https://static.mk.ru/upload/entities/2020/07/09/20/articles/detailPicture/8d/67/c4/e4/e813834e28942a3d3f738dd35115539a.jpg

Over the past 15 years housing prices have risen by 186%. This is evidenced by the study of “AIF”. The authors on the figures proved that the rising cost of “communal” the pace is significantly ahead of inflation, which in July amid rising utility rates will accelerate twice – to 0.3-0.4%. Meanwhile tariff increase is not due to objective economic processes and with a banal desire to get citizens more money. The rates increase under pressure from the utility companies, which were in a difficult position, as the collection rate for the industry fell sharply because of the pandemic and reduce the income of people. However, even in this case shifting all the problems on the shoulders of citizens, and so have a hard time – not an option. People will simply cease to pay for the consumed resources. Experts told what disastrous consequences will lead to further tariff increases.

Ivan KAPUSTYASKY, a leading analyst of the Forex Optimum:

“Tariffs for utilities grow for a number of reasons. The main factor is the increase of taxes, excise duties on fuel. The government will not deter the rise of “communal” and all fuels, because the lion’s share of the budget formed at the expense of the energy sector. Recall that Russia’s budget by more than 30% dependent on oil revenues.

citizens rising housing prices means increase in the overall inflation and a significant decrease in net disposable income due to the fall of the economy. This is because any manufacturer, then the seller-the retailer includes the cost of the goods including the cost of utilities. Therefore, utilities along with fuel prices greatly affect the prices of a wide range of consumer goods.

the Overall situation in the economy will definitely lead to a drop in the level of income and a new phase of their recovery. After the last crisis, the incomes of the population began to grow only after five years after the fall. Talking about the period 2014-2019 year. However, increasingly, this situation will hit people who have high share of food and housing services in the consumer basket. Usually, in addition to fuel prices, are two categories of goods and services for which inflation is much higher than the average consumer price index”.

Pavel SIGAL, first Vice-President “Support of Russia”:

“the Real incomes of the population by the end of 2020 can be reduced by 8.2% in the baseline scenario, and 12.1 percent in the pessimistic. Without anti-crisis measures supporting the real disposable income of the population could collapse in the second quarter of 2020 to 21.8% in annual terms. However, the state of the population can reduce this fall by 3.8%. It is expected that 12.5% of Russians lose their jobs, as many of our citizens will get��be half of previous earnings.

In this situation, the growth of utility tariffs can be a serious burden for citizens, but for the maintenance of the housing sector and utility organizations may not be. For now, all companies and organizations related to the supply of resources, there are difficulties. However, it is hoped that the government will take some measures so that prices grew much.”

Natalia CHERNYSHEVA, Director of “national control”:

“the Current increase in tariffs from 1 July 2020 – was an extremely late decision, and it had either to be postponed until better times, or to make the budget.

people’s Incomes continue to fall, as many companies cannot cope with the consequences of a period of self-isolation. Based on this, people, it will be harder to pay for utilities, and the increase in tariffs even in an average rate of 4% will be for many a very heavy amount. And if you repay earlier temporarily cancelled in some regions, the contributions for the repair, many people do refuse payment, especially since the penalties and disconnection for nonpayment canceled before January 1, 2021.

This will lead to even greater reduction in collection rates in the long term to a possible collapse of the entire housing industry, if not as soon as possible necessary measures will be taken. First of all, providing massive subsidies to citizens and targeted subsidies resource-supplying companies as well as auditing the utility rates, so we know how many services are in reality. It may be as a result of the audit (and, most likely, will be) that the fares should not increase, and reduce”.

Previous articleRussia on the ruins of the tandem
Next articlePolitical history of vodka: how pilos in the USSR
Jennifer Alvarez is an investigative journalist and is a correspondent for European Union. She is based in Zurich in Switzerland and her field of work include covering human rights violations which take place in the various countries in and outside Europe. She also reports about the political situation in European Union. She has worked with some reputed companies in Europe and is currently contributing to USA News as a freelance journalist. As someone who has a Masters’ degree in Human Rights she also delivers lectures on Intercultural Management to students of Human Rights. She is also an authority on the Arab world politics and their diversity.