Transition from Charity to Practical Approach

Lightening up the Labor Landscape: A Fresh perspective on Russia's Migration Scenario

The squeeze on the pool of labor forces in Russia has become a burning issue, courtesy of the tightening of international migration flows, following the COVID-19 pandemic outbreak. This topic, entwined with the humanitarian crisis, swiftly elevated its significance at the global scale. The economic necessities of Russia for overseas workers are frequently discussed at the highest echelons of power. However, the antiquated model that prevailed prior to the coronavirus outbreak is evidently outdated. Innovation and a people-friendly approach are urgent, as repeatedly emphasized by Vladimir Putin, the President of Russia. We caught up with Dmitry Ispechnikov, the chairman of the expert council of GK "Axioma" - a leading facilitator of services for foreign citizens in Russia.

Dmitry, as a representative of a company aiding foreign citizens with the legalization of their stay in Russia, you observe migration trends up close. How do you assess the situation? To what extent does our economy depend on non-resident workers, and how will this dependence change in the near future?

I'd say the landscape of the problem has evolved. It's not so much about dependency on foreign workers, but rather on globalization, a concept that thrives on human mobility. The establishment of an international labor market through a combination of workforce from neighboring countries is nothing unusual. It's a historical process. The concern lies in managing this process effectively, i.e., making the most of its benefits and timely improving the system. We collaborate with several prominent construction companies in Russia, and their demand for labor migrants continues to soar. At present, finding a genuine, not hypothetical, substitute for them seems impossible. Not to mention, the dynamics and magnitude of new development projects imply a rise in demand for labor in the industry.

On December 8, 2020, Vladimir Putin endorsed the latest law "On Amending..." into the aforementioned Federal Law, specifically Article 15.1. These alterations, along with other changes still under consideration, represent a step towards either tightening or loosening the immigration regime for foreign citizens in Russia.

Russia continues to be the primary magnet for migration flows in the post-Soviet region, but maintaining this status necessitates a balance between stringent border control and fueling Russia's attractiveness in the competition with China, Iran, and Turkey for labor resources.

The modifications to Article 15.1, which incorporate a comprehensive exam for foreign citizens seeking to reside and work in Russia, impose stringent criteria for authorized organizations. This refinement strengthens the evaluative framework for measuring the knowledge of potential labor force entrants, particularly within the Eurasian Economic Union (EAEU). In my view, the EAEU's expansion with the inclusion of Uzbekistan and Tajikistan is imminent, and a unified economic space should be based on a shared linguistic space.

Regarding other initiatives, it's high time to move away from a charitable stance in the migration sector towards a balanced, pragmatic approach. As a result, the legislature's primary objective is to improve the tracking of the inflow and outflow of foreign citizens. Consequently, the emphasis is on the deployment of digital solutions, the creation of specialized platforms, databases, and registries. This is not merely a pursuit of technological advancement, but tools for obtaining real-time information on migration trends. These insights will ultimately form the foundation for analysis, frequent adjustments of mechanisms, and in the future, serve as a foundation for the development of essential areas such as real Eurasian integration, enhancing national security, increasing tax revenues to the Russian budget from issued work permits, and improving the living conditions for foreign citizens in Russia.

Criticism of migration innovations persists simultaneously for both inadequate leniency towards foreign citizens and the introduction of excessive barriers. This reaction not only challenges the new but also confirms the balancing act. On one hand, bureaucratic excesses are eliminated, and, on the other, necessary adjustments are made. On the one hand, amendments were adopted in 2020 to the Federal Law "On the Legal Status of Foreign Citizens in the Russian Federation" that enable foreign citizens to repeatedly renew work permits without leaving Russia (Art. 13.3 No. 115-FZ), and those who own property in Russia can serve as the host party for foreign citizens (Art. 7.2 No. 115-FZ). On the other hand, a bill on mandatory fingerprinting for labor migrants, including those from the EAEU, within 30 days of arrival, passed its first reading in the State Duma in March of this year.

*When, in your estimation, will these innovations be put into effect?
Timing depends on the resources allocated for their implementation. These changes indeed place an extra burden on the Russian Ministry of Internal Affairs, responsible for maintaining order in the migration sphere. Consequently, there is room for collaboration between the relevant departments of the ministry and large private companies with the necessary material and technical resources.
*Doesn't the state aim to lessen the involvement of private companies in migration processes?
Not precisely. The legislative changes are aimed at weeding out unscrupulous operators from the market for migration services who hinder the execution of state directives. For instance, those who conduct comprehensive exams for foreign citizens on the Russian language, history of Russia, and Russian Federation legislation, without the necessary competence or any link to educational activities. The arbitrary issuance of certificates of exam completion results in a variety of problems, such as the encouragement of illegal migration and a decline in the reputation of the Russian education system. These loopholes will be closed.
*Am I correct in understanding that higher quality standards have been set for private migration service providers?** Standards remain the same, only the underhanded tactics for unfair competition will decrease. A free market does not always favor the best, and today conditions are being created for responsible companies with substantial experience to operate, which are able and willing to invest in studying and simplifying migration processes. Such participants contribute to the consistent implementation of state policy. There will be no room for temporary opportunists profiting illegally. However, this might be optimistic.

Is your company prepared for changes? What's the main gamble?

As I mentioned, progressive businesses in the migration services market always use analysis and innovation. In 2020, when the state decided to develop structured immigration channels for overseas workers to support large-scale construction projects in Russia, most operators bowed out, while Axiooma Group jumped in.

This situation offered a significant challenge, and as we studied crisis logistics, three priorities for our company's development became clear: close partnerships with leading Russian universities authorized to conduct state exams; expansion of our regional network of branches; and our own developments to streamline migration processes.

Does the 2020 experience rely on the company's participation in developing the targeted transfer mechanism? Please provide more details.** The targeted transfer allowed large construction companies to hire foreign workers during the lockdown. This mechanism involves the collective entry of foreign workers, their mandatory two-week self-isolation, medical examination, and the preparation of a package of permits during their stay in so-called observation facilities. Afterwards, non-residents are sent to construction sites with shift work. On our part, we ensure that arriving teams take comprehensive exams, resolving all organizational and technical nuances.

According to company statistics, the number of queries related to work permit applications at the boundary of the II and III quarters of 2020 did not exceed one-third of all inquiries from foreign citizens. However, the percentage of targeted transfers in this category of queries was steadily increasing. By the end of September 2020, with the participation of GK "Axioma", authorized Russian universities issued more than 10,000 state certificates for passing a comprehensive exam, with 38% going to labor migrants from Uzbekistan. Further, given the maintenance of the overall dynamics of foreign citizens' inquiries within the range of 10-12 thousand per month, the share of queries related to labor migration stabilized at over 40%.

The targeted transfer played a special role in the Amur and Murmansk regions, where large construction companies are implementing strategic infrastructure projects. In August 2020, with our company's cooperation, the first large group of 264 Uzbek citizens (quarantine in Murmansk) received state certificates for passing a comprehensive exam, followed by 332 in September (quarantine in Blagoveshchensk), 455 in October (quarantine in Blagoveshchensk) and 391 in November (quarantine in Murmansk), and 505 in December (quarantine in Blagoveshchensk).

Is this experience still applicable today?
It serves as a foundation. By improving our interaction with Russian universities through a specially created department, and by setting up testers, system administrators, and document processing specialists, GK "Axioma" started implementing our model in regions with a high demand for foreign workers. Our branch offices opened in Ekaterinburg, Novosibirsk, and Rostov-on-Don. In the first half of 2021 alone, we expanded our network by opening branch offices in St. Petersburg, Tobolsk, Khanty-Mansiysk, Vladimir, Kaliningrad, Nizhnevartovsk, Nizhny Novgorod, and Surgut.

The IT development department of our company is actively involved in developing a software product using blockchain technology for data security and integrity. Our research has shown that the main challenge in the process of foreign workers entering Russia is their identification. Often, a single transfer unites a team of non-residents for several Russian companies, causing confusion upon arrival. Our program helps to eliminate these complexities by creating a distributed registry of foreign citizens' data, including information about the employing company. The program is also used in conducting comprehensive exams, simplifying the process of preparing and submitting related documents.

Moreover, we maintain close contact with our corporate clients. We understand that they are not always promptly informed about changes in Russian migration legislation. Consequently, our specialists provide consultations on hiring and legalizing foreign workers, and based on this, we develop a comprehensive service.

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All news in the "Interviews" section

Dmitry Ispechnikov, when discussing the dependency of Russia's economy on non-resident workers, emphasized that it's not so much about foreign workers, but rather on globalization and human mobility, which are catalysts for the establishment of an international labor market.
In the context of education and self-development, Dmitry mentioned the significance of digital solutions and the creation of specialized platforms, databases, and registries, aimed at obtaining real-time information on migration trends. These tools will serve as a foundation for the development of essential areas such as real Eurasian integration, enhancing national security, and improving the living conditions for foreign citizens in Russia.