The energy crisis that broke out in Transnistria earlier this year appears to have triggered a financial crisis, whose first signs are already affecting the administration of the self-proclaimed republic’s leader. At least three sources — from the leader’s administration, banking circles, and the so-called government — told IPN about the situation.
Each of the sources indicated that the institutions they represent have been actively working in recent weeks to draft a plan for “optimizing” budget expenditures and finding additional sources of funding to cover the rapidly growing deficit.
Deadline – Mid-June
The social sector and large industrial enterprises — vital for Transnistria’s claimed economy — are suffering the most. According to a source from the region’s so-called government, in enterprises where staff cuts previously occurred, employees are now quitting on their own: “Some haven’t received salaries since March, while others were only partially paid for April,” said people familiar with the issue.
Two IPN sources — one from the banking sector and one from the regional administration — said the self-proclaimed authorities are considering asking the Russian Federation for financial assistance worth several hundred million dollars. However, the sources could not specify the negotiation level or the form of aid — whether a grant or a loan.
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Both sources said they couldn’t disclose further details, only noting that talks have been actively underway for two weeks. They added that the “deadline” for a decision is mid-June, as the situation could become critical by August without external support.
Meanwhile, tax authorities have stepped up efforts to boost budget revenues, as the current state of the public sector “dissatisfies the leadership.” According to sources, in some districts, teachers haven’t received April salaries or are being forced to take unpaid leave over the summer. Posts and comments from residents in Viber and Telegram groups — beyond the control of the so-called local authorities — confirm this information.
Officially, the region’s de facto authorities avoid talking about Transnistria’s financial troubles. The regime-controlled Transnistrian press either ignores the topic or discusses it vaguely.
Chisinau has no access to the region to assess the extent and consequences of the crises. However, sources from the Government of the Republic of Moldova say the situation is “under control” and that authorities on the right bank are closely monitoring everything happening in the region.