Opinion – The geopolitics of the Moldova wine industry Trendy Blogger

Opinion – The geopolitics of the Moldova wine industry

 Trendy Blogger

The Republic of Moldova was deeply affected by the war in Ukraine. War seriously affected Chisinau -Moscow relations to the point that Russia has reduced energy supplies to Moldova, forcing Chisinau to completely revise its energy security strategy – a painful and expensive process for the country and its population. However, President Maia Sandu, re -elected at the end of 2024, remained firm in his support for kyiv. On the other hand, the sectors of the Moldova economy are better suited to war and its consequences, in particular the famous Moldova wine industry. The main reason why the wine industry has generally not suffered due to the war was that Russia previously applied sanctions in 2006 and 2013-2014, against Moldova which had forced Chisinau to seek new markets And partners, thus reducing the country’s dependence on the country the Russian wine market.

The 2006 ban was a punishment for the refusal of Chisinau of the Kozak memorandum, Moscow’s proposal to “solve” the frozen conflict between Moldova and the transistria separatist region. A secondary reason was Chisinau accepting a border control regime with kyiv. The 2013 commercial restrictions were Moscow’s response to the signing by Moldova of the association agreement with the European Union. By 2014, these restrictions have expanded to include customs prices in 19 categories, which represents around 10% of total Moldova exports in 2013. The prohibition has seriously had a 2014 impact – resulting in a contribution significant negative for GDP growth.

The Moldavians are proud of their wine, a vital pillar of the country’s economy and its history, so Chisinau was not going to let this industry rot. In 2013, the same year as sanctions, Chisinau created the National Office of Vine and Wine (OFICIUL National Al Viei Si Vinului: ONVV) to serve as a public affairs office to attract new customers. The Russian market closed, Moldova has sought to diversify its customers, which rides the diplomatic (and security) partners close to the government: the United States and Europe. The United States is now the main destination of the country for bottled wine, representing 33% of total exports, followed by Romania with 16% and Cheche with 8.1%. Other destinations are Poland and the Baltic States. According to the ONVV, the country exports to 70 countries. For comparison, in 2023, only 2.6% of Moldovan wines were exported to Russia, compared to 81% in 2000.

Chisinau actively hires new potential customers. In November 2024, more than 165 business meetings in companies took place between Moldovan producers and German buyers in Hamburg. Germany becomes one of the fastest growth markets for Moldovan wines in 2024, recording an increase of 112% compared to the previous year. Moldova wines also gain significant traction in non -traditional markets such as Japan. Victor Bostan, director of a leading Moldavian cellar, highlights the need for bilateral actionsts to secure reduced price quotas for Moldavian wines. For example, Turkiye offers a limited quota for wine imports at reduced tax rates, which could be widened. Similar opportunities could also be sought with China to increase export volumes.

Overall, in 2023, Moldova exported 123 million liters of wine, worth $ 192 million US dollars, marking an 18% increase in volume and a 24% increase in value compared to 2022. In the first SEME sent to international markets – an increase of 17% compared to the same period in 2023. The total value of these exports reached $ 110 million, which represents growth of 21%. The country is among the 20th largest wine producers in the world. Today, 3.8% of Moldovan agricultural land is dedicated to vineyards, contributing 3% of GDP and employing 15% of the active population. Given that the small European nation has a global population of around 2.6 million, it is easy to see the importance of the wine industry for the means of subsistence of many Moldovans. As the Sandu administration wants Moldova to join the European Union by the end of the decade, the protection of the wine industry will be a sensitive subject in negotiations with Brussels, since the Union has many global powers in the wine industry.

Since the start of the war in Ukraine, President Sandu has taken a strong position against Moscow, not only by supporting kyiv but also by breaking the historical relationship between the two countries. Moldova is no longer based on Moscow and Gazprom for Energy Safety. In addition, Sandu directed the application of Moldova to the EU, making the head of the iron of Eastern Europe, while other European leaders move in their attitude towards Moscow. The president’s strategy advances after the successful re-election of Sandu and justly winning a pro-Europe referendum at the end of 2024. However, the decoupling of the Moldova of dependence on Russia for the wine trade dates back to more than A decade due to the 2006 and 2013-2014 sanctions. Ironically, the measures that harm the economy and Moldavian industries at the time finally made the wine industry more resilient when the war in Ukraine began since exports and commercial efforts were already targeted elsewhere.

A brief comparison can be made with Georgia, which remains deeply dependent on Russia for wine trade – in January -October 2024, the country’s wine exports totaled $ 237 million, Russia representing 68%. While the success of the Party Dream Pro-Moscow is a turning point for Georgia, the Caucasian country wine industry continued to be strongly dependent on Russia despite the 2008 Russian-Georgian war and the loss of Abkhazia and South Ossétie.

Wine is not only a source of pride for Moldovans but a vital pillar of the country’s economy. Moldova wine exports depend not only on the quality of Moldovan wine or marketing campaigns successful by the government, including ONVV, to attract new customers but also to the impact of geopolitical developments that countries choose to acquire their wine. Nowadays, the Allies and the Moldovan partners appreciate Moldovan wine.

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