Suck in Your Gut

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Russian soldiers shopping in a Crimean grocery store. Photo courtesy of Imgur

Rosstat Records Sharp Rise in Price of Minimum Grocery Basket
RBC
June 26, 2017

The price of the minimum monthly grocery basket in Russia has risen from the beginning of 2017 by 9.4% to 4,037 rubles [approx. 61 euros] , according to figures published on Rosstat’s website.

Significant growth was recorded in May. Compared to April, the cost increased by 4.2%, the report says.

The cost of the grocery basket in Moscow grew by 5% in the period from April to May and amounted to 4,946 rubles. Since the beginning of the year, it has increased by 11.1%, according to Rosstat. In St. Petersburg, the minimum produce basket has risen in price since January 2017 by 9.8%.

According to the agency, a significant impact on consumer price growth in May was due to higher prices for vegetables and fruits. The price for white cabbage increased 1.4 times, annd for onions, carrots, beets and potatoes by 1.2–1.3 times. At the same time, the cost of lemons increased by 11.1%, and apples, by 7.5%.

At the same time, as Rosstat noted, the price of cucumbers and tomatoes fell by 26.4% and 11.5%, respectively.

In January, Rosstat reported that, in 2016, the most expensive grocery item was butter. Its priced had increased by more than 20%. At the same time, the price of other dairy products increased by an average of only 9.5%.

In addition, a significant increase in prices was recorded for fish and seafood. They rose in price by an average of 8.6%.

TRANSLATED BY THE RUSSIAN READER

The Russian Economic Miracle of 2017

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“Pilling from 499 rubles. Ultrasound cleaning from 599 rubles.” Photo by TRR

More Than Five Million Russians Have Trouble Paying Back Loans
Takie Dela
May 30, 2017

Around five and half million Russians have trouble servicing their debts. Their debut burden is more than 60% of their income, reports Gazeta.ru, quoting a statement by Vladimir Shikin, deputy marketing director at the National Credit History Bureau.

According to experts, this figure is regarded as a critical indicator. Among the main reasons for arrears are the unreliability of borrowers and the lack of means to finance current debts.

Residents of the Kemerovo, Tyumen, and Novosibirsk Regions are the most indebted. According to the National Credit History Bureau, three million people cannot make payments on loans, which is 8% of all borrowers. Their current debt load exceeds half of their monthly incomes.

According to Shikin, the share of overdue loans remains at 16%, even as the number of new loans grows. The majority of Russian borrowers have several loans, and the average economically active Russian owes creditors 146,000 rubles [approx. 2,300 euros].

Meanwhile, research done by RANEPA shows that the debt burden of Russians is not critical. As Natalya Orlova, chief economist at Alfa Bank, stressed, the debt of Russians is estimated at 12% of GDP.

“In developed countries, debt is 60% to 80% of GDP, so the market has potential for growth,” emphasized Orlova. However, she argues that Russia issues a relatively small percentage of mortgages, whereas in developed countries, mortgages account for nearly 90% of all loans.

Experts hope that the debt burden of Russians will not rise greatly. After the 2014–2015 crisis, banks were more way about issuing loans, so the debut burden of Russians will fall. In the near future, banks will be even more cautious. In particular, the Central Bank has planned to consolidate the data of major of credit history bureaus in a single data base to combat indebtedness.

Earlier, the United Credit reported that half of Russian borrowers had been applying for new loans to pay off old loans. According to its figures, 45 million Russians with old loans had taken new loans in banks. Over half of them had done this to pay off old loans.

The analysis shows that 53% of borrowers had taken new loans in cash to partially or fully pay off already existing loans. 27% of the borrowers had spent more than half of the new loans on paying debts.

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Almost 60% of Russians Admit They Have No Savings
Takie Dela
May 29, 2017

Around 59% of Russian families have no savings, reports Rambler News Service, citing a report from the polling and market research firm inFOM.

According to a survey commissioned by the Central Bank, the figure has remained stable [sic] the last three months. In December 2016, 64% of those surveyed had no savings.

Yet a quarter of Russians believe that now is a good time to save money, while 44% hold the opposite opinion. According to experts, the tendency to save has grown noticeably since the beginning of the year. In February, fewer than 17% of respondents answered the question positively.

The majority of respondents replied that spare cash should be saved or put away for a rainy day, while a third of Russians would spend the money on expensive, major purchases.

The poll showed that 40% of respondents prefer to keep their savings in a bank account, 26%, in case, and 20%, partly in a bank, and partly in cash.

Two thousand respondents, aged eighteen and older, from fifty-five regions of Russia were involved in the survey.

According to research by RANEPA, the share of Russians who save money dropped by a third in 2016, from 55% to 40%. Moreover, in March, 40% of Russians claimed they had only enough money for food.

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VTsIOM: 67% of Russians Skimped on Groceries during the Past Year 
Takie Dela
May 30, 2017

During the past year, 67% of Russian skimped on groceries in one way or another; 27% of them in a substantial way. Pensioners and residents of big cities had to skimp most of all. These figures were reported by pollsters VTsIOM.

The survey dealt with Russians’ attitudes to government regulation of the food market. 82% of respondents were against the idea of limiting supermarket opening hours on weekdays and weekends. According to 68% of them, if the government decided to do this, it would cause a number of problems. It would be hard to buy groceries in the evenings, and the selection would be reduced. Nearly 40% believed that limiting competition would generate price rises in small shops and produce markets.

Only 15% of Russians favored limiting competition, mostly pensioners aged sixty and older. When replying about what they thought about regulating prices for basic foodstuffs as a way of supporting the poor, Russians were divided in their opinions. Exactly half of them said such restrictions were ineffective, while 32% supported a combination of government and market measures, while 14% believed the government should solve the problem.

The VTsIOM survey showed that Russians were concerned about the government’s restricting prices for basic products. 55% said it would lead to the closure of stores, while 28% said it would lead to shortages, price gouging, and disruption of supplies. However, a quarter of respondents believed that prices would subsequently drop, and life would improve.

Russians see the government’s key role in regulating the produce market in support for domestic producers and developing farming, as well as in quality control. However, according to Yulia Baskakova, head of social modeling and forecasting at VTsIOM, “While worrying with all their heart for domestic producers, supporting improved food quality, and supporting the development of farming, Russians are not willing to sacrifice their comfort and put up with a reduction of the range of goods to which they are accustomed and its becoming less available. The survey showed that 88% of Russians are not willing to put up with a drop in their quality of lives to reduce the price of essential foodstuffs.”

The poll was occasioned by a suggestion, made by Federation Council member Sergei Lisovsky, that regional authorities could decide how large store chains should operate. Lisovky also suggested prohibiting supermarkets from opening at nights and on Sundays, and permitting them to work on Saturdays only until four o’clock in the afternoon. Lisovsky has argued that such measures would support small business and promote small-scale trade.

Translation and photo by the Russian Reader. Faithful readers might wonder why I have cited Russian opinion polls at such length after making a big effort, over the past couple of years to show that this pollocracy, while real enough as a practice, does not tell us much or anything at all about what actual Russians thinking or are planning to do.  I have made an exception in this case, however, because I think the three news items, above, show, between the lines, as it were, what really afflicts the Russian economy, and how the feigned populism of the political/economic elite rears its head, quite often in fact, to suggest impracticable solutions to the knotty problems their own mammoth corruption and instinctive hatred of small business and independent individuals generates the dead end they claim to want to alleviate by, among other thing, commissioning one “public opinion poll” after another while stubbornly failing to notice that their enthusiastic terrorizing of Krasnodar farmers, independent truckers, and Moscow street vendors show they have no interest whatsoever in small business, much less reducing the prices of basic foodstuffs for pensioners. The only thing that interests them is getting richer and making their power untouchable. TRR

Surviving the Siege

“I Only Want to Take a Bath, Nothing More”
Alexander Kalinin
Rosbalt
May 15, 2017

Anna Yegorova is ninety-eight years old. She defended Leningrad all nine hundred days of the Nazi siege of the city during the Second World War. On the seventy-second anniversary of Victory Day, the combatant did not even get postcards from the government. But there was a time when she wrote to Brezhnev—and got a reply. 

Anna Yegorova. Photo courtesy of Alexander Kalinin and Rosbalt

Anna Yegorova was born in 1918 in the Kholm-Zhirkovsky District of Smolensk Region. When she was ten, her parents decided to set out in search of a better life and moved to Leningrad with their daughter. They settled in a wooden house near the Narva Gates on New Sivkov Street, now known as Ivan Chernykh Street. Yegorova finished a seven-year primary school and enrolled in the Factory Apprenticeship School, where she graduated as a men’s barber.

“Oh, what beards didn’t I trim in my time,” the Siege survivor recalls.

After acquiring a vocation, the 19-year-old woman married Alexander Vesyolov, a worker at the Kirov Factory. As soon as the war broke out, her husband volunteered for the first division of the people’s militia. Nearly the entire division fell in battle during July–September 1941 on the southern approaches to Leningrad. Vesyolov is still officially listed as missing in action.

Yegorova was drafted into the air defense brigades at the war’s outset. The young woman served in a basement, equipped with seven cots, in one wing of the Kirov Factory. It was the headquarters of the local air defense brigade.

Yegorova still remembers the war’s outbreak, her military service in the besieged Leningrad, and victory in May 1945.

Фото ИА «Росбалт», Александр Калинин
Anna Yegorova as a young woman. Photo courtesy of Alexander Kalinin and Rosbalt

“How did the war begin? We were going to the cinema, but my mother told me I should go to the factory instead. Then I got a notice stating I had been drafted to serve in the headquarters of the local air defense brigade at the Kirov Factory. I spent all nine hundred days there. I was able to come home only once a month. My parents starved to death. Dad passed away on February 3, 1942. He was a first-class carpenter. His comrades made him a wooden coffin: they could not bury a carpenter without a coffin. Mom died a month later. They just carried her off to the Volodarsky Hospital in a blanket. I don’t even know where she is buried. Maybe at the Piskaryovskoye Memorial Cemetery, maybe in Moskovsky Victory Park,” says Yegorova.

Her duties included running to other parts of the city to deliver dispatches, carrying the wounded, and standing on guard at the factory, armed with a rifle. The young woman would look into the sky and watch what planes were flying overhead: planes emblazoned with red stars or planes bearing black crosses. Once, during a heavy bombardment, she was shell-shocked.

“I still remember how we chopped up houses in the Kirov District. Once, a girlfriend and I were dismantling a house near a railroad bridge, and a woman called out to us, ‘Girls, girl, come here, come.’ We didn’t go: we were scared. There were all kinds of people back then, you know. Once, this girl stole my food ration cards, and my mom’s earrings were also stolen,” recalls Yegorova.

Фото ИА «Росбалт», Александр Калинин
Yegorova’s collection of war medals. Photo courtesy of Alexander Kalinin and Rosbalt

The Siege survivor recounts how she would travel to the Krasnoarmeysky Market to buy linseed cakes and oilseed meal.

“The oilseed meal was like sawdust. Oh, how I gagged on that oilseed meal! But we had nothing to sell. We were poor.”

When Victory Day arrived, her house was nearly totally destroyed. Only an ottoman was rescued from the ruins.

Yegorova remarried after the war. Her new husband was a military officer, Nikolai Yegorov, who had fought not only in the Great Patriotic War (Second World War) but also the Finnish War (Winter War). In peacetime, Yevgorov became a first-class instrumentation specialist. In 1946, the Yegorovs gave birth to a daughter, Lydia. Yegorova worked as a secretary at the Kirov Factory, latter becoming head of a bread and confectionery department at a store.

In the late 1960s, Anna Yegorova wrote a letter to Leonid Brezhnev, secretary of the Central Committee of the Soviet Communist Party. The essence of the message was as follows.

“Leonid Ilyich, no one is forgotten, nothing is forgotten. But it has so happened that I, a survivor of the Siege of Leningrad, awarded the medal For the Defense of Leningrad, and my husband, a veteran of the Great Patriotic War, have to huddle with our daughter in a sixteen-square-meter room on Lublin Alley.”

Image courtesy of slideshare.net

Yegorova does not believe her letter reached Brezhnev personally, but she does think it wound up in the hands of a “kindly” secretary who helped the family move into a one-room flat in the far southern district of Ulyanka. She lived in the neighborhood for around thirty years. She was civically engaged, working with Great Patriotic War veterans. She says she even worked as an aide to Sergei Nikeshin, currently an MP in the St. Petersburg Legislative Assembly, who was then quite young. Nikeshin and she inspected the fields then surrounding Ulyanka.

The certificate accompanying Anna Yegorova’s medal For the Defense of Leningrad. Photo courtesy of Alexander Kalinin and Rosbalt

In 1996, Yegorova took seriously ill. She was struck down by deep vein thrombosis. Her left leg “was like a wooden peg.” Her husband Nikolai died in 1999.

“After that, Mom stayed at home. I took care of her. This is my cross. We would take her to the dacha only in the summer. Otherwise, she would move about only in the apartment. She would get up in the morning and make her bed, come into the kitchen and sit down on the couch. She would turn on  and call the station to request a song. She loved Boris Shtokolov’s “Dove.” Or she would request “A White Birch Weeps,” or something by Nikolai Baskov. But a month ago she took to her bed. Now all she does is lie in bed,” recounts her daughter Lydia Kolpashnikova.

Boris Shtolokov, “Dove” (a Russian adaptation of “La Paloma”)

Kolpashnikova is herself a pensioner. She has a third-degree disability. According to her, Petersburg authorities have practically forgotten her mother. True, three years ago, the Moscow District Administration called and said she could get a wheelchair. The women’s joy was short-lived. It transpired that the wheelchairs were used: they had been brought to Petersburg from Holland. To make use of the chair, they would have had to pay to have it repaired. The women decided to turn the gift down the gift.

Фото ИА «Росбалт», Александр Калинин
Congratulatory cards and other memorabilia sent to Anna Yegorova over the years as a Siege survivor. Photo courtesy of Alexander Kalinin and Rosbalt

Yegorova has received no substantial help from the local Siege survivors society. The organization can only offer trips to museums and theater tickets. This is not an option for Anna Yegorova, who is in no condition to leave her apartment. On memorial days—the Day of the Lifting of the Siege and Victory Day—however, cakes used to be brought to her. But this time around, however, she was completely neglected. According to the pensioner, the city did not even congratulate her.

Yegorova’s daughter Lydia decided to remind the authorities of her mother’s existence after hearing President Putin’s speech on TV. The president demanded that the heads of the country’s regions do a better job of caring for Great Patriotic War veterans.

Фото ИА «Росбалт», Александр Калинин

“I clung to Putin’s words that veterans needed help, for example, if they needed help with home repairs. I called the district administration and asked them to repair our bathroom,” says Kolpashnikova. “Mom is completely ill. She is almost completely out of it. She has gallstones, heart failure, and atrial fibrillation. She is classified as a first-class disabled person. She survives only on sheer willpower. But now she cannot make it to the bathroom. I wipe her off in bed. She talks to me about the bathroom all the time, however. She wants to take a bath, but wants the bathroom repaired. The tile has crumbled in there. I called the Moscow District Administration and asked them to repair the bathroom, but I was told that ‘sponsors’ deal with these issues. Now, however, there is a crisis, and there are no sponsors. What sponsors were they talking about? Mom also needs medicines and diapers. There are social workers willing to run from one office to the next to get hold of diapers for free, but they also need to be paid to run around. The local Siege survivors organizations cannot do anything: they are the weakest link. I have no complaints against them.”

Фото ИА «Росбалт», Александр Калинин

Anna Yegorova gets gifts from the authorities only on round dates. When she turned ninety, they gave her a towel, and they presented her with bed linens when she turned ninety-five.

“I called them in the autumn. I said that Mom would be turning ninety-eight on November 25. I suggested they come and congratulate her. They said to me, ‘We don’t have the right. When she turns one hundred, we’ll congratulate her,” recounts the Siege survivor’s daughter.

Anna Yegorova does not want to ask the authorities for anything.

“I have no strength. What should I do? I cannot stand up straight. I fall. I just want them to fix the bathroom. I want to take a bath. That’s it.”

All photos courtesy of Alexander Kalinin and Rosbalt. Translated by the Russian Reader. Thanks to Comrade Koganzon for the heads-up

Petersburg’s Largest Communal Apartment

Life in One of Russia’s Largest Communal Apartments
Yulia Paskevich
Gorod 812
March 23, 2017

Apartment No. 2 at Detskaya Street, 2, on Vasilyevsky Island, is Petersburg’s largest communal apartment. At any rate, its tenants think so. City officials cannot say for sure how large the apartment is. According to certain documents, its total area is 1,010.7 square meters; according to other documents, the figure is 1,247.7 square meters. All we know for certain is that is contains 34 rooms and 40 common areas. Gorod 812 visited the apartment, concluding it was not the sort of communal apartment where one would want to live.

Art Around the Corner
During my first visit to the apartment, I was horrified. The odors gave me a headache, and I could not understand how people could live in such conditions. I then made a repeat visit, and I discovered the apartment had another, civil half. It left me with a murky impression. The apartment dwellers would tell me things were good, but they would not open their doors, although most of the people I encountered were decent and pleasant.

The apartment probably holds the record not only for sheer size but also for utter neglect. Visitors are usually shown the floor, which is caving in, the rotten wiring hanging overhead, and the crumbling walls. They are usually asked not to take off their coats and shoes at the entrance, as is the custom in most Russian homes, because the stroll down the hundred-meter-long hallway is cold and dirty. Some residents agree to speak with reporters only off the record. They do not want workmates to find out where they live.

The building the apartment occupies was erected in 1958, and is now surrounded by so-called elite residential estates. The Erarta Contemporary Art Museum is nearby. It is not a big hit among the residents.

The building’s first story was originally an outpatient medical clinic. In 1983, the clinic acquired a new building, and its old digs were remodeled as a dormitory for medical staff from the nearby Pokrovskaya Hospital and Children’s Infectious Disease Hospital No. 3. The numbers of doctors’ surgeries are still attached to the doors of some of the rooms in the apartment. There is not a single, thick load-bearing wall inside the apartment. The entire space has been divided by partitions, so voices and noises carry.

“When a neighbor in the next room sneezes, you say ‘Gesundheit’ aloud,” remarks Elena Pogor. “He thanks you.”

Nadezhda Khondakova, an employee at a medical center, took up residence on Detskaya Street in 1989, when three to four people lived to a room.

“I was born and raised in Karelia,” she says. “After graduating from medical college, I was assigned to the children’s hospital and got a place in the dormitory. The room had always been neglected. It was temporary housing, so no one paid much attention to maintenance. Besides, renovations were not carried out there right away.”

Outwardly, the apartment has seemingly been divided in two. The right half is cleaner and brighter, while the floor is sinking in the left half.

“As a technician said, the heating main runs under this half of the apartment,” Khondakova explains. “Every three years, we install a new floor, but they all rot.”

Communal Legends
On March 1, 2005, the dormitory was officially designated an apartment, giving residents the right to privatize their rooms. But little has changed. The entry doors are still unlocked, so anyone can get into the apartment. Previously, homeless people would venture into the apartment to warm up or wash up, sleeping right in the kitchen. Residents try and avoid letting not only children into the hallway but cats as well. Who knows what might happen to them.

In 2011, the apartment was declared unfit for habitation. Two years later, Petersburg Governor Georgy Poltavchenko signed an eviction and resettlement notice. At the time of the signing, 27 families (62 people) officially resided in the apartment.

Old-timers recall the queues for the showers and toilets. There were two of each, and people started queuing for them at five in the morning. They also remember showdowns in the kitchen and rats. They lived modestly. If you ran out of something, you could borrow it from a neighbor without asking.

“You would leave detergent in the kitchen and someone would use half the bottle,” recalls Tatyana Pogor. “Spoons were stolen, people had their trousers swiped from the clotheslines. Half a chicken once vanished from the oven. That was unpleasant, but they left a note saying whether they found it tasty or not. Once, there was a knock-down-drag-out fight over the shower.”

When ten families had received authorizations for new apartments, the housing authority ceased issuing the authorizations.

“The apartments were issued chaotically,” says Khondakova. “It was not only people whose housing was subsidized who were affected. My neighbor Tatyana privatized her room and was resettled in a one-room apartment. I’ve been in the queue for separate apartment for twenty years, and I’ve never been offered anything.”

The residents tell me about about a drunken neighbor lady who was moved into a one-room apartment in the Moscow District, about a women who did not want to move out, and a family who happily took up a new life in the Petersburg suburb of Pushkin.

The activists argue the apartment should be resettled completely and everyone should be moved into separate accommodations.

“It’s not the district that issues us apartments. The city has been handling the resettlement,” Khondakova underscores. “We know where residential buildings are being built: Parnas, Veterans Avenue, and Shushary [in the far north and far south of the city, respectively.] But we have not said we want to live only on Vasilyevsky Island.”

After the ten families departed, the residents who were left behind divvied up the remaining space among themselves, including around 40 common spaces, such as washrooms, hallways, and the laundry room. Tatyana Lobunova’s 24-square-meter room includes 40 square meters of hallway and kitchen space, for which she pays the city’s housing authority 4,000 rubles a month [approx. 63 euros]. Khondakova pays rates between 7,000 and 8,000 rubles a month. However, a table in the apartment’s kitchen is littered with bills left unpaid by debtors. Some residents demonstratively refuse to pay the maintenance and cleaning fees for their rooms.

The Residents
Residents are reluctant to let visitors into their rooms. As you gaze at the dilapidated kitchen and toilets, you imagine this shambles reigns throughout the apartment. But you would be wrong. The residents’ own rooms are clean and tidy. Many of them have equipped their rooms with small kitchens and cook food there. The doors to the different rooms vary as well. Residents sequestered behind more expensive doors do not want to chat with reporters, while the activists who demand total eviction and resettlement live in the part of the apartment where the floor caves in.

The author of a petition on Change.Org to resettle the apartment, a petition that has gathered nearly 18,000 signatures, has lived in the apartment six years. An actress at the Ne-Kabuki Theater, Tatyana Lobunova bought her room from builders. They had purchased the room for a song, plastered the walls, and resold it. Lobunova had lived in a communal apartment before. She grew up in a nine-family apartment on Konnogvardeiskaya Boulevard, in the city’s downtown. So the idea of living in a communal apartment did not intimidate her.

The cosmetic repairs in her room quickly crumbled. The new wooden window turned black and rotted, a crevice emerged under the wet wallpaper on the outside wall, and the room smelled moldy. A sofa was tossed out by way of combating cockroaches. Now the room is chockablock with cockroach traps. When I asked her whether she was really unaware of the investment she was making, she shrugs.

“I had to live on Vasilyevsky Island,” she explains. “A family theater means working nonstop. I get four hours of sleep a day. If I lived a ways from the theater, I would probably get no more than two hours of sleep a day.”

Lobunova stores letters from various officials in a folder. She produces one from the presidential administration, who advised tenants to exercise their right to turn to the local authorities to redress their grievances.

Currently, the number of proprietors who actually live in the apartment is not so great. People prefer to let their rooms for eight to twelve thousand rubles a month. It is hard to tell one renter from the next. There are people knocking about, and the heck with it.

A native of Pskov Region, Elena Pogor has lived in Petersburg around six years. Initially, she and her husband rented a room, but then friends suggested they live in the apartment at Detskaya, 2, up money to buy her own apartment or room.

“In Dedovichi, where I grew up, there are no jobs at all,” she explains. “The wages there run from seven to ten thousand rubles a month. You can earn twelve to fifteen thousand rubles a month at the regional power plant. We consider the people who work there wealthy.”

The room where she and her husband live is in the better-maintained part of the apartment.

“It all depends on people and upbringing,” argues Pogor. “We have made friends with the neighbor lady Roza and her daughter. They’re good, tidy people. It’s a shame the repairs were started and not finished. On the one hand, I could not care less. I’m not planning to stay here long in any case, but I want to live decently.”

A Potential Squat 
The Vasilyevsky Island District Administration has its own plans for the apartment. In 2015–2016, an overhaul of the common property was undertaken. Workers showed up, removed the toilets, stripped off the tiles, poured cement floors in the bathrooms, and left. Tenants had to parquet the floor in the hallway themselves. The district administration has dubbed this exercise “works toward eliminating the apartment’s hazardous condition.”

The district administration told us that the “paperwork affirming the elimination of the hazardous conditions [was] currently being vetted.”

Eliminating the apartment’s hazardous status would facilitate its being sold as real estate. The question is, who would buy it and for how much. There is little hope the city’s communal apartment resettlement program would come to the rescue. It has being going sluggishly in the district: in 2016, it resettled a mere forty apartments there. So there is virtually no chance a huge communal apartment will up and vanish by itself. For the time being, the only prospect is that, as conditions worsen, the rent will grow cheaper.

Then the apartment will undergo its latest metamorphosis and turn into a squat.

For Your Information
Communal apartments will celebrate their one hundredth anniversary in the summer of 2018. There are 78,534 communal apartments in Petersburg, housing 250,027 families. 4,816 such apartments were resettled in the city during 2016.

Translated by the Russian Reader. Photos courtesy of Yulia Pashkevich/Gorod 812

Life on the Installment Plan

“Sovcombank. Are you a pensioner? Your loan is approved!”

Half of Russians in Arrears Take Out New Loans to Repay Old Loans
Takie Dela
April 18, 2017

In 2016, according to the statistics of the United Credit Bureau (UCB), 45 million Russians with current loans took new loans from banks. More than half of these people intended to use the money to pay off outstanding loans.

The bureau’s analysis showed that 53% of borrowers took a new cash loan that was used to fully or partly repay existing loans. 27% spent more than half of the new loans to pay their debts.

On average, Russians borrow between 101 and 126 thousand rubles [between 1,650 euros and 2,080 euros, approx.] to repay debts. According to statistics, around half of the borrowers (56%) take the money to repay debts of 50 thousand rubles or less or debts over 500 thousand rubles (47%).

33% of those who take new loans before repaying old loans have a debt of 100 thousand rubles. Nearly a fifth of all borrowers (18%) have three outstanding loans and a total debt of 278 thousand rubles, while every tenth borrower has five or more outstanding loans and a total debt of 575 thousand rubles.

71% of those who have five or more outstanding loans have taken a new loan to repay the interest on the existing debt. 65% of those with four outstanding loans and 60% of those with three outstanding loans have done the same thing. Those who have only one outstanding loan are the least likely (42%) to use a new loan to make interest payments.

“The trend may indicate the growing popularity of loan refinancing programs, which many Russian banks have vigorously brought on line in the past year,” commented UCB’s director general Daniel Zelensky. “Borrowers who took out loans at high interest rates in 2015 naturally have wanted to refinance them on more favorable terms.”

He added that many borrowers have realized that now it is “irrational to service several loans in different banks at the same time.”

In May of last year, the National Credit History Bureau analyzed 3,700,00 Russian creditors and reported that the most indebted Russians were schoolteachers and physicians. Employees of the social sector and education sector spend 33.39% and 33.3%, respectively, of their income paying back loans. The highest ratio of monthly loan payments to income (33.56%) was recorded amongst pharmaceutical and medical workers.

According to UCB’s report, no fewer than 600,000 Russians are currently bankrupt. That is, they owe more than half a million rubles and have not made payments on their debts for three months.

Translation and photograph by the Russian Reader. If you found this article interesting, you might want to read “Kotlas: Russia’s Bankruptcy Capital,” posted here in December 2016.

Popular Protests in Novosibirsk Defeat Governor’s Plans to Raise Rates

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Rally against planned building maintenance and utility rate hikes, March 19, 2017, Novosibirsk. Photo courtesy of navalny.com

Novosibirsk Cancels Sharp Hike in Utility Rates in Wake of Protests
Yevgeny Kalyukov
RBC
April 19, 2017

Seven protest rallies in the region’s capital have forced regional leaders to give up their plan to raise rates for housing services and utilities by 15%.

RBC Novosibirsk has reported that Vladimir Gorodetsky, governor of Novosibirsk Region, has announced he will not raise rates for residential building maintenance and utilities by 15% beginning July 1, 2017.

During a briefing on Wednesday in Novosibirsk, Gorodetsky said he had signed an amendment to a decree adopted in December 2016. The amendment lowers the maximum rate rise to 4%.

Seven protest rallies have taken place in Novosibirsk in recent months. Protesters demanded the authorities either give up plans to increase rates so sharply or resign. Opposition politician Alexei Navalny was involved in the third rally.

“I hadn’t imagined the degree to which the protesters were dissatisfied. It’s a rare thing when my speech is more moderate in mood than the slogans shouted by rallygoers. My overall feeling was that the city had had it. Clearly, no one here can pay the new rates. And it’s a sure bet no one wants to pay for someone else to live well. We also have to understand the rate rise hasn’t come into force yet. Meaning the people coming out to the rallies realize there will other figures on their bills come June. I’m curious to see what will happen here in August when the summons to take to the streets, contained in the building maintenance and utilities bill, arrives in everyone’s apartment,” Navaly wrote in his blog after the rally.

On April 17, a petition calling for cancellation of the rate hike, signed by several thousand people, was delivered to Gorodetsky’s office.

“Believe me, I don’t listen just to the opinions of the people at the rallies. I have meet with the trade unions, the Public Chamber, and the Russian People’s Front. People said the burden was heavy,” Gorodetsky said on Wednesday by way of explaining his decision.

In keeping with the decree “On Maximum Increases in Payments Made by Citizens for Communal Services in the Municipalities of Novosibirsk Region in 2017,” signed on December 16, 2016, the amount of money charged to consumers of communal services would have increased by 15% as of July 1, 2017, in a number of towns and villages in the region, including Novosibirsk itself.

Translated by the Russian Reader

“We Are Treated like Schmucks”: Why Volga Region Pensioners Have Rebelled against the Regime

“We Are Treated like Schmucks”: How and Why Volga Region Pensioners Have Rebelled against the Regime
Yeveniya Volunkova
Takie Dela
April 4, 2017

What Happened?
Certain benefits for pensioners, disabled people, and other beneficiaries were cut in Samara at the beginning of 2017. Monthly payments for housing services and utilities were replaced by compensation for actual expenses. People now have to pay their bills first, then show the authorities the receipts, and only after that, if they have no debts, are they compensated for their expenses. The system has not been put through its paces and does not function, so there have been problems with assembling documents and getting compensation. In addition, a charge for major renovations has been added to the housing maintenance bill, a charge that many people do not pay as a matter of principle. Also, free public transportation for working pensioners has been abolished, and the number of free rides on the subsidized transport pass has been limited to fifty. This lasts many people two weeks; moreover, people complain the “rides” disappear more quickly. The frosting on the cake was the cancellation of monthly cash payments for working pensioners, who number 175,000 in Samara Region. People have lost their supplementary pensions, which ranged from 600 to 1,200 rubles. Non-working pensioners, whose pensions are over 19,500 rubles, have also been stripped of supplementary payments. The Samara administration did not give permission to hold a protest rally on the city’s central square, allowing it only in a remote neighborhood. Despite these precautions, the protesters packed the square.

The fourth large-scale protest by pensioners took place in Samara on April 2. The old folks first rebelled against Samara Region Governor Nikolai Merkushin in early February, when around 300 people attended a protest rally. The number of protesters has grown each time, and yesterday, according to unofficial statistics, around 4,000 people gathered on the square near the Athletics Palace. The protesters told our correspondent Yevegniya Volunkova what they were protesting and how they had succeeded in coming together when the rallies have not been mentioned on television at all.

***

Nina Dmitrievna and Tamara Petrovna

Both women are seventy-nine years old. They heard about the rally from flyers and the internet. Their main complaints are Mordovian produce in the city and a fountain during the plague.

We’re upset about our poverty, the judicial system, and very many other things. But first of all, we want to see Merkushkin replaced. He squanders money and imports everything from Mordovia, including crushed stone, paving tile, and cement. Whatever shop you go to, the produce is all Mordovian. It’s no wonder his nickname is the Mordvin Pasha. During these hard times for the region, he wants to build the best fountain in Europe on the river embankment. Is now the time for it? Replace the pavement and benches, sure, but why the heck do we need a fountain right now? My friends and two children live in poverty, and it’s hard to buy bread. But this stadium [Samara is one of the host cities for the 2018 World Cup — TD], good God, how much money they’ve embezzled, and it’s not clear whether they’ll finish it or not. They took their kickbacks, but there’s no money left to build the thing. If we could see that everything was being done on behalf of the people, we would put up with it, but they have been stealing. Merkhushkin pumped three million into the wall on Samara Square [the Wall of Honor on Glory Square, which cut off a beautiful view of the Volga and Zhiguli Mountains, popularly known as the Wailing Wall — TD). It’s in terribly bad taste! And so much money was spent.

Mikhail Viktorovich

Seventy years old, he heard about the rally from friends. His main complaint: how can he survive on his pension?

How the mean regime deals with veterans! Yesterday, villagers told me their family had a monthly pension of 8,000 rubles [approx. 133 euros] or so. What is that? How can a person survive? Today, I went to get milk and bread. I also bought some biscuits and something to put in a soup. 600 rubles [approx. 10 euros] was gone just like that. Is the governor here? He didn’t show up? Shame on him! He stole kopecks from pensioners. Down with our government! They have not made a single effective move to improve the well-being of veterans.

Irina Olegovna

Sixty years old, she heard about the rally from a girlfriend. Her main complaint is that she has been forced to work to survive.

My monthly pension is 7,700 rubles, and I used to get a veteran’s bonus. I worked as an educator my whole life. Merkushkin took way the 621 rubles I got as a veteran’s bonus. I have no husband and no support. I’m forced to work to survive, but I have a whole passle of ailments. Should I approve his policies? He can go back to his native Mordovia. Besides, he lies and lies and lies. He shamelessly lies that he gives us a pension. I wrote a letter to him asking him to help me find work. Do you think he helped me? He didn’t do a damn thing for me.

Valentina Andreyevna

Sixty-three years old, she found out about the rally from the internet. Her main complaint is shamefully low pensions.

I came out of a sense of solidarity. I don’t receive any discount benefits: my length of service was too short. There should other slogans here: “Decent pensions!” Give us a decent pension and we wouldn’t need discounts. We’ll pay for public transport passes, for apartment maintenance costs, and so on. But it’s impossible to live on our miserly pensions.

Valery Remizov

Twenty-two years old, he found out about the rally from the internet. His main complaint is bad roads.

I came to the rally to voice my dissatisfaction with Nikolai Merkushkin’s social policies. It’s a pity our pensioners have to stand in the cold, demanding a few miserable kopecks. I’m sick of the state of the roads in this country. I’m tired of the fact the regime treats me hypocritically not only as a disabled person but also as an individual. It treats everything as a resource that can be sent off to war, god knows where. And yet it cannot organize a decent urban infrastructure, a decent life. I think the government needs to revise its policy of restricting the number of rides on public transport one can take if you have a discounted travel pass. I ride public transport all the time and I travel around town more than the authorities think I do.

Emma Viktorovna

Seventy years old, she heard about the rally on the internet. Her main complaint is that the governor was decorated “for his contribution to cosmonautics.”

Merkushkin is impudent. He’s an outsider in Samara. My colleagues, who have worked all their lives at the cosmodrome, were decorated for their service. But why the hell did they did stick an honorary pin on him for his contribution to cosmonautics? He has made no contribution whatsoever to cosmonautics. A persons should be more modest. Yet our colleagues where shown on TV standing off to the side, while he was shown in close-up. How did Samara manage without Merkushkina? Probably, it didn’t manage. But little Nikolai showed up, and it has been once achievement after another since then.

“Roads are Samara’s second misery. The fools in power are the first.” Roads are one of Samara’s worst problems. Photo courtesy of Yevgeniya Volunkova/Takie Dela

Roman

Sixty-five years old, he heard about the rally from his grandson. His main complaint is that the restricted number of trips on the discounted public transport travel pass make it hard for him to travel to the Volga.

Can you deceive people like that? They compare us with Penza, where forty-eight rides is more than enough, supposedly. Samara is a huge city: fifty trips a month is not enough here. When I’m traveling, all my rides get eaten up by he transfers. It’s a huge city. In the summer, I want to go to the Volga to swim. How many transfers is that? Fifty trips runs out in two weeks. Then there are housing services and utilities. We are forced to pay for utilities, but the discounts come later, after we’ve paid. Yet officials have included a fee for major house renovations in our bills. I don’t want to pay it. What am I paying for? I’ve lived half my life in the same building, which is falling apart at the seams. Major renovations have never once been carried out in that building.

samara-metro-28
Samara Subway and Tram Map. Courtesy of CartoTalk

Nadezha Fyodorovna

Sixty-nine years old, she heard about the rally from reading flyers. Her main complaint is how the money owed to pensioners has been used to pay for the governor’s palaces and the World Cup.

That scumbag Merkushkin took away all our benefits. How did he dare? He built himself palaces on Rublyovka, four palaces at three hundred million each. Does he have a conscience? Today, he was on Channel Two saying he built all the roads for us. The roads are all good, and everything in Samara is good. Only our pensions will have to pay for the World Cup. He’s a real bastard, a scumbag. We should send him packing back to Mordovia, where he can choke on his sons and relatives. Let’s keep coming out for protest rallies and demanding he resign.

Irina Olegovna and Lyubov Andreyevna

Forty-six and seventy-seven, they heard about the rally on the internet. Their main complaint is that the regime embezzles money and treats people like schmucks.

Irina Olegovna: I’m not a pensioner, but I came to stick up for them. I’m outraged by the injustice that flourishes in our country. The authorities have found the right people to rip off: pensioners. They holler about being a super power, that they defeated the fascists. Who beat whom? What’s the standard of living in Germany and the standard of living in Russia? Who did they defeat? Pensioners and sick children?

Young people attended the rally this time to support the pensioners. Photo courtesy of Yevgeniya Volunkova/Takie Dela

Lyubov Andreyevna: We’ve been spat on from all sides. You cannot get in anywhere to talk to anyone, whether it’s housing services and utilities or healthcare. Everywhere they could not care less about us. I’m seventy-seven. I use the internet and I know everything. I was a decision-maker when I was employed, but now I’ve been utterly humiliated. Thank you, Navalny, that you exposed Medvedev. We must send him packing

IO: It’s absolutely clear to everyone that regime embezzles money, and the fact they are silent is additional proof that thievery is going on. What happened to Serdyukov and Vasilyeva are proven facts. There was a trial, and they were let go. They sold off the property of the defense industry and lined their pockets. I don’t understand who needed this demonstrative flogging. They pulled out their dirty underwear, showed it to everyone, and put it away. I’ll be damned!

LA: Because they consider us idiots.

IO: Stupid schmucks!

LA: Stupid schmucks, cows, that’s who we are!

IO:  I agree with you completely. But ultimately they have to understand a point of no return will be reached, when it all goes to hell. What, are they waiting until people come after them with pitchforks? The country has already reached the boiling point. What the heck do we need Crimea for when our country is poor? I used to support Putin. He inherited a heavy burden, the country was in ruins. He seemed decent. I believed he’d put the country in shape. But then I realized what was what.

LA: Putin works for the oligarchs, not for himself. And we cows will all die off.

Vasily Petrovich

Eighty-two years old, he found out about the rally from a flyer. His main complaint is that payments have not been made to people who went through the war as children.

Look, I’ve brought a newspaper from 2014. Merkushkin promised to make monthly payments of 1,000 rubles to people who went through the war as children. But he didn’t give us fuck-all. We spent the war on a collective farm. Cold and hungry, we supplied the front and the cities with produce, while we ourselves ate grass and dirt. We survived, we were victorious, and now what? Now we are dying in poverty.

“Stop Making Fools of Russian Dudes!” Protest rally in Samara. Photo courtesy of Yevgeniya Volunkova/Takie Dela

Lydia Nikolayevna

Sixty-eight years old, she heard about the rally on the internet. Her main complaint is that her family has been stripped of all benefits, and that the regime takes people for idiots.

I’m a history teacher, I worked my whole life. Three years ago, my daughter died, leaving me to take care of my granddaughter Lada. She’s thirteen and in the sixth grade. By order of the city administration, the city paid the difference in the housing services and utilities bills for her as an orphan for the whole of 2016. The payment was small, but it made a difference. I’m a veteran of pedagogical work and disabled. We were supposedly divided into two groups: “rich” pensioners, who got 19,000 rubles a month, and poor pensioners. Money was taken away from us under the pretext of giving it to the poor. Money was taken from 175,000 people and then returned, allegedly, but we still haven’t got the money back. I don’t think they took the money in order to give it back. I take my granddaughter to school. I have to transfer, and I use four rides on my discounted travel pass. When they limited the number of trips to fifty, they took us for idiots. They also sucker us out of rides. My friends recorded every trip and noticed that they were shorting us by ten rides. They run out before the month ends, and they kick us off public transport. They’re secretly stealing even from these crumbs, from the fifty rides, as if we couldn’t check how many rides we were getting. I feel ashamed of this regime. We worked honestly our whole lives, and now they’re punishing us, punishing orphaned children and disabled people. It’s disgusting.

Nadezhda

Sixty-one years old, she heard about the rally on the internet. Her main complaint is the thieves in the government.

I have been denied the chance to travel by public transport. I need to drop off and pick up my granddaughter nearly every day. Of course, the number of rides on the travel pass is not enough. It’s just digusting. Why did they decide to limit us? What made them think fifty rides was enough for us? Merkushkin says that somebody made a thousand trips in a month on a seasonal pass. That’s utter rubbish. Even if it’s true, does that mean everyone has to have their benefits slashed? How many crooks and thieves are in the government? How many cases of corruption have been proven? In keeping with Merkushkin’s line of reasoning, all governors should be hauled into the Investigative Committee, no?

Organizing People through Their Wallets

“Let’s Reforge Medvedev’s Palaces into Unlimited Rides for Veterans.” The fifty rides they get on their free transport passes is not enough for residents. Photo courtesy of Yevgeniya Volunkova/Takie Dela

The main organizer of the rallies, Mikhail Matveev, a Communist MP in the Samara Regional Duma, is certain that his best organizer, the person who gets people out to the protest rallies, is Governor Merkushkin himself, the man whose decisions have driven people to the edge.

“Our old ladies don’t just read newspapers and watch TV. They’re not as backwards as they seem. They read social networks and blogs. Young people tell them things. Plus, we leaflet mailboxes and residential building entryways. We printed around 15,000 leaflets for the March 19 rally. The printing was paid for by the party and by ordinary people. It’s not a lot of money, but we don’t have anymore. Residents help us by leafletting for free and printing the leaflets at home on their printers. But the main organizing factor is people’s wallets, and the main organizer is Merkushkin. It used to be that pensioners weren’t aware that the number of trips on public transport was limited, but suddenly they were kicked off buses. The pension checks arrived, they were 700 rubles less, and so on. Dissatisfaction has been growing. We are grateful to Governor Merkushkin for the fact that his blunt propaganda pisses people off. There are all the phrases he tosses off at meetings with constituents, like, ‘It was you who did it so that we did nothing for you,’ and so on. They make the rounds. There will be more protest rallies until we get the pensioners their benefits back and send the governor packing.”

Translated by the Russian Reader