Much of Moldova, known as Bessarabia, was part of Romania, incorporated into the Soviet Union in 1939. Moldova became independent in 1991, following the break up of the Soviet Union, and joined the Commonwealth of Independent States. Although the republic has rejected reunification with Romania, the northeastern Trans-Dniester region, originally part of Ukraine and with a mainly Russian population, has declared independence. The mainstays of the economy are viticulture, fruit and vegetables which, together with industries such as food processing, account for over 50 per cent of national income. Immediately following independence, Moldova suffered economic turbulence, but strict control is beginning to show success.
Inflation is under control and the new currency is relatively stable.
Privatization is taking place, foreign investment is encouraged and the government has agreed future programmes with the International Monetary Fund, to enhance the economy. Moldova lacks fuel reserves and depends on Russia for crude oil. It is dependent on the Ukraine for access to the Black Sea, and the government is planning to build a port for freight on the River Prut.