Orlov slashes own salary

True leaders have to stand as example for others, Governor Igor Orlov thinks when today announcing his self-imposed salary cut by 30 percent.

The saved money on Orlov’s pay cut will be spent on the social sector, the press-service of the Governor’s office says in a press release. Igor Orlov himself signed the decree reducing his salary for the period until December 1st 2016.

Arkhangelsk economy is struggling together with Russia’s deep economic slump. In 2014, regional industrial output fell as much as 29,1 percent compared with 2013.

Low oil-price and sanctions imposed by the EU, Norway and the United States in connection with the Ukraine crisis are shrinking Russia’s output by 4 percent this year.

The Federal budget for 2016 already requires adjustments after the oil price dipped under $40 per barrel this week, Vedomosti reports. The newspaper says the Government might need to spend part of the Federal Reserve fund if the oil price continues to stay below $40 per barrel. That will keep the economy floating next year, but the very serious question is what will happen to the budget for 2017-2018.

With the pay cut, Governor Orlov follows the example of President Vladimir Putin who last week announces his self-imposed salary cut for the second year in a row.

The press-service of the Arkhangelsk Governor has not replied to the Independent Barents Observer’s question on how big Igor Orlov’s pay check is. 

ADVERTISEMENT