Trade Compliance Project brought L&M PRISK Team to Moldova and Bulgaria

As part of a trade compliance project, the L&M PRISK team visited Moldova and Bulgaria this summer. Both countries are considered high-risk countries in terms of possible sanctions evasion.

This applies in particular to Moldova, which has no control over the pro-Russian region of Transnistria. Pro-Russian actors can also be found in Gagauzia in particular. However, the entire country is politically divided between pro-Russian and pro-European forces. The country is also suffering from sanctions and the interruption of supply chains as a result of the war in Ukraine. The high political risks are preventing urgently needed investment in the industrial sector and are therefore hindering economic development. Emigration and brain drain continue to pose a major problem, even if the negative effects are mitigated by the immigration of Ukrainians.

Bulgaria, on the other hand, shows far fewer political risks. However, the country is suffering from the fact that no government has yet been formed after six parliamentary elections. As a result, there is a backlog in EU funding reserved for Bulgaria. High inflation, falling approval ratings among the population and the unclear political constellation are jeopardizing accession to the eurozone in January 2025. Moreover, although the country is a member of the EU and NATO, there are still hidden trade flows to Russia, also encouraged by the pro-Russian stance of many entrepreneurs.

The Russian church "Sveti Nikolay Mirlikiiski" in Sofia. The country maintains close cultural and hidden business relations to Russia, despite of EU and NATO membership. (Source: Own Photo)