Economic Cooperation between the Republic of Moldova and Romania: The Historical Background and the New Context

The relationship between the Republic of Moldova and Romania has a special character, being built on common language, history, culture and traditions. Despite these commonalities, the Moldovan authorities oscillated between two geostrategic vectors in the years following independence (the intensification of economic cooperation with the former Soviet states and, subsequently, the European integration), while diplomatic and political tensions between the two countries affected the bilateral economic cooperation over time. The article has the purpose to analyze the historical background and the dynamics of the economic relations between the Republic of Moldova and Romania from the period following the independence of the Moldovan state until present. For achieving this purpose, the author reviews the main political and economic events that have influenced this relationship between the two countries over time and presents the evolution of their trade and investment cooperation. The analysis finds that the bilateral trade experienced anaemic values until the establishment of the strategic partnership between Romania and the Republic of Moldova. Moreover, once Moldovan authorities signed the Association Agreement with the EU in 2014, Romania has taken over the place of the Russian Federation as the main trading partner. At the same time, Romania is one of the main foreign investors in the Moldovan economy. However, despite important progress recorded in the economic relations between the two countries, they are still far from their potential and have considerable space to capitalize the strategic partnership.