Latifundism in Russia

Land Prices in Russia Reach Five-Year High
Farmland may become cheaper next year
Irina Sinitsyna
Vedomosti
December 6, 2017

The cost of farmland in Russia’s primary grain-producing regions reached its five-year peak in 2017, as valued both in rubles and dollars. This conclusion was reached by analysts at Sovecon, an agro industry research center, based on the results of an annual survey.

Amongst the fundamental reasons were the record profits made by agricultural producers in the 2016–2017 season, sparked by good harvests and relatively high ruble prices for most commodities, says Andrei Sizov, Sovecon’s director.

In addition, there has been consistently strong demand for land on the part of predominantly Russian capital in the guise of industry-specific investors, Sizov adds. Amongst the most active public buyers, Sizov identified the agricultural division of Sistema, the N.I. Tkachov Agrocomplex, owned by the family of Alexander Tkachov, Russia’s agricultural minister, and Volgo-Donselkhozinvest, owned by the family of Sergei Kukura, adviser to Lukoil president Vagit Alekperov. New players, such as the companies owned by Roman Avdeyev, have also continued to expand into the agro business. On the year, from the fourth quarter of 2016 to the third quarter of 2017, Sistema’s subsidiaries increased their land holdings by one and a half times, from 247,000 hectares to 380,000 hectares. In the spring, Volgo-Donselkhozinvest closed a deal to buy the Russsian assets of the Swedish company Black Earth Farming: a total of 244,000 hectares. In late 2016, Avdeyev’s investment vehicle Rossium purchased 99% of the Lipetsk agro holding Agronova-L, which grows grain and oilseeds on more than 70,000 hectares in Lipetsk and Tambov regions.

At the same time, Russian farmlands are still undervalued compared to agricultural land in other countries, for example in Eastern Europe, adds Sizov. In several regions such as Kursk Region, however, land prices are unjustifiably inflated, argues Alexander Krasnov, head of the legal department at the agro holding Miratorg.

Land has gone up in price in recent years, but this year growth slowed or even halted, notes Vladislav Novoselov, managing director of agro industy consulting company BEFL. According to Novoselov, the main cause of the previous price rise was an increase in agriculture’s profitability, due largely to devaluation.

In the coming year, the growth of the value of land in southern Russia could slow down significantly, and in regions located farther from export ports, land prices could stagnate altogether or even decrease, argues Sizov.

Domestic prices for all major agricultural products, especially grain, fell precipitously this year amidst a bumper grain harvest, explains Sizov. According to Sovecon, in November, the main export commodity, fourth-class wheat, was 10% cheaper in southern Russia than a year ago, 20% cheaper in central Russia, and cheaper by a third in the Volga River basin. In 2017, prices for all major commodities declined significantly, Novoselov agrees, and problems with storage and transportation considerably reduced the incomes of market players. Many of yesterday’s land buyers have taken a break in anticipation of lower prices, says Novoselov.

Especially in Russia’s central regions, land prices have already fallen, Krasnov points out.

“You can now buy land for 10% to 15% less than at the beginning of the year,” he says.

At the same time, he adds, the quality of the land on offer has improved. There is a selection of large land plots of 5,000 hectares to 6,000 hectares, and there is more cultivated land on offer. Earlier, they would have been sold for a premium, he recalls, but not anymore.

In addition, the number of speculators has decreased significantly, continues Krasnov. Holding land in anticipation of price rises is no longer profitable due to high taxes and fines for those who do not cultivate their land.

fullscreen-4ltPrices of farmland in Krasnodar (red), Rostov (dark blue), Stavropol (light green), Voronezh (beige), Tambov (violet), and Kursk (light green) from 2012 to 2017, as valued in rubles/hectare and dollars/hectare, and compared with the prices of farmland in Great Britain (Wales and East Anglia), the US (Kansas and Iowa), the EU (Romania), Brazil (Mato Grosso), Uruguay, and Russia (Krasnodar), as valued in dollars/hectare. Source: Sovecon. Courtesy of Vedomosti

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Agrocomplex Owned by Ag Minister’s Family Fourth Largest Farmland Holding in Russia
It lacks 4,000 hectares to claim third place
Yekaterina Burlakova
Vedomosti
April 25, 2017

The three leaders, as determined by the consulting company BEFL, have not changed over the past year. In first place is Igor Khudokormov’s Prodimex group (including Agrokultura’s assets), which controls 790,000 hectares of farmland. Rusagro surpassed Miratorg: they now own 670,000 hectares and 644,000 hectares, respectively (cf. the infographic, below). Rusagro’s director general Maxim Basov confirms the figures. A spokesperson for Miratorg refused to comment on the list. Nikolai Shevchenko, head of Prodimex’s agro division, cites figures that do not take into account Agrokultura, since it is Khudokormov’s personal project, leaving a total of a little over 600,000 hectares.

The N.I. Tkachov Agrocomplex in Krasnodar Territory has risen from sixth place to fourth place, having increased its holdings by 40% to 640,000 hectares. The agrocomplex lacked a mere 4,000 hectares to join the top three. The N.I. Tkachov Agrocomplex was found in 1993 by the father of the current Russian agriculture minister, Nikolai Tkachov. The company grows grain, is one of the major producers of raw milk in Russia, and the second largest rice producer. The agrocomplex also produces produces pork and beef, and has been developing a chain of stores. It currently runs over 600 stores in Krasnodar Territory, Stavropol Territory, and Rostov Region.

In recent years, Tkachov Agrocomplex has vigorously increased its land holdings: in last year’s BEFL rating, it entered the top ten for the first time. In 2015, it purchased the assets of the major agro holding Valinor, which owned land in southern Russia. A former top manager at Valinor informed Vedomosti the Tkachov family acquired 170,000 hectares in the deal. The agrocomplex continued its acquisitions in 2016. In the summer, it was reported the company had purchased over 30,000 hectares of rice fields, previously owned by the Razgulyay Group. Several months later, the Tkachovs bought Parus Agro Group, a major Krasnodar agro holding, from Andrei Muravyov, ex-president of Siberian Cement and ex-Qiwi shareholder. Parus Agro had controlled nearly 100,000 hectares of arable land in Krasnodar Territory, Stavropol Territory, and Adygea. Over the past three years, Tkachov Agrocomplex has increased its land holdings by 440,000 hectares, more than tripling them, according to BEFL.

Tkhachov Agrocomplex director general Yevgeny Khvorostin declined to comment for this article.

Vladimir Yevtushenkov‘s Sistema increased its land holdings most significantly. Its subsidiary, the agro holding Steppe, added 200,000 hectares over the past year, according to BEFL. Taking into account RZ Agro, which Sistema co-owns with the Louis Dreyfus Company, the corporation’s land holdings have risen to 350,000 hectares. Steppe has continued to increase its land holdings by acquiring assets, as stipulated by its overall strategy, says a spokesperson for Steppe. The goal is to increase its holdings to 500,000 hectares, company management has announced.

The past year was quite productive for major agro holdings, according to BEFL’s survey. The companies included in the 2017 list own a total of more than 12 million hectares of land, which is approximately 14% more than a year earlier. BEFL managing director Vladislav Novoselov says the last three years have witnessed a vigorous consolidation of the market. The fact is that, due to devaluation of the ruble, the return on investment in crop production has increased. Sistema’s spokesperson also agrees with this assessment.

In 2016, for the first time in three years, not only ruble, but dollar prices began to grow, Sovecon reported earlier. In Russia’s southern regions, agricultural commodity prices grew from 31% to 83%; in the central regions, from 6% to 17%; and in the Volga River basin, from 1% to 36%.

Late last year, however, it was obvious that in the future the profitability of crop production would not be so high. Domestric prices for agricultural produce have not been growing, and they have even declined for some commodities, partly because of the ruble’s resurgence, says Novoselov. Rusagro’s Basov confirms this is the case. Nevertheless, his agro holding has continued to acquire land. Taking into account the decreasing margin, land prices must drop for deals to go through, he concludes.

mobile_high-2p72017’s top ten corporate owners of farmland in Russia, in thousands of hectares. The second set numbers (in gray, in the far right column) indicates their places in the 2016 rating. 1. Prodimex + Agrokultura (790,000 ha); 2. Rusagro (670,000 ha); 3. Miratorg (644,000 ha); 4. N.I. Tkachov Agrocomplex (640,000 ha); 5. Ak Bars Agro (505,000 ha); 6. Ivolga Holding (489,000 ha); 7. Rosargo (400,000 ha); 8. Avangard-Agro (390,000 ha); Steppe + RZ Agro (350,000 hectares); Dominant Group (320,000 ha). Source: BEFL. Courtesy of Vedomosti

If you are interested in how this runaway latifundism has affected family farming in Russia, read my series of posts on the Krasnodar farmers’ protest movement and their allies in the Russian independent truckers’ movement.

Translated by the Russian Reader

“Life Is Very Difficult for People”

“Life Is Very Difficult for People”
Yelizaveta Mayetnaya
Radio Svoboda
November 30, 2017

The announcement first appeared on the doors of a cafe in St. Petersburg, and then on the social media networks: “Olivier salad, kharcho, vegetable ragout with chicken, compote or ale, bread. 200 rubles. Free of charge to veterans and impoverished pensioners.” The whole town learned about the charity campaign literally within a few days, and old people flocked from all ends of the city to enjoy the free lunch special.

No one asks for any letters, verifying a person’s income. Pensioner ID cards are not required, either. You just have to sit down at a table and you will be fed.

Czech Yard, the cafe that will not let pensioners go hungry, is a family business. 25-year-old Alexandra Sinyak, the cafe’s co-owner, came up with the idea for the charity campaign.

“It all started with an old man who came into eat, but had little money on him. My husband was working in the cafe that day. He felt sorry for the man and said that lunch specials in our cafe would be free to pensioners,” recounts Sinyak. “The old man came for lunch every day for three weeks or so. We thought we should be feeding all the old people in our neighborhood, and not once, but on a permanent basis. We hoped our colleagues would support us, and one or two cafes that fed old people would pop up in each district. We did not imagine, of course, that they would come from all parts of the city to our cafe, but life is clearly very difficult for people. They spend forty minutes, an hour traveling one way to come here. We feed everyone. We do not turn anyone down.”

At first, Sinyak recalls, for some reason the old women brought their pension receipts along with them. The amounts listed on them were 6,200 rubles, 8,000 rubles, and 10,000 rubles. [That is, these women receive, at most, a pension of 143 euros a month.] They brought other receipts as well, such as the receipts for their apartment maintenance bills, which contained almost identical sums. [In fact, the amount of my latest apartment maintenance bill is 6,285 rubles and 20 kopecks. It tends to be lower by two or three thousand rubles in the summer months, when the centralized heating system is shut off—TRR.] Many of them have adult children who are employed, but they cannot help their own old folks, because they are barely making ends meet themselves.

According to Rosstat, around two million employed Russians are paid wages below the subsistence level. If we account for the fact that this money is also spent on other family members, the number of employed but impoverished Russians is over twelve million people or 16.8% of the population, according to calculations made by experts at the Russian Federal Government’s Analytical Center. Analysts at the World Bank have argued that the percentage of economically vulnerable people in Russia is over fifty percent.  According to a World Bank report, the proportion of Russians with a daily income of less than $10 has risen to 53.7%, while 13.8% of Russians spend less than 5$ a day.

Sinyak has seen her share of employed poor people in hospitals and rehabilitation centers. Four years ago, she and her husband gave birthto a premature baby. Doctors told the couple the girl would not be able to walk, talk or see, and they could not even dream of sending her to school. The Sinyaks threw all their efforts into making their baby daughter well. Now she has a slight limp, but is otherwise a normal child.

“We organized charity concerts for the children, and my husband and I simply gave their parents money because we really wanted to help them,” says Sinyak. “Now we are thinking about organizing a New Year’s party for the old people.”

At first, they posted the announcement about the free lunch specials on the cafe’s front door, but only one person showed up. It was only after Sinyak posted the announcement  on social media sites that the whole city discovered her and her husband’s lunches. Now they serve at least twenty-five free lunch customers daily.

То самое объявление

The initial announcement outside the cafe: “Dear patrons! The restaurant invites needy people of pension age and veterans to enjoy free lunches daily from 10 a.m. to 1 p.m.” The post on the VK social network reads, “Czech Yard Cafe at 73 Sixteenth Line. All veterans and elderly people can eat lunch for free from noon to four p.m. […] We will support all cafes that can afford to do it. There are three of us for the time being. We are reposting this. Maybe a whole bunch of cafes in every district of the city will join us.”

One of their customers is 66-year-old Lyubov Volkova. She lives nearby, but she ordinarily does not walk on the side of the street where the cafe is located. She saw the announcement on VK. She spread the word to all her girlfriends in the neighborhood so they could lunch together.

“The lunch specials are a tremendous support to me. I worked my whole life. I have the title of veteran worker, but my monthly pension is 10,200 rubles, and the maintenance bill for my two-room flat is at least 7,000 rubles during the winter. I’m left to my own devices,” says Volkova, sighing heavily. “The electricity has been shut off for non-payment, and I have 15,000 rubles in unpaid fines, but I have not paid them, because I do not have the money to pay them. There are lots of people like me in our district. The people at the housing maintenance service and the electric company have become insolent. They constantly raise rates. They could not care less whether we can pay their bills or not. It is a good thing that Alexander appeared on the scene. Her cafe is charming and serves tasty food, and it is just nice to come here.”

Александра Синяк с мужем Евгением и пенсионеркой Любовью Волковой

Alexandra Sinyak, her husband Yevgeny, and pensior Lyubov Volkova

Volkova leads a rather active lifestyle. She is a member of the human rights public monitoring commission, inspecting pretrial detention centers and prisons, and she also volunteers at several public veterans organizatons. But all this work is unpaid.

“Most of the work in Russia is done by migrants. Our own people struggle to make ends meet, and they cannot get jobs. I have two sons, but they themselves have to squirm to feed their families. And I have lots of girlfriends: we left jobs at research institutes in the nineties to trade on the streets in order to raise our children. The situation was no better: everyone’s pensions were tiny. You know, I really love Russia, but everything that is happening makes me terribly sad. I want to go back to the Soviet Union. There was stability and calm then. Sure, we did not live high on the hog, but nor did we go begging. We had enough to pay for the essentials.”

Igor Bukharov, president of the Federation of Restaurateurs and Hoteliers of Russia, says the vast majority of restaurateurs have been feeding the needy for many years, but they do not talk about it.

“Societies for disabled people ask us for help, as do war veterans, as do veterans of military operations, as do the orphanages. Who doesn’t ask us for help?! Some ask to be fed breakfast, some ask to be fed lunch, some ask for help with charity suppers, and I have never heard of anyone being turned down,” claims Bukharov. “Generally, I think helping the needy is everyone’s personal affair, and we should not talk about it.”

For the time being, according to Alexandra Sinyak, they have been contacted by one only restaurant, in Sestroretsk, about arranging lunches on a permanent basis, rather than a one-off basis, and businessmen have turned up who are willing to supply their cafe with produce. Municipal councils in some large cities arrange free lunches for pensioners, but there are waiting lists, and the pensioners have to provide documented proof of their neediness. On the other hand, you can then eat free twenty-one times per quarter, says Lyubov Volkova.

Social organizations also provide assistance in the form of produce and groceries. For example, the Rus Food Fund has distributed 20,000 tons of produce and consumer goods to the needy during the five years it has operated. Right now, for example, the fund has been collecting “Food for the Backwoods” in time for the New Year’s holiday. The food will be delivered to the poor and lonely who live in villages in seven regions. Fifteen thousand people will receive assistance.

Anna Kirilovskaya has taken charge of so-called foodsharing in St. Petersburg. Volunteers collect food from various businesses, and distribute it for free to the needy. Originally, Kirilovskaya explains, the idea was to save edible produce from being discarded. The project now employs around 400 volunteers. The produce is collected almost daily, and thirty businesses give away their leftovers on a constant basis. According to the project’s website, over 113,000 kilos of produce have been saved in the different regions where foodsharing exists and there are teams of foodsavers.

“The volunteers decide themselves what to do with the food. They can take unsold soup from a cafe and pour it into sixty packets, freeze them, and eat them for the next two months. But I know that many of our volunteers take care of neighbors, families with lots of children, and old people. Some volunteers will take leftover meat that has been given to them, turn them into cutlets, and hand them out to the people they look after, but we get the most donations from vegetable warehouses. We mainly distribute fruits and vegetables,” says Kirilovskaya.

According to Kirilovskaya, the businesses most willing to help are owned by green-minded people who promise their customers fresh products and goods.

“Imagine how bakers at a private bakery feel when they have to throw their unsold goods into the trash in the evening?” Kirilovskaya wonders. “But everyone, employers and employees, likes giving away food to the needy. By the way, employees appreciate their employers more when they have this considerate attitude to their work.”

Alexandra Sinyak says she does not know what to do if hundreds of people come every day for their lunch specials, and whether she and her husband can continue to feed them at their own expense for very long.

“We decided we would do it as long as we were able,” she says.

In the coming days, she plans to make the rounds of the cafes in neighboring districts to personally persuade their owners to provide similar lunches to their own local pensioners. Sinyak is certain that someone will respond to her request.

Lyubov Volkova argues that Sinkyak should keep a count of the people who come for lunch, and if there are really too many of them, to refuse to serve everyone.

“I would not want these wonderful, kind folks to end up beggars themselves because of us poor pensioners,” she says.

Translated by the Russian Reader. Thanks to Comrade Preobrazhenskaya for the heads-up

The Subtle Art of Vanganizing

Human languages are amazing things. In English, for example, it is relatively easy to change a word’s part of speech simply by using it as a different part of speech. So, we can wonder (verb) when I will publish something really worthy of wonder (noun) on this blog.

Since Russian, on the other hand, is a so-called synthetic language (i.e., a language whose nouns, verbs, adjectives, and pronoun are fully declined and conjugated) you have to do a bit of prestidigitation to turn, say, a noun into a verb. The easiest (though by no means the only) way to do this is to add the verbalizing suffix -ovat’ to the noun or other part of speech in question.

One of my favorite such newfangled verbs is vangovat’, which means “to predict, to prophesy.” It has a heavily ironic connotation, since it was formed from the familiarized Christian name of the blind Bulgarian mystic and clairvoyant Vangelia Gushterova, née Dimitrova (1911–1996), more popularly known as Baba Vanga or Grandmother Vanga.

Despite having passed away over twenty years ago, Baba Vanga and her prophecies are still extraordinarily popular amongst Russians who go in for a what an old friend once referred to as “spooky knowledge,” while she is an object of ridicule amongst sane Russians. I have no evidence to prove it, but I take it that it was a member of the latter group who coined the verb vangovat’, which we will translate as “to vanganize.”

I thought of the verb this morning as I was perusing the electronic edition of one of Russia’s most respectable newspapers, the liberal business daily Vedomosti. Today’s edition features a gallery of photos of the stadiums in major Russian cities that will host the 2018 World Cup later this year.

An innocent enough feature, you would think, before I realized that Vedomosti‘s caption writer might have engaged in some full-blown vanganizing, to wit:

default-1d86“The arena in St. Petersburg is meant for 67,000 spectators. Here, the Russian team will play one match in the group stage and will get through the semifinals.” Photo courtesy of Yevgeny Yegorov/Vedomosti

But maybe not. The original caption (“Арена в Петербурге рассчитана на 67 000 зрителей. Здесь сборная России сыграет один из матчей группового этапа и пройдет полуфинал”) could also be translated as follows: “The arena in St. Petersburg is designed for 67,000 spectators. Here, the Russian team will play one match in the group stage, and the semifinals will take place.” That is, with or (probably) without the Russian team.

Whatever the case, the so-called Zenit Arena, situated on the western tip of Krestovsky Island, has been like a bad Baba Vanga prophecy from the very start. First of all, to make way for its eventual construction, the old Kirov Stadium, a lovely immense thing designed by the great constructivist architect Alexander Nikolsky, a grand oval open to the sky, the sea, the sun, and all the elements, and surrounded by a beautiful park, was demolished in 2006. Quite illegally, I might add, because it was a federally listed historical and architectural landmark.

IMG_2019

The Kirov Stadium in the summer of 2006, when it briefly served as the site of a sparsely attended alterglobalist counterforum, organized in response to a G8 summit, hosted by President Putin in the far south of the city, in the newly restored Constantine Palace in the suburb of Strelna. Enclosing the alterglobalists in the already condemned Kirov Stadium was a brilliant move on the part of local authorities, who thus invisibilized the entire event and made it nearly inaccessible to the general public. Although a subway station has been planned for the new stadium, it was not in operation in 2006 and probably will not be online in time for the World Cup, either. Photo by the Russian Reader

Since then, the project to construct the new stadium has been a raucous debacle, involving endless delays and extreme cost overruns; the employment of North Korean slave laborers, one of whom was killed on the job; the multiple firings and hirings of general contractors and subcontractors; and numerous revelations of newly discovered structural defects.

The construction of Zenit Arena has also been part of the general uglification and rampant redevelopment of the so-called Islands, a series of parklands situated on several smallish islands in Petersburg’s far north. It now seems that city officials and developers thought all those parks and all that greenspace were taking up too much valuable potential real estate and pumping too much oxygen into the atmosphere, because in recent years they have gone after the Islands and their environs with a vengeance.

Zenit Arena, the Western High-Speed Diameter (ZSD), and Gazprom’s Lakhta Center skyscraper are merely the most visible aspects of this mad greedfest, its crowning jewels.

OLYMPUS DIGITAL CAMERAGazprom’s Lakhta Centre skyscraper, under construction, as seen in April 2017 from another site of urban planning greed and madness, a nearly 500-hectare “reclaimed” island plopped in the Neva Bay immediately west of Vasilyevsky Island. The new island, which remains nameless, will eventually be built up with high-rise apartment blocks. Local residents vigorously protested the land reclamation project in the planning stages, but the authorities roundly ignored them. Photo by the Russian Reader

Getting back to my original topic, I think the Vedomosti captioner might have been taking the piss out of readers, after all. Here is another photo and caption in the series:

default-1huy

“The stadium in Yekaterinburg is a cultural heritage site. Part of the historical façade has remained after the reconstruction.” Photo courtesy of Sport Engineering Federal Unitary Enterprise

When I slipped this photograph onto my desktop, the filename caught my eye: “default-1huy.jpg.” I took this to mean that someone at Vedomosti was not terribly impressed with Yekaterinburg’s blatantly criminal attempt at “historical preservation” and decided to tag it with one of the most powerful cursewords in a language positively crawling with them. But since this a family-oriented, Christian-values website, I will let the experts explain the particulars.

Like the Sochi Olympics, I vanganize that the 2018 World Cup will be an unmitigated disaster for any and all locals who do not manage to escape the vicinity of the venues in time. I would also vanganize that the World Cup has already been a disaster for cities such as Petersburg and Yekaterinburg, which had venerable, heritage-listed stadiums put to death for the purpose, but I don’t think you can vanganize retroactively. TRR

Life on the Installment Plan, Part Two

OLYMPUS DIGITAL CAMERA
“Sovkombank. Are you a pensioner? Your loan is approved!” Photo by the Russian Reader

Russians Borrowing More before Payday
The average microloan’s amount has increased by 14% on the year
Lyudmila Koval
Vedomosti
November 23, 2017

On the year, the average so-called payday loan has increased by 14.1% to 10,500 rubles [approx. 150 euros], according the National Credit History Bureau, who have compared people’s borrowing from microfinance institutions in the third quarters of 2017 and 2016.

The National Credit History Bureau arrived at its findings after analyzing data submitted to it by 3,000 microfinance institutions.

Young people have experienced the most trouble with their personal budgets. The average microloan in the under-twenty-five segment of borrowers grew by 23.6%. In the third quarter of 2017, it amounted to 8,100 rubles. The average microloan also grew considerably in the segment of borrowers aged between 25 and 29—by 18.7% to 10,300 rubles.

In turn, over the last year, the average microloan has increased the least among pension-age borrowers. Among borrowers between 60 and 65, it grew by 4.1% to 9,200 rubles, while among people over 65, it grew by 7.9% to 8,800 rubles.

The average amounts of microloans has been growing among all age groups of borrowers, but it has increased most of all in the under-thirty segment, emphasizes Alexander Vikulin, the National Credit History Bureau’s director general. According to Vikulin, microfinance organizations have always been attractive to young people, despite the fact this segment of borrowers is quite risky.

Although microfinance loans are considerably more expensive than bank loans, Russians continue to apply for them enthusiastically, often for quite original purposes. In approximately 59% of cases, Russians take out microloans for urgent needs or conceal why they are borrowing, the company Domashnie Dengi (Home Money) discovered. 15% of borrowers take out loans for home repairs, while 6% borrow money to buy appliances.

Translated by the Russian Reader

Common People

Patriarch Kirill Sees Russia’s Future in Unity of Common People and Elites
Vera Kholmogorova
RBC
November 1, 2017

Kirill, Patriarch of Moscow and All Russia, outlined his vision of Russia’s future. According to the patriarch,  it consists in the complementarity and unity of the elites and common people. 

Patriarch Kirill. Photo courtesy of Valery Sharifulin/TASS

The unity of the common people and elites is the future of Russia, argues, Kirill, Patriarch of Moscow and All Russia. He discussed this during a meeting of the World Russian People’s Council, reports our correspondent.

“Russia is now looking for a vision of the future. I think the vision of the future is a vision of the common people and a vision of the elite achieving complementarity. The elites and common people should be indivisible, a single principle and single whole,” he said.

The patriarch stressed, however, it was “impossible to artificially appoint an elite.” According to him, it had to be educated,” just as the common people had to be educated.

“If we do not educate our own common people, others will develop them,” warned the head of the Russian Orthodox Church.

Patriarch Kirill also said Russia had “acquired immunity to all forms of political radicalism” in the one hundred years that had passed since the events [sic] of 1917.

“Russia has enough strength to remain an island of stability. Our society is now consolidated. The tragic civic split [that existed in 1917] does not exist,” he stressed.

According to the patriarch, “we can rejoice in unification and reconciliation” and “be an example and support for all those who want to survive the current global crisis.”

“The common people are not naturally inclined to revolution,” he argued.

The 21st World Russian People’s Council was held on November 1 in Moscow’s Christ the Savior Cathedral. The event’s stated topic was “Russia in the 21st Century: Historical Experience and Prospects for Development.” It was attended by Patriarch Kirill, clergymen, MPs, and public figures.

 

 

Should You Sue for Wages?
Russians Don’t Believe They Should Fight for Their Labor Rights: How Wrong They Are
Pavel Aptekar
Vedomosti
November 1, 2017

Economic turmoil has not only made Russian workers uncertain of the future but also indifferent to violations of their labor rights, e.g., wage arrears, increases in the length of the work day, and the absence of holidays. Workers rarely file complaints with courts and oversight bodies, fearing not only a negative reaction from management but also closure of their companies due to inspections by the state. However, in some cases, appealing to the courts for help is a quite effective means of defense.

According to a survey conducted in June 2017 among 1,600 workers over the age of eighteen in thirty-five Russian regions by the Center for Social and Political Monitoring at RANEPA’s Institute of Social Sciences, violations of labor rights are not uncommon. In practice, nearly half of the workers surveyed (42%) had encountered them. The most common violations were wage arrears (24.1%), changes in work schedules (22.5%), and failure to provide paid leave or refusal to pay it (13.1%).

Meanwhile, the apathy of workers who encounter violations has increased. The percentage of those who did not seek redress for violation of their rights has increased from 49.7% of those polled in 2006 to 54.4% of those polled in 2016–2017. Workers have lost faith in nearly all means of rectifying situations. The percentage of those who complained to management had dropped from 41% to 36.7%; to a trade union, from 8% to 5.1%; to the courts, from 7.4% to 4.1%; and to the civil authorities, from 6.7% to 2.9%.

The unwillingness of employees to protect their rights reflects the idleness of most Russian trade unions, but it does seem to make sense to appeal to the courts, at least in the case of nonpayment of wages.

According to the Supreme Court’s ajudication department, the number of such complaints has been constantly increasing. In 2007, there were 350,242 such complaints; in 2013, 459,016 complaints; and in the first six months of 2017, 243,861 complaints. Moreover, in the absolute majority of complaints (95.7–97.5%) the courts have found for the plaintiff. The situation is the other way around when it comes to suits against unlawful dismissals. In 2007, the courts ruled for plaintiffs in 10,525 of 17,934 lawsuits or 58.7% of all cases. In 2013, plaintiffs won 7,124 of 14,953 lawsuits or 47.6% of all such cases. In the first six months of 2017, the courts ruled in favor of plaintiffs in 1,748 of 4,316 lawsuits or 40.5% of all cases.

The results of the survey reflect the growing apathy of Russians in crisis conditions and fear of losing their jobs, explains Andrei Pokida, director of the Center for Social and Political Monitoring and co-author of the study. Some workers fear a negative reaction if they hang dirty laundry out to dry. If they do complain, they complain only to management. Other workers fear a complaint filed with state agencies could lead to an inspection, resulting in the closure of the company for violations. The reluctance to defend their rights is also caused by a lack of legal literacy among many workers and low incomes. Not all of them are capable of putting together the paperwork for a lawsuit, the services of lawyers are expensive, and many workers simply believe violations are the norm, explains Pyotr Bizyukov from the Center for Social and Labor Rights.

Translated by the Russian Reader. The emphasis in the first article is mine.

Keep It Like a Secret

Delovoi Peterburg, a business daily, has just published its ranking of Petersburg’s alleged ruble billionaires.

It is no surprise that Putin’s cronies Gennady Timchenko (I thought he was a Finnish national?) and Arkady Rotenberg topped the list of 304 capitalists, with alleged net worths of 801.5 billion rubles and 294 billion rubles, respectively. (That is approximately 11.8 billion euros and 4.3 billion euros, respectively.)

Screenshot, from Delovoi Peterburg, showing Putin cronies Gennady Timchenko and Arkady Rotenberg in the number one and two slots of the business daily’s 2017 ranking of Petersburg’s ruble billionaires

There are lots of other pals of Putin and Medvedev in the top fifty, but I was disappointed to see the personal fortunes of my own favorite Russian super villain, former head of Russian Railways Vladimir Yakunin, had faded a bit in the past year. He has dropped to the number twenty-six spot in the ranking, claiming a net worth of a mere 37.07 billion rubles, which means that in Old Europe, where Yakunin is now dispensing Russian softpowerish wisdom to decision-makers and academics via his newly opened Dialogue of Civilizations Research Institute, in Berlin, he would be a regular old euro millionaire, with a measly net worth of 548 million euros.

But we should recall the exposés of Yakunin, his family, and their weath, carried out by the only person in Russian unfit to run for president, Alexei Navalny, and his Anti-Corruption Foundation. In short, Herr Doktor Yakunin, who once had himself declared among the twenty-two “foremost thinkers in the world,” is very nimble when it comes to parceling out his assets to family members for safekeeping, so to speak, and then hiring “cleaners” to make his deservedly bad reputation go away. So who knows how much he is really worth.

Screenshot, from Delovoi Peterburg’s website, showing Yakunin’s number 26 spot in its list of Petersburg’s ruble billionaires.

Another thing that struck me when I surveyed the list was the signal lack of women among the city’s ruble billionaires. Women appear on the list only towards the very bottom, which means they are not really billionaires, but dollar or euro millionaires, at most, and maybe not even that. And there are no more than ten such women in a list of 304 names.

So, the Delovoi Peterburg ranking is not only more evidence of Russia’s extreme wealth inequality—which is a matter of elite practice, if not of explicit government policy—but of the fact that this extreme wealth inequality has an even more extreme gender bias.

Even if Putin crony and Russian oligarch Vladimir Yakunin had named his newish Berlin think tank the “Vladimir Putin Institute for Peace and Freedom,” this would have had no effect, I am afraid, on all the decision-makers and academics who are prepared to rush into Yakunin’s embrace at the drop of a hat, forgiven, as it were, by the squirrelier name he has has chosen, Dialogue of Civilizations.

Yesterday and today, DOC Berlin has been holding a bang-up conference, dealing, like all conferences these days, with the centenary of the October Revolution.

The conference is entitled “Inequalities, economic models and Russia’s October 1917 revolution in historical perspective” and features some speakers whose names you might recognize, people you would never have suspected of wanting to shill for the Putinist soft power machine.

Speakers:

Georgy [sic] Derluguian, Professor of Social Research and Public Policy, New York University Abu Dhabi

Michael Ellman, Professor Emeritus, Amsterdam University

Domenico Nuti, Professor of Comparative Economic Systems, University of Rome “La Sapienza”

Vladimir Popov, Professor, DOC RI Research Director and a Principal Researcher in Central Economics and Mathematics Institute of the Russian Academy of Sciences

Beverly J. Silver, Professor and Chair, Department of Sociology, Director of the Arrighi Center for Global Studies, The Johns Hopkins University, Baltimore, USA

Andres Solimano, International Center for Globalization and Development

Vladislav Zubok, ProfessorDepartment of International History, London School of Economics, UK

Kevan Harris, Assistant Professor,  Department of Sociology, University of California-Los Angeles, USA

But they are there, holding forth on “revolution” on the Putinist dime, while Yakunin, who clearly loves these powwows (there are tons of videos from past DOC gatherings on YouTube and elsewhere in which this is appearent), and is eager to show he is running the show, laughs his silent “former KGB officer” laugh.

While you are at it, check out this rogues’ gallery of useful idiots. Even if you have only a few toes in the world of academia, as I do, you will immediately recognize several of the people serving Yakunin on his think thank’s “supervisory board” and “programme council.”

Screenshot from the Dialogue of Civilizations Research Institute website
Screenshot from the Dialogue of Civilizations Research Institute website

But what about the quality of the research supposedly underway at this so-called research institute? Here is a little sample, the abstract of a paper, downloadable for free, entitled “Church and politics: Russian prospects,” written by someone named Boris Filippov.

The paper is an attempt to make a brief overview of the Russian Orthodox Church’s state in the Post-Soviet Russia. Author notes, that the Church’s role in building civil society in Russia is potentially very considerable, since the Orthodox community’s ability to self-organize is rare for the post-Soviet Russia. He provides abundant empiric material illustrating Christian Orthodox community’s high capacities to contribute to building a prosperous society, for, as he shows, believers have gone much further on the way of consolidation than Russian society as a whole.

Is everyone who is speaking at today’s conference in Berlin and everyone who serves on Yakunin’s supervisory board and programme council kosher with obscurantist Russian Orthodox nationalism masquerading as scholarship? Do all of them know that “Russian Orthodoxy” (as interpreted by Patriarch Kirill and his intemperate followers) is now being used in Russia as an ideological battering ram to quash dissent and difference and reinforce Putin’s seemingly endless administration, as “Marxism-Leninism” was similarly used in the Soviet Union?

Do they know that their generous benefactor Vladimir Yakunin, in one of his other guises, wholeheartedly supports just this variety of aggressive Russian Orthodox nationalism?

The merging of political, diplomatic and religious interests has been on vivid display in Nice, where the Orthodox cathedral, St. Nicholas, came under the control of the Moscow Partriarchate in 2013.

To mark the completion of Moscow-funded renovation work in January, Russia’s ambassador in Paris, Aleksandr Orlov, joined the mayor of Nice, Christian Estrosi, for a ceremony at the cathedral and hailed the refurbishment as “a message for the whole world: Russia is sacred and eternal!”

Then, in a festival of French-Russian amity at odds with France’s official policy since the 2014 annexation of Crimea, the ambassador, Orthodox priests, officials from Moscow and French dignitaries gathered in June for a gala dinner in a luxury Nice hotel to celebrate the cathedral’s return to the fold of the Moscow Patriarchate.

Speaking at the dinner, Vladimir Yakunin, a longtime ally of Mr. Putin who is subject to United States, but not European, sanctions imposed after Russia seized Crimea, declared the cathedral a “corner of the Russian world,” a concept that Moscow used to justify its military intervention on behalf of Russian-speaking rebels in eastern Ukraine. Church property from the czarist era, Mr. Yakunin added, belongs to Russia “simply because this is our history.”

—Andrew Higgins, “In Expanding Influence, Faith Combines with Firepower,” New York Times, September 13, 2016

This entry has the title it does, not because I wanted an excuse to insert a recording by a beloved band of my salad days, which I did anway, but because when I draft editorials like this on Facebook, as I often do, I usually endure stony silence from my so-called friends and readers after I post them. It is not that they are usually so garrulous anyway, but I do know they read what I write, because they are capable of responding enthusiastically to other subjects.

Writ large, this stony silence is what has helped Vladimir Yakunin operate his Dialogue of Civilizations hootenanies (usually held annually in Rhodes until the recent upgrade and move to Berlin) under the radar for nearly fifteen years with almost no scrutiny from the western and Russian press and, apparently, no due diligence on the part of the hundreds and maybe thousands of non-Russian academics, politicians, experts, and other A-league movers and shakers who have attended and spoken at these events.

So can we assume, for example, that Georgi Derluguian, Anatol Lieven, Walter Mignolo, and Richard Sakwa (I am only picking out the names of scholars with whose work I am familiar) condone the Kremlin’s occupation of Crimea, the Kremlin’s invasion of Eastern Ukraine, the Kremlin’s downing of Flight MH17, the Kremlin’s repeat invasion and wholesale destruction of Chechnya, during the early day of Putin’s reign, and the Kremlin’s extreme crackdown on Russian dissenters of all shapes and sizes, from ordinary people who reposted the “wrong” things on social networks to well-known opposition politicians, journalists, and activsts shot down in cold blood for their vocal dissent, including Anna Politkovskaya, Boris Nemtsov, and Stanislav Markelov, a crackdown that has been intensifying with every passing year Putin has remained in power?

A resounding “yes!” would be refreshing to hear, but we will never get any response from the members of Vladimir Yakunin’s semi-clandestine fan club. It is their dirty little open secret, and only someone who is uncouth, someone unfamiliar with the ways of the world’s power brokers and their handmaidens and spear carriers, would even think about asking them to reveal it. TRR

 

How a Petersburger Trucker Has Decided to Sue Plato

How a Petersburger Trucker Has Decided to Sue Plato
Venera Galeyeva
Fontanka.ru
October 16, 2017

After getting his first fine for non-payment of fees under the Plato road tolls system, a Petersburg trucker has challenged it in court. The case could become an important precedent. 

Как петербургский дальнобойщик решил «Платон» засудить
Truckers waiting outside a Plato office. Photo courtesy of Svetlana Kholyavchuk/Interpress

Individual entrepreneur Yuri Bubnov has two freight trucks, one of which is on the road, a MAN-produced box truck he uses to deliver consumer goods to Moscow and Vladimir. As a matter of principle, he has not registered the truck with the Plato road tolls system, has not put a transponder on the truck, and does not pay the new Plato fees. In 2015, he was one of the few people who took part in a road rally of truckers from Petersburg to Moscow. His runs take him past Plato sensors outside Tosno and in Tver, Klin, and Novgorod Region.

A sensor mounted on the Pokrov–Elektrogorsk segment of the M7 Federal Highway finally reacted to Bubnov’s truck on September 28. On October 6, the traffic police issued Bubnov a fine of 5,000 rubles for failure to pay his Plato road toll fees. Ironically, the very same day, the Russian government approved a fourfold increase in fines for non-payers. On October 14, Bubnov sent a letter to the Odintsovo City Court in Moscow Region challenging the decision to issue the fine and petitioning the court to move the venue for hearing the case to the Kalinin District Court in Petersburg, the plaintiff’s place of residence. The truck is registered in Bubnov’s wife’s name, so she will be acting as a defender in the case: “I consider the ruling in the administrative case unfounded and illegal, which I shall prove during the trial.” Yet Bubnov could pay a discounted fine of 2,500 rubles by October 26 and live peacefully.

Truckers have tried before to challenge the issuing of fines for failure to pay Plato road tolls, but for formal reason,s e.g., the paperworks was not drawn up properly, the truck’s owner was not behind the wheel during the alleged violation, and so on. Bubnov’s case if fundamentally different. He wants to challenge the law itself and is willing to give up at least a year of his life to do it.

Bubnov expounds his position.

“According to the Russian Federal Civil Code, damage must be paid be jointly by everyone everyone involved in causing damage. However much damage you caused that is how you pay,” he says.

[Bubnov has in mind the government’s original stated rationale for introducing the Plato road tolls system. Since cargo trucks, allegedly, cause more wear and tear on federal highways than other vehicles, the argument went, they should pay additional fees, based on the number of kilometers traveled, to compensate for this damage and thus provide more money for repairing major roads.—TRR]

“In addition, the damage I caused has to be proven. And, according to the Russian Federal Tax Code, payments cannot be arbitrary and should reflect the economic essence of the matter. Empty, my vehicle weighs 7,800 kilograms. The maximum weight of a loaded eighteen-wheeler is 44 tons. Obviously, we cause different amounts of wear and tear on the road. Why, then, should I pay the same amount as the driver of a loaded eighteen-wheeler?”

In May 2016, the Russian Federal Consitutional Court ruled the Plato road tolls system legal. Later, however, Constitutional Court Judge Gadis Gadzhiyev issued a dissenting opinion in which, among other things, he suggested clarifying the purpose of the fee, because, economically speaking, Plato is not compensation for damage, but a payment imposed on owners of heavy trucks for using the roads.

“As currently formulated, the Plato system is at odds with Russian federal laws,” says Bubnov. “By itself, travel on public roads is not an offense. There is a Russian federal government decree in which the maximum loads for different types of vehicle are set. The weight of my vehicle is legal.”

Bubnov also invokes an argument that truckers protesting Plato have made since 2015. If a toll is introduced for driving on a certain section of road, drivers should be provided with an alternative free detour. Otherwise, all federal highways would become toll roads for truckers.

Bubnov already has several legal victories under his belt. He has always served as his own defense counsel, and recently he has voluntarily defended his colleagues from different regions in court. On September 20, 2017, he won the so-called tachograph case, in which a trucker had been accused of violating work safety laws. A similar case is now being tried in Altai Territory.

If Bubnov’s appeal, as appended to his complaint against the Plato road tolls system fine, is rejected, first he will have to go to Odintsovo City Court, then to the Moscow Regional Court to appeal the ruling, and then to the Presidium of the Moscow Regional Court and, finally, to the Russian Federal Supreme Court and the Presidium of the Supreme Court. Bubnov plans to go to the bitter end with the final decision. According to his calculations, the whole process may take at least a year. If his petition is granted, the first three sets of hearings will be held in Petersburg. Bubnov plans on going the entire distance himself, without a lawyer.

“Essentially, Yuri Bubnov’s claims are correct,” says Irina Metel, executive director of the Northwest Carriers and Forwarders Union. “In practice, however, any case requires the assistance of a very competent laywer.”

“We are ready to support Yuri Bubnov in court,” says Maria Pazukhina, head of the OPR (Association of Russian Carriers) regional branch in Murmansk. “We have challenged fines before, but only on formal grounds, for example, due to incomplete lists of evidence or instances where agencies not empowered to do so tried to punish carriers. Yuri’s case is fundamentally different. In my view, the current authorities are unlikely to rule that Plato should be abolished. The OPR has been trying to detect the system’s faults in order to reveal its corruption and inefficiency. But so far we have not launched legal proceedings like this.”

“I’d been waiting for this fine for a year and a half, and I finally got it,” Bubnov told Fontanka.ru. “It’s good it came now, while the sensors have not been turned on everywhere. If the system were up and running normally, it would be harder to challenge the fine. The chances of a ruling in my favor are few, but what if suddenly the case is assigned to a judge who is about to retire and has nothing to lose, and he makes a ruling in accordance with the laws?”

FYI
According to Dmitry Pronchatov, assistant director of the Federal Road Agency, since the Plato road tolls system was launched, carriers have paid over 33.3 billion rubles [approx. 494 million rubles] into the road maintenance and construction fund. Over 900,000 vehicles have been registered in the system. The monies have been used to finance the construction of seven bridges and repairs on twenty-four emergency pipelines, as well as over a thousand kilometers of roads in forty cities and regions. Owners of twelve-ton trucks must pay 1.9 rubles for each kilometer of travel on federal highways.

Translated by the Russian Reader. Thanks to Comrade Koganzon for the heads-up