By Juan Camilo Escorcia | 2023-07-24

BOGOTA -- TASS, the oldest Russian state news agency, has implemented an unusual proposal for its correspondents in Latin America amid the financial woes caused by Western sanctions. The offer: "Work now, and get paid later."

The United States and European Union imposed sweeping sanctions against Russia after Vladimir Putin's forces invaded Ukraine in February 2022.

"TASS has been paying salaries in full, but Latin American journalists working outside Russia have been unable to claim them because the money is trapped in Russia by international sanctions," a TASS journalist in Latin America said requesting anonymity. "This is a problem that has been affecting our colleagues for several months now."

Russian banks are blocked abroad, so their cards do not work outside Russia. This means that, for now, the only way for Latin American journalists to claim their salaries is to travel to Moscow, where TASS is headquartered, the journalist added.

According to the journalist, TASS has opened bank accounts in Moscow for its foreign correspondents to allow them to withdraw their accumulated salaries when they travel to Russia. However, the agency does not cover travel or accommodation.

For many journalists the only way to collect their salaries is to travel to Russia every three to four months, which can be a significant financial burden, especially for journalists who are already struggling to make ends meet.

For instance, round-trip air tickets to Russia from countries like Colombia, Ecuador or Peru cost $3,500 on average -- or about $10,500 per year.

"This is a classic example of the saying 'You have to lose a little to win'," the journalist said. "In this case, journalists have to spend almost two months' worth of salary on airfare and accommodation in Moscow in order to collect their salary for the other months worked."

Moreover, salaries are paid in rubles, a currency that has lost an average of 16% against the US dollar and 13% against the euro so far this year.

"Today, €1 = 100 RUB, which is very detrimental to us, as our salaries are worth less and less," said another Latin American journalist who provides their services to TASS outside Russia.

"We are losing purchasing power, and it is becoming increasingly difficult to make ends meet," the journalist said.

"The situation is not easy for any of us. We can either accept the agency's condition of working now and collecting our salaries months later in Moscow, or we can resign," the journalist added. "However, resigning is a luxury that few of us can afford."

Tough job conditions

Indeed, according to estimates by the International Labour Organisation (ILO) released in February, unemployment in Latin America and the Caribbean is expected to reach 6.7% by the end of 2023 -- significantly higher than the global average of 5.3%.

The Latin American labour market is expected to remain "highly complex and uncertain" for the remainder of 2023, according to the ILO. This is due to various global crises, including the COVID-19 pandemic, the war in Ukraine and rising inflation.

Given the bleak employment outlook, it is not surprising that many Latin American journalists who work for TASS stay on, despite the difficulties in collecting their salaries.

"It is better to have a job than not to have one, but it is also true that having to travel to Moscow from time to time to collect the accrued salary is not profitable either," another source attached to the agency in Latin America said.

"The money lasts an average of three or four months before we have to return to Russia."

"Another option that the agency offers us is to travel to Moscow as tourists and stay for three months or more," he said. "While there, we can work, receive payments, exchange them for dollars or euros and then leave the country with the money in our pockets."

When asked about the prohibition on working that the tourist visa implies, the source said that "in Russia, everything can be done in various ways, even more so with the support of a state agency like TASS".

The source explained that TASS bosses are aware of the correspondents' situation, as the Federal Security Service (FSB) investigates them before they are hired to rule out any danger to Russia.

This, according to the source, "is an endorsement to work in Russian territory with or without a work visa".

A Hobson's choice

The TASS journalists consulted for this story said they are exploring alternatives to ensure that their salaries reach Latin America without having to incur the excessive cost of frequent travel to Moscow.

But none is without risks.

One option they are considering is to use their bank accounts in Moscow to make transfers to European journalists who work in Russia for TASS or for other state-owned agencies like RT and Sputnik.

These European journalists travel frequently to their countries of origin, where they may exchange rubles for dollars or euros.

One of the sources explained that "once the money has been exchanged and the European journalists are back in their home countries, such as Spain or France, they may make transfers to the Latin American journalists' accounts at any bank without any problems".

However, this option not only requires only a high level of trust but also compels the Latin American journalists to bear the taxes and other costs of transnational bank intermediation services.