STRATEGIES FOR BUSINESS IN MOSCOW

An ounce of discretion is worth a pound of learning

A PROPOS

It happened a little over twenty years ago. At the time, For four years, the city has been successfully imple- I was working for the international department at a menting the state program “Safe City,” which will last newspaper in Moscow. I was asked to interview some through 2018. According to official data, the number of big chief from the Moscow police force, who had just homicides and homicide attempts has decreased by come back from a work trip during which he visited 21 percent since the program was introduced, the and talked with colleagues in Toronto. I remember how number of robberies and vehicle hijacking incidents excited he was to tell me about how professional and dropped by 32 percent and the number of apartment efficient the Canadian police force was. But more than burglaries has decreased by 30 percent. Right now, anything else, I was struck by a sudden confession the for example, there are over 140,000 video surveillance chief made: “When I was in Toronto, I felt safer walking cameras operating in Moscow, including in residential outside than I do on the streets of Moscow.” buildings, courtyards, schools, public areas, roads and retail outlets. These video surveillance cameras are used The nineties were here - a period of time during which to record and investigate 70 percent of violations and violent crime in Russia skyrocketed. When I passed on crimes committed in the Russian capital. the interview to the editor, I thought for sure that they would take this part of the interview out. But they left However, safety is a relative concept. It includes not it in. We had just started glasnost and perestorika. We only personal safety and digital security, but also health were discovering the world, and were opening ourselves security and infrastructure. The Moscow authorities un- up to new ideas as well. derstand this completely. For example, for the first time in several years, according to research carried out by A lot has changed since then and, unfortunately, not all the Dutch company TomTom, Moscow moved from first of these changes were for the best. The world has cer- to fourth place (after Istanbul, Mexico City and Rio de tainly not become any safer. Is there any place left on Janeiro) in terms of traffic congestion. This, of course, is Earth where a person can feel completely safe today? not an enormous accomplishment, but it does indicate a Be that as it may, the Moscow government is doing positive trend. The authorities are working to resolve the everything in its power to ensure that Muscovites and city’s transportation problem, constantly building new the foreigners who come here for work or travel do not roads, highways, tunnels, bridges and pedestrian areas. fear for their safety. It is no surprise that during one of And this is the case with everything. Moscow is truly the government meetings, Mayor of Moscow Sergey becoming a better place to live every year - cleaner, Sobyanin said that it is not only important to make more convenient and safer for residents and business. improvements to public spaces and create comfortable areas, but also to ensure that these areas are safe.

Sergo Kukhianidze Editor in Chief

[email protected] CAPITAL IDEAS Founder: Department for External Economic and International Relations of the Government of Moscow Address: Tverskaya, 13, Moscow, 125032. Ph: +7 (495) 633-68-66, Fax: +7 (495) 633-68-65 Moscow Official E-mail: [email protected] www.dvms.mos.ru Moscow Urban Forum 2016: Editorial staff: creating comfortable cities Editor-in-chief – Sergo Kukhianidze Production crew of the edition: Elena Egorova (deputy editor-in-chief), The VI Moscow Urban Forum took place right by the Kremlin Tatyana Akimova, Gennady Charodeev, Vladimir Dolmatov, Marina Ershova, walls, at the Moscow Manege. The main subject of the forum was “Fast-Growing Megacities. Technologies of Dynamic Evgeny Khokhlov, Sergei Levin, Pavel Lukyanov, Marina Ogorodnikova, Development.” Anastassia Paloni, Vladimir Smelov, Anna Tomkins 6 – 8 CAPITAL IDEAS STRATEGIES FOR BUSINESS IN MOSCOW

Publisher: Moscow Center for International Cooperation 9 CEO: Sergei Anikanov Address: 105005, 68/8, build.1, Baumanskaya str., Moscow, Russia City’s graph Phone: +7 (499) 267-46-56 State program of the city E-mail: [email protected] General Partner: National Review Ltd of Moscow “Safe city”, CEO – Sergei Oposhnyanskiy Phone.: +7 (495) 784-69-71 2012-2018 E-mail: [email protected] 10-12 Consulting – Gennady Charodeev, Evgeny Khokhlov Design – Robert Saifulin Moscow official Photo editor – Victoriya Oposhnyanskaya Page layout – Alexander Saifulin Support from the Moscow Assistant – Nadezhda Ratanova Government boosts Distribution – "Trans-Media" Ltd Acknowledgements to: investment PHOTO – www.mos.ru, www.dvms.mos.ru, ITAR TASS Agency, RIA-Novosti, Moscow rose to 10th place in Russian investment Getty Images Russia, companies and organizations, represented in the issue. rating, securing its place among a group of regions If you wish to get new issues of Capital Ideas, please, apply to: [email protected] that can offer comfortable conditions for business The magazine is registered with at the Federal Authority of Legislative Control in Mass Media and Cultural Heritage Protection. Media registration certificate ФС77-53716, issued April 26, 2013. All reproduction permitted only with the Editor’s permission and reference to ‘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 Moscow official A friendship that has lasted decades Our interview A number of joint Moscow-Belarusian News documents were signed during Moscow David Waroquire: Days in Minsk. Mayor of Moscow Sergey Life, Luxembourg Sobyanin and Chairman of the Minsk Our network is becoming City Executive Committee Andrei Shorets style: education plus signed a plan that outlines measures for bigger everyday the Republic of Belarus and the City of innovation “To understand the country you need, as I say, Moscow on the development of trade and At the end of June, Luxembourg hosted a to push the door”, said David Waroquire, one of economic, research, technical and social conference called “Moscow - the city of the partners at Mangrove Capital Partners, in an cooperation for 2016-2018. business and innovations.” exclusive interview with Capital Ideas. 14 – 15 22 – 23 24 – 25

16 – 19 Moscow Official Moscow paves way to Paris For a period of almost two weeks, Days of Moscow took place for the first time in Paris, Strasbourg and Nice. Business, cultural and athletic events, which were organized by Muscovites, were widely covered by the local media and attracted the attention of tens of thousands of regular French citizens, politicians and business representatives.

20 – 21 News Plenty of opportunity for cooperation Singapore targets innovation Talks in Vienna City Hall

July-September 2016 CAPITAL IDEAS 3 Nothing Ventured Moscow Global Philippe Cohen: Face to Face Janos Balla: The market will start Alexei Mayorov: Moscow has become developing again soon The capital is younger and more “In my opinion, the number of companies that think Russia has become a dangerous becoming safer welcoming place and it’s best to leave the market is very Head of the Moscow Department of Ambassador Extraordinary and small. It is obvious that every market has its Regional Security and Anti-Corruption Plenipotentiary of Hungary to Russia ups and downs,” said Philippe Cohen, CEO Activities answered our questions in an answered questions in an exclusive of АristonThermoRus, in a conversation with exclusive interview interview with Capital Ideas. Capital Ideas. 26-30 38 – 43 52-56

31 44 – 46 58 – 60 City’s Graph Nothing Ventured Nothing Ventured “Safe City” program Belgian sweets from Zafer Ustuner:

32-35 Dubna We have ambitious What’s new What is the secret behind our love for sweet plans for the future things? Belgian chocolatier Thierry Pete, 36 – 37 who opened an ALEXANDRA Le Chocolat The Turkish company BEKO has been operating in Russia since the late 90s. Moscow in words chocolate plant in Dubna, certainly knows how to answer his question. ZaferUstuner, the CEO of the Russian company, talked to Capital Ideas about 48-51 how BEKO’s operations in Russia are currently going. We agreed ahead of Nothing Ventured time to not discuss the sensitive topic of the crisis in Russian-Turkish relations: Hiroshi Furuta: business is not at fault here and business Deeper into Russian people can’t fix anything without help market with high tech from politicians. “A crisis is a temporary phenomenon: as the economy starts to recover, business will adapt to new market conditions, launch new mechanisms for growth and will continue to develop,” said the General Director of Mitsubishi Electric (Russia) LLC in an interview with Capital Ideas

4 CAPITAL IDEAS July-September 2016 Our interview Life&Culture Nothing Ventured Vladimir Urin: LA SCALA: Geutebrück’s watchful Getting to know another country through art Welcome to Moscow! eye, in Russia In a big city like Moscow, everybody can find The equipment manufactured by Geutebrück, destroys bias something entertaining to do over the next few a German company with headquarters in T“At its core, Russian art is based on months. It all depends on what your interests Windhagen, can’t be purchased at shopping humanistic values that stress relationships are. Some will be interested in checking out Ivan centers and isn’t advertised by the media. between people,” said the General Director of Aivazovsky’s work, while others will opt to visit a Nonetheless, Geutebrück products are in the Bolshoi Theatre in an exclusive interview performance put on by the world-famous La Scala demand. with the editor in chief of Capital Ideas theatre, which is currently on tour.. 62 – 65 74 – 77 86 – 91

66-69 78 – 79 92 – 96 Our Interview This and That Food&Drink City’s safety under control The mysteries of Russian ARAGVI: of video cameras dacha Want to become part of When it comes to safe urban environments, the first There are some Russian words that never a legend? thing that comes to mind is safety on the roads. need to be translated. One of them is the word Traffic regulations are a fundamental component “dacha.” Are you sure you know exactly what The main culinary event of this spring was of road safety and everybody needs to follow them this word means? the opening of the restaurant Aragvi in all of the time. The work that is aimed at creating Moscow. The restaurant re-opened its doors a secure environment in Russian megacities is 80 – 85 after restoration. It is no surprise that Sergey Sobyanin, the Mayor of Moscow himself, implemented at the national level. Travel talked about the opening. After visiting the 70 – 71 restaurant, the mayor noted: “Aragvi should The Oldest Monasteries become a very popular place!”. To what does Travel in Moscow: places of Aragvi owe the honor? Olga Strada: worship and fortresses It’s important to love with We want to introduce our readers to a rare and amazing page in the chronicles of our city – a your head as much as with city with an extensive history that has survived your heart many raids and remained standing through the toughest years, which kept growing and Thirty years ago, an Italian Cultural Institute becoming more beautiful over the course of opened in Moscow. Why? several centuries. For the most part, Moscow was able to survive due to the monasteries, the 72 – 73 construction of which was the brainchild of the Moscow Vocabulary rulers of the Moscow kingdom

July-September 2016 CAPITAL IDEAS 5 MOSCOW OFFICIAL Moscow Urban Forum 2016:

The VI Moscow Urban Forum took place right by the Kremlin walls, at the Moscow Manege. The main subject of the forum was “Fast-Growing Megacities. creating comfortable cities Technologies of Dynamic Development.”

he Moscow Urban Forum, which takes place annu- ally under the auspices of the Government of Mos- cow, has become a unique platform that gives urban developers and the heads of the biggest megacities in the world a chance to discuss relevant issues and Tspecific projects with representatives of the international ex- pert community.

Delegations from 70 of the largest cities in the world took part in panel discussions, presentations, lectures and work- shops with the scope of the forum. The Forum was also at- tended by dozens of urban developers, architects, scientists and city mayors from the EU, US, Mexico, India Japan and many other countries.

“Interest toward our event is fueled by the fact that Moscow is rapidly developing. The Russian capital is becoming more in- teresting in experts working in the fields of municipal services and architecture,” Mayor of Moscow Sergey Sobyanin said.

6 CAPITAL IDEAS July-September 2016 Moscow Urban Forum 2016: creating comfortable cities

According to him, the ideal city entails minimal travel and a platforms dedicated to specific development concepts of the comfortable urban environment. Russian capital. Halls named after famous people in the field of urban development – Shukhov, Shchusev, Schechtel, Ka- Mr. Sobyanin thinks that city development problems con- zakov – brought together architects, professors, politicians, nected to urbanization, population growth and other chal- public figures and business representatives from Russia and lenges require more attention. New technologies and man- agement solutions must be implemented.

“Yes, there is fierce competition between the world’s mega- cities. But it is also true that we complement each other, maintaining civilized relations between countries and major regions in fields such as culture, the economy and technol- ogy. This produces great synergy for development. We have the same problems, and face modern-day challenges. This includes migration, safety, overcrowding, infrastructure de- velopment and a host of other issues,” the mayor said.

During the first day of the Moscow Urban Forum, the Mos- cow Manege was turned into a space split up into different MOSCOW OFFICIAL

other countries. During open discussions, they touched on in online mode. It turned out that residents are dissatisfied important topics such as the future of transportation sys- with the lack of parking spaces and inconvenient locations of tems, equity economy strategies, cultural heritage and inno- recreational areas. vative technology. An exhibition of megaprojects that are being implemented in “We want to inspire people to build amazing cities and buildings Moscow was also a part of the forum. The exhibition included, where technology gives people the opportunity to choose their among other things, the landscape park Zaryadye, VDNKh, ZIL own lifestyles and provides companies with unlimited opportu- and the Moscow Ring Railway. According to urban developers nities for innovation,” said Stan Gale, Chairman and Managing in Moscow, megaprojects are the drivers of urban develop- Partner at the American company Gate International. ment and factors of economic growth. At the same time, they present huge risks and unpredictable challenges. The pavilion “City of the Future,” where the walls were turned into giant informational monitors, was of great inter- Foreign megaprojects got a lot of attention as well. Special est to the public. Here, visitors could find out what Musco- presentations were dedicated to the construction of the ar- vites though about housing and public utilities, for example, tificial archipelago “The Universe” and the eco-city Masdar City in the United Arab Emirates, the engineering miracle of the Singapore island of Sentosa, the revival of the Cheon- ggyecheon waterway in Seoul, the “Big Paris” project and many others.

The heart of the Manege was a stand dedicated to the global study “Urban Index 2016,” which reflected the state of global urban environments across the main criteria: the environ- ment, housing, security, roads and transport, municipal engi- neering, and emergency services, social services facilities, city management quality and satisfaction of the target groups.

Over 2,000 world-renowned experts took part in the study. The specialists focused on 13 Russian megacities and 15 rap- idly expanding global megacities.

It turned out that Omsk, Volgograd and São Paulo did not meet the urban environment criteria outlined by the index, which Kazan, Shanghai, Beijing and Moscow were among the leaders in this sphere. ■

8 CAPITAL IDEAS July-September 2016 CITY’S GRAPH

State program of the city of Moscow “Safe city”, 2012-2018

Prevention of terrorist attacks and increasing the percent of transport infrastructure facilities, municipal service facilities, social service and athletic facilities, unique, high-rise and underground buildings, and places of mass recreation equipped with engineering and technical safety measures and anti-terrorism protection to 100% by 2018.

Annual 1-2 % decrease in the total number of crimes, including on the streets and in places of mass recreation

Annual 2-3 % decrease in the number of crimes committed by minors and targeting minors, as well as the number of extremism-related crimes

10-15 % decrease in the number of corruption-related violations across executive bodies of the City of Moscow (compared with 2010)

2-3 % decrease in the number of crimes related to drug trafficking identified in places of mass recreation and in educational institutions

Annual 2-3 % decrease in the number of road and transportation incidents, and the number of administrative traffic violations (compared to 2010)

Annual minimization of damage caused by emergencies, fires and accidents on water bodies

An increase in the share of offenses detected with the help of video surveillance cameras (residential sector)

from 4,5 % in 2010 to 30 % in 2018

7-9 % decrease in illegal migration, as well as the development of comprehensive, accurate, timely and relevant information about the relocation of foreign nationals

July-September 2016 CAPITAL IDEAS 9 MOSCOW OFFICIAL

Support from the Moscow government boosts investment Moscow rose to 10th place in Russia’s investment rating, securing its place among a group of regions that can offer comfortable conditions for business. Natalya Sergunina, Deputy Mayor for Economic Policy and Property and Land Relations, made the announcement during the economic forum in St. Petersburg. fter going over the data provided by the tors such as investment in production, revenue per Strategic Initiatives Agency, which puts hectare and average salary.” the rating together, Natalya Sergunina notes that the jump in ratings is a reflec- The city has already assigned the status to 22 tech- tion of the work done by the Government noparks. 90% of technopark residents are small or Aof Moscow over the past 5 years. The authorities medium-size enterprises. worked to simplify and shorten the time it takes to complete administrative procedures, implemented Minister of the Moscow Government and Head of electronic technology and, most importantly, devel- the Department of Economic Policy and Moscow oped benefits systems and other ways of support- City Development Maksim Reshetnikov pointed out ing entrepreneurs. that a rating score is a tool, not an end goal in itself. “What is important for the city, for Muscovites, isn’t Legislation aimed at supporting investors and ac- the score itself, but investment, the creation of new tive companies has been passed. “Real sector enter- high-paying jobs for qualified personnel and good prises are assigned the status of ‘industrial complex,’ standards of living,” he pointed out. The minister also ‘technopark’ or ‘industrial park,’” the Deputy Mayor pointed out that an efficient feedback system be- explained, “thanks to the introduction of these sta- tween business and the authorities has been estab- tuses and clearly defined criteria for obtaining them, lished over the past few years. Almost all of the deci- we shifted from providing individual companies with sions that can affect the business climate are made benefits to supporting effective enterprises and ter- with input from the business community. ritories. This has allowed us to reformat the activi- ties of big business. Now, our goal is to ensure that It’s worth noting that representatives from the busi- business is interested in developing their platforms ness community and experts evaluate each region and participating in the procurement process. We across four key areas when putting the rating to- also support effective enterprises based on indica- gether: regulatory climate, institutions for business,

July-September 2016 CAPITAL IDEAS 11 MOSCOW OFFICIAL

infrastructure quality and availability and small busi- took part in the forum, pointed out that the overall ness support. reduction of the tax burden for industrial companies within the scope of the new support mechanism will During the economic forum in St. Petersburg, the amount to up to 25% depending on status (industrial Moscow Government discussed measures for sup- complex, technopark or industrial park). “Tax breaks porting the industrial sector with investors. Natalya are applied to the income tax, property tax and land Sergunina, Deputy Mayor for Economic Policy and tax,” the minister explained, “Support is provided to Property and Land Relations, met with representa- enterprises that effectively use their territory, invest tives of international industrial companies. actively and pay high salaries.”

Meeting participants discussed investment opportu- It is worth noting that the Moscow Government has nities of the capital, its specific advantages compared very recently assigned the status of “industrial com- to other mega-cities and key Moscow government plex” or “technopark” to another four companies. JSC initiatives taken to boost investment into the real Khlebozavod No.28 and JSC MTZ Transmash acquired economy. Natalya Sergunina introduced investors to “industrial complex” status, while LLC UK Phystech-21 a support mechanism for active effective enterprises and JSC RC Module acquired “technopark” status. Over and new investment projects. “The city is offering the past month, 10 companies have used the new sup- existing enterprises new tax breaks or land lease in- port measures. The total land plot area for all compa- centives,” she said, “while new investment projects nies that received benefits amounts to about 50 ha, can receive assistance with utilities, land plots and the number of employees totals 13,300 people, invest- protection from non-commercial risks.” ment volumes over 5 years amount to over 10.7 billion rub., while the annual salary fund is over 8 billion rub. According to the Deputy Mayor, the city govern- Over 40 companies that either conduct industrial and ment is developing an innovative infrastructure for research activities in Moscow or are planning to took advanced technology enterprises. The government is place in the event. The list of companies includes Pepsi- also working to promote the establishment of new Co, ABB, Renault, Schneider Electric, Samsung, Phillips, industrial parks and technoparks, where enterprises Abbott Laboratories, Airbus Group and others. Manag- will also have access to equipment, services and con- ers from a number of companies that are already taking sultations. advantage of benefits, including PepsiCo and Renault, gave high assessments of the support provided by the Minister of the Moscow Government and Head of Moscow Government, pointing out that the program the Department of Economic Policy and Moscow boosts investment volumes and promotes the devel- City Development Maksim Reshetnikov, who also opment of production. ■ 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.dvms.mos.ru 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.dnpp.mos.ru 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.depir.ru 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.dgi.mos.ru 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) 705 96 22 www.moex.com MOSCOW OFFICIAL

A friendship that has lasted decades Moscow Days took place in Minsk in the beginning of June

A number of joint Moscow-Belarusian bviously, Moscow and Minsk are connect- ed by an extensive history that stretches documents were signed during Moscow back centuries. Over the past 20 years, Days in June. Mayor of Moscow Sergey after the Soviet Union fell apart, we have maintained“O friendly relations with Belarus, with Minsk. Sobyanin and Chairman of the Minsk Our cooperation expands every year, encompassing City Executive Committee Andrei Shorets various sectors of the economy, from the social sphere to transportation, the municipal sector and so on. This signed a plan that outlines measures for the friendship, which has lasted decades, worked well when Republic of Belarus and the City of Moscow Moscow was going through a difficult time due to eco- nomic sanctions. Produce from Belarus entered the on the development of trade and economic, Moscow market and replaced many European goods, research, technical and social cooperation allowing Moscow to cruise through the crisis with rela- tive ease,” said Sergey Sobyanin, clarifying that signing for 2016-2018. the plan on cooperation is a testament to the fact that cooperation across these areas is due to expand.

During his opening speech for the business coop- eration forum in Minsk, which was organized by the Department for Foreign Economic and International since they hold the main research and industrial ca- Relations, Sergey Sobyanin thanked Belarusian agri- pacities of our governments. I hope that the forum cultural producers for their help with the food supply. will result in not just an increase in trade turnover, but also an increase in production potential for both re- The mayor pointed out that Moscow and the Republic gions,” Mr. Surikov said. of Belarus are not competitors, but that their econ- omies complement each other, helping each other In the evening, the Palace of the Republic hosted a through rough time periods. “The latest example is concert by the Pyatnitsky choir. At the Moscow House the food sanctions implemented by Europe against in Minsk, people’s artist of the USSR Vasily Lonovoy Moscow. Moscow came out almost unscathed in and performers from Moscow theatres presented the terms of the diversity and volume of products thanks project “Immortal Regiment.” to Belarusian agricultural producers, who filled a niche left open by Western suppliers.” A book exhibition helped Minsk residents get to know Moscow better. The exhibition was comprised of the According to Mr. Sobyanin, cooperation is not lim- best examples of publishing programs of the Govern- ited to produce supplies. The mayor pointed out that ment of the Russian capital, and a photo exhibition our mega-city is a serious consumer of construction entitled "My Moscow." There were also friendly hockey goods and services. Minsk producers have carved out matches between junior teams. The Muscovites won. a niche in this sphere. “I would like to thank Belaru- sians for their contribution to the construction of two The day after Moscow Days, Minsk held a plenary branches of the Moscow metro,” Sobyanin said. meeting for the Third Forum of Russian and Belaru- sian Regions, which was attended by leaders of the Chairman of the Minsk City Executive Committee An- two countries. Speaking before a large audience, Putin drei Shorets pointed out that the forum itself serves as praised the Muscovites: “Moscow Days in Minsk were testament to the fact that the two sides are moving a great success, and I would like to extend a special toward real, concrete cooperation and are starting to ‘Thank You’ to our capital’s Mayor, Sergey Sobyanin.” discuss urgent issues. These issues include public pro- curement, information technology, energy, transpor- Moreover, the President suggested that Belarusians tation and logistics. hold Minsk Days in Moscow. According to him, both sides are interested in organizing this event. Alexander Surikov, the Russian Ambassador to Belar- us, pointed out that the Minsk business cooperation President Putin’s praise was well-deserved. Moscow forum took place against the backdrop of a confer- Days, which have become a regular event in Minsk, were ence between the regions of Belarus and Russia. “We very well organized and tens of thousands of Belarusian welcome close cooperation between the capitals, citizens took part in cultural in business events. ■

July-September 2016 CAPITAL IDEAS 15 MOSCOW OFFICIAL

Moscow paves the way to Paris For a period of almost two weeks (June 1-12), Days of Moscow took place for the first time in Paris, Strasbourg and Nice. Business, cultural and athletic events, which were organized by Muscovites, were widely covered by the local media and attracted the attention of tens of thousands of regular French citizens, politicians and business representatives.

ays of Moscow in France, which started in Paris President of the Russian Chess Federation Anatoly Kar- in the beginning of June, were not hindered by pov. He played opponents across 22 boards at the same the strike, or the rainy weather, or even the time. The tournament was attended by both young chess fact that the river Seine burst its banks. players and older chess masters. Karpov won across 21 D boards. The most persistent chess player was 12-year-old In the early hours of the morning, hundreds of Frenchmen Anuk Shemla, who is the chess champion among teen- that wanted to play the twelfth world champion and Vice agers in Paris. The match ended on a draw. Anatoly Karpov set a positive atmosphere for all the needs of the poor. We have the same goal - to im- other official events that took place within the scope prove the standard of living for people. Parisians pro- of Moscow Days across three French cities – Paris, pose working with Muscovites on creating a city of Strasbourg and Nice. the future – Intelligent City.”

The mayors of Moscow and Paris, Sergey Sobyanin “Big Paris,” according to Maurice Leroy, entails the and Anne Hidalgo signed the Programme of Coopera- improvement of the entire metropolitan area and the tion for 2016-2018 after chatting about Paris and the creation of a single management mechanism. challenges the two megacities face. First and fore- most, the new document entails the development of “Unlike ‘Big Moscow,’ Paris is just now starting this bilateral cooperation in the sphere of economic ties. project, which totals about 30 billion euros in invest- There are hundreds of French enterprises that are ac- ment and will be completed by 2030. It will allow the credited in Moscow today. According to Sergey Soby- department to create about 1 million jobs, so the in- anin, the programme should “give new impetus to the vestment in city development is an investment in our establishment of contacts between the French busi- future,” the project curator said. ness community and Russian companies." Alexander Orlov, the Russian Ambassador to France, The conversation between the Mayor of Moscow and thanked French companies for staying on the Rus- deputy of the Yvelines Valérie Pécresse was equally sian market in spite of the sanctions. He also said that important. She said that the region currently does “France today is in first place in terms of investments not have economic ties with Russia at all. However, into the Russian economy.” the region’s administration is ready to develop coop- eration with the Russian capital in terms of creating a Moscow Government minister, head of the Depart- cultural space, training medical personnel and educa- ment for External Economic and International Rela- tion. The region is also interested in developing joint tions (DVMS) Sergey Cheremin said the following IT projects. about the forum: “Today, ‘Big Paris’ and ‘Big Moscow’ are the most ambitious projects in Europe. We hope to The central event of Moscow Days in the French capital continue actively cooperating with Paris across all ar- was the plenary session for the business forum on coop- eas of the economy and life in general. I am confident eration called “Big Moscow - Big Paris.” Sergey Sobyanin that Moscow Days will become a serious foundation opened up the discussion. According to him, the chal- for active cooperation between our two capitals and lenges facing the two megacities are similar in many re- the embodiment of the strong friendship between spects. “Both Moscow and Paris are undergoing major Russia and France.” changes right now. The ‘Big Moscow’ project entails the creation of new residential quarters, new service net- Muscovites brought an interesting cultural pro- works and improvements to areas around the Moscow gramme to Paris, which opened with an exhibition of River. Both megacities need a lot in terms of investment works by the famous Russian photographer Sergey volumes,” the mayor of the Russian capital said. Chelnokov called “Russia and Europe at the Turn of the Century.” The Moscow dance ensemble Gzhel and The curator of the “Big Paris” project Maurice Leroy is the quartet KVATRO performed at the concert hall of of the same opinion. “Yes, big changes lie ahead for our the Russian Embassy in Paris. Ilona Bronevitskaya, the cities,” he said, “We are going to erect modern houses, concert lead, impressed the guests with her knowl- build convenient highways and work on meeting the edge of the French language. ■

July-September 2016 CAPITAL IDEAS 17 MOSCOW OFFICIAL

Nice against anti-Russian sanctions

Moscow Government minister, head of the ergey Cheremin noted that signing the docu- ment marked the beginning of a new era of co- Department for External Economic and operation between the two cities. “I don’t have International Relations (DVMS) Sergey any doubts that combining our efforts in solving Seconomic and social problems that face Moscow and Cheremin and Mayor of Nice Christian Nice will result in stronger peaceful ties between our Estrosi held a business conversation at peoples, improved welfare and more comfortable liv- ing conditions,” the head of the DVMS said. the Nice City Hall. Local representatives and multiple journalists were present “Our relationship with the Russian capital is geared toward the future,” Mr. Estrosi said, “Nice is prepared when Mr. Cheremin and Mr. Estrosi signed to share its experience in urban management, culture a Memorandum of Understanding. The and tourism with Moscow.”

document entails the strengthening of The mayor of Nice also pointed out that he has always cooperating between the two cities in the been opposed to the sanctions against Russia. “Even is the EU and France don’t lift them,” he said, “Nice will fields of transportation, tourism, the hotel follow its own path anyway.” In his opinion, sanctions industry, culture, education, power and the work against any kind of cooperation, which is “ex- tremely flawed policy.” creation and development of a barrier-free urban environment. Within the scope of Moscow Days in Nice, the French Riviera capital hosted a conference titled “Doing Busi- ness in Moscow,” which was attended by business representatives from both cities. During his address, Sergey Cheremin talked about the rapid develop- ment of the Russian capital’s transport infrastruc- ture, the preparation of athletic facilities for the FIFA World Cup in 2018, the development of areas around the Moscow River, improvements to the city’s public spaces and the renovation of industrial areas.

The Minister invited French companies to participate in the implementation of a project for the establish- ment of a new medical cluster in Moscow and possible set up local enterprises, since Russian legislation now allows the involvement of foreign experts for such projects. The head of DVMS gave a speech during the roundtable discussion entitled “The Specifics of Set- ting Up Tourist Infrastructure in Moscow and Nice,” as well as during the meeting with Russian compatriots. and French business structures. They will help with finances, take part in the education process and em- The business program for Moscow Days in Nice con- ploy students. Students will have the opportunity to tinued with a conference on education. The establish- choose an education program or participate in an ex- ment of a Russian-French university network. Sergey change program in September of next year. Cheremin, who spoke at the conference, said that “this is a unique international project that will help During the final Moscow Day in France, the Moscow increase the number of Russian students studying in delegation and heads of the Nice city administration France and vice versa.” jointly paid tribute to the pilots of the French squadron "Normandy-Neman." The ceremony took place next The President of the University of Nice and concur- to the statue to the statue of Louis Delfino. A native rently the President of the Russian-French Univer- of the Mediterranean city, he was the commandant of sity Frederic Vidal thinks that our countries have six the legendary regiment that fought side-by-side with months in order to develop joint educational pro- Russian pilots against the enemy during WWII. grams. Moreover, the two sides hope to increase ex- change student volumes, recognize higher education Moscow Days also included a solemn service in honor diplomas of the two countries and put together a sci- of the new opening of the Russian Orthodox St. Nich- entific research plan. olas Cathedral. It was built in Nice in 1912 on dona- tions from the Russian community and personal funds The first developments are set to be discussed in from the Royal Family. Moscow restorers took an ac- January 2017. The universities will soon start to form tive part in rebuilding the temple, restoring its unique a Board of Trustees, which will include both Russian frescoes and icons. ■

July-September 2016 CAPITAL IDEAS 19 MOSCOW OFFICIAL Plenty of opportunity for cooperation

oscow and Leipzig have a wide range of opportunities for co- operation and development of joint events in the field of the economy,M culture and social policy, said the Mayor of Moscow Sergey Sobyanin during a meeting with Leipzig’s Ober- stantly changing for the better. We talked In turn, Leipzig’s Oberbürgermeister bürgermeister Burkhard Jung. a lot about the problem of restoring old thanked the mayor for his fruitful coop- cities, and here I can see that Mr, Jung and eration and high praise expressed for the “I am very glad to visit this wonderful city, his team are actively working to clean up Leipzig team. which we have talked about often. I al- the city and its historical buildings. It looks ready told Mr. Jung that I am in awe of great,” Sergey Sobyanin said. “We are truly confident that all of the chal- Leipzig and can see that the city is con- lenges we see now at the European and in- He thanked his German colleagues for ternational level can be overcome with co- cooperation in restoring the Svyato- operation between citizens and cities. We Aleksievsky Church, which a monument must do everything we can to strengthen to Russian glory in Leipzig. “I want to and preserve our friendship. Then, our rela- especially thank Mr. Jung for our joint tions will become stronger in our big Euro- project on the restoration of the Svyato- pean home, will improve thanks to us and Aleksievsky Church, which is dedicated our cooperation,” Burkhard Jung said. to the Russian soldiers who died on this land during the war 200 years ago. His- The Moscow delegation that visited torical memory, the memory of joint bat- Leipzig included the Deputy Mayor, Mos- tles, joint events and joint history serve cow Mayor's advisor on Moscow trans- as a testament to the fact that even in port and road and transport infrastructure today’s times, which are challenging for development Maksim Liksutov and Mos- Moscow and Leipzig, Russia and Germa- cow Government Minister, head of the ny will always find common ground, will Department for External Economic and always be able to resolve the most chal- International Relations (DVMS) Sergey lenging political and economic issues,” Cheremin, Moscow's chief archaeologist the Mayor of Moscow said. Leonid Kondrashev and other officials. ■ Singapore targets innovation Talks in Vienna City hall

he Government of Moscow plans on signing a new cooperation pro- gram with the magistrate of Vienna, head of the Department for Exter- nalT Economic and International Relations (DVMS) Sergey Cheremin said during a meeting with Deputy Mayor of the City of Vienna Renate Brauner.

During the talks in Vienna City Hall, Ser- gey Cheremin pointed out that relations between the capitals of Russia and Austria were established 25 years ago. The Memo- randum of Friendship and Cooperation was signed in 1991. Over the course of the years, there has been an active working re- ed about the Moscow government’s plans lationship between the heads of the two to attract foreign investors and presented cities, along with forums, meetings, talks, key investment projects in the city. and discussions regarding new projects. In June 2013, Vienna Days took place in Mos- Renate Brauner, in turn, also said a few cow. In 2014, Vienna hosted Moscow Days. words in favor of signing a new coopera- tion program between the two capitals. “A lot of Austrian enterprises are success- According to her, Vienna’s Oberbürger- fully operating in Moscow,” the head of the meister would be happy to sign this docu- DVMS noted, “But, unfortunately, in light ment during Sergey Sobyanin’s upcoming of the economic sanctions, trade turnover visit to Austria. between Moscow and Austria fell by 1.7 times in 2015 compared to 2014. It is in our The Deputy Mayor was happy to point out mutual interest to reverse this trend.” that the Russian Federation is on the list of top ten largest investors in Austria. Ac- Sergey Cheremin said that the conference cording to the information she has, there “Moscow: the City for Business,” which are currently 220 Russian companies op- took place at the Austrian Federal Eco- erating in Vienna. About half of them nomic Chamber, demonstrated that Aus- are from Moscow. At the same time, the trian companies are extremely interested number of tourists from Moscow dropped in working with Russia and Moscow. At considerably in 2015, which is why Vienna’s the Vienna forum, which was attended by officials think that is it important to take top-managers from over 200 enterprises additional measures in order to develop bi- and companies in Austria, Muscovites talk- lateral cooperation in this area. ■

he Russian capital is interested in ment of the vast majority of them were Lee Hsien Loong, in turn, added that cooperating with Singapore in the funded by private investments. Consider- such an active presence of Russian sphere of innovative technology, ing Singapore’s focus on innovation, I think companies on the Singapore market is the Mayor of Moscow said during a that we need to increase our cooperation significant for the economies of both meetingT with the Prime Minister of Singa- in this area,” Sergey Sobyanin said. countries. “I know about development pore Lee Hsien Loong. The talks were also plans for the city in areas such as trans- attended by Marat Khusnullin, the Mos- “I hope that this meeting will give addi- port and architecture. We will be glad cow Deputy Mayor for Urban Develop- tional impetus for cooperation. We are to take part in Moscow development ment and Construction and Moscow Gov- extremely interested in Singapore’s experi- projects and happy to work with you,” ernment Minister, head of the Department ence in terms of the economy, the social the prime minister said. for External Economic and International sphere, and management systems. In spite Relations (DVMS) Sergey Cheremin. of the crisis, Moscow continues to develop This year, Moscow Days will take actively. Capital investment volumes into place for the first time in Moscow. “I “We started to actively promote the devel- the city economy did not decrease last am sure that Days of Moscow in Sin- opment of technoparks and technopolises year, and the number of commissioned gapore will go by successfully. I will in Moscow. There are about 20 innovation capital construction facilities hit record gladly support this event,” Lee Hsien centers operating today. The establish- numbers,” the capital’s mayor said. Loong said. ■

July-September 2016 CAPITAL IDEAS 21 MOSCOW OFFICIAL

Life, Luxembourg style: Education plus innovation At the end of June, Luxembourg hosted a conference called “Moscow - the city of business and innovations.”

It’s tough to find two cities that are more different that the capital of Russia and the capital of the Grand Duchy of Luxembourg. They are, to put it mildly, in entirely different weight categories. Here is one fact: there are 15 million people living in Moscow, and 180,000 living in Luxembourg. Nonetheless, the cities have a long-standing relationship. Recently, this relationship has strengthened. This happened during a two-day visit of the Moscow Government delegation, headed by the Moscow Government minister, head of the Department for External Economic and International Relations (DVMS) Sergey Cheremin. The delegation was in town to participate in a conference called “Moscow - the city of business and innovations.”

efore the conference, the delegation visited the to diversify their economies. Both sides are actively Ministry of Economy of Luxembourg, where is- looking toward innovative projects across different sues of economic development of both cities areas, which makes the two cities even more alike. and countries were discussed. Turns out that, inB spite of differences, we have things in common: The conversation that began in the Ministry contin- both Moscow and Luxembourg have recently started ued during the conference, which took place at the Chamber of Commerce of Luxembourg – one of the neurs acquire the knowledge necessary to do busi- oldest chambers of commerce in Europe, which is cel- ness and finances startups that have a lot of poten- ebrating its 175th anniversary this year. tial. After exchanging opinions, the participants of the meeting agreed that there are two things at the Jeannot Erpelding, Director of International Affairs at foundation of any successful project: original ideas Chamber of Commerce in Luxembourg, gave the open- plus commitment. ing address. He noted that there has been an increase in mutual interest between Luxembourg and Moscow. A business meeting at Mangrove Capital Partners Headquarters, one of the largest venture funds in Eu- During his speech, Sergey Cheremin urged business rope, took place on the sidelines of the conference. people to not pay much attention to what the West- David Waroquier and Mark Tluszcz, both company ern media writes about Moscow, since the published executives that have long-term ties with the Rus- information rarely has much to do with reality. The sian capital (primarily in e-commerce), said that they capital of Russia is not the gloomy, grey city that is have invested about $200 million into various projects often depicted in the press. Today, Moscow is one in Russia and do not plan on stopping. Among other of the biggest modern megacities in the world, with things, they talked about a new project with the Mos- a population of 15 million people, a stable budget of cow government. 26 billion euros and an actively developing city in- frastructure. The minister pointed to major projects The conversation was about establishing a joint in- such as the unprecedented improvements to the road vestment fund, which representatives from Man- transport system, grandiose reconstruction of the ar- grove Capital Partners have already discussed with eas around the Moscow River and significant increase Moscow mayor Sergey Sobyanin and received his in the number of technoparks in the capital. approval and support. Unfortunately, the project is not moving along as quickly as they had hoped. A “There are enormous opportunities for foreign inves- major reason for this are the economic sanctions tors in Moscow,” Sergey Cheremin pointed out. It is imposed by the West. “However, even given this no surprise that the capital of Russia has significantly challenging situation, we are not sitting idly by,” improved many indicators in the “Doing Business” rat- Waroquier said, “As we have a lot of experience on ing, which illustrates that the Government of Moscow the Russian market, we are actively working with is serious about attracting foreign investment. different universities in Moscow, as well as tech- noparks and technopolises that are popping up in Ian Cresswell, deputy head of International Partner- the city almost every day. We have incredible, tal- ships at Luxinnovation, said that cooperation on inno- ented people and we are trying to teach them what vative projects with Moscow technoparks is a “win- to do, teach them how to sell themselves and their win situation.” products.”

Representatives of the Department of Science, Indus- “Today there are truly incredible opportunities for trial Policy and Entrepreneurship of the City of Mos- foreign investment in Moscow,” Sergey Cheremin cow gave a presentation on investment and innova- said during the meeting, “transport infrastructure in tive opportunities in Russia. the city is radically changing, modern roads are be- ing constructed, there convenient flyovers, pedestrian Anatoly Valetov, Deputy Head of the DVMS, was a areas and new metro lines, and huge new territories moderator for the round table. that became a part of Moscow three years ago are gradually being assimilated.” Russian Ambassador to the Grand Duchy of Luxem- bourg Viktor Sorokin participated in the conference. So far as sanctions are concerned, according to the minister, they are “a temporary phenomenon, and will During the visit to the Grand Duchy of Luxembourg, be lifted in the near future.” The head od the DVMS Sergey Cheremin met with the CEO of Luxembourg noted that his confidence is based on conversations for Finance Nicolas Mackel. The two sides discussed with Western politicians from various levels of gov- the implementation of the cooperation agreement ernment that he has met with in Moscow and various between the Government of Moscow and The Agency European capitals. for the Development of the Financial Centre Luxem- bourg for Finance, as well as potential for cooperation The position of the Government of Moscow is simple on promoting the Russian capital as an international and clear, Sergey Cheremin said toward the end of financial center. the hour-long meeting: “No matter what, it is point- less to wait for the sanctions to be lifted. When it The Moscow delegation also visited LuxFuture Lab, a happens, it will be more difficult for investors to en- unique school/laboratory that helps young entrepre- ter the Russian market.” ■

July-September 2016 CAPITAL IDEAS 23 OUR INTERVIEW

David Waroquier: Our network is becoming bigger everyday “To understand the country you need, as I say, to push the door”, said David Waroquier, one of the partners at Mangrove Capital Partners, in an exclusive interview in Luxembourg with the editor-in-chief of Capital Ideas.

24 CAPITAL IDEAS July-September 2016 Mr. Waroquier, a few years ago you decided to enter the later the situation will change for better. We’re still here and Russian market. Why did you make this decision? we’re still interested in startups in Russia. I can tell you also that today many Russian startups are eager to develop internation- Yes, it was ten years ago, to be exact.At that time we had plans ally. They’re showing a lot of ambition.It’s really nice and we can to develop our Internet business in foreign countries. While help them to go global.So it’s time we bring back these discus- many Venture Capital firms started looking at China, India, or sions with the Moscow City Government. Brazil… we decided to turn our sights to Russia. It was much closer to us,and similar to Europe in terms of culture. Andso we Do you believe that Western sanctions will be lifted soon? decided to move there and to have a look what Russian Inter- net market was like. I was the first to go to Moscow. I hope so. I believe that the sanctions can’t help anything and both partiesare losing. We should negotiate and figure out how This was your first time in Moscow? we can move forward. We don’t sit and wait. But I don’t know when the sanctions will be lifted. Nobody knows, of course. Yes, it was not only my first time in Moscow, but also the first time I got to interact with Russian people. I came to Moscow What do you consider your greatest achievement? without any understanding of the place and the market. KupiVip.ru is our flagship. It’s very profitable. They sell their You’re kidding! goods everywhere in Russia, as well as in Kazakhstan and Be- larus. They also have an office in Berlin where they buy goods No, I really knew nobody and I really knew nothing! But I had to from European brands.I’m happy that KupiVip.ru is an inspira- take the first steps as quickly as possible because we wanted to tion for many Russian young entrepreneurs. They say: “Look, do a first investment. that’s possible! Why not try to do something like that.” At Kupi- Vip.ru we’ve employed five thousand people and many of them Did you have any fears or doubts about your endeavor? have become entrepreneurs themselves. And that’s brilliant.

No, not at all. We quickly made our first investments together What about other companies? with a successful Russian business angel, ABRT. By the way,they are doing pretty well in St. Petersburg now. Soon, we came to the Homeme, an online furniture store for Russian market, is a very conclusion that our Russian colleagues have the same percep- successful business. Oktogo.ru, Russian’s premier hotel booking tions of the Internet market. The only difference between us was and travel website, is doing well also, though they suffer more that they knew their market better than we did. So we decided: from the difficult economic situation in Russia.The new com- “Let’s combine our efforts, let’s help each other.” That’s how we’ve pany Paymo, which is a mobile payment solution targeting the started a fruitful collaboration of many years. I would like to men- retail utility markets, is also doing well. tion that the Russian Internet market back then was in the initial stages of development, and this was great. Russian entrepreneurs How much money have you already invested in Russia? came up with a lot of very interesting ideas that we could bring to life together. Unfortunately, they were not good at marketing. We’ve deployed a total of $30 million in Russia and we’ve at- We’ve had to help them figure out how to sell themselves and tracted another $150 million. how to sell their products. This is a time when I decided to be more involved in giving lectures in different universities, at technoparks, And how many jobs have you created? at technopolicies and other places like that. Just at that time I got acquainted with the guys from Moscow City.In one word, that’s I would say that, over ten years,we created about6,000 jobs. how we’ve made a network of useful contacts in Moscow and in Russia. Since then, it has grown bigger and bigger everyday. Let me change the subject. I know that your wife is Rus- sian, she’s from Moscow. Maybe this question is senseless, Could you tell us about the fund you decided to establish but let me ask you: is the Russian soul really mysterious? with the Moscow City Government three years ago? No. But to understand that one needs, as I say, to push the door Three years ago, through our friends, we found out that the open. Most people don’t understand what Russia is. Ten years ago Moscow City Government wanted to launch a venture busi- I knew very little about it as well – just images ofthe Red Square ness.The issue was trying to figure out who would manage and stuff like that. But when you push the door open you see very the fund. So they came to us and asked for help. I said:“Yes, of welcoming people and a beautiful country. So you see a complete- course.”At that time, we were interested in creating something ly different world than what is usually depicted in the mass media. like that to further develop the Russian Internet business and If you visit Russia, your perception of it will change completely. Mangrove’s presence in Russia. We wanted to focus on Russian startups. And we began discussing the project. Unfortunately, That’s what happened with you? everything was put on hold two years ago due to the sanctions. But we never abandoned the idea. We’re sure that sooner or Yes, of course! (Smiles) ■

July-September 2016 CAPITAL IDEAS 25 FACE TO FACE Alexei Mayorov: The capital is becoming safer

Head of the Moscow Department Mr. Mayorov, safety is a multi-faceted issue. What are the responsibilities of the Depart- of Regional Security and Anti- ment of Regional Security and Anti-Corruption Corruption Activities Alexei Activities? MAYOROV answered our questions The Department of Regional Security and Anti-Cor- ruption Activities carries out a wide range of ana- in an exclusive interview. lytical, economic and coordination functions.

Among other things, we monitor and analyze the implementation of state policy in the sphere of se- curity and anti-corruption. It’s important to note that the Department also makes recommendations to amend regulations in this specific area.

The Department monitors security and the organi- zation of security in the city. We analyze the state of law and order and public safety in the capital, then use the results to develop and implement security recommendations for the city government, includ- ing during public, mass entertainment, athletic and promotional events.

The Department of Regional Security and Anti- Corruption Activities also coordinated a number of mayor councils and commissions of Moscow.

For example, it is in charge of the Moscow Mayor Anti-Corruption Council, the city Anti-Narcotics and Anti-Terrorism Commissions, the Interdepart- mental Commission of the Moscow Government

26 CAPITAL IDEAS July-September 2016

FACE TO FACE

on Gambling and Lotteries, the Moscow City head- The department works to ensure the operation of quarters of the Government of Moscow for the Co- the hybrid automated system “Safe City.” Within the ordination of Activities in the Field of Intellectual scope of this project, we initiate research and ana- Property, Control Over the Circulation of Audio & lyze how private security organizations that provide Video Products and Computer Information Carri- state-funded security services for the capital’s fa- ers, Combat the Sale of Counterfeit Products in the cilities function. Field of Advanced Technology, Prevent and Com- bat Unauthorized Trade, Illegal Turnover of Alcohol It seems that there is no place on the planet Products, the Commission to Counteract Illegal Cir- that’s safe anymore. But the Russian capital is culation of Industrial Products in the City of Mos- doing fine in this respect. Moscow is not a scary cow and others. place to be. How does the city manage to create such a safe environment? Moreover, the Department is responsible for coop- eration between executive authorities of the city Moscow is a challenging city in terms of infrastruc- of Moscow with military authorities in addressing ture. It’s important to understand that not all areas issues related to mandatory training of citizens for in Moscow are equally safe. military service. However, we can generally say that the capital is One of the most important functions of the depart- becoming safer overall, which is mostly due to in- ment is combating corruption. This is why the de- terdepartmental cooperation. partment carries out the monitoring and verifica- tion of information about income, expenses, assets As I said earlier, the department coordinates a lot of and property obligations of the city’s officials. commissions and councils that address issues that

28 CAPITAL IDEAS July-September 2016 are extremely important to the capital. Thus, en- suring safety is a detailed, large-scale program that takes into account the fact that the capital is al- ways growing. The implementation of all measures allows us to ensure a safe environment.

A lot of immigrants from neighboring countries work in Moscow. Many people think that these workers present a threat to the city’s security. Do you agree with this?

Migrants are a threat to the city’s security only when they do not comply with Russian legislation. First and foremost, this means acquiring work per- mits.

The city does not issue work permits for migrants who have broken the law and persons who pose epidemiological risks (since a medical examination required to obtain a work permit). There is also mandatory Russian language tests, which relieves social tension and enables migrant workers to inte- grate into Russian society more quickly.

The Moscow government has ties with almost every capital in the world. Does the Depart- ment of Regional Security and Anti-Corruption Activities keep in touch and share experience with their foreign colleagues?

Of course. We take part in international events (roundtables, forums) several times a year. Lately, our foreign colleagues have become more inter- ested in our interactive products, which leads us to conclude that Moscow is highly competitive in the field of security.

Two years ago, the Mayor made the decision to change the name if the Department of Regional Security and Anti-Corruption Activities. At that point, the department started to address issues of corruption as well. Why?

Yes, in 2016 the department was renamed from the Department of Regional Security to the Depart- ment of Regional Security and Anti-Corruption Ac- tivities of the City of Moscow.

The name change has to do with the extension of the department’s powers in the field of anti-corruption. This includes checking the validity and completeness of the information provided by persons holding pub- lic office in the city, information about their income, property belonging to them by right of ownership and their property obligations. We also check com- pliance with restrictions and prohibitions, require- ments on the prevention and settlement of conflicts of interest, and the execution of their duties estab- lished by the legislation on civil service.

July-September 2016 CAPITAL IDEAS 29 FACE TO FACE

How much does corruption threaten Moscow’s Even in a city like Moscow, where the economy is development? Is there a concrete plan for fairly stable, corruption is a strong recessive factor. combatting corruption? If so, could you tell us It’s important to point out that one of the funda- about it? mental factors is the level of personal responsibility of citizens.

This is why investigating of citizen appeals on cor- ruption-related offenses by civil servants is the sec- ond point on Moscow’s anti-corruption plan.

The first is the analysis and revision of regulatory acts of the Department that are aimed at combat- ting corruption.

The anti-corruption plan entails both working with government officials (checking income statements, developing regulations and guidelines) and moni- toring compliance with legislation in the field of procurement and the implementation of anti-cor- ruption regulations.

As the Head of the Department, do you have a dream? How would you like to see Moscow in 5-10 years?

Safe, with a stable economy and a developed in- frastructure, including transport infrastructure. In short, a comfortable place for people of different cultures and faiths to live in. ■

30 CAPITAL IDEAS July-September 2016 “Safe City” Program CITY’S GRAPH The program is aimed at ensuring public safety and law and order by quickly transmitting relevant information to all forces and services responsible for public safety

Structure of the “Safe City” regional segment

Highway Monitoring Monitoring Monitoring of Public of Residential Spaces Buildings

Video, traffic flow parameters, Video Video, alarm, building parameters parking violations

Emergency Video monitoring and “citizen-police” information processing center contact points

■ The images from the regional sector cameras are transmitted to a single city center, where the information is stored and archived ■ The images transmitted from cameras are stored for no longer than 6 months ■ Only law enforcement officials can request to view the transmitted images

Voice connection

Forces and Services

Ambulance Police Emergencies and Disaster Response

July-September 2016 CAPITAL IDEAS 31 Museum town at Volokhonka

n a few years, the area from Borovitskaya Square to Os- tozhenka will be transformed. Volokhonka will be turned into a four-lane boulevard with a green zone and a park will open next to the Vyazemskiy-Dolgorukiy estate. A new Imuseum complex will be erected behind the private collections building and some exhibits from the Pushkin Museum will be on display at the open spaces.

The new cultural cluster project in the center of the city is titled “Rhizosphere: a new foundation.” When people enter the area, they are immediately in a museum where everything adheres to a single style: paved paths (granite with iron and bronze details), benches for art fans, monuments, information centers and shops.

One of the key architectural tasks was the preservation of Volokhonka buildings, including both historical buildings and the fairly new Soviet-style gas station. A glass paviliob that mimics the style of Boyar Yushkov’s estate that stood in its museums operating on the territory of the museum town, in- place in the 18th century will be built around the gas station. cluding in the new exhibition complex. Older buildings will also Not a single building in the area will be torn down. Even the be adapted to serve as architectural monuments and each mu- trees will be integrated into the design. Each tree will receive a seum’s exhibition will have a more narrow focus. name and a protection number. The main building of the Pushkin Museum will continue to be Volokhonka will be the heart of the museum town, housing a the dominant feature of the museum town. After the upgrade, new boulevard from Kropotkinskaya to Borovitskaya. The bou- the permanent exhibition of the main building will be dedicated levard will be part of the pedestrian route that starts at the to monuments of antiquity. Visitors will be able to see monu- Pushkin Museum and runs past the Church of Christ the Savior ments from Ancient Greece and Rome, Byzantium and Me- and Red October. Walks from the Pushkin Museum to Alexan- dieval Europe. The exposition will include numismatic monu- der Gardens or the Boulevard Ring will become more pleasant. ments. Additionally, there will be sections dedicated to the Far East, Latin America and Asia. After the project is implemented, the total area of the Pushkin Museum will more than double. There will be a total of nine Reconstruction here will take place in 2019-2022. ■

32 CAPITAL IDEAS July-September 2016 Construction of another terminal at Sheremetyevo

he construction of a new terminal and a third runway at Sheremetyevo airport will be completed in 2018. The deadline was announced by SIA’s General Director Mikhail Vasilenko. He also noted that passenger traffic at Sherem- Tetyevo will amount to about 31.6 million people per year. Airport revenue will increase by about 12 percent and will amount to $156 million without interest and taxes. “For us, it is important that that we have an investment project that is working and will con- tinue to work. We have already attracted over $700 million for the development of the airport. This is the most important result for this year and the year before,” Mr. Vasilenko said.

The capacity of the new building, which will be erected in place of the former Terminal B, will amount to 15 million pas- sengers per year. The area will amount to 100,000 square meters. The new terminal will have a large terminal finger and 19 boarding bridges. A new cargo terminal and parking lot will be built next to the third runway. North and south terminals of the airport will be connected by an underground system for passengers and baggage. Two tunnels will be constructed for this purpose.

It will take no longer than 50 minutes to transport passen- gers between terminals. Baggage will be transported in un- der 30 minutes. The construction budget amounts to about $330 million. After reconstruction is complete, Sheremetye- vo’s capacity will increase to 48.5 million passengers per year.

The legendary and bizarre round-shaped building will no lon- ger exist. ■

Hotel Belgrade to be reconstructed

otel Belgrade will become a modern hotel that meets the requirements of international chains. A permit for the reconstruction of the building has already been obtained. After the project is complete, the total area ofH the hotel will increase by 3,000 square meters.

The hotel on Smolenskaya will have 439 rooms of different categories, conference halls with areas for coffee breaks, a restaurant, a fitness center with a pool and an administrative section. A two-story restaurant will be placed on the roof of the building, while the basement will house a parking lot for 25 cars.

The 21-story hotel was erected in 1975. Zolotoy Kolos Hotel is located across the street. These two buildings are located on opposite sides of the Ministry of Foreign Affairs. In 2003, two stories were added to Zolotoy Kolos. Hotel Belgrade is next in line for an upgrade. ■

July-September 2016 CAPITAL IDEAS 33 New Moscow Art Theatre building by Kolomenskaya metro

As the chief architect of the project Svyatoslav Hegai pointed out, the design was discussed with the head of the Moscow Art Theatre Oleg Tabakov. “At the insistence of Oleg Tabakov, the new building is based on the design of the MAT’s current building at Kamergersky Pereulok,” Hegai said.

A highlight of the project is the ultra-modern auditorium with 647 seats and VIP lodges. Depending on what the di- rector wants, the seats can be positioned at the same level as the stage, or the auditorium can be arranged into an am- phitheater. The size of the stage itself will also be adapted to the needs of specific performances. As the artistic direc- tor of MAT Oleg Tabakov pointed out, the stage will allow the director to “convey an artistic idea to the fullest extent.” Another important feature of the theatre is how quickly the decorations can be changed. Special platforms will make it possible to change the decorations in just a few minutes. n a few years, Kolomenskoye will start to attract theatre fans. The intersection of Nagatinskaya Street and Prospekt Androp- Another important part of the project is the pedestrian area ova will house a new Moscow Art Theatre building. The mod- at the entrance to the building. This is another recreational ern building and pedestrian square will be erected in place of a area that can be adapted to serve as an additional stage. Ter- Iformer parking lot. The building will have nine floors, including two races of different heights with lawns and flower beds will be underground floors. The above-ground part will be split in two. placed in front of the theatre. Four bottom floors will have a brick finish, and the top three will be decorated with aluminum panels and stained glass. The construction of the new MAT building started in the Spring of last year. It will be completed in 2018. In addition to the auditorium, the building will have two re- hearsal halls, dressing rooms, cabins, a restaurant and a snack Before the start of construction works, a capsule with a mes- bar for the audience. Decorations will be stored underground. sage to future generations was buried at the intersection of The underground section will also hold a trap room, person- Nagatinskaya Street and Prospect Andropova. The theatre’s nel facilities and a parking lot. Entrance to the theatre will be artistic director Oleg Tabakov noted that the idea to erect a located at Prospekt Andropova, near the metro exit. new MAT building has been brewing for a long time. ■ Moskvoretskaya embankment reconstruction

onstruction work on Moskvoretskaya Embankment, The land plot that totals over 2 hectares in area will house a which will house Zaryadye Park, will be completed by functional zone with a cafe and pier. The embankment will September 30, 2017. be landscaped, the pavement repaired and a bicycle path will be paved. An underground passage will be built under the C roadway and there will be a staircase and elevator for people with disabilities from the museum in the Kitai-Gorod wall to Zaryadye Park.

Zaryadye Park is also scheduled to open before the end of 2017. The park will have a concert hall, an “Ice Cave” center, a park complex featuring different types of Russian landscapes (tundra, steppe, forest and meadows) and an educational center.

Moreover, there will be an ethnographic museum at Zaryadye. It will be located inside the Kitai-Gorod wall, a part of which is located inside the future recreational area. The exhibition will be dedicated to the everyday lives of different peoples. ■

34 CAPITAL IDEAS July-September 2016 New Restaurants in Moscow

he new restaurant Ottepel in the restored silk industry pavilion next to the Green Theatre at VDNKh is dedicated to parents and memories from their teens and twenties. The interior of the restaurant with exposed brick and Telements of Soviet decor brings visitors back to an era full of optimism and hope. The rise of the cinema, fashionable cock- tails, the first western breakthroughs in music, jazz and mods. The restaurant has two pavilion-type halls (that seat 45 and 39 people) with panoramic windows and 6-meter-high ceilings.

A second Voronezh Cafe has opened its doors on Bolshaya Dmitrovka. Now, you can get delicious steaks and pastrami sandwiches at another place in Moscow. There are two halls and a separate private room, and the cafe can accommodate a total of 130 people. There is a chamber for aging meat and the menu selection has doubled. ket BBQ’s open kitchen, which means visitors can watch how the meat is cooked. The smokehouse works around the clock.

A restaurant called Meatless, the central piece of which is a giant super-grill, has opened on Pyatnitskaya Street. The grill is used to cook marinated pork ribs and khachapuri, rack of lamb and octopus with ginger sauce, flounder and chicken Tabaka. Even cheesecakes, salads and tortilla for chili con carne are sent to the grill. Meatless has everything: a specially designed cast iron maker grill is divided into three zones - a grill, chargrill and barbecue. The grill is in the middle of the restaurant so guests can watch the chef cook. The restaurant is located on the first floor of an 18th-century mansion. There are two halls. One houses the grill and a few tables, with one of the walls com- pletely lined with old meat grinders. The other is a small, cozy room with vaulted ceilings and old brick walls. www.posta-magazine.ru

Groot is a project that has opened in the courtyard of Zvenig- orodskaya Street 12, where the restaurant Argo has been locat- ed since 2015. The new establishment is a cafe-lab, which means that there is a conscious approach to nutrition and a functional kitchen. Basically, this means that there is plenty of food for vegans, vegetarians and raw foodists, along with products like organic cocoa, and cashew cheese. The menu gives a thorough description and a complete list of ingredients for each item, along with benefits - ex- tra muscle, clear lungs or a sharp mind. Breakfast is served all day.

A joint project by Arkadiy Novikov and Moscow street food pioneers Fyodor Tardatyan and Maksim Livsi, Brisket BBQ, has opened on Smolensky Bou- There is a new restaurant called Moskovskaya Kukhmister- levard. A smokehouse for cooking brisket, ribs and skaya has opened at Bolshaya Nikitskaya. The concept of the sausage was created and tested in Moscow. The restaurant is dishes preferred by middle class Russians in the smokehouse operates at low temperatures, with middle of the 19th century. The main goal of the project is to no preservatives or marinades. It operates like a allow guests to explore Russian cuisine from that time period. slowcooker (up to 18 hours). The end result tastes Original cookbooks, essays and notes from archives were used just like Texas BBQ. The smoker is located in Bris- in order to resurrect 19th century recipes. ■

July-September 2016 CAPITAL IDEAS 35 MOSCOW IN WORDS

“Memories are the height of poetry only when they are memories of happiness. When they graze wounds over which scars have formed they become an aching pain.” Ivan Goncharov, Russian novelist

“However much you knock at nature's door, she will never answer you in comprehensible words.” Ivan Turgenev, Russian novelist, short story writer, and playwright

“How many things in the world deserve our loyalty? Very few indeed. I think one should be loyal to immortality, which is another word for life, a stronger word for it.” Boris Pasternak, Russian poet, novelist, and literary translator

36 CAPITAL IDEAS July-September 2016 “Money lost-nothing lost, Health lost-little lost, Spirit lost-everything lost.” Igor Sikorsky, Russian American aviation pioneer in both helicopters and fixed-wing aircraft

“I don't have a past. I have a continuous present. The past is part of the present, just as the future is. We exist in time.” George Balanchine, Russian American dancer, choreographer, actor, director

“A man should know about himself two or three things: whether he is a coward; whether he is an honest man or given to lies; whether he is an ambitious man. One should define oneself first of all in those terms, and only then in terms of culture, race, creed.” Joseph Brodsky, Russian American poet and essayist

July-September 2016 CAPITAL IDEAS 37 MOSCOW GLOBAL Janos Balla: Moscow has become younger and more welcoming

In spite of the challenging situation in Europe In light of the sanctions against Russia, is there a and the sanctions, cooperation between Russia lot of potential in terms of developing trade and economic cooperation between Budapest and and Hungary continues to develop across a Moscow? variety of different areas. At least this is what a There is always potential, but, unfortunately, the lot of optimistic media outlets in Moscow and downturn right now is quite steep. The trade turnover Budapest claim. But how are things coming between Russia and Hungary over the past two years fell by almost 50% (to $4.7 billion). In the first quarter along in reality? Ambassador Extraordinary and of 2016, it shrunk by another 30% compared to the Plenipotentiary of Hungary to Russia Janos same time period last year.

Balla answered this and other questions in an Right now, as your country’s economy is going exclusive interview with Capital Ideas. through challenging times, we understand that we can develop cooperation with our Russian partners through the regions. We have signed an agreement on regional cooperation with Russia and now various territorial entities of our two countries can collabo- rate, find new partners and new markets or fields for the implementation of joint projects.

We have to continue looking for common ground or new points of contact. The most important thing, as I always say, is that Europe’s continues to develop trust in Russia because this will help to bring back the business circles that decided to leave the Rus- sian market.

During a meeting with Western entrepreneurs, Mayor of Moscow Sergey Sobyanin said that not a single big European or American company has

38 CAPITAL IDEAS July-September 2016

MOSCOW GLOBAL

left Moscow. Has Hungarian business left our discussed. Today, cooperation is developing across country? fields like pharmaceuticals, the banking sector and, of course, the Russian construction market, which Hungarian entrepreneurs have always had a strong has become more competitive. We are working out presence in Moscow. Although they can’t be com- the possibilities to include Hungarian comments in pared to General Motors or BP in terms of scale. the construction of facilities of the FIFA World Cup But they didn’t go anywhere. Take, for example, in 2018. Gedeon Richter, which is a company with over a century of experience on the pharmaceutical mar- The Hungarian automotive industry is offering new ket that has acquired a good reputation in Russia buses to Moscow. These are not the famous Ica- and four other countries. It didn’t go anywhere. It rus buses, but new Evopro vehicles. The new buses is successfully operating in Moscow and other re- can run on diesel, gas and electric traction. gions of the country. Moreover, Gedeon Richter is currently expanding its presence on the Russian Evopro Modulo has proposed to cooperate with Rus- market. sian business. A joint company, which has already re- leased 50 experimental buses, has been established. Hungarian business has always been present in Moscow in the form of small and medium-size The Hungarian bus has already won a prize at the companies. Today, our companies continue to op- international contest Innovation Awards in the “City erate on the Russian market, working just as dili- Transport” nomination category, during the inter- gently as before in spite of the sanctions and the national exhibition JEC World 2016 in France. Soon, economic crisis. You can still find our products on the bus will set off on a journey across Russia with the shelves at the store. a presentation. If Russian business sees potential in the project, there will once again be transportation We have to admit that the sanctions have dealt manufactured in Hungary. a serious blow to the Hungarian agriculture sec- tor, which has always been focused on the Russian Earlier, the Kremlin announced that, in spite of the market. This is why, during talks between Russian sanctions, the RF will be able to cooperate with President Vladimir Putin and Prime Minister Vik- Hungary in the agricultural sector. Has the issue tor Orbán, joint projects in the area of food and of easing the food embargo been brought up over agriculture that would be located in Russia were the last few months?

40 CAPITAL IDEAS July-September 2016 www.rusnano.com

We are not asking for any favors or benefits from No, I just supported others people’s initiative. In the Moscow that are not available to other European Soviet era, there was a square named after Moscow countries. Under the conditions of sanctions and the in the center of Budapest. About five years ago, based embargo, we are looking for new opportunities for co- on a decision made during a regional meeting, it was operation, offering the Russian side our know-how in, renamed. Recently, it was decided that something on for example, the food industry. We already have inter- the map must be named after the City of Moscow. I esting plans in this sector. We have already managed think this is the right thing to do. to establish a major canned food factory in Dagestan. Hungary has made similar proposals to other regions After graduating from MGIMO, you rarely came to in Russia, including to Moscow. Moscow. Then, in 2014, you were appointed to head up the diplomatic mission in Russia. How did you We have very advanced technology for domestic ani- like Moscow after being away for a long time? mal breeding. I think that the Russian side continues to not only implement these projects, but is consid- Moscow looks younger. There are a lot of new, wide ering new techniques for attracting foreign investors. avenues, tall buildings, construction projects every- I would like to point out that the transfer of grain where. At the same time, a lot of old mansions and breeding technologies to Russia is very important estates have been preserved. Of course, there were for the food industry. This is an important part of our always architectural monuments in the city. But I business ties. don’t remember them being so well-kept during the Soviet era. In terms of traditional areas of cooperation such as pharmaceuticals, Hungarian business is ready to not I have worked in many countries and have seen doz- only sell drugs, but also to set up manufacturing here ens of megacities. I can say for a fact that Moscow in Russia. This is a very important point, since the fo- is a very clean city. There are a lot of squares and cus on import substitution affects the pharmaceutical parks where you can take a break from the hustle industry as well. Hungarian manufacturing is ready to and bustle of city life, take a walk, play sports. There contribute to this. are bike lanes everywhere, plenty of playgrounds, amusement rides and cafes. But the most impor- Is it true that the initiative to name one of the tant change that struck me is that Muscovites have streets in Budapest after Moscow belongs to you become a lot friendlier toward each other and for- personally? eigners.

July-September 2016 CAPITAL IDEAS 41 MOSCOW GLOBAL

Listening to you, one would think Moscow is the increase the number of exchange students to 200 best city in the world…. from each side.

Well, there are problems, like traffic jams. The prob- Why aren’t there more Hungarian tourists in lem here, like anywhere else in the world, has to do Russia? with how traffic flows are organized. But I hear that the Government of Moscow is actively working on In Hungary, there are a lot of people who are inter- this issue. ested in historical monuments in Moscow and St. Pe- tersburg, who want to take the Trans-Siberian Rail- In Budapest (like in London), the authorities are con- way or visit Lake Baikal. But there were never a lot of sidering implementing fees for entry into the city cen- Hungarian tourists here. I do know that a lot of our ter. Moscow is probably also considering this and is businessmen, athletes and artists come to Russia. Of researching similar initiatives abroad. But maybe it course, it is important to inform Hungarians about makes more sense to try to get people to use public cultural events in Moscow - plays, ballets, concerts transportation. We are actively developing the metro. and exhibitions. There need to be more trams and trolley buses on the streets. Personally, I think the residents of our cities At the same time, we see that Hungarians haven’t should start using bicycles. forgotten about Russia. They are ready to return. The fact that charter flights between Lake Balaton and Do you have any favorite places in the Russian two Russian capitals will be open this season serves capital? as testament to this fact.

My wife and I really like the Novodevichy Convent and I think that Russians like Hungary for excellent service the park with the lake located nearby. It’s especially quality, hospitality and a developed tourist industry. beautiful there in the fall. Every time I go there, it feels The same is true for Italy and Spain, but our country like I am getting in touch with Russian history. I feel is different because we have a lot of good spas and like I’m back in the 14th or 16th century. I try to get out warm mineral water sources. In Russia, there are cold to that part of the city often. But, unfortunately, my winters, short springs and long falls. In Hungary, these work schedule is extremely busy. warm resorts operate year-round, and Russians are happy to travel there. When I have some free time, we go to the city center. There, we walk through Bolshaya Bronnaya, around Do you think that cultural ties between Moscow the Patriarch’s Ponds and Tverskoy Boulevard. I used and Hungary have also weakened over the past few to visit Sviatoslav Richter’s memorial apartment, years? which sometimes hosts phenomenal piano evenings. I’ve also visited the Evil Apartment, which is a mu- Our cultural ties are successfully developing. Recently, seum dedicated to Mikhail Bulgakov on Sadovaya. we hosted Hungarian Culture Days, which entailed 15 Those who like the novel The Master and Margarita major events. will love it. Pushkin Museum visitors in Moscow had the oppor- Do Hungarians still enjoy reading Russian classics? tunity to see the Around Munkacsi exhibition, which featured one of the most popular artists of the For today’s younger generation, the Internet has re- 19th century, the Hungarian photographer Martin placed books. Nonetheless, interest in Russian lit- Munkácsi. erature and Russian language is always growing. At major Hungarian universities, Russian language and The Gallery of Classic Photography hosted an exhibi- literature departments are more popular than, say, tion of works by Imre Kinsi. Visitors got to see the last Chinese departments. A lot of Hungarian students photos taken by the photographer who died in a Nazi would like to be able to read Tolstoy in the original concentration camp. The main subject of Kinsi’s work language. is Budapest in the 1930s.

In Russia, aside from Moscow, Hungarian is taught at During the Hungarian film festival CIFRA 2 in Mos- universities in St. Petersburg, Khanty-Mansiysk, Yosh- cow, we showed several popular films, including kar-Ola, Saransk, Izhevsk, Syktyvkar, Petrozavodsk, Swing by Csaba Fazekas, Demimonde by Attila Szász, and Yekaterinburg. Weekend by Áron Mátyássy and more. The selection demonstrated not only the abundance of Hungarian Bilateral student exchange programs are expanding. cinema, but also the ability to understand the past The leaders of the two countries have set a task - to and adapt to the present. ■

42 CAPITAL IDEAS July-September 2016 July-September 2016 CAPITAL IDEAS 43 NOTHING VENTURED Belgian Sweets from Dubna Chocolate, candy, sweets - adults love these treats just as much as children. For us, these treats are a reminder of our childhood, when we thought there was nothing more delicious in the world than sweets and chocolate! What is the secret behind our love for sweet things? Belgian chocolatier Thierry Pete, who opened an ALEXANDRA Le Chocolat chocolate plant in Dubna, certainly knows the answer to this question.

ack as 2009, Thierry decided to open his own Of course the Russian capital is a city of great oppor- chocolate plant in Russia. “I visited Mos- tunity for different types of business people and en- cow and Dubna in September of that year. I trepreneurs. However, these huge opportunities often looked around the local shops and assessed require a big investment, as opening your own busi- business development opportunities and, of ness in Moscow is an expensive endeavour. Thierry Bcourse, tried to do research on trends and consumer decided to open the plant in Dubna, outside of Mos- behavior in the capital,” he says. cow, in order to save money.

Not long before this, Thierry opened his own busi- “In 2010, I opened a small company here called AL- ness in Prague, but, due to low demand, was not able EXANDRA Le Chocolat,” he says, “At first I imported to make the business profitable. The chocolate that small chocolates with our logo here from Belgium and Thierry offered across several stores in Prague never sold it to hotels. Some time later, I started to make found its customer niche. “Back then, I realized that chocolate here. I made Orangettes and Mendiantes.” the Moscow market would give my business way more opportunities for growth and development,” To paraphrase great minds: it is important to set am- he continues, “Moscow is a huge city with tremen- bitious goals for yourself. When opening his business dous potential in terms of demand, which allowed me in Russia, Thierry initially targeted the premium seg- to successfully start my business here and continue ment. This decision was motivated by his desire to growing even during the crisis.” make the highest quality chocolate. It’s almost impos-

July-September 2016 CAPITAL IDEAS 45 NOTHING VENTURED

sible to meet these parameters when you produce big standing of technology, a lot of practical skills, as well volumes. This is why Thierry’s chocolate plant, along as strict quality control. Putting together the recipe with his other projects, produces small volumes while also requires a lot of skill. Thierry points out that the stressing high quality. The secret to good quality lies, recipes were created in Russia and take into account among other things, in the quality of the raw materi- the preferences of local consumers. “Starting a choc- als, as well as in the professionalism of the plant’s em- olate plant in Russia was not an easy task,” Thierry ployees. Thierry purchases the majority of ingredients points out, “It has always been difficult to find good from local producers, both Russian and Belgian. He is employees who are not only experiences chocolatiers very picky about partners. Some of the ingredients are but also pour their hearts and souls into their work. shipped from Belgium. Aside from this, some of the Another challenging point is cultural differences. In chocolate for the Russian ALEXANDRA Le Chocolat Belgium, for example, chocolate is practically a na- company is partially imported from Belgium, where it tional treasure. Making chocolate is Belgium’s tradi- is made in accordance with recipes that take into ac- tional occupation. There is no such tradition in Russia, count the specifics of the Russian market. By the way, which is why we have to cultivate a culture of choco- the head of production at ALEXANDRA Le Chocolat, late consumption in our clients and customers.” along with all employees that take part in the choco- late production process, went through a training pro- ALEXANDRA Le Chocolat produces a wide range gram in Belgium. of sweets with different kinds of fillings, along with chocolate figurines and its own trademark choco- Here, the process of making chocolate is almost en- late. One of the product’s unique features is beautiful tirely manual labor that requires a thorough under- packaging, which has a unique design.

Thierry is a foreigner who sees Russians as a people with a unique personality. Over the years, Thierry has made friends in Moscow and Dubna. He is impressed by the Russian knack for big, grandiose celebrations and the ability to form friendships, along with the val- ues behind the idea of friendship. “You have the abil- ity to find joy in the smallest things and events. This capability for wonder is worth a great deal,” he says.

In spite of the challenging business conditions in Rus- sia, ALEXANDRA Le Chocolat has not altered its goals. “Like before, we seek to make premium class choco- late that is unforgettable after just one bite,” Thierry says, “We are distributing our chocolates in luxury and premium shops and we are planning to open shops in future. In general, my goal is to make the name ALEX- ANDRA Le Chocolat widely known in Russia, develop my business and expand my network of shops.” ■

46 CAPITAL IDEAS July-September 2016 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] http://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] http://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 E-mail: [email protected] http://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] http://www.updk.ru

July-September 2016 CAPITAL IDEAS 47 NOTHING VENTURED Hiroshi Furuta: Deeper into Russian market with high tech

“A crisis is a temporary phenomenon: as A quick background search on Mitsubishi Electric reveals that your company was the first in the world to release the economy starts to recover, business the widescreen LED monitor for stadiums as well as the largest CRT television, developed the first spiral escalator will adapt to new market conditions, in the world along with the world’s fastest elevator...can launch new mechanisms for growth we find any of Mitsubishi Electric’s big accomplishments in Moscow? and will continue to develop,” said the It’s true that Mitsubishi Electric owns a number of unique General Director of Mitsubishi Electric state-of-art technologies and some of them have already been (Russia) LLC in an interview with implemented in Russia. To go with something you’ve already mentioned, a good example is screens for stadiums. In Moscow, Capital Ideas. there are two 17.92m X 9.6m Mitsubishi Diamond Vision screens at Otkrytiye Arena (Spartak stadium). Fans have already had a chance to appreciate the image quality.

It’s also worth pointing out that our equipment is widely and successfully used by the Government of Moscow. For example, the conference hall has a video wall that is made up of Mitsubishi Electric projection cubes. Moreover, Moi Dokumenti multi-pur- pose service centers are also equipped with our displays.

We are proud of projects that have made the lives of the capi- tal’s guests and residents more comfortable. One such project is the installation of new air conditioning systems at residential and leased buildings of the Skolkovo Park RC. The solutions we used for this project are extremely reliable and easy to install.

I’ll also point to the modern management systems in the halls of the Gerasimov Institute of Cinematography. Mitsubishi Electric frequency inverters were installed in multi-purpose, rehearsal

48 CAPITAL IDEAS July-September 2016

NOTHING VENTURED

and cinema halls as part of the comprehensive modernization ly focus on? Is there a particular focus when it comes to program. The inverters are practically noiseless, which is espe- the Moscow market? cially important for rehearsals and performances. When we registered as a legal entity in 2014, Mitsubishi Electric For a long time, your company’s office in Moscow was had already been operating in Russia for 17 years. In that time, managed by the European division with headquarters in we managed to successfully develop several areas of business London. Why wasn’t it managed directly? After all, Russia activity, from air conditioning systems and visual information is closer to Japan than to Europe. systems to factory automation and power semiconductors. The number of employees has also increased significantly. This deci- In 1997, when we had just entered the Russian market and sion was made by Mitsubishi Electric Corporation Board of Di- were completely new here, we made the decision that the rectors because our business in Russia has successfully grown corporation here would adhere to the European marketing and developed over the past 10 years. strategy. Of course, Russian business culture and environment were was drastically different from European, but in terms of Establishing an independent legal entity in Russia was an im- cultural nuances and communication, Europe was easier for portant step in the corporation history that we had been plan- our Russian clients and partners to understand. Mitsubishi ning for a long time, so we were confident about the success. Electric is a global company corporation. On the one hand, Even the onset of the crisis, which happened shortly after we we apply common philosophy and corporate culture across all registered the company, did not have an impact on our belief markets. But, on the other hand, we try to think locally and that there is a lot of long-term potential for Mitsubishi Electric take into account the specifics and risks associated with each here. The Russian market is one of the most promising markets region we operate in. The fact that we opened a representa- in the world and we want to develop here. tive office of the European company allowed the corporation to successfully enter the Russian market, investigate it and of- The main objective of establishing Mitsubishi Electric (Russia) fer the necessary products and technologies. LLC is to give the corporation direct access to Russian and CIS markets and give Mitsubishi Electric the opportunity to realize So then you decided to expand your presence in Russia its potential. and opened Mitsubishi Electric (Russia) LLC, but soon the Russian economy fell on hard times. Does company Currently, our main areas of activity are heating, air condi- management think the decision may have been a mis- tioning and ventilation systems, as well as factory automa- take? What areas does your company in Russia present- tion equipment. We also have high expectations for the in-

50 CAPITAL IDEAS July-September 2016 frastructure market, including equipment and technologies for the power industry, public transportation, public utilities and so on.

The jump in exchange rates for foreign currencies, includ- ing the yen, dealt a blow to the competitiveness of many imported goods. There are also import substitution pro- grams...how do you plan on holding on to, and even ex- panding, your market share?

Undoubtedly, the devaluation of the ruble had a negative im- pact on all spheres of business not only due to prices increase, but also because of decline in investment volumes, postponed project deadlines and so on. In spite of this, however, our com- pany continues to bet on high quality and products reliability, as well as unique technologies. A crisis is a temporary phenom- enon: as the economy starts to recover, business will adapt to new market conditions, launch new mechanisms for growth and will continue to develop. For now our objective is to not give up, to keep the market and analyze current opportunities to prepare for future growth.

The import substitution programs are opening up new oppor- tunities for us, in particular for factory automation business, since our equipment enables Russian industrial companies to operate efficiently. Moreover, current state policy may be a good incentive for joint projects between Mitsubishi Electric and local manufacturers in such areas as power and public trasportation.

Speaking of import substitution, I remember the Italian ambassador’s reaction when he heard the words “Rus- sian parmesan”: he laughed and said that it’s better to buy your parmesan in Italy. Do you also think that it’s better to purchase equipment such as ventilation and air condi- tioning units directly from Japan, as opposed to localizing production? cow and Tokyo in order to give residents of the Russian capital the chance to become more familiar with Japa- Indeed, the question of localization of production to foreign nese art? manufacturers today is very acute. In this respect, Mitsubishi Electric highlights two main factors – preserving top prod- You’re absolutely right. I am very interested in Russian culture, uct quality and ensuring high level of demand. At present, particularly in the fine arts. The Pushkin Museum and Tretyakov there is not enough demand for Mitsubishi Electric prod- Gallery are some of my favorite places in Moscow. It is worth ucts in Russia and the CIS to establish local factories from noting that, the majority of Japanese people are big fans of Rus- greenfield, so we have no relevant plans. We stick to a dif- sian literature and ballet. I am happy to see that in Russia, in ferent market strategy, which is based on close cooperation turn, there is an increasing interest in the arts and culture of with local partners on development of their industrial and Japan. Undoubtedly, strengthening cultural ties is important for technical potential. There are many ways to cooperate with business, as it allows us to understand our partners mentality local business that currently make more sense for us than better. Mitsubishi Electric has defined support of cultural rela- localization. For example, the technology transfers, supply of tions as a priority area of corporate​​ social responsibility long components and OEM. We are confident that this approach time ago. We are cooperating with the State Museum of Ori- might be beneficial to both sides. ental Art since 2007 and regularly provide support to it. We also support various events connected to traditional and contempo- Mitsubishi Electric is a sponsor of the State Museum of rary Japanese culture in Moscow and other cities, including fes- Oriental Art in Moscow. You’re probably not indifferent tivals, exhibitions and concerts. We try to attract our employees to art yourself and could talk to us about your preferenc- and partners to these events so that they have an opportunity es in Russian art, music, theatre. But I wanted to ask you to immerse themselves in the world of Japanese culture and re- the following: could Japanese business representatives move understand the nature of Japanese people, and therefore help in the establishment of cultural ties between Mos- the foundations of our business culture better. ■

July-September 2016 CAPITAL IDEAS 51 NOTHING VENTURED Philippe Cohen: The market will start developing again soon

“In my opinion, the number of Mr. Cohen, who are your customers? Do you deal mostly with individuals, or do you have big com- companies that think Russia has panies among your clients as well?

become a dangerous place and it’s We operate across different segments. The major- best to leave the market is very small. ity of our products are sold to individuals. We use all channels to advertise our products to people, in- It is obvious that every market has its cluding the Internet. But we work with commercial enterprises as well. We primarily sell them High- ups and downs,” said Philippe Cohen, efficiency floor-standing boilers. This kind of equip- CEO of АristonThermoRus, in an ment is usually installed on the roof of a building because that takes up a lot less space and elimi- interview with Capital Ideas. nates the need to construct separate boiler rooms. This segment is very important for us, especially considering that it is rapidly developing in Russia.

When I talk about progress in these segments, I am talking about general trends, not 2015-2016 spe- cifically, which has been a difficult time for almost everybody on the Russian market. And the trend is that the market in Russia, although not mature, is growing and evolving. It is going through a chal- lenging time right now, but we think that the Rus- sian market has potential both in terms of working with individual clients and cooperating with com- mercial enterprises.

Why did Ariston decide to enter the Russian mar- ket? How did this idea come about?

Ariston came to Russia in the mid-1990s, specifically in 1995. This was a time when a lot of European com- panies were looking to enter the Russian market. We

52 CAPITAL IDEAS July-September 2016

NOTHING VENTURED

were no exception. We opened a representative office unemployment grew, companies withheld pay, in the RF and initially stuck to a very typical model: we store shelves were often empty, there was a se- looked at how existing distributors were operating rious jump in criminal activity in Russia…a brave when importing European products. It became obvi- decision. Were you afraid this would be a risky ous that the Russian market was of interest to us. We move? then decided to open an Ariston sales office in Rus- sia and enter the structures of our main distributors, As they say in Russia, those who don’t take risks which is what happened in 2002-2003. don’t get to drink champagne. The beginning of the 1990s was a truly challenging time, but by 1994- The next important step was opening our own Aris- 1995 things were better. Not everything was run- ton factory in 2005. The factory, which manufactured ning smoothly, but things were a lot more stable. electric water heaters, was located in Vsevolozhsk – This is why a lot of companies, including Ariston, one of the industrial centers of St. Petersburg region, established themselves here around this time pe- located 28 kilometers outside of St. Petersburg. By riod. There were challenges, but it’s worth noting that time, it was even more obvious that the Russian that almost all of the distributors we worked with market has a lot of potential and that geographical at the time turned out to be reliable and respon- proximity to the end user was important. sible partners. They researched the product that would be offered, how the market would react, and You entered the Russian market in the 1990s, ways to get the needed results. At first there were which was a wild time in Russia – the social sta- relatively small companies that operated as heat- tus of the country’s population changed radically, ing systems distributors, but, as they worked with

54 CAPITAL IDEAS July-September 2016 us, they started to grow and develop themselves. is an advanced enterprise that manufactures about It’s also important that the consumers themselves 600,000 round and flat electric water heaters every were able to develop an understanding of what an year. This is our advantage. Of course we are trying to Ariston water heater is and what its advantages localize our production more, to manufacture more in are. Everything was happening at the same time, so Russia. And this isn’t just because of the present focus that was an interesting period. on import substitution: it’s good for the company in any case. Times change and, unfortunately, not always for the best. A lot of foreign businessmen today talk This isn’t the case with gas boilers. They are manu- about new risks and are either exiting the mar- factured with the use of complex technology that ket or a temporarily holding off on projects. What requires a lot of investment. This is why we import about Ariston? the boilers. Ariston manufactures them outside of the RF. This won’t necessarily always be the case: we I’m not so sure that a lot of companies are doing this. are always looking into opportunities and options for In my opinion, the number of companies that think manufacturing equipment in Russia. Russia has become a dangerous place and it’s best to leave the market is not that huge. It is obvious Does your plant outside of St. Petersburg use that every market has its ups and downs. The climate parts made in Russia, or do you import parts from right now is truly challenging: there is a crisis and Italy? people have less money – this is an undeniable fact. But I wouldn’t say that doing and managing busi- We use both. There are some parts that we unfor- ness in Russia has become more risky. Ariston, for tunately cannot purchase or manufacture in Russia. example, continues to operate like we always have. We import the electronic boards, for example. We Our plant in St. Petersburg is doing great – it’s one need quality that would meet the requirements of the of the most successful enterprises in our group. In company and, of course, the consumer as well. short, we don’t have more problems today than we used to. Of course, we can’t completely discount the effects of the crisis. But we are convinced that the situation will straighten out in 2-3 years and that the Note from Capital Ideas: Russian market will start growing again. Our part- ners agree. There is a lot of potential here. The name “Ariston” comes from the Greek “Aristos,” which

What about the EU sanctions against Russia? means “the best” or “noble.” These words definitely describe What effects have they had on Ariston’s business the Italian company, which sells equipment in over 150 coun- in the RF? tries, including in Russia. Ariston is one of the global leaders

The equipment we manufacture is blatantly for in the manufacture of Water heaters and heating equipment, civilian use, so of course there is no direct effect from compact Electric water heaters for domestic use to gas from the sanctions. But, of course, there has been an indirect impact, as the financial sanctions have boilers and innovative soar heating systems. The company affected the economic sector, and the population’s has over 20 manufacturing centers in 12 countries (including paying capacity. I want to believe that things will Russia), which speaks to Ariston’s success. stabilize in the near future and that the sanctions will be lifted. Either way, Ariston will continue to operate under these new conditions as well. Our Aristide Merlone, the Italian who established a company equipment is in demand. Of course, one can delay for the manufacture of scales back in the 1930s, was the purchasing a water heater for a while, but not for- company’s founding father. The family business developed ever. Right now customers are opting for cheaper equipment, but they also pay close attention to the over time, and in the 1960s a company called Indesit, with price-quality ratio. We think that the equipment we the brand Ariston, was established to sell big home ap- offer is of very high quality. pliances. Later, the business was split up and a separate In the meantime, Russia has decided to focus on enterprise was established for the manufacture of heating import substitution. Is Ariston in any way con- equipment. About a year ago, Indesit was sold to US-based cerned about this development? Whirlpool. Ariston is now a brand that belongs to Ariston When it comes to water heaters, we already have our Thermo Group. own plant in Russia. The Ariston plant in Vsevolozhsk

July-September 2016 CAPITAL IDEAS 55 NOTHING VENTURED

There is no doubt that Ariston’s equipment meets top quality requirements, but all equipment eventually needs to be serviced or repaired. How is your company doing in this respect?

Selling goods is the first task, but it is no less impor- tant to make sure that the equipment works. This is why Ariston has over 400 service centers in Russia. They are based out of partner enterprises that we have signed contracts with and are active all over the country. They carry out service work when necessary. Thus, Ariston covers the entirety of Russia in terms of both sales and service. We also have a network of warehouses for space parts. Obviously, if a boiler malfunctions in the middle of winter, when it’s -30 degrees outside, the part has to be replaced imme- diately.

You have been in Moscow for 20 years and have a lot of experience. What do you think of how the capital is developing?

With incredible speed. If you compare it with what was happening in Moscow two decades ago, it is day and night. There are a lot of new buildings and more cars, which is good for drivers, but the traffic jams are sometimes incomprehensible. The good thing for our company is that the distribution of Ariston equipment is advancing rapidly. ■

56 CAPITAL IDEAS July-September 2016 useful info

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

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

Moscow Innovation Development Center Address: Voznesensky Per., 22, Moscow, 125009 Business Center Usadba, Ph: +7 (495) 225-92-52 http://inno.msk.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 99 95 E-mail: [email protected] http:// www.tender.mos.ru

July-September 2016 CAPITAL IDEAS 57 NOTHING VENTURED Zafer Ustuner: We have ambitious plans for the future

The Turkish company BEKO has been operating in Russia since the late 90s. Zafer Ustuner, the CEO of the Russian company, talked to Capital Ideas about how BEKO’s operations in Russia are currently going. We agreed ahead of time to not discuss the sensitive topic of the crisis in Russian-Turkish relations: business is not at fault here and business people can’t fix anything without help from politicians.

Lots of new brands have appeared on the MDA market in recent years. Well-known brands are ex- panding their business. How long has BEKO been around as a brand? How does it position itself on such a competitive market?

BEKO is a global brand operating in more than 100 countries, with top positions in Europe and growing in other continents. Naturally, BEKO is not new to the Russian market, having big volume and potential. Our company first appeared here in 1997. Since that time we managed to become one of the leaders on the MDA market and our brand awareness among consumers is at 85%. The consumers know our brand well and prefer purchasing BEKO products for their good quality and reliability.

Tell us a little about your factory.

We have 14 factories in 6 different countries, including China, Romania, Russia, South Africa, Thailand and Turkey. Our Russian factory has special significance for us as it is the first “green field” investment out of Turkey and our success here gave us courage to do it in some other countries as well. Our headquarters took the

58 CAPITAL IDEAS July-September 2016 July-September 2016 CAPITAL IDEAS 59 NOTHING VENTURED

strategic decision to invest in the factory construction more advanced production and new products. Our in Russia in 2005. The amount of investments was production volumes are also constantly growing. In over 100 mln. Euro. We have chosen an empty space 2007, the capacity of the factory’s production was in Kirzhach city of Vladimir region and started the 427,000 units ( WM - 283,000 units, Refr. - 144,000 construction. One year later, in October 2006, the units). But the results of 2015 showed practically BEKO LLC factory produced the first refrigerator and double figures and corresponded to more than washing machine. Our company’s investment group 750,000 units for both product categories. chose Vladimir for its good investment climate and support from the region’s administration. More importantly, we have invested in our people and developed many experts, engineers and business The factory’s total area amounts to 546,000 m2. Our managers. With our strong team, we are confident up to date equipment allows us to manufacture the that we will be able to overcome all challenges and full range of high quality appliances. All products go improve our position further despite current economic through computer quality control. BEKO factory is a conditions. We develop projects with engineering highly integrated production cycle plant that requires schools and universities as well as our business a strong labor force, but we are trying to develop a partners. All companies and people should focus on supplier network in our region as well. development and improving efficiency to overcome economic problems, especially right now. We manufacture 2 categories of products at the factory: washing machines and refrigerators. But it The increase in production quantities is not the only does not mean that the assortment of goods BEKO LLC point we pay attention to. Our marketing strategy offers is limited only to these two categories. Our offer focuses on developing products that best fit the consists of wide assortment of products: dish washers, expectations of the Russian market. Our engineers free standing ovens, dryers, built-in appliances and pay special attention to Russian nuances and we have climate goods. In one word, the consumers can have products for all tastes and consumer expectations. a wide range of products according to their wishes, expectations and requirements. Where can the consumer find BEKO branded prod- ucts? How is BEKO LLC doing these days, especially given the present economy? BEKO products can be found across all retail points in Russia: from the biggest to the smallest ones. We We have long-term potential in Russia. Over the do business with all national chains and important years, we invested continuously in our business for players that are well known. But at the same time we also work with all regional customers. In short, I can say that our policy is to penetrate all corners of Russia. Note from Capital Ideas: What about service strategy? How it is arranged? The Turkish company BEKO is a subsidiary of Arcelik A.S. Special attention of the company is paid to after sales that was founded in 1955 and headquartered in Istanbul. service support. The quality and customer satisfaction It is part of KocHolding and manufactures a wide range of start from product design and production quality. This is one of BEKO’s strongest points. But still, we have home appliances. It is on the list of well-known veterans of direct contracts with professional authorized service the Russian market. The appliances produced by BEKO, from centers around the country. The consumers just need call the BEKO Hot Line when needed and service is be refrigerators and stoves to washing machines and dishwashers arranged by BEKO specialists. first appeared on the Russian market in 1997. As the CEO of such a big company, what would you BEKO had a good start, and established a representative office like to say to the market? in Russia in 1999. Later, the company took another important We are confident in our team and company as well step: after securing second place on the list of the biggest as in Russia’s potential. It’s normal to face some manufacturers of home appliance in Europe, BEKO opened problems from time to time. It’s the natural way of development. But if you have a professional team and its own factory in Russia. The factory is located in Kirzhach, the confidence to come out on top, you will be able Vladimir Oblast, about 100km outside of Moscow. to overcome all challenges. We have ambitious plans for the future and I have no doubt that we will be successful. ■

60 CAPITAL IDEAS July-September 2016 around the world Since the beginning of 2013 Capital Ideas has been successfully presented at Destination Moscow roadshows held in London, Frankfurt, Tokyo, Boston, New York and many other cities around the world

Dear Ladies and Gentlemen! We hope that you like Capital Ideas. Please give us your feedback and send us your comments. This will all help to make Moscow a better place to work and live. Sergo Kukhianidze, Editor in Chief

Write to Sergo Kukhianidze at [email protected]

July-September 2016 CAPITAL IDEAS 61 NOTHING VENTURED Geutebrück’s watchful eye, in Russia

The equipment manufactured by Geutebrück, a German company with headquarters in Windhagen, can’t be purchased at shopping centers and isn’t advertised by the media. Nonetheless, Geutebrück products are in demand.

The family business, which was founded When did Geutebrück enter the Russian market in 1970 and now actively cooperates and what prompted the decision to do so? with Russia, develops and manufactures Before we get any further, it is important to point out different kinds of video surveillance systems that the business model GeutebrückGmbH, Wind- hagen, Germany uses is largely project-based. This that are used for monitoring all kinds of means that our product is the development and im- facilities, from parking lots to spaceports. plementation of turn-key video surveillance solutions that adhere to the requirements of the customer. We It’s interesting to note that, in spite of such implemented our first project like this in Russia back a broad range of clients, Geutebrück only in 1996. Our customer was quite happy with the re- sults and continues to work with us today. employs about 200 people all over the world. The company has clients and partners in over What kind of customer was this? 40 countries. Area Manager Lev Datsenko Unfortunately, due to the kind of sphere we work talked to Capital Ideas about the company’s in and the kinds of services we provide, we can’t go into detail or name our clients. After all, this is about operations in Russia. providing security - it’s a field where being too open

62 CAPITAL IDEAS July-September 2016 is not only discouraged, but is actually unacceptable. solutions, completely fell in line with the customer’s Moreover, we have certain obligations to our Russian requirements. Our products were in demand. After partners, and these partners include agencies with a this first experience of working with Russia, we es- lot of power and influence. tablished a good reputations and Russian partners started to place orders with us more frequently. How did Geutebrück enter the Russian market? What challenges did your company encounter Our experience is different from what most companies in Russia when you first started working here? entering the Russian market go through. Usually a lot of Or did everything go smoothly right off the bat? research and work is done beforehand, people look for partners...it was different for us, which is understand- When it comes to Russia, our big challenge has al- able when you consider the kind of work we do. We ways been finding partners who are qualified enough started working in Russia and opened a representative to carry out the design, installation and maintenance office here in the mid-1990s at the invitation of a Rus- of our systems. This is especially true because video sian security agency. The agency wanted us to develop surveillance systems are becoming increasingly more a surveillance system for a facility of federal importance. complex. Multimedia data transmission is also an area that is changing and improving. Aside from hav- It turned out that our products, which adheres to ing the skills necessary to properly install and set up top quality standards, along with our technological the cameras, partners must be able to set up complex

July-September 2016 CAPITAL IDEAS 63 NOTHING VENTURED

The list of famous clients that use Geutebrück equipment includes European Central Bank in Frankfurt am Main, the Louvre, the Federal Chancellery of Germany...could you name a few well-known places in Russia that use your systems and equipment?

Our equipment is in demand in the oil and gas indus- try in Russia. Specific names? Ok: Rosneft’s refinery and the Gazprom headquarters. We work with the Central Bank of Russia, along with a number indus- trial companies, including those with foreign partic- ipation. Our partners include Russian Railways and Rosatom State Nuclear Energy Corporation.

Geutebrück equipment works equally well at enter- prises of the giant agri-industrial holding Miratorg, which makes chilled and frozen semi-finished meat products and vegetable mixes, and at a Murmansk sea port on the Barents Sea. Of course, hotels are also on the list. Our company’s systems provide se- curity for Astoria and Belmond Grand Hotel Europe in St. Petersburg.

computer networks. Video recording and manage- A special point is providing service for cultural heritage ment systems, which are based on personal comput- facilities that require a specific level of protection. We ers, can be integrated with DSC, SCADA and CNC. This have a lot to offer when it comes to this sphere as well. requires knowledge of informatics, programming and Suffice it to say that in Russia we are successfully coop- circuitry, which enables the creation of integrated erating with the Kremlin, as well as the State Hermit- software and hardware modules, applications based on our SDK Software Development Kit including API client, etc.

Video surveillance systems have a truly limitless range of applications. Still, are there certain spheres where Geutebrück products are especially in demand?

Initially, video surveillance systems were used to monitor facilities of different kinds, from commercial general purpose facilities to top-security state agen- cies. The development of computer technology has made this range of applications truly limitless, like you said. There is a broader sphere of use for our products and video surveillance is becoming a more powerful tool used for visualization, documenting transporta- tion and logistics processes, as well as alarm systems.

The trend of using video surveillance systems to monitor performance is especially evident in com- mercial investment projects, as the managers and heads of companies need modern tools for moni- toring business processes. If the IPTV system has been properly integrated into the ERP, WMS or SCADA system, video surveillance turns into an ef- fective way to evaluate operational processes, con- trol quality, determine the causes of failures, and identify potential areas of optimization.

64 CAPITAL IDEAS July-September 2016 age in St. Petersburg. Geutebrück’s video surveillance systems are also installed at the Petrovsky Stopover Palace, which was constructed in the 18th Century, as well as the Mariinsky Theatre in St. Petersburg.

The 2018 FIFA World Cup is almost here. Is Geutebrück providing equipment for the stadiums in Russia?

Sports and providing security for competitions is a separate subject. At public events (football match- es, for example), it’s important to make sure that there is a peaceful atmosphere on the stadiums. Here, video surveillance systems that can help iden- tify and assess dangerous situations are absolutely necessary. It’s great that Geutebrück equipment is also in demand in this sphere.

We supplied equipment for dozens of Sochi facili- ties during the 2014 Winter Olympics, and did so successfully. Over 5,000 cameras were installed at the Black Sea resort, including at facilities like Sanki Sliding Center, Rosa Khutor Ski Center, Laura Biath- lon & Ski Complex and the Sochi-Adler highway. Your equipment is probably in high demand Of course, we’re also getting ready for 2018. Geute- now, since the threat of terrorism has grown in brück is taking part in preparing Russian stadiums scale. Have your products become more popular that will be hosting the championship. It’s too early in Russia? to disclose any details, so let’s wait for the event. I haven’t noticed a huge jump in demand for Geute- brück equipment, no. But consumers are becoming more demanding in terms of efficiency and reliabil- ity of this type of equipment, since people realize that this is very important for ensuring security in today’s world, which is marked by great risks, in- cluding the threat of terrorism.

Have the sanctions against Russia impacted your business at all?

Yes, we couldn’t avoid it. The main issue is that we have lost the advantages inherent to an atmosphere of political unity that is characteristic of neighborly states. The sanctions force us to thoroughly check the final purpose of our video surveillance systems. Moreover, we had to localize production for some of our projects in Russia.

Now that Russia is going through a crisis, do you still think that doing business here has a lot of potential?

Russia has always been and always will be a coun- try with enormous scientific and technological po- tential. In my opinion, the key to success is being ready to invest in localization in the RF and to in- volve Russian specialists in the development of new technology. ■

July-September 2016 CAPITAL IDEAS 65 OUR INTERVIEW City’s safety under control of video cameras

When it comes to safe urban environments, the first thing that comes to mind is safety on the roads. Traffic regulations are a fundamental component of road safety and everybody needs to follow them all of the time. The work that is aimed at creating a secure environment in Russian megacities is implemented at the national level.

verybody knows that there are fines and penalties for road traffic violations. Special photo and video systems that detect viola- tions have been in place and operating suc- cessfully for a long time, ensuring that viola- Etors cannot evade punishment. They work as a kind of tool to make drivers more law-abiding, since the positive effect of such systems, which first and fore- most entails a decrease in traffic violations, is now widely recognized.

According to the CTO of the Russian company Alexey Kadeishvili, the key components of road safety in city are the expansion of the road network along with construction of new roads that meet safety require- ments, the integrations of an ITS (Intelligent Transport System) that includes mechanisms that warn drivers about problems on the road (like accidents and traffic jams) and, of course, getting drivers to comply with traffic regulations via unavoidable penalties and fines for traffic violations.

“All of our products are in one way or another related to video processing and are from the beginning a part of the VOCORD Tahion global video surveillance pro- gram,” Alexey clarifies, “This platform allows the user to look at images from any camera plugged into the

66 CAPITAL IDEAS July-September 2016 The CTO of the Russian company Vocord Alexey Kadeishvili

July-September 2016 CAPITAL IDEAS 67 OUR INTERVIEW

system in real time, as well as use the cameras to re- in the city. It is worth noting that this system allows cord and conduct different types of video analysis.” users to track the location, trajectory and speed of vehicles on the road, along with the average speed The VOCORD Traffic is an ANPR (Automatic num- on specific road sections. ber plate recognition) traffic enforcement system, which was developed by VOCORD experts, has been Among the traffic violations that VOCORD Traffic is operating on roads in other Russian cities for sev- able to recognize and capture, the most “popular” vio- eral years. VOCORD Traffic recognizes license plate lations for Russian drivers include speeding, failure to numbers, takes photos and records videos of 15+ comply with traffic regulations at intersections and traffic violations and collects data about traffic flows railway crossings, driving in the opposite lane, changing lanes across a solid line, parking violations and more. Note from Capital Ideas: VOCORD company experts point out that places that VOCORD has been operating in the sphere of video surveil- use the VOCORD Traffic system, which include almost 30 regions in Russia, have seen a 25% drop in acci- lance and audio recording technology research and develop- dents and mortality. The total number of traffic viola- ment since 1999. The company develops professional security tions have more than halved in some regions within the first month, with zero fatalities reported. systems with unique technical features that are used to execute complex wide-area projects. VOCORD systems work across Although the VOCORD Traffic system has been op- erating in Moscow for several years and has proven more than 70 “Safe City” projects in Russia and abroad. In the to be an effective way to improve road safety, VO- sphere of video surveillance and video analysis systems, one of CORD specialists are constantly working to improve the most popular VOCORD products is the VOCORD d Traf- it. Last year, specialists developed a new multilane system with a radar that covers a wide area, which is fic system, which recognizes license plates and captures traffic capable of monitoring up to four lanes in one or both violations. The company actively develops new video analysis directions of the road. Another important innovation is the new pulsed infrared illuminator, which is used technology: computer vision, face recognition and license plate in ANPR and video surveillance systems at night and recognition. In 2011, VOCORD became a Skolkovo resident with during poor lightning and weather conditions. the 3D-vision and face recognition system project. Since 2013, the VOCORD Traffic system has also been operating on railway crossings in Moscow. Train traf-

68 CAPITAL IDEAS July-September 2016 fic outside of Moscow is quite active, which requires Note from Capital Ideas: drivers to abide by traffic laws around railway cross- ings. The system can capture various types of viola- tions around these areas: driving around the barrier Conventional radar detectors, which a lot of drivers are or entering the crossing on a red light. These viola- equipped with, cannot detect VOCORD Traffic systems. This tions are captured at night and in bad weather condi- is because these systems incorporate two methods - one is tions as well. According to Alexey Kadeishvili, the next round of improvements to the system will entail in- radar based and the other is optical, which is based on precise creased energy efficiency, a reduction in the system’s measurements for the time of each frame. dimensions and lower prices. ■

IR-illuminator for operation at nighttime Speciallized camera for license plates recognition

Switchboard cabinet with built-in street server

Data center

Matching against investigation databases

The archive server

Connection to the CCTV-camera Export to Police data center traffic light controller

July-September 2016 CAPITAL IDEAS 69 TRAVEL

verybody in the world has heard of the mysterious Rus- She came to Moscow for the first time when she was just four sian soul, but the Italian soul is no less mysterious. At years old. She has been here many times since then and prob- least this is what Olga Strada, the Director of the Ital- ably knows Moscow as well as she knows her own hometown, ian Cultural Institute who is familiar with the souls of Rome. Unlike Rome, the capital of Russia is becoming cleaner both Italians and Russians, is convinced that this is the and more beautiful. There are gorgeous parks, comfortable pe- Ecase. Her father, Vittorio Strada, is an Italian from Milan. Her destrian areas. “I wish we had someone like Sobyanin,” Signora mother, Klara Yanovich is Russian who was born in the Far East. Strada says during her conversation with Sergo Kukhianidze, Olga’s parents met and fell in love while they were both study- the Editor in Chief at Capital Ideas. In short, the fact that she ing at MSU. They are now both over 80, they live in Italy and has this job is no coincidence. Olga Strada is the perfect person are happy that their daughter heads up the Institute. Vittorio, to help Russians and Italians understand each other. who is one of the leading Slavic Studies experts in Europe, used to be in charge of the Institute himself. He was responsible for But is there really such a big rift between us? Of course, a Papua introducing many Russian writers and poets to Europeans, in- New Guinea institute or Burkina Faso’s home would bridge a cluding Mikhail Bulgakov, Isaac Babel, Pasternak, Yury Trifonov, much wider cultural gap, since Russians know very little about Fazil Iskander and Alexander Solzhenitsyn. these cultures. But an Italian Cultural Institute? It’s difficult to find a Russian person who doesn’t love Italy and everything It is no wonder that Olga has been familiar with Russian lit- that has to do with it: film, fashion, food! “Yes, the mention of erature since childhood and knew a lot of writers personally. Italy will always make a Russian smile. Italy is sun, sea, fresh air,”

70 CAPITAL IDEAS July-September 2016 Olga Strada: It’s important to love with your head as much as with your heart

Thirty years ago, an Italian Cultural Institute opened in Moscow. Why?

says Olga, “But you can love something without understanding to the Institute. “As much as I respect Al Bano, Toto Cutugno it. My father, for example, always tried to understand Russia and Pupo, I want to show Russians that there are different with both his heart and his mind.” kinds of Italian music,” Signora Strada says. But there is more to do at the Italian Cultural Institute than listen to contemporary According to Olga, the majority of Russians are completely off Italian musicians, discover new authors or watch the most re- in their perception of Italy and Italians. A lot of what they know cent Italian films. You can also learn Italian! is based on stereotypes. “Italy is a country of contrasts and paradoxes and Italians are no less mysterious than Russians,” Signora Strada dismantles stereotypes gently, with elegance. Signora Strada says. The following is just one example. Very few Russians know that cappuccino, which Russians have grown to love so Suffice it to say, for example, that Italians are considered to be big much, is a breakfast drink. Ordering it after noon, as Russians risk-takers. On the other hand, though, it’s hard to find another often do in Italy, is a faux pas. “If somebody I am close to does nation where people are so frugal with their money. Or another this, I might tell them that’s not how we drink cappuccino example. Italians love company and sharing big meals with friends, back home,” Olga says when we ask her if she would correct but, at the same time, individualism is a prominent trait for Italians. somebody who makes the mistake of ordering cappuccino in the afternoon, “But I wouldn’t say anything to a stranger.” Olga dismantles stereotypes by inviting famous Italian histori- Why? “Because it’s not polite,” she says, “and being polite is ans, writers, journalists, architects, artists, directors and actors part of our culture.” ■

July-September 2016 CAPITAL IDEAS 71 FACEMOSCOW TO FACE 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.

ПОГНАТЬСЯ ЗА ДВУМЯ ЗАЙЦАМИ – pognattsa za dvum’a zaytsami. (To run after two hares) Explanation: To persue two different aims simultaneously.

СМЕЯТЬСЯ В КУЛАК – smeyattsa v kulak. (To laugh into one’s fist) Explanation: To laugh secretly to oneself while being outwardly serious.

СТРЕЛЯТЬ ИЗ ПУШКИ ПО ВОРОБЬЯМ – str’el’at iz pushki po vorob’yam. (To fire a cannon at sparrows) Explanation: To make a great effort for a small gain.

ХОДИТЬ ПО СТРУНКЕ – khodit’ po strunk’e.

Pictures by Anastasia Saifulina Pictures (To walk on a string) Explanation: To be completely under someone’s authority.

НЕ УДАРИТЬ В ГРЯЗЬ ЛИЦОМ – ne udarit’ v gr’az’ litsom . (Not to strike the mud with one’s face) Explanation: To try to appear at one’s best.

72 CAPITAL IDEAS July-SeptemberJule-September 2016 ТЕПЛОЕ МЕСТО – t’oploye mesto. (A warm place) Explanation: A highly paid appointment or job.

СПУТАТЬ ВСЕ КАРТЫ – sputat’ vse karty. (To mix up all the cards) Explanation: To spoil or ruin someone’s plans.

СИДЕТЬ СЛОЖА РУКИ – sidet’ slozha ruki. (To sit with one’s arms folded) Explanation: To be idle

РУКИ ЧЕШУТСЯ – ruki cheshutsa. (One’s hands are itching) Explanation: Someone’s anxious to do something.

НЕ ЧУЯТЬ НОГ ПОД СОБОЙ – ne chuyat’ nog pod soboy. (Not to feel one’s feet under oneself) Explanation: To be very happy!

ЦЕНЫ НЕТ – tseny n'et. (There’s no price on someone or something) Explanation: Someone or something is priceless

Jule-SeptemberJuly-September 2016 CAPITAL IDEAS 73 OUR INTERVIEW Vladimir Urin: Getting to know another country through art destroys bias

“At its core, Russian art is based on humanistic values that stress relationships between people,” said the General Director of the Bolshoi Theatre Vladimir URIN in an exclusive interview with Sergo Kukhianidze, Editor-in-Chief at Capital Ideas.

Mr. Urin, everybody in the world knows how spe- cial the Bolshoi Theatre is. In your opinion, why has the Bolshoi become such a well-known, posi- tive brand abroad? When did this happen?

It’s important to point out that the Bolshoi Theatre established itself as a brand in Russia before it be- came famous abroad. This didn’t happen overnight - it happened over the course of the 240 years that the Bolshoi has been in existence.

There aren’t many theatres in the world that have such an extensive history. Especially since Russia has always been famous for prominent singers, mu- sicians and dancers.

The Bolshoi Theatre goes on tour a lot and lives up to its reputation in the West by putting on great shows. I think that’s why people know about it. To- day, TV and digital technology have made it pos- sible to watch Bolshoi Theatre performances from any corner of the world in real time. Everybody has the opportunity to appreciate the scope of quality of our art.

July-September 2016 CAPITAL IDEAS 75 OUR INTERVIEW

How significant is the Bolshoi Theatre for Russian culture? Are there institutions that hold more sig- nificance?

It’s almost impossible to answer this question because it’s very subjective. Everybody has their own opinion. There are many cultural institutions in Russia: ones associated with museums, literature, history, archi- tecture… Trying to organize them into some kind of hierarchy is pointless. How can you compare Russian cultural institutions, especially in the global sense. How would you compare Leo Tolstoy and the Hermit- age Palace?

Nobody has any doubt that the Bolshoi is very impor- tant to our culture. But I don’t think it makes sense to create hierarchies.

If the Bolshoi Theatre is our “secret weapon,” what values does it communicate to the world?

Values? I suppose, first of all, that these are the values that are conveyed by Russian art generally - by Russian music, Russian literature, Russian paintings. At its core, Russian art is based on humanistic values that stress re- lationships between people. Of course, the best Bolshoi pieces convey these principles as well.

76 CAPITAL IDEAS July-September 2016 www.bolshoi.ru

Do you believe that culture can bring people closer and help countries overcome political disagreements?

I think it’s the only thing that can. How do we learn about people from a different culture? From art and literature. That’s how we understand a nation’s values. After all, we often talk about how we can learn about different cul- tures, but there are some cultures that are easier for us to understand, while others are more of a challenge. I think that getting to know a country through its art and culture dismantles the biases that politicians work to uphold. I’m speaking from experience here, since I have toured a lot with the Stanislavsky Theatre and the Bol- shoi. The attitudes people have toward us and toward Russian culture in general leaves no doubt in my mind that we don’t have any problems when it comes to un- derstanding each other.

Yuri Vizbor once famously wrote that Russia is the world’s leader in ballet. Is this still true today?

In some respects, yes. But not in every respect, if we’re dis- cussing the development of ballet and its contemporary form. But what I do know for certain is that today’s Bol- shoi Theatre troupe is one of the best troupes in the world according to the opinions of professionals, colleagues and audience members. And in my opinion as well. ■ www.bolshoi.ru

July-September 2016 CAPITAL IDEAS 77 FACEThis and TO FACE that The mysteries

There are some Russian words that never need to be translated. One of them is the word “dacha.” Are you sure you know exactly what this word means?

ummer is here, which means that hundred square meters in size to its citizens Muscovites have started to migrate to (This is why some people still refer to dachas their summer homes, which are called as “shest sotok,” which translates roughly as “dachas.” In spite of the fact that the “six one hundreds”). word no longer needs to be translat- Sed, the concept continues will likely always Of course, there was a catch to getting a plot be somewhat of a mystery to foreigners. In of free land. Every person who was allocated a simple terms, a dacha is just a Russian sum- plot was obligated to grow produce on it: po- mer home. However, this definition fails to tatoes, tomatoes, cucumbers, beets, carrots, encapsulate the essence of what a dacha is. herbs. People also planted fruit trees, such as For Russians, it is more than just a home - apple trees, pear trees and cherry trees. dacha is an entire lifestyle. During the sum- mer months, it is a simple truth that does not “In the USSR, people could get fruits and veg- require further evidence. etables at the store, but there wasn’t a wide selection and the quality wasn’t so great ei- Foreigners first learned about Russian da- ther. The quality of produce from kholkhoz chas from books, first and foremost from markets was much better, but nobody could the works of Anton Chekhov. For example, afford to shop there. So the people who had his brilliant play “The Cherry Orchard” is set dachas frequently used them to grow pro- mostly in a cherry orchard that is about to be duce. After the war, the authorities decided Pictures by Anastasia Saifulina Pictures cut down to make room for dachas. Works to give away land to people as opposed to by journalists and diplomats who worked in having people take over land plots on their Russia, as well as books by sovietologists, own. Workers received land plots in garden- also offered insights about dachas. A lot of ing communities - the famous six hundred books contained descriptions of dachas that square meters. Those who didn’t have a plot belonged to leaders like Stalin, Brezhnev of their own were jealous of those who did, and Gorbachev. The attempted coup in 1991, because they had better food,” writes Kom- by the way, happened when Mikhail Gor- mersant in an article about Russian dachas. bachev was at his dacha in Crimea. People who refused to turn dachas into gar- But these dachas have little in common dens risked having their land plots taken with the dachas that Muscovites go to ev- away. After all, the reason dachas were allo- ery summer. The history of these dachas be- cated to people in the first place is because gins after WWII. The Soviet government de- the Soviet government was hoping to at cided to give away land plots that were six least partially solve the problem of produce

78 CAPITAL IDEAS July-SeptemberJule-September 2016 of russian dacha shortages, which was a pressing issue in the USSR. In any case, while only the wealthi- est people in the West could afford to have summer homes, almost everybody in the USSR had one. Most of the people who owned dachas were not incredibly well-off.

This went on until almost the very end of the 20th century. In the beginning of the new millennium, popular attitudes toward dachas began to change. Obviously, the state doesn’t hand out plots of land any- more. Today, the best way to get a dacha is to simply buy one. You can grow produce on it if you want or just use it as a place you can relax. In any case, when asked how they plan on spending the summer, 25 percent of Russians answer: “At my dacha, tending to my garden and relaxing.”

But regardless of what people do at dachas, there is one thing that everybody enjoys - “shashlik” (Russian for barbeque). At night, da- chas all over the country become surrounded by a cloud of fragrant barbeque smoke. To Russian people, “dacha” and “shashlik” have long become synonyms. It’s difficult to even try to imagine one without the other!

Russian dacha culture is so rich that for- eigners who come here quickly develop an affinity for it. Many either end up getting their own dachas they go to on the week- ends or just living in cozy houses outside of Moscow. For example, one of the German businessmen on the pages of this issue, who has been working in Moscow for a long time, talked about how thrilled he is about life outside the city, which is why he and his family decided to leave their apartment be- hind and move to a dacha. ■

Jule-SeptemberJuly-September 2016 CAPITAL IDEAS 79 TRAVEL The Oldest Monasteries in Moscow: places of worship and fortresses We want to introduce our readers to a Novodevichy women’s convent rare and amazing page in the chronicles ovodevichy, one of the oldest and most beautiful monaster- of our city – a city with an extensive ies in Russia, has kept its unique ensemble of buildings from history that has survived many raids the 17th century. The monastery was never reconstructed, which is why it has managed to retain its original architec- and remained standing through the Ntural beauty over the centuries. toughest years, which kept growing and Novodevichy Convent was founded in May of 1524 by the Grand Prince becoming more beautiful over the course of Moscow Vasily III to commemorate the victory over Smolensk (1514), which had been under Lithuania’s control for over a hundred years. The of several centuries. For the most part, event marked the unification and establishment of a single, indepen- dent Grand Duchy of Moscow. The reigning idea of the royal founder, Moscow was able to survive due to the the succession of the two kingdoms (Byzantium and Rus), is expressed monasteries, the construction of which in the fact that the main cathedral church of the monastery is dedicated to the Smolensk Icon of the Mother of God, named Hodegetria. The was the brainchild of the rulers of the image of Hodegetria was the main shrine of Constantinople and the sacred palladium of the Byzantine Empire. Moscow kingdom. At the order of Vasily II, the first abbess of the Novodevichy Convent was An interesting fact: the monasteries were the famous ascetic of the Suzdal Pokrovsky Monastery, nun Elena. 18 nuns arrived with her from Suzdal. Their prayers and efforts at Novodevichy cre- erected in Moscow for more than just religious ated the foundation of monastic life based on strict communal living. purposes. They were also a good protection From the second half of the 16th century to the end of the 17th century, mechanism for city residents during raids or the history of Novodevichy Monastery is closely tied to the fates of royal dynasties: the leaving Rurikids and the first Romanovs. In these walls, fires. These monasteries are located in the south women from the royal family and elite households took their monas- tic vows. In 1549, Ivan the Terrible baptized (and, a year later, buried) of Moscow, since attacks on the capital came his first-born daughter Anna. In 1564, Princess Juliana Paletskaya, the mostly from the south and the west. widow of Yuri Vasilievich, the King’s younger brother, took her monastic vows here. In 1582, Elena Sheremetyeva, the widow of his murdered son Ivan, took her monastic vows here as well. In 1598, after the death of Tsar Fyodor Ioannovich, Queen Irina Godunova relocated to the mon- astery from the Kremlin. Godunov built the widow spacious chambers, which were named after her, along with a house church (now called Amvrosievskaya Church). He also erected giant stone walls around

80 CAPITAL IDEAS July-September 2016 The Oldest Monasteries in Moscow: places of worship and fortresses

it, turning into a strong fortress that protected the West of Moscow. In the 18th century, as a result of the reforms enacted by Catherine the In the middle of the 17th century, thanks to the efforts of the first Ro- Great, the monastery was tripped of its estate and received a money manovs - Tsars Mikhail, Alexis and Fedor - Novodevichy was fully re- and bread allowance. In the 19th and beginning of the 20th century, stored, released from taxes to the treasury and endowed with an es- the number of nuns at the monastery reached 300 people. The sisters tate. It became the wealthiest monastery in Russia. worked in the church, bread room, dining room, and needlework shop, as well as took care of the cemetery. The monastery’s white and gold The monastery fully blossomed during the reign of Sofia Alekseyevna needle workers were especially famous. (1682-1689). It was during her reign that the monastery acquired its unique architectural ensemble, which still surprises visitors with the Life at the monastery, which had remained largely the same over the harmony of proportions, variety of shapes and exquisite decorations. centuries, was interrupted by the October Revolution of 1917. The char- ity and educational institutions were shut down, savings and land were Not all women came to the monastery of their own free will. At the confiscated, and the cells were handed over to Red Army soldiers and order of Peter the Great, his sister Sofia Alekseevna was confined here workers. In 1922, the monastery was abolished. and forced to become a nun after the Streltsy uprising. Those who sided with her were executed in front of the monastery and their heads were In the fall of 1994, monastic life at Novodevichy Convent resumed. The mounted on the wall. monastery hosts services on Sundays and holidays during the sum- mer. There are currently 30 sisters living at the monastery, headed by In 1727, Queen Elena, the first spouse of Peter the Great, came the live Mother Superior Margarita (Feoktistova). Traditional monastery crafts at the convent. She was forced to take her monastic vows at the order are being revived, including icon painting, sewing and gold embroidery. of Peter the Great in 1699. In 2004, the architectural ensemble of the Novodevichy Monastery was In 1812, the Novodevichy Monastery was occupied by French troops for a added to the list of UNESCO Cultural Heritage sites. The ancient mon- full month. Miraculously, the monastery was not ruined. When they were astery is one of the most-visited tourist attractions in Moscow. retreating, the French wanted to blow up the Smolensk Cathedral and the Church of the Assumption. Fortunately, the attempt was not successful. The monastery is open to visitors daily, from 9.00am to 5.00pm.

Address: Novodevichy Passage 1, m. Sportivnaya Tel. : Diocesan Office: +7 (499) 246-0881, church: +7 (499) 245-3168, tour desk: +7 (499) 246-8526 Web: http://novodev.msk.ru

July-September 2016 CAPITAL IDEAS 81 TRAVEL Svyato-Danilov men’s monastery

he Danilov Monastery is the oldest monastery in Moscow, and was built at the end of the 18th century with the per- sonal funds of Prince Daniil of Moscow. Daniil was the son of the famous Russian Orthodox Church patriot Alexander Nevsky, who defeated the Swedes and Teutons while de- fendingT Russia’s borders.

Other legends claim that, prior to his death, Prince Daniil took monastic vows (in 1303) and was buried at the Danilov Monastery.

The existing monastery was founded, or reopened, by Ivan the Terri- ble in 1560, supposedly in the same place where the former necropolis stood.

In 1591, when the army of the Crimean Khan Kazi Giray approached Moscow, a Russian fortified mobile camp was set up by the monastery. At the end of the 1920s, the Danilov bell tower was dismantled. The bells from the belfry were saved by the American industrialist and dip- In the beginning of the 18th century, the monastery was enclosed lomat Charles Crane and remained at Harvard University until 2007. by a brick wall with 7 towers. By 1710, the Danilov Monastery had The monastery’s day-to-day life is managed by the Archimandrite. Like 30 monks. In 1764, there were 12 monks with the abbot. In 1900, the all modern monasteries in Russia, the Danilov Monastery is cenobitic number of monks totaled 17. In 1812, the monastery was raided. On in nature, which means there are communal prayers, work and meals. the eve of the French invasion of Moscow, the sacristy was moved to Vologda, while the treasury was relocated to the Trinity Lavra of St. Services are held daily. There is a Sunday school operating at the mon- Sergius. In the middle of the 19th century, the abbot’s post was com- astery, catechetical courses for adults, publishing, tour services and bined with the post of dean of the Moscow diocesan monasteries. church workshops. At the end of the 19th century, the monastery owned 178 tithings, several houses in Moscow and a stone courtyard. Starting in 1805, the monas- Address: tery included a hospice for elderly women. In 1862, a hospice for elderly Danilovsky Val 22, m. Tulskaya priests and their widows was added. By 1917, there were 19 monks and Tel.: +7 (495) 958-1107, office and tour bureau: +7 (495) 958-0502 4 students at the monastery. The monastery owned 164 acres of land. Web: http://msdm.ru

82 CAPITAL IDEAS July-September 2016 Donskoy men’s monastery

onskoy Monastery was founded in 1591. The monastery in- place of worship for the philosopher Pyotr Chaadaev, as well as the po- herited its name from the icon ‘Our Lady of the Don,’ which ets M. Kheraskov and A. Sumarokov. Writer V. Odoyevsky, historian V. miraculously rid Moscow of an invasion by Khan Kazi Giray’s Klyuchevsky and architect O. Bove are all buried here. troops. Legend has it that Sergei Radonezhsky used the icon to bless Prince Dmitry’s troops before the Kulikovskaya In the 1930s, the grave of artist V. Perov was transferred here from battle.D Thanks to the protection of the Blessed Virgin Mary, Khan Kazi Danilovsky Cemetery. In 2000, the remains of writer I. Shmelev were Giray’s troops were chased out of the city, and Crimean Tartars never buried here. In 2005, philosopher I. A. Ilyin and general A. I. Denikin dared to invade Moscow again. were buried here as well. One of the latest burials took place here in 2008, when Russian writer A. Solzhenitsyn was buried here. The monastery was founded on the same place where the army waited for the battle to begin, where the small church Address: camp with the image of the Blessed Virgin Mary also stood. Af- Donskaya Ploshyad 1-3, m. Shabolovskaya ter some time, an Our Lady of the Don Cathedral, which is now Tel.: +7 (495) 952-1481, +7 (495) 954-4024 called the Small Cathedral, was erected. This is how the Monas- Web: http://www.donskoi.org tery’s present name was derived. Overtime, a new place of wor- ship emerged between the Danilov and Novodevichy monaster- ies, which completed the formation of the Moscow defensive ring. In the beginning of the 19th century, Donskoy Monastery became the most privileged and wealthy place of worship in Russia. It had tremendous influence over the country’s overall spiritual and politi- cal life. From 1799 until 1827, Donskoy Monastery housed the Spiritual and Censorship Committee, which was then relocated to the Trinity Lavra of St. Sergius. A religious school was located at the monastery in 1834. In the beginning of 1909, a school for novices was opened here as well.

Since the 17th century, the monastery has served as a famous burial ground for some of the most well-known people in modern history. Among others, the people buried here include the Georgian kings David (1688), Alexander and Matthew (1711). The monastery became the last www.donskoi.org

July-September 2016 CAPITAL IDEAS 83 TRAVEL

Novospassky men’s monastery

he oldest monastic cloister in Moscow. It was founded in the A lot of revered Orthodox shrines are kept here. 17th century by Holy Prince Daniel of Moscow. His son, John Ka- lita, transferred to monastery to the Kremlin in 1330. Then, at There is a Sunday school, as well as a choir school for boys. The Novo- the end of the 15th century, it was transferred to Krutitsky Hill spassky Men’s Choir is one of the best choirs in Moscow and actively on the bank of the Moscow River and became an important gives concerts. Tdefense point, warding off multiple attacks on the city. The tall riverbank served as a kind of sentry point on the approaches to Moscow from the Address: south. The monastery was named Spas na Novom, or Novospassky. Krestyanskaya Ploshad 10, m. Proletarskaya, Krestyanskaya Zastava Tel: +7 (495) 676-9570 During the reign of Ivan the terrible, the monastery was turned into a mighty Web: http://novospasskiymon.ru fortress. Enemies that made it to the fortress were made with cannon and rifle fire. At the same time, the monks made bonfires and boiled water tanks or hot tar, then poured it over the heads of enemies from the wall.

When Mikhail I ascended the throne, Novospassky Monastery began to blossom. Even Peter the Great, who had a reserved attitude toward religion and wasn’t fond of monasteries, gave an order to decorate the monastery with paintings in 1689 and ordered a bell weighing 1,100 pounds to be made for the monastery to be made in 1717. In 1759, the bell tower was laid – a magnificent structure that still greets visitors at the entrance to the monastery.

In 1812, the monastery was heavily looted. The French looted the sacristy, devastating and burning cells and other structures. In 1913, the 300-year anniversary of the Romanovs, Nicholas II visited the Novospassky Mon- astery. Back then, the monastery, which was located on the outskirts of Moscow, became the center of religious and moral education. Against the backdrop of a general loss of interest toward religion, the monas- tery hosted missionary classes and educated the illiterate. The Society of Church Singing and Sobriety, organized by the monastery, was attended by many. The number of people who prayed increased significantly, and the monastery had trouble accommodating everybody who came.

The monastery was closed in 1918. Restorations didn’t start until 1968. In 1990, the monastery was returned to the Patriarchate. www.novospasskiymon.ru

84 CAPITAL IDEAS July-September 2016 The Conception Convent (Zachatyevsky Monastery)

his is the oldest monastery for nuns in Moscow. It has risen from the ashes a total of five times. The monastery was erected in 1360 by Alexius, Metropolitan of Moscow. This was the first monastery exclusively for women and all other women’s monasteries were based on this model. PeopleT started to call the monastery “Starodevichy.” It was known for strict adherence to ecclesiastical statutes and the unwavering devotion of nuns.

The monastery burned down several times over the past few hun- www.zachatevmon.ru dred years. During the terrible fire in 1547, the convent burnt down completely but was resurrected thanks to the efforts of nuns and In the beginning of the 19th century, the main cathedral of the mon- popularity among the people. astery, Rozhdestvenskiy Cathedral, was erected under architect Ka- zakov. The grandiose building had several chapels and was the most The Conception Convent was visited by childless couples who were hop- prominent work of architecture in the Conception Convent. ing to be cured. It is said that many were able to conceive afterward. On November 25, 2010, on the 650th anniversary of the Conception In August 1612, the Conception Convent in Moscow was destroyed, Convent, a historical event took place – the consecration of the re- as its walls were the battleground during the war with the Poles. stored Cathedral of the monastery and the first Divine Liturgy, which The monastery was restored and it stood unharmed for a long period was headed by Patriarch of Moscow and All Rus’ Kirill. of time afterward. The next time it was damaged was in 1812, dur- ing the war with the French. A few years after its founding, a refec- The Barvikha in Moscow has a monastery courtyard where the tory church of the Nativity of the Virgin was built here. In the future, wooden Church of the Holy Virgin has been restored. Service is held construction activities were pretty intense. In 1696, the Church of regularly, and there is a Sunday school for children and adults. Our Savior Not Made By Hands was erected here. Andrei Rimsky- Korsakov, a nobleman under Peter the Great, donated the funds for Address: the construction. In 1766, a Church in the Name of the Burning Bush 2nd Zachatyevskiy Pereulok 2, m. Kropotkinskaya Icon was erected here over the graves of the two cofounders of the Tel.: +7 (495) 695-1691, +7 (495) 695-1694 first monastery. Web: http://zachatevmon.ru www.zachatevmon.ru LIFE&CULTURE LA SCALA: Welcome to Moscow!

his summer has a lot in store for those who In a big city like Moscow, appreciate fine art. everybody can find something The Pushkin State Museum of Fine Arts entertaining to do over is hosting one of the biggest projects, a T large-scale retrospective Leon Bakst exhi- the next few months. It bition. Around 250 paintings, prints, photographs, documents from archives, rare books, stage cos- all depends on what your tumes and designs for fabrics will be showcased interests are. Some will be interested in checking out Ivan Aivazovsky’s work, while others will opt to visit a performance put on by the world-famous La Scala theatre, which is currently on tour.

86 CAPITAL IDEAS July-September 2016 LA SCALA: Welcome to Moscow!

together for the first time at an exhibition called “Léon Bakst. 150th Anniversary.” Leon Bakst, one of the most original and prominent artists of the 20th century, is first and foremost famous for his decora- tions for Sergei Diaghilev’s Russian seasons in Paris and London. His unusual decorations and costumes sealed the success of productions such as “Cleopa- tra,” “Scheherazade,” “Blue God” and “Sleeping Prin- cess,” and had an impact on the overall concept of stage design.

Fans of modern art will likely be interested in learn- ing about the 5th Moscow International Biennale for Young Art, which will take place at the Trekh- gorka on July 1 - August 10.

The project was founded in 2008. Experts consider it to be a unique event because there are no simi- lar young art exhibitions of this scale in the world. There are plenty of other biennale events all over the world, but the event in Moscow specifically fo- cuses on talented young people and provides them with international startup opportunities.

An exhibition that promises to be one of the great- est cultural events of the summer is opening on at the Tretyakov Gallery on Krymsky Val on July 29. Ex- perts say that the exhibition will be extremely popu- lar. This is because its main focus is Ivan Aivazovsky, one of the greatest marine artists in history. The exhibition will feature about 100 paintings and 50 prints out of the massive collection that encom- passes almost 6,000 works. Highlights include the artist’s most famous paintings: “Rainbow,” “Black Sea,” “Ninth Wave” and “Wave.”

The exhibition “Film and Fashion” will be on display at VDNKh (Pavilion 64) until the middle of August. This project was authored by fashion historian and popular TV show host Aleksandr Vasiliev. Mr. Vasiliev has been collecting dresses and accessories from the most famous film stars, singers and ballet dancers for many years.

Aleksandr Vasiliev said that he is immensely proud of the exhibition. “After some time goes by, future gen- erations will draw conclusions about these women who became symbols of entire eras based on their dresses, costumes, jewelry, bags and shows. And I will make sure to preserve all of this. I won’t shy away from calling my connection unique. To be honest, a lot of the exhibits are passed on to me after celebrities

July-September 2016 CAPITAL IDEAS 87 LIFE&CULTURE

Up until mid-September, Multimedia Art Museum on Ostozhenka is hosting an exhibition in honor of the 55th anniversary of Yuri Gagarin’s first flight into space. The images on display are truly rare. After all, the project was created in collaboration with the Rocket and Space Corporation "Energia," the Archive of the Russian Academy of Sciences, the Tsiolkovsky State Museum of The History of Cos- monautics, the Russian State Library, the Moscow Museum of Modern Art, the Museum of Moscow and many other museums and galleries.

There is also something in store for jazz fans. On July 29, Tchaikovsky Concert Hall will be hosting Sergey Zhilin’s "Phonograph Jazz,” with the program "Jazz Rapture." Those who watch the popular show “Golos” on Channel One are familiar with the en- semble. Sergey Zhilin is the person who is always being thanked for his accompaniment by all mem- bers of the project, along with the famous host of the show Dmitry Nagiev. pass away by their relatives. But the legendary bal- let dancer Maya Plisetskaya gave me something while Avid theatre-goers, especially those who are in- she was still alive. We were friends, and she has been terested in unusual and original productions, have at my Lithuanian estate several times. One of her three new plays to choose from. The Theatre of dresses ended up in a collection from the Lithuanian Nations is hosting a play based on Fyodor Dos- ballerina Eglė Špokaitė. Plisetskaya was a very gener- toyevsky’s The Idiot by the young director Maksim ous woman and it wasn’t a big deal for her to part Didenkopo. with material things. She could take off her earrings and give them to a young ballerina she liked as a pres- In spite of the fact that the stage version of the ent. Or she could give away a Mark Segal drawing.” novel, which was written by Konstantin Fyodorov,

88 CAPITAL IDEAS July-September 2016 www.theatreofnations.ru

includes 20 characters, the play features just four performers. The inimitable actress Ingeborga Dap- kunaite will be playing Prince Myshkin! Yes, that’s right: a woman will be playing a man’s part. More- over, the director decided to execute the project in a “black clown” aesthetic. Unusual, isn’t it?

Another big play, “A Midsummer Night’s Dream,” won the prestigious Golden Mask award in the “Drama/Play” nomination category. The production features Irina Gorbacheva, who is one of the most unique young actresses in Russia. She has become extremely popular over the past year. She owes a lot of her success to Instagram, where Irina frequently posts small, hilarious clips in which she plays differ- ent roles. In one of the clips, for example, she is a young and overbearing mother. In another, she is an old actress who is paranoid that everybody is plot- ting against her. The public really enjoys these small glimpses of acting, which is why Irina became such a big star. Her Instagram blew up with over half a million followers in just a few months.

Finally, there is a love story from Ivan Vyrypaev at the Moscow Art Theatre. “Dreamworks. Dreams come true” is a story that centers simple human

July-September 2016 CAPITAL IDEAS 89

LIFE&CULTURE

values: marriage, love, family. The play uses mod- for over 20 years. Rumor has it that the reason for ern language and is executed in the style of Hol- the break-up is his new love. There are also rumors lywood films. It stars an up-and-coming film and about an upcoming wedding between Fyodor and theatre star Paulina Andreeva - the same woman Pulina. that Fyodor Bondarchuk supposedly fell head over heels for. Bondarchuk recently announced that he Opera lovers are in for an unforgettable event at is divorcing his wife, who he has shared his life with the Bolshoi Theatre this fall. The famous Italian

90 CAPITAL IDEAS July-September 2016 Opera theatre La Scala (translated as “Ladder”) is coming to the Bolshoi on tour! The La Scala perfor- mances that will take place this fall will mark the beginning of a long-term partnership between the Bolshoi Theatre and the art festival Cherry Forest, organized by the company Bosco di Ciliegi. The tour will last for a week. Aside from Verdi's "Simon Boc- canegra," the programme includes an Italian music concert and Verdi’s “Requiem,” which is considered to be La Scala’s specialty.

On September 23, the International House of Music will host a creative meeting with one of the most famous film directors in Russia, Andron Koncha- lovsky. The son of translator Natalia Konchalovs- kaya and famous poet Sergey Mikhalkov, Andron has an impressive list of accomplishments of his own. His films are always of great interest to the public, especially since Konchalovsky is probably the only director who managed to work in Hollywood: “Tango and Cash,” with Russell Crowe and Sylvester Stallone, was one of his films. He is a true master with a unique perspective and tremendous life ex- perience. Andron Konchalovsky will be 79 in August. But age is just a number for somebody who is in great shape, still making films and is married to a 42-year old woman.

In the fall, two famous singers will be gracing the stage of Croscus City Hall. Ani Lorak will be per- forming on October 7 and Vera Brezhneva, former singer of the band VIA Gra, will be performing on October 8. Both women could justifiably claim to be sex symbols, as they are both very beautiful. More- over, Vera Brezhneva has been a hot topic of discus- sion this year: the entire country was following the developments of her personal life. The thing is that Vera recently married famous composer Konstan- tin Meladze, who also writes all of her songs. The romance had been brewing for a long time, Kon- stantin was married with three children. Vera had also been married twice and had two daughters. Nonetheless, their feelings for each other continues to grow. Meladze got divorced, and the two finally got together.

On October 15, there will be a major event for ballet fans. For the seventh time, Moscow will be host- ing Kremlin Gala “Ballet Stars of the 21st Century.” This unique annual event brings together the big- gest ballet stars from all over the world at the State Kremlin palace. These are big names all ballet fans will recognize: Ivan Vasiliev and Marlon Dino, Artem Ovcharenko and Tyago Soares. The audience will be treated to classical and modern choreography. Kremlin Gala will provide visitors with the rare op- portunity to see stars from the most famous ballet troupes in the world in a single program. ■

July-September 2016 CAPITAL IDEAS 91 FOOD&DRINK ARAGVI Want to become part of a legend? The main culinary event of this spring was the opening of the restaurant Aragvi in Moscow. The restaurant re-opened its doors after restoration. It is no surprise that Sergey Sobyanin, the Mayor of Moscow himself, talked about the opening. After visiting the restaurant, the mayor noted: “Aragvi should become a very popular place!”. To what does Aragvi owe the honor?

t’s tough to find a restaurant that is more fa- mous than Aragvi in the capital. In fact, call- ing Aragvi a famous restaurant is an under- statement. It is a truly legendary place that opened in Moscow all the way back in 1938. It encapsulates the history of our country. Back in the Soviet era, there was a joke about the restau- rant:I “Two friends walk out of Aragvi, and one says to the other: ‘Yuri Dolgoruky has truly built a re- markable city around this restaurant!’”.

Yes, Aragvi has always truly been the center of bo- hemian life in Moscow – public and political, lit- erary, artistic. It is impossible to list the names of every celebrity that liked to spend time within its walls, eating khachapuri, khinkali and other deli- cious Georgian dishes. Today, a huge mirror hangs at the entrance to the restaurant – the only thing that has been left over after the restoration. Next

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to the mirror, there is a plaque with the following text: “This mirror has been at Aragvi since the res- taurant was founded. Famous visitors have looked at their own reflections here – Valeria Chkalova, Vladimir Vysotsky, Yves Montand, Lilya Brik…Now that you’ve seen your own reflection in it, you have become part of a legend.”

Legends about Aragvi and its visitors continued up until 2001, when the famous restaurant had to be closed. This was a necessary step because the building in which the restaurant was located was in serious need of reconstruction. However, nobody had the funds for the restoration project back then. In 2009, the company Tashir, one of the biggest builders and developers in the country, decided to take on the project. “When we opened the doors to the restaurant,” says Karen Nahapetyan, the Gen- eral Manager of Aragvi, “we were horrified. There was terrible devastation everywhere. There was dirt, dust, a real swamp in the basement. In short, there was a lot of work to do.” Interestingly, when all the necessary permits were obtained and the work began, the restorers came across a 17th cen- tury building from the era of Alexis of Russia. A de- cision was made to restore the building instead of carrying our repairs in order to preserve the unique architectural monument.

94 CAPITAL IDEAS July-September 2016 Of course, today’s Aragvi has little in common with the restaurant of the Soviet era. However, even if you are struck by a sad nostalgia, it will immediate- ly disappear once you visit the restored restaurant for the first time. Everything is done elegantly, with impeccable taste. The two thousand square meter area now houses 9 halls! One of them, called the White Hall, has preserved the historical aura of the Soviet era. This hall used to be a favorite for mem- bers of the Politburo, headed by the all-powerful Lavrentiy Beria, head of the Soviet secret service. Incidentally, legend has it that Beria himself initi- ated the construction of Aragvi. In any case, there is a guide who will tell you all about the other in- teresting legends and rumors about the restaurant. The tour of Aragvi’s gorgeous halls lasts 30 minutes. What other restaurant on Earth has its own guide giving tours to new clients?!

But, as they say, you can’t feed an empty stomach with fairy tales. Regardless of how gorgeous the interior is, the most important thing that people come for is the food. Today, the restaurant offers top-notch Caucasian and Black Sea cuisine. “During the Soviet era, a lot of the products were shipped to Aragvi from Georgia,” says Karen Nahapetyan, “The Moscow-Tbilisi train had a special car with all sorts of food and spices. There is no need for this now.

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All of the products – vegetables, fruits, herbs, meat, When asked what the restaurant’s philosophy is, Ka- fish – are purchased at the markets or from farms. ren responded with the following: “In short, Aragvi We have known all the providers for a long time, is an atmosphere of warmth and taste.” Then, after which is why all of the products here are the best pausing for a smile, he added: “Aragvi keeps its old and the most fresh!” legends and creates new ones.” ■

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There is safety in numbers