If You Want Something You've Never Had, You Must Be Willing to Do

STRATEGIES FOR BUSINESS IN MOSCOW

If you want something you’ve never had, you must be willing to do something you’ve never done.

Coco Chanel

A PROPOS

The message behind the famous song by the legendary has been an increase in activity in the sphere of women’s American singer James Brown “It’s a Man’s World” is a bit out entrepreneurship over the past three years (56.8 compared to of date these days. Yes, this world may still be a man’s world, 55.9 three years ago). but men are no longer the only ones making money. Women So what kinds of business are Russian women, who make all over the world are increasingly more likely to become up over half of Russia’s workforce, most likely to focus on? entrepreneurs. This is a global trend, and Russia hasn’t been First and foremost, these are socially-oriented companies, left behind. along with various projects related to the sphere of children’s It’s hard to say for sure who the first Russian business education and development. In these sectors, women make up woman was. Some sources point to the noblewoman Maria 90 percent of all entrepreneurs. The share of women in small Maltseva. At the end of the 18th century, she opened a glass business is less than 30 percent, which is significantly lower and dishware factory in the village of Dyatkovo, which is than the number for countries with developed and diversified located 400 kilometers outside of Moscow. The factory quickly economies. At the same time, Russia is in the lead in terms of became widely known not only in Russia, but abroad as well. the number of women directors — women head up 43% of all Interestingly, this factory is still open, and the traditions of companies in Russia. oldtime Russian glass manufacturing have been preserved to It’s important to say that doing business in Russia is still more this day. Just like before, today’s modern plant makes dishware difficult for women than for men. But this is changing. Social out of high-quality, hand-crafted crystal, along with custom- attitudes toward business women in our country are gradually made items and unusual souvenirs. improving. About 56 percent of survey respondents have a Today, there are countless entrepreneurial women like Maria positive attitude toward women in business. Only 17 percent Maltseva in Russia. According to a study from the Higher are against it, since women who do business prefer to focus on School of Economics, which was published three years ago, their careers over fulfilling their main purpose designated by women’s share in business has increased by 54% in Russia, nature — to give birth to children and create families. Surveys while men’s share increased by just 19%. It should come as show that women themselves have noticed the positive changes no surprise that there are more articles about women in happening in the sphere of women’s entrepreneurship. These business — company owners and successful managers — changes include increased access to financing, improvements on the pages of Russian magazines and newspapers these to educational programs, and better attitudes toward women days. There are also public organizations that bring together in business. “Dear women, you have shown yourselves to be women in business. Three years ago, the OPORA Russia All- talented and professional, and are accomplishing a lot across Russian Non-Government Organization of Small and Medium all spheres of city life. Thanks to you, our city is becoming even Business and the Agency of Strategic Initiatives introduced more beautiful, cozy, and welcoming,” the Mayor of Moscow a new index to track women’s entrepreneurial activity — Sergey Sobyanin said as he wished the women in Moscow happy the WBI (Women Business Index). The data shows that there International Women’s Day.

Sergo Kukhianidze Editor in Chief

[email protected] Moscow official CAPITAL IDEAS Founder: Department for External Economic Moscow government at and International Relations of the Government of Moscow Address: 125009, Moscow, Voznesensky Pereylok, 22 MIPIM – 2019 Ph: +7 (495) 633-68-66, Fax: +7 (495) 633-68-65 The Moscow government took part in the 30th E-mail: [email protected] International Real Estate and Investment Exhibition https://www.mos.ru/dvms MIPIM, which took place on March 12-15 in Cannes. A representative delegation headed by Marat Khusnullin, Publisher: National Review Ltd Deputy Mayor of Moscow in the Government of Moscow CEO – Sergei Oposhnyanskiy for Urban Development and Construction, visited France. Phone.: +7 (495) 784-69-71 E-mail: [email protected] 6-9 CAPITAL IDEAS STRATEGIES FOR BUSINESS IN MOSCOW

Editorial staff: 10-11 Editor-in-chief – Sergo Kukhianidze Production crew of the edition: Elena Egorova (deputy editor-in-chief), Moscow official Vladimir Dolmatov, Dmitry Nazarov, Marina Ogorodnikova, Anastasia Paloni, Anna Sirotina, Vladimir Smelov, Marina Urshina, Anna Vavilina The development of the Consulting – Evgeny Khokhlov Design – Robert Saifulin city’s digital infrastructure Photo editor – Victoriya Oposhnyanskaya is one of Moscow’s Page layout – Alexander Saifulin Assistant – Nadezhda Ratanova priorities Editorial contacts The business session "Digital Transformation of web: capitalideas.moscow Cities: Prospects for the Implementation of Artificial e-mail: [email protected] Intelligence in Municipal Processes and Procedures f: capital.ideas.moscow Management" was held at the Russian House in Davos as part of the 49th World Economic Forum. With assistance of Moscow Center for International Cooperation Address: 105005, 68/8, build.1, Baumanskaya str., Moscow, Russia 12-13 Phone/fax +7 (499) 267-46-56, http://www.mcms.ru/ Distribution – "Trans-Media" Ltd Russian-Indian small and Acknowledgements to: PHOTO – www.mos.ru, www.dvms.mos.ru, www.stroi.mos.ru, www.kremlin.ru, http:// medium-sized enterprises council.gov.ru, http://womanopora.ru, http://eawfpress.ru, ITAR TASS Agency, RIA- forum Novosti, Getty Images Russia, companies and organizations, represented in the issue. If you wish to get new issues of Capital Ideas, please, apply to: [email protected]. Minister of the Moscow Government, Head of the The magazine is registered at the Federal Authority of Legislative Control Department of External Economic and International in Mass Media and Cultural Heritage Protection. Media registration certificate Relations Sergey Cheremin took part in the Russian- ФС77-53716, issued April 26, 2013. Indian small and medium-sized enterprise forum, which took place on February 21 in Mumbai, during All reproduction permitted only with the Editor’s permission and reference to his working visit to India. ‘Capital Ideas’. Distributed free of charge Published with support from the Department for External Economic and International Relations of the Government of Moscow Circulation : 7000 Signed into print 15. 04. 2019 Moscow Global Moscow official S.M.Saiful Hoque: Our relations have Moscow – Geneva: urban enormous potential management – modern Among all the ambassadors accredited in Russia, it’s difficult to find someone who knows our country better than 64-year-old Dr. S.M.Saiful Hoque, challenges and current Ambassador Extraordinary and Plenipotentiary of Bangladesh. And it’s not just because he speaks great Russian and loves Russian blini and pelmeni. solutions Dr. S.M.Saiful Hoque knows a lot about Russia because, after first coming here A conference on city management and to study, he has lived in our country for a total of 34 years. “I can’t say that international cooperation took place in the Russia is my second home, because it’s been my home for a long time,” he said Swiss capital. in an exclusive interview with Capital Ideas.

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16-21 Cover Story Women in business is a global trend Women’s entrepreneurship is becoming an inextricable part of the economy not just in Russia but all over the world. There is an increasing number of business organizations headed up by female entrepreneurs. And there are many goal-oriented, proactive, and successful entrepreneurs among women.

22-26 Face to Face Oksana Pushkina: Russian women need a revolution of the mind Oksana Pushkina — a television and radio journalist, a State Duma deputy, and one of the founders of Zhenskyi vzglyad (“Woman’s view”), a women’s empowerment foundation — talked to Capital Ideas about the real situation on the Russian labor market, explaining why it’s necessary to create a strategy to support women’s entrepreneurship and how to provide legal protection for women in business.

27 Moscow in numbers

April-June 2019 CAPITAL IDEAS 3 Nothing Ventured

Moscow in numbers Mats Friberg: We’re boosting Nothing Ventured 33 investment in manufacturing German business isn’t localization giving up Moscow in words It’s rare to hear good news from the business sector The business climate in Russia is getting 34-35 these days. More and more often, financial news feature worse as the volatile ruble and sanctions threatening words like “crisis,” “recession,” and “slowdown take a toll on the country’s economy, in growth.” But it turns out there are pleasant exceptions but this hasn’t discouraged German What’s New as well. businessmen. 36-45 51 56-57

46-49 52-55 58-60 Nothing Ventured Nothing Ventured Nothing Ventured Oleg Prozorov: The most Blue elephants in Romain Froquet: important thing is for Russia I would be happy to business people to trust Every year, about 7,000 – 8,000 million paint all of Moscow! tons of cargo are transported by road each other vehicles in Russia. The German company This young artist from Paris has been Schmitz Cargobull AG makes a significant in Moscow three times over the past If the Belgian-Luxembourg Chamber of Commerce contribution to this volume. The three years, and was delighted by his didn’t already have an office in Moscow, it would company’s logo, which features a blue visits. So why does the 36-year-old definitely need to be established. It plays an elephant, started appearing on Russian Frenchman like our city? And how incredibly important role for our countries’ business roads a long time ago. Mile Mishevski, does an artist see the Russian capital? communities. “Our goal is to ensure that every the CEO of Schmitz Cargobull Russland, How much has Moscow changed and member of the Chamber could benefit as much talked to Capital Ideas about the German has it improved from an aesthetic as possible from the networking opportunities we blue elephants in Russia. perspective? What’s most impressive to provide,” said Oleg Prozorov, the Director General foreigners? of the Belgian-Luxembourg Chamber of Commerce in Russia, during his conversation with the Editor- in-Chief of Capital Ideas.

4 CAPITAL IDEAS April-June 2019 Life&Culture Our Interview Nothing Ventured Who will gather the biggest Goethe-Institut in Russia: Business in crowd? Bon Jovi, Metallica?.. strengthening mutual trust In recent years, all sorts of art exhibitions have been Russia is a Providing people in different countries with direct successfully held in Moscow, and many of them were access to German language and German culture is received with unprecedented excitement. Three years challenge, but the main goal of the Goethe-Institut – one of the ago, people waited in line for hours to look at paintings most effective non-governmental organizations in by the famous Russian artist Valentin Serov. The capital a positive one Germany. Capital Ideas talked to Dr. Heike Uhlig, is expecting something similar to happen this spring and What the heads of Director of the Goethe-Institut in Moscow and summer, as the number of interesting upcoming exhibitions international companies who Head of Eastern Europe and Central Asia, about the is higher than ever. Still, there will be plenty to do in the work in Russia think about. association’s activities in Russia. capital if you’re not a big fan of art.

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64 76-77 84-85 Tech & Innovations This&That Moscow Vocabulary

Smart city: real estate CLEOPATRA’S NOSE 86-91 for living well or the profile Life&Culture Imagine a residential building where of a Russian all appliances, heating, and lighting are The main exhibitions of 2019 controlled through a mobile app or a remote business woman control system. And the smart devices are 92-96 also in sync with each other, complementing Blaise Pascal, a 17th century French and compensating for each other activities. scientist, once said that “had Cleopatra’s Food&Drink nose been shorter, the history of Sounds like fantasy? It’s the reality in Moscow! humankind would have developed differently.” It’s a wise observation. After Elgiz Abdulhakov on all, only stupid men think they’re in control 66-71 of everything. In Russia, we see it like this: gastronomic shows and Calendar the man is the head, the woman is the Flemish cuisine neck. Elgiz Abdulhakov used to be the chef at the famous Specialized exhibitions, restaurateur Mikhail Zelman’s acclaimed project Goodman. He has also worked as a consultant, and his congresses, and forums workshops were highly anticipated in just about every corner of the country even back when chefs weren’t trendy public figures of the restaurant business.

April-June 2019 CAPITAL IDEAS 5 MOSCOW OFFICIAL Moscow government at

The Moscow government took part in the 30th International Real Estate and Investment Exhibition MIPIM, which took place on March 12-15 in Cannes. A representative delegation headed by Marat Khusnullin, Deputy Mayor of Moscow in the Government of Moscow for Urban Development and Construction, visited France.

he opening ceremony of the Presentation of city projects, conferences, discussions, Moscow exposition, which was and round tables took place within the scope of the located on the Croisette, took business program at the Moscow stant. The Russian place on March 12. delegation addressed issues related to designing a T metropolis of the future, the development of a sports “At the Moscow stand, you can cluster in Moscow, and the interaction between learn about the city’s key develop- groups and communities in a modern city. ment programs: the renovation of the housing stock, the reorganiza- At MIPIM, Moscow learned about other countries’ tion of industrial zones, the integration of empty experiences of introducing smart city technology coastal territories into city life, and the construction for the construction of “smart neighborhoods” in the of transport infrastructure — metro, railways and capital within the scope of the renovation program. transport interchange nodes,” said Marat Khusnullin. Moscow has already implemented smart demolition

6 CAPITAL IDEAS April-June 2019 MIPIM-2019

technology, which is used to dismantle buildings that are part of the housing renovation program.

The topic of residential real estate has been the focal point of the Russian delegation’s business program at MIPIM for the second year in a row. This year, a panel discussion called “Transforming the City’s Re- ality: renovations of the housing stock in Moscow” was dedicated to the subject. Discussion participants talked about global experience, new opportunities for private business, changes of the city environment and economy as the result of renovations, and program results over the past year.

The “Moscow Investment Market: sharing success” conference, organized by the Department of Foreign Economic and International Relations of the city of Moscow with the assistance of RBC media holding, became the main event of the business program. The event, which was held with the participation of the head of the Department of Foreign Economic and In- ternational Relations Sergey Cheremin, took place in a Cannes - New York video conference format with leading foreign developers in the spheres of urbanism, architecture and development. The sides reviewed the impact of the main trends in the social development of megacities on their economic attractiveness, discussed the issues of digital integration of modern cities in international markets, and learned about the new opportunities Moscow is ready to offer to its business partners.

The investment potential of big cities was discussed, with Moscow as an example. “We’re creating the kinds of conditions that are satisfactory to both residents and investors,” Sergey Cheremin said during his presentation, “First and foremost, we try to invest our own funds. Statistics show that every ruble invested in infrastructure projects brings in 2-3 rubles in private investment. If we join forces with all companies and participants and make use of digitalization, we will be able to ensure high value and competitiveness in the city by 2030.”

Within the scope of the exhibition, a new three-year cooperation program between the Government of Moscow and the Nice City Administration was signed by Head of the Department of Foreign Economic and International Relations Sergey Cheremin and Mayor of Nice Christian Estrosi.

April-June 2019 CAPITAL IDEAS 7 MOSCOW OFFICIAL

The agreement provides for the strengthening of mu- urban development projects in the city, including the tually beneficial cooperation in the field of promoting construction of the metro and roads, the integration business and trade, urban planning, environmental of the Troitsky and Novomoskovsky Administrative protection, improving the effectiveness of social sup- Districts, the construction of sports facilities, the report measures within the framework of the Active organization of industrial areas, the renovation pro- Longevity Project, and much more. gram, and improvements to parks and public spaces.

According to Mr. Cheremin, the cooperation program The Moscow delegation organized 15 industry dis- encompasses not just the usual spheres of coopera- cussions, round tables, and sessions. The majority of tion, but also new areas that correspond to modern them features foreign speakers, and over a thousand global tendencies. “We will exchange experience in people took part in the stand’s business program. the development of technology parks, IT, and boost- During the exhibition, the capital signed two bilateral ing city management efficiency in the Smart City pro- agreements — one on cooperation between the Gov- gram,” the minister said during his meeting with the ernment of Moscow and the Nice City Administration, journalists. and the other the establishment of a joint venture between Mosinzhproekt and the French Suezo to pro- The Head of the Department of Foreign Economic cess construction waste and soils. and International Relations specifically noted that Moscow and Nice have the potential to develop “Creating a joint venture with the help of French closer economic ties, university exchanges, transport technologies and the international experience of our and tourism infrastructures, and expand contacts in colleagues will allow us to restore order, strengthen the areas of healthcare, culture and cultural heritage, control, and bring the processing of soils and debris sports, and tourism. “The signed program will enable in the capital to a new level,” said Marat Khusnul- us to use out accomplishments for mutual benefit lin, Marat Khusnullin, Deputy Mayor of Moscow in more effectively,” Mr. Cheremin said. the Government of Moscow for Urban Development and Construction. Every year, the development of the Within the scope of this visit to Cannes, the head of Moscow metro alone results in about 20 million cubic the Department of Foreign Economic and Interna- meters of construction soil. Waste treatment sites will tional Relations also held a series of meetings and ne- either be located outside the capital, or the waste will gotiations with the mayors of European cities, taking be recycled on the construction sites themselves. part in the business program of the Moscow government stand at the MIPIM exhibition. Zaryadye Park receives MIPIM The Russian capital’s stand became one of the most popular stands at the exhibition. Over the course of Awards prize three days, it was visited by over 8,000 people. The focal point of the stand was the unique mobile com- Zaryadye Park received the Grand Prix — a special plex “Map of Moscow,” which showcased the main prize of the MIPIM Awards jury, which included

8 CAPITAL IDEAS April-June 2019 leading architects and experts in the field of urban planning. About MIPIM-2019

The MIPIM Awards in the field of architecture and MIPIM is one of the largest and most prestigious construction was established in 1991 and is presented at the international MIPIM exhibition. This profes- international real estate and investment forums. sional award is given to only one project among all The exhibition, which has been held annually since the contest finalists. This year, for the first time, it was a project of the Moscow Government. 1990, is attended by the most influential representa-

The jury noted the boldness of the city’s urban plan- tives from all sectors of this market. ning solutions, the unique nature of the architectural ⦁ In 2019, the exhibition took place on March 12-14. forms, and the professionalism of the team. Zaryadye was the first park created in the center of Moscow in The central theme was “Engaging the Future.” the past 200 years. ⦁ The exhibition brought together 26,800 partici- This year, 200 projects from 58 countries of the world applied for the MIPIM Awards. There were 11 nomi- pants from 100 countries, over 5,400 investors, nation categories in total. 45 projects made it to the and 3,350 companies. It was attended by over finals, including Zaryadye Park with a concert hall (in the category “Best Urban Environment Restoration 50 political leaders. Project”). ⦁ There were over 100 conferences, and more “I consider this victory an important breakthrough in the perception of the Russian real estate market and than 360 speakers gave presentations at business the work of our architectural community as a whole. events. Many projects created by famous architects have won the MIPIM Awards. We had to prove that we ⦁ 10,000 participants visited the Moscow are part of the global process of urban development, and we did it,” said Chief Architect of Moscow Sergey government stand over the course of 3 days, Kuznetsov. 80 speakers gave presentations at business Zaryadye has already won prestigious international program events (50 of them were foreign awards. In 2018, the park received an ArchDaily award in the “Best Public Space Project” category. The park experts), and 80 members of the delegation also made it to the finals in the World Architecture held meetings with representatives of foreign Festival and was among the best places in the world according to Time magazine. ■ companies and government bodies.

April-June 2019 CAPITAL IDEAS 9 MOSCOW OFFICIAL www.photo.roscongress.org The development of the city’s digital infrastructure is one of Moscow’s priorities

The business session "Digital Transformation of Cities: Prospects for the Implementation of Artificial Intelligence in Municipal Processes and Procedures Management" was held at the Russian House in Davos as part of the 49th World Economic Forum.

inister of the Moscow Government, Head of of the city economy. Without digital technology, the the Department of External Economic and In- use of artificial intelligence, the ability to analyze large ternational Relations Sergey Cheremin was a amounts of data, it is impossible to manage big cities speaker at the session, presenting Moscow’s these days, or even talk about developing infrastruc- Munique experience in implementing information tech- ture, transport, healthcare, education, and the social nology in the sphere of urban management. sector,” the minister said.

“A smart city is human capital, plus the digitaliza- Sergey Cheremin also pointed out that last year, the tion of all areas of municipal activity and all spheres UN placed Moscow in first place in the world in terms introducing information technologies into the urban environment. The WEGO organization also included Moscow on its list of information technology leaders, and PWC put Moscow in the top five megacities ready to implement the most high-tech solutions in the municipal economy.

“The city is investing a lot of funds into the development of our transport infrastructure. First and foremost, this concerns public transportation and its digitalization. Without even realizing it, you’re using high- speed Wi-Fi in the metro. 10 years ago, even futurolo- gists would not have dreamed of this. Or the fact that President of the US-Russia Business Council Daniel Moscow trams and buses will have Wi-Fi, navigation Russell, Chairman of the Skolkovo Foundation Arkady systems, that transport flows will be analyzed in order Dvorkovich, Advisor to the Prime Minister for Eco- to make adjustments — to figure out where to open a nomic Affairs of the State of Qatar Ali Al Thani, and new lane for public transportation, or where to build founder of the Bernaskoni Architecture Bureau Boris new metro stations,” the Head of the Department of Bernasconi also took part in the business session. The External Economic and International Relations said. session was moderated by Alexander Ivlev, managing partner of EY in Russia. The minister pointed out that the establishment of the city’s digital infrastructure as a single interface to A Moscow government event — the Prize for Inter- ensure the manageability of all urban processes has national Cooperation and Development of Foreign been one of the key priorities for the development of Economic Activities, which was founded by the State the Russian capital since 2011. This approach is dictated Unitary Enterprise Moscow Center for International by modern economic conditions — the capital needs Cooperation, the Chamber of Commerce and Industry to remain competitive and attract investors. Moscow of the Russian Federation and the publishing house is the locomotive of the Russian economy, account- Kommersant — occupied a special place in the Rus- ing for about 26% of Russia's GDP. “In 2010, the share sian house cultural program in Davos. The prize is be- of oil and gas revenues and the share of resource ening awarded for the second time. The first ceremony terprises in Moscow was about 35%. Today, it is less took place during the Saint Petersburg International than 5%. What have we replaced these enterprises Economic Forum on May 23, 2018. with? Service, high-tech industries, research and development — there has been a high sales growth rate The prize is awarded to representatives of Russian and in this sphere in Moscow. I am sure that the share in foreign business circles who actively work to achieve both the GDP and in the intellectual property econo- overall business success, to stimulate and support my will grow exponentially,” the minister said. sustainable foreign economic relations in Russia. ■ www.photo.roscongress.org

April-June 2019 CAPITAL IDEAS 11 MOSCOW OFFICIAL

Russian-Indian small and medium-sized enterprises forum Minister of the Moscow Government, Head of the Department of External Economic and International Relations Sergey Cheremin took part in the Russian-Indian small and medium-sized enterprise forum, which took place on February 21 in Mumbai, during his working visit to India.

he main objective of the event was to strengthen panies and individual Russian regions.” He added and expand mutually beneficial ties between the that the pace of growth in trade and economic re- business circles of the two countries, as well as to lations speak to the possibility of tripling the trade Tstimulate the development of high-tech startups. turnover over the next six years. During his speech, Sergey Cheremin pointed out “We are also confidently moving towards resolving that bilateral relations have reached a new qualita- issues that haven’t been settled yet. Russia and In- tive level over the past few years — one that is char- dia have formed a list that includes more than 30 re- acterized by openness and the rapid development strictions on our trade and economic relations. One of relations across different spheres. “The strength- of these problems is the lack of participation of small ening of cooperation between our countries is hap- and medium-sized businesses in Russia and India in pening at both the state level and at the level of our trade and economic relations. This is a big draw- associations,” the minister said, “This is apparent in back. After all, small and medium-sized business has a the work of the Business Council for Cooperation lot of potential. For example, today in Moscow alone with India, and even in cooperation between com- there are almost 800 thousand small and medium- sized businesses,” the head of the External Economic “Delhi and Moscow are currently implementing and International Relations said. a cooperation program that covers cultural exchange and tourism, environmental protection and There are currently 15 service centers in the Russian healthcare, education and sports, the development capital that exist to support small and medium-sized of transport infrastructure, the improvement of the business. Beginner entrepreneurs are granted tax hol- e-government system and much more,” the minis- idays, special tax benefits are applied, and the city re- ter said. imburses the cost of purchasing equipment and leasing payments. In general, Moscow accounts for more “India is a huge market that is constantly growing. It than a third of the volume of total financial support is steadily developing its infrastructure and financial for business allocated annually in Russia. sector, and is creating a flexible regulatory environment. Moscow is one of the largest markets in Europe “Today’s forum of small and medium-sized enterprises and one of the fastest growing regions of Russia. In will allow the participants to not only discuss relevant is- every respect, as two rapidly developing subjects of sues related to wider involvement of small and medium- the world economy, we should join efforts and use sized business in Russian-Indian cooperation, but also to our advantages and opportunities for the benefit of establish direct contacts with new partners, learn about our countries,” Sergey Cheremin said. their interests and priorities, and find their place in Rus- sian-Indian relations,” Sergey Cheremin noted. The event in Mumbai was attended by the Head of the Ministry of Industry and Trade of the Russian India is one of our top four trade and economic part- Federation Denis Manturov, the Director General of ners, and Moscow highly appreciates our coopera- the Confederation of Indian Industry Chandrajit Ba- tion. The Russian capital also actively works with nerjee, the Head of the Russian Export Center Andrey many regions in India. Slepnev, and others. ■ Moscow — Geneva: urban management — modern challenges and current solutions A conference on city management and international cooperation took place in the Swiss capital.

t the “Moscow — Geneva. Urban Manage- Permanent Representative of the Russian Federation ment: modern challenges and current solu- to the United Nations in Geneva Gennady Gatilov, tions” conference, organized by the Moscow Economic Development Officer of the Republic and Department for External Economic and Inter- Canton of Geneva Michael Kleiner, Head Physician at Anational Relations, participants discussed relevant is- the Research Institute of Emergency Medical Care sues regarding urban management and prospects for named after N.V. Sklifosovsky Alexey Tokarev, Can- cooperation between the two capitals. tonal Architect for the Canton of Geneva Francesco Della Casa, and Head of the RIS & Partners architec- The event was attended by Minister of the Moscow tural bureau Antoine Ris. Government, Head of the Department for External Economic and International Relations Sergey Cher- Sergey Cheremin noted that cooperation between emin, President of United Chamber of Commerce for Moscow and Switzerland is developing steadily, there Switzerland, Russia and CIS countries Guy Mettan, are about 200 large Swiss companies operating in the

April-June 2019 CAPITAL IDEAS 13 MOSCOW OFFICIAL

Russian capital, the volume of Swiss investments in the development of transport infrastructure, and the the Russian economy is about 10 billion dollars, and construction of roads and subways. He emphasized there has been an annual trade turnover increase of that the Moscow Government pays great attention 18-20%. to the development of public-private partnerships: for every ruble spent by the city, Moscow attracts Touching on the main topic of the conference, the 3-4 rubles from investors. The city is actively investing minister said that the digital economy and the devel- budget funds in the modernization of education and opment of smart city technologies is one of the most healthcare, and introducing modern business process relevant, highly-prioritized urban development tasks management systems. for the Moscow government. The Head of the Department of External Economic Moscow’s accomplishments in this sphere have and International Relations expressed confidence been recognized by leading global research compa- that the Russian capital will soon become an example nies and agencies. For example, the Russian capi- Smart City, meeting all criteria in this regard. tal moved up from 124th to 31st place in the Do- ing Business rating and placed first on the UN e- Alexey Tokarev, Head Physician at the Research In- government index, bypassing 40 capitals all over stitute of Emergency Medical Care named after the world. Moscow also placed 1st and 6th among N.V. Sklifosovsky, talked in detail about healthcare Eastern European cities out of 25 cities of the future, developments in Moscow to conference guests and according to fDi Magazine. The Russian capital re- participants. ceived a special prize in the “Provision of public services in electronic form" category from the World During their speeches, Cantonal Architect for the e-Governments Organization of Cities and Local Canton of Geneva Francesco Della Casa and Head of Governments WeGO. the RIS & Partners architectural bureau Antoine Ris talked about Switzerland’s experience with imple- Sergey Cheremin spoke in detail about the invest- menting modern architectural solutions in creating ment projects planned and implemented in Moscow, smart city development concepts. ■

MOSCOW GENEVA useful info

Department for external economic and international relations of the Government of Moscow Address: 13 Tverskaya Street, Moscow, 125032 Ph: +7 (495) 633 68 66 Fax: +7 (495) 633 68 65 E-mail: [email protected] www.mos.ru/dvms/ Department of Science, Industrial Policy and Entrepreneurship of the Goverment of Moscow Address: 22 Voznesensky Pereylok, Moscow, 125009 Ph: +7 (495) 777 77 77 Fax: +7 (495) 957 05 92 E-mail: [email protected] www.mos.ru/dnpp/ Department of Economic Policy and Development of the Government of Moscow Address: 21 Voznesensky Pereylok, Moscow, 125032 Ph: +7 (495) 777 77 77, +7 (495) 957 72 17 Fax: +7 (495) 629 33 42 E-mail: [email protected] www.mos.ru/depr/ Department of City Property of the Government of Moscow Address: 20 Bakhrushina Street, Moscow, 115054 Ph:+7 (495) 777 77 77 E-mail: [email protected] www.mos.ru/dgi/ Moscow Exchange Address: Office 1: 125009 Moscow, Bolshoy Kislovsky per, 13 Office 2: 125009 Moscow, Vozdvizhenka Str, 4/7, Bldg. 1 Phone: +7 (495) 363 32 32, +7 (495) 232 33 63 Fax: +7 (495) 234-48-40 www.moex.com

April-June 2019 CAPITAL IDEAS 15 COVER STORY

Women’s entrepreneurship is becoming an inextricable part of the economy not just in Russia but all over the world. There is an increasing number of business organizations headed up by female entrepreneurs. And there are many goal-oriented, proactive, and successful entrepreneurs among women.

Women in business is a global trend 16 CAPITAL IDEAS April-June 2019 recent study conducted by the University of Aston in Birmingham (United Kingdom) showed that men are almost twice as likely to become entrepreneurs than women. But over the past ten years, the number of en- Aterprises owned by women increased by 45%.

The company RS Components took data from the Valentina Matviyenko Mastercard Women Entrepreneurs Index for 2018 to Chairwoman of the Federation Council find out which countries are leading when it comes to women in businesses. “The International Labour Organization reports that one third of all entrepreneurs in the world are women. And it is obvious that women's Ghana ranked first on the list, with 46% of enterprises entrepreneurship can be a very important driver of global economic owned by women. Russia follows Ghana with 35%, development. In Russia, the share of enterprises created by women, then Uganda with 34%, and New Zealand with 33%. for example, in the manufacturing industry, is already at 32%. They are also successful in the sphere of IT. It is important that Russian women The US, which used to be in second place, now places entrepreneurs today are, as a rule, highly qualified and well-trained last, with just 26% of enterprises owned by women. professionals. 85% of them have a higher education, and over 40% have And this, despite the fact that the country is home to received additional training. a global tech center — Silicon Valley. There are thousands of companies in Silicon Valley, but just 8.8% of Russian women have moved into business, showing perseverance, and I would them belong to women. even say courage and creativity. If until around the mid-to-late 1990s, Russian women in business were primarily associated with shuttle traders at the Female entrepreneurship is a concept that has already markets, or at the most owners of hair and beauty salons, today the situation moved past simple definitions of gender and has so- is qualitatively different. Many business women in Russia are on par with their cial implications — that is, the conscious readiness of male counterparts in terms of the types of business they run and the scale of women entrepreneurs to take into account society’s their enterprises. They are represented not only in trade and service, but also in interests and development needs in their ventures. the agro-industrial complex, construction, high-tech industries, and banking. I believe that the main task now is to create legal and administrative As a rule, it is women who initiate the creation of conditions, as well as financial instruments that help women to realize their small enterprises in the fields of education, medical potential in business. Speaking quite simply, to help, to support women in and social services, developing a new direction — so- their pursuit of entrepreneurial activity.” cial entrepreneurship. The share of women in social

countries with the best conditions and opportunities ТОP-10 for women who want to be successful in business 2 3 10 4 6 8

5 9

7 1

1. New Zealand – 74.2% 5. Singapore – 69.2% 9. Philippines – 68.0% 2. Sweden – 71.3% 6. Portugal – 69.1% 10. United Kingdom – 67.9% 3. Canada – 70.9% 7. Australia – 68.9% 4. USA– 70.8% 8. Belgium – 68.7% Mastercard Index of Women Entrepreneurs

April-June 2019 CAPITAL IDEAS 17 COVER STORY

The development of female entrepreneurship is a global trend. There is not only a demand for this in the world, but also real work that is being done. And not just because of social concern, but because of the economic potential that women’s entrepreneurship has. According to various sources, up to 90% of all purchases in the family are made by women. And Galina Karelova targeted work aimed at this segment is a priority for Deputy Speaker of the Federation Council many corporations.

Analysis of statistics from countries with developed “Today, the subject of women's economic activity is on the global agenda of market economies shows that business is the most all key international organizations. Like many other countries, Russia sees successful for women in the service sector, on the in women's entrepreneurship an enormous resource for the development of small and medium-sized scale. Centuries of experi- small and medium-sized businesses — a powerful resource for creating new ence managing household chores plays an important jobs. Thus, over the past year, our country has implemented a whole range of role here. measures that stimulate the development of industries and spheres in which women entrepreneurs are predominantly involved, including consumer goods In Moscow, the government also supports women's manufacturing, the production of goods for children, arts and crafts, and social pursuit of entrepreneurship by organizing free educa- entrepreneurship.” tional courses, providing benefits to small and medium-sized businesses. entrepreneurship is one and a half times higher than in the classic commercial business. Female entrepre- Right now, the development of women’s entre- neurship is definitely a sphere that guides the devel- preneurship is a major global trend. As practice opment of our social environment. has shown across many countries, it’s a point of growth for small and medium-sized business. Research from 70 countries illustrate the follow- If we consider the small business cluster in gen- ing trends. First, women entrepreneurs are actively eral, there are many different areas: there is the introducing innovative technologies into business, development of innovation, industrial manufactur- automating business processes. Second, the share ing services, and so on. But you can look at it from of women entrepreneurs in the IT segment is de- another perspective — youth entrepreneurship or creasing. That is, women are actively introducing female entrepreneurship, for example. And it is in innovations in business, but are producing them to women's small business that you see a serious fo- a lesser extent. cus on the development of social entrepreneurship. Women entrepreneurs in Russia: 58% of Russian women have a university degree 43% are considering becoming entrepreneurs 57% of women entrepreneurs see an improvement in their personal lives 40% are afraid to start a business because they don’t have the professional know-how 53% of women entrepreneurs started their business after having children

18 CAPITAL IDEAS April-June 2019 Marie-Christine Oghly President of the World Karin Van Mourik Association of Women Association of German Women Entrepreneurs (FCEM) Entrepreneurs

“Women who do business have a lot in common. The main “As you say in Russia, one person in battle is not enough. Especially reason a lot of women are becoming entrepreneurs is their one woman. Although a brave woman starting a business is already a desire to find work for themselves. But the scale of companies warrior, she still needs professional contacts, mutual support, exchange of they establish and run differs from those established by their experience, information about her rights, protection of her interests, and male counterparts. Moreover, women entrepreneurs are opportunities to be successful in business just like men. typically older than male entrepreneurs. Women are usually Of course, we are by no means a feminist organization, but it has long been busy starting families until age 38, with raising their children. studied and proven that women do business differently than men: more Once they reach 40, they understand they have potential for cautiously, with the expectation of long-term stability and with increased further development and want to realize their plans. attention to the human factor, which, as it turns out, contributes to the I have two pieces of advice for women going into business. First, company’s success just as much as the more obvious economic factors. don’t be afraid. The first step is always difficult and risky, but We’ve long surpassed the time when a woman in Germany was responsible after taking it you’ll realize that your quality of life will change. for three Ks: Kinder, Küche, Kirche (children, kitchen, church), but the archaic Life will never be the same as it was at your starting point. prejudices about options for the "weaker sex" are surprisingly resilient. Second, choose your business partner just as carefully as you Our organization has managed to accomplish a lot since 1954: women who are would choose your life partner. These are the people who will be members of the association have a voice in the spheres of economy, politics, with you in business, impacting the result you want to achieve. and social life. They hold strong positions in the sphere of entrepreneurship. Today, along with the growth of entrepreneurship, the main Our association has managed to achieve, through implementing relevant laws, task is to transfer technology, experience and knowledge a 30% quota for the presence of women in supervisory boards at enterprises. from those who have already achieved something to those But the issues of equal rights in terms of women’s participation in the who are taking their first steps in business. economy and equal pay are still important to us.” We have created a platform where each member of the association can submit their services and leave a request for cooperation. FCEM is starting to work with large amounts of information that is becoming available to members of the association. But at the same time, this doesn’t cancel out congresses and live meetings, the exchange of emotions, knowledge and experience that cannot be transferred digitally.” Vera Podguzova Director for External Communications of the Russian Export “Entrepreneurial activity in Moscow is growing every Centre year. Women in the capital have a stable interest in developing their own business. The share of women “Women’s entrepreneurship is a special sphere. among individual entrepreneurs registered in Moscow For the most part, women entrepreneurs is about 39%, and about a third of all managers in the represent the small and medium business capital are women. The city is actively supporting women segment, and this, as a rule, is the production who start their own businesses, specifically through of goods and services for a particular person. In educational programs, financial support, and property today's world, female entrepreneurship plays a support. Women make up more than half (55.6%) of Natalya Sergunina special role. Of course, women entrepreneurs all entrepreneurship courses in the city, according to Deputy Mayor of need to be supported by the state. After all, these Moscow for Economic a survey conducted by the state budgetary institution are new jobs, it’s the development of the social Policy and Property Small Business of Moscow in April-August 2018. and Land Relations sphere, and additional opportunities for the local 42% of women taking these courses are under 35, 29% are budget. But women represent big business as between 36 and 45 years old, and another 20% are well. At times, business projects implemented by over 46. A total of 7,000 people took part in the survey.” Russian women inspire genuine admiration.”

April-June 2019 CAPITAL IDEAS 19 COVER STORY

Educational projects, everything related to children’s development, preschool education — all of this is usually done by women. In fact, in Russia, up to 90% of social business and educational projects are headed up by women. Barno Tursunova Co-founder of a smart auto service network, A lot of women see an opportunity for self-fulfill- a serial entrepreneur, an expert in business automation, business process optimization, ment in entrepreneurship, as well as an opportu- and personnel motivation systems: nity to make more money than they would working for someone else. And there is a third motive as well, which was identified within the scope of the “As of today, our network is the most innovative and one of the largest in WBI (the women in business index) — the desire to the country: we have 130 auto services in Russia and the CIS. We’re in eighth combine business and family, which means a flexible place in RBC’s ranking of the most popular franchises and the fourth in the schedule, the ability to manage one’s own time and Forbes ranking of the most profitable franchises. Last year, our company resources. turnover amounted to 1.25 billion rubles.

At first, we planned to go to the US to pursue the American dream. We When it comes to Russian women in business, the couldn’t make it happen because we didn’t get a visa. We even entitled a book data speaks for itself: 54% of the working-age popu- about running our own business ‘Once Not in America.’ We came to Moscow, lation are women, and they constitute 27–32% of the and I think this was the best thing we could have done, because we would not total number of entrepreneurs in our country. This have managed to do the same thing over there. And I am very grateful that is a good resource for the development of the na- fate brought us here, where there are vast opportunities for entrepreneurs tional economy and growth in the number of entre- that you just need to take advantage of. preneurs.

We didn’t need any agreements ‘under the table’ in order to develop our In some countries, women-led companies account business here. I think this is a big advantage for entrepreneurs, when you for 50–60% of the GDP. For example, in Germany have the opportunity to grow without special connections of any kind. With and the United States, the proportion of such en- opportunities like this, any entrepreneur can be successful. terprises in the GDP is 50–52%. In Japan, this figure I am very glad that we started our business in Moscow — this is our city and is 55%, and in Italy it’s 60%. By some estimates, today it’s our strong point. Winning Moscow over is difficult, but if you start here, women own 10% of the world’s property. Women’s everything else is peanuts in comparison.” business has really become a significant segment of entrepreneurship. ■

“Our society has the perception that women are a socially subsidized class. We want to expand the agenda: first, women's entrepreneurship is a point of growth for small and medium-sized businesses all over the world; second, more than half of the working population in Russia is women, and here there is a real opportunity for the Russian economy to tap into this potential.

Our team has created a platform that brings together women from different regions, allows us to launch initiatives, to set an agenda for cooperation between entrepreneurs and government bodies and supporting organizations in the small and medium-sized Nadiya Cherkasova business segment. Member of the Supervisory Board at We-Fi, Chair of the I’ve been in the banking industry for 25 years. I have met excellent women experts that “Opory Rossiyi” committee I’ve offered better positions to, but they doubted their future success and their ability to for the development of move up the ladder. It seemed to them there was someone better and they wouldn’t be women’s entrepreneurship, able to achieve the needed results. Today, there are fewer women who doubt themselves. Member of the Board at Otkritie Bank A general trend has emerged in two directions. Externally, society support women’s desire to create their own business and the first elements of a supporting infrastructure are being established. And internally, there is personal self-confidence that is growing thanks to examples of successful women entrepreneurs.

There is a trend right now in which the share of women on board of directors management boards at banks is growing. More attention is being paid to the subject of women’s development and self-fulfillment. This gives women confidence, and they’ve started to see opportunities to develop their careers and achieve their goals.”

20 CAPITAL IDEAS April-June 2019 Natalia Zakhidova Executive Director of the All-Russian public organization Veronika Peshkova “Women of Business” UNIDO Goodwill Ambassador

“In the 20 years that our organization has been around, the image of “In Moscow, doing business is different because the capital women entrepreneurs has changed a lot. Today, women start their grants people greater access to the market — it’s just huge own businesses primarily because they want to create value. The here. But women entrepreneurs in Moscow encounter another scale of their enterprises varies. This trend applies not only in the problem, because doing business here is expensive: rent, staff, regions and in the capital, but across all countries and continents. advertising.

One of the recent largest international congresses for women I think the Moscow program may well be aimed at making our entrepreneurs was held in Moscow and brought together women entrepreneurs more open to the rest of the world. An participants from almost 40 member countries — over 500 business American woman who starts a business immediately starts women. “Women of Business” hosted the event. It was held with thinking about how to turn it into an international organization. the support from the Moscow government, which made it possible At most, Russian women make plans to take their business to to conduct an effective dialogue within the framework of sessions, the neighboring region. I think that for the capital, for the level round tables, and discussions. of entrepreneurs working here, it’s important to consider formats that will enable Russia to show the world that we can do much Moscow sets the trend for the whole country in terms of forming more than make tanks and missiles. I think this trend should start associations and working with them. When there is an association, in Moscow. there is an opportunity to contribute to the formation of values and to the development of measures for the systemic support of women's Both male and female entrepreneurs consider the lack of access entrepreneurship. Association activities make communication more to financing to be the main barrier to starting a business. After efficient. Recently, cooperation between our association and the that, opinions are split. For men, the second barrier is fear of government has reached a qualitatively new level. The beginning of a failure. For women, it’s the feeling that they lack the necessary dialogue, which signals that things are moving in the right direction, knowledge and skills. So the answer is that we need specialized is key. And there is a dialogue. We regularly conduct foresight sessions, educational, informational support, promotion, role models of and they are always attended by representatives of the Moscow success, and programs to provide access to financial resources for Department of Entrepreneurship and Innovation Development.” both women and men.” Women in small business 27% Retail Over a quarter of Russian 28% entrepreneurs are women 14% 58% 90% Manufacturing of social projects are headed Service up by women

April-June 2019 CAPITAL IDEAS 21 FACE TO FACE Oksana Pushkina: Russian women need a revolution of the mind

Oksana Pushkina — a television and radio journalist, a State Duma deputy, and one of the founders of Zhenskyi vzglyad, a women’s empowerment foundation (translates as “Woman’s view”) — talked to Capital Ideas about the real situation on the Russian labor market, explaining why it’s necessary to create a strategy to support women’s entrepreneurship and how to provide legal protection for women in business.

What can you tell us about gender discrimination For example, according to data from the Russian Fed- in Russia? eral State Statistics Service, women in Russia, on average, receive almost a third less than men working In Russia, de juro equality between men and women in the same positions, and receive about half of what does not exist. Opportunities and chances for success men get in bonuses. In addition, women are much less are far greater for men than for women. The conserva- likely to become leaders, especially top managers. tive parts of Russia society do not accept the concept of “gender,” and it’s not included in our legislation either. In Maybe women just don’t want to pursue careers as one way or another, modern research uses the concept much as men? Maybe they’re more focused on fam- of “gender” in order to assess the balance between op- ily and children? portunities for women and men in society. The World Bank’s latest “Women, Business, and the Law” report We need to stop pretending the problem doesn’t exist contains a rating of countries in terms of gender equal- and justifying the situation with Constitutional equality. The countries were assessed in accordance with the ity between citizens and excuses like “women just following criteria: freedom of movement, employment, don’t want to.” pay, family law, maternity leave, business, asset management, and retirement benefits. In this ranking, Rus- Men account for 46% of Russian society, but the struc- sia scored 73.1 points, landing being between Kazakhstan ture of their occupations is very specific. There are pro- and Uzbekistan. Despite the progress achieved in the fessions that are strictly “male,” where there are hardly education of women and the protection of motherhood, any women at all. I was recently discussing this subject working women in Russia are not sufficiently protected. with famous Russian political scientists. According to The difference in salaries, discrimination in hiring, sexual their data, nearly half of all men in Russia work in Minis- harassment — all of this still exists. The problem of dis- try of Defense, the Prosecutor General’s Office, the FSB, crimination is especially noticeable in STEM fields such the police, the Investigative Committee, the Rosguard, as manufacturing, science, or politics. the FSO, the Tax Inspectorate, and are listed as security

22 CAPITAL IDEAS April-June 2019 April-June 2019 CAPITAL IDEAS 23 FACE TO FACE

guards in schools, and now in churches. Another quarter task is to produce healthy offspring. These social atti- are directors of some kind, and 10% are drivers. Another tudes are handed down from generation to generation 5% are priests, athletes, and actors. So no more than 10% and form in their own way a convenient and prosperous of men are working in the real economy. model of life, in which a woman takes a passive stance, with everything provided by the man. But the world is In the modern world, it is women who are drivers of developing by its own laws, and everything changes social change and education, and Russia is no excep- very quickly. Men do not take care of themselves: they tion in this regard. Think about who is more likely to are at war, more often they abuse alcohol, do not take work in charitable organizations in the spheres of care of their health, put their lives at risk, and as a result children’s healthcare, environmental conservation, they die earlier. There are more women, and the tra- or animal protection. It’s women. Who is more likely ditional model of life is not for everyone. Because there to volunteer? Also women! Women are the majority are few men, and even fewer decent men who are ready across most humanitarian spheres of public life. take on a full provider role. As a result, we have a choice: to continue living without noticing the changes taking Women are more hardworking than men. According to place, or to reconsider the role of women, giving them data from the World Economic Forum report, on aver- real opportunities and incentives for self-fulfillment. age we work for 50 minutes longer than men every day, and for 39 days longer every year. Of course, this takes All of the debates about women in Russia arise from into account unpaid domestic labor. In reality, behind the conflict of two ways of thinking: the traditional the famous argument about women’s “true calling” is “women are mothers before all else” and the new nothing but simple exploitation of women’s labor. “women are people before all else.” I respect both positions, and I believe that every woman should in- There are more women than men in Russia — we dependently choose priorities in life. The task of the make up 54% of the population. I am certain that state is to ensure this choice exists. we could make a much bigger contribution into the country’s development from both a social and an eco- What kinds of qualities are most important to have nomic perspective. I see serious prospects for a break- as a business woman? through here, the need for which we keep hearing about lately. But in order to make this breakthrough Today, a revolution needs to happen in people’s heads, happen, we need to ensure that men and women re- especially in women’s heads. Mentally, women are still ally have equal opportunities. remaining mothers, wives, and keepers of the hearth, but the 21st century has different tasks in store for In your opinion, what are the reasons we’re in this them. Because women are capable of self-fulfillment situation? not only as mothers, but also as professionals.

The main stronghold of inequality is the stereotype im- From the economic standpoint, society only stands posed on most Russian girls since childhood: a wom- to gain from the inclusion of women in all sectors of an’s place is in her husband’s bed, by the cradle, and in the labor market. The Soviet leadership knew this, the kitchen. It’s possible to have a life like this as well, and although there wasn’t full gender equality, they but women must have choices: an education and a recognized the value of women’s contribution to the successful career, or a wealthy husband who will pro- economy and made efforts to advance it. That was vide for her, which is also ok, so long as it is a conscious 100 years ago, so how come we’re still questioning life choice and not her only realistic option. But in the women’s potential today? second case the woman won’t become independent in the financial, psychological, or any other sense. Today, most problems related to the glass ceiling for women in various spheres exist precisely because of And dependence on a man is also the main cause of the misconceptions and attitudes entrenched in the domestic violence. Domestic violence is much more consciousness of our society. likely in situations of full dependency because the perpetrator knows his victim doesn’t have a choice In business, it’s difficult for women to become lead- to leave. So in these situations, it becomes a vicious ers. Russia could borrow some positive practices in the cycle. Having gained power over a woman, some men sphere of entrepreneurship from other countries. For eventually begin to abuse her. It happens that people example, it’s worth paying attention to increasing the get divorced, and if this happens, it is important that levels of financial literacy for women entrepreneurs in the woman is financially and economically protected. Russia, to disseminate information about existing tools and mechanisms for business development, about sup- From time immemorial, women in Russia have been port measures from the state and private entities. It’s considered the “keepers of the hearth,” whose main also important to fight discrimination in the workplace.

24 CAPITAL IDEAS April-June 2019 Last fall, you represented Russia during a We-Fi home, but also successfully build a career, including in (Women Entrepreneurs Finance Initiative) meeting business. The idea of this combination of responsibili- in New York. What were your impressions? ties has almost no opponents left.

The topic was actually women’s entrepreneurship. We Ivanka Trump, advisor to the President of United discussed what unites women entrepreneurs from dif- States and a successful business woman herself, was ferent countries and what kinds of problems they en- the initiator behind the meeting and the establish- counter when starting their own business. Women who ment of We-Fi. To me, she seemed to be a nice and are civil servants, general directors of companies, entre- welcoming summit host who easily took initiative. I preneurs, public figures and heads of international orga- was always convinced women are better negotiators nizations from Denmark, the United States, India, South than men, and this summit reaffirmed my belief. In a Korea and other countries attended the meeting. difficult political climate, women come together and work toward common goals. We are the creators of I talked about our experience, because in Russia fe- new channels for international cooperation. male entrepreneurship is developing much faster than male entrepreneurship. For example, we talked What kinds of problems do women most often run about about investment projects in the field of pre- into when starting their own business? school and additional education, culture, tourism and other areas in which women are traditionally strong. Stereotypes are again women’s biggest enemies here. For example, it is much harder for women to secure a Another key topic was mentorship, and I talked about business loan from a bank than for men. my own experience. This is the project “Mom is an entrepreneur,” which we are implementing together In my experience, there are challenges at every stage: with OPORA Rossii in the Moscow region. As part of from opening a business account and working with a the project, women are trained in the basics of do- bank to formalizing labor relations with employees and ing business. Each of them receives support from the reporting. It is here, at the initial stage of business de- municipality and a business mentor in their field. Lo- velopment, that quality mentoring plays an important cal authorities are directly interested in the develop- role. Often, this is the only way to save a project and ing women's entrepreneurship, because all taxes go transfer key business skills to a novice entrepreneur. to the budget of the municipality. If we talk about enterprises that have already been It should be noted that in most countries the stereo- established, then one of the main problems of social typical understanding of gender inequality is gradually business, in my opinion, is sales and access to the changing to the concept of equal opportunities for all. market. Alas, it is not so easy for SMEs to present their A woman can now not only engage in keeping the products to a wide audience.

April-June 2019 CAPITAL IDEAS 25 FACE TO FACE www.we-fi.org We-Fi Event on “Building a Better Is special support from the state necessary for Russia there is still such a historical atavism, as the World for Women women who plan to open their own business? “List of professions prohibited for women,” which, de- Entrepreneurs” spite significant scientific and technological progress, Absolutely. And Russia has experience with providing has remained unchanged since 1978. state support for small business and business in the social sphere, there are organizations and foundations Now, a working group has been set up at the State that support women’s business initiatives. Sometimes, Duma Committee on Family, Women and Children, in order to give impetus to the independent develop- where we discuss specific mechanisms for improving ment of entrepreneurial projects, financial assistance legislation related to women's rights. This is a perma- to women becomes absolutely necessary. Equally im- nent platform for dialogue with public organizations portant is the assistance in marketing the products and activists who seek to improve the status of wom- of social entrepreneurs. This enables people to create en in Russia. I hope that these joint efforts will help us sustainable business models. get things off the ground.

Some time ago you reported that you were work- Aside from legislation, what other measures need to ing on a draft law on gender equality. What are its be taken to resolve the problem of discrimination? main innovations? It’s important to distinguish women’s entrepreneur- The draft law on gender equality was submitted to the ship as a separate segment with a set share of funds State Duma in 2003, by the speaker Vyacheslav Volodin that are used to develop it, to boost the quality of (back then, he was an ordinary deputy). It was adopted education programs through attracting professional in the first reading and forgotten. My colleagues and I coaches, and to create conditions for educating wom- came to the conclusion that now is the time to revive it. en on entrepreneurship with free legal and financial This is a bill on equal rights, opportunities, and in some support at the preliminary stages. cases equal results for women, primarily in the sphere of labor relations. The bill protects women from discrimi- Moreover, it’s important to develop a media strategy nation in the area where they remain vulnerable — at for small and medium-sized business. People need to work. Every fifth woman in a leadership position has see and hear stories about women who are success- faced discrimination, most often on the basis of gender fully implementing entrepreneurial projects. We’re al- and age. The general prohibition of discrimination in the ready discussing creating a TV program like this with Labor Code is not enough to protect women. my colleagues at the State Duma. I hope that it will appear on federal channels soon, and women all over It’s important to resolve a whole set of problems, in- the country will have the opportunity to be inspired cluding one that is called the “glass ceiling” — when by successful women entrepreneurs, as well as learn women constitute the majority of highly qualified more about the different measures of support avail- specialists, but a minority of managers. In addition, in able to women in business. ■

26 CAPITAL IDEAS April-June 2019 MOSCOW IN NUMBERS

volume of cumulative foreign direct investments (as of April 1, 2018).

total area of office premises, including 4.1 mln sq m of class A office space.

of all headquarters for foreign banks and international financial organizations operating in Russia are located in Moscow.

large and medium-sized industrial enterprises. Setting aside oil and iron & steel manufacturing, 18.5% of these enterprises produce food products, 19.3% manufacture metal products, 10.4% make computers and electronics, 7% manufacture vehicles, and 7.1% produce other transportation equipment.

April-June 2019 CAPITAL IDEAS 27 MOSCOW GLOBAL

28 CAPITAL IDEAS April-June 2019 S.M.Saiful Hoque: Our relations have enormous potential

Among all the ambassadors accredited in Russia, it’s difficult to find someone who knows our country better than 64-year-old Dr. S.M.Saiful Hoque, Ambassador Extraordinary and Plenipotentiary of Bangladesh. And it’s not just because he speaks great Russian and loves Russian blini and pelmeni. Dr. S.M.Saiful Hoque knows a lot about Russia because, after first coming here to study, he has lived in our country for a total of 34 years. “I can’t say that Russia is my second home, because it’s been my home for a long time,” he said during his conversation with Sergo Kukhianidze, Editor-in-Chief at Capital Ideas.

Mr. Ambassador, relations between Russia and Overall, you could say that I am happy. Relations Bangladesh have a long history. They date back to between Bangladesh and Russia are developing in a 1971, when your country became independent... positive light across all spheres of cooperation, from political to humanitarian. But there is still a lot to do. Yes, the Soviet Union really helped us get on our feet I am certain that our relations have enormous poten- back then. Moscow was one of the first countries in tial across all spheres, including trade and economic the world to recognize our independence, and reached relations. However, I am concerned that our busi- out to us with a helping hand right away. Since then, ness communities don’t know each other well. Many mutual respect and equality have always been at the Russian businessmen would be hard pressed to find foundation of our relations. In 1972, we signed an in- Bangladesh on a map these days. I think this is un- tergovernmental agreement on economic and tech- fortunate. nical cooperation. Bangladesh’s economy, which took a hit during the war for independence, was largely re- What’s the best way to bridge this gap? stored with the help of Soviet specialists. You know, we have to create lobbies both in Mos- But a lot has happened since then. The USSR no cow and in Dhaka (in the good sense of the word, longer exists, and Bangladesh has changed a lot of course). In both countries, decision makers need over the decades. Are you happy with the current more information about each other. But there is, of state of our relations? course, a major objective challenge — the distance.

April-June 2019 CAPITAL IDEAS 29 MOSCOW GLOBAL

Unfortunately, there are no direct flights or charter West Bengal and its surrounding areas. In terms of flights between our capitals. There are always lay- the number of speakers, Bengali is ranked 6th in overs in Dubai, Doha or Istanbul. As a result, the jour- the world. I also wrote to Sergey Lavrov, the For- ney from Moscow to Dhaka takes anywhere from 10 eign Minister of Russia, and Dmitry Kiselyov, head to 15 hours. First and foremost, this affects tourists, of Russia Today, for Moscow to resume broadcast- and the two-way tourist flow is still very inadequate. ing in Bengali, but so far my efforts have not been For example, last year, only about 200 Bangladeshis successful. They explained to me that there is no visited Russia. funding. Perhaps I may not seem very diplomatic, but I think that Russia is being very modest when it What do Bangladeshis think of when they hear the comes to funding. word “Russia”? When the Soviet Union began to fall apart in the The older generation thinks about the October Revo- 1980s and Moscow left Bangladesh, who came in- lution of 1917, about Lenin, about Stalin, about a big stead? country that helped us a lot. In general, people in Ban- gladesh know Russia not only as a big country with Yes, nature doesn’t like empty space. When the Rus- huge natural reserves, but also as a highly developed sians left, they were quickly replaced by the Chinese, country in terms of science, technology, and culture. who are very active today. There are also the Japanese, We know Dostoevsky, Chekhov, and Pushkin ... at who are currently building the monorail, Germany and some point, the books of these authors were widely other Western European countries, and also, Ameri- published in Bengali. I am very sorry that this is no lon- cans, who have political interests in the region. Rus- ger the case. I am deeply convinced that people learn sia needs to once again show interest in Bangladesh, much more about other countries through culture especially in the East. Unfortunately, since perestroika than through commerce. The radio station "Voice of started, Russian businessmen no longer look to the Moscow" was broadcast in Bengali during the Soviet East, but to the West, to offshore areas where money era, but it has closed since then. Because of this, peo- can be extracted, though, of course, these funds need ple in Bangladesh are not aware of Russia’s achieve- to be invested in production at home. ments in various areas of public life and politics. From what you’re saying, it seems there is one con- There are nearly 170 million people in Bangladesh, clusion to draw: our countries need to re-discover and about 100 million people in the Indian state of each other. In this vein, I have a question: if you

30 CAPITAL IDEAS April-June 2019 were talking to a group of Russian businessmen right now instead of me, what would you tell them?

I would say that Bangladesh is a huge country with a population of almost 170 million people, and our economy and agriculture have been developing rapidly in recent years. There are truly great opportunities in the country for foreign investors and business people. We are open to new ideas and new technologies. We have a free economic zone with benefits — residents don’t pay taxes for 10 years. To get started, I would advise Russian businessmen to simply come and see it all. I would also recommend thinking about opening joint ventures.

What kinds of joint ventures, for example?

For example, in tailoring, in textile manufacturing ... I would like to add that we are also interested in Russia opening vocational schools in Bangladesh, like those that existed in the USSR. We need skilled labor.

OK. And what would you say to businessmen from Bangladesh about Russia?

First and foremost, I would say that Russia is a huge market. I would advise them to not only visit Mos- cow, but also other regions, where a lot of interesting things are happening right now. And I would advise them to not come empty-handed, but with their products. The fact of the matter is that tex- tiles can be imported from Bangladesh for 30-40% cheaper than from Western countries. Russians would have better clothes, and at lower prices. Another sphere of cooperation is mechanical engineering. Different kinds of Russian equipment can be assembled in Bangladesh. We really need ma- chines, because our country is developing. Russia also has metals, and all the necessary raw materials. From our country, all of this equipment can be shipped to other nearby countries and adjacent states of India. The energy sector is another important sphere of economic cooperation. Gazprom has been operating in Bangladesh since 2011, and our cooperation with this giant of the Russian economy is constantly developing.

In your opinion, what do foreigners who want to come to Russia need to be cautious about?

Because of the ruble’s volatility, financial instability is something to be aware of. For example, you invest 100 million rubles here - you might not be able to pre- dict what kind of profit you’ll have afterwards. Some people are afraid of the mafia. Although in my con- versations with people, I always say this is no longer a problem, and that the 90s in Russia have been over for a long time. Still, stereotypes remain. In any case, www.mincom.gov.bd

April-June 2019 CAPITAL IDEAS 31 MOSCOW GLOBAL www.bangladeshembassy.ru

Russia needs to work on creating a positive image. Of You know, getting around the city if you don’t know course, the World Cup has already helped a lot in this Russian is still difficult right now. There aren’t many regard, but you shouldn’t stop there. Businessmen street signs in English, and it’s difficult to find people should not be the only ones taking care of this, the who speak it too. Even the waiters in restaurants state should help as well. don’t know elementary English, and don’t know how to explain what’s on the menu. It would be so And there is another very important question that great if a waiter could say their restaurant not only comes up every time we talk about foreign invest- has fish, but fish from Murmansk or meat from Vo- ments into the Russian economy. If Russians don’t ronezh. And if they could talk about these places a want to invest money into their own country, why bit too. Because a waiter not only serves food, they should foreign businessmen and investors do so? It’s set the atmosphere. Very often, they don’t know good that the government has focused on repatriat- how to do this. I also want to say that, in spite of ing offshore money. It’s important to do this, so that the fact that there are different restaurants in the these billions of dollars work to benefit the country’s city right now, there aren’t that many really good economy. restaurants. And if you do find a decent restaurant, it will be incredibly expensive — much more expen- This year marks an anniversary for you. It’s been sive than a similar place in the West would be. Why 10 years since you came to Moscow. You’re practi- is this the case? It’s unclear to me. cally a Muscovite now! How do you like the city? What inspires you every day when you come to the I feel comfortable in Moscow. I go to Europe often, office? but I always want to return to the Russian capital as quickly as possible. I always come back to Moscow The work we already do jointly with Russian col- like I’m coming back home. Yes, Moscow is chang- leagues, and the work that will be done in the future. ing and it’s changing for the better. There are more Recently, for the first time in 47 years since we first beautiful places where it’s pleasant to spend your established relations, we held an intergovernmental time. My wife and I spend a lot of time walking around meeting in which we identified points of contact in the city. We have our favorite places — the squares various spheres. We identified new projects — in the on Arbat, Sparrow Hills, Fili Park, Prechistenka Street. energy sector, in the study of the Bay of Bengal. For When new metro stations open, we like to visit them. example, I proposed to establish a fishery depart- In Moscow, there are a lot of buildings that speak to ment in our country, where Russian professors would the history of this multicultural city. When you know share their experiences on how best to use water re- the history, you understand the city and its residents sources. I am in favour of Russia transferring more of much better. its knowledge to us, sharing its intellectual potential with us. After all, I myself am the product of this intel- In your opinion, what else needs to be done to im- lectual exchange. I became who I am today thanks to prove the experience of foreigners in Moscow? the knowledge I gained in Russia. ■

32 CAPITAL IDEAS April-June 2019 MOSCOW IN NUMBERS defense manufacturing and research enterprises operating in the field of aviation, space, instrument engineering, radio electronics, and nuclear energy are located in the capital.

metro stations are open for Moscow residents and tourists.

of Moscow’s territory is occupied by green spaces. Green areas account for less than 26% of the total city space in London, 21% in Paris, and less than 4% in Beijing.

organizations conducting research and development operate in the city, along with about 15,700 IT companies, 7,200 major high-tech companies, and around 300 small innovative enterprises, engineering centers, and business incubators.

of all Russian exports are produced in Moscow. Over 200 countries purchase products made in the capital.

April-June 2019 CAPITAL IDEAS 33 MOSCOW IN WORDS

“Winter’s spite is vain for its time has come at last. Knocking at the panes, spring has cast it out and everything’s in turmoil, bustling Winter out, and skylarks in the blueness have taken up the shout.”

Fedor Tyutchev, Russian poet and statesman

“In spring, when the ground thaws out, people seem also to become softer.”

Maxim Gorky, Russian writer

“The city took off its wintery things. The snows turned slobbery. Spring has come again, foolish and loose-tongued as an army cadet.”

Vladimir Mayakovsky, Russian poet

34 CAPITAL IDEAS April-June 2019 “Oh, spring without end and without limit – Without end and without limit a dream! I discover you, life! I accept you! And welcome you with a clang of the shield!”

Alexander Blok, Russian lyrical poet

“Nostalgia in reverse, the longing for yet another strange land, grew especially strong in spring.”

Vladimir Nabokov, Russian novelist, poet, translator and entomologist

“Judging by people, this April day is similar to that human day when spring cries out “yes” and nature agrees, whereupon everything starts to turn green once more.”

Mikhail Prishvin, Russian writer, is mainly known as the poet of Russian nature

April-June 2019 CAPITAL IDEAS 35 Mercedes dealership has opened its doors in Moscow

Dieter Zetsche, Chairman of the Board of Daimler AG and head of the Mer- cedes-Benz Cars division, thanked the city authorities for the opportunity to establish a dealership. “If we can contribute to the revitalization of this part of the city, then it will be a winning situation for everyone. When I say we, I mean our partners, our investors who have invested in this project, our clients,” he added.

The Mercedes dealership located on the former ZIL industrial zone will sell new Mercedеs-Benz cars, pre-owned Mercedes-Benz Certified cars, and pre- owned cars from other brands, as well as offer the full range of maintenance services. The dealership has five floors with a space for Mercedes-Benz cars, an area for pre-owned cars, a showroom, a sales zone, administrative buildings, a parking lot, and a service area. Mercedes dealership has opened neglected and abandoned just a few at the former ZIL industrial zone. years ago,” the Moscow Mayor noted. 22 post have been created for vehicle A Sergey Sobyanin stopped in to maintenance, and up to 60 cars can be look at the company’s new office. The territory of the former Likhachev serviced at the center every day. There plant continues to be transformed. are a lot of areas for interacting with “This is a new center of attraction for “One after another, buildings that were clients with screens and tablet, as well Muscovites and a new point that gives in serious disrepair are being recon- as open spaces. In the future, there will additional income to the city. All this structed and adapted to modern life,” also be pop-up boutiques (temporary together enlivens an old place that was Sergey Sobyanin said. outlets) for various luxury brands. ■

36 CAPITAL IDEAS April-June 2019 Mercedes-Benz has opened a car plant in Russia

cars a year in four different models. Al- most a thousand people will be working at the plant. 500-700 people are already working here now, and the first assembly is already underway, as we can see. About 4 billion rubles will be paid into all levels of the budget system over the next 10 years, and the total amount invested in the plant will reach 19 billion rubles.”

The President looked at the assembly process for E-class sedans, and left his autograph on one of the cars.

The construction of the plant at Esi- povo began in June 2017. Over the next nine years, Daimler plans to invest over €250 million into the manufacturing site. factory that manufactures Mer- “We’re witnessing a very pleasant and The plant will manufacture E-class se- cedes-Benz cars started operating important event for our car market,” dans, and later GLE, GLC and GLS SUVs. Aat the Esipovo industrial park in Vladimir Putin said during his opening the Moscow region. This is the first for- speech, “the opening of a car plant of The opening of a new plant in the eign manufacturing plant that has been yet another major company that is well- Moscow region is a strategic decision launched after the sanctions in 2014. known both domestically and interna- by the global manufacturer that was tionally, Mercedes-Benz. I know that the based on a lot of qualitative and quan- Russian President Vladimir Putin vis- dialogue went on for a long time, and the titative research. The Moscow region is ited the opening ceremony for the company came a long way to make this well-connected in terms of materials plant. Other guests included Chairman investment decision. We want to thank and technology, is close to the capital, of Daimler AG Dieter Zetsche, Deputy our colleagues from Mercedes-Benz that and has a lot of highly qualified staff. Prime Minister Dmitry Kozak, Head of they have made this decision and have The car manufacturing plant will cover the Ministry of Industry and Trade Denis implemented it. It took 1.5 years to build all stages of production, from the body Manturov, and Governor of the Moscow this plant, and I’ve just learned that the shop to the paint shop and the final as- Region Andrey Vorobev. company plans to manufacture 25,000 sembly of the car. ■

April-June 2019 CAPITAL IDEAS 37 New brand: Moscow’s first food mall

An expedition to Ivanovskaya, Vologoda, and Vladimir Oblast was organized in order to find 300,000 rare, large bricks. Moreover, unique cast-iron window frames were restored in the buildings, along with brick arches, lintels, columns, and brick decorative elements. The historical fence has also been cleaned up, retaining two pillars from the late 19th century.

There are currently 75 restaurants and cafes operating in the gastronomic space, which can seat 1,400 people. In the summertime, the number of seats can be doubled and even tripled with the help of summer terraces.

new gastronomic quarter called In 2017, the Miusskoe depot buildings The farmer’s market, which can accom- “Depot. Moscow” has opened in- were leased for 49 years in order to ren- modate 140 stands, sells fresh produce A side the renovated complex of ovate the space and establish a gastro- from just about every region in Russia. the former Miusskoe tram depot. It’s nomic quarter on the premises. During The gastronomic quarter also has souve- located at Lesnaya Ulitsya 20. “The es- the project’s preparatory stages, pro- nir stands, athletic and music clubs, and a tablishment of this kind of gastronomic fessionals in charge of the renovations children’s play center. quarter, the largest one in Europe, is a carefully studied photographs, sketches landmark event because we’ve worked and documents from the archives. The The second floor will house coworking for many years to transform Moscow’s restoration work itself was carried out in spaces for work and holding creative markets into something new, some- 2017-2019. As a result, the complex now meetings. The Depot will also host cul- thing different from what existed be- has the same exterior appearance it did tural and entertainment programs. Visi- fore, when people walked in, made when it was first erected. tors can expect gastronomic festivals their purchases, and left,” Sergey Soby- and fairs, workshops, parties, and con- anin said. “A few years ago, there were only ru- certs. It’s expected that the gastronomic ins here, and this unique monument to quarter will host 5-7,000 people a day on According to him, the capital’s markets 19th century industrial architecture was weekdays, and 10-12,000 people a day have become a new brand that attracts in complete disrepair. I believe we made on the weekends. both Muscovites and the city’s guests. the right decision by handing it over to “There is a big difference between what investors and conducting a complex, dif- “On our end, the city has made improve- we saw 10 years ago or six-seven years ficult restoration project,” Sergey Sobya- ments to the nearby streets, so this is ago – markets where stands were set nin said. About 20,000 square meters of now a unified public space,” the Mayor of up in puddles and dirt and didn’t feature walls have been restored. Moscow said. ■ high-quality products – and what we see today. There have been a lot of qualitative changes,” the Mayor of Moscow added.

In 2016, the depot was recognized as a cultural heritage site – a monument to late 19th century industrial architecture. The total area of the buildings comprises 20 340 square meters. The depot is an example of the so-called brick style characteristic of late 19th century industrial architecture. It features elements of both Russian architecture and Romanesque and Gothic architecture.

38 CAPITAL IDEAS April-June 2019 Developments in the city’s hotel business

ast year, over 23 million tourists visited Moscow. Overall, tourist volumes Lhave increased by 84% since 2010. In 2019, the city plans to open 17 new hotels – this number is four times higher than in 2018. The Moscow government is encouraging investment in hotel construction, taking into account the prospects in tourist volume growth.

“Tourist volumes in Moscow grow every year, and last year 23.5 million people visited our city. There is also the concept of ‘excursion flows’ – these are people who come to Moscow, but don’t stop to spend the night. These tourist numbers comprised a total of 56 million people last year. This is an astronomical figure,” Sergey Sobyanin said. According to him, the capital attracts tourists, including back in June 2018, during the World Cup. Moscow – Vnukovo Airport is the chain’s people from the Central Federal District, Vnukovo International Airport was the fifth hotel in Moscow. It’s also Double- along with people who stop by the city developer for the project, and invest- Tree’s largest property across continental on their way somewhere else. ment volumes totaled over 1.5 billion Europe, as well as the first CIS hotel that rubles. 200 new jobs were created as a is located in an international airport. “The tourism industry is becoming more result. significant for the city’s economy every The total area of the 11-story building is year, and of course it would be impossible “Vnukovo Airport is developing well in over 30,000 square meters. The hotel is to imagine tourism without hotels. Over terms of the hotel business – a fourth located directly across the main entrance the past few years, over 50 quality hotels facility has now been built on airport to Terminal A, and is connected to the have been erected in Moscow,” the Mayor grounds. A high-quality hotel. I hope that terminal with an underground cross- of Moscow added. During a work trip, he this hotel will give additional impetus to way. There are 432 rooms for visitors, visited Vnukovo airport and the Double- the development of tourism and help a quarter of which are equipped to ac- Tree by Hilton Moscow – Vnukovo Airport. provide services to the people traveling commodate guests with disabilities. The through Moscow, through the Vnukovo hotel features a large conference space The DoubleTree by Hilton Moscow – airport,” Sergey Sobyanin noted. with an area of 1,100 square meters. It in- Vnukovo Airport was built cludes nine halls, two of which are multi- less than a year ago. It was The international hotel chain Hilton is the purpose convertible rooms. already hosting visitors back hotel’s operator. DoubleTree by Hilton There is also a business center, a restaurant that specializes in Russian cuisine, and two bars. One of the bars is located on the 11th floor, which features a panoramic view of the airfield. Guests have access to a fitness center with a pool, a Turkish spa, and a gym.

The hotel fits in perfectly with the airport’s infrastructure. There are bus stops nearby, a taxi stop, and an underground station for aeroexpress trains that go to Kievsky Railway Station. The city is currently working on extending the Solnt- sevskaya metro line to the airport, and the new stretch of the metro will begin operations in 2022. ■

April-June 2019 CAPITAL IDEAS 39 Reno Russia IT Solutions Center

Over 755,000 cars have been manufactured at the plant in Moscow in 2013-2018. Every year, around 10 percent of cars manufactured in Moscow are exported. The plant’s key clients are CIS countries. However, this geo- graphic reach is expanding and exports to Persian Gulf states (Saudi Arabia, UAE, Qatar, Oman, Kuwait, Bahrain) are on the rise.

In 2013-2017, the corporation’s investments into the development of the Moscow plant amounted to 14.3 billion n IT Solutions Center from the Reno so on. It’s a major pool that is related rubles. Russia will soon open in the capital. to self-driving cars and artificial intelli- AAn agreement regarding the estab- gence. And the establishment of a cen- In February 2018, the main provisions of lishment of the center was signed by the ter like this is significant for us, because the Cooperation Agreement between Mayor of Moscow Sergey Sobyanin and we’re organizing it jointly with a world- the Government of Moscow and Reno the CEO of Reno Russia Andrey Pankov. famous foreign partner, one of the most Russia were extended for another three important players on the auto market,” years. In the next few years, the enter- “This is a landmark event, because for- the Mayor of Moscow added. prise plans to launch the manufacture of eign manufacturers are not simply man- two new car models (in 2018, the plant ufacturing their products in Moscow, but Reno Russia plans to invest at least presented the Renault Arkana, and mass are establishing intellectual development 350 million rubles into the project to production will begin in 2019). centers that prompt the development establish the IT solutions center. The of new equipment and new projects,” agreement will be in effect for five years. In order to improve product quality Sergey Sobyanin said, “and what’s really and increase the number of manufac- important is that they’re trying to jointly Today, the Moscow Renault factory is a tured cars, the company is upgrading address the challenges of the auto indus- full-cycle enterprise for the manufacture the plant’s manufacturing capacities. try and the city’s problems.” of motor vehicles. It has the highest de- A project for the introduction and use of gree of manufacturing localization (over self-driving vehicles for innovative au- “This means driving on roads, paying for 60 percent) among foreign car manufac- tomated production will also be imple- parking, city services, traffic control, and turers operating in Russia. mented. ■ South Korean Budang Hospital to open a clinic in Skolkovo

ayor of Moscow Sergey Sobya- training and exchange experience in the lishment will be a copy of the hospital in nin has announced that the sphere of medicine. South Korea. M South Korean Seoul National University Bundang Hospital will take The “smart hospital of the future” will Over the course of 10-15 years, around part in the International Medical Clus- launch operations in 2022. The estab- 15 clinics that specialize in treating the most ter at Skolkovo. The hospital’s key ar- severe and common diseases – oncology, eas of focus will be oncology, cardiol- cardiology, orthopedics, traumatology, and ogy, rehabilitation, traumatology and neurology – will appear at the Skolkovo In- orthopaedics, as well as comprehensive ternational Medical Cluster. The cluster will medical check-ups. be able to serve 300,000 patients a year.

Over 26,000 patients will be able the re- The development of a transport infra- ceive treatment there every year. structure will give impetus to the territory’s development as well: the Rublevo- The appearance of one of the world’s Arkhangelskaya metro line will be extend- best medical centers in Russia will en- ed to Skolkovo, which means getting to able healthcare professionals to undergo the cluster will be fast and convenient. ■

40 CAPITAL IDEAS April-June 2019 A historic quarter has been recreated next to the Ulitsya 1905 Goda metro station

The historical buildings will house and educational center, athletic studios, a private kindergarten, an event hall, exhibition spaces, photography studios, cafes, restaurants, and farmer shops. Over a third of the quarter’s area will be occupied by park spaces: a green labyrinth, squares, alleys, a French park with baskets, and two gardens. All public spaces will be open and accessible.

The educational center will house language schools, art studios, public speaking courses, and a space for lectures. he Lucky residential quarter with entails a combination of modern buildings A gym, a 25-meter pool, and a SPA with a total area of 4.5 hectares will be with carefully restored buildings from the a Turkish sauna will occupy a separate T fully complete by 2021. The project beginning of the 20th century. building. The building’s roof will accom- entails the revitalization of the existing modate a garden and a heated pool that quarter, including the preservation of The historical buildings, surrounded by can be used year-round. 7 historical buildings, the construction of green labyrinths of parks and walkways 8 residential buildings, and the establish- made out of red brick, give the quarter The central square with cozy cafes and res- ment of a socio-cultural cluster with its a unique identity and highlight the ar- taurants deserves a special mention. It will own parking lots located across an areas chitectural evolution of the space. The bring together the landmark facilities of the of 1.5 hectares. project will also be complemented by quarter’s infrastructure. Events that are of eight new 13-21 story buildings located interest to the quarter’s residents will take The quarter is located 200 meters away along the perimeter of the historical place here: an ice rink in the winter, and a from the Ulitsya 1905 Goda metro station. developments. There will also be an un- gastronomic festival in the summer. The The total area of the buildings will com- derground parking lot for 850 cars for square also houses an open amphitheatre prise 180,000 square meters. The project residents. for lectures, concerts, and exhibitions. ■ Establishing a National Space Center

oskosmos has announced that the try organizations, design bureaus, and three to four years to complete. This city has begun work on establish- specialized structural subdivisions of timeline includes work on the design Ring a National Space Center at the research and educational organizations. and construction of new buildings for Khrunichev Center in the the center. ■ west of the capital. Work on the center will entail clearing out manufacturing facilities, creating President Vladimir Putin more compact operations for the Khru- called for the establishment nichev Center, the establishment of a of the space center during joint enterprise with the Government of his address to the Federal Moscow, and the design and construc- Assembly on February 27. tion of a new complex of buildings. The The new facility should begin space will bring together over 20,000 operations in January 2020. Roscosmos designers and engineers. The Prime Minister Dmitry Med- total area of the center’s buildings will vedev, head of Roscosmos amount to 250,000 square meters. De- Dmitry Rogozin and Mayor velopment of the district’s infrastructure of Moscow Sergey Sobyanin and the construction of a car and pedes- have been appointed to head trian bridge across the Moscow River, up the project. along with a connection to the metro’s Big Ring Line will also be necessary. The aerospace cluster will house the head divisions of According to the information provid- key rocket and space indus- ed by Roscosmos, the project will take

April-June 2019 CAPITAL IDEAS 41 An industrial park on Varshavskoye Highway

Innovative manufacturing is also set to be established here. The list of manufactured products will include positron emission tomography, single photon electronic computed tomography, a complex for intracavitary and intersti- tial therapy, a remote unit for radiation therapy, and other modern advanced medical equipment.

Large-scale modernization and renovation of the manufacturing and laboratory buildings is scheduled to take place in 2019-2023 within the scope of the project to establish the industrial park. Approximate investment volumes amount to 2.1 billion rubles, and an additional 500 jobs will be created. he city will soon have its first in- meters. It will host scientific research dustrial park, which will be built on and development projects in the spheres The Moscow government will provide Tthe Nizhniye Kotly platform. It’s cur- of natural and technical sciences, in- the industrial park with incentives for rently operating out of the Automation cluding nuclear medicine and radiation the entire duration of the contract. and Technical Physics Research Institute. technology. The industrial park will also The regional part of the income tax produce tools and instruments for mea- will be reduced from 17 to 12.5 percent. The innovative platform will occupy a suring, testing, and navigation. Technical The property tax will be nullified, and space of 8.3 hectares. The total area of the control, trials, and analysis will be anoth- the land tax will be reduced by 99 per- buildings will amount to 80,900 square er sphere the park will specialize in. cent. ■ The first bridge for planes in Russia to open in Sheremetyevo

he third landing and takeoff strip at The bridge has already been tested for The bridge can even handle one of the Sheremetyevo Airports and Russia’s durability with the help of trucks loaded largest and most load-lifting airplanes T first bridge for airplanes will be in- with sand: there were a total of 18 dump in the world – the An-225 Mriya, which troduced this year. trucks weighing 41 tons each. The total weighs about 600 tons. It can also han- weight of all vehicles amounted to about dle the world’s largest passenger airlin- Right now, the airport has two landing 740 tons. er – the Airbus А380. ■ and take-off strips. A third strip, which will be relatively far from the airport’s main terminals, is currently being constructed to increase throughput capacity. It will be located across Sheremetyevo highway and the Klyazma River. In order for planes to cover this distance, a decision was made to create a special pathway at the airport. The construction project, which began in 2014, is already complete. The only thing that’s left is to make the final improvements to the territory. The bridge will be able to accommodate 30 airplanes an hour. It will be 65 meters in width (wider than MKAD), and over 400 meters long. There are special screens above the highway in order to protect cars from the jet wind from the plane’s jet engine.

42 CAPITAL IDEAS April-June 2019 The largest waterpark in Eastern Europe to open at Luzhniki

water park with waves for surfing, a lazy river, pools, a speleotherapy Acave, and unique rides will open its doors at the Luzhiki Palace of Water Sports soon. The park is 70% complete already, and the opening is scheduled to take place this year. The waterpark will be one of the largest of its kind in Rus- sia and Eastern Europe. What makes this park truly unique is its location in the center of Moscow, right next to Voroby- ovy Gory metro station. The complex will have a sliding roof, along with rides that White Water will be the first of their kind in there are 32 filters, ozone treatment sys- don’t exist anywhere else in Russia. Russia. There will be a separate water park tems, and an ultraviolet water purifica- for children, and all rides will be equipped tion system. Moreover, the construction of the new with a automated safety systems. park entails the use of new automation, A transformer roof made out of polycar- water supply, and multimedia system Muscovites will also have a wellness com- bonate covers half of the buildings. The technologies. The water park will be able plex with banyas, a speleotherapy cave, an two sections will split down the middle and to accommodate up to 10,000 people a ice fountain and a shower alley, treatment open above the lazy river. The light and du- day. It will be a space for the whole family rooms, and a sling-chair leisure area. The rable material will last for at least 50 years. located across 6 floors. The complex will entrance to the thermal complex will run have underground parking, a children’s through the water park. The services can The unique wall carvings that adorn the center, a coat check, a shopping center, either be included in the water park ticket pool’s facade have been preserved and restaurants, and a fitness cafe. price (a package deal), or sold separately. made part of the interior. There are also Olympic rings – a reference to the 1980 There will be a total of 9 entertainment A restaurant that seats 250 people and a Olympic Games, during which the Rus- pools in the water park – a wave pool, a lazy cafe that seats 40 will be located on the sian national team won gold medals in river, a swimming pool with an open-air first floor. A self-service express cafe will the old pool. Moreover, the authentic area, a partially outdoor thermal pool, three open on the second floor of the water colonnade has been recreated as well. vitality pools, and two pools for children. park, the fitness cafe will be located inside the thermal and wellness center on the The Luzhniki Olympic Complex will serve There will also be 3 athletic swimming third floor, and a cafe with supplements as Russia’s main athletic park. Renova- pools. The larger pool is 50 meters in length, for athletes will open on the fifth floor tion and construction work is still being with two 25-meter pools on either side. The carried out across its 13 facilities. After waterpark rides created by the The water park is equipped with an ad- the project is complete, 5 million people leading global manufacturer vanced water conditioning system – will visit Luzhniki every year. ■ Gastronomic news

Buro TSUM. This panoramic, and crudo made out of fresh seafood and elegant restaurant on the vegetables, and original dishes fixed with fifth floor of TSUM is the asian spices and herbs. The restaurant’s ideal spot for meetings in Lyon Grill adds and important touch – the center, breakfasts with a it maximizes air circulation so that the view of the Bolshoi Theatre, meat and fish cook faster and come out and romantic dinners featur- even juicier. The restaurant uses the grill ing some of the best wines in to cook octopus, scallops, rack of lamb the world. There is a sepa- and T-bone steak. Starting in June, the rate entrance to the restau- restaurant will open a beautiful open rant from Petrovka Street, or terrace that can seat 150 people and has you can take an elevator up one of the best views of the Bolshoi The- in the center of TSUM. There atre, Petrovka, and Neglinnaya Street in is freshly baked bread, tartars Moscow. ■

April-June 2019 CAPITAL IDEAS 43 SAKHALIN. 88 meters above ground in a new kind of MediterrAsian cuisine. The Moscow’s historical center, a 360 de- restaurant space takes up two floors: gree view of the city’s Stalin buildings, the first floor features a bar, an ice dis- the Garden Ring, Moscow City, and the play with delicacies, an open kitchen Kremlin (Smolenskaya 8, Azimut Mos- and sushi bar, a marble booth, and wine cow Smolenskaya Hotel). There is a wide racks. There are wide grey couches, selection of seafood: shellfish, crabs, large orange chairs, and big tables cov- shrimp, and fish from Russia’s Far East. ered with white tablecloths. The top Russian products in combination with floor, which looks more like a balcony, Mediterranean and Asian dishes and houses another bar area and seating for cooking styles come together to create parties of two to four people. ■

CULT. This wine+kitchen establish- its own bread and is getting ready to ment opened its doors on the second start making its own desserts as well. floor of a manor house on Arbatsky The overall vibe here can be described Pereulok 2/6. The bar specializes in as modern eclecticism, in which the- wine, with prices starting at 350 rub atricality is combined with construc- per glass. The wine list features or- tivism and elements of Scandinavian ange and dessert wines, as well as ci- aesthetics. On Fridays and Saturdays, der. There is also an affordable food the space will host DJs playing vinyl menu with a wide selection of tapas, records. There will also be exhibitions, snacks and hot dishes cooked over an creative evenings, and artist get-to- open fire. Plus, the restaurant bakes gethers. ■

HELLO PEOPLE! This is a new Cof- tions. The dishes include creative takes feemania project located inside the on comfort food, and each selection Depot.Moscow food mall on Lesnaya features just five main ingredients. The Ulitsya 20. Moscow has been ready for chef prepares delicious, healthy meals a fresh format for a long time, and it’s out of vegetables, grains, Russian fish, finally here. In this restaurant, the open and farm meat and poultry. There is a kitchen and bar are part of the seating fresh take on drinks as well: this is the area, erasing the barriers between the first restaurant in Russia that has cof- cooks and guests. The menu features a fee, tea, sparkling wine, aperol, and gin no-frills selection of healthy food op- & tonic on tap. ■

KRABYKUTABY. This restaurant is part sus with a contemporary twist. These of the Depot. Moscow gastronomic two menus don’t exist separately, but project located at Lesnaya Ulitsya 20. come together into a single, harmoni- It’s the largest restaurant in the space, ous symphony. There is crab stuffing located right in the center of the food in the kutaby, chebureki, khinkali, and mall. Just like the name suggests, the even inside the crunchy donuts pre- menu is split up into two main part. pared in accordance with all the key The first part isn’t just over a dozen dif- principles of pastry art. Overall, the ferent kinds of fresh crabs from all over menu features over 30 dishes and 10 the world, but also lobsters, shrimp, different types of crab. and other fish and seafood. The restaurant’s two rooms contain 5 ice displays The restaurant also boasts one of the with crabs and other treasures from largest bars in the capital. The motto? the sea. The Kutaby menu has chebure- Large portion sizes and excellent products ki, khachapuri, khinkali, shawarma, and at affordable prices. The average check other delicious dishes from the Cauca- here amounts to just 1,500 rubles. ■

44 CAPITAL IDEAS April-June 2019 CHINOOK. An original restaurant with that is based on the culinary traditions Native American motifs has opened of northern Native Americans – corn, its doors on Pyatnitskaya Street, just pumpkin, beans, quinoa, sweet pota- a short walk away from Novokuznets- toes, dried meat and, of course, wild kaya metro station. The name comes salmon. In the near future, a gastropub from a special delicacy: in Russia, this with an open kitchen will be commis- is one of the most valuable species of sioned in the basement of the building, salmon, known in America by its Na- which will be dedicated to the culinary tive American name chinook. This wild traditions of southern Native Ameri- fish is the largest salmon species in the cans. The main focus of the menu will world. Wild salmon is shipped to the be Peruvian cuisine, which merged the restaurant from Kamchatka. Chinook traditions of southern Native Ameri- is a combination of two restaurants in cans, Japanese and Chinese cuisines. one space. For now, there is just the There will also be a secret bar with first floor – a neo-bistro style restau- cocktails based on mango, passion fruit, rant with an open kitchen and a menu and other tropical fruits. ■

TARTAR IT! This restaurant on Petro- celery mousse and cream. Kamchatka vka specializes in raw fish and meat, crab salad with tomatoes and avocado fresh oysters and original cocktails. It is served with golden fried funchoza un- serves beef and tuna tartare, as well as der honey and homemade mayonnaise more creative tartare dishes made out (800 rubles), and salmon salad is served of celery or Crimean oysters. There are with cucumbers on avocado mousse ten variations of the main dish on the with green olive oil (590 rubles). The menu, which will be changed regularly. space features high, early 20th centu- Beef tartare is served with quail egg ry wooden ceilings and is designed for yolk mousse and horseradish meringue, 30 seats. There is also a bar area com- which is prepared with the help of ni- bined with an open kitchen. One of the trogen emulsion. Tuna tartare is served walls is made completely out glass. In with Kumato tomatoes guacamole and the summer, the restaurant will remove parmesan. The Crimean oyster tartare it to have an open space. The wine is prepared with mango, avocado and list features both Old World and New blackberry caviar. Vegetable tartare is World selections starting at 270 rub per made from celery root, Conkasse to- glass, and the bar’s specialty is original matoes, and Enoki mushrooms with cocktails. ■

AVOCADO QUEEN. This dishes. There are also three different restaurant features healthy kinds of pasta (from 620 rub.), grilled comfort food, original cock- meat (from 690 rub.), soups (from 390 tails, and light interiors (Ma- rub), burrata with persimmon (790 rub.), laya Bronnaya Ulitsya 20, and stracciatella with broccoli and date bldg.1). The key ingredient dressing (850 rub.). There is also a wide here is avocado, which has selection of smoothies, featuring com- quickly become popular in binations like basil and dates, avocado Moscow. It’s included in 28 and chia seeds, aloe juice and raspberry, dishes, which is almost two- and pumpkin with pear and maple syrup thirds of the entire menu. (there are five kinds of smoothies from Different kinds of avocados 200 rub.). This restaurant is an equally are shipped here from the good fit for fans of healthy food, people Dominican Republic, South with a sweet tooth, and meat and wine Africa, Mexico, Peru, and Co- loves. The restaurant opens at 9.00am lumbia. But the menu isn’t and features an original breakfast selec- limited to avocado-based tion from chef Glen Ballis. ■

April-June 2019 CAPITAL IDEAS 45 NOTHING VENTURED Oleg Prozorov: The most important thing is for business people to trust each other

r. Prozorov, when we talk about Rus- Though relations between our countries were estab- sian-Belgian relations, everybody re- lished long before that. Back in the 7th-8th centuries, members 1717, when Peter the Great Flemish merchants came to Veliky Novgorod, where visited several Belgian cities on his they met and traded with Russian merchants. Our way to Paris — Brussels, Liege and relations also developed within the scope of the Han- Spa,M where he learned different trades ... seatic League. Prior to the Revolution of 1917, Belgian business was widely represented in Russia, and there That’s right, this visit played an important role in the were many Belgian enterprises in the country. The gi- relations between our countries. No wonder Bel- ant SOLVAY alone owned several factories in Russia. gium has two monuments to Peter the Great. Two By the way, SOLVAY is still active in our country to years ago, Belgians celebrated the 300 year anni- this day. Not long ago, together with the Russian pet- versary since the visit from the famous Russian tsar. rochemical concern Sibur, they built Europe's largest

46 CAPITAL IDEAS April-June 2019 The most important thing is for business people to trust each other If the Belgian-Luxembourg Chamber of Commerce didn’t already have an office in Moscow, it would definitely need to be established. It plays an incredibly important role for our countries’ business communities. “Our goal is to ensure that every member of the Chamber could benefit as much as possible from the networking opportunities we provide,” said Oleg PROZOROV, the Director General of the Belgian-Luxembourg Chamber of Commerce in Russia, during his conversation with the Editor-in-Chief of Capital Ideas Sergo Kukhianidze.

PVC plant near Nizhny Novgorod. 1.5 billion euros was invested in the project.

What year did the Belgian-Luxembourg Chamber of Commerce open an office in Moscow, and why?

We registered in Moscow six years ago at the request of the business community. The thing is that back then there was already a relatively big Belgian-Lux- embourg business community in Russia. There were about 350 companies operating in the country, and they had already build 50 plants. Business representatives wanted to take the initiative to establish a chamber in Russia, in Moscow. Before it appeared in the Russian capital, all of our joint events were held either in Brussels or in Luxembourg. If we came to Moscow, it was only for a short period of time to take part in forums, seminars, congresses, and exhibitions.

Not all companies that have a presence in Russia are investors. Some offer consulting services, some are dealerships… in spite of the sanctions, 2-3 companies Statue of Peter the Great from Belgium and Luxembourg localize their manu- in Antwerp

April-June 2019 CAPITAL IDEAS 47 NOTHING VENTURED

facturing in Russia every year, and those who are been a people who are interested in what happens already here expand their capacities. Aside from the in other countries, and they love to travel. It should above-mentioned SOLVAY, there are also companies come as no surprise that Belgians work all over the like BEKAERT, PURATOS, GUARDIAN, and ASTRON world now, including in Russia. The same can be said here. about people from Luxembourg.

Last year, a representative delegation from Ant- At the end of March, the Netherlands joined the werp visited Moscow and Saint Petersburg... Belgian-Luxembourg Chamber of Commerce, right? Yes, it included 150 business representatives. It was headed up by the Mayor of Antwerp Bart De Wever. Not quite right, the Netherlands didn’t join our cham- Antwerp, the third port in Europe, has had strong ties ber. (smiles) The Netherlands is, after all, a country with Russia for a long time. For example, in the Soviet that is part of the Benelux customs, political and eco- era, back in the 1980s, the Russian Ladas were com- nomic union, which has just celebrated its 75th anni- pleted in Antwerp. Standard Ladas were brought from versary. Dutch companies, which are now applying for Togliatti to the factory in Antwerp, where they were membership, have decided to join our Belgian-Lux- disassembled and equipped with automatic transmis- embourg business community. We are happy to work sions… Basically, everything in these Soviet cars was with them. Dutch business is widely represented in redone by Western standards, and from here they Russia. But we have also never been closed off to the were transported to other parts of the world. For ex- Dutch. It just so happened that, since its founding, the ample, the Lada-Samara was transformed into a fairly Chamber was focused primarily on the Belgian-Lux- decent convertible. In the 90s, there was even a spe- embourg cooperation. In general, our goal is to ensure cial market in Antwerp, where our compatriots, who that every member of the Chamber could benefit as ended up in Belgium for whatever reason, sold radio much as possible from the networking opportunities equipment, clothes, and carpets. Their clients were we provide. mostly Soviet sailors. Can you tell us about your networking? Today, Antwerp has a special relationship with Rus- sia. Suffice it to say that the Russian mining company I’ll say right away that we are a chamber of com- Alrosa is the main partner of the Diamond Exchange merce, a non-profit organization. We don’t do busi- located in Antwerp. ness ourselves and we don’t do business for anyone else. We try to present any company — from Luxem- You know, I have been living and working in Belgium bourg, Belgium, the Netherlands, as well as Russian and Luxembourg for a long time, and can say that companies that come to Benelux countries — the Russia is not some kind of mysterious country for opportunity to network with reliable partners. We Belgians. And this isn’t just because of the examples have our own reputation rating. Our goal is to be a I gave you earlier. Since the olden days, Belgians have community where business people can trust each www.messebauten.ch

48 CAPITAL IDEAS April-June 2019 www.sibur.photas.ru other. If we see that someone comes to the Cham- recently went to Western Siberia for the first time, ber and they don’t have serious intentions, we termi- because companies from Belgium and Luxembourg nate their membership. Unfortunately, this recently expressed the desire to go there. We also provide visa happened with a Russian company that turned out support, helping people get business visas. And I want to be unreliable. to point out that we don’t do lobbying or consulting. We think our role is much broader in scope. At the end We also protect and promote member interests. For of the day, members of our Chamber work in different example, some companies are interested in enter- sectors and, if the need arises, we provide a conve- ing a specific Russian region, and we help them do nient platform for negotiations. this. We make sure that they don’t end up at the train station at Khanty-Mansiysk with all of their luggage, So if a foreign company from Belgium, Luxembourg, not knowing where to go or whom to talk to. Out of or the Netherlands wants to come to Russia, can it the 80 regions in Russia, we have already been to 30, bypass your Chamber? In other words, can they en- and we have visited some of them several times. Our ter the Russian market independently? members are already working in many regions. We We are a voluntary organization, and we don’t force anybody to come to us. Yes, there are companies that try to come to come to Russia without our help. But sooner or later they still need assistance from our Chamber. It’s good if we can still do something to help, because more often than not they’re already in a tough situation by the time this happens. I’ve wit- nessed this happen many times in my 6 years of experience of heading up the Belgian-Luxembourg Cham- ber of Commerce in Russia.

You see, companies sometimes encounter challenging situations where nobody can help except for us. Even their embassies can’t help. We enter into negotiations with the authorities, with federal and regional departments, ministries, and looking for reasonable ways out of the situation. So we always recommend that companies operate without corruption schemes and comply with all laws.

Our motto is “old ways won’t open new doors”… ■ www.vk.com

April-June 2019 CAPITAL IDEAS 49 around the world

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50 CAPITAL IDEAS April-June 2019 NOTHING VENTURED Mats Friberg: We’re boosting investment in manufacturing localization It’s rare to hear good news from the business sector these days. More and more often, financial news feature threatening words like “crisis,” “recession,” and “slowdown in growth.” But it turns out there are pleasant exceptions as well.

ou have to be flexible and know how to change. This is cus to the points of economic growth, ramped up local manu- perhaps the main conclusion that can be drawn from facturing, and modernized their business models. Obtaining a everything the head of 3M talked about during the certificate regarding 3M’s status as a Russian manufacturer of meeting at a Moscow restaurant on Prechistenskaya respiratory protective equipment from the Russian Ministry of Embankment. “We have to shift the focus of our activi- Industry and Trade was an important step. Yties,” said Mats Friberg, who has been Managing Director of 3M Russia CIS since December 2017. The company really has had a lot of success in manufacturing protective equipment recently. Suffice it to day that not so According to him, there has been a slowdown in global eco- long ago, the respirators were merely assembled in Russia. The nomic growth. In particular, there is a drop on the Chinese and components were shipped from other countries, such as the UK European markets, which impacts Russia — according to fore- or Brazil. Now, all the necessary components are also manu- casts, GDP growth will remain around 1.4% in 2019. The drop in factured here. And while the respirators were first made for oil prices also continues to put pressure on the ruble. In spite of the domestic market, they’re now sold abroad as well. Among these inhibiting factors, 3M Russia CIS wrapped up 2018 with other markets, they are supplied to France, Italy, and Eastern good results. The company revised their investment plans, and European countries. is expanding localization in Russia. Aside from Russia, Kazakhstan and Belarus are considered pri- Last year, 3M announced that it will be investing $5.5 million in ority markets for the company. In these countries, 3M is plan- local manufacturing in 2018 and 2019. In fact, investment vol- ning to increase its presence across sectors like oil and gas, umes in 2018 totaled $4.9 million. They were directed toward mining, and the food industry. Uzbekistan and the Transcauca- the expansion of manufacturing capacities at a factory in Volo- sian countries of Armenia and Azerbaijan are also of consider- kolamsk outside of Moscow, as well as the manufacturing fa- able interest to the company. According to 3M forecasts, sales cilities located in the Alabuga Special Economic Zone, which is growth in these countries can even double the results n Russia. in Tatarstan. Now, 3M has announced the expansion of manufacturing facilities in 2019, and additional investments totaling 3M sees the development of local manufacturing and further $6.5 million. modernization as some of the driving forces behind their successful growth in Russia. The company will continue to invest Overall, last year was quite successful for the company in Rus- into expanding its presence and manufacturing capacities in Rus- sia and CIS — their sales grew by 13.3%. In spite of a general sia. Among other projects, 3M plans to expand the range of anti- slowdown in Russian manufacturing, all of the company’s areas corrosive coatings for gas pipelines that increase the efficiency of of business activity grew by 4-20% because 3M shifted its fo- gas transportation, as well as a protective film for cars. ■

April-June 2019 CAPITAL IDEAS 51 NOTHING VENTURED Blue elephants in Russia Every year, about 7,000 - 8,000 million tons of cargo are transported by road vehicles in Russia. The German company Schmitz Cargobull AG makes a significant contribution to this volume. The company’s logo, which features a blue elephant, started appearing on Russian roads a long time ago. Although judging by the name of this leading European manufacturer of trailers and bodies with a turnover of over 2 billion euros, a bull would also be a good representation of the brand — this was the plan in the very beginning. But the owners of the company, which manufactures over 65,000 vehicles a year, decided that the elephant was a more powerful animal. Mile Mishevski, the CEO of Schmitz Cargobull Russland, talked to Capital Ideas about the German blue elephants in Russia.

Mr. Mishevski, German companies in Russia are usually headed up by either Germans or Russians, but you were born in Macedonia. Could you tell us how you became the CEO of Schmitz Cargobull in Russia?

This story started over 20 years ago. The thing is that I have been working in the transport sector for a quarter of a century. At first, I was with DAF Trucks in Macedonia. We worked closely with other transportation companies, including Schmitz Cargo- bull, and our paths happened to cross. I worked on markets like Macedonia, Romania, Serbia, Slovenia, Turkey, Moldova, and Russia. That’s how I ended up as the CEO of Schmitz Cargobull in Russia. But it’s worth pointing out that I am also the Direc- tor of Sales in Kazakhstan, Uzbekistan, and adjacent regions, including the Caucasus region.

52 CAPITAL IDEAS April-June 2019 April-June 2019 CAPITAL IDEAS 53 NOTHING VENTURED

Schmitz Cargobull first appeared on the Russian market What place does Schmitz Cargobull Russland occupy on the back during the Soviet Union. Russian market of trailer vehicles? You have competitors, both foreign and Russian, right? Yes, that’s exactly right. According to the numbers, we are in the lead, including in terms This year, the Russian branch is celebrating its 20th anniver- of the number of trailers that are on the market right now. Suf- sary. What brought the blue elephants to Russia? fice it to say that there are currently over 120,000 trailers manufactured by Schmitz Cargobull on the roads in Russia. Schmitz, which is the shorter version of our company’s name, came to Russia primarily because it’s becoming a very big and As we know, Russia responded to the Western sanctions re- important market. And of course, the fact that this market is lated to the conflict in Ukraine by halting imports of a num- constantly growing in spite of its fluctuations, also played a ma- ber of food products from the EU. This, along with the low jor role in our decision. ruble and an economy in crisis, must have affected cargo volumes. Has the demand for Schmitz Cargobull vehicles in Who was the company’s first client in the USSR and when Russia dropped because of this? were the first vehicles shipped here? Yes. Of course, the sanctions are having a serious impact on our Our first order of refrigerators came from the Soviet company sales. But we are in the same situation as all other manufactur- Sovtransavto over 40 years ago, back in 1978. And it’s worth ers. In any case, the sanctions are having a negative impact on noting that these were the first shipments of technology like the market. this to the USSR at that point in time. Are we talking about significant losses? The establishment of Schmitz Cargobull Russland, head- quartered in Moscow, was an important step in the devel- We’re not talking about a major drop on the market, but it’s still opment of the company’s cooperation with Russia. Why was noticeable and tangible. We haven’t wrapped up our fiscal year it established and how many employees do you currently yet — it’s at the end of April, and we’ll know the exact numbers have? then.

Schmitz currently has two locations where we carry out our What is the current trend: is the number of orders growing operations in Russia. One of them is in the village of Dukhanino or shrinking? It seems that economic cooperation between outside of Moscow, and that’s where the company’s manufac- Germany and Russia has been a bit better recently, and Ger- turing facilities are located. This is where we assemble vehicles, man companies are actively investing in Russia again... store and service used trailers and have warehouse. It’s difficult to say for sure. The market isn’t following a linear The other location is our head office in Moscow, which opened growth path — it goes up, then comes back down, for example, in 1999. We currently have a total of 73 employees in Russia. the sales volumes dropped to around 5,000 vehicles after 2014. Then, they climbed to 11,000-12,000 units. Over the past two Are these primarily Russian citizens, or are there foreigners years, we’ve seen a more-or-less stable situation, but we were as well? not at the very peak: sales remained at around 11-12,000 units, maybe a bit more. We have foreigners as well — me! (laughs) We’re monitoring the developments, but all suppliers work- What kinds of vehicles do you offer in Russia? ing in Russia are doing this, not just Schmitz. It’s difficult to make specific conclusions right now. Still, we can say that We offer the full range of products our company manufactures. compared to two years ago, when major Russian companies Our three key products are reefers, curtainsiders and tippers. were placing very good orders, the situation has changed a bit, and not for the better. These companies used to pur- Do you provide the same products in other countries, or are chase our products in large batches, but now they are wait- your vehicles in Russia modified for the local market? ing things out and making smaller, incremental purchases gradually. There are no special modifications: we’re talking about trailers that is the same for Russia and for the West. The only differences What is Russia’s share of the total Schmitz Cargobull turn- are in the requirements imposed by the laws in different countries. over? This concerns the length of the trailers. Because of the differences in legislation, we can offer products in Russia that we can’t offer Let’s wait until the end of the fiscal year. Last year, in 2017/2018, to our clients in Europe. For example, in Russia we offer and sell we placed second in terms of order volumes. It was a historical trailers that are 16.8 meters long. The dump trucks that we supply achievement for us. That year was our best one in terms of sup- to the Russian market have enhanced suspensions. ply volumes to our customers.

54 CAPITAL IDEAS April-June 2019 www.cargobull.com

Schmitz Cargobull has ambitious plans for the current percent of our sales, while small and medium-sized businesses 2018/2019 financial year: the manufacture of over 67,000 units account for the other 50. of equipment and a total turnover of 2.4 billion euros. How many of these trailers could be sold on the Russian market? Obviously, not every small enterprise is able to fully pay for the purchase of, say, a refers or a curtainsiders. Does Schmitz Yes, you have the right numbers. In terms of sales in the RF, Cargobull Russland have a financing program for the pur- they could comprise about 6 percent. chase of vehicles, is there an installment sales practice?

The blue elephants have their own manufacturing facilities Yes, we offer these options. We have a subsidiary — the finan- in Russia. When were they established, where are they lo- cial company Schmitz Cargobull Finance, which offers leasing. cated, and what do they make? What are your manufactur- We offer renting with the option to subsequently purchase our ing volumes like? trailers. Clients can also get installment plans to purchase our products. The company’s first plant in Russia opened in 2013, in Leningrad Oblast. Then, in 2016, the plant was relocated to the village of How many sales centers does the company have in Russia, Dukhanino, in Moscow Oblast. This is where the assembly of and where do they operate? curtainsiders and tipper trailers takes place. The total area of the assembly shop is 1,200 square meters. We have ten sales centers like this. It’s a fairly extensive network that operates, among other locations, in Siberia and in the How many Russian transportation companies are there Volga region. We cover the whole territory of Russia. among your clients? What are some of the big names? What is the situation with service and maintenance for your The more significant ones are the Magnit supermarket chain, semi-trailers in Russia? Who does this? Х5 Retail Group — a leading retailer, the Lenta hypermarket chain, the transportation company Delovye Linii, and the online At the moment, we have over 90 authorized service partners retailer Wildberries. servicing our equipment at our disposal, which covers the entire territory of the Russian Federation. In addition, in we have a Do small and medium-sized Russian enterprises purchase warehouse of spare parts in Moscow Oblast, and we ship parts your products as well? to our regional offices from there.

Yes, of course. We try to sell our trailers to large companies in Do you live in Moscow permanently or do you come here for big batches, but we also sell to smaller clients, you could say we work trips? Do you like the city? sell retail. Our sales infrastructure requires managers that operate in different regions in Russia. This is done to ensure that Yes, I live here with my family. I already feel like an active city we’re closer to our retail customer. So there is about a fifty- resident (laughs). My children go to school in Moscow. And I re- fifty split for our products: big corporate clients account for 50 ally like the Russian capital. ■

April-June 2019 CAPITAL IDEAS 55 NOTHING VENTURED German business isn’t giving up

The business climate in Russia is getting worse as the volatile ruble and sanctions take a toll on the country’s economy, but this hasn’t discouraged German businessmen.

his was the conclusion drawn from the survey of German Also, a significant number of respondents said that they were companies operating in Russia regarding prospects in able to increase their turnover in 2018. “In spite of the chal- 2019, conducted by the German Committee on Eastern lenges, German companies have definitely demonstrated that European Economic Relations and the Russian-German they’re committed to the Russian market,” he said, “They like Chamber of Commerce. A total of 168 German compa- working in Russia, and plan to keep investing.” Tnies that employ almost 142,000 people in Russia and generated a turnover of 23 billion euros in 2018 took part in the survey. Tired of sanctions According to the data, about 60 percent of survey participants fear that the Russian economy will either stagnate or take a Everybody is tired of the US sanctions, but they remain in place turn for the worse this year. According to Michael Harms, Ex- for now and present many challenges for German companies ecutive Director of the German Committee on Eastern Euro- doing business in Russia. According to the results, only a third pean Economic Relations, these fears are largely tied to the fact of all companies who participated in the survey said that they that “the possible increase in political tensions and the threat of have not been directly or indirectly impacted by the restrictions. new US sanctions are causing uncertainty among the business But the sanctions don’t scare everyone. “Only a small number community.” At the same time, he points out that the potential of companies are considering cutting back on their activities in of the Russian economy remains extremely high. “If the conflict Russia. And about a third are planning to move forward and with the West is finally resolved and small and medium-sized expand their business here,” Michael Harms said. business starts developing,” he says, “there will be a rapid boom in the Russian economy.” According to German companies working in Russia, the sanctions aren’t producing the results politicians hoped to achieve. In any case, the German companies doing business in Russia are “This is why it’s time for Russia and Europe to jointly work on happy with the results. According to Matthias Schepp, Chair- exiting the sanctions regime,” Matthias Schepp said. He also man of the Russian-German Chamber of Commerce, “87 per- noted that the US sanctions “definitely seek to ensure the US cent of companies responded that their financial situation in has an economic advantage at the expense of German and Eu- Russia is somewhere between ‘satisfactory’ and ‘very good.’” ropean companies.”

56 CAPITAL IDEAS April-June 2019 www.russlandmeister.ru/de

Michael Harms also added that “the discussions about sanctions against Russia are another reason. The growing num- tions that are underway in the US are in many ways impeding” ber of protection barriers, which have appeared for foreign the development of economic relations with Russia. More- business in Russia in the context of import substitution poli- over, he lamented that the US sanctions “aren’t discussed with cies, was third on the list. Just 36 percent of the companies the European Union,” pointing out that the EU is discussing surveyed reported that they hadn’t felt the effects of these setting up a payment system that’s independent of the dol- policies. lar in order to avoid US sanctions against Iran in the financial sector. “Two thirds of the companies surveyed have a positive attitude toward this idea and applying it to trade with Russia,” Visa-free and cooperation with Eurasian Michael Harms says, “If we don’t want the US to control the EU’s foreign trade, we need to start thinking in this direction. Economic Union Most companies reported that political relations between Ger- many and Russia are undergoing a period of stagnation, and Exports to Russia have slowed down under these conditions direct contact between Germans and Russians are a stabilizing factor and a key investment into our Although export volumes from Russia to Germany are growing, future. “The introduction of a visa-free regime for students, for there has been a reduction in exports from Germany to Russia. young people under 25, could be a step in the right direction,” “This is the result, among other things, of the low ruble, which Matthias Schepp said. is making German products more expensive,” Michael Harms explained. He lamented the fact that “the prospects for exports Closer cooperation between the EU and the Eurasian Economic are worse for 2019: just 30 percent of the companies surveyed Union (EAEU) is another important issue for business. ‘It’s very expect an increase in exports this year, and the majority are ex- important for the European commission intensifies its relations pecting stagnation or a decline in export volumes.” with the EAEU. Even the smallest bit of progress toward har- monizing out norms, standards, and certification processes has Two thirds of the companies surveyed think the main prob- a direct positive impact on business, on business everywhere in lem is the low ruble. About half think the US and EU sanc- Europe,” Michael Harms concluded. ■

April-June 2019 CAPITAL IDEAS 57 NOTHING VENTURED Romain Froquet: I would be happy to paint all of Moscow! This young artist from Paris has been in Moscow three times over the past three years, and was delighted by his visits. So why does the 36-year-old Frenchman like our city? And how does an artist see the Russian capital? How much has Moscow changed and has it improved from an aesthetic perspective? What’s most impressive to foreigners?

n March 2017, Vesna Shopping Mall on New Arbat Avenue was completely transformed. Muscovites and guests of the capital couldn’t walk by without doing a double take. Romain Froquet, who had been invited to work on the project from france, Iwas in charge of the building’s interior and exterior. Romain was born in 1982, and currently lives and works in Paris. He regularly participates in different exhibitions and art projects all over the world. But Ro- main is no ordinary artist. He does more than work on paintings in his favorite abstract style in his workshop, spending whole weeks or even months in front of an easel. He also does graffiti and street art on streets, squares, playgrounds, and department stores. If he had the opportunity, he was would paint the whole city, filling even the greyest parts of it with color and joy. This shows the extent of his incredible creative freedom, which knows no bounds.

“This my third visit to the Russian capital,” Romain smiles as he talks to journalists during a small press conference, “The first time, I came because I had my own personal exhibition at Askeri Gallery, and the opening was a very special day for me. The second time, I came for a wonderful project on New Arbat. The third time was for the opening of another personal exhibition in Moscow. I’m really grateful to the owner of the gallery, Polina Askeri — she was the one who invited me to Moscow. Polina is a very positive

58 CAPITAL IDEAS April-June 2019

NOTHING VENTURED

person. She believes in my work, which is especially on my third visit I saw Moscow with my own eyes important for an artist.” and truly got a feel for the city. So what was I impressed by? The scale! It’s an incredibly huge city, and Romain has a unique background in working on shop- it’s very energetic. It doesn’t stay in place, it’s always ping centers. In 2015, he painted the ceiling lamps for moving, and you feel this insane rhythm immediately. the Parisian department store Printemps, which was As an artist, I really liked the evening lighting for the celebrating its 150th anniversary. The store was plan- buildings and streets. The way the buildings all have ning for the change to be temporary, but the lamps fit different lighting is fantastic! The center is the most so well with the interiors management decided to keep impressive part! But you won’t believe what surprised them. Froquet was very happy when he for an offer to me the most! It’s the intersections and underground work on Vesna in Moscow after Printemps. “This was crossways — I’ve never seen anything like it. There especially interesting, because Printemps is one of the aren’t a lot of underground crossways in Paris, and oldest department stores, which opened in 1864 and they’re usually connected to a metro entrance. But has the corresponding interiors, while Vesna looks very here, underground crossways are often there just for modern and it’s a fairly new shopping space that has a people to cross the street. I walked in the city by my- lot of space and is filled with light,” he said, “When I first self for a long time, and realized that I want to come came to this store with its multitude of glass displays, I back to Moscow again and again. I’ve only managed had an association with a greenhouse that contains a to walk in the center, saw the Kremlin and the Red lot of blossoming vegetation. Plus, wood is a symbol of Square, visited the Pushkin Museum of Fine Arts and the cyclical nature of human existence.” the Moscow Museum of Modern Art on Gogol Boule- vard. But I dream of visiting other places. For example, Romain managed to transform the Vesna’s interiors the Maxim Gorky Apartment-Museum on Bolshaya and create an conceptual art space on every floor. A Nikitskaya, which is located in the beautiful manor true garden blossomed here thanks to his work. Fro- house built by the famous architect Fyodor Schechtel. quet worked with a lot of enthusiasm, and really came You could say I’m a big fan of this writer. But unfor- to appreciate the Russian capital. “I really like Mos- tunately, the Gorky museum was closed for a holiday cow and its residents. I get the feeling that Russians the day I went. So I have a goal — to definitely go and French people are very similar. How? In the way there next time I’m in Moscow. And of course, I would they perceive beauty. I’m impressed that Russians are like to work in your city again. Right now, I’m paint- open to the world, but at the same time don’t lose ing a huge children’s playground in Paris — it’s about their identity. I learned about Moscow step-by-step. 400 square meters — and you’ll be able to see it from The first time, my visit was very short, just a couple of space. I like projects like this, because when an artist’s days, and I only saw the city from outside a car win- work is seen by not just people who go to the exhibi- dow. The second time I was busy with work, com- tion, but millions of passers-by on the street, this fills pletely consumed by my project, and didn’t get a you with energy and the feeling that your art brings chance to walk along the streets much. Then finally value to the city.” ■

60 CAPITAL IDEAS April-June 2019 useful info

Chamber of commerce and industry of the Russian Federation Address: 109012 Moscow, St. Ilyinka, 6/1, bldg. 1 Ph: +7 (495) 620 00 09 Fax: +7 (495) 620 03 60 E-mail: [email protected] www.tpprf.ru/en/

Department for Work with Foreign Legal Entities and their Representative Offices Address: 109012 Moscow, St. Ilyinka, 6/1, bldg. 1 Ph: +7 (495) 620 02 14, 620 02 22 Fax: +7 (495) 620 01 70 E-mail: [email protected] www.tpprf.ru

Moscow Chamber of commerce and industry Address: 107031, Moscow, St. Petrovka, 15, bldg. 1. Ph: +7 (499) 940 33 16, +7 (499) 940 33 25, +7 (495) 276 12 19 E-mail: [email protected] www.mostpp.ru

Main Administration for Service to the Diplomatic Corps (GlavUpDK) Address: 20 Prechistinka Street, Moscow, 119034 Ph: +7 (495) 637 23 26 Fax: +7 (495) 637 31 71 E-mail: [email protected] www.updk.ru

April-June 2019 CAPITAL IDEAS 61 useful info

City Government Address: Voznesensky Per., 21, Moscow, 125032 Ph: +7 (495) 633-51-90 www.mos.ru

Moscow Investment Portal Address: 119019, Moscow, Novy Arbat St., 11, bldg. 1 E-mail: [email protected] www.investmoscow.ru

Moscow Innovation Development Center Address: Voznesensky Per., 22, Moscow, 125009 Business Center Usadba Ph: +7 (499) 225-92-52 http://innoagency.ru

Business Protection Headquarters Address: Voznesensky Per., 22 (5th floor), Moscow, 125009 Business Center Usadba Ph: +7 (495) 620-20-45 http://shtab.mos.ru

Department for Competition Policy Address: 12 Pechatnikov Pereylok, Moscow, 107045 Ph: +7 (495) 957-99-31, +7 (495) 957-99-77 Fax: +7 (495) 957 94 70 E-mail: [email protected] www.mos.ru/tender/

62 CAPITAL IDEAS April-June 2019 NOTHING VENTURED

What the heads of international companies who work in Russia think about www.gaidarforum.ru Business in Russia is a challenge, but a positive one

he case of 51-year-old Michael Calvey shocked the country’s territory, and its population of 145 million people. They international business community in Russia. Accord- noted that, although Russians are not as mobile as Americans ing to experts, it once again illustrated that doing or Europeans for historical reasons, overall they are competent business in Russia is difficult. It seems like the whole people who are ready to learn and grow professionally. Cesare business community immediately jumped to the Biggiogera, CEO of Prysmian Group in Russia, told an interesting TAmerican investor’s defense. For example, here is what Boris story with a smile. He recalled that when he came to to Russia, Titov, Presidential Commissioner for Entrepreneurs' Rights, he didn’t speak a single word of Russian and this made communi- told Euronews right after Michael Calvey’s arrest in Febru- cating with his colleagues difficult. So Cesare promised everyone ary: “There is no damage to society here. There is damage that he would learn Russian in four years. He told his colleagues done to one of the parties in the conflict. There is a strictly that he would be wishing them happy New Year in Russian four corporate conflict…”. According to Chairman of the Accounts years later. “Though by the time I learned Russian, many of my Chamber Alexei Kudrin, the arrest of Baring Vostok’s founder Russian colleagues, even the older ones, spoke English,” he said. is an “emergency situation” for the Russian economy. “I want to point out that the President’s directive to avoid arrest for Everybody also agreed that another advantage of doing busi- economic crimes has been violated,” Kudrin wrote on Twitter, ness in Russia is that there is less bureaucratic red tape, which “I consider this situation to be an emergency for our economy.” had always been a major stumbling block for entrepreneurship. Still, there are cons as well. Albert Grigoryan, Head of Rep- Be that as it may, regardless of the challenges that come with resentative Office of ENIE in Russia, said that “there must be doing business in Russia, the majority of foreign entrepreneurs more protection for foreign investors. They must be sure that are convinced it’s worth it. “Yes, it’s a challenge, but a positive if problems come up, they can be settled in court.” Another con one,” said Juergen Koenig, President, CEO of Merck in Russia is Russia’s economic instability. Johan Vanderplaetse, Senior at the Gaidar Forum in the beginning of the year. This point Vice-President and President for Russia and CIS at Schneider of view was shared by every single participant of the “Interna- Electric, urged to avoid saving money on education: “otherwise, tional Company in Russia: CEO’s view” discussion. Antonio Lin- you’ll lose your future.” He also said that there needs to be a ares, Director General at Roca Group in Russia and the CIS, said better approach to manufacturing localization, which is what that there is no other place on earth he would like to work in many foreign companies in Russia are currently doing. “There more than Russia. “Look, for example, at the kind of grandiose is no reason to force us to manufacture all of the parts in Rus- construction that’s happening in Moscow, although there is still sia,” Johan Vanderplaetse said, “It’s difficult to do this right now. room for improvement in the regions,” he said. Don’t forget that we still live in a global economy.” At the end of the discussion, all of the speakers said that even though people When speaking of the pros, all the of the speakers focused pri- know more about Russia after the World Cup, a lot still has to marily on the vast opportunities of the Russian market, the be done to improve Moscow’s image throughout the world. ■

April-June 2019 CAPITAL IDEAS 63 TECH & INNOVATIONS

Smart city: real estate for living well Imagine a residential building where all appliances, heating, and lighting are controlled through a mobile app or a remote control system. And the smart devices are also in sync with each other, complementing and compensating for each other activities. Sounds like fantasy? It’s the reality in Moscow!

t’s no surprise that Moscow ended up safe homes. In Moscow, all of this either integral part of modern life.” Alexey Bold- on the list of top 5 of the world’s major already exists or is being created. For ex- in, Vice President and Director of Sales & cities and agglomerations in terms of ample, according to Marina Lubelskaya, Marketing at Leader Invest, expressed readiness to introduce new technolo- First Deputy General Director at Krost, similar thoughts — he talked about digi- gies. Things that seemed impossible it’s time to start talking about “a new tal development and the types of smart Inot so long ago are becoming reality in Moscow style of architecture,” thanks to services the developer is ready to offer to the Russian capital. This was the main which “our favorite city will become the the new generation. concept behind the conference held by most beautiful in the world.” “Columns, the Moscow Business Club — the theme stucco molding, bionic forms, mosaics During the conference, the participants of the conference was “Smart City: Real — everything that was previously only were introduced to the Iskra-Park dis- Estate for Living.” The conference gath- available for luxury housing and required trict, which features all the advantages ered top managers, the heads of major work by sculptors can be mass produced of a modern city district. It includes a real estate companies and banks, and out of modern construction materials to- modern business center, an adminis- analysts. It’s symbolic that the business day,” she said, “Advances in construction trative office building, and a residential conference took place at the Smart City IT technologies and the emergence of inno- building with 772 apartments. The proj- Center, which was established at VDNKh vative materials led to the decorativeism ect’s total area is 229 300 square meters. at the initiative of the Moscow City Gov- of almost all new buildings in Moscow.” Conference participants had a chance to ernment. The participants discussed the appreciate the project’s interesting ar- concepts of comfortable living with the But advanced technologies are doing chitecture and the bright, futuristic look use of new technologies, taking into ac- more than changing the external ap- of the office building, which was erect- count modern consumer preferences. pearance of buildings in Moscow. They’re ed with the help of unique construction also altering what happens inside. Here technologies. Alexander Kolontay, Deputy Director of is what Alexei Gusev, General Director of the GenPlan Institute of Moscow, set the Glavstroy-Nedvizhimost, said during his Alexander Poduskov, Director of Develop- tone for the conference. “Modern urban speech at the conference: “We’re using ment at KR Properties, spoke about the theory is characterized by an emphasis the best smart home technologies, giving redevelopment of luxury properties in a on humanizing the urban environment,” the consumer a remote control to man- modern city. “In spite of the technological he said. What does this mean? It means age the material world — a smartphone complexity and higher costs of working that a city shouldn’t be an aggressive jun- app. Thus, we’re giving people the option with historical buildings, buildings with gle made out of concrete and glass, but a to manage their home technology from histories are gaining popularity on the comfortable place that is pleasant to live a distance or order any service without luxury real estate market. They sell faster. and work in. Where there are parks and leaving the house. This creates a sense Restored historical buildings are becom- squares, playgrounds, and comfortable, of total comfort and security, which is an ing a valued part of a modern city.” ■

64 CAPITAL IDEAS April-June 2019 Always by your side capitalideas.moscow CALENDAR Specialized exhibitions, congresses, and forums

AI Conference 2019 been the largest industry platform for repre- APRIL International Exhibition and Conference on sentatives of the transportation and logistics Artificial Intelligence in Business market for over 20 years. It’s a tool for setting goals for optimizing the process of transpor- April 9 tation and finding profitable business part- MosBuild 2019 MOSCOW Technopolis, Volgogradsky Prospect 42, ners and service providers. 395 companies 25th International Construction Exhibition bldg. 5 from 27 countries of the world take part in the exhibition. April 2-5 The Artificial Intelligence (AI) Conference is an international conference dedicated to the Crocus Expo, 65-66 km MKAD, pavilions 1-3 application of artificial intelligence for the op- ExpoElectronica 2019 timization of business processes. The event 22nd International Exhibition of Electronic The largest international construction and aims to introduce business representatives Parts, Modules, and Accessories interior exhibition in Russia. It features all to each other (entrepreneurs, manufacturers, of the world’s leading brands, which come marketing professionals, web developers, top April 15-17 to demonstrate construction, finishing, and managers, and startup founders), as well as to decorative materials. Over 1,200 Russian demonstrate the latest artificial intelligence Crocus Expo, 65-66 km MKAD, pavilion 3, and foreign manufacturers and suppliers tools that will boost operating efficiency in rooms 12,13 from 40 different countries will present a different areas of business. wide selection of construction and finishing The largest exhibition of electronic com- materials. Over 40 business events of dif- ponents and technological equipment in ferent formats give the professional com- TransRussia 2019 Russia and Eastern Europe. This is the only munity plenty of opportunities to network. 24th International Transportation and Lo- exhibition that not only actively attracts The event features over 160 Russian and gistics Services and Technologies Exhibition distributors of foreign parts, but also sup- foreign speakers on about 50 different top- ports Russian manufacturers. Continuous ics related to architecture, construction, April 15-17 analysis of trends and market needs and a and design. focus on consumer interests from the or- Crocus Expo, 65-66 km MKAD, pavilion 1, ganizers, which allows exhibitors to maxi- Within the scope of the Trend Show, the rooms 1, 2, 3, 4 mize the benefits of participation, ensures MosBuild exhibition will feature its first Per- the exhibition continues to grow every fect Home — an interior space that will be The international exhibition TransRussia is year. 431 companies from 14 countries of the created by leading interior designers out of the biggest transportation and logistics ser- world are taking part in the ExpoElectronica the newest finishing materials presented at vices and technologies exhibition in Russia. and ElectronTechExpo exhibitions, which is the exhibition. It has been held annually since 1995, and has a new record. 167 foreign participants and 122 companies are presenting their products for the first time. The total area of expositions is 16 490 square meters and the total forums number of visitors amounts to 11 073. There will be 10 187 specialists from 66 Russian re- congresses gions and 39 countries in attendance. exhibitions

ElectronTechExpo 2019 17th International Exhibition of Technologies, Equipment and Materials for the Production of Electronic and Electrical Industry Products part of the MAPIC exhibitions — the most April 15-17 National Oil and Gas widely recognized and respected retail real estate project in the world. Over the course Crocus Expo, 65-66 km MKAD, pavilion 3, Forum of 3 days, more than 5,300 market profes- rooms 12,13 April 16-17 sionals from 34 countries, including more than 1,600 retailers and 900 developers, Russia’s only international exhibition of tech- Expocentre at Krasnaya Presnya will present their projects, conduct meet- nologies, equipment and materials for the ings, make deals, and develop their business. manufacture electronic and electrotechni- The National Oil and Gas Forum is the first na- There will be 120 exhibitors with stands cal industry products. The exhibitors include tional event in modern Russian history orga- representing 9 countries: Great Britain, Bel- leading Russian and foreign manufacturers nized by the Russian Ministry of Energy in coop- gium, Bulgaria, Holland, Georgia, Poland, and suppliers of equipment and materials for eration with leading business and industry as- Russia, Turkey, and Finland. 14 foreign retail- the production of semiconductors, electronic sociations — the Russian Union of Industrialists ers will participate in the International Re- components, printed circuit boards and chips, and Entrepreneurs, the Chamber of Commerce tailers Tour. equipment and materials for soldering and and Industry of the Russian Federation, the other process equipment. Union of Oil and Gas Industrialists of Russia, and the Russian Gas Society. Key issues discussed Fintech 2019 ElectronTechExpo takes place simultaneously during the events include the digital transfor- Third International Conference on the and on the same site with ExpoElectronica mation of the oil and gas industry; technologi- Digital Transformation of the Economy and — the largest international exhibition of elec- cal equipment of the mechanical engineering New Financial Technologies tronic components, modules and components complex and its export potential; oil and gas in Russia. engineering and oilfield services; scientific and April 19 technological development strategies and mea- InterContinental Moscow Tverskaya Hotel The joint holding of the ElectronTechExpo and sures of state support for the introduction of ExpoElectronica exhibitions creates a unique breakthrough technologies. As is customary, the The Third International Conference on the platform for professional networking. agenda includes topics like technology transfer Digital Transformation of the Economy and in the fuel and energy complex; the production New Financial Technologies, organized by of hard-to-recover and non-conventional hy- the Vedomosti business newspaper, will NEFTEGAZ 2019 drocarbons; the establishment of engineering bring together representatives of govern- 19th International Exhibition of Oil and Gas centers, clusters and technology parks; the de- ment, large and medium-sized businesses, Equipment and Technologies velopment of new infrastructure projects; raw as well as fintech companies to jointly dis- material processing efficiency; analysis of global cuss initiatives and projects to develop the April 15-18 and local energy markets; new industry eco- digital financial market. What is the role of nomic models; gas station efficiency. regulators in the process of introducing in- Expocentre at Krasnaya Presnya, pavilions 1, 2, 8 novative technologies to the financial sector? Why are some companies concerned The largest oil and gas exhibition in Russia. It MAPIC Russia 2019 about over regulation by the state? What serves as a platform for cooperating with the 16th International Retail Real Estate kinds of digital transformations of tradition- relevant ministries, departments and associa- Exhibition and Forum al financial institutions should we expect in tions. Business visitors from 66 countries and the near future? What will banks of the fu- 77 regions in Russia, along with industry lead- April 16-18 ture look like? How will new multi-platform ers from 27 countries, participate in the exhibi- products help meet the growing demand of tion. Representatives of various ministries, the Crocus Expo, 65-66 km MKAD, pavilion 2, business and the general population? What’s Chamber of Commerce and Industry of the room 10 (3rd floor) the best way to simplify collaboration be- Russian Federation, and business unions take tween financial and non-financial markets? part in organizing the exhibition and the Na- The biggest event for retail real estate mar- All of these issues will be covered during the tional Oil and Gas Forum. ket professionals in Russia and the CIS. It’s conference.

April-June 2019 CAPITAL IDEAS 67 CALENDAR

Dental-Salon 2019 developers and manufacturers of navigation HUAWEI and collective expositions from the equipment, services and software, including provinces of Xinjiang and Sichuan. 45th Moscow International Dentist Forum cartographic applications. The exhibition re- and Exhibition / April 22-25 flects current global trends and determines Russian Petroleum and Crocus Expo, 65-66 km MKAD, pavilion 2, rooms 5, 7, 8 the course of development for national information resources as the main exhibition event Gas Congress / RPGC One of the biggest dentist exhibitions in Eu- for professionals in the industry. 2019 rope, and the second most influential dentist International Forum exhibition in Russia. Hundreds of events will The Navitech exhibition hosts world premieres take place at exhibition stands and in confer- of innovative solutions, systems, technologies, April 23-25 ence rooms, from product presentations to equipment and services for satellite naviga- international congresses. Highlights include tion, navigation information technologies, Crocus Expo, 65-66 km MKAD, pavilion 3 Dental Association of Russia conference, the geodesy and cartography on one platform. It Dental Lab dentist symposium, a course from presents opportunities to network with more The leading business event in the oil and gas the renowned aesthetic dentistry expert Di- than 10,000 representatives of the business industry, attended by all key market players. dier Game (Switzerland), and much more. community, potential investors, government The exhibition regularly hosts the Russian officials, and scientists from 30 countries. The Oil and Gas Congress / RPGC. It is tradition- ICEE Russia 2019 exhibition will also host the 8th International ally attended by over 1,200 representatives Navigation Forum 2019 — “The Art of Naviga- of the domestic and international oil and gas International Consumer Electronics Expo tion in the Digital World.” industry, including industry leaders, industry April 23-25 ministries and departments, oil and gas as- MIOGE 2019 sociations, and financial and investment com- Crocus Expo, 65-66 km MKAD, pavilion 10 panies. In 2019, more than 100 speakers from 16th International Exhibition of Oil and Gas around the world will take part in the MIOGE Equipment and Technologies The International Consumer Electronics Expo is Exhibition business program. an exclusive world consumer electronic exhibi- April 23-26 tion tour. ICEE has been held in the UAE, Kenya, Sviaz 2019 Thailand, Iran, Brazil, South Africa, India, and Crocus Expo, 65-66 km MKAD, pavilion 3 31st International Exhibition Indonesia. It will now arrive in Russia and later in the UK. All the exhibitors are manufacturers The largest international exhibition of oil and April 23-26 with their own production plants. They also gas equipment and technologies in Russia — have first-hand, non-agency resources that 564 companies, 36 countries, 17,575 specialists Expocentre at Krasnaya Presnya, pavilion 2, maximize customer profitability. The products from 64 Russian regions, 20,000 square meters (rooms 1-3), pavilion 8 (room 4) presented at ICEE Russia 2019 are completely of exhibition space, 55 Congress and the Tech- new and the selection is much wider than that nical program events, 310 speakers, and 2,000 The exhibition has been held since 1975 and is of ordinary exhibitions, with dozens of catego- delegates. The exhibitors are domestic and for- the largest event in the CIS and Eastern Europe ries and thousands of products on display. eign manufacturers and suppliers of oil and gas in the field of telecommunications and infor- equipment and technologies, as well as oilfield mation technology. This is a showcase of the Navitech 2019 service companies interested in using effective industry, demonstrating advanced achieve- tools to directly attract new customers from the ments and technologies and setting the course 11th International Exhibition of Navigation oil and gas producing regions of Russia and the of development for the year ahead. Sviaz a Systems, Technologies, and Services CIS countries. The biggest Russian and inter- convenient platform for discussing current is- April 23-26 national companies will present their products sues and networking with industry profession- and services at the exhibition: Gazprom, Tatneft, als, suppliers, and buyers. The exhibition pres- Expocentre at Krasnaya Presnya, pavilion 8 Vympel, MITSUBISHI ELECTRIC and many oth- ents a wide range of solutions for fixed, cellular, The only specialized exhibition in Russia that ers. Key Chinese companies will also be widely satellite and fiber-optic communications, data brings together leading Russian and foreign represented: CNPC, SINOPEC, HONGHUA, networks, telecommunications, server and

68 CAPITAL IDEAS April-June 2019 network equipment, television systems for cable and satellite TV, broadcasting, specialized software, information security solutions, virtu- forums alization, Internet technologies and services, solutions for e-commerce, etc. exhibitionscongresses In the draft of the “Digital Economy of Russia” program, prepared by the Ministry of Commu- nications and Mass Media of Russia on behalf of the President of the Russian Federation Vladimir Putin, special attention is devoted to the “Smart City” section. products and services of the helicopter indus- “hackers,” “defenders,” and security operations try — from design and manufacturing to op- centers (SOC). erations. The exhibition was organized by the Ministry of Industry and Trade of the Russian ECOM Expo 2019 MAY Federation. The exhibition not only allows to Specialized exhibition show the achievements of the Russian indus- SEMIEXPO 2019 try, but also attracts the best firms of the world May 22-23 to the Russian market, and contributes to the International Exhibition and Conference on development of international cooperation in Sokolniki Congress and Exhibition Center, pavil- Microelectronics Technologies, Standards and Equipment the helicopter industry. The exhibition serves as ions 7A, 4, 4.1 an excellent platform for communication with May 14 - 15 foreign partners, where Russian participants The biggest e-commerce and retail exhibition Expocentre at Krasnaya Presnya, pavilion 7 (room 1) can set the topics and tone of the dialogue. He- in Russia and Europe. Here, you’ll find every- liRussia traditionally holds a rich business pro- thing you need to launch an online store, from The leading forum for the microelectronics gram, which is an essential part of the exhibi- a website hosting platform to a delivery service and semiconductor industry in Russia, which tion and serves as a platform for discussing the provider. The expo includes six business sectors brings together a complete supply chain: from problems of the helicopter industry. and TOP 300 exhibitors, 3 business program materials and equipment to production tech- streams, partner conferences, and special in- nologies, services, components and applica- Positive Hack Days 2019 teractive formats. Participants will talk about tions. Top executives from industry, science, innovations in marketing, logistics, mobile 9th International Applied Digital Security regional government and global industry will commerce, SMM in ecommerce, the intricacies Forum present their solutions for strengthening the of online payments, and much more. competitive Russian microelectronic industry. May 21-22 METALLOOBRABOT- SEMIEXPO Russia 2019 combines an interna- Crocus Expo, 65-66 km MKAD, pavilion 3, room 20 tional specialized exhibition with a two-day KA-2019 business program, which will bring together PHDays hosts presentations by Russian and 20th International Exhibition leaders and top managers of major microelec- foreign developers, information security ex- tronics companies, representatives of govern- perts and hackers. Сlosed and open round ta- May 27 - 31 ment agencies, research institutes and inter- bles are held with participation of government Expocentre at Krasnaya Presnya, pavilions 1-8 national associations. representatives, CIO and CISO of the largest domestic and international companies, along The biggest exhibition of machine tools and In 2018, exhibitors included representatives with leading experts from financial, telecom- modern metalworking technologies in the from countries such as Germany (Partner munications, oil and gas, manufacturing and world, and also one of the the top ten lead- Country of the exhibition), the Netherlands, IT companies. There are also master classes ing international forums in the industry. It has Belgium, the USA, the Czech Republic, France, and laboratory workshops. The forum takes been bringing industry professionals together Japan, Singapore, Belarus, Taiwan, and Slovakia. into account the needs of the entire com- for over 30 years. The exhibitors — 1097 community and raises the most pressing issues of panies from 33 countries — includes leading HeliRussia 2019 information security: innovations in the field Russian and foreign manufacturers and sup- of hacking information systems and practical pliers of metalworking equipment, measuring 12th International Helicopter Industry security methods, protecting critical infra- and automation tools, components, as well as Exhibition structure, organizing the physical security of repair, maintenance, and equipment upgrade May 16-18 information resources, combating fraud and services. 66% of visitors are looking for new cybercrime, ans developing secure software business partners, and 44% are looking for Crocus Expo, 65-66 km MKAD, pavilion 1 development methods (SSDL). suppliers for the purpose of procurement. The business program allows you to discuss the The only exhibition in Russia that features The main event of the forum is The Stand- most pressing issues with government repre- global achievements of the whole range of off 30-hour cyber battle between teams of sentatives and business.

April-June 2019 CAPITAL IDEAS 69 CALENDAR

On May 28 and 29, the 9th International Sci- show “Discover Russian Cuisine.” The proj- ing forum in Russia, the CIS and Baltic coun- entific and Technical Forum “Materials Pro- ect already gained international popularity in tries on waste management, environmental cessing Technologies, Robotics, and Industry 2018, when presentations were held in Italy, protection technologies and renewable en- 4.0” will be held as part of the 20th anni- Germany, and France. In November 2019, the ergy. The exhibition includes a wide range versary international exhibition “METALLO show will be hosted in China! of environmental protection equipment and OBRABOTKA-2019.” services — waste management and recycling, Intermuseum 2019 processing of waste into energy, protection of water and air basins, and landscaping for International Exhibition 21st International Festival populated areas. for Animal Husbandry May 30 – June 2 and Animal Processing During the exhibition, over 250 organizations Manege Central Exhibition Hall from Russia and abroad engaged in the col- / VIV Russia 2019 lection, transportation, recycling and disposal International Exhibition and Summit The Intermuseum International Museum Fes- of waste will have a unique opportunity to May 28 – 30 tival is the main museum event of the year — showcase their innovative solutions and find a one-of-a-kind festival with no known ana- business partners. The business program Crocus Expo, 65-66 km MKAD, pavilion 2, logues in the world. This is a unique platform consists of a series of activities on the institu- rooms 7 and 8 not only for professionals, but also for visitors. tional issues of the organization of the waste management sector, the cleaning of the air An international exhibition of innovative The festival annually brings together more and water basins, and other aspects of the technologies for animal breeding and animal than 400 museums from Russia, foreign industry. processing. The main concept of the exhibi- countries, as well as more than 3,000 muse- tion — safety and quality of products “from um professionals participating in the profes- ROAD EXPO 2019 the field to the counter" — is gaining increas- sional business program events. The festival 9th International Forum and Exhibition ing popularity and support of the leading ag- program includes an exposition, business and ricultural powers of the world and promotes cultural programs, as well as a competition for June 4-7 further integration in the field of livestock and participating museums. poultry farming due to the growing interest Crocus Expo, 65-66 km MKAD, pavilion 1, room 4 of the global market in high-quality and safe products. One of the largest specialized exhibitions in Russia, highly appreciated and rated among A “Protein: yesterday, today, tomorrow” sum- JUNE not only road branch professionals but among mit, which will be a platform for a dialogue also professionals of allied — transport and about protein resources for human nutrition construction — industries because the project and animal feeding, will be held as part of the WasteTech 2019 covers all aspects of road infrastructure devel- business program. opment. 11th International Exhibition For the first time, a business space for negoti- June 4-6 The exhibition demonstrates the full range ations will be created — the Roundtable Area, of products and services for the construc- where companies will be able to make meet- Crocus Expo, 65-66 km MKAD, pavilion 2, room 8 tion and maintenance of roads: design and ings with partners and discuss business over a construction, materials for construction and cup of coffee. The largest event in the sphere of waste maintenance, equipment for the production management, environmental technologies of road pavement, bridges and tunnels, road Also for the first time, the exhibition will fea- and renewable energy. It has been held every construction and utility equipment, intelligent ture the unique professional gastronomic 2 years in Moscow since 1999 and is the lead- transportation systems, leasing, quality con-

70 CAPITAL IDEAS April-June 2019 trol of road pavement, road safety, and road service. forums The congress part of the event includes international thematic conferences, as well as a congresses number of business meetings and presenta- exhibitions tions.

International China Commodity Fair 2019 National Chinese Exhibition of Quality footwear, bags, accessories and components The first International Cybersecurity Con- Consumer Products manufacturers, along with younger compa- gress took place in Moscow on June 5-6, 2018 June 18-20 nies, for whom participating in the exhibition It brought together representatives from 681 is a great opportunity to explain the advan- organizations and over 50 countries. Partici- Expocentre at Krasnaya Presnya, pavilion 2, tages of their products to visitors. pants included Interpol, World Economic Fo- rooms 1-2 rum, SWIFT, ICANN representatives, as well Client Service Forum as representatives from more than 45 Rus- The international exhibition of quality con- sian and foreign government institutions sumer goods is an import-export project by 2019 and ministries. The agenda of the Congress Messe Frankfurt RUS, aimed at the develop- National Forum involved a discussion on the newest threats ment of Russian non-resource exports and in the digital world and key areas global cy- business contacts for business representatives June 19-21 bersecurity development. Another congress from Russia, China and the CIS countries. It Holiday Inn Moscow Sokolniki appearance worth mentioning was the ac- brings together Russian and Chinese manu- tive participation of Russia’s president Vladi- facturers, distributors, and representatives This is a discussion platform that provides an mir Putin. of government structures and trade associa- opportunity to get up-to-date information tions. on key trends in quality management in the Eurasian Orthopedic sphere of customer service. Renowned Rus- At the Russian-Chinese forum “Trade Coop- sian and international experts are invited to Forum eration Practices,” representatives of network participate in the Forum — heads of client International Forum retail, government organizations and consult- services, marketing, brand development and ing companies will discuss new opportunities sales, managers and owners of companies June 28-29 and pressing problems of cooperation with that provide client service products and ser- Expocentre at Krasnaya Presnya, pavilion 8, China in 2019. Issues regarding signing con- vices. The format of the business program is rooms 1-3 tracts, delivery options, and manufacturing geared to give participants information they products under an independent brand can can apply in practice (80% of the program fo- The largest Eurasian event in the sphere of or- be discussed in detail at the Business Contact cuses on real cases). thopedics, traumatology and healthcare eco- Club. All meetings are held in a closed business nomics will bring together more than 5,000 area with the help of professional interpreters. The International medical specialists from 80 countries in Mos- cow. There will be over 80 symposiums and Cybersecurity Congress MosShoes 2019 workshops, 17 scientific program sections, a “Medical Market Growth Factors” business International B2B Exhibition of Shoes, June 20-21 forum, and 9 round tables on relevant topics. Accessories and Components World Trade Centre, Moscow This is the only event of this magnitude with June 18-21 a focus on a multidisciplinary approach. The The event will become a global dialogue plat- forum covers all aspects of trauma and ortho- Crocus Expo, 65-66 km MKAD form for representatives of government agen- pedic disease treatment, including pharma- cies, world business leaders and key experts cotherapy, radiology, anesthesiology, organi- The largest b2b shoe exhibition in Russia and on the most pressing and topical issues of en- zational, and legal issues faced by healthcare Eastern Europe — over 1,000 brands from ev- suring cyber security in the context of global professionals. The scientific program covers ery continent, over 30 countries, and 12,000 digitalization. The business program includes many areas related to traumatology and or- visitors. It’s an excellent opportunity to learn panel discussions and round tables, during thopedics — anesthesiology and resuscitation, all about current shoe and leather haberdash- which experts will present the latest devel- radiology and oncology, plastic surgery and ery trends in various price segments over the opments and review challenges in the sphere rehabilitation of patients, along with organi- course of 4 days. The exhibition is the largest of security in the virtual space. Sberbank, the zational and financial issues. The event also business platform in the industry, bringing to- event organizer, is preparing an analytical features the largest specialized exhibition of gether all key players in the shoe market. For study on cyber risks in different countries of medical products and equipment over an area over 20 years, exhibitors have included major the world. of 4,000 square meters. ■

April-June 2019 CAPITAL IDEAS 71 OUR INTERVIEW Goethe-Institut in Russia: strengthening mutual trust Providing people in different countries with direct access to German language and German culture is the main goal of the Goethe-Institut — one of the most effective non-governmental organizations in Germany. Named after the German literary genius, philosopher, and naturalist Johann Wolfgang von Goethe, the organization currently operated in almost 100 countries. In one of her speeches, Federal Chancellor Angela Merkel referred to the Goethe-Institut as “Germany’s calling card abroad, which the federal government is very proud of.” Capital Ideas talked to Dr. Heike Uhlig, Director of the Goethe-Institut in Moscow and Head of Eastern Europe and Central Asia, about the association’s activities in Russia.

he Goethe-Institut was established in 1951. Were ies. And last but not least, she writes about looking for employees, there any challenges in terms of opening an of- who didn’t wait for official vacancy announcements, taking initia- fice in Moscow when the association first came to tive and expressing their desire to work at the newly-established Russia? Goethe-Institut. Some of them are still with us today. Of course, she also recalls the challenges of day-to-day life that she had to Your question prompted me to look into the memories of the overcome back in those days, as well as the support she received founder and first director of the Goethe-Institut in Moscow. Ka- from the Russian side in dealing with administrative issues. This thinka Dietrich van Wering came to Moscow in 1990 to create the was all compounded by the challenges in relations between the Goethe-Institut. It opened in 1992. She writes about the great inter- two Germanys — back when the Goethe-Institut moved to the est Russian artists, cultural figures, and German language teachers former GDR embassies on Leninsky Avenue, it was in a certain showed toward interacting with the German cultural and educa- sense a clash with the history of a divided country. tional community, about their desire to create and strengthen ties with German and European institutions and German colleagues. Since then, the geography of the Goethe-Institut’s presence She also talks about the great enthusiasm of German language in Russia has expanded considerable. Which regions are you teachers, about their interest in German literature and area stud- present in now?

72 CAPITAL IDEAS April-June 2019 Today, the Goethe-Institut exists in Moscow, Saint Petersburg, 20 German language centers. They are partners of the Goethe- and Novosibirsk. Since the very beginning in 1992, it was obvi- Institut in Russia, and the curricula and services they offer meet ous that it would be impossible to address the country’s needs the quality standards set by the Goethe-Institut. In addition to in the sphere of culture and German language without a large training, they provide an opportunity to pass exams developed partner network. It was established in the following years. by the Goethe-Institut. Now, the Goethe-Institut supports German reading rooms across 16 Russian libraries. It also carries out cultural projects Do you plan to open new branches in Russia? in various cities: concerts, film screenings, exhibitions, theater and dance performances, reports, seminars, master classes. We don’t have any plans like this right now. But our partner They are held with the support and cooperation of our local network is very active and we’re always open to cooperation. partners — regional and city administrations and cultural institutions. In addition, we have eight contact offices in the Rus- In no country in the world is the Goethe-Institut represent- sian regions. They organize cultural projects together with the ed as widely as in Russia. Can we say that this is a testament Goethe Institutes in Moscow and St. Petersburg, taking over to the importance of cooperation between Germany and local information support and coordination. Russia also has Russia?

April-June 2019 CAPITAL IDEAS 73 OUR INTERVIEW

If we look at the number of German language students in As I mentioned earlier, according to the official numbers Russia school, then on a global scale Russia ranks second after Poland. is in second place after Poland in terms of the number of school Of course, most school children learn English as their first for- children studying German as their second foreign language. eign language, just like everywhere else in the world. Neverthe- This is noticeable in terms of demand for our language cours- less, German is in the first place as a second foreign language, es in Moscow: almost 6,000 people take them every year. In and the number of students is growing. If you describe the cur- Goethe-Instituts around the world, 270,000 people are learn- rent situation in one sentence, you can say this: without English ing German. Cities with the highest demand include Hanoi, Cai- you can’t do anything at all, but with German you can do more! ro and Bangkok. But the number in Moscow is also quite high. This is especially true of the prospects in education and professional development that open for young people who speak Is this a lot or a little? Is it true that interest in German both English and German. Over 5,000 German companies have language is declining in Russia, just like interest in Rus- representative offices in Russia today, and trade relations be- sian in Germany? If this is the case, what are the reasons tween our countries are still very strong. There are also long- behind this? standing and very close cultural ties between Germany and Russia — thanks to this, lively and fruitful cooperation has been At schools all over the world, people learn English first. Russia maintained in all areas of culture. and Germany are no exception. English is simply necessary, end of story. Other foreign languages, of course, are secondary or Right now, relations between Berlin and Moscow are un- tertiary, and there is less space for them in the school schedule. fortunately far from ideal. How do you think they can be Often, students and their parents make decisions from a purely improved and what can the Goethe-Institut do to facili- practical point of view: what will this language give the stu- tate this? dent? Is it useful for their education or career? Or would it just be nice to know the language of this country if you happen to The Goethe-Institut isn’t a government institution, we’re an in- go there on vacation? dependent organization. We support active cooperation with our Russian partners in the cultural, educational, and social In Russia, the number of students who learn German as the spheres, just like we always have. This is the core of our activi- first foreign language really has decreased somewhat. But an ties, which isn’t subject to pressure from current developments. increasing number of students are choosing German as their This both creates mutual trust and establishes a reliable foun- second foreign language. My colleagues launched a major pro- dation for our relations. There are different kinds of formats — gram to support schools and teachers, established resource from coproduction, joint projects, and artist residencies in the centers together with educational institutions, and thus laid social sphere to scholarships and youth exchanges in the field of the foundation for language learning to be enjoyable and in de- education. We want such meetings in one country or another mand. And school children still have a lot of interest in learning to be possible and actively support them, because such a dia- German along with English. logue is incredibly important for bilateral understanding. Please explain to our readers in different countries: why is it Knowing the language of our partner countries is the worth it to learn German? foundation of dialogue between people. One of the most important objectives of the Goethe-Institut is the popu- I am convinced that in today's world, where everything is in- larization of the German language abroad. What is the terconnected, it is no longer enough to just know English if scale of these activities? How many people are learning you want to work for international companies. Any additional German with the help of your organization all over the language gives access to other cultures, introduces a different world, including in Russia? type of thinking, and helps you understand other people better. www.goethe.de

74 CAPITAL IDEAS April-June 2019 www.goethe.de

Germany is a great place to study. There are many English lan- Aside from teaching German, what else does the Goethe- guage programs in German universities, but German is still used Institut do? What kinds of projects do you undertake, and in in everyday life and to communicate with other students. Ger- what spheres? many is also one of Russia’s largest trading partners, and many German firms operate here. People in the company may com- Aside from German, the Goethe-Institut pays special atten- municate in Russian or English, but you need German to go to tion to culture — dance, theatre, music, film, fine arts, literature the head office for advanced training. Whether or not to study and discussions and cooperation in the field of education. We a language may be a purely pragmatic decision these days, but have an excellent library with an online subscription that lets there’s nothing wrong with this. people borrow German books and magazines. The library is an information center where you can learn more about Germany, What are the people who study German at the Goethe-In- German language, and culture. We help build bridges between stitut in Russia like? Are they mostly children, young people, professional associations in many fields. For example, we once or others as well? set up an exchange of experience for librarians, where they discussed how to turn public libraries into places for study and In the past few years, we really have had more courses for chil- communication. And this year we will support an exchange be- dren and young people. We hold language camps in the sum- tween German and Russian artists. The Goethe Institute is also mer, where children can study German and then play games for more and more interested in the digital revolution, especially in practice after class. The thing is that many students learn Ger- how it affects our lives. There will be a big conference dedicated man in school as their second foreign language and take addi- to this subject in the fall. tional classes in their spare time in order to do better on exams and improve their chances of getting an education or training in You were in Moscow in 1998-2004, so this isn’t your first Germany. But the majority of people who study at the Goethe- time here. What were you doing in Moscow back then? How Institute are still students and young professionals. The same as much has the Russian capital changed since? What were you it is all over the world. most impressed by?

Who teaches German at Goethe-Institut courses in Russia? I worked at the Goethe-Institut in Moscow from 1998 to 2004 — Do teachers come from Germany or do you hire them in Rus- I headed up the language department. Moscow has changed sia? How qualified are they? a great deal since then. I take public transportation and these days almost everyone is on their phone, playing games, reading, Native speakers do not teach at the Goethe-Institut in Russia. or listening to music. It’s become much easier to find your way We work with Russian German teachers. They learned German around the metro and the city thanks to new signs and maps. as a foreign language, and then received additional training at And most importantly, people have become friendlier and more the Goethe-Institut. We regularly offer additional language, attentive. Theatres and concert halls are still full, and I see a lot methodology and didactics training to our teachers, along with of young people in the audience. I am very happy that I’m here scholarships for attending seminars in Germany. and still have a lot of interesting discoveries to make. ■

April-June 2019 CAPITAL IDEAS 75 This and that CLEOPATRA’S NOSE or the profile of a Russian

Blaise Pascal, a 17th century French scientist, once said that “had Cleopatra’s nose been shorter, the history of humankind would business woman have developed differently.” It’s a wise observation. After all, only stupid men think they’re in control of everything. In Russia, we see it like this: the man is the head, the woman is the neck.

he Russian Federal State Statistics Ser- He wrote this at the end of the 19th century, which vice recently announced that there were means over a hundred years has gone by since. So 1,156 women for every 1,000 men in Rus- has the Russian woman changed? And if so, then sia in 2018. Say what you will, but Russia how? According to data from public opinion polls, is a country of women. And this isn’t just a she has become even more proactive. In spheres Tmatter of numbers. Over the course of many cen- like entrepreneurship, for example. According to turies, the Russian woman was always more pro- the Mastercard Index of Women Entrepreneurs, active, goal-oriented, and brave than the Russian 32% of business owners in Russia are women, put- man. In many ways, this is reflected in our proverbs ting Russia in fourth place on the index. and fairy tales, where the man is often portrayed as lazy — he relaxes by the furnace, while the woman And here are more numbers that the newspaper works hard. The Russian woman often ends up Kommersant published, citing experts from the forcing the man to wake up and get moving. National Research University Higher School of Economics. In 2016, women’s share in business in- Do you know how the 1985 perestroika that funda- creased by 54%, while men’s share increased by just mentally changed Russia started? Everybody thinks 19%. The majority of business people of both gen- it’s the work of Mikhail Gorbachev, who was the ders are between 35 and 54 years old. According to country’s leader at the time. But the true inspira- the results, the youngest entrepreneurs have just tion behind perestroika was his charming wife, recently turned 18, while the oldest are 64 or older. Raisa. At least this is what many Russian intellectu- als think — that it was Raisa, and not the politburo, So why is this happening? What makes so many who directed Mikhail Gorbachev. Gorbachev’s wife women enter the risky world of Russian entrepre- knew that it were women who suffered most from neurship? Some analysts think this is the result of the shortages that plagued the country. There was the economic crisis. According to the authors of nothing to buy in the stores: no beautiful clothes, the study published by the Higher School of Eco- no nice shoes, no lingerie, not even lipstick or nail nomics, women are more active during crises be- polish! This “silent women’s protest” was what re- cause they don’t have alternative income sources. ally rocked the socialist boat, which was already About a third (35%) want to improve their finan- broken because people lacked basic necessities... cial standing so they don’t have to depend on anybody. 27% want to build their social status and Yes, Raisa Gorbacheva is just like the lovely wom- show that it’s cool to run a business. 22% want to en that famous Russian poet Nikolay Nekra- implement their business idea. sov wrote about in his famous work “There are Women in Russian Villages.” He exclaimed with Women usually do business in the social sector — admiration that the Russian woman is capable of 90% of all people working in this field in Russia are anything, that she will “stop a horse at full gallop, women. Women also make up 36% in sales and walk into a burning house.” 11% in manufacturing.

76 CAPITAL IDEAS April-June 2019 CLEOPATRA’S NOSE or the profile of a Russian business woman

It’s also worth pointing out that it’s more difficult to do business in Russia as a woman. But things are changing in this regard, and public attitudes toward women in business are gradually improving. About 56% of respondents view women in business positively. Only 17% disapprove. In their opinion, women who do business prefer to focus on their career instead of fulfilling their natural purpose — having children and focusing on the family. Polls also show that women have noticed the positive changes for women entrepreneurs. First and foremost, these changes are linked to more access to financing, improvements to educational programs, as well as more welcoming attitudes.

This is a positive trend. According to Guzeliya Imaeva, CEO of the National Agency for Financial Studies, the development of female entrepreneurship is really important for the country’s economy — it’s a real way to speed up economic growth. In all fairness, one has to admit that things aren’t yet equal when it comes to women in business. It’s important to create the kind of environment that would encourage women’s business aspira- tions long before they register their enterprise, Guzeliya Imaeva thinks. A more favorable social and information landscape is also key. This is why, over the past 5 years, mentions of women in business have increased by 14 times in Russian media.

But entrepreneurship isn’t the only sphere Rus- sian women are proactive in. According to Grant Thornton International, 45% of top managers in Russia are women. For the sake of comparison, that’s three times more than in Germany, and double the number for the UK and the US.

In this article, we didn’t talk about the charm and extraordinary beauty of Russian women. But that’s another story… ■ LIFE&CULTURE Who will gather the biggest crowd? Bon Jovi, Metallica?.. Who will gather the biggest crowd? In recent years, all sorts of art exhibitions have been successfully held in Moscow, and many of them were received with unprecedented excitement. Three years ago, people waited in line for hours to look at paintings by the famous Russian artist Valentin Serov. The capital is expecting something similar to happen this spring and Bon Jovi, Metallica?.. summer, as the number of interesting upcoming exhibitions is higher than ever. Still, there will be plenty to do in the capital if you’re not a big fan of art.

his spring’s art marathon will begin at the Moscow Kremlin museums, which have been displaying the treasures of Chinese emperors since March. The Forbidden City in Bei- jing, which is also the largest palace complex Tin the world, has brought around a hundred items to the Kremlin. They’ll tell us about the lives of Chinese emperors in the 18th century. A throne with carved dragons, luxurious ceremonial clothes of emperors and empresses, golden bowls, musical instruments — you can see all of this, along with other items that were essential to court life, through May 30th.

There will also be a major exhibition at the Push-

kin State Museum of Fine Arts through May 20th. www.kreml.ru The famous Tate Gallery will be presenting works The treasures of Chinese emperors from one of the most important movements in 20th century British art. In the 1970s, when conceptualism and abstract art were in style, a group of British artists favored figurative art. But their work can’t be described as traditional, and what happens to human bodies and space in these works will definitely surprise the exhibition’s visitors. The two big names of this movement are Francis Bacon and Lucian Freud (the grandson of the founder of psychoanalysis, Sig- mund Freud).

According to the experts, there will be unprecedented excitement around the works of Ilya Repin — one

of the most famous Russian artists of the pre-Revo- www.pushkinmuseum.art lutionary era. The Tretyakov Gallery on Krymskiy Val "Girl with a Kitten". Lucian Freud. 1947 will be housing 300 paintings by Repin across three floors through August 18th. The lines really might be outrageous, so it’s best to purchase the tickets on the website ahead of time. There will also be an opportunity to see the iconic works that are featured in school textbooks throughout Russia — “Barge Haul- ers on the Volga,” “They Did Not Expect Him,” “Reply of the Zaporozhian Cossacks,” portraits, and historical paintings. The Russian Museum in Saint Peters- burg will send over a painting that us colossal in both size and concept — “Ceremonial Meeting of the State Council” is almost nine meters in length, and www.tretyakovgallery.ru “They Did Not Expect Him”. Ilya Repin. 1884-1888 LIFE&CULTURE

each portrait (there are 81 of them in the painting) is painted from life, as Repin and his two students were given permission to attend council meetings.

Another highly anticipated exhibition will feature works by the prominent Norwegian artist Edvard Munch. In mid-April, famous paintings by this artist, who lived a long life (80 years old) that was full of trials and hardships will be brought to the Engineer- ing Building of the Tretyakov Gallery from Oslo. The artist’s childhood and young adulthood were filled with suffering, as he was plagued by illnesses, deaths in the family, loneliness, depression, psychiatric hos- pitals, jokes about his art, and romantic misfortunes from an early age. All of these things are reflected Ilya Repin. “Barge Haulers on the Volga”. 1872-1873 in his art. Both the public and his colleagues didn’t recognize him as an artist until he was in his 40s, although some of his most innovative works, such as “The Scream” (1910), were painted long before then. Today, Munch, who passed away in 1944, is among the top 10 most expensive artists in the world.

In 2012, one version of “The Scream” was sold at a Sotheby’s auction for nearly $120,000,000. The exhibition is expected to feature about 70 paintings, 30 graphics, along with photographs and memorial items primarily from the Munch Museum in Oslo, as well as from the Pushkin State Museum of Fine Arts. One of the more significant exhibits is “The Scream,” a version of which is kept at the Munch Museum. The exhibition will run through July 14th.

And there is another interesting exposition for Mus- covites and the city’s guests this summer. There were a lot of art collectors in Russia during the pre-revolutionary era, and one of them is the Moscow merchant and philanthropist Sergei Shchukin. He was the first collector in Russia to start buying the works of Monet, Gauguin, Cezanne, and Picasso, and or- dered the famous paintings “Music” and “Dance” from Matisse. There are a lot of real masterpieces in his collection, and the only collector who could possibly compete with him is the merchant and businessman “The Scream”. Edvard Munch. 1893 Ivan Morozov. Their collections were nationalized and unified into a Museum of New Western Art after the revolution, and then split between the Pushkin Museum and the Hermitage. Now, several decades later, historical justice will be restored in Moscow and Saint Petersburg — the collections will be shown separately. Moscow will kick things off with a collection from Shchukin and his brothers, who also col- lected art, while the Hermitage will start with Moro- zov’s collection. “Shchukin. A Collection’s Biography” will run at the Pushkin State Museum of Fine Arts from June 17 to September 15.

The repertoires of Moscow’s theatres are including more plays that stress gestures and dance over “Dance”. Henri Matisse.1910 80 CAPITAL IDEAS April-June 2019 www.mxat.ru “20th Century. Ball.” the spoken word. This is a distinct trend of our time. who already has experience at the Bolshoi: he direct- The Chekhov Moscow Art Theatre recently hosted a ed “Don Pasquale” in 2016. premiere of the unusual play by the famous Russian choreographer Alla Sigalova “20th Century. Ball.” May and June will be a great time for fans of the The play contains almost no words, but nearly every- opera. On May 23, renowned performers who have body in the theatre’s troupe has a part in it. Channel graced some of the best stages all over the world will One’s CEO Konstantin Ernst worked on Sigalova’s join forced in Moscow. The talented and brilliant Aida play with her, marking the first time a venerable TV Garifullina and Ildar Abdrazakov will be on stage producer has worked in theatre. He was the source of inspiration behind many of the project’s ideas. A whole century of Russian history is shown through the prism of music and dance — tsarist Russia, sol- diers, sailors, the revolution, the thirties, World War II, the youth and students of the 1957 festival, Gaga- rin's flight into space, and all the events leading up to President Boris Yeltsin’s farewell speech, during which he announced his early and voluntary res- ignation as Head of State on New Year 2000. The www.commons.wikimedia.org music selection for the the play features everything from Alexander Vertinsky's romances to “Kalinka- Malinka” and songs by Vladimir Vysotsky. Actress Irina Pegova, who will be performing several roles in the play, can without a doubt be called the Queen of this ball. In the first part of the play, she appears spectacularly on stage as a female officer in a leather jacket.

The Bolshoi Theatre is waiting for the premiere of the opera “Mermaid” by the Czech composer Antonín Dvořák. The libretto was written by the Czech writer Jaroslav Kvapil. Dvořák’s only opera to be shown abroad is extremely popular in the post- Soviet space. It will be directed by Timofey Kulyabin, The opera “Mermaid” by the Czech composer Antonín Dvořák April-June 2019 CAPITAL IDEAS 81 LIFE&CULTURE

Bon Jovi

together at the Crocus City Hall Concert Hall, accom- leading opera houses — the Metropolitan Opera in panied by a symphony orchestra. Aida Garifullina is New York, the Vienna State Opera and the Bavarian the voice of the Vienna State Opera. Ildar Abdraza- State Opera in Munich. kov is one of the most sought after operatic basses of our time. Since his successful debut on La Scala in On June 4th, the State Kremlin Palace will host a 2001 at the age of 25, the Russian singer has been joint concert by Anna Netrebko, Andrea Bocelli, Yusif a regular participant in productions at the world's Eyvazov, and Olga Peretyatko. Getting all of these opera stars to perform on one stage seemed impossible, because their schedules fill up years in advance. Still, the impossible happened: the concert will include both classical arias and popular melodies. This unique project will undoubtedly make history. The performance is already being compared to the concert by three legendary tenors Domingo, Carreras and Pavarotti, which took place in Rome in 1990. Andrea Bocelli is a legend — an Italian singer who has made it into the Guinness Book of World Records several times. He has recorded 16 solo albums that sold over 90 million copies all over the world. Anna Netrebko has won many ti- tles and awards and is the uncontested primadonna of the modern opera scene who performs in some of the most famous concert halls all over the world. Her concerts are always some of the most highly-anticipated events of the season. Anna’s husband Yusif Eyvazov, a tenor, sings at the world’s leading opera theatres, such as La Scala, The Metropolitan Opera, Vienna State Op- era, Covent Garden, Paris Opera, and others.

Music fans are also in for exciting concerts. In July, 27-year-old Ed Sheeran, who is one of the UK’s most Ed Sheeran 82 CAPITAL IDEAS April-June 2019 commercially successful modern day singers, will be coming to Moscow. He has already received four Gram- my awards, including Best Song of the Year (“Thinking Out Loud”), Best Vocal Pop Album (“Divide”), and Best Solo Pop Performance (“Shape Of You”). This song became a real hit, and Ed Sheeran was awarded the Member of the Order of the British Empire medal for his accomplishments on December 7th, 2017.

The Grand Sports Arena at Luzhniki will also be hosting performances by several legendary groups this season. On May 31st, Bon Jovi, a group that is known throughout the world for more than a dozen hits, will kick things off. The rock legends have already performed in Luzhniki back in 1989. Perhaps, just like 30 years ago, thousands of fans will sing along with Bon Jovi when he performs his famous hit “It’s My Life.” On June 13th, Moscow will once again be visited by KISS, the hottest band in the world. On June 15th, the famous rock band Muse from the UK will light the stage on fire with hits such as “New Born.” And on July 21, the US band Metallica will have their turn in Moscow, and will definitely be playing hits like“Nothing Else Matters” and “The Un- forgiven.” The thrash metal veterans first performed in Moscow in 1991. So which concert will have the most spectators? keep in mind that about 103,000 people were at the Grand Sports Arena during the KISS 1980 Olympic Games. In 1990, the last concert of conducted for the 2018 World Cup, the capacity of the then-popular Russian singer Viktor Tsoi, which the stadium in Luzhniki is 81,000 people. Which of was attended by 72 thousand spectators, was held the western stars will be able to pack the stadium to here. After the reconstruction, which was specially full capacity this year? ■

Metallica April-June 2019 CAPITAL IDEAS 83 MOSCOW VOCABULARY

This section of the magazine – “Moscow Vocabulary” – was born of remembering … Ronald Reagan, who appeared to be a fan – and collector – of Russian proverbs and sayings. Well, and we would like to guide you into a world of Russian idioms – just as bright and colorful.

САДИТЬСЯ НА ЛЮБИМОГО КОНЬКА – sadittsa na lubimogo kon’ka. (To mount one’s favourite pony) Explanation: To dwell on one’s favourite topic.

ОКАЗАТЬСЯ МЕЖДУ ДВУХ ОГНЕЙ – okazattsa mezhdu dvukh ogney. (To find oneself between two fires) Explanation: To be attacked from two directions.

МАСТЕР НА ВСЕ РУКИ – master na vse ruki. (A master at all hands) Explanation: To show talent in anything one turns his hand to.

ВЫРВАТЬ что-либо С КОРНЕМ – virvat’ s kornem. (To tear something out with root) Explanation: To destroy something completely.

БИТЬ КЛЮЧОМ – bit’ kluchom. (To well up, to bubble) Explanation: To be in full operation.

ПОКАЗАТЬ КОГТИ – pokazat’ kogti. (To show one’s claws) Explanation: To show anger. Pictures by Anastasia Saifulina Pictures

84 CAPITAL IDEAS April-June 2019 НЕ ВИДЕТЬ СВЕТА БЕЛОГО – ne videt’ sveta belogo. (Not to see the white world) Explanation: One is so burdened with work or cares that he has no rest.

МНОГО ВОДЫ УТЕКЛО – mnogo vody uteklo. (Much water has flowed away) Explanation: Much has happened, much has changed since.

СКОЛЬЗИТЬ ПО ПОВЕРХНОСТИ – skol’zit’ po poverknosti. (To glide on the surface) Explanation: To deal with a subject only superficially.

ОКАТИТЬ ХОЛОДНОЙ ВОДОЙ – okatit’ kholodnoy vodoy. (To pour cold water over someone) Explanation: To discourage someone’s enthusiasm.

ПОСТАВИТЬ КРЕСТ – postavit’ krest. (To put a cross on someone/something) Explanation: To lose faith in someone or something, to stop thinking of someone or something.

ЖИТЬ ДУША В ДУШУ – zhit’ dusha v dushu. (To live soul and soul together) Explanation: To live in harmony.

January-March 2018 CAPITAL IDEAS 85 LIFE&CULTURE The main exhibitions of 2019 Here’s an overview of the most interesting exhibitions at the museums in Moscow.

Edvard Munch’s famous “The Scream” and a retrospective Vasily Polenov exhibition, Flemish paintings and masterpieces by the German artist and choreographer Oskar Schlemmer, treasures from China’s Forbidden City, and a Louis Vuitton collection — all of these are must-sees in 2019.

Francis Bacon, Lucian Freud and the School of London

or the first time in Russia, museum go- of expressing a deeply personal, sensual and Aarhus. In total, it has been visited by 600,000 Fers will have an opportunity to learn more intense experience of life. The exhibition pres- spectators. about an important chapter in the history of ents 80 paintings and graphics from the Tate The human body is the focal point of the modern British art, associated with the use Britain collection. The exhibition has already School of London artists, who work on con- of figurative painting by artists as a means been held in London, Los Angeles, Malaga and veying its vulnerability and vitality. Along March 5 - May 19 with the appeal to the human figure, the artists of the London School are characterized Pushkin State Museum of Fine Arts, Volokhonka Street 12 by interest in the landscapes. The images of London created by them are connected with personal stories and the subjective perception of the city. In a metaphorical sense, they turn out to be a kind of existential self- portraits of their authors, for whom painting was a deep autobiographical process. Artists of the School of London developed complex plots, focusing on the dynamics and aesthetics of social relations. The exhibition acquaints the viewer with the most important milestones in the history of British art, as well as with the main trends in European art after WWII. The exhibition will come with a series of discussions, an educational program, and a music festival planned jointly with the Brit- ish Council.

86 CAPITAL IDEAS April-June 2019 Treasures from the Palace Museum. The Flourishing of China in the 18th Century March 15 — May 30 Moscow Kremlin Museum

he exhibition will be part of a cultural ex- from this world-famous collection will be Tchange project between Russia and Mos- presented for the first time at the Moscow cow, within the scope of which the Moscow Kremlin Museums. Kremlin Museums will open an exhibition Exhibition visitors will get to see over 100 called “The Ceremonies of the Russian Im- exhibits — symbols of power, ceremonial perial Court,” dedicated to coronations in robes of emperors and empresses, orna- the Kremlin, from their own collections at ments, portraits, paintings and calligraphy, the Palace Museum in Beijing. documents, memorial items, including gifts The exhibition from Beijing, located in the from the Qianlong Emperor to his mother to exhibition halls of the Patriarch's Palace and his mother. the Assumption Belfry, will be devoted to the The Qianlong Emperor’s reign was the lon- ceremony of ascension to the throne, as well gest in the whole history of China, lasting as daily life and official events of the Qing sixty-three years and four months. It is con- dynasty court. The ascension to the throne sidered the Golden Age of culture for the of the new emperor, being the most impor- late empire, marked by military successes tant and solemn ritual, consisted of numer- and achievements in politics, as well as the ous, elaborate ceremonies. Ten emperors spread of Tibetan Buddhism and the special of the Qing Dynasty were enthroned in the attitude of the enlightened ruler to the an- imperial palace of the Purple Forbidden City: cient cultural heritage. Being a versatile and this explains the wealth of the collection of talented man, he had a delicate aesthetic exhibits related to the most important cer- taste and personally supervised the produc- emonies preserved in the Palace Museum. tion of various works of applied art at the The most interesting and significant items court.

Ilya Repin March 15 — August 18 New Tretyakov, Krymsky Val 10, rooms 60-61 & 80-82

Ilya Repin’s works, painted in the 1870s - 1920s. There are a total of over 180 canvases and about 130 graphics, displayed in the largest halls of the Tretyakov Gallery. In addition to the well-known paintings, the exhibition includes little-known works of Repin from 26 Russian museums, foreign collections, and also private collections. Ilya Repin (1844–1930) is perhaps the most famous Russian artist of the nineteenth and early twentieth centuries. In his works, the painter turned to both modern motifs and to the history of the country, creating a pictorial encyclopedia of Russian life. People have always been at the center of his work. The artist immersed himself in the analysis of the psychology of father and son, son and mother, executioner and victim, priest and prisoner, officials and simple peasants. Repin mastered several genres, depicting scenes from everyday life, historical and religious scenes, painting expressive portraits as well as landscapes and still lifes. The exhibition consists of 14 sections organized in chronological order, allowing visitors trace the artist's creative path. The mezza- nine floor in the “Research” section presents his exhibition is a major project in terms of museum cooperation, and the range of mate- the results of the work done by restorers and Tpreparatory research work, the scale of inter- rial presented. Guests will get to see the best of art historians.

April-June 2019 CAPITAL IDEAS 87 LIFE&CULTURE Jean-Daniel Lorieux’s French Vacation April 4 – June 23 The Lumiere Brothers Center for Photography, Bolotnaya Naberezhnaya, 3, bldg. 1

n exhibition of works by one of the most well as with high fashion brands like Dior, Lan- Afamous French photographers, a world vin, Céline, and Pierre Cardin. legend of fashion photography, and the recipi- In addition to models, movie stars and musi- ent of the Order of the Legion of Honor and cians, he had a chance to shoot politicians, the Order of Arts and Literature — Jean-Dan- in particular, Jacques Chirac, for whom he iel Laurier. His work is put on a par with such designed a series of posters for his election classic photographs as Helmut Newton and campaign in 1988. Guy Bourdin. Every year, his exhibitions are held in the largest cities of the world, includ- This exhibition will feature the photog- ing Paris, Hong Kong and Los Angeles. Laurier rapher’s works of the 1970s, 80s, 90s and became a prominent fashion photographer in 2000s. After military service in Algeria, Lau- the 1970s and 80s — the heyday of the fash- rier began to take only colorful and cheer- ion industry and glossy magazines. He gained ful photos. A characteristic feature of his wide acclaim working with major publications author’s style was the use of saturated con- such as Vogue, L’Officiel, Harper’s Bazaar, as trasting colors.

April 16 — July 14 Edvard Munch Tretyakov Gallery, Engineering Building, Lavrushinsky Lane 12, Floors 2 & 3 despair against the background of a blood- red sky. The Scream has since become an emblem of expressionism. This is the first time such an extensive collection of paintings by the Norwegian ex- pressionist will be coming to Russia. The exhibition will include about 70 paintings and 30 graphics, photographs and memorial items mainly from the Munch Museum in Oslo, as well as from the Pushkin State Museum of Fine Arts. Interestingly, the formation of the worldview and imagina- tive thinking of the Norwegian genius was greatly influenced by Dostoevsky’s novels. “Munch and Dostoevsky” will be the main topic of one of the sections of the exhibition. The Edvard Munch exhibition will continue the series of Tretyakov Gallery exhibitions dvard Munch is one of the first expres- death, loneliness, and lust for life. Munch that focus on European artists whose work Esionists, as well as theater artist and art painted the series “The Scream” from 1893 had an impact in Russian culture, serving as theorist. The main themes of his work are to 1910. They depict a person screaming in a guide for domestic artists. Shchukin. Saga June – September Pablo Picasso, Pierre Auguste Renoir, and other artists. Pushkin State Museum of Fine Arts, Volokhonka Street 12 The Shchukin and Morozov collections, which This summer, the State Hermitage Museum were split up between museums in Moscow and the Pushkin Museum will exchange the and St. Petersburg, have not been united at masterpieces of impressionists and post- such a large scale since their disbandment in impressionists from the pre-revolutionary 1948 — 70 years ago. collections of the Shchukins and Morozovs. In May, the exhibition “The Morozov Collec- After these exhibitions are over, the Morozov tion” will open in the Grand Enfilade of the collection will travel to the Louis Vuitton Foun- General Staff Building of the Hermitage (St. dation in Paris in the fall of 2020 (the Shchukin Petersburg), while the project “Shchukin. collection has already been shown there). The Saga,” which brings together the collections exhibition “Masterpieces of new painting. The of all the Schukin brothers, will be presented collection of Sergei Shchukin” was incredibly in the main building of the Pushkin Museum. popular with the audience, and as a result, Exhibition visitors will see paintings by Vin- gathering the largest number of visitors in cent van Gogh, Henri Matisse, Claude Monet, 2017 — a total of 1.2 million people saw it.

88 CAPITAL IDEAS April-June 2019 sculptures “The Hearts of Trees,” the names of famous composers are composed of letters. Jaume Plensa The transparency of the sculptures is a kind of June 11 — September 22 interaction with the spectator - each person Moscow Museum of Modern Art, Petrovka 25 can study the sculpture from the inside, enter- ing the open steel structure.

he Spanish artist Jaume Plensa is famous The exhibition will feature 20 sculptures that for his sculptures and installations, in which T fit inside the museum’s halls. All of them are human bodies are created out of letters, light works that have been completed sometime and sounds. His works evoke strong emotions in the audience, as if the artist has understood between the 1980s and the present. The exhi- something important about the process of bition will show how the artist, whose monu- Creation and the meaning of human exis- mental works can be seen on the streets of tence. A special role in his work is occupied by Chicago, London, Nice and Tokyo, tunes that the written word — Jaume’s sculptures some- dialectic interaction between human images times consist entirely of letters. In his bronze and abstraction. Louis Vuitton Foundation Collection June 18 — September 15 19th and 20th Century European and American Art Gallery, Volokhonka 14 generations, such as Jean-Michel Basquiat, Banksy, Matthew Barney, Takasi Murakami, Pierre Yuig, Cheng Yang, and others. Special attention at the exhibition will be given to Bernard Arno — President of LVMH group and a passionate collector of modern art. The exhibition of the Louis Vuitton collection will be held simultaneously with a large- scale exposition dedicated to the Shchukin brothers, which will be located in the Main Museum building. These two exhibitions of iconic collections — Sergei Shchukin and Bernard Arnault — will help the Moscow au- his event is a new chapter in the develop- response, the Louis Vuitton Foundation col- dience trace the similarities and differences Tment of close relations between the Louis lection will be presented at the 19th and 20th in the approaches to collecting art, demon- Vuitton Foundation and the Pushkin State Century European and American Art Gallery strating the evolution of contemporary art Museum of Fine Arts. The beginning of co- in the summer of 2019. The exhibition will in- collecting in the beginning of the 20th and operation was the exhibition “Masterpieces clude works by twentieth-century artists like 21st centuries. At the same time, they will of New Painting. Sergei Shchukin Collection,” Alberto Giacometti, Yves Klein, Gerhard Rich- become clear evidence of the inseparable which was turned out to be a hit at the Louis ter, Sigmar Polke, Christian Boltanski, and An- connection between different generations Vuitton Foundation (Paris) in 2016-2017. In dreas Gursky, along with artists from younger of modern art collectors. The Coming World: Ecology as the New Politics, 2030–2100 June 28 — December 1 predicted possibility of humanity’s settling Along with the exhibition, which will occupy other planets and achieving immortality. the entire space of the Museum, a rich public Garage Museum of Contemporary Art, Krymsky Val 9 program will be organized, which will become “The Coming World” will open with a six-channel video installation by John Akomfrah called “Pur- a platform for meetings between experts, sci- his large-scale exhibition project is dedi- ple” (June 15 - December 1). Moreover, the muse- entists, activists, theorists and practitioners of Tcated to ecology in a broad sense — in um’s atrium will showcase a new work by Huang various eco-initiatives. The 2019 Garage Live particular, a topical environmental protec- Yong Ping, which was created within the scope of program will present a series of events pre- tion agenda, problems of climate change, the Garage Atrium Commissions program. pared specifically for the exhibition. extinction of species and global resource scarcity. The exhibition will feature historical and new works by more than 50 authors from Russia and from abroad, shedding light on modern ethical and aesthetic strategies and a new, broader understanding of nature. The time period indicated in the title refers to two hypothetical dates from the field of popular science and science fiction classics. The 2030–2100 period opens with the expected date of exhaustion of world’s oil reserves and a perceptible shortage of drinking water, and ends with the once-

April-June 2019 CAPITAL IDEAS 89 LIFE&CULTURE Vasily Polenov September 26 — January 26, 2020 Tretyakov Gallery, Engineering Building, Lavrushinsky Lane 12, floors 2 & 3

scale series of paintings “From the Life of Christ,” a prominent educator, a theatre artists, an architect, and a public figure. For the first time, the exposition, which widely represents all facets of Polenov’s artistic activities, will focus on the artist’s key teaching principles. The section dedicated to his pedagogical activity will allow rethinking the significance of his contribution to the development of the Moscow School of Painting at the turn of the 19th and 20th centuries. The exhibition will feature over 150 works from collections of 16 Russian museums and private collections, which cover different periods and aspects of Polenov’s works: landscapes and portraits, historical paintings, religious paintings, sketches of theatrical scenery, and architectural projects. For the first time, the his exhibition presents the works of one of the 20th centuries. Vasily Polenov (1844–1927) Moscow public will be shown the monumental Tthe most widely-known Russian artists of is a master of universal ability, an innovator in canvas “Jesus and the Sinner,” provided by the the second half of the 19th and beginning of landscape painting, the author of the large- State Russian Museum (St. Petersburg).

Yoko Ono. The Sky Is Always Clear

his is Yoko Ono’s personal exhibition. Yoko October 15 — November 24 Ono is one of the most important figures T Moscow Museum of Modern Art, Petrovka 25 in the conceptualism movement of the 1960s, one of the representatives of the international Fluxus movement, which contributed to the development of performance, happening and video art, all while eroding the boundaries between mediums. Yoko Ono’s art combines both the methods of the art movements of the 1960s, with their rejection of fine arts in favor of expressing pure concepts and finding the answer to the question “what is art?”, as well as traditions of Eastern philosophy, such as Zen Buddhism. The exhibition will showcase the guiding principles of Yoko Ono's artistic practices and illustrate how the artist answered the question about the meaning of art and its political and social engagement. The central element of the exhibition will be the “Instructions” of Ono — a series of ephemeral works from the 1960s and later that are sometimes limited to textual instructions, sometimes taking the form of objects that await action from the viewer. This series has been compared to musical scores and hockey, as the artist outlines the contours of future actions taken by the viewers. In addition, the exhibition will feature a re- enactment of classical performances by Yoko Ono and her video works.

90 CAPITAL IDEAS April-June 2019 Oskar Schlemmer: dancing artist

October 28 - January 26, 2020 led a variety of workshops from 1921 to 1929. 19th and 20th Century European and American Art Gallery, From painting workshops to theater art Volokhonka 14 workshops, he did it all. It was under the leadership of Schlemmer that the theater his exhibition is dedicated to an important began to play an important role in organizing Tfigure in 20th century art — the German the life of the community of students and artist and choreographer Oskar Schlemmer teachers of the Bauhaus, reflecting the (1888–1943), who is considered one of whole the playful and experimental nature of the pioneers of contemporary dance and education in this institution. performance art. Dedicated to the 100-year Oskar Schlemmer’s objective as an artist was anniversary of the German Bauhaus School of to combine the avant-garde thinking of his era Design (founded in 1919), the exhibition also with humanistic ideas that date back to the will present the most important works of the aims to uncover the role of Schlemmer as one Renaissance. This is reflected in his pictorial artist, originating from the collection of Oskar of the leading teachers of this renowned art creativity, permeated with a desire for synthesis, Schlemmer’s theater archives of and a number school, where he, like a real homouniversalis, harmony, and universality. The exhibition of German museums. Faberge and the Court’s Jewels November 19 - April 30, 2020 State Historical Museum, Red Square 1 The exhibition will feature collections of rare works from the Faberge Jewelry House. The arl Faberge, a jeweler by birth and a exhibits will feature items from the royal pal- Cmanager by vocation, was born in St. aces, memorabilia, jewels, and works in dif- Petersburg in 1846 among precious metals ferent styles — historical, folk motifs, national and gems. He inherited his father's jewelry romance, and silver sculptures. business and elevated it to unprecedented heights. The name Carl Faberge, the court For the first time, objects from regimental supplier of the Russian Imperial Court and museums will be exhibited, and all works of many royal courts of Europe, known to the decorative and applied art will be comple- whole world, was a symbol for the genius of mented by portraits of paintings and comput- jewelry. er presentations. Gainsborough November 25 — February 9, 2020 An exhibition of this magnitude would have don, the Royal Academy of Arts, as well as the Pushkin State Museum of Fine Arts, Volokhonka Street 12 been impossible without the participation House Museum of the Artist in Sudbury. At the of the largest museum collections in the UK. exhibition in Moscow there will be landscapes Works of Gainsborough will be brought to on glass, which are almost never given to for- he Thomas Gainsborough (1727–1788) exhi- Moscow from the National Gallery of Lon- eign exhibitions. Tbition will allow you to get acquainted with the work of one of the founders of the 18th century British school, the most prominent and unique representative of the era that is called the “Golden Age of British Painting.” Thomas Gainsborough is known as a brilliant portrait painter, a follower of the traditions of the great Anthony van Dyck, and the favorite artist of King George III and his family. Having carefully studied the traditions of Baroque and Rococo art, he was well acquainted with the works of the great old masters — Peter Paul Rubens, Antoine Watteau, and his school. Gainsbor- ough was also one of the first British painters who appreciated the inexhaustible possibilities of the landscape genre. His works, created over four decades, demonstrate the passion of the master toward the work of Jacob Reisdal, 17th century Dutch painting, and works by French landscape painter Claude Lorrain. Having absorbed the artistic experience of his great predecessors, the artist, who never left the borders of his country, managed to form his own style, which formed the basis for the further development of the British school.

April-June 2019 CAPITAL IDEAS 91 FOOD&DRINK Elgiz Abdulhakov on gastronomic shows and Flemish cuisine Elgiz Abdulhakov used to be the chef at the famous restaurateur Mikhail Zelman’s acclaimed project Goodman. He has also worked as a consultant, and his workshops were highly anticipated in just about every corner of the country even back when chefs weren’t trendy public figures of the restaurant business. Elgiz has worked abroad, in Estonia and Finland. People assumed that he would continue pursuing his career in the West, and would leave his position as a brand chef at Oxton Group OY in Helsinki to work with his old friend Mikhail Zelman in London. However, in a surprise to everyone, Abdulhakov appeared in Moscow and started working on Bird BQ — a restaurant with a focus on grilled poultry. After a successful opening and a spike in popularity, the new restaurant suddenly adjusted the menu. Along with poultry, it started offering Flemish cuisine, with a focus on mussels. Capital Ideas decided to chat with Elgiz about the details in person.

92 CAPITAL IDEAS April-June 2019 April-June 2019 CAPITAL IDEAS 93 FOOD&DRINK

How did you become interested in Belgian cuisine?

I was always interested in experimenting with products and unusual presentations for different dishes. It’s working at the intersection of art and cuisine in a very direct sense of the word. When I got an offer from a well-respected Euro- pean state organization responsible for developing tourism in Belgium, I accepted it right away. The Lambic beer restaurant chain, which was selected to be Finland’s ambassador in Russia, is managed by the company Upster, which also owns the brand Bird BQ. This is why we made the decision to jointly focus on topics related to artists — great Flemish masters. And we changed the sign in front of the restaurant, which now reads “Lambic” instead of Bird BQ. In the very near future, the space will host a number of events dedicated to Belgian culture.

For a whole month, we had an original menu with dishes from the era of Pieter Bruegel. And the presentation was creative as well. For example, the “Three Appetizer Palette” looked like

94 CAPITAL IDEAS April-June 2019 a real palette from a Renaissance-era workspace, but instead of paints the board had different kinds of sauces on it. I like to be creative in this respect, and am especially excited about events dedicated to the Belgian surrealist painter René Mag- ritte. We already have a few unusual culinary ideas that reflect the spirit of his art.

Where do you get the inspiration for your gastronomic ex- periments?

I’ve been lucky enough to travel to many places, and I advise people who have decided to dedicate their lives to the restaurant business to find opportunities to travel and see different kinds of restaurants. This really changes the way you think and your attitudes toward the hospitality industry. This can be special educational programs or tours of the best restaurants, which you can easily find online these days. Of course, everything depends on the type of sphere you work in. But it’s undeniable that there are still gastronomic centers, like France or the US, where I really recommend go-

April-June 2019 CAPITAL IDEAS 95 FOOD&DRINK

ing. The US is completely different — New York has its own culture, Chicago has something different, and California is unlike anything else. In the US, people really like to turn the kitchen into a stage, putting on an endless, vibrant culinary show. And I share this take on restaurants, I like this approach where I can feel like I’m behind the stove together with the actors and director of a gastronomic theatre. I’m ready to grab a whip and chase after cooks in the kitchen if this makes sense within the scope of a performance. My colleagues and I gladly get creative in this respect, generat- ing ideas, each one bolder than the one that came before it. Our restaurant has a unique horizontal turnspit, and once a week I’ll be using it to cook a whole lamb. We’ll arrange all the tables in a way that lets all of our guests see me doing it. I plan on putting on a show that’s even better than what they do in the US.

After two years of working in Finland, you decided to come back to Moscow...

I got a really interesting offer — to take part in developing a new concept for a restaurant based on poultry. I wanted to immerse myself in this and to start introducing guests to unusual marinades and the art of cooking over a fire. But now that we’ve worked out a menu and thought of many ways to cook poultry, I want to move on. I’ve already learned how to cook chicken in a way that makes it taste like Peking duck. Now I want to do something new within the scope of Flem- ish traditions, and I’m discovering the opportunities a product like mussels has to offer. As is my usual custom, I’m trying to genuinely master this subject. There are people about whom others say “he will go far,” but in my case people say “he’ll dig deep”!

By the way, mussels used to be one of the most popular foods for prehistoric humans. The thing is that gathering these mollusks in no way put people’s lives in danger, unlike hunting, which could easily wipe out a third of a tribe. Our ancestors ate mussels every day, so if anybody ever wants to return to their roots, they can revive this practice. I think this makes a lot more sense than raw foodism and other popular healthy lifestyle trends.

Where are the mussels shipped to your restaurant from?

I’m a fan of Russian products, so frozen food from Chile or Chi- na don’t interest me much. I like domestic products, from the White Sea. By the way, the mollusks that live in cold waters taste better than the ones that live in warmer temperatures. And one of the many factors that impacts the size of a mol- lusk is how salty the water it. This is why the species from the Baltic or Black Sea are much smaller than the large mussels from the White Sea. They come to us live, and I highly recommend making space in your busy schedule to pop into Lambic on Gogol Boulevard! ■

96 CAPITAL IDEAS April-June 2019

When a woman does a man’s work, the family thrives.

Chinese proverb