Moldovan Wine-For-Drugs Deal Goes Sour

17 February 1997

Moldova's parliament has rejected a barter deal between a Belgiandrugmaker and the Ministry of Agriculture, under which Moldova was to get $1 million worth of medicines in exchange for wine supplies.

The government issued a special decree ordering Dacia Felix, a prime supplier of dry and sparkling wines to the CIS and Baltic states, to see the contract through. The problem arose because 65% of Moldovan wine exports go to Russian cities, and the western markets are still unknown territory. The government jumped at the chance to expand deliveries to Europe, and tasters for the Belgian company set about selecting the finest wines, until the parliament asked why top national vintages in the barter deal would fetch only half the prices they would in Russia or Ukraine, while the prices of the drugs on offer were high.

The deal has been put on hold and will be investigated by the senior law officer.

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