The Transnistrian region is experiencing an economic collapse. Vadim Krasnoselski announced that municipal budgets and unused special-purpose funds from 2024 will cover civil servant salaries.
Krasnoselski set the alleged Tiraspol government’s top priority as ensuring social payments for the population. The region’s so-called supreme Soviet must approve the final decision, but its approval will be a mere formality.
“We must live within our means. I have said this many times and will repeat it: The country directs everything it earns to meet its citizens’ needs. Our resources are limited. Our main source of revenue—taxes—remains minimal. I believe we will overcome this difficult phase, but for now, we must rely on our capacities,” Krasnoselski said.
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His announcement comes amid reports of a nearly twofold increase in utility tariffs. Starting March 1, residents will see higher bills for heating, gas, electricity, and water.
The so-called minister Sergey Obolonic claimed that tariffs would match those in Russia but remain lower than on the right bank of the Dniester. He justified the increase by citing the gas supply chain: the Hungarian MET group delivers gas to the region through a Dubai-based intermediary, transiting several countries.
Previously, the EU offered Tiraspol €60 million in additional support and required the separatist authorities to gradually adjust tariffs to market rates. However, Krasnoselski rejected the offer and secured a $50 million loan from Russia for gas purchases until mid-March.