Moldovan ambassador: Russian aggression is highly destabilizing for Moldova
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We interviewed Oleg Tulea, the Moldovan ambassador to Budapest, who has been serving in the Hungarian capital since 2016. He talked about the severe dangers of the ongoing Russian invasion in Ukraine created for his country, why he recommends Moldovan touritst to visit Hungary, what his favourite three Hungarian cities are, and why wine is the pride of the Moldovan people.
DNH: Had you visited Hungary in the past before you were appointed ambassador to Budapest? What was your first thought when you were told that the Hungarian capital would provide the setting for the next important chapter in your life?
I visited Hungary several times before being posted in 2016, mainly in the capacity of Member of the Parliament of the Republic of Moldova and part of the Moldovan – Hungarian Friendship Group in our legislative body. I visited Hungary privately as well, being always fascinated by the marvelous Budapest, the pearl of Danube River. It is still fun to notice that places that you visit as a tourist become part of your usual environment while living and working for a longer period.
DNH: Tell us a little about yourself and your previous professional experience. Do you work as a diplomat in the traditional sense, or you rather consider yourself a career diplomat?
My career as a diplomat started in 2016 here in Hungary. Serving in the Parliament and Government before, I took this challenge to start a new page in my professional career. I was appointed as Ambassador to Hungary, but also as a non-resident Ambassador to Republic of Croatia, Republic of Slovenia, Bosnia and Herzegovina and the Permanent Representative of the Republic of Moldova to the Danube Commission.
What we could see from the beginning when coming to Budapest is that relations between Hungary and Moldova are really very good and open and I pledged to make every effort so that my work here renders tangible results. The fact that Republic of Moldova and Hungary are bonded with a Strategic Partnership since 2020 I take as a proof of our Embassy team’s efforts. For nine months in 2020, I had the honor to serve in the capacity of the Minister of Foreign Affairs and European integration of the Republic of Moldova and in November 2020, I was posted back to Budapest for a new mandate as Ambassador.
DNH: Moldova is only 1000 kilometers from Hungary; hence, we are very close. What kind of Hungarian products can you find in Moldova? And what Moldovan products are available here for Hungarian customers?
We are close indeed to each other, yet to discover each other in terms of trade and economy. Our bilateral trade is constantly growing, still it will be hard for Hungarian or Moldovan consumers to link one product with the country of origin. The biggest share in our bilateral trade are industrial goods and pharmaceuticals. The volume of foreign trade of the Republic of Moldova with Hungary in 2021 recorded the amount of 163.40 million. USD.
In 2021 Republic of Moldova’s export of goods to Hungary recorded the amount of 41.80 million USD (increased 1.5 times compared to 2020). Hungary’s exports to the Republic of Moldova in 2021 recorded the amount of 121.59 mln. USD (+21% compared to 2020).
As you see the trend is positive which means that there is a lot of untapped potential in our economic and trade cooperation.
An element that is certainly helping this process is of course the successful activity of the OTP Bank on the financial-banking market of the Republic of Moldova, which gives greater confidence to Hungarian businessmen to invest and start business in the Republic of Moldova. The pharmaceutical company Gedeon Richter and Vitafort, specialized in animal feed supply are also important reference names.
And even if the agriculture is strong in both countries, we witness an increased interest for our agricultural products on Hungarian market. Just recently, several producers of fresh fruit and vegetables launched exports to Hungary from the Republic of Moldova.
DNH: In our previous conversation, you mentioned that Moldova was an IT superpower. What exactly did you mean by that? And how did your country achieve this enviable status?
The IT industry is undoubtedly the most dynamic and one of the fastest-growing economic sectors in Moldova having all the necessary ingredients for a rapid and impactful digital transformation: advanced infrastructure, developed ICT private sector, authorities’ commitment focused on digital transformation, as well as a well-prepared society for accepting and using digitalization.
It offers the highest salaries, employs the youth and the creative people, digitally transforms the entire society, and is a Government top priority. The information and communications technology industry has become one of the locomotives of economic growth in the Republic of Moldova in recent years.
Moldovan IT companies successfully compete with European companies in such market segments as development and support of software, mobile applications, network and database administration and export about 80 percent of their total production. Major Moldovan partners in this area are the United States, the UK, France, Germany, the Netherlands and Romania.
And yes, already for several consecutive years, the Republic of Moldova exports more ICT products than wines.
Moldova has a strong pool of current and emerging ICT professionals: annually over 2,000 students graduate with a degree in ICT, engineering, modern technologies, and a variety of other technical fields. A number of initiatives already support mainstreaming digital tools at all levels of the educational system, such as: Tekwill in every school, Future Classroom initiative, National Program for Digital Literacy among Teaching Staff, as well as the online educational platforms.
Most Moldovan IT specialists speak at least one foreign language in addition to Romanian and Russian. Salaries remain competitive and some ICT companies struggle to retain skilled employees seeking higher paying jobs in the region. It is estimated that the current workforce size of Moldova’s ICT Industry is almost 30,500 specialists. Well over 80% are technical specialists, including software engineers, business analysts, QAs and testers, developers, product and project managers. The employee recruitment rate in IT companies in Moldova is 29.1%, according to the Paywell study, performed by PwC Moldova in 2021, which is more competitive due to the increased number of companies who chose to open a business in Moldova
Our country is a competitive alternative to “traditional” IT destinations, especially as a location for software development or call centers. Moldova has one of the best—and cheapest—Internet connections in the world. Mobile network operators offer excellent internet connections.
It is important to emphasize at the same time that a special law on Virtual IT Parks and the creation of IT Park Moldova is one of the main reasons behind such fast growth. It was created in 2017 at the initiative of the government. As expected, the incentives offered by the Moldova Innovation Technology Park gave a significant boost to the ICT sector development. This virtual structure today unites 1,200 resident firms, all of which pay a flat income tax of only 7% (applied 7% single tax on turnover which covers a set of social taxes). Moldova IT Park has been recognized by the International Telecommunication Union (ITU) as one of the best global practices in promoting and developing the IT ecosystem. The award was presented at ITU Telecom World 2019 which took place in Budapest, Hungary.
DNH: Your country is bordered by the “Transnistrian Republic” to the east. How would you describe your current relationship? How should one imagine this “state” which is officially part of Moldova, receives support from Russia but is not recognized by any UN member countries?
The unresolved conflict in the Transnistrian region of the Republic of Moldova remains the main challenge to the sovereignty, territorial integrity, and security of the Republic of Moldova. The Moldovan Government is firmly determined to identify, with the help of its international partners, a peaceful, comprehensive, and sustainable solution for the conflict, based on respect for the sovereignty and territorial integrity of the Republic of Moldova within its internationally recognized borders.
Certainly, the war in Ukraine has affected the prospects of the Transnistrian settlement process. Pre-war plans to hold a 5+2 round in May and the informal conference in Bavaria in July were cancelled. Our goal is to keep the 5+2 format “alive”, because it already includes all relevant actors for the conflict resolution process. The next 5+2 meeting will probably take place after the resolution of the conflict in Ukraine.
I wish to emphasize once again, the Republic of Moldova wants to solve the Transnistrian conflict through peaceful dialogue and diplomacy.
What we see is that also the absolute majority of citizens in the Transnistrian region doesn’t want to live in a war zone and wants peace, the companies from the region export their good on EU market mainly.
But with the current developments in the neighboring Ukraine, the activity of those forces that want to fuel destabilization is becoming more visible.
On the other hand, the war in Ukraine has created the premises for a more intense interaction between Chisinau and Tiraspol using all existing negotiation formats to identify viable solutions to the most urgent problems faced by the residents on both banks of the Dniester. The competent authorities of the Republic of Moldova do not currently notice imminent military and security risks from the Tiraspol structures, but at the same time we, of course, are carefully monitoring the developments in the region.