Azerbaijani migrants benefit Russian economy, rather facilitate unemployment in motherland

Russian Premier Valdimir Putin issued a new ban for foreigners on Dec. 31, 2008, which bars employment of migrants in retail trade of alcohol drinks, pharmaceutical products, as well as in camps and different retail trading outside shops.

The Russian Government has repeatedly taken decision concerning migrants. Law on migration registration is in force in Russia from Jan. 15, 2007 and makes eligible every migrant desiring to work in Russia to b issued an official license. In case a foreigner works without a license, the employer will have to pay fine up to 700,000 rubles (roughly $27,000) per person. Moreover, the foreigners are banned to get engaged in trade in the field of pharmaceutical and alcohol, while only 40% of foreigners can be involved in other trading facilities. Moreover, on Apr. 1, 2007 the foreigners' employment in retail trade was fully banned. In 2007 the quota for access to Russian labor markets made up 6 million for countries with non-visa regime and 302,000 for visa regime.

The migrants faced the same restrictions in 2008 as well. In addition to salesmen, sportsmen were also were added to the list of people protected against migrants' domination. The share of foreign employees in sports organizations is expected to make up 25 percent starting from the Q2 while this figure was 50 percent in Q1 of 2008.

Ban on migrants' engaging in retail trade of alcoholic drinks and pharmaceuticals was necessitated by a need to create jobs to reduce unemployment in Russia on backdrop of the global financial crisis and to ensure safe products.

However, the aforesaid decisions did not change Russian government's status as a country who imports labor resources and did not harm interest of the CIS citizens to the Russian labor market. For instance, only 5 to 10 people engaged in trade were imported from Russia to Azerbaijan as compared to anticipated flow of 2,000 to 750,000-800,000 people. The ban has been in force for already three years, but labor migrants from the CIS make up majority of salesmen engaged in petty trade.

According to the 2008 statistics, 70 to 90 percent of Russian employers employ migrants from Kyrgyzstan, Moldova, Uzbekistan, Georgia, Azerbaijan and Armenia. According to Russia's Federal Migration Service (FMS), Azerbaijan has the largest share of migrants in Russia - 900,000 per year. Georgia and Armenia have the second largest share - 400,000-450,000. Azerbaijan and Georgia also have largest share of illegal migrants.

According to official Russian statistics, around 69,000 Azerbaijani migrants work in Russia. The average term of residence is about 25 months. They send $200 per month to their country. Money transfers by the Azerbaijani migrants exceed those of other migrants. According to the Ministry of Labor and Social Protection of Azerbaijan, each individual transfers over $5,800 to Azerbaijan from Russia which makes up 1 percent of GDP at an annualized pace.

Obviously, migrants did not face problems to get Russian citizenship even through false documents. The number of foreigners with the false documents almost doubled in 2008 compared to 2007. According to the FMS, immigration control department uncovered 8,364 citizens with false documents.

Though global financial crisis has affected almost all sectors of the Russian economy, demand for migrants has not reduced. Moscow's population is not ready to replace migrants for the same position and for the same salary. But sharp rise in unemployment among Russian citizens compelled authorities to change their viewpoint.

The number of unemployed people is increasing each day and is expected to hit 10 million people in 2009. Therefore, many fear that millions of the so-called guest workers can take away jobs of the Russian citizens left to go without jobs. One should not expect competition in this case. The crisis will not bring about significant changes. If the crisis deteriorates and unemployment will further rise, certain part of local residents will agree take less prestigious, but paying jobs for the time being. But they will not whatever they are offered. Crisis last only for certain period of time which is usually followed by a rise.

Eviction of migrants in large numbers can lead to sharp drop in sales outlets and rise in value of retail trade services and price rise as well. In addition difficulties in recruiting new staff, Russian employers will also spend more to hire new labor force as they will pay different sum of salaries. All the afore-mentioned will take place if the decree will be actually implemented.

According to social study, 79 percent of labor migrants are engaged in unskilled and unskilled jobs in Russia. Majority of Russia's foreign migrants - 38 percent are engaged in construction, 26 percent - trade, 9 percent - transport and communication, 8 percent - forestry and 5-7 percent in agriculture. So, migrants deal with less prestigious and less paying jobs which are not interesting for local population.

It is noticeable that Russia has encountered sharp deficit of skilled workers for the last years. The statistics shows that it becomes matter of survival not in certain, but in all sectors of economy. Demographers say Russia's labor resources will shrink 8 million people by 2015 and 18-19 million by 2025. It can also deal a blow to Russian economy which employs 75 million workers. According to the Azerbaijani State Statistics Committee, 4.056 million of 4.138 million economically active people were employed in 2008. According to the Ministry of Labor and Social Protection, there are 4,367 legal migrants in the country. Majority of legal migrants accounts for Turkey, Georgia, the United Kingdom, India and Russia.

Foreigners are engaged in oil, construction and trade. Around 1,700 people worked in Azerbaijan legally in 2007. The figure has tripled since then.

So, it is obvious that Azerbaijani migrants benefit Russian economies to a great extend rather than ease unemployment in our country. It is not advantageous for Russia at all to evict Azerbaijani migrants in large numbers.

One can conclude that the recent restrictions for migrants on the Russian market will not have a significant impact on further trade activities, namely retail trade. However, the Minister of Labor Fuzuli Alakbarov says that if migrants in Russia return home, they will have good chances to be employed as new jobs are created both in capital city and rural areas.

It is noticeable that creation of new jobs is vital for rural areas as regions account for 75-80 percent of Azerbaijani migrants.

The State Program on Socio-Economic Development of Regions helped develop non-oil, especially agricultural sector. Around 6 billion manat were spent to implement the program. About 2 billion manat were allotted in 2008 as a part of the program.

The implementation of the program considerably reduced unemployment in regions. About 26,641 news enterprises were established for the last 5 years. Roughly 766,300 jobs were created 546,600 of which are permanent.

Iran say it would welcome US returning to nuclear deal
Iran say it would welcome US returning to nuclear deal
Iran announces readiness to commit its JCPOA commitments
Iran announces readiness to commit its JCPOA commitments
Iran's envoy reacts to IAEA chief's comments
Iran's envoy reacts to IAEA chief's comments
Loading Bars
Latest
Israel reports 873 new COVID-19 cases, 311,724 in total
UK records highest daily coronavirus-related death toll since May
Uzbekistan, Turkey discuss military cooperation
Algeria's president hospitalised, office says
At least four dead after boat carrying migrants capsizes off northern France
Africa's confirmed COVID-19 cases pass 1.72 mln mark: Africa CDC
We condemn in strongest possible terms Armenia attack on Barda city - Turkish Foreign Ministry
Putin, Erdogan discuss Karabakh conflict
FIFA President Gianni Infantino diagnosed with positive COVID-19 case
Trump says COVID-19 aid deal expected after Nov. 3 election
Armenia doesn't want to accept its citizens and bodies of its own servicemen - State Commission
Azerbaijani army doesn't fire at civilian population - Defense Ministry
Armenian leadership should seriously think about it and take right step - President of Azerbaijan
There are periodical supplies of Armenian armed forces from base in Gumru - Azerbaijani president
Armenian prime minister must say that Azerbaijanis will return to Nagorno-Karabakh, including Shusha - President of Azerbaijan
Italy can play very important role in settlement of Karabakh conflict - President Ilham Aliyev
I regret that unfounded accusations come from the co-chair countries, says President of Azerbaijan
If Armenia publicly declares that they accept fundamental principles we will come to agreement very quickly - Azerbaijani president
If Armenia continues to disrupt ceasefire, we will be forced to respond adequately - Azerbaijani president
New government of Armenia has repeatedly stated that fundamental principles are unacceptable for it - President Aliyev
Auction on Ministry of Finance bonds placement held at Baku Stock Exchange
Armenia refuses to take bodies of its servicemen from battlefield - assistant to Azerbaijani president
Over the past day, Armenia has repeatedly violated humanitarian ceasefire - MoD
Armenia's statements about humanitarian ceasefire - nothing more than hypocrisy, says assistant to Azerbaijani president
India, U.S. sign key bilateral pacts
Armenia won't be able to withstand this war for long - Azerbaijani economic expert
Azerbaijani Foreign Ministry disseminates info on Armenia’s missile attack on Barda
Private houses greatly damaged as result of shelling of Azerbaijan’s Barda (PHOTO/VIDEO)
Azerbaijani army liberates 4 cities, 4 settlements and 165 villages within 1 month
Ukraine says energy sector, transport among priorities in co-op with Georgia
Kakhetian Traditional Winemaking of Georgia reveals volume of its sales
Georgia sees increase in berry exports
Turkmenistan boosts import of defense products from Turkey
Turkey says Uzbekistan minimizes import of its defense products
Azerbaijan unveils local insurers' nine-month payments
Hungarian airline WizzAir to open base at Georgian Kutaisi Airport next summer
Georgia's energy program continues as Tsalenjikha city supplied with gas
Azerbaijan determines national gymnastics team for Euro cup in Ukraine
Turkey's data says Kyrgyzstan lowers import of its defense products
Azerbaijani Prosecutor General's Office reveals those killed due to Armenia's attack on Barda
Children killed and wounded as result of Armenian Armed Forces’ missile attack
Armenia used cluster Smerch missile against civilians in Barda - Assistant to Azerbaijani president
Russia rises import of Turkish defense products
Turkish, Russian FMs discuss situation in Nagorno-Karabakh region
Kazakhstan reduces imports of defense products from Turkey
Turkey reveals 9M2020 data on cargo shipment via its ports from Egypt
Export of defense products to Italy falls - Turkish Trade Ministry
Iran ready to talk over joint water management on border with Azerbaijan
Number of killed in Barda raised to four as result of Armenia's missile attack - Assistant to Azerbaijani president
Expo Georgia to host agro exports forum in Online B2B Format
Toddler among killed as result of Armenia's missile attack to Barda - Assistant to Azerbaijani President
Turkmenistan, Kazakhstan aim to expand co-op in railway transportation
Turkmenistan, Afghanistan committed to dev't of bilateral ties
Casualties of Armenian military equipment since outbreak of hostilities in Karabakh named (PHOTO)
Armed 'religion servants': Armenian Сhurch calling for war (PHOTO)
Armenia resorts to war crimes attacking Barda with reactive missiles - Assistant to Azerbaijani president
Bank mortgage lending in Azerbaijan grows multifold
Azerbaijan to use Armenian tanks against Armenia (PHOTO)
Price of apartments in Tehran rises
Armenian Armed Forces shelling Azerbaijan’s Goranboy, Tartar and Barda districts
Armenian Armed Forces fire missile at Azerbaijan’s Barda, 3 civilians killed (PHOTO)
Amount of transactions in national currency at Turkmen exchnage in September 2020
Kazakhstan’s government to expand work on attracting US companies to co-op
Uzbekistan sets up special program for incoming foreign tourists
Bank lending to Azerbaijani regions increases
Iranian deputy FM to visit Moscow to discuss situation related to Karabakh conflict
National Bank of Georgia takes another steps to stabilize lari exchange rate
Georgian "Same" tea to appear at stores from November
Uzbekistan expects to resume tourist flow in spring 2021
Iran say it would welcome US returning to nuclear deal
Nagorno-Karabakh belongs to Azerbaijan - Iranian cleric
Video footage shows elimination of "minister of defense" of so-called regime in occupied Nagorno-Karabakh region of Azerbaijan (VIDEO)
Food security remains priority for Iran
Kazakhstan's budget deficit forecast for 2020 unveiled
Agricultural lands in Iran to be equipped with modern irrigation systems
Harley profit beats as shipments rise from pandemic lows, costs fall
Azerbaijan unveils data on local insurers' fees for 9M2020
If Armenian leadership really wants peace, then let it begin to withdraw troops from occupied Azerbaijani territories - FM
Turkey's export of defense products to Israel downgrades
German-Georgian forum created to strengthen political, education, economic, cultural ties
Shelling of Euronews employees once again shows Armenia’s true face - Azerbaijani Foreign Ministry (VIDEO)
Armenians begin calling for resignation of prime minister
Bahar Azadi gold coin price again rising in Iran
Azerbaijan's military operation will go down in history of wars - Russian expert
Uzbek coal shipped to budgetary organizations ahead of schedule
LNG tanker spot rates seen rising, but not to 2019 level
Uzbekistan, Indonesia to implement joint projects in textile industry
Georgia reveals information regarding infrastructure works ongoing in Batumi International Airport
Iranian government continues measures to confront COVID-19
Suffering one defeat after another, Armenian separatists appoint new 'defense minister' (PHOTO)
US-based IT Company EPAM announces 14 vacancies in Georgia
SOFAZ talks distribution of investment portfolio by level of countries' economic dev't
Iran declares production data for agricultural products
Turkish Kayaturk Group company eyeing textile plant creation in Kazakhstan's capital city
Eni Turkmenistan Limited opens tender for provision of engineering, design services
Azerbaijan's State Oil Fund announces its 9M2020 revenues
WB, EU implement project for Financial Inclusion and Accountability in Georgia
Wounded Azerbaijani soldier didn't leave his comrades-in-arms alone (VIDEO)
Kazakhstan taking measures to increase e-commerce share in retail trade
Pro-Armenian persons call for terrorist attacks on strategic Azerbaijani oil, gas facilities - expert
All news