STRATEGIES FOR BUSINESS IN

The only jewel which will not decay is knowledge

A PROPOS

This issue of “Capital Ideas” focuses on two main topics himself, but all members of the Politburo. This is why - health and education. What could be more impor- foreign diplomats, journalists and businessmen who tant? After all, health and education are the strength worked in Moscow often flew to for something and reason of society. Without these things, we cannot as simple as a filling. move forward. When it comes down to it, what is the This is no longer a necessity. Moscow has a lot of pri- purpose of all our socio-economic transformations and vate clinics, medical centers with wonderful equipment reforms if these things do not serve to improve the na- and highly skilled professionals. Moreover, it is no longer tion’s strength and reason, the ability to set goals and a rare occurrence for foreigners to come to for reach them? medical treatment. “Na zdorovie,” as say.

Not so long ago, Russians didn’t think much at all There is also a lot of diversity in today’s education sys- about their health and education. After the collapse tem. The CEO of a major foreign transportation com- of the , Russian people had to focus on pany, a German from Hamburg, praised the opportuni- simply surviving and getting by. The nineties were an ties presented by the Russian capital. “There are great especially difficult time, when it seemed that human opportunities to get an education in Moscow,” he said, life was not valued at all. Russia was in shambles. “You can send your kids to a good Russian school or a People couldn’t even buy food and medicine at stores British or German school. You can’t do this in Hamburg. and pharmacies. I remember how shocked I was when There are only German schools.” I heard that surgeons from one Russian hospital ran Yes, Moscow was always famous for its education out of scalpels and were forced to perform surgery system. Back in 1957, when the Soviet Union launched with razor blades. the first satellite into space, the US made the decision to Still, I can’t say that medical care in the USSR was change its education system, specifically in terms of the great before either. According to a confes- way technical and natural sciences were taught. Russian sion from the legendary physician Yevgeniy Chazov, universities were always among the best in the world. normal dental care in the USSR was practically non- The brain drain Russia has been experiencing is, of existent until the end of the 70s: there was no anesthe- course, a negative phenomenon. We must do everything sia during treatment! When Soviet leader Brezhnev had we can to stop it. On the other hand, this phenomenon problems with his teeth, two dentists from serves as proof of the fact that the education system in were invited to Moscow. They helped not only Brezhnev Russia is very good.

Sergo Kukhianidze Editor in Chief

[email protected] CAPITAL IDEAS Founder: Department for External Economic and International Relations of the Government of Moscow Address: , 13, Moscow, 125032. Ph: +7 (495) 633-68-66, Fax: +7 (495) 633-68-65 E-mail: [email protected] www.dvms.mos.ru Moscow Official Editorial staff: Editor-in-chief – Sergo Kukhianidze Production crew of the edition: Elena Egorova (deputy editor-in-chief), Our special, Tatyana Akimova, Gennady Charodeev, Vladimir Dolmatov, Marina Ershova, favorite city Evgeny Khokhlov, Sergei Levin, Pavel Lukyanov, Marina Ogorodnikova, Moscow is 869 years old Anastassia Paloni, Vladimir Smelov, Dmitry Sokolov, Anna Tomkins, Marina Urshina 6 – 10 CAPITAL IDEAS STRATEGIES FOR BUSINESS IN MOSCOW

Publisher: Moscow Center for International Cooperation 12 – 19 CEO: Sergei Anikanov Address: 105005, 68/8, build.1, Baumanskaya str., Moscow, Russia News Phone: +7 (499) 267-46-56 E-mail: [email protected] Economic aspects of General Partner: National Review Ltd cooperation between CEO – Sergei Oposhnyanskiy Phone.: +7 (495) 784-69-71 Moscow and Düsseldorf E-mail: [email protected] Consulting – Gennady Charodeev, Evgeny Khokhlov Days of Astana in Moscow Design – Robert Saifulin Photo editor – Victoriya Oposhnyanskaya Page layout – Alexander Saifulin Moscow and Genoa sign Assistant – Nadezhda Ratanova Cooperation Agreement Distribution – "Trans-Media" Ltd Acknowledgements to: PHOTO – www.mos.ru, www.dvms.mos.ru, ITAR TASS Agency, RIA-Novosti, The Capital of Slovenia Getty Images Russia, companies and organizations, represented in the issue. Hosts Days of Moscow If you wish to get new issues of Capital Ideas, please, apply to: [email protected] The magazine is registered with at the Federal Authority of Legislative Control for the First Time in Mass Media and Cultural Heritage Protection. Media registration certificate ФС77-53716, issued April 26, 2013. All reproduction permitted only with the Editor’s permission and reference to ‘Capital Ideas’. Distributed free of charge Published with support from the Department for External Economic and International Relations of the Government of Moscow Circulation : 7000 Signed into print 05. 10. 2016 Face to Face What’s New Education 20 – 25 Thomas Geisel: Trust is the foundation Face to Face Deutsche Schule Moskau of our relationship The Mayor of Düsseldorf Thomas Geisel Stable improvement This school is called Deutsche answered our questions in an exclusive Isaac Kalina, Minister of the Government SchuleMoskau and operates under interview with Capital Ideas of Moscow and head of the Department the German embassy in Russia. It was of education of the city of Moscow, founded in 1961. 400 pupils and students 40 – 43 answered our questions in an exclusive from Grades 1 to 12, two classes at each interview with Capital ideas level, are currently attending the school. Moscow in words 26 – 30 38 – 39 44 – 45

31 City’s Graph Moscow Education in Numbers

32 – 36 Face to Face Positive changes Alexei Khripun, minister of the Moscow Government and head of the Department of health of the city of Moscow, answered our questions in an exclusive interview with “Capital Ideas”

37 City’s Graph Moscow health care in numbers

October-December 2016 CAPITAL IDEAS 3 Nothing Ventured Wellbeing Moscow Global To Russia for our Festivals on Arbat Money shouldn’t be the end goal wellbeing! are to be regular The devaluation of the and The government of Philippines is keen on accelerating of business the Western sanctions have had business interaction with Moscow in fields as diverse Lorenzo Getti is a 28-year-old Italian, a positive effect on the development as commercial launching of telecommunication father of three children, who is of medical tourism in our country. satellites and nanotechnology, not to omit buying successfully managing his own cafe and President of the Russian Association Russian poultry and, in turn, selling tropical fruits shop that sells Italian DaLorenzo products of Medical Tourism Konstantin like dried mangoes. Carlos D. Sorreta, Ambassador in Moscow. The secret to his success is Onishchenko talked about who visits of The Philippine Republic in Russia, sat down for an being in love with his work, working long Russian medical clinics and why in an exclusive interview with Capital Ideas. hours and a big, sincere smile. interview with Capital Ideas. 46 – 49 56 – 59 64 – 67

50 – 54 60 – 63 68 – 69 Nothing Ventured Nothing Ventured Management Russians love All those terrible Useful connections Mercedes-Benz stories about russian The City Agency for Investment Management is celebrating its 5-year and we love Russia tax officials are anniversary. It was established in 2011 Capital Ideas talked about highly exaggerated as an organization that specializes in weekdays at Mercedes-Benz attracting investment to Moscow and Russia with the Jan Karol Madeja, Ernstjan Rutten from the Netherlands working with investors. the company’s CEO helps Europeans find their way through the Russian tax laws. 70 – 71 Moscow Vocabulary

4 CAPITAL IDEAS October-December 2016 Life&leisure Life&Culture Between past and future Music Museums: Foreign doctors Fall in Moscow: Glinka, Tchaikovsky, for russian rain and snow are Prokofiev and more Here is an interesting historical fact: Russian no hindrance to art Moscow has a lot of unique music monarchs frequently trusted foreigners with Those who aren’t afraid to brave museums to be proud of. After all, their health. Why? Foreign doctors were the fall or winter weather and are a lot of great composers that are through to be more skilled, and the fact that ready to get out of the house will internationally known as legendary they didn't speak Russian well meant that be awarded with plenty of great artists lived in the Russian capital. they couldn't take part in palace intrigues! experiences. 72 – 75 78 – 82 86 – 91

76 – 77 84 – 85 92 – 96 This and That Interview Food&Drink Songs help us build Yuri Rost: “BJORN”: and live I love this city… It’s easy to be happy! It’s hard to find a country where He is perhaps the most famous It may seem that it’s almost impossible people love songs and singing as much photographer in Russia, the winner of to surprise Moscow with new delicious as Russians do. It is no wonder that many awards and titles. For half a century food. Over the past few years, a lot of songs in Russia are referred to as now he has been taking pictures of famous excellent establishments where you can “the soul of the people.” and regular people. Every one of his photos get a sumptuous meal have popped up has a story behind it - short or long, funny all over the city. However, the recently- or sad. In an interview with Capital Ideas, opened restaurant “Bjorn” stands out Yuri Rost talked about Moscow and the even against the backdrop of such a philosophy behind his art. booming culinary scene.

October-December 2016 CAPITAL IDEAS 5 MOSCOW OFFICIAL

Our special, favorite city

6 CAPITAL IDEAS October-December 2016 rom the bottom of my heart, I want to wish you happy City Day! For all Russians, Moscow is a special, beloved city. It is dear to both Muscovites and those who live thousands of kilometers away - dear to our entire gigantic country,” “FVladimir Putin said. The Russian President called the capital one of the most beau- tiful cities in the world and said that it belongs to the people: “With each passing year, Moscow becomes more beautiful and the city environment becomes more comfortable. The interests of Muscovites and the city’s guests are always taken into con- sideration before any reconstruction projects take place on the parks, squares and boulevards.”

The transport infrastructure is also undergoing improvement. “As you know, the is open already, and we are actively building new metro stations,” Vladimir Putin pointed out.

In his address, Sergey Sobyanin noted that none of these ac- complishments would have been possible without contribu- tions from city residents. “Most importantly, we need to say Our special, favorite city thank you to Muscovites, the capital’s veterans. Thanks to your hard work, in spite of the economic crisis, different sanctions and problems, Moscow continues to develop rapidly. We are Moscow is 869 years old building roads and junctions, metro stations, kindergartens and schools, hospitals,” the Mayor of Moscow said. The solemn ceremony for the opening of Moscow Special attention is being paid to beautifying the capital. “We City Day kicked off on , on September are reconstructing old parks, erecting new ones, and overhaul- ing streets. With each passing year, Moscow is becoming a 10. Russian President Vladimir Putin and Mayor more comfortable city for people to live in. All of this is being of Moscow Sergey Sobyanin extended their warm accomplished thanks to your hard work, Muscovites, your tal- ent, professionalism and, most importantly, your love for the wishes to the city residents. city you live in,” Sergey Sobyanin said.

He also thanked the Russian government and Vladimir Putin personally for their assistance in developing the capital.

October-December 2016 CAPITAL IDEAS 7 MOSCOW OFFICIAL

The theatrical performance on Red Square kicked off cel- film “Stilyagi” got to eat burgers, sandwiches, hot dogs, hot ebrations all over the city. This year, City Day coincided with corn on the cob, popcorn and French fries. the Year of Russian Cinema, which is why there were a lot of cinema-related events all over the city: screenings, stage Tverskaya Street served as the central platform for the holiday. sets, film hits and even film-themed menus. The “War and In honor of the capital’s 869th anniversary, the main street in Peace” platform served dishes that were related to the nine- Moscow hosted a grandiose reconstruction dedicated to the teenth century: kulebyaka, cabbage soup, Pozharsky burg- masterpieces of Russian cinema. Over 2,000 actors and en- ers, pike heads, and oven-baked duck leg with buckwheat. tertainers took part in the two-day program. The “Walking the Streets of Moscow” platform served dish- es that were once popular in the USSR: “ezhiki” made out Across ten platforms on Tverskaya, from Kozitsky Pereulok to of beef, Oliver salad, eclairs with custard, ice cream cups Menazhnaya Square, decorations were erected to pay tribute and traditional “Prague” and “Ptichye Moloko” cakes. Fans of to films that were either shot in Moscow or are about Mos-

8 CAPITAL IDEAS October-December 2016 cow: “Ivan Vasilyevich Changes Professions,” “Stilyagi,” “War City Day Statistics: and Peace,” “Circus,” “The Meeting Place Cannot Be Changed” the “Pokrovsky Gate” and others. 10 mln people – attended City Day events Guests were invited to concerts, televised performanc- 1,000 – concerts, performances, shows es, elaborate musical and dance shows and flash mobs. All of these activities were related to the featured films, 212 – City Day platforms all over the city from ballroom dancing on the “War and Peace” platform to rock-n-roll on the “Stilyagi” platform. There were also 2,000 - performers and entertainers working across meetings with famous directors and actors, multiple film platforms screenings, creative workshops, fashion shows and chess matches. 32 – fireworks show locations 200 – free tours of the city 88 – free admission museums and exhibition halls 850,000 people – celebrated the holiday at VDNKh 22 – parks prepared holiday programs 662 – cars took part in the Garden Ring parade 15,000 – law enforcement officers ensured the celebrations were safe and secure 300 – medical teams were on duty 704 – additional trains were used in the metro 1650 – kgs of ice cream was consumed by guests and Muscovites at Tverskaya Street

October-December 2016 CAPITAL IDEAS 9 MOSCOW OFFICIAL

Exhibitions featuring costumes and retro cars that were used Guests could learn more about the pavilions at VDNKh on a se- during filming, as well as large-scale art projects. ries of special tours. The best photographs of the capital were in display at the “Planet Moscow” exhibition. The open area next A bike ride with actors and audience members symbolized the to pavilion No. 70 housed the best 108 works by finalists of the opening of a new theatre season. The trail ran along the bike photo competition. Guests could also see a miniature version of lanes of the Boulevard Ring. During the event, participants got the city at pavilion No. 75, which contained a unique interactive to learn more about different locations along the route. There model of the city. were experimental performances and plays afterwards. The Moscow museums invited guests to come visit the exhibits, For guests of the main exhibition VDNKh, the organizers pre- while states, parks and nature reserves welcomed Muscovites pared almost 20 platforms with workshops and other types of who wanted to take strolls and find out about the lives of peo- entertainment. VDNKh’s central alley hosted the Constructor ple who used to own these estates. Festival, where guests could take place in workshops where they learned how to make model cars, ships and airplanes, as Libraries developed tour programs about the lives and art of well as put together unusual puzzles. great writers and philosophers: Alexander Griboyedov, Vincent Veresaeva, Alexander Pushkin, Ivan Turgenev, Alexander Scri- abin and others.

The first day of the holiday finished with a fireworks display in the form of peonies, waterfalls, hearts and smiley faces. The five-minute show could be seen from 32 platforms in different points in the city, including on 20 platforms in parks. Two build- ings on New Arbat showed congratulatory clips across their fa- cades to celebrate City Day. The number 869, made out of red and blue rings, alternated with images of Kremlin towers, the Triumphal Arch of Moscow, the Church of Christ the Savior, the History Museum, and the buildings of Moscow State University.

A unified style was used for all events held in celebration of Moscow’s anniversary. The clips featured on the buildings on Novy Arbat were executed in this same style. The number 869 was made up of rings that symbolized the circular city plan and its main transportation rings - MKAD, the Third Ring Road, the Garden Ring, the Moscow Central Circle and the Ring Line of the . ■

10 CAPITAL IDEAS October-December 2016 useful info

Department for external economic and international relations of the Government of Moscow Address: 13 Tverskaya Street, Moscow, 125032 Ph: +7 (495) 633 68 66 Fax: +7 (495) 633 68 65 E-mail: [email protected] www.dvms.mos.ru Department of Science, Industrial Policy and Entrepreneurship of the Goverment of Moscow Address: 22 Voznesensky Pereylok, Moscow, 125009 Ph: +7 (495) 777 77 77 Fax: +7 (495) 957 05 92 E-mail: [email protected] www.dnpp.mos.ru Department of Economic Policy and Development of the Government of Moscow Address: 21 Voznesensky Pereylok, Moscow, 125032 Ph: +7 (495) 777 77 77, +7 (495) 957 72 17 Fax: +7 (495) 629 33 42 E-mail: [email protected] www.depir.ru Department of City Property of the Government of Moscow Address: 20 Bakhrushina Street, Moscow, 115054 Ph:+7(495) 777 77 77 E-mail: [email protected] www.dgi.mos.ru Moscow Exchange Address: Office 1: 125009 Moscow, Bolshoy Kislovsky per, 13 Office 2: 125009 Moscow, Vozdvizhenka Str, 4/7, Bldg. 1 Phone: +7 (495) 363 32 32, +7 (495) 232 33 63 Fax: +7 (495) 705 96 22 www.moex.com

October-December 2016 CAPITAL IDEAS 11 MOSCOW OFFICIAL

Economic aspects of cooperation between Moscow and Düsseldorf Moscow held Days of Düsseldorf on September 21-24

On September 22, Mayor of Moscow Sergey He thanked the Mayor for organizing Days Sobyanin met with the Mayor of Düsseldorf of Düsseldorf in Moscow. Thomas Geisel. An agreement on cooperation In turn, Thomas Geisel thanked the Mayor between Moscow and Düsseldorf for 2017 of Moscow for inviting him to the capital was signed during the meeting. and working to develop relations between “We prepared a new agreement together Moscow and Düsseldorf. “I am very with you. Next year will be the 25-year happy we had this meeting. Thank you anniversary of relations between Düsseldorf for organizing and helping with holding and Moscow, which, of course, demands new Days of Düsseldorf in Moscow. The last documents and new programs that we have time we held them was four years ago,” developed together. I hope they will benefit he noted. The Mayor also praised the both Muscovites and the residents of your Moscow’s new infrastructure project, the wonderful city,” Sergey Sobyanin said. Moscow Ring Railway. he business program for the Days of Düssel- economic cooperation between Germany and Russia. dorf in Moscow started on September 22 in Both sides pointed out the importance of maintaining the Moscow Chamber of Commerce with the and developing a constructive dialogue and support- panel discussion “Düsseldorf and Moscow: op- ing strong economic relations in spite of today’s unfa- Tportunities and challenges of bilateral economic co- vorable political climate. operation.” Mayor of Düsseldorf Thomas Geisel, State Secretary of the Ministry of Economic Affairs, Energy, Within the scope of the Days of Düsseldorf in Mos- Industry, Small and Medium-Sized and Craft Trade of cow, a business seminar called “Opportunities for the Federal State of North Rhine-Westphalia Günther Russian Startups on the German Market” took place. Horzetzky, Minister of the Moscow Government and Minister of the Moscow Government and head of the head of the Department for External Economic Affairs Department for External Economic Affairs and Inter- and International Relations (DVMS) Sergey Cheremin, national Relations (DVMS) Sergey Cheremin kicked along with other officials, participated in the event. off the event. “Everybody knows that creative entre- preneurship driven by innovative proposals and con- “For us, Germany is an important partner in the field of cepts are the leading drivers of growth that help pro- innovation, supply of modern engineering equipment pel social and economic development forward,” the and the development of foreign economic relations,” minister said. He also noted that there are more than Sergey Cheremin said in his opening speech. “The goal enough creative people in our country, along with of our meeting today is to strengthen our foreign re- many promising startups. lations and continue our close cooperation in spite of the challenges and sanctions,” the minister noted. According to the head of the DVMS, it’s sometimes difficult to attract funding, especially from foreign in- During his speech, Mayor of Düsseldorf Thomas Geisel vestors, which is why the city authorities seek to use pointed out the importance of maintaining friendship international experience and methods of supporting and partnership between the two cities, stating that young talented people. he hopes the discussion will help make effective and constructive decisions. “Today, Düsseldorf is the cen- “The Moscow government knows about the munici- ter of economic contacts and cooperation with Rus- pal program that exists to support startups in Düs- sia. For many Düsseldorf companies and enterprises, seldorf, the co-working spaces in our city, the great Russia on of the most important partners,” he said, “A investment climate in North Rhine-Westphalia that lot of German companies have representative offices includes a whole series of tax benefits and an excel- in Moscow. It is important to continue and grow our lent legislative framework,” Sergey Cheremin said. collaboration in this respect,” Mr. Geisel said. “This kind of fertile ground can be used to establish joint startups and create synergy by multiplying the During the business forum, participants discussed the intellectual potential on both sides, combining invest- economic aspects of cooperation between Moscow ment capital and inspiring startups with the spirit of and Düsseldorf, the opportunities and challenges of partnership,” the minister said. Sergey Cheremin said

October-December 2016 CAPITAL IDEAS 13 MOSCOW OFFICIAL

that he hopes the search for investment and collabo- a sculpture that symbolizes the long-term friendship ration will lead startup entrepreneurs to the munici- between Moscow and North Rhine-Westphalia. pal authorities of Moscow and Düsseldorf, who will in turn help the most promising ventures. It is noteworthy that the sculpture’s design was de- veloped by children from Moscow and Düsseldorf, During his seminar speech, Mayor of Düsseldorf not by professional architects or sculptors. The instal- Thomas Geisel talked about startup clusters in the lation looks like figures of children: a boy from Düs- capital of North Rhine-Westphalia. “We’re talking seldorf who is given a bouquet of flowers to a girl about the creative industry, about clusters in fields from Moscow. With this gesture, the young authors such as digital and technology. This is relevant to our wanted to say that the connection between the two interests, since NRW is one of the leaders in the sphere cities is not limited to business. Exchange programs of direct foreign investment. We’ve placed third in all have been in effect for several years, and many chil- of Germany in this respect,” T. Geisel said. dren from Moscow have studied in Düsseldorf. Three years ago, the Mayor of Moscow and the Mayor of A report by Chairman of the Board of the German- Düsseldorf planter several oak trees as a symbol of Russian chamber of Commerce, Matthias Schepp was the long-term friendship between the sister cities in dedicated to measures of attracting Russian startup honor of the 15-year anniversary of friendship. There entrepreneurs to Germany. A special commission is another interesting sculpture on the park’s territory. was established for this purpose and has proven to The sculpture of a boy doing a cartwheel is the work effective. According to Mr. Schepp, a group of Rus- of a famous German artist Jacques Tilly. The sculpture sian startup entrepreneurs who already have experi- is the symbol of Düsseldorf. ■ ence working in Germany will return to Moscow in Mr. Geisel answers questions of Capital Ideas in an the spring of 2017. exclusive interview on page 40.

State Secretary of the Ministry of Economic Affairs, Energy, Industry, Small and Medium-Sized and Craft Trade of the Federal State of North Rhine-Westphalia Günther Horzetzky said that there are Russian startups in the region operating in digital, creative and technol- ogy spheres. “Our goal is to create the best conditions for the development of these projects,” he added.

During the business seminar, the participants dis- cussed the tax and legal issues startups encounter, new trends in creative entrepreneurship in Russia and the CIS, and innovations in the co-working sites cre- ated in Düsseldorf.

Within the scope of the cultural program, the Ger- man delegation visited the Düsseldorf park located in the Marino district in Moscow and gave the park useful info

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

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

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

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

October-December 2016 CAPITAL IDEAS 15 MOSCOW OFFICIAL

Days of Astana in Moscow Days of Astana in Moscow took place on “These kinds of events September 19-20. The opening ceremony allow people to learn more took place at VDNKh. about each other,” the The akim of Astana Asset Issekeshev and minister said, “The opening Minister of the Moscow Government of the exhibition is a kind of and head of the Department for External rehearsal for the future opening of the Economic Affairs and International Relations Kazakhstan pavilion at VDNKh, which Sergey Cheremin opened “Ethnoaul,” an is currently being restored,” Sergey exhibition of ethnic Kazakh craftsmanship. Cheremin said. n September 19, Mayor of Moscow Sergey Moscow companies to present their achievements in Sobyanin held a meeting with the akim of the sphere of power generation and energy conserva- Astana (Kazakhstan) Asset Issekeshev. Ac- tion,” the Minister said. cording to Mr. Sobyanin, Moscow and As- tanaO already have an extensive history of cooperation Mr. Cheremin pointed out that Moscow and Kazakh- and a corresponding agreement has been signed. stan are actively developing economic cooperation. Kazakhstan is Moscow’s eight biggest economic part- “We are ready to implement it and make corrections ner. Astana is a rapidly developing metropolis that has when they are needed. I hope that, now that you are demonstrated remarkable speed in terms of integrat- in office, the dynamics of our cooperation will grow ing investment and modern technology into the ur- even stronger,” the Mayor of Moscow said. ban economy. In light of this, Mr. Cheremin said that he hopes the two cities will strengthen their coopera- He also thanked representatives of the Kazakh dele- tion in the future. “Astana and Moscow look toward gation for organizing Days of Astana in Moscow. Ser- the future with confidence, our countries moving for- gey Sobyanin pointed out that this event is a big deal ward,” the head of DVMS concluded. for the Russian capital. Asset Issekeshev declared that there are currently a lot The Mayor of Moscow also congratulated Asset of projects that could be implemented jointly by the two Issekeshev with his new appointment: “It’s a wonder- capitals, which can exchange experience and technolo- ful city that is developing rapidly and sets an exam- gies. “The key tasks we are focusing on are improve- ple for other big cities. I wish you all the best on this ments in the quality of life for citizens, an increase in the challenging job.” In turn, Asset Issekeshev thanked efficiency of municipal services, the establishment of fa- the Moscow authorities for their hospitality and as- vorable conditions for business and the development of sistance with organizing the Days of Astana. “This is innovations. Moscow and Astana have very similar eco- an important event for us,” he said, “and we hosted nomic development models, which is why we would also several performances, screenings, a gala concert and like to establish active cooperation between our business athletic events. We have an exhaustive program of communities. We are excited to host our Moscow col- meetings with Moscow businessmen.” leagues at the upcoming Expo-2017,” Mr. Issekeshev said.

According to Minister of the Moscow Government A memorandum of cooperation between the Astana Of- and head of the Department for External Economic fice for Investment and Development and the Moscow Affairs and International Relations Sergey Cheremin Department of National Policy, Interregional Relations announced during the Moscow-Astana business co- and Tourism was signed during the business forum. The operation forum that Moscow plans to take an active two sides agreed to expand international relations in the part in the Expo-2017 exhibition in Astana. The forum tourism sector, which will help establish favorable con- took place in the Moscow Chamber of Commerce as ditions for the development of tourism in both capitals. part of Days of Astana. The main focus of the Moscow-Astana business co- “Expo 2017 will be another excellent platform for co- operation forum participants was the discussions operation and exchanging experience. The tagline for about potential for cooperation of the two cities in the upcoming exhibition will be ‘Energy of the Future,’ the spheres of urban technologies, urban planning, lo- and I think it will become a unique opportunity for gistics, healthcare and education. ■

October-December 2016 CAPITAL IDEAS 17 MOSCOW OFFICIAL Moscow and Genoa sign Cooperation Agreement The cooperation agreement between the Government of Journalist and tour operator exchanges are also planned in order to stimulate tourist volumes and participation in ath- Moscow and the Municipality of Genoa for 2016-2018 letic events. was signed by Minister of the Moscow Government and Special attention was paid to the Days of Moscow, which are to head of the Department for External Economic Affairs be held in Genoa in the fall of 2017. The even will also take place and International Relations Sergey Cheremin and Mayor in Milan and Venice. of Genoa Marco Doria. “We plan to hold Days of Moscow in northern Italy at the end of September – beginning of October 2017,” Segey Cheremin said he document entails the development of ties between while answering questions from journalists, “We successfully the administrations of the two cities, promotion of dia- held Days of Moscow in three cities in France in June – Paris, logue, exchange of experience and implementation of Strasbourg and Nice. “We hope that everything will go just as joint projects, as well as maintaining friendship and mu- well in Italy, and that will add this wonderful event to the piggy Ttual understanding based on the common values of democracy, bank that contains the many years of friendly ties between our equality and rule of law. countries,” the Minister said.

The two sides agreed to develop cooperation, including in the “As an important European historical and cultural center, Genoa sphere of housing and utilities, the reconstruction of athletic and the entire region of Liguria, as once of the most developed and cultural facilities, holding exhibition, conferences and semi- regions in Italy, are very attractive for Moscow in terms of co- nars that address issues of culture and the preservation of cul- operation. Moreover, hundreds of Italian companies that are tural heritage. implementing interesting projects are working in the capital right now,” Mr. Cheremin noted. The document outlines plans to provide full support for the in- ternational violin competition “Premio Paganini,” develop ties The head of DVMS also recalled that agreements of coopera- between the cultural institutions of Genoa and the federal state tion were confirmed and signed with the authorities of both budget cultural institution Scriabin Memorial Museum. Rome and Milan.

The agreement also outlines the exchange of ideas and in- Representatives of the Moscow delegation in Genoa also held formation with respect to the development of entrepre- talks at the Chamber of Commerce and the Confederation of neurship, including via participation in fairs and conferences, Italian Industrialists of Liguria. ■

Moscow delegation representatives laid wreaths and flowers by the monument to the "Sons of Russia and the Soviet Union who died on Slovenian soil during the First and Second World Wars." The capital of Slovenia hosts days of Moscow for the first time

The opening ceremony for Days of Moscow in Ljubljana sia and the Soviet Union who died on Slovenian soil during the First and Second World Wars." The Ambassador Extraordinary took place on September 28 in Ljubljanskigrad. and Plenipotentiary of the Russian Federation to the Republic Minister of the Moscow Government and Head of Slovenia Doku Zavgaev, who spoke at the ceremony, said that of the Department for External Economic Affairs not a single budget penny was spent on erecting the monument. The memorial was built on donations from Russian and Slove- and International Relations Sergey Cheremin and Mayor nian citizens. “On this memorial graveyard, we assigned several of Ljubljana Zoran Janković attended the event. graves of Russian soldiers and officers to each Russian diplomat.”

ead of the Moscow delegation Sergey Cheremin re- While opening the memorial during his trip to Slovenia in June called that on June 9 of last year, the mayor of Lju- 2015, Russian President Vladimir Putin said that “this monument bljana signed the program of cooperation between will remind us of the selfless dedication of Russian soldiers and the Moscow and Ljubljana for 2015-2017 during his visit to Soviet Union’s contribution to freeing Europe from the nazis, of HMoscow. “A lot of European politicians were skeptical that our the immortal sacrifice of an entire generation.” “The monument cities would be able to develop a good relationship, and today will reflect our common principled position on the inadmissibility we can proudly say that we have been able to establish warm, of attempts to distort and rewrite history, to justify crimes that friendly relations in this fairly short period of time. We would led to the deaths of millions of people,” the Russian leader stated. like to invite you to hold Days of Ljubljana in Moscow in 2017. If you come to Moscow, you will see that our city has become A conference on bilateral cooperation between Moscow and even more beautiful and comfortable. Moscow is changing very Ljubljana took place as part of the business program. An agree- quickly,” Sergey Cheremin said. He also congratulated Zoran ment on holding the Adriatic Clean City (International Business Janković on Ljubljana’s title of “Europe’s Green City” this year. Forum and Exhibition of Clean Technologies for City Utilities) forum was signed between the European-Russian Business In turn, Mayor of Ljubljana Zoran Janković noted that holding Association (Moscow) and the Municipality of Ljubljana. Addi- Days of Moscow in Ljubljana will help strengthen and further tionally, there was a round table discussion to address the de- develop bilateral relations between the two cities. He said that velopment of road and transport infrastructure, a round-table he visited the Russian capital in 1990 and is happy with the discussion on the preservation of cultural heritage and a con- changes that took place over the past few years. ference of Russian compatriots.

During the Days of Moscow in Ljubljana, the Moscow delegation The cultural program opened with a photo exhibition by Alex- laid wreaths and flowers on the monument to the "Sons of Rus- ander Rodchenko called “Moscow in Photographs.” The athletic program opened with a junior basketball tournament between Moscow and Ljubljana. The Moscow team won the game with a final score of 67:38. the captains of both teams were awarded trophies, and all the other players received commemorative medals. The athletic event ended with performances by leading couples and singles from the Alexander Zhulin Moscow school of figure skating.

The Russian Center of Science and Culture hosted film screen- ings and the ceremony of transferring Russian books to the city of Ljubljana.

Days of Moscow in Ljubljana came to an end on September 30, in the concert hall of Grand Hotel Union, with a gala con- cert featuring Bolshoi Theatre soloists accompanied by a Slo- venian orchestra and performers from the Loktev Ensemble of Song and Dance. ■

October-December 2016 CAPITAL IDEAS 19 Passenger Traffic Launched on Moscow Central Ring Railway

n 10 September, Russian President Vladimir Putin and Moscow Ring Railway. The transit was terminated in 2010. Moscow Mayor Sergei Sobyanin launched passenger traffic on the Moscow Central Ring railway. The work A full circle around the Moscow Central Ring will take about completed on the Moscow Central Ring is the biggest 80 minutes. Maximum speed is 120 km per hour, while average Ocity improvement project implemented in Moscow in 2016. speed will be 40 km per hour.

The Moscow Central Ring, formerly the Smaller Ring of the Mos- The passengers will be carried by special five-car urban elec- cow Railway, is 54 kilometers long. It can carry from 150 to 300 tric trains of the new generation with enhanced comfort level million passengers. “There are a total of 31 stations. Today we are (Lastochka). The cars are equipped with information monitors, opening 26 of them. According to the schedule, five more stations 220V sockets, free Wi-Fi and toilets. will be launched in the coming months,” Sergey Sobyanin said. The traffic intensity is estimated at up to 134 pairs of pas- The Mayor said the MCR has turned into Moscow’s passen- senger trains per day. The interval during the rush hour will ger ring and is already a part of the capital’s transport system: “There are 17 links with the metro and 11 interchanges with rail- ways lines. The commuter trains come up to the ring, and pas- sengers travelling to the center can change for the Ring and then on to the metro, another commuter train line or above- ground transport.”

This project is implemented jointly by Moscow, Russian Rail- ways and the Russian Ministry of Transport. The decision to build the MCR was made in 2012 despite potential hurdles in the project’s implementation. In the course of the work, about 4,500 structures had to be demolished. 200 kilometers of new main tracks and almost 4,000 kilometers of utility lines were laid. Also, 28 engineering structures had to be built: ramps, bridges, overpasses and underpasses. At the same time, freight traffic will continue to use the MCR railway.

The Circle Railway was built at the order of Nicholas II in 1903-1908. It opened on 19 July 1908. Only a small section of the Smaller Moscow Ring Railway was open to passenger traffic, which was closed completely in 1934. From then on, the railway was used exclusively for freight traffic via the Moscow railway center as well as to serve the industrial areas along the

20 CAPITAL IDEAS October-December 2016 not exceed six minutes, with the average 12-minute inter- vals throughout the day. If passenger traffic increases, the five-car trains will be substituted with ten-car trains where- as the intervals will be reduced to three minutes.The trains’ designed capacity is 1,200 passenger for a five-car train and 2,400 in a ten-car trains.

The MCR railway will have the same timetable as the metro. The first train starts at 5:30 am and the last one at 1:00 am.

The MCR railway uses the same tickets and tariffs as the Mos- cow metro. You can change from the MCR to the metro or monorail and back within 90 minutes starting from when you first go through the turnstile. For that reason you should keep your ticket until arrival at the final destination.

The shortest interchange will take three minutes without going outside: you can use a lift or an escalator to walk into the met- ro hall. The longest interchange will require a 600-700 metre walk of about 10-12 minutes, which is comparable with chang- As the Moscow Central Ring railway opens, passengers will ing trains in the metro. have around 350 new routes for travelling around the city. The load is expected to drop at the city railway terminals (20 to 40 The five interchange stations – Delovoi Tsentr, Kutuzovskaya, percent), and also on the Circle Line (up to 15 percent) and radial Ploshchad Gagarina, Lokomotiv and Vladykino, – have the pas- (up to 20 percent) metro lines in the city center, especially in its sage to the metro arranged in the so-called thermal envelope northern part. so that passengers do not have to walk outside. Passengers of the Leningradsky train station will be among The infrastructure of the Moscow Central Ring railway is the first to notice the difference as the station’s passenger adapted for mobility impaired passengers. The first and the last flow will decrease due to a convenient interchange to the cars have specials seats. The interchange stations are equipped Likhobory station of the MCR railway from the NATI plat- with lifts and escalators, or special lifts. The entrances and ex- form. Those who use the Kazansky train station are also go- its at the stations have wheelchair ramps. There are also low- ing to see a change for the better thanks to a convenient level ticket offices for wheelchair-bound passengers. Just like in interchange between MCR’s station Andronovka and the the metro, the MCR railway has Mobility Impaired Passenger Frezer platform of the railway line. Passengers on Service Centre personnel. At a request, they will accompany the Kaluzhsko-Rizhskaya, Arbatsko-Pokrovskaya and - for free those who find it difficult to move alone in nicheskaya metro lines will save a considerable amount of public transport. time by using the MCR railway.

The stations have vending machines with hot and The MCR railway passes through 26 districts of Moscow with cold drinks, and information terminals. There will two million residents. also be sockets for charging mobile phones, bench- es and flowers for passengers’ convenience. The MCR will connect over 20 universities.

The MCR railway will be serviced by 237 surface Seven large sports facilities lie close to the Ring railway (CSKA transport routes, with 20 of them already adapted stadium, Luzhniki Olympic complex, Eduard Streltsov stadi- for better integration with above-ground metro. um, VTB Ice Palace, Torpedo health and fitness centre, Krylya Sovetov stadium, FC Lokomotiv stadium), and also parks and At its design capacity, the MCR railway will carry nature zones with an area of 3,300 hectares, including Losiny up to 300 million passengers a year, which is equal Ostrov and Luzhniki. to the full capacity of a metro line. In 2017, the first year of its operation, the number of passengers is The MCR railway will also have a certain educational aspect as estimated at 75 million. Nearly half of them, i.e. 34.5 passengers will be able to see for the first time the previously million, are metro passengers; 20.2 million – rail- closed and almost inaccessible territories such as ZIL, Losiny Os- way passengers, 12.7 million – bus riders; 7.5 million trov, as well the historic passenger stations of the Circular rail- – residents of nearby neighborhoods. way. Six monuments and museums lie along the Ring. ■

October-December 2016 CAPITAL IDEAS 21 Neurosurgery Building Open in Botkin Hospital

“Over the past few years, Botkin Hospital has renovated several buildings and I hope that all of the main renovation works will be over by 2018, meaning that the biggest hospital in Moscow (and probably in Russia) will also be the most up-to-date hos- pital,” the Mayor of Moscow said. According to him, the building used to have rooms that would house 4-5 people.

“Now, the rooms will fit 1-3 people and, most importantly, all operating rooms have the most up-to-date equipment,” Sergey Sobyanin pointed out. Head physician of the Botkin Hospital Alek- sei Shabunin clarified that the equipment used in the new building is just as high-quality as equipment used in foreign hospitals and clinics. According to the head physician, the most important thing is the new, modern equipment that enables staff to perform com- plicated operations on the brain with minimal damage.

This summer, the area surrounding the hospital underwent im- provements. The roadway and sidewalks were repaired and a ergey Sobyanin has opened building No.21 of the Botkin platform for helicopters was built next to buildings No. 21 and 22. Hospital in Moscow. The upgraded hospital building is It will be operating in test mode starting on August 31. Helicop- equipped with air conditioners and individual bathrooms. ter evacuation of people injured in traffic accidents is becoming a Four branches from the vascular center have also moved more popular method of emergency care in Moscow. The method Sthe building after the renovations. cuts the time needed for evacuation by 12 minutes on average. ■

Inostranka to get an Educational Cluster and Bookstore

added that there will later be Italian, German and French lan- guage courses at the library as well.

Duda also noted that the library is currently undergoing renova- tion, after which there will be a cultural center on the first floor, along with a reception area and a place for readers to sign up, as well as a bookstore and a cafe. Moreover, the library’s manage- ment plans to open a multimedia Pearson Language Lab for learn- ing foreign languages, as well as several cultural centers, including the Slavic Cultural Center (scheduled to open at the end of 2016 - beginning of 2017) and the Italian Cultural Center (scheduled to open in 2017). In 2017, the library’s atrium will have special places for open-air meetings, as well as a small cinema. ■

bookstore and literary cafe for presentations and meet- ing with authors will be erected on the territory of the Rudomino All-Russia State Library for Foreign Litera- ture. An entire wing of the library will be used for hold- ingA educational events.

“This year, we made the decision to establish an educational cluster. We are going to set aside an entire wing of the library – auditoriums and places to relax that are perfect for edu- cational services. We will start by offering language courses, which we will hold jointly with the relevant institutions (Eng- lish with the British Council, Spanish with the Cervantes In- stitute),” said the library’s Director General Vadim Duda. He

22 CAPITAL IDEAS October-December 2016 New International Airport in Zhukovsky

ussian Prime Minister Dmitry Medvedev has opened the fourth international airport in Moscow – Zhukovsky Airport. Air Kyrgyzstan will be one of the first airlines Rthat will be running regular flights from the new hub. Thomas Vayshvilla, the head of Ramport Aero, which is the in- vestor and operator of the airport, signed a cooperation agree- ment with the airline, along with the Kazakh airline SCAT and the Russian airline Aviastar-TU.

The new international airport has the longest runway in Eu- rope (5.5km). The airport will serve as a single aviation center for experimental, state and civil aviation. A number of commer- cial facilities, such as an international cargo terminal, a service center for aircraft, two multi-story car parks, a hotel, two office centers, and a shopping center will be erected on the airport’s Overall, there will be 10 billion invested into the airport over territory. All of this will allow the airport to collect additional the course of 5 years, over 10,000 jobs will be created and over non-aviation revenue and offer better service conditions for a 240,000 sq.m of airport infrastructure will be erected. As a result, a broad spectrum of airlines, including low-budget airlines. total of 13 billion rubles will be pumped into the regional economy. ■

Construction of a Movie and Concert Hall in Moscow City

movie and concert hall in the form of a be completed in accordance with a design by Dutchman Marcel nine-story building under a transparent Wanders. dome shaped like a clock is under construc- tion in the heart of Moscow City. It will be a The complex is scheduled to open in 2017 and the construction Apart of the “central nucleus” of the quarter together workers are already in the process of mounting the dome. ■ with the shopping and entertainment center Afi- mall City, along with the Novotel Moscow City ho- tel. The hall will host concerts, forums and other events. The hall can be converted to suit different types of events and will be able to accommodate 1,500-4,000 people.

The stage can also be configured in different ways – the design includes a total of 16 different options. There is a unique opening dome 64 meters in diam- eter above the stage.

Aside from the concert hall, a beach club with two pools will appear in the building. The interiors will

October-December 2016 CAPITAL IDEAS 23 New to Open

ing rows of numbers on the columns. The numbers symbolize the exact sciences and reflect the station’s connection with the scientific work of Mikhail Lomonosov. According to Khusnul- lin, the authorities made the decision to build an additional en- trance to the station for the convenience of passengers. “The third entrance will run underneath the avenue and will allow passengers to bypass having to cross the street above ground,” he said. A tunnel that is about 200 meters in length has been constructed for this purpose.■

he Moscow Department of Urban Construction press service has announced that Lomonosovsky Prospekt metro station will be open in December of this year as part of the metro section that runs from Park Pobedy to TRamenki. “Construction workers are finishing up the installa- tion of decorative panels along the platform walls and the sta- tion’s columns. As of right now, the finishing works are about 90 percent complete,” says Marat Khusnullin, head of the Mos- cow Department of Urban Construction.

Construction workers are installing panels with pictures over a blue background and graphic elements in the form of intersect-

“Flying over Russia”: a ride with special effects

he details of the “Flying over Russia” ride, which will open in the Zaryadye Park media center in 2018, have been clarified. Audience members will be suspended in front of a 12-meter screen with special consoles and Texperience various types of special effects, from flashes of lightning and gusts of wind to volcano eruptions. Special aer- ial photography will be used in order to create a virtual tour of the nature reserves, mountaintops and coasts of Russia. Those who go on the ride will see the real beauty of Russia, not just computer graphics. The virtual journey will include at least 30 locations from all over the country – the Far East, , the Urals, the Far North, the Caucasus, the Baltic re- gion and Central Russia, including Moscow. 39 consoles will be set up along a special platform that will create the illusion of flight. The visuals will be projected on a spherical screen and accompanied by a set of climatic and sound effects. Each séance will be about 7 minutes long. “Flight over Russia” in Zaryadye Park will not only be a source of entertainment, but a cultural attraction in Moscow.

One of the first films that was made for rides like this one was created for Disneyland in California. Today, these pro- grams exist in theme parks across different states, along with in Canada, big cities in China, Abu Dhabi and others. ■

24 CAPITAL IDEAS October-December 2016 Arbat Square Improvements Completed

rbat Square is located at the intersection of Gogol- sky Boulevard, Znamenki Street and Arbatskiye Vorota Square. It houses emblematic architectural monuments of the capital - the lobby of the Arbat metro station in Athe form of a red five-pointed star (one of the first symbols of the Moscow metro) and Khudozhestvenny Cinema (one of the oldest cinemas in Russia, erected in 1909). Arbat Square was beautified along with nearby streets Vozdvizhenka and Zna- menka, as well as Krestovozdvizhensky Pereulok and Starova- gankovsky Pereulok. The sidewalks have been expanded by an average of 1-1.5 meters via the standardization of traffic lane width. The capacity of the roadways has not changed.

Parking on Vozdvizhenka Street, Znamenka Street and Kresto- vozdvizhensky Pereulok is prohibited. Pockets with capacity for 13 cars have been set up on Starovagankovsky Pereulok for parking. In November, 31 trees and 25 bushes will be planted on Znamenka Street next to the monument to Mikhail Frunze.

Thus, one of the oldest quarters in Moscow, which includes Mokhovaya Square, Vozdvizhenka, Znamenka and Arbatskaya Square is now a comfortable public space that has been united into a single urban environment with New Arbat, Bolshaya Ni- kitskaya and other streets that have recently undergone im- provement works. metro exit. It was there for 20 years, and people had to use this narrow pathway to get to the metro. It shouldn’t be like “Arbat Square is a fairly complicated urban space with two that. The building was taken down in February 2016. Now, Ar- metro exits and a lot of pedestrian traffic. Moreover, there was bat Square and the streets surrounding it are a quality space,” a two-story squatter building just a few steps away from the the Mayor of Moscow said. ■

October-December 2016 CAPITAL IDEAS 25 FACE TO FACE

Stable improvement Isaac Kalina, Minister of the Government of Moscow and head of the Department of education of the city of Moscow, answered our questions in an exclusive interview with Capital ideas.

26 CAPITAL IDEAS October-December 2016 Mr. Kalina, how would you assess the state of pre-tertiary education in Moscow: improving, reforming, in crisis, stable?

I would say that we are seeing stable improvement. The ac- complishments of students and teachers in Moscow speak to the fact that we are seeing an improvement. In terms of sta- bility, the proof lies in two factors. First, the qualitative devel- opment of the system is steady as opposed to erratic. Second, all of the reforms are based on years of experience in Moscow schools.

Can you point to three strong aspects of your system of education?

First, versatility. Today’s educational complexes are schools with a lot of opportunities that can offer families a wide spec- tus of the family. This fact has been confirmed by the Organiza- trum of educational programs, help children develop different tion for Economic Cooperation and Development (OECD) – the types of talents, and teach students the skills they will need in organizer of the international PISA study in which Moscow was both life and their future professions. examined as an independent entity and showed great results.

Second, the overall quality of education is better. I’ll give you an The mechanisms that serve to develop these strong aspects of example. In 2010, there were just a few dozen schools in Mos- the system include: cow that graduated winners of Olympiads (contests for high school students). A lot of parents tried to enroll their children ● significant volumes of funding from the Moscow city into these schools. Every year, there would be massive lines budget (education is one of the most significant items and campouts outside of schools before April 1, which is the on the city’s list of expenditures) official date parents can start signing up their children for the first grade. A popular magazine for teachers used to call these ● coordination of funding with educational tasks (we only schools the “golden nuggets” of Moscow education. finance things that yield social and educational results

Today, hundreds of Moscow schools provide high quality edu- ● accordingly, students are the basis of all calculations cation. Participating in and winning Olympiads has stopped be- that determine school budget amounts, which means ing something that is only accessible to the elite. Over 90% of we have a fair budgetary financing mechanism schools in Moscow taught the winners of the regional stage of the 2015-2016 National School Olympiad, and one-third of ● exceptional transparency of the Moscow education sys- these schools taught the winners of the Olympiad’s final stage. tem, including through the use of new technologies. Ev- ery school in Moscow and every parent sees not only the Third, there is no connection between the volume and quality of aspects of school life that the school wants to show off, programs guaranteed by the state and the social or financial sta- but also the true state of affairs in terms of school man-

October-December 2016 CAPITAL IDEAS 27 agement and educational results. The rating system that We understand the need to help students determine what they assesses school contributions to the quality of education want to do in life. This is why we are creating an environment of Moscow’s schoolchildren, which has been in effect for that will give children the opportunity to try different things. 5 years, is an integral instrument for transparency. First, these are pre-specialization clubs, then specialized class- es that gradually turn into professional prep courses in high Could you please give us an overview of the main trends school. This will allow students to graduate from school pre- in the development of the Moscow pre-tertiary education pared for adulthood, with a clearly-defined set of skills useful system for the next few years? for both everyday life and future professions.

First of all, this is about building competencies for the future – I’d like to ask you a question about the Soviet education sys- the skills necessary for real life: tem. Do you think that it was one of the best in the world? Does our system today incorporate any of these elements? ● applying knowledge acquired in different classes to real life The Soviet education system was very efficient in terms of ad- dressing the challenges that a Soviet society faced. The educa- ● using advanced technology and modern tools tion system can be considered a good one when it meets the current and future challenges of the society that created it. ● having the ability to navigate large volumes of informa- tion and learn independently Our society is developing, and the school education system is de- veloping along with it. A lot of the best parts of the Soviet school ● having the ability to develop realistic and necessary proj- system became the foundation for the modern education system ects for the city, as well as present innovative ideas in Moscow. This includes the focus on the natural sciences. This also includes competitiveness, which is why we have a lot of Olympiads Another trend is convergence (intersubject) education. and other intellectual competitions. The achievements of Moscow school students in international Olympiads serve as a testament to Convergence education allows students to integrate the skills this. Another point is the special focus on extracurricular activities and knowledge acquired while learning other subjects, attend- and additional education. The foundation for the establishment of ing club activities or doing labwork and apply them to solving large educational complexes was built back in the Soviet era. problems in real life. Back in the Soviet era, we used to also have vocational The third trend is education within the scope of the technologi- training. What about today? We know that experts from cal realities of the future. Germany are helping to restore such programs in some Russian cities. What about Moscow? In real life, the modern economy and the social sphere, there are a lot of technologies that a successful person must be famil- Historically, there has always been a serious and effective voca- iar with in order to be a competitive professional. In school, it is tional training system in Moscow. We are trying to pay special important to learn how to use the equipment and technological attention to it today as well. solutions that the student will encounter in adult life. Currently, Moscow colleges are taking an active part in the The fourth trend is education for in-demand professions. “Your Professionals” professional skills championship, which is

28 CAPITAL IDEAS October-December 2016 October-December 2016 CAPITAL IDEAS 29 FACE TO FACE

held in accordance with the standards of the WorldSkills inter- teach Spanish (School No. 1252, for example), have been friends national movement and is yielding positive results. with their colleagues in Spain for a long time. The Moscow net- work of educational establishments includes over 170 foreign In order to improve to professional competencies of our college educational organizations. students, we are cooperating with Germany – one of the most successful participants of the WorldSkills international champi- What are public attitudes toward teachers like in your onships. We plan to hold joint gatherings of students who par- country? Is this a well-respected, prestigious profession? ticipate in these competitions at German colleges equipped by Festo, which is a global partner of WorldSkills. A profession in itself cannot be prestigious. There are over 120,000 educators working in Moscow’s educational system. The vast ma- Are we relying on the experience of any specific country jority of them are real professionals (how else would our kids be when reforming the pre-tertiary education system in able to accomplish to much?). Real teachers are well-respected Moscow? people who do their profession justice, making it well-respected in the eyes of Muscovites. Of course, they share the secrets of their We are not relying on the experience of any one specific coun- trade with their less-experienced colleagues. So that there is no try. But we are carefully studying the education systems of ma- doubt about the credibility and prestige of Moscow educators. jor cities and countries in order to analyze the most effective practices, which, combined with our rich experience and Rus- We heard about the first Olympiad of cig cities that re- sian school traditions, will give us new results. cently took place in Moscow. What were the results? Any plans for the future? In your opinion, which country has the most efficient edu- cation system? School students from 22 cities and 18 countries took place in the Moscow International Olympiad. These included Moscow, I must say again that this question is not a matter of absolutes. , Yerevan, , Almaty, Tel Aviv, Beijing, Dusseldorf, Everything depends on the objectives, and every country has its Sofia, Leipzig, Milan, St. Petersburg, Tallinn, Astana, Belgrade, own set of objectives. The only way to assess the efficiency of Budapest, , Helsinki, Jakarta, Abu Dhabi, Bishkek, New an education system is to figure out how well it addresses the Delhi. The total number of participants and guests amounted challenges facing the country. to 275 people. Based on the results, the top three cities were Moscow, Belgrade and St. Petersburg. Are there exchange programs for teachers or students be- tween schools in Moscow and foreign schools? If so, could In terms of plans for the future: we are considering making this you give some examples? an annual Olympiad. We are sure that the number of partici- pants will increase, since this is more than a competition – it’s Moscow schools have been cooperating with foreign schools an opportunity for the best students from the best cities in the for a very long time. We’ve worked will all sorts of countries, world to show off their skills, make friends and perhaps even fu- from Japan to Portugal. School No.1234, for example, has an ture professional connections that will help them make future agreement with schools in Berlin. A number of schools that strides in global scholarship. ■

30 CAPITAL IDEAS October-December 2016 CITY’S GRAPH Moscow Education in Numbers, 2016

Number of people studying in educational institutions of the 1120,0 Moscow Department of Education 1350,0 thousand people thousand people 2010 2016

Number of schools in Moscow with students 74 who won the national Olympiad 214

5% % of the total number of schools in Moscow 34%

Quacquarelli Symonds World Top 500 Schools in Russia University Rankings by Rankings Subject, 2015 Russian Ministry of Education Number of Moscow schools on the list: Moscow’s rank: universities in the Top 100 out of the top 4 500 best schools in 3 additional universities since 2011 139 Russia 4 Moscow universities have placed Up 43 positions since 2013 in the Top 100: Lomonosov Moscow State University Higher School of Economics Bauman Moscow State Technical University National Research Nuclear University MEPhI

October-December 2016 CAPITAL IDEAS 31 FACE TO FACE Positive changes Alexei Khripun, Minister of the Moscow Government and head of the Department of health of the city of Moscow, answered our questions in an exclusive interview with “Capital Ideas”

Mr. Khripun, how would you assess the quality of health- of the healthcare system are relatively objective. Here is what care in the city? these opinions are: about 90% of residents gave positive re- views of the city’s clinics. And we must take into account that, I think that the quality of healthcare should be assessed by overall, people are generally more motivated to leave negative Muscovites, not by officials. And they do this all the time - not reviews than positive ones. just by giving feedback to the Moscow Department of Health and other government bodies, but also through the “Active Citi- There is another telling moment. Recently, there was an zen” platform, the media and other channels. award ceremony for doctors who were mentioned by Mus- covites within the scope of the “Thank you, Doctor!” ini- Considering the fact that Moscow is the only city that currently tiative. Tens of thousands of people voted. I think that if has such an open and transparent system for exchanging infor- people had overwhelmingly negative feelings about the mation between residents and the city government, it is fair to healthcare system, we wouldn’t have received this much say that the opinions of Muscovites regarding specific aspects positive feedback.

32 CAPITAL IDEAS October-December 2016

FACE TO FACE

On the other hand, I, as head of the Department of Health, gram that was launched several years ago is? Why is it can only rely on objective facts and figures. These facts and necessary? figures strongly suggest that, over the past five years, the material and technical supplies to medical institutions in Let’s clarify something again. Because this is not the first Moscow, the qualification of personnel, the accessibility and time we have focused on this. Modernization, reforms, op- the quality of medical services have all improved significantly timization - all of these terms, which we usually employ in for Muscovites. conversations about the changes in the healthcare system, aren’t limited to the healthcare system in Moscow. These in- Over five years, over 100,000 units of modern equipment were novations in the healthcare system are not a private initia- purchased for the capital’s medical institutions: CT scanners, tive of some individual subject of the Russian Federation. The X-ray scanners, endoscopy equipment and much more. A lot process began with the adoption of the 2010 Federal Law of institutions were renovated, almost two dozen clinics have No. 326-F3 “On Mandatory Health Insurance in the Russian been erected, along with new hospital wings, emergency sta- Federation,” which entailed the transition to single-channel tions and much more. Some of these facilities are truly unique. healthcare funding through the Compulsory Health Insur- For example, we are finishing construction on the largest peri- ance Fund. natal center in Europe at the Vorokhobov Hospital and a wing of the Morozov Children's Hospital. Moscow had it tougher than other cities, since before the law came into force the capital had one of the biggest shares of This large-scale program of positive transformations with a budget financing for healthcare. simultaneous increase in the efficiency of medical institutions in Moscow and the integration of new management principles After the law changed, allocating financing to hospitals based allowed us to achieve significant improvements across health on the number of beds was no longer made sense. Now, fund- and demographic indicators. ing “follows the patient,” so to speak, much like “funds follow the student” when it comes to funding schools. Clinics, for ex- For example, in Moscow, the mortality rates for deaths related ample, have switched over to per capita funding because they to cardiovascular disease dropped by 18% over the course of are interested in improving the quality of their services, not in four years, infant mortality decreased by almost a quarter, and increasing the quantity. average life expectancy increased by almost three years, climb- ing to 6 years above the national average. The volume of high-tech medical care funded by the budget doubled compared to 2015, which helps a lot of people get qual- Compared to Russia as a whole, Moscow definitely has ified medical care (Moscow clinics are providing more patients better health and demographic indicators. Could you tell from other cities with high-tech medical care funded by Com- us what the essence of the healthcare modernization pro- pulsory Health Insurance).

34 CAPITAL IDEAS October-December 2016 A three-tier healthcare system, which combines the capabilities Of course, and they ’t exist only within the scope of private of clinics, multi-specialty hospitals and early treatment centers, healthcare. Almost every Moscow clinic is on par with Europe- has been steadily operating in Moscow. an medical institutions, both in terms of personnel and techni- cal equipment. I wouldn’t point to any one clinic as an example. In other words, we are not talking about an experiment that The number of foreigners who receive medical care (including we can evaluate from a binary perspective of failure vs. success, specialized medical care) in Moscow continues to grow. We but rather about the need to meet the requirements of current don’t have concrete numbers here because patients who don’t legislation. It obliges us to optimize the operations of medical have Compulsory Health Insurance are provided medical care institutions within the scope of the existing funding structure on a contractual basis. The same applies to Russian citizens if while catering to the needs of the public. I think we have man- the medical services provided are not on the list of the service aged to do this. types or volumes guaranteed by the state.

So far as hospitals are concerned, it used to be that a person Our doctors have started going abroad frequently to com- would go to the hospital for an operation and ended up spending plete internships there. And foreign specialists come here an average of 2-3 weeks there. That is, if there were 20 beds, an as well, such as Indian ophthalmologists. Could you talk a average of about 30 people per month would be accommodated. little bit about these exchanges? Now, the same procedure, thanks to new approaches that in- clude the use of new technologies, takes 3-4 days (including the In 2012, at the initiative of the Moscow Department of Health, recovery period), and the same space can accommodate 60-80 a program for the development of medical staff from the state patients per month. Today, hospitals are operating at full capac- healthcare system of the City of Moscow was launched. Edu- ity and a lot more patience get quality medical care. cation programs at foreign medical institutions are an integral part of this program. The program’s objective is timely training In terms of numbers, the recent changes, which happened of medical personnel in accordance with trends in the medical against the backdrop of a decline in the number of beds across industry in Moscow, current medical guidelines and interna- state medical institutions in Moscow, have led to an increase tional standards. in the number of people who received treatment. In 2015, the total number amounted to 1,965 thousand people (compared to The first step toward in the development of international 1,879 thousand in 2014 and 1,863 thousand in 2013). cooperation was the signing of the memorandum of mutual understanding between the Government of Moscow and the There was once a time when Western journalists and dip- Department of Health in Basel (Switzerland). Then, there was lomats working in Moscow would fly to Helsinki to get a a framework cooperation agreement between the Depart- simple filling done. There is no need for this today, right? ment of Regional Affairs, Economy and Health (DARES) of the Are there world-class medical centers in Moscow? Canton of Geneva (Switzerland), the University Hospital of

October-December 2016 CAPITAL IDEAS 35 FACE TO FACE

Geneva and the Moscow Department of Health. There were ogy and medical devices; educational institutions that provide also bilateral cooperation agreements signed with leading training for Russian doctors and other medical staff with assis- medical institutions in South Korea, germany, Italy, Belgium, tance from international experts in this sphere.” Israel and Slovenia. The International Medical Cluster (IMC) is to be established on Experts from both sides developed unique programs for training a 57.6 ha area at Skolkovo Innovation Center. Over the course medical personnel from the Moscow state healthcare system in of 10-15 years, up to 15 clinics that specialize in treating the most accordance with the needs and trends of development of the severe and widespread illnesses will be located on the territory: industry in Moscow. There are currently international intern- centers that specialize in cancer treatment, cardiology, ortho- ship programs for doctors and nurses across various fields, as pedics, traumatology and neurology. IMC projects participants well as for policy-makers. The result of implementing interna- will include leading medical centers from OECD countries. The tional cooperation is a series of training programs and innova- first facility to be constructed at IMC will be a 13,000 sq.m. di- tions in the operations of medical institutions that have proven agnostic building, which will house: to be efficient in Moscow public health practice. ● a diagnostic center (Check Up) for 375 visits per day with A total of 975 Moscow healthcare professionals have received 49 outpatient rooms and a day patient facility with 4 beds training abroad since 2012 - 605 doctors, 179 of which are de- partment heads, and 370 nurses. ● a simulation center for education and training

Is healthcare in the capital open to foreign investors? Do ● a conference hall that can accommodate 300 people, of- you have any examples? fice spaces, a cafe for personnel, patients and visitors, and auxiliary facilities. Yes, there is a project that is being implemented within the scope of the Federal Law No. 160-F3 “On the International We plan on building two pilot buildings - one for diagnostics, Medical Cluster and Amendments to Certain Legislative Acts and one for treatment - in 2017-2020. of the Russian Federation." According to the bill, Russia is to have “world-class clinics that operate in accordance with the Undoubtedly, this information serves as evidence of the fact standards of medical care applicable in OECD countries, which that Moscow is an open city that is very appealing to foreign includes the attraction of foreign doctors, the use of foreign investment and partners. We are talking about a large-scale, medical equipment, technologies and medicine (certification international medical project. All of this requires us to work for personnel is not required by Russian law in this case); sci- very hard and take into account the needs and wishes of peo- entific institutions that specialize in the development, manu- ple who live in our capital, which is really becoming a center facturing and implementation of medicines, medical technol- for medical tourism. ■

36 CAPITAL IDEAS October-December 2016 CITY’S GRAPH Average waiting time for Average ambulance response a doctor’s appointment time for emergencies Statistics from the Department of Health of Moscow, the American Hospital Association and similar services from other countries

days Moscow 1.1 Moscow 8 minutes up to 2 days Berlin London Toronto minutes 4 days Paris Berlin 9

The air in Moscow is cleaner Environmental This was possible due to the ban on the sale of petrol below development rating the Euro-IV standard at gas stations and the ongoing reconstruction of purification facilities for Russian cities, 2014 Russian Ministry of Natural Resources Suspended Carbon Particles Nitric Monoxide CO2 Reflects improvements in environmental (on average) Oxide N2O (on average) indicators –10% –20% Moscow’s rank: –30% st 87 cities/regions included in the rating The average life expectancy of 1 Up 5 positions compared to Moscow residents increased by 2010 (6th place) 3 years over the past 5 years

The rating is based on 7 key categories Average life expectancy by year Air quality Transport 74,1 76,8 78,7 Water consumption and quality Energy consumption Waste management Environmental impact 2010 2015 2020 Land use control

71,4 – average life expectancy in Russia in 2015, preliminary data from the Russian Federal State Statistics Service

October-December 2016 CAPITAL IDEAS 37 Education Deutsche Schule Moskau

This school is called Deutsche Schule When was Deutsche Schule Moskau founded and how long has it been operating for? Is there any data about how Moskau, DSM for short, and operates many people have graduated since that time? under the German embassy in Russia. The German School in Moscow (DSM) was founded in 1961. No, un- The school is named after Friedrich fortunately there are no public statistics on the number of students.

Haas (1780–1853), a Moscow doctor How many students do you currently have? Are these Ger- of German origin who worked in man kids or are there Russian kids and kids from other countries as well? the Russian capital in the 19th 400 pupils and students from Grades 1 to 12, two classes at each century. A prominent humanist and level, are currently attending our school. The following nation- philanthropist, he was known in alities, as well as others, are represented at our school: German, Austrian, Hungarian, Swiss, French, American and Russian. This Russia as “the holy doctor” and people shows how multicultural our school is. called him Fyodor Petrovich. Classes Are there admissions criteria? It seems like not everybody at DSM are taught in German and can attend DSM?

the school receives support from the A requirement for attending the German School is a good, age- German Ministry of Foreign Affairs. corresponding, command of the German language. From Grade 6 on all applications are examined on an individual basis. Children Uwe Beck, the school’s headmaster as young as 2 can enroll in our kindergarten program. Language competence is not a requirement for small children, since there is who has been in charge of the school enough time until the age of 6 or 7 to learn German in kindergarten. since 2015, talked to Capital Ideas For Grades 10 to 12, there are special requirements. Admission about life at DSM. status is determined after the application has been reviewed

38 CAPITAL IDEAS October-December 2016 and a complete consultation with both parents and the student Yes, there are very intensive contacts through mutual class vis- has been conducted. its. Moreover, there are multiple contacts to Russian teachers of German, who regularly participate in advanced training ses- How many teachers are there at DSM? Are all of your teachers sions at our school. Joint sports events and musical competi- German, or are there teachers from other countries as well? tions are organized as well.

Deutsche 50 teachers are employed at our school, the overwhelming ma- Obviously, DSM graduates have the opportunity to attend jority of them being from Germany, with an education com- German universities. What about Russian universities? pleted in Germany. A few teachers come from Austria, Switzer- Can graduates with DSM diplomas go to universities here? land and Russia. Our Russian and German graduates have the possibility, thanks Every school offers one or more foreign language pro- to their diploma, to study in Russia. Schule grams. Which foreign languages can students at DSM study? Are some languages prioritized? How do you become the director of DSM? Why did you de- cide to come to Moscow? German is the primary language of instruction in all subjects at DSM. Foreign languages include English from Grade 3, Russian I worked as a school director for many years in Germany. is offered from Grade 2 to 9 (and is a compulsory subject from I was able to successfully go through all the steps of a school Grade 10), French is offered from Grade 6. The AGs offer Russian education. I dreamed of being able to someday work abroad. Moskau on various levels, as well as Spanish. After a round of applications through the department of for- eign schools in Germany, I had the opportunity to transfer to Since DSM is located in the Russian capital, one can as- Moscow. I presented myself to the board, teachers, students sume that there is a special focus on Russia at the school? and parents of DSM in April 2015 and I was chosen as school Which areas does DSM focus on most: history, modernity, director. culture, politics, other subjects? I find Russia and Moscow particularly fascinating. I love Russian Moscow and the whole country with its language, culture and literature and I can visit, among others, the places that I only history play a great role, and not only in class. We also use after- knew from books. school activities to bring our students closer to Russia. Do you like Moscow? How do you feel in the Russian capi- Music, art, history connected with meetings with people, con- tal? tacts to DSD-Schools in Moscow, to all international schools in Moscow in sports as well are a vital component of DSM. And Moscow is an incredibly lively, vibrant big city that is on the ranking or classification cannot be determined here. In Grade move all the time. I am impressed by the architecture, the life 4, 6 and 9, class trips, during which pupils get to know Russian on the streets and I highly respect the way the city has handled traditions and culture, are organized to various cities in Russia. traffic issues. Public transportation is very handy, easy to use In particular, our famous Rshew project links past to present. and it is possible to comfortably reach the city center without a car. I personally consider Moscow to be a modern big city with Does DSM maintain contact with Russian institutions and numerous European luxuries, a variety of hotels/inns, restau- schools, such as Russian schools with a special focus on rants, museums and many more cultural elements, wonderful German? Do you have joint projects together? parks and interesting, very open people. ■

October-December 2016 CAPITAL IDEAS 39 FACE TO FACE

elations between Moscow and Düsseldorf many (North Rhine-Westphalia) developing? have always been held up as an example Which recent projects would you highlight? because they have always been good. However, right now relations between We have always had a close relationship which start- Russia and the West in general leave much ed with the gas-pipeline deal between the USSR and toR be desired. Has this situation had an effect on the Federal Republic of Germany which was con- contacts between Moscow and Düsseldorf? ducted in Düsseldorf in 1970. This was a long-term contract that entailed the supply of large-diameter I would actually say that the opposite is true. I think, pipelines and other equipment for the construction that when diplomatic or foreign relations are facing of a pipeline to Western Europe in exchange for gas new challenges, it is even more important and neces- delivered from fields in Western Siberia. It opened up sary to develop relationships between people, between a new chapter in the history of German-Russian rela- cultural figures and, of course, between entrepreneurs. tions (back then, it was German-Soviet relations). The It is also important to cooperate across spheres such company Ruhrgas, where I worked for 14 years, took as sports, education and school exchanges. So it is im- part in it. It was a giant milestone in terms of rela- portant to strengthen relationships like these. This is tions between Germany and Russia. There had been why we are maintaining very close relations with Mos- no similar deals between the USSR and the West up cow. I completely agree with the opinion of the Ger- until that point. man Ambassador Rüdiger von Fritsch who believes we must seek to unite people, that political conflicts and There has been a Russian Business Competence Cen- difficulties come and go, but it is extremely important ter in Düsseldorf for quiet some time, which has been to maintain these kinds of contacts. set up by the Düsseldorf Chamber of Commerce and the "Messe Düsseldorf". By the way the "Messe Düs- How is economic cooperation between the Rus- seldorf" trade fair company opened its office in Mos- sian capital and the most populous state of Ger- cow as early as in 1963. So you could say that "Messe

40 CAPITAL IDEAS October-December 2016 Thomas Geisel: Trust is the foundation of our relationship The Mayor of Düsseldorf Thomas Geisel answered our questions in an exclusive interview with Capital Ideas.

Düsseldorf" is a real pioneer! There are not many cities How is cooperation between the two cities de- that have that much exposure to and experience with veloping across areas such as municipal services, the Russian market. education and culture?

How many Düsseldorf companies operate in Mos- We have great exchanges with Moscow in the cul- cow? What kind of companies are these and what tural sector. During the Düsseldorf Days in Moscow, is the scope of their activities? we had jazz concerts by the famous Düsseldorf "Se- bastian Gahler Trio". The exhibition in the Multimedia There are a lot of Düsseldorf companies operating in Art Museum Moscow with artists from the famous Russia. Henkel, for example, has been in the Russian "ZERO group" (an artistic movement that started in market since the 1990s. Metro Cash and Carry started Düsseldorf in the early 60's) was also quite popular. expansion in Russia in the early 2000's and its Me- Later this year, Düsseldorf will host an exhibition from dia Market / Saturn branch were established in Russia Moscow’s Museum. I would also like to in 2006. E.ON's successor Uniper has been active in mention the collaboration between the Stanislavsky the Russian energy market for roughly a decade. Also and Nemirovich-Danchenko Moscow Music Theatre SMS Siemag, a Düsseldorf plant engineering Firm, has and the Oper am Rhein in Düsseldorf. Three schools a Russian office for quiet some time. in Moscow and Düsseldorf maintain partnership ties. These are all examples of cooperation that benefit There aren’t a lot of investments flowing into Russia both Moscow and Düsseldorf. right now. Nonetheless I don’t know a single German enterprise that wants to exit the Russian market. Is there an active dialogue between Düsseldorf Rather the line of thinking: yes, there is a crisis right and Moscow with respect to civic organisations? now but it will not go on forever. But the foundation of our relations is strong and based on trust, and that Yes, quite active. This dialogue is held under the aus- is what we are counting on. pices of the Moscow-Düsseldorf friendship society

October-December 2016 CAPITAL IDEAS 41 FACE TO FACE

that is active in our cities. I am a member of this orga- I am a local politician, so am not working on foreign nization, so I can tell you for sure: we have established politics. However, it is clear that partnership ties be- a very wide network of contacts with Muscovites. tween cities contribute to the improvement of rela- tions between the two countries. What is the significance of the partner city move- ment in the development of relations between Were this year’s Düsseldorf Days in Moscow a Russia and Germany, especially right now? success? What was the defining feature?

They were very successful. I am personally glad that Moscow was so hospitable. In my opinion, it is impor- tant that our partners in Moscow genuinely demon- strate that they are interested in working with Düs- seldorf, that our city is very respected and recognized in the Russian capital. This was definitely reflected in the Düsseldorf Days events in Moscow.

Who did you meet in Moscow? Were these mostly courtesy visits, or did you discuss specific joint projects?

No, even though they were courteous, they were def- initely no courtesy visits. We signed an agreement of intent with Moscow Mayor Sergey Sobyanin for the upcoming 25-year anniversary of relations between Düsseldorf and Moscow, when we plan to host the Moscow Days in Düsseldorf.

This is a document on cooperation between our cit- ies for 2017. It states that on the occasion of the 25-

42 CAPITAL IDEAS October-December 2016 year anniversary of the establishment of partnership capital and its residents, when the shops were almost relations between the Russian capital and the capital empty and people were living in poverty. Today, it is of North Rhine-Westphalia, we will organize official difficult to imagine this in Moscow, and I must note delegation exchanges, joint projects and public events that Moscow is a very modern city, a rapidly develop- across all relevant sectors such as the economy, cul- ing metropolis. I got the impression that there is a lot ture, youth and sports. All events should point out the being done in Moscow to increase the standard of liv- close friendship and mutually beneficial cooperation ing for the people who live here. ■ between Düsseldorf and Moscow.

We have ambitious plans. We intend to develop ex- tensive cooperation, for example in the fields fash- ion and start-ups. But we will also discuss economic relations between the two cities of course. This time in Moscow, I took part in the panel discussion "Düs- seldorf and Moscow: opportunities and challenges of bilateral economic cooperation." We discussed the prospects of bilateral cooperation.

This is probably not your first time in Moscow. How do you like the Russian capital? What chang- es have you noticed?

I first came to Moscow in 1992 - almost a quarter of a century ago. If I compare the city then with the city now, then of course Moscow has changed dramati- cally. In those days it was the end of the Soviet era and Moscow was going through difficult times. To be honest, back then Moscow seemed kind of depress- ing to me. It was truly a difficult time for the Russian

October-December 2016 CAPITAL IDEAS 43 MOSCOW IN WORDS

The Strength of a sword is measured by the arm that wields it! Alexandr Nevsky, Prince of Novgorod, of Kiev and Grand Prince of Vladimir during some of the most difficult times in Kievan Rus' history

A great wind is blowing, and that gives you either imagination or a headache. , the most renowned and the longest-ruling female leader of Russia

Destiny may ride with us today, but there is no reason for it to interfere with lunch. , Russian czar

44 CAPITAL IDEAS October-December 2016 One minute can decide the outcome of the battle, one hour – the outcome of the campaign, and one day – the fate of the country. Alexander Suvorov, Russian Generalissimo and national hero

It is far more honest to be undeservedly ignored than to be honoured without merit. Denis Fonvizin, Russian writer

You do not have to be a poet, but you are obliged to be a citizen. Nikolai Nekrasov, Russian poet, writer, critic and publisher

October-December 2016 CAPITAL IDEAS 45 Moscow Global Carlos D. Sorreta: Festivals on Arbat are to be regular The government of Philippines is keen on accelerating business interaction with Moscow in fields as diverse as commercial launching of telecommunication satellites and nanotechnology, not to omit buying Russian poultry and, in turn, selling tropical fruits like dried mangoes.

The Russian number one megapolis is considered to be a lucrative partner. “Running Moscow is just like running a country,” says Ambassador of The Philippine Republic in Russia, Carlos D. Sorreta who has detailed the state of play of the gearing up relationship with Moscow in an exclusive interview for Capital Ideas.

Your Excellency, the agreement to boost coop- we deal with, the kind of products we sell, or the plac- eration between your country and the city of es tourists would visit. Moscow in trade, tourism, and agricultural sec- tor has hallmarked your meeting in April with So we are starting from almost a clean slate (that is, Sergei Cheryomin, Minister of the Moscow fresh start or tabula rasa – V.M.). Jump-starting it, Government and Head of the foreign trade and we work with the Moscow City Government, for in- international relations department. Has any- stance, in staging the Philippine Street Festival 2016 at thing on these tracks been kick-started since the Old Arbat, lasting for a week this August, where then? we introduced Muscovites to Philippines’ products, culture, tourist destinations, arts, and food. The distance between Manila and Moscow and our past history has not brought us too close together. Moscow Government very warmly welcomed the There is still a gap in the process of getting to know idea, and they were very generous to allow us to use each other. That means getting to know the people the Old Arbat where, as you know, the pedestrian

46 CAPITAL IDEAS October-December 2016 traffic runs into thousands on week days and much you guys have a 2-year waiting list for our payload. more on weekends. It is truly a very popular destina- The Russian company that executed these launches tion. So, that is how we are jump-starting it. would have to package it with other small payloads. So we went to Japan, but it is very expensive. Russia What ensued the visit in May to Moscow by Mario offers one of the best values. Your space technology Montejo, Secretary of the Philippine Department is very competitive. of Science and Technology (held office until June 2016), focused on cooperation with Russia in Moreover, we have a pending agreement on nuclear space exploration, monitoring risk of natural dis- energy cooperation. We already have a nuclear pow- asters, and nanotechnologies? er plant, built by Westinghouse, back in the Marcos times, but it was mothballed for quite a while. Before We are developing our telecommunications poten- we renew its operations, we need to rebuild the re- tial. We launched a satellite with the help of Japan. search reactor. We noted that Vietnam and Malaysia We wanted to send it up with the Russians, but have turned to you guys in this respect. Plus you have

October-December 2016 CAPITAL IDEAS 47 Moscow Global

got guaranteed supply of fuel and even offer to take snow – no more school! Everybody stays at home. back the spent fuel. It is all a packaged deal. Here I’ve seen two feet of snow in the streets, and schoolchildren still attend classes. Now, on a lighter note, what about making the Philippine Street Festival 2016 at the Old Arbat a So, every Philipino I’ve brought here wants to come two-way street? back. They are impressed by historical sites, and also by the churches. I know that Russians who have visited Philippines absolutely love it. On our own, we have succeeded Indeed, there are Catholic cathedrals in Moscow… to persuade more Philipinos to come to Russia. The flow of Philipino tourists has soared in the time span We are liberal Catholics. Whenever we see a church of one year. But we start from a low base. We’ve with a cross, it is a church for us. been doing ‘personal diplomacy”, and I’ve been invit- ing friends to come to Russia and even stay at the God is one. embassy. There has been also an increase in official visits: members of the legislature and of the execu- True. But my problem is to get you guys to the Phil- tive (branch of power) now would come to Moscow ippines instead of Thailand. One of the first things more often. I did when I arrived here was to establish a legal regime for flights, including air cargo flights. Last Lately, I had 30 visitors from my neighbourhood, the year, we signed the agreement on entitlement to fly place where I live. At first, they were reluctant to come to each other’s capitals. Our air carriers go to Lon- here. You know, there are ‘stereotypes’, but once they don, for instance, overflying Russia. I expect them have come, things change. This is true irrespective of to have as stopover in Moscow. I think there will the time of the year: spring and summer in Moscow be traffic. are beautiful, while winter is magical. Coming back to cooperation with Moscow in food Provided it is not too frosty… products’ exports, let me ask: Do you do papaya? Having once tasted it in a Manila hotel, I conclude Well, if it’s frosty, I keep them indoors. I am very im- this fruit might be one of your soft-sell eye-open- pressed by the Moscow City Government: they keep ing entries on the Russian market. the streets clean. I lived for nine years in New York, and I in Washington, D.C. for another three years. In fact, almost all of our papaya is destined for the Jap- In Washington especially, when it is three inches of anese market. No more wild papaya. Now, the domi-

48 CAPITAL IDEAS October-December 2016 nant brand is called ‘solo papaya’, and it is earmarked River, you see that it is incomparable to others. Plenty of for the Japanese consumers. The returns are very high. scenic views. And a transportation route as well.

Would you entertain sort of a Papaya Festival in My other favourite places in Moscow are restaurants. Moscow? As you might know, the old Soviet lead- The grilled meals are great: shashlik, kebab, and above ers were fed papaya to ensure longevity. It might all the steaks. I lived in New York and I know what a be used for a marketing twist to generate inter- rib eye steak is. Your Russian steaks are great. I have a est with the Russian middle class, which is sensi- few selected spots: The Bison, The Happy Bones, and tive to health issues. the White Rabbit, The Ginza project restaurants. Earlier, I understand it was mostly processed meat served in We are currently exploring new vistas in exporting fruit Russia, like sausages. Now, it is fresh meat, the steak cut. to Russia. One of the local supermarket chains expressed interest in buying our bananas. We are encouraging Recently, Russian business people have bought more banana plantations at home. Another prominent Black Angus stock… fruit for exports is mango. There was mango booth at the Festival 2016 at the Old Arbat. People enjoyed it. …and there are doing very well here. What’s more, the food in general is good in Russia. There is no GMO. I think we might capitalize on Russians having a sweet tooth. We brought for display and to taste it sugar In leisure time, do you go to museums, theatres, made out of coconut. Ideal sugar substitute. No GMO, and conservatory? purely organically grown, certified in the US and the EU. A lot healthier. A Russian retailer with headquar- I do try, and it is easier when we have a delegation. ters in Moscow took an interest in the product, as well Then we hire a retired history professor, and she is our as virgin coconut oil. reliable guide. I like her very much: she’s got a grasp of history and can wrap up modern times with the past. You’ve been posted in Moscow since May 2015. She is a nationalist of some sort. Have you developed a liking to particular places around the town? In the good sense of it?

Architecture in Moscow speaks of History. But my ab- Oh, yes, she is very proud of Russian heritage and solute favourite feature is the Moscow River. I’ve done proud of President Putin, although sometimes she it several times. I’ve cruised several rivers in China and gets too passionate. Anyway, she is a gem and we re- along the Danube too. When you sail along the Moscow quest her assistance regularly. ■

October-December 2016 CAPITAL IDEAS 49 NOTHING VENTURED Jan Madeja: Russians love Mercedes-Benz and we love Russia Capital Ideas talked about weekdays at Mercedes-Benz Russia with Jan Karol Madeja, the company’s CEO

Mercedes-Benz can be rightfully called a pioneer of the automotive industry, as well as pioneer in terms of cooperation with Russia. The first Benz was delivered to Moscow in 1894, and the first shop to sell Daimler-Motoren-Gesellschaft vehicles opened in Moscow in 1910. Just two years after that, the company became the official supplier to the Royal Court of Russia. In 1923, the capital of the USSR opened its doors to the company, which transformed into the Daimler-Benz AG concern within three years. In December 1994, it became the first foreign company to establish a subsidiary in the RF. The subsidiary was called “Mercedes-Benz Automobiles,” and was later renamed “Mercedes-Benz RUS.” The company sells Mercedes cars and smart vehicles, as well as low-tonnage Mercedes-Benz cars. Among them is the SprinterClassic, which is manufactured by GAZ in Nizhny Novgorod, 440 kilometers outside of Moscow. Diesel engines for the vehicles are assembled at a plant in – a major industrial center on the , 280 kilometers outside of the Russian capital.

50 CAPITAL IDEAS October-December 2016 Mr. Madeja, people inevitably ask questions about the Yes, there are certain challenges that Mercedes-Benz encoun- company’s plans with respect to building their own ters, but I am confident that the Russian market will, in one way plant in Russia. Why didn’t you abandon this idea during or another, recover – maybe in a year or two. This is not just such difficult times, when a lot of companies are exiting my own personal opinion. If you read through expert studies, all the Russian market due to the crisis, the ruble devalua- of them agree that the Russian market is recovering. It is likely tion and the sanctions? Why do you need your own plant that it will not reach the same level as three-five years ago over in Russia? the next 10-15 years. But I’ll say it again: we’re talking about strategic planning, which isn’t impacted by temporary fluctua- I’ll start by noting that there aren’t “a lot of companies” ex- tions on the market. This is why “Mercedes-Benz” has not aban- iting the Russian market. Yes, some companies are leaving. doned plans to build a plant in Russia. I personally know of only two that are exiting the Russian market. But to address your question directly, when you have How far along are your negotiations with the Russian au- a plan that you have been discussing for some time, weighing thorities regarding the construction of a Mercedes-Benz the pros and cons of the project and outlining the specifics of plant in Russia? Have you already decided on the plant’s opening your own plant in the RF, you don’t think in terms location in Russia? of two, three or four-year time spans. We are talking about strategic planning, and the time frames for such projects are We really have been holding talks with Russian official bodies for much longer: 10 or 20 years. I don’t think anybody would over a year. A big challenge here is defining the conditions that deny the fact that Russia has been, is and will continue to be, comprise the framework for the implementation of this project. an important market. In Russia, these endeavors are carried out on the basis of the

October-December 2016 CAPITAL IDEAS 51 NOTHING VENTURED

Government Decree of the Russian Federation No. 166, dated Considering today’s challenges, talking about specific plans March 29, 2005, on the Amendments to the Customs Tariff of in Russia for the near future, for the next few months, is not the Russian Federation with respect to components imported an easy task. First, it is important to point out that we are for industrial assembly. This document gave auto manufactur- at least seeing the market in Russia stabilize to an extent. ers the opportunity to import an entire series of components There hasn’t been a revival yet. We are not expecting a sig- at preferential customs tariffs for industrial assembly purposes. nificant recovery in the coming weeks or months, but it is However, this decree is only in effect until 2019. So right now stabilizing. Suffice it to say that, for example, in July 2016, we we are working with the Russian government to jointly set up saw an increase in the number of sales for the first time in conditions that will define the flow of our operations after 2019. several months. It was a growth of only one percent, which, The agreements have not been signed yet, but we are moving of course, is not much. Nonetheless, this is evidence that the forward and I am confident that we will complete the negotia- market is stabilizing. tions in the next few months.

What kinds of vehicles do you plan to manufacture at this plant?

This doesn’t matter that much. We can manufacture several kinds of cars, including sedans and SUVs.

But you were promised some kind of state support and you’re guaranteed preferential advantages, right?

That’s the question. Everything comes down to the Govern- ment Decree No. 166, which we already talked about and which gives us certain advantages. Now we’re trying to fig- ure out what’s going to happen after 2019. In other words, since we want to implement a long-term project, we need transparency and stability for the next 10 years or so. Then we would feel confident.

Mercedes-Benz sold over 41,600 cars in Russia in 2015. This is a lot, considering the present state of affairs and how hesitant most Russians are to make major purchases. What are your plans for this year?

52 CAPITAL IDEAS October-December 2016 In terms of the upcoming months, we expect that the Russian Mercedes-Benz dealerships in Russia. I want to highlight that market will continue to stabilize. This depends a lot on one im- we’re not talking about upgrading or modernizing old dealer- portant factor – the stabilization of the ruble. If this happens, ships, but about erecting new ones. One of these dealerships the development will, among other things, play an important will be in Moscow, and another one will be located in St. Pe- psychological role – people’s trust will be restored, along with tersburg. However, the geographical scope of new Mercedes- confidence in the Russian currency and the country’s economy. Benz dealership locations is a lot more expansive. These include Then, people will be ready to make new purchases. That is, if the Kaluga, which is located in the Central Federal District and Russian currency stabilizes over the next few months, which I 160 kilometers outside of Moscow; Rostov-on-Don, the larg- am very much counting on, market stabilization will follow. We est city in the south of Russia with a population of over one are expecting that the Russian market will go through some- million people; Ufa, the capital of the Republic of Bashkorto- what of a revival in 2017. That’s our assessment of the present stan; Nizhny Novgorod, the administrative center of Nizhny state of affairs on the Russian market. Novgorod Oblast on the Volga; , the oldest cultural and economic center of the Nizhny Povolzhye Caspian region; Who are the main clients of Mercedes-Benz in Russia? Are and Perm, the port town on the Kama river in the eastern Eu- they primarily state institutions? What is the share of in- ropean part of Russia. Of course, the majority of our business dividuals in the company’s sales volumes in Russia? takes place in Moscow. The Russian capital is the biggest mar- ket, followed by St. Petersburg, but we are not forgetting about Quite the opposite, our main clients are not state institutions, which the regions and plan to expand our business there as well. make up less than one percent of the company’s sales volumes. We sell 100 cars to government structures every year, maybe 150. Of How do you assess the potential of the Russian market? course, this is a significant area of our activities in Russia, because it Do you think it will continue to be attractive to Western is important to have a presence in this segment. However, it is not a business people? determining factor for us. Our main clients are businessmen, man- agers, individuals. There are a lot of women among them who love This is not a tough question to answer. Take Mercedes-Benz, driving our cars. In terms of business people, they are, for example, for example. We have been on the Russian market for over Gazprom or Rosneft employees. If you think of the top ten compa- 40 years. We’ve been through a lot during our time here: nies in Russia, all of them have employees who drive our cars. ups and downs, perestroika, the default of 1998, the crisis of 2008...these were incredibly dynamic times. But we have How will Mercedes-Benz continue to develop in Russia in always been present in Russia and are happy to work here the future? Are you planning to expand your operations now. Russians love Mercedes-Benz and we love Russia. I across major centers like in Moscow and St. Petersburg or don’t think anybody doubts that the Russian market will re- are you going to strengthen your efforts in the regions? cover. Perhaps we won’t reach our former sales figures of 3.5 million cars in the next 5-10 years. Let’s say it will be closer to In order to understand the trend, all you have to do is look at 2.7-3 million cars. In any case, Russia will remain the second the facts. In 2016, we plan to open 7 or even 8 completely new or third largest distribution area in Europe. Thus, Russia is

October-December 2016 CAPITAL IDEAS 53 NOTHING VENTURED

and will continue to be a strategically important market with not sitting at a desk in front of a monitor, but at a cocktail bar, a lot of potential. eating fruit while watching a demonstration and listening to the advantages of a particular model. The contracts are also There is another important indicator: the country’s average signed here. number of cars per 1,000 residents. In Germany this indicator is 570 cars, in the US the number is over 600, in it is Mercedes-Benz RUS is an innovative and creative enterprise around 400 and in Russia it is about 330. That is, we are far that has implemented innovations of every scale, both big and from market saturation and the potential is obvious. And now small. Thus, I have to say that our activities here have had a do the calculations. If, for example, Russia reached the same positive effect. We are clearly a leader on the Russian market level as Poland in the segment, you immediately need an extra and are well ahead of our competitors. We are an extremely 10-15 million vehicles. Is this not possible in Russia – a country strong brand in Russia. What else could I ask for? that has gone through so many trials and tribulations, that is now rediscovering itself. Why would Russians not be capable How do you like Moscow? Do you feel comfortable here? of this? Overall, I’m the kind of person who feels fine anywhere in the You had an anniversary in August 2016: 4 years as CEO of world. It mostly depends on the person, not so much on the Mercedes-Benz RUS. Could you tell us a bit about your ex- city. The city has to be safe, clean and cheerful. Moscow is this perience? Has it been interesting? kind of city. Moscow is a tense, stressed and busy city. The Rus- sian capital’s traffic jams serve as a testament to this. I’ll give an You are well informed. Well, look at me: do I seem sad or dis- example. I lived in Stuttgart, which is where the Mercedes-Benz appointed? No. I greatly enjoy working in Russia. I’ll be honest: headquarters is located, for several years. I then lived in War- there is a lot Mercedes-Benz has to be proud of in Russia. Take, saw, Poland. I used to tell my friends and family that Warsaw for example, the product sales network in Europe, in countries is a very interesting city compared to Stuttgart: everything is such as France, Germany, Italy, England and so on. I guarantee somehow overwhelming, people are always in a hurry, there that Mercedes-Benz has the most up-to-date and luxurious are always traffic jams. There is a lot of pressure. After I moved sales network in Europe. It’s enough to visit the Mercedes-Benz to Moscow from Warsaw, it took me just three days to under- Plaza, our head office on Leningradsky Prospekt in Moscow, stand that Poland’s capital was actually a relaxed and calm city. and you will see how solid investments and creative ideas al- lowed us to create a completely different world when it comes Moscow is a metropolis that never sleeps. There have been to sales. This is especially true of our showroom, which is unlike several times when I flew into Moscow at one or two o’clock any other showroom in the world. There is not a single desk in in the morning and got stuck in traffic jams on my way home there. It’s more like a museum of sorts, a completely different from Sheremetyevo. At the same time, Moscow is an enter- sales world where everything runs on digital technology and taining, thrilling city that is colorful in all of its extremes, is where the salesperson meets the client in a cafe. That is, you’re multifaceted and alive. ■

54 CAPITAL IDEAS October-December 2016 useful info

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

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

Moscow Innovation Development Center Address: Voznesensky Per., 22, Moscow, 125009 Business Center Usadba, Ph: +7 (495) 225-92-52 http://inno.msk.ru

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

Department for Competition Policy Address: 12 Pechatnikov Pereylok, Moscow, 107045 Ph: +7 (495)-957-99-31, +7 (495) 957-99-77 Fax: +7 (495) 957 99 95 E-mail: [email protected] http:// www.tender.mos.ru

October-December 2016 CAPITAL IDEAS 55 NOTHING VENTURED Lorenzo Getti: Money shouldn’t be the end goal of business Lorenzo Getti is a 28-year-old Italian, father of three children, who is successfully managing his own cafe and shop that sells Italian DaLorenzo products in Moscow. The secret to his success is being in love with his work, working long hours and a big, sincere smile.

Lorenzo, why did you decide to start a business in the restaurant business prior to this - I had been in Russia? doing it for almost my entire life. The most challeng- ing part was learning Russian. I didn’t know Russian I came to Russia five and a half years ago, after I met at all and had always communicated with my wife in my wife. We studied together in Switzerland, at the English. International School of Hotel Management. We de- cided it would be better for a young couple to live in How did you decide to open your own business? Russia as opposed to Italy or Switzerland. Switzerland is boring, and we go to Italy for vacation. I really missed Italian food and real italian products. Italians love to eat well. I met two Italians while tak- What was your first impression? You got off the ing Russian classes, Ivano and Filippo. We have been plane and... partners ever since. We started by opening an online store that delivered products to people’s homes. Then Oh my God! It was in the middle of February 2010, we opened an Italian stand. In a couple of months, and it was negative 26 degrees outside. Switzerland I rented a bigger space and started to host Italian isn’t the warmest place either, but I was shocked by cooking workshops. These were workshops plus a the weather here. Of course there were traces of the party with wine and music. We thought of this format country’s communist past - lines at Sberbank, the back then and still have these events once a week. mail office, a lot of homeless people on the street (a There options for individuals and groups, as well as for lot more than there are now). So much has changed children. These workshops are always really popular. in five years. People have become more open, they make more jokes and trust their neighbors more. Then we opened a 3-in-1 cafe. This is a family cafe with a simple decor. We use fresh ingredients and in- What was your first job in Russia like? corporate products from farms. It’s a good approach, as 99 percent of our customers are long-term clients. First I got a job at the Italian restaurant Semifreddo, We create an atmosphere for people that they want then I worked at Bontempi. I had a lot of experience to come back for.

October-December 2016 CAPITAL IDEAS 57 NOTHING VENTURED

I wanted everything to be Italian - a job that is close kitchen when I was very small. I was learning how to to home, in an open area with a lot of flowers and make coffee before I could even reach the coffee ma- color, where everything is infused with romance. chine, and they used to give me a box for the water. This is unusual for Russia. For me, the best compli- ment is when customers say that we’re just like the What are the differences and similarities between cafes in Italy. Italy and Russia?

Do you miss home? The situation is very similar in terms of bureaucracy - it’s tough both here and in Italy. Networking, or per- A little bit. I miss the leisurely Italian life, when you sonal connections when you’re friends with some- can take a break for lunch or a nap. Dinner with body who can do you a favor and you can do some- the whole family, healthy food that’s good for you. thing for them in return, is also important. This is why people live until they’re 90 back home. In Moscow, I try to maintain and spread our tradi- The one thing that Russia is lacking is positive think- tions, to pass them on to my three children. It’s very ing, a good attitude and the understanding that work important to preserve family and traditions - the can be fun and enjoyable. things your parents teach you, which you are also going to teach your children. I really want a lot of Did the sanctions affect your business? kids, seven or eight, almost like an entire football team. At first there was a big impact, but now it’s easier. The exchange rate had a bigger impact. I really like Moscow and I would choose to live in Russia again if I had to do it over. I really like Rus- What are your plans for the future? sian people and their perspective is similar to mine. I have more friends here than I do in Italy, which is We are starting to create a new brand associated with important. consulting - buy Italian, from an Italian. I go to restau- rants often and see how things are set up there. I can I think that Russia has a lot of potential for business, a say that I see a lot of things that need to be changed lot of opportunities. But I dream of living in Russia for immediately, so we can share experience with those 8 months out of the year, spending the other 4 in Italy who are starting a restaurant business. and working remotely. The big problem is that Russian investors do this Do you want to pass your business on to your only for the money. I always ask - why do you want children? to open an Italian pizzeria? The majority say that it would be profitable. This is the wrong answer. Mon- Of course! A family business is something that is built ey should not be the most important thing, the focus over several generations. I started working in the of business.

58 CAPITAL IDEAS October-December 2016 For example, one can be a social cafe - a 24-hour party atmosphere where it’s easy to meet people while you drink coffee. There would be big tables where people need to sit next to each other and themed parties.

Another format is a family cafe where people go with their kids. A third one could be a place where there are 3-4 chefs that cook the food and bring them out to guests themselves. There would be a lot of small portions and simple snacks that people could eat over a bottle of wine. This would be a place where people can bring friends and have the chef talk about the food they prepared or even their personal lives (I can see that Russians love to socialize).

There are also small cafes, where the entire menu is comprised of one product prepared in different ways. There are a lot of options and recipes for gourmet food loves. There are thousands of places like this in Italy. For example, there are a ton of ice cream op- tions - milk-based, sorbet, fried ice cream, ice cream Do you plan on opening a cafe chain? cups and so on.

I’m not a fan of franchising. I don’t think that the same What advice would you give to foreigners who thing can be done over and over equally well. It would want to start a business in Russia? Three bit of be better to open other kinds of cafes. The format of advice. the future is not a huge restaurant or a chain, but the 3-in-1 family cafe, which is a combination of an open First and foremost - do what you love. Second, always kitchen, a shop and a place to eat. have a backup Plan B and even Plan C. And third, be kind to everybody and try to help people. Here, it’s I want to manage several locations under our brand important to lend a helping hand first in order to be for about 10 years, and each format should be unique. helped in return. ■

October-December 2016 CAPITAL IDEAS 59 NOTHING VENTURED All those terrible stories about russian tax officials are highly exaggerated

Ernstjan Rutten from the Netherlands helps Europeans find their way through the Russian tax laws

He came to Moscow almost 10 years After graduating from university, you began your career in Andersen, one of the world’s big- ago. Now he is head of the Moscow gest consultancy firms. But after a few years, it office of the company Taxperience, went bust. You moved then to Ernst & Young, and a few years later you were invited to work in its which he himself created. When you Moscow office. Did you have any connection with Russia before that? ask him about his plans for the future, he says: “I will have enough to do Absolutely none. I knew nothing about your country or about Moscow. That was in 2006, Russia’s econ- to keep me busy here for the next omy was growing rapidly. Staff were needed for the Moscow offices, and the management insisted. A fa- 20 years or so. After that, we’ll see”. miliarization trip was arranged for me, and I simply Ernstjan Rutten tells how to run a fell in love with this country. Here I immediately got to know two Russian colleagues who are still my best consultancy business in Moscow. friends. Then, they performed wonders of hospitality: they took me to Karelia, where we rode snowmo- biles. We visited Sochi, with its sea and mountain ski- ing, When I returned, I agreed at once to the posting. Only five weeks after the first discussion of the pos- sible transfer, I was settling down in Moscow. Initially,

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of course, it was difficult. I could not even make out to see what works, and what is the reason for what what was written on the road signs. But I was sur- doesn’t work. You have to keep your finger on the rounded by splendid people who did what they could pulse. The big consultancy firms are less often asked to to help me. And eventually I got the hang of it. This do so, also because of pricing. Therefore, when a Rus- place does have its disadvantages. Traffic jams, the sian based company also requires hands on assistance, cost of living. But it is a huge city, life goes on round irrespective if they are a subsidiary of a European stock the clock. And within two hours of travel, you find listed aircraft manufacturer, US listed IT company or a beauties of Nature you can’t take your eyes off. Dutch based transportation company, we are perfect alternative. We cooperate with our clients constantly, Is life in Moscow really more expensive than in we are linked both by a business relationship and in Amsterdam? most cases by friendly personal relations.

Some things are about twice as expensive. Property, How difficult is it to set up your own company in for example. Or eating in restaurants. Otherwise, if Russia? you think in euros, it is not all that expensive here. But you gradually get used to calculating everything It is not difficult at all. Registering took about a month. in roubles. And then prices really seem to have gone True, I set up the Moscow firm not as a Russian one, through the roof. But anyway, the cost of living is a but as a branch of a Dutch company. problem in any major city. Is that some sort of tax loophole? Does your business serve Russian companies en- tering the European market? Or is it the other way Not in the least, it just seemed to me more convenient round, foreigners opening businesses in Russia? that way. From the tax point of view, there is no particu- lar difference between a Russian firm and the branch of Now about 75 percent of our clients are foreign com- a foreign one. The accounting requirements for branch- panies. When I first came here, it was quite the oppo- es are slightly more relaxed and If it is expected that of- site. We only served Russian firms entering the inter- ten cash would flow out of and into Russia across the national market. But in the crisis of 2008, our clients frontier, it is more convenient to register a branch. But if set about winding up their foreign projects. There was it is a matter of export-import, or of an activity for which a time when we had simply nothing to do. And then a license is required in Russia, then there is no way you I began seeking out foreign clients interested in the can do without a Russian legal entity. Russian market. There proved to be quite a few of them. And as a result, I did what I had often dreamed But all the same, creating a company is not just of: I opened my own consultancy firm. registration. You have to rent an office, hire peo- ple and find clients, after all. How did you decide to compete with the giants of the industry? I admit I did have clients with whom I had cooperated in the past. And at first I was working on my own, so I took The pie is big enough. The point is that the big con- a little eight-square-metre room in an office like centre, sultancy companies usually find a problem in a client’s where they provided everything necessary for loners like business and propose a solution. That is, they study the me. They even provided secretaries to answer phone situation and write a report. But very often, the way calls all day, and negotiating rooms. It was obviously these recommendations are carried out also needs inconvenient to receive clients in that tiny room. What monitoring and supervision. At every stage, you have saved me was that usually, company managers do not like travelling to negotiations through traffic jams, they About Ernstjan Rutten said “Come to us”. And I was glad to go to them. After about a year, I moved into another office. The firm was His education was in law. He worked in the Netherlands in growing, I had to hire staff. That business centre was OK the international companies Arthur Andersen and Ernst & while I was on my own, but the price of a square meter of office space was double the market average because Young. From 2006, he worked in the Russian office of Ernst of the extra service. So when friends helped me to find & Young. In 2008, he founded his own consultancy company new premises, I was glad to change location.

Taxperience in Moscow. It specialises in keeping taxes in So renting office premises was such a problem control. Taxperience has offices in various countries and is a that it needed the help of friends? member of an international network. It wasn’t exactly difficult, but for some reason it took a lot of time and effort in Moscow. That was some

62 CAPITAL IDEAS October-December 2016 years ago. Now there is plenty of office space avail- the tax base. In the Netherlands, this would not create able, and prices are falling too. But at that time… It a problem. Everything bought for the office is more or seemed I was fated to come up against bottlenecks… less automatically included in the firm’s expenses and Once I’d made it, they didn’t exist any more. the documentary supporting documents required are much less. You, generally, have to prove justification for You mentioned selecting staff. How do you find expenses only if you have bought, for example, a Fer- that here? How much do professionals in your rari. Here you have to prove and documentary support field cost, and how well qualified are they? the need for almost every business purchase, whether it is office equipment or petrol for a service car. I usually sought out people through acquaintances. I wanted the key staff members to be people I could So those preparing to run a business in Russia trust. Once or twice I took on middle-level person- should be prepared to deal with tax events ev- nel through employment agencies, All our people are ery day. quite well qualified, we couldn’t allow it to be other- wise. But here is one thing I’ve noticed: middle-level Actually, it’s not as hard as all that. You have to realize personnel in Russia cost the employer much less than that unlike in European countries, tax law is very for- in Europe. But top-lever managers, the real profes- malistic here. In the West, it is generally sufficient to sionals, cannot be had cheaply here. You have to pay send documents to the tax office by email. But in Rus- them more than you would in Holland. sia they have to be stamped with a seal and sent on paper, being though that it is planned to change this Let’s talk about the taxes themselves. Take a as well. However, if you go into all these formalities young man selling soda pop on Tverskaya Street and strictly fulfill all the requirements point by point, in Moscow. And take the same sort of young man generally no problems should arise. All those terrible in the red light district of Amsterdam. Who will stories about Russian tax officials, who take bribes, pay the most in taxes? or “make business a nightmare”, as they say here, are highly exaggerated or originate from (deliberate) fail- I don’t think either of them will pay any taxes at all. ure to fulfil the requirements. Yes, if documents are But to be serious, the tax burden on small compa- filled in incorrectly, you will be fined. There is no beat- nies in Russia is considerably less than in any of the ing about the bush here in that respect. But if there European countries. There, the rate is from 30 to 50 are no breaches, you should be fine. percent, but here, it is from six percent. For larger companies, the situation levels out somewhat. Cor- What are the most common problems your cli- poration tax here is 20 percent (being that the effec- ents bring to you? tive tax rate is often a few percent higher because of not being able to deduct all expenses) here and 25-30 Well, for example, the Russian tax rules and reporting percent there. Other payments are about the same. requirements are as mentioned on some items quite On the whole, large companies in Europe have to pay different from let’s say the European or US rules. Of- a little more to the state than in Russia. ten even that much that the global transfer pricing policy or reporting software globally used may not be What is the difference between the tax laws in applied in Russia. Often clients ask us if we cannot Russia and in Europe? aline the Russian compliance. This is our specializa- tion and generally possible if the client is ready to The concepts are quite similar, however, the Russian make some changes. Also, the Russian law does not system has its particularities which may make a big refund VAT to non-Russian tax payers unlike in most difference. In Russia, many different returns have to other countries. If you are not aware of this fact and be delivered to different addresses, such as the pension you don’t adept your business model accordingly you fund, social security and so on. In Europe the amount may face a substantial tax inefficiency. The issue of payable come to about the same, but you file less re- not being able to recover Russian VAT is most visible turns and to one or two addresses only. In the Neth- in structure where a Russian company acting as an erlands, when an employee goes on paid holiday, he agent for a foreign company and importing goods. simply receives it usual salary. But here, you have to account for working days at one rate and days off at a How good are the chances of quickly understand- different one. The result often comes out to be more ing the nuances of local tax rules? or less same, but it takes a lot more effort to get there in Russia. Or take the cup you’re drinking coffee from. It took me four years. So at the start, it is certainly I have to put quite some efforts to prove that it is a better to go to a good consultant. ■ necessary business expense and have the proper docu- mentary support in order to be able to deduct it from For Capital Ideas courtesy of BIGMOSCOW

October-December 2016 CAPITAL IDEAS 63 WELLBEING To Russia for our wellbeing!

The devaluation of the ruble and the Western sanctions have had a positive effect on the development of medical tourism in our country. The number of foreign tourists coming to Russia for medical procedures is increasing every year. At the same time, Russians are also opting to get medical care at home. President of the Russian Association of Medical Tourism Konstantin Onishchenko talked about who visits Russian medical clinics and why in an interview with Capital Ideas.

How does Russia fare on the international medical tour- ism market?

Recently, Russia made the list of the top-10 most visited coun- tries in the world. Our tourist volumes amounted to 31.2 million people. Of course, this situation was possible due to favorable foreign exchange rates, as well as because Visit Russia offices have been doing a lot of work to inform foreigners about the tourist opportunities in our country.

What are the trends in Russian medical tourism in 2016?

Russia is gaining ground in the sphere of medical tourism like never before. This goes for both domestic and foreign tourist flows. But the ruble devaluation really had a lot to do with the situation we have on our hands today. The sanctions had a pos- itive effect on the medical tourism industry in our country. For- eign patients started going to Russian clinics for lower prices, and Russians started to opt for medical procedures at home instead of going abroad (both because of price differences and instability across the globe). It is also important to point to an increase in the government’s interest toward the industry, and initiatives for the development of medical tourism at the high- est levels of government.

The total increase in the number of medical tourists in the first quarter of 2016 amounted to 35% compared to the same time period last year. In the second quarter of 2016, the number of medical tourists visiting Russia increased by

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about 30% compared to last year. About 4,700 – 5,000 peo- come because of the low prices). The expenses vary depending ple from different countries visited Russia in April-June of on the type of procedure. For example, expenses for IVF for a 2016. foreign woman in Moscow come out to about 300,000 rubles on average, while the services of a good dentist amount to Where do foreigners usually go for medical services? about 70,000 rubles.

Foreigners have a strong preference for the central region of It’s important to note that we are getting close to global indi- Russia (about 75% of foreigners visit clinics in the capital), then ces in terms of IVF – about one out of every 150 children are there is the south (which accounts for about 15%), and the other born with the help of this method. In Europe, about 3-4.5% of all 10% go to other regions in Russia. children are, on average, conceived with the help of IVF. In the US, this indicator is just 2%. Dental services, plastic surgery and Most of the tourist flow goes to the capital. While about 2,800 eye surgery are also popular services for foreign citizens in the people visited Moscow in the first quarter of this year, the num- Russian capital. Spa resorts, as well as full diagnostic examina- ber of medical tourists increased to 3,400-3,500 people in the tions are also becoming more popular, as $600 procedures in second quarter. Moscow would cost $2,000 back home.

The total number of tourists who go to get medical services French people, Germans, Americans, Brits, Italians, Estonians, in the capital has shown stable increases compared to last Finns and Poles come to Moscow for dental care. There is year’s indicators. In the first half of 2016, about 7,000 for- also stable demand for dental services among Chinese tour- eigners visited Moscow. I think that we can expect a total ists. There are also a lot of medical tourists in Moscow from of 20,000 patients by the end of the year, and this is just in ex-Soviet countries (Uzbekistan, Kazakhstan, , Belarus, Moscow alone. Tajikistan, etc.).

What kinds of medical services do foreigners seek out What countries do Russians most often visit for medical most often in Moscow? services?

Foreign tourists from Europe and UAE come to Moscow for IVF Germany and Israel have been very popular for a very long (in vitro fertilization). According to our study, which was con- time among Russian medical tourists. Countries like Finland, ducted at the end of last year, 55% of these tourists are Italians the Czech Republic and Spain are also popular. About 30,000 (the procedure was banned in Italy up until recently), 19% are people visited Germany in 2015 for medical procedures or di- British, 15% are Jewish (these women were coming to Russian agnostics. About 26,000 Russian citizens went to Israel in the clinics because of age limits in their home country), 9% are Ger- same time period. About 20,000 Russians sought medical ser- man (also due to legal barriers) and 2% were Americans (who vices in Finland.

66 CAPITAL IDEAS October-December 2016 regions don’t just come here on their own, but are directed here by their local medical institutions.

Well-off people from the regions come to Moscow for detox programs and spa resorts, as well as for cosmetology servic- es and plastic surgery. For example, last year spas and other wellness centers in Russia hosted a total of 4.3 million domes- tic tourists. Since the best wellness and spa resorts are in and around Moscow, most people seeking these types of proce- dures often come here.

Right now there is a new trend that I think will be around for the next few years: because of an increase in prices for differ- ent services in the capital, people are starting to travel to the regions for medical services. Clinics, in Vladimir, Kaluga, Nizhny Novgorod, Tver, Tula and Yaroslavl are starting to gain popular- ity among Muscovites. Generally speaking, the purpose of trav- elling to these cities is dental tourism, but people also travel for traumatology, orthopedics, plastic surgery and cosmetology.

What are your forecasts in terms of the industry’s devel- opment?

According to our forecasts, medical tourism in Russia will grow by 10-11% percent per year. This is 2.5 times higher than regular tourism. This will continue for another five years, and it’s pos- sible there will be more growth in 1-2 years. If during these five years we make sure that we standardize and license everything, Today, medical tourist flows (not just for Russians, but for remove unscrupulous providers and learn to work in accordance many people all over the world) have shifted toward South- with international standards, we will have even more patients. east Asia, Oceania, South America, Asia, India and Thailand. I think that my role, before anything is else, is to make inbound The prices there are 50-70% cheaper than in the States. At medical tourism more popular. Russia has a lot of opportunities the same time, the medical services are fairly good: all doc- for medical treatment, rehabilitation and spa treatments. tors undergo training abroad, in the US. The most popular areas are cardiology, neurology, orthopedics, GI tract and The medical tourism sphere will continue to expand. This in- anti-aging procedures. cludes ophthalmology. We have a famous brand here, Fyodor- ov, which is present in both Moscow and the regions. Plastic However, I must say that the volume of outbound medical surgery is developing now as well – we have enough equip- tourism has decreased by 16-17% recently due to the ruble ment and specialists. Cardiology has a lot of potential, as Bak- devaluation, the sanctions against the RF and overall social oulev is a brand that people recognize all over the world. unrest in European countries related to refuges and terrorist attacks. The number of inbound tourists will undoubtedly increase to- ward the end of the year – this is an obvious and indisputable What about trends on the domestic medical tourism fact. The increase in the number of foreign medical tourists market? will continue through next year. This trend is facilitated by the government, which is planning to introduce long-term medi- A few years ago, about 8 million people in Russia travelled do- cal visas for tourists who are travelling to Russia for medical mestically for medical procedures. Now, this figure has sur- treatment. Moreover, the process of extending a medical visa passed the 10 million mark. in case of an emergency will also be simplified. The govern- ment also has plans to increase the frequency of citations for Domestic tourists spend over 250 billion rubles on medical pro- Russian doctors and universities, which will allow patients to cedures. 32% of these expenses go to dental services, gynecolo- learn more about Russian medicine and training doctors have gy and urology account for 23%, cosmetology accounts for 12%, had in order to make a decision about where to go for their ophthalmology accounts for 8% and cardiology makes up 5%. medical needs.

Usually, patients who need more complicated procedures trav- In turn, the Association of Medical Tourism, which represents el to the Russian capital, since the best equipment is not dis- the interests of not only market participants in Russia but also tributed throughout the country evenly. A lack of highly quali- patients, will facilitate the adoption of the necessary govern- fied professionals who can perform complicated operations can ment decisions aimed at developing the industry, as well as in- also be a reason people choose to travel to Moscow from their troduce initiatives that will help medical tourism in Russia em- hometown. It is also important to note that patients from the bark on a new stage of development. ■

October-December 2016 CAPITAL IDEAS 67 MANAGEMENT

Useful connections The City Agency for Investment Management is celebrating its 5-year anniversary

The City Agency for Investment Management was cial sphere. In 2013-2015, the number of PPP-based contracts established in 2011 as an organization that special- signed in Moscow totaled over 65 billion rubles. The northern Kutuzovsky Prospect relief road, which is a unique high-speed izes in attracting investment to Moscow and working highway 11 kilometers in length that stretches from MKAD to with investors. The agency provides support for proj- the city center, is one example of a PPP-based project. Togeth- er with the investment community, the city is considering the ects in accordance with the single window principle, possibility of implementing other PPP-based projects in the develops economic and legal conditions for projects sphere of road construction. Another PPP-based project imple- mented with the agency’s participation is the acquisition and (including for those implemented through public- service of the Moscow metro rolling stock in the form of life- private partnerships), implements measures for the cycle contracts. improvement of the investment climate in the city In terms of projects aimed at the development of the social and promotes investment opportunities in Moscow sphere, the agency takes part in the implementation of the preferential rent program called “1 Ruble Per Square Meter Per in Russia and abroad. Year.” Within the scope of agreements signed as part of this program, investments into new Doktor Ryadom clinics, the es- he City Agency for Investment Management is tablishment of kindergartens and schools, and the restoration tackling a serious task – the promotion of in- of cultural heritage objects amount to 3.8 billion rubles. Over vestment opportunities and Moscow’s appeal as 100 facilities across all three areas have been completed since a place to implement investment projects,” says the program was launched. the agency’s director Leonid Kostroma. “T Today, there is also active support of high-performance indus- Within the scope of public-private partnership (PPP) develop- trial enterprises and new investment projects in the capital. ment, the Agency helps attract investments to large, resource- The measures proposed by the Moscow City Government pro- intensive investment projects in the sphere of transportation vide industrial enterprises with 17-25% tax reductions. The City and infrastructure, as well as projects with participation of Agency for Investment Management provides financial exper- small and medium-size business aimed at developing the so- tise for applicants seeking to acquire the status of an industrial

68 CAPITAL IDEAS October-December 2016 complex and technoparks, preparation, launch and support of On average, over 3,000 users visit the portal every day, 10% of new investment projects. which are foreign users. Over 4,300 entrepreneurs are regis- tered on the investor dashboard. The agency also provides expert evaluations of contract and agreement values with the goal of optimizing expenses within As an organization subordinate to the Moscow Department of the scope of procurement needs for the City of Moscow. As a Economic Policy and Development, the agency actively coop- result, the city budget managed to save more than 10 billion erates with the executive authorities, serving as a link in the rubles since the beginning of 2016. dialogue between business and the Moscow Government. The agency provides a direct channel of communication between The City Agency for Investment Management is the operator investors and the city, providing business consultations and in- of the Moscow Investment Portal (www.investmoscow.ru) - a formational assistance. guide for investors and entrepreneurs. The portal gives access to city properties that are up for sale, as well as land designated “There are institutions for cooperating with investors that have for industrial use and the technopolises/technoparks active in been created and are currently operating in Moscow. Their the city. In the first 6 months of 2016, there were a total of 1,300 main function is to coordinate investor interests with priori- property and land sales totaling 8.1 billion rubles. ties for the capital’s development, as well as to offer the busi- ness community new projects and transparent mechanisms The portal is constantly supplemented with additional services for cooperating with the city. The City Agency for Investment for investors. In 2016, a new function was integrated into the Management is one such institution. The agency provides sup- portal that allows entrepreneurs to apply for tax benefits within port for projects in accordance with the single window prin- the scope of the mechanism created to support the real sector ciple, promotes the development of the investment process and of the economy. Before the end of the year, a support service for ensures effective cooperation between public authorities, the tender winners and tax calculators will be added to the website. business community and society,” says Maksim Reshetnikov, All services are featured in the same section, which is aimed at Minister of Moscow Government and Head of Department for making doing business more convenient, saving investors a lot Economic Policy and Development. of time and increasing the efficiency of cooperating with the Moscow Government. The portal was used over 16,000 times “The City Agency for Investment Management will continue in the first 7 months of 2016. to improve the investment climate in Moscow and trans- form the city into a convenient place to live and do busi- There have been 1.5 million visits and 8 million page views re- ness, which became an area of focus 5 years ago,” Leonid corded since the portal was first launched in February 2014. Kostroma concluded. ■

October-December 2016 CAPITAL IDEAS 69 MOSCOW VOCABULARY

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

СНЯТЬ перед кем-то ШЛЯПУ – sn’at shlapu. (To take off one’s hat before someone) Explanation: To express admiration for a person’s achievements

СЛЫШНО, КАК МУХА ПРОЛЕТИТ – slysho kak mukha proletit. (One could hear a fly flying past) Explanation: It’s absolutely quiet.

ПРИНИМАТЬ ЗА ЧИСТУЮ МОНЕТУ – prinimat’ za chistuy mone’etu. (To take for a pure coin) Explanation: To take something seriously.

ОТКРЫВАТЬ кому-либо ДУШУ/СЕРДЦЕ – otkryvat’ dushu/sertse.

Pictures by Anastasia Saifulina Pictures (To open one’s soul/heart) Explanation: To tell someone frankly of one’s true feelings.

СТОЯТЬ ГОРОЙ – stoyat’ goroy. (To stand for someone or something like a mountain) Explanation: To stand firmly for someone or something.

ХОДИТЬ ВОКРУГ ДА ОКОЛО – khodit’ vokrug da okolo. (To walk round and about) Explanation: Not to come to the point.

70 CAPITAL IDEAS October-December 2016 ГОТОВ СКВОЗЬ ЗЕМЛЮ ПРОВАЛИТЬСЯ – gotov skvoz' zemlu provalittsa. (Ready to fall through the ground) Explanation: Ones feels so ashamed that he wishes that the earth would swallow him up.

ГОВОРИТЬ ПОД РУКУ – govorit’ pod ruku. (To speak to someone’s hand) Explanation: To say something at the wrong time.

КАК РУКОЙ СНЯЛО – kak rukoy sn’alo. (As if taken off by the hand) Explanation: Completely disappeared as if by magic.

ВЫБРОСИТЬ ИЗ ГОЛОВЫ – vybrosit’ iz golovy. (To throw something out of one’s head) Explanation: To give up the idea.

ЖИТЬ НА ШИРОКУЮ НОГУ – zhit’ na shirokuyu nogu. (To live on a broad foot) Explanation: To live in luxury.

ИДТИ В ГОРУ – idti v goru. (To go uphill) Explanation: To gain influence.

October-December 2016 CAPITAL IDEAS 71 Life&leisure Music Museums: Glinka, Tchaikovsky, Prokofiev and more Moscow has a lot of unique music museums to be proud of. After all, a lot of great composers that are internationally known as legendary artists lived in the Russian capital. People have always been and always will be interested in music. And people can be split up into three categories: music fans, talented performers, and those who are extremely interested in the history of music. But everybody likes to visit music museums where they can learn about the lives of great composers and musicians, the history of music culture and a wide range of musical instruments. The Glinka National Museum Consortium of Musical Culture

The Glinka National Museum Consortium of Musical Culture is a huge treasure trove of arti- facts related to music culture that has no known analogues in the world. It contains a unique collection of musical and literary manuscripts, studies on the history of music, rare books and musical publications. The consortium currently houses over 700,000 museum items. There are autographs, letters, photographs and documents related to the lives and work of Rus- sian and foreign musicians. The collection of musical instruments from all over the world is particularly notable. In May 2010, items from the State Collection of Unique Musical instruments were added to the museum’s collection: stringed instruments by craftsmen from various countries and ep- ochs, including masterpieces created by A. Stradivari and the Guarneri and Amati families. The collection of audio and video recordings is extensive and the paintings/drawings at the museum could just as well belong on the walls of the best art museums in the world. The consortium has a modern sound recording studio and a concert hall (Prokofyevsky) with a Schuke organ. The lobby of the museum houses an antique organ made by the German craftsman Friedrich Ladegast, which is also used for concerts. The museum’s collection of au- dio and video recordings is one of the largest in the country (about 89,000 units) and contains recordings from different parts of Russia as well as from all over the world. This is a unique archive of sound recordings that lets us track the development of sound recording from the phonograph to tapes, audio and video cassettes and modern CDs. It was founded in 1946. The foundation of the museum’s sound archive is a set of records (about 60,000 units) that date back to recordings from the 19th century. The collection in- cludes the first records of companies like “Grammofon,” “Zonofon,” “Pate” and “Metropol,” as well as records from the Soviet era (like those released by “Melodia”) and foreign records. The museum has some of the earliest records of famous 20th century artists, such as singers N.Bolshakov, D.Buhtoyarov, E.Vitting, A.Labinsky, L.Lipkovskaya, M.Mihaylova, A.Nezhdanova, V.Panina, N.Plevitskaya, L. Sibiryakov, L.Sobinov, N.Shevelev, violinists F.Kreisler, Y.Kubelik and M.Erdenko. F. Shalyapin’s records occupy a special place in the museum. The museum also contains recordings from other famous performers of the 20th century (in- cluding Rachmaninov, E.Gilels, W.Gieseking, A.Goldenweiser, G.Gould, S.Richter, Y.Flier, L. Ko- gan, D.Oistrakh, Y.Heifetz, B.Gigli, P.Domingo, M.Callas, N.Golovanov, H.Karajan, Y.Mravinsky, Y.Svetlanov, as well as the outstanding Russian and foreign orchestras, choirs, ensembles). There are recordings from different schools, different types of classical music, concerts and opera performances, folklore, music for children and more. The consortium includes the following museums: Central Museum of Musical Culture, Memorial Apartment of Alexander Goldenweiser, Memorial Apartment of Nikolai Golovanov, Inquiries by phone: (495) 739-6226 Web: http://glinka.museum/contacts/ Chaliapin House Museum, “Pyotr Tchaikovsky and Moscow” Museum, Museum of Sergei Pro- kofiev and The S.I. Taneev Museum (under construction) There is no other music museum of this scale in any other country in the world. It is no won- der that in the beginning of 1995 the President of the Russian Federation enacted a Decree that included the Museum Consortium in the State Body of Especially Valuable Cultural Heri- tage Sites of the Peoples of the Russian Federation.

72 CAPITAL IDEAS October-December 2016 Central Museum of Musical Culture

Five halls, each finished in a different color, represent over 700 traditional and profes- sional musical instruments. The exposition includes instruments from the peoples of Russia, as well as from Europe, Asia, the Americas, Africa and Australia. Hall No. 1. Musi- cal instruments of the peoples of the Russian Federation. Hall No. 2 Musical instruments of the peoples of Europe. Hall No.3. Musical instruments of the peoples of Asia, Africa and Latin America. Hall No. 4 Professional European musical instruments. Instruments for symphonic orchestras and brass bands. String keyboard instruments. Hall No. 5. Me- chanical musical instruments, sound recording and audio equipment from the first half of the 20th century, electronic instruments. One of the displays is dedicated the one of the museum’s oldest collections - 36 musical instruments from the people of Central Asia and Kazakhstan. The collection was put together by Augustus F. Eichhorn, who was a Russian military band conductor at the Turkestan Military District in 1870-1883.

Address: Ulitsya Fadeeva 4, m. “Mayakovskaya,” One of the most valuable exhibits is a spinet completed by Italian craftsman M. Yadr, “” which dates back to 1565. The piano belonged to a famous Florentine Medici family Tel: (495) 739-6226 and features three medallions with images of the family members. There is also a Hours of Operation: 11.00am-7.00pm harpsichord made in 1766 by the prominent English craftsman Burkat Shudi. Web: http://glinka.museum/tsentralnyy-muzey.php?clear_ cache=Y The hall features modern instruments from the collection of the famous drummer and composer Rishad Shafi, including a part of his “giant drum set.” Chaliapin House Museum

This was the first Moscow home of Feodor Chaliapin, and it is set up to reflect Chal- iapin’s special home atmosphere. He bought this house on Novinsky Boulevard in 1910, when he was 37 years old. He lived here for twelve years, which is when his talent and his art blossomed. He became famous all over the world while living here. The interior of the house was recreated in accordance with old photographs and sto- ries told by the singer’s children. A white hall, a green guest room, dining hall, office, billiard room...life in these rooms was orderly, undisturbed by the artist’s busy sched- ule. In the Chaliapin practiced with guests in the White hall, celebrated benefits in the dining room and read in his office. Chaliapin loved to play pool, and his wife gave him a billiard table as a present. The museum houses authentic items that belong to the Chaliapin family. These items Address: Novinsky Boulevard 25-27, m. “,” include furniture, a Bechstein piano, a grandfather clock, wedding candles used by Fe- “” dor and his wife, theatre costumes and posters. The house has a lot of paintings that Tel: (499) 255-9864 were given to Chaliapin by various artists, including V. Serov, K. Korovin, V. Polenov, Hours of Operation: Wed-Sun 11.00am-7.00pm M. Nesterov and M. Vrubel. The singer’s son, Boris Chaliapin, donated a lot of his own Web: http://glinka.museum/contacts/dom-usadba- works to the museum as well. shalyapina1.php?clear_cache=Y The house museum holds exhibitions, thematic tours, concerts by famous and young per- formers, events for children, and workshops led by famous Russian and foreign singers. “Pyotr Tchaikovsky and Moscow” Museum

Over the course of the 12 years he spent in Moscow, Tchaikovsky moved around a lot. He lived at the house on Kudrinskaya Square, in an apartment that took up half of the second floor of a wing in a large old manor, from September 1872 until November 1873. Here, he worked on the Second Symphony, music for A.N. Ostrovsky’s fairy tale “Snegurochka” and the symphonic fantasy “The Tempest.” Today, the house on Kudrinskaya is an important focal point of Moscow’s museum and concert life. The museum hosts temporary exhibitions, tours and thematic classes, club meetings and events for children. The two halls hold chamber concerts by famous and young performers. The exhibition is based on original materials: historical documents and the composer’s personal items, photos of Tchaikovsky, his colleagues, friends and family members, etch- ings, lithographs, and drawings. There are also rarities from the composer’s manuscript Address: Kudrinskaya Square 46/54, m. “Barrikadnaya” Tel: (495) 691-1514 inheritance: over fifty autographs (including “Eugene Onegin,” “Queen of Spades” and oth- Hours of Operation: Wed-Sun 11.00am-7.00pm ers), scores and literary manuscripts. Web: http://glinka.museum/contacts/muzey-p-i- The unusual sound and artistic design of the exhibition space help to create a complete chaykovskiy-i-moskva-.php?clear_cache=Y image of the composer’s life.

October-December 2016 CAPITAL IDEAS 73 Life&leisure Museum of

Composer, pianist and conductor Sergei Prokofiev spent the last six years of his life (1947-1953) in this house, the apartment of his second wife’s parents. Here, the com- poser worked on his ballet called “Tale of a Stone Flower,” Symphony No.7. Prokofiev also hosted guests here, including famous musicians such as N. Golovanov, P. Lamm, S. Samosud, L. Atovmyan, M. Rostropovich and S. Richter. The composer’s office has been recreated with original materials. Now, museum nights and events are held here on a regular basis. A lot of these events target a younger au- dience base: those who are open to experimentation and are in tune with Prokofiev’s spirit of innovation. There are a number of classes for children that introduce them to the composer’s art. These include a tour called “A Walk Along Kamergersky with Sergei Prokofiev,” interactive educational programs called “School of Prodigies. How to Write an Opera,” “How Petya Defeated the Wolf,” “Cinderella’s Shoe” and others. Address: Kamergersky Pereulok 6, m. “Okhotny Ryad,” “Teatralnaya” This year, the world is celebrating Prokofiev’s 125th birthday. The event program in- Tel: (495) 692-0567 cludes festivals and exhibitions, an international academic conference, the second Hours of Operation: Wed-Sun 11.00am-7.00pm composer competition “Time of the Prokofievs” and much more. Web: http://glinka.museum/contacts/muzey-s-s-prokofeva-. php?clear_cache=Y ’s Home on Taganka

The idea to establish a museum dedicated to Vladimir Vysotsky came up immedi- ately after the poet passed away in 1980. The Taganka Theatre, which Vysotsky col- laborated for 16 years with, kept receiving letters from fans who praised his talent. They also received exhibits for the future museum. The collection started developing back in 1989, when the museum’s Directorate was first established. People came by with old tickets and programs, recordings from concerts, self-published collections of Vysotsky’s poetry and photos. Today, the museum’s collection is home to over 40,000 items. It is based on the per- sonal archives of Vladimir Vysotsky (autographs, personal belongings and documents), as well as the archives of his family members. Recordings of his live performances and theatre productions hold a special place at Address: Ulitsya Vysotskovo 3, m. “Taganskaya” (Ring Line) the museum. The collection of photos gives visitors a glimpse into his numerous trips Tel: (495) 915-7578, 915-7199, book stand: (495) 915-4558, and meetings. A lot of photos focus on his productions at the Taganka Theatre. The theatre and concert hall: (495) 915-4558 museum actively collects materials that speak to the influence Vladimir Vysotsky’s po- Hours of Operation: Tue, Wed, Fri, Sat 11.00am - 6.00pm, etry had on our lives. The museum’s archives also store research materials, school es- Thu - “Night at the Museum” 1.00pm - 9.00pm, says and university dissertations (a lot of which are based on the museum’s materials). Sun 11.00am - 6.00pm Web: http://www.visotsky.ru/ Alexander Scriabin Memorial Museum

The museum is located in the very center of Moscow, inside one of the quiet lanes near Arbat. Scriabin spent the three last years of his life inside the old house, residing there from 1912 to 1915. A museum opened here on July 17, 1922. It functions just like a cultural center, hosting music concerts on the first floor. This house was well-known to the composer’s contemporaries. This was a powerful cultural center in Moscow. Frequent gusts included philosophers N. Berdyaev, S. Bulgakov, artists N. Shperling and L. Pasternak, theatre figures V. Meyerhold, A. Tairov and A. Coonen, poets U. Bal- trusaitis, K. Balmont, V. Ivanov and many more. A.N. Scriabin’s museum is unique: it is living proof of the Silver Age of Russian Culture. It stores everything that surrounded Scriabin throughout his lifetime: the grand piano that was made especially for him, works of art, a copy of "A Guide to the Outlook of Indian Yogis" Address: Bolshoy Nikolopeskovsky Pereulok 11, m. and the first “color music” - a wooden circle with twelve lamps created in accordance with “Smolenskaya” Scriabin’s design to accompany his first color music piece “Prometheus. The Poem of Fire.” Tel: (499) 241- 1901, (499) 241-7539 Hours of Operation: Wed, Fri-Sun 11.00am–7.00pm, Thu The museum also houses A.N. Scriabin’s personal library. It includes books on various 1.00pm–9.00pm subjects: theosophy, philosophy, aesthetics, ethics, science. Many of these books con- Web: http://anscriabin.ru/ tain notes that the composer made.

74 CAPITAL IDEAS October-December 2016 The Mirek Russian Accordion Museum

From 1947 to the early 1970s, Doctor of Arts Alfred Mirek has been gathering academic and historical materials about accordions - over two hundred rare kinds of music in- struments, photographs, biographical information, posters, recordings and other ma- terials. In 1980-1994, Alfred Mirek collected another 100 accordions. This collection served as the foundation for the museum. The Mirek Russian Accordion Museum is the only accordion museum in the country, and one of only four in the world. Here, you can see a reconstruction of the first ac- cordion in the world (1783), go to a traditional Moscow restaurant or visit concerts featuring musicians who play accordions and harmonicas. Entertainment programs such as costume tours, musical tea parties familiarize visitors with the history of ac- cordions and a wide variety of fascinating reed instruments. They give visitors the op- portunity to listen to what instruments sounded like in the past via performances by Address: 2nd Tverskaya Yamskaya 18, m. “Mayakovskaya” professional musicians who also act as tour guides. Tel: (499) 251-6730 Hours of Operation: Tue-Wed 10.00am-6.00pm, Thu There is a foot accordion, a musical weathervane, an accordion with bells from Sara- 10.00am-9.00pm, Mon-Sun 10.00am-5.00pm tov, tiny musical instruments that look like turtles and so on. There is also a recon- Web: http://mosmuseum.ru/association/harmonica/ struction of a workshop with old drills and screwdrivers, which was once used by a craftsman who made and repaired accordions. Memorial Apartment

In the early 1970s, Sviatoslav Richter and Nina Dorliak moved into to an apartment on the 16th floor of a regular building on Bolshaya Bronnaya, not far from the Conserva- tory. Entering the apartment is like walking into a different world. There is no luxury or excessive trinkets. Everything reflects the personality and lifestyle of the owner, a special kind of energy. In the big room, referred to in the old-fashioned manner as “Zal,” Richter practiced by himself and with other musicians. There are two Steinway & Sons pianos here, two antique Italian floor lamps given to him by the mayor of Flor- ence, a tapestry and pictures. The room was used to listen to operas and watch films. In the office, which Richter referred to as his “cabinet,” there is a case with notes that contain precious scribbles by the maestro. Inside the secretaire is a manuscript of Sergei Prokofiev’s Ninth Sonnet, dedicated to Richter, a photograph of Heinrich Neu- haus, a drawing by Picasso, and Solzhenitsyn’s “Miniatures.” This is what Richter’s in- Address: Bolshaya Bronnaya 2/6, apt. 58(16th floor), m. ner circle looks like - Russian cultural elite. The “Green Room” is a room for relaxation, “Tverskaya,” “Pushkinskaya” which turned into an artist’s room on concert days. Tel: (495) 695-8346, (495) 697-7205, (495) 697-4705 Hours of Operation: Wed-Sat 2.00pm-8.00pm, Sun 12.00pm- Richter’s artistic interests and preferences were diverse. He loved to paint himself, and a 6.00pm, booking in advance required small room at his house features his pastels. Tours are supplemented with audio and video Web: http://www.sviatoslav-richter.ru recordings. Talented young people and famous entertainers take part in the evening events. Tchaikovsky State House-Museum in Klin

This is one of the oldest memorial museums in the world, which is in essence a mu- seum complex, a reserve. The memorial house is the heart of the museum. Its external appearance and interior decor, the old park and the attached buildings all serve to recreate the specific atmosphere of that time period. Pyotr I. Tchaikovsky is one of the greatest figures in world culture. His music, the con- tent of which is widely relatable is loved by people all over the world. This is why the house in Klin became a real mecca for music lovers. Over the course of a century of the museum’s existence, it has been visited by millions of people from all over the globe. Tchaikovsky’s piano continues to play now. As per the museum’s tradition, the old Becker piano fills the home’s cosy rooms with magical sounds twice a year - once on May 7 (Tchaikovsky’s birthday) and once on November 6 (his memorial day). Address: Ulitsya Tchaikovskovo 48, Klin, Moscow Oblast November 6 is also the anniversary of Symphony No. 6, one of the greatest musical Tel: (49624) 5-81-96, (49624) 2-10-50 masterpieces in the world. This is why Tchaikovsky’s memorial day becomes a day of cel- Hours of Operation: Mon, Tue, Fri, Sat, Sun 10.00am - 6.00pm, ticket office open until 5.00pm ebration of his music, which brought him his unfading glory. Young laureates of the In- Web: http://tchaikovsky-house-museum.ru ternational Tchaikovsky Competition have the honor of playing this piano. The tradition was started in 1958 by the American pianist Van Cliburn, who won the first competition.

October-December 2016 CAPITAL IDEAS 75 This and that Songs help us It’s hard to find a country where people love songs and singing as much as Russians do. It is no wonder that songs in Russia are referred to as “the soul of the people.”

eodor Chaliapin, the legendary song. That’s how everything started. What singer who mysti- is a folk song? It’s a song that is not only fied the entire world with his pow- loved by the people, but was also created erful voice, once told a story that by the people! Here are just a few examples happened to him in St. Petersburg. of the folk songs that Russians love: “Gold- AfterF leaving the house, he stopped a driv- Domed Moscow,” “Along Peter’s Street,” er so he could get to a friend’s house for “A Young Cossack Walks Along the Don,” dinner. They talked a lot on the way and “Vot Kto-to s Gorochki Spustilsya” and “Vot the driver decided to ask what Chaliapin’s Mchitsya Troika Pochtovaya.” All of these profession was. Chaliapin briefly explained compositions don’t have a specific author that he was a singer. The driver was quite or composer. The words and the music perplexed. After looking over his wealthy were created by the people. customer, he sighed and said: “Yeah, I sing too, when I drink…” What are these songs about? About happi- ness and sadness, difficult life, love, seasons But Russians don’t only sing during get-to- of the year, unique Russian nature. Folk gethers when they drink. Songs that peo- songs, more so than any other songs, ac- ple sing over dinner, during get-togethers curately reflect the specifics of Russia’s na- with friends, are a tradition that is passed tional character, of the country’s soul. A lot on from one generation to the next. This of Russian thinkers have pointed this out surprises a lot of foreigners, who are gen- in their work. For example, here is a quote erally not used to people signing when they from Russian writer and philosopher Ivan get together with their friends. Thus, if you Ilyin in his book The Way of Spiritual Revival: Pictures by Anastasia Saifulina Pictures want your Russian business partner or cli- “Show me how you believe and pray, how ent to like you, make sure to learn a couple you feel about goodness, heroism, honor of songs in Russian. and duty, how you sing, dance and read poetry, and I’ll tell you what country you’re Russians of every social strata sing dur- from.” ing get-togethers: some with the accor- dion, the guitar, and even with no musi- In other words, Russian people have always cal instruments at all. There are different sang: during trips, during short periods of kinds of songs, and every group has their rest, in sad and happy times, on weekends own preferences. The usually and weekdays, when they were young and prefer soft, lyrical ballads from the Soviet old. Perhaps this is why one of the most era - songs by , Vladimir popular songs in Russia is a song by the Vysotsky, Yuri Vizbor and Alexander Galich. famous Leonid Utyosov called “A Happy People from provincial towns and villages Song Makes the Heart Feel Light,” which like to sing folk songs or modern chanson contains lyrics that every Russian person style songs, which are very popular in Rus- knows from childhood: “Song helps us build sia today. Chanson fans prefer songs by and live. Like a friend, it calls and leads. Stas Mikhailov, Lyuba Uspenskaya, Elena Those who march through life with a song Vaenga, Mikhail Shufutinsky and many will never be lost….” others! The interesting thing is that these are more This Russian tradition of singing with than just words. Our people really do go friends and family goes back to the folk through life singing. Different eras through-

76 CAPITAL IDEAS October-December 2016 build and live

out Russian history gave birth to different songs: military songs, songs about heroism, lyrical ballads. For example, songs from the Revolutionary era, which were composed after the Revolution of 1917, the songs composed during the first Five-Year Plans, are filled with proletariat energy, calling on people to go to work. There are also songs from the war years, which helped soldiers make it through those tough four years of WWII.

“Onward with a song!” is one of the most popular phrases in Russia. This is what Russians say when somebody is about to embark on a new endeavor. ■ BETWEEN PAST AND FUTURE Foreign doctors for Russian Tsars

78 CAPITAL IDEAS October-December 2016 Foreign doctors for Russian Tsars Here is an interesting historical fact: Russian monarchs frequently trusted foreigners with their health. Why? Foreign doctors were through to be more skilled, and the fact that they didn't speak Russian well meant that they couldn't take part in palace intrigues!

ld Russian chronicles point to the fact that as far back as the 10th century, grand prince of Kiev Vladi- mir the Great, who Christianized the Kievan Rus, had a Cuman doctor (Cumans were a Turkic nomadic people) named Ivanets Smer. He learned medicine duringO a trip to Bukhara and the Armenian city of Ani, located in the foothills of Mount Ararat. Even back then, it was a tradition for princes to have personal foreign doctors. The Greek philoso- pher Agapit, for example, was Prince Vladimir II Monomakh's personal doctor. After the center of power moved to Moscow, attitudes toward foreign doctors remained the same. Chron- icles from the 14th century serve as evidence of the fact that , winner of the Battle of Kulikov, had graduates from the best universities of Europe and the Byzantine Empire as doctors.

Between the Blade and Chopping Block

Nonetheless, until Ivan III of Russia ascended the throne, foreign doctors were still relatively rare occurrences. Real pilgrimages of foreign doctors to Russia started during the reign of Ivan III cure your son, and if I don’t you can execute me.” The treat- of Russia. The establishment of professional medicine in Russia ment didn’t work, the heir died and the ordered Zhidonov’s owes a lot to foreign doctors. This is undoubtedly related to the execution forty days later. expansion of Russia's foreign relations. Ivan III's marriage to the Greek Princess Sophia Palaeologus prompted, among other in- It may seem like this kind of cruelty would discourage doctors teractions, the arrival of many foreign doctors in Moscow. from coming to Russia, but it didn’t! Foreign doctors continued to arrive in our country. At the same time, it would also be un- Obviously, different types of doctors came to Moscow. Not all fair to say that the majority of court physicians during Ivan III’s of them became famous. An example is the tragic fate of An- reign met a tragic end. Nicolo Lyubatsenze, a medic who arrived ton Nemchin, who came to Moscow in 1485. At first, the tsar in Moscow in 1518 from Lübeck, left a big mark on the history of was happy with the doctor. However, Anton Nemchin was then the Middle Ages. He is the author of the translation and Russian asked to cure the Tartar prince Karakuch, from prince Daniar's edition of one of the most popular medical texts of that time, suite in Moscow. Unfortunately, the doctor was unable to cure "Vertograd", which contained recommendations for looking af- him, and the terminally ill prince died in the doctor's arms. As ter sick people, lists of medicinal herbs and medical recipes. punishment, Anton Nemich was executed on the Moscow River. Leon Zhidonov's life also ended tragically under Ivan III. The Venetian doctor tried to cure Ivan III's son, who was suffer- ’s Punishment ing from rheumatism. To ease the heir's pain, Leon burned the prince's legs with hot glass containers and gave him medicinal The English physician Elisha Bomeley, who served Ivan the Ter- herbs to drink, but it was no use. The doctor essentially signed rible’s court, also acquired a bad reputation. He studied medical his own death sentence, bragging to the tsar: “I will definitely sciences in Cambridge, but was more successful in the art of

October-December 2016 CAPITAL IDEAS 79 BETWEEN PAST AND FUTURE

making poisons. Historians claim that Bomeley could prepare 60 cartloads of firewood, a barrel of beer, a bottle of vodka, poisons that would kill a person precisely at the time the tsar daily dishes from the royal kitchens, and five horses from the wanted them to die – not a second earlier, not a second later. royal stables. The annual salary of a court doctor was about 200 Thanks to his talent, Bomeley became particularly popular with rubles (the price of two medium-size villages with peasants). the tsar, becoming his doctor and advisor. He constantly point- ed to supposed conspiracies against the tsar and often started rumors for his own benefit. When he was finally exposed, the The Romanovs: reforms in medicine proof of his guilt stated that Bomeley took part in a conspiracy against Russia for the benefit of Poland and , point- In spite of the fact that Russian tsars frequently sought help ing to his personal ties to the King of Poland, Stephen Báthory. from European doctors, this kind of medical aid was not acces- Shocked by Bomeley’s treachery, Ivan the Terrible issued an or- sible for regular people (even the wealthy elite) until the Ro- der to subject the physician to torture. Afterward, Bomeley was manovs came to power. It was only after Michael I of Russia thrown in prison, which is where he died. ascended the throne that the Apothecary Order (the equivalent of the present-day Ministry of Health) was permitted to invite foreign doctors for the purpose of educating Russian physicians Doctor or Diplomat

Boris Godunov, who ascended the throne after Ivan the Terrible, thought so highly of English physicians that he wrote a touching letter to the Queen of England in which he claimed that English physicians who want to come to Russia could count on a warm re- ception, good treatment, and plenty of time off. This was the first official- doc ument that gave foreign doctors the right to return home without having to obtain permission from the Russian tsar first.

Historians claim that welcomed six personal doctors from Europe in the year 1600 alone. Each of them had a monthly allowance that consisted of unlimited supplies of bread,

80 CAPITAL IDEAS October-December 2016 in the art of healing. Soon, professional doctors that specialized Jean de L'Estocq. He repeatedly urged Elizabeth to take power in areas listed in the Apothecary Order of 1644, were invited to into her own hands, but she always refused. visit the country. Back then, there was an entire team of profes- sional doctors looking after the tsar’s health: 3 doctors, 2 phar- The persistent doctor finally got the princess to give in after macists, 1 ophthalmologist, 2 alchemist, 3 physician-surgeons, he demonstrated two playing cards to her. One showed her in Junior surgeons, bloodletting experts, bone setters, and people a monastery with her hair cut short, while the other depicted who prepared syrups, ointments, plasters, etc.). her sitting on a throne. The visual aids finally moved Elizabeth

But even inviting European doctors wasn’t good enough protec- tion against charlatans. A tragic case happened during the rule of Michael I’s son, Alexis of Russia. A terrible misfortune struck Moscow at the time – an epidemic of the plague. Nobody knew how to find a cure, but a rumor was started that the best remedy for the plague was a powder made from rhino horns.

Incidentally, the rumor was started at the same time that a foreign merchant who was selling this exact item happened to be in town. Overjoyed, Alexis of Russia immediately issued an order for a doctor to examine the horns on offer. The doctor understood that there was an opportunity to make money, and convinced the tsar that the rhino horn powder was extremely useful. The tsar allocated a lot of money for the purchase, buy- ing two large horns for ten thousand rubles, and a smaller horn for one thousand.

Peter the Great: privileges for doctors

The most surprising thing is that, in spite of their expertise, foreign doctors were still inherently servants, belonging to the lowest ranks of the royal court. It was only during Peter the Great’s rule that the title of “Leib-Medicus” was introduced to the “Table of Ranks.” In the 18th century, doctors were the equivalent of collegiate counselor or a colonel in the army in terms of rank. In 1833, they became part of the Emperor’s official entourage.

Court physicians were awarded with estates, medals and were sometimes assigned the high rank of privy councilor if they to organize a coup, after which the doctor was given the title were accomplished enough. During Peter the Great’s reign, the of “Leib-Medicus” and a salary of 7,000 rubles per year. Several Apothecary Order was headed up by the tsar’s foreign doctor years later, L'Estocq was one of the courtiers who chose Sophie Robert Erksin for the first time in Russian history. He took part Friederike Auguste von Anhalt-Zerbst-Dornburg, the future in establishing a Military Charter by skillfully describing the du- Catherine the Great of Russia, to wed Peter III. ties of regimental doctors and was assigned the title of a state councilor in 1716, thus heading up the Medical Chancellery. He also possessed a great deal of encyclopedic knowledge. His li- A Greedy Physician brary held over 4,000 books and in his spare time he corre- sponded with Leibniz about the possibility of inventing a per- During the reign of Catherine the Great, there were several petual motion machine. court physicians favored by the Empress. For many years, Cath- erine referred to Dr. Boerhaave as the man who saved her life. In 1744, Catherine refused to leave the house because her face A Doctor’s Conspiracy was covered in acne. Not a single doctor could help her, but Boerhaave advised her to blot her face with a drop of talc oil At the same time, it would be naïve to assume that enemies did diluted in water. The prescription helped. Another court physi- not attempt to use the Russian affinity for foreign doctors for cian, however, was remembered by the Empress for his greed. their own gain. After the death of Peter the Great, there were Dr. Rogerson frequently prescribed bloodletting for the old a number of palace conspiracies, many of which included Eliza- woman, charging 2,000 rubles in gold for each session.The doc- beth of Russia’s personal doctor, the German-French surgeon tor considered bloodletting to be the best cure for everything

October-December 2016 CAPITAL IDEAS 81 BETWEEN PAST AND FUTURE

the clinic played classical music on special gramophones that were located in every room of the hospital.

Protected by Russian Experts

After the , the country was surrounded by en- emies and the heads of the USSR no longer extended invitations to foreign doctors. The only thing Soviet party leaders could af- ford was to travel abroad for treatment. A special Bolshevik Party monetary fund was created for this purpose, which was man- aged by the Central Committee. Trotsky, Kamenev, Bukharin, Or- dzhonikidze, Rykov and Molotov all received treatment abroad.

Moreover, personal decisions to receive treatment abroad were approved on the basis of recommendations by the Medi- cal Commission of the Central Committee and were accom- panied by secret protocols. As a rule, Soviet leaders received medical treatment at home. Nonetheless, it is widely-known that Brezhnev and those who were close to him received dental treatment from German dentists. Russia’s first president Boris Yeltsin also sought help from foreign doctors. Today, Russian specialists look after the health of our country’s politicians and public figures. The President of the Russian Federation issued a decree to establish the Head Medical Office of the Admin- istrative Department of the President of the Russian Federa- tion. It is a unique complex of modern medical institutions that provides medical support for the Administration of the Russian that ailed her, and would prescribe it for even the most minor President, the Government of the Russian Federation, the Fed- issues. His greed eventually angered Catherine the Great, and eral Assembly chambers, and the Constitutional, Supreme and she drove him from the court. Arbitration Courts. ■

At the same time, Catherine the Great started a real revolu- tion in Russian medical practice. During the smallpox epidemic of 1768, the empress hired the English doctor Thomas Dims- dale to give her a vaccination against the illness, thus making a personal case in favor of vaccinations. This was a fairly brave move on her part. Back then, many members of the church and even famous doctors were strongly against vaccinations. Nonetheless, the personal example Catherine set seemed to do the trick. About 6,000 people were vaccinated, and the Senate sent Catherine the Great a message congratulating her on opt- ing for the vaccination. She maintained that she agreed to the procedure exclusively to save the lives of others.

Nicholas II – an innovator in medicine

The trend of keeping foreign doctors continued all the way up to the beginning of the 20th century. In spite of the fact that E.S. Bot- kin was the official court physician for Nicholas II, there were also a lot of foreign doctors who were part of the court as well. One of them was the talented court obstetrician Dr. Dmitry Ott. He helped the queen give birth to four daughters and a son. Thanks to the efforts of this man, St. Petersburg had the best clinic for preg- nant women in all of Russia. The clinic had all of the best, most up- to-date equipment and everything was made with consideration Dr. Dmitry Ott for the patients. All of the sharp furniture edges were rounded and

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

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

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October-December 2016 CAPITAL IDEAS 83 INTERVIEW Yuri Rost: I love this city… Yuri Rost is perhaps the most famous photographer in Russia, the winner of many awards and titles. For half a century now he has been taking pictures of famous and regular people. Every one of his photos has a story behind it - short or long, funny or sad. His collection includes shots of thousands of Muscovites. In an interview with Capital Ideas, Yuri Rost talked about Moscow and the philosophy behind his art.

am from Kiev, but have been living diers and workers. I really treasure the portrait of and working in Moscow for over half Uncle Grisha, a shoemaker from Tverskaya. a century. I love this city, especially during the summer and early in the My photographs depict people that I have accepted. morning, when there are no cars or They can exist anywhere, because they are, before -people Ioutside. It is a fantastic city, especially the anything else, residents of our planet. Their nation- Boulevard Ring. I love the area around Chistiye ality, language and religion are secondary. All of the Pudy, which is where I live. photos of famous people focus on their humanity.

Sometimes I go by foot, but on Sundays I get on my motorcycle and ride through the center. I look around and think about how much the city has changed...I like Pokrovka, for example. It has become extremely beautiful and comfortable. There is a lot of greenery. The sidewalks are convenient. There are restaurants and cafes everywhere with Muscovites casually chat- ting over a cup of coffee or a glass of wine. It’s a calm, joyful street.

I also love the remnants of Bely Gorod left on Iva- novskaya Gorka, in Khokhlovsky Pereulok. There are really old buildings there, such as Ukraintsev’s cham- bers, which were erected way back in the 17th cen- tury. I love these two-story buildings.

I have to admit that I didn’t take many pictures of cities, since that’s almost a completely differ- ent profession. I did portraits, including portraits of Muscovites. They are the most precious thing in our city. These portraits include photographs of people I am very close to - Galina Ulanova, faina Ravenvskaya, Andrey Sakharov, Bulat Okudzhava, Otar Iosseliani, Natalia Nesterova, Bella Akhmadu- lina, Marina Neyolova, Viktor Shklovsky and Aleksei Losev. Along with famous people, there are photos of regular farmers, children, seniors, athletes, sol-

84 CAPITAL IDEAS October-December 2016 I love this city… I have to love the person. Or they must be very in- teresting to me. I won’t photograph just anything. I’ve never been a cheap sell-out with a camera, even when I worked for a newspaper. All the work I’ve done, I’ve done with love.

Initially, I thought of the following concept – pho- tographing people in the environment they are used to, which they spend their lives in. This is why I never use stage lighting. I don’t think a person should be separated from the environment they exist in. This is why, although a lot of my photographs aren’t perfect in terms of technique, they stay true to the person’s nature. I don’t photograph the person, but rather my perception of them.

Photography is an intimate thing, and in some I wasn’t interested in limiting myself to only pic- ways can be considered legalized theft. If a person tures of people, and I wasn’t making money this is looking at me, into the camera, they are enter- way. I made a sort of pact – I married the photos ing into a contract of sorts with me. I am stand- with text. Often, the photo is an illustration to the ing between the audience and this person. So if the text, as opposed to the text serving as an explana- person I am photographing is interacting with me, tion of the photo. Language is very important to they will also be interacting with the audience that me, and the photographs were often taken while I will see this piece. was talking to the subject. ■

October-December 2016 CAPITAL IDEAS 85 LIFE&CULTURE Fall in Moscow: rain and snow are no hindrance to art

There is a popular Russian song that goes:

‘Nature has no bad weather - all kinds of weather are a blessing. Rain and snow - any season of the year Should be accepted with gratitude.’

It’s hard to argue with these lyrics. Still, we can all agree that it’s difficult to be grateful for rain and snow. This is where an interesting play or a concert by your favorite performer can come in handy.

86 CAPITAL IDEAS October-December 2016 Fall in Moscow: rain and snow are no hindrance to art

hose who aren’t afraid to brave the fall or win- ter weather and are ready to get out of the house will be awarded with plenty of great ex- T periences. At the end of November, the Tretyakov Gallery will be opening a unique exhibition of treasures from the per- manent exhibition of the Vatican, which art aficionados from all over the world travel to see. These works of art rarely leave the Vatican, which means this exhibition is an important event not only for Russia and Europe, but for the entire world as well. Visitors will be able to see 17th-18th century art, including works by Raphael, Caravaggio, Giovanni Bellini and Nicolas Poussin.

The Pushkin State Museum of Fine Arts, with partici- pation from the Uffizi Gallery, is hosting an exhibition of works by Raphael called “Raphael. Poetry of Image. Works from the Uffizi Gallery and Other Italian Collec- tions” until December 11.

Guests will be shown 8 paintings and 3 drawings of the Italian painter and architect Raffaello Sanzio. These works include the portraits of Agnolo Doni and his wife Maddalena. The most significant work pre- sented at the exhibition is the “The Ecstasy of St. Ceci- lia” with St. Paul, St. John the Evangelist, St. Augustine and Mary Magdalene.

The new theatre season offers residents and guests of the capital several premiers that will be most inter- esting to deep thinkers who like reflect on the mean- ing of life. At the Gogol Center, the audience can learn about the fate of Franz Kafka, a modest clerk who was secretly fascinated by literature. He wanted all of his manuscripts to be destroyed and burned after his death (including the novels The Trial and The Castle). However, his will executor violated the writer’s will. Kafka’s works, filled with bizarre imagery and para- doxical plotlines, were published posthumously. This is how he became famous, and his name became synonymous with Absurdism. In Kirill Serebrennikov’s play “Kafka,” biographical pieces from the author’s life www.gogolcenter.com

October-December 2016 CAPITAL IDEAS 87 LIFE&CULTURE

are intertwined with stories generated by his own imagination. The characters imagined by Kafka inter- act with real people from his life.

The Theatre of Nations has taken a literary cult classic of the 20th century, “A Clockwork Orange.” Anthony Burgess began working on “A Clockwork Orange” af- ter doctors said he had no more than a year to live. The novel he was working on was based on a personal tragedy: during WWII, his pregnant wife was raped, after which she lost the baby and attempted to com- mit suicide. The play’s authors have only kept the key messages - violence and our ability to overcome it.

Fans of classical music are in for a surprise at the Mos- cow International House of Music. On October 25, the venue is hosting an evening dedicated to the 125th birthday of Sergey Prokofiev, whom many musicians consider to have been a true genius. Maestro Vladi- www.theatreofnations.ru mir Spivakov has put together a program of the com- poser’s concertos and symphonic suites. Among other pieces, there will excerpts from the famous ballet, the manifesto of love "Romeo and Juliet."

At the end of October, the Barvikha Luxury Village con- cert hall is hosting a show by Leningrad - one of the most prominent Russian bands. It was founded in 1997 by Sergey Shnurov, who is famous for his flamboyant personality. He is known for his shameless lyrics and using a lot of curse words in his songs. Of course, this leads to a lot of controversy surrounding his art. His band’s concerts are always completely packed.

Those who enjoy rock music will be happy to know there is a concert by the legendary Scottish band Nazareth on October 25. It has almost been 50 years since Nazareth performed at their first show, but they are still going! Their biggest hits have been immortal- ized as true rock anthems. Nazareth’s platinum single “Love Hurts” became one of the most famous ballads in rock history.

On November 1, Crocus City Hall is holding a con- cert by the French musician Yann Tiersen, whom the public knows first and foremost as the author of the soundtrack to the film “Amelie.” Ever since the movie came out, music lovers from all over the world started following this composer’s work with great interest. The movie became the turning point in Tiersen’s 20-year- long career. He had written the tunes long before the film came out, but his career didn’t skyrocket until after its release. The musician can play around fifteen instru- ments, but usually sticks to the piano, accordion, violin and the electric guitar during his shows.

On November 4, the Moscow House of Music is hold- ing a benefit of the People’s Artist Vasily Gerello - a soloist of the Mariinsky Theatre. The world-famous opera star sings in Russian, Ukrainian, French and

88 CAPITAL IDEAS October-December 2016 German. He loves singing in Italian, which is no co- incidence considering that his great grandfather was Italian. His schedule is packed for years in advance: Munich, New York, Tokyo, Moscow, Milan...and ev- erybody is happy to have him. The concert program includes arias from operas, along with Russian, Ukrai- nian and Neapolitan songs and romances.

On November 8, there is a big event at the Bolshoi Theatre - an evening dedicated to the 90th birthday of opera prima Galina Vishnevskaya. Unfortunately, the singer herself passed away in December 2012, be- fore her jubilee. Vishnevskaya was both a cultural icon of the USSR and a political figure as well. The success- ful Bolshoi Theatre soloist and her husband Mstislav Rastropovich, a prominent musician, have always toured a lot all over the world. Vishnevskaya has per- formed at the Metropolitan Opera, at the La Scala, and at Covent Garden. The couple were a source of national pride until they spoke up in defense of the disgraced writer in 1969. They invited him to stay at their dacha and wrote a letter in his support. The authorities did not respond in kind. Five years later, the couple once again asked to allow them to travel abroad. At first the trip was considered to be a sort of work trip. How- ever, four years later Vishnevskaya and Rastropovich were stripped of their Soviet citizenship. They lived in the US for a long time and in France, continuing to tour all over the world. The only place they were not welcome was back home. The couple was granted Russian citizenship again in 1990. Galina Vishnevskaya and her husband became close friends with Boris Yelt- sin and his wife.

October-December 2016 CAPITAL IDEAS 89 LIFE&CULTURE

On November 8, the Moscow House of Music is On November 15, the State Kremlin Palace is holding hosting the French cinema legend, Catherine De- a concert starring Ian Gillan, who will be performing neuve. Her creative night “Live Interview” will be songs by the legendary band Deep Purple. Ian Gillan is held in Russia for the first time. Catherine, who first truly a mega-star, and getting to see him in concert is became famous after her role in the 1964 film “The a real treat. Umbrellas of Cherbourg,” has been a popular movie star and a symbol of French beauty since then: tal- On November 27, there will be a Lara Fabian concert at ented, noble, exquisite, the embodiment of feminin- Crocus City Hall. The Canadian singer of Belgian origin ity, beauty and charm. During the “Live Interview,” performs her own songs, as well as songs by famous the actress will talk about her life, showing photo- composers. Fabian’s famous composition “Je t’aime” graphs and videos from her favorite roles in cinema. became a true anthem for lovers all over the world. Audience members will have the unique opportu- nity to ask her questions directly. The meeting will On December 7, the Uruguayan actress and singer be held in French, with an interpreter. Natalia Oreiro is performing in Moscow. After the

90 CAPITAL IDEAS October-December 2016 show “Wild Angel” aired in Russia, the Latin American star acquired a lot of fans here. The other popular TV show she starred in was “Rich and Famous.” Oreiro then released a solo album that sold over two million copies all over the world. By the way, Natalia Oreiro gave her first solo concert in Russia almost 15 years ago. The show was sold out in a matter of hours.

On December 9, Kristina Orbakaitė, daughter of the famous Soviet pop star Alla Pugacheva, is giving a solo concert. Pugacheva was the most famous singer during the Brezhnev era, as well as Gorbachev, Yeltsin and Putin. Pugacheva’s daughter is also quite famous, in part because of her personal life. She has three children from three different men. Only the last one, Mikhail Zemtsov, a Russian who immigrated to the US when he was a kid, officially married her.

In the middle of December, Moscow will be getting ready for the holidays: stores put up special displays, the streets are illuminated, there are decorated fir trees everywhere and adorable snowmen. Kids can attend a ton of special holiday events with the Rus- sian equivalent of Santa Claus (Grandfather Frost), his granddaughter Snegurochka in a white fur coat and a bag of toys for the kids.

And, of course, it wouldn’t be New Year’s in Russia without “The Nutcracker.” This popular ballet will be featured in several Moscow theatres right before the best show in the entire world! Evgeni Plushenko is a New Year. This time, fans of the famous fairytale are seven-time European champion, a three-time World in for a unique ice show. Evgeni Plushenko, a world- champion and four-time Olympic medalist. He is fa- famous ice skating star, is preparing a fairytale for the mous for ice shows such as “The Snow King” and “The whole family with elements of magic. The event or- Snow King 2” for children and their parents. The show ganizers are very ambitious - they promise to put on will take place at Olimpiyskiy National Sports Com- what will be not only the best show in Europe, but the plex on December 23-30, 2016. ■ www.evgeni-plushenko.com

October-December 2016 CAPITAL IDEAS 91 FOOD&DRINK “BJORN”: It’s easy to be happy!

It may seem that it’s almost impossible to surprise Moscow with new delicious food. Over the past few years, a lot of excellent establishments where you can get a sumptuous meal have popped up all over the city. However, the recently-opened restaurant “Bjorn” (“Bear”) stands out even against the backdrop of such a booming culinary scene.

tanislav Pesotsky, the head chef at “Bjorn,” jokingly calls himself “para- noid.” The truth is that he is a per- fectionist who won’t do things by the book. In his hands, even a simple tomato turns into an elegant dish with many dif- ferent flavors! “In my profession, there is no other way,”S he says, “Unless you give one hundred per- cent and are passionate about what you do to the point of madness, you won’t get a single dish right.” This immediately brings to mind the legend- ary physicist and Nobel Prize laureate Niels Bohr, who once said: “Your idea is, of course, insane. The question is whether or not it’s crazy enough to be true.” The fact that Niels Bohr comes to mind is no accident: he is Danish and “Bjorn” is a restaurant that specializes in Nordic cuisine.

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FOOD&DRINK

The fact that “Bjorn” is a Nordic restaurant be- comes apparent the minute you step into the es- tablishment, which is located in the beginning of Pyatnitskaya Street. Wood, stone, glass, wild flow- ers, dim lights, candles – all of these are typical el- ements of Scandinavian comfort. It is as if you’re suddenly in Copenhagen, Stockholm or Oslo! The impression is reinforced further because, according

94 CAPITAL IDEAS October-December 2016 to the restaurant’s website, the waiters are “macho guys” who look like Vikings.

The restaurant’s interior is no cheap knock-off, but an incredibly appealing Nordic atmosphere cre- ated by the highly professional “Bjorn” team. The young people who work at the restaurant - wait- ers, designers, artists and chefs - aren’t imitating or copying anybody. They are guided by the Danish art of “hygge,” one of the key principles of which is to derive pleasure from the small things in life: a candle at the dinner table, pleasant music, leisurely conversation, a glass of wine, a cup of coffee with dessert, and delicious bread you break with your own hands.

The restaurant makes its own bread and has its own original tableware, as well as several original interior decoration items: “Bjorn” has its own cera- mist and a woodworker!

Of course, every item on the menu, which is up- dated four times a year depending on the season, is also exclusive. Suffice it to say that each dish is based on an idea that is in one way or another con- nected to nature, specifically Nordic nature. For ex- ample, “Mussels in Sea Foam” is a title inspired by pictures of the North Sea, where powerful waves

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crash against the shore, forming a lot of sea foam. The dessert called “Beet Ice Cream on Chocolate Earth,” which looks like a beet field, is another ex- ample. There are other inventive titles on the menu as well: a Danish sandwich called “Wild Deer With Green Leaves,” a salad called “Cauliflower Clouds and Tree Fungus,” “Duck in Spruce Branches” and “Summer Rain in the Forest.”

Seems like inspiration is an absolutely crucial factor for the restaurant’s chef. So where does he get it? Everywhere. Recently, for example, Stanislav drew inspiration from Valdai, where he spent the holiday with his wife.

All of the products at “Bjorn” are domestic. This is why the restaurant was not affected by the eco- nomic sanctions that impacted the operations of a many other establishments in Moscow. “Bjorn” gets fish from Murmansk, meat from Bryansk, venison from Krasnodar, duck from Rostov and fruit/vege- tables from outside of Moscow. The chef frequently picks mushrooms, berries and herbs in the forest himself, which gives his dishes an unforgettable flavor.

“We create our own recipes. We make dishes that require a lot of attention. Our kitchen is anything but a conveyor belt and I’m not interested on just putting anything on a plate,” Stanislav Pesotsky ex- plains. This is undoubtedly true. His dishes are true works of art. When you look at them, you’re not quite sure what you should do - eat them or hang them up on your wall like a masterpiece! ■

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Money spent on the brain is never spent in vain