We Aim Above the Mark to Hit the Mark Ralph Emerson

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STRATEGIES FOR BUSINESS IN MOSCOW

We aim above the mark to hit the mark Ralph Emerson

A PROPOS

I will start with two quotes. Here is the first: “We had a with his band Hollywood Vampires. We will hope that this very successful trip to Russia. We made it back.” Here is the time he will have more time to enjoy the city. second: “The only problem that I have coming to Russia is Life in Moscow is becoming better not by waving a magic that there’s never enough time to see and visit everything.” wand. All of this is the result of the city’s authorities imple- The first line comes from the well-known American comic menting programs affecting all corners of life. Transport, Bob Hope, who visited Moscow at the start of the 1960’s. The residential buildings, education, health, safety, sport, tour- second quote came from the famous Hollywood actor Johnny ism, recreation… Even sceptics acknowledge today that Depp, who visited the Moscow capital twice, first in 2011, and these programs are being implemented with success. Not later in 2013. More than half a century had passed between surprisingly, the Moscow Mayor Sobyanin has been for some the two quotes, during which time Moscow changed radically. years now in the first place in national ratings among Rus- Changes today in the capital occur at a such a break-neck sian regional authorities. speed that even a Muscovite could not keep track of them. However, one does not need to look at ratings to understand Almost every day some positive development takes place how Moscow is getting better. Now it is difficult to find a in the city: a new subway station is opened for use, a new foreigner living in Moscow who does not love this hospitable supermarket, cafe, or movie theater opens its doors, a new city. Many expats have openly described to me how they segment of highway is laid, or a new residential building is really enjoy life in the Russian capital. Some of them confess, constructed. what they can get here they would never be able to get back It used to be that when foreigners arrived to Moscow, they by in their home country or anywhere else. This, of course, is and large had no idea what to do and where to go to have an not just about beautiful women, who really are unbelievably interesting time. Aside from Red Square, Tretyakovskaya Gal- abundant in Moscow. However, this, ultimately, is a matter lery, Bolshoi Theater, and, perhaps, Gorky Park, it seemed as of taste and personal charm. We are talking about something if there was nothing to see in the Russian capital. The city did entirely different. First of all are the high-quality services not even have decent cafes and restaurants, where one could which one can get in the city, and the opportunities which have dinner. Moscow closed at 23:00 and, whether or not one are available here for every intelligent, energetic, ambitious wanted to, one had to go home and sleep. businessman. After all, sanctions are one thing, but the desire and ability to work are another. Foreign businessmen working Today, however, Moscow is a city which never sleeps. Now today in Russia give quite a few good examples of this. it is nice to just walk around Moscow. The city center has been completely liberated from vehicles and given to pedes- For those who have still not figured out what to do, I can give trians. Currently a rich, interesting life is in full swing both some advice. Here it is: Come to Moscow without hesita- night and day in the Russian capital. There are first-class tion – it is a modern, convenient city that is attractive for restaurants and cafes, exhibits and concerts with world- business and investment. After all, Moscow is a megalopolis renowned stars. Incidentally, at the end of May of this year of 20 million people, which is implementing one of the largest Johnny Depp is coming to Moscow once again, this time development programs in the world for city infrastructure.

Sergo Kukhianidze Editor in Chief

[email protected] CAPITAL IDEAS Moscow official Founder: Department for External Economic and International Relations of the Government of Moscow Moscow at MIPIM-2018 Address: 125009, Moscow, Voznesensky Pereylok, 22 Ph: +7 (495) 633-68-66, Fax: +7 (495) 633-68-65 MIPIM is one of the largest and most prestigious E-mail: [email protected] international forums in the world for investment and https://www.mos.ru/dvms real estate. The most influential representatives of all market sectors from over 80 countries take part in the Publisher: National Review Ltd exhibition, which has been conducted every year since 1990. CEO – Sergei Oposhnyanskiy Traditionally, the Russian capital takes part in this.. Phone.: +7 (495) 784-69-71 E-mail: [email protected] 6-8 CAPITAL IDEAS STRATEGIES FOR BUSINESS IN MOSCOW

Editorial staff: 9 Editor-in-chief – Sergo Kukhianidze Production crew of the edition: Elena Egorova (deputy editor-in-chief), Moscow official Vladimir Dolmatov, Chris Keegan, Marina Ogorodnikova, Anastassia Paloni, Vladimir Smelov, Marina Urshina Trade between Moscow and Consulting – Evgeny Khokhlov Design – Robert Saifulin France grows every year Photo editor – Victoriya Oposhnyanskaya Sergei Sobyanin held a meeting with representatives Page layout – Alexander Saifulin of the Economic Council of the Franco-Russian Assistant – Nadezhda Ratanova Chamber of Commerce and Industry, where Editorial contacts they discussed investment projects proposed by web: capitalideas.moscow representatives of the business community in a e-mail: [email protected] round-table format. f: capital.ideas.moscow 10-27 With assistance of Moscow Center for International Cooperation Address: 105005, 68/8, build.1, Baumanskaya str., Moscow, Russia Cover Story Phone/fax +7 (499) 267-46-56, http://www.mcms.ru/ Distribution – "Trans-Media" Ltd Moscow’s State Programs Acknowledgements to: A multitude of State Programs in various spheres PHOTO – www.mos.ru, www.dvms.mos.ru, www.stroi.mos.ru, ITAR TASS Agency, RIA- and professions are being implemented in Moscow, Novosti, Getty Images Russia, companies and organizations, represented in the issue. starting from the creation of a comfortable city If you wish to get new issues of Capital Ideas, please, apply to: [email protected]. environment and increase in quality of life for The magazine is registered with at the Federal Authority of Legislative Control Moscow’s residents, up to securing stable economic in Mass Media and Cultural Heritage Protection. Media registration certificate growth and inflow of investment into the city. We ФС77-53716, issued April 26, 2013. have selected fundamental and large-scale state All reproduction permitted only with the Editor’s permission and reference to programs for Moscow which are actively influencing ‘Capital Ideas’. the development and betterment of the business and Distributed free of charge investment climate in the city of Moscow. Published with support from the Department for External Economic and International Relations of the Government of Moscow Circulation : 7000 Signed into print 20. 04. 2018 Smart Money The investor searches Nothing Ventured for the place that is RENAULT continues to most advantageous invest in Moscow and reliable Localization of production is a goal for many What’s New foreign companies currently working in Russia. City infrastructure and public services There are more than a few examples of 36-44 development has provided the stimulus for successful of production localization. The most investment growth in Moscow. Moscow in words striking of these, perhaps, is Renault Russia. 28-29 45 46-49

30-33 Face to Face Matthias Schepp: German business in Russia is not sitting on its hands What attracts German businessmen to Russia, and how do they feel in the Russian market? Capital Ideas discussed these questions with the German-Russian Foreign Trade Chamber’s representative Matthias Schepp.

34-35 Environment Ecology in the focus of German Business An unusual meeting took place at the residency of the German ambassador Rüdiger von Fritsch. What makes this meeting so strange is that the conversation that took place was not about fine art, as frequently happens at meetings in ambassadors’ residences. This time, the topic for discussion was ecology: “Ecology in the focus of German business.”

April-June 2018 CAPITAL IDEAS 3 Nothing Ventured Nothing Ventured Karin von Bismarck: Ronaldo Carreras: Strengthening dialogue and faith between I made the decision to businesses and people come to Moscow without The Economic Club of Russia, a German association in the Russian Federation, reflecting unites workers from German-speaking countries who currently reside in Russia, What is the most important in the art of cooking? as well as Russian representatives. The main goal of this club is developing business That once you have tried a chef’s dish you want connections, deepening relations in different spheres, including science, education, to try it again and again. Ronaldo Carreras, 42, culture, and sport, as well as setting up and supporting interpersonal contacts. professional chef from Peru in Moscow, makes Dr. Karin von Bismarck, the club’s representative and founder, discussed the exactly these kind of delicious dishes. day-to-day functioning of it in an interview with Capital Ideas.

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54-56 58-60 64-67 Nothing Ventured Nothing Ventured Nothing Ventured Campbell Bethwaite: Jozef Kollar: The times of Russia is one of the Russia is changing get-rich-quick are gone most important and much more quickly Jozef Kollar, 56-year-old economist and leading markets for politician from Slovakia, started working than the rest of the as Deputy Chairman of the Board at the Kärcher world International Investment Bank in March The slogan “We are making the world 2016 after the bank opened its first European cleaner!” is used not only for production Australian businessman Campbell Bethwaite regional office in Bratislava. Mr. Kollar by the German company Kärcher, the arrived to Russia in 2006 as an American discussed with Capital Ideas why seeking out name of which is quite often taken as investment bank employee. After a couple touchpoints during “turbulent” times for the a synonym for cleanliness, but it also of years he left the company and started world economy is necessary. reflects this concern’s philosophy. his own business – the nightclub and bar The general director of Kärcher’s Russian Garage, followed later by the hotel project branch, Oleg Minaev described the Moscow Suites. Currently he is the owner concern’s work in Russia to Capital Ideas. of more than ten projects, the largest of which specializes in online loans to small and medium businesses.

4 CAPITAL IDEAS April-June 2018 Life&Culture Nothing Ventured Between past and future The Kotwani Brothers: Muir & Mirrielees: What surprises will Fate has connected us Pioneer of civilized Johnny Depp and his with Russia business in Moscow hollywood vampires The era of the amusing and terrifying “raspberry-colored What do Moscow and Scotland have in bring to Moscow? jackets” – the trademark clothes of new Russian business- common? Quite a lot. In any case, Scots have This spring and summer in Moscow promises men in the beginning of the 90‘s have fallen into the oblivion. played no minor role in the Russian capital’s more than a few interesting theatrical premiers A new business dress-code has finally appeared in Russia. history. It was them, for example, who taught and the arrival of an unbelievable number of Russian businessmen and politicians know now how to Russians how to conduct civilized business: world music stars from all kinds of genres: dress. They were helped quite a bit in this by the Kotwani sales personnel should smile, you should from classical to jazz and heavy metal. brothers, who based their The Imperial Tailoring Co. elite be polite with your clients, you should not Charles Aznavour, Ozzy Osbourne, and clothing company in Moscow more than 25 years ago. deceive them... Johnny Depp with Hollywood vampires...

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71 78-83 90-91 Expert Tips Travel Moscow Vocabulary Slava Polunin: Where great Russian 92-96 How to achieve authors lived and Food&Drink the impossible wrote Saxone + Parole: What can a clown master? Quite a lot, if his Moscow has always been home to many Everyone who comes name is Slava Polunin. The legendary clown and great people. Writers and poets wrote creator of the Academy of Idiots, whose art has their creations in old mansions and becomes a friend been admired worldwide, recently presented at narrow alleys, got married in Orthodox In order to open a restaurant in the center the Skolkovo innovation center. churches, and dedicated their writing to of Moscow, where there is unbelievable different city streets. It’s important to be competition, you need to be brave and sure 72-73 familiar with works by Pushkin, Bulgakov, of yourself. This is precisely the kind of and Gogol, but it’s just as important to This&That person that the experienced restaurateur learn more about their lives. Apartment Brad Farmerie and his Moscow partners are. locations, furniture, favorite routes, Five years ago they opened their restaurant We are Russians, and gathering places can help us better Saxone + Parole on Spiridonievsky Pereulok, and that explains a lot understand their ideas, thoughts, and which in this short period of time has become farewell messages. a cult sensation in the Russian capital. How do Russians differ from Americans? How does an American differ from the French? How do the French differ from the Japanese? In quite a lot of ways, but most of all they differ from each other in their culture.

April-June 2018 CAPITAL IDEAS 5 MOSCOW OFFICIAL Moscow at MIPIM-2018 MIPIM is one of the largest and most prestigious international forums in the world for investment and real estate. The most influential representatives of all market sectors from over 80 countries take part in the exhibition, which has been conducted every year since 1990. Traditionally, Moscow also participates.

n order to take part in this event a delegation Moscow’s stand, comprising more than 702 square from the government of Moscow, headed by Ser- meters in size, was situated at the Promenade de la gey Cheremin, Minister of the Moscow Govern- Croisette. The creation of new public spaces, new- ment, Head of the Moscow Department of Ex- generation sports infrastructure, the construction Iternal Economic and International Relations, visited of new roads and redevelopment of industrial zones France from the 13-16 of March. were the stand’s so-called “business cards.”

The Moscow delegation consisted of the city’s main A new interactive mobile complex was presented at architect Sergei Kuznetsov, who supervised two Mos- the stand’s opening which, using touch-screen tech- cow properties, Luzhniki stadium and Zaryadye park, nology, can display information about the most signif- which were nominated this year for the prestigious icant urban planning projects on its large screen. Key MIPIM Awards; Mikhail Vyshegorodtsev, the head of projects were shown on the interactive screen which the Directorate for the Protection of Rights of Entre- are especially relevant for Moscow: the arena for the preneurs, and other officials. upcoming World Cup, including the flagship stadium www.reedmidemphotos.com

6 CAPITAL IDEAS April-June 2018 Moscow at MIPIM-2018

Luzhniki, which has already managed to become one of the best soccer stadiums of 2017 according to international experts; sections on transport projects; and sections on industrial zone renovations.

The most interesting part of Moscow’s stand was the development of public spaces, to which a lot of attention is being paid in Moscow. Zaryadye park was the flagship program for this development, which opened in September 2017 and has become a significant location on the map of Moscow, seeing an enormous quantity of visitors.

One could also learn about the Dream Island Park at the Moscow stand, which is currently being built and should become the largest enclosed theme park in the world.

As part of its business program, the Moscow City Gov- ernment’s stand presented “Megacity of the Future. New Space for Living” for the Moscow Urban Forum which will take place July 17-22 2018 at Zaryadye park.

The capital was awarded six premiums by the international ratings journal fDi Magazine. Minister Sergey Cheremin, the head of the city’s delegation and Head of the Moscow Department of External Economic and International Relations, accepted these prestigious awards on behalf of the Moscow City government,

fDi Magazine, a part of Financial Times Group, comprises ratings of the world’s cities and regions from the point of view of their perspective development over the next two years. Moscow, in particular, was among the best European cities in nominations for the best economic potential, best Eastern European city, most well-suited for business, most attractive city for investment, as well as the most comfortable for living.

Sergei Cheremin thanked the experts for such a high rating of the city government’s work and assured

April-June 2018 CAPITAL IDEAS 7 MOSCOW OFFICIAL www.reedmidemphotos.com

them that Moscow will not let new opportunities for need for foreign investors. “According to Rosstat, growth associated with the 2018 World Cup go by. over three quarters in 2017 the investment volume in fixed capital in Moscow consisted of 1.1 trillion rubles, The topic of soccer was also the basis for the invest- which in real terms is 20% more than for those same ment conference “Open Moscow – follow the cham- months in 2016. Over seven years investment volume pions!” Participants discussed the city’s preparedness in fixed capital grew by 70% comparable prices to for the World Cup and also how participation in large 2010,” he reported. international sports events is affecting the metropolis’ development in general. The conference’s main “Programs for renovating industrial areas and residen- speakers were Sergey Cheremin, Moscow’s main tial spaces – all of these programs affect the quality architect Sergei Kuznetsov, the head of transac- of infrastructure, which can not go unnoticed by the tional business in the EMEA region for Cushman & business community and their ratings,” – the minis- Wakefield UK COO Stephen Screene, the architect ter highlighted. Erick van Egeraat, managing partner for ADG Group Grigory Pechersky, journalist Nobel Arustamyan and In 2018 over 24 thousand participants from over 100 Associate General Director of CJSC Renault Russia countries took part in MIPIM and representatives of Tatyana Redko. over 3.1 thousand companies arrived to the Cannes. More than 100 conferences were conducted over Minister Cheremin pointed out the positive dynam- the course of the forum, where around 360 speak- ic in the city’s investment climate and the growing ers presented. ■ www.reedmidemphotos.com

8 CAPITAL IDEAS April-June 2018 Trade between Moscow and France grows every year Sergei Sobyanin held a meeting with representatives of the Economic Council of the Franco-Russian Chamber of Commerce and Industry, where they discussed investment projects proposed by representatives of the business community in a round-table format.

e are working actively with French “Currently it is not more expensive to build a busi- businesses. We signed a new agree- ness in Moscow than it is in any advanced region ment with Renault on providing of our country. And considering that Moscow has incentives in exchange for invest- the best personnel and an enormous profit mar- ment,“W production expansion and the creation of new, ket, developing a business is in fact becoming ever modern and unique car models, including driverless more advantageous. This is Moscow’s new indus- cars,” – the Mayor of Moscow said. trial policy, directed at creating businesses with a high added value and high-paying jobs. Over the According to Sergei Sobyanin, cooperation in the phar- last two years, in 2016 and 2017, we see that trade maceuticals sphere is also actively being developed. with France is being restored. In 2016 it increased to 40 percent, and last year, according to preliminary President of the Franco-Russian Chamber of Com- results, growth consisted of around 10 percent.” – merce and Industry Emmanuel Quidet noted the sim- noted Sergei Sobyanin. ilarities in the Russian and French markets. Moscow’s mayor believes that the capital city has be- “It is very nice for us to be here as France is a very sig- come a region in which the economy is extraordinarily nificant investor in the Russian market. In 2014-2016, diversified, “There is no oil and gas here, but there are during sanctions, France was in first place in the Rus- hundreds of thousands of small and medium busi- sian market,” – he said. nesses which secure the overall stability of our economy and quickly adapt to any problematic situations. Moscow has taken a series of steps for supporting Currently, in both investment volume and in other businesses, such as discounts for investors and devel- indicators connected with trade, production and ex- oping businesses, subsidizing utility system connec- port, – according to all indicators Moscow’s economy tions and much more. is demonstrating positive tendencies,” – he said. ■

April-June 2018 CAPITAL IDEAS 9 COVER STORY Moscow’s State Programs

A multitude of State Programs in various spheres and professions are being implemented in Moscow, starting from the creation of a comfortable city environment and increase in quality of life for Moscow’s residents, up to securing stable economic growth and inflow of investment into the city. We have selected fundamental and large-scale state programs for Moscow which are actively influencing the development and betterment of the business and investment climate in the city of Moscow. The full list of Moscow’s State Programs is available at http://budget.mos.ru/365. Development of the transport system The goals of the program: Providing comfortable conditions for the vital day-to-day activities of the population of Moscow by developing a stable-functioning, safe, attractive and comfortable system of transport for all members of the population as part of the Moscow transport hub. Coordinator: Deputy Mayor of Moscow in the Moscow City Government, head of the Moscow City Transport Agency M.S. Liksutov Responsible executors: ■ Moscow City Transport Agency ■ Moscow Department of Construction

10 CAPITAL IDEAS April-June 2018 Moscow’s State Programs

The desired results of this program should eventually be: ■ Increasing the volume of transport by 40% ■ Opening Moscow Railway’s Little Ring along the Moscow river for transport. ■ Decreasing the occupancy of public transport’s rolling stock by 15%. ■ Reducing the average movement interval on the above-ground municipal transport during rush hour from 8 to 5 minutes. ■ Reducing average time expenditure per trip from residential areas to working areas by 15-20%. ■ Increasing the speed of travel by public transport from 11 to 18 kilometers an hour, including bus lines to 30 км/ч. ■ Controlling pollution emission levels from vehicular transport ■ Reducing the share of the population currently not being served by the subway system from 22% to 13%. ■ Increasing the comfort of every trip by using new models of vehicles, capable of transporting handicapped individuals. ■ Introducing roughly 1.5 million parking slots into use. ■ Decreasing the time for switching stations at large transport hubs from 15 to 4-9 minutes. ■ Elimination of unsanctioned departure points for buses. ■ Reduction of the arrival time for emergency response crews by 3-4 times by guaranteeing their safety en route. ■ Reducing transit congestion in Moscow by 20-25%. The city of Moscow is a large transport hub for Russia. More than 14 million trips take place on public transport per day and more than 5 billion per year. Currently the city’s transport system includes the following forms of travel: the Moscow subway, the Moscow monorail transport system, rail travel, above-ground passenger transport and personal means of transportation which serve roughly 6.89 billion passengers a year.

April-June 2018 CAPITAL IDEAS 11 COVER STORY

In 2017 independent international and Russian experts bike rental – up to 2.3 million (two times as much noticed an increase in the quality of the transport sit- since 2015). uation in Moscow From 2011 60 new stations in the subway and MCR Moscow occupies the first place: have been built. From May 1 2017 the MCR was able to transport 120 thousand more passengers owing in the world per functioning of municipal trans- to the reduction in intervals between trains. 100% of port (Sustainable Transport Award, USA); trains on the metro and MCR are equipped with Wi- Fi, which is used 2.2 million times daily. in the world for level of organization of paid parking spaces (TomTom, Netherlands); The Metro Security Center has been working since February 2017, overall during nine months, its employ- in the world for the integrated development of ees have conducted 51 million inspections. Moreover, the transport system, including the Moscow Cen- during this time 13 new routes of above-ground city tral Ring (MCR) (Union Internationale des Trans- transport were constructed (in total 366 since 2010), ports Publics, Canada); and 110 new stops were added (662 since 2010), 16 kilometers of bus lanes were added (265 kilometers in the Russian Federation for quality of transport since 2010). 85% buses were equipped with access to service (Lomonosov Moscow State University). Wifi, accessed daily half a million times.

From 2010 1 million vehicles have been added to the Since 2010 8 thousand parking spaces were orga- Moscow transport hub (a growth of 17%). In total the nized for drivers along the city’s network of roads. city counts roughly 7 million vehicles, at the same Aside from this, new park-and-ride lots will appear time the roads are used by 3.2 to 3.6 million personal along MCR stations. As of now, there are 27 parking transport vehicles. More over, 19 million trips are con- lots near MCR stations, which are able to hold overall ducted daily by all forms of city transport. With every around 5.2 thousand cars. year more and more people choose public transports for travelling around the city. Currently 70% of the Moscow has the highest safety level for road traffic in city’s residents and guests travel by subway, bus, trol- all of Russia. Owing to measures taken by Moscow’s leybus, and tramway during rush hour. In 2010 this government on increasing safety for road transport, number was 63%. over thousand lives have been saved since 2010. As research has shown, regulation of road traffic on At the same time, considering the constant growth in well-maintained streets decreases the intensity and the number of cars, road traffic dropped by 23% -ac quantity of traffic congestion. The average speed for cording to the company TomTom. According to the road traffic along these streets decreased by 7%, and Moscow Center for Traffic Management and Yan- the number of pedestrians by 3-6 times. dex, over the last six years the average speed of road transport in Moscow grew by 13%. Beautification betters conditions for all who use the roads. In particular: From 2010-2017, the number of trips of economically active citizens (those who fully pay for their trip) on for bicyclists 20 kilometers of bike roads and public transport rose by 1.5 times (by almost 1 billion lanes were organized, 100 bicycle parking and 145 trips) – from 1.928 billion to 2.879 billion, including: special traffic lights;

subway and MCR – from 1.042 billion to 1.310 bil- for car fans overmileage and bottlenecks were lion (+26%); eliminated, the number of traffic accidents was reduced (by 37%), and increased roadwidth (by 25%); Above-ground public transport (Mosgortrans, commercial carriers, Mostransavto) – from 586 for passengers of public transport 400 new- million to 1 billion (+69%); generation stops with Wi-Fi were established, an additional 7 kilometers of bus lanes were orga- suburban commuter trains – from 288 million to nized, bus speed was increased (by 39%) and us- 368 million (+28%); age of buses over their lifetime for rolling stock lines has been reduced (by 40%); taxi – from 12.3 million to 195 million (16 times); for pedestrians comfortable sidewalks were cre- carsharing – up to 3.6 million (four times as much ated, 143 navigation points were added, and 500 since 2015); new crosswalks were created.

12 CAPITAL IDEAS April-June 2018 By ecological standards the capital’s rolling stock fleet is among the top five best among world metropolis’. From 2011 the share of pollutants was reduced by 25%. In 2017 the decision to no longer use buses with internal combustion diesel engines effective 2021 was passed. The city will acquire only electric buses. This will allow for a significant reduction in the level of pollutants, as well as for an increase in the comfort for travelling on above-ground transport by reducing the noise level and vibrations in the bus’s interior. Moreover, the use of electric buses will allow for a significant reduction in expenses and will significantly simplify the process for regulating technical maintenance.

The advantages of electric buses: they are 100% ecological, quiet, there are new services for passengers (USB-chargers), and they are 100% handicapped- friendly. In 2018-2020 the purchase of up to 300 electric buses on a life-cycle contract basis has been planned, anticipating service and repair over the course of 15 years.

In October of 2016 the Magistral project was released, in which 19 main, 116 regional, 8 social, and 11 night routes for city transport were organized or altered. There are more than 600 active buses on Magistral routes with an average interval of 2-5 minutes (along bus lanes). The waiting time for a bus in the center of the city was reduced by 3 times. In October of 2017 500 thousand trips per day were conducted along these routes.

At the start of autumn 2017 a modern and beau- tified transport hub was made on Slavyanskaya square, close to the Kitai-gorod metro station, from which one can reach practically any point in the center of the city by public transport in less than 20 minutes.

Trams have made a comeback to Tverskaya Zastava square. Since their return to service, they have transported more than 700 thousand passengers (more than 25 thousand daily). This allows for the reduction of Belorusskaya metro station’s passenger load.

Moscow has introduced the most modern transport payment system. The Troika card is the most popular transport card in Europe – in 2017 the number of Troika cards distributed reached 15.6 million (more than 4.9 million were distributed over nine months). Currently, more than 85% of trips are paid for via the Troika card on public transit in Moscow.

Moscow bike rentals are № 1 in Europe by quantity of trips per individual bicycle (six trips). Currently the city-wide bike-rental system in-

April-June 2018 CAPITAL IDEAS 13 COVER STORY

cluded mores than 380 stations with 3620 bicy- (with 3.6 million trips over 9 months in 2017) The cles (in 2017 50 new stations with 500 bicycles city has 3635 car-sharing vehicles (2.2 thousand appeared). In the 2017 season the number of cars were added over 9 months in 2017). trips increased by 37% in comparison with 2016, reaching 2.3 million trips. Moscow’s taxi system is the youngest amongst metropolises of (the average car age is 2.8 years). Moscow carsharing is also № 1 in Europe by num- There are 47 thousand taxi cars operating in ber of trips per individual car (6-8 trips), as well as Moscow, 80% of which are painted yellow. On by the development dynamic. Today the Moscow average, one taxi car fulfills 7-8 orders. Over the carsharing system has 300 thousand individual past few years arrival time has dropped by four users registered, with 4.7 million trips completed times – from 30 minutes to 5-7.

"Work on Moscow’s transport problems is the city government’s key task, and in many ways the development of the city and its agglomerations overall depend on how it is solved. The efforts of not just the Department of Transport, but the majority of major departments and offices of Moscow are being directed towards solving these tasks.

In particular, the majority of the Address Investment Program’s resources were used to address transport problems – the construction of roadways, the subway, and transport and transfer hubs. In addition, quite a few resources were directed by the Maksim Liksutov Municipal Economy Complex for the beautification of streets, The Moscow Deputy Mayor, Head of the Department the arrangement of transport and transfer nodes, and the imple- of Transport and Road mentation of local events. The majority of work is undertaken by Infrastructure Development the City Property Department. Considerable resources were also directed towards solving precisely these problems.

Strategic events implemented by the Moscow government secure in large part free movement along the city’s streets. It is becoming easier for car owners to travel more freely, find parking spaces, and orient themselves in the city. Municipal transport is frequently overcrowded during rush hour. This happens across the entire world, but we are getting to the point of bringing Moscow’s transport system in balance. Above-ground gransport in Moscow should be as effective as the subway.

One of the most important tasks which we are prioritizing is the the development of comfortable and safe pedestrian and bicycle infrastructure. It is very important that the formation of civilized parking space also be directed towards resolving this task, as unstructured parking hinders the free movement of pedestrians, vehicles, and the municipal transit system’s drivers".

14 CAPITAL IDEAS April-June 2018 Ride volume CITY’S GRAPH 2016 2 378,3 0,653 billion people million people (including MCR) Annual volume of railway rides The annual volume of metro (city and suburb lines) rides

31,32 329 567 1,6 million trips 2,4 billion passengers million places The quantity of identified Annual volume of rides on Annual volume of rides on above-ground instances of ticketless rides publicly-rented bicycles passenger transportation СTotal capacity of public by passengers transport

Speed in the city 2016 56,8 mins 6,2 mins The average time per trip The average movement interval for on public transport during above-ground transport during morning the morning rush hour from and evening rush hours (aside from taxi) residential areas near MKAD to the city center

26 km/h 22,3 km/h The average time per trip on private The average speed of transportation The average speed for public transport 57 transportation during the morning rush hour from on outbound Magistral routes during during rush hour mins residential areas near MKAD to the city center morning and evening rush hours

Subway construction 2016 63 kilometers (including the MCR) The length of the new subway lines 2,9 % The share of built subway lines (percent of overall subway line length) 395,32 kilometers (including the MCR) Length of existing lines at the beginning of the year 36 (including MCR) The quantity of built stations

April-June 2018 CAPITAL IDEAS 15 COVER STORY City planning policy

The program’s goals: The formation of an auspicious living environment.

The coordinator: Department of Urban Development Policy of Moscow. Control over the program’s implementation is given to the Deputy Mayor of Moscow in the Government of Moscow for Urban Development and Construction, Marat Khusnullin.

Responsible executors: ■ Committee on Architecture and Urban Planning of Moscow ■ Department of Urban Development Policy of Moscow ■ Department of Economic Policy and Development of Moscow

Underlying tasks of the program:

■ Defining and confirming priorities for municipal development of the city as the capital of the Russian Federation, center of the Moscow region, and as and international financial, scientific, educational, cultural and athletic center. ■ Preservation of the historical and architectural face of the center of the city, and the complex development and construction of Moscow’s municipal regions. ■ Formation of auspicious conditions for investment in Moscow ■ Perfecting the town-planning activities in the city of Moscow (territorial planning, urban zoning, spatial planning, architectural and construction design, construction).

16 CAPITAL IDEAS April-June 2018 As part of the implementation of the “Urban Develop- cilities have been planned. This allows for the compre- ment Policy” state program for Moscow the comprehen- hensive ensurement of social infrastructure for newly- sive ensurement of housing for the city’s population, jobs, developed regions and the resolution of the problem of and social and transport infrastructure are being carried prior-accumulated capacity deficit.. out. Positive conditions for real-estate investment are also being developed. The municipal transport infrastructure development remains a main priority for Moscow’s urban develop- A four-year targeted investment program is developed ment. annually, which is the driver for the city’s development and construction of real estate across the entire territo- Over 5 years more than 400 kilometers of roads ry of Moscow. Moscow currently occupies the 7th place have been built, which comprises 10% of the overall among the largest cities in the world according to the existing city road network. (2.5 times more than in "Volume of budget investments per capita” indicator. 2006-2010), 31.01 kilometers of subway lines (10% of the overall length of Moscow’s subway lines), 18 new Yearly, this has allowed for the attraction of extrabud- stations were introduced, 4 electric engine houses, getary investments in the volume of 86% of the overall 118 artificial structures, 140 crosswalks. Another 78.45 volume of total construction. kilometers of subway lines, 36 new stations, 4 electric engine houses, 87 artificial structures, and 48 cross- In total, more than 40 million square meters of real es- walks are in design and construction. tate have been built in Moscow over 5 years, including 15 million square meters of living space. The real estate The works that have been carried out provide the pop- fund in Moscow was renewed by 10%. Currently Mos- ulation with convenient access to all points in the city, cow occupies the 5th place amongst the largest cities and raise the investment appeal of the area. in the world for commissioning real estate per capita. Over 2012-2015 road congestion in the city dropped by Over 5 years 380 social facilities were built in Moscow, 16%, and as a result Moscow has ceased to be a leader and in 2015-2018 the construction of another 282 fa- in traffic jams amongst world metropolises.

“2017 was a landmark year for all of the Moscow development complex. Two large-scale and unique projects were implemented – the large sports arena Luzhniki and Zaryadye park. Projects crucial to the city were implemented which will become a work vector for tens of thousands of construction workers and which will affect millions of Muscovites. These projects were the renovation of dilapidated housing stock and the creation of Moscow Central Diameters. At the same time, grandiose projects for the further development of the subway and road networks that were started earlier are continuing to be implemented.

If you compare Moscow with other metropolises, Moscow continues to occupy the top places in world-wide ratings in speed and volume of subway construction, surpassing Beijing, Mexico City and Istanbul. Annually, our underground transport caries 2.5 billion Marat Khusnullin people, at the same that its congestion is lower than in other cities. I would like to remind The Moscow Deputy Mayor for Urban Development and you that in 2011 we set about implementing subway construction unprecedented in scale, Construction by 2020 the capital’s metropolitan network will grow by almost 1.5 times, and the subway stations will be within walking distance of 95% of the city’s residents. Over the years since the start of the program 114.4 kilometers of lines in the subway and MCR, which we consider a full-functioning above-ground subway, were built and put into operation. Overall over 7 years we have created more than 300 alternative routes along the city for our people.

Moscow has become a city not for cars, but for people. Dozens of new crosswalks, a multitude of public spaces, and more than 50 public parks have appeared. Enormous work has been conducted on beautification, organizing bike lanes, and so forth. The city has become significantly more attractive for tourists.”

April-June 2018 CAPITAL IDEAS 17 COVER STORY Development of the tourism and recreation industry

Goals of the program: ■ The creation of a highly-comfortable infrastructure for recreation and tourism in Moscow. ■ The consistent development of parks, increasing their social, ecological, and recreational significance, the creation of maximally auspicious conditions for the self-development of this generation of youths, and provision of a full spectrum of services in recreational activities and in the tourism sphere to the city’s population. ■ The development of infrastructure at museum estates’ and museum residences’ grounds in order to better the quality and quantity of services available for the city’s population: public eating, expanding souvenir and book production, print publications, and the development of active and healthy family recreation at museum and park property. ■ Bettering category I and II green spaces in Moscow. ■ Adapting parks, park areas, squares and boulevards for rest and recreation for Moscow’s population. ■ Increasing investor interest in the development of the city environment. ■ Adapting bodies of water for recreational purposes for Moscow’s population. ■ Creating conditions for planning modern and comfortable recreation for residents and guests of Moscow. ■ Aligning streets and public city spaces into the correct form for the modern needs and tendencies of the development of the modern tourist industry. Increasing the quality of the city environment.

18 CAPITAL IDEAS April-June 2018 ■ Creating auspicious conditions for visitors from the Russian Federation and abroad for the purpose of tourism. Increasing the competitiveness of Moscow’s tourist and hospitality complex ■ Creating the necessary infrastructure for recreation on Moscow’s green areas. ■ Supporting for the maintenance of nature reserves as tourist and recreational areas. ■ Developingof the hotel industry and increase in places of temporary stay in the city of Moscow, including monitoring the development of the tourist market in Moscow and the effectiveness of its regulation, as well as the implementation of measures for the classification of specific accommodation facilities

Coordinator: Moscow Capital Overhaul Department

Responsible executors: ■ Department of Culture of Moscow ■ Moscow Capital Overhaul Department ■ Department of Sport and Tourism of Moscow

Moscow ranks highly in international tourism ratings. In Over 6 years the number of tourists who visited the particular, the city occupied the first place amongst Rus- capital grew by 40% – from 12.8 million in 2010 to 17.5 sian cities in the top-10 most popular New Year’s holidays million in 2016. for the 2016-2017 New Year according to information from mondo.ru and roomguru.ru. In addition, the capital This considerable growth in tourist potential was was included in the top-10 ratings of the most attrac- secured by beautification measures. Among them tive cities by the tour guide “Best in Travel – 2017” from were the development of transport infrastructure, Lonely Planet, and was also included in the top-10 list of increase in safety, the construction of hotels, and most accessible (inexpensive) European cities for tourists the creation of the public recreation industry and in 2016 according to the British company Post Office. new event calendar.

April-June 2018 CAPITAL IDEAS 19 COVER STORY

The most significant event in the development of transport infrastructure in 2016 was the opening of the Moscow Central Ring. 2017‘s opening of Zarya- dye park and new subway stations was the catalyz- ing force for increasing the tourist appeal of the city. Walking zones, quality parks, bike lanes, bike rental locations, multilingual signs, parking spaces for tourist buses, free Wi-Fi stations, and much more has appeared in the city.

Moscow has 232 kilometers of convenient and modern walking spaces, and more than 200 kilometers of bike lanes, 1474 rinks, more than 300 bike rentals locations, and 370 kilometers of ski runs.

Thanks to the “My Street” program, in only 2 months the number of available pedestrian excursions in Mos- cow increased by almost two times. The city offers its guests 1.5 thousand various routes, a third of which are walking routes.

Active construction and reconstruction of hotels has allowed for elimination of the deficit in available and quality places to stay. Over 6 years the number of rooms grew by 37% and has already exceeded 58 thousand rooms.

Additional opportunities for developing practically all forms of tourism have appeared in Moscow:

cultural and heritage tourism – the active restoration of antique monuments;

event tourism – the creation of a city holiday and festival calendar, which included more than 1500 events (“Journey to Christmas,” fireworks festival and others);

business tourism – increase in the number of congress and exhibition events;

shopping tourism – the opening of new large- scale malls;

children’s tourism – the opening of the “city of professions” (“Masterslavl,” “Kidburg,” “Kidzdani- ya”) seaquarium “Moskvarium” at VDNKh, artificial ice rinks, and other facilities;

pilgrimage – the regular visitation of Orthodox shrines in Moscow:

educational – the expansion of a spectrum of programs offered by the city’s higher institutions of learning and study centers;

medical – the expansion of the city clinics’ and medical centers’ opportunities.

20 CAPITAL IDEAS April-June 2018 CITY’S GRAPH

Tourism

17,4 million arrivals Number of international arrivals 59,2 billion rubles Income from services provided by hotels and similar short-stay businesses 58,15 thousand The number of rooms in hotels and similar short-stay businesses

As per tradition, the most popular form of tourism re- During the “Journey to Christmas” festival additional mains family tourism – visiting relatives and friends. income from the city’s hotels, commercial businesses, and restaurants comprised 56 billion rubles. Residents of Russia’s regions comprise 74% of the general number of tourists who arrive to Moscow. As a result of the systemic work on advancing the Foreign tourists comprise 26%. Chief among these “Journey to Christmas” festival and travel-package tourists’ countries of origin are China, Germany, Tur- tours, Moscow has occupied the first place in the rat- key, Israel, France, Italy, the US, Great Britain, and ing of top-10 Russian cities for hotel reservations on Spain. New Year’s night 2 years in a row.

Russian tourists come to Moscow roughly in equal Moscow has been proving its appeal for tourists dur- share by plane, railroad, and car. For foreigners it is a ing New Year’s holidays for a few years. If you consid- given that air travel prevails (88 %). er the 2010/2011 season as 100%, then the 2016/2017 season net increase in tourist flow was 155.4%, mean- Around a third of guests arrive to Moscow in order ing it grew by more than 2 and a half times. Millions to visit their friends or relatives. Another third are in- of people also visited an event unique for both Rus- terested in event and cultural tourism. 28% of tourists sia and the world – the “Around the World” festival, arrive for business, and 6 % for other reasons (medical, whose installations for the second year in a row have pilgrimage, amongst others). entered the Guinness Book of World Records.

Event tourism is rapidly developing. For example, In 2016 hotel classification work was completed. 870 the largest festival from the “Moscow seasons” cycle of them received categories, including: “Journey to Christmas” from December 16 2016 to Jan- uary 16 2017 attracted more than 4.8 million guests, ▪ five stars – 27 hotels; including: ▪ four stars – 74 hotels; ▪ 2 million residents of the larger Moscow region and nearby regions arrived to Moscow for one ▪ three stars – 184 hotels; day without staying the night; ▪ two stars— 98 hotels; ▪ 2.2 million tourists from other Russian regions arrived for two days, with an overnight stay; ▪ one star – 40 hotels;

▪ 600 thousand tourists were from abroad. ▪ zero stars – 447 hotels and hostels.

April-June 2018 CAPITAL IDEAS 21 COVER STORY

Currently there are 211 functioning hotels in Mos- a day. Guests who arrive to the capital for business cow with over 50 rooms. There are 413 hotels and purposes spend 5.9-6.7 thousand rubles, while those mini-hotels with less than 50 rooms, 242 hostels and tourists who arrive for culture tourism spend 5.4-5.8 4 boarding houses. The overall number of rooms is thousand rubles. The expenses for shopping tourists 58.1 thousand. The average congestion in the capital on average comprises roughly 9.5-10 thousand rubles city’s hotels in 2016 was 67%. a day.

In 2016 almost half of all of the city’s guests stayed in If in 2010 the share of tourist consumption in the gross hotels. The remainder stayed with friends, family, or regional product of Moscow comprised roughly 1%, acquaintances. The number of hotel and hostel ten- then in 2016 it increased by four times to 4% (457 bil- ants grew by 2 million people (or 25%) over two years, lion rubles). This allows for tourism to be considered and in 2016 reached 9.8 million people. The overall as one of the leading branches of Moscow’s economy. number of overnight stays exceeded 20 million. Further development of this industry will allow for an Tourism revenue plays an ever-growing obvious role increase in tourism revenue by 2 times by 2020 – up in the city’s economy. Expenses for event tourists in to 1 trillion rubles, which will comprise 6-8% of Mos- Moscow comprise on average 6.3-6.7 thousand rubles cow’s gross regional product.

“Today, Moscow’s hospitality industry is living its prime. Of course, in the future everything could and should be better, but right now the level of tourist infrastructure in Moscow corresponds to the most discerning taste of a sophisticated tourist, but in many ways exceeds the services which recognized world tourist capitals offer. In comparison with 2010 the number of tourists arriving to Moscow rose by 40%. In 2016 the volume of tourist arrivals comprised 17.5 million people. In 2016 domestic tourism prevailed, the share of which comprised 75%, while the share of foreign tourism in 2016 was 25%. The main countries per number of tourist arrivals in 2016 were China, Germany, Turkey, Is- rael, France, Italy, the US, Great Britain, Korea, and Japan.

Our task is to annually increase the number of tourists, both domestic and foreign. For Nikolay Gulyaev this we are conducting an incredible amount of all types of large events in the city, laying Head of the Moscow City Department of Sports and tourist routes and regulating hotel room standards.” Tourism

22 CAPITAL IDEAS April-June 2018 CITY’S GRAPH

Expenses from Moscow city budget in section by key priorities for 2012-2020, in billions of rubles

A comfortable city environment Healthy City

Residences 823 1 858 The capital’s health service

304 Development of the communal-engineering Moscow’s sports 427 infrastructure and energy-saving 2 162

Moscow’s culture 303

Development of the recreational 392 industry and tourism* Safe city 159 Informational city (subprogram “Development of 73 Educational city information technology and communications industry and the formation of a generally accessible information and communication environment in the city of Moscow”) 2 057 The capital’s education 39 Urban-planning policy (subprogram “Development 2 057 and reorganization of territory”) in total 13 136 15 Economic development and investment appeal (subprogram Social welfare city “Securing the efficiency and quality of consumer services for the population”)

2 830 Social services for residents of Moscow 2 231

Mobile city 2 830

Development of the city transport system 3 263

Moscow’s new economy 3 263 178 Open Moscow Economic development and investment appeal (apart from the subprogram Informational city (apart from “Securing the efficiency and quality of the subprogram “Development of consumer services for the population”) information technology and communications 271 industry and the formation of a generally accessible information and communication 69 environment in the city of Moscow”) Urban-planning policy (apart from Open Government 75 the subprogram “Development and reorganization of territory”) 346 247

*As of 2017 called “Developing the city’s environment” Information from the Department of Finances for the city of Moscow

April-June 2018 CAPITAL IDEAS 23 COVER STORY Moscow’s economic development and investment appeal

Objectives of the program: Ensuring sustainable economic growth and investment in the city of Moscow

Coordinator: Department of Economic Policy and Development of Moscow

Responsible executors: ■ Moscow City Property Department ■ Department of Science, Industrial Policy and Entrepreneurship of the City of Moscow ■ Department of Trade and Services of Moscow ■ Department of Economic Policy and Development of Moscow

Moscow is one of the largest cities in Europe, one of the largest consumer markets of both Russia and Eastern Europe, acenter for investment activity and an agglomeration of about 20 million people. In 2017 Moscow entered the top-3 regions in Russia for quality of investment climate and occupied the first place in the rating for development of public-private partnerships. Growth in investment volume in fixed capital for 2016 amounted to 55.6% in comparable prices to 2010, and by the results for 2017’s first half increased in comparison to the same period in 2016 by 19.3% and comprised 658.2 billion rubles. Moscow’s share comprises around 11.5% of general investment volume in fixed capital in Russia. Attracting private investment has been stimulated by measures that support projects by as- signing special statuses, providing tax discounts, subsidies and opportunities for concluding off-site contracts with the city of Moscow’s government..

24 CAPITAL IDEAS April-June 2018 The city is actively developing. A high level of budget security alongside a low level of state debt (around 1% of GRP) allows for the realization of large-scale state investments in the development of transport and social infrastructure, the development of the education and health systems. The volume of the city’s targeted investment program in 2017- 2019 exceeded 1.4 trillion rubles. Expenses from Moscow’s budget in 2016 comprised more than 1.7 trillion rubles or more than 26 billion dollars. By this standard, Moscow is one of the largest metropolises of the world. Moscow’s budget exceeds the budget for Las Angeles (US) by almost 3 times, and that of Paris (France) by two times, and is equal to that of London (Great Britain). Investment expenses from Moscow’s budget in 2016 reached almost 420 billion rubles, or 6.3 billion dollars.

In order to reach the goals set within the frame- tion of already-existing manufacturers at enter- work of the State Program, the following tasks are prises of various organizational or juridical forms being solved: at the territory of the city of Moscow, at which are location innovative territorial clusters. ▪ The creation of conditions for the development of high-tech companies, increasing the cost of ▪ Resolution of the problem of identification of intellectual labor and stimulating demand for territorial reserves in the city’s industrial zones highly-qualified specialists in fields which are includes an inventory of production areas and in- priorities for the city, provides for the forma- dustrial zones. The need for renovating industrial tion and development of the municipal system zones is conditioned by the inefficiency of their of support for high-technology companies with use in conditions of dense development, which potential for rapid growth, the creation of a sys- hinders the further development of industry on tem securing the search, evaluation, and active the territory of Moscow. introduction of innovative solutions and technologies in the city’s economy, the stimulating the ▪ Analysis of the existing situation, formation of creation and development of activity of innova- borders for integrated development, and also the tive territorial clusters in perspective technology coordination in the design and implementation of sectors, including through the development and documentation on planning of production, scien- implementation of complex investment proj- tific and warehouse areas allows for the creation ects for the development of innovative territo- of auspicious conditions for the development of rial clusts is the enumeration of activities justi- Moscow’s scientific and industrial potential and fied by their economic feasibility of volume and modern industrial clusters. implementation deadlines, including activities for implementation of investment, as well as for ▪ For medium and small businesses, industrial projects for the creation of new, or moderniza- enterprises, scientific, innovative, and engi-

April-June 2018 CAPITAL IDEAS 25 COVER STORY

neering organizations connected to priority professions, easier access to financial resources assumes the provision of subsidies from the city of Moscow’s budget. above-mentioned organizations, assistance in the development of microfinance activities, lending to small and medium-sized businesses, and support of priority industrial projects being implemented in the city of Moscow.

▪ Professional navigation for youth and organization of additional professional education for employees of small and medium businesses, industrial enterprises and innovative organizations is being conducted due to the organization of training of employees and small and medium- class businesses, industrial enterprises, and in- novatives companies, as well as citizens who desire to work in manufacturing and innovative professions, employees of support structures for small and medium businesses, the realization of the Presidential program for management training for organizations of the Russian Federation’s national economy.

▪ The implementation of specialized projects designed to develop entrepreneurial, industrial, scientific and innovative spheres includes the popularization of manufacturing and innovation infrastructure as a place for intellectual la- bour, the organization of professional competitions and olympiads, the granting of prizes and grants to young scientists, the implementation of a unified strategy for interaction with the media and the Internet community, the development of children's and youth's scientific and technical creativity, including on the basis of technology parks.

▪ The development of congress and exhibition activities in the city of Moscow includes the attraction of major international events, congresses and congresses of international associations, the formation of the image of the city of Moscow as one of the business centers of Europe.

▪ Improvement of state regulation of entrepreneurial, industrial and innovative activities presuppos- es the improvement of legislation to increase the investment attractiveness of Moscow's industrial complex, reduce administrative and legal barriers to the operation of high-tech and innovative companies, optimize the number of procedures and shorten the terms associated with opening a business and conducting business.

Implementation of the State Program in 2018 will allow for the following results to be achieved:

26 CAPITAL IDEAS April-June 2018 ▪ increase the number of specialized territories (in- and conducted by the Department of Science, In- dustrial parks, science parks, technopoles, territo- dustrial Policy and Entrepreneurship of the City of ries of advanced industrial development) created Moscow from 7.5 thousand people in 2012 to 16,8 in the city of Moscow from 3 in 2012 to 16 in 2018; thousand people in 2018;

▪ increase the volume of investment in projects ▪ to raise the number of the target audience by implemented at specialized territories (cumula- means of conducting professional events directed tively) to 25.7 billion rubles; ; at popularizing small and medium business, science, innovation and working-class professions, ▪ increase the level of satisfaction among the man- and through mass media from 6 million people in ufacturing community with conditions for start- 2012 to 7.2 million in 2018; ing a business to 67%; ▪ to increase the number of significant congress ▪ increase the investment volume of small and me- and exhibition events held in Moscow from 102 in dium businesses, innovative professions and in- 2012 to 140 in 2018. dustrial organizations in projects co-financed by the Department of Science, Industrial Policy and The implementation of these measures and achieve- Entrepreneurship of the City of Moscow (cumula- ment of the State Program’s final results will eventu- tively) from 14.8 billion rubles in 2012 to 31.1 billion ally increase the speed of investment growth in fixed rubles in 2018; capital from all financial sources to 178.2% in 2018, and also to increase the average number of trade ▪ increase the quantity of small and medium busi- participants in property sales located in the con- nesses, participants in innovative professions and fines of the city of Moscow from 2 units in 2010 to industrial enterprises receiving organizational- 5.2 units in 2018 and the volume of procurement of methodical or informational-consulting support goods, works, services using competitive methods to from 42.7 thousand units in 2012 to 57.5 thousand identify suppliers, contractors, and agents from 66% units per year in 2018; in 2010 to 90% in 2018. ■

▪ increase the number of individuals having been From the Moscow mayor’s official site mos.ru and trained through educational programs organized Moscow’s open budget site budget.mos.ru

“Moscow is an economic driver, a locomotive of Russia in many ways. The Federal budget receives 1 trillion rubles from Moscow in taxes. The capital produces 21% of Russia’s GDP. Every tenth retiree in the country receives their pension from money deducted from Muscovites. Every tenth citizen of the country receives medical assistance from deductions from Muscovites.

instead of producing natural resources, our economy processes them, and we are creating a new economy. Moscow produces 21% of the gross domestic product, from which only 15% goes to all other Sergei Sobyanin regions. First, that means we produce more than we keep. Second, Moscow Mayor all Russian regions combined receive federal budget transfers worth 1.5 trillion roubles. Moscow contributes one trillion roubles in tax revenues to the federal budget. This figure was 600 million roubles not so long ago. Our growing economy allows us to contribute more in taxes. Moscow now accounts for two-thirds of federal budget transfers to all regions.”

April-June 2018 CAPITAL IDEAS 27 SMART MONEY The investor searches for the place that is most advantageous and

City infrastructure and public services development has reliable provided the stimulus for investment growth in Moscow Investment is one of the most important topics in Moscow. Moscow Mayor Sergei Sobyanin himself said “this is our priority.” Not surprisingly, this topic is discussed in practically all economic forums, meetings, and gatherings. The Moscow mayor even brings this topic up on his Twitter account! oscow mayor Sergei Sobyanin declared Every ruble the city has put into in an interview with television channel Rossiya 24 during the Russian Investment its infrastructure gives back three Forum in Sochi at the end of February that rubles of private investment into the investment volume in Moscow has grown economy byM 7 percent over the last seven years. The yearly investment volume in Moscow approached “Investment was in the area of 800 billion rubles, two trillion rubles, Moscow Mayor reported to the ple- and now it is almost two trillion. That is a large leap. nary session of the All-Russian economic assembly. This is the driver of Moscow’s economy, and leaves us confident that we are going down the correct path. “We increased our yearly investment volume in city in- Because of this we are fulfilling our social obligations, frastructure and economy by more than two fold. And filling our budget, and seeing perspectives,” the may- it is precisely these investments that have become the or noted. engine for attracting private investment,” the Moscow mayor said. He highlighted that every ruble invested in The secret of investment growth is that the city itself is Moscow gives back another three rubles into the city’s investing money. “We are investing in the Moscow Cen- economy. tral Ring (MCR), the metro, roads, and engineering infrastructure.” Sergei Sobyanin reminded everyone that seven years ago investment was one trillion rubles less than it is For example, investors began to be interested in the now. “Today we have come close to a yearly investment area around the Moscow Central Ring after its open- volume of two trillion rubles,” he noted. ing. Science parks, new enterprises, and residential construction all have opened in the area. Investment volume in fixed capital in the city has increased in real terms by The Moscow mayor named city beautification as yet another means for attracting investment. “A unique public 70 percent over seven years area has been created for pedestrians in which city activities take place. As a result of this, the number of tourists Moscow mayor Sergei Sobyanin wrote on his Twitter has risen from 14 million people to 21 million. And because account about how the question of investment activity of this difference the investment in beautification, fairs, was discussed at the State Council of the Russian Fed- and so on has paid for itself. eration (pressing issues for the country are always dis-

28 CAPITAL IDEAS April-June 2018 cussed here). According to him, investment approached pear. And so on. In the end, an environment that at- two trillion a year. Sobyanin also reminded the audi- tracts industry to Moscow is formed. ence of two crises. He highlighted that this indicator grew owing to the removal of administrative barriers But, of course, a form of industry completely different and investment into the city’s infrastructure. than that of the Soviet Union’s is being given birth to today. Instead of a few dozen giant factories, thousands At the start of December last year Moscow’s authorities of small and medium-sized firms are being created. approved a bill changing the payment required for the removal of a prohibition on construction or reconstruc- These are not very visible. It is possible that because of tion of buildings and structures in regards to land plots this that there is the impression that Moscow has no used only for scientific, industrial, and manufacturing industry. But believe me, it is there and doing quite well. activities. It is expected that this innovation will attract significant investment in the development of over 50 Of course, large enterprises are also needed. At the Moscow-based businesses. What is more, this will al- same forum in Sochi we signed a contract with Reno low for the creation of new production areas and jobs, that new auto concerns will also draw new component and an increase in output volume and growth in tax manufacturers to Moscow and take in graduates from revenues in Moscow. tech schools and universities. The city also preserves its tax discounts for automobile manufacturers. Why are investors attracted to Moscow? In answer to the question “is the statement that investment in Moscow industry is becoming more advanta- An interview with Moscow mayor Sergei Sobyanin was geous for potential investors true, and what is it about published on the official investmoscow.ru site at the the city that attracts investment?” Sergei Sobyanin said: start of March. Here is an excerpt from this interview: The investor looks for the place that is most advan- The city’s head answered the question “How is Mos- tageous and reliable. Moscow has high-quality areas cow’s industry developing? What changes are you es- in the science parks. We have perhaps the simplest pecially proud of over the past seven years?” procedure for hooking up to the electricity network in the world. There are no problems with getting Most of all I like that today there are many young peo- permission for building or reconstructing buildings in ple involved in businesses. They are incredibly passion- industrial zones. Most of all, the best engineers and ate about their work. This means that everything is go- specialists in Russia which are needed for production ing to be fine with Moscow’s industry. live in Moscow.

It seems to me that the process of self-reproduction In sum, if you consider everything, opening a manu- has been successful. First one business appears at a sci- facturing business in Moscow costs no more than in ence park, then related jobs and partners grow around neighboring regions. Therefore, investors are attracted it. Then, having seen this success, imitators start to ap- to Moscow. ■

April-June 2018 CAPITAL IDEAS 29 FACE TO FACE Matthias Schepp: German business in Russia is not sitting on its hands The decision to create the German-Russian Foreign Trade Chamber (Deutsch-Russische Auslandshandelskammer, AHK) was taken in Spring 2006 at high-level bilateral intergovernmental consultations in Tomsk, a large administrative center in the east of Western Siberia. The opening of this union took place in December of 2007 in Moscow, but AHK’s history started in the last century. It dates back to the establishment in Moscow in 1995 of the German Economic Union in Russia (Verband der deutschen Wirtschaft in der Russischen Föderation) – a novel commercial Russian juridical body which united firms and businessmen from Germany who conducted business in Russia.

r. Schepp, the main goals for foreign trade cham- most 70% of AHK members are German companies, and 22% bers and trade representatives are well-known: are companies with Russian capital. In politically difficult the advancement of economic interests, in this situations, and right now there is exactly such a situation, case Germany's, in Russia, promoting develop- business is the most reliable and stable bridge uniting our ment of bilateral trade relations, understand- two countries – Russia and Germany. Ming economic and legal terms and market conditions in the Russian Federation, providing various types of services for You have been heading АНК for a relatively short period of German business, etc. Which of AHK’s goals in your eyes are time – since Spring 2016. What have you managed to accom- priorities? plish in that time, what can you boast of?

АНК represents the interests of German business in Rus- First of all I would say the fact that the number of the cham- sia and the interests of Russian business in Germany. Al- ber’s members has recently once again started to increase.

30 CAPITAL IDEAS April-June 2018 Currently, the AHK, with its headquarters in Moscow, has a philial in Saint Petersburg and regional agencies in a series of Russian cities, as well as an agency in Berlin. What attracts German businessmen to Russia, and how do they feel in the Russian market? Capital Ideas discussed these questions with AHK’s representative Matthias Schepp.

In 2017, in comparison with the previous year, membership in Aside from this, we have managed to affect certain legal pro- the chamber grew at a fast pace: the growth of new members cesses. On January 1, 2018 a law on perfecting professional edu- increased by 40% in comparison with the previous year’s num- cation came into force which specifies that the costs of training bers. On the other hand, we have managed to reduce the num- can include a variety of expenses – maintenance of premises and ber of companies which have left the chamber by 20%. equipment used for training, labor, the cost of property provided for the learning process, and so on. This way a company’s pro- Moreover, the Committee on Digital Economy was founded fessional development expenses can be deducted from its taxes. with three working groups: for startups, for safety and for elec- We presented this demand over the course of a series of years tronic commerce – the area of the economy which includes all to our Russian partner, the Agency for Strategic Initiatives. This financial and trade transactions conducted by help of computer example demonstrates well that our chamber is giving a helping networks , and also business processes connected with con- hand first of all to Russian companies, insofar as the aforemen- ducting such transactions. tioned law, naturally, covers all companies which work in Russia.

April-June 2018 CAPITAL IDEAS 31 FACE TO FACE www.russland.ahk.de

Journalists and their respondents have managed to beat Business Report, which is research conducted annually by the questions about sanctions to death. Nonetheless, restric- World Bank and which assesses the simplicity in 189 countries tive measures against Russia are continuing to take place of realizing business based on 11 indicators. According to this and sometimes it seems that no one intends to ever cancel report, Russia rose last year to the 35th spot, while in 2011 it was them. Is German business ready to further function in the only on the 124th place, between Uganda and Uruguay. Russian market in such difficult conditions? The third factor is import phase-out and localization policy. German business is the world champion for export, and in Rus- German business welcomes all stimuli in this regard which are sia it holds the first place for production localization. All of this offered both at the federal and regional levels. At the same time is because it is able to adapt in an operative way to new condi- it views protectionism negatively. We, of course, require that tions that arise. Director generals and other managers of Ger- German companies have the opportunity to interact with Rus- man companies do not sit on their hands, crying that “oh, ev- sian firms as equals and demand that Russia view foreign inves- erything is so difficult” – they under no circumstances do so. On tors as full-fledged partners. the contrary, they endeavor to quickly assess the situation and make decisions which will allow for them to quickly adapt to Which German companies are represented in the Russian the new circumstances. market? Are they mostly large concerns or small and medium businesses? What attracts German companies to Russia? Some kind of tax premiums, cheap labor force, low productions costs, or Practically all large German companies are active in Russia, something else? but if you look at the 800 members of AHK, then small and medium businesses make up the majority. This fact reflects In spite of the weak economic growth in Russia and “glacial the power and strength of German economy, which rests on period” in political relations between Russia and the West this kind of business. More than 90 percent of companies in there is a visible boom in German investment in Russia. Volk- Germany are small and medium businesses and frequently swagen alone has invested an additional half billion euros in even family businesses. production in the Russian Federation. Not long ago BMW announced their intention to build a factory in Kaliningrad, In Russia there are a remarkable amount of foreigners, in- and Mercedes Benz plans to launch automobile production cluding German recruiters and consulting agencies for re- outside Moscow in 2019. What is this boom connected to? cruitment and providing various consulting services. Is it German business is attracted by three factors. First, this is that these services are so in demand in Russia? the weakened ruble. If you count in euros and dollars, then working in Russia has become practically twice as cheap, in- Yes, these companies offer similar services across the world. cluding, let’s say, to buy a factory or create a business. Let’s This without a doubt is good for these agencies’ Russian cli- remember that not so long ago the course of the euro in ents. They also partially serve the interests of foreign business comparison to the ruble was one of 35 or 40. Currently, it is in Russia. one to 70. This allows managers of foreign companies to hire relatively well-prepared personnel. Therefore wages in Rus- Which German companies have come to Russia recently? sia are currently reaching almost the same level as in China, How many businesses are working with German capital in but the quality of work in Russia is better. the country?

The second factor resides in the bettering of the business cli- Currently there are 4965 such businesses active in Russia. The mate in Russia. This tendency has been reflected in the Doing strengthening of the German economic presence in Russia is

32 CAPITAL IDEAS April-June 2018 some way unusual or supernatural. De facto, little has changed for me. More over, the tasks I currently have before me appeal to me all the more because now I have the opportunity to not just write something, analyze, comment, critique, but actually influence the decision-making process.

You have been in Moscow for some time, it would be appro- priate to call you an old hand. What do you think of the Rus- sian capital, how much has it changed from the time of your arrival to the mega city?

Moscow has changed dynamically over the past years, regardless of the recession and economic crisis. All of my acquaintances who ended up in Moscow for the first time are truly surprised at how modern the city is. The Moscow Mayor’s team has managed to make the city appealing for residents. This means, for example, parks, internet access and taking place mainly based on the fact that German compa- the subway. Efforts are being taken to reduce the number of nies already located here are expanding their activities. Thus, space in the center for cars and create more for people. And over the last year a few “hidden champions,” as we call them, all of this happening right before us. If you will, we are talking have opened or expanded their production. These are busi- about a breakthrough in its own way of the centuries-long nesses which may not always be well-known, but whose paradigm of the capital, as during both the czars and the “red products can be seen almost everywhere. Among them, for czars ” people served the capital as a symbol of empire, and example, are Wika Mera, producer of measurement and regu- now the the capital is starting to serve the people. For ex- lation technology, which opened its factory in Moscow; Kermi, ample: in Moscow you can park your car and then pay with which manufactures heating equipment and whose produc- your smartphone. This is still a long way away from happen- tion is also based outside of Moscow; or the medical and di- ing in German cities. etary supplement manufacturer Bionorica, which opened production in Voronezh. There is nothing like this in Berlin?

The term “import phase-out” has already been said in our No, there is not. The quality of digital services in Moscow are conversation. How actively do German firms take part in much higher than in Berlin. In this sense Moscow is a much this process? more modern city. I am a fan of Moscow and even wrote a book about the Russian capital. It is called “Instructions for use: According to Bundesbank, in 2017 German companies in- Moscow,” and is to some extent its own kind of “psychological vested over 1.6 billion euros in the Russian economy. This guidebook.” is the largest sum spent in Russia by the foreign business community. The final question which is traditionally asked is what do you think of the World Cup taking place in Russia? Did AHK Which of the most significant new projects does German take part in some way this sports holiday? business intend to implement in Russia this year? We are very happy that the World Cup 2018 is taking place in Germany automobile manufacturing is traditionally strong. Russia and are sure that the host country will show itself off It is worth bringing up Linde, which is taking in large invest- well. The German team is coming to the World Cup 2018 to ments in Khabarovsk Krai. As you would expect, cooperation defend its title as world champion in soccer. But Germany has in the energy sphere is advancing, the start of which was laid something else to be proud of besides soccer. The fact is that back in the 1970’s. We hope that ultimately the Nord-Stream German business is a champion in investment in the Russian 2 pipeline will be built. economy, and this record will be presented as part of AHK’s multimedia project “Craftsmen Of Russia: Made According to Please allow a personal question. Before heading AHK, you German Standards,” which will demonstrate the accomplish- worked in journalism for a long time. In particular, you man- ments of German business in Russia. “Craftsmen of Russia” is aged the monumental German journal Der Spiegel’s Moscow a photo-album and contemporary website consisting of, most branch. How did a successful journalist suddenly become of all, beautiful photographs which famous photographers the head of a foreign trade chamber? from Germany and Russia worked on. We will tell the story of 35 German companies in Russia – from concerns with a global It seems to me that there is nothing surprising in this if you reputation to new startups. The presentation of this project consider that 70-80% of my current work corresponds with will take place on May 22 in the GUM on Red Square, while se- what I did earlier, given thatI used to pay attention to both the lect photos will be exhibited on Stary Arbat and Chistoprudny economy and politics. Therefore for me this step was not in boulevard in Moscow. ■

April-June 2018 CAPITAL IDEAS 33 ENVIRONMENT Ecology in the focus of German Business An unusual meeting took place at the residency of the German ambassador Rüdiger von Fritsch. What makes this meeting so strange is that the conversation that took place was not about fine art, as frequently happens at meetings in ambassadors’ residences. This time, the topic for discussion was ecology: “Ecology in the focus of German business.”

onorary von Fritsch opened the meeting with a curious Now, however, the situation is changing, and Russia is beginning to story of a German lumberjack who, roughly 200 years change its approach to environmental preservation. “In comparison ago, wrote a book on the guidance and preservation of to the 90‘s, the air in Moscow has gotten better,” Mr. Stern noted. a forest habitat that lay at the time in the west of the Russian Empire. This book, as the German ambassador It should not be surprising, therefore, that Russia declared last year Hnoted, was the first example of ecological cooperation between to be the “Year of Ecology.’’According to Nuritdin Inamov, Director Germany and Russia. Today, of course, this cooperation is both of the Department of International Cooperation of the Ministry wider and deeper. It touches on questions of preserving the forest of Natural Resources and Ecology of Russia, the “Year of Ecology” and surrounding area, as well as protecting the climate and safe was not just a formality. Over the course of the year, more than handling of industrial waste. 20 million people took part in various events centered on ecological education, and new laws on the implementation of new tech- Two documents serve as the basis of this cooperation, the first be- nologies in factories were adopted, which considerably increased ing the 1992 Intergovernmental Agreement and Statement on the the fines for violations. If before a similar fine accounted for all of Implementation of Joint Projects on Environmental Protection in 90,000 rubles, then as of January 2019 the fine would rise by a 100 Russia 2017-2019, signed last summer by the head of the Ministry times. In addition, the basis for this law in Russia was in a simi- of Natural Resources and Environment and by the head of Ger- lar law adopted in Germany in 1973. Russia finally recognizes that many’s Federal Ministry of the Environment, Nature Conservation, without solving ecological issues, the development of business in Building and Nuclear Safety. the country will be impossible, and, if one takes a broader look at the problem, then the modern development of the country will We are already cooperating for the preservation of wetland habi- also be impossible. tats in Moscow, Nizhegorodsk, Tversk, and Vladimirsk oblasts, as well as the forests of the far east and nature reserves in the Rus- sian north. The German side is already consulting us in regards to legal, technical and financial questions of introducing the best available technology in companies, is developing study programs and is conducting training courses for representatives of environmental protection agencies. German companies are achieving modern solutions for the use of alternative fuel and non-traditional raw materials, such as cement production.

Indeed, our country is beginning to treat matters of ecology more and more seriously, especially given that in the time of the So- viet Union little attention was paid to these problems. «During the USSR they did not treat the ecology very carefully,” as Mat- thias Shepp, representative of the Russian-German Foreign Trade Chamber, diplomatically said. Mr. Shepp recalled how, for example, when he worked in Russia as a correspondent for Stern in the 1990’s, he wrote about ecological catastrophes across the country.

34 CAPITAL IDEAS April-June 2018 A good example of this is served by German companies work- they have been energetically spreading this idea in schools, and in ing in Russia. Currently, there are more than five thousand such higher education. companies. Roughly 300 thousand peoples work in these companies. Arriving to Russia and localizing their production here, In the end of 2015 the capital city’s authorities released an interac- German companies are not only teaching us how to make quality tive map of separated waste collection points and recycling reproduction, but are also bringing a refined ecological culture to ceptacles. It tells where to throw out used batteries, plastics, and our country from which we can also learn. This is already taking scrap paper. As such, Muscovites can see online where to get rid place in particular in Kaluga, where German business is especially of used batteries, aluminum cans, energy-saving lamps, scrap pa- broadly represented. Currently there are 20 businesses from Ger- per, plastic, glass, electronics, black and non-ferrous metals, and many working there, and around 10 joint Russian-German busi- car tires. ness in which 7.5 thousand people in total are working. As Varvara Antokhina, Minister of Ecology and Natural Resources for Kaluga According to information from the city’s Department of Nature Oblast, confessed, it is thanks to the activity of German businesses Management and Environmental Protection of Moscow, the most there that a culture of ecology is being formed. numerous locations in the capital are energy-saving lamp disposal sites. These lamps need to be disposed of properly if they contain However, as Russian participants at the German ambassador’s mercury. For the most part, regional Housing and Communal Ser- residence noted, learning about ecological culture is not something vices branches take accept them. There are also more than 50 re- that just Russian businessmen should do, but also the whole of Rus- cycling points working in Moscow which are in almost every city sian society. In Germany itself learning about ecology begins in kin- district. In regards to separate garbage collection points, there are dergarten. In other words, in order to achieve the necessary effect, roughly 30. So far separate garbage collections points are present government, business, and society need to take part in protecting in three city districts – the Northern, North Eastern, and South the environment. In this sense, Russia is only at the beginning of Western districts. the journey. As just one example, if in Germany, as in many other countries in Europe and America, people have known for quite There are also 30 mobile points of separate garbage collections in some time about separating waste for recycling, then many citizens the north of the city. These are special cars with containers which in Russia could not even conceive of this, and yet another majority run on schedule between regions, stopping at different points for of citizens is even against such a way of recycling waste! As such, 15 minutes. The schedule is also available on the interactive map. the following numbers should not come as a surprise. If in Germany There are special containers at these stations into which the fol- recycling accounts for 90% of waste, then in Russia it is all of 5%. lowing sorted trash can be thrown: scrap paper, plastic, aluminum banks, glass, and batteries.

Moscow: how to solve the problem of recycling The Moscow government is developing an ecology strategy for before 2030. Before this time, apparently, the trash separation According to official statistics which Anton Kulbachevsky, head of system will start fully working. The problem is that, aside from the Department of Nature Management and Environmental Pro- separate garbage collection, the city also needs to create broad tection of Moscow, only 30% (!) are prepared to see special trash infrastructure for processing recycling, which, as it stands, does disposal bins for glass, plastic, and paper appear in the entrance- not currently exist. There is only the rather shabby infrastructure ways to their buildings and in the city’s courtyards. This is most from the Soviet Union, when the population was called upon to likely not surprising, given that Moscow authorities began actively hand over scrap metal, paper, and cardboard. After doing so, they instilling this idea amongst the population only in 2011. Ever since, received in turn works of fiction which were scarce at the time. ■

April-June 2018 CAPITAL IDEAS 35 A unique concert hall in Zaryadye park

will be the facade, which will be made fully out of glass. A “dry” fountain will be built on the spacious square before the main entrance, meaning that the stream will rise not from a water reserve, but straight from the earth itself.

The philharmony large hall can seat 145-1550 viewers, depend- ing on the orchestra pit’s usage. A practice hall will also be opened in the building, in which not only rehearsals will take place, but also chamber and solo concerts. During the performance, the hall will hold up to 400 viewers, including not more than 80 standing spots. A sound recording studio, buffet, and relaxation area with open terrace will also be included in the building.

The acoustics in the buildings were designed by a Japanese master – Yasuhisa Toyota, director of the company Nagata acoustics. He designed more than 50 concert theater halls in the world, including Mariinsky theater music hall in Saint Pe- aryadye park’s concert hall will open in 2018. This park will tersburg, the Walt Disney music hall for the Los Angeles phil- become a concert area for a variety of genres – from clas- harmonic orchestra, and the House of Music in Helsinki. Zsical music, jazz, and stage festivals to complex opera productions and fashion shows. “The hall in Zaryadye will have even more unique opportunities for opera and ballet productions than the Mariinsky theater’s The unusual philharmony building, comprising 23.6 thousand second stage, built ten years ago” – believes conductor Valery square meters, promises to become one of the most visited Gergiev. “It should become the perfect acoustic instrument, places in the park. By walking along Pskov hill, one can reach which will immediately and forever touch the soul and imagi- the roof of the concert hall. From this viewpoint you can ad- nation of the listeners. Performances should be done first and mire the beautiful views of the Kremlin, Moscow river, and his- foremost for children. Children react very vividly to everything – toric center of the city. The only open portion of the building decorations, color, music.” ■ The historical museum without days off

rom July 14 to 15 (during the soccer world championship) the State Historical Museum will work without days off. FThe Museum’s main building, as well as the Museum of the Great Patriotic War in 1812 will be open from 10 o’clock a.m to 9 o’clock p.m, and Saint Basil’s Cathedral will be open from 10 o’clock a.m. to 6 o’clock p.m

Those with FAN IDs for World Cup championship fans will be able to buy a museum ticket with a 30% discount. Free survey tours of the Historical Museum, Red Square, and grounds of the Saint Basil’s Ca- thedral will also be organized for the fans. These expeditions will be in Russian, English, French, German, Spanish, Estonian, and Chinese.

One can get a World Cup FAN ID in the flagship center “My Doc- ument” located at Presnenskaya naberezhnaya 2, or at the distribution center located at Khamovnicheskiy Val street, 34. In order to get this ID, fans should have an identification document, as well as a blank ticket-order form, or simply a ticket for the match.

A FAN ID allows to get the access to the stadiums, as well as to get the right for free ride on additional trains between organ- izer cities for the World Cup. ■

36 CAPITAL IDEAS April-June 2018 Online search of foreign literature

kept. The interactive map on the Bibliogorod site shows only institutions which have no less than 100 publications in Eng- lish and no less than 50 in other foreign languages. In order to find out which library has a book in one or another language, the user should go on the “Map” portion of the site, and then mark the desired languages. The map will show a list of the reading rooms. Afterwards, the user should click on the closest institution, after which the selected institution’s information will be shown, namely its working hours, telephone number, internet site, and address. In order to ascertain precisely which books are in the selected library, one should call the number provided.

new useful feature has appeared on the Bibliogorod site The largest fund of foreign literature is represented in the (http://bibliogorod.ru). One can now find Moscow’s De- N. A. Nekrasov central library, which contains more than 90 Apartment of Culture libraries, in which publications in 13 thousand publications. Aside from artistic works, one can popular foreign languages are represented, on the interactive also find here rare professional books in French, English, Ger- map. Among these languages are English, French, Italian, Span- man, Italian, and Latin. For example, there are multiple publi- ish, German, as well as Chinese and Japanese. 37 reading rooms cations on architecture of the XVII-XIX centuries. In addition, are depicted on the map. readers can acquaint themselves with the invaluable French reference publication Encyclopedia, or Comprehensive Dic- “Unfortunately, few residents of the city know that the city’s li- tionary of Art, Science, and Crafts Didro i D’Alambera . The braries have books in foreign languages, which are scientific, ac- work was published in France in the second half of the XVIII ademic, and fiction works. Visitors can read works from Agatha century and reflects the technical development of Europe Christie, Oscar Wilde, Charlotte Bronte, Theodore Dreiser, Stephen during the Enlightenment. There are over 40 encyclopedic King, Dan Brown, and Haruki Murakami in their native language. volumes. More over, Nekrasovka has volumes of albums with What is more, the foreign literature fund preserves rare editions of engraved drawings. Rare publication on art, geography, his- works from the XVII-XIX centuries,” The Moscow Directorate for tory, numismatics, heraldics, and iconography all await the the Development of Cultural Centers reported. reader.

In total there are more than 100 reading rooms in Moscow, The majority of foreign-language books can be taken home, where more than 190 thousand books in foreign languages are though rare-print books can be explored only in reading halls. ■ A Chanel study has opened at Patriarch Ponds

ccording to Chanel’s press-service, their perfume and cosmetics boutique has once Aagain opened on Malaya Bronnaya street as of the beginning of 2018. The new format is called Chanel Moscow Studio, and the boutique design and conception will change every two months. The studio’s guests will be able to try new products, do their makeup, and get consultations on skin treatment. The first two months at Chanel Moscow Studio are dedicated to the Chance aroma. The studio’s guests will be able to try products from Chance’s basic and bath lines, visit a master class from Chance’s leading makeup artists, listen to DJ sites, and receive skin care treatment consultations.

We would like to remind the reader that the build- a Christmas cosmetics store, an old-fashioned boutique, and a ing on Malaya Bronnaya had earlier been the site temporary space in honor of the Chanel Gabrielle aroma’s re- of a temporary Chanel Coco Cafe pop-up boutique, lease. ■

April-June 2018 CAPITAL IDEAS 37 Luzhniki park’s landscape illumination

he grounds of the Luzhniki olympic complex will have landscape lighting as of spring, 2018. More than 750 diode Tlights will be set up along the Luzhnetskaya embankment, Slava and Centralnaya alleys, and along Festivalnaya square. In addition, light fixtures will be placed along the walkways, and architectural lighting will decorate both the monuments, trees and shrubbery that were planted this year.

The lighting will be turned on the whole year round, and the majority of illumination will be a warm white light. On days when soccer matches take place, purple, green, blue, and red holiday lighting will be on in the olympic complex grounds. The artistic architectural lighting will in total be equipped on more than a dozen monuments and sculptures on the Luzhniki grounds. Monuments in honor of legendary soviet sportsmen – the soccer player Lev Yashin, the hockey player Valeri Kharlamov, and the Spartak soccer club founder Nikolai Starostina – will be illuminated during the evenings and nights. The bronze figure of the teddy bear that became the symbol of the XXII Olympics in 1980 will be adorned with lights. Illumination is also planned for Centralnaya alley near Three variations of architectural illuminations were developed the monument to Vladimir Lenin and the Earth and Water for the Large sport arena on the Luzhniki olympic complex sculptures, made by a group of soviet architects based off the grounds. The brightest lights will be on during the 2018 World designs of Vera Mukhina in 1957. Finally, trees and shrubbery Cup soccer championship games. On days when regional games planted this year in the most lively parts of Luzhniki will be are being held, a less intense light will be turned on. At night, illuminated. standard illumination on the facade will be on. ■ A new hotel has opened in Sheremetyevo airport

its guests. Every room provides wide beds with noise-sup- pressing headboards and conveniently-located USB-ports, as well as plasma TV panels with ports for connecting media gadgets. The designers rethought traditional working places in the room, creating a mix-zone for work and relaxation, inspired by an airplane’s business class. Free unlimited Wi-Fi is available for the hotel’s customers over the grounds of the whole hotel.

The hotel’s interior and color scheme support the concept of the modern space, combining dynamism and comfort. Ow- ing to their logical zoning, the Express Cafe & Bar and hotel lobby are perfect for both meetings with colleagues, and for spending time together with friends after or between a long HG (InterContinental Hotels Group), one of the leading world flight. hotel companies has opened its Holiday Inn Express Mos- Icow – Sheremetyevo Airport hotel. Its located within easy Mike Greenup, vice president for Holiday Inn Express’s brand walking distance from the D, E and F terminals of Shereme- management, commented that: “The Holiday Inn brand fam- tyevo airport, which is the largest airport in Russia by number ily remains IHG's key growth driver in the region, and we are of passengers served. Owing to its convenient location, the ho- proud to have opened our second Holiday Inn Express in Mos- tel is the ideal pace for Russian and foreign travelers, as well as cow located within walking distance to Sheremetyevo, which airplane crew members, to stay. is currently the largest airport in Russia. We are sure that both business and leisure guests will enjoy a comfortable stay and The new hotel counts 190 “new generation’ rooms. The ho- the welcoming service which the Holiday Inn Express brand is tel building is designed around the opinions and reviews of famous for.” ■

38 CAPITAL IDEAS April-June 2018 A Science Park in Skolkovo Based on Zaha Hadid’s Project

berbank’s science park in the Skolkovo innovation center, based on the architect Zaha Hadid’s project, is planned to Sbe built in 2020. Sberbank’s science park in Skolkovo will be one of the most unique buildings in Russia. This is the architect Hadid’s last project, which the Russian company “A-project” has adapted. The science park will occupy 266 thousand square meters. More than 14 thousand people will work in the 10-floor building. The building will be 52 meters high, with 54 elevators and 16 escala- tors. Residential buildings will be constructed in parallel with this project, designed for employees of Sberbank working in the science park.

As the reader may recall, the Skolkovo innovation center in the west of the city will become the largest testing grounds in Rus- sia for modern economic policy. On the grounds of a specially- The Skolkovo innovation center is a state project realized by allotted territory unique conditions for research and develop- attracting investors. 2.6 million square meters of real estate will ment will be created, including for energy and energy-efficient be built on 400 hectares of land. 30 thousand jobs will be cre- technologies, as well as nuclear, cosmic, biomedical, and com- ated in the center. 20 thousand people will live here perma- puter technologies. nently. ■

“Made in Russia” – brand goods will be available on the internet market

he first goods with “Made in Russia” Chinese, and Hindi. For Russian manufac- printed on the package were released turers, Asian, South American, and Middle Tin 2018. The Russian export center re- Eastern markets are considered to be the leased the e-catalogue madeinrussia.com main priority. especially for the promotion and sale of these products. One can find information Foreign customers have already shown on this site about manufacturers, brands, much interest to goods with the “Made in and their contact information. The site is available in 8 lan- Russia” brand, ranging from mechanical engineering to food guages – Russian, English, German, Spanish, Arabic, Farsi, products. ■

The first Aesop’s corner in TsUM

space on the first floor of the Moscow TsUM has opened for the Australian skin-care, face-care, and hair-care brand AAesop. Famous Aesop oils with parsley seeds, shampoos, creams, and balms in aluminum tubes are being sold in Russia for the first time.

Aesop is an Australian brand which manufacturers its products using natural component without negating the benefits of the laboratory-developed products. As a result of this mix, Aesop’s products are both effective and pleasant for use. For the first-time user, we recommend the classic shampoo and conditioner, the face gel B Triple C Facial Balancing Gel (for when your skin is both greasy and flaky, and prone to out- breaks) or the cleansing mask Chamomile Concentrate Anti- Blemish. ■

April-June 2018 CAPITAL IDEAS 39 Moscow – a new business hall for passengers of international airlines

of service should be clarified at your airline’s office, or by the contact telephones in the business hall.)

Passengers of any air company with a ticket from any class can use the hall’s accomodations one time by paying directly in the business hall at the administrator’s desk. The price is 3500 rubles for 3 hours of use. Children from 2 to 12 cost 50% of the adult fare.Children younger than 2 years of age are free if accompanied by an adult with permission to use the business hall. Upon airplane delays of more than 3 hours, an additional payment of 1100 rubles per person for every subsequent hour is charged. ■

he new “Moscow” business hall opened in Sheremetyevo airport on the third floor of Terminal D (the international Tflights zone, after passport control), near the exit to gate 30. It is designed for 117 seats, accepts guests 24 hours a day and offers two restaurant areas and a comfort relax zone. The hall serves cardholders of Priority Pass, LoungeKey, Lounge Club, Diners Club, Lounge Charter.

Priority-class passengers can use the business hall’s accomodations after having completed a service agreement (the terms

Fitness-mansard in the center of Moscow

he new X-Fit fitness space will occupy more than one Leading specialists, advanced fitness technology and the thousand square meters and will open in 2018 at the best methods are united under the single roof of a his- Tintersection of Malaya Dmitrovka and Stoleshnikov torical mansion in the very center of the capital – a place streets. where life is active 24/7 and where new trends are born. Advocates of the latest trends will have access to the styl- ish fitness-monsard’s format, which combines the spirit of the historical center of Moscow with fresh industries. Aside from status and comfort, guest will also have access to the most effective programs, the basis of which lie in the patented and tested training methods of X-Fit Smart Fitness. The gym’s main pride lies in its large complex of functional training with airbikes and rowing machines, with cable and weight zones and the opportunity for crossfit training sessions. Moreover, the club offers the service of specialists in various forms of massage.

Personal and split-training sessions will be held in the club, as will be group programs in patented methods. All of the halls are equipped with the latest technologies, which will allow each member to build their own routine based on their individual fitness needsThe X-Fit fitness-mansard ‘s atmos- phere motivates the capital’s residents and encourages them to care about their body, even with the capital city’s frantic daily routine. ■

40 CAPITAL IDEAS April-June 2018 The first Fairmont hotel in Russia

esper company, which specializes in deluxe-class realty and AccorHotels Group are announcing the signing of Vagreement of intention to open the first Fairmont hotel in Russia. A five-star Fairmont Hotels and Resorts hotel with 142 rooms and 50 apartments is appearing in 2019 on the last free area of Tverskaya street (1 Tverskaya-Yamskaya, 2). The new hotel will become the first project by this company in Russia.

The Fairmont’s history starts in 1907 in San Francisco, with 70 luxurious hotels in 20 countries currently. The legendary Fairmont hotels are famous over the entire world, and some have already managed to enter the pages of history: The Plaza in New York City, Savoy in London, the Fairmont in San Francisco, in which the UN Charter was signed, Fair- mont The Queen Elizabeth in Montreal, where in 1969 John Lennon and Yoko Ono held their famous press-conference “Bed-in For Peace,” Fairmont Monte Carlo, which was opened by the princess of Monaco Grace Kelly, and many other boon for travelers from the world round,” noted Alexis other locations. Delaroff, AccorHotels’ regional director in Russia, Georgia, and the CIS. Vesper’s portfolio has 15 deluxe-class projects, 13 of which are located in Moscow. Investment in the implementation of the This architectural project, which is done in the style of the his- Tverskaya project, consisting of 25,200 square kilometers, will torical buildings on the main street of Moscow, was created amount to 8 million rubles. by the SPEECH bureau. One 8-story building will have a hotel, while another, 9-story building will have deluxe apartments “The appearance of a hotel of this kind will create a totally with finish and penthouses suites. They are joined by a com- new level of standard for comfort, guest service and perfec- mon grounds with a shopping gallery, conference halls, well- tion in every detail. I am sure that we will be able to give ness zone, restaurants, and underground parking. The own- Fitness-mansard in the center of Moscow Moscow a truly unique project. I think that the opening of ers of the apartments will have access to the entirety of the this hotel will become a pivotal moment in the development hotel’s infrastructure and service from one of the best hotel of the entire comfort hospitality industry in Moscow and an- operators. ■ Culinary News

NEKO. This bar on Bolshoi Putinkovsky street is of interest not only because of its trademark dishes, but also because of its drinks – cocktails, Japanese whiskey, and, of course, sake. Neko (Japanese for cat) is a laconic and elegant evening bar with a Japanese menu and complex Jap- anese-style cocktails. The Japanese dishes which are served here are varied in nature. Guests can try sushi rolls with soft-grained crab, sushi with seafood and edible gold or hamachi with linseed chips. Pavel Maletsky, who has worked not only in the capital’s venues, but also restaurants in Dubai and Hong Kong, is responsible for the menu here. The sashimi here is worth its own mention, and is a classic Japanese dish in the form of sliced raw fish or other seafood. The menus has scallops sashimi for 520 rubles, or from tuna for 650. In addition, one can try Poke salmon for 520 rubles, beef, which cost 990 rubles. There is space for 40 people and or the trademark “Marble” rolls with premium the average check is 2000 rubles. ■

April-June 2018 CAPITAL IDEAS 41 on toast, an assortment of Magadan shrimp on ice or baked Sakhalin, scallops, or even an entire platter of seafood at once. For the main meal, one can choose the signature Magadan ear with fish balls, or for a hot meal there is a variety of whole fish dishes, or, instead of having to go through the trouble of making a decision, the guest can take a large fish tawa for the whole party. Caviar has its own section, the caviar bar, and includes five types: halibut, white fish, sockeye salmon, salmon and pike. Every portion is accompanied by oladyi (pancake fritters) with sour cream. Regardless of the fact that the venue specializes in seafood, the menu also offers different culinary dishes. Guests can order poultry, meat, or vegetable dishes, as well as deserts. MAGADAN. The venue located at Kutuzov Prospect, 12-1 spe- Just as satisfying as the menu is the nightlife here. On Thurs- cializes in seafood and caviar. The menu included fish and oth- days, Fridays, and Saturdays there are planned live concerts er seafood from Magadan, Murmansk, the far east, and other on an enormous stage set up within the restaurant, with DJ’ed fishing regions of Russia. For snacks accompanying beer one dance evenings that go until 6 in the morning. During the sum- can bravely take, for example, herring from the sea of Okhotsk mer, a large, striking veranda that holds up to 100 people. ■

SAUSAGE SHOP. Sheremetyevo international airport has become the first airport in the country with a restaurant by Arkadiy Novikov. Now passengers in the “clear” zone of Termi- nal E can try artisanal dishes. The new restaurant works round the clock, and the average bill costs 2500 rubles. Natural craft sausages, ham, smoked meats and sausages are delivered to Sheremetyevo straight from the sausage shop located at the restaurant in Badaevsky brewery. The menu includes the hits from the first sausage shop: vienna, strasbourg, and duck sausages, grilled kielbasa, including white munich, chorizo fresco, ground beef with honey and cumin and boudin blanc. Light sal- ads with accompany the dish with young cheeses from Syro- varnya, specialty sandwiches and an extensive breakfast menu: kasha (porridge), syrniki (fried pancakes), casseroles, omelettes, in the beginning of October 2017 at the Badaevsky brewery. It and eggs from the frying pan. The bar menu consists of Russian is a unique project, similar to nothing else in the world, with its and imported craft beer, and also included classic draught la- own sausage shop in the restaurant. The food is prepared from gers and wheat varieties. The first “Sausage Shop” was opened nothing but the best meats and spices. ■

syrniki, croissants, soups and house dishes from the chef before their flight. The first cafe from this brand opened three years ago on Bolshaya Nikitskaya. This venue’s most interesting feature is its special breakfast menu, which is available not just in the morning, but the whole day. For example, the cottage- cheese casserole comes highly recommended for 410 rubles, eggs with fresh-farmed tomatoes, and salmon for 440 rubles, or oatmeal with cream-brouille and raisins for 390 rubles. In addition, an assortment of unique baked goods is also available: croissants with various fillings and belgian waffles. Speed of service is always a crucial point for any cafe, and even more so for an airport venue, In Khlebnaya Lavka dishes are served with maximal speed, be it pizza, a sandwich, or a hot dish with a side. The menu also offers an original salad with turkey sous-vide for HLEBNAYA LAVKA. The Hlebnaya Lavka chain has opened its 270 rubles, and mozzarella in honey sauce for 290 rubles. Crab second location in Terminal A of Moscow’s Vnukovo airport. cutlets serve as an excellent main dish for 690 rubles, as do beef Now passengers can refresh themselves with mouth-watering pelmeni for 170 rubles. ■

42 CAPITAL IDEAS April-June 2018 MAMA GOCHI. A new Georgian cafe has appeared on Bolsh- aya Dmitrovka with its own house cheeses. In total, this new cafe takes up the entire 3-floor building opposite the Moscow operetta. On the first and third floors are the cafe’s dining halls, while on the second floor is for the cheesemaking. Thanks to this floor plan, two large events can be held simultaneously without interfering with one another. The interior is designed with contemporary taste, though with obvious ethnic accents. Paintings from Georgian artists decorate the wood-panelled walls, and on the first floor 150 clay urns hang from the ceiling that serve as lampshades. On the third floor a feeling of Georgian hospitality is created by tandirs and ovens for making khachapuri. The menu offers mainly Georgian classics, although the cafe’s location in a tourist area has left it with certain Euro- nadugi, Imeretian cheese and four types of suluguni – classic, pean dishes. Khachapuri here can be ordered as an appetizer or with mint, with paprika and greens. A portion of the cheeses as a main dish: there are 9 varieties made here. Khinkali is of- are used for preparing dishes from the menu, while the remain- fered in portions of three: with veal (270 rubles), veal and pork der can be bought to go from the cafe’s store. The bar menu (270 rubles), and with lamb (310 rubles). The cafe’s cheeses are offers, among other things, chacha, infused with walnut, pome- made from farmer’s milk from Kaluga Oblast. Here they prepare granate, and orange. ■

the restaurant’s design is heavily devoted to the cartoon. The venue’s inspiration is reflected only in a few striking accents: wall paintings with characters from various shows on the walls of the VIP room, and the waitresses embody Japanese schoolgirls. The cooking team is lead by the Australian Jonathan Curtis («Nedalniy Vostok», Mr. Lee, Fumisawa Sushi). The basic idea for the menu which he put together was using as much fresh quality fish as possible. The restaurant buys fish and seafood from the whole world over, but roughly 80% comes from Tokyo's Tsukiji fish market, to which Moscow restaurateurs are increasingly turning. The pride of Tsukiji is the fabulous selection of tuna, which is TOTORO. Aleksandr Rapoport opened his first Japanese restau- why Totoro’s menu has eight kind of sushi made from it. (120-380 rant on Kutuzovsky avenue. Having taken a course on democ- rubles) Sea Bass goes for 620 rubles, crab phalanx for 640; there racy during this new project, the famed restaurateur appealed to is also striploin steak from marbled beef wagyu (1800 руб.), and themes from popular culture. “Totoro” is an animated film of cult even kobe beef tataki – premium quality steer meat ( the most fame from the Japanese artist Hayao Miyazaki and is expensive thing on the menu, at 3200 rubles). Totoro has an the story of the friendship between two sisters and a enormous selection of sake – more than 8 kinds. Moreover, they friendly wood spirit. However, it can not be said that offer a multitude of Japanese whiskies and Japanese craft beer. ■

MOLLUSCA. A new restaurant has opened at Pa- triarch Ponds – this time with beer, Chilean mussels, of which there are 27 varieties. The restaurant is located in location comprising 100 square meters. The main dining area accommodates 38 seats, decorated with elements of brass, marble, American walnut and concrete. In total, contemporary design and art-deco are combined. The restaurant’s chef is Gianmaria Sapia, who designed the menu around molluscs. The main portion is made up of mussels, and for them it is worth coming from all ends of the city. 16 varieties of draught beer and nearly two hundred types of bottled beer. Beer enthusiasts average check at this restaurant is between 1500-2000 rubles. will be surprised by the rare varieties of beer in this For example, marinara mussels go for 600 rubles per half kilo, venue, such as Nøgne varieties from Norway. The and rotolo crab – for 250 rubles more. ■

April-June 2018 CAPITAL IDEAS 43 RYBA MOYA. This fish restaurant on 1 Tverskaya-Yamskaya, pike, stew, and sturgeon from Astrakhan. Of course, the menu 21 destroys the stereotype that first-class seafood is a rich and would not be complete without Crimean mussels in garlic wine unattainable pleasure. Wild fish freshly caught by fisherman in sauce. As a compliment to any dish homemade focaccia, with Morocco and twice a week shipped in by a special flight to this complimentary unlimited water poured at the table. restaurant is a unique luxury. The angler fish, pagrus, and turbot are done to perfection, thanks to the Big Green Egg grill – one of For those who do not especially love fish there is the Meat Meat the kitchen’s prides. This is simultaneously both a grill, a steamer, Meat section, with all of the popular hits which made the previ- a smoker, an oven, and a tandir, which allow all of the healthy ous restaurant, Perelman People, famous. Here is the signature aspects of a fish to be preserved without over drying it and leav- rabbit liver pate from I Like Wine on Pokrovka, and the regular ing it juicy. Live lobster straight from the Arab Emirates for the customers’ favorite of the I Like Bar on Shabolovka – veal medal- lowest price in the city (490 rubles for 100 grams) or octopus – lions crispy potatoes, and a salad with roast beef and arugula. also brought in by special important and straight from Peru, or tender salmon from Faroe Island, fired on the grill on demand – is A veranda with space for 150 people is promised for this sum- all here. The restaurant also has local Russian products, providing mer – the largest on Tverskaya street, with gigantic screens for them with their own section. Here there is cold-smoked arctic the upcoming World Cup 2018, and aquariums with hundreds cisco, trout caviar without conservatives from Karelia, and also of live lobsters. ■

GORYNYCH. This restaurant has opened on the third floor of the Central Market and is a joint project between the restaurateurs Ilya Tyutenkov, Boris Zarykov, and chef Vladimir Mukhin. On one hand, the partnership is unexpected, but on the other is absolutely logical: Tyutenkov and Zarkov are two de facto leading personalities in Moscow’s culinary world and were bound to meet at some point. The open kitchen here is of immense proportions – a chef can only dream of such a working space. It would seem as if the kitchen received no less than a quarter of the entire premise, while all the working surfaces are a full-functioning part of the restaurant. The long serving area is made from coarse wood, and at the head of the kitchen is the large, beautiful oven, which gives the restaurant its name. The bread maker’s stands separately from the kitchen – here they not only bake bread, but also take part The grill occupies an important place on the menu (not in vain did in its creation from start to finish. The restaurant has its own they wait so long for its arrival from Texas). The menu includes miniature mill, the grain is bought separately, after which it is steaks, lamb tongues, and seafood. Sauce can be ordered sepa- ground into flour in the restaurant and kneaded in a starter rately for each dish, and extras include bread crumbs, fried sausage designed by the restaurant. First of all, the guest should try and add-ons. While more than ten items are cooked on the grill, the pizza. Here there are such classics as margarita and four- there are two separate blocks with meat and fish in Gorynych. Of cheese pizza (400 and 700 rubles, respectively), as well as the special note are the beef cutlet (720 rubles), – a hefty breadless trademark filings, such as with burrata and truffles (which are burger with cowberry sauce (they say it was a special invention by to die for) or with eel and green onions. Zarkov), and octopus with potato (1170 rubles). ■

44 CAPITAL IDEAS April-June 2018 MOSCOW IN WORDS

Fedor Tyutchev, Russian poet Afanasy Fet, the greatest lyric poet regarded as the finest master of lyric of Russia, a genius lyricist, who verse in Russian literature wrote poetry throughout his life

I love a storm in early May I have come to you with greetings When springtime's boisterous, firstborn thunder To tell you the sun has risen, Over the sky will gaily wander To say that its burning light And growl and roar as though in play. Through the leaves has sent a flutter;

A peal, another – gleeful, cheering... To say that the woods have waked, Rain, raindust... On the trees, behold!- Every corner, and every twig, The drops hang, each a long pearl earring; Every bird has taken wing Bright sunshine paints the thin threads gold… Full of appetite for spring…

Mikhail Lermontov, Russian Romantic writer, poet and painter, sometimes called Anna Akhmatova, "the poet of the Caucasus" Russian modernist poet

When the ice broken by spring There are such days before the spring: Goes as an excited river, When meadows rest beneath the snow, When among the fields blackens And dry and cheerful branches swing The naked land, here and there, When gentle warm winds blow. And the darkness lays with clouds You marvel at your body’s lightness On the half young fields; And do not recognize your home, A wicked dream is cherishing the sadness You sing again with new excitement In my inexperienced soul. The song that once seemed tiresome. I see: the nature is getting younger; But not the soul of mine!..

Ivan Bunin, poet and writer, the first Russian writer awarded the Nobel Prize for Literature Alexander Blok, Russian lyrical poet

Walls smoke with the charcoal stain. Oh, spring without end and without limit – The steppe is foggy and still. Without end and without limit a dream! I discover you, life! I Accept you! The carefree cock will perform And welcome you with a clang of the shield! Day-long for the sap-stirred earth. In the fields it is drowsy and warm. In the heart—indolent mirth. NOTHING VENTURED RENAULT continues to invest in Moscow

he impulse for Renault Russia’s development tion have not come true, and Moscow is increasing was given at the end of winter of this year. its car production capacity. We are signing an agree- The Russian capital’s mayor, Sergei Sobyanin, ment with Renault to provide the company with tax and vice-president and director of Renault’s benefits so that the company can invest in new tech- corporate communications, Antoine de la nologies, new equipment, the creation of industrial TRochelbrochard, signed an agreement for the auto- driverless cars and delivery of cars for import.” – said mobile production development in Moscow. Sobyanin.

«Stories about the decline in demand for cars and The mayor announced that the automobile cluster fears of slowing development of automobile produc- creates high-paying jobs in Moscow. “I am thankful to

46 CAPITAL IDEAS April-June 2018 RENAULT continues to invest in Moscow Localization of production is a goal for many foreign companies currently working in Russia. There are more than a few examples of successful production localization. The most striking of these, perhaps, is Renault Russia. This is not a surprise since, after all, relations between the French automotive group with Russia began at the beginning of the XX century. It was cars from this company that the Russian imperial family travelled in. According to the analytical center Autostats rating, Renault cars are currently amongst the most popular in the country. In 2017 two of the top three best-selling cars were the Renault Duster and Renault Captur.

Renault that, despite all the difficulties and complica- in Russia (more than 60%). Incidentally, according to tions, they continue to invest in Moscow, in Russia, in official data, activity localization at the factory com- so doing developing automobile production.” prises 70%. That means that 70% of assembly parts come from Russia, the remaining 30% is from abroad, The agreement extends existing measures of support including France. for the automobile sphere until 2020. The document states that the company is bound to continue the An engineering and technical center and underground modernisation of its factory and increase the release testing facility operates at the factory. In 2013 Mos- of cars. Renault will attract new investors for auto- cow authorities and CJSC Renault Russia concluded mobile manufacturing. In addition the firm took upon an agreement on the development of automobile itself the obligation of taking interns and hiring grad- production at the territory of the South Port industrial uates of Moscow tech schools.

The city’s authorities, in their turn, will examine the possibility of maintaining tax discounts for automobile manufacturing companies. In particular, they may maintain import discounts and property tax from 2018 to 2020 inclusively. Also in the agreement is the maintenance of rent payments for car company’s land property.

This is not the first agreement signed by Moscow’s government and the French group aimed at the development of automobile manufacturing within the bounds of the city. The fact is that Renault is very important for Moscow. The automobile factory is one of the largest taxpayers: the company’s tax receipts make up around 1 billion rubles a year. Sergei Sobyanin has noted more than once, this factory’s work is an example of how to re-organize Moscow’s industrial production.

The joint enterprise of Renault and Moscow’s JSC Av- toframos (CJSC Renault Russia) was created in 1998. Now Moscow’s Renault is a full-cycle plant, with welding, painting, and assembly departments The enterprise has a high level of localized production among foreign automobile manufacturers working

April-June 2018 CAPITAL IDEAS 47 NOTHING VENTURED

zone in Pechatniki. Over five years 613 thousand au- Official information: tomobiles have been produced at this enterprise, and investment volume comprised 14.3 billion rubles.

In 1992-1993 Renault opened its first Russian office in Mos- According to information from the authoritative au- cow, and in July 1998 signed an agreement with the govern- tomobile publication Autoreview, as a result of the signed agreement the French side received guaran- ment of Moscow concerning the creation of the joint car fac- tees for preservation of the rules of the game on the tory “Avtoframos”. This name was created by joining auto, Russian market before launching a new model at the Moscow plant. The fact is that production moderniza- France, and Moscow. After one year at the AZLK’s factory a tion has been noticed at the enterprise: the installa- partial-production manufacturer was opened, which released tion of over a dozen new robots is planned, with the aim of improving the quality of welding operations the Renault MEGANE and Renault 19, followed later by the the achievement of high production flexibility. This CLIO Symbol. In 2003 construction for a a full-cycle enter- is a round-about confirmation that the new car will stand out considerably from the off-road models be- prise was started for the production of the Renault LOGAN, ing released now in Moscow -Renault Kaptur, Renault which was concluded in April 2005. By 2006 LOGAN became Duster and Nissan Terrano – that are built on the В0 platform, the same which is used in the Logan model. the most well-sold foreign vehicle in Russia. Renault’s share in the became the best-selling foreign car in Russia. Renault According to Autoreview’s journalists, there is not much known about the new model so far. In Septem- JSC Avtoframos‘s capital share gradually increased, until it ber of last year the Renault designer Renault Laurens reached 100% in November 2012. In July 2014 the Russian fac- van den Acker told Autorevue about the new crossover, which will be a “true Renault,” meaning that it tory changed its name to closed CJSC “Renault Russia”, con- will not become just another variation of the Dacia. necting its name directly with Renault’s renowned history. A month later the company presented a slide of the new model, the crossover C-class with a coupe sil- houette at a company presentation.

It is expected the future car will be a seven-person off-road vehicle, and will be built on the same platform as Duster, the most well-sold model in Russia from Renault’s Moscow car factory. The new cross-

48 CAPITAL IDEAS April-June 2018 over is designed for four markets: Russia, Brazil, Chi- na, and South Korea. Official information:

Aside from the Duster, the Moscow car factory is cur- Renault’s network of dealers became the largest amongst rent releasing the Renault Captur and Nissan Terrano crossover models. The production capacity is enough foreign brands in 2014, with more than 180 dealerships from to manufacture another crossover: over 10 months in Kaliningrad to Vladivostok. Renault’s vehicles have proven 2017 82 thousand cars were manufactured at the facility, with 190 thousand project maximum per year. themselves to be reliable in the difficult climates and road Coupe-crossover will help Renault attract new con- conditions of Russia and have indeed deserved the name of sumers, most of all those who live a sporty style, an interviewee familiar with this topic comments in the their national mark. newspaper Vedomosti.

Sales of the new model will, as a minimum, be the same as Kaptur’s, and its profit will be even higher. 30966 Kaptur models were sold last year in Russia, with 22% of all of Renault’s sales – and that was second after the Duster model. As expected, coupe-crossover Renault ‘s price will be between the locally-produced Kaptur (from 879 thousand rubles) and the imported Koleos (from 1 million 749 thousand rubles), writes Vedomosti newspaper, a business newspaper. It is thought that the new model will compete with all other crossover models in its price bracket, but it will not have any direct competitors – the only similar kinds of models so far belong to premium-class makes.

The new model’s world premier will take place at the Moscow dealer in 2018, which is planned for the end of August/ beginning of September. The crossover will become the first embodiment of Renault Rus- sia’s new brand-strategy “My Country. My invention. My Renault.” ■

April-June 2018 CAPITAL IDEAS 49 NOTHING VENTURED Karin von Bismarck: Strengthening dialogue and faith between businesses and people The Economic Club of Russia (Wirtschaftsclub Russland e.V.), a German association in the Russian Federation, unites workers from German-speaking countries such as Austria, Germany, and Switzerland who currently reside in Russia, as well as Russian representatives. The main goal of this club is developing business connections, deepening relations in different spheres, including science, education, culture, and sport, as well as setting up and supporting interpersonal contacts.

Wirtschaftsclub Russland e.V. conducts various events in both German and Russian cities. Many of these events have become major events in the colorful palette of relations between Germany and Russia. Dr. Karin von Bismarck, the club’s representative and founder, discussed its day-to-day functioning in an interview with Capital Ideas

Over the past eight years, your association have to name all of our Highlights, but our series “Business conducted so many events that it would most like- meets culture,” “Business & Sport,” “Themes of the Fu- ly be impossible to count. Which of these have be- ture,” as well as our Charity Engagement under “One- come milestones in the activities of the Economic World – OneSky” and “New Silk Road Partnership” ini- Club of Russia? tiative demonstrate that the spectrum is rather wide. During preparations for World Cup 2018 in particular, In the past few years we have organized roughly we are working with the Eintracht Frankfurt soccer 470 events, and our goal and motto has always been club and initiated the first German-Russian football “We unite people and cultures.” It is difficult for me meeting. We also initiated a youth soccer training ex-

April-June 2018 CAPITAL IDEAS 51 NOTHING VENTURED

change between Locomotive Moscow and Eintracht fore. It is because of exactly this that Germans did not Frankfurt U21. leave the country during the economic crises of 1997, 2003 and 2009. Our entrepreneurs are convinced that Hope for a thaw in relations between the West and engagement with Russia should not be determined by Russia, unfortunately, remains illusive for the time short term gains, but rather be built onlyon the basis being. The cycle of anti-Russian sanctions contin- of long-term conceptions of mutual benefit. Russia is ue. Has this situation impacted negatively on the a growing market of interest with very compelling tax activity of the Economic Club of Russia, or is it con- conditions, and our entrepreneurs understand that. tinuing to follow its course unwaveringly? Trade between Russia and the European Union Yes, sanctions are a burden on all of us and we hope between 2013-2016 was reduced by more than 40 that they will soon disappear. However, our Economic percent – this is an unfortunate fact. However, in- Club of Russia (Wirtschaftsclubrusslande.V.) under- spiring news is starting to appear: according to the stood early that, most of all, our task is to support Federal Statistics Agency of Germany, German ex- and develop personal contacts and relations between ports to Russia have risen over the past five years. Russians and Germans during this difficult period. We It increased by 21 percent over 11 months in 2017 in are doing this with all our strength, and we are suc- comparison with analogous periods of the previous cessful. We are not responsible for the sanctions, and year, reaching marks of 24.1 billion euros. Do you we are also not capable of terminating them, but we believe that this trend will continue? can organize and support dialogue and faith between businesses and people. This will lead to the success of We are very much hoping for this. When we listen to business, and this is our main success. members of our club, and when we also see what exactly the large part of German companies are plan- Has anyone left your association recently? Or, per- ning for 2018, we are convinced that this growth will haps the other way around, have any new mem- continue. There is a lot of potential for this. It’s impor- bers joined the Club? tant for entrepreneurs who are considering investments in Russia to not be afraid. We are doing our Of course, like any association, the Economic Club of part to achieve exactly this. Russia e.V. has its outflow of members, but we can state definitively that from the moment the sanctions Are economic relations once again normalizing? were introduced in 2014 the number of members in Will the German economy once again actively work our club has grown. This testifies to the, as before, with Russia? significant interest in Russian-German relations and is an absolutely optimistic development. Of course. There is no alternative to this. Germany and Europe need a significant source of raw materi- Representatives of German business circles for the als which are found in Russia and the Eurasian Union. most part relate negatively to sanctions against We are in need of cooperation in the digital, mobile, Russia. How serious is the damage they bring to and new energy spheres if Europe and Russia do not German-Russian cooperation? What do the mem- want to be left behind the global competition. We are bers of your club think about this? also located on the same continent and we can only benefit from each other. Of course, many medium-sized business companies have partially or fully lost their business with Russia, Certain foreign representatives in the Russian Fed- and this hurts any employer. German economic rep- eration try to live in Russia “according to the Russian resentatives in Russia rather stated their support for calendar,” following the habits of the country they ending sanctions rather early and will further do so. have arrived to. Does your club follow the renown Some optimism is given by the fact that the volume German saying “When there is a holiday, celebrate” of trade between Germany and Russia in 2017 once (holidays need to be celebrated when they occur)? again grew by more than 25 percent. For example, on the 8th of March Russia observes International Women’s Day, which was started in Regardless of sanctions and crises in the Russian the start of the 20th century in the USA, and then economy, German business is not leaving Russia later officially instituted in Germany. But your coun- and is continuing to to invest in this country. How try does not currently celebrate this holiday. Does can this be explained? your club conduct events in concurrence with any sorts of holidays in the Russian Federation? Like the German economy, we, and our German business members are interested in a stable economic rela- Culture and traditions play a very important role in our tionship with Russia, as it has been for many years be- club, but we are not talking about holidays here. With

52 CAPITAL IDEAS April-June 2018 www.wirtschaftsclubrussland.org the help of concerts, exhibits, and presentations we very Stanton Chase partner, including for the Russian mar- much try to provide impressions of each other’s cultures. ket. A lot happened during that time, and the need Take this for example: on 13/01/2018 we celebrated the for qualified managers grew more and more. This is Old Russian New Year with our partner RDHG (Russian- a good sign for the Russian economy, and the gen- German Trade Guild in Hamburg) with a few hundred eration of Russian specialists growing up now is de- participants. And, of course, we also congratulate the veloping positively. As Stanton Chase International, women on March 8th, International Women’s Day we supply 98 percent of positions in Russia with Rus- sian experts, including positions in foreign companies. Apropos women. In your opinion, do the West and Over the past 15 years Russia has developed a real tal- Russia differ from each other in their understand- ent pool with international trained managers and ex- ing of the role of women in society? Is the topic of perts, which is a development Russia can be proud of. harrassment, which has been so actively discussed recently, especially in the US, relevant in Russia? Miss von Bismarck, you have the proud surname of a famous German state politician – the first chan- Equality plays an enormous role in a dynamically cellor of the German Empire Otto von Bismarck, developing world. Here we are concerned less with who was very popular in Russia, not least because obligatory bouquets for women, but rather first of all he was at one point a Prussian envoy in Saint Pe- with equal education and management opportunities tersburg and spoke Russian fluently. He is famous for women in business and society. Of course, we are for his expresions, which became popular saying also talking about an open discussion of any discrimi- and aphorisms, such as “Politics is the art of the nation against women here – and we are planning possible,” or “With the Russians you should use fair an event on that topic in 2018 – openness, dialogue, play or no play at all.” Which of Otto von Bismarck’s and empathy are absolutely important here, and that saying is closest to you? affects every country, including Germany and Russia. But due to historical development, women already Because of my name I am frequently asked about Otto have had their place in the business world in Russia, von Bismarck. I live in a different time with different when in other countries, also in Germany the concept challenges. However, I also try to speak in Russian, of a women as housewife and mother dominated. I have plenty of friends in Russia, and I am convinced that dialogue, respect, responsibility, and trust are very You are in Russia not just because you are the head important thing between Germans and Russians, and of the Economic Club. How did you first end up in that they are worth to be developed further. In this Moscow and what else do you do in this country? sense, I willingly pursue the positive ideas and thoughts of Otto Bismarck in relation to Russia. If you are asking I arrived to Russia in 2003 and worked in the pharma- me about a quote, then here is one: “Let us not commit ceutical industry in Moscow. I dedicated more than the mistake of doubting in the sense or good will in a 10 years to executive search personnel consulting as a person who thinks in a different way.”■

April-June 2018 CAPITAL IDEAS 53 NOTHING VENTURED Campbell Bethwaite: Russia is changing at a faster pace than the rest of the world

How did your move to Russia come about? So, you were observing Russia during the most mo- mentous period of its development. What were your I worked in New York on Wall Street, in Salomon Smith impressions? Barney (owned by Citigroup). We frequently discussed opportunities for growth in countries with potentially large Every time I arrived here there was some noticeable de- markets – India, Russia, China, Africa. Once I had a chance velopment, but it seems to me that the largest visible discussion with my boss in the elevator, and he asked me if changes did not take place between the 90’s to 2006, I would like to work in Russia. I answered “why not?” and in but over the last 8-10 years. This is accurate if you speak 2006 I headed to Citigroup’s Moscow office. of the market, technology and physical changes. For example, the center of Moscow has become completely dif- You had not been to Russia before then? ferent. People’s attitudes have also changed, which is especially noticeable on the road. I enjoy biking to work on I always travelled a lot and had been in Russia a few times since the newly constructed embankments and bicycle lanes, the end of the 90‘s. For example, in 2004 I took part in a trip which did not exist merely 5 years ago. Drivers have also along the Trans Siberian Railroad from Saint Petersburg to Bei- become more patient and corruption overall in the coun- jing, but I did not speak Russian and had no contacts here. try has improved.

54 CAPITAL IDEAS April-June 2018 Russia is changing at a faster pace than the rest of the world

Australian businessman Campbell Bethwaite arrived to Russia in 2006 as an American investment bank employee. After a couple of years he left the company and started his own business – the nightclub and bar Garage, followed later by the hotel project Moscow Suites. This was not his first business – Campbell has worked with startups from Australia, the US, Russia and Nigeria since his days as a student. Currently he is the founder of a holding of more than ten projects, the largest of which specializes in online loans to small and medium businesses called SimpleFinance. Bethwaite creates his own ecosystem: the holding has transportation projects, a b2b platform for selling bulk goods, a network of warehouses for storage, etc. The businesses complement and support one another. During his interview with Capital Ideas, Campbell Bethwaite spoke about what sectors in Russia have the most potential and what qualities a businessman should have to be successful in our country.

Much has changed in the areas which I often frequent, Would you recommend going into business in Russia to namely Saint Petersburg, Kazan, Krasnodar, and other large your friends? cities. They are not changing quite so furiously as Moscow, but still very quickly. That depends on the type of person; if you have a strong sense of entrepreneurship and are flexible and In general Russia is changing much more quickly than the ready to face different challenges, you will be successful. rest of the world, and over the past 5 years life has be- Success comes from acting on ideas, not just promoting come significantly more comfortable and pleasant, espe- them. cially for foreigners. Do you share the opinion that Russia has more risks for Why did you decide to stay here after leaving Citigroup? foreign businessmen?

I saw what enormous potential Russia has – here life There are risks everywhere, and every country has its moves so quickly and the opportunities are practically own. I have worked on businesses in Africa, Australia, boundless. I have the impression that everything is pos- America – every country has its nuances. Russia has no sible here. more than any other country.

April-June 2018 CAPITAL IDEAS 55 NOTHING VENTURED

What is unique about our country? strategic development. I do not believe in micro-management, the general director of each respective business should Russia is unique in many ways, for example legislation be the one who manages and is responsible for his business. changes quickly and frequently, often with aspects con- tradicting each other. You need to study the terms of a What should your team be like? contract and its associated nuances very carefully, because most likely not all the terms will be reflected in it. I have my own team which has been with me since the be- Another example is that everyone has a rapidly changing ginning, and I trust them. That means a lot. In our business- schedule. In New York, meetings can be arranged three es we allocate a lot of time and resources to team-build- weeks in advance, with both parties usually sticking to it. ing events – trainings, corporate events, various qualifying Here that is impossible, that is just the way the mentality courses and athletic competitions. That is one of HR’s big- is. This heavily impacts efficiency. I am able to be flexible, gest tasks. but there should be a balance. Would you tell us about your plans for opening new busi- People in Russia are very straightforward and say what they ness sectors? think. Especially when comparing them to America, where from a young age everyone is taught to speak in certain sen- I have a lot of plans and ideas, which I would not like to reveal tences and smile. It is not like that here and I find that very quite yet. Behind every investment there is a lot of preliminary refreshing as a foreigner. work and research. We never announce new sectors at the pi- lot stage of the project because it is not clear how successful How do you choose which sectors to invest in? they will wind up being and what will come from them.

I invest into sectors where I personally see a trend. For ex- Do you associate the rest of your life with Russia? ample, it is my belief that the small to medium business segment has a lot of potential, and will experience rapid de- I still see much potential here and am not thinking of velopment and profitability in the next 10 years. I see big leaving. opportunities for this economy in this sector. How do you relax? In second place I look for businesses that could support our ecosystem – all my businesses work in synergy. That I try to leave the city or country to restart my mind. I believe is a key factor which I look at when I pick a new sector for that you cannot achieve success if you work all the time. investment. I love skiing, sports in general and travel very often – I have been to over 140 countries. In Russia I climbed Mount El- In all, which business sectors do you consider the most brus, have been to the southern regions, skied in Kamchatka perspective for investment? and swam in Baikal. I have been to Sochi before and after the Olympics, there is a lot of infrastructure there for sports. I see a lot of potential in such sectors such as technology I have been to in the Arctic zone and I want to go to Altai, financing, the entire sphere of technological instruments, they say it is very beautiful there. medical technology, the pharmaceutical industry, telemedi- cine and b2b. Is your family here in Moscow?

Are blockchain and cryptocurrency in style? My wife is from Finland, we met in Moscow in 2014. Like me, she also came here to work. Now she is defending her Phd No one has convinced me that blockchain can be more in International Relations. useful than an existing technology. That includes cryptocurrency. So far I have not seen a case where blockchain Is there anything which you miss that you can not get is more efficient that technology that is already in place. here? Same for Bitcoin. My loved ones and friends and occasionally the weather. Although I have studied these topics in detail, I still believe Australia is considerably warmer than here. I am from Syd- that there is a lot more to learn, and therefore prefer to ven- ney and life there is completely different. ture into businesses that I understand well. What are your dreams? Do you aim to personally manage the entire business process, or do you delegate authority? I dream of a good solution for geopolitical issues, about the dynamic development of my businesses and finding a good I try to delegate as much as possible and give the company’s balance between work and personal life. I often dream of general directors the opportunity to work independently on sleeping slightly more than I do now. ■

56 CAPITAL IDEAS April-June 2018 Always by your side capitalideas.moscow NOTHING VENTURED Jozef Kollar: The times of get-rich-quick are gone

Jozef Kollar, 56-year-old economist and politician from Slovakia, started working as Deputy Chairman of the Board at the International Investment Bank in March 2016 after the bank opened its first European regional office in Bratislava. Currently, IIB members, whose headquarters are located in Moscow, include such countries as Bulgaria, Cuba, the Czech Republic, Hungary, Mongolia, Romania, Russia, Slovakia, and Vietnam. The main activities of this bank are supporting small and medium businesses in member countries and participation in financing of socially significant infrastructure projects. Jozef Kollar discussed with Capital Ideas journal why seeking out touchpoints during “turbulent” times for the world economy is necessary.

When and why have you arrived in Russia? I am not a fan of traffic jams, short and dark winter days but I love cross-country skiing and ice skating in the numerous city parks, I arrived in Russia in February 2016. The reason why is fairly biking down the Moscow river banks, museums and galleries. simple. My past career’s focus was on a combination of economics (Academy of Sciences), leadership, banking industry How does Russia differ from your Motherland, are there any in a multinational environment (CEO of an Austrian com- things our countries have in common? mercial bank in Slovakia with shareholders from Germany, France and Italy) and politics (member of Slovak Parliament, What comes to mind first is that Russia does differ from Slova- Chief of the State Budget Committee). The logical outcome kia in size – it is 350 times bigger – but there is something we of all this was that I accepted the offer to be appointed the have in common and that is an excellent national ice hockey Deputy Chairman – the official representative of Slovak Re- team. At the Pyeongchang Olympics, only one team managed public – in the International Investment Bank, responsible for to win over Russia, guess who? Slovakia! Treasury and Funding. What would you say about “Russian way of doing business”? What were your first impressions about Russia? Difficult question since IIB conducts business in nine different I am not able to talk about Russia as a whole since I spend most jurisdictions in three different continents. Perhaps the biggest of my time here in capital city Moscow. I am aware that Moscow challenge is the rule of law and law enforcement. This is some- is not the synonym for Russia and Russia is not the synonym of thing that all countries struggle with in some shape or form but Moscow. Nevertheless, Moscow as most populous city in Europe, the key issue is to what extent that is. If you exceed the accept- has the same pros and cons like any other metropolis in the world. able levels the whole economy can suffer as a result.

April-June 2018 CAPITAL IDEAS 59 NOTHING VENTURED

Do you think – and why if so – that foreign businessmen are As of the end of 2017 all member states are presented in the interested in doing business in Russia? Loan portfolio. EU-countries haves the largest share 41%, RF 25%, Mongolia 9%, Vietnam 4%, Cuba 7% and, other so called Nowadays the whole world economy is experiencing particu- 3rd countries 14%. larly turbulent times and many countries are facing some serious challenges. In my opinion, in order to be able to attract What personality traits should a foreigner possess to be suc- foreign direct investments, being closely involved in the global cessful in Russia? economy, being ready for fourth industrial revolution – and its exponential speed – is an absolutely crucial requirement. I am Infinite patience. not a believer in “island solutions” and am certainly closer to the philosophy of “together when possible, alone only when What would your advice be for your compatriots – business- needed”. men who are planning to do business in Russia?

Which business is apply for funding to IIB most? To keep in mind that the times of get-rich-quick are gone.

First of all we have to take into account the unique composition What are you plans for the next 10 years? How do you see of IIB member states. And it is obvious that in our countries we your business in 10 years? see different requests. It is my vision that IIB shall become a full-fledged multilateral In more developed countries like Czech Republic, Slovak Re- development institution, fully comparable with the IFI reference public and Hungary more often we see requests from export- group and completely integrated into the community of supra- ers to support their operations in IIB member states. And here national development institutions. The main goal of the bank’s it is worth mentioning IIB Trade finance program aimed at ex- activities will be to continue making valuable contributions to actly this goal. Very proud to mention that IIB’s TFSP (Trade the long term sustainable and inclusive development of its mem- Finance Support Program) was recognized as the best in the ber states. Let me express my personal wish that IIB manages Asia Pacific Region among development banks in 2017 by the to “get out of the box” of former COMECON group of countries. Association of Development Financing Institution in Asia and the Pacific (ADFIAP). What are the things you would like to be changed here to make your business more effective and fruitful? Another type of projects are related to long term funding ad- dressed to investment needs of the existing companies. The answer is partially hidden in my previous responses. IIB, as a multilateral development institution, enjoys a special sta- In more risky countries like Mongolia or Vietnam we see de- tus. We are not subject to the banking licenses and we are not mand for SME support financing that is provided through on supervised by the local financial authority. However the local lending with the help of local financial institutions. economy needs key structural reforms to be able to boost its competitiveness and productivity. In Russian Federation given the size of the country requests are very different: from renewable energy to waste management. Do you miss your country? What are the things you miss most?

Which industries, in your opinion, are the most prospective Yes I do for obvious reasons, as my family has grown recently to receive funding? and we now have two grandchildren. Fortunately, air travel makes distances shorter in this day and age and this makes it All industries excluding prohibited practices (like gambling, to- more bearable for me. bacco or alcohol) are prospective for IIB if the risk quality is ac- ceptable for the bank and we see the positive social impact of What were the main difficulties you have met with here? the project. Any unexpected positive things that make you appreciate living here? Representatives of which industry usually receive it? I would say the common struggles that one experiences in any oth- IIB loan portfolio is very well diversified both in the term of in- er place in the world, like crossing the street seems to be more dan- dustries and countries. As of the end of 2017 in the loan portfolio gerous here than elsewhere. Among the unexpected positive things industry diversification was the following (top 5): Financial sec- I would mention the professional skills of the local staff at our bank. tor (Banks and Leasing companies) 48%, Main Industries 18%, Energy 14%, Transport 6%, Mining 6%. What are you dreaming about?

How is the Bank's loan portfolio distributed among member I imagine all the people, living life in peace. I am dreaming that countries, by the amount of allocated funds? How many ap- my children surpass me during my lifetime. A dream that is al- plications received? most fulfilled already. ■

60 CAPITAL IDEAS April-June 2018 useful info

Department for external economic and international Department for Work with Foreign Legal Entities and their relations of the Government of Moscow Representative Offices Address: 13 Tverskaya Street, Moscow, 125032 Address: 109012 Moscow, St. Ilyinka, 6/1, bldg. 1 Ph: +7 (495) 633 68 66 Ph: +7 (495) 620 02 14, E-mail: [email protected] Fax: +7 (495) 633 68 65 +7 (495) 620 02 22 www.tpprf.ru E-mail: [email protected] Fax: +7 (495) 620 01 70 www.mos.ru/dvms/ Moscow Chamber of commerce and industry Department of Science, Industrial Policy and Address: 107031, Moscow, St. Petrovka, 15, bldg. 1. Entrepreneurship of the Goverment of Moscow Ph: +7 (499) 940 33 16, E-mail: [email protected] +7 (499) 940 33 25, www.mostpp.ru Address: 22 Voznesensky Pereylok, Moscow, 125009 +7 (495) 276 12 19 Ph: +7 (495) 777 77 77 Fax: +7 (495) 957 05 92 Main Administration for Service to the Diplomatic Corps E-mail: [email protected] www.mos.ru/dnpp/ (GlavUpDK) Department of Economic Policy and Development of the Address: 20 Prechistinka Street, Moscow, 119034 Ph: +7 (495) 637 23 26 E-mail: [email protected] Government of Moscow Fax: +7 (495) 637 31 71 www.updk.ru Address: 21 Voznesensky Pereylok, Moscow, 125032 Ph: +7 (495) 777 77 77, +7 (495) 957 72 17 City Government Fax: +7 (495) 629 33 42 Address: Voznesensky Per., 21, Moscow, 125032 E-mail: [email protected] Ph: +7 (495) 633-51-90 www.mos.ru/depr/ www.mos.ru Department of City Property of the Government of Moscow Moscow Investment Portal Address: 20 Bakhrushina Street, Moscow, 115054 Address: 119019, Moscow, Novy Arbat St., 11, bldg. 1 Ph:+7 (495) 777 77 77 E-mail: [email protected] E-mail: [email protected] www.investmoscow.ru www.mos.ru/dgi/ Moscow Innovation Development Center Moscow Exchange Address: Voznesensky Per., 22, Moscow, 125009 Address: Office 1: 125009 Moscow, Bolshoy Kislovsky per, 13 Business Center Usadba Office 2: 125009 Moscow, Vozdvizhenka Str, 4/7, Bldg. 1 Ph: +7 (495) 225-92-52 http://innoagency.ru Phone: +7 (495) 363 32 32, +7 (495) 232 33 63 Fax: +7 (495) 234-48-40 Business Protection Headquarters www.moex.com Address: Voznesensky Per., 22 (5th floor), Moscow, 125009 Chamber of commerce and industry of the Russian Business Center Usadba Ph: +7 (495) 620-20-45 http://shtab.mos.ru Federation Address: 109012 Moscow, St. Ilyinka, 6/1, bldg. 1 Department for Competition Policy Ph: +7 (495) 620 00 09 Address: 12 Pechatnikov Pereylok, Moscow, 107045 Fax: +7 (495) 620 03 60 Ph: +7 (495) 957-99-31, E-mail: [email protected] E-mail: [email protected] +7 (495) 957-99-77 www.mos.ru/tender/ www.tpprf.ru/en/ Fax: +7 (495) 957 99 95

April-June 2018 CAPITAL IDEAS 61 NOTHING VENTURED Ronaldo Carreras: I made Moscow

lthough senor Carreras has a degree in cooking (he graduated from a culinary institute in Lima, the capital of Peru, and afterwards continued his education at a cooking school in neighboring Chile), Ronaldo was essen- tiallyA born a chef. In any case, he was drawn to this profession even in childhood, because of his mother Nelly, who was also an amazing cook.

Nor did she cook only at home, but also in her restaurant in Lima, which she owns to this day. “After school I often went to my mother in her restaurant, where I helped by washing dishes, skinning potatoes, and performing other tasks,” recalls Ronaldo. Of course, he also tried to cook. No matter how hard he tried, however, his mother always scolded him. In her opinion, he always either undersalted his dishes, overcooked them, or added too much spice. “Later, when I graduated from institute and became a certified chef,” says Ronaldo, “Mom explained to me why she always scolded me as a child. She said; ‘I wanted you to not get conceited, so that you always perfected your culinary art and became a truly What is the most important thing in the art amazing chef!” of cooking? For a chef’s dish to be so good His mother’s dream came true: Ronaldo really has that, once you have tried it, you want to become a high-class chef, having started to hone his mastery in various restaurants across Peru at 22 years try it again and again. Ronaldo Carreras, of age. First he labored for one and a half years at his 42, professional chef from Peru in Moscow, mother’s restaurant, afterwards leaving to work at the Manos Morenas restaurant, where he mastered prac- makes exactly these kind of delicious dishes. tically everything. It was while working at this restaurant, located at Lima’s international airport, that on one amazing day Carreras received an offer that he could not refuse. A Peruvian businessman offered to head to the Russian capital with him to work as a chef in a Latin-American restaurant. Without taking much time to think, Ronaldo gathered his things and, in February 2007, ended up in Moscow.

62 CAPITAL IDEAS April-June 2018 I made the decision to come to without reflecting

For Carreras, there was no hesitation because he gets his groceries either from farms around Moscow, was always quick on his feet. However, he did not or at the Dorogomilovsky market. know much about Russia at that time. He had only seen Russians on television during the women's In Russia he also learned how to prepare and prop- volleyball match during the 1990 Olympic games, erly love traditional Russian meals and dishes from when Peru’s team played the USSR’s team, and the Caucasus: meat solyanka, kharcho, and kholo- when the Peruvian chess player Julio Ernesto Gran- dets. At the same time, however, he admits that his da Zuñiga played against the Russian grandmaster best dishes are Peruvian. “The taste of Peruvian cui- at the time. sine lives in my head,” says Carreras. “I am familiar with Peruvian cooking from my childhood. It is my The Peruvian first encounter with Moscow was not history. Let’s say that I can, of course, learn how to a kind one: he was met with snow, minus-thirty-de- make pilaf. But in order to master cooking pilaf, I am gree weather and unbelievable traffic. “I was really in convinced that you would need to live at least a few shock!” Carreras confided. It was not just the weath- years in a country where there is the centuries-old er that shocked him, however. Even more surprising tradition of cooking pilaf.” were the groceries that Moscow offered. Almost all of them, including meat and fish, were frozen. Back Speaking of Peruvian cooking, Ronaldo highlights its home in Peru, he was used to working with fresh multifaceted nature. “Historically three cuisines have groceries. influenced Peruvian: Spanish, Native American, and African.” After World War II, it was enriched even Nonetheless, he was never struck with the desire to more by Chinese and Japanese cuisines, owing to im- toss everything aside and leave Russia. Moreover, he migrants from these countries. According to Carreras, even got his residency permit during his 11 years liv- Peruvian cuisine today is becoming even more popu- ing in the country. You would need to look at a map lar in the world. In Moscow ambassadors frequently of the Russian Federation in order to recite all the invite him to prepare food for a variety of diplomatic Russian cities where the Peruvian has worked as a receptions at their residences. chef. He has demonstrated his culinary art in Kras- nodar, Arkhangelsk, Ryazan, Vladimir, in Aprelevka, However, Moscow overall is lacking in its representa- near Moscow, and in Yakutia and even Chukotka! tion of Peruvian, and indeed Latin-American, cuisine. At each place he perfected his mastery, just as his And this is despite the fact that there are many cafes mother asked of him. In Chukotka, for example, he and restaurants in the Russian capital, as there should began cooking seviche from red salmon, as well as be in a megapolis. Not surprisingly, Ronaldo hopes to all sorts of his own original dishes from deer meat, open a proper Peruvian and Latin American restau- which unbelievably astounded the locals, who had rant. He is not afraid of competition, as he is sure that never tried such delicacies. “My rule is that you al- his restaurant will not be lost in our city. He has eve- ways need to prepare your dishes using the materi- rything he needs for this: both knowledge and experi- als you have at hand,” Ronaldo explains. According ence. But most importantly, he has passion for what to him, now, unlike in 2007, one can buy high-quality he does. After all, the main secret ingredient in any domestic products. Ronaldo usually goes himself to dish that Carreras makes is love. ■

April-June 2018 CAPITAL IDEAS 63 NOTHING VENTURED Russia is one of the most important and leading markets for Kärcher

The slogan “We are making the world cleaner!” is used by us not only for production by the German company Kärcher, the name of which is quite often taken as a synonym for cleanliness, but it also reflects this concern’s philosophy. Being a world leader in the development and production of cleaning technology, Kärcher makes a wide spectrum of equipment which is used in 65 countries, and the concern’s annual returns exceed 2 billion euros. The general director of Kärcher’s Russian branch, Oleg Minaev described the concern’s work in Russia to Capital Ideas journal.

hen did the Kärcher company come to Russia? of course, they were certain of success, but did not expect this What expectations did the company have for dynamic. the Russian market, and were they justified in the end? Returns in 2011 exceeded 100 million euros for the first time. W The symbolic “sound barrier” was broken, and by 2013 Russia Kärcher’s official Russia branch was opened in 2004, but this became the fourth largest market in the world for Kärcher by was preceded by a preparatory stage. It is probably hard to be- size, after the US, Germany, and France. The main goal was for lieve now, but not many were aware of the concern’s produc- production to be perceived in combination with the brand’s val- tion in the 90’s in Russia. Indeed, even the standards of cleanli- ues, which have their own traditions and rich history. The drive ness were entirely different. I traveled to various cities with a for stable development is one of the fundamental laws for the pressure cleaner and showed people how it worked. Then the basis of the concern’s philosophy. Therefore, along with the de- first truckload came from production and potential distributors velopment of the sales network, social projects, a responsible were sought out. Later the concern’s management said that, ecological policy and high standards of service were important

64 CAPITAL IDEAS April-June 2018 Russia is one of the most important and leading markets for Kärcher

for us. Currently, Russia is one of the most important and lead- B2B clients are composed of industrial and production manu- ing markets for Kärcher. facturers, cleaning and transport companies, hotel and logistics complexes, agricultural companies, state institutes and com- How is Kärcher’s work in Russia organized, which of the munal services. The choice of equipment depends on the spe- company’s structures are active in the Russian Federation? cific task, and the range of solutions is very broad – from de- Are there are any local branches in Russia’s regions, and vices for cleaning with dry ice, self-service washers, sewage and what functions do they fulfill? drinking water treatment systems, to pre-integrated complex solutions for cleaning large cisterns and tanks Aside from the main office, which is located in Moscow, the company has 11 regional branches (Krasnodar, Yekaterinburg, A separate and significant group is household equipment: high Rostov-on-Don, Samara, Volgograd, Stavropol, Tyumen, Sur- pressure washers, vacuum cleaners, garden equipment, glass gut, Sochi, Saint Petersburg, Kaliningrad). Work is conducted and steam cleaners and much more. through a network of dealer centers, which do sale and service. This network covers the entire country, as we are convinced Which well-known Russian companies, firms, or local that good, reliable equipment should be available to all, regard- branches of companies widely use Kärcher’s equipment? less of what region you live in. Please provide a couple of examples.

Today we have 3 logistics centers which guarantee uninter- In terms of fuel and energy companies, we work closely with rupted equipment and parts delivery to more than 100 Kärcher such giants as Lukoil, Surgutneftegas and Taneco. In the met- centers in 60 cities. There are more than 150 service centers in allurgy field there is Evraz,Magnitogorsk Iron and Steel Works 95 cities. This is a fine-tuned system which gives every client and Rusal. Our equipment guarantees the cleanliness of such the most important thing – trust in Kärcher. companies as Kellogg, Cargill, Nycomed, Tarkett, Alfa Laval, Renault, Scania, Coca-Cola, Liebherr, BASF,Toyota, Mercedes, Who is your main client in Russia? Mars, Cherkizovo and Kamaz. In construction, we work with, for example, the Russian branch of the large Europe concern There is no one answer to this question, as all our clients are Strabag; in trade with Magnit networks, Azbuka Vkusa, OBI, divided by sector and focus. Kärcher is the world leader in Kesko and Auchan. Among transport-logistics companies our cleaning equipment production for both household and pro- clients are Russian Railways, Kuehne + Nagel and the Moscow fessional needs. Metro. In the sector of operation and maintenance of buildings

April-June 2018 CAPITAL IDEAS 65 NOTHING VENTURED

we have Chisty Svet, Idalika, ISS, in the hotel and restaurant rado and DNS. Third, there are construction stores (Leroy Mer- business – Marriott, McDonalds, Sodexo and Carlsson. This is lein, OBI, Castorama, Tvoi Dom) and electric tool shops (Bigam, far from the full list, there are also non-commercial companies Enkor). For fans of virtual shopping there are online retailers such as the Hermitage. (like Citylink and Ulmart) and, of course, our own internet store which, by the way, have the option for delivery via company What household equipment from Kärcher is greatly sought ambassadors. In contrast to couriers, company ambassadors after in the Russian Federation? are employees who not only bring equipment to your home, but will also instruct you on how to use it and will demonstrate The most popular category is high-pressure washers. The word other goods which might be useful. “Kärcher” has already become a common noun for this category of equipment – people call all car cleaners this, regardless of the Have the economic sanctions against the Russian Federa- brand. This is better than any statistic for proving Kärcher’s lead tion in any way reflected on Kärcher’s business in Russia? in the Russian market for high-pressure cleaners. The sanctions have had a negative effect on the general eco- This year our window vacuum – one of the most well-known nomic situation in Russia and, naturally, the majority of inter- products which was first patented and introduced to the mar- national companies (including Kärcher) without their own pro- ket by our company – is celebrating its 10 year anniversary. A duction located in the country have been subject to changes in special limited-edition line in black was released especially for the country’s economy. this event. Kärcher has many daughter companies in various regions, In general, the whole household equipment division is develop- including in North America, Africa and Australia. Does the ing: vacuums, steam cleaners and equipment for dry and wet concern plan on opening, for example, a factory in the Rus- cleaning. With the onset of spring demand traditionally increas- sian Federation, taking into consideration that a whole sees for pump stations, irrigation systems and other solutions for ries of western companies active in Russia have moved to- out-of-town houses and cottages. wards localizing production.

What forms of business do you practice? How many shop- The question of production localization is being discussed, but ping centers does your company have in the Russian Federa- currently no decision has been taken. tion. Do you sell online? It is well know that Kärcher traditionally takes part in so- We made sure that the client could acquire our equipment by cially important events for preserving and protecting his- any means convenient for them. First, there is our retail net- torical and cultural legacy, helping to support the cleanli- work “Kärcher center” and our stores in large shopping centers ness of monuments and buildings. Among the company’s (currently there are 5), as well as official distributors – Kareks, large projects are cleaning the Brandenburg gate in Berlin, Chistaya kompaniya, Kristofer, and others. Second, there are the statue of Jesus Christ in Rio-de-Janeiro and many oth- household goods and electronics networks – M-Video, El Do- er architectural monuments. Have similar events taken

66 CAPITAL IDEAS April-June 2018 place in Russia and other countries of the former Soviet Right now projects for supporting large automobile festivals Union? which might take place in Russia are being examined this year. We traditionally act as partners for the Moscow bike parade, ski As a market leader, Kärcher company has been working free of marathons, trophy raids and motocross. Our list even includes charge on preserving historical monuments and buildings for tractor races! 30 years already. By now we have confirmed our competency by participating in more than 100 restoration projects across Well, of course, we also are very proud of our participation in the world: the Hermannsdenkmal monument in Deltmond, the the Olympic Games in Sochi, where Kärcher acted as supplier London Eye in Britain, the colonnade on St. Peter's Square in the for the cleaning services. This was an excellent opportunity to Vatican, Mount Rushmore in the USA, the Statue of Liberty in check our equipment in the most difficult conditions and once New York and many others. more confirm that our devices have an athletic character. The most well-known sports project in the world which Kärcher In Russia, the largest project was the cleaning of the unique his- supports is sponsoring the Dakar rally. torical building, the Moscow Rizhskaya railway station, dedicated to the 180 year anniversary of Russian railways. The building Created to ensure cleanliness and order, your goods make was constructed in 1901 and is one of the largest transport hubs a real contribution for protecting the environment. Does of Russia with a daily carrying capacity of 10000 people. The Kärcher enact any kind of ecological initiatives, including in work lasted two weeks, and cleaning the complex-shaped fa- Russia? cade of 4000 square meters required a unique solution – a hy- draulic tower. The ultimate height at which the cleaning took One of the main principles of the company is the production of place was 16 meters. The work was done by an operator, and ecologically clean and safe goods. Kärcher’s system of ecologi- Kärcher representatives were constantly at the site for super- cal management was the first one in the field that was certified vising and guaranteeing work safety. according to DIN EN ISO 14001 standards. We support ecological projects of a global scale such as the “Clean Water for the I can disclose one secret: right now we are looking at the pos- World” program, which is implemented alongside the World sibility of restoring other historical sites. Wildlife Fund. As part of this program we provide financial support to organizations which build environmental water treat- Kärcher proclaims that one of its key values is a healthy life- ment stations with green filters, mainly in developing countries style. Is there any actual embodiment of this in the compa- and countries with transition economies. ny’s work in Russia? In Russia, our annual subbotniks have become a tradition, during Of course it does because these values are close to and clear to which the company and local residents pick up parks and city every employee. You should see how many people arrive to the plots and clean memorials. This useful undertaking is taking on office on two-wheel transport during the “Bike to Work” event! a growing popularity and contributes to the formation of eco- As sports fans, we always love to support sports events of dif- logical awareness and to the preservation of the environment ferent sizes – both as sponsors, and with personal participation. for future generations. ■

April-June 2018 CAPITAL IDEAS 67 NOTHING VENTURED The Kotwani Brothers: Fate has connected us with Russia

The era of the amusing and terrifying “raspberry-colored jackets” – the trademark clothes of new Russian businessmen in the beginning of the 90‘s- has fallen into the oblivion. A new business dress-code has finally appeared in Russia. Russian businessmen and politicians know now how to dress. They were helped quite a bit in this by the Kotwani brothers, who based their The Imperial Tailoring Co. elite clothing company in Moscow more than 25 years ago.

he story of the brothers’ appearance in Mos- Sammy himself did not make the suits. The operation cow is truly unbelievable. It is so incredible worked like this: Sammy arrived to a country for three that it deserves its own Bollywood, Holly- months with suitcases packed with fabric for suits, wood, or Mosfilm movie. which he showed to clients. They selected the fabric, Sammy made all the measurements, and then he TThe first to arrive to the Russian capital was sent them to Hong Kong. It was there that their high- Sammy, the elder brother in the Kotwani family, in quality men’s suit manufacturing office was located, 1990. At the time Sammy was on business in Belgium. where Indian tailors worked. It should be noted that There he made suits, particularly for employees of Indian tailors in Hong Kong are traditionally in large KPMG, one of the largest business consulting compa- supply. nies in the world. Having met one of the Belgians from KPMG, Sammy asked him “Where can one make money these days, what country is it worth going to?” The Belgian immediately answer “Russia, the market there is developing at a furious pace!”

This was easier said than done. First the Indian needed to receive his Russian visa, which turned out to be something that was far from simple. At the Russian Consulate in Brussels, where Sammy went to get his visa, they told him “You are an Indian, why do you want to get a Russian visa in Belgium? Head back to your country, to Delhi, and request a Russian visa at the Russian consulate there.” However, Sammy’s wish to make his way to the enigmatic country was so strong, that he decided to go down a... different road. He made the acquaintance of the Russian con- sul and made him an amazing suit. The latter thank- fully helped Sammy get his business visa to Russia for an entire year.

68 CAPITAL IDEAS April-June 2018

NOTHING VENTURED

Sammy’s joy could not be contained. At least, at quality English and Italian cloth for suit-making, that moment his joy outweighed his worry. And and a similar number of varieties of English, Ital- he had his worries. The Indian was warned about ian, Indian, and Egyptian cloth for shirts. Nowa- the mafia, which worked in almost every corner days their company’s offices are located in differ- of the country, as well as about the cunning and ent cities around Russia. Moreover, their company beautiful Russian women, who all worked for the has its own workshop. It should be no surprise, KGB... Whatever the matter, Sammy was a brave then, that Sammy Kotwani heads the Indian Busi- person. By the second day of his visit to Moscow ness Alliance, an association of Indian companies he decisively set off to the Moskva casino with his working in Russia. suitcases, packed with various expensive fabrics. Where else in those days of nascent Russian capi- Today the Imperial Tailoring Co. counts 15 thousand talism, could one go in search of wealthy clients. individual clients. Who are these clients? They are After all, practically all business people gathered in business people and politicians, amongst whom Moscow casinos, be they Russian or, as most busi- are more than a few famous persons. The compa- ness people at the time were, foreign. As an ex- ny’s services were sought by, for example, relatives ample, the general director of the Moskva casino of Mikhail Gorbachev. “Who could have thought,” was Vietnamese, and the manager of the gaming recalls Andy, “that on one fine day we would end business was Scottish. up at the dacha of Gorbachev himself, where we arrived to take measurements for the former pres- The night Sammy spent in the casino, it turned ident of the USSR’s son-in-law. The thing is, one out, was not in vain. The Scot ordered 15 suits time in 1987 in India my brothers and I were sit- from Sammy, both for himself and for his team. ting and watching an interesting film on televi- Every costume cost 350 dollars at that time. Sam- sion. Suddenly, it was interrupted, and on screen an my Kotwani’s happiness was boundless. “Judge for unfamiliar person appeared to make some kind of yourself,” says Andy Kotwani, the middle brother, important announcement. That was Mikhail Gor- discussing their incredible story. “In the three bachev. How can it be that this is not fate?!” months that Sammy was in Belgium before his arrival to Russia, he managed to make 5 suits. In However, The Imperial Tailoring Co. sells more Moscow, he managed to get 15 orders within a than just suits and shirts, but services as well. few hours!” Once every half year the company offers its clients free dry cleaning and, if the client lost or gained Not surprisingly, Sammy Kotwani quickly reached weight, they refit the suit. the conclusion that, as he says, “Russia is my country!” He set himself up in a separate apartment on In answer to the question, how the attitudes of the first floor, and the Indian tailor’s work took off. Russian men to their suits have changed over In answer to the question, that in the grim 90‘s, the years, Andy Kotwani answered “They have when Kotwani began his business in Moscow, changed a lot. Before, you could say that there did he never encounter criminal life, he answered was absolutely no kind of business etiquette. “Yes, there was everything. One time my brother’s For example, people used to wear jackets with Lada, which he parked right in front of the win- sleeves that reached to the middle of their palms. dows of the building where he was renting an Moreover, very often they did not bother to re- apartment, was stolen.” move the labels from their sleeves, assuming that they should be visible. Ordering a suit, people did Nonetheless, three years later, in 1993, his brothers, not even think about money. Now Russian men, Andy and Jimmy, also tailors, joined him in Mos- especially young ones, follow fashion and know cow. It should be said that the Kotwani brother how and where to wear something. The price and do not belong to a dynasty of Indian tailors. The quality of a suit now matters to clients.” only relatives of theirs who were tailers was their uncle, who taught them the very same mastery Yes, over their almost 30 years of being in Moscow in the art that they have been demonstrating in the Kotwani brothers have seen not only have the Russia for almost 30 years. business dress-code has changed, but also how Moscow itself has changed. “I watched Moscow Interestingly, 85% of their clients at the time they being born,” says Sammy Kotwani, who is now a started their business in Moscow were foreigners, citizen of the Russian Federation. Soon his broth- and 15% were Russian. Currently, however, that ers will also have their Russian citizenship. “It is percentage has changed to 95% Russian and 5% thought that after death a person either goes to foreigners. The Kotwani brothers offer their cli- heaven or to hell. My brothers and I are already in ents in the region of 10 thousand varieties of high- heaven,” Andy says about life in Russia, smiling. ■

70 CAPITAL IDEAS April-June 2018 Slava Polunin: EXPERT TIPS

photo www.sk.ru How to achieve the impossible What can a clown teach? Quite a lot, if his name is Slava Polunin. The legendary clown and creator of the Academy of Idiots, whose art has been admired worldwide, recently presented at the Skolkovo innovation center.

hen you glance at the 67-year old Slava Polunin In accomplishing the impossible, Polunin is assisted by another or listen to him talk, you understand that life is a principle: “Do that which you love with those who you want to game. More accurately, life is a performance, a bril- hug. This is very important. Nothing will work if done with those liant performance, as Polunin himself says. He or- you do not want to hug.” ganizes this performance just as he does every one Wof his shows. It is enough to note how Slava carefully set up the According to the artist, he never criticizes or reprimands those decorations before his performance at Skolkovo. First he decided with whom he works in his team. “I only praise everyone, from that he suddenly did not like how the wooden boat with oars was which people get so much energy that they could overturn a set up on the improvised stage, then it was the color and con- mountain,” he explains. Moreover, as soon as he begins one or figuration of the chairs around it... “A space needs to be filled with another project, he calls upon everyone to fantasize and give warmth,” the artist noted. “You need to feel its flow, its energy. The word to the most unbelievably, crazy ideas. He listens to ev- most important thing is for there to be harmony in everything.” eryone, and never says no to anyone. There is another one of his principles: “If you see that a person is working – walk away, Polunin reaches harmony with the help of his principles. These don’t interfere. If you see that a person is relaxing – go up to principles are so good that he who understands them is greatly them and help.” helped by them. This is not just in day-to-day life, but in business as well. Not surprisingly, Slava was invited to discuss these prin- Polunin also tries to surround himself with happy people. “Whin- ciples at the Skolkovo innovation center, where mind, creativity, ers and cynics will come flocking by themselves,” Slava notes. Pol- and originality are appreciated. Slava himself noted during the unin is convinced that “de facto, positive attracts positive, and not gathering at Skolkovo technopark that he was “an economist by the other way around. As has been determined, physics formulae education, but a fool in life.” where positive attracts minus do not work with people. The more positives you gather, the more positives you generate, no doubt Creativity are originality are two things that the “fool” Polunin has about it.” enough of to spare. During the beginning of his performance he recounted how he managed to collect 3 million dollars (!) during The artist can reject any project, no matter how interesting the late 1980’s in order to conduct his own international street fes- or successful it is. He has been doing so for 7 years: he closes tival in the spring and summer of 1989, in which more than 100 an old project and opens a new one. Polunin calls this prin- artists from 120 countries participated. Starting in Moscow, they ciple “legs in the water.” Here is how he describes this law: traveled through all of Europe, turning the continent into one the- “You need to sit at the bank of the river, let your legs touch atrical space. Interestingly, one and a half months after this gran- the water, doing nothing, sitting and thinking: what have you diose show the Berlin Wall collapsed, following which the Velvet done these years? Why? Did you need to do that? Where are Revolution took place in Prague. Of course, there is no connection you going? Going one way forever is boring, uninteresting, and between these historical events and Polunin’s show. Though, who not right. You should question yourself and ask: are you happy knows? Laughter is a powerful weapon! or not?”

Regardless, in answer to the question “How did he manage to col- Slava Polunin’s principles work so amazingly well, that he has lect 3 million dollars at that point?” Slava responded “When you do reached such a high level that he no longer looks for money for his what you love, you accomplish the impossible.” This, seemingly, project, but rather money looks for him. He gives birth to unique is Polunin’s main principle. Not surprisingly, Slava does only that projects with ease. Could it be any other way for a person for which is impossible. whom every day is a holiday? ■

April-June 2018 CAPITAL IDEAS 71 FACEThis and TO FACE that We are Russians, and How do Russians differ from Americans? How does an American differ from the French? How do Americans differ from the French? In quite a lot of ways, but most of all they differ from each other in their culture.

he word Culture in this case must be the European portion of the country and beyond written with a capital “C.” That is because the Urals there was no life. Judging by the statistic we are talking here not about the ability to mentioned above, this is, unfortunately, accurate. hold a fork and a knife properly, dance the Nevertheless, regardless of a state’s geography, the waltz or understand Picasso’s paintings. most important thing is Culture. Take for example Instead, we are talking about Culture as a value T Europe, where so many various peoples live in a system of one or another people. Included in this compact space. They all have the same geography, understanding are language, traditions, habits, and, but their Cultures are different. Are the French similar finally, mentality. As such, Culture is the basis of any to their neighbors in Germany or in Belgium? Are the society, defining its politics and its economy. Swiss similar to Italians or Hungarians? Even the This idea is not new. In any case, great thinkers spoke Spanish and the Portuguese, residing on the same on this in the XIX century. Robert de Montesquiou Pyrenees peninsula, are different in their ways of life was an example of one of these thinkers, speaking on and mentality, or, in other words – in their Culture the impact of not only Culture, but also Geography Fernando Diaz-Plaja, author of the Spanish bestseller on the politics and economics of a country. “The Spaniard and the Seven Deadly Sins,” sees, for This truth, it would seem, is simple, but in Russia it example, the essence of Spanish national character has always been completely rejected. At first it was in pride, which is accompanied by arrogance, the Marxists. In every philosophy textbook published haughtiness, and vanity. A Spanish person is in the Soviet Union “geographical determinism” was driven by honor and dignity, pushed frequently to spoken of as being groundless. This philosophical passionate confrontation and even to extremism. school was labeled as being not just untrue, but Cervantes spoke of this in his “Don Quixote.” The also reactionary. Of course, geography does not Portuguese are softer, calmer, more patient and decide everything, but there is still a grain of truth more flexible. One can take as an example the story in this idea. Regardless of what anyone says, people of the Portuguese admiral who, during a standoff who live in cold place are more insular, sullen, and with the Spanish fleet, unexpectedly invited the laconic. People in warm places are more open, Spanish admiral to a meeting. “How many ships emotional, and cheerful. That is not even speaking do you have,” he asked him, to which the Spanish of how climate impacts the history, economy and admiral replied two hundred. The Portuguese way of life of a country. admiral, to the surprise of all, said “But I have only 100 vessels. This means you win.” After which, he Be that as it may, according to official statistics, returned to his vessel and led the fleet homewards. less than 30 million of Russia’s 140 million people live beyond the Urals, which divide Russia between Take Brazilians as another example. Regardless of Europe and Asia – that is, in Siberia. The remaining 110 the fact that they live on the same continent as million – the lion’s share of the population – prefer Argentinians, Bolivians, Peruvians, and Chileans, to live in the European portion of Russia, where the they differ greatly from their Central and South winters are not so harsh and the climate as a whole American neighbors. “The New York Time’s Marlise is much more advantageous. If one recalls, Margaret Simons, who has lived and worked in Brazil and Thatcher pointed this out when, in the capacity Mexico for a number of years, described Brazilians of Prime Minister of Great Britain, she arrived to to me as being like Americans in their optimism, Pictures by Anastasia Saifulina Pictures Moscow for a meeting with Mikhail Gorbachev in can-do attitude, belief in the future – and unlike a beautiful fur hat. According to those close to 10 Hispanic Americans, for example, the Mexicans, who Downing Street, she declared outright that, in her are so focused on the past. And Landon Lockett, an opinion, a decent life in Russia was possible only in American who taught for five years in a Brazilian

72 CAPITAL IDEAS April-June 2018 that explains a lot University, told me that “Hispanic Americans are to be like them],”another famous director declared bundles of complexes, preoccupied with ‘dignity.’ with emotion. He was, coincidentally, Andrei Brazilians are casual” notes Lawrence E. Harrison Konchalovsky, Nikita Mikhalkov's brother. in his book “Who Prospers? How Cultural Values Nonetheless, today, 33 years after the beginning Shape Economic and Political Success. of perestroika, rational people are beginning to Why is this so? Because Brazilians have a different understand that Russia must go its own way. This history, which serves as the foundation for its idea has been loudly expressed by experts in the Culture. It is enough to say that in contrast to the topic – members of the traditional Gaidar forum. We majority of South and Central American countries, must complete economic reformation based, most Brazil reached its independence through peaceful of all, on our own History, traditions, the customs means, its king being the representative of the of our people, and lastly, on our mentality – that Portuguese dynasty ruling at that time. is, based on our Culture. We must go down this difficult and seemingly lengthy road to prosperity. In short, no matter what one says, Culture defines In any case, no one will do it for us. ■ Poltics and Economy, and not the other way around. “We are Russians, and that explains a lot,” the wise Oscar-winning Russian director Nikita Mikhalkov pointed out. Unfortunately, politicians and economists in our country for a long time have not understood this, making a mess out of things as a result of this ignorance and lack of culture. This mess still has yet to be cleaned up. When the Soviet Union failed, those in power tried to take Russia in every which direction, whether it be according to the Swedish model, or according to the Japanese model, or according to some other model. We behaved as monkeys, trying to blindly imitate and adopt the ways of others. At the same time, this was done completely without knowledge of the fact that, in order to follow the Swedish model, it was at the very least necessary to be a Swede, and at most to have the same History and Culture! Quite recently, one of the leading figures in Russia’s government agreed to the point that he declared “Russia... should become the second Norway!” Is it not funny? Why should Norway not want to become the second Russia?! “Why is it that the English do not want to be like Russians, but we exhaust ourselves [trying

April-June 2018 CAPITAL IDEAS 73 BETWEEN PAST AND FUTURE Pioneer of civilized

What do Moscow and Scotland have in common? Quite a lot. In any case, Scots have played no minor role in the Russian capital’s history. It was them, for example, who taught Russians how to conduct civilized business: sales personnel should smile, you should be polite with your clients, you should not deceive them...

The Scottish trace Let’s begin from the fact that the great Russian poet Mikhail Lermontov, who, by the way, was born in Mos- cow, had Scottish roots. His Scottish ancestors – namely the soldier George Lermont – appeared in Russia in the middle of the XVII century. Although Michael Andreas Barclay de Tolly was not born in Moscow, Scottish blood also flowed in the veins of this legendary Russian com- mander’s veins. His family also first appeared in Russia in the XVII century. Jacob Bruce (born as James Daniel Bruce) – was Peter the Great’s closest devotee, also of noble Scottish birth. The famed architect Charles Cam- eron, who was invited to Russia by Catherine the Great, was also from Scotland. The two businessmen Andrew Muir and Archibald Mirrielees too are Scots. They arrived to Russia in their own right in the first half of the XIX century, though to Saint Petersburg and not to Moscow. Andrew and Archibald grew famous, however, precisely in Moscow, where in the end of the century they opened www.pastvu.com/4980 a store quite unique for Russia – Muir & Mirrielees. This store is still, a century later, well known to both Musco- vites and guests of the city as TsUM.

The three-floor store opened their doors at the very start of Petrovka street. The location was a very fortu- itous choice: nearby is Kuznetsky Most, a street filled with expensive stores, and the chique Petrovsky Pas- sage was also located nearby. A unique store

The store traded in lady’s hats and various goods. Fame came to the store immediately and spread across all of Russia – from Vladivostok to Warsaw, which at that time was part of the Russian Empire. www.pastvu.com/71065

74 CAPITAL IDEAS April-June 2018 business in Moscow

Archibald Mirrielees Andrew Muir

People spoke of Muir & Mirrielees as a store where fashion clothing stores. Those ladies who loved to one could acquire goods of the highest quality. How- bargain could be appeased only by the fact that the ever, one did not need to go into the store itself to buy store sometimes – as a rule, during the summer – had its goods. One could order them from the catalogue sales. In order to prevent the sales personnel from which came out four times a year and was distributed deliberately overcharging the client and to stop the free of charge. The item ordered needed to cost more consumer from bargaining, the prices were shown di- than 25 rubles. It should be noted that buying goods rectly on the item itself. De facto, one could say that via catalogue was a novelty for its time. the Scots taught Russians how to conduct civilized business! There were a lot of things new and unheard of in Rus- sia in general at Muir & Mirrielees. Business in the store was conducted at the highest level. The sales Reconstruction in English Gothic style personnel were distinguished for their unbelievably polite behaviour, and items that the purchaser did not However, November 24 1900 a grave misfortune be- like could be exchanged. Such service had never been fell the store. A large fire erupted at the building of the heard of in Moscow up to that time! store on the corner of Teatralnaya square. This was the second fire to afflict the building, but this time the Muir & Mirrielees set fixed prices for their goods, entire store burned down during the course of the which distinguished their store from similar Moscow night, leaving merely the walls.

April-June 2018 CAPITAL IDEAS 75 BETWEEN PAST AND FUTURE www.pastvu.com/355563 www.pastvu.com/511354

The project for the construction of the new Muir & about it. It was mentioned in, for example, in Mikhail Mirrielees store building was entrusted to the ar- Bulgakov’s work “Heart of a Dog.” Professor Preo- chitect Roman Klein. The Scottish ancestry of the brazhensky sends Zina to Muir’s for a collar for Sharik. store’s owners inspired the architect to create the «…Here are 8 rubles and 15 kopeks for the tram, head store building in English Gothic style. The building’s to Muir’s, buy a nice collar and chain,” wrote Mikhail metallic construction and frame were created by Bulgakov in “Heart of a Dog” engineer Vladimir Shukhov. The overhaul and reconstruction was conducted by a German firm. The Based on this, it should be assumed that Mikhail Bul- use of new European and American technology al- gakov himself was a client of this store. In any case, lowed for the creation of spacious rooms with enor- it is certainly true that Anton Chekhov loved to buy mous windows. Here, too, Muir & Mirrielees were what he needed at Muir & Mirrielees. “Anton Chek- pioneers – reinforced concrete was used for the first hov was a frequent guest of this store. He bought time during the construction. hats, writing paper, and furniture for his house in Yalta here. He very much loved this store and even named The new seven-floor building was opened on Christ- his two dogs in honor of the owners of the store,” we mas, 1908. The store was equipped with the latest in read in the book Trips around the city with Pavel Lyu- technology. Consumers could use electric eleva- bimtsev. Muir & Mirrielees achieved the height of their tors, and the reference and waiting rooms glory with the opening of their new store. By 1913 were equipped for comfort. By 1910 this the story had 80 departments. Based on the was already the largest building in turnaround of their goods and stock and Moscow which traded in not just how the store was equipped, Muir & female hats and other goods, Mirrielees matched London depart- but also furniture, dishes, ment stores, even such as Harrolds. rugs and toys.

For children, a trip to Muir & Made well – sold well Mirrielees was a true holiday. Breath-taking toys were sold After the Bolshevik Revolution in 1917 here, with tags such as “Wooden the store was nationalized and soon after horse with fur,” “Somersaulting bear re-opened under the name “Mostorg.” The in fur” … Scottish founders of the store – Andrew Muir and Archibald Mirrielees – during the People everywhere not only spoke large social-economic changes left Russia of the famed store, but also wrote and returned to their homeland.

76 CAPITAL IDEAS April-June 2018 tageous socialist agreements with industrial enterprises or with their factories, with the motto “made well – sold well.” Moreover, it became a tradition to have Quality Days, during which the department store’s employees visited the enterprises and conducted joint meeting, at which they passed on the consumers’ complaints about the quality and production of the goods, and also made suggestions. 70 of the store’s employees received the “Excellence in So- viet Trade” award.

During World War II, military barracks were set up in the spacious rooms of TsUM. After the war the building was returned to TsUM, and separate factories were added to the department store which released a wide range of goods made especially for TsUM by order. Moreover, amongst the usual in-demand goods, TsUM also sold: wicks for kerosene, mica, shopping bags with wooden handles and children’s brushes. In total the store carried up to 17 000 name goods daily, from needles to women’s fur coats.

www.pastvu.com/355564 The store’s development seemingly never ceased. During the 1970’s a new building was built nearby and TsUM acquired its current name in 1933, which is an the sales area expanded even more. abbreviation for Central Universal Store. Incidentally, there were many stores in the USSR with the name However, TsUM changed even more dramatically in TsUM, and they were located in practically in every recent times, as recently as 2003. The old Soviet inte- capital of the 15 republics which were part of the So- rior was redone in alignment with the modern stan- viet Union. The most famous of them, of course, was dards for department stores, and collections from the one in Moscow. leading fashion houses appeared in the store. Today, TsUM is a fashion store not in any way inferior to in- Incidentally, the store’s new name was not picked up ternational equivalents. ■ immediately. For quite some time continued to call it by its first name of Muir & Mirrielees. In any case, during Soviet times they continued to introduce new systems of business in the TsUM store. Thus in 1933 TsUm for the first time in the country organized experimen- tal and demonstrative universal trade in high-quality manufactured goods at higher prices. Employees of the store constantly sought new forms of business and progressive methods of sale able to secure for the clients the best opportunities for choosing their goods to quicken the purchasing process.

For example, the TsUm group introduced the method of self-service. Further on a new step was taken in the development of progressive methods of business – payment for the goods could be payed to the cashier at the register set up on the counter. Thus, from year to year, owing to the initiative and creativity of the department store’s employees and experience from abroad and at home, new and more effective methods of business were spread, perfected, and created at TsUM.

With the goal of more complete satisfaction of the

consumer’s demands, TsUM signed mutually-advan- www.tsum.ru

April-June 2018 CAPITAL IDEAS 77 Travel Where great Russian authors lived and wrote Moscow has always been home to many great people. Writers and poets wrote their creations in old mansions and narrow alleys, got married in Orthodox churches, and dedicated their writing to different city streets. It’s important to be familiar with works by Pushkin, Bulgakov, and Gogol, but it’s just as important to learn more about their lives. Apartment locations, furniture, favorite routes and gathering places can help us better understand their ideas, thoughts, and farewell messages. There are almost thirty literature museums in Russia. They include real homes of famous writers, memorial expositions, and museums that are simply dedicated to their writing. We’ve put together a list of the most interesting spaces. Vladimir Dahl Russian State Literary Museum

Vladimir Dahl Russian State Literary Museum House-Museum of Alexander Herzen (1976), is the largest literary museum in Russia and the Lermontov House-Museum (1981), the ones of the biggest literary museums in the Tolstoy Museum-Apartment (1987), the Mu- world. The museum has a unique collection seum of Mikhail Mikhailovich Prishvin in the with over 500,000 museum items, including: village of Dunino (1980), the Pasternak House about 20,000 documents and manuscripts; Museum in Peredelkino ( 1990), the K.I. Chu- over 2,000 paintings; over 90,000 origi- kovsky House Museum in Peredelkino (1995), nal and printed graphics; 7,500 crafts and the Silver Age Museum (1999), and the Sol- sentimental items that belonged to Russian zhenitsyn Museum in Kislovodsk (2014). writers; 110,000 negatives and photographs; Moreover, the collections of the State Mu- about 30,000 audio and video materials; seum are represented in the permanent his- 90,000 rare books. The museum’s research torical and literary exposition "A. S. Pushkin library includes 175,000 volumes. Address: Trubnikovsky Pereulok 17, bldg. 1, and the Russian literature of the Silver Age m. Smolenskaya, Arbatskaya The museum was established on July 16, 1934. "(since 1999), as well many other exhibitions, Phone and fax: +8(495) 695-44-94, It was supposed to house “scattered manu- each of which could serve as the basis of a Website: http://goslitmuz.ru scripts of fiction and biographical works,” as full-fledged literary museum. well as "everything that is available in Mos- In the absence of the main building in the cow in various museums" on the subject of spring of 2014, the museum opened an ex- literature. During the first seven years of the hibition called "Literary Museum: a memory museum's existence, more than 3 million of the future" in 11 halls of the Grand Palace items of storage were collected: manuscripts, in the Tsaritsyno Museum Reserve. Guests books, documents, photographs, paintings, could see over 1,200 rarities that show the graphics, arts and crafts, sentimental items. potential variety of topics related to the history of literature and book culture of the To date, the museum's collection includes 11th – 21st centuries. over half a million items, which have filled up 11 memorial expositions now known to In December 2014, the building on Shelapu- Russians and foreigners alike: the Museum- tinsky Pereulok opened after renovations. It Apartment of F.M. Dostoevsky (part of the was erected at the end of the 19th century for State Museum since 1940), the House-Muse- Savva Morozov. The building houses several um of Anton Chekhov (1954), the Museum- museum departments that have long been in Apartment of A. V. Lunacharsky (1964), the need of a modern depository. ■

78 CAPITAL IDEAS April-June 2018 Lermontov House-Museum

Opened on February 19, 1981 as part of the matching sentimental items and furniture. State Literary Museum. This house, which There are also items from the Lermotov col- was rented by the poet’s grandmother Eliza- lections of the State Literary Museum, includ- beth Arsenyeva on August 1, 1829, is where ing family portraits, Lermontov’s drawings Lermontov lived until the summer of 1832. and paintings, and books autographed by the For the 200-year anniversary of Mikhail Le- author. rmontov, the museum was renovated. It re- opened its doors on May 18, 2014. The exposition houses the most precious relic of the museum – a self-portrait of This is the only memorial house dedicated to the poet. There are two books with Ler- Mikhail Lermontov in Moscow that has been montov's autographs. Familial portraits of preserved until the present day. It is an in- Lermontov's mother – Maria Mikhailovna, valuable artefact and a significant exhibit of his grandmother Elizabeth Alekseyevna Address: Ulitsya Malaya Molchanovka 2, m. Arbatskaya the museum. The museum’s exhibition tells and the poet himself in early childhood; Phone: 8 (495) 691-52-98, 8 (495) 691-18-60 the story of Lermontov’s studies at the Uni- a watercolor portrait of his father, Yuri Hours of operation: Tuesday, Friday, Saturday, versity Noble Boarding School, the Moscow Petrovich, painted by Mikhail Yurievich Le- Sunday —11.00am – 6.00pm, Imperial University, and of the poet’s intense rmontov himself. There are other portraits Wednesday, Thursday — 11.00 am – 9.00pm, Monday – closed spiritual and creative life. Website: http://goslitmuz.ru/museums/dom-muzey-m-yu- painted by Lermontov's as well – people he lermontova/ The memorial part of the house consists of was close to, drawings, oil paintings with restored interiors of an 1830s mansion, with views of the Caucasus. ■ Sergei Yesenin Museum

Sergei Yesenin is a poet who lived a short life A tour of the museum will help visitors get to (he was 30 years old when he died). In this know the life and work of Sergei Yesenin. The period of time, he managed to write hun- tour encompasses the writer’s entire creative dreds of beautiful poems, both short and journey. There is an accent on the period of long, prose, and reflections on spiritual life, time he spent in Moscow (1912 – 1915), but philosophy, religion, the Russian revolution, the Petersburg period is showcased as well cultural events in Russia and abroad, and the (1915 – 1918), Yesenin’s collaborations with greatest works of literature. the Imagists (1918 – 1921), as well as the time he spent in the Caucasus. The Sergei Yesenin museum opened in Mos- cow in 1995, for the poet’s 100-year anniver- During the tour, visitors will be able to see sary. This house in Moscow was Yesenin’s things that belonged to the poet, photo- only official address. His father lived here for graphs, audio recordings of Yesenin reading Address: Bolshoy Strochenovsky Pereulok 24, bldg. 2, m. 30 years, and the writer himself was regis- his own work, as well as rare 20th century Serpukhovskaya, Dobryninskaya tered at this address from 1911 to 1918. The newsreels. Tours with guides take place Tel: 8 (495) 954-97-64, 8 (495) 958-16-74 literature and memorial part of the exhibition on Thursdays at 7.00pm and Fridays at Hours of operation: Wednesday, Friday, Saturday, contains Yesenin’s personal items, manu- 5.00pm. Guests need to sign up in advance. Sunday – 10.00am – 6.00pm, Thursday – 1.00pm – 9.00pm, scripts and lifetime editions, rare documents, You can listen to the tour in Russian, Eng- Monday, Tuesday – closed. and photographs of the poet and his life. lish, and German. ■ Website: http://esenin-museum.ru Mikhail Bulgakov Museum

Mikhail Bulgakov came to Moscow in the Bulgakov is still considered to be Moscow’s fall of 1921 and his romance with the city greatest writer of the 20th century. The old began immediately. Bulgakov wrote a lot in parts of the city come alive in his writing. Af- Moscow. In 1922-1924, his stories about the ter reading his work, we can easily pick out city and the series of essays “The Capital the old streets, homes, and squares of the in a Notebook” were very popular. Bulga- Moscow he loved to take walks in. His books kov loved going for walks and explored ev- are filled with places in Moscow, and Mos- ery street in Moscow. He knew everything cow in turned is full of Bulgakov’s stories. about the city, main squares and back-end Sculptures of Koroviev and Behemoths, char- alleys alike. He also liked skiing with friends acters from the novel “The Master and Mar- along the Moscow River and Neskuchny garita,” greet visitors in front of the museum. Sad. Bulgakov’s room is a unique space where the Bulgakov’s Moscow is first and foremost the writer spent several incredibly productive Address: Bolshaya Sadovaya 10 (entrance through the arc), area around the Patriarch’s Ponds and Pre- years. This is where he wrote “A Young Doc- entrance 3, 4th floor, apt. 50, chistenka. The author’s first permanent ad- tor’s Notebook,” “The Fatal Eggs,” “D’Iavoliada,” m. Mayakovskaya, Pushkinskaya, Tverskaya dress was Bolshaya Sadovaya 10. He lived “Morphine,” and “The White Guard.” Phone: 8 (495) 699-5366 here for almost three years (1921 – 1924). There are tours every Wednesday at 6.00pm, Hours of operation: Monday – closed, Tuesday, Wednesday, Right now, the former communal apartment 7.00pm, and 8.00pm. Entry is free every third Friday, Saturday, Sunday – 12.00pm – 7.00pm, No.50 houses the Mikhail Bulgakov Museum. Sunday of every month.■ Thursday – 2.00pm – 9.00pm Website: http://bulgakovmuseum.ru April-June 2018 CAPITAL IDEAS 79 TRAVEL The Alexander Pushkin Museum on Prechistenka

This is one of the most widely-known cul- graphic art (prints on paper) created in a tural centers in Moscow and Russia. The variety of engraving techniques – wood, historic mansion on Prechistinka houses metal, linoleum, flat print from stone. the permanent exhibitions "Pushkin and The rare books fund has over 46,000 pub- his Era" and "Pushkin's Fairy Tales," ex- lications in Russian and foreign languages. hibition halls, a reading room, and con- The museum has almost all of Alexander cert and conference halls. There are also Pushkin’s lifetime editions. Pushkin: from museum funds with open storage of rare the poem "Ruslan and Lyudmila" (1820) books, painted, graphic and miniature to the third edition of "Eugene Onegin," portraits from the 18th – 19th centuries, which was published in early January 1837. porcelain, bronze, art glass and ceramics, and genealogical materials. Printed in small format in color litho- graphed covers with a very large circu- The museum’s collection has over 4,000 Address: Prechistenka 12/2, m. Kropotkinskaya lation (5,000 copies), the novel "Eugene decorative items, which were produced Phone: 8 (495) 637-56-74, Onegin" immediately sold out after the by Russian and European masters of the Hours: 10.00 am – 6.00 pm (ticket booth open until 5.30pm), poet died. The museum’s collection in- 18th and 19th centuries. There are also Thursdays – 12.00pm – 9.00pm (ticket booth open cludes 14 copies of this edition, including items related to the end of the 19th and until 8.30pm). Entry is free every third Sunday two with typographical covers. Particu- 20th centuries, usually associated with of the month, Monday – closed larly interesting is a copy with notes on Pushkin's jubilees. Website: www.pushkinmuseum.ru each page from Pushkin’s contemporaries The collection of prints (print graphics) and people who owned the book in later is one of the largest and most important years. Two rare copies of the 1827 edition museum collections in terms of artis- of “Bakhchisarai Fountain” (both in beau- tic, historical and cultural significance. It tiful leather bindings) can also be found in Gogol’s House includes about 20,000 items: works of the museum. ■

In the very center of Moscow, on Nikitsky mask in the memory room. All other items, Boulevard next to Arbatskaya Square there like furniture and interior decorations, are is an old city manor that dates all the way secondary to the main item in the room. back to the 17th century. It houses the only The museum has real historical items and museum dedicated to Nikolai Gogol in Rus- works of art, along with things that be- sia. The cast-iron gates lead toward the longed to Gogol. courtyard, where there is a statue of Nikolai Gogol worked on the second volume of Gogol made for his 100-year anniversary. On “Dead Souls” in two rooms on the ground the right there is an empire-style house with floor. According to Gogol, the work was sup- an arcade. Gogol spent the last three years of posed to reflect all of Rus. In Moscow, where his life here. He died on February 21, 1852. To he spent the last period of his life, the writer the left of the monument there is a shed that prepared the second collection of his essays. contains the homestead’s utility rooms. Address: Nikitsky Boulevard 7a, m. Arbatskaya He worked on his spiritual prose. In 1832, the young author made a success- Tel: 8 (495) 690-5881, 8 (495) 691-4547 Everybody who came here usually found Go- ful debut with “Evenings on a Farm near Di- Hours of operation: Wednesday – Friday – 12.00pm – 7.00pm, gol working, standing in front of his tall desk kanka.” His work was embraced by all famous Thursday – 2.00pm – 9.00pm, Saturday, Sunday or rewriting a manuscript at the table. The 12.00pm – 6.00pm, Last day of the month – closed Moscow writers of the time. In Moscow, author often read the text outloud, playing Website: http://www.domgogolya.ru Gogol used to meet with the most famous out entire scenes. people of that time, including writers, poets, artists, and composers. The second floor of the exhibition is an introduction to Gogol’s books, as well as research Gogol started living in the house on Nikitsky about his life and art. There are portraits of in 1848 at the invitation of count A. Tolstoy, the homeowners, engravings, lithographs a prominent statesman, and countess A. Tol- with images of places that are in some way staya, a princess of Georgia. Tolstoy and his connected to the author. wife belonged to a really small group of people who were close with Gogol. The Gogol’s House fund contains about a quarter of a million items. It’s diverse in terms The museum’s exhibition is located in of content. Readers can look through the the suite of rooms on the ground floor of catalogues and find books, magazines, and the manor. Each room has an object that newspapers on just about any subject. serves as the focal point. It’s a symbolic installation that reflects the main theme The collection is based on over 250 rare books of the room. There is a “chest of wander- from the 19th century. Gogol’s House orders ings” in the hallway, a fireplace in the liv- rare editions from second-hand book sellers ing room, a desk in the office, an armchair and cooperates with publishers that publish in the “Inspector” hall, and a Gogol’s death books in the humanitarian sphere. ■

80 CAPITAL IDEAS April-June 2018 Book Museum

The Russian State Library in Moscow has The museum exhibits unique Russian and a museum you can visit without a library foreign editions from the 15th – 19th centu- card. This peaceful, silent kingdom has ries, printed graphics, items that belonged shelves packed with the rarest volumes. to famous writers, and items related to the There are displays with ancients scrolls and art of writing. papyrus. Aside from books, there are also Here you can get acquainted with the pro- items associated with their creation. totypes of the modern book: papyrus, clay The museum has the most valuable items tablet, unusual forms of oriental books of the largest Russian library. You can also from palm leaves. The exposition presents trace the key stages of the development of a facsimile edition of the Arkhangelsk Gos- the press on original samples. The book is pel in 1092 and the Gutenberg Bible from not only the most important medium of the 15th century. There are also elaborately information, but a real work of art. There decorated first European printed books and Address: Vozdvizhenka 3/5, building G, entrance 3, 4th floor, is something here for both rare book lovers the first books with the Cyrillic script of m. Biblioteka Imeni Lenina, Aleksandrovsky Sad and people who are interested in visiting Schwaipolt Fiola, Francis Skaryna and Ivan Phone: 8 (499) 557-04-70, ext. 26-72. Hours: Monday – Saturday – 10.00am – 8.00pm, unusual museums in general. Fedorov. Sunday: closed. The museum is located in the reading room There are also the first (including lifetime) Entry is free for all visitors of the department of rare books. The idea editions of works by famous scientists Website: http://www.rsl.ru of opening such an institution arose in 1918, and writers: Cervantes, Newton, Lomono- and the first permanent exhibition on the sov, Goethe, Pushkin, Mendeleev, Einstein. history of the development of the Russian Books from collections of collectors, Rus- and foreign book world, was opened 5 years sian and foreign monarchs, unusual publi- later. It initially included more than 2,000 cations on silk and a cork, volumes less than publications, from ancient incunabula to a centimeter – you can get acquainted with fresh editions of Gosizdat from the 1920s. all these items on a tour of the museum. ■ Fyodor Dostoyevsky Museum-Apartment

One of the first literary museums in Moscow a thousand items connected to her hus- and the first Dostoyevsky museum in the band. The museum’s collection also includes world. The museum was established on No- the hospital hallway, which exhibits Dos- vember 11, 1928, in honor of the writer’s birth- toyevsky’s pen – an item that symbolizes the day. It became part of the State Literary Mu- writer’s fate. seum in the 1940s. The total area of the space Dostoyevsky’s museum in Moscow has two is 235 square meters, and over 7,000 people exhibitions. In the first one, visitors can learn visit the museum every year. The museum is about the writer’s life and family. There are all located in the north wing of the former Mari- kinds of rare items, furniture, dishes, glasses, insky Hospital for the poor, which was built hats, calendars, and the writer’s very first in 1806 in the style of late Russian classicism. book, which he received as a present when On October 30 (November 11 if we go by the he was a child. The rooms have a unique at- new calendar) 1821, Fyodor Dostoyevsky was mosphere; it feels like the great writer still Address: Ulitsya Dostoyevskovo 2, m. Dostoyevskaya born in the right wing of this same hospital, lives there. On top of the desk there are notes Tel: 8 (495) 681-10-85 in an apartment his father occupied at the and works written by Dostoyevsky, as well as Hours of operation: Tuesday, Friday, Saturday, time. Fyodor spent the first 15 years of his life writing utensils. Special attention is paid to Sunday — 11.00am – 6.00pm (ticket office open until 5:30pm), in the apartment on Novaya Bozhedomka. It the writer’s small Bible, which accompanied Wednesday, Thursday – 11.00am – 9.00pm was named after him in 1954. In May 1837, he him throughout his entire life. (ticket office open until 8:30pm), Monday – closed. left for Saint Petersburg to go to engineer- Website: http://goslitmuz.ru/museums/muzey-kvartira-f-m- ing school. It’s worth noting that the build- The second exhibition is Fyodor Dostoyevsky’s dostoevskogo/ ing has never been reconstructed. the walls, literary world, and is located in the living stoves, and other elements look like they did room. Here you can find all of Dostoyevsky’s during Dostoyevsky’s lifetime. The buildings works, photographs and autographs of the adjacent to the memorial apartment were author and his contemporaries, manuscripts, reconstructed in 1979 – 1982. The apartment’s engravings and lithographs of Moscow, valu- historical interior was recreated based on the able portraits of Dostoevsky's grandmother memoirs of Dostoyevsky’s younger brother. and his great-grandfather. Family music eve- He left behind detailed descriptions of the nings took place here. apartment, including drawings and sketches. The Dostoyevsky museum is often visited by The work of commemorating Dostoyevsky actors who play the writer on stage. It has was started by the writer’s widow, Anna also been visited by famous directors such as Dostoyevskaya. Aside from editions of Luchino Visconti, Andrzej Wajda, and Krzysz- Doestoyevsky’s works, she collected over tof Zanussi. ■

April-June 2018 CAPITAL IDEAS 81 TRAVEL Leo Tolstoy Museum. Literary Exhibition on Prechistenka.

The small and cozy museum on Pre- and “Leo Tolstoy and his era.” They con- chistenka showcases portraits of Leo Tol- tain the first daguerreotypes, Tolstoy’s stoy from different time periods, original first sketches, the first editions of his manuscripts, and items from the life of work and the first illustrations for his the great Russian writer. books, the monumental works of great artists and sculptors, modern editions of The main literary exhibition, dedicated to Tolstoy's works, and other items connect- the life and work of Leo Tolstoy, is located ed to Tolstoy and the people who were inside the house built in 1817. It was de- close to him. signed by the architect A. Grigoriev. The famous architect rebuilt a lot of Moscow The room dedicated to Leo Tolstoy’s “War after the fire of 1812. and Peace” has valuable exhibits, such as images of prototypes for characters, bat- The wooden building is an architectural tle scenes, and documents from that time Address: Prechistenka 11/8, m. Kropotkinskaya monument of the first quarter of the 19th period. Tel: 8 (495) 637-74-10, book tours: 8 (495) 637-74-10 century and is a unique example of post- Hours of operation: Tuesday, Thursday –12.00pm – 8.00pm, fire Moscow. There is a suite of ceremo- The Tolstoy museum has an extensive Wednesday, Friday, Saturday, Sunday –10.00am-6.00pm, nial rooms with plafond paintings, white collection. It contains about 550,000 ex- Monday and last Friday of every month – closed. columns and bas-reliefs on the facade. The hibits. Several thousand negatives with Website: http://tolstoymuseum.ru house, the outbuilding and the small court- his image, as well as a large number of yard are the perfect example of an urban books that contain almost all of his works noble estate. Special attention is paid to in- in both Russian and foreign languages teriors and ceiling paintings. Be sure to stop were discovered here. and look up so you don’t miss out! The museum also contains literature The museum has rotated through several about Tolstoy and people who were close exhibitions through its 100-year history: to him, as well as over 4,500 items that “Leo Tolstoy is the whole world,” “His soul belonged to him and his family mem- encompasses everyone and everything,” bers.■

Anton Chekhov House Museum

Anton Chekhov, who was born in Tagan- and sister. The family was not wealthy, rog, ended up in Moscow and his fate and Chekhov’s literary work was the only became intertwined with the capital. In source of income. The literature exhibi- Moscow, the future great writer cultivat- tion halls shows visitors how the author ed his talent. gradually evolved from a small press writer to a creator of significant literary On Sadovaya-Kudrinskaya 6, there is a works. house-museum of the great 19th century playwright Anton Chekhov. The Chekhov The office contains items from a dis- museum opened 50 years after the writer tant past: Chekhov’s desk, a pair of can- passed away, in 1954. As of today, this is dle holders shaped like dragons, fishing the second largest Chekhov collection in items, and an inkwell shaped like a horse. the world. The largest collection is the Here Chekhov not only wrote stories and Chekhov House Museum in Yalta, Crimea. plays, but also saw patients from noon to Address: Sadovaya-Kudrinskaya 6, bldg. 2, m. Barrikadnaya 3.00pm. He dedicated the rest of his time This two-story stone wing, build in 1874, Tel: 8 (495) 691-61-54, 8 (495) 691-38-37 on art and literature. Hours of operation: Tuesday, Friday, Saturday, was the writer’s home from August 27, Sunday – 11.00am – 6.00pm (ticket office open until 1886, until his departure to Sakhalin in The museum contains lifetime editions of 5.30pm), Wednesday, Thursday – 11.00am – 9.00pm April 1890. It was here that he wrote his Chekhov’s work, a rare photo collection (ticket office open until 8:30pm), Monday – closed plays “Ivanov,” “Leshy,” and “Bear,” the of the writer and his surroundings, items Website: http://goslitmuz.ru/museums/dom-muzey-a-p- stories “Steppe,” “Lights,” “Boring Story,” from the Chekhov family, and a collection chekhova/ and many others. of theatre posters and phototypes. The “dresser-house,” as Chekhov called it, The museum will interest both Chek- hosted the most famous Russian writers, hov fans and those who are interested in artists, actors, and musicians. learning more about life in Russia at the end of the 19th century. The memorial space of the house, which was restored in accordance with sketches The museum holds tours in Russian and and recollections of the writer’s brother English. ■

82 CAPITAL IDEAS April-June 2018 Ostrovsky House Museum

The house-museum of the Russian play- Contemporaries used to call Ostrovsky wright Alexander Ostrovsky in Moscow is “the knight of theatre.” An in-depth a branch of the theatre museum. In this knowledge of the lives of actors, the house, located between Malaya Ordynka stage, and acting psychology enabled him and Golikovsky Pereulok, Alexander Os- to create plays dedicated to the theatre: trovsky was born on March 31 (April 12), “The Forest,” “Talents and Admirers,” and 1823, into a family of a lawyer. “Bez Viny Vinovatye.” Every room has its own exhibition Ostrovsky’s plays, which are scenically theme – “Zamoskvorechye,” “Officials effective, artistically diverse, and linguis- and Noblemen,” “Psychological Drama” tically complex, were used to educate (Larisa’s room), “The Actor’s Room.” many generations of Russian actors. The playwright took an active part in staging One of the rooms in the house-museum is his plays, creating a new realistic style of Address: Malaya Ordynka 9, m. Tretyakovskaya dedicated to the scenic history of Ostrovsky’s acting and stage art. Tel: 8 (495) 953-8684, 8 (495) 951-1140 play “The Storm.” Both sides of 1859 poster Hours of operation: Wednesday, Thursday – 1.00pm – about the Maly Theatre premiere features There is a special room dedicated to the 9.00pm, Friday, Saturday, Sunday – 12.00pm – 7.00pm, photos of the first actors that performed “The embodiment of Ostrovsky’s plays on Monday, Tuesday – closed. Storm” at Maly and Alexandrinsky theatres. stage after the Revolution. The produc- Website: http://www.gctm.ru/branch/dmo/ The play at Maly Theatre was a tremendous tions highlighted here feature some of success. This room also has sketches of cos- the biggest names in theatre: Stanislav- tumes and decorations from the 1916 show, sky, Nemirovich-Danchenko, Meyerhold, which was featured at Alexandrinsky Theatre. and Tairov. ■

Marina Tsvetaeva House-Museum

The house where Marina Tsvetaeva’s second child moved abroad in 1922. The museum is located was built in 1862. house gradually deteriorated. The building is an excellent example of The museum’s exhibition tells the story of a comfortable Russian homestead. The Marina Tsvetaeva’s family. The house has interior is fairly unusual: small rooms, a Research Library, the Archive of Russian narrow hallways, a bunch of ladders. The Writing from Abroad with works by Ad- poet moved here with her husband and amovich, Kuprin, Bunin, and many other daughter in 1914. She soon met other po- writers, a space for concerts, and a Poet ets of the Silver Age: Sophia Parnok and cafe. The ground floor of the museum Osip Mandelstam, who fell in love with has ticket booths and exhibition halls for Marina. temporary exhibitions. In the basement The three years that followed were the there is a wardrobe and a kiosk with Ts- Address: Borisoglebsky Pereulok 6, bldg. 1, m. Arbatskaya, happiest for Tsevtaeva. The Revolution, vetaeva's books. The floor above houses Smolenskaya which began in 1917, brought chaos, pov- photographs and manuscripts. In the liv- Tel: 8 (495) 697-53-69 (for tours) erty, cold, and hunger. She gave birth to ing rooms, the interior and design have 8 (495) 695-35-43 (for events) a second daughter. Her husband left for been restored to look like they did when Hours of operation: Tuesday–Wednesday – 12.00pm – Rostov to volunteer in the army. The new Marina Tsvetaeva lived there. 7.00pm, Thursday – 12.00pm – 9.00pm, Friday-Sunday – 12.00pm – 7.00pm, Monday, last Friday of the month: closed government turned the house into a com- The third floor of the museums has small Website: http://www.dommuseum.ru munal home, the beautiful furniture was rooms with low ceilings. The interiors used as firewood, and the family moved here and in a few other rooms have been into the kitchen – the warmest place in restored to their pre-Revolution state. the house. Soon, things were so bad for Some rooms have been turned into ex- Tsvetaeva and her two children that she hibition spaces with sentimental items, was forced to hand her daughters over to photographs and letters written by the an orphanage, where one of them died. poet. There is a separate hall dedicated to Unable to withstand the new conditions her husband Sergey Efron, and officer of any longer, Marina Tsvetaeva and her the white army. ■

April-June 2018 CAPITAL IDEAS 83 LIFE&CULTURE www.hollywoodvampires.com www.hollywoodvampires.com Johnny Depp and Alice Cooper

This spring and summer in Moscow promise more than a few interesting theatrical premiers and the arrival of an unbelievable number of world music stars from all kinds of genres: from classical to jazz and heavy metal. Charles Aznavour, Ozzy Osbourne, and Johnny Depp with the Hollywood vampires...

ut first let’s start from fans of photography photos, which were selected by unanimous vote, be- and design. One can visit the Vinzavod Center ing included in the Best of Russia exposition. Over 10 of Contemporary Art until the middle of May years the exhibit has been visited by over a million to see the jubilee exhibit of the largest-scale people, and the competition has included more than photo research project Best of Russia – 2017, 300,000s photographs and dozens of photographers. Bwhich concludes the project’s ten-year cycle. One The youngest participant in the project was six years can see works from the 2017 winners and the 100 old, and the oldest-92. best photographs on Russia of the past 10 years. This project included works from both famous and ama- The Palisandr gallery is hosting the “Italian Design” teur photographers. Every year the photo competi- exhibit until April 20 via support from the Italian Em- tion was held with several nominations, with the best bassy in Russia and the Italian Institute of Culture in

84 CAPITAL IDEAS April-June 2018 What surprises will Johnny Depp and his Hollywood vampires bring to Moscow?

Moscow. The Gallery is developing the idea of design as an independent forms of art, and is presenting the best samples of world collecting design, in this case from Italy.

What awaits theater fans this spring? A new performance in April by one of the most well-known directors from the Soviet school, Mark Zakharov. The maestro is already 84 years of age, but he still works in the Lenkom theater, which is headed by him. Fal- staff and the Prince of Whales promises viewers to be a farce in the vein of Shakespearean tragedy and comedy. According to the plot, one friend in the story is a jester who speaks with utter honesty, while the The Best of Russia exposition second is a despot who can not handle the truth. The spectacle has Mark Zakharov’s trademark satirical in- tonation. In addition, Lenkom will also have dances, music and opulent decorations and costumes.

The Moscow Art Theater has once again decided to put a classic on its stage, this time one of the most well- loved short stories in Russia, Three Sisters, in a very loose interpretation by the main provocateur of contemporary Russian theater, the young director Konstantin Bogomolov. The details are a strict secret until the day of the premier. Only the top women of Russian theater and film are being cast: Yuliya Snigir, Aleksandra Rebe- nok, Darya Moroz, and Svetlana Ustinova. Meanwhile, the Queen of Spades is playing at the Bolshoi Theater. The great opera by Tchaikovsky was undertaken by the

April-June 2018 CAPITAL IDEAS 85 LIFE&CULTURE

The London Handel Orchestra www.facebook.com

director Rimas Tuminas. The premier for this production The 40th Moscow International Film Festival is taking was launched in February and aroused quite a lot of in- place at the end of April, from the 19th to the 26th. The terest. The Vakhtangov Theater’s art director worked on film festival is one of the six largest film festivals in the this production for over a year. Those who are familiar world. Usually it takes place during the summer, but this with with the Lithuanian director’s work know that all time it was decided to move it to the spring because the of his stage productions are a philosophical statement, Russian capital, as many other of the country’s cities, is very discreet and very elaborate. taking part in the World Cup games this summer.

Classical music fans can also expect quite a bit of interesting events this spring. Of all musical instruments, perhaps the greatest and most mystic is the

www.nnp.de organ. What other instrument is able to summon such a storm of emotions, such bliss and calm in its listeners? Admirers of organ music on the 16th of April can enjoy the virtuoso Gabriel Margeri’s performance at the Grand Hall of the Moscow Conservatory. The musician completed his training at conservatories in Nice, Paris, and Lyon. Gabriel is a laureate of international competitions and currently teaches in national conservatories in Lyon and Paris. He is among the staff of the Saint-Paul-Saint-Louis church, which is located n France’s capital.

Jazz fans will get a surprise on April 24 in the Tchaiko- vsky concert hall. As part of his world tour, the contemporary jazz star Chick Corea from America is visiting Moscow. Corea became famous due to his voice, performance style, and unquestionable talent. There is currently no great authority on piano jazz than Corea, who has been nominated more than 50 times for a Grammy award and has received the prestigious award more than ten times. Gabriel Margeri 86 CAPITAL IDEAS April-June 2018 The Moscow House of Music on April 22 is presenting a concert by the London Handel orchestra with organ and chorus. Usually this program gathers thousands of viewers in London’s Royal Albert Hall, and now those in Moscow will get the opportunity to see it. The first part will feature Vivaldi “Four Season”, one of the most popular classical music productions by the musician and composer. The talented English violin- ist Robert Gibbs will perform as soloist. In the second part the Bolshoi Theater’s chorus, orchestra, and solo- ists, as well as the organist Yestyn Evans will perform the immortal Requiem by Mozart – one of the most intriguing of musical productions in the world. Musi- cians from the Hendel orchestra will be in historical dress and periwigs from the XVIII century, as if the viewer was transported by time machine to the past.

Who in the world has not heard of the French chan- sonnier Charles Aznavour? April 28 the 93 year-old singer, who still tours, will be on stage at the Kremlin palace. By the way, the first time Charles arrived to Moscow was in 1963 – 55 years ago! It turns out that the maestro has a dream. In one interview, Aznavour admitted that “Red Square is one of three or four places in the world, where I would very much like to sing.” Such a concert project has been discussed more than once, and the singer hopes to “return to this idea.” Az- www. mmdm.ru navour’s wish is easily explained – he was, after all, Al Di Meola born to an Armenian emigre family in Paris. His father was a musician, though he opened his “Caucasus” res- the US. In 2018, the Vampires headed on their world taurant in order to feed his family, in which both the tour, in which, aside from Russia, they also visited Po- cuisine and the music matched the name. “In Russia, land, the Czech Republic, and Germany. I never feel as if I am abroad,” says Aznavour. “Every- thing is as if I were home with my family.” A treat awaits fans of James Blunt, energetic artist and owner of a lyrical voice, in Crocus City Hall on May In the Moscow House of Music on May 20 the com- 16. The singer and composer writes music in both rock poser arranger, and one of the most influential guitarists in the world, living legend Al Di Meola will be performing. The concert will take place as part of his new world tour. “My new album Opus marked a new stage in my life,” says Di Meola. “For the first time I wrote music while absolutely happy. I have a great relation- ship with my wife, I have a wonderful daughter and a beloved family which inspires me very much every day.” In 2009 Al Di Meola was included by the journal Classic Rock into the list of greatest guitarists of all times, and has been declared the best guitarist and best jazz guitarist in the world 14 times.

Did you know that Johnny Depp is more than just an actor? He will demonstrate this on May 28, 2018 on the Olympiysky stage, where he will perform together with “Hollywood Vampires.” This group consists of famous rock stars horror king Alice Cooper and Aeros- mith Guitarist Joe Perry. The story of the band began in 2015, when Alice Cooper and Johnny Depp met on the scene of Dark Shadows by director Tim Burton. Depp gave an outstanding performance as a vampire awakening in his coffin from his 196 year slumber in the 80‘s. Alice and Johnny became friends and now their band performs concerts both within and outside Charles Aznavour April-June 2018 CAPITAL IDEAS 87 LIFE&CULTURE May 30 will be an exciting day for fans of hard rock: Deep Purple will be performing at the Olimpiyskiy sports complex. As part of its world tour, the legendary group is presenting its last album “Now What?!” which was made in honor of the 45-year anniversary of the groups creation. Of course, fans will also hear hits from the 70‘s, popular to this and day and performed at all of the group’s concerts, such as Lazy, Fireball, Silver Tongue, and of course, the band’s most well-known piece Smoke on the Water.

The idol of the younger generation, Lorde, will be singing on May 31. The artist counts two Grammy’s amongst her accomplishments. Ella Marija Yelich was born in 1996 and her family roots extend to both Ireland and Croatia. The young girl studied singing from five years of age. Her first contract was signed Universal Music Group when she was thirteen years old. The first album “Pure Heroine” was written in the studio when the artist was sixteen. The album went platinum in the United States.

Business superstar, one of the most well-sold artists, idol of millions, handsome, charming, and energetic and one of the most well sold artists, Enrique Iglesias

www.facebook.com is coming to Moscow on June 1. He is performing at Lorde Crocus City Hall as part of his world tour. Enrique has an unbelievable number of hits. One of them in par- and pop genres. After his hit success “You’re Beauti- ticular, however, Bailando from the 2014 album SEX ful,” he was even compared to Elton John. & LOVE is one of the top 10 most popular videos on Youtube of all time, with 2.4 billion views. The art- As early as May 24 in Moscow, the group Morcheeba will ist’s overall album sales exceeded 170 million copies. be performing in Moscow. The British musicians include By the way, 42-year-old Enrique became a father not a variety of styles in their performances: rhythm-and- long ago to two charming twins. On December 16, son blues, trip-hop, and disco. The collective was formed in Nikolas and daughter Lucy were born to Iglesias and 1995 and from that time until 2003 dark-skinned vocalist Russian tennis player Anna Kournikova. Not long ago Skye Edwards, with an awe-inspiring voice, performed Enrique posted a video of him endlessly kissing his lit- with the band. Seven years later she has returned to the tle daughter for several minutes. The clip had over one band. Now fans can hear her perform at the concert. million views within an hour.

Enrique Iglesias 88 CAPITAL IDEAS April-June 2018 www.olimpik.ru Deep Purple

Also on the first day of summer promises Moscow with his audience. Zhvanetsky also performs one the arrival of Ozzy Osbourne – the famous front- genre: a one-man performance. By the way, a few man from Black Sabbath, lover of songs about the years one Odesites re-named the Boulevard of the living dead and similar occult phenomena, and one Arts to Zhvanetsky Boulevard in honor of the well- of the godfathers of heavy metal. This is far from known resident. This decision was timed by Odes- Ozzy’s first trip to Moscow, as he first visited the sa city council deputies to the 75-year birthday of capital of Russia in 1989. At that time he took part the writer, who is currently 83 years old. However, in the Rock Against Alcohol and Narcotics festival. as always he is in commission, full of energy and June 1 2018 at Olimpiyskiy, Ozzy, who in December strength. His performances are often shown on tel- of this year will be 70 years old, is giving his concert evision, but watching Zhvanetsky on TV and seeing as part of his farewell world tour. The tour will last him in person are “two big differences.” ■ until 2020. “People constantly ask me about retire- ment,” says Ozzy. “This will be my last world tour, though maybe I will have another couple of concerts somewhere.”

On June 6 a grandiose present awaits all fans of opera: the Moscow performance of Montserrat Caballe Her- www.ozzy.com self, who over the course of many years has remained a well-known star of the world opera scene.

Meanwhile, on June 10 in the Tchaikovsky concert hall, all who would like can meet Russia’s most famous satirical writer Mikhail Zhvanetsky. In an interview with the New York Times he once said: “Humor is the defense of a weak person. He can't punch a government official in the face, so he goes home and does it through his writing."

The writer was born in the Black Sea resort city of Odessa, where almost every resident has a very unique sense of humor. Zhvanetsky carries in his old, worn-out portfolio more than a few scintil- lating and funny stories which he is ready to share Ozzy Osbourne April-June 2018 CAPITAL IDEAS 89 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.

НАЖИМАТЬ НА ВСЕ ПЕДАЛИ – nazhimat’ na vse pedali. (To press all the pedals) Explanation: To do everything possible and even the impossible to carry out a task, a promise…

ЗАКИНУТЬ УДОЧКУ – zakinut’ udochku. (To cast a line) Explanation: To drop a hint by the way of suggestion, trying to find out.

ПОБЫВАТЬ В чьей-либо ШКУРЕ – pobyvat’ v shkure. (To be in someone else’s hide) Explanation: To be in the same unpleasant position or adverse circumstances as someone else.

ЛЕГОК НА ПОДЪЕМ – logok na podyom (Easy on the rise) Explanation: Always ready and willing to go somewhere or to do something.

СЕМЬ ПЯТНИЦ НА НЕДЕЛЕ – sem’ patnits na nedele. (Someone has seven Fridays in one week) Explanation: Someone who easily and frequently changes his/her mind, mood.

РОДИТЬСЯ В СОРОЧКЕ – rodittsa v sorochke. (To be born with a shirt on) Explanation: To be always successful. Pictures by Anastasia Saifulina Pictures

90 CAPITAL IDEAS April-June 2018 ПОСТАВИТЬ кого-либо В ТУПИК – postavit’ v tupik. (To put someone in a blind alley) Explanation: To puzzle, to bewilder someone.

ПОД НОСОМ – pod nosom. (Under one’s nose) Explanation: In one’s presence, directly in front of one.

УЙТИ С ГОЛОВОЙ во что-либо – uyti z golovoy. (To go headlong into something) Explanation: To be totally involved in something.

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

ВЫЙТИ СУХИМ ИЗ ВОДЫ – vyyti sukhim iz vody. (To come out of the water dry) Explanation: To escape deserved punishment.

КАК ИЗ РОГА ИЗОБИЛИЯ – kak iz roga izobiliya. (As if out of the horn of plenty) Explanation: In great plenty.

April-June 2018 CAPITAL IDEAS 91 FOOD&DRINK

SAXONE+PAROLE: Everyone who comes becomes a friend

Brad Farmerie 92 CAPITAL IDEAS April-June 2018 In order to open a restaurant in the center of Moscow, where there is unbelievable competition, you need to be brave and sure of yourself. This is precisely the kind of person that the experienced restaurateur Brad Farmerie and his Moscow partners are. Five years ago they opened their restaurant Saxone + Parole on Spiridonievsky Pereulok, which in this short Everyone who period of time has become a cult sensation in the Russian capital. comes becomes a friend

n Russia, as frequently happens, everything began from a good drink, or, more accurately, at a bar. Saxone + Parole was opened in Moscow as a bar open in the evenings only. However, it soon began to resemble its, let’s say, “older brother,” the Saxone + Parole restaurant in Manhattan, New York. This restaurant belongs to AvroKO Hospitality Group, which is owned by the IFarmerie brothers. These brothers, however, are not just businessmen. One of them – Brad Farmerie – is a Michelin-star chef. It is a good combination – a feel for business and refined gastronomic tastes, is it not? It was this feel for business that led the Farmerie brothers to name their restaurant Saxone + Parole. ‘What does that mean?” asks everyone who has ever heard of it. They are very surprised when they learn that Saxone + Parole were two race horses, well- known in the USA in the XIX century. Well? This creative name made the restaurant’s sign – two horses looking at each other, famous both in New York and in Moscow. (The brothers plan to open their third restaurant in Oakland, New Zealand.)

Insofar as the Moscow Saxone + Parole is part of a franchise, everything in it is the same as the New York restaurant of the same name. The difference is practically impossible to spot, no matter how hard you try. It has the same comfortable designer interior with fireplaces, the same rich, diverse American-Asian menu. The menu, however, is not exactly the same. “Yes, the menus are a bit different, which is easy to understand,” says Pavel Fedorkov, 30-year-old chef in the Moscow restaurant. “The fact is that it is hard to find certain ingredients in Moscow – groceries, herbs, spices, which are not a problem to buy in New York.

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94 CAPITAL IDEAS April-June 2018 In this case, we change them out with something similar. Of course, the quality of the dishes does not suffer as a result.”

Regardless, the quality does not suffer in any way, under any conditions. Quality for Saxone + Parole is their key word. This mark of quality is on everything, from the attentive service to the careful preparation of dishes, where every detail is important. It is not surprising that those who come to the restaurant, according to Pavel, do not like when they are called clients. “They prefer a different, warmer word – friends,” the chef notes, smiling.

They feed their friends, naturally, from the heart. Those who first came to the restaurant do not need to take long to consider the menu. You can safely order anything. Who could refuse baked marrow bones with capers and parmesan, pumpkin soup, the seafood tower, which includes oysters, shrimp, salmon sashimi, smoked mussels, or beef cheeks, lamb saddle, not to speak of real New York steak?

Brad Farmerie controls the quality so that Saxone + Parole’s friends are never disappointed in their favorite restaurant. Oh yes, he flies in from New York twice a year to check on the restaurant and taste-test everything. “Every one of his trips is a colossal event. We get prepared for it and truly wait for this event, which is important for each and every one of us,” Pavel Fe- dorkov relates. He, by the way, speaks with Brad quite frequently. As soon as he needs to consult with Brad about preparing one or another kind of dish, Pavel gets in touch with Brad by Skype and discusses the problem. Pavel is assisted in cooking by 16 people who are able to serve around 200 people at a time, which the restaurant’s main dining hall, fireplace hall, and bar are able to accommodate.

Saxone+Parole’s bar is its own story. It is not by ac- cident that everything began here. There really are Pavel Fedorkov, 30-year-old chef in the Moscow restaurant

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cocktails here for every taste. Moreover, they are updated four times a year. The bar offers not just classic cocktails, but also non-alcoholic and des- sert cocktails. In addition to all this, Saxone + Pa- role also offers cocktail fanatics an unbelievable service, called “Bring your own bottle.” Cocktails which you enjoy during tasting – which takes place every first Wednesday of every month – are poured into your own personal bottle, which then has your name written on it and is placed in a shelf in a special locker. There the bottle can be kept for a few months if, of course, you and your friends do not drink it before then! This is easy to do, in so far as the bartender – 29-year-old Oksana Zhidkova – is a true wizard, who not only knows her business to the finest details, but also loves it. Every one of her cocktails is a work of art, where the secret ingredient that Oksana adds without fail is passion. ■ 29-year-old Oksana Zhidkova is a true wizard

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Take aim carefully and you’ll rarely miss Russian proverb