Peace efforts in disarray following Chisinau’s last- minute rejection, in November, of controversial Russian proposal for ending dispute with breakaway Transdniestrian region. OSCE annual meeting, in Maastricht, ended in stalemate 2 December, with Russia failing to garner support for its plan, and other OSCE members unable to commit Russia to deadline for withdrawing its troops from Transdniestria. Officials in Tiraspol, Transdniestrian capital, declared suspension of Russian military evacuation in retaliation for Moldovan government’s failure to accept Russian proposal.

Russia presented proposal for resolution of dispute with Transdniestria region, sidestepping OSCE-led mediation process. Signing ceremony scheduled for 25 November cancelled by Moldovans at last moment after pressure from U.S. and EU, who were dissatisfied with proposed federal structure, in particular influence it would have given Transdniestrian separatist leadership over Moldovan economic and foreign policy. Peace process now back to square one under OSCE auspices. Anti-government demonstrations sparked by collapse of agreement continue. Evacuation of Russian military equipment from Transdniestria resumed after months-long pause, but troop withdrawal unlikely before second half of 2004.

European Council called on Russia 17 October to remove its military presence from Transdniestria by year’s end as promised, but troops look set to stay well into 2004. Reports that mediators’ proposal on breakaway region will be presented to parties in coming days.

Talks on dispute with breakaway region of Transdniestria remain stalled. EU still discussing possibility of sending peacekeepers to region. Russian troops appear likely to remain despite agreement promising pull-out by year’s end.

Moldovan and Transdniestrian forces took first demilitarisation step in years, withdrawing 37 armoured vehicles from Security Zone separating sides. EU and NATO discussing OSCE proposal to send peacekeepers Moldova to help settle dispute and bring order to region.