Moldova: the Russian invasion of Ukraine puts the economy in pain
In the central market of Chisinau, in Moldova, on April 29, 2022. AFP - DANIEL MIHAILESCU
Text by: RFI Follow
2 mins
Tension is rising in Moldova as Russia announces evacuations from Transnistria.
The population fears an extension of the conflict in Ukraine, but does not consider it imminent.
On the other hand, Moldovans suffer directly from its economic impact.
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With our special correspondent in Chisinau,
Juliette Gheerbrant
There is hardly anyone at the many checkouts of a large building supply store in the capital Chisinau.
And it's been like that since the start of the war in Ukraine, notes Sergiu Demian, boss of a construction company.
Prices are soaring: “
A bag of cement, for example, cost 94 lei a month ago.
There it is 115 lei.
And there you see the galvanized wire: a year and a half ago it cost 17 to 20 lei.
Now it is 47 lei.
That's a 130% increase.
»
► To read also: Moldova and Transnistria tighten controls fearing involvement in Ukraine
The geopolitical situation discourages customers, notes Sergiu Demian: "
The same day, February 24 (beginning of the invasion of Ukraine by the Russian army, editor's note), a customer called me to tell me that he postponed the construction of two houses.
»
So far, this 12-employee company is holding up.
“
We manage to pay salaries, we maintain a reduced level of activity.
I just hope that Moldova will not be involved in the war as well… Yes, that's the reality
”, confides the boss.
On the supplier side, the situation is just as complicated: “
There are supply disruptions of products that come from the East.
The painting, for example, came from Russia, there are no more.
»
► To read also: Threatened by the war in Ukraine, Moldova wants to break away from its dependence on Russian gas
Mihail is responsible for sales.
He is worried about his job: “
For us, the employees, it's complicated.
We wonder what will happen in the next six months.
Neither Mihail nor Sergiu imagine a quick outcome to the conflict.
► Follow our live on the conflict in Ukraine
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Moldova
Russia
Ukraine
Economy
Economic crisis