Moldovan parliament proposes new regime for strategic investments

The parliament today supported, in the first reading, a draft of the new Law on Investments, which establishes a distinct legal regime for strategic investments and provides clearer and more predictable conditions for local and foreign investors. The document was presented in plenum by Oleg Bivol, State Secretary at the Ministry of Economic Development and Digitalization. The official emphasized that the new law aimed to modernize the investment framework and align it with the European Union acquis.

“The first element is the modernization of the investment framework of Moldova. Broadly speaking, the institutional framework established more than two decades ago by Law No. 81 of 2004 is being replaced with a modern framework adapted to the new economic realities, new opportunities and our country’s European path,” Oleg Bivol said.

The state secretary noted that, in recent years, both Moldova’s economy and the international investment environment had changed fundamentally.

“Today, competition is not only about attracting and implementing investment-attraction instruments, but also about investments in modern fields: advanced technologies, high-value-added products, energy, semiconductors, research and development, green technologies and modern infrastructure,” the official said.

According to the cited source, Moldova needs both instruments to protect investments already made and mechanisms that would enable the state to attract and facilitate new investments.

“Moldova seeks to become more competitive in attracting new investments and, in particular, strategic investments that would accelerate the country’s economic development,” the state secretary noted.

A central element of the draft law is the establishment, for the first time, of a clear regime for strategic investments through the introduction of a separate chapter dedicated to them.

Thus, an investment may be classified as strategic, if it has a value of at least 10 million euros and is made in a priority sector for the country’s economic development.

“An investment could be classified as strategic, if it meets the two criteria expressly established in Article 13: broadly speaking, it has a value of at least 10 million euros and is made in a priority sector for the country’s economic development,” Oleg Bivol underlined.

Priority sectors include research and development, digital technologies, the IT industry, energy, processing, mineral resources, waste recycling, transport, communications and healthcare.

“Through this approach, the state is sending a clear signal to investors: Moldova is open to large-scale investments,” the official specified.

Investments exceeding 20 million euros may benefit from land-related facilities—transferring publicly owned land from the private domain into a loan for use or superficies arrangement, without payment of annual rent or royalty, for a period of up to 49 years, as well as exemptions from compensating losses caused by the removal of land from the category of agricultural land.

For projects valued at more than 40 million euros, the government may conclude investment agreements with economic operators. According to the authors, these agreements will allow for the clear establishment of investor’s commitments and the support provided by the state, reducing institutional risk and enhancing the reliability of major projects.

The draft law prohibits subjecting investors to arbitrary constraints or disproportionate administrative measures that would unjustifiably limit their freedom to invest in Moldova. Transparency is also emphasized. Investment notices will be required to be published in internationally used languages. The new law will also address the digitalization of interactions with public authorities and establish the legal framework for investment agreements with the government, without preferential clauses that could undermine fair competition.

Another component of the draft law is the alignment of investment legislation with the European Union acquis. The document partially transposes four European regulations concerning such areas as semiconductors, “net-zero” technologies, critical raw materials and European mechanisms for resolving investment disputes.

The draft normative act was prepared by the Economic Development and Digitalization Ministry, in the context of Moldova’s commitments related to the European integration process, as well as on the basis of strategic planning documents concerning economic growth and the stimulation of investments in sectors with high growth and innovation potential.