Business Post Contributor
By Kester Kenn Klomegah
Deputy Mayor of Moscow for Economic Policy and Property and Land Relations Vladimir Efimov, in an interview published this mid-September in the newspaper Izvestia, widely circulated and reputable Russian media, lamented that Moscow is still experiencing a shortage of foreign workers at construction sites, now there is a shortage of about 200,000 people.
“This problem remains today Moscow lacks about 200,000 migrants. And we hope that in the near future, the restrictions on their entry into the country will be softened,” Yefimov said, answering the question of the publication whether the issue of the shortage of migrant workers for construction sites in Moscow.
According to him, “the lack of labour resources leads to the fact that employers, primarily developers, outbid employees from each other, which increases the cost of their services.
“If we talk about the period before the pandemic, for several years, housing prices in Moscow have hardly grown. Against the background of the pandemic, the cost of housing has increased, actually catching up with inflation in previous years,” said the Vice Mayor of Moscow.
The announcement simply highlighted the inconsistency dealing with migrant policy and the complete lack of foresight, especially what to do with migrants from the former Soviet republics. Thanks to these migrants, mostly employed in the construction fields and (cleaning, sewage disposal or removal services) in various neighbourhoods or districts, Moscow has won awards for being a modern and clean smart city in Europe. These migrants continuously play an important role, most often underestimated, in building infrastructure and in the general development of society.
According to a survey of Promsvyazbank (PSB), Opora Rossii and Magram Market Research conducted in June 2021 found out that 45 per cent of small and medium-sized businesses in Russia need new employees.
Entrepreneurs still consider the unfavourable economic conditions caused by the pandemic to be the main obstacle to business expansion, and employing new staff requires extra cost for training in the social services sector.
Opora Rossii, an organization bringing together Russian small and medium-sized enterprises (SMEs), and the Institute for Social Analysis and Forecasting of the Russian Presidential Academy of National Economy and Public Administration (RANEPA), among other business organizations and institutions, have been very instrumental on the significant role by working force, its combined objective and beneficial impact on the economy of Russia.
Several experts, in addition, have explained that migrants from the former Soviet republics could be useful or resourceful for developing the economy, especially on various infrastructure projects planned for the country. This huge human resource could be used in the vast agricultural fields to boost domestic agricultural production. On the contrary, the Federal Migration Service indiscriminately deports them from Russia.
Within the long-term sustainable development program, Russia has multibillion-dollar plans to address its infrastructure deficit especially in the provinces, and undertake mega projects across its vast territory, and migrant labour could be useful here.
The government can ensure that steady improvements are consistently made with the strategy of legalizing (or appropriately regulating their legal status) and redeploying the available foreign labour, the majority from the former Soviet republics, rather than deporting back to their countries of origin.
Moscow Mayor Sergei Sobyanin has been credited for transforming the city into a very neat and smart modern one, thanks partly to foreign labour – invaluable reliable asset – performing excellently in maintaining cleanliness and on the large-scale construction sites, and in various micro-regions on the edge or outskirts of Moscow.
With its accumulated experience, the Moscow City Hall has now started hosting the Smart Cities Moscow, an international forum dedicated to the development of smart cities and for discussing changes in development strategies, infrastructure challenges and adaptation of the urban environment to the realities of the new normal society.
Kremlin Spokesman Dmitry Peskov has acknowledged that Russia lacks a sufficient number of migrants to fulfil its ambitious development plans. He further underscored the fact that the number of migrants in Russia has declined significantly, and now their numbers are not sufficient to implement ambitious infrastructure projects in the country.
“I can only speak about the real state of affairs, which suggests that, in fact, we have very few migrants remaining over the past year. Actually, we have a severe dearth of these migrants to implement our ambitious plans,” the Kremlin spokesman pointed out.
In particular, it concerns projects in the agricultural and construction sectors. “We need to build more than we are building now. It should be more tangible, and this requires working hands. There is certainly a shortage of migrants. Now there are few of them due to the pandemic,” Peskov said.
The labour shortage is not only related to Moscow but it applies to many regions including the Far East. During the 6th edition of the Eastern Economic Forum (EEF) held in Vladivostok, the demography decline and labour shortage have been identified as factors affecting the development of the vast region. With plans to build residential blocks, establish industrial hubs and fix businesses, these depend largely on the working labour force.
The Russian government continues discussing a wide range of re-population programs, hoping to attract in particular Russians there, even with the promise of incentives such as double income, the mortgage system, early retirement and free plots of land, but few results have been achieved. According to official sources, Russia’s population is noticeably falling and now stands at 146 million.
The Far East is almost the size of Canada with its current population (a mixture of natives plus legalized immigrants) more than 38 million. That compared, the Far East which is estimated at 40% of Russia’s territory and with an estimated 6.3 million is one of the most sparsely populated areas in the world.
Kremlin has made this its absolute long-term priority, and the challenging task is to create an environment for investment and attract people. President Vladimir Putin acknowledged, at a meeting on the socio-economic development of the Far East, that the speedy outflow of the population from the Far East suggests that the region has not yet received enough support measures.
“A lot is being done, but it is still not enough if we observe an outflow of the population,” the Russian leader emphasized at the September forum in Vladivostok.
President Vladimir Putin has already approved a list of instructions aimed at reforming the migration requirements and the institution of citizenship in Russia, based on the proposals drafted by the working group for implementation of the State Migration Policy Concept of the Russian Federation for 2019-2025.
“Within the framework of the working group for implementation of the State Migration Policy Concept of the Russian Federation for 2019-2025, the Presidential Executive Office of the Russian Federation shall organize work aimed at reforming the migration requirements and the institution of citizenship of the Russian Federation,” an official statement posted to Kremlin website.
In addition, the President ordered the Government, the Interior and Foreign Ministries, the Federal Security Service (FSB), and the Justice Ministry alongside the Presidential Executive Office to make amendments to the plan of action for 2019-2021, aimed at implementing the State Migration Policy Concept of the Russian Federation for 2019-2025.
