The collapse of the ruble is causing economic doom and gloom in Russia. But in border regions of neighboring Kazakhstan demand for the ailing currency is rocketing as people rush across the frontier to snap up bargains.
“In northern Kazakhstan, people are buying up rubles en masse and going shopping across the border,” reports KTK TV.
Bringing goods across the long border is relatively straightforward as Russia and Kazakhstan are fellow members of the Customs Union. So people are hurrying across from cities in northern Kazakhstan to buy anything from property and cars to clothes and food in Siberia.
The price of an apartment in some Siberian cities, once far higher than in the depressed towns of northern Kazakhstan, is now on a par, KTK said.
“I’ll sell my apartment, and for the same price I’ll buy in Omsk, because of the fall of the ruble,” an inhabitant of the city of Petropavl, which lies just 70 kilometers from the Russian frontier, said. “It’s an investment.”
In Kazakhstan’s capital, status-conscious bargain hunters are using the cheap ruble to buy expensive cars, an Astana-based dealer told Kazinform news agency. “We brought five cars over from Yekaterinburg [in Russia] yesterday, now we’re going to sell them on. Our rivals are doing the same, as are ordinary people wanting to acquire an expensive vehicle. You can find good options almost half as cheap as in Kazakhstan. Some people are going over and driving new cars right out of the showroom.”
The ruble has fallen almost 40 percent against the dollar and 60 percent against the euro since the beginning of this year. That may be good news for Kazakhstanis near the Russian border, but more generally it is bad news for Kazakhstan, economists say.
“It is better to be under the Russian yoke,” reasoned MP Mher Sadrakian of the ruling Republican Party of Armenia, echoing other lawmakers’ views that alliance with Russia is a necessary evil. “Our people always have been under a foreign yoke,” Sadrakian went on saying, RFE/RL reported. “We are used to someone standing above us… the Persians, the Turks, the Russians… “
Without Russia, Armenia would not have “conquered” predominantly ethnic-Armenian Nagorno Karabakh, claimed by Azerbaijan, he continued. “Without them [the Russians], they will devour us,” Sadrakian said in reference to Azerbaijan and its longtime ally, Turkey.
Another Republican, Seryan Saroian, offered more transcendental reasoning, though getting somewhat confused in the process.
“Why are you lamenting us joining the European Union… the Euronews… I don’t know, Eurasia…Let’s say you eat two more kilos of sausage, will it change anything?” Saroian was quoted by RFE/RL's Armenian service as saying.