Running: the Numbers

Istanbul, December 2022. Photo courtesy of Republic

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500 vacancies for military registration specialists were advertised from late September to last December last year, according to HeadHunter. Previously, this specialization was considered a rather rare and generally not very sought-after profile in the personnel departments of Russian organizations (private and public). For comparison: only 145 such vacancies were advertised in the whole of 2021. The military mobilization has changed the situation: since September — that is, in just three months — the number of such offers on the labor market has increased by about two and a half times (Superjob’s data also show the same thing). The reasons? One of them (apparently, the main one) is an increase in fines for lapses in paperwork: to avoid them, employers are willing to pay applicants for the popular vacancy 70-80 thousand rubles a month. And this is despite the fact that there is a shortage of a number of other specialists on the labor market (and, presumably, they are no less valuable than SMO-era personnel officers). The number of vacancies on Avito Jobs alone, according to a recent company study, increased by 69% in 2022. Most likely, the trend will continue, serving as a natural continuation of the outflow of people and, ultimately, personnel.

50% — the percentage of last year’s sales of existing housing in the Russian Federation made through a notarized power of attorney. This record figure for the entire observable history of the market, as calculated by investment company Flip, who were commissioned by Kommersant, clearly indicates that the sales trend was primarily shaped by property owners who had emigrated. The high volume of such transactions seems to be an anomalous phenomenon. In 2021, a power of attorney was the basis for sale in no more than 20% of deals. In 2020, this figure was 15%. It was 8% in 2019, and 5% in 2018. You ain’t seen nothing yet, though: the ongoing controversy over whether to confiscate the property of openly anti-war Russians who have left the country must be making an additional contribution to the process of selling apartments and houses, which was gaining momentum as it was.

$81.69 billion — the total amount of deposits by Russian nationals in foreign banks as of the end of November of last year, according to the latest data from the Russian Central Bank. (4.989 trillion rubles were recalculated at the exchange rate in effect on that date.) Over the past eleven months, the amount has more than doubled — and this is even if we rely entirely on the statistics of the Central Bank, which may not have a complete picture of what is happening. (Russian laws oblige citizens to report when they open accounts in foreign banks and move funds in them, but we cannot be absolutely sure that everyone strictly obeys them.) While one part of these funds remains in these bank accounts, the other goes to the purchase of real estate that, for the most part, is also located outside the Russian Federation.

16,300 houses and apartments in Turkey were purchased by Russian nationals in 2022, according to data published by the Turkish Statistical Institute (TurkStat), as studied by RBC. This is not just three times more than in 2021 (when Russian nationals purchased 5,400 housing units in the Turkish Republic), but also more than the total volume of such transactions over the past six years (16,200). It is not surprising that last year, for the first time, Russians took first place among foreigners in buying housing in Turkey, producing almost a quarter of the corresponding demand with their money. Earlier, we wrote that our compatriots purchased two thousand houses and apartments in Turkey in October 2022 alone, overtaking all other foreign home buyers in that country, as reported by TurkStat.

At first glance, the advantages of investing in Turkey are not entire obvious. Inflation in the country, according to TurkStat, exceeded 84% in November, once again breaking records previously established in the autumn of 1998. The Inflation Analysis Group, an independent Turkish entity, estimated that inflation had reached a whopping 170.7% . In addition, prices for real estate, which have rising robustly, can at any moment just as vigorously drop, taking into account, in particular, the rather murky prospects for “Erdonomics,” depending on the results of the upcoming presidential and parliamentary elections. According to Endeksa, in September, the average price for one square meter of housing in Turkey was about 12 thousand Turkish lira (approx. $644), while the average price per housing unit was just over 1.5 million Turkish lira (approx. $83,700). The term of return on investment in housing is estimated at nineteen years, although in the summer this figure was recalculated to seventeen years.

The intense interest on the part of Russian nationals in buying real estate in Turkey is primarily related to the prospect of obtaining Turkish citizenship, Anna Larina, head of the foreign real estate department at NF Group, explained to Republic. (In turn, having a Turkish passport makes it possible to obtain an American E-2 visa, which speeds up the process of immigrating to the United States.) In this sense, it is logical that Russians have become leaders in terms of the number of residence permits issued in Turkey — 153,000, of which, however, as the Turkish Ministry of Migration clarified, 132,000 are short-term tourist residence permits, which are valid for two years.

Turkey is one of the few countries (but not the only country) that is still open to Russian nationals and their private capital. Thus, as 2022 came to a close, Russian citizens took first place among non-residents in buying real estate in Dubai, Bloomberg recently reported, citing figures provided by the brokerage firm Betterhomes.

Withdrawing funds and setting up a new life abroad eloquently testify to the sentiments prevailing among the Russian urban middle class, primarily. Not all people who sell Russian real estate and buy foreign real estate are necessarily irreconcilable opponents of the regime. And yet, it is clear that the vast majority of these people do not want to live and raise children in Putin’s version of the future, which is practically incompatible with modern civilization. In its own way, it is symptomatic that Russians who support the government and dutifully follow it into its deadly adventures are also dissatisfied with what is happening. If it were possible, they would rather return to the past, to a point in time thirty, forty, or fifty years ago.

63% — the percentage of Russians, according to a December poll conducted by the Public Opinion Foundation (FOM), who regret the collapse of the USSR — that is, more than three decades after the event known in Kremlin mythology as “the greatest geopolitical catastrophe of the twentieth century.” Strictly speaking, the current longing for Soviet times cannot be considered a record: after the August 1998 ruble default, there were noticeably more Russians nostalgic for the Soviet Union — 85%. Nevertheless, an important indicator of public attitudes (as recorded, we should underscore, by a quasi-state polling service) is on the rise again, having increased by twelve percentage points since 2011.

It is clear that this sentiment is primarily voiced by the 46–60 age group (88% of whom are “nostalgic”) and to some extent, people aged 31–45 years (79% of whom are “nostalgic”), assuming that a considerable portion of these people associate the late USSR with their happy childhoods and wild youths. However, according to the poll, even today’s Russian youth, that is, people aged 18–30, mostly (64%) consider the Soviet era “generally a good time.” Of course, their judgments are based on the stories of older generations, and most importantly, on the inevitable comparison with what is happening with the largest post-Soviet country right now.

Source: Yevgeny Karasyuk, “Salvation in foreign real estate and a new bout of nostalgia for the USSR: timely numbers from Russia… and a few from Turkey,” Republic, 20 January 2023. Translated by Hambone Brewster, who is still implacably opposed to the Russian “pollocracy” and continues to be surprised that even otherwise smart cookies like Mr. Karasyuk continue to cite Russian “public opinion polls” as reliable sources of real information — rather than, at best, records of sustained trauma and unfreedom.

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