Sergiu Gaibu: We are fully dependent on foreign energy resources

The unprecedented inflation witnessed in Moldova is due to the country’s full dependence on foreign energy resources, said Minister of Economy Sergiu Gaibu. According to the official, the Republic of Moldova is the only country in the region that does not have own energy resources and this has an impact on the prices of products and services. The authorities are taking steps to prevent speculations and unjustified price rises, IPN reports.

According to the National Bank of Moldova, inflation is expected to reach 31% towards the end of the year. The minister explained that this is because Moldova is fully dependent on the international market, especially in the energy sector.

“Moldova is the only country in the region that is fully dependent on foreign energy resources. We all feel the impact of prices. The prices of gasoline and diesel fuel are directly connected to the international price of these products. We daily see the fluctuations in the prices of these products, in accordance with the developments on the international market. Therefore, we limited the profit margin on a series of socially important products so as to diminish this impact. The business entities are less satisfied with these measures, but it is important to limit the possibilities of speculation and unjustified price rises on a series of socially important products,” Sergiu Gaibu stated in a special edition on the public TV channel.

The minister explained that the significant rise in the prices of a number of foods products is due to the fact that imports from Ukraine were partially stopped after the war started, while local producers are for now unable to satisfy demand.

“There were massive imports of oil in April and May. The quantities were much larger than in the corresponding period last year. The price in March was indeed high as imports from Ukraine were stropped. In April, a large part of the imports were already resumed. This rise is seasonal and is witnessed each year. Last year the price of oil rose by 20-25%. The price of pasta grew considerably as this is substituted with pasta from Ukraine. But we also have significant own production of 60% and advise the business entities to benefit from support through ODIMM so as to realize the potential to produce pasta,” said the minister.

According to the National Bureau of Statistics, average consumer prices this April rose by 27.07% on last April, including of food products – by 30.17%, of nonfood products – by 19.13% and of services provided for the population – by 34.40%.

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