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Saturday, December 27, 2014

Russia's other war - against migrants

Thanks to Western sanctions, the low price of oil, and systemic weaknesses in Vladimir Putin’s style of crony capitalism, the currency has lost roughly 50 percent against the dollar this year. Most migrants convert their rubles into dollars to send home.

As the value of the Russian ruble plummets and Russia’s economy tumbles into recession, millions of Central Asian migrants have seen their real wages dwindle. On top of that, Russian authorities are introducing new, expensive regulations for foreigners who wish to work legally in the country.

According to Russia’s ambassador to Uzbekistan, there are about three million Uzbek labour migrants in Russia, the most from any Central Asian country. Others estimate the number of Uzbeks could be twice that. Unofficial estimates put their remittances in 2013 at the value of roughly a quarter of Uzbekistan’s GDP. Kyrgyzstan and Tajikistan are even more dependent on labour migrants, with remittances contributing the equivalent of 30 percent and roughly 50 percent to their economies, respectively. Data from Russia’s Central Bank shows that the funds Uzbeks send home dipped nine percent year-on-year during the third quarter of 2014. Analysts predict the fall will continue. The Russian business daily Kommersant estimates that remittances fell 35 percent month-on-month in October alone.

"My salary was 18,000 rubles a month, which several months ago would be equivalent to 500 dollars. Now, it is less than 300 dollars,” Sherzod, a 29-year-old from the Ferghana Valley who was working at a shop in Samara, told EurasiaNet.org. Sherzod returned home in November and he is not planning to go back to Russia. “The salary is too low.” Sherzod says that faced with falling real incomes, many Uzbeks working in Russia find themselves in a quandary. Thousands are eager to return home. But many simply do not have funds to buy a return ticket. Others worry about being seen in their native villages as failures."

It is not only falling wages that labour migrants must consider. Starting on Jan. 1, Russia will require labour migrants to pass tests on Russian language, history and legislation basics, as well as undergo a medical examination and buy health insurance (the entire package will cost migrants up to 30,000 rubles (currently about 500 dollars), by some accounts). The Moscow city government is also more than tripling the fee for work permits, from 1,200 rubles monthly to 4,000 rubles (currently 64 dollars). Citizens of countries that are members of the Eurasian Economic Union (EEU), which will come into force on Jan. 1, will not be affected by the new regulations. That adds pressure for migrant-feeder countries like Tajikistan and Uzbekistan to join. (Kyrgyzstan is hoping to join in early 2015) Russian media outlets have quoted a migrant community leader who projected new requirements for guest workers, along with the falling ruble, will prompt up to 25 percent of migrants to leave Russia in the coming months.



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