Sonnet 3 (“The President of Russia”)

the president of all the russias

Look in thy glass, and tell the face thou viewest
Now is the time that face should form another;
Whose fresh repair if now thou not renewest,
Thou dost beguile the world, unbless some mother.
For where is she so fair whose unear’d womb
Disdains the tillage of thy husbandry?
Or who is he so fond will be the tomb
Of his self-love, to stop posterity?
Thou art thy mother’s glass, and she in thee
Calls back the lovely April of her prime:
So thou through windows of thine age shall see
Despite of wrinkles this thy golden time.
But if thou live, remember’d not to be,
Die single, and thine image dies with thee.

Source: Poetry Foundation. Image: Scan of refrigerator magnet “The President of Russia” (actual dimensions: 5.5 cm x 8 cm). The magnet was purchased for ₽39 (approx. €0.56) at Bukvoyed Bookstore, 10/118 Ligovsky Prospect, Petersburg, on February 8, 2018.

Petersburg Police Arrest Alleged Ringleader of Antifascist Timur Kacharava’s Murder in 2005

timur-1Picture of Timur Kacharava at a memorial held at the scene of his murder on November 17, 2015. Photograph by David Frenkel. Courtesy of the Russian Reader

Man Accused of Murdering Antifascist Timur Kacharava Detained in Petersburg Twelve Years Later
Fontanka.ru
February 22, 2018

Alexander Zenin, the alleged organizer of an attack on antifascists on Ligovsky Prospect in 2005, was detained in the village of Pesochny yesterday evening.

According to Fontanka.ru’s sources, CID officers from Petersburg police headquarters found Zenin at 7:00 p.m., February 21, 2018, outside the house at 61 Proletarskaya Street in the village of Pesochny. The Interiory Ministry’s Petersburg Central District Office had put him on the wanted list a year after Timur Kacharava (1985–2005) was murdered and his university classmate Maxim Zgibay was assaulted. Zenin was arrested in absentia for murder and incitement of hatred and enmity.

The 33-year-old Petersburg had lived all this time without registering his residence. He was detained in an area of single-storey private houses on the outskirts of Petersburg.

The Investigative Committee considers Zenin the organizer of the November 13, 2005, attack on the antifascists, who were holding a rally on Ligovsky Prospect.* Zenin allegedly drew up the plan for the attack, during which Kacharava was stabbed six times in the neck, dying immediately at the scene. Zgibay managed to escape into the nearby Bukvoyed bookstore, but he had been wounded in the head and chest and was taken to hospital in serious condition.

Zenin is considered the last of the defendants in the case. All nine of his accomplices, seven of whom were under eighteen years of age at the time, were arrested in December 2005. Alexander Shabalin was sentenced to twelve years in a penal colony after the court ruled it was he who had stabbed Kacharava in the neck. The remaining defendants were sentenced to terms in prison ranging from two to twelve years.

* This is an outright falsehood. Kacharava, Zgibay, and their comrades had earlier in the day taken part in a Food Not Bombs event on Vladimirskaya Square, situated many blocks away from the murder scene. In any case, Kacharava and his friends did not hold a rally on Ligovsky Prospect on November 13, 2005. This is common knowledge, as are all the other details of Kacharava’s gruesome murder and the events preceding and following it. TRR

Thanks to Comrade DE for the heads-up. Translated by the Russian Reader. See my previous postings on the Kacharava case and its afterlife in the archives of this website and Chtodelat News.

Raising Russia’s Minimum Wage: A Band-Aid for the Poor

624869d68f57b0f0b20b1b6c8e808f58“Why did you open up your MROT?”

Who Will Win and Lose from the Rise in the Minimum Monthly Wage?
Ivan Ovsyannikov
Proved.rf
February 20, 2018

The minimum monthly wage in Russia [often referred to by its abbreviation, MROT] has been pegged to the subsistence minimum. This gift to employees will come into effect on May 1, 2018, when the minimum monthly wage will grow from the current ₽9,489 to ₽11,163 [approx. €160 at current exchange rates]. Regional minimum wages might be higher. For example, in Moscow, it will be set at ₽18,700 a month, while in Petersburg it will rise to ₽17,000. According to former federal deputy labor minister Pavel Kudyukin, the lowest paid category of workers will benefit from the rise in the minimum wage, but there will more losers.

••••••••••

Pavel Kudyukin, Russia Federal Deputy Labor Minister, 1991–1993; currently, council member, Confederation of Labor of Russia (KTR):

The principle that the minimum monthly wage cannot be lower than the subsistence minimum was incorporated into the Russian Labor Code way back in 2001, with the proviso, however, it would be implemented gradually.

The fact this decision has been made amidst less than propitious economic circumstances is undoubtedly an election campaign gambit. Theoretically, it is a measure that had to be taken. Having a minimum monthly wage lower than the subsistence minimum, especially Russia’s subsistence minimum, is simply shameful. Some people will stand to gain from the decision, but fairly broad segments of the populace will also suffer serious losses. But the propagandists, of course, will talk about the gains, especially as we are in an election campaign.

Minimum Minimorum
The general opinion of nearly all social policy experts is that Russia’s subsistence minimum is equivalent to the poverty level. It will keep a person from starving to death, but it would be a great exaggeration to call it a means to a full-fledged, dignified life.

International standards are also quite modest, of course: the subsistence minimum is defined for the poorest countries. Naturally, the developed countries have their own notions of the subsistence minimum. It is an essential tool of social policy. Various welfare payments are pegged to it, and it determines the level at which households are seen to need additional assistance. It is measured in different ways. Measuring the subsistence minimum in terms of the consumer goods basket, as is done in Russia, is deemed quite an archaic method, although the US uses the same method to calculate it.

The question, of course, is how the contents of the consumer goods basket are decided. Russia does not fully take into account the needs of the modern individual. It bases its calculations on the assumption people have no need of such an important social benefit as housing. The costs of utilities are at least included in the basket, but the possibility of improving one’s living conditions are not. Cultural needs are very poorly represented. Most of the so-called non-product needs are calculated through an adjustment, as a percentage of the consumer basket given over to products. It is no wonder the subsistence minimum, as it is imagined in Russia, satisfies neither the experts nor ordinary people.

The subsistence minimum has also been reduced from time to time with reference to drops in prices. This has also provoked a slew of questions. How are prices determined? Inflation affects different income brackets in very different ways. The poorer people are, the greater their personal level of inflation. If the price for a Mercedes suddenly drops, it does not mean the price of sunflower seed oil will not go up.

There is an important brake on seriously expanding the subsistence minimum in Russia. When the number of poor people is between fifteen and twenty percent, you can provide them with supplemental financial assistance and benefits. If the percentage of poor people is fifty percent or greater, it is quite tricky for the state to do anything for them. When half of the populace is receiving poverty assistance payments, either the payments are utterly paltry and spread thin or the state simply cannot make them.

The Winners
For people who earn the least of all, pegging the mininum monthly wage to the subsistence minimum does constitute an increase in wages. It is a quite decent increase in some cases, especially if you consider the fact there are people in Russia—Deputy Prime Minister Olga Golodets has estimated there are nearly five million such people—who received a salary lower than the previous minimum monthly wage.

The workers who really have a chance to improve their lot are mainly those employed in the public sector in various auxiliary positions: maintenance personnel, cleaners, and so on. They will earn more.

The Losers
Formally, there will be winners, but there will be more losers. The rise in the minimum monthly wage will cause serious problems in the regions, since poor public sectorsworkers are usually paid from regional and municpal budgets. The new expenditures they incure will be only partly covered by transfers from the federal budget. Regional officials will once again have to optimize some things and lay off people. This is a quite significant aspect of the headache generated every time the parliament passes laws or the president signs decrees increasing payments to people who do not get them from the federal budget.

The rise in the monthly minimum wage will be a considerable problem for a number of businesses, especially small businesses. There is a risk it will expand the gray sector of the employment market. This is also an unpleasant consequence for workers, for when they are employed in the gray sector, payments to the Pension Fund are not deducted from their wages, and they lose pension payments they would have received in the future.  People in Russia usually disregard this, because, one, they do not actually believe they will live until pension age, and two, they really do not believe the state will not think up more mischief by the time their pensions come due.

Another important question: what is included in the minimum monthly wage? Currently, there are several court rulings that the minimum monthly wage should not include any sort of compensatory pay, such as the northern hardship bonus. This pay must be disbursed over and above the minimum wage. These are sound rulings, but the problem is Russia does not have a precedents-based judicial system, and one court’s ruling is anything but obligatory for other courts. Every individual whose minimum monthly wage includes compensatory or incentive pay must file suit in court to have his or her wages individually recalculated. So, the problem is not only the amount of the minimum monthly wage and how it correlates with the subsistence minimum but also what is included in the minimum monthly wage.

A Band-Aid for the Poor
Increasing the minimum monthly wage cannot be implemented in isolation. It should be complemented by serious reforms in other areas. We must radically change our entire social and economic policy, including, as an obligatory part of such reforms, our taxation policy. It has not always been understood in Russia that there is no such thing as a welfare state* without progressive taxation. The introduction of progressive taxation, of course, will be an unpopular measure amongst a large number of people. Plus, given the inefficiency of the Russian state and the social irresponsibility of the rich, such an attempt would push the growth of the gray economy.

Poverty is not only a problem of social policy. It is not eliminated by paying people social benefits. We need a completely different economic policy that would give people the opportunity to work in well-paid jobs and thus make decent pension contributions. The problem of poverty is not solved merely by redistributing resources, although it is also necessary. Treating poverty with social benefits means treating the symptoms. Treating poverty with economic growth means treating the causes.

* According to Article 7 of the Russian Federal Constitution, the Russian Federation “is a social State whose policy is aimed at creating conditions for a worthy life and a free development of man [and where] the labour and health of people shall be protected, a guaranteed minimum wages and salaries shall be established, state support ensured to the family, maternity, paternity and childhood, to disabled persons and the elderly, the system of social services developed, state pensions, allowances and other social security guarantees shall be established.” For more on the practical implications of this constitutional guarantee in a quasi-populist kleptocratic tyranny, see Ilya Matveev, “The ‘Welfare’ State Doesn’t Get Any Better Than This,” Chtodelat News, October 12, 2012.

Cartoon by Alexei Merinov. Courtesy of Moskovsky Komsomolets. Translation by the Russian Reader

Good Morning!

DSCN4427

Jurgis Baltrušaitis
Black Sun (1908)

Life is frittered away in anguish and shock,
Its way unbound.
Each moment, like a step towards the chopping block,
Makes the chest pound.

The brighter the day, the darker the strife,
The duller the hour.
As in the past, the minute tells lie after lie
O’er and o’er.

My home, my abode is the peopleless vast
of earthly fields,
Where my rebellious soul is aghast
And weeps like a child.

In the moon’s hour, like a raven on a grave,
I go wan.
Having seen through life’s deceit, I anticipate
Oblivion.

Source: World Art. Photo and translation by the Russian Reader

Sonnet 2

DSCN4357

When forty winters shall beseige thy brow,
And dig deep trenches in thy beauty’s field,
Thy youth’s proud livery, so gazed on now,
Will be a tatter’d weed, of small worth held:
Then being ask’d where all thy beauty lies,
Where all the treasure of thy lusty days,
To say, within thine own deep-sunken eyes,
Were an all-eating shame and thriftless praise.
How much more praise deserved thy beauty’s use,
If thou couldst answer ‘This fair child of mine
Shall sum my count and make my old excuse,’
Proving his beauty by succession thine!
This were to be new made when thou art old,
And see thy blood warm when thou feel’st it cold.

Source: Poetry Foundation. Photo by the Russian Reader

(Don’t) Pay Your Rates

DSCN4253A Petersburg housing services worker risking life and limb to clear snow off the roof of a tenement building in the city’s downtown. Photo by the Russian Reader

Russians Are Increasingly Not Paying for Their Flats
Growing Debts for Housing Services and Utilities Reflect Obvious Social Ills
Pavel Aptekar
Vedomosti
February 21, 2018

The increase in housing and utilities rates, occuring alongside a protracted downslide in personal income, has produced an abrupt upturn in debts for housing services and utilities, and collections of arrears in court, especially among low-income segments of the Russian populace.

The Russian Supreme Court has published statistics on the collection of debts for housing services and utilities. In 2014, 2.1 million such cases were ajudicated by the courts. In 2017, the figure was 5.4 million cases, and the total amount of recoverable debt had doubled, from ₽60 billion to ₽120 billion—taking into account, however, the debts of legal entities that paid for heating irregularly. Nevertheless, these figures reflect both an alarming trend—utilities payments have increasingly become a burden for disadvantaged parts of the populace—and the unwillingness of the rich to pay the bills for flats they have purchased as investments.

Generally, the collection of payments for utilities and housing services proceeds calmly. According to the Institute for Urban Economics, 95–97% of apartment residents pay their bills on time, but an individual’s timeliness in paying their bills depends on their income, as well as the climate and budget priorities of the Russian region where they live. According to Rosstat, household expenses on utilities and housing services per family member rose between 2014 and 2016 from ₽1,511 to ₽1,816, i.e., by 20.2%. The share of total household expenses spent on utilities and housing services rose during the same period from 10.3% to 11.3%.

For the sake of budget savings, many regions have reduced subsidies on housing and utilities, which has seriously increased the amount of money spent on these services by local populations, says economist Natalya Zubarevich. For example, housing and utilities account for 25.8% of paid services in Kursk Region, while in neighboring Oryol Region the figure is 41.1%. In Khabarovsk Territory, housing and utitilies expenses make up 26.7% of the cost of all services, while in Amur Region, which has a comparable climate, the figure is 45.8%.

In 2016, housing and utilities expenses accounted for 15.2% of all expenses among the ten percent of Russian families with the lowest incomes, and 14.8% of all expenses among the ten percent of families who were less poor. People who have to scrimp on everything are often forced not to pay for housing and utilities simply in order to survive. However, according to Mikhail Men, Minister for Construction and Housing, some of the arrears are owed by the proprietors of apartments bought as investments, who do not want to pay the bills for vacant flats.

According to Rosstat, the total amount of money owed by the Russian populace for housing and utilities in 2014 was ₽111 billion; in 2015, it was ₽135.8 billion. Subsequently, the debts have grown more quickly. In October 2016, Andrei Chibis, Deputy Minister for Construction and Housing, informed TASS News Agency they had reached ₽270 billion, and in July 2017, Men cited the figure of ₽645 billion [approx. €9.2 billion].

This increase reflects an obvious social ill. Housing and utitilies fees are billed by private companies, who turn not only to the courts to collect unpaid bills but also to the services of illegal debt collectors. Such circumstances could engender serious conflicts, especially in small towns with poor populations.

Translated by the Russian Reader. See my numerous previous posts on the problem of debt in Russia.

How Rosstat Stopped People’s Incomes from Falling by Fudging the Stats

1024px-Centrosoyuz_Moscow_-_Ak_Sakharova_viewThe Tsentrosoyuz Building, on Sakharov Avenue in Moscow, was designed in 1933 by Le Corbusier and Nikolai Kolli. Originally built as headquarters of the Central Union of Consumer Cooperatives, it now houses Rosstat and the Russian Federal Financial Monitoring Service. Photo courtesy of Wikipedia

Rosstat “Stopped” Populace’s Incomes from Falling
Analysts Accuse Agency of Fudging the Figures
Yelizaveta Bazanova and Filipp Sterkin
Vedomosti
February 19, 2019