Page 43 - RusRPTMay20

in April-June after companies cut salaries and sacked workers as the lockdown measures were introduced.
Surveys have showed that almost a ​third of Russian companies forced their employees to take unpaid leave​ on the first week of the lockdown. Should they lose their jobs, ​42% of Russians would only have enough savings to last for one month​ without resorting to consumer and other loans.
In the ​second anti-crisis support package​ the President Vladimir Putin proposed a number of additional measures aimed at relieving SMEs that are expected to have the most troubles in keeping their staff on board.
As of May 18 the companies that have kept at least 90% of their staff will be able to receive support of one minimal wage per each employee. The president has also extended the RUB150bn programme of discounted "salary loans" that are aimed at financing the cash flow breaks and maintaining salary payments. State development bank VEB.RF (former Vnesheconombank) will run the programme that could require an additional RUB130bn.
The analysts mostly saw the additional measures announced by Putin as too little and too late, noting that only a small fraction of SMEs will be able to maintain 90% of their staff throughout the crisis to be able to benefit from modest support. Few businesses will be able to afford loans to streamline their cash flows after the lockdown measures expire.
Wages increased the most (in nominal terms) in tobacco manufacturing (+35.7% y/y),​ postal & courier activities (+19.1% y/y) and financial activities (+13.4% y/y), whereas the laggards were coal mining (+2.3% y/y), petroleum coke manufacturing (+3.2% y/y), chemicals (+2.1% y/y) and freight railway transportation (+0.9% y/y).
Real salaries and wages of Russians may drop by 12% in 2020 and the unemployment level may grow to 12.1%, ​the Center for Strategic Research (CSR) said in a weekly report in April. The growth rate of actual salaries and wages may be negative in 2020 and total minus 12%; the average salary may
43​ RUSSIA Country Report​ May 2020 ​ ​www.intellinews.com