Expats in Russia

Main article: Labor market in Russia

2023

The number of labor migrants is 3.5 million, which is almost 1 million less than in 2019

The migration influx of labor into Russia after 2022 was never able to recover to the dock level, according to a study by the RANEPA. In 2023, the number of foreign labor migrants in the Russian labor market amounted to about 3.5 million people, which is almost 1 million lower than the pre-pandemic indicator of 2019. The main sources of foreign workers in Russia are Uzbekistan, Tajikistan and Kyrgyzstan.

More than half of all foreigners registered for migration in order to "work" (55-60%) come to work in Moscow, St. Petersburg and their regions.

At the same time, as the corresponding member of the Russian Academy of Sciences Rostislav Kapelyushnikov emphasizes, foreign labor remains the only real reserve for the Russian labor market - all others, for example, pensioners, have already exhausted themselves.

Moscow has formed an effective system for administering labor patents

An effective system for administering labor patents has been formed in the capital, which provides a transparent and legal process for the employment and work of foreign citizens, on May 12, 2023, said Maria Vasilevskaya, deputy head of the Department of Economic Policy and Development of Moscow, which is part of the Complex of Economic Policy and Property and Land Relations.

Patents for employment in Russia for citizens of countries such as Uzbekistan, Tajikistan, Azerbaijan and Moldova entering Russia on a visa-free basis were introduced in 2015.

"The system of labor patents allows foreign citizens to independently fulfill their duties to comply with migration legislation and ensures the legality of their stay and work in Russia. For eight years, 3.9 million labor patents were issued in Moscow, the total amount of personal income tax revenues from foreigners to the city budget exceeded 152 billion rubles. During these years, with the exception of pandemic 2020, receipts showed an annual increase, which confirms the effectiveness of the patent system, "said Maria Vasilevskaya.

Moscow has implemented a convenient mechanism for issuing and extending a patent and all the necessary documents at one point - the Multifunctional Migration Center (MMC). Foreigners are provided with a full range of services in the "one window" mode - from applying to a medical examination and passing the exam for knowledge of the Russian language. Efficiency is achieved thanks to the use of modern technologies: pre-registration for filing documents, electronic queue, integration of information systems, informing about the status of patent registration, receipt with a QR code for payment. You can pay for the patent through your personal account on the MMC portal or using a mobile application.

Since October 2021, the center has been issuing patents for labor activities for foreigners working in the Moscow region.

No less important is the work of administering patents after foreign citizens have received them. The migration center monitors the payment of advance payments by employees under the patent, carries out SMS informing about the debt, receiving citizens on the problems of accounting for payments. Together with the Main Directorate of the Ministry of Internal Affairs of Russia in Moscow, preventive measures are being taken to ensure compliance by employers and foreign citizens with migration, labor and tax laws.

2022

The Ministry of Internal Affairs counted 6 million foreigners in Russia

On November 24, 2022, Valentina Kazakova, head of the Main Directorate for Migration of the Ministry of Internal Affairs of Russia, announced that there are about 6 million foreigners in the Russian Federation, half of whom are labor migrants, 400 thousand are students, about 750 thousand people are temporary and permanently residing foreign citizens.

According to representatives of the Ministry of Internal Affairs, since the beginning of 2022, about 660,000 cases of fictitious registration of foreigners have been recorded, they have been deregistered, and criminal cases have been initiated on the facts of offenses. The number of fictitious marriage registrations was 220, Kazakova added.

6 million foreigners counted in Russia

He also recalled that persons who acquired Russian citizenship may lose it when committing terrorist or extremist crimes. However, now this list may become wider.

These crimes are expanded in the field of public security, external security, and the country's defense capability. And among other things, the deputies proposed to cancel the decision to acquire citizenship on the basis of discrediting the armed forces of the Russian Federation, the use of the armed forces, - said Valentina Kazakova at the end of November 2022 (quoted by Interfax).

On November 16, 2022, Russian Interior Minister Vladimir Kolokoltsev also announced that about 9 million foreign citizens were in the country, and, according to him, 9% of them have no legal basis for this. For comparison, in 2016, it was almost every third migrant, Kolokoltsev noted.

According to him, despite tangible positive changes, high risks in this area remain, including due to the unstable situation in the post-Soviet space and the Middle East.

In this regard, we will strengthen control. After the pandemic break, verification measures were resumed, this year 225 thousand of them were held, - said the minister.^[1]

Foreigners can pay a patent for work on Public services

On November 2, 2022, the Ministry of Digital Development announced that foreign citizens working in Russia could pay for a patent to work for the Public services. Read more here.

3.12 million migrants came to Russia to work in the second quarter

About 3.12 million migrants came to Russia to earn money in the second quarter of 2022, which is a third more than last year's figure and is a record quarterly value for at least the last 6 years. Most migrants come to Russia from Uzbekistan (49.6%) and Tajikistan (30.5%).

2021: Significant shortage of foreign labor due to coronavirus pandemic

Two-thirds (67%) of companies note that 2021 has become a turning point in terms of hiring - the pandemic and digitalization entailed the emergence of new regulations directly related to the selection of personnel and in relation to the staff itself. UTEAM announced this on December 28, 2021.

67% of companies that took part in the survey noted that the shortage of foreign labor became extremely significant for them in 2021. First of all, these are companies from the construction sector. The pandemic provoked the closure of borders back in 2020, and the number of foreigners coming to the Russian Federation for the purpose of earning money has decreased significantly. In 2021, employers expected an improvement in the situation, as restrictions became softer, and the number of flights between Russia and neighboring countries increased. However, this was not enough - the flow of migrants did not recover to the pre-pandemic level, in addition, new factors intervened. Read more here.

2011:40% increase in the inflow of qualified foreign specialists

According to the Federal Migration Service, more expats enter Russia every year: in 2011, compared to 2010, the influx of qualified foreign specialists increased by 40%, and permits for work in a simplified manner were issued to such persons 3.5 times more than in 2010.

Also, Russia, according to a study by HSBC, continues to be one of the five most attractive countries for expats^[2]

Click to enlarge

The most famous top managers-expats in Russia in 2011:

• Renaissance Bands - Stephen Jennings

• VTB - Chaba Zentai (Head of the Regional Network Department - Senior Vice President of the Bank), Gurinder Nihal (Senior Vice President, Head of the VTB Transactional Business Department);

• Alfa Bank Andrew Baxter (Chief Financial Officer);

• Promsvyazbank Neil Wiesers (Head of Investor Relations);

• Rosbank Marc-Emmanuel Vives (First Deputy Chairman of the Board), Juan Carlos Albizzati (Deputy Chairman of the Board);

• Home Credit Bank Svitek Ivan (Chairman of the Board);

• OTP Bank Tamash Kamarashi (Deputy Chairman of the Management Board);

• "Opening Capital" Thomas Mundy (chief strategist);

• Troika Dialogue Phillip Jordan (Head of Structural Products), Chris Weifer (Chief Strategist);

• IG "ATON" Peter Westin (chief analyst on macroeconomics);

• ROSNO Hannes Shariputra Chopra (CEO), Håkan Danielsson (President), Christian Sebastian Müller (Deputy CEO/Director for Financial Administration);

• AVTOVAZ Francois Gerard (Vice President, Products and Programs), Felten Pascal Paul Gilles (Quality Director);

• GAZ Group Siegfried Wolf (Chairman of the Board of Directors), Bu Inge Andersson (GAZ Group President/Member of the Board of Directors of GAZ);

• Polyus Gold James Newvenhuis (COO);

• INTER RAO UES Dangiras Mikalayunas (Head of the Company's Representative Office);

• NOVATEK Mark Jetway (Deputy Chairman of the Company's Management Board);

• TNK-BP Jonathan Muir (Chief Financial Officer), Alexander Dods (Executive Vice President, Upstream), Francis Sommer (Senior Vice President, Manufacturing and Technology), Didier Bodrand (Executive Vice President, Refining and Trade, Executive Director);

• Rosneft Lawrence Bates (Business Development Advisor/Vice President);

• Rosinter (Planet Sushi, Il Patio brands) Hugh Joseph Carroll (chairman of the board), Joseph Heilner (senior vice president of marketing and sales);

• VimpelCom Martin Furuset (Executive Vice President of Corporate Strategy), Kjersti Wicklund (Vice President of Operational Support).

Notes