Transdniestria Revealing Unfair Investors

Transdniestria's authorities have set to probing into activities of foreign investors. Dozens of non-resident owners have failed to execute investment obligations, the local chiefs announced threatening to seize private assets via the courts.

At least 27 enterprises made private from 2003 to 2005 have breached investment commitments, Transdniestria's media reported yesterday referring to prosecutors' inspection. In Transdniestria, the campaign of revealing unfair investors is in full swing now.

But exactly Russia's business has bought out the better part of local assets, including Moldova's Power Plant, Rybnitsky Iron & Steel Works, Moldova's Bouquet Winery, during the so-called big privatization that Tiraspol launched a few years ago. By strange coincidence, the current probe of prosecutors is held when the relations of Russia and that breakaway republic of Moldova have clouded to certain extent.

Financial claims that Transdniestria's bureaucrats have suddenly made public are likely to affect Russia's entrepreneurs. Off-the-record, the sources say 80 percent of region's facilities were made private by business of Russia or have some potion of Russia's capital.

Amid enterprises, which investment activities have irritated Tiraspol, are Moldova's Power Plant (Inter RAO UES of Russia holds 100 percent), Moldovcable (Russia's Sevkabel owns 100 percent), Tigina Footware Firm (Moscow Green has 100 percent) and others. The investors named by Transdniestria's prosecutors may face court proceedings up to the cancellation of purchase-and-sale contracts.

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