Romania’s government on Wednesday discussed purchase of the International Free Port of Giurgiulesti on the Danube in Moldova, which is currently owned by the European Bank for Reconstruction and Development, EBRD.
Romanian authorities want to purchase the port through the “Administratia Porturilor Maritime” S.A. Constanta, a commercial company under the authority of the Transport Ministry.
Prime Minister Marcel Ciolacu has been discussing purchase of the port from Moldova since last year, with the goal of creating a hub for the reconstruction of Ukraine.
The purchase is seen as a strategic move that could boost Romania’s role in the region’s economic development and reconstruction efforts.
Romania has often expressed willingness to contribute to Ukraine’s post-conflict reconstruction, due to the two states’ common border and increased bilateral relations in recent years.
“We do not know what will happen to Odesa [port in southern Ukraine], but there is a port in Moldova, Giurgiulesti, which is not yet operational. Through the Transport Ministry, Romania has already shown its interest to the EBRD in buying this port and developing it. We are awaiting an answer,” Ciolacu said in September 2023 on TV.
Srategically located at the confluence of the Prut river in the Danube, the port is Moldova’s only indirect outlet to the Black Sea, underscoring its crucial role in regional trade and development.
Giurgiulesti is a village in southern Moldova located on the left bank of the Prut River, opposite the city of Galati, an important port on the Danube in Romania.
In the first two years after the Russian invasion in Ukraine, the quadrilateral formed by the ports of Reni in Ukraine, Giurgiulesti in Moldova and Galati and Constanta in Romania helped Ukraine to export its grain overseas. This strategic alliance of ports played a crucial role in supporting Ukraine’s economy during a challenging period.
The International Free Port is currently operated by Danube Logistics SRL, which in turn is owned by the EBRD.
Conceived in 1995, it was designed as a gateway for marine vessels and equipped with a terminal for the storage and transshipment of refined petroleum products, showcasing its potential for growth and development.
The EBRD provided a US$27.5 million loan and equity investment package to support the infrastructure development of Terminal S.A., a Moldovan-Greek joint-stock company that entered into a concession agreement with Moldova to build and exploit Giurgiulesti Port.
But physical work on it stopped in the late-1990s and the EBRD loan was later classified as impaired. In 2004, the port was concessioned to Azpetrol Group, which accumulated significant debts. In 2011, it came under the ownership of Danube Logistics SRL. On May 7, 2021, the EBRD acquired 100 per cent of the capital of this group.
Source: Balkan Insight
