U.S. Embassy, as required under international agreements. American citizens are therefore advised that if they are detained or arrested by Moldovan authorities, they should immediately request that the U.S. Embassy be contacted. Moldovan authorities have generally respected such requests in a prompt manner.

Americans sometimes report encounters with police or other Moldovan officials in which they are pressured to pay a bribe. Such low-level bribery attempts are commonplace in Moldova. These encounters should always be reported to the U.S. Embassy. Americans who have refused to pay bribes in Moldova generally report no consequences beyond being delayed or inconvenienced.

Photography:

Americans who choose to travel in Transnistria should be aware that foreigners have reported brief detention or harassment by authorities for taking photographs of military facilities or public buildings. Photography of checkpoints into and out of the Transnistria region or the personnel working there is prohibited. Unauthorized photography has resulted in unnecessary delays and detentions.

Dual Nationality:

Moldovan legislation allowing dual citizenship went into effect on October 18, 2003. There is no requirement that dual nationals must enter Moldova on their Moldovan passports. For further questions, please contact the Moldovan Embassy in Washington, D.C.

Telephone and Postal Services:

Outside of Chisinau, travelers may have difficulty finding public telephones and receiving or making international and local calls. Losses have been reported from international letter and package mail, both of which are subject to a customs inspection before delivery. "Express" mail services such as DHL and Federal Express are available in Chisinau, although in most instances prices are high, and shipments arrive from (or reach) the U.S. in no less than five (5) business days.

Disabled Access:

Persons with disabilities should be aware that public facilities and transportation in Moldova are rarely designed or built in a way that allows for wheelchair access. Wheelchair entrances, ramps, lifts or similar accommodations are rare; those that do exist are often below Western standards and/or poorly maintained. Most streets, sidewalks and other public paths are not well maintained and can be hazardous, particularly in poor weather conditions.

Commercial Transactions:

Although still generally a cash-only economy, traveler's checks and credit cards are becoming increasingly accepted in Chisinau, although locations that will accept them outside the capital are still rare. However, caution is advised as some travelers have reported incidents of unauthorized expenditures made on credit cards during or following their use in Moldova, and there have also been reported incidents of fraud and account theft using bank machines (ATMs).

Business in Transnistria:

Individuals considering doing business in Transnistria should be aware that the government of Moldova does not recognize the separatist regime, which presently controls this area, and many Transnistrian firms are not legally registered with Moldovan authorities and operate in contravention of Moldovan law. This can often complicate or prevent the import or export of goods into or from Transnistria. The government of Moldova has indicated that it does not recognize the validity of contracts made for the privatization of firms located in the Transnistria region concluded without the approval of the appropriate Moldovan authorities.

Criminal Penalties:

While in a foreign country, a U.S. citizen is subject to that country's laws and regulations, which sometimes differ significantly from those in the United States and may not afford the protections available to the individual under U.S. law. Penalties for breaking the law can be more severe than in the United States for similar offenses. Persons violating Moldovan laws, even unknowingly, may be expelled, arrested or imprisoned. Penalties for possession, use, or trafficking in illegal drugs in Moldova are severe, and convicted offenders can expect long jail sentences and heavy fines. Engaging in illicit sexual conduct with children or using or disseminating child pornography in a foreign country is a crime, prosecutable in the United States.

Children's Issues:

For information on international adoption of children and international parental child abduction, see the Office of Children's Issues website at http://travel.state.gov/family/family_1732.html.

Registration/Embassy Location:

Americans living or traveling in Moldova are encouraged to register with the U.S. Embassy through the State Department's travel registration website, https://travelregistration.state.gov, and to obtain updated information on travel and security within Moldova. Americans without Internet access may register directly with the U.S. Embassy. By registering, American citizens make it easier for the Embassy to contact them in case of emergency. The U.S. Embassy is located in Chisinau, Moldova, Strada Alexei Mateevici 103; telephone: (373)(22) 23-37-72, afterhours telephone: (373)(22) 23-73-45; Consular Section Fax: (373)(22) 22-63-61. The Embassy's website is http://www.usembassy.md.

International Adoption

January 2006

The information below has been edited from a report of the State Department Bureau of Consular Affairs, Office of Overseas Citizens Services. For more information, please read the International Adoption section of this book and review current reports online at www.travel.state.gov/family.

Disclaimer:

The information in this flyer relating to the legal requirements of specific foreign countries is based on public sources and our current understanding. Questions involving foreign and U.S. immigration laws and legal interpretation should be addressed respectively to qualified foreign or U.S. legal counsel.

All Immigrant Visa processing for Moldovan citizens, including adopted orphans, is done at the U.S. Embassy in Bucharest, Romania. The U.S. Embassy in Chisinau, Moldova conducts the I-604 orphan investigation and a mandatory review of documents to verify an adopted orphan can qualify for a U.S. immigrant visa. Please see below under "U.S. Immigration Requirements" for further details.

Adoptability of Moldovan Orphans:

Recent U.S. immigrant visa statistics reflect the following pattern for visa issuance to orphans (IR-3 and IR-4 visas combined)*:
FY 2003: 12
FY-2002: 7
FY-2001: 46
FY-2000: 79
FY-1999: 63

*Immediate Relative (IR)-3 visas are issued to orphans adopted in Moldova. IR-4 visas are issued to orphans adopted or re-adopted in the United States.

International adoptions are permitted in exceptional cases, when no relatives or other Moldovan families are able to adopt orphans or become their guardians. Children who have health or developmental problems that Moldovan families cannot afford to treat are also considered exceptional cases.

Information about children eligible for adoption is published in the Monitorul Official, the Moldovan government's official register. After publication, an adoptable child is available for domestic adoption by Moldovans for six months. After six months, an adoptable child is available for international adoption.

Prospective adoptive parents may indicate the sex and age range they prefer.

Moldovan Adoption Authority:

Ms. Raisa Lozinschi, the Executive Secretary; Secretariatul Comitetului pentru Infiere a Moldovei (The Mold-ovan Adoption Committee) #1, Piata Marii Adunari Nationale room # 424; Chisinau, Moldova; Tel: (373 22) 232-255.

Age and Civil Status Requirements: Minimum

age requirement for adopting parents is 25, and maximum is 50, unless one parent of a married couple is under the age of 50. Married couples and single people may adopt; unmarried couples may not adopt from Moldova.

Residential Requirements:

There are no residency requirements for foreign adoptive parents.

Time Frame:

An adoption can take 6-9 months to complete, from the time a child is matched with prospective adoptive parents to the completion of the adoption.

Adoption Agencies and Attorneys:

Prospective adoptive parents from Moldova are required to use an accredited adoption agency when adopting in Moldova. There are seven U.S. based adoption agencies accredited by the Moldovan Adoption Committee.

For U.S.-based agencies, it is suggested that prospective adoptive parents contact the Better Business Bureau and licensing office of the Department of Health and Family Services in the state where the agency is located. The U.S. Embassy in Moldova has a list of agencies known to work in Moldova. Neither the U.S. Embassy nor the Department of State can vouch for the efficacy or professionalism of any agent or facilitator.

Adoption Procedures:

The process begins when a registered international adoption agency, through its Moldovan representative, forwards a file about prospective international adoptive parents to the government's Adoption Committee.

The Committee forwards the file to the Education Directorate in the judets (county) where a prospective adoptable child resides. The local Inspector for the Protection of Children's Rights in the judets, together with the physician and director of the orphanage, examines the file and matches a family with an eligible child.

The prospective international adoptive parents are then provided with complete, official information about the child, including health and family background. The representative sends the prospective parents this information including photographs or a video of the child. The Moldovan representative will also send answers from the Moldovan authorities on all additional questions the parents have about the child. The prospective parents have the option to refuse a prospective adoptive child. In this case they must inform the Moldovan authorities in writing of their decision.

If the prospective parents agree to accept the child, they send a letter to the Committee through their agency's representative, acknowledging that they are aware of any specific health or other problems, and nevertheless accept the child. The orphanage receives a copy of the letter.

The judets' Directorate of Education approves the prospective adoption providing full information on the adoptive parents and the adopted child. The Directorate of Education writes the Notice of Approval of Adoption, and then forwards the file to the Adoption Committee. The Committee then decides whether to approve the adoption. Although prospective adoptive parents do not need to travel to Moldova to meet their adoptive child at the time of the acceptance of the match, they must to appear in court in Moldova to finalize the adoption.

The approved adoption file then proceeds to the court system through the judets' Inspector for the Protection of Children's Rights. After the court decision on the adoption comes into effect the child must obtain a travel passport, birth certificate and adoption certificate.

Documentary Requirements:

The following documents are required for an international adoption from Moldova.

• An adoption application which contains: name; year, month and day of birth; residence of the adoptive parent(s); name; year, month and day of birth; residence of the child to be adopted, file data about parents and siblings of the child; reasons and confirmation of reasons for adoption; written request to change name, place of birth, date of birth (in the case of adoption of a child who is 1 year of age or over), and register adoptive parents on the child's birth certificate as the birth parents.

The following documents shall be attached to the application:

• A copy of the adoptive parent's birth certificate, if the adoption is solicited by an unmarried person;
• A copy of the marriage certificate of the adoptive parents if the adoption is solicited by a married couple;
• The written consent of the spouse or a document confirming the divorce and that former spouses do not live together for at least one year, if the adoption is solicited by one of the spouses. If it is impossible to attach such a document, the application shall include proof to confirm this;
• Health certificate of the adopters. The following conditions disqualify prospective adoptive parents from adopting in Moldova: HIV/AIDS, psychological and behavioral conditions, drug addiction, chronic alcoholism, chronic somatic diseases (disability of the 1st and 2nd degree), cancerous forms of oncological diseases, viral hepatitis B,C,D. The following conditions may temporarily disqualify a person from adopting: sexually transmitted diseases, tuberculosis and severe virulent diseases;
• A certificate from the adopter's work place, which shall include the title of position and the wage or a copy of the income statement or of a similar document;
• A legalized copy of the document confirming the adopter's usage or ownership right over a dwelling;
• The court presiding over the adoption may ask for additional documents accepted by law, including criminal records, if applicable; and
• Approval by the adopting parents' government and permission for the adopted child to reside in their new country of residence.

All documents must be properly legalized. Two copies of documents attached to the adoption application shall be submitted.

Authentication Process:

All U.S. documents submitted to the Moldovan government, such as birth, death, and marriage certificates, must be authenticated. Contact the nearest Moldovan Embassy or Consulate for specific information about Moldovan authentication of U.S. documents. For additional information about authentication procedures, see the "Judicial Assistance" page of the Bureau of Consular Affairs Web site at http://travel.state.gov.

Moldovan Embassy in the United States:

2101 S. Street N.W.
Washington, D.C. 20008
Tel: (202) 667-1130, (202) 667-1131, or (202) 667-1137,
Fax: (202) 667-1204
E-mail: [email protected].

U.S. Immigration Requirements:

A child adopted by a U.S. citizen must obtain an immigrant visa before he or she can enter the U.S. Please see the International Adoption section of this book for more details and review current reports online at travel.state.gov/family.

Planning Your Trip Home:

Adoption of a child from Moldova requires an extra step, since you must have an I-604 interview at embassy Chisinau and an immigrant visa interview at embassy Bucharest. Once the I-604 investigation is complete, the adoptive child and parents must travel to Bucharest, Romania, to apply for an immigrant visa for the United States. In general, applying for the immigrant visa involves submission of DS-230 application forms, evidence that the I-600 and/or I-600A have been approved and a review of information obtained during the I-604 investigation about the orphan's status. Consular officers will also ensure that the child has a valid passport for travel to the United States, a satisfactory medical exam from a panel physician, and evidence of financial support (apart from that provided with the I-600A or I-600). Please visit the Web site for the U.S. Embassy in Bucharest for more information on immigrant visa application procedures at www.usembassy.ro.

U.S. Embassy in Moldova:

strada A. Mateevici 103
Chisinau, Moldova MD-2009
Tel.: (373 22) 23-37-72 or 40-83-00.
Fax: (373 22) 22-63-61
Email: [email protected]

U.S. Embassy in Bucharest, Romania:

Filipescu 26
Bucharest, Romania
Tel: +40 21 210 4042
Fax: +40 21 211 3360
Email: [email protected]
Internet: www.usembassy.ro

Additional Information:

Prospective adoptive parents are strongly encouraged to consult BCIS publication M-249, The Immigration of Adopted and Prospective Adoptive Children, as well as the Department of State publication, International Adoptions. The BCIS publication is available at the U.S. CIS Web site. The Department of State publication can be found on the Bureau of Consular Affairs Web site under "International Adoptions."

Questions:

Specific questions regarding adoption may be addressed to the Consular Section of a U.S. Embassy or Consulate abroad. Parents may also contact the Office of Children's Issues, U.S. Department of State, CA/OCS/CI, 2201 C Street, NW, Washington, D.C. 20520-4818, toll-free Tel: 1-888-404-4747 with specific questions.