Category: Moldova

Through its 27 February 2025 law (“Law 33/2025”), the Moldovan Parliament amended the current rules on control of investments into sectors important for the security of the state (“Law 174/2021” or the “FDI Law”). The amendments enter into force on 20 April 2025.

The updated list of sectors important for Moldova’s security

The sectors are: (a) the exploitation (exploatarea) of infrastructure in the field of energy, transport, water and sewage, communications, data processing or storage, aerospace, defence and election, as well as the real estate essential for using such infrastructure; (b) the exploitation of information technologies in critical energy infrastructure, the exploitation of artificial intelligence, robotics, semiconductor and cybersecurity technologies, aerospace technologies, defence technologies, quantum and nuclear technologies, nanotechnologies and biotechnologies; (c) the management of airports, bus terminals, rail traffic, inland waterways, ports and quays for inland waterway traffic, except for temporary quays; (d) the use of nuclear materials and management of radioactive waste and hazardous chemical waste; (e) television broadcasting and audio-visual services; (f) the design, production, maintenance and operation of systems and components used in air traffic management and the provision of air navigation services; (g) the design, production, maintenance and operation of aircraft, including dual-purpose unmanned aircraft and their components; (h) the design, maintenance and operation of aerodromes and heliports; (i) the production, export, re-export, release for free circulation (import) of armaments, munitions and military equipment, products, technologies and services that can be used in the manufacture and use of nuclear, chemical and biological weapons and missiles; (j) the administration of the state’s public registers and the security of public computer networks and systems; (k) work in the field of hydrometeorology and geophysics, including the geological study of subsoil resources and/or exploration of deposits of useful natural substances; (l) the production of cryptographic information protection tools; (m) the production and acquisition, for commercial purposes, of means for protecting information classified as state secret; (n) the production of explosive materials for industrial use and activities for their distribution; (o) the provision of mobile or fixed electronic communications networks and/or services; (p) the provision of port services (loading, unloading and storage, domestic and international freight forwarding, etc.); and (q) the execution of topographic-geodesy and cartographic works for the production and editing of topographic and aeronautical maps, the development of special geodesic networks and the creation of geo-information systems.

As before, Law 33/2025 neither clarifies the notion of exploitation nor defines or explains certain new inclusions, such as data processing or storage, the exploitation of artificial intelligence, critical energy infrastructure, etc.

Transactions excluded from the scope of the FDI Law

In addition to the current exclusions, the following transactions will be excluded from the application of the FDI Law: (a) transactions carried out inside the same group of companies; (b) transactions relating to an increase of a shareholding in the share capital of an undertaking active in an area of importance for state security, if the persons concerned already hold control; (c) transactions carried out by state-owned enterprises and commercial companies with majority public capital, by central and local administration authorities; and (d) transactions relating to the reorganisation of an undertaking active in an area of importance for state security, if the reorganisation does not involve a change in the shares held in the share capital, including when new legal entities are established.

Importantly, sale and purchase transactions involving assets that are part of or belong to companies with investments in a relevant sector must now exceed EUR 1m in value, provided the assets represent at least 25 % of the company’s total asset value according to its latest financial statement.

Screening criteria

Investments will be refused for investors who: (i) are suspected, accused or defendants in criminal proceedings related to money laundering offences, regardless of jurisdiction; (ii) are the subject of documented evidence and information by Moldovan authorities indicating involvement in actions that pose a particular threat to state security; (iii) have had contractual relations terminated due to non-performance or inadequate performance of assumed obligations; (iv) have been convicted of corruption, corruption-related acts or other corrupt practices; (v) are being prosecuted for a serious, particularly serious or exceptionally serious crime; and (vi) are currently, or have been within the last five years, listed as persons subject to restrictive measures imposed by international bodies such as the European Union, the United Nations or other international organisations.

Additionally, each investor will be screened in relation to the following criteria: (a) experience with similar projects; (b) transparency and clarity regarding the source of money, ownership, founders, managers and beneficial owners; (c) whether the investor is acting individually or in concert, including as a beneficial owner, and is resident in jurisdictions that do not implement international transparency standards, as determined by the Government of Moldova; (d) whether the investor is controlled, directly or indirectly, by the government of a foreign state, including through its public authorities or institutions, its armed forces, its controlling commercial and non-commercial companies, including through ownership structures or ongoing financing, and whether this may threaten the security of the state; (e) the extent to which an investment is likely to provide, directly or indirectly, access to the personal data of citizens of Moldova to governments of foreign states; (f) the possibility that an investment may have the effect of increasing or creating new cybersecurity vulnerabilities or the possibility that a government of a foreign state may have the ability to engage in cybersecurity activities that may affect national security; (g) whether there is a risk that the foreign investor would pursue the objectives of a third country or facilitate the development of a third country’s military capabilities; and (h) the possibility that an investment may create a particular threat to state security.

Application documents – modified

In addition to documents that an investor must present, the criminal record certificates of the shareholders – natural persons (not only of the UBOs) are now presentable as well.

A duty of confidentiality is introduced for the Council for Promotion of Investment Projects of National Importance (the “Council”) and its personnel.

Prior consultations with the Council – possible

Potential investors may submit consultation requests to the Council, which is required to respond within ten business days, with the possibility of a seven-day extension.

The Council may revisit its previous approval

The Council may, on its own initiative, review investments regardless of when they were realised (including those previously approved), if it becomes aware of evidence or confirmed information from competent authorities indicating that such investments pose a particular threat to state security.

What are the risks and sanctions involved?

In case of investment without prior approval from the Council (after the entry into force of the FDI Law) or in case of the failure to observe the Council’s decisions:

(i) the Council may order the parties involved to restore the situation to its state prior to the investment by submitting supporting documentation. The deadline for compliance will be no less than 10 days, but may be extended;

(ii) in the event of failure to comply with the deadline under (i), the Council may decide to fine the investor 5 % of its annual turnover in the previous year, capped at MDL 5m; and

(iii) if the parties exceed the time allotted to restore the situation to its prior state for reasons attributable to them, the Council may order the suspension of the economic activity in the areas of importance for state security, if this is justified by the existence of an imminent threat of irreparable damage. The suspension will be maintained until either party submits documents confirming the restoration of the situation prior to the investment, and the Council will evaluate these documents and decide on whether to lift the suspension.

FDI scrutiny in Moldova set to tighten

Besides expanding the list of sectors, it appears that as of 20 April 2025, FDI screening will require more effort from investors to obtain approval from the Council. Currently, the average time needed to secure approval from the Council exceeds three and a half months. Although the prior consultation mechanics may assist investors, we believe the undefined notions in Law 33/2025 will lead to an increasing number of filings. Following these changes, investors will likely take a more cautious approach when drafting or amending their business constitutive documents in Moldova. As practice shows, businesses are sometimes scrutinised simply for including a specific activity in their articles, with no option to change it once the Council takes notice.

By Vladimir Iurkovski, Partner, Schoenherr

Vernon David has advised Victoriabank and its parent Banca Transilvania Financial Group on the acquisition of Microinvest. Filip & Company reportedly advised Banca Transilvania Group and Victoriabank as well. Turcan Cazac, working with Osborne Clarke, advised the shareholders of Microinvest.

The transaction remains contingent on regulatory approval in Moldova and Romania.

Victoriabank is the third largest bank in the Republic of Moldova, with total assets exceeding MDL 26 billion as of March 2025. Since 2018, it has been part of the Banca Transilvania Financial Group.

Microinvest is the largest non-bank lending institution in the Republic of Moldova, with total assets of MDL 6.6 billion and a loan portfolio of MDL 6 billion, as of March 2025. With a team of 355 professionals and a network of 18 branches, the company serves more than 40,000 active clients.

“The acquisition of Microinvest is a clear step in Victoriabank’s growth strategy, including expansion through aquisitions,” said Victoriabank CEO Levon Khanikyan. “We’ve long admired Microinvest for reshaping microfinance in Moldova with its innovative products and outstanding customer relationships. We value their achievements, the professionalism of their team, and their positive impact on the local economy.”

“Microfinance is a key focus area for the Financial Group Banca Transilvania, developed through BT Mic, BT Direct, and Banca Transilvania,” added Banca Transilvania Deputy CEO Bogdan Plesuvescu. “We’re looking to replicate in Moldova the same success we’ve seen in Romania – both in empowering clients through microfinance and through strategic acquisitions.”

“We’re honored by the trust placed in us and see this as a great opportunity to grow our impact on Moldova’s economy,” commented Microinvest CEO Dmitrii Svinarenco. “Microinvest remains committed to its mission – to deliver accessible, personalized, and responsible financing to clients wherever they are.”

The Vernon David team included Partners Sergiu Bivol and Roman Ivanov, Senior Associate Nadejda Ciubotaru, and Associates Adelina Braga, Mihai Silta, Sergiu Besliu, and Eduard Gurin.

The Turcan Cazac team included Managing Partner Alexander Turcan, Partners Octavian Cazac and Ana Galus, and Associate Valeria Popa.

Gladei & Partners has advised the Trans-Oil Group on refinancing its USD 500 million, senior secured Eurobond due 2026.

The Trans-Oil Group is an integrated agribusiness operator in the Black Sea region. According to Gladei & Partners, the group has issued a new USD 550 million Eurobond, maturing in 2029, as part of its strategy to optimize the capital structure and extend the debt maturity profile.

“This deal reflects Trans-Oil’s strategic foresight in optimizing its capital structure and strengthening its financial position. We were happy to invest our dedication and expertise in navigating this complex transaction to ensure a seamless process and a successful outcome that supports Trans-Oil’s long-term growth and market leadership,” commented Gladei & Partners Partner Iulian Pasatii.

The Gladei & Partners team was led by Pasatii and included Managing Partner Roger Gladei and Junior Associates Tatiana Mocanu and Nicoleta Petco.

Gladei & Partners could not provide additional information on the matter.

Editor’s Note: After this article was published, Sayenko Kharenko announced that it advised the joint bookrunners, Citigroup, ING, Oppenheimer, Raiffeisen Bank International, and Unicredit. The firm’s team included Partner Igor Lozenko, Senior Associate Oles Trachuk, Associate Vladyslava Mitsai, and Paralegals Mykola Suprunovych, Polina Savinska, and Danylo Dashko.

Additionally, Baker McKenzie announced that it advised the Trans-Oil Group of Companies. The firm’s team included Kyiv-based Partner Serhiy Chorny as well as further team members in London and Zurich.

Vizdoaga Law Office and Dolea & Co have announced a collaboration between the two firms.

According to Dolea & Co, “with offices in New York, USA and Chisinau, Moldova, the collaboration between the two law firms aims to support individuals and companies who need legal assistance in the areas of international business law, arbitration and litigation, investment-based immigration, estate planning, mergers and acquisitions, and corporate law.”

Vizdoaga Law Office is a New York-based law firm established in 2021 and helmed by Founding Partner Maria Vizdoaga. Before setting up Vizdoaga Law Office, Vizdoaga was a Legal Fellow with PILnet: The Global Network for Public Interest Law between 2019 and 2020.

Bancassurance is a strategic partnership in which a bank collaborates with an insurance company to offer insurance products to the bank’s customers. This mutually beneficial arrangement not only allows banks to generate extra income through the sale of insurance policies, but also enables insurance companies to broaden their customer reach without the need to expand their sales teams.

Moreover, this model leverages the extensive customer base and distribution network of banks to provide insurance products, creating a win-win situation for both industries and their customers.

Bancassurance brings a series of advantages for both the provider and the customer, including:

1. Convenience for the customer, who can access both banking and insurance services;
2. A win-win deal, in which banks increase their revenues while insurance companies broaden their client coverage;
3. Stronger customer relationships for banks by offering a broader range of services to their clients;
4. Cost efficiency for both the bank and the insurance company by sharing resources and reducing overall costs.

In the Republic of Moldova, bancassurance is mainly regulated by the Law on Insurance and Reinsurance Activity, which defines the term “bancassurance agent” as a bank and/or a branch of a third-country bank operating on the territory of the Republic of Moldova, a savings and loan association, or a non-bank credit organization. These entities, based on the mandate contract granted by the insurance company, have the right to conclude insurance contracts with third parties in the name and on behalf of the insurance company, in accordance with the conditions stipulated in the mandate contract. The bancassurance agent is also defined as an insurance intermediary in the same law, which further specifies that the capacity of an insurance agent or bancassurance agent is incompatible with that of an insurance and/or reinsurance broker or brokerage assistant.

Despite significant progress in the economy and the accessibility of services, several challenges persist regarding the popularity of bancassurance in the Republic of Moldova. These challenges include:

1. The regulatory framework for financial services in Moldova is still evolving, and ensuring compliance with both banking and insurance regulations can present difficulties for institutions.
2. The general population has a low level of financial literacy, which leads to a limited understanding of these services. Consequently, the adoption rate of such services remains low.
3. The bancassurance market may encounter competition from traditional insurance companies and other financial service providers, complicating efforts to establish a strong presence.

To conclude, while bancassurance holds great potential for enhancing financial service offerings in the Republic of Moldova, its success will largely depend on addressing these existing challenges. The collaboration between the bank and insurance sectors can create valuable opportunities for growth and customer engagement. However, to maximize these benefits, it is crucial to improve financial literacy among the population and streamline the regulatory framework. By fostering a more informed consumer base and adapting to market dynamics, the bancassurance model will be widely applied, ultimately leading to a more integrated and efficient financial landscape that benefits all stakeholders involved.

By Iulian Pasatii, Partner, and Liviana Frunza, Junior Associate, Gladei & Partners

Moldova is in the process of implementing substantive legislative changes, according to PwC Legal Head in Moldova, Ilona Panurco, who outlines the country’s efforts to align with EU acquis, including updates in digital, environmental, and financial regulations.

“Moldova’s EU candidate status has been a pivotal moment that has driven both the government and businesses to prioritize aligning with EU acquis,” Panurco explains. “The country is currently in the midst of a legislative screening process, which involves not only attracting businesses and addressing technical requirements across various sectors but also continuously adapting to changes in both EU and local laws.” For businesses, Panurco notes, “staying compliant is a significant challenge, as they must navigate this evolving landscape.”

Among the positive trends, Panurco emphasizes “the widespread digitalization of public services, which has been warmly welcomed by the business community.” She also highlights the expansion of environmental regulations, noting that “businesses are now subject to the Extended Producer Responsibility framework, requiring producers of recyclable packaging and importers of materials like glass and plastic to comply with regulations and pay related fees.”

“Another critical area of reform has been the anti-money laundering legislation, which has undergone significant updates,” Panurco adds. “These changes affect sectors such as telecommunications and legal services, as well as corporate procedures overseen by the Agency of Public Services. The reforms have introduced stricter, more detailed requirements, pushing businesses to adapt quickly.”

Panurco also points to the recent adoption of legislation transposing the GDPR in Moldova. “The law, approved in July, will come into force in two years, providing businesses with a transition period to ensure compliance. We expect it will bring significant changes in how companies interact with state authorities.”

Assessing the economic impact of these reforms in terms of compliance, Panurco says, “it’s hard to quantify. Businesses were given time to adjust to the introduction of transfer pricing rules, but AML legislation’s amendments were implemented swiftly, requiring quicker adaptations. These legislative novelties haven’t dramatically slowed business, however, this is due to the business’s adaptability and allocation of extra resources, in terms of financials, time, and human resources.”

In addition to legislative reforms, Panurco highlights other significant developments. “In the renewable energy sector, Moldova made a substantial leap by launching its first-ever tender for big volumes of renewable energy in the summer of 2024. Other crucial reforms in the energy sector, affecting the trading rules in Moldova are implemented.”

On the investment front, Panurco points out that the government is focusing on boosting domestic investment. “This September, the Ministry of Finance launched an online platform that allows citizens to purchase state shares – an ambitious and unprecedented move. The platform offers citizens the opportunity to invest in state assets with favorable interest rates. There are significant efforts by the government to develop the local capital market, while businesses are targeting foreign and local capital markets to attract investments while endowing heavily in their attractiveness and transparency.”

The Law on Personal Data Protection (LPDP) significantly influences the development and deployment of Artificial Intelligence (AI) systems in the Republic of Moldova. As companies increasingly adopt AI technologies, awareness and understanding of LPDP requirements application is crucial to ensure compliance and protect the rights of individuals.

AI and big data innovations integration into the global data-processing infrastructure offers significant advantages, such as enhanced transparency, worldwide knowledge transfer, progressive consultancy services, effective information accessibility, generation of new employment opportunities, increased productivity and financial efficiency.

Although the LPDP does not specifically regulate any AI operations, most provisions are relevant. Article 3 defines the terms of personal data, processing, special categories of personal data and consent of the personal data subject. It also defines the standard of consent, which has to be freely given, specific, informed and unambiguous. The unambiguity aspect poses a challenge for AI compliance with the LPDP, since the personal data operations performed by AI are unpredictable. The prevention measures currently in force do not assure the precise compliance of AI operations with the LPDP requirements. While the Law establishes a strong regulatory framework for the processing of personal data, it is technically challenging to monitor compliance with all these provisions when personal data is processed by AI systems.

 There are, in fact, contradictions between standard data safeguarding guidelines and the full utilization of AI and big data, which involves large-scale data collection and processing for undetermined purposes. Notwithstanding, to mitigate this challenge data protection principles can be interpreted and thoroughly analysed to align with the beneficial uses of AI and big data.

In this regard, companies must address the implications of AI on data protection by implementing internal policies to prevent LPDP infringements. Data Protection Impact Assessments (DPIAs), defined by Article 23 of the LPDP are designed to prevent any violations and must include an evaluation of potential risks associated with processing personal data. Notably, due to the unpredictability of AI operations, DPIAs have limited applicability, highlighting the need for a more reliable mechanism.

LPDP preventive measures may not seem to restrict AI development if correctly implemented. However, the rapid evolution of AI goes beyond the regulatory framework of personal data protection measures, since the LPDP does not give solutions for most AI-related data-protection issues. The penalties for LPDP infringements, combined with the uncertainty in meeting compliance standards, may generate a risk factor. This could deter companies from exploring the technological advancements, rather than encouraging adequate compliance measures.

The implications of the LPDP on AI development and deployment become more stringent when analysing Article 17 of the Law, which provides that any person shall have the right to request the annulment, in whole or in part, of any individual decision which produces legal effects on his/her rights and freedoms and which is based solely on automated processing of personal data intended to evaluate certain aspects of his/her personality, such as professional competence, reliability, conduct and other aspects.

This results in AI developers being required to ensure the fairness, transparency, and human oversight of such decisions. As a consequence, companies may need to implement additional safeguards and review internal procedures to guarantee compliance with the Law.

Overall, the LPDP requirements applicable to AI do not seem as easily achievable at this stage of use of the technology.

LPDP compliance should not be an obstacle to innovation, rather, it must ensure responsible and ethical AI development. Despite the LPDP creating limitations, companies must navigate these requirements to build AI systems that respect privacy and protect individuals’ rights. At the same time, the legal framework must keep up with technological progress and encourage it. The successful application of LPDP to AI depends on the guidance provided by the National Centre for Data Protection to controllers and data subjects.

By Iulian Pasatii, Partner, and Liviana Frunza, Junior Associate, Gladei & Partners

In a detailed discussion on Moldova’s evolving fintech sector, ACI Partners Head of Fintech and E-Payments Nicolina Turcan highlights significant progress, largely driven by technological advancements, cross-border market integration, and the country’s need to align its regulatory framework with EU regulations and directives and adjust its payment infrastructure.

“The main fintech developments are in payments,” Turcan begins, zeroing in on specific legislative amendments that are currently shaping Moldova’s fintech landscape. She shares that the country is in “the midst of a legislative transformation following the implementation of the PSD2. The introduction of open banking standards will introduce a new way of interpreting banking services, impacting payment service providers, businesses, and customers.” She says that Moldova is likely to implement the “Berlin Group standard for open banking, which will bring several practical advantages, since usage of a uniform API will ensure cross-border compatibility and seamless communication between payment service providers.”

Turcan notes that the “implementation of instant payments infrastructure is part of Moldova’s broader strategy to modernize its financial sector.” She underlines that the “Moldovan regulator is also working on aligning Moldova’s payment services with the SEPA Regulation, which is paramount for integrating Moldova into the Single Euro Payments Area and facilitating cross border transactions.” With the rapid evolution of e-payment legislation driving standard adjustments in the market, she emphasizes the importance of considering existing payment service providers, new payment service providers entering the jurisdiction, as well as new players (AISP and PISP).

There are also operational challenges, Turcan points out, such as “the need for robust authentication measures by payment service providers, and compliance with stringent AML/KYC regulations. Moldova’s legislation is influenced by EU standards and FATF recommendations.” Recent updates to the AML laws “require detailed transaction monitoring and risk assessment, which presents a significant hurdle for many businesses, but also ease cross-border cooperation,” she says.

An additional area that warrants major consideration is data protection. According to Turcan, “data protection is a major concern, since open banking mandates all account servicing payment service providers share data in their possession with third-party providers (usually fintech companies). Notably, we have reached a significant milestone with a new law implementing the GDPR, recently approved by the Moldovan Government,” she says. This is particularly relevant for fintech, she believes, where “data must be securely managed and open to third-party providers under controlled circumstances to mitigate risks and potential data breaches.”

Looking at the big picture, Turcan reports that these changes have left their mark on Moldova’s presence on the international stage. “These reforms are pivotal for Moldova’s integration into the global market,” she says, “like our submission of the request for joining SEPA in early 2024, launching our national instant payment system – MIA – approval of legislation on cash settlement, and approval of legislation regulating crowdfunding and crowd investment.”

Gazing at the path forward, Turcan says that Moldova will likely seek to continue improving its business development by integrating more sectors, such as the energy market. “The goal is to establish Moldova as a trustworthy market, balancing legal requirements and rigorous standards with business growth, ensuring that businesses can thrive within a well-regulated framework while developing compliant and secure operations,” Turcan concludes.

This legislative monitoring report covers the introduction of new rules regulating public procurement in international relations, the adoption of the Free Trade Agreement between the Republic of Moldova and EFTA member states, the introduction of new rules regulating trademarks from 2027, the adoption of the regulation on audiovisual content. The document also provides for the approval of the regulation on the environmental management of mercury waste, the adoption of the law on hunting and the protection of game resources, the implementation of the national programme for the development of creative industries “Creative Moldova” for the years 2024-2027, as well as the optimisation of the use of industrial parks. 

I. Commercial and Corporate

Law(s):

– Free Trade Agreement between the Republic of Moldova and EFTA Member States

The agreement establishes a free trade area, based on trade relations between market economies and respect for democratic principles and human rights. Its objective is to foster prosperity and sustainable development.

– Introduction of New Rules on Government Procurement in International Relations

The draft law provides for the introduction of the concept of “state treaty” into the existing legislation. This term refers to agreements negoatiated by the competent body on behalf of the state, such as the government, ministries, other central administrative authorities or other authorised state institutions, with other state, government, international organisation or foreign financial institutions not governed by public international law. These agreements may cover economic, commercial, financial and other fields and which are not governed by public international law.

II. Intellectual Property

Law(s):

– New Trademark Regulations from 2027

The normative act stipulates that new regulations on individual, collective and certification marks – whether pending registration or application in the Republic of Moldova, or as part of an international registration effective in the Republic of Moldova – will enter into force in 2027.

III. Consumer Law

Law(s):

– Adoption of the Regulation on Audiovisual Content

The document serves as the secondary regulatory framework to ensure the implementation of the provisions of the Code of Audiovisual Media Services of the Republic of Moldova. Its objective is to guarantee the delivery of pluralistic and accurate information to the public in a responsible manner to the public through linear and non-linear audiovisual media services, including video sharing platform services.

The Regulation outlines rules applicable to media service providers, distributors and video sharing platform service providers.

IV. Environment

Law(s):

– Approval of the Regulation on the Environmentally Sound Management of Mercury Waste

The document sets out requirements for the environmentally responsible management of mercury waste. It aims to ensure traceability throughout the mercury waste management chain and to provide a high level of protection of human health and the environment.

– Adoption of the Law on Hunting and Protection of the Hunting Grounds

The document sets out the legal framework for the sustainable development, protection, conservation and rational use of wildlife of hunting interest. It outlines the rights of individuals to hunt and aims to regulate activities related to the management and administration of the national game fund. Additionally, the law seeks to ensure biodiversity and environmental protection.

V. Digitalization

Law(s):

– Implementation of the National Program for the Development of Creative Industries ‘Creative Moldova’ for the years 2024-2027.

The document sets forth a four-year public policy programme „Moldova Creativă” (English: „Creative Moldova”) which aims to provide an integrated, predictable and visionary approach to the development of the nation’s creative industries. The program focuses on the intelligent and sustainable exploitation of Moldova’s creative potential by creating a favourable and comprehensive environment for the development of a competitive and sustainable creative industries sector.

Draft law(s):

– Optimising the Utilisation of Industrial Parks

The draft law proposes enhacements to the existing legislation on industrial parks, aimed at attracting and fostering investments to establish technologically advanced, efficient and competitive industrial sectors based on innovative, green and creative technologies.

The document introduces three distinct types of industrial parks and outlines new provisions regarding their establishment.

By Domnica Bejan, Junior Associate, and Laurentiu Racu, Legal Assistant

Dolea & Co Partner Sorin Dolea talks about the evolution of energy projects and their role in Moldova’s legal landscape over the last 10 years.

CEELM: Over the last ten years, what types of energy projects have kept your team the busiest?

Dolea: The bulk of our activities have been centered around gas distribution and supply. Since 2020, we’ve witnessed the liberalization of the supply market as well as a significant increase in gas traders entering the Moldovan market. This trend is likely to persist, with a shift towards more imports of natural gas from Western sources, including via the pipeline that connects Moldova and Romania, and a decrease in imports from Russian sources. The shift was partly due to Ukraine’s announcement that it would not renew its transit contract with Gazprom, prompting us to diversify our suppliers.

CEELM: Can you pinpoint the most intense periods your team has faced over the last ten years?

Dolea: The intensity of work has been consistently high since 2020 as we’ve expanded from gas to include renewables, electricity, and oil, thereby diversifying our client portfolio. This expansion into various forms of energy has kept us particularly busy.

CEELM: How have the profiles of energy projects evolved over this time, and what trends have you observed?

Dolea: There’s been a noticeable pivot towards renewables, driven by ongoing reforms in the energy sector. This includes a rise in solar and wind projects, although our potential for hydro energy is limited by our geographical features. The client base is becoming increasingly Western, often involving Ukrainian or Romanian companies with French or US roots. The link between market reforms and client profiles is direct; more reforms equate to more diverse clients.

CEELM: In terms of client needs, what new expectations do you see emerging in the energy sector, and what aspects do you think have decreased in importance over time?

Dolea: Clients are now looking for clarity on market operations and stability in the investment framework. They prioritize long-term guarantees and a clear understanding of legislative impacts on their investments, reflecting a shift towards more secure and predictable engagement in the sector.

CEELM: From a legislative and regulatory standpoint, what recurring challenges has your team encountered in facilitating deals and projects? How have these challenges evolved over the past decade?

Dolea: The legal environment is very dynamic, with frequent updates to align with EU standards, reflecting Moldova’s candidate status. However, not all EU policies fit Moldova’s context, which can complicate implementation.

CEELM: Looking forward, what do you anticipate for the energy sector? How do you think the industry will evolve over the next decade?

Dolea: The future is prominently renewable. We expect a tendency towards the reduction, albeit slow, of oil, electricity, and gas imports as we identify and develop local energy sources. This shift towards renewables, such as solar and wind, will likely dominate the landscape, reducing our dependency on imported energy and fostering a more sustainable and self-sufficient energy sector in Moldova.

Dolea & Co is CEE Legal Matters’ Practice Leader for Energy in Moldova for 2024 – learn more here.