OSCE said unable to monitor Transdniestria parliamentary election in December due to short notice. Government and Transdniestrian region agreed at resumed OSCE-mediated talks to send fact-finding team to prepare for elections. EU signed agreement with Moldova and Ukraine to aid anti-smuggling efforts; 50-strong EU mission to be deployed on border in December. Opposition party leader and 2 members to be investigated for alleged corruption.

Stalled talks on Transdniestria’s future to resume October, with U.S. and EU participation. President Vladimir Voronin met President Yushchenko to discuss Ukraine’s efforts to settle dispute. EU agreed to send monitors to secure Ukraine-Moldova border through Transdniestria in first EU deployment in former USSR. Moldova-Ukraine asked OSCE to oversee December Transdniestrian elections. Transdniestria celebrated 15 years of self-proclaimed independence 2 September.

EU sent fact-finding mission to Moldova-Ukraine border 23-29 August to prepare further EU assistance in monitoring Transdniestrian sector of border. Transdniestrian authorities announced December parliamentary elections.

Step forward for peace process as Transdniestrian leader Igor Smirnov agreed to support Ukrainian President Yushchenko’s peace plan and invite EU and U.S. representatives to take part in negotiations. Moldovan parliament passed “Law on Transdniestria” 22 July as basis for future settlement. OSCE presented confidence-building security-related measures 12 July. Chisinau’s reluctance to negotiate directly with Tiraspol could still hinder peace plan.

Chisinau gave qualified backing to peace plan of Ukrainian President Viktor Yushchenko, with parliament endorsing but government saying would not support elections in Transdniestria - as called for in plan - until basic rights respected in breakaway region. Earlier, Chisinau asked EU foreign policy chief Javier Solana for European help in monitoring border between Transdniestria and Ukraine. Russian official accused Chisinau of trying to “torpedo” peacekeeping operation after Moldovan officials skipped meeting of oversight body.

Representatives from Moldova and breakaway Transdniestria region met in Ukraine 16-17 May to discuss proposal put forward by Ukrainian President Viktor Yushchenko to resume negotiations, embracing earlier Moldovan call to include EU, U.S. and Romania. Though Transdniestra has not yet clearly indicated support for proposal, EU promptly declared its willingness to cooperate.

Parliamentarians re-elected President Voronin to fresh 4-year term 4 April. Voronin appointed Vasile Tarlev PM; new cabinet won parliamentary approval 19 April. “Revitalised” GUUAM summit opened 21 April with leaders of Georgia, Ukraine, Azerbaijan and Moldova (Uzbekistan has suspended its participation) meeting in Chisinau. Ukrainian PM Victor Yushchenko presented plan to resolve Transdniestria dispute.

Communist Party maintained parliamentary majority, taking 56 of 101 seats in 6 March elections described by OSCE as broadly democratic (but condemned by CIS observers). Despite victory, incumbent Communist majority reduced significantly, making opposition support necessary for re-election of party leader Vladimir Voronin as president. Valeriu Pasat, former Moldovan defence minister and current high level official at major Russian state-owned company, arrested 12 March in Moldova on charges of embezzlement, prompting statement of concern from Russian government.

Tensions grew ahead of 6 March parliamentary poll. Opposition and NGOs complained of police harassment and government use of public money to fund ruling Communists’ campaign; EU and U.S. voiced similar concerns. Chisinau warned of Transdniestrian military mobilisation - denied by Tiraspol - but agreed to suspend restrictions on foreign diplomats travelling to Transdniestria after Russia and Ukraine protested. EU announced would appoint special representative to help settle Transdniestria dispute.

Chisinau said would resume 5-sided negotiations over breakaway Transdniestria (Russia, Ukraine, OSCE, Moldova, Transdniestria) if U.S. and EU granted “permanent observer” status in talks; Ukraine said had no objections. But consultations 25 January in Odessa failed to make headway. Meanwhile, Russia and Ukraine protested new Moldovan restrictions on travel of foreign diplomats into Transdniestria.