Companies in the Republic of Moldova are already aligning with European standards even though the country has not yet joined the European Union. One example is BPM, Moldova’s only producer of prestressed concrete steel strands, which says new EU trade rules are making access to the European market more difficult, according to Euractiv.
Based in Chisinau, BPM began operations in 2023 following a 9 million euro investment supported financially by the European Bank for Reconstruction and Development (EBRD). The factory, located in a free economic zone, was designed from the outset to comply with European requirements, including the EN 10138-3 standard and ISO 9001 certification, as well as North American ASTM A416 standards.
BPM’s products are already certified in nine EU member states, while the company is working to obtain certifications for additional European markets. During its first two years of operation, the producer delivered more than 22,000 tonnes of products to 15 international markets, including Bulgaria, Poland, Ukraine and the United States.
New EU Trade Barriers
At the same time, BPM is facing new trade barriers.
As of July 1, 2026, the EU replaced its previous steel safeguard regime with Regulation (EU) 2026/1384. According to Euractiv, the new rules reduce tariff-free import quotas by approximately 47% and increase the tariff on imports exceeding the quota to 50%.
Moldova does not benefit from an exemption similar to the one granted to European Economic Area countries, despite having a Deep and Comprehensive Free Trade Area (DCFTA) agreement with the EU.
As a result, Moldovan steel products face a stricter trade regime despite the country’s ongoing economic and legislative alignment with the European Union.
Another potential challenge is the EU’s Carbon Border Adjustment Mechanism (CBAM). The European Commission has proposed extending the mechanism by 2028 to around 180 downstream product codes involving significant amounts of steel and aluminum. Depending on the outcome of the legislative process, BPM’s products could also fall within the scope of the new rules.
Company Invests in Energy Transition
BPM says it is responding to these requirements through further investment.
The company has a 600 kW solar installation on the roof of its factory, covering up to 20% of its electricity needs. It has also signed a power purchase agreement with one of Moldova’s largest solar parks.
In addition, BPM is investing 1.7 million euros in a battery energy storage system with a capacity of 12.6 MWh. The system is expected to become operational within the next six months.
BPM founder Oleg Babii says the investments were made on the assumption that compliance with European standards would facilitate access to the EU market.
“We were asked to comply with European standards years before we were allowed to compete on equal terms in the European market,” Babii said.
According to him, the company invested in aligning its operations with EU regulations, while “quotas were reduced, tariffs increased” and carbon-related requirements continued to expand.
“If Brussels wants companies like ours to continue investing ahead of regulation, it must demonstrate that this imbalance is temporary – not permanent,” Babii said.
The company believes one possible solution would be to gradually allocate import quotas to producers from EU candidate countries that can verifiably meet the bloc’s technical and environmental standards.
Preparing for European Integration
BPM says its operations demonstrate how economic integration can advance even before formal EU membership.
The company currently holds 12 active product certifications in nine EU member states and is seeking certification for Germany, Austria, Switzerland, the Netherlands and several Nordic markets.
BPM chief engineer Boris Shaitan says the factory was built with long-term integration into European markets in mind.
“What we are building is not just a factory – it is an industrial capacity that allows Moldova to participate directly in European infrastructure projects,” he said.
The company already has commercial ties with Ukraine, where Ukrainian buyers accounted for 6% of BPM’s sales last year. The producer says it is prepared to contribute to Ukraine’s reconstruction with certified products that comply with European standards.
Marin Ciobanu, chief administrator of the Chisinau Free Economic Zone, where BPM operates, said the company’s products could play a role in reconstruction projects.
“These are value-added products used in construction, manufactured using highly advanced technologies,” Ciobanu said.
The debate over EU trade policy comes as Moldova’s EU accession negotiations continue to advance. Moldova has set itself the goal of completing the accession process by 2028.