Crimea: the Income of the population fell, earning only feeding from the Federal budget of the Russian Federation

Two and a half years the average wage in the Crimea increased by 37%. But given the rampant inflation during this period, the income of a significant part of the population actually declined. In addition, the relatively high average salaries is provided mostly by just a few industries that are directly or indirectly funded from the Federal budget of the Russian Federation, and in most areas wages are very modest. The problem is further compounded by the growth of delay on wages.

The average salary in the Republic of Crimea in January-April 2017 amounted to 24 thousand 641 ruble, follows from the data Cristata. Since January of last year it increased by 7% (from 22 979 thousand rubles), and from the beginning of 2015 to 37% (from 17 912 thousand rubles). The current income of local residents formally correspond to promises of the former Minister of economic development of the Crimea Valentina Demidova, who in late 2015, said that they will grow to 24.2 thousand at the end of 2016.

Although technically the promise is made, many residents of the Peninsula that does not help. In 2015-2016, the price of goods in the Republic increased by more than 41%, according to the reports of the head of the Crimea Sergey Aksenov and the Russian Ministry of economic development. Meanwhile, in Russia, the prices during this time the average has risen by approximately 19%.

With regard to the growth of prices for services, they are getting more expensive every year, and the main growth is in services that the local residents are major cost items. As stated in the materials Kristeta in 2016 an average of 20-30% more expensive utility services, water and sewage, heating and electricity. Preschool education (kindergartens) has risen by 61.9 per cent.

In addition, if one looks at the wage distribution across industries, we can see that the relatively high average salary is largely provided by only several areas which workers receive significantly above average (30-50 thousand). Meanwhile, in most of the industries wages, in General, low (7-22 thousand). It is noteworthy that almost all the high-spheres exist or develop due to the money coming in from mainland Russia, including from the Federal budget of Russia, what can be said about low-income areas.

So, the highest average salary was recorded in Finance and insurance — 51 thousand 684. The dependence of the financial sphere from the Federal budget are obvious. On the Peninsula was five banks, the largest of which (by assets) — MCB (92 billion) and GenBank (31 billion). The first 100% owned by the Russian government, which in April decided in 2017-2019 years to invest 15 billion rubles. The second Bank belongs to the local government and businessmen, however, is counting on Federal aid, without which he could be in trouble.

In addition to local banks, a large proportion of the financial sector of the Crimea accounts for the Bank “Russia” (781 billion in assets) owned by a close friend to Vladimir Putin, the businessman Yuri Kovalchuk. The Bank is registered in St. Petersburg, Crimea has a network of offices. In 2016, the capital was increased by the Central Bank for 10.7 billion rubles. Insurance companies in the Crimea, only a few and they are small.

Get Federal money and industry and mining, where average salaries amount to 38 thousand 63 of the ruble. The most popular minerals — oil and gas. In the Black and Azov seas produces the local state enterprise “Chernomorneftegaz”. Under the program “Gasification of settlements of the Republic of Crimea”, the company together with the enterprise Krymgazseti (supplier of gas to consumers) until 2020 will receive from the Federal budget 35 billion rubles.

Similarly cash fuelled from Moscow observed in the area of electricity, gas and steam, where they receive an average of 33 thousand rubles 46. In addition to the above Kremasta, the largest enterprise in this sector is Krymenergo, which until the end of 2017 (along with several other organizations) must obtain from the Federal budget of 2,1 milliard roubles. In addition, Krymenergo regularly supplies electricity to customers who pay for it Federal funds. For example, the Crimean units of the Federal tax service.

The average salary 31 259 thousand rubles get workers in the fields of public administration and military security. Ministries of the Republic, as a rule, get money from the local budget, however, their large projects are financed from the budget of Russia. Only in 2017, the state structures of the Peninsula will receive from the Federal centre of 54.6 billion rubles.

As for military security, financed from the Federal centre, on the Peninsula based black sea fleet of the Russian Navy. In addition to the headquarters in Sebastopol (not part of the Republic of Crimea) the Navy also has a large number of units on the territory of the Republic, the salaries were likely already counted in the national statistics. Also working in the Crimea structure of the FSB.

The only industries with higher wages where the support of the Federal budget is not obvious, it’s production of fabricated metal products, except machinery and equipment (average salary — 37 642 thousand rubles), and production of electronic and optical products (29 862 thousand rubles). Although among them one can find enterprises the development of which is covered by Federal funds. For example, the program of development of industrial complex of Crimea includes the billion rubles of Federal money. These funds, among other things, should go on reconstruction of engineering networks of shipbuilding plant “Zaliv”, which produces metal structures for the construction of the Crimean bridge, and on the development of technologies Feodosia optical plant, which in addition to the microscopes produces laser devices for reconnaissance and tank sights.

 

The average income of workers in the above six industries is 36 thousand 926 per month, while the average salary in all other spheres, of which a few dozen — 20 of 783 thousand rubles. Just earn less than people working in the field of administrative activities and related services (14 885 thousand rubles), which include rental, leasing, cleaning, activities of travel agencies and workers in the printing sector (10 thousand 766 rubles), and plants for the production of clothing (7 of 249 thousand rubles).

Detailed data on wages in Sevastopol there. The average salary in the city is 26302 ruble. A breakdown by industry Sevastopolska after 2014, not published. Most of the residents of the city and its suburbs, spoke with the publication EurasiaNet.org claim that earn an average of 15-20 thousand rubles.

Note that in addition to the official salaries in the Crimea there are illegal labor market, incomes which do not lend themselves, however we are unlikely to believe that they are too high. The shadow economy is repeatedly mentioned in the law “On the strategy of socio-economic development of the Republic of Crimea until 2030”. For example, in Sevastopol the share of working “in the shadows” is estimated at 30% of the population, stated at the end of last year, Vice-Governor Yuri Krivov. According to him, most often “shadow” workers employed in the fields of retail, tourism, construction, passenger transport and accommodation facilities during the tourist season. Many of the locals in Crimea rent apartments to tourists and migrants, others informally traded food and goods in crowded places and near the beaches.

The situation with relatively low incomes is compounded by the growth of arrears of wages. Overdue wage arrears in the Crimea is accumulated on a monthly basis and in all spheres without exception, from the data Cristata. From February to June 2017, it has increased from 56 million to 107 million rubles. Mostly in the fields of industrial and manufacturing industries in the areas of water and health.

 

Comments

comments