Moldova Opposition Spies Hidden Traps in Russian Loan

The opposition Pro Moldova parliamentary group appealed to the Constitutional Court on Thursday over the legality of a 200-million-euro loan from Russia, urging the judges to give a verdict urgently, as parliament was about to ratify the agreement.

The future of the appeal was in question, however, after parliament on Thursday promptly ratified the agreement, with the joint votes of the ruling Socialist and Democratic Parties.

The loan agreement, signed in Moscow on April 17, has generated debate in Moldova due to what some see as its controversial provisions. 

Under the agreement, the Russian side will transfer the first 100 million euros within 30 days of the entry into force of the agreement. The second tranche will follow no later than October 31, just ahead of presidential elections due in Moldova in November.

President Igor Dodon announced in November 2019 that the promised loan would be used to turn Moldova a "a construction site", and would focus on an ambitious plan to build and repair roads. Under the loan provisions, Russian companies can participate in road-building tenders in Moldova. 

The opposition complains that the negotiations were not transparent, and took place behind closed doors. Pro Moldova deputy Sergiu Sarbu insisted that the agreement favoured Russian companies, and notes, among other things, that disputes will not be able to be resolved in international arbitration.

He also noted that any loan taken out by a private company in Moldova from the Russian banks, and guaranteed by the Moldovan state, will automatically turn into part of Moldova's state debt if it is not repaid by the private company.

Former Prime Minister Maia Sandu criticised the same provision that allows the Russian side to...