The Wires

DSCN1673This is what you will typically see when you look up at the sky in central Petersburg. Photo by the Russian Reader

One thing I find especially charming about certain Russians, often academics, who have lived for decades in “straunge strondes” (чужбина), is their conviction, now that the current “vegan” times have permitted them to make occasional and even annual junkets back to the Motherland, that life here is now nearly the same in every respect as back in the straunge strondes.

I’ll leave to one side the political aspects of this queer conviction, focusing instead on a single aspect of everyday life. I’ve heard it said a million times by many a Russian not resident in God’s Heavenly Kingdom on Earth full time or even part time (really) that wi-fi and internet connections here are the top of the pops, so much better than wherever they live, surrounded by black people and Mexicans and uncultured rednecks.

I have to admit that, outside of Russia, my only experience of wi-fi and internet connections over the last ten years or so has been places in the States and elswhere where I’ve stayed for short stretches, including my parents’ farm, my sister’s house in a big city in the Midwest, and the apartments of friends in other cities and countries, as well as my own secret hideout in Free Finland.

In all these places, I enjoyed shockingly fast, nearly outage-free internet and wi-fi connections. I can count on the fingers of one hand the number of times there were full-fledged outages in Free Finland, and all of them were sorted out in a matter of an hour or two, if not in a few minutes, with the sincerest of apologies by my Finnish providers.

As for the Cradle of Three Revolutions, everything was cool and seemingly getting cooler until sometime in the past year when, I suspect, the FSB placed so many demands, both physical and financial, on internet providers, that they are now no longer capable of doing routine maintenance on their networks and upgrading their hardware and software, despite the growing demand for their services on the part of the taxpaying and fee-paying populace.

But the ISPs serve a higher power—the siloviki—who are so out of their minds right now as to imagine you can organize a revolution on VK by reposting pictures of Nazis and Navalny or something of the sort. They thus have to have ever-increasing capacities for surveilling the peons they rule over like medieval liege lords (or so they imagine), and they have tasked the country’s internet providers with giving them lots of electronic windows into the souls of these traitorious worms.

At least, I hope this is the case, because otherwise the sheer misery and torment visited on us since approximately last spring by our once faithful internet provider, long ago swallowed up by another company from Moscow and bereft of all the charms and virtues it had back in the days when I was one of its first customers, are inexplicable.

Suffice it to say that one look at the junction box in our attic will tell you tell that, in fact, is where the problem lies, and yet every time our internet goes under, which can be several times a day, the mumblers who man the phones at our provider’s tech support service run us through the same routines, all meant to persuade us morons that the problem is with our computers or even with our ignorant selves, not with the woeful state of the junction box in the attic or farther down the line.

Things turn from irritating to tragicomic when our provider sends an actual person to fix the mess. Nearly all of them (at this point, a dozen or so have darkened our door since spring) start out by ringing the changes on our wi-fi router, which supposedly has to be replaced, or the plastic snap connector on the end of the broadband cable or the cable itself.

If we can induce them to go up into the attic and open the junction box or just look at the junction box, which has wires poking out from in in all directions, like a Dalek gone south, they break down and admit the problem is on their end. If they’re kind and competent, they might apply a temporary fix by switching out a couple of cables in the box.

Then we have the joy of living humanity’s shared electronic life for an hour or two, or day or three, or, god forbid, a whole week. Sooner or later, though, the plug will be pulled on our meager joy, and our provider, unable or unwilling to give us the real explanation for the problem (our junction box? their servers back at the head office? SORM?), will plunge us back into their rehearsed routine of selling snake oil to their loyal customers, their nerves shattered, their hearts broken, their ability to do their own work suspended indefinitely.

I think all of us who actually live in the real Russia full time could make a long list of the country’s practical shortcomings, without once touching on politics per se, and the list would be long and sobering and, occasionally, incredibly frightening.

But the crypto-Putinists who teach at places like Berkeley and don’t really live here never or hardly ever deal with this failed state, nor do they want to have the really hard talk about how nearly all of these eminently practical failures are caused, ultimately, by wildly bad governance.

And what is the point of having that talk with them? They’ll only get testy and resort to whataboutism, the last refuge of scoundrels. {TRR}

Alexei Tsvetcoff: A Supremely Intelligible Speech

 

Vladimir Putin, “Address to Russians on the 2018 Pension Reform,” 29 August 2018

Alexei Tsvetcoff
Facebook
August 29, 2018

Putin’s speech was supremely intelligible. It boiled down to this. We could just as well not change the retirement age over the next ten years, but we are going to do it anyway merely because we want to do it. We are going to fuck each of you over to the tune of one million rubles at least, because we like lining our pockets with the money, and no opposition can do anything to stop it.

We are not going to raise the taxes of the oil and gas bourgeoisie, because we are the oil and gas bourgeoisie. The Pension Fund’s palaces and the palaces per se of the ruling class are beautiful, but there is no need to touch them. Let them be. Anyway, things could be a lot worse, believe you me.

The speech was an open declaration of class warfare on the majority on behalf of the ruling minority. It was a rude statement by the modern-day equivalent of Yuri Olesha’s Three Fat Men, a group of people rendered insolent by their impunity.

The tsar in his mercy granted indulgences. He took three years off the proposed new retirement age for women, and six months off the retirement age for the first cohort whom the reform will roll over, as well as promising guaranteed employment and property tax benefits for pre-pensioners, and so on.

This summer’s political upsurge has borne preliminary fruits, but they are decorative. The wave of opposition to the proposed reforms must rise higher and higher, and popular hatred must adopt really effective guises, meaning guises that frighten the regime.

A genuine mobilization of society would smash this reform, conceived by thieves, to smithereens, and maybe some other things as well—if such a mobilization occurred, of course.

If the entire country takes to the streets in September, we shall soon see a new speech by Putin, in which he says he has changed his mind. Now the authorities will be gagging, demonizing, isolating, and banning vigorous opponents of their mean-spirited reform on a daily basis. All of us, therefore, must become vigorous opponents of the reform.

Alexei Tsvetcoff is a well-known Marxist writer and manager of the Tsiolkovsky Bookstore in Moscow. Thanks to Valentin Urusov for the heads-up. Translated by the Russian Reader

The Happy Chooks of Ryazan

You never know what scam will be visited on your weary head when you buy a cartoon of eggs from the Dixie supermarket. When the country’s reigning tyrant instituted reverse sanctions against the infidels of the west in 2015, all imported dairy products, eggs, and lots of other produce disappeared from the shelves, prompting a shameless wave of newly hatched brands made to look as if they had been produced in Finland and other straunge strondes.

Now that the triumph of the will known as import substitution has filled some of the yawning gaps on the shelves, the new three-card monte in the Russian food industry involves imitating “corporate responsibility” and “best practices.”

I happened upon a sterling specimen the other day, again after buying eggs at the Dixie in our neighbourhood. I opened the carton to find this message from the producers.

okskoye-1“Oksky Eggs: Delicious and Fresh. Dear Friends! I offer you a product that my children, acqaintances, friends and, of course, I myself enjoy eating. I guarantee that we monitor the entire production process at Oksky Eggs. I promise I will always be in touch. I will be attentive and responsive to all your messages. Whatever the issue, write to me at my personal email address: 0076@okskoe.com. Ivan Grishkov, Commercial Director, Oksky Poultry Farm JSC.”

Sounds nifty, eh? It gets better when turn the little slip of paper over.

okskoye-2
“PRODUCER’S GUARANTEE. Each egg is stamped with the production date, the number of the henhouse, and the poultry farm’s trademark seal. [Producer] [Category of egg] [Production date (date and month)] [Henhouse number]. || Oksky Eggs: Delicious and Fresh. Oksky Poultry Farm JSC, 390540, Russia, [Ryazan Region], Ryazan District, Village of Oksky. Tel.: (4912) 51-22-62. Email: sbit@okskoe.com. Website: www.okskaya-ptf.ru.”

A farmboy myself, I have no wish to malign my brother and sister Russian farmers. So, I should point out that the three Oksky Eggs left in our fridge are indeed stamped as advertised.

DSCN0022.jpg

The rubber hits the road, however, when you take a gander at the poultry farm’s slick website, where you are treated to this tear-jerking video about the happy lives led by the chooks at Oksky Poultry Farm.

It’s a veritable vision of the good life, isn’t it?

oksky-the good life

oksky-anoshina

At the end of this accidental disco anthem to cruel and unusual hen exploitation, a woman identified as “Yelena Anoshina, poultry barns supervisor,” reading from cue cards, says, “A modern electronic system generates the most comfortable conditions for the birds. It makes sure they are fed and watered. And I am personally responsible for this.”

I can only imagine the dialogue that would ensue if an enlightened consumer or, god forbid, a animal rights advocate tried to call Mr. Grishkov and Ms. Anoshina on their imitation of “corporate responsibility” and “modern poultry farming.”

The kicker, however, is that you will find these half-hearted attempts at instituting customer friendliness and gesturing in the direction of best (western) practices all over corporate Russia these days. Of course, you are more likely to find real friendliness and good quality in a mom-and-pop Uzbek dive or even a hipster coffeehouse, but oddly enough the impulse to do things better and shed the shabbiness and sheer meanness of the “Soviet consumerist hell” (Joseph Brodsky’s phrase) actually shapes the behavior of the mostly younger and early middle-aged people working in places like banks and certain government offices as well.

The only problem is the Russian ruling elite still wants to keep kicking rank-and-file Russians in the teeth on a daily basis, so the rules, regulations, red tape, and imperatives of the resurgent post-Soviet surveillance state and the kleptocratic oligarchy running the country mostly reduce the natural kindness and gentleness of these pleasant, soft-spoken cogs in the machine to naught. {TRR}

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Diskoteka Avariya (Accident Discotheque), “Disco Superstar” (2001)

 

Life on the Installment Plan, Part Three

DSCN9641The “handy lawyer” at a place calling itself the Civil Legal Defense Center promises to relieve people “of their debts 100% quickly and legally.” Photo taken in central Petersburg on 22 July 2018 by the Russian Reader

Russians’ Bank Debts Grow Twice as Fast as Their Wages
Central Bank and Economic Development Ministry Plan to Reduce Banks’ Interest in Loaning to General Public
Tatyana Lomskaya and Emma Terchenko
Vedomosti
August 1, 2018

The Economic Development Ministry has reported individual consumer loans have been growing faster than wages and savings. In June, they grew by 15.9% in annual terms after a 15.1% uptick in May. If the season were not taken into account, this would amount to an increase of over 20%. However, real wage growth during the same period slowed to 7.2%, while the growth rate of savings deposits fell 7.1%. (The figures for May were 7.6% and 7.7%, respectively.)

The entire portfolio of loans to the general public increased by ₽1.1 trillion to ₽13.3 trillion [approx. €181 billion] during the first six months of 2018, according to figures from the Central Bank. Sberbank alone lent a record-breaking ₽714 million [approx. €9.7 million] in consumer loans during this period, which was 74% more than a year ago, while VTB Bank supplied the general public with ₽400 million in loans or 32% more than over the same period in 2017.

The public’s demand for consumer loans has grown. Inflation is relatively low in the wake of 2014, the Central Bank’s key rate has stabilized at a low level, and wage growth has picked up, explains Sergei Shirokov, managing director of Sberbank’s Borrow and Save Division.  Since the start of the year, VTB has twice improved the terms of its loan programs and increased the issuance of loans by 17%, notes Dmitry Polyakov, a vice-president at the bank.

Companies, on the contrary, have increasingly gone on a savings binge, writes the Economic Development Ministry. In June, they increased their bank deposits by 8.3% in annual terms. (The increase in May was 6.5%.) Their outstanding loans have also grown, but only by 2.8%, compared to the same period in 2017, or by 3.3% when corporate bonds are taken into account. (In May, the same figures grew by 2.6% and 3.1%, respectively.)

Banks have focused on lending to the public. Under current regulations, they find this more profitable than lending to businesses, complained Economic Development Minister Maxim Oreshkin. This circumstance worried his ministry, he said. He suggested the Central Bank should make it more profitable for banks to loan to companies as opposed to making consumer loans. The ministry did not respond when we asked whether Minister Oreshkin, as a member of Sberbank’s advisory board, had voiced his concern about the high rate of consumer loans issued by Sberbank.

Retail lending has actually been recovering faster than corporate lending, partly because the public vigorously decreased their debts to banks in 2015–2016, whereas now, as wages have increased and rates have hit bottom, they have again accumulated debts, says Natalya Orlova, chief economist at Alfa Bank. Banks are also more interested in lending to individual due to western sanctions against Russian companies, she continues. If a company is at risk of western sanctions, it might also have trouble paying back its loans. Unlike mortgages, however, the growth of consumer loans has almost been exhausted. Outstanding loans have nearly reached 10% of GDP, the maximum for Eastern Europe, warns Orlova.

Consumer lending started to recover last year amid falling personal incomes. People were able to increase consumption only by taking out retail loans, analysts at RANEPA noted. In early 2018, on the eve of the presidential election, the salaries of state-sector employees increased dramatically. The government had to make good on President Putin’s May 2012 decrees and bring the salaries of teachers, doctors, and researchers to 100–200% of average regional wages. On the heels of the wage increases, personal incomes rose by 4,2–5,6% in annual terms from February to April. In May and June, however, real personal incomes of Russians returned to a near-zero growth rate. This sparked an increase—from 12% in May to 22% in June—in the percentage of Russians who anticipated that their family’s financial circumstances would worsen over the next year. The percentage of people who excepted their fortunes to change for the better shrunk from 24% to 19%, according to a poll conducted by inFOM.

The Central Bank has already been reducing the profitability of consumer loans for banks. The risk ratio for unsecured consumer loans was increased on May 1, and the regulator plans to raise it again on September 1 for loans whose total cost exceeds 10% per annum. The Central Bank has been also been reviewing other proposals for stabilizing the growth of consumer loans, said Vasily Pozdyshev, the Central Bank’s deputy chair, as quoted by RIA Novosti. For example, increased oversight requirements could be applied to banks whose consumer loan portfolios increased much more quickly than the market average, or the growth of such loans could be restricted, said Pozdyshev. According to him, the banks had made an interesting propose to introduce differentiated risk ratios for consumer loans depending on their amount: large loans in amounts greater than ₽300,000 [approx. €4,000] would bear the greatest risk ratio. In addition, as of 2019, banks should start regularly calculating the PTI (payment to income) ratio as a means of determining a customer’s credit worthiness, although the Central Bank would not use it as a regulatory instrument befored 2020, added Pozdyshev.

High-risk borrowers are more likely to seek loans from microfinance institutions (MFIs). According to the National Credit History Bureau, MFIs issued ₽26.3 billion [approx. €358 million] in so-called payday loans from April to June, which was 23.8% more than last year. Vulnerable segments of the populace are already seriously indebted, says Georgy Okromchedlishvili, principal analyst at ITS Wealth Management, and significant growth in these loans is not anticipated in the future, but nor is a noticeable decline expected. Stable economic growth has to be in place for that to happen, he argues.

Translated by the Russian Reader

It’s All Free for the ROC

Dmitry_Medvedev_and_metropolitan_Varsonofius.jpegDmitry Medvedev, then President of Russia, and Varsonofius, then Metropolitan of Saransk, during National Unity Day in 2011. Photo courtesy of Wikimedia Commons

Free for the ROC: Petersburg City Hall Allocates Two Land Plots for Church Construction
Alexei Kumachev
Delovoi Peterburg
July 31,2018

Petersburg city hall [aka the Smolny] has allocated two land plots for church construction in the Primorsky and Petrograd distrists. According to documents published on the Smolny’s website, the land will be provided free of charge. It was reported previously that the Russian Orthodox Church (ROC) had announced plans to build a Sunday school on Heroes Avenue and a church on Konstantinovsky Avenue.

The St. Petersburg Diocese of the Moscow Patriarchate will receive a land plot on Krestovsky Island. The total area is 2,000 square meters. A ten-year lease will be signed within a month.

Earlier, it was reported the ROC’s plans for the lot on Konstantinovsky Avenue involved construction of 254 square meter church, a 400 square meter school building, a 32 square meter belfy area, and a 28 square meter baptistery.

The proposal to transfer the land to the ROC was made by Petersburg Deputy Governor Igor Albin at a meeting of the city government.

The estimated cadastral value of the land is ₽15 million. According to Anna Sigalova, deputy director for investments at Colliers International in Petersburg, the plot could be sold for around ₽300 million [approx. €4 million]. The analyst added the price could change if the plot were rezoned for residentialhousing construction.

In addition, the ROC will receive a land plot in the Krasnoye Selo District for free. This is the previously mentioned plot on Heroes Avenue. The total area of the site is 2,200 square meters.

The ROC plans to build a two-storey Orthodox school with its own church on the site. The work will be done by the congregation of the All Saints Church in southwest Petersburg. The term of the free lease is ten years. Petersburg Governor Georgy Poltavchenko signed the documents ceding the land to the ROC.

On July 18, we reported the Petersburg and Leningrad Region Arbitrage Court had agreed to hear a lawsuit filed by the city’s Property Relations Committee (KIO) against the congregration of the Intercession of the Blessed Virgin Church (St. Petersburg Diocese, ROC) concerning the ownership rights to the church, which was built on the former grounds of South Primorsky Park, opposite the house at 24 Valor Street.

16 сентябрь 2015 (12)Intercession of the Blessed Virgin Church while still under construction in September 2015. Photo courtesy of the church’s website

The 16,600 square meter plot had earlier been rezoned for construction of religious buildings and handed over to the ROC. The church building itself, however, was constructed. without the necessary permits. The first hearing of the lawsuit, which claims the city’s right of ownership to the church in the park, has been scheduled for September.

In July 2017, the Smolny transfered a nearly 5,000 square meter plot of land in the elite [sic] village of Komarovo to the ROC. The media wrote at the time the summer cottage of Varsonofius, Metropolitan of St. Petersburg and Ladoga, could be built on the site. At the same time, Petersburg Legislative Assembly member Boris Vishnevsky drew attention to the fact that a nearly half-hectare land plot was transferred to the Petersburg Diocese only due to the house on it.

In 2013, the ROC leased the land until 2062. The plot’s value was estimated at ₽30 million. Later, officials explained why they had decided to transfer it to the ROC.

“The plot contains a piece of real estate, a house whose cadastral number is 78:38:0022359:29, and whose rightful owner is a religious organization [i.e., the ROC],” said Petersburg Deputy Governor Mikhail Mokretsov.

According to Mokretsov, an inspection established the plot was used for religious purposes. The Smolny leased the plot to the St. Petersburg Diocese on July 25, 2017.

Translated by the Russian Reader

Our Own Private Romania

ilieni-dinu-lazar

Wages in Russia Catch Up to Wages in Romania
Anastasia Manuylova
Kommersant
July 23, 2018

Wages in Russia are higher than those in the other CIS (Commonwealth of Independent States) countries and comparable with those in Central and Eastern European countries. Those are the findings of the experts at the Higher School of Economics (HSE) who have issued the report “Wage Comparisons among Countries in 2011–2017.” They used purchasing power parity (PPP) indicators to do their calculations.

As 2017 came to a close, Russia was the leader in terms of wages among the CIS countries. Taking PPP into account, the average monthly wage in Russia last year amounted to $671. Kazakhstan lagged behind this benchmark less than the other CIS countries. Its average monthly wage in 2016–2017 was $459 and thus lower than the average wage in Russia by 30–40%. Tajikistan was the farthest behind, with an average monthly wage of $147. The study’s authors note the wage gap between Russia and the other CIS countries has continued to widen since 2011. In particular, this has been due to a deterioration of economic conditions in Azerbaijan, Belarus, and Kazakhstan in  2015–2017.

However, Russia’s position looks less attractive when compared with other groups of countries. Thus, among the countries of Central Europe, the level of wages in Russia is comparable only with Romania ($678 a month) and Bulgaria ($602 a month). The average monthly wages in Czech Republic and Croatia, for example, are considerably higher than the average monthly wage in Russia (by 80–90%), despite a downward trend in wages that has been observed since 2011. There is also a considerable gap between wages in Russia and wages in Poland and Hungary. In 2017, they outpaced Russia by 60–70%.

Among the BRICS countries, Russia exceeds the same indicator for Brazil by 5%. This gap has been narrowing in recent years, however. Wages in China outpaced wages in Russia as early as 2014, and the gap between the two countries is now almost 30%. In the long term, as the HSE’s Svetlana Biryukova, the report’s co-author, explains, if the current wage trends in all the countries, including Russia, continue, Russia would retain its leadership only among the CIS countries, but would find itself in last place among Central and Eastern European countries.

Translated by the Russian Reader. Photo courtesy of romaniatourism.com

Russia Has Over a Million Slaves

Russia Plans to Fight Slavery: The Country Has More than a Million Slaves
Ivan Ovsyannikov
PROVED.RF
June 26, 2018

The Russian government has tabled a law bill in the State Duma that would ratify the protocol to the convention of the International Labour Organisation (ILO) outlawing forced labor. Russian officials claim ratifying the protocol is a formality, because there is no slavery in Russia. However, the government itself employs forced labor. PROVED has written about how the Russian Federal Penitentiary Service (FSIN) sells the labor of inmates to commercial companies, although it is forbidden by the convention. The Walk Free Foundation (WFF), an international human rights advocacy group, estimates there are over one million slaves in Russia.

The Convention Concerning Forced or Compulsory Labour (No. 29) was adopted by the ILO in Geneva in 1930. The Soviet Union signed it only at the dawn of the Khrushchev Thaw in 1956. In 2014, the convention was supplemented with a protocol introducing  new restrictions on the use of forced labor. In particular, the original convention had stipulated people could be forced to work for public purposes. Such voluntary forced labor was widely practiced in the Soviet Union. Blue- and white-collar workers spent their weekends laboring at so-called subbotniks, while university students were sent to the fields of collective farms to harvest potatoes, carrots, and cabbages. The protocol to ILO Convention No. 29 deems this coerced labor a criminal offense.

Post-Soviet Russia has not ratified either the first or second versions of the convention. The Russian Labor Ministry has decided to correct the omission and tabled a law bill in the State Duma approving the statutes in the protocol to the convention.

The protocol requires signatories to take vigorous measures for eliminating slavery. They must pay compensation to victims of compulsory labor, educate law enforcement officers and employers about prohibited labor practices, and develop strategies for combating the slave trade.

The Labor Ministry’s draft bill says slavery has been banned in Russia as it is, and so it does not suggest any special measures for combating compulsory labor nor does it amend existing laws.

Seventh Place in Terms of Slavery
Experts claim, however, that Russian officials are disingenuous. In fact, in its 2016 survey, the WFF estimated there are least one million people in Russia subjected to some form of slavery, i.e., 0.73% of the country’s total population. Russia was thus ranked seventh in the WFF’s 2016 Global Slavery Index of 167 countries in terms of absolute number of people subjected to modern slavery. According to the index, only India (over 18 million), China (approx. 3.4 million), Pakistan (approx. 2.1 million), Bangladesh (approx. 1.5 million), Uzbekistan (approx. 1.2 million), and North Korea (1.1 million) had more slaves than Russia did.

slavery indexAn excerpt from the 2016 Global Slavery Index

Russian officials have not analyzed slave labor in Russia and do not acknowledge the problem. In their way of thinking, the president has not given them any instructions on the matter and nothing needs to be done, explains Yelena Gerasimova, director of the Center for Social and Labor Rights.

“I cannot say the government is a party to the scheme, but it closes its eyes on it. Russian Criminal Code Articles 127.1 (Human Trafficking) and 127.2 (Use of Slave Labor) are vaguely worded. While the ILO has a clear definition of slavery, the Russian police often do not understand what we are talking about. They ask us, ‘What slaves? Where are the shackles?’ But no one has ever kept slaves in shackles, for they have to work,” adds Oleg Melnikov, head of the grassroots organization Alternative.

The Government Protection Racket
Slavery includes forced marriages in which women are used as domestic servants, prostitutes forced to work in brothels, and migrant workers whose passports are confiscated by employers. As Gerasimova notes, however, Russian police, prosecutors, and labor inspectors refuse to acknowledge the problem and do nothing to identify people subjected to slavery.

She cites the example of the slaves of Golyanovo, twelve men and women freed from the basement of a grocery story on the outskirts of Moscow in 2012.

“The police were running protection for the store, which had kept people in bondage for years. They had their papers confiscated and were not paid for their work. Golyanovo is the tip of the iceberg,” argues Gerasimova.

The Russian government is willing to sell the manpower of inmates to commercial clients. For example, as PROVED discovered, Arkhangelsk Commercial Seaport LLC, a subsidiary of Evraz, purchased “workers from the inmate population” at the local penal colony for 860 rubles a day per person [approx. €12 a day]. The contract was posted on the government procurements website, although Arkhangelsk Regional Governor Igor Orlov hotly denied the deal. Now it is clear why. The ILO convention permits courts to impose work as a punishment, but it forbids leasing inmates to private companies.

Russian convicts usually work within the FSIN’s own system. Thus, the FSIN’s Main Industrial and Construction Department used inmates to build an entire residential complex for penitentiary service employees on the outskirts of Krasnoyarsk. Ironically, the complex is located on Work Safety Street.

However, the temptation to pursue public-private partnerships in the field of hard labor is too great. For example, FISN officials in Krasnodar Territory not only make no bones about their cooperation with business, but even brag about it. Inmates there sew uniforms for regular police and the Russian National Guard, cobble shoes, produce construction material, and are employed in woodworking and animal husbandry. Krasnodar Territory subsidizes businessmen who buy the goods produced by convicts. The entire enterprise is part of the territory’s official industrial development program for 2017–2020.

The Slave International
Forced labor is popular not only in the Russian penitentiary system but also in the outside world.

Melnikov describes a typical path to slavery.

“People from the hinterlands who go to Moscow and other major cities to improve their lot can end up as slaves. Someone approaches them on the streets, offering them a job in another region working on a rotational basis. He offers them a drink. Two days later, they wake up as they are arriving in Dagestan, Kalmykia or Stavropol Territory. Usually, the slaves work in cottage industries. The victims are told they have been bought. When they try and escape, they are captured and given a beating in front of everyone,” he says.

Moscow has recently been deluged with young women from Nigeria. Allegedly, they have come to study, but ultimately they are forced into prostitution. The farther workers are from home, the more vulnerable they are, adds Melnikov.

Fly-by-night firms, registered in Russia, recruit laborers in the rural regions of Uzbekistan and Kyrgyzstan. So-called foremen act as intermediaries between the firms and the local populace.

“They are often ethnic Russians from Central Asia or elders of the local communities, the mahallahs. They bring young men and women from the villages and hand them over to the managers of the companies that operate as agents. From the viewpoint of the UN and international law, this is human trafficking. But the migrant workers themselves do not see it that way. Many of them regard it as the natural order of things, an act of initiation. If you have not worked as a migrant laborer, you’re not a real man,” notes Andrei Yakimov, an expert on migrant workers.

People who are employed in this manner usually sign no work contracts with their employers. They do not know the names of the companies where they work or the names of their supervisors.

“A female cleaner from Uzbekistan knows only that she works for someone named Feruz. Feruz is her foreman or her foreman’s manager. At most, she will have heard that somewhere at the top of the food chain her work is supervised by someone named Andrei Nikolayevich, say. If I am an unskilled worker named Abdullo who has not been paid his wages, I am going to find it hard to figure where my money is. The foreman, the manager, his managers or contractor could be holding on to it. The chain of command can consist of dozens of links, especially in the construction business,” Yakimov explains.

There is no one to whom the migrant work can complain. If the migrant worker’s ID papers have also been confiscated, his or her enslavement is complete.

Slave labor is employed in different sectors of the economy. In Dagestan, slaves are sent to work at brick factories, while in Moscow they are employed as shop clerks, beggars, and prostitutes. In Novy Urengoy, they work in construction, while in Tver Region they are employed in sawmills.

Employment Off the Books
Yakimov argues that slavery in Russia is one of the shapes taken by undocumented employment. Russian nationals are fine with the fact that foreigners from Central Asia do the dirty, poorly paid jobs. These workers never turn to the authorities for help, fearing they will be punished for not having residency papers and work permits.

Russian nationals sometimes also avoid turning to the authorities, since many of them are employed on the black market and have not signed employment contracts, either. State Duma MP Oleg Shein has calculated that 34 million able-bodied Russians are employed in the illegal labor market, earning 10 trillion rubles [approx. €136 billion] annually. They constitute 40% of Russia’s entire workforce, says Shein. Such workers risk ending up as forced laborers, according to the wording of ILO Convention No. 29.

Translated by the Russian Reader

UPDATE (July 24, 2018). The 2018 Global Slavery Index has updated the figures for modern slavery in Russia. It has this to say in particular about slavery in Russia and efforts to combat it. Continue reading “Russia Has Over a Million Slaves”