{"id":41562,"date":"2022-04-06T09:57:22","date_gmt":"2022-04-06T07:57:22","guid":{"rendered":"https:\/\/novastan.org\/en\/?p=41562"},"modified":"2023-03-30T17:17:15","modified_gmt":"2023-03-30T15:17:15","slug":"effects-of-sanctions-on-russia-strongly-felt-in-dushanbe","status":"publish","type":"post","link":"https:\/\/novastan.org\/en\/tajikistan\/effects-of-sanctions-on-russia-strongly-felt-in-dushanbe\/","title":{"rendered":"Effects of Sanctions on Russia strongly felt in Dushanbe"},"content":{"rendered":"\n<p><strong>The effects of sanctions against Russia are being strongly felt in Tajikistan. The Central Asian post-Soviet republic\u2019s economy has been stagnant for years and many had left to find work in Russia. The instability in reaction to Russia\u2019s activities in Ukraine is affecting almost every aspect of daily life.<\/strong>\n\nIn Dushanbe, Tajikistan\u2019s capital city, life is getting expensive. As American media <a href=\"https:\/\/eurasianet.org\/tidal-wave-of-austerity-crashing-against-tajikistan-as-russian-economy-nears-precipice\">Eurasianet<\/a> remarks, Tajikistan is highly dependent on Russia economically, and many families count on <a href=\"https:\/\/eurasianet.org\/tajik-labor-migration-to-russia-hits-historic-high-officially#:~:text=Between%20January%20and%20September%202021,Tajik%20citizens%20received%20Russian%20citizenship.\">remittances<\/a> from relatives working there. According to <a href=\"https:\/\/data.worldbank.org\/indicator\/BX.TRF.PWKR.DT.GD.ZS?locations=TJ\">World Bank data<\/a>, remittances consisted of 26.7 % of Tajikistan&#8217;s gross domestic product (GDP) in 2020, which makes it the third most dependent country in the world.\n\nWith the increasing <a href=\"https:\/\/www.bbc.com\/news\/world-europe-60125659\">sanctions<\/a> being placed on Russia following the on-going <a href=\"https:\/\/www.theguardian.com\/world\/2022\/mar\/24\/russia-ukraine-war-what-we-know-on-day-29-of-the-invasion\">conflict in Ukraine<\/a>, and the subsequent <a href=\"https:\/\/www.reuters.com\/business\/euro-slides-war-ukraine-stokes-inflationary-shock-2022-03-07\/\">boast to the dollar<\/a>, almost everything has become more expensive in the past weeks.&nbsp;Feruza, a teacher working at a private university, spoke to Novastan of the impact the changing dollar price has had on her family. \u201c<em>I had to pay the fees for my son\u2019s school a few days ago. Now the <\/em><a href=\"https:\/\/en.wikipedia.org\/wiki\/Tajikistani_somoni\"><em>somoni<\/em><\/a><em> is so weak against the dollar; it\u2019s like I\u2019m paying an extra 100 dollars in the previous rate<\/em>\u201d<em>,&nbsp;<\/em>she explains.\n\n<\/p>\n\n\n\t\t\t<div class=\"hp-newsletter col-span-3 lg:col-span-1 flex flex-col bg-primary-100 border-t-8 border-secondary-500 rounded-lg justify-center items-center lg:items-stretch px-6 py-6 gap-4 box-border\">\n\t\t\t<div class=\"flex\">\n\t\t\t\t<div class=\"enveloppe\">\n\t\t\t\t\t<i class=\"far fa-envelope text-5xl text-secondary-300\"><\/i>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"formulaire_nl\">\n\t\t\t\t\t<p>\n\t\t\t\t\t\t<span class=\"font-bold text-xl block\">The whole of Central Asia in your inbox\n<\/span>\n\t\t\t\t\t\tSubscribe to our free weekly newsletter\n\t\t\t\t\t<\/p>\n\t\t\t\t\t<form class=\"flex w-3\/4 lg:w-full\" action=\"https:\/\/us4.list-manage.com\/subscribe?u=6a15a2256d412b041fdec39e8&amp;id=d479236523\" method=\"post\" id=\"mc-embedded-subscribe-form\" name=\"mc-embedded-subscribe-form\" class=\"validate\" target=\"_blank\" novalidate=\"\">\n\t\t\t\t\t\t<input class=\"flex-grow py-2 px-3 border border-primary-300 rounded-l\" type=\"email\" placeholder=\"Email\" name=\"EMAIL\" id=\"mce-EMAIL\">\n\t\t\t\t\t\t<button class=\"bg-secondary-500 py-2 px-3 text-white rounded-r-md border border-secondary-500\" type=\"submit\" value=\"\" name=\"subscribe\">Register<\/button>\n\t\t\t\t\t<\/form>\n\n\t\t\t\t\t<a href=\"#\" class=\"underline text-secondary-700\">Click here for the latest issue\n<\/a>\n\t\t\t\t<\/div>\t\n\t\t\t<\/div>\n\t\t<\/div><!-- newsletter -->\n\t\t\n\n\n\n<p>\n\nThe fees for international schools can generally be paid in dollars or somoni, but the price is, like most expenses, set by the dollar. \u201c<em>I wanted to pay in dollars but when I went to the bank, they told me that they are not allowed to pay out dollars. I explained it was to pay for my son\u2019s school fees but they said, \u2018No, we can only give you dollars with permission from the bank manager, and only if your account is in dollars.\u2019 There were others there with a similar problem&#8221;<\/em>, describes Feruza.\n<\/p>\n\n\n\n<h5 class=\"wp-block-heading\"><strong>Sending money home becomes more expensive<\/strong><\/h5>\n\n\n\n<p>\nGenerally, people often opt to exchange money on the <a href=\"https:\/\/www.rferl.org\/a\/tajikistan-cracks-down-on-currency-exchanges\/27512602.html\">black market<\/a>, rather than go to the bank. \u201c<em>You can find a better rate if you shop around, but it\u2019s very dangerous<\/em>,\u201d Nagina, an office worker from <a href=\"https:\/\/en.wikipedia.org\/wiki\/Gorno-Badakhshan_Autonomous_Region\">Gorno-Badakhshan<\/a>, in eastern Tajikistan, explained to Novastan. \u201c<em>My children are living in Moscow and we don\u2019t usually need them to send money home. But if it\u2019s needed, right now it is better to find someone travelling from Russia to Tajikistan, rather than using the bank<\/em>\u201d<em>,&nbsp;<\/em>she says.\n\nWhen payments are sent from Russia, they are paid in ruble and received in somoni. Due to the ruble\u2019s <a href=\"https:\/\/www.cbsnews.com\/news\/russia-ukraine-ruble-sanctions\/\">depreciation<\/a> following the sanctions, people working in Russia need to pay extra to reflect the changing price and secure the needed amount of somoni. It is therefore easier and more cost-effective to send dollars in cash with someone making the journey.\n\nThis current instability is nothing new, as Nagina highlights. \u201c<em>We are experienced. During the financial crisis, it was the same so we know how to prepare. We buy food to store, things like oil or flour which last for a long time. We don\u2019t know when the prices will change again, so we have to be prepared<\/em>\u201d<em>,&nbsp;<\/em>she describes.\n\nFood insecurity is already a major issue in Tajikistan with up to 27 % of the population living on 1.90 dollars (\u00a31.44) or less per day, according to <a href=\"https:\/\/www.usaid.gov\/tajikistan\/agriculture-and-food-security#:~:text=Tajikistan%20is%20highly%20vulnerable%20to,million%20are%20severely%20food%20insecure.\">USAID<\/a>. While many families received a one-time payment of 500 somoni (\u00a329.16) during the Covid-19 pandemic, it is yet to be announced how the Tajik government will respond to current price hikes.\n<\/p>\n\n\n\n<h5 class=\"wp-block-heading\"><strong>Prices heavily rely on the dollar<\/strong><\/h5>\n\n\n\n<p>\n\u201c<em>For me, it has affected my day-to-day costs of course, and my business a little<\/em>,\u201d import-middleman Alisher explained to Novastan. \u201c<em>People are shopping less. For example, see this iPhone case. Before it was maybe 10 somoni (<\/em><em>\u00a3<\/em><em>0.58), now it\u2019s 16 (<\/em><em>\u00a3<\/em><em>0.93)<\/em>\u201d, he says.\n\nAround the capital, businesses have increased their prices to reflect the new cost of living. A small portion of <a href=\"https:\/\/en.wikipedia.org\/wiki\/Pilaf\">oshi pilau<\/a>, Tajikistan\u2019s national dish, typically cost 16 somoni (\u00a30.93) but has risen to as high as 20 somoni (\u00a31.16). Most significantly, the price of petrol from the Russian supplier <a href=\"https:\/\/en.wikipedia.org\/wiki\/Gazprom\">Gazprom<\/a> has risen from 10.30 somoni (\u00a30.60 per litre) to 12 somoni (\u00a30.70).\n\n\u201c<em>Everything here is connected to the price of the dollar<\/em>,\u201d Alisher concluded. \u201c<em>The dollar is everything in Tajikistan<\/em>.\u201d\n<\/p>\n\n\n\n<p class=\"has-text-align-right\"><strong>Fiona Katherine Smith\nEditor and writer for Novastan in Dushanbe<\/strong>\n<p><em>For more news and analysis from Central Asia, follow us on <a href=\"http:\/\/twitter.com\/Novastan_Eng\">Twitter<\/a>, <a href=\"https:\/\/www.facebook.com\/Novastan.org\/\">Facebook<\/a>, <a href=\"https:\/\/telegram.me\/novastan\">Telegram<\/a>, <a href=\"https:\/\/www.linkedin.com\/company\/fondation-novastan\/\">Linkedin<\/a> or <a href=\"https:\/\/www.instagram.com\/novastanorg\/\">Instagram<\/a>.<\/em><\/p><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The effects of sanctions against Russia are being strongly felt in Tajikistan. The Central Asian post-Soviet republic\u2019s economy has been stagnant for years and many had left to find work in Russia. The instability in reaction to Russia\u2019s activities in Ukraine is affecting almost every aspect of daily life. In Dushanbe, Tajikistan\u2019s capital city, life [&hellip;]<\/p>\n","protected":false},"author":1393,"featured_media":41564,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[6],"tags":[4033,3999,4128,4540,3982,2728,3520,3979,4541],"coauthors":[4414],"class_list":["post-41562","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-tajikistan","tag-dushanbe","tag-economics","tag-economy","tag-remittances","tag-russia","tag-sanctions","tag-somoni","tag-tajikistan","tag-war-in-ukraine"],"acf":[],"_links":{"self":[{"href":"https:\/\/novastan.org\/en\/wp-json\/wp\/v2\/posts\/41562","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/novastan.org\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/novastan.org\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/novastan.org\/en\/wp-json\/wp\/v2\/users\/1393"}],"replies":[{"embeddable":true,"href":"https:\/\/novastan.org\/en\/wp-json\/wp\/v2\/comments?post=41562"}],"version-history":[{"count":1,"href":"https:\/\/novastan.org\/en\/wp-json\/wp\/v2\/posts\/41562\/revisions"}],"predecessor-version":[{"id":43556,"href":"https:\/\/novastan.org\/en\/wp-json\/wp\/v2\/posts\/41562\/revisions\/43556"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/novastan.org\/en\/wp-json\/wp\/v2\/media\/41564"}],"wp:attachment":[{"href":"https:\/\/novastan.org\/en\/wp-json\/wp\/v2\/media?parent=41562"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/novastan.org\/en\/wp-json\/wp\/v2\/categories?post=41562"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/novastan.org\/en\/wp-json\/wp\/v2\/tags?post=41562"},{"taxonomy":"author","embeddable":true,"href":"https:\/\/novastan.org\/en\/wp-json\/wp\/v2\/coauthors?post=41562"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}