Tag Archives: apartments

Another Housing Deadline Missed

Or about to be missed.

Recall some background on Russia’s military housing issue.

In 2012, President Vladimir Putin publicly set his latest deadlines for resolving the military’s housing problems:  2013 for permanent apartments and 2014 for service apartments.  He just awarded himself an extra year on each.  They had been 2012 and 2013.  And 2012 and 2013 weren’t even his original deadlines.

When Sergey Shoygu came to the Defense Ministry last November, he faced at least 80,000 men, officers and former officers, in line for permanent apartments owed them on retirement.

The MOD says there were approximately 60,000 needing them at the beginning of 2013.

The Defense Ministry’s Chief of the Housing Support Department (DZhO or ДЖО) Sergey Pirogov has only been on the job about a month.  Previously DZhO’s deputy chief, he replaced his boss — Galina Semina — a Serdyukov appointee.

Sergey Pirogov

Sergey Pirogov

On 1 October, Pirogov told the RF Public Chamber that 41,400 servicemen will receive permanent apartments in 2013.  He claimed 16,200 already have this year, and 25,200 will receive them in November and December.

There is simply no way the MOD can put more than 25,000 in apartments during the balance of this year.  Despite Pirogov’s statement, there is probably no one who believes him.

Pirogov has called permanent housing a continually “flowing” problem; 24,700 new men joined the line in 2012 and 9,900 this year.

The MOD grapples with its housing problem using two instruments — apartments in their “natural form” or generally despised GZhS, State Housing Certificates.  It also hopes soon to make the One-Time Monetary Payment (YeDV or ЕДВ) a possibility.

If the Finance Ministry will agree on an amount, and the Duma approves some legislation this fall, the YeDV might start on 1 January.  It would be figured on the cost of a square meter of housing, years served, and household size, and presumably won’t be less than 3 million rubles and military men hope it’s a lot, lot more.

In mid-September, Pirogov effectively admitted the military department came to the idea of the YeDV in order to get around the problem of massive corruption in military housing construction.

He also appeared on Ekho Moskvy’s Voyennyy sovet program, and said:

“It’s perfectly obvious that the one-time payment to receive apartments is needed to resolve the issue at once.  Moreover, some universalism is necessary here, a universal mechanism should develop equal rights for all servicemen.  In our opinion, an exit from the difficult situation could be the transition to presenting one-time monetary payments, to acquire or build housing for servicemen, the so-called YeDV.  On what is this based?  Well, look here, according to those figures which the MOD leadership has more than once voiced.  Annually we are paying servicemen, at the disposition [of their commanding officers], a huge amount…  We can’t dismiss a serviceman before providing him housing, and are forced to put him in so-called disposition, and in this case the serviceman receives [rank] pay, he can use sanitorium-resort support, other privileges, given to servicemen, but he can’t be dismissed from the armed forces if he doesn’t have housing.  And in this instance, the MOD will spend up to 30 billion rubles a year supporting our servicemen.  It’s bitter to have to say that the problem of providing housing is long-running enough, and a serviceman can be at the disposition 5 or more years.  And here about that sum which I named, if we multiply it by a quantity of years, we get a simply enormous sum, which the MOD pays out fulfilling its obligations, this is the first conclusion.  The second conclusion is the resources which the MOD actually spends on construction are also enormous.  By any evaluation, it’s on the order of 30 billion rubles a year.  But consider that on average it takes 2-2.5 years to build an apartment block, half a year goes to the necessity of drawing up documents.  And it turns out that 3 years properly here this money is here, it’s hung up, it’s not realized so to say.  Yes, they spent it, on building apartments, they so to say laid it out in such a way.  But even the optimization of additional expenditures, particularly with apartment upkeep.  I also would like to introduce an example, in 2012 we had more than 10 thousand frozen for various reasons, not occupied by servicemen.  It’s natural so to say that these apartments require their upkeep.  But in this case, if we didn’t turn off or didn’t turn on the heat properly, this in turn means correspondingly then already essential repair to newly-built, but not allocated apartments.  And this sum here — it becomes in principle very large and very significant for the MOD.  And more than this, even the colossal expended amounts, about which I already actually spoke, deciding the question with housing construction, we aren’t resolving the problem.”

Lots interesting here . . . Pirogov talks pretty clinically about those left “at the disposition,” but it’s a difficult life for an officer living in his garrison on a fourth of the pay he had when he had a duty post.  And, Pirogov says, the situation goes on a long time and costs up to 30 billion rubles per year. 

Pirogov says the MOD has also been spending 30 billion on housing construction, including on 10,000 unoccupied apartments.  But construction hasn’t solved the housing dilemma.

Maybe the housing situation has improved somewhat, but, as Pirogov admits, it’s still a long way from solved.  And Putin’s deadlines come and go and come again.

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Putin and the Army (Part II)

Putin Eating with Soldiers

Continuing with Prime Minister Putin’s latest pre-election article on the army . . . Russia Today published a translated version.

Describing the army’s “social dimension,” Putin says a modern army requires well-trained officers and soldiers on whom more demands can be placed.  And they, in turn, deserve pay commensurate with that of specialists and managers elsewhere in the economy.

Hence, the new pay system for officers this year which practically tripled their remuneration.

Putin mentions that military pensions were increased 1.6 times (60 percent), and he promises they will now increase annually by not less than 2 percent over inflation.

Retired or dismissed servicemen will get a “special certificate” good for further education or for retraining.

Then Putin tackles the painful military housing issue.  After recounting its history, he says, in 2008-2011, the army obtained or constructed 140,000 permanent and 46,000 service apartments.  But he admits:

“. . . despite the fact that the program turned out to be larger in scale than earlier planned, the problem still wasn’t resolved.”

He says the accounting of officers needing apartments was conducted poorly, org-shtat measures [dismissals] weren’t coordinated with the presentation of housing, and the situation has to be corrected.

Putin is, of course, alluding to the fact that maybe 30,000 or 80,000 of those 140,000 apartments the Defense Ministry acquired or built remain unoccupied.  But he’s not exactly tackling the problem head-on.

Putin says the “eternal” permanent and service apartment problems will finally be resolved in 2013 and 2014 respectively.

But in mid-December, in his “live broadcast,” Putin said his new deadlines were 2012 and 2013.  So, he’s just given himself an extra year on each.

Putin says the military’s mortgage savings program now has 180,000 participants, and 20,000 apartments have been acquired through it.

He also notes that regions and municipalities won’t have broken down military towns and infrastructure foisted upon them.

Next, manning. 

Putin gives the familiar figures–there are 220,000 officers and 186,000 sergeants and soldiers who now serve on contracts.  Over five years, the army will try to recruit 50,000 professional soldiers each year. 

Selection, Putin says, will be strict, and contractees will be trained in special centers and sergeant schools.

In the reported one-million-man Russian Armed Forces, 700,000 personnel will be professionals by 2017.  Conscripts will be reduced to 145,000 by 2020.

Putin says the mixed contract-conscript system of manning used for quite some time was just a compromise because Russia couldn’t afford an all-volunteer army.

However, politicians and generals always extolled the mixed system because it retained a universal obligation (at least theoretically) and kept the military from becoming “mercenaries.”

Putin endorses military police and priests in the ranks to keep order among remaining conscripts.  He also promises those who serve as draftees assistance with education and preferences in entering the government service.

The Prime Minister admits Russia lacks a concept for its national military reserve system, and developing one is a near-term task.

Although the course is set for a professional contract army, Putin still wants young men to prepare for service.  So don’t forget about military-patriotic indoctrination, military-applied sports, and DOSAAF.

And Putin indicates he supports Deputy PM Dmitriy Rogozin’s proposal for a Volunteer Movement of the National Front in Support of the Army, Navy, and OPK.

Part III will be the final five pages on the OPK.

Another Angle on Apartments

Apartment Owners Say No to Putin (Photo: Novyy region -- Yekaterinburg)

Here’s a different angle on why finished military apartments are unoccupied.  Last week Novyy region told the story of how apartments for military men in Yekaterinburg got tangled up with apartments for private buyers, leaving the latter standing in front of a huge sign saying “No to Putin!” and vowing not to vote for him on March 4.

The tale goes like this.  In 2005, the Defense Ministry engaged the Megapolis construction-investment company to build a 254-unit apartment building for military unit 61207, which looks to be a nearby Railroad Troops brigade. 

The building was supposed to be ready in 2008, but construction dragged out, reportedly as a result of rising costs.  To complete its work, Megapolis said it needed to sell some of the apartments which it did.  These civilian owners, however, have keys to apartments they can’t occupy.

As a result of the dispute with the company, the Defense Ministry has refused to sign commissioning papers for the building, or turn on the electricity and gas.  The private owners have appealed for help at every possible level, and are now demanding that Defense Minister Serdyukov and Prime Minister Putin intervene.  In a statement to the media, the frustrated owners said:

“We shareholders, as consumers, legally paid for our apartments several years ago.  We don’t have any relationship to the Defense Ministry or the Megapolis company, but because of their dispute we can’t get into our own homes.”

“It seems the building was fully constructed in December 2011, live it up, rejoice.  But the bureaucratic procrastination arises.  That is the system developed, among others, by Vladimir Putin simply doesn’t want to work for the good of the people.  So the question arises — why should we vote for Putin?”

This scenario of Defense Ministry contractors selling some apartments on the open market has produced similar confrontations in several cities.

No word on how the servicemen are faring in the wait for their apartments.  Presumably they’ve remained in whatever service housing they had, and can’t be dismissed until they take delivery of their apartments.

A Promise That Can’t Be Kept

Shevtsova Holds the Military Housing Portfolio

Yesterday a number of media sources picked up an Interfaks story in which a Defense Ministry source alleges the military’s program of permanent housing construction for servicemen has broken down because a whopping 78,000 new apartments remain unoccupied. 

Yes, that’s not 33,000 as announced a couple weeks ago, but a reported 78,000.

Moreover, the Interfaks source says 30,000 service apartments are currently in a dilapidated condition.

The source concludes:

“It’s possible to state that the program to provide service housing to servicemen before the end of 2012 will collapse.”

The Interfaks interlocutor adds that inside the Defense Ministry they’re currently trying to determine who’s to blame for the housing mess.

Actually, the service housing deadline is now the end of 2013 according to Prime Minister Putin.  The permanent apartment suspense is the end of 2012.  But perhaps these are mere details.  The larger point is that the entire effort to furnish servicemen — active and retired — with apartments owed them under the law looks like it’s set to fail next year.

On the heels of yesterday’s very significant stat, Deputy Defense Minister Tatyana Shevtsova talked to ITAR-TASS today about putting off permanent apartments for servicemen and retirees until 2013.  She also said the 134,000 apartments (that both Putin and Defense Minister Serdyukov have cited) acquired between 2009 and 2011 is actually 116,000 plus 18,000 to be acquired in the next three days (by the end of 2011)!

Bottom line:  The political leadership’s 2010 and 2012 military housing promises weren’t kept.  The 2012 and 2013 promises can’t be kept given severe problems with apartments already built and rejected by military men.  In sum, the military apartment imbroglio may introduce its share of complications into Prime Minister Putin’s plan to return to the Kremlin in the spring. 

Serdyukov Year-Ender (Part II)

After talking GOZ-2011 and contracting with OPK enterprises, Defense Minister Anatoliy Serdyukov fielded Rossiyskaya gazeta questions on pay, military sanatorium-resort (i.e. vacation) benefits, apartments, contractees, opposition to reforms, and MPs.

He said increased pay will more than offset the loss of vacation benefits.

The military will have acquired 135,000 apartments by the end of 2011.  It will obtain another 25,000 next year according to Serdyukov.

He rejected any suggestion officers were deceived or Prime Minister Vladimir Putin “set up” when it came to the original 2010 and 2012 deadlines for solving permanent and service apartment problems:

“No one was deceived.  You know the number of those without apartments in the army sharply increased after the transition of the Armed Forces to a new profile began.  The dismissal of servicemen accompanied this process.  Unfortunately, the registration of those needing housing was conducted badly.”

“Precisely because of this, the lists for the receipt of housing rose from 70 thousand to 170 thousand.  It’s understandable that a hundred thousand increase could in no way be “inserted” into the bounds of 2010.”

On contractees, Serdyukov said there will be 180,000 in 2012, and 50,000 will be added each year until the number reaches 425,000 in 2017.  He added the optimal ratio, in his view, is 80 percent contractees to 20 percent conscripts.  But, if financing allowed, he’d go to 90-10.  Conscripts will serve primarily as infantrymen in motorized rifle brigades where less technical skill is required.

Asked the usual question on resistance to his steps to renew the army, Serdyukov said reforms weren’t all to his credit; they were devised mainly in the Defense Ministry by uniformed officers.  He said he can’t say there was strong resistance but rather misunderstanding about changes being made.  Without prompting, Serdyukov identified personnel downsizing, dismissals, and officers placed outside the shtat [TO&E] as sources of opposition to his work.

Serdyukov claimed there would be fewer inquiries from Duma deputies if they visited units instead of relying on newspaper articles and information from the Internet.

Finally, for the first half of his interview, Serdyukov talked about launching Russia’s military police.  First, the MP garrison service will stand up, followed by disciplinary battalions and the military automobile inspectorate.  Troops from line units will no longer guard cargoes or bases, he said.  MPs will be responsible for order in garrisons.  He concluded:

“In my view, this will bring real changes in barracks life, it will fight barracks hooliganism.”

Serdyukov would say dedovshchina doesn’t exist, and he wouldn’t bring himself to say simply barracks violence.  But, in essence, he acknowledges that “real changes” in the barracks are needed. 

He said a Main Directorate of Military Police has been created and General-Lieutenant Surovikin will head it.  The MPs will have several thousand specially trained personnel, including possibly some officers now outside the shtat.

Military Housing Promises

“By 2010 the question of permanent, and by 2012 of service housing for servicemen must be finally resolved.”

So declared President Vladimir Putin in his Poslaniye on May 10, 2006.

According to RIA Novosti, at United Russia’s interregional conference in Cherepovets today, Prime Minister Putin declared:

“Throughout Russia from 2011 to 2013, servicemen will be presented nearly 77 thousand apartments, that will allow the housing line for the armed forces to be eliminated completely.”

Putin had 5 years, 7 months, and 22 days to keep his original military housing promise.  Even though he admits he failed to keep it, he actually still has 118 days remaining on the original deadline.

He now has 1 year, 3 months, and 27 days to keep his new pledge.

Now many will argue that, when it comes to apartments and housing for Russian military men, the Putin regime’s glass is half, two-thirds, or mostly full, or something like that.

But it can also be argued that this was a pretty straightforward task, and that, with proper management, with adequate funding, and without inordinate corruption, it should have been accomplished pretty easily.

It’s another question altogether whether Russian voters keep track of political pledges and broken promises . . . and whether it means anything when they point them out. 

In any event, the military is a small constituency no politician really worries about offending.

Serdyukov on Contract Service

Wednesday Defense Minister Anatoliy Serdyukov appeared before a closed session of the Federation Council’s ‘government hour,’ and answered 30 prepared questions. 

ITAR-TASS reported the upper legislative chamber’s Speaker Sergey Mironov summarized Serdyukov’s presentation as follows:

“Objectively speaking, we received exhaustive explanations on several positions, some answers explained the situation which had called forth serious questions from the senators.”

Mironov added that Serdyukov’s answers:

“. . . did not completely satisfy FC members.  Personally I and many of my colleagues remained with our own opinions about what is happening in the armed forces.”

Defense and Security Committee Chairman Viktor Ozerov delivered the gist of Serdyukov’s answers to the Russian media, although Serdyukov answered some direct press questions after his session with the legislators.

According to RIA Novosti, Serdyukov said:

“We talked about the transition to the new profile, the numerical composition of the armed forces, the new structure, military units which are being created, draft legislation on pay and proposals concerning the provision of housing to servicemen.”

The major news out of Serdyukov’s parliamentary appearance was the report that he denied Russia is abandoning professional contract service or returning to Soviet-style, all-conscript armed forces.  This contrasted with the recent Newsru.com report saying contractees will soon be drastically cut everywhere except in permanent readiness units, as well as with General Staff Chief Makarov’s February admission that contract service has failed. 

Several media sources reported that Serdyukov indicated contractees would increase 50 percent from a current level of 150,000 to between 200,000 and 250,000.  ITAR-TASS reported his words as:

“In the future it [the number of contractees] will grow, there is potential for this.  In the future the number of contractees will grow to 200-250 thousand, such conditions will be created for them so that they can fulfill their duties as real professionals.”

However, BFM.ru and Regions.ru heard it quite differently.  They reported:

“The Russian Army has not abandoned contract service.  Now in the Armed Forces of Russia there are 150 thousand contractees.  At minimum, this number will be preserved.  If the financial potential of the government allows, we will broaden this component.  Ideally, according to our calculations, the quantity of contractees should be about 200-250 thousand.  They should occupy duties demanding good training and knowledge, service experience.”

According to Ozerov and press sources, Serdyukov addressed other miscellany.

The Defense Minister said the LDPR’s recent draft law proposing to allow young men to buy their way out of the draft for 1 million rubles “raises a whole series of issues.”  He claimed this would interfere with the country’s mobilization potential.  He apparently didn’t say how many guys he thought could afford that much, but he must think a lot can, if it could affect Russia’s human mobilization resources.

Despite recent press indicating a strong presumption that Serdyukov is ready to euthanize premilitary Suvorov and Nakhimov schools (much as VVUZy have been paired back), he told the Federation Council that Suvorov schools will be preserved and strengthened.

Serdyukov demurred from the possibility of more Russian bases abroad, calling them an “expensive pleasure.”

He said the military’s 8,000 plus military towns will be reduced and consolidated into only 184, and those cut would be turned over to the oblasts and republics in which they are located.  The Defense Ministry will discuss with RF subjects and local governments the transfer of housing and other social infrastructure in military towns to their jurisdiction. 

This harks back to the late April announcement about constructing new, large ‘core military towns.’  The smaller number of garrisons sounds more appropriate for a million-man army than 8,000, but taking care of those left stranded without utilities and other services in former garrisons is much more troublesome than simply transferring them to the control of oblasts or local governments.

Serdyukov said the Defense Ministry will acquire 51,000, rather than 45,000 permament apartments for servicemen this year.  He doesn’t see any problem with providing service apartments to every military man by the end of 2012.

He regrets that the Defense Ministry’s request for indexing military pay and pensions has not been approved, but he said this issue is not decided yet.

On the Black Sea Fleet, Ozerov said Serdyukov said the fleet’s personnel will be less than the 24,000 stationed there earlier.  He said Serdyukov said he expects the new Ukrainian government to be much more amenable to discussing deliveries of new weapons and equipment of the Russian fleet.