Social

Moldova railway auctions assets to pay wage debts

Amid a deep financial crisis and millions of lei in unpaid wages, Moldova’s state railway company, Calea Ferată a Moldovei (CFM), is once again auctioning off locomotives, railcars, and other assets.

The company hopes the sale will help raise the necessary funds to cover at least part of the outstanding salaries.

Between April 16 and 25, CFM will hold four auctions: three with progressively reduced prices and one as an open-outcry auction. The items up for sale include:

In addition, the auctions will include various scrap materials—both ferrous and non-ferrous metals—as well as unused spare parts.

As of late January, official data showed that CFM had accrued over 156 million lei (~€8,000,000) in unpaid wages owed to 4,997 employees. These debts accumulated between August and December 2024. Management hopes the asset sales will at least partially alleviate the financial burden on the company and allow it to settle some of the outstanding wage obligations.

CFM’s financial problems date back to 2009, when freight volumes dropped by more than half. The decline continued in 2016 and worsened significantly in 2022 after Ukraine reopened the Port of Odesa, leading to a sharp decrease in cross-border rail transit. These developments severely affected CFM’s revenue and resulted in increasingly frequent delays in wage payments, leaving many employees with months of unpaid salaries.

In an attempt to ease the financial strain, CFM also held auctions last year to sell outdated railcars and spare parts. However, those measures proved insufficient to stabilize the company’s financial position.

To address the situation, the Moldovan government is proposing to revive CFM’s operations through sustained investment in infrastructure. Under a multi-year agreement currently undergoing public consultation, the state would allocate 400 million lei annually for the next five years to maintain and modernize the railway network. This agreement is to be signed between the Ministry of Infrastructure and CFM.

Translation by Iurie Tataru

Ecaterina Arvintii

Ecaterina Arvintii

Author

Read more

Authorities from Chisinau react to the devastating attack in Sumy
Social

Authorities from Chisinau react to the devastating attack in Sumy

President Maia Sandu and Parliament Speaker Igor Grosu strongly condemned the missile attack launched by the Russian army on the Ukrainian city of Sumy, which killed at least 21 people and injured 83 others. The two officials expressed solidarity with the Ukrainian people and called for the Kremlin regime to be held accountable for the crimes committed.

Daniela Savin Daniela Savin

Daniela Savin

Subsidies spur viticulture modernization in the Republic of Moldova
Social

Subsidies spur viticulture modernization in the Republic of Moldova

Subsidies play a crucial role in the modernization of viticulture, a sector that enhances the Republic of Moldova's reputation in the global market, thanks to its award-winning wines. The financial support provided by international partners and the government enables winegrowers to invest in high-quality vineyards and acquire advanced technologies. This year, the government is offering subsidies of 300,000 lei for each hectare planted with local grape varieties.

Valeria Tăbîrță Valeria Tăbîrță

Valeria Tăbîrță

Honey from the Republic of Moldova meets standards: about 80% reaches European markets
Social

Honey from the Republic of Moldova meets standards: about 80% reaches European markets

After the European Union imposed stricter rules on honey imports, Chisinau government amended the legislation so that beekeeping products meet the standards for labelling and processing of the product. Annually, our country produces approximately five thousand tons of honey, and 80% of this is exported, mostly to the EU.