Prices for food and non-food products in the Crimea has reached the level of Moscow and St. Petersburg, and salaries are twice lower than those in major cities. Experts explain the problem of transport isolation of the Crimea and the greed of local merchants who believe in the holiday region “should always be expensive”. The inhabitants of the Peninsula waiting for the bridge, with construction in 2018, the price must go down. In the growth of wages especially no hopes.
As follows from the data of Rosstat, the prices of most commodities in the Crimea correspond to the prices in Moscow and St. Petersburg, and in some cases surpass them. For example, the average cost of a kilogram of potatoes on the Peninsula (25.6 ruble, or 0.4 per dollar) is 32% higher than in the Russian capital, and bananas 23% higher (80 rubles, 1.3 dollars), than in Moscow. Moscow match prices on dairy products (84 per ruble, to $ 1.3), particularly yogurt (24 rubles, or 0.4 dollarsa 125 grams) curd cheese (20 rubles, or 0.3 dollarsa 50 grams), and low-fat cottage cheese (318 rubles, 5.1 cents a pound) even 5% more than in Moscow, and on 18% more expensive than in Russia as a whole.
Close to the Moscow prices of almost all products in the Crimea — coffee, tea, garlic, lemons, cucumbers and frozen vegetables. Many products, however, are cheaper, than in Moscow, but the price is still higher than the Russian and, in particular, higher than in St. Petersburg, the second largest city after the capital.
The average cost of lunch in the Crimean restaurant 1140 rubles (18.4 USD) per person. In Moscow — 987 rubles (15,8 dollar) in St Petersburg — 881 (14.2 per dollar), but in General in Russia — 778 (12.4 dollar). Moreover, these figures are calculated at the end of September, i.e. at the end of the tourist season in the Crimea, during which because of the influx of visitors to cafes and restaurants traditionally prices rise. Special attention deserve the price of the wine produced in the Crimea. A litre of local wine costs 464 rubles (7,5$), while a liter of Russian wine imported from other regions to Moscow is 379 rubles (6.1 per dollar), and in Petersburg — 294 (4,7 dollar).
In Crimea, besides the most expensive gasoline in the whole of Russia. Liter of AI-95 (the most common form of fuel) is 41.8 ruble (0.67 dollar), while in Moscow and St. Petersburg, the price is 38.3-38.9 rubles. The same goes for diesel fuel, which in the Crimea for 2 rubles more than in these two cities (37.8 ruble, 0.61 dollar).
The only thing that is not expensive in the Crimea, is the public transport. A trip to a state or commercial bus is traditionally about 13 rubles ($0,2), while in Moscow and St. Petersburg prices reach 30-40 rubles (about 0.5-0.6 dollar). Enterprise of public transport of the Crimea still alive only because the local government will reimburse their expenses (for this model runs most public transport companies in Russia).
As explained EurasiaNet.org Vice-President of the chamber of Commerce of Crimea Andrew Serguchev, high prices on the Peninsula due to several reasons. First, he says, plays an important role of the transport isolation of the Peninsula. Aviation and Maritime transport, which is here deliver the goods, very expensive, and rail and road transport is tied to the ferry across the Kerch Strait, which increases the cost of delivery. And if in one case the cost of delivery of goods from mainland Russia may reach 10% of its cost, the other is almost 100%.
“Recently in Crimea were carrying construction materials — steel pipe from Nizhny Novgorod. I have personally talked to businessmen, they say that the shipping cost is crazy. Shipping one truck from point to point — 120 thousand rubles (about 1.9 thousand dollars), and in it of the goods at 150-200 thousand (2,4-3,2 thousand dollars), Imagine how much it will cost here we have this pipe?” said Serguchev.
Second, local people from the Soviet era, there was a mentality vision of Crimea as a resort area, where summer all year round. “Like, in the resort everything always have to be expensive. So they keep the prices sometimes 3-4 times higher procurement”, — he explained.
Finally, the third reason is that local producers find it difficult to enter the Russian market with their goods. “They are on the mainland no waiting, explained Serguchev. — All niches are occupied, nobody wants to concede. Therefore, producers in Crimea are closed in the Peninsula and stew in their own juice”.
Despite the fact that prices in the Crimea in General are the same as in Moscow and St. Petersburg, salaries in the Peninsula is twice lower. Officially, the average wage in the Crimea is 24 763 thousand rubles a month ($398), but in fact people in low positions (sellers, cashiers, workers), especially away from Simferopol and Sevastopol receive 15-20 thousand rubles (241-322 dollars). The lowest wages of those who are engaged in fish farming 11.8 per thousand. Teachers in schools receive 16,4 thousand, health workers — 23.5 thousand. About those who earns 30 million, saying they have “a good salary”.
However, in the largest Russian cities, whose inhabitants have long been howling from lack of money, salaries are much higher. In St. Petersburg the average monthly earnings — 48 of 483 thousand rubles ($780), in Moscow — 67 092 thousand (1 thousand $ 80).
As reported EurasiaNet.org in the company of HeadHunter (a site for posting resumes and vacancies), the average salary in the Crimea in the third quarter of 2016 amounted to 30 thousand rubles (483 dollars), although the majority of seekers are looking for work for 40 thousand. Young specialists, on average offer 25 thousand senior management — 65K. “Most employees are looking for companies of retail trade (17%), businesses of food (10%), companies engaged in information technology (8%), hotel and restaurant sector (8%) and areas of non-food consumer goods (6%),” according to the company, studying the job.
A resident of Sevastopol Andrey Medvedev owns a store of flashlights on the car “Fiolentovskoe”, lives with his family in a three room apartment on the outskirts of the city. “Today, revenues amounted to 700 rubles, of which my income was 350 rubles. Yesterday net income amounted to 1 thousand rubles, but it’s still minuscule. The financial situation of Crimean — miserable. The trade shows that buying the cheapest product. Virtually no sales. If I had no ties with a person who has great momentum, I would have already closed. People with big money still somehow able to survive, but entrepreneurs with little money will be closed,” he said.
In terms of dollars, in the Ukraine, the store Bears brought 2 thousand dollars net profit a month, in this case, the product invested 10 thousand dollars. “Now the product invested 25 thousand dolarov, and the profit per month — a maximum of 1 thousand dollars”, — said the businessman. According to him, to feel just like three years ago in the Ukraine, one worker needs to receive about 60 thousand rubles per month ($966), but in fact almost none of the inhabitants of the Crimea can boast such a salary.
In addition to the crisis that came to the Crimea from Russia, came to the Peninsula to the Russian tax features. For example, residents of the Crimea was the burden of vehicle tax, which in the Ukraine was included in the cost of gasoline. In addition, local residents now have to pay a monthly fee for the capital repair of the house (fee introduced in Russia in 2012). In the case of a small Studio apartment area of 30 square meters is 530 rubles (8.5 USD) per month. Also in the Crimea from 2017 will be a tax on property, including the apartment (in the Ukraine were the only tax on land).
Many businesses have stopped working in Crimea almost immediately after the annexation to Russia. Among them was Oleg Sikorski, who owned real estate company REM Navigator (earned commissions from the sale of real estate). He said EurasiaNet.org with the joining of Crimea to Russia, Ukrainian banks have left and the Russian came in limited quantities, resulting in to make payments became impossible. Now in the Crimea, two of the largest local Bank, rnkb and GenBank and one from mainland Bank “Russia” friend of President Vladimir Putin, Yuri Kovalchuk. None of them carries out international settlements. In the Bank “Russia” in Crimea, it is impossible even to open the account in dollars. “We work only with the national currency”, — proudly said callers to the Bank correspondent.
“In addition, it became difficult to question the conduct of real estate transactions, as the Ukrainian registries were blocked, and the Russian work with great difficulty. For example, the state registry Committee, which registers the transactions for the past two and a half years was not able to organize normal activities. People are asked to join the queue, which will fit another two months,” — said Sikorski.
On top of that, Crimea’s economy is falling, incomes are reduced, and the locals lack the ability to buy property, said Sikorski. And foreign investors are scared to invest in the Crimean property in view of uncertainty of its legal status.
“Don’t work properly insurance companies, banking institutions, financial transfers are impossible on an international scale, improperly functioning legal system, a poorly organized work of notaries, and in this regard to carry out normal economic activity virtually impossible. So we left the market,” he said.
The last hope of the Crimean economic enlightenment — building a bridge across the Kerch Strait at an estimated cost of 228 billion rubles, which will connect the Peninsula with the Krasnodar territory of Russia. It builds the company “SGM”, owned by the former coach Vladimir Putin’s judo Arkady Rotenberg. It is expected that the bridge will open in 2018, and goods in Crimea will be traveling by truck and by rail, which is included in the bridge project.
According to the forecast of the Vice-President of the chamber of Commerce Andrew Sergucheva, with the construction of the bridge situation in the economy of the Crimea will change for the better. “Prices will fall,” he expressed confidence. On the question of how the locals live on a salary of 25 thousand rubles, he replied, “very bad.” “Okay, even when a young family, two parents, and every 25 thousand gets. That’s nothing. But it happens often that only one person in the family. And you have the money to distribute at all. In this case, very little work,” said Serguchev.
