Plato Is Invincible, or, The Fix Is In for RTITS

trans-siberian highway0

Russian Government Could Pay for Protests Against Plato Road Tolls System
Olga Adamchuk
Vedomosti
January 8, 2019

“No to Rotenberg’s extortion” read stickers on long-haul trucks in early 2017, when highways were blocked [sic] in protest against the introduction of the Plato road tolls system. An agreement that would establish an automated weight-and-size monitoring system on federal highways, fining overweight trucks, would protect its likely operator,  RT Invest Transport Systems (RTITS) from problems associated with such manifestations of dissent.

Currently, RTITS is 23.5% owned by Igor Rotenberg [son of Putin crony Arkady Rotenberg], 50% by RT Invest,  19% by Andrei Shipelov, and 7.5% by Anton Zamkov.

If there are rallies, demonstrations, meetings, and marches near the automated weight-and-size monitoring points, even if these events were authorized, and they hindered the construction or operation of the Plato system, incurring extra costs to the operator, the Russian government would be obliged to compensate the operator for these expenses, according to a draft concessionary agreement, published December 28 on the official Russian government bidding information website torgi.gov.ru. The operator would be able to bill the government not only for actually incurred losses but also for expected losses.

The government will wait for other bids until February 12. If other bids are submitted, there will be a tender for the contract. If there are no bids, the agreement will be signed on the current terms.

However, downtime in the operation of the scales will have no effect on the operator’s revenues, which will be supplied not by Russian truckers, but by the Russian government. For installing and maintaining the system, the operator will be paid 8.64 billion rubles annually [approx. $129 million] (VAT not included) over eleven and a half years. The government will shell out a total of 118.45 billion rubles [approx. $1.7 billion] (VAT included) to the system’s operator. The concessionaire would pay fines for the glitches for which it was responsible. An appendix to the agreement stipulates the system must identify three quarters of violators.

The agreement features a long list of special circumstances in which the operator can demand additional payments from the government, including when inflation is twice as high as was expected, and if the project goes over budget by ten percent or more.

The government would also permit the system’s operator to use the property it builds and installs, which remains state property, for any purpose, including commercial ends.

A concession deals insider notes this stipulation has usually not been part of projects in which the grantor made payments to the concessionaire, since, if there were an opportunity to earn money, it should reduce the fee paid by the grantor. The agreement also lacks the routine stipulation that key subcontractors must be approved by the grantor. Our source wondered why the government was thus willing to forfeit oversight of the project. If the concessionaire had managed to obtain cheap financing, the government could reduce its fee: the state and investors would usually share benefits equally, but there is nothing of the sort in the proposed agreement.

Currently, there are 28 weight-and-size monitoring points operating on Russian federal highways. After the new system has been completely installed, in 2024, there will be 387 automated weigh stations. Under the terms of the project application, eighty-eight of these weigh stations will be built by way of improving the current Plato road toll system, the Russian Transport Ministry has reported.

Investors are also protected in case the agreement is terminated. The Russian government shoulders a greater payout to the concessionaire than it would in similar agreements, said Sergei Luzan, director of PricewaterhouseCoopers Russia (PwC Russia). Even if the project never gets off the ground, the concessionaire can incur two billion rubles in expenses and have them repaid by the Russian government. Such conditions are possible in concessions, but the government usually only pays costs that have been itemized and authorized in advance, and at a discounted rate, Luzan said.

In 2017, protesters demanded the government terminate the concession agreement for the Plato road toll payment system. Andrei Bazhutin, [chair of the Association of Russian Carriers or OPR], said truckers were planning to protest the launch of the weight-and-size monitoring system as early as February. According to Bazhutin, Russia’s independent truckers had been engaged in serious discussions.

Alexander Kotov, chair of the Truck Drivers Trade Union, also confirmed discussions were underway, but he refused to say when protests could begin. He said carriers would like to see shippers bear the cost for overloaded vehicles.

Having to pay for an overloaded vehicle that travels through several weigh stations could simply ruin a small trucking company, but it would also go bust if it refused to dispatch the overweight vehicle, explained the head of a major logistics company, because the shipper would hire another carrier.

As cited by the Transport Ministry, the RADOR Association (a national organization of local road authorities) has claimed that overloaded trucks cause 2.6 trillion rubles in damage to highways annually. According to statistics, there are no longer any problems with federal highways, since they are in between scheduled overhauls. But the president has ordered an overhaul of regional roads, which are still in a state of chaos.

The truckers and spokespeople of truckers associations surveyed by Vedomosti were unhappy with the current weigh stations. Bazhutin said that, compared with the Plato system, the weight-and-size monitoring system still had numerous shortcomings, for example, the fact that weather conditions had a huge impact on the accuracy of scales. He also noted that drivers do not see whether they are running overweight when they drive over the scales, and so when they receive a fine of between 100,000 rubles and 500,000 rubles [$1,500 to $7,500] in the mail, it is a complete surprise to them. If a trucker fails to pay the fine, his or her account is blocked.

“It’s just like with Plato. It doesn’t matter whether you were running empty or loaded. You have to pay whether you were overweight or not, since the system registered a violation. It’s impossible to dispute a fine. Since this whole business puts pressure on self-employed carriers, there will likely be protest rallies and marches,” said Bazhutin. “But we’re unlikely to set up a protest camp next to a weight station in Yaroslavl Region, say, when it is the federal authorities who are making the decision.”

Kotov argued that, since the bulk of cargo in Russia is shipped by trucks, this new financial burden would ultimately be passed on to consumers.

Political scientist Abbas Gallyamov argued the state of public opinion is currently such that things could kick off anywhere whatsoever. Any action by the authorities that is deemed unjust is capable of setting off a wave of protests. Gallyamov notes that Russian truckers have demonstrated their willingness to fight back and their capacity for coordination; moreover, they did so in circumstances in which public opinion was generally much more inclined to side with the regime. Given this past history, the chances of Russian truckers rising in protest again were great, he concluded.

Spokespeople for the Transport Ministry and RTITS told that the terms of the agreement were standard.

Translated by the Russian Reader. Photo courtesy of dangerousroads

You Gotta Fight for Your Right to Party

Involving Teenagers in Unauthorized Protest Rallies Could Cost as Much as One Million Rubles
Experts Say Authorities Won’t Find It Hard to Prove Charges
Olga Churakova
Vedomosti
July 11, 2018

Госдума готовится ввести многотысячные штрафы за вовлечение подростков в несанкционированные митингиThe State Duma plans to introduce hefty finds for involving teenagers in unauthorized protest rallies. Photo by Andrei Gordeyev. Courtesy of Vedomosti

On Tuesday, the State Duma’s Family Affairs Committee gave the go-ahead to a law bill that would introduce penalties for “encouraging” teenagers to attend unauthorized protest rallies. On Monday, the bill was approved by the government’s Legislative Affairs Commission. In its written appraisal of the bill, the Family Affairs Committee recommended clarifying the minimum age at which offenders would be held liable for violations, although the relevant committee reviewing the bill is the Committee on Constitutional Law.

Tabled by Alyona Arshinova, Anatoly Vyborny, and other United Russia MPs, the law would amend the Administrative Violations Code to include penalties of 15 days in jail, 100 hours of community service or a fine of 50,000 rubles for individuals who encourage minors to attend unauthorized protest rallies. Fines for officials would range from 50,000 to 100,000 rubles, while fines for legal entities would range from 250,000 to 500,000 rubles. A repeat violation could send individuals to jail for up to thirty days, while legal entities would be fined as much as one million rubles [approx. €13,800].

“In my experience, there is no such thing as a perfect law bill. As for the current bill, the relevant committee has not yet meet to discuss it,” says Vyborny.

However, Vyborny is certain the amendments are necessary.

“Children cannot resist the negative influence of adults. It matters to them to express themselves, and we hope this bill will deter them from ill-considered actions. Administrative liability will be a deterrent,” he says.

What matters is that young people are not drawn into a culture of legal nihilism, the MP argues. According to Vyborny, the bill does not aim to punish minors, but protest rally organizers. Hence, the age limit is defined in the bill.

OVD Info estimated that ninety-one teenagers were detained on May 5, 2018, in Moscow at an unauthorized protest rally to mark the inauguration of Vladimir Putin as president for the fourth time. According to OVD Info, at least 158 minors were detained nationwide on May 5 at similar protests. OVD Info estimated that a total of 1,600 people were detained that day.

Lawyer Oleg Sukhov says proving protest rally organizers are in violation of the new law would be a piece of cake. Rallies are organized in different ways, including personal contacts and public announcements.

“Our government is planning to deter all means of organizing protest rallies. It realizes this work on the part of the opposition will only intensify over time not only via the web but also through communication with young Russians,” notes Sukhov.

The main point is the government would not have to prove anything, argues Sukhov. Minors will go on attending protest rallies. Whenever they tell police they saw an announcement on the web, the organizers will be charged with violating the law according to a fast-track procedure.

“Clearly, the law will be enforced selectively. It’s a classic manifestation of the so-called mad printer. The terms used in the wording of the bill are not defined at all. For example, what does it mean to ‘encourage’ a teenager to attend a rally? Can teenagers attend rallies? They can. So, how do we figure out whether they attended on their own or were ‘encouraged’? We can’t,” says Navalny’s righthand man Leonid Volkov.

Volkov does not believe the law will be effective since protesters have been paying fines as it is.

“It is no accident this attempt to intimidate young people made the news today, the same day the Investigative Committee released a video about a teenager who goes to prison for reposting [‘extremist’ items] on social media. Of course, this will only produce new Primorsky Partisans,” Volkov concludes.

“Extremism Is a Crime,” a video posted on YouTube on June 25, 2018, by the MultiKit Video Studio. The annotation to the video reads, “A public service video on the dangers of extremism, produced by MultiKit Video Studio for the Russian Investigative Committee’s Altai Territory Office. The video will be shown in schools to prevent such crimes.”

__________________________

__________________________

KMO_156800_00022_1_t218_212746.jpgAlexei Avetisov. Photo by Emin Dzhafarov. Courtesy of Kommersant

Youth Policy Finds a Direction
Kremlins Finds a Specialist in Subcultures and Extremism
Sofia Samokhina, Maxim Ivanov and Lada Shamardina
Kommersant
July 11, 2018

Kommersant has learned Alexei Avetisov, member of the Russian Public Chamber and president of the Russian Student Rescue Corps, could join the Office of Public Projects in the Kremlin. Avetisov has been tapped to head the Department for Combating Extremism among Youth. Ksenia Razuvayeva, head of Rospatriotcenter (Russian Center for the Civic and Patriotic Education of Children and Young People) has been named as a candidate for head of the Department of Youth Policy in the Office of Public Projects. Both candidates would still have to be vetted by the Kremlin.

Alexei Avetisov, member of the Russian Public Chamber and president of the Russian Student Rescue Corps, could head the Department for Combating Extremism among Youth in the Kremlin’s Office of Public Projects. Currently, the Office of Public Projects, which is run by Sergei Kiriyenko, the president’s first deputy chief of staff, has no such department. Our sources say Mr. Avetisov would be tasked with overseeing youth subcultures and decriminalizing the youth scene, in particular, by dealing with the popular AUE network of criminal gangs. The Presidential Human Rights Council discussed the issue with Vladimir Putin in December 2016.

Olga Amelchenkova, head of the Victory Volunteers Movement and member of the Russian Public Chamber, told us there were few organizations in Russia involved in volunteering in emergencies, and Mr. Avetisov was one of the few people who had constantly brought up the subject in the Public Chamber.

An acquaintance of Mr. Avetisov’s said his Russian Student Rescue Corps had brought many universities together. The organization took part in the first Taurida Camp held after the annexation of Crimea in 2014, an event attended by MPs and high-ranking officials. From 2015 to 2017, Mr. Avetisov was director of Territory of Meanings on the Klyazma, a youth education form, sponsored by Rosmolodezh (Russian Agency for Youth Affairs). His main job at the forum was providing technical support for the camp.

On June 6, Znak.com, citing its own sources, reported law enforcement agences were investigating Territory of Meanings on the Klyazma and, in this connection, “questions for the forum’s ex-director Alexei Avetisov could arise.” The website indicated companies allegedly affiliated with Mr. Avetisov had for several years been awarded “lucrative” contracts for constructing venues at the forum. The firms in question had no experience implementing government contracts. Currently, some of the companies have either gone out of business or are dormant, wrote the website.

Timur Prokopenko, deputy chief of staff in charge of the Office of Domestic Policy in the Kremlin, had been in charge of youth forums in recent years. He also handleded youth policy in his capacity as head of the Office of Domestic Policy. However, on June 14, a presidential decree turned youth policy over to the Office of Public Projects.

znakcom-2039402-666x375Territory of Meanings staffers. Photo from the camp’s VK page. Courtesy of Znak.com

Gazeta.Ru has reported that Rospatriotcenter head Ksenia Razuvayeva could take charge of the Office of Public Project’s Department of Youth Policy. Before taking over the running of Rospatriotcenter, Ms. Razuvayeva ran the Moscow branch of the Russian Volunteers Union and collaborated with the Young Guard of United Russia (MGER), which Mr. Prokopenko ran from 2010 to 2012. Ms. Razuvayeva would not confirm to us that she was moving to the Office of Public Projects Earlier, a source of ours in the Kremlin said she might not make it through the vetting process. Another of our sources noted a possible conflict of interests was at play. Ms. Razuvayeva also told us it was the first time she had heard about Mr. Avetisov’s moving to the Office of Public Projects.

“The vast majority of Young Guardsmen and other pro-regime activists brought up through the ranks in the past decades are supremely focused on their careers. The system simply spits out anyone else,” political scientist Abbas Gallyamov told us.

According to Gallyamov, “Changing colors for the new boss and refusing to have anything to do with people they worshipped only the day before are quite ordinary for this crowd.”

“Therefore, it does not matter whose people they were considered yesterday. They will be loyal to any boss, just because he or she is the boss,” Gallyamov added.

Translated by the Russian Reader

Cossacked

18A so-called Cossack lashes protesters with a plaited whip (nagaika) at the He’s No Tsar to Us opposition protest rally at Pushkin Square in Moscow on May 5, 2018. Photo by Ilya Varlamov

Сossacks Were Not Part of the Plan: Men with Whips Take Offense at the Opposition
Alexander Chernykh
Kommersant
May 8, 2017

The Presidential Human Rights Council (PHRC) plans to find out who the Cossacks were who scuffled with supporters of Alexei Navalny during the unauthorized protest rally on May 5 in Moscow. Meanwhile, the Moscow mayor’s office and the Central Cossack Host claimed they had nothing to do with the Cossacks who attempted to disperse opposition protesters. Kommersant was able to talk with Cossack Vasily Yashchikov, who admitted he was involved in the tussle, but claimed it was provoked by Mr. Navalny’s followers. Human rights defenders reported more than a dozen victims of the Cossacks have filed complaints.

The PHRC plans to ask law enforcement agencies to find out how the massive brawl erupted during the unauthorized protest rally on May 5 in Moscow. PHRC chair Mikhail Fedotov said “circumstances were exacerbated” when Cossacks and activists of the National Liberation Front (NOD) appeared at the opposition rally.

“It led to scenes of violence. We must understand why they were they and who these people were,” said Mr. Fedotov.

“Our main conclusion has not changed: the best means of counteracting unauthorized protest rallies is authorizing them,” he added.

On May 5, unauthorized protest rallies, entitled He’s No Tsar to Us, called for by Alexei Navalny, took place in a number of Russian cities. In Moscow, organizers had applied for a permit to march down Tverskaya Street, but the mayor’s officers suggested moving the march to Sakharov Avenue. Mr. Navalny still called on his supporters to gather at Pushkin Square, where they first engaged in a brawl with NOD activists and persons unknown dressed in Cossack uniforms. Numerous protesters were subsequently detained by regular police. Approximately 700 people were detained in total.

The appearance on Pushkin Square of Cossacks armed with whips has provoked a broad response in Russia and abroad. The Guardian wrote at length about the incident, reminding its readers that Cossacks would be employed as security guards during the upcoming 2018 FIFA World Cup in Russia. The Bell discovered a Central Cossack Host patch on the uniform of one of the Cossacks photographed during the brawl. According to the Bell, which cites documents from the Moscow mayor’s office, the Central Cossack Host was paid a total of ₽15.9 million for “providing security during large-scale events.”

However, Vladimir Chernikov, head of the Moscow Department of Regional Security, stressed, during an interview with Kommersant FM, that on May 5 “no Cossacks or any other organization were part of the plan and the means of providing security.”

Chernikov said police and the Russian National Guard acted impeccably. Spokesmen for the Central Cossack Host also said they had not dispatched any Cossacks to guard Pushkin Square, and that the Cossacks who, wearing their patches, did go to the square, had “voiced their civic stance.”

Bloggers have published information about the Cossacks they have been able to identify from photos and video footage of the rally. One video depicts a bearded man who grabs a placard, bearing the slogan “Open your eyes, you’re the tsar’s slave!”, from a young oppositionist before arguing with Open Russia coordinator Andrei Pivovarov. The Telegram channel BewareOfThem reported the man was Vasily Yashchikov, member of the Union of Donbass Volunteers. Mr. Yashchikov has confirmed to Kommersant he was, in fact, at the rally and was involved in the brawl with opposition protesters. Yet, he claimed, most of the Cossacks at Pushkin Square had nothing to do with the Central Cossack Host, as claimed by the Bell. According to Mr. Yashchikov, the brawlers mainly consisted of nonregistered (i.e., unaffiliated with the Russian government) Cossacks from two grassroots organizations, the First Hundred and the Crimean Regiment. Moreover, they allegedly showed up at the rally independently of one another.

“The rally was discussed in Cossack groups, and someone suggested we go and talk to people,” Mr. Yashchikov told Kommersant. “We have nearly a hundred people in the  Hundred, but only fifteen decided to go. At the square, we met Cossacks from the Crimean Regiment, which is actually not Crimean, but from the Moscow Region. But our organizations are not friendly, so we were there separately.”

He admitted there were several people from the Central Cossack Host at Pushkin Square, but his group did not interact with them, either.

KMO_165050_00034_1_t218_200833So-called Cossacks at the He’s No Tsar to Us opposition rally at Pushkin Square, Moscow, May 5, 2018. Photo by Alexander Miridonov. Courtesy of Kommersant

According to Mr. Yashchikov, the Cossacks came to Pushkin Square to talk with Mr. Navalny’s supporters, but had no intention of being involved in dispersing the rally.

“There were one and half thousand people there [the Moscow police counted the same number of protesters—Kommersant]. There were thirty-five of us at most, and we had only two whips. You could not have paid us to wade into that crowd,” claimed Mr. Yashchikov.

Mr. Yashchikov claimed he managed to have a friendly chat with Mr. Navalny, but opposition protesters were aggressive, he alleged.

“Someone picked on us, asking why we had come there, that it was their city. Another person tried to knock my cap off, while they swore at other Cossacks and blasphemed the Orthodox faith,” Mr. Yashchikov complained. “Well, we couldn’t take it anymore.”

People who attended the rally have denied his claims.

“The Cossacks acted cohesively, like a single team,” said Darya, who was at the rally [Kommersant has not published her surname, as she is a minor]. “They formed a chain and started pushing us towards the riot police, apparently, to make their job easier. The Cossacks kicked me, while they encircled my boyfriend and beat him. They retreated only when they realized they were being film and photographed.”

Darya planned to file a complaint with the police charging the Cossacks with causing her bodily harm. Currently, human rights defenders from Agora, Zona Prava, and Public Verdict have documented more than fifteen assault complaints filed against the Cossacks.

Oppositionists have claimed the police mainly detained protesters, allegedly paying almost no attention to the Cossacks and NOD activists. Kirill Grigoriev, an Open Russia activist detained at the rally, recounted that, at the police station where he was taken after he was detained, he pretended to be a NOD member, and he was released by police without their filing an incident report.

“When we arrived at the Alexeyevsky Police Precinct, a policeman immediately asked who of us was from NOD. I jokingly pointed at myself. He took me into a hallway and asked me to write down the surnames of other members of the organization,” said Mr. Grigoriev.

He wrote down the surnames of ten people, after which everyone on the list was given back their internal Russian passports and released.

*********

Cossacks Confront Navalny Supporters for First Time
Regime Prepares for Fresh Protests, Including Non-Political Ones, Analysts Argue 
Yelena Mukhametshina and Alexei Nikolsky
Vedomosti
May 6, 2018

He’s No Tsar to Us, the unauthorized protest rally in Moscow held by Alexei Navalny’s supporters, differed from previous such rallies. On Tverskaya Street, provocateurs demanded journalists surrender their cameras. By 2:00 p.m., the monument to Pushkin was surrounded by activists of the National Liberation Front (NOD). When protesters chanted, “Down with the tsar!” they yelled “Maidan shall not pass!” in reply. Behind the monument were groups of Cossacks, who had never attended such rallies. In addition, for the first time, the police warned people they intended to use riot control weapons and physical force, and indeed the actions of the security forces were unprecedentedly rough. The riot police (OMON) detained protesters by the hundreds, and Cossacks lashed them with plaited whips.

The Moscow police counted 1,500 protesters at the rally, while organizers failed to provide their own count of the number of attendees. Navalny said the nationwide rallies were a success. His close associate Leonid Volkov argued that “in terms of numbers, content, and fighting spirit, records were broken,” also noting the police’s unprecedented brutality. According to OVD Info, around 700 people were detained in Moscow, and nearly 1,600 people in 27 cities nationwide. Citing the PHRC, TASS reported that 658 people were detained in Moscow.

fullscreen-1sdb.png

“He’s No Tsar to Us, May 5: A Map of Arrests. 1,597 people were detained during protest rallies on May 5, 2018, in 27 Russian cities, according to OVD Info. According to human right activists, during nationwide anti-corruption protests on March 26, 2017, more than 1,500 people were detained. Source: OVD Info.” Courtesy of Vedomosti

PHRC member Maxim Shevchenko demanded the council be urgently convoked due to “the regime’s use of Black Hundreds and fascist militants.” According to a police spokesman, the appearance at the rally of “members of different social groups” was not engineered by the police, while the warning that police would use special riot control weapons was, apparently, dictated by the choice of tactics and the desire to avoid the adverse consequences of the use of tear gas.

According to NOD’s leader, MP Yevgeny Fyodorov, 1,000 members of the movement were involved in Saturday’s rally.

“We wanted to meet and discuss the fact the president must be able to implement his reforms. Because we have been talking about de-offshorization and withdrawing from a unipolar world for five years running, but things have not budged an inch,” said Fyodorov.

NOD did not vet their actions with the Kremlin, the leadership of the State Duma or the Moscow mayor’s office, Fyodorov assured reporters.

On Sunday, the Telegram channel Miracles of OSINT reported that, in 2016–2018, the Central Cossack Host, whose members were at the rally, received three contracts worth nearly ₽16 million from the Moscow Department for Ethnic Policy for training in the enforcement of order at public events. As Vedomosti has learned, according to the government procurement website, the Central Cossack Host received eleven contracts, worth nearly ₽38 million, from the Moscow mayor’s office over the same period.

Gleb Kuznetsov, head of the Social Research Expert Institute (EISI), which has ties to the Kremlin, argued there was no brutality at the rally.

“In Paris, the scale of protests is currently an order of magnitude higher, but no one speaks about their particular brutality. In Russia, so far the confrontation has been cute, moderate, and provincial. The only strange thing is that, in Russia, people who are involved in such protests, which are aimed at maximum mutual violence, are regarded as children. But this is not so. Everything conformed to the rules of the game, common to the whole world. If you jump a policeman, don’t be surprised if he responds with his truncheon,” said Kuznetsov.*

The Russian government has allied itself with the Cossacks and NOD, which are essentially illegal armed formations, argued Andrei Kolesnikov, a senior fellow at the Moscow Carnegie Center.

“This does not bode well. Apparently, in the future, such formations will be used to crack down on protests,” said Kolesnikov.

The authorities are preparing for the eventuality there will be more protests. Even now the occasions for them have become more diverse, and they are spreading geographically, noted Kolesnikov.

Grassroots activism has been growing, and the authorities have realized this, political scientist Mikhail Vinogradov concurred. They are always nervous before inaugurations. In 2012, there was fear of a virtual Maidan, while now the example of Armenia is fresh in everyone’s minds, he said.

“The security services had to flex their muscles before the new cabinet was appointed. Although, in view of the upcoming FIFA World Cup, law enforcement hung the regime out to dry contentwise,” said Vinogradov.

* In September 2017, the Bell reported that state corporations Rosatom and RusHydro were financing EISI to the tune of ₽400 million each, and it could not be ruled out that the so-called social research institute was receiving subsidies from other state companies.

Translated by the Russian Reader

Annals of Import Substitution: Got Milk?

Perhaps one of the big reasons the post-embargo Russian dairy industry has failed to achieve “total important substitution,” not mentioned in the otherwise comprehensive article, below, has been its penchant for gulling Russian consumers. Among the gullible is your correspondent, who was moved by the label on this milk carton (“Honest Natural Cow Milk […] from an Ecologically Pure District of Bashkiria”) to buy it the other day. My boon companion, however, immediately pointed out what the side of the carton revealed. In this case, “Honest Bashkir Natural Cow Milk” was actually reconstituted milk powder (“изготовлено из молока нормализованного”), not real milk. Since the embargo set in, every Russian has also encountered literally tons of fake cheese in the shops. Chockablock with palm oil, not milk, and sporting European sounding monikers to make them more attractive to “discerning consumers,” this fake cheese has generated massive popular distrust in domestically produced cheese and other dairy products. TRR

Why Import Substitution Has Failed in the Dairy Industry 
Despite the Produce Embargo, Milk Production Has Declined, Dairy Products Have Become More Expensive, and Demand Has Fallen
Yekaterina Burlakova
Vedomosti
January 22, 2018

“I’ve seen it myself, touched it with my own hands. The country is currently constructing three cheese factories with the capacity to produce fifty, sixty, and seventy tons daily, and in five years we will have forgotten the problem [the shortage of domestically produced cheese] altogether!” Russian agriculture minister Alexander Tkachov said recently, sharing his optimistic plans. “Let’s recall pork, vegetable oil, sugar, vegetables, and fruit. We also imported all this produce. We were seriously dependent.”

Tkachov and his colleagues never tire of talking of how the produce embargo, imposed by Russia in August 2014 on the United States, the EU, Norway, Canada, and Australia, has helped Russian farmers. Greenhouses have been built, orchards have been planted, and so on.

But import substitution has not taken hold in the dairy industry. Milk production has declined, dairy products have become more expensive, and demand for them has fallen off. Why has this happened?

Russia provides itself with only 75% of the dairy products it consumes; the rest is imported, mainly from Belaruas. However, Russia has always suffered shortages of domestically produced raw milk. But the circumstances have worsened. According to Soyuzmoloko, the Russian national dairy producers union, the production of raw milk decreased by two percent to 30.7 million tons between 2006 and 2016.

It is a complex and costly business, says a spokesperson for a dairy company. Vegetable production shows a profit after seven or eight years; fruit production, after four or five. Dairy plants take much longer to show a profit. According to different estimates, it takes between ten and fifteen years to put them in the black. Many potential investors are scared off by such figures, but our source said what the dairy industry needed were serious, long-term investments.

Indeed, the dairy business is considered complicated due to the long time it takes to see a return on investment, says Stefan Duerr, director general of EkoNiva, Russia’s largest milk producer. It generally takes three years to build a dairy plant and put it on line. Dairy production also requires considerable working capital: cows give milk only from the age of three. You have to prepare you own feed, and for that you need land: an average of about three hectares per cow, says Duerr. Pig breeders and poultry farmers have it much easier, since they can buy readymade feed.

Over the past four years, the price of raw milk has increased by about 60% to 25 rubles per kilo, says Artyom Belov, director general of Soyuzmoloko. This occurred after the ruble declined, and demand from processors increased. Yet the net price of milk has decreased after the ruble’s recovery. Belov is certain this makes dairy farming more attractive to investors. In his opinion, state support is also vital. In 2017, compensation of capital expenditures grew from 20% to 30%, while soft loans have been granted at an interest rate of up to 5%.

Investors Have Doubts
Investors still have doubts, however, For example, Rusagro’s principle owner Vadim Moshkovich recently announced he was willing to invest one billion dollars in milk and dairy production. But a decision on the project has not yet been made, says a spokesperson for the agricultural holding company.

“Dairy cow breeding really is a complicated business with a long-term return on investment, even taking subsidies into account. However much we cite the discounted return on investment model, seven years, which is mentioned in the press, we just cannot pull it off in Russia,” he says, raising his hands in dismay.

The processing and production of value-added products is needed to make the project viable. Total vertical integration—from feed production to the manufacturing of dairy products—is thus necessary, he argues.

Other investors have also spoken of possible investments in mega projects. Alexei Bogachov, a minority shareholder in the Magnit grocery store chain, has promised to invest 20 million rubles in a partnership with Rusagro. Miratorg has promised to invest $400 million, while Thailand’s Charoen Pokphand Group has promised to invest one billion dollars. In reality, only Vietnam’s TH Group has launched new, large-scale raw milk production facilities. Last year, the company began construction on dairy farms in Kaluga Region and Moscow Region that will accommodate approximately 40,000 head of dairy cows, and it recently announced plans to build farms in the Maritime Territory. It intends to invest $2.7 billion over the next ten years.

If circumstances on the market do not change, and milk prices do not go down, Belov forecasts it will be possible fully satisfy Russia’s milk needs in ten years. For the time being, processers deal with the milk shortage in different ways. For example, Oleg Sirota, founder of the cheese company Russian Parmesan, will soon bring his own dairy farm on line.  In turn, in order to insure stable supplies of milk, the French company Danone has invested in milk production in Tyumen Region in partnership with Naum Babayev’s Damate Group. The cost of the entire project is 5.6 billion rubles, but Danone’s share of the costs has not been disclosed. According to the agreement between Danone and Damate, all the milk produced at the facility will be sent to the Danone plant for eight years.

The Embargo’s Impact
“We saw that European producers with much lower prices would not arrive the next day, and we realized we could make long-term plans, that we had to invest in domestic production,” said Alexei Martynenko, owner of Umalat, a company that produces brined cheeses.

Almost as soon as the embargo was imposed, Martynenko gave up the day-to-day management of a feed production business and set about vigorously developing Umalat.

“I realized that if I didn’t change anything right away, we would sleep through the chance to grow the company,” he noted.

Many businessmen decided to tackle cheese immediately after imposition of the embargo, which among other things banned the import of cheese from the European Union to Russia. In 2016, according to Nielsen, Umalat was Russia’s leading manufacturer of sulguni, and took third place in the manufacture of mozarella and mascarpone. Since 2014, production at Umalat has doubled to 5,000 tons annually, says Rustem Mustafin, the company’s marketing director.

“The import substitution program and imposition of the embargo came in handy. We would have grown without them, but the growth would probably have been less considerable,” Mustafin continues.

However, the embargo’s impact wore off quite quickly, since it was immediately followed by a substantial downturn in household incomes, he stresses.

Sirota launched cheese production in the summer of 2015. Currrently, he produces semi-solid and hard cheeses, which retail for 800 rubles to 1,600 rubles per kilo. His cheesery’s first batch of parmesan will mature in August, when the embargo will celebrate its fourth anniversary. Currently, Sirota produces 400 kilograms per day. In 2018, he plans to ratchet production up to two tons per day.

Russian manufacturers have been most successful in producing hard and semi-hard varieties such as Russian, Dutch, and Altai, says Andrei Golubkov, a spokesman for Abzuk Vkusa [ABC of Taste], a Russian gourmet grocery store chain. There are also high-quality producers of brie, camambert, mozarella, and burrata. But the supply of good-quality ripened hard cheeses is still limited. The chain now mainly sells hard cheeses from Switzerland, which was not included in the embargo, and the South American countries, says Golubkov. Expensive Russian cheeses account for about 10% of all sales in terms of money and about 5% in terms of volume, Soyuzmoloko’s Belov says.

If the embargo is lifted, many businessmen involved in the manufacture of milk and cheese will be ruined, argues Sirota.

“Even if we could compete in terms of quality, we could not compete in terms of cost. The price of milk in Germany is currently around 20 rubles [per kilo], while it is 34 rubles in Russia,” says Sirota. [According to the industry website clal.it, the price of raw milk in Germany in November 2017 was 38.97 euros per 100 kilograms or approximately 27 rubles per kilo—TRR.]

Milk in Germany costs less due to cheap loans and government subsidies. In Russia, on the contrary, loans are short-term and expensive: they fall due between five and seven years. Investors have not yet managed to launch production, but the money has to be returned. There is always a shortage of good-quality milk for reprocessing. It takes 14 kilos of milk to make one kilo of cheese. Moreover, the highest grade of milk is required to ensure the desired quality of cheese.

Mustafin says Umalat is not afraid the sanctions will be lifted, however. The company has been vigorously promoting its brands, has found its customers, and has produceed cheeses that are better than their imported counterparts.

From Milk to Macaroni
Meanwhile, the consumption of dairy products has decreased by 5% from September 2016 to September 2017, according to Nielsen. Sales of kefir experienced the largest drop: 8.4%. Sales of sterilized milk fell by 7%, yogurt, by 5.8%, and cottage cheese, by 5%. For the first time in recent years, there has been a drop in the consumption of such traditional Russian dairy products as milk, smetana (sour cream), tvorog (cottage cheese), tvorozhki (quark), and ryazhenka (fermented baked milk), notes Anastasia Jafarova, director of customer relations in the department of sales and servicing of consumer panels at GfK Rus, a market research company. Perhaps the main reason is an increase in the average price by 10.4%, explains Jafarova. Price rises have mainly been due to the price rise of the raw material, i.e., the milk supplied by farmers, says a spokesperson at PepsiCo. In addition, a spokesperson for Danone cites other causes. Under the Plato road tolls system, the tolls imposed on heavy cargo vehicles rose by 25% in April 2017, and excise taxes on fuels rose by more than 8%. The decreased demand for dairy products has also been due to a decline in household incomes over the past few years, argues Belov.

The fact that people have started to skimp even on ordinary milk says they are likely to switch to cheaper products, notes Marina Balabanova, Danone’s regional vice-president for corporate relations in Russia and the CIS. This could be macaroni, cereals or other products, she speculates. As never before, Russians are rational in their spending and try to redistribute their expenses as efficiently as possible, says Jafarova. This testifies to the relative adapation to a protracted crisis on the part of Russians.

Agricultural minister Tkachov has also admitted that import substitution has not occurred in the dairy industry. He wrote about it in response to an official query from Communist Party MP Valery Rashkin. Although imports have dropped by 1.9 million tons since 2013, the production of milk has grown only by 1.4 million tons. The minister wrote that the demand for imported dairy products was currently 7.5 million tons. At a production growth rate of three percent annually, total import substitution would take at least nine to ten years. But work is currently underway to increase state support, which would reduce this period to five to six years, Tkachov hopes.

fullscreen-3dv

“How the Consumption of Dairy Products Has Fallen (from June 2016 to June 2017, in percentages). Cheese spread and smoked cheese: –6. Quark: –5. Milk: –4. Yogurt drinks:–4. Firm yogurt: –4. Sour cream: –2. Cottage cheese: –2. Source: GfK Russia.” Infographic courtesy of Vedomosti

We Consume Too Little
A person needs to eat at least three dairy products per day. Eighty percent of the daily recommended intake of calcium is thus supplied. According to Soyuzmoloko, calcium is absorbed most easily this way. Their argument is backed up by the Federal Nutrition and Biotechnology Research Center and the Russian Osteoporosis Association. The Russian Health Ministry recommends individuals consume at least 325 kilos of dairy products annually. But we are far from achieving these norms: individual annual consumption of dairy products was 233 kilos in 2016. However, a top executive at a Russian agricultural holding company argues these claims are a bluff. In Soviet times, there were meat shortages, so dairy products were consumed as the primary source of protein. Circumstances have now changed. Russia now produces enough of its own poultry and pork at affordable prices. So there is simply no longer the need to eat so many dairy products, he explains.

Translated by the Russian Reader

UPDATE!

Up to 25% of Cheese in Russia Is Fake, Smuggled From Ukraine — Watchdog
Moscow Times
January 25, 2018

Up to a quarter of ‘cheese products’ sold in Russia were produced in Ukraine, circumventing Moscow’s embargo on food imports, according to Russia’s state agricultural watchdog.

Russia placed restrictions on food imports, including dairy, from countries that enacted sanctions against Moscow after its annexation of Crimea from Ukraine in 2014. The embargo has been a boon for domestic Russian producers, but consumers have complained about a proliferation of “fake cheese” — dairy products made with milk-substitutes.

Up to 300,000 tonnes of Ukrainian cheese products are entering Russia every year after being repackaged in Belarus, Russia’s agricultural watchdog Rosselkhoznadzor spokeswoman Yulia Melano told the RBC business portal Tuesday.

“In all likelihood, we’re talking about the legalization of Ukrainian cheese or protein and fat products through Belarus,” reads a letter written by Rosselkhoznadzor head Sergei Dankvert that was obtained by RBC.

The Ukrainian ‘cheese products’ mostly consist of vegetable oils, rather than dairy, and are imported via Belarus under the guise of Macedonian or Iranian cheese, according to the letter.

Cheese-like products could account for more than half of all cheeses sold in Russia, Andrei Karpov, the executive director of the Association of Retail Trade Companies (AKORT), was cited as saying by RBC.

Rosselkhoznadzor does not yet regulate cheese products, which are made almost entirely out of milk substitutes, and does not officially track its imports.

Thanks to Mark Teeter for the heads-up

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

Kremlinsplaining and Its Discontents

755094446431775

Vladimir Putin Explains How to Debate the 1917 Revolution
Delovoi Peterburg
November 3, 2017

Discussion of the 1917 Revolution should be based on facts and documents, President Vladimir Putin emphasized in his greeting to participants of international events occasioned by the Russian Revolution’s centenary.

“The turbulent, dramatic events of 1917 are an inalienable, complicated part of our history. The revolution had a tremendous impact on the evolution of Russia and the world, and it largely defined the political, economic, and social picture of the twentieth centure,” noted the president, as quoted by TASS.

The president also said the interest of public figures, scholars, and the media in a deep and comprehensive interpretation of the era was legitimate.

“Yet I am convinced that even the most heated polemics must be based on facts and docoments, on an objective and respectful attitude to the past. I hope that your meetings, which shall bring together people from many countries, will contribute to this constructive discussion,” Putin said.

Earlier, Rossotrudnichestvo (Russian Federal Agency for the Commonwealth of Independent States, Compatriots Living Abroad and International Humanitarian Cooperation) reported it would be holding various events commemorating the centenary of the October Revolution at Russian Culture Houses in over eighty countries.

“Russian Culture Houses in more than 80 countries [will] host exhibitions, science conferences [sic] and seminars, which aim on delivering an objective approach to historical events to foreign audience,” the agency said.

__________________________

Attack of the Bio Samples
How Conspiracy Theories Flourish
Vladimir Ruvinsky
Vedomosti
October 31, 2017

Vladimir Putin’s story about the collecting of “bio samples” in Russia by persons unknown for unknown purposes has stirred up Russians. It is a telltale case of a double distortion and an example of society’s sensitivity to conspiracy theories, which flourish in an impoverished informational environment.

The president made his remarks at a meeting of the Human Rights Council. They were seemingly spontaneous. Council member Igor Borisov had complained to the president that, according to his information, certain people were using video surveillance systems in Russia to gather images of Russians for unknown purposes. That was nothing, responded Putin. Bio samples from different ethnic groups and regions were also being “deliberately and professionally” collected nationwide. The question was why.

The story took on even more dramatic overtones when the president’s press secretary tried to explain it.

According to Dmitry Peskov, “Certain emissaries conduct such work: employees of nongovernmental organizations and other entities.”

The Russian secret services had reported them to the president, Peskov claimed.

But you did not need the secret services to tell you this. The notion of “bio samples” is broad, including, for example, blood tests, which have been done in Russia for approximately 150 years, and performed by Russians and foreigners alike. Obviously, Putin had in mind genetic samples. Methods for rapidly deciphering DNA sequences were discovered in 1977. DNA became a research subject at approximately the same time in the Soviet Union, and nowadays genetic research is carried out worldwide. Genes and genetics are global phenomena, and the DNA of all human beings is 99% identical.

There are two main areas of research. Medical genetics, in which individual samples from sick and healthy people are studied to determine, in particular, predispositions to certain diseases, and population genetics, which studies samples from different ethnic groups in order to reconstruct the history of peoples [sic], notes biologist Mikhail Gelfand. Research objectives can overlap. Apparently, Putin had population genetics in mind, but data has long been collected in Russia for both medical genetic and population genetic research. This work has been done by pharmaceutical companies (as part of clinical trials), medical centers (as part of genetic counseling), and researchers (as part of their search for the genes that trigger diseases).

Russia has been actively involved in international genome projects. In 2015, the results of a multi-year study of the gene pool of Slavic and Baltic peoples were published. The study was done by Russian and international geneticists, and one question they explored was who the Slavs were. In the same year, the Genome Russian Project, supported by Putin, was launched. Its aim is to create an open-accesss database containing anonymous genetic information about 3,000 men and women, the indigenous people of Russia’s various regions. The project has been coordinated by an American, Stephen O’Brien. There have been no reports the secret service has any gripes with the project.

Perhaps it is a commercial conflict. Valery Ilyinsky, director of the company Genotek, told RIA Novosti that two research centers in Moscow and Petersburg had been collecting bio samples from different Russian ethnic groups and sending them to colleagues in the US for research studies, but these studies could have bee done in Russia as well.

In the absence of a foreword such as I have just provided (I wonder how much the president was told), what Putin said sounded ominous, of course. Ignorance generates feelings of fears and danger. It is one step from there to conspiracy theories about genetic weapons and a future biological war that would threaten to destroy Russians. (According to Gelfand, even theoretically, it would be possible to devise a genetic weapon only against an ethnic group that had been living in isolation for a thousand years, which does not apply to Russians.) Of course it was wrong to claim that Russians were being targeted for biological war, stipulated Federation Council member Franz Klintsevich, but one must be ready.

This was not the first time the president has been sold a pack of imaginary threats. In 2007, FSB director Nikolai Patrushev reported to Putin that bio samples were being sent from Russia to the US. They were being used, allegedly, in a program for developing a “genetic bioweapon” targeting Russians. Patrushev claimed the weapon would be capable of damaging the health of ethnic Russians to point of killing them or rendering them infertile (as reported by Kommersant). Consequently, the Russian customs service banned the export of all bio samples, including hair, blood, and clinical analyses, which threatened the lives of thousands of Russians, who needed to be paired with bone marrow donors in German clinics. The ban was lifted after public protests, but the notion has proven tenacious.

__________________________

Central Bank Says Russians Mistrust Low Inflation Figures
Yevgeny Kalyukov
RBC
October 31, 2017

A survey conducted by the Central Bank of the Russian Federation has shown that most Russians had noticed a price rise for goods that, according to official statistics, had become cheaper.

Most Russians do not believe Russia’s inflation rate has slowed to 3% per annum, according to the Central Bank’s report. Commissioned by the bank, the survey showed 56% of Russians were certain that by the end of 2017 the total rise in consumer prices would be “considerably higher than 4%,” and 75% of respondents claimed that over the previous twelve months prices had risen no more slowly or even more quickly than earlier.

“People are not yet ready to believe inflation really has slowed to such a low level. A considerable role in this discrepancy has also been played by the volatility of prices for individual goods and services,” the Central Bank report says.

Zoya Kuzmina, head of the review group in the monetary policy department at the Central Bank, noted that Russians’ subjective perception of changes in prices of goods they purchase regularly was at odds with official statistics.

“In reality, sugar prices have decreased nearly by 50% on the year. Fruits and vegetables have also become cheaper, while prices for tea and coffee have increased somewhat (by around 2%). But respondents said prices for all these goods had increased,” Kuzmina explained.

According to Kuzmina, the survey’s outcome confirmed Russians “would need a little more time to get used to low inflation.”

According to the Central Bank’s reports, inFom’s October 2017 assessment of Russians’ inflationary expectations for the next twelve months had risen to 9.9%. The Central Bank, however, was confident that conditions for decreasing the populace’s inflationary expectations would emerge as inflation became entrenched at around 4%.

In early August 2017, Alexander Morozov, director of the Central Bank’s research and forecasting department, advised Russians to think less about rapid price growth, since it was just such sentiments that facilitated increased inflation.

Earlier, Central Bank chair Elvira Nabiullina warned that excessively low inflation could generate new difficulties for Russia’s “emerging economy.”

See my previous posts on the subject of official economic statistics in Russia:

Articles translated by the Russian Reader. Photo courtesy of Yekaterina Kuzmina/RBC. The emphasis in the translations is mine.

 

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.