This is the first editorial in this week's issue of the Sakhalin Times

The very need for international humanitarian assistance for residents of an area that is so close to oil-rich Sakhalin has to be a source of great embarrassment for the Russian Government, which is trying to position the country as a world power again.

The fact is that the residents of the Southern Kurils are among the poorest people in all of Russia. There has been minimal development in these islands in the last six decades. Power cuts are even more common there than they are in Sakhalin. To add insult to injury, Yuzhno-Kurilsk welcomed the New Year in complete darkness. Although the Federal Government is trying to revive life into these islands through a new developmental programme, many islanders can’t afford the bare necessities of life at the moment.

Kuril Islanders were severely affected by the Russian Government’s monetisation of benefits in 2005. Many pensioners have complained that they are unable to buy basic medicines even if they can afford them, largely because of unavailability. Under these circumstances, it’s a shame that the customs has been holding up a container with food and medicines meant for the Southern Kurils, since December 21. Since the container has been sent on humanitarian grounds, the Russian Government needs to waive any duties on the same humanitarian grounds.

It’s even more shocking that the so-called Liberal Democratic Party of Russia (LPDR) is demanding that the government should not waive the duties. The party sees the aid as some sort of Japanese conspiracy to strengthen their claim on the Southern Kurils. This couldn’t be farther from the truth. Many former residents of the Southern Kurils have visited their old homes under the Hokkaido-Southern Kurils visa-free agreement. It’s their concern for the welfare of the impoverished residents of the islands that have led them to make generous donations every winter.

If the LPDR is resolute on blocking the aid, they should make a similar annual contribution for the islanders from party funds. This would automatically ensure that the islanders won’t be dependant on Japanese aid for survival. The residents of the Southern Kurils are sick of the jingoistic rhetoric that is cast on them by politicians. An increasing number of people are under the impression that they just may be better off under Japan. Such feelings are bound to increase if the Russian authorities neither help them nor allow others to do so.

This is the first editorial in this week's issue of the Sakhalin Times

The bankruptcy proceedings of 5 banks in the Russian Far East, including Sakhalin’s Vremya Bank caused a flutter in distant-Moscow. A series of rumours forced Bank Rossii to make a statement in Moscow that there is no looming banking crisis in Russia. This doesn’t mean that all is well with the banking industry in Russia or Sakhalin in particular. The banking industry in the region doesn’t even come close to meeting global standards.

It’s surprising that banks in a city like Yuzhno-Sakhalinsk, which has a substantial expatriate population and a large number of business travellers, don’t employ staff who atleast have a working knowledge of English. The sheer number of international transactions taking place in the city warrants that a bank have atleast one staff member competent in the lingua franca of international business.

It isn’t just a language barrier that expatriates have to put up with. There are just a handful of places in Sakhalin that change traveller’s cheques. Fewer places offer cash advances on international credit cards and ATMs in the city charge a ridiculous commission per transaction. This virtually forces a traveller to carry large amounts of cash.

Russians don’t have it much easier with Sakhalin’s banks. Service is generally slow and courtesy and politeness aren’t a given when a person visits the bank. A basic transaction like withdrawal of money can take a long time thanks to maddening queues at the teller, since most people don’t use ATMs. Any other work at the bank can be a cumbersome and tiring process.

Sakhaliners haven’t been introduced to the world of cheques either. All bills in the region are paid in cash. It still hasn’t hit the banks and utility providers to introduce an automatic electronic clearing system for bills. Of course, not every Sakhaliner keeps his money in the local bank or in roubles for that matter. People lost their entire life savings in a matter of days when the USSR collapsed and the 1998 financial crisis made many lose faith in keeping their money in roubles. Those that are rich enough manage to transfer their money to off shore accounts. Other merits of banking, including the concept of housing loans, are alien to Sakhaliners. In such an environment it’s hardly surprising that banks survive mainly on foreign exchange transactions and business with institutions.

The Sakhalin Administration needs to push forth major reforms in the banking sector to ensure the region’s banks function to meet the needs of the common Sakhaliner, while running profitably.

This is the first editorial in this week's issue of the Sakhalin Times

It isn’t too often that the Sakhalin Public Prosecutor personally oversees a criminal investigation. The honourable Yuri Denisov must be completely aghast that a Sakhalin fishing trawler was caught with 25 Ukrainian “slaves” on board. The “slaves” were allegedly made to work for long hours without pay and were stripped of food and water if they protested. This is a grotesque violation of Russian labour laws and above all the human rights of these Ukrainian citizens.

If the captain of the Pervorechensk fishing vessel was really indulging in such spiteful behaviour, the Sakhalin authorities need to come down on him like a tonne of bricks. This case has generated so much publicity that a harsh punishment on the captain and the fishing enterprise, indulging in slavery, will send out a strong message to employers across Sakhalin. As a civilised country, Russia will not tolerate such appalling actions by any of its citizens.

As is the case with any foreign labourer exploited in Russia, the Ukrainians were unaware of their basic rights and felt that they were at the mercy of their employers as they were working in Russia without the necessary legal documents. This is the exact kind of fear that many Russian businessmen take advantage of when exploiting foreign labourers. There have been reports of Russian contractors not paying their Chinese, Central Asian and Moldovan employees their salaries for months. We are all too familiar with stories of employees of utility providers and government-owned mines not paying their employees on account of bankruptcy. Russian employees of several private businesses in Sakhalin have also complained of not being paid their salaries for years. None of these complaints, however, were accompanied by allegations of torture.

There has been an unprecedented level of professionalism in the way that many businesses are run in Sakhalin, thanks to the presence of multi national companies and international brands. It’s very disturbing that some Russian businesses choose to employ the laws of the jungle.

A much more stringent audit is required of all businesses in Sakhalin, especially in the fishing industry to ensure that businessmen aren’t indulging in cancerous practices. The Sakhalin Administration’s Labour Department needs to work closely with the business community to protect the rights of employers and employees alike. There is absolutely no room for nefarious and unethical business practises in Sakhalin, let alone slavery.