MOLDOVA
Section 201 of the FREEDOM Support Act amended Section 498A of the Foreign Assistance Act of 1961 to require that the President "take into account not only relative need but also the extent to which that independent state is acting to:"
Section 498A(a)(1): "make significant progress toward, and is committed to the comprehensive implementation of, a democratic system based on principles of the rule of law, individual freedoms, and representative government determined by free and fair elections."
Throughout 2005, the Moldovan Government generally maintained its commitment to democracy and the rule of law, although there were some problems related to coverage of opposing political viewpoints in the state-controlled media. Separatist elements, supported by Russian military forces in the area, declared in 1992 a "Dniester Moldovan Republic" in Transnistria between the Dniester River and Ukraine. The Moldovan Government does not control this region, where there have been reports of human rights violations.
The current Moldovan Parliament was elected March 6, 2005. The Communists won 56 of the 101 seats in Parliament in elections that Organization for Security and Co-operation in Europe (OSCE)/Office of Democratic Institutions and Human Rights (ODHIR) observers declared generally in compliance with most OSCE and Council of Europe commitments and other international election standards. The OSCE observer mission noted that the elections fell short of some key commitments, particularly regarding campaign conditions and media access. Shortcomings included the obstruction of parties' campaign activities, instances of harassment of candidates and opposition media and the failure of courts to respect the legal deadlines to rule on complaints. Parliament re-elected Communist Party chairman Vladimir Voronin as President on April 4, 2005 by a vote of 75 (out of 101) members of parliament.
Corruption is widespread in Moldovan society, undermining the rule of law and hindering political and economic development. The Government of Moldova has shown resolve to combat corruption, creating and staffing a Center for Combating Economic Crime and Corruption, but its efforts have had mixed results. In the fall of 2005, the Moldovan Parliament passed two decisions on business regulatory reform. Termed the "Guillotine Laws," the legislation simplified rules and cut regulations, thereby reducing opportunities for corrupt activity.
Section 498A(a)(2): "make significant progress in, and is committed to the comprehensive implementation of economic reform based on market principles, private ownership, and integration into the world economy including implementation of the legal and policy frameworks necessary for such reform (including protection of intellectual property and respect for contracts)."
Moldova has progressed slowly in its transition to a market economy. Prices have been largely freed, and the Moldovan national currency, the leu is fully convertible for current account transactions. Most foreign trade has been liberalized, but the government has imposed export and import restrictions on certain agricultural goods. Moldova became a member of the World Trade Organization in 2001. Moldova enjoys Normal Trade Relations with the United States and has been in compliance with the freedom of emigration provisions of the Jackson-Vanik amendment (subject to a semi-annual reporting requirement on its continued compliance with these provisions). Since the Communist Party returned to power following free and fair elections in 2001, the Government has reverted to "planned-economy thinking with tinkering," according to IMF mission staff. Structural problems persist, particularly in the agriculture and energy sectors and in implementing legal system reform. Progress on privatization has slowed, and corruption is widespread. While government interference in the economy remains a significant problem, the government's stated goal of European integration and its signing in February 2005 of an Action Plan with the European Union have signaled movement towards greater economic liberalization.
Moldova will record its sixth consecutive year of GDP growth in 2005, with year-end real GDP growth predicted at six percent (excluding the separatist Transnistria region). Current growth is largely driven by remittances from Moldovans working abroad, which the IMF estimates, at the high end, to be one-third of the labor force, and the resulting GDP growth is consumption-led. The flow of foreign currency into Moldova results in an overvalued leu, hurting exports and increasing demand for imported consumer goods. Investment as a percentage of GDP is low and in decline, as is productive capacity. The IMF regards the present GDP growth rate as unsustainable without structural reform. Inflation was estimated to be 12.5 percent in 2005. Sporadic and ineffective enforcement of the law combined with economic and political uncertainty and low levels of income continue to discourage foreign direct investment. Moldova's external debt in 2004 was estimated to total $1.9 billion, or 74% of GDP. In July 2004, Moldova resumed interest payments to some creditors. Low revenue collecting capacity and the loss of external financing from the international financial institutions (IFIs) will make full debt servicing difficult. Moldova remains the poorest country in Europe, although GDP per capita grew from $713 to $766 over the past year. Poverty indicators have remained unchanged over the past five to six years. Without structural reform, the country is likely to remain poor, even with fiscal and monetary stability.
The IMF's Poverty Reduction and Growth Facility (PGRF) for Moldova expired in 2003 leaving about two-thirds of funds undisbursed because of a failure to implement sufficiently structural reforms. In the same year, the World Bank stopped its SAC-III program. Moldova adopted an Economic Growth and Poverty Reducing Strategy Paper (EGPRSP) in May 2004. However, some of the policy assumptions and directions suggested in the paper are a significant departure from current policies. During consultations in June 2005, the IMF indicated that it would need to see progress in curbing inflation, tightening fiscal policy and restarting structural reforms as the basis for possible discussions on a new program. The government appears to have made progress in all three areas. The IMF will begin discussing a new IMF program with the GOM in December 2005, but has indicated that a new program will be contingent on continued good performance and a convincing track record of reform implementation as an indicator of strong government ownership.
The Fund continues to emphasize the need for much stronger commitment to reform and action on structural issues, and a halt to fiscal and structural backsliding and to be concerned about formal and informal restrictions on agricultural exports. The lack of an IMF program remains an impediment to Paris Club debt rescheduling.
A law governing the sale and purchase of land took effect in September 1997. Citizens and foreign investors can buy and sell most land at market prices. Foreign investors cannot purchase agricultural land except through a joint venture registered in Moldova. More than 900 former collective farms were privatized as a result of the land privatization efforts, and about one million Moldovan citizens received land titles through 2001. President Voronin and other senior government officials in July 2005 declared their support for land consolidation only on a market-based, voluntary basis. A largely completed enterprise-privatization program fully privatized 2,114 enterprises from many economic sectors, with an additional 321 enterprises privatized in cases where the state holds less than 49 percent of the shares. Although there have been no significant privatizations in Moldova in the past two years, in December 2005 parliament extended the law on privatizations through 2006, building on Prime Minister Tarlev's pledge to reinvigorate the process. At the urging of the IMF, a new law is also being drafted, and should be finalized in early 2006. The national energy regulator's continuing refusal to allow the country's largest foreign investor, Spanish-owned electricity distributor Union Fenosa, to raise consumer rates despite increased prices charged by its primary power supplier, in the separatist Transnistria region, exemplifies problems with Moldova's investment climate.
The U.S. and Moldova have a bilateral investment treaty that entered into force in 1994 and Moldova has an OPIC agreement that entered into force in 1992. Moldova has also made a number of important legal reforms to enhance intellectual property protection in the past several years and was not a subject of the U.S. Special 301 report in 2005.
Section 498A(a)(3): "respect internationally recognized human rights, including the rights of minorities and the rights to freedom of religion and emigration."
The Government generally respects the human rights of its citizens, but there are continuing problems in some areas. For example, in 2005, some NGOs reported cruel, inhuman, or degrading treatment of prisoners and detainees, sometimes held for long periods of time without charge. Although the transformation of Teleradio Moldova into a public company was completed in August 2004, controversy continued in 2005 over alleged pro-government bias in its news programs. Teleradio Moldova employees charged that selection of employees for the new company was biased against journalists who were critical of the government. Several journalists who had been dismissed sued Teleradio Moldova's administration. In one such case, a court upheld the legality and competency of Teleradio Moldova's hiring committee. Other lawsuits remained pending at year's end. Several international organizations sponsored a monitoring project that showed that Teleradio Moldova continued to limit coverage of the opposition and gave extensive positive coverage to the activities of the government. Members of opposition parties are often denied access to government-owned media. Nevertheless, there is an active and independent media. In 2004, on the initiative of President Voronin, Moldova's parliament amended the law to remove criminal penalties for defamation.
The Government generally respected freedom of association and assembly although there were occasions when these rights were restricted as well as instances of harassment of government opponents.
The 1994 constitution provides the legal framework to ensure protection of minority rights, and has received positive assessments from international experts. Gagauzia, a Turkish minority region in southern Moldova, enjoys autonomous status.
Trafficking in persons remained a very serious problem, as Moldova is considered a source country. The Government, however, has increased efforts to combat trafficking.
Some persons have reportedly received beatings in police custody. Generally, prison conditions remained harsh, with attempts to improve them hampered by lack of funding.
The Government generally recognizes freedom of religion in practice, although it has continued to deny registration to some religious groups, including two Muslim groups and the Church of Jesus Christ of Latter Day Saints (the Mormons). A number of minority religious groups in Transnistria, a break-away region not under the control of the Moldovan Government, continued to be denied registration and are subjected to harassment by the Transnistrian separatists. In 2004, the Transnistrian Supreme Court refused to examine an appeal by the Jehovah's Witnesses by upholding a Tiraspol city prosecutor's suit to annul the group's registration and ban its activities in Transnistria.
Reports exist of human rights abuses by the authorities in the separatist Transnistrian region, among them discrimination against Romanian/Moldovan speakers. Transnistrian "presidential" elections on December 9, 2001 were reportedly plagued by abuses. The OSCE remains involved in investigating reported severe human rights abuses by Transnistrian security police in the village of Chitcani between 1992 and 1997; these reported abuses include severe beatings, murder, and disappearances. In July 2004 Transnistrian authorities moved to shut down schools operating in Transnistria under the auspices of the Moldovan Ministry of Education (teaching in the Romanian language using Latin script). Thanks to heavy international pressure on the separatist authorities there was progress on this issue throughout 2005. In July 2005, under an OSCE-negotiated formula, Transnistrian authorities allowed Latin-script schools located in Transnistria to operate. Schools registered with the Moldovan Ministry of Education must register locally. All but one of the schools has now reopened.
Moldova has abolished the requirement for exit visas for travel abroad but individuals wishing to emigrate must settle financial and judicial obligations and receive approval from dependent relatives before permission to emigrate is granted. The Government may also deny permission to emigrate if the applicant had access to state secrets; such cases are very rare, however. No cases of denial of permission to emigrate have been reported since 2003.
Section 498A(a)(4): "respect international law and obligations and adhere to the Helsinki Final Act of the Conference on Security and Cooperation in Europe and the Charter of Paris, including the obligations to refrain from the threat or use of force and to settle disputes peacefully."
Moldova takes seriously its participation in the OSCE and its commitments under the Helsinki Final Act. The Transnistria region of Moldova, along the Ukrainian border, remains under the control of separatist forces. A Russian-brokered cease-fire in Transnistria has held firm since July 1992. The cease-fire established a tripartite peacekeeping force comprised of Moldovan, Russian, and Transnistrian units that have prevented a return to the use of force in the region. Moldova's Communist government has made resolution of the ongoing conflict a top priority, but it has been unable to make significant progress because of fundamental disagreements with the separatist authorities in Transnistria over the status of that region and continued tacit Russian support for the separatists.
After a breakdown in the five-sided talks on Transnistria in summer 2004 when Transnistrian authorities forcibly shut down Latin-script schools in the region, Moldova returned to the negotiating table in October 2005 after successfully lobbying the mediators (OSCE, Russia, and Ukraine) and the Transnistrians for the inclusion of the U.S. and EU as observers to the expanded "5+2 talks." The resumption of talks followed Moldovan support for a Ukrainian initiative for resolution of the Transnistria conflict that was put forward in spring 2005 by Ukrainian President Yushchenko and the passage of a Moldovan law and related parliamentary resolutions on Transnistria's status within Moldova. In June 2005, Moldova and Ukraine invited the EU to establish a border assistance mission to monitor the inspection of goods crossing the Ukrainian-Moldovan border (including along its Transnistrian segment) - a step meant to crack down on the flow of illegal goods. At the 5+2 talks in October 2005, the sides agreed to: continue discussions on an international assessment mission to evaluate conditions for free and fair elections in Transnistria; exchange military information as the first step in a package of Confidence and Security Building Measures; and set rough parameters for a mission to monitor military-industrial facilities in Transnistria. Despite these small steps forward, the sides remain far apart on the most important issues, namely, the final legal status of Transnistria and the removal of Russian troops and munitions from Moldovan territory in compliance with Russia's 1999 OSCE Istanbul Summit commitments. Moldova has engaged constructively on these issues at the 5+2 talks despite the uncooperative stance of the Transnistrian authorities and the Russians.
Section 498A(a)(5): "cooperate in seeking peaceful resolution of ethnic and regional conflicts."
At the November 1999 OSCE Summit in Istanbul, Russia committed to withdraw its military equipment identified under the Treaty on Conventional Armed Forces in Europe (CFE) by the end of 2001 and to withdraw its remaining military forces by the end of 2002. These commitments were reflected in the CFE Final Act and the Istanbul Summit Declaration. Ahead of schedule, Russia met its commitment to withdraw from Moldova all its equipment included in the CFE Treaty, despite significant Transnistrian opposition. However, Russia missed the original December 31, 2002 deadline for withdrawal of its military forces from Moldova and still has not completed the job. Moldova has supported OSCE efforts to work with Russia, Transnistrian authorities, and OSCE experts to move forward with withdrawal or disposal of remaining arms and ammunition stored at Russian depots in Transnistria. The U.S. and many other OSCE states have committed to assist with contributions to an OSCE Voluntary Fund to help defray the cost of destroying or removing the Russian ammunition stored in Moldova, provided all necessary accounting and verification requirements are met. At the December 2002 OSCE ministerial in Porto, Russia committed to complete the withdrawal as soon as possible and stated its intent to do so by December 31, 2003. Although important progress was made on Russian military withdrawal during 2001-2003, when Russia withdrew its heavy military equipment and more than 20,000 tons of stored munitions, since early 2004 there has been no movement whatsoever. Russia now claims that the Transnistrians will not allow them to complete the withdrawal until there is a comprehensive political settlement. There was no further progress toward fulfillment of the Istanbul Commitments concerning Moldova throughout 2005. The U.S. and other OSCE states have underscored that Russian political will and Moscow's readiness to use its considerable influence over the Tiraspol regime are the key to success. Moldovan authorities have been cooperative by continued insistence on fulfillment of the Istanbul commitments and by constructive efforts in the political settlement process despite Transnistrian obstructionism, as described in the preceding paragraph.
Section 498A(a)(6): implement responsible security policies, including -
(A) adhering to arms control obligations derived from agreements signed by the former Soviet Union;
(B) reducing military forces and expenditures to a level consistent with legitimate defense requirements;
(C) not proliferating nuclear, biological, or chemical weapons, their delivery systems, or related technologies; and
(D) restraining conventional weapons transfers."
Moldova has formally declared its willingness and intent to accept all of the relevant arms control obligations of the former Soviet Union. Moldova ratified the CFE Treaty on July 6, 1992 and the 1996 Flank Document on May 15, 1997. Compliance with these obligations has been good. Moldova participates in the CFE Joint Consultative Group and was an active participant in negotiations on adaptation of the CFE Treaty. At the 1999 OSCE Summit in Istanbul, Moldova elicited from Russia a commitment on withdrawal of Russian forces from Moldova in the context of signature, including by Moldova, of the Agreement of Adaptation agreement. Moldova has actively cooperated with efforts to overcome continuing problems resulting from the obstructive measures by the Transnistrian separatists to hinder Russian force withdrawals or to allow unimpeded CFE Treaty inspections and other inspections/observations of Russian forces located in the region and Russian unwillingness to fulfill their Istanbul withdrawal commitment. Moldova has regularly submitted its CFE Treaty data, including data as of January 1, 2006.
Moldova has provided Confidence and Security Building Measures (CSBM) annual data declarations regularly, including data as of January 1, 2006, and has willingly accepted CSBM inspections and evaluation visits in accordance with the OSCE Vienna Document.
Moldova's armed forces are reorganizing and developing, with U.S. assistance, a peacekeeping battalion capable of interoperation with international peacekeeping forces. This battalion will form the core of Moldova's armed forces, which have a current strength of about 6,900, including about 1,900 civilians. A portion of the battalion is deployed in the Moldovan/Transnistrian security zone. Moldova has contributed two contingents of soldiers to conduct post-conflict humanitarian assistance in Iraq. The first contingent, 40 soldiers, provided convoy security and de-mining expertise. The second contingent was comprised of 12 de-miners. Deployment of a third contingent was approved by the Moldovan Parliament on December 2, and the unit is expected to arrive by mid January 2006. Two Moldovan staff officers are serving on the staff of U.S.-led Multinational Division (North) in Bosnia. Moldova has one army officer serving as a liaison officer to CENTCOM in Tampa, Florida. These efforts are consistent with legitimate defense requirements as required by the statute.
The Government of Moldova has supported international nonproliferation efforts. Moldova acceded to the Nuclear Non-Proliferation Treaty (NPT), as a non-nuclear-weapon state, on October 11, 1994. The Government of Moldova signed a safeguards agreement with the International Atomic Energy Agency on June 14, 1996, but this has not yet entered into force. It has not yet concluded an Additional Protocol with the IAEA.
Moldova is a State Party to the 1993 Convention on the Prohibition of the Development, Production, Stockpiling, and Use of Chemical Weapons and on Their Destruction (CWC). In September 1997, Moldova became a member of the International Atomic Energy Agency. The U.S. considers Moldova to be a party to the Intermediate and Shorter Range International Nuclear Forces Treaty as a successor state to the Soviet Union. Moldova has taken no action that would call into question its commitments to that treaty.
In November 2004, Moldova's parliament ratified the 1972 Convention on the Prohibition of the Development, Production and Stockpiling of Bacteriological (Biological) and Toxin Weapons and on their Destruction (BWC).
In May 2002, penalties were imposed on two Moldovan entities, under the Iran Nonproliferation Act of 2000, for the transfer of equipment and technology on multilateral control lists to Iran. In May 2003, sanctions were again imposed on these entities and an individual under the U.S. Missile Sanctions Law; the sanctions were placed on private entities, not the Government of Moldova. On November 25, 2002, Moldova subscribed to the Hague Code of Conduct against Ballistic Missile Proliferation.
During 2005, there was no indication the Moldovan Government transferred conventional weapons to state sponsors of terrorism or other illicit destinations. Moldova has increased efforts to strengthen control over its borders, including participation by Moldovan customs and border guards in U.S.-assisted counter-proliferation programs designed to halt the flow of illicit WMD materials and conventional arms. Moldova issued new customs stamps in September 2001, with U.S. assistance, as required subsequent to its WTO admission, in an attempt to reduce smuggling operations across and along the Transnistrian part of the Ukrainian/Moldovan border. The GOM and the Government of Ukraine signed a Customs Protocol in May 2003, whereby the Ukrainian Government promised to honor only Government of Moldova-authorized customs seals, a positive step towards stopping the movement of contraband in the region. Unfortunately, Ukraine has not yet implemented the Protocol. The GOM introduced new embossed Customs stamps and seals, to limit the potential for forgery and fraud, at all Moldovan points of entry/exit in January 2004. Moldova is also attempting to set up joint Moldovan/Ukrainian border posts on Ukrainian territory along that portion of its border with Ukraine controlled by the Transnistrian separatists to minimize smuggling. To further increase GOM control over sensitive Transnistrian exports, in 2004 the U.S. assisted the GOM in outfitting twenty-two mobile customs inspection teams to patrol the "internal border" between Transnistria and Moldova. These teams will be augmented by the National Police to effectively provide coverage at nearly one hundred checkpoints where no previous inspection/enforcement capability existed. The U.S. also is continuing its efforts to cooperate with Moldova in strengthening Moldova's export control system, in terms of both industry compliance and enforcement capabilities - in particular, with respect to enhancing the Moldovan Government's ability to target and inspect suspicious cargo.
Section 498A(a)(7): "take constructive actions to protect the international environment, prevent significant transborder pollution, and promote sustainable use of natural resources."
While information on specific "constructive actions" undertaken by the Moldovan Government to reduce cross-border pollution is limited, Moldova is taking steps to reduce overall levels of pollution. Moldova ratified the Stockholm Convention on Persistent Organic Pollutants in February 2004 and developed a national implementation plan. Throughout 2005, the government and the Moldovan Ministry of Defense worked with the World Bank on a project to repack and safely store obsolete pesticides. In addition, NATO has provided funds to the Ministry of Defense for further pesticide elimination projects. In a December meeting to discuss obsolete pesticide disposal, the Ministry of Defense was encouraged to contact U.S. technical agencies, such as the EPA and USDA, to initiate joint collaboration in the environmental and agricultural sciences.
The U.S. cooperated with the EU in the creation of a Regional Environmental Center (REC) in Moldova, the mission of which is to strengthen civil society and support sustainable development by promoting public awareness and participation in environmental decision-making. The REC successfully executed one round of small project grants to environmental NGOs. In addition, Moldova has created a Joint Environmental Committee with Romania to broaden collaboration on regional environmental issues.
Section 498A(a)(8): "deny support for acts of international terrorism."
The Government of Moldova does not grant sanctuary from prosecution to individuals or groups that have committed acts of international terrorism or otherwise support international terrorism. Moldova is a party to ten international counterterrorism conventions, has signed the recently adopted International Convention for the Suppression of Acts of Nuclear Terrorism, and has committed to signing and ratifying two more conventions no later than 2007: the Convention on the Suppression of Unlawful Acts against the Safety of Maritime Navigation and the Protocol for the Suppression of Unlawful Acts against the Safety of Fixed Platforms Located on the Continental Shelf.
Following the September 11, 2001 attacks in the U.S., Moldova quickly passed the Law on Combating Terrorism on October 12, 2001, a new anti-terrorism law that provides the legal framework for combating terrorism, sets out the rights and obligations of law enforcement agencies, and details the manner in which the agencies will be coordinated and supervised. The Moldovan Government has cooperated with all USG requests on blocking terrorism financing.
Section 498A(a)(9): "accept responsibility for paying an equitable portion of the indebtedness to United States firms incurred by the former Soviet Union."
In October 1991, shortly before the Soviet Union dissolved, Russia and nine other Soviet republics, including Moldova, signed a Memorandum of Understanding declaring themselves jointly and severally liable for the foreign debts of the former Soviet Union (FSU). In December 1991, Russia and seven other republics signed an agreement that assigned to each of the Newly Independent States shares of both all the external assets and all foreign debt of the FSU. Moldova did not sign the December 1991 agreement.
In 1992, Russia sought to replace the principle of joint and several liability with full liability for the foreign debt of the FSU in return for all the external assets of the FSU. On October 19, 1993, Moldova signed a "double-zero option" agreement with Russia under which Russia agreed to assume Moldova's share of the foreign debt of the FSU debt in return for Moldova's share of the FSU's external assets. The December 1991 agreement provided that Moldova's share of the FSU debt would be 1.29 percent.
(Please see section 498A(a)(9) of the Russia assessment regarding indebtedness to the United States incurred by the former Soviet Union.)
Section 498A(a)(10): "cooperate with the United States Government in uncovering all evidence regarding Americans listed as prisoners-of-war, or otherwise missing during American operations, who were detained in the former Soviet Union during the Cold War."
The U.S. effort to uncover evidence of American POWs and MIAs in the former Soviet Union is being conducted through the U.S.-Russian Joint Commission on POWs/MIAs, established in March 1992. Moldovan officials warmly welcomed the U.S. side of the Commission in August 1995. With the full support of the Moldovan Government, the U.S. Chairman also made an appeal to the people of Moldova, asking them to come forward with information. Moldova has also fully supported subsequent inquiries in Moldova.
Section 498A(a)(11): "terminate support for the communist regime in Cuba, including removal of troops, closing military and intelligence facilities, including the military and intelligence facilities at Lourdes and Cienfuegos, and ceasing trade subsidies and economic, nuclear, and other assistance."
We have no evidence from which to conclude that the Government of Moldova is providing military, intelligence, economic, nuclear, or other assistance to the Government of Cuba.
CHECKLIST FOR GROUNDS OF INELIGIBILITY
UNDER SECTION 498A(B) OF THE FOREIGN ASSISTANCE ACT OF 1961
Section 498A(b)(1): Has the President determined that the Government of Moldova has "engaged in a consistent pattern of gross violations of internationally recognized human rights or of international law"?
No. The President has not made such a determination at this time. Much more work clearly remains. We remain committed to addressing these problems not only through diplomatic efforts but also through assistance programs.
Section 498A(b)(2): Has the President determined that the Government of Moldova "has failed to take constructive actions to facilitate the effective implementation of applicable arms control obligations derived from agreements signed by the former Soviet Union"?
No. The President has not made such a determination at this time.
Section 498A(b)(3): Has the President determined that, after October 24, 1992, the Government of Moldova "knowingly transferred to another country --
(A) missiles or missile technology inconsistent with the guidelines and parameters of the Missile Technology Control Regime (MCTR); or
(B) any material, equipment, or technology that would contribute significantly to the ability of such country to manufacture any weapon of mass destruction (including nuclear, chemical, and biological weapons) if the President determine(d) that the material, equipment, or technology was to be used by such country in the manufacture of such a weapon"?
No. The President has not made such a determination at this time. Penalties for proliferation-related activities have been imposed on Moldovan entities; however, these penalties relate only to the entities involved in such activities and do not apply to the Government of Moldova. In May 2002, penalties were imposed on one Moldovan entity and one Moldovan individual under the Iran Nonproliferation Act of 2000, for the transfer of equipment and technology on a multilateral control list to Iran. Those penalties expired in May 2004. Additional sanctions were imposed on these entities and an individual in May 2003 pursuant to the Arms Export Control Act, as amended, and the Export Administration Act of 1979, as amended, for the transfer of MTCR-controlled items to Iran. Those penalties expired in May 2005.
Section 498A(b)(4): Is the Government of Moldova "prohibited from receiving such assistance by section 101 or 102 of the Arms Export Control Act or sections 306(a)(1) and 307 of the Chemical and Biological Weapons Control and Warfare Elimination Act of 1991?"
No. We do not have information from which to conclude that the Government of Moldova is prohibited from receiving assistance under these statutes.
Section 498A(b)(5): Has the President determined and certified to the appropriate congressional committees that the Government of Moldova "is providing assistance for, or engaging in non-market based trade (as defined in section 498B(k)(3) with the Cuban Government? If so, has the President taken action to withhold assistance from Moldova under the Foreign Assistance Act within 30 days of such a determination, or has Congress enacted legislation disapproving the determination within that 30-day period?"
No. The President has not determined that the Government of Moldova is providing assistance for, or engaging in any non-market-based trade with, the Cuban Government.
