Latvia is developing its relations with Moldova on the principles of bilateral co-operation and its status as a member state of the EU and NATO. Bilateral relations between both countries are friendly and constructive. Moldova is one of Latvia's priorities under the European Neighbourhood Policy. Relations have particularly intensified in recent years, as Moldova has been chosen as one of priority countries, which receives Latvia's assistance as part of the development co-operation policy.

Chronology of diplomatic relations

Moldova recognised Latvia's independence on 26 August 1991. Diplomatic relations between both countries were established on 1 September 1992. Latvia has accredited Mr Andris Vilcans as its Ambassador to Moldova (with residence in Kiev). At the end of 2005, with the appointment of Charge d'Affaires ad interim Andzela Ponomarjova, the Embassy of Moldova has also started its operation in Riga. On 14 November 2006, Eduard Melnic was accredited as the Ambassador of Moldova to Latvia. On 30 October 2007, Atis Sjanits was accredited as the Ambassador of Latvia to Moldova (with residence in Kiev). Latvia's Honorary Consul in Moldova is Valeriy Dragnev with residence in Chisinau. Moldova's Honorary Consul in Latvia is Vladimir Buruiana, with residence in Riga.

Common Application Centre for visa issuance

From 12 April 2007, Moldovan nationals and other individuals legally residing in Moldova are able to apply for the receipt of Latvian visas at the Common Application Centre located at the Hungarian Embassy in Chisinau.

The Common Application Centre is a European Union pilot project. The centre was established with the aim to ease the entry of the citizens of Moldova into the European Union, as many EU member states have not yet opened their diplomatic and consular representations in Moldova.

Most prospective areas of co-operation

• Sharing Latvia's experience in the implementation of democratic, institutional and economic reforms;
• Identifying economic interests and intensifying co-operation;
• Expanding bilateral contractual framework;
• Co-operation between Parliaments and the sectoral ministries.

Latvia's assistance to Moldova

Moldova is the first country to receive Latvia's assistance under the bilateral development co-operation programme.

Latvia assists Moldova in the implementation of public administration reforms, in promotion of economic and social development and strengthening of democratic society, in environmental protection and in other areas.

As part of bilateral co-operation, the State Border Guard of Latvia has been involved in the sharing of its experience with the Moldovan Border Guard since 2005.

Within projects, the co-operation between the prison administrations, customs institutions as well as local authorities and non-governmental organisations has taken place. 

In 2006, the Saeima of Latvia with support from UNDP Moldova implemented an institutional capacity-building project for the Moldovan Parliament. On 21 May 2007, a Latvian, Moldovan and Swedish Parliamentary Co-operation Memorandum was signed on capacity building within the Moldovan Parliament in the areas of European integration and the harmonisation of legislation.

Latvian experts (3 customs officers and 5 border guards) took part in the European Union Border Assistance Mission for the Republic of Moldova and Ukraine (EUBAM) launched in 2005. The main objectives of the mission are to raise the professional capacity of the Ukrainian and Moldovan border guard and customs authorities, to assist in combating customs fraud, illicit trade and corruption as well as to facilitate information exchange and co-operation between the border guard and customs services.

Parliamentary Co-operation

On 23 November 2006, the Group of Deputies for co-operation with the Moldovan Parliament was established under the 9^th Saeima. Aleksandrs Golubovs (Saskanas centrs) was elected Chairman of the Group.

In the Parliament of Moldova, the Moldovan - Baltic States Friendship Group was set up, headed by Jurie Rosca, Deputy Chairman of the Parliament.

In 2003, the Latvian and Moldovan parliamentary friendship groups signed a co-operation agreement.

Economic co-operation

Latvia wishes to facilitate further development and expansion of its co-operation with Moldova. Moldova has also reiterated its interest in the development of economic links and business contacts with Latvia. To promote such contacts, an Agreement between the Government of the Republic of Latvia and the Government of the Republic of Moldova on Economic, Industrial, Scientific and Technical Co-operation was concluded on 11 May 2007. The agreement envisages the establishment of and inter-governmental commission on co-operation in economy, science and technology; the commission is expected to convene on a bi-annual basis.

Trade

(according to data of the Central Statistical Bureau of Latvia)

January – December 2006

• Exports

1. Lithuania – 626,740,647 EUR or 14.11% of total exports from Latvia

2. Estonia – 538,234,608 EUR or 12.12%

3. Germany – 447,816,470 EUR or 10.07%

4. Russian Federation – 415,342,445 EUR or 9.37%

5. United Kingdom – 352,497,937 EUR or 7.93%

...

38. Moldova – 8,061,978 EUR or 0.18%

• Imports

1. Germany – 1,278,230,457 EUR or 15.02% of total imports to Latvia

2. Lithuania – 1,090,232,705 EUR or 12.81%

3. Russian Federation – 710,081,879 EUR or 8.32%

4. Estonia – 642,801,715 EUR or 7.56%

5. Poland – 596,234,160 EUR or 7.01%

...

51. Moldova – 3,519,724 EUR or 0.04%

Latvia has a positive trade balance with Moldova for the amount of EUR 4,497,254.

Main exports to Moldova by type of commodity, 2006

Main imports from Moldova by type of commodity, 2006

Trade dynamics between Latvia and Moldova from 1999 to 2006

*Calculated on basis of the average annual exchange rate USD / EUR

Investment

As of 26 April 2007, Moldovan investment in the equity of the companies registered in Latvia amounted to 0.265 million LVL (62^nd place) (Lursoft data).

There were 38 Moldovan-Latvian joint ventures listed in the Register of Enterprises of the Republic of Latvia. (Lursoft statistics from information of the Register of Enterprises, as of 26/04/2007).

Legal framework

At present a number of bilateral agreements have been concluded, and both countries are working to expand the legal base.

Agreements

• Agreement on Legal Assistance and Legal Relations in Civil, Family and Criminal Matters (signed on 14 April 1993, effective as of 18 July 1996);
• Agreement on International Road Transport (signed on 08 June 1995, effective as of 25 March 1996);
• Protocol for Co-operation and Consultations between the Foreign Ministries of Latvia and Moldova (signed and effective as of 8 September 1995);
• Agreement for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with respect to Taxes on Income and on Capital (signed on 25 February 1998, effective as of 24 June 1998, applicable as of 1 January 1999);
• Agreement between the Ministries of Agriculture on Economic, Scientific and Technical Co-operation (signed and effective as of 22 September 1999);
• Agreement on Exploitation of the Harbours of the Republic of Latvia for Processing and Transportation of the Cargoes of the Republic of Moldova (signed on 22 September 1999, effective as of 8 March 2000);
• Agreement on the Promotion and Reciprocal Protection of Investments (signed on 22 September 1999, effective as of 14 April 2000);
• Agreement on Co-operation in Combating Terrorism, Illicit Trafficking in Narcotic Drugs, Psychotropic Substances and Precursors and Organized Crime (signed on 29 May 2003, effective as of 19 December 2003);
• Agreement on Co-operation in the Field of Tourism (signed on 6 November 2003, effective as of 11 February 2004); 
• Protocol to the Partnership and Co-operation Agreement establishing a partnership between the European Communities and their Member States, of the one part, and the Republic of Moldova, of the other part, to take account of the accession of the new member (signed on 30 Apr 2004, effective as of 1 March 2005);
• Agreement between the Ministries of Environment on co-operation in environmental protection (signed and effective as of 17 March 2006);
• Agreement between the Ministries of Defence on co-operation in defence sector (signed on 3 April 2006, effective as of 25 May 2006);
• Agreement on development co-operation (signed on 3 April 2006, effective as of 26 July 2006);
• Agreement between the Government of the Republic of Latvia and the Government of the Republic of Moldova on Co-operation in the Field of Education, Culture, Youth and Sports (signed on 7 September 2006, effective as of 11 December 2006).
• Agreement between the Government of the Republic of Latvia and the Government of the Republic of Moldova on Economic, Industrial, Scientific and Technical Co-operation (signed on 11 May 2007, effective as of 27 June 2007)
• Agreement between the Ministries of Justice (signed on 11 May 2007, not yet effective)

Visits and meetings