Someone (Paula I think it was) was asking about subsidization of utilities in Russia.
Note how, in this piece, Sasha differentiates between official and unofficial income. See how big the gap is?
Chris Doss The Russia Journal ---------------------------- The Russia Journal June 7-13, 2002 Utility supplies By ALEXANDER KONDORSKY
Sometime in the late 1980s, I heard that Westerners care so much about water resources and their own wallets – running water doesn’t come cheap there – that they often prefer soaking in baths to taking showers.
This fact comes as a great surprise to most Russians, who historically have taken running water for granted. In the Soviet era, we paid around three rubles a month for both cold and hot water, regardless of the amount used. It was common to see water gushing out of a pipe somewhere on a street or in a backyard and nobody stopping to fix it. Why? Wasn’t the Soviet Union the greatest waterpower in the world?
I must admit that the government called upon the people to cultivate thrifty attitudes toward water as well as electricity, but to little effect. Electricity was cheap as well: A kilowatt-hour cost 2-4 kopeks. The total utility expenses of a family of three living in a two-room apartment came to some 10 rubles per month, i.e., less than 5 percent of the family’s income. Besides, many categories of people (war and labor veterans, servicemen, policemen, government officials, etc.) enjoyed huge discounts, up to 50 percent off the bill.
There were quite a few families that just ignored paying their utility bills. They were called "malicious non-payers" and were made to feel ashamed in various ways, including in newspapers, cartoons, satirical movies, etc., but that was all. Needless to say, a "malicious nonpayer" had no chance of becoming a member of the Communist Party.
These days, the situation is different, especially in view of the looming utilities reform. The reform aims to force tenants to pay 100 percent of the cost of utilities. The reform is stalling, complicated by the complete absence of competition in this segment of the market.
As things stand today, utility expenses of an average Russian family are close to 1,000 rubles ($32) per month, which, though it may seem fabulously cheap to a Westerner, is pretty burdensome for a Russian. Remember, the average wage is around $100 per month, according to official statistics. According to the authorities, we are paying only 60-70 percent of the actual cost of services. If we look at unofficial statistics, on the other hand, the burden does not appear any heavier than during the good-old-bad-old Soviet-era years: These $32 would be only 3.2 percent of the income of the average Muscovite family of three, estimated to be about $1,000 per month.
The government is considering installing water meters, heat regulators and per-minute telephone billing, but the proposal is already meeting a fierce resistance.
There are still many families who don’t pay their utility bills, and there is still no legal mechanism for dealing with them. By law, a Russian citizen who is officially registered in an apartment cannot be evicted under no circumstances or subjected to any other measures of influence. The only exception is a phone service that could be turned off if telephone bills are not paid.