EXCLUSIVE | "Sheriff" takes it all: how Tiraspol separatists destroy small entrepreneurs in favor of a single monopolistic conglomerate. Details

The so-called parliament of the so-called Transnistria is to adopt new amendments to the so-called “law” “On procurement in the TMR”. The separatist political gurus intend to introduce the concepts of “centralized” and “joint” procurement, which would require that all goods and services be purchased exclusively through a supposedly specialized “governmental” body. In practice, the so-called local authorities on the left bank of the Dniester will lose their right to independently purchase goods and services.

To what extent will these changes deal a decisive blow to small and medium-sized enterprises, who will ultimately get all the "state" contracts, and what will remain of the competition in the so-called Transnistria? Find out below.

In August of this year, the shadow government in Tiraspol decided to establish a special body, tasked with managing centralized procurement for the needs of the so-called “state” and the so-called municipalities. It was pompously titled “Special Authorized Body under the Government of the Republic of Moldova for the Implementation of Centralized Procurement”. At the same time, a list of goods was approved that, from now on, must be purchased exclusively through this single lever. The list includes office supplies, fuel for official vehicles, and food products with a long shelf life.

Officially, this is presented as a measure aimed at improving the efficiency of spending during the state of economic emergency decreed against the backdrop of the severe economic crisis in East Nistru, a crisis that is deepening from one month to the next. In practice, the measure involves concentrating significant budget flows in a single center. Specific rules have also been established regarding procurement. Previously, the so-called local administrations determined their own needs and purchased goods through tenders from local companies – often in small quantities. According to the new rules, all purchases needed by these so-called administrations will be carried out centrally, on a large scale, and the goods will be distributed by the so-called government in Tiraspol.

However, this “special” body could not begin its activity until amendments were made to the so-called “law” “On procurement in the TMR”. In the autumn, amendments were introduced to the “law on procurement”, which established the concepts of centralized and joint procurement, as well as tripartite contracts. On October 21, these provisions were examined and adopted at a plenary session of the so-called “Supreme Council”. Subsequently, the updated text of the “law” was sent to the so-called president for signature. The new rules are to enter into force starting in December 2026.

As a result of these changes, a significant part of the goods will be purchased centrally, through a “special” body established within the so-called local administration. This body will include representatives of the so-called government apparatus, as well as all the so-called ministries and “state” administrations. It is expected that these representatives will make decisions on the large-scale purchase of goods from local entrepreneurs, in order to meet the needs of the so-called authorities of the so-called local administration. In practice, starting with December of this year, the so-called authorities of the so-called local administration will no longer be able to make purchases in their own name.

All the while, separatist political gurus talk about "increasing efficiency, saving budget funds, and ensuring increased transparency in the context of an economic emergency."

In practice, however, the story behind the adoption of these “amendments” looks completely different. And you will find out in the following. According to the new rules, small and medium-sized enterprises are, in effect, eliminated from the market, as participation in centralized procurement processes has become significantly more difficult for them. At the same time, there is an increased risk that the award of contracts will be done through “manual” (discretionary) allocation to “favored” companies – that is, those with well-established ties to the alleged separatist administration.

In a closed economy, characterized by limited competition and weak public oversight, a so-called centralized decision-making authority creates opportunities for a selective approach to businesspeople. Although the procedures may remain formally competitive, the circle of real participants is significantly narrowed. Companies that lack “administrative resources” – that is, access to alleged government officials or spheres of influence over them – are either prevented from bidding for major contracts or forced to operate through intermediaries.

Small and medium-sized enterprises in the region will suffer the most from these changes. Most of them work directly with the so-called local public authorities, supplying them with food, stationery and household goods, or carrying out small repairs. For decades, this model has allowed the maintenance of a sector of small and medium-sized enterprises that has remained relatively independent of the monopolistic holding company Sheriff.

However, the establishment of this so-called “Specially Authorized Body under the Government of the TMR for Centralized Procurement” radically changes a system that has operated for decades. This centralization of procurement has changed the threshold for economic agents to access “state” contracts. In order to participate in tenders, a company representative must now have a very large quantity of goods at their disposal – enough to cover the needs of all the so-called “government institutions” in every district of this region that is not recognized by anyone internationally. Small and medium-sized enterprises simply cannot handle such volumes, as they do not have the working capital necessary to procure goods on such a scale.

In the so-called Transnistria, only the Sheriff holding has such capabilities, practically monopolizing all economic activity there. The new rules on public procurement essentially mean that the so-called local authorities will allow the holding to make even greater profits at the expense of the imaginary “state”, while programmatically stifling small and medium-sized enterprises. Given the already limited size of the Transnistrian economy, this translates into job losses and a further contraction of economic activity. It is inevitable.

Similar processes have been observed in other systems characterized by a high degree of centralization. In Russia, discussions on the consolidation and centralization of public procurement have often been accompanied by warnings from experts about the elimination of small businesses from the market, the bundling of contracts into larger lots, and an increasing dependence on a narrow circle of suppliers.

In Belarus, an analysis of single-source procurement has repeatedly revealed signs of non-transparent financial allocation and a decline in the economic activity of small and medium-sized enterprises. In systems with limited competition, centralization of public procurement does not generate budgetary savings; on the contrary, it encourages corruption and leads to a decrease in the quality of goods.

In the Republic of Moldova, the situation is developing in the opposite direction. The main tool for all public procurement is the electronic platform MTender (State Register of Public Procurement). In September 2026, the Government approved measures that oblige contracting authorities to publish procurement plans and reports on contract execution within this system, thus ensuring centralized availability of information. This step aims to increase transparency and facilitate monitoring of procurement activities by the business community and the general public. Although the launch of the large-scale “e-Procurement” system has been postponed until 2028, the general approach to public procurement is fundamentally different from that of authoritarian regimes. Decisions are not made by a single central authority, and anyone can access all data on the funds that the state spends to cover the needs of its own agencies.

The mechanism to be implemented in the unrecognized region will benefit, first of all, large “trusted” suppliers – especially the monopolistic holding Sheriff – as well as the so-called administrative apparatus itself, which will acquire an additional lever of control over the entire business sector in the region. The most affected will be small and medium-sized entrepreneurs, who will find themselves isolated from a significant part of the market for their goods and services. The so-called local authorities will also lose out – they will lose their flexibility to choose the goods and services they need, being forced, instead, to accept everything that is sent to them by the so-called government in Tiraspol.

Ultimately, the centralization of procurement in the so-called Transnistria does not appear as a measure aimed at increasing efficiency, but as a mechanism for the definitive redistribution of budgetary flows. A targeted redistribution. Small and medium-sized enterprises, which for years relied on the so-called local administrations, are now being eliminated from the market by a single discretionary decision. Large-scale procurement contracts – accessible only to large players – will automatically go to those who have the necessary deposits, working capital and “administrative” leverage. In the closed economy of the region, the monopoly holding “Sheriff” was and remains the only such player.

Although the separatist political gurus talk about “transparency and cost savings,” in practice a system is being created in which the so-called “state” invented by Russian occupation troops directs contracts to a single monopolist. The so-called local administrations lose their right to choose, entrepreneurs who have no ties to the holding lose their clients, and the “Sheriff” gains a new, stable and uncompetitive source of income – financed from the “state” budget.

Given the already tiny size of the Transnistrian economy, this will not only restrict economic activity in the region, but will also officially enshrine the total dependence of the entire Transnistrian market on a single economic entity.