RUSSIA RUBLE AGAINST DOLLARS DOWN HURTING MILLION OF FOREIGN WORKERS AS THEY WILL NOT ABLE TO EARN MUCH IN DOLLARS AS THOSE EARNING 18000 RUBLE PER MONTH USED TO CONVERT THE SAME TO $ 500 BUT NOW CONVERSION VALUE IS $ 300 REDUCING THE DISPOSAL INCOME BY $ 200 WHICH USED TO SEND TO THEIR FAMILIES IN HOME COUNTRIES As the value of the Russian ruble plummets and Russias economy tumbles into recession, millions of Central Asian migrants have seen their real wages dwindle. On top of that, Russian authorities are introducing new, expensive regulations for foreigners who wish to work legally in the country. Some Uzbek migrants in Russia now say they are contemplating a return home. Such an influx of returnees could have uncertain ramifications for their impoverished country. According to Russias ambassador to Uzbekistan, there are about 3 million Uzbek labor migrants in Russia, the most from any Central Asian country. Others estimate the number of Uzbeks could be twice that. Unofficial estimates put their remittances in 2013 at the value of roughly a quarter of Uzbekistans GDP. Kyrgyzstan and Tajikistan are even more dependent on labor migrants, with remittances contributing the equivalent of 30 percent and roughly 50 percent to their economies respectively. Data from Russias Central Bank shows that the funds Uzbeks send home dipped 9 percent year-on-year during the third quarter of 2014. Analysts predict the fall will continue. The Russian business daily Kommersant estimates that remittances fell 35 percent month-on-month in October alone. That was before the ruble, which has steadily fallen since Russian troops seized Crimea in February, nosedived earlier in December. Thanks to Western sanctions, the low price of oil, and systemic weaknesses in Vladimir Putins style of crony capitalism, the currency has lost roughly 50 percent against the dollar this year. Most migrants convert their rubles into dollars to send home My salary was 18,000 rubles a month, which several months ago would be equivalent to $500. Now, it is less than $300, Sherzod, a 29-year-old from the Ferghana Valley who was working at a shop in Samara, told EurasiaNet.org. Sherzod returned home in November and he is not planning to go back to Russia. The salary is too low. It is not only falling wages that labor migrants must consider. Starting on January 1, Russia requires labor migrants to pass tests on Russian language, history and legislation basics, as well as undergo a medical examination and buy health insurance (the entire package will cost migrants up to 30,000 rubles, currently about $520, by some accounts). The Moscow city government is also more than tripling the fee for work permits, from 1,200 rubles monthly to 4,000 rubles (currently $69). Citizens of countries that are members of the Eurasian Economic Union (EEU), which came into force on Jan. 1, will not be affected by the new regulations. That adds an incentive — some might say pressure — for migrant-feeder countries like Tajikistan and Uzbekistan to join. (Kyrgyzstan is hoping to join in early 2015). Sherzod, the Uzbek laborer, says that faced with falling real incomes, many Uzbeks working in Russia find themselves in a quandary. Thousands are eager to return home, but many simply do not have funds to buy a return ticket. Others worry about being seen in their native villages as failures. Russian media outlets have quoted a migrant community leader who projected new requirements for guest workers, along with the falling ruble, will prompt up to 25 percent of migrants to leave Russia in the coming months. .
Posted on: Mon, 05 Jan 2015 04:30:26 +0000
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