Page 14 - bne IntelliNews monthly magazine December 2024

14 I Companies & Markets bne December 2024
Serbia's reliance on Russian gas. Moreover, the EU's criticism and expectation of Russia's waning influence in the energy market of the Balkans, particularly in Serbia, is unlikely to be justified soon, considering that its main energy companies are under Russian majority ownership.
Consequently, Europe’s enormous efforts to wean itself off Russian fossil fuels have not yielded major results due to the pragmatic foreign policy strategy of certain countries like Serbia, which opted to remain connected to Moscow's energy and reap the cost benefits. Given the favourable conditions of the original agreement, Serbia's enthusiasm for securing a deal with Russia seems rational.
Although Russia's long-term energy dominance in the Balkan region seems undented due to regional countries' diversi- fication attempts, Serbia's renewed gas deal could prolong Moscow's presence in the local energy market for a while, even though the continuing Russian gas shipment will become more costly, emboldening other states to seek cheaper solu- tions. Considering this factor, Belgrade inked a gas agreement with Russia based on a fixed price, shielding itself against extra costs, which is now likely to be renewed on the same terms.
However, the expected decline of Russia's state revenue from oil and gas to $117.53bn between 2025-2027 due to the heavy tax burden on energy giant Gazprom is a cause for concern. This may push Moscow to reconsider the price it charges Serbia once the contract comes up for renewal in 2025.
Moreover, like leading EU member states, Serbia put enormous efforts into switching to alternative energy sources in the near future. By 2026 Serbia expects to have more than 1,500 megawatts (MW) of green energy within the framework of the Integrated National Energy and Climate Plan, which outlines a vision through 2030 and 2050. The successful implementation of the strategy will enable Serbia to dramatically decrease dependence on fossil fuels, particularly Russian, thus resolving one tough political dilemma.
Fuad Shahbazov is a policy analyst covering regional security issues in the South Caucasus. He was a research fellow at the Center for Strategic Studies and previously a senior analyst at the Center for Strategic Communications, both in Azerbaijan. He was also a visiting scholar at the Daniel Morgan School of National Security in Washington, DC. He tweets at @fuadshahbazov.
Moldova’s electronics sector rises again Clare Nuttall in Chisinau
Moldova’s electronics sector is undergoing a renaissance, with the rise to prominence of new companies in the sector, many of which have become important parts of European supply chains in the automotive and other sectors.
It’s a very different picture from 40 years ago, when Moldova, then part of the Soviet Union, had an electronics sector that was mainly focussed on defence, although the small republic also produced household appliances. Since independence in the early 1990s, however, Moldova’s electronics industry has been completely reborn, Elena Maevski, executive director of the Association of Electronics Companies in Moldova (ACEM) told bne IntelliNews in an interview in Chisinau.
"The electronic sector activities in Moldova started at the beginning of the 1960s. In Moldova, as part of the Soviet Union, we developed electronics mostly for defence, as well as some household uses,” said Maevski. These factories produced sophisticated electronics, including components for military use, equipment for rockets and other high-tech applications.
“The factories in Moldova were cutting-edge, producing complex electronics largely for defence purposes,” Maevski said. The sector then virtually collapsed following the breakup of the Soviet Union, which led to a period of deindustrialisation and a near-complete halt in investment in electronics.
www.bne.eu
But it experienced a rebirth after the first difficult years of transition and has grown up again as a primarily export-driven industry focused on civilian applications.
“The concept of the electronics industry changed. In Moldova we do not produce at all for defence. We produce for civil applications – such as power for city public transport, sophisticated smart meters, scales, wire harnesses for the automotive industry, lighting solutions and many others.” Founded in 2019, the Moldovan Electronics Association
now represents over 210 companies, across a broad range of sub-sectors. “Our primary objective is to develop, promote, and increase the competitiveness of the electronics industry in Moldova,” Maevski explained, saying that collaboration with government agencies, international organisations and NGOs has been critical to supporting the sector.
Some of the high-profile local companies include ADD Group, a major producer of smart metering solutions, which exports to over 32 countries worldwide and has produced more than 8mn smart meters. Another is Informbusiness, a specialist in energy efficiency within public transportation that developed Moldova’s first electric bus. Its technology is used not only
in Chisinau and other Moldovan cities, but in 170 cities worldwide. In 2023, it inaugurated a new assembly plant for trolleybuses and electric buses in Chișinău.