St. Petersburg officials are considering a ban on migrant workers in taxi and delivery services, a proposal that has sparked concern among local entrepreneurs and businesses. The decision, reportedly made against the advice of the government’s economic bloc, is raising fears of potential economic disruption and increased costs for consumers.

The proposed ban has sent shockwaves through the delivery service sector, particularly after residents raised concerns about couriers obstructing pedestrians. The initiative follows raids by the Ministry of Internal Affairs that uncovered over 1,000 illegal immigrants and confiscated more than 2,000 electric bicycles.

According to Alexander Mityukov, head of the Russian Association of Transport and Logistics and Postal-Courier Companies MAKS, the ban could lead to a shortage of couriers, negatively impacting the local St. Petersburg economy. Mityukov also questioned the proposed speed limit of 15 km/h for couriers, arguing that it lacks justification and contradicts the federal limit of 25 km/h for bicycles and personal mobility devices.

Grigory Kunis, founder of the Igoods delivery service, anticipates increased labor costs due to heightened competition for available couriers, even for companies that do not currently employ migrants.

Yandex has warned that prices for both taxi and delivery services will likely increase significantly, with taxi fares potentially rising by 10-15% and delivery costs more than doubling.

Taxi companies are also expressing concern, highlighting the potential difficulties for businesses that lease cars to migrant drivers and the need to find drivers with Russian passports by July 1.

Entrepreneurs point out that similar bans in other regions, such as Yakutia, have resulted in personnel shortages, prompting adjustments to the restrictions. The Leningrad Region is also considering a similar ban, revisiting a previous initiative from 2024 that was not extended.