April 6, 2022 UPDATE

A news update

Newsroom, 06.04.2022, 20:00

Robor – The three-month Robor index, based on which the cost of consumer loans in lei with variable interest rate is calculated, rose to 4.68% per year from 4.62%. According to the National Bank of Romania, it is the highest Robor level in the past 9 years. On Tuesday, the Central Bank decided to increase, as of Wednesday, the key interest rate from 2.5 to 3% per year, which influences the evolution of all bank interest rates and is the main tool in the fight against inflation. The Central Bank warns that the annual inflation rate is expected to rise more sharply in the coming months than anticipated in February. The worsening of the short-term outlook for inflation is caused by the too big increases in fuel and food prices, against the backdrop of the war in Ukraine and of international sanctions.

Embassy — The Romanian Foreign Ministry has rejected the reaction of the Russian Embassy in Bucharest following the incident at its headquarters this morning and considered the reaction hasty, completely inadequate and inappropriate. Previously, the Russian embassy had stated that “there was no doubt” that the driver who drove his car into the embassy fence “committed that act under the influence of an explosion of anti-Russian hysteria.” We remind you that the driver died after he drove his car into the embassy fence at dawn on Wednesday and then set himself on fire. The investigations in this case are being carried out by the Prosecutors Office of the Bucharest Tribunal and the Homicide Division of the Bucharest Police. The media in Bucharest reports that the perpetrator, Bogdan Drăghici, is a character with some notoriety, who had received a sentence for sexually abusing his daughter. He was also the head of the association called TATA (Anti-Discrimination Alliance of All Dads). On the previous day, he allegedly posted on Facebook a text showing his solidarity with Ukraine which was invaded by Russian troops.

Diplomats – Romania has expelled 10 Russian diplomats from its territory, joining other states such as France, Germany, Italy, Denmark, Slovenia and Sweden, which have made similar decisions in protest of the atrocities committed by the Russian army in Ukraine. Nearly 200 diplomats have been sent to Moscow in recent days, marking a further deterioration of the West’s relations with Russia. Russias Deputy Foreign Minister Aleksandr Grushko told TASS news agency that his country would respond in the same way. He underlined that the expulsion of diplomatic personnel from the capitals of some European states would damage the diplomatic channels of communication.

Ukraine – The US has imposed new sanctions on Russia, namely against several companies and 18 people, including the daughters of President Vladimir Putin, as well as the deputy chairman of the Russian Security Council, Dmitry Medvedev. Two major Russian financial institutions, SberBank and Alpha Bank, are also targeted. The new round of sanctions also includes a ban on new investments in this country. Russia must be held accountable for the war crimes perpetrated by its forces in Ukraine, the Ukrainian president Volodymyr Zelensky said in a speech at the UN Security Council. Moscow has again denied accusations of war crimes. The European Commission President Ursula von der Leyen will travel to Kyiv this week, where she will be accompanied by the foreign policy chief Josep Borrell. Pope Francis on Wednesday condemned the “Bucha massacre” and kissed the Ukrainian flag sent from the Ukrainian city where, after the withdrawal of Russian troops, bodies were found tied up and shot in the street, as well as mass graves. On the ground, Ukraine is preparing for an offensive by the Russian forces in the east of the country and is trying to evacuate civilians before Russian forces cut off their retreat routes. Russian bombing continues both there and in other parts of the country. The international organization “Doctors Without Borders” has called for hospitals, patients and medical staff in Ukraine to no longer be targeted. According to the BBC, three hospitals in the city of Mikolaiv, under Russian assault, were bombed in just two days. Previously, other medical centers in Ukraine were the target of Russian bombings.

Sanctions — The employees of the companies that are forced to restrain or suspend their activity due to the conflict in Ukraine will be able to benefit from furlough benefits worth 75% of their salary, the Romanian Government decided on Wednesday. The measure applies both to companies directly affected by the military conflict and to those indirectly affected, announced the Labor Minister, Marius Budai. He pointed out that the government was supporting any measures to sanction Russia, saying that no Romanian citizen should suffer, hence that measure. Also on Wednesday, an emergency decree was approved under which the financial framework for the Anghel Saligny National Investment Program reaches 65.5 billion lei – approximately 13 billion Euros. The program targets investments in water and sewerage, roads and bridges, and natural gas distribution systems.

Trade unions — On Wednesday, the National Trade Union Bloc staged a protest rally in Bucharest, attended by thousands of people. The 35 affiliated trade union federations, both from the private sector and the public system, called for support measures to offset the economic and social effects of the war in Ukraine. At the same time, the National Trade Union Bloc requested urgent measures for Romanias energy and food security, in the context of rising electricity, gas and fuel prices.

Moldova – Germany, France and Romania co-chaired an international conference in Berlin on Tuesday on the creation of a support platform for the Republic of Moldova, an ex-Soviet republic with a majority Romanian-speaking population. The participants – nearly 50 delegates representing countries and international organizations – pledged to provide more than 695 million Euros in financial aid to Chisinau, as well as political support in the context of the war in neighboring Ukraine. About 12,000 of the nearly 100,000 Ukrainian refugees on the territory of the Republic of Moldova will be taken over by other states.

NATO — The Romanian foreign minister, Bogdan Aurescu, participates, for two days, in the meeting of the foreign ministers of the NATO member states hosted by Brussels. The agenda of talks includes the implementation of the decisions of the Extraordinary NATO Summit on March 24, focusing on strengthening the Allied defense and deterrence posture on the Eastern Flank, following Russias aggression on Ukraine and its consequences for Euro-Atlantic security. According to a Romanian Foreign Ministry communiqué, the officials will also discuss the latest developments on the ground in Ukraine, including the crimes against the civilian population. Bogdan Aurescu will reiterate the importance of the rapid implementation of the decisions of the March NATO Summit, with an emphasis on the establishment of new NATO Combat Groups, one of which is in Romania. “We need to be realistic. The war could last a long time, a few months, even years,” NATO Secretary-General Jens Stoltenberg estimated before the meeting. He reiterated that Moscow was preparing an offensive in eastern Ukraine to take control of the entire Donbas region and to build a land bridge to Crimea, the Ukrainian peninsula annexed by Russia in 2014. (LS)