Population: 4.5 million inhabitants (2006 estimation).
Urban population: 47 %.
Population density: 133 inhab./km².
Annual population growth: - 0.5 %.

Origin of the population:
Moldavan 67.5 %.
Ukrainian 13.7 %.
Russian 12.8 %.
Gagaouzes 4 %.
Bulgarian 2 %.

Official language: Moldovan. The majority of the population can speak Russian, which is used for communication between different ethnicities.

Religion: Orthodox Christianity (98.5 %).

Administrative subdivisions
Moldova is divided into 32 regions, 3 municipalities (Chisinau, Balti et Tighina), two semi-autonomous regions (Gagaouzie and the successionist region Transnistrie). The former is a self-proclaimed Republic that the Moldovan Government does not control and which possesses all the attributes of power (constitution, flag, government, army, currency). However, no state recognises the independence of Transnistrie.

Capital: Chisinau (750 000 inhabitants)
The Moldovan capital is divided into 5 administrative sectors. Chisinau and its suburbs consist of 18 administrative areas: the city itself, 6 small cities, 8 towns and 3 villages. The local governing body is the Chisinau council.

There are three other large cities in Moldova: Balti (161 000 inhab.), Tighina (130 900 inhab.)and Tiraspol (266 900 inhab.); 61 average sized towns and 1611 villages.

Geology
Moldava is the smallest State of the CIS (Commonwealth of Independent States). It covers 33 700 km². It is situated in the Southeast of Europe, between Romania (to the east) and Ukraine (to the north, east and south).

Relief
The high land in the north of the country forms a fertile plain. Average altitude is 147m, but here in this area, it reaches 429m.

Climate
Moldova has a temperate continental climate. Winters are cold, with temperatures between 3° and 5°C in January. Summers are warm and sunny, average temperatures are around 24°C, but temperatures of 40°C can sometimes be reached in July. Precipitation is low and irregular. In the South, levels only reach 350mm per year. In the high regions, annual rainfall can be up to 600mm per year. The rainfall pattern is reflected in the river levels, which can often be very high in spring and very low in summer.

 
Natural resources
The main sites and natural resources in Moldova are: brown coal, phosphoros, gypsum, limestone, sand, gravel, building stone and farmable black earth. Oil and brown coal have also recently been discovered in the country. The geographical position of Moldova is the reason for its wide range of vegetation, which includes around 2300 species of wild plants. Forests cover 10% of land in Moldova and mainly consist of hardwood trees. Most steppes have now been replaced by cultivated land (65%). Moldova has a rich agriculture sector. Cereals, vergetables, fruits and grapes are all grown there. The fauna is very varied, with around 70 species of mammals, 270 species of birds and 10000 species of non-vertebrates. Chemical products have been used on the land for many years, resulting in threatened fauna and water, which just like the land, is polluted, mainly with nitrates.

Politics
Moldova is a parliamentary democracy. The Parliament is elected for four years and is composed of 100 MP’s. The Government and the Prime Minister, Vladimir Voronine, who was reelected by MP’s in 2005 for four years, share executive power.

Economics and finance

-GDP: 2 595 million USD in 2004 (7.1 % growth in 2004 and 7.3 % in 2005).
-GDP per head: 620 USD (2004).
-The private sector contributes 60 % of the GDP (2005)
-Inflation rate: 13.3 % in 2005 according to the IMF; 12.5 % in 2004 (-18 % compared to 2003).
-Unemployment rate: 2005: 7.3 (2004:8.1)
-Average monthly salary: 69 USD in 2005.

The Moldovan economy currently relies heavily on agriculture and industry (48% of GDP in 2004). The country suffered a serious economic crisis during the first ten years of its independence. The separation of Transnistrie deprived Moldova of its heavy industry. The country also had to face up to its economic dependence, due to a lack of natural resources. Due to a combination of the recovery of the economy after many years of decline and an increase in international trade, the Moldovan economy has grown significantly since 2000. Today, Moldova is a modest market, which will not reach its peak unless structural reforms are carried out.
- The agricultural sector is still very important in Moldova (regional fruit and vegetable provider). In 2004, total agricultural production was worth 992 million USD, an increase of 20%, as a result of improvement in farming techniques (+4%) and development of market garden products (+29%).
- Investment is low, because of an unstable economy. Global investments reached 394 million USD in 2004, equivalent to 16% of GDP. These investments are often destined for the industrial sector (factory building etc).
- External trade: In 2004, exports reached 986 million USD, an increase of 25% when compared to the same period of the previous year. Imports increased to 1774 million USD in the same year, an increase of 30% when compared to 2003. The Moldovan balance of trade is heavily deficient. In 2004, the deficit reached 788 million USD, 33% of GDP. The figure is 179 million USD higher than the previous year.

In 2003, the biggest importers to Moldova were Russia, Romania, Ukraine, Germany, Italy, the USA, Belorussia and France.
Currency: 1 Leu (MDL) = 100 banni.
Exchange rate : 16,25 MDL = 1 EUR (au 10 juillet 2007)

The banking system in Moldova
In Moldova, internal payments must be made in the national currency. However, in accordance with the IMF agreement, signed on June 30th 1995, all international agents can buy and sell in international currency. The National Bank of Moldova (NBM) is responsible for the supervision and regulation of all of the country’s financial institutions. With the help of funds from the IMF, the World Bank and the EBRD (The European Bank for Reconstruction and Development), Moldova was able to reform its banking and financial sector.

History
The principality of Moldova was formed in 1359 by Bogdan I. Archeological artefacts show evidence of human presence on the current Moldovan land from as early as 70000 years B.C. The country was once under the rule of the Roman Empire, and subsequently the Ottoman Empire.
However, it is the beginning of the ‘Soviet’ period that is one of the most significant, and most tragic, times in Moldovan history. Following the “Ribbentrop-Molotov” pact, a new border was established between Bessarabie (now Moldova) and Romania. Numerous deportations, as well as Russian and Ukranian immigration, changed the demographics of the Socialist Soviet Republic of Moldova.
At the end of 1990, Moldova declared its sovereignity within the Soviet Union and on August 27th 1991 the country proclaimed its independence.

Wine production has long been one of the main preoccupations of the Moldovan population. Vines have been cultivated for more than seven million years. Greek colonisers taught the local population wine production techniques. Since this time, wine has been produced for individual consumption, but also for trade. The period of Roman domination had a great impact on wine production in Moldova. This is indicated by the fact that Moldovan people still use Latin wine terminology. From the period of the Ottoman Empire, Moldova became a regular exporter of wine and wine production materials, mainly to Ukraine and to the Far East.
Numerous revolutions and wars seriously affected development of wine production in Moldova. It was not until the 1960’s that wine production equipment was renovated. Old quarrys were transformed into huge depots where around 30000 tonnes, 2 million bottles, of wine were stored.
Production of dry and medium-dry wines in Moldova began in the 1970’s. Wine production was increased in order to meet the demands of the ex-Soviet Union market. Moldova became the main wine provider to Russia; every second bottle of wine and every third bottle of champagne were produced in Moldova or from grapes grown in the country. At that time, vineyards covered 220000 hectares of land and around 1 140 000 tonnes of grapes were harvested.
During Gorbatchev’s anti-alcohol campaign, thousands of hectares of vines were cut down. The surface area of vines decreased and wine reserves were destroyed. The following decade was much more successful and therefore the wine industry improved dramatically.

Grape plantations currently cover 147 thousand hectares of land, equal to 7.4% of all agricultural land in Moldova and 2.3% of all vine plantations in the world. The surface area of vines decreased from 179 000 hecatres in 1996 to 111 000 hectares in 2004 (decrease of 38%). In 2006, figures increased 10% when compared to 2005.

Wine production zones
The 2 June 1994 law relative to wine growing and wine (№ 132-XIII) details 4 main wine zones:

1. North (Balti)
This zone does not have the large vineyards necessary for industrial production. The grapes grown here are mainly used in the production of local “cognac” and fortified wines. A very small number of table wines are also produced here. White grapes (Aligoté, Pinot, Feteasca, Traminer) are dominant.

2. Central (Codru)
This is the most well developed wine zone in Moldova. 60% of the country’s vineyards and the majority of “vinicoles” (large estates with visitor facilities) are located here, including the famous “Romanesti” S.A.
The forested hills of the central zone protect the vines from winter frosts and summer drought, which are characteristic of a continental climate. White grape varieties still dominate, but they produce fresh and light wines. Mixed grape variety wines have also been developed recently. Amongst the red grapes are Cabernet-Sauvignon and Merlot, which have been used to produce wine in this region for over 100 years.

3. South-east (Nistreana ou Purkari)
Climate conditions in this region are more suitable for red grapes (Merlot, Cabernet-Sauvignon, Rara Neagra).

4. South (Cahul)
The climate in this region is characterised by frequent droughts, favouring the cultivation of grapes for red and syrupy wines.

Grape varieties
The oldest indigenous grape varieties are Okiul Boului, Tzytza Kaprey, Pasareasca, Feteasca, Rara Neagra, Tamyioasa, Zgyharda and Plava. During the 19th Century, different grapes were imported from France, Italy and Spain to be tested. Many hybrids were also created, the most popular being Friendship, Moldova and Radial Sultana. Today, over 100 grape vareities are grown in Moldova. European grape varieties account for 70% of all plantations, Caucasian grape varieties 14% and indigenous varieties 16%.
The early grape varieties, Amber Muscadine and Pearl Muscadine, Koarna Naegra from Vitis vinifera), are the grape varieties used for mixed grape variety wines and wines for autoconsumption.

In Moldova, wines are classed according to their intended usage. The classifications are outlined below:

Varieties for distillation material: Aligote, Rkatziteli, Riesling Rhine, Traminer Rose, Semillon, Plavay, Muscadine Ottonel, Aligote, Feteasca Alba, Pinot Blanc, Pinot Gris, Pinot Noir, Merlot, Malbec.
Varieties for quality table wine: Muscadine Blanc, Chardonnay, Sauvignon, Cabernet-Sauvignon, Riesling Rhine, Traminer Rose, Muscadine Ottonel, Aligote, Feteasca Alba, Pinot Blanc, Pinot Gris, Pinot Noir, Merlot, Malbec.
Varieties for table wine: Rara Neagra, Merlot, Semillon, Aligote, Rkatziteli, Feteasca Regala, Riesling Rhine, Silvaner, Hame Freo, Saperavi, Northern Saperavi, Cabernet-Sauvignon, Traminer, Merlot, Pinot.
Varieties for classic and sparkling wine: Chardonnay, Sauvignon, Aligote, Muscadine Blanc, Riesling Rhine, Feteasca Alba, Cabernet-Sauvignon, Pinot Blanc, Pinot Noir.

Wine production
Wine growing and production are traditional occupations for Moldovans, who drink wine with family meals as well as with celebration meals. In the villages, almost every household grows vines and makes their own wine. Over the years, this occuption has transformed into a true art form. Moldovans are very proud of the quantity, quality and diversity of their wines. At present, the wine sector is one of the most important for the Moldovan economy. Wine production constitutes a quarter of all exports and around 20% of GDP. 27% of the population are involved in this sector.
According to the Moldovan agency for the farming and wine industry, volume of wine and material for wine production increased 10-20% a year between 2001 and 2005. In 2005, 2.4 million hectolitres of still wine (14% more than in 2004) and 16 million bottles of sparkling wine (5% more than in 2004) were produced. During the same period, production of strong alcohol decreased by 2%. In 2005, Moldova was the 10th biggest producer and exporter of alcohol in the world, with 1.4% of the total global volume (COMTRADE).


Investment
Russia was one of the first countries to invest in the Moldovan wine industry. However, France, Germany, the Netherlands, Belgium and the USA have also created businesses in Moldova.
Moldovan wines
White wines produced in Moldova are distinguishable by their elegance and originality; their qualities have been appreciated at several international competitions. The most interesting are: Traminer, Sauvignon, Muscat, Rkatiteli, Feteasca Alba, Vin Nobil, Afrodita, Serenada, Dnestrovscoe, Milestscoe, Gratiesti, Auriu and Trandafirul Moldovei
The best local red wines produced in Moldova are Dionis, Codru, Corsar, Lidia, Isabella, Negru de Purcari, Rosu de Purcari, and Purpuriu de Purcari. Excellent Cabernet-Sauvignon, Merlot and Pinot Noir wines are also produced.
Moldova also produces a fairly large range of sparkling wines, red and white, and from brut to sweet.
Flavoured wines have been produced in Moldova since Medieval times. They can contain infusions of around twenty plants (for example, camomille, bee balm, coriander and lime blossom). Red wines, made from local grapes Feteasca Neagra and Batuma Neagra and infused with absinthe, were successful outside of Moldova. The flavoured Moldovan wine called Buchetul Moldovei (Moldovan bouquet) was more successful than any other product. This wine no longer has such a powerful position on the traditional market, but its qualities remain impeccable.

Below are a list of internationally known appellations and the equivalent name used in Moldova for wine with identical properties:
Xérès-Ialoveni
Porto-Prometeu
Madeira - Luceafar
Cahors-Pastoral
Vermouth - Mireasma Codrului, Buchetul Moldovei
Sauternes - Nectar

Grape production
Although the total surface area of vineyards in Moldova decreased betwwen 2001 and 2005, the average harvest and total quantity of grapes harvested actually increased.

Table 1. Wine production statistics

In 2006, 560 000 tonnes of grapes were harvested, 480 000 tonnes from grape varieties destined for wine production, and 210 000 tonnes of grapes were made into wine (in 2005 - 320 000 t.).

Wine production

Annual production

Production by type of wine

In 2006, 0.1 million hl of quality wines, 0.9 million hl of ordinary wine and 0.2 million hl of sparkling wine were produced.

Moldava is in 9th position in the list of global wine exporters. It is the only country to export over 95% of all wine produced.

Table 2.
Moldovan wine exports in 2005 (by country, in value – million USD)

Source : Moldova -Wine.

Following a ban on Moldovan wine imports into Russia, exports decreased dramatically. In 2006, the total value of wine exports was 186 million USD, a decrease of 41%. Despite the embargo, Russia is still one of Moldova’s biggest markets where 47 million USD worth of wine has been sold.
In 2006, Moldova exported wine to 45 countries (43 in 2005) for a sum of 173000 USD (312900 usd in 2005). 76.5% of this sum was made from the 9 CIS countries. The country has conquered new markets such as Portugal, Spain, Finland, Bulgaria, South Korea, Singapore, Taiwan and Senegal. Exports to China have also recommenced after many years. The French and Italian export markets are very weak but these countries are still considered as prestigious markets. Exports to other important markets such as Japan, Ireland, Israel and the USA have slightly increased. In terms of European countries, exports to Romania have increased the most. However exports to Poland, Germany, the Czech Republic and Latvia have also increased.
In November 2006, during an official meeting, the Russian and Moldovan authorities made an agreement regarding Moldovan wine imports in Russia, allowing exports to recommence. As the price is now higher, these wines cannot compete with Russian wines, which are now also more expensive following the alcohol crisis that happened after Moldovan and Georgian wine imports were banned. It is therefore the best time for Moldovan wines to occupy a niche in the expensive wine market.
A repeat of the 2005 figures for exports to Russia is not expected before 2009. A decrease in grape and wine production product exports in predicted.

Moldova was the 33rd largest wine importer in the world in 2004. It does not import a lot of wine due to high levels of production and the low cost of domestic wine.

Table 3. Wine imports in Moldova

Source : AWBC - FAO.

Moldova imports mainly bulk wine, which accounts for 99% of imports.

Table 4. Wine imports by type, in value (million USD).

Table 5. Wine imports by type, in volume (hl).

Source : AWBC - FAO.

Traditionally, the main providers to Moldova are Romania, Spain, Ukraine, Russia and Kirghizstan.

Annual consumption
Consumption decreased by five times between 1996 and 2004, due to low production levels and a decrease in income for Moldovans, who then turned towards beer and other less expensive alcoholic drinks.

Consumption per head
Moldovans regularly drink wine. 23.7% of men and 5.3% of women drink wine several times a week and 48.7% of men and 21.2% of women drink it at least once a week.
Consumption per head decreased from 46.5 litres per year in 1996 to 9.4 litres per year in 2004.

Consumers, who have very little disposable income, are very concerned about price. The majority of the population drink mostly inexpensive local wine. A bottle of Moldovan wine costs no more than 1.5 USD.

Businesses sometimes play the role of producer, importer, exporter and retailer of wine.
The main companies are Asconi, Basvinex, Circova-Acorex, Clasicvin-Industrial, GB & Co, Lion-Gri and Vinorum.

The wine production sector also suffered from the loss of Moldova’s main client, and so the Moldovan agency for the farming and wine industry put in place measures to help the regeneration of the wine industry. Moldovan authorities have introduced new quality control mechanisms for exported wine and have created a document that describes how this quality is assured. Technical procedures must conform to ISO (International Organisation for Standarisation) norms. Particular attention is given to combatting fraud. When wine is exported to Russia, controls are also carried out by Russian authorities on arrival.
In 2002, the government created a restructuration and development programme for the wine industry for 2002-2020.
A regulation concerning organic wine was included in the legislation for the first time in 2005.

National wine day
Since 2002, in accordance with a government decree, the first Sunday in October has been celebrated as Moldovan national wine day. Large and small wine producers from all regions travel to the capital to celebrate wine. It is a festival to celebrate the importance of wine culture, which is one of the symbols of Moldova.

A whole range of activities take place as part of this festival, which aims to demonstrate the support of Moldovan authorities for the development of wine production, to consolidate the image of the country and to promote the inclusion of Moldava in the International Wine Route. The programme includes concerts, theatre shows, fireworks, numerous competitions for wine growers and producers, tasting sessions, wine exhibitions and arts and crafts exhibitions.

One of the objectives of the national wine day is to attract foreign tourists. In this context, and in accordance with the law on preferential visa issue, foreign nationals can obtain a free one-month visa, valid for 15 days before and 15 days after the festival. This measure aims to make it possible for foreigners to see more of the country, thereby increasing revenue. Around 100000 people participate in the exhibitions that take place during the festival, including people from many foreign countries. Travel agencies offer many interesting tours, the most popular being visits to vineyards and cellars.

The international exhibition ExpoVin Moldova is one of the most important events for the Moldovan wine industry. Since its creation in 1992, it has been held annually in Chisinau during the month of February.

The main sectors represented are:
- Wine and spirits
- Equipment for the wine industry
- Labelling and packaging
- Specialised literature

Statistics from ExpoVin Moldova (200-2007)