If a Job Is Worth Doing It Is Worth Doing Well

STRATEGIES FOR BUSINESS IN MOSCOW

If a job is worth doing it is worth doing well

A PROPOS

I love all of Moscow, but there are definitely parts of However, stones have a tendency to crumble. There the city where my heart starts beating faster – places is no way of knowing what would have become of this where I feel at home. One of these places is the city historic and cultural center had the city government not center, where I spent my childhood. We lived on made a decision to renovate the center. Stoleshnikov Pereulok and my brother and I went to the I’m talking, of course, about a large-scale program aimed famous School №179. We used to go to the Alexander at restoring objects that are a part of the city’s cultural Garden to play with our friends: we would ride bikes in heritage. This project is currently in progress. The center the summer and go sledding in the winter, sliding down of Moscow is undergoing a real renovation boom. Suffice the hills right in front of the majestic Kremlin walls. it to say that there are currently over 400 historical and Of course, the center of Moscow is special to everyone cultural buildings covered in scaffolding, and this number who has ever visited Russia. It contains everything that is growing. A special Moscow Government committee is draws people from all over the world to the Russian adding more and more objects to the list of architectural capital: The Red Square with the Kremlin and St. Basil’s monuments to be preserved. Next year, a large sum of Cathedral, the Bolshoi Theatre, the Tretyakov Gallery, the money will be allocated for the implementation of a pro- Moscow State Conservatory and the Tchaikovsky Concert gram aimed at the restoration of cultural heritage objects Hall, Gorky Park. Not to mention the world-famous sta- – 3 billion rubles. This is quite significant: the city is not tions of the Moscow metro, which make every metro ride only restoring the facades of old houses and buildings, resemble a visit to a gorgeous museum. but is clearing the territories of illegal structures as well.

As marvelous as all of these historical landmarks may In short, Russia’s capital is becoming cleaner and more be, the center of Moscow is much more than just tourist beautiful every year. The city is like a cheerful host who attractions. In order to truly understand Moscow, it’s im- is waiting for her guests to arrive. After all, when we portant to take a day and get lost in the city: take a stroll invite someone over to our house, we clean the space along Arbat, walk along Prechistinka and Myasnistskaya – dust, wash, and prepare a delicious meal. Moscow is – a street that first appears in historical records that also doing everything possible to make the city com- date back to the 15th century. You can immerse yourself fortable for those who live and work here, and even for in the picturesque world of the Zamoskvorechie, which those who simply drop in for a short visit. was so vividly described by the great Russian playwright Alexander Ostrovsky. The center of Moscow is unique Sergo Kukhianidze – it exudes the spirit of history. As one Russian writer famously said, “every stone here is alive.” Editor in Chief CAPITAL IDEAS Moscow Official Founder: Department for External Economic NEWS and International Relations of the Government of Moscow Address: Tverskaya, 13, Moscow, 125032. Milan Days in Moscow Ph: +7 (495) 633-68-66 Fax: +7 (495) 633-68-65 Moscow at the international forum E-mail: [email protected] and exhibition EXPO REAL www.dvms.mos.ru Moscow and Mexico: cooperation Editorial staff: Editor-in-chief – Sergo Kukhianidze between business communities Production crew of the edition: Elena Egorova (deputy editor-in-chief), Moscow-Delhi: don’t miss the Evgeny Khokhlov, Dmitry Sokolov, Marina Ogorodnikova, Alexander Pigarev, Anna Tomkins, Marina Yurshina, Alexander Yurshin, opportunity Anastassia Paloni, Sergei Levin 6-19 CAPITAL IDEAS STRATEGIES FOR BUSINESS IN MOSCOW

Publisher: Moscow Center for International Cooperation Face to Face CEO: Igor Tkach Address: 105005, 68/8, build.1, Baumanskaya str., Moscow, Russia New urbanism for Phone: +7 (499) 267-46-56 E-mail: [email protected] an old city General Partner: National Review Ltd In the exclusive interview with Capital CEO – Sergei Oposhnyanskiy Ideas Moscow’s Chief Architect Sergei Phone.: +7 (495) 784-69-71 Kuznetsov talks about plans for the development of the city center and E-mail: [email protected] the importance preserving the city’s Consulting – Sergei Anikanov, Evgeny Khokhlov historic and cultural heritage Design – Robert Saifulin Photo editor – Victoriya Oposhnyanskaya 20–28 Page layout – Alexander Saifulin Assistant – Nadezhda Ratanova Distribution – "Trans-Media" Ltd Acknowledgements to: PHOTO ITAR TASS Agency, RIA-Novosti, All Over Press Agency, companies and organizations, represented in the issue. 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 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 28.11.2014 2 CAPITAL IDEAS January-March 2015 Face to Face Moscow in words We must treat the 40-42 historic center with Nothing ventured Nothing Ventured great care People who say doing People who don’t The Moscow Government is making business in Russia is give up during a crisis very serious efforts to restore Moscow’s city center. Minister of the Moscow difficult are mistaken always win Government and Head of Department Mr. Chakrapani has been living and working in The first Gianfranco Ferre Home Italian of Cultural Heritage Alexander Kibovsky Russia for over 20 years. In his interview he talks furniture show room has opened in Moscow. tells what has already been accomplished about challengers and surprises that foreign Why its directors are not afraid of difficult and talks about future plans businessmen encounter in Russia period going through the Russian economy? 30-33 38-39 44-47

Face To face Moscow is a city with a soul! The Ambassador of Uruguay Anibal Cabral sat down for an exclusive interview with Capital Ideas 34-37

January-March 2015 CAPITAL IDEAS 3 Moscow Global

A bright future lies Roots Bookself ahead: collaborations Stalin: Won’t we find Making perfect in the sphere of Teri Lindeberg, founder and CEO of gold for our girls? Staffwell, is a remarkable woman. She innovation The Exhibition of National Economy knows all ins and outs of doing business This year, the Open Innovations Forum took Achievements has long been an in Russia. At least she wrote a great book place in Moscow for the third time. The established symbol of Moscow. This titled Making Perfect, that is about what forum gathered over 15,000 participants from year it celebrated its 75th anniversary. employees want from their employers. 70 countries. What next? Here’s the extract from the Teri’s book. 48-51 56-58 60-63

Moscow Global Tutti-Frutti There was never a Why don’t russians question wether to smile? come to Moscow Russians don’t like to smile, but not because they’re angry. And it Edvin Basson, Director General of World has nothing to do with Russia’s Steel Association, tells why they chose harsh climate. They are just raised Moscow this year as a place for their differently. annual conference 52-55 64-65

4 CAPITAL IDEAS January-March 2015 Quality Time Quality Time Want to understand Christmas tree: the nuances Food&Drink Russia? Come to of national decor Seiji: Where taste This year marks the 60th anniversary since the moscow! country's main Christmas tree in the Kremlin lit up matters Anton Chekhov was born in southern the city center. For both Soviet and post-Soviet Can you get fresh tuna in Moscow? Russia, spent his last days in Germany, children, getting to see the Kremlin Christmas tree It’s hard to believe it, but yes! You can travelled thousands of kilometers across was always a real treat, even though each family had get it at Seiji, a Japanese restaurant on Siberia and across the Indian Ocean, a festively decorated Christmas tree at home as well. Komsomolsky Prospect. No need to worry visited Europe multiple times, lived in 78-82 about product quality: it is delivered to Yalta for many years… And still more than Moscow directly from the legendary Tsukiji anything his name belongs to Moscow Moscow Vocabulary fish market in Tokyo! 66-71 84–85 92–96

Quality Time Life&Culture Russian winter – Winter in Moscow: a time to celebrate! sensuality and The middle of winter is a favorite time of the year for Russians, because there are openness a lot of holidays to celebrate. The four When your windows have frosted up and main winter holiday events are New Year, there is a snowstorm outside, going for Christmas, Epiphany and Maslenitsa! a walk in the park is not that pleasant. 72-77 Winter is a great time to visit an art gallery, a concert or a theatre performance. This is especially true for this winter – there is a lot going on in Moscow. 86-91

January-March 2015 CAPITAL IDEAS 5 MOSCOW OFFICIAL

During the meeting, Christian Estrosi told Sergey The first meeting in history Sobyanin about the work the city government is doing to preserve Nice’s Russian heritage. Among other between the Mayors of initiatives, the city is completing the restoration of the Orthodox St. Nicholas Cathedral, holds an annual Russian film festival, and carefully preserves the Moscow and Nice memories of Russian writers and artists who have In November, the Mayor of Moscow Sergey Sobyanin stayed in Nice. In 2015, several events are planned in held a meeting with the Mayor of Nice and Chairman commemoration of the 70th anniversary of the Vic- of the Metropolis Nice Cote d'Azur Christian Estrosi, tory in WWII. who was in the Russian capital for a business trip. In turn, the Mayor of Moscow offered his French col- In spite of long-term ties that bind France and Rus- leagues to continue the practice of including Nice in sia, this was the first meeting in history between the the capital’s festival fair called “A Journey to Christ- mayors of Moscow and Nice. mas” and other city festivals. ■ Moscow and Bulgaria for the development of bilateral ties

The Head of the Moscow Department for External Economic and International Relations Sergey Cher- emin and Ambassador Extraordinary and Plenipoten- tiary of the Republic of Bulgaria to the Russian Fed- eration Boyko Kotzev discussed prospects for further development of cooperation between Moscow and Bulgarian partners (the capital of Bulgaria, Sofia is Moscow’s chief partner).

The ambassador handed the over a letter addressed Sergey Cheremin and Boyko Kotzev to the Mayor of Moscow Sergey Sobyanin from the Mayor of Sofia Yordanka Fandakova. The letter out- the bust of General Skobelev from the city of Pleven lined concrete proposals for cooperation. The two to the Russian capital. parties discussed the possibility of holding Moscow Days in Sofia in 2015. It was noted that the Moscow Mikhail D. Skobelev was an outstanding Russian mili- House in Sofia can and should facilitate the rela- tary commander. He took part in the Russian-Turkish tionship between Moscow and the city’s Bulgarian war of 1877-1878 and was the “liberator of Bulgaria.” partners. The Turks called him the White General, because he wore a white jacket and rode on a white horse during The Bulgarian ambassador invited Cheremin to par- every battle. The Bulgarian people consider him to be ticipate in the ceremony held in order to hand over a national hero. ■ Alexander Kibovsky and the Leipzig Minister of Economy and Labor Uwe Albrecht. The two parties discussed perspectives for the development of cooperation in preserving objects of cultural heritage in Moscow and Leipzig. Uwe Albrecht thanked the Moscow Government for their assistance in the renovation of the St. Alexei Russian Memorial Church in Leipzig and said that he hopes for the Moscow Government’s participation in the DENKMAL 2016 exhibition and collaboration on the DENKMAL — Moscow 2015 project.

During the visit, the Moscow delegation also visited the St. Alexei Russian Memorial Church in Leipzig. After a tour of the historic building, Gold medal for the wreaths were laid at the memorial service for the Russian soldiers who died in the Battle of the Na- tions, which took place in 1813 in Saxony. The event Moscow Government at was attended by the Leipzig Consul General of the the Denkmal exhibition in Russian Federation Vyacheslav Logutov. The European exhibition DENKMAL-2014 took place Leipzig on November 6th-8th in Leipzig. This year, Norway was the partner country of the forum. The Moscow The Moscow Government received a gold medal Government presented and exposition put togeth- for its contributions to the preservation of con- er by the Moscow Department of Foreign Economic structivism monuments in Russia’s capital. Markus and International Relations and the Department of Geisenberger, Managing Director of the Leipzig Cultural Heritage. The theme of the exposition was Trade Fair, and Chairman of the exhibition’s jury/ "Constructivism in Architecture." Chair of the German Foundation for Monument Protection Gerd Weiss presented the award to The central element of the Moscow stand was a the head of the Moscow delegation Alexander Ki- model of the Ivan Nikolaev Communal House, bovsky, Moscow Government Minister and Head which was build in 1929. Konstantin Melnikov’s of the Department of Cultural Heritage. The award Rusakov Worker’s Club, the Central Union build- ceremony for achievements in protecting Europe- ings designed by Le Corbusier, Pierre Jeanneret an monuments took place at the DENKMAL exhi- and Nikolai Kolli, as well as other constructivism bition on November 8th. monuments were presented in the form of architectural models. ■ Kibovsky thanked the exhibition’s management for such a flattering assessment of the Moscow Gov- ernment’s activities in renovating buildings from the beginning of the 20th century and stated that the renovation of constructivism monuments in Russia’s capital will continue. He invited the German colleagues to visit Moscow next year and take part in the DENKMAL-Moscow 2015 exhibition. A presentation of the exhibition took place at the Moscow Gov- ernment stand.

The Moscow Institute of Steel and Alloys and the Moscow Architectural Institute were awarded copies of the gold medal for their contribution to the preservation of a cultural heritage object from the era of constructivism, “Ivan Nikolaev’s Com- munal House.”

The program also included a meeting between the Head of the Department of Cultural Heritage

January-March 2015 CAPITAL IDEAS 7 MOSCOW OFFICIAL Milan Days in Moscow

The main event of Milan Days, which took place in Moscow in November, was the signing of the memorandum on cooperation between the Moscow Government and the Milan City Administration. The document outlined the development of bilateral relations in spheres such as the economy, transportation, agriculture, construction, preservation of cultural heritage, social security, tourism, sports and cooperation between universities.

he Mayors of Moscow and Mi- Days are held in Moscow. Economic and the strengthening of relations between lan Sergey Sobyanin and Giuliano trade relations between our cities contin- organizations and enterprises of Mos- Pisapia signed the Memorandum ue to gain ground. I am happy that our city cow and Milan. “This obviously includes on cooperation between the Mos- governments cooperate at the highest of- the development of cultural ties, tour- cow Government and the City Ad- ficial levels and exchange experience,” Ser- ism, education, health care and social ministrationT of Milan. The ceremony was gey Sobyanin said, “This mutual interest is policies. We have a lot of similar chal- attended by the Minister of the Moscow the foundation of future cooperation. In lenges in the sphere of transport devel- Government and Head of the Moscow De- order to make this process more systemic, opment: the metro, over ground trans- partment for External Economic and Inter- we are signing this memorandum aimed portation and suburban railway traffic,” national Relations Sergey Cheremin. at developing our relations across a num- the Mayor of Moscow noted. According ber of fields and industries.” to Sobyanin, the Memorandum is a step “Relations between Moscow and Milan toward resolving these issues. develop further with every passing year. The Memorandum aims to tackles chal- Much like Moscow Days in Milan, Milan lenges tied to economic cooperation and Giuliano Pisapia pointed out that the memorandum is another symbol of the strengthening of ties between Moscow and Milan. “Collaboration allows to exchange practices that each side has developed in resolving various problems,” he said, “I am very happy that relations between Moscow and Milan are moving forward. This gives me hope, and perhaps even confidence, that we really will find solutions for the multitude of serious issues that the residents of our cities face.”

As part of Milan Days in Moscow, the Chamber of Commerce & Industry of the Russian Federation held a business forum called “Milan-Moscow 2014. New terms. Now opportunities and prospects.” At the forum, the Minister of the Moscow Gov- ernment and Head of the Moscow Depart- ment for External Economic and Interna- tional Relations Sergey Cheremin noted in his speech that Italy is one of the key partners of the Russian capital and advocated for the strengthening of bilateral ties.

Sergey Sobyanin and Giuliano Pisapia

8 CAPITAL IDEAS January-March 2015 Milan Days in Moscow

An agreement on the development of innovation, food & nutrition culture, cu- Milan is a major source of pride. I would cooperation between the Moscow State linary traditions and civil society. During like to highlight the fact that Russia was Institute for Tourism Industry and Insti- his speech, the Minister of the Moscow one of the countries that has supported tutoCarloPorta was signed at the forum, Government and Head of the Moscow Italy in organizing and holding this inter- along with an agreement to extend the Department for External Economic and national exhibition,” Ragaglini said. cooperation contract between Bicocca International Relations Sergey Cheremin University in Milan and the Russian In- called Milan the economic, business and He also mentioned that the Russian ternational Academy for Tourism. financial capital of Italy. stand is one of the top ten largest stands at the exhibition and expressed During Milan Days in Moscow, TsUM He noted that Italy has become Mos- his special thanks to the Moscow Gov- opened the Milan information center cow’s fourth partner in terms of bilat- ernment, Mayor of Moscow Sergey called InfoPointMilano. The Italian del- eral trade volumes. Giuliano Pisapia ex- Sobyanin and the Minister of the Mos- egation, headed by the Mayor of Milan pressed confidence in the fact that the cow Government Sergey Cheremin for Giuliano Pisapia and the Italian ambas- information center will serve to attract supporting and assisting in holding Mi- sador to Russia Cesare Ragaglini, con- more Russian visitors to the internation- lan Days in Moscow. ducted a presentation on the Expo-2015 al exhibition in Milan. exhibition that will take place in Milan The program for Giuliano Pisapia’s visit from May 1st to October 31st, 2015. “I hope that Milan will serve as a bridge to Moscow also included two hockey between people, countries and civiliza- matches between the junior teams of the Representatives from 144 countries have tions. My visit today has confirmed that two cities. The final event was the open- sent in applications to participate in the such a bridge between Moscow and Mi- ing of the photo exhibition called “Milan exhibition. The event will feature over lan already exists,” the Mayor stated. “As – the city of Expo-2015” at Stoleshnikov 50 unique national stands. Central top- the Italian Ambassador to Russia, the fact Pereulok and a fashion show that fea- ics will include the rational use of en- that a major international event like the tured the works of young Milan design- vironmental resources, architecture, Expo-2015 exhibition will take place in ers at TsUM. ■

Sergey Cheremin and Giuliano Pisapia January-March 2015 CAPITAL IDEAS 9 MOSCOW OFFICIAL

In October 2014, the Moscow Government delegation took part in the 17th International exhibition of commercial real estate and investment EXPO REAL 2014 in Munich, Germany. The Department for External Economic and International Relations (EEIRD) was the organizer of the Moscow stand at the exhibition.

Sergey Cheremin and Franz Josef Pschierer

10 CAPITAL IDEAS January-March 2015 Moscow at the international investment forum and exhibition EXPO REAL

EXPO REAL is one of the leading invest- stressing the history of friendly ties be- for large contracts in Moscow. More- ment forums in the world that aims to tween our countries and regions. over, our investment program includes facilitate the establishment of close co- 25 billion EUR to be allocated for trans- operation on financial and investment The President of the House of Bavar- portation infrastructure. Over the next projects. The exhibition encompasses the ian Economy Alfred Gaffal visited the 20 years, we plan on spending about 80 whole spectrum of the real estate mar- Moscow stand, discussing the current billion EUR to develop the Moscow re- ket, serving as an international forum for state of affairs and potential for the de- gion. This includes roads, as well as the communication across the largest mar- velopment of economic ties between construction of 100 million square me- kets in the world. Moscow and Bavaria during his meet- ters of residential, office and industrial ing with the Moscow Government del- real estate. There are a lot of projects The Minister of the Moscow Govern- egation. The Minister of the Moscow like this, and we always ask our col- ment, Head of the Department for Ex- Government, Head of the Department leagues to introduce us to companies ternal Economic and International Re- for External Economic and Internation- that have experience in designing new lations (EEIRD) Sergey Cheremin gave a al Relations (EEIRD) Sergey Cheremin engineering solutions. We are always welcome address for forum guests and pointed out the effects of European open to collaboration.” participants on behalf of the Mayor of sanctions against Russia. Moscow Sergey Sobyanin. In turn, Alfred Gaffal noted that the House Cheremin noted that there have been of Bavarian Economy has made it a prior- The speech highlighted that the State of some harsh political comments directed ity to “keep the bridge that connects us Bavaria is one of the economic leaders of toward Russia from Germany. In spite of intact,” especially in such difficult times. Germany and is one of the most rapidly this, partnership ties with Bavaria have Although the House of Bavarian Econo- developing regions in Europe. Over the remained a top priority for Moscow’s my is not a government organization, it past few years, Moscow has been in the economic and international activities. does have some economic influence and leading position across European rank- Moscow is interested in maintaining significance, Gaffal said. “What is being ings in terms of income generated from successful economic and investment ties talked about in politics is different from urban real estate market investments. “I with partners in Bavaria. “Over 400 joint what we have in reality,” he continues, hope that this exhibition and the Mos- Russian-Germany enterprises are cur- “we are working on getting the sanctions cow stand program will be of interest to rently operating in Moscow. They are lifted in the medium-term. We clearly the professional audience and will help trying to keep their place in the city, es- realize that if the situation gets worse, to establish partnership ties between pecially since they have worked hard for Russia will start looking for new partners Russia and Germany, Moscow and Ba- many years,” Cheremin said, “There are a in other parts of the world.” varia,” Sobyanin wrote. total of 6,000 German companies registered in Russia, and over 3,000 of them Sergey Cheremin told Moscow’s Ba- The opening of the Moscow stand was are located in Moscow. Germany is usu- varian partners about Moscow Days, attended by Chairman & CEO of Messe ally in 2nd or 3rd place in terms of trade which were held in Vienna in Septem- München Klaus Dittrich, President of the volumes with Russia. This may not be the ber: “It was a grandiose event. We had Bavaria Chamber of Commerce and In- most politically correct thing to say, but support from the Moscow Chamber dustry Dr. Eberhard Sasse, members of we don’t want Korea, China and other of Trade & Industry and we expected the Moscow Government delegation, Asian countries to take Germany’s place about 100 people to come to the eco- and other guests. because of sanctions.” nomic forum during Moscow Days. Over 250 people showed up. We talk- Sergey Cheremin greeted all partici- “We are doing everything we can to ed to Austrian businessmen and all of pants on behalf of the Moscow Govern- work around political tensions,” the them wanted to continue cooperation. ment and noted that Moscow has been minister added, “not a single German These entrepreneurs told me some- a leading participant of the EXPO REAL company is planning to leave Moscow. thing I had not thought of before – not exhibition for all 17 years of its existence. We are improving tender processes, a single Austrian company lost a single He thanked the organizers of the event, and a lot of foreign companies compete euro in Moscow or in Russia.”

January-March 2015 CAPITAL IDEAS 11 MOSCOW OFFICIAL

“Moscow’s participation in EXPO REAL Economic Affairs and Media, Energy and Russia and the US. This is why we con- 2014 is another opportunity to talk about Technology Franz Josef Pschierer. tinue to consider Germany to be a close our development plans for Russia’s capi- partner,” Cheremin said. tal. But, to really make conclusions about The two officials extended warm greetings Moscow and Russia, it is best to travel to each other and mentioned that friendly “Our ties remain strong: there are agree- there and see it with your own eyes,” and business ties between Moscow and ments between Moscow and Bavarian Cheremin said. Bavaria, which have been established for clinics about professional exchange pro- many years, continue to develop in spite of grams for doctors and we plan on ex- Bavarian representatives expressed the global challenges and political tensions. panding these programs further. There desire to visit Moscow in order to meet are also student exchange programs, with representatives of the capital’s busi- Sergey Cheremin thanked the Bavarians along with theatre and musical perfor- ness community. The Moscow delegation for their warm reception and noted that mances,” the minister said. responded by offering assistance in the Moscow has always seen Bavaria as a organization of meetings for representa- reliable partner. “We have already lived “We are interested in developing our co- tives from the House of Bavarian Econo- through multiple crises, but they have operation in spite of political challenges,” my. During the meeting, it was proposed never affected relations between our said Franz Josef Pschierer. He also high- to reinstate the practice of holding eco- two cities. This is why we continue to be lighted the fact that Bavarian economic nomic conferences and round tables as an optimistic about the future,” the minis- representatives have been visiting Mos- effective way to facilitate communication ter concluded. cow since the early 90s. “I can attest to and the exchange of business practices the fact that Bavarian companies are in- between Moscow and Bavaria. Holding The Head of the EEIRD said that it is terested in working with Moscow. We will an event called Bavarian Economy Days in important to point out who draws eco- also continue collaborations in the field Moscow in 2015 was also a suggestion. nomic benefit from the difficult situation, of healthcare. We also have tremendous especially if one takes into consideration potential for cooperation in the sphere During the exhibition, the Minister of the growth of the dollar and the depre- of tourism – a lot of tourists from Russia the Moscow Government, Head of the ciation of the euro and the ruble. “We come to Bavaria.” Franz Josef Pschierer Department for External Economic and have always said that the trade turnover also promised to visit Moscow. International Relations (EEIRD) Sergey between Russia and Europe amounts to Cheremin held a meeting with the State about 400 billion EUR, which is 10 times The head of the Moscow delegation Ser- Secretary in the Bavarian Ministry of higher than trade turnover between gey Cheremin also met with the new

Moscow: International Business Center

Moscow ranked by Doing Business 92 (World Bank) 112 2013 2014 > 50% 90% All operating credit Assets of Russian organizations credit organizations

Enterprises and > 1mln organisations 60% 70% 40% Funds of all Deposits of legal Deposits of organisations entities individuals

are concentrated in Moscow accounts

12 CAPITAL IDEAS January-March 2015 Department for External Economic and International Relations of Moscow mayor of Dusseldorf Thomas Geisel at the for internships. They would be interested The Moscow Government Minister ex- Dusseldorf stand. The two sides discussed in learning about how their colleagues in plained that Moscow is in a difficult prospects for bilateral cooperation. Cher- Leipzig work and exploring German in- predicament in terms of transporta- emin congratulated Mr. Geisel on his new novative solutions. tion, and that people need incentives post and expressed confidence in the fact to switch from personal cars to public that ties between the two countries and “Moscow has changed over the past few transport. Otherwise, no matter how regions will have a new impetus for devel- years. We also have a lot to be proud much Moscow highways are renovat- opment. The Commissioner for Entrepre- of,” Cheremin said to his colleague, “We ed and reconstructed, no matter how neurs' Rights in Moscow Mikhail Vishe- would like to invite you for a visit. In De- many interchanges are erected, the gorodsev took part in the talks. cember of this year, Moscow will be host- city will still be bogged down by traf- ing an urban planning forum. This forum fic jams. Sergey Cheremin also attended the will be attended by the heads of various opening of the Leipzig stand and held a cities and by international experts. The “We recently hosted a international meeting with the city’s Minister of Econ- forum’s focus will be city development. transportation conference, and our omy and Labor Uwe Albrecht. This will be Moscow’s third urban plan- partners in Milan offered to share their ning forum, and we would like to invite experience in implementing a carshar- The minister stated that Moscow has you to participate in it.” ing project in their city,” Cheremin taken extra care to preserve its archi- added, “But they use gasoline-powered tectural and historical heritage over the Uwe Albrecht thanked Sergey Cheremin cars, while we would like to switch to past few years, and has taken a special for his welcome speech and the invita- electric cars for the sake of our city’s interest in participating in the Denkmal tion to the forum, promising to discuss environment. We have an extensive exhibition in Leipzig. this question further. He also noted that trolley bus infrastructure and would Germany is interested in cooperating have no problems integrating charg- The head of the EEIRD told Uwe Albre- with Moscow on the Denkmal exhibition, ing stations into it. We could even cht about Moscow’s interest in the pro- along with a number of other exhibitions charge cars for free for a short period posal to establish exchange programs for and conventions. of time, and people could use them for municipal employees about the recently travelling from transport interchange adopted large-scale program geared to- The two officials also discussed the pos- hubs to the city center.” Uwe Albre- ward training specialists abroad. Mos- sibility of implementing a carsharing cht promised to look over the Moscow cow specialists will be traveling to Berlin project for electric cars in Moscow. proposal. ■

January-March 2015 CAPITAL IDEAS 13 MOSCOW OFFICIAL Moscow and Mexico City: cooperation

Mexico City became the first city in Latin America to establish formal relations between business communities with Moscow. A protocol on he document entails the demic diseases, emergency medical care, cooperation between the strengthening of bilateral ties, HIV/AIDS treatment, as well as treat- two city governments was as well as partnership and col- ment for various addictions, diabetes laboration in resolving city is- and mental disorders. The two sides will signed on October 30th by sues with the aim of social and also be cooperating in the field of medi- Teconomic progress. The plan includes the cal science and pharmaceuticals, the the Minister of the Moscow exchange of opinions and experience in implementation of disease prevention Government, Head of the fields such as urban development, trans- measures and projects, and training for portation, healthcare and the protection health workers. Department for External of cultural heritage and the environment. Moscow and Mexico City will be The capitals of Russia and Mexico will be Economic and International exchanging information on urban plan- encouraging mutually beneficial coop- Relations (EEIRD) Sergey ning, improvements in traffic safety, the eration through delegations and expert identification, preservation, restoration, visits, priority proposals and projects Cheremin and the Mayor of utilization and popularization of cultural/ across various fields, as well as the or- archeological heritage facilities, and air ganization of and participation in video Mexico City Miguel Ángel quality control. conferences, meetings and seminars. Mancera. In the field of healthcare, cooperation Before signing the protocol, Miguel Án- will include addressing challenges such gel Mancera met with the Moscow gov- as the detection and prevention of epi- ernment delegation. The meeting was

14 CAPITAL IDEAS January-March 2015 Moscow and Mexico City: cooperation between business communities

attended by the Russian Ambassador to December 2014 and participate in the ur- tional Relations, the Moscow Department Mexico Eduard Malayan. ban planning forum. for Transport and Road Infrastructure Development, the Moscow Department “Moscow has one of the largest bud- The Moscow Government delegation of Regional Security and Anti-Corruption gets in the world: last year, the budget also held talks with representatives of the Activities, the Head Office of the Moscow amounted to $55 billion. Less than half of Mexico City administration headed by the Ministry of Civil Defense and Emergency the budget is allocated for investments. General Director of International Affairs Response and the Moscow Administra- Moscow is a socially-oriented city; we of the Government of the Federal District tion for Provision of Civil Defense Mea- offer support for different members of Cuauhtémoc Cárdenas. Issues discussed sures with support from the Embassy our population. I hope that we keep in- at the meeting included the development Russian Federation in Mexico City and the vesting into the city infrastructure every of bilateral relations across fields such Mayor’s office of Mexico City. year,” Sergey Cheremin said, “We launch as transportation, vehicular traffic, road 15km of new metro lines annually and safety and traffic accident management. Experts from Moscow and Mexico City plan on increasing the rate of develop- held talks on the topic of transportation ment in this area. We will increase the On October 30-31st, Mexico city held a development and road safety. The dis- length of our metro lines by 50% before seminar to address challenges in the de- cussion included issues such as the de- 2020 and construct a total of 160km of velopment of transportation infrastruc- velopment of parking areas, installation metro lines. This will bring us to a total of ture as part of the international project of specialized parking equipment and the 460-470 km. Moreover, we are actively Transportforbigcities. The event was or- integration of alternative ways to pay reconstructing our roads.” ganized jointly by the Moscow Depart- for parking. The question of subsidized ment of Foreign Economic and Interna- public transportation was also covered. The head of the EEIRD said that the city of Moscow plans to design and erect a large number of transport interchange hubs that will connect the metro, over ground transportation, parking lots for private ve- hicles, and train terminals. Cheremin also noted that a lot of projects stress construction and the creation of comfortable living conditions for city residents, healthcare development and the preservation of the city’s cultural heritage. Miguel Ángel Mancera highlighted that Mexico City has integrated a lot of efficient street cleaning technologies that were originally developed in Moscow.

“We will maintain communications in this area,” he said, “ So far as cultural ties are concerned, we are waiting for the next delegation in the beginning of the year and hope to maintain such contacts as well.”

On behalf of the Mayor of Moscow, Sergey Cheremin invited Miguel Ángel Mancera to visit the capital of Russia in Sergey Cheremin and Miguel Ángel Mancera January-March 2015 CAPITAL IDEAS 15 services. The system allows to minimize traffic flows.

Head of the Mexico City C4 Emergency Operations Center Gerardo González Manjarrez explained that the organization acts as a single center for the monitoring of public order (combating crime), road traffic, city systems (water and electricity supply) and the prevention of natural disasters. He shared relevant experience in using information gathered from social networks to monitor public order.

The delegation also visited the Control Center of the Mexico City Metro, where representatives held talks with the head of Mexico City’s metro system Joel Orte- ga. The meeting included discussions on functionality, control and safety of metro Moscow representatives talked about and practices in transport infrastructure systems. The Mexico City metro is con- priority projects in the development of development and the integration of inno- sidered to be the largest metro system the Russian capital’s transportation sys- vated solutions in public transportation. in Latin America. A unique feature of the tem. Mexican experts outlined challeng- Special attention was given to the issue of city’s metro is that women and children es and potential resolutions in city trans- parking areas and the discussion of road travel in separate cars. The delegation portation development, highlighting the safety and environmental protection. visited the metro’s monitoring center and importance of environmental protection. an observation post. Moscow Govern- The Moscow Government delegation ment representatives expressed interest Mexican experts also presented recent visited the opening ceremony of new in organizing exchange programs with innovations in urban planning – Ecobisi, Mexico City Metrobus routes, where Mexican colleagues. Moscow specialists Metrobus, Ecopark and others. These in- the Mayor of Mexico City Miguel Ángel invited Mexican experts to take part in novations allow the city government to Mancera and the Mexico City Govern- the international forum called Integrated successfully resolve environmental and ment Minister of Transportation Rufino Safety and Security Exhibition 2015, which transportation issues in the city, as well Leon Tovar gave speeches. Metrobus is will take place in Moscow in May of next as traffic safety challenges. Mexican rep- a bus rapid transit (BRT) system that in- year, as well as in the annual international resentatives also shared their methods cludes specialized buses, bus stations and transportation forum in Moscow. ■

16 CAPITAL IDEAS January-March 2015 Moscow-Delhi: don't miss the opportunity

Today, the “Hindi Russia Bhai Bhai!” (“Indians and Russians are brothers”) sentiment is not as popular as it was in the 1950s-1980s. Nonetheless, relations between the two countries remain warm. Will Moscow and Delhi be able to harness these good relations and direct their energy toward accomplishing concrete goals? This was the topic of discussion at the 8th India-Russia Forum on Trade and Investment, which took place in the beginning of November in Delhi.

ew Delhi hosted the 8th India-Russia Forum on Trade and Investment. The event gathered businessmen and representatives Nfrom ministries, government agencies and chambers of commerce of the two countries. The Moscow delegation was headed by the Minister of the Moscow Government and Head of the Moscow Department for External Economic and International Relations Sergey Cheremin.

The forum, which was organized by the Business Council for cooperation with India, Ministry of economic development of the Russian federation, Con- federation of Indian Industry, Federa- tion of Indian Chambers of Commerce and Industry and the Department of Commerce of Ministry of Commerce and Industry of Government of India, was special. This was the first landmark Dmitry Rogozin, Sergey Cheremin, Alexander Kadakin with Nirmala Sitharaman January-March 2015 CAPITAL IDEAS 17 MOSCOW OFFICIAL business event after the recent changes on the topic of “Opportunities & Partner- ment, traffic regulation – are resolved in the Indian government in May. ship in Infrastructure. The discussion was through the use of advanced informa- led by the Minister of the Moscow Gov- tion technology systems. The leadership of Narendra Modi opens ernment and head of the EEIRD. up new possibilities for developing rela- “Russia’s capital is also in the process of tions between Russia and India, Mos- In his welcome address, Cheremin high- implementing an innovative project: the cow and Delhi. This fact was confirmed, lighted the fact that this is a unique mo- development of New Moscow – new in part, during the meeting between the ment in India-Russia relations – a time territories that have recently been in- Prime Minister of India and Russian Pres- when both countries have “great interest corporated into the city structure. We ident Vladimir Putin at the BRICS summit in developing cooperation across various are ready to share our experiences in that took place this summer in the Bra- fields.” This sentiment was confirmed by this field and adopt the best practices zilian city of Fortaleza. The two leaders all participants who gave speeches dur- our Indian partners have to offer,” Sergey declared that they had an “absolute con- ing the round table meeting, including Cheremin noted. sensus” regarding the development of representatives of the largest Russian bilateral relations across different fields, companies in fields such as advanced The heads of Moscvodokanal and including politics, trade, the economy, technology, nuclear energy and con- Ecotechprom also focused their speech- and military and technical collaboration. struction. es on this issue. Representatives from Rosatom, NIS and Zagranstroy spoke in All of these issues were discussed during Talleen Kumar – one of the directors of detail about their plans to share com- the meeting of the India-Russia Inter- Delhi Mumbai Industrial Corridor De- pany practices with Indian colleagues. Governmental Commission on Trade, velopment Corporation – set the tone The forum included a number of round Economic, Scientific, Technological and of the discussion in his opening speech. table discussions on Russia-India and Cultural Co-operation (IRIGC), which Delhi Mumbai Industrial Corridor Devel- Moscow-Delhi cooperation across fields took place the morning before the 8th opment Corporation is one of the most such as manufacturing, pharmaceuticals India-Russia Forum on Trade and Invest- significant projects in the establishment and healthcare. ment. The Deputy Prime Minister of the of New India, which has become a pri- Russian Federation Dmitry Rogozin gave ority for the country after Prime Min- The 8th India-Russia Forum on Trade a speech at the IRIGC meeting. Sergey ister Narendra Modi’s inauguration in and Investment concluded with a ple- Cheremin, head of the External Econom- the spring. The advanced infrastructure nary meeting, which featured speeches ic and International Relations Depart- that is to be constructed for New India by high-ranking officials. ment (EEIRD), was also in attendance. is estimated to cost about $100 billion. The project is based on the creation of The Deputy Prime Minister of the Russian The Forum on Trade and Investment “smart cities,” in which almost all mu- Federation Dmitry Rogozin and the Minis- kicked off with a round table discussion nicipal issues – safety, waste manage- ter of the Moscow Government and head

18 CAPITAL IDEAS January-March 2015 of the EEIRD Sergey Cheremin represented the Russian Federation during the meeting. The Minister of State for Commerce and Industry of Government of India Nir- mala Sitharaman represented India.

Dmitry Rogozin arrived at the event right after his meeting with the Prime Minister of India Narendra Modi. “This was our second meeting over the past six months,” he said, “And I am confident that the people who are currently in power in India are determined people. They set specific goals and consistently, competently navigate the process of accomplishing them.”

The Deputy Prime Minister also noted that the people of India and Russia have always treated each other with respect – both currently, and in the past. “We are destined to help each other in resolv- in complete agreement. The Minister requisites to do this. We are united not ing both political and economic issues,” of State for Commerce and Industry of only through a strategic partnership, but Rogozin stated. He also mentioned that Government of India immediately not- also by spiritual ties. For example, much there are “two enemies” standing in the ed that she enjoyed the Russian guest’s like you, we also read Leo Tolstoy and way of bilateral cooperation in the future: honest speech, and will also be speaking love Tchaikovsky’s music. In short, come bureaucracy and foreign currency. Bu- earnestly. According to her, relations be- over, India welcomes Russia!” reaucracy should be dismantled altogeth- tween Russia and India over the past few er. So far as foreign currency is concerned, years leave a lot to be desired. The dy- Sergey Cheremin called the India-Russia he added that “we must jointly think of namics of bilateral relations have clearly Forum on Trade and Investment “a land- ways to operate in national currencies.” undergone a slowdown. mark event.” In summing up the event, the head of the EEIRD, who is also the Nirmala Sitharaman, who spoke after “Our cooperation must be rekindled,” Si- Chairman of the Business Council for the Deputy Prime Minister of Russia, was tharaman said, “and we have all the pre- Cooperation with India, said the following: “Over one hundred representatives from various Russian companies came to the event in Delhi this year. It is particularly noteworthy that the list of participants includes not only representatives from large companies such as Gazprom, Sberbank, Rosatom, but also representatives from small and medium-size companies. This is a very good sign. It serves as evidence of the fact that interest in India among Russian entrepreneurs is growing.”

The minister also noted that this trend is by no means one-sided. Indian business circles are also taking an active interest in Russia. They are ready to establish contacts and create joint enterprises. “Now, the most important thing is to keep the momentum going so that both countries so not miss the opportunity to establish mutually beneficial cooperation between Russia and India, Moscow and Delhi,” Sergey Cheremin highlighted in conclusion. ■

January-March 2015 CAPITAL IDEAS 19 FACE TO FACE Sergei Kuznetsov New urbanism for an old city

Moscow is becoming more dynamic Mr. Kuznetsov, are there any plans to implement major architectural or construction projects in the and modern with each passing year, city’s historic center? but the beauty of our city lies in the Moscow is a very conservative city when it comes original and unique architecture that to its heritage, and everything that has to do with preserving it is subject to strict regulation. As an ar- reflects different styles and centuries. chitect, I would advocate for more radical architec- In an interview with Capital Ideas, tural changes in this respect, like some of the initiatives in European and American cities. However, Moscow’s Chief Architect Sergey in terms developing the city center, Moscow has a specific historical track record. Decisions are based Kuznetsov talks about plans for the on public opinion, which tends to stand in opposi- development of the city center and tion to integrating serious new structures into the historic part of the city. I think that the controversy the importance of preserving the around past projects like the reconstruction of the Voentorg, Hotel Moskva and Manezhnaya Square city’s historic and cultural heritage. speaks to this fact. These projects were an attempt to meet the public half-way – to make improvements while working with conservative frame- works.

Many people think that because Moscow is a historic city, everything that has to do with history must be kept intact. I share the opinion of many architecture and urban development experts: I think a better approach would be to construct new, quality structures to replace old ones. The public, on the other hand, would be outraged. This is why the development of the city’s historic center will be heav- ily regulated for many years to come – the public is simply not ready for contemporary architecture, especially in places that are historically significant.

Although the Zaryadye Park project is very relevant and contemporary, we are actively working to in- corporate historical elements into the context. This is an excellent example of the city working to preserve its cultural heritage.

20 CAPITAL IDEAS January-March 2015

FACE TO FACE The Moscow River serves as the guideline for the development of Moscow’s urban structure

Considered area 10 400 ha Territory of Moscow River’s water surface 1940 га

The length of Moscow River Within city limits 83 km

Length of coastline On both sides 201 km Existing buildings 22 mln m2 Residential buildings 4,8 mln m2 Non-residential buildings 17,2 mln m2

Moscow City Architecture Committee/ Moscow Genplan Institute

22 CAPITAL IDEAS January-March 2015 Experts have noted that Moscow has been going resources into this project. Zaryadye must become through a landscape renaissance of sorts – that not only the new symbol of the city, but positively in- more attention is being paid to green zones, but fluence city development overall. sometimes this process seems to have a commercial basis. Will the Zaryadye Park project be sticking You have stated that Zaryadye Park is a combina- to the original concept – “greenery as an attraction tion of nature and classical music…. in an urban environment”? This is a matter of identity. What is Russia’s iden- A place that is completely empty will not, in and of tity? We certainly don’t want to take the old route itself, attract people. There has to be a function that of projecting stereotypical matreshka dolls, two- motivates people to do something: go for walks, sit headed eagles and sculptures of czars. All of that on benches, go jogging etc. We have analyzed Mos- cow’s most popular pedestrian zones and realized that these zones are popular not only because of building facades and historical significance, but also The Zaryadye Park information pavilion is an because of what’s happening “on the first floors.” observation deck where visitors can view the future That is, the public space has been filled with commercial activity, which is key to making any space park with the help of QR codes in the central hall. come alive. These commercial spots are places where people can consume something: eat, drink, The pavilion’s glass gallery has a fantastic view of make purchases. The most important thing is to Saint Basil’s Cathedral. The information pavilion keep a balance. Obviously, when a giant shopping center is constructed under the guise of a “public on the future park’s territory is accessible through space,” it is just a tool to fuel consumption. This isn’t necessarily bad, but such a project can hardly Vasilevsky Spusk. Hours of operation are 11.00am be called a public space. – 8.00pm on weekdays and 10.00am – 7.00pm on Zaryadye Park is a public space project. The city is weekends. Entry is free. making an effort to meet public needs by investing

January-March 2015 CAPITAL IDEAS 23 FACE TO FACE

KItai-Gorod. View from behind the Moscow River. 1884 Quarter on Vasilevsky Square that no longer exists. On the right – Church of St. Nicholas the Miracle Maker (demolished in the 1930s).

comes off as cheesy because it has been replicated to more informal events: festival, concerts, art perfor- many times and the quality is often terrible. When mances. we were searching for an identity, we really wanted to move away from that – to show the diversity Tell us about the concept behind the develop- of Russia’s nature, landscapes in conjunction with ment of coastal areas around the Moscow River? classical music. Aside from the park, the Zaryadye What will the project look like? Will it be similar to territory will house a philharmonic hall that will Spree (Berlin), Thames (London), the Seine (Paris), seat 1,500 people and boast a total area of 20,000 Huangpu (Shanghai), or maybe New York? square meters. There are cities I like and there are certainly a lot So Zaryadye Park will be both a recreational area in of cities to borrow from in terms of urban devel- the center of Moscow and a place where people can opment, but it’s wrong to say that Moscow should learn more about Russia? be turned into something that looks like other cities. For example, I like Venice, but implementing the Absolutely. Integrating some details into the park that same concept in Moscow would be impossible. I would somehow symbolize Moscow or Russia will not like Berlin, Tokyo and New York, but Moscow is too be necessary. We have constructed an information different from all of them. Every city is unique and pavilion that is dedicated to monitoring what’s going there is no single solution that you can just copy on in the city and contains all information about this over and over. unique project. I see this project as something that represents Russia’s identity in unconventional ways, The development of coastal areas always gives impe- like through nature and music. tus to the flourishing of a city’s social life and more comfortable living in general. In New York, for ex- Zaryadye Park has been referred to as the green al- ample, the city made the Hudson River into an at- ternative to the Red Square. Will the territory be traction for positive people who live healthy lifestyles used to host large-scale events? – mothers with baby strollers, school kids, fishermen – by installing running lanes. These are the kinds of I would call it an addition rather than an alternative. demographics such projects are meant to target. The One does not negate the other. The park will be cen- public space should help these kinds of people come tral to the city. If the Red Square is the official center, together and socialize. It should be a socially signifi- a must-visit place for tourists featuring buildings we cant place. Cities that successfully implement such always see in postcards, Zaryadye Park will be home projects can confirm this theory.

24 CAPITAL IDEAS January-March 2015 The project for the development of coastal ar- lization of areas next to bodies of water has tre- eas around the Moscow River is an international mendous potential – living on the waterfront and competition. Experts have already studied urban next to such an active public space is a huge benefit. landscapes of different cities, and its important to Land and real estate in such places are very popu- understand how much such projects can do for a lar, which adds value to the whole city. If we take city. The development of public spaces and the uti- the example of the Bosphorus Strait in Istanbul, the

January-March 2015 CAPITAL IDEAS 25 FACE TO FACE

About the ZIL construction project: coastal areas are absolutely packed. We can learn something from this. The project proposes a layout that outlines a new type of urban environment with A few words about the Moscow City project, which has been in progress since the 90s and is scheduled lot of public spaces. There is a network to be completed in 2018. Will there be significant of pedestrian roads between residential changes to the layout of Moscow City?

buildings that provide access to public Moscow City has ceased to be an independent proj- facilities, which will be located on the ground ect and is now part of the bigger picture. The city is developing, along with transport infrastructure and floors of the buildings. Thus, the street will territories surrounding Moscow City. Today, it is a become a more comfortable public space. point of growth, and other real estate will continue to develop around it. It’s a natural process and it co- Parking spaces for cars are located outside incides with the overall development of the city. Un- this pedestrian street network; cars are fortunately, construction is moving slower than we would like. permitted to drive through the residential area only on occasion. A significant part of Experts compare the future Moscow district erected in place of ZIL industrial zone to the interna- the area surrounding the pedestrian road tional Moscow business center, Moscow City. They network is covered in greenery. also point out that the project will be a lot bigger.

26 CAPITAL IDEAS January-March 2015 One of the goals of the project is the creation of a project will be completed, in several stages, before new urban environment – a “new urbanism.” What 2022. does this mean and how will this project be implemented? As the Chief Architect if our city, you pay attention to different projects. Are there certain projects There are certain places in Moscow where people that you prioritize – projects that are important for like to live, where they are comfortable. Real estate the city, that would modernize Moscow and make in these areas generally costs a lot of money. For it a more comfortable place to live? example, there is the center of the city. Although there are not enough green zones and the center is Of course, there are a number of large-scale city clearly overcrowded, people still like it because ur- projects that have to do with development (and ban development one hundred years ago was, ob- often conversion) of large areas of the capital. The jectively speaking, better than it is now – of higher ZIL construction project and the “Serp I Molot” fac- quality. tory construction project are crucial steps when it comes to developing industrial zones and handing ZIL is an attempt to create a new, fairly large terri- them back over to Muscovites and the city’s econo- tory that will be even more comfortable than the city my. Other projects that I would label as significant center. It is a project that will combine the positive include the Zaryadye Park project, the reconstruc- aspects of the city center with advances in urban de- tion of the Luzhniki sports arena and the new State velopment, transportation, landscaping and architec- Center for Contemporary Art at Khodynskoe Polya. ture. This is a difficult project, but, as of today, itis All of these projects will be completed over the next going well. We have every reason to believe that the few years. ■

January-March 2015 CAPITAL IDEAS 27 State Program for the city of Moscow Urban Planning Policy for 2012-2018

The purpose of the program is to create a favorable urban environment

The following objectives have been outlined in order to accomplish this:

Determining the urban planning priorities of Russia’s 1 capital as a large international, financial, scientific and cultural center. Preserving the historical and architectural 2 image of the city center; integrated development of territories Creating a favorable 3 environment for investment activities. Advancing urban 4 planning activities. The Moscow Department of Urban Planning Policy

State program financial structure by implementation date and financing sources, bln. rub.

61,4 60, 1 56,8 58,8 54,6 Total for 2012-2018 14,2 14,2 14,2 13,5 42,7 9,6 10,9 38,2 10,9 10,6 10,8 10,9 22% 14,0 84,5 8,3 10,4 9,6 372,6 36,4 57% 35,0 bln rub 32,5 33,7 21% 210,7 31,0 21,7 77,4 20,3

2012 2013 201 4 2015 2016 2017 2018

Private investors Moscow budget Federal budget

28 CAPITAL IDEAS January-March 2015 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) 957 05 10 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) 957 01 54 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) 959 18 88 Fax: +7 (495) 959 19 82 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, Bld 1 Phone: +7 (495) 363 32 32, +7 (495) 232 05 55 Fax: +7 (495) 705 9622 www.moex.com

January-March 2015 CAPITAL IDEAS 29 FACE TO FACE Alexander Kibovsky: We must treat the historic center with great care

The Moscow Government is making very serious efforts to restore Moscow’s historic center. Over the past few years, the city has cut down on the number of new construction projects in the center. Billboards and other advertising elements have almost completely disappeared. In this exclusive interview, the Minister of the Moscow Government and Head of the Department of Cultural Heritage Alexander Kibovsky tells Capital Ideas about what has already been accomplished and talks about future plans.

Mr. Kibovsky, over the past few years the Moscow The city also tried to cut down on bureaucratic proce- Government has embarked on a serious restora- dures. We eliminated a lot of administrative barriers tion project in the city center and has decided to for investors who wanted to restore monuments – cut down on the number of new construction proj- the only thing we left intact was the package required ects. Why did you make this decision? by federal law. As a result, a lot of projects aimed at restoration, landscaping and the creation of a com- After Sergey Sobyanin became the Mayor of Mos- fortable urban environment began to flourish. We cow, there has been a serious shift in the attitude uncovered a lot of potential and development was re- toward Moscow’s historic center. Before, these directed toward old buildings. In 2010, the restoration territories were handed over to businesses for the of just 15-20 objects was in progress. Today, we are construction of contemporary buildings, business restoring 322. We approved 87 objects this year alone centers and entertainment centers. When this and another 80 are in the design stage. trend first started, it was largely motivated by ne- cessity. Over time, however, it turned into excessive We estimate total capitalized costs for these projects and nonsensical development of the historic cen- to be about 18 billion rubles. Currently, investments ter that was harmful to the urban environment. Mr. make up about half of this amount. And this is high- Sobyanin made the decision that the historic center quality work. should, first and foremost, be a well-maintained, comfortable territory that serves as the historic An interesting type of project that is being devel- core of the city. The government conducted a seri- oped in Moscow today is the renovation of former ous review of all investment contracts, and a lot of industrial territories. Could you tell us about your the ones that encompassed several million square plans in this sphere? meters were terminated. These were mostly construction projects that the city residents were cat- There is a lot of potential in the renovation of indus- egorically opposed to. trial zones. There are a few buildings that have al-

January-March 2015 CAPITAL IDEAS 31 FACE TO FACE

ready been reincarnated, so to speak. Fabrica Stan- We help intelligent development projects that require islavskogo, which used to be a cable factory, has been long-term investment. The city’s historic center ac- turned into a cultural center. The ARTPLAY exhibition counts for 10% of old Moscow’s territory and we have center is also a former factory. The Red Rose factory to treat it with care. We want more investments, but is an interesting center that is now home to Yandex not for short-term projects. We want competent and headquarters. All of the monuments there have been consistent urban development. preserved. The restoration of Zhiro gallery is almost completed, and the project is taking part in the Mos- Did the foreign economic situation have any im- cow Government competition called “Moscow Resto- pact on your investors? ration 2014.” The old Khamovniki beer factory is practically across the street from this factory, and is now We expected a decline in the share of private capi- being redone as a residential area. tal due to macroeconomic challenges. However, this didn’t happen – investment amounts did not drop There are a lot of projects like these – there are compared with the previous year, which was a record enough zones and buildings in the city that were used for us: we exceeded our expectations of 20%, which is for industrial purposes in the Soviet times, but today about 7 billion rubles of private capital. Currently, this production has been relocated to other territories. sum totals over 9 billion rubles. For example, the Red October factory is now located outside the city, because using the beautiful buildings This means that the measures we took were ex- located on the Moscow River was no longer efficient. ecuted in time, and there is a serious backlog for Today, the space houses restaurants, offices and even next year – we have another 80 projects in the an imperial yacht club that was restored by a private works. We see that the share of direct investors investor – a really interesting historical monument. who want to restore a building and use it in the All city departments are currently trying to support future is gradually increasing. This is a really impor- projects that are well thought out – quality architec- tant trend for us. ture that can be integrated into the overall image of Moscow. Over the past three years, we have managed to de- crease the number of objects that are in poor condi- What should these projects look like? tion, in the red zone, by 15%. This is a huge success.

We are not interested in generic buildings. If we do al- We are already on the same level with European low new construction projects in the city center, they countries. In a few years, we will catch up to the capi- have to be really great projects that serve a purpose tals of the world – I am sure of this. for the city. Zaryadye Park is a great example. Huge buildings were supposed to be erected where Rossiya Speaking of the international arena – the Moscow hotel used to be, but we rejected billion-ruble direct stand received a gold medal at the international investments in order to create a public space in the exhibition on the restoration and preservation of city. Now, centuries later, people will be able to see monuments Denkmal-2014 in Leipzig. What does 17th century architecture – the churches of Zaryadye this victory mean for the city? will be renovated by 2018. This place will be one of the most beautiful panoramas in Moscow and in Russia This is a huge victory. It is a big deal to receive an as a whole. award for constructivism in Germany, especially when

32 CAPITAL IDEAS January-March 2015 you are evaluated against such strong competitors – 430 exhibitors from 17 countries.

We demonstrated not only different approaches and principles, but specific buildings that we renovated. Our biggest constructivism monument was the House-Commune of architect Nikolaev on Ordzheni- kidze. This is a unique building that was constructed in 1929. It was renovated by Nikolaev’s students, and the President of Moscow Architectural Institute Dmitry Shvidkovsky personally supervised the project. There is the unique Le Corbusier Center as well, which was his only designer building. Where in Europe is there another building that has well-maintained constructivism el- evators that are still operating? People were in shock.

So our exposition was very popular. Even when the exhibition closed and people were leaving, there were still people looking at our stand. There was a railway worker strike at this time in Germany, but people The Moscow Restoration quest – a joint project of the from Munich, Berlin and other cities in Germany took Department of Cultural Heritage of the City of Mos- buses to attend our round table. We didn’t have a sin- cow, the Moscow Office of Civil Service and Personnel gle booklet left from the exhibition. and the agency Street Adventure – is off to a great start. In the first week alone, 500 people took part in Next year, the Denkmal exhibition will take place it. Teams from architectural universities and colleges in Moscow. Can you tell us your plans for this ex- completed the route first. The route encompasses hibition? the most interesting architectural monuments of the Moscow River, among which are buildings nominated So far, I can tell you that it will take place at VDNKh. for the Moscow Restoration 2014 award. We made the announcement this year in Leipzig and are expecting a lot of guests. The core themes will The QR code program also turned out to be quite popu- include the renovation of industrial zones and the lar with young people. We will definitely continue to development of urban public spaces. We are also in- develop it further, and will be translating it into differ- terested in looking at foreign embankment zone im- ent languages. All projects that are connected with the provement projects. Leipzig has interesting projects in promotion of historic buildings are of great interest to us, this field. The embankment of the Weisse Elster River and we are actively looking for partners from the list of underwent a lot of reconstruction and entire districts commercial companies that will help us in this sphere. ■ were converted from industrial areas to elite spaces. We are currently holding a large-scale contest on the development of the Moscow River and we are curious The following objects in Moscow are protected by the state about the experiences of our foreign colleagues.

Are projects like the Moscow Restoration 2014 objects of cultural heritage, theme quest and QR codes popular so far as his- 5 429 including toric buildings in Moscow are concerned?

We are conducting a wide range of activities to pro- buildings and structures mote the city’s historic buildings. You can renovate all 3 401 the monuments you want, but it doesn’t make much sense if people don’t know about it. One of the functions of architectural heritage is the consolidation of monuments the population. There are certain symbols people as- 148 sociate with Moscow – the Kremlin, the Red Square, the Church of Christ the Savior. But, aside from these gardens buildings, there are a ton of other interesting objects. and park objects We would like for people to understand that these are 172 not simply great-looking piles of bricks – these buildings tell the stories of our great heroes and anti-heroes. When you touch the same stone that Peter the archeological objects Great once touched, you perceive history in a com- 155 pletely different way.

January-March 2015 CAPITAL IDEAS 33 FACE TO FACE Anibal Cabral: Moscow is a city with a soul! Ambassador Extraordinary and Plenipotentiary of Uruguay in Moscow sat down for an exclusive interview with Capital Ideas

Mr. Ambassador, do you like the current state of re- Not to mention football. Uruguayan football play- lations between our countries? ers play for the Russia Premier League…

Yes, our countries have a long history and have a very Of course! (smiles) promising future ahead. Diplomatic ties between our governments were first established almost 160 years But for the most Uruguayan people, Russia remains ago! I’d also like to point out that Uruguay was the terra incognita of sort, no? first country in Latin America to establish diplomatic ties with the Soviet Union in 1926, after they had been I think so, yes, although people in Uruguay are fa- severed during the October Revolution in 1917. miliar with Russian history. Every educated person knows who Dostoyevsky and Tolstoy are. Our the- Over the years, ties between our governments have atres, for example, always show plays based on An- developed across various spheres – both bilateral and ton Chekhov’s famous works, such as “Three Sisters,” multilateral ties. Today, Russia and Uruguay have mu- “Uncle Vanya” and “The Seagull.” Movie theatres al- tual interests in many fields. Establishing a political ways screen Russian films. We also want to introduce dialogue is definitely one of these mutual interests. Russians to Uruguayan culture. A lot of our writers, musicians, photographers and other artists come to At the end of October, for example, Moscow hosted Moscow. By the way, I think the establishment of a an official delegation visit headed by the Speaker of visa-free regime between our two countries will help the House of Representatives of Uruguay's General our countries get to know each other better, in spite Assembly Pereira. She met with the Russian Minis- of the physical distance between us. ter of Foreign Affairs Sergey Lavrov. During the discussion, the parties confirmed Russia and Uruguay’s Actually, ties between Russia and Uruguay run a lot desire to expand bilateral cooperation across all deeper than it might seem. Not very many people spheres, including through the rapid development know about this, but there is a Russian community of inter-parliamentary relations. Pereira and Lavrov in Uruguay. It appeared there in the beginning of the noted the similarity of the two countries across the 20th century, in 1913. These are old believers who left most pressing issues of the international agenda. Russia for religious reasons – they felt oppressed by They also discussed the prospects for cooperation the tsarist government. In Uruguay, they established between Russia and the various integrated associa- a town called San Javier. As of today, this is the only tions of Latin America. Our trade and economic ties town in the southern hemisphere that is populated are also developing, along with cooperation in the primarily by Russians. Overall, immigration played an legislative sector, the judiciary system, culture and important part in the establishment of modern-day education. Uruguay, and ee frequently refer to it as the founda-

34 CAPITAL IDEAS January-March 2015

Mujica, which took place in the summer of 2014 in Fortaleza, Brazil. They discussed perspectives for cooperation between Russia and Uruguay. The Russian president stated that Russia is interested in working jointly with Uruguay on the development of hydro- power, railway and port infrastructure, as well as on cooperation in the military-technical sphere and in other sectors. José Mujica, in turn, said that Uruguay is located at a very strategic place in Latin America, at the basin of the Parana River. The river is home to the largest iron ore deposits in the world. Our president discussed a joint project with Brazil on the development of an international seaport, and invited Russia to participate in it.

He also spoke about the Rio de la Plata region, which possibly contains large oil deposits. In short, Uruguay is ready to ensure that Russian companies are plugged into different investment projects in our country, including both the production of minerals and the de- Vladimir Putin and José Mujica velopment of various sectors of the economy, especially agriculture. Our countries also cooperate within the framework of Mercosur.

Since we’re talking about meat already, could you tell us how meat is usually cooked in Uruguay?

I’ll say this: no marinade, just salt. Our meat is so great that you don’t need any spices. It just melts in your mouth, and is simply delicious! (Smiles)

Mr. Ambassador, you have been working in Mos- cow for three years. How do you like the city?

Actually, I’ve been in Moscow for eight years. The thing is that the trip to the Russian capital was my first diplomatic assignment after I graduated from the International Relations Department of the Uni- versity of the Republic in Montevideo and the Dip- lomatic Academy and started my career with the Ministry of Foreign Affairs of Uruguay. This was in www.russkiymir 1994. I came to Moscow (not as the head of our tion of our society. Of course, Russian immigrants, embassy, of course), and worked on trade and eco- along with immigrants from other countries, made nomic relations. contributions both in the economic sense and in terms of culture. Moscow has changed a lot since then, and I would say it changed for the better. It is a lot safer, and this Could you tell us about trade and economic coop- is obvious. The 90s were called a “wild” period for a eration between Russia and Uruguay? reason. Over the past 20 years, Moscow has definitely flourished. It has become a city that is pleasant to In short, Uruguay exports agricultural products to Rus- work and live in. Of course, I am most impressed by sia. We export food – especially meat and butter. Russia Moscow’s rich cultural life: its magnificent museums, supplies us with oil and oil products. We are interested wonderful theaters, original architecture ... in diversifying the existing economic relations between the two countries. We would like to both increase our Do you have any places that are special to you, export volumes to Russia and to strengthen Russia's where you like to go for walks? participation in our economy. We have no doubt that our cooperation has a bright future. Yes, the place where I live – the Patriarch’s Ponds. This place is not only beautiful and cozy, but also spiritual. This was confirmed during the meeting between the In general, I think Moscow is a unique city because it presidents of our countries, Vladimir Putin and José has a soul. ■

36 CAPITAL IDEAS January-March 2015 January-March 2015 CAPITAL IDEAS 37 FACEMOSCOW TO FACE IN WORDS

“It snowed and it snowed, the whole world over, Snow swept the world from end to end. A candle burned on the table; A candle burned…”

Boris Pasternak, Russian poet and writer

“People don't notice whether it's winter or summer when they're happy”. Anton Chekhov, Russian author, playwright

“One can know a man from his laugh, and if you like a man's laugh before you know anything of him, you may confidently say that he is a good man”. Fyodor Dostoevsky, Russian writer, journalist and philosopher

38 CAPITAL IDEAS January-MarchOctober-December 2015 2014 “God save us from seeing a Russian revolt, senseless and merciless. Those who plot impossible upheavals among us, are either young and do not know our people, or are hard-hearted men who do not care a straw either about their own lives or those of others.” Alexander Pushkin, Russian poet

“The history of a man's soul, even the pettiest soul, is hardly less interesting and useful than the history of a whole people; especially when the former is the result of the observations of a mature mind upon itself, and has been written without any egotistical desire of arousing sympathy or astonishment.” Mikhail Lermontov, Russian writer and poet, sometimes called "the poet of the Caucasus."

“The battleline between good and evil runs through the heart of every man.” Aleksandr Solzhenitsyn, Russian novelist, historian

October-DecemberJanuary-March 20142015 CAPITAL IDEAS 39 NOTHING VENTURED Chakrapani: People who say doing business in Russia is difficult are mistaken

Mr. Chakrapani has been living and When did you start your first business?

working in Russia for over 20 years. In 1993, I founded Solarcorporation – one of the first companies to import medicine from India to Russia. He has managed to learn Russian, But I made a big mistake when I chose to work with Siberia, the Urals and the Far East instead of with has visited over 100 Russian cities Moscow. In 1996, my friends in Moscow became rich, and has founded several companies while I lost a lot of money and left the pharmaceutical business. across various sectors, all of which What difficulties have you encountered while do- are at currently at different stages ing business in our country?

of development. In his interview In 1993, the market in Russia was open, but there was the problem of the mafia. These were uneducated with Capital Ideas, Mr. Chakrapani people who mostly came from southern regions of the country. Russia is a multicultural country, but talks about the challenges and there are a lot of differences between ethnicities. surprises that foreign businessmen Even Indians are more similar to Muscovites than Russians from the south. Luckily, our “krisha” (a ma- encounter in Russia. fia organization that protects a business) liked India. After some time, they even stopped taking payments from us. These were good times.

Mr. Chakrapani, how long have you lived in Russia What did you do after you left the pharmaceutical and why did you move here? business?

I moved to the USSR in 1988 to study and graduated In 1998, we started exporting Russian synthetic rub- from the Moscow State Mining University. I was a ber and carbon black. These are the two main com- communist – I was drawn in by the ideology. Af- ponents used in tire manufacturing. At that time, ter seeing how it worked in practice, I lost interest. there weren’t as many factories in China and India The State cannot produce everything from needles as there were in Russia, and domestic manufac- to airplanes: some things have to be taken care of turing was cheap because the ruble had dropped. by private owners. I think this is one of the reasons I liked this business, because I could travel a lot. why communism – which is the best ideology – In just a few years, I visited just about every Rus- failed in practice. sian city and had the opportunity to travel to India,

40 CAPITAL IDEAS January-March 2015

NOTHING Sri Lanka, Malaysia, Indonesia, Vietnam, Korea and Just if we foreigners make 2 fines we will be deported VENTURED China. and our entry will be prohibited for 3 years from Rus- sia. This is really a very very pity position. We, foreign- But, after 2003, prices started to increase because ers living in Russia will be happy once if the fines will gas and electricity were more expensive. The price of be paid, immediately it should be reflected in all the goods was closer to the price of imported rubber. I governmental computers like U.F.M.S and automati- asked my Russian friends what products they needed. cally ZAPRET or PROHIBHITION to enter the Russia It turned out they needed butadiene (gas produced will be removed. from oil, used in the manufacture of rubber), since a lot of butadiene factories closed after the collapse of I know that you are planning to open a new busi- the Soviet Union. Butadiene is manufactured in Iran, ness in the agricultural sector. Do you plan to grow so I went there and founded a company. I now import anything or to export goods? butadiene to factories in Sterlitamak, Kazan, Vorone- zh, Togliatti and Nizhnekamsk. Last year, we signed a contract with a large farm called “KrasniyPutilovets” in Kashino (Tver Oblast). This business gave you the opportunity to travel to We rented 20ha of land with local workers and plant- a lot of countries. How is doing business in Russia ed potatoes. The year was more or less successful in different? terms of harvest volumes, though we haven’t implemented any new technologies yet. We sold it locally, When people tell you that doing business in Russia but we’re planning to export it to Dubai, the Maldives is difficult, they are mistaken. There are problems in and Sri Lanka in the future. We would also like to in- every country – in India, in Russia, in European coun- troduce Indian potato seeds to the Russian market. tries. But in Russia, people are open and honest. When I recently visited a potato farming institute in India we sign contracts with Russian companies, they stick and met with specialists who work with potato seeds. to their part of the agreement. Even when there are Since Russia has imposed sanctions on Dutch seeds, small delays, they always call and let us know ahead this could be a promising endeavor. of time. Russians are very civilized, and that is a great prerequisite for running a successful business. We also rented 200 ha in Abkhazia this year, where we plan to grow potatoes and carrots. Another idea Do you have any comments regarding Russian leg- is to build vegetable storage facilities using Dutch or islation? Indian technologies. There is a shortage of such vegetable storage facilities in Russia, and a lot of vegeta- There is one law that came as an unpleasant surprise bles are getting perished every year. We are thinking recently. There is a large influx of migrant workers, about building them in the Moscow region or Tver and the state is trying to regulate it. Over a year ago, Oblast, for about 5,000 tons to start with. Russia passed a law that allows the government to deport a migrant worker after three administrative Moreover, our company is considering the possibility violations. I was affected by this law this summer, of exporting Russian vegetable oils to Iran. This is a when I was in Abkhazia for an agricultural program. new direction that we are actively researching. I came back through Sochi. I was with my cowork- ers and my mom, who came to visit from India. All Do you see a lot of potential in cooperation be- of them were allowed to come back in, but not me. tween India and Russia? They told me I would only be allowed to come back in 2016. That is, I wouldn’t be allowed to come home There is a unique opportunity for cooperation be- to my Russian wife and my business. It turned out this tween our countries. After all, we worked well to- happened because of administrative violations that gether in the past. Now, because of the sanctions, had to do with my car. One time I parked illegally by Russia is looking to the East, to India and China. Even the Expo Center, another time I drove over the speed the banks of our countries are talking about working limit, and the third time an employee committed a directly with each other, bypassing the dollar and the minor traffic violation while driving my car. I had paid euro. This is why I think that there will be a lot of de- the fines, but it didn’t matter. They only let me back in mand for Indian goods in Russia like medicine, fruits thanks to my friends at the Indian Business Alliance. and vegetables for Russian goods in India like Pulses.

I would like to request and invite the Russian gov- Why do all of your companies have the word “Solar” ernment officials including G.A.I, U.F.M.S, parliament in them? speakers to do an experimental long drive in the best highway of Russia M4- ROSTOV-DON from MOS- Solar is the sun god. When I founded my first com- COW to ROSTOV and back from ROSTOV to MOS- pany, my father told me that this is a good name and COW in their own automobile. I can assure you that that it will bring me luck. After all, solar energy is the all these government officials will end up with at least most powerful energy in the world, and we absorb it 10-30 fines in the total route. every day. ■

42 CAPITAL IDEAS January-March 2015 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 http://www.tpprf.ru/en/ Department for Work with Foreign Legal Entities and their Representative Offices Ph: +7 (495) 620 02 14 Fax: +7 (495) 620 01 70 E-mail: [email protected] Ph: +7 (495) 620 02 62, 620 02 21 Fax: +7 (495) 620 01 70 E-mail: [email protected] Moscow Chamber of commerce and industry Address: 38 Sharikopodshipnikovskaya Street, bldg. 1, Moscow, 115088 Ph: +7 (499) 940 33 12 Fax: +7 (495) 675 03 16 E-mail: [email protected] Moscow Investment & Export Promotion Agency Address: 2, Lobachevskogo st., Moscow 119415 Russia Ph: +7 (495) 431 47 78 Fax: +7 (495) 431 47 78 E-mail: [email protected]; http://www.miepa.org/en/ Main Administration for Service to the Diplomatic Corps (GlavUpDK) Address: 20 Prechistinka Street, Moscow, 119034 Ph: +7 (495) 637 31 71 Fax: +7 (495) 637 28 82 E-mail: [email protected] http://www.updk.ru

January-March 2015 CAPITAL IDEAS 43 NOTHING VENTURED People who don’t give up during a crisis always win The Vremena Goda gallery on Kutuzovsky prospect in Moscow has opened the first Gianfranco Ferré Home Italian furniture show room in Russia.

We discussed the event with president of Jumbo Collection Moreno Brambilla and his creative director Livio Ballabio, who designs this remarkable furniture. Livio Ballabio

44 CAPITAL IDEAS January-March 2015 People who don’t give up during a crisis always win Gianfranco Ferré Home is a new brand in the world of luxury interior design that embodies the elegant aesthetic of the great designer’s work. The Moscow show room became the first brand show room in the world (currently, there is also an exhibition in the manufacturer’s head office near Milan). Gianfranco Ferré Home furniture is manufactured by the Italian furniture factory Jumbo, which is famous for handmade pieces of excellent quality. The CASA RICCA holding company, which is an association of architecture, design and luxury interior companies, initiated the emergence of the new brand in Russia. Thanks to the holding company’s efforts, Gianfranco Ferrè Home pieces became available in Moscow just 6 months after it entered the global market. Moreno Brambilla NOTHING VENTURED

The Russian and global economies are going through a difficult period. What was the reason for your optimistic outlook and the decision to expand into Russia?

Moreno Brambilla: First of all, we hope that the current crisis will pass soon. After working in this field for many years, we have seen a lot of international crises and have successfully survived all of them. We understand that people who don’t give up during a crisis by continuing to invest and cater to their customer’s needs always win. We pay a lot of attention to the Russian market because it is crucial to our economy. Three yours ago, Jumbo Collection signed a license for the manufacture of Roberto Cavali furniture. A year and a half ago, Gianfranco Ferré approached us with a proposal to make a furniture line for their brand. We happily accepted. At first our agreement included only a furniture line, but things went so well that we started manufacturing lamps and other household items as well.

Livio Ballabio: Working with fashion brands is difficult, because it entails the merging of two creative concepts. Each fashion brand has its own style, and our company has a unique style as well. There has to be a synergy – a merging of two styles and two ideas. It’s collaborative creativity. We discuss ideas

46 CAPITAL IDEAS January-March 2015 together and the furniture and accessories collec- of finished interior decoration compositions. The fur- tion is the result. An important point is that every niture is complimented by specially-selected fabrics fashion designer thinks in terms of seasons, but and decorative wall finishes. there are no seasons with furniture. We think in terms of years. This is why our work process often Livio Ballabio: The main concept behind the includes tense discussions between the fashion de- Gianfranco Ferré Home collection was inspired by signer and out designer. They try to be creative in fabrics used to make men’s clothes, like “Prince of terms of seasons, while we try to apply more of a Wales.” Gianfranco Ferré liked to use these fabrics timeless concept to our furniture. As a creative di- for his fashion collections. Moreover, they were often rector and person who manages relations between used to make everyday clothes for British aristocrats. fashion designers and the company, I spend a lot The Gianfranco Ferré Home style is distinguished by of time convincing people that changes have to be combination of artificially aged wood of different made, that furniture is not clothing. Every year, we shades and antique finishes. Two-toned geometri- develop and introduce to the market about 200 cal pied-de-poule decorations and strips are used for new pieces of furniture. textiles. Furniture elements, lamps, carpets and home accessories embody the elegant atmosphere of 19th Moreno Brambilla: Gianfranco Ferré Home is a re- century English country houses with refined colonial fined, timeless classic – the type of furniture the Rus- accents and Chippendale-style elements. sian market has been waiting for. This is confirmed by private clients and designers we spoke with at the re- How do you like working with Russian partners and cent iSaloni Moscow exhibition, who expressed great customers? interest in our furniture. We are happy that our first show room in the world is located in Moscow. This Moreno Brambilla: At heart, we are very similar to will give Russian clients the opportunity to evaluate Russian people. Russia is one of our priority markets the advantages of Gianfranco Ferré Home furniture. because we create luxe pieces, and Russians really The show room is markedly different from other fur- like this style. As a company that specializes in these niture salons in Russia – it is 100 square meters that items, it is great to work with Russian clients. We contain every element of our collection in the format wish all the best to you and your country! ■

January-March 2015 CAPITAL IDEAS 47 MOSCOW GLOBAL

This year, the Open Innovations Forum took place in Moscow for the third time. The forum gathered A bright future lies ahead: over 15,000 participants from 70 countries. collaborations in the sphere of innovation

48 CAPITAL IDEAS January-March 2015 A bright future lies ahead: This year, the main topic of the forum was “Creative Disruption: how to stay competitive in the 21st century.” The participants met for panel discussions, seminars and round tables to talk about innovations that are capable of changing markets, established new models for economic collaborations development and exchanged experience in promotion and commercialization of scientific and technological developments.

he Open Innovations forum is clearly grow- up the question of a new pole in global economic ing in popularity. Suffice it to say that, if there power,” the Prime Minister of Russia Dmitry Medve- were just 286 startups represented at the fo- dev noted at the plenary meeting, “Russia is a country in the sphere rum in 2013, this number grew to over 800 that is located in both Europe and Asia, and we are in- startups from 19 countries in 2014. Startup terested in strengthening ties in the Pacific region. We Theads had a chance to talk with potential inves- are ready to jointly participate in the establishment tors, demonstrate their new projects, acquire useful of new markets, engaging in advanced technology knowledge and share best practices. Forum partici- production chains and added value sources. In this re- pants included over 2000 representatives from small, spect, China and Russia have tremendous opportuni- of innovation medium-size and large businesses, as well as repre- ties for cooperation.” sentatives from 64 regions in Russia, over 100 Russian and foreign universities, 29 international associations Chinese partners held a special event called “Dialogue and over 900 journalists. This year, guests from 69 on Innovations: innovation policies of partner coun- foreign countries attended the forum. Special atten- tries,” where experts outlined the main vectors of fur- tion was paid to Asian countries: in 2014, the People’s ther cooperation. “Innovation is the engine that drives Republic of China became the official partner country humanity’s development. The world is going through of the Forum. major changes and radical restructuring. This means that innovation has to be wide-spread, and this task China, like many other countries of the Asia-pacific cannot be accomplished alone. We need openness and region (including India, Japan, South Korea and Sin- the willingness to work together, to share our achieve- gapore) have achieved impressive results in creating, ments with partners. With globalization and informa- promoting and distributing innovations. “This brings tization under way, it is important for countries to join

January-March 2015 CAPITAL IDEAS 49 forces for cooperation in the field of innovation in or- There were three presentation zones, which hosted der to accumulate knowledge and valuable informa- a total of 50 events. The startup zone, which was tion needed to resolve development challenges. This the center of the exhibition, featured presentations is the essence of open innovations,” said the Premier from 110 teams. The Open Innovations Expo also of the State Council of the PRC Li Keqiang. became the main platform for the Forum’s Youth program. Over 30 events for young entrepreneurs According to many Russian representatives, the sys- and students took place on the startup stages over tem of innovation development has to be decen- the course of three days. tralized and made more transparent. This means increased openness from major state corporations Exhibitions from 19 regions in Russia were presented that are hesitant to acquire new technologies, from at the Open Innovations Expo. Large-scale exhibi- military establishments that are in no hurry to share tions from the forum’s partner country demonstrat- ideas, and from foreign partners. ed the PRC’s advancements in establishing special economic zones, technology parks and innovation The Open Innovations Expo served as a testament clusters, as well as developments in the aerospace to this point of view. The Expo was a platform for industry, nuclear energy, information and communi- demonstrating innovative technological advances, cations technology and new energy sources. assessing the competition, networking and attract- ing investments. The Open Innovations Expo plat- One of the most significant aspects of the forum is form at Technopolis Moscow took up a total area the forum speakers. This time, in spite of political of 13,000 sq.m. The exhibition featured 84 stands tensions, a lot of high-profile speakers were invited with projects from 490 companies and 15 countries. to participate. Three Nobel Prize recipients spoke at

50 CAPITAL IDEAS January-March 2015 the forum, along with government heads from Rus- sponsible for everything we create. Let’s develop in- sia and China, and leading specialist in the spheres novations together.” of science and innovation. All of them gave positive assessments of the Open Innovations Forum. “Rus- “Research in certain areas of science and technology sia is quite impressive when it comes to innovation that is currently in progress across different coun- and creative potential. I hope that collaborations in tries can be combined into joint efforts and be more the sphere of innovation will open up a bright fu- effective,” said Deputy Chairman of the Board and ture for us,” said the co-founder and CEO of Mo- Acting CEO of Huawei Guo Ping, “I am certain that bilium Global and Global Ambassador for the CTIA over the next few years, Russia will become a strong Ralph Simon. center for innovation that is no less famous than Sili- con Valley or Shenzhen.” The success of foreign colleagues who have already implemented their breakthrough ideas is an invalu- Open Innovations, the 3rd Moscow international forum able motivation tool for young Russian entrepre- for innovation development, has confirmed its status neurs who are launching their own startups. “Inno- as a global platform for discussions in the sphere of in- vation is born inside of us. In order to bring an idea novation by providing its guests and participants with a to life, you have to determine what you know, add wide range of opportunities to share practices, demon- what you believe in, establish a course for develop- strate achievements and develop a common vision for ment and do everything differently, in a way that technological development. The Forum demonstrated nobody before you has ever done,” said the head Russian achievements in the field of scientific and of the pilot project Solar Impulse Bertrand Piccard, technological innovations and the desire for openness “But it’s important to keep in mind that we are re- and strengthening of inter-state collaborations. ■

January-March 2015 CAPITAL IDEAS 51 MOSCOW GLOBAL Edwin Basson: There was never a question whether to come to Moscow

They didn’t want any media noise, because it was just their job. Every year the members of World Steel Associciation (or worldsteel) choose a city to get together for debating problems and perspec- worldsteel-48 tives of the industry and there have been a lot of places on that long way already. The organization Moscow 2014 held its 48th annual conference, but it was the first time as Russian capital had the honor to welcome the elite of the world steel business. Of course, ‘Capital Ideas’ couldn’t miss the lucky chance to meet such people and talked to them. And Edwin Basson, worldsteel General Director, although bee- There were no television cameras and ing very busy found some time in his tight schedule splashy headlines in papers on the and answered our qustions.

day of the event, but it didn’t mean it First let’s start by why we’re in Moscow. We have two board meetings every year. One is normally in April was something unimportant. Quite and by common agreement it is a location some- the opposite: the CEOs of the largest where in Europe, because it is most easy for everyone around the world to reach. The second meeting is in steel companies in the world such as October which is normally a board meeting and also an executive committee meeting and a conference. global ArcelorMittal, Nucor (US), JFE And the second, October meeting we circulate region and Nippon Steel & Sumitomo Metal by region. And you’re right, first time for us when we here in Moscow – partly because we have been plan- (Japan), Baosteel and Anshan (China), ning it in our executive committee for a long-long time, so that’s not the reason why we’re not coming POSCO (Korea), Gerdau and AHMSA here. And we’re coming here because we have been from Latin America, arabian HADEED invited by the Russian Federation to have a meeting somewhere in Russia. And the first question was then and so forth, gathered in Moscow at to do this in Moscow or St. Petersburg and by advice from Russian organizing committee, which was from the same time. Russian Steel Association, we chose Moscow.

52 CAPITAL IDEAS January-March 2015 Edwin Basson received his PhD in economics from Edwin joined Mittal Steel (now ArcelorMittal) Pretoria University. He taught economics at the in 2004 as a General Manager responsible for same university from 1984 to 1990. Marketing Strategy. He then headed Commercial After a few years in the banking industry, he joined Research and Market Segmentation. From 2006 the steel industry in 1994 as Chief Economist at Iscor he joined worldsteel, he was Vice President, Ltd. In 1996 he became Business Units Manager for Commercial Co-ordination, Marketing and Trade coated steel products and flat steel products. He later Policy at ArcelorMittal. Edwin joined World Steel headed Strategic Initiatives at the company. Association in August 2011 as Director General MOSCOW GLOBAL

You did it from the view of better logistic, didn’t you? And what does Moscow look like?

Basically from the view on advice from Russain Steel. I must admit I’ve spoken to someone earlier today Well, I have to think back about two and half years that said his first time in Moscow was in 1984, and ago because this was when the decision was made. now is his second time here in Moscow. It was really I think the advice that time was for hotel space was a long time to see a different city. I have not been in better or more available here, and easier to reach by Moscow that far back, so I cannot tell difference be- airport, although I think St. Petersburg is also easy to tween what Moscow was and Moscow is according reach. And more specifically – getting access to se- to what I see. nior officials and so forth to be part of the conference. Those were kind of the three main reasons. The other, But if you take this conference in comparison with and maybe the last remark – it’s also for us – that some previous events you had, for example, in New worldsteel is a non-political organization. This is one Delhi, 2012, Sao Paolo, 2013, what would you say of the reasons, why it was not even an issue for us about? Is there any differences? to come here in Moscow. When we started arranging two years back there was never a question. We are always fortunate to be able to hold these events in very-very good hotels and with good support from the local industry, as in this case the Russian Steel Association. As far as I can see, I see no differ- The World Steel Association (worldsteel) is one of ence. This is a nice hotel it’s, I think, one of the newest and largest hotels in Moscow. It was an easy event to the largest and most dynamic industry associations organize because of the facilities are there. Really the in the world. worldsteel represents approximately experience, that I find here now, I can only talk on behalf of myself, and about all of these arrangements, it 170 steel producers (including 9 of the world's 10 is that was very-very smooth. It was easy about qual- largest steel companies), national and regional steel ity of the infrastructure and easy arrangements, quality of the food – it was just very good, positive experi- industry associations, and steel research institutes. ence for all of us. I have no complaints from anyone worldsteel members represent around 85% of world about quality of the service or anything else, and the comments that I’m getting from others is that they steel production. feel that this is very convenient location and very convenient hotel. I had more complaints about the traffic in Moscow before I came then even now, but it’s

54 CAPITAL IDEAS January-March 2015 the problem of most big cities in the world. Because Not many industries can say that. So there is optimism we hold the event over the Saturday, over the Sunday from growth in demand for our product. That opti- and the Monday and Tuesday so most people came on mism is not reflected in terms of returns in profitability Saturday. I know when they came they enjoyed just for the industry which certainly has come down over walking onto Red Square area which is not too far the last couple of years. And if I have to talk about one away from here and many of them took deliberately of the key realizations at this event, it’s the fact that as underground to experience. an industry we have to do something to protect the status of steel as a product. And to really make the in- But we’ve heard from the members of worldsteel formation known to the world that this is a really won- they are too busy for sigthseeing and visiting the- derful product. From any prospective that you look aters, galleries and so forth... at it (and also from an environmental prospective), it has a competitive element in a sense you can produce That is the life, unfortunately. But we have a number of and use this product in a way which is not worse than tours for the wives. So after this they will know much any other competitive product. In terms of number of more about Moscow and then we will know about uses of this product whether it’s about reconstruction, Moscow as they will forever tell us to come back here. whether it’s about building new things, making con- I think Moscow is such a rich cultural city. It has such a sumer products like cars an washing-machines. And it long history. So there’re so many things to do. is very versatile product for the economic society in the modern world. However, you’ve come here for work. What are preview conclusions concerning the industry, its Do you think Russian steel industry can share that current state and the future? optimistic view?

If we look into the future of all of us, telling about our Am I optimistic or am I pessimistic about Russian Fed- own private life, we never know what will happen in eration, I think in time there’s going to be continuing the future. But if I look at the consensus of our large growth of steel use here in Russia for one simple rea- team of economists which coming together in the eco- son. Like that in my own country, Republic of South nomic discussion on the world steel, there’s optimism Africa, and like in many other countries there’s so a that there will be possible growth: for next year 2%, and lot of growth in the economy to reach levels of the for this year also 2%. The use of steel is also growing countries around us. It might sometimes take faster about 2%, that is about 30 Mt every year more. So that or slower depends on specific situation. But overall, is good ground for optimism in our industry – indus- I think that is a positive pressure on steel use here in try that has been growing over the last two decades. Russia as well. ■

January-March 2015 CAPITAL IDEAS 55 ROOTS Stalin: Won’t we find gold for our girls? The Exhibition of National Economy Achievements (the Russian acronym is VDNKh) has long been an established symbol of Moscow. In August, it celebrated its 75th anniversary. Unsurprisingly, city authorities decided to revive the erstwhile fame of the legendary display premises.

f Moscow had no VDNKh, it should have invented one. It mirrored the country’s history, its ups and downs. The opening of the exhibition on August 1, 1939, was a momentous event for the country. The Soviet Union had never had anything like VDNKhI before: a town within a city that stretched across an area of 136 hectares and featured 250 structures, parks and ponds.

The idea to open a unique exhibition emerged at the 2nd All-Union Congress of Record-Setting Farmers in 1935. Announcing “complete victory” of socialism in the countryside, its participants called for opening All-Union Agricultural Exhibition in Moscow. The Exhibition was to be a platform at which the best collective farms, state farms and machine and tractor stations of the country could display their products.

Soviet leader Joseph Stalin immediately approved the idea, realizing the significance of promoting Russia’s national achievements. Suffice it to say that more than three million people visited the exhibition in the first three months of operation. It was so popular that many artists, composers and film producers tried to immortalize it in their works. VDNKh was featured in three films produced within a short span: the Found- ling, the Bright Way, and the Pig Tender and the Shep- herd. Vera Mukhina’s sculpture “the Worker and the Collective Farmer,” one of the main adornments of the exhibition, remains the symbol of the world-famous Mosfilm film studio.

It was renamed only once afterwards. This happened when the Soviet Union collapsed in the early 1990s. VDNKh was renamed to the state-owned joint stock company “All-Russian Exhibition Center.” The name had a certain logic to it: what achievements could be put on display when the whole country was as good as ruined? The excellent pavilions that used to draw millions of visitors (statistical report put the number of visitors at more than 20 million a year) were leased

56 CAPITAL IDEAS January-March 2015 Stalin: Won’t we find gold for our girls? to warehouses and shops. Perhaps this would have ended the glorious history of VDNKh had the Moscow authorities not begun to map out future plans for it in The People’s Friendship fountain is generally regarded as the key the 2000s. element of the exhibition. It is 117 meters long, 34 meters wide

The year 2014 was pivotal in the history of the exhibi- and 70 meters deep. Bronze figures of female farmers with a thin tion. On March 26, Moscow mayor Sergei Sobyanin said layer of gold are placed around the fountain. It is rumored that after visiting VDNKh that the exhibition center’s title will be changed to its old name: the Exhibition of National when a Soviet official objected to “clothing the girls in precious Economy Achievements. In a subsequent interview, the metal”, Joseph Stalin asked in surprise: “won’t we find gold for mayor commented on his decision further: “this is our memory, our pride. Although some claim that the name our girls?” The fountain was built in 1954, and four years later smacks of something stale and Soviet, my opinion is that a decision was made to convert the exhibition from dedicated VDNKh is a better name than the All-Russia Exhibition Center, because the latter is associated with the dark- display of agricultural products innovations to a center used to est period in the history of the exhibition complex – not showcase the achievements of the Soviet economy. This is how just for Russia, but for the whole world. The unregulated market swept out of VDNKh all the achievements of our the acronym VDNKh (Exhibition of National Economy Achieve- country’s national economy, destroying architectural, ments) appeared. historical and cultural monuments.

January-March 2015 CAPITAL IDEAS 57 FACE TO FACE

their work cut out for them with VDNKh: 615 buildings, including 29 federal monuments and 70 exhibition halls. In short, VDNKh should become Moscow’s largest public and cultural platform over the next few years. The project will receive funding from extrabud- getary funds and large corporations such as Rosatom and Roskosmos. It will also use the proceeds derived from exhibitions.

The Moscow government plans to set up the Moscow pavilion at VDNKh, which will house the city’s interac- tive model. At present, the model only replicates the historical center, but by 2017 it will show the whole capital with optional detailed view of each house and each street. It is expected to be the world’s largest model of a city, dwarfing the incumbent record-setting models of New York and Shanghai. The model, shown for the first time at the IMPIM 2014 exhibition in Cannes, enjoyed a tremendous success with the investors interested in working in Moscow. This pavilion will also display all large city investment projects that These pavilions are in a sorry state now. Molding and are already running or are still in the works. pieces of plastering break off the walls. Is it not blas- phemous to sell brooms against the background of a VDNKh will be upgraded to be a multi-purpose facil- portrait of the world’s first cosmonaut Yuri Gagarin? ity. It will accommodate not only exhibitions, but also The purpose of the site is to be the main exhibition projects from the scientific and educational sectors, center of Moscow and the whole country. It has to museums, recreational facilities and an entertain- be revived.” ment zone. All these functions were available in 1939 and Moscow will only have to restore them. City au- This means it is not just about renaming the exhibi- thorities said they would hear the opinions of experts tion, but reviving it, which the mayor said was a pri- and Muscovites about how to make the best use of ority for the city government. The authorities have VDNKh premises. ■

58 CAPITAL IDEAS January-March 2015 around the world Since the beginning of 2013 Capital Ideas has been successfully presented at Destination Moscow roadshows held in London, Frankfurt, Tokyo, Boston, New York and many other cities around the world

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

Write to Sergo Kukhianidze at [email protected]

January-March 2015 CAPITAL IDEAS 59 BOOKSHELF

Teri Lindeberg, founder and CEO of Staffwell, is a remarkable woman. She knows all the ins and outs of doing business in Russia. She is the author of a great book titled Making Perfect, which is about what employees want from their employers. The book contains over 900 tips on how companies can improve their businesses based on employee ideas and feedback. We continue to publish excerpts from the Teri’s book. What suggestion would you make to improve working conditions, hours, shifts, amenities, etc? Sometimes the small stuff is the big stuff for employees.

MIRROR “A mirror”, Alla said. “A mirror?” I asked, not sure I was hearing right. “A mirror!”…”Like my new room – was where I started. Would love a mirror in their room (as they are girls)”… “Yes” she giggled, “a mirror. You see, most of the team work close to the bathrooms, but we have to walk all the way I was having my “Tea with Teri” with Alla, one of our accountants, past all the interview rooms, past reception, past the stair- and I got to this question and the conversation went like this: case, and well, we are girls, and we just want to try to look good before we leave our room and walk around the office.” “So, Alla, question twenty-one, what suggestions do you have to improve working conditions, hours, shifts, ame- “OK, so let me get this straight, all you want is a mirror, nities, etc.?” like so big (I held my hands up to an 8” x 10” size), like a

60 CAPITAL IDEAS January-March 2015 ten dollar IKEA mirror, is that what we’re talking about traveling)”…”Would like an 8-5 work hour shift for me and Uliana”… here? Ten bucks?” ”Company is flex with work hours”…”Flex hours every so often when needed”…”Flexible or floating hours with a nine hour total”…”Thankful “Yes”, she giggled, “that’s all.” for giving me 8-5, better for time management”…”Happy with the new flex hours”…”The occasional 10 to 7 would be good”…”9:15 start time “There is nothing else I can do for you, like a salary in- due to my daughter’s school”…”Leaving early every Friday all year long crease or…? Just a mirror?” I asked. – not just Summer hours”…”all is good now that there are shifts for people”…”8-5 would be great”… “Yes”, she giggled again, “Just a mirror”. During some of the first few “Tea with Teri’s” I conducted, our I said, “Alla, I will personally go to IKEA and buy you this staff mentioned they wanted flexible work schedules. I imme- mirror and you will have it within two weeks.” diately offered it as a benefit to the entire company. In addition to our formerly required 9am to 6pm, people were allowed to I have to say that this was one of the most, if not the most, also work the hours of: 8am to 5pm or 10am to 7pm. I was re- touching moments of this exercise for me. It was just such ally appreciated for it and it was very motivating for everyone. a sweet and simple request and yes, of course, they should have a mirror in their room. It makes total sense to me and I We do let a few people, on occasion, work from home, but these think it is great that they care about their appearance in the are staff members that are high performers and always meet, office. I love it, and it still brings me to tears of endearment or exceed, all of their KPI targets. The person that is request- just thinking about it - like it was from a screenplay. ing flexible work hours here has difficulty in meeting some of his KPIs on a regular basis. As a result, I am not comfortable in Employees want: trusting him to work successfully from his home.

• Mirrors in their office area so they can check their appear- Early Fridays all year long is not going to happen! However, as I ance, to ensure they look presentable around the office. mentioned in a previous chapter, I do like this idea as a monthly reward for high performers.

AIR AND LIGHT Employees want:

“Already have a good schedule now, need to think about air this Sum- • Flexible work schedules to be offered; mer – open windows during lunch time to refresh air, early Fridays as • To occasionally work from home; and usual – microwave could be good, but not necessary”…”Air and light • To leave one hour early every Friday of the year. issues, likes it light plus fresh air – has issues with things like this”… ”Hard to sit in open space as hot or cold – she likes it cold and Mar- garita likes it hot”… COFFEE MACHINE

When it comes to air and light, different people like various “Coffee machine; want a coffee machine”…”Coffee machine, Ilike working conditions. Some like it colder and darker while some espresso”…”I like our office – a coffee machine would be great”… prefer it warmer and brighter. Most like air conditioning but also like, on occasion, to open the windows for fresh air. These We do have coffee machines in our Moscow office so, of course, things should be taken into consideration when a seating plan we should have one in our St. Petersburg office. Perhaps it will is being designed. Sending out a simple questionnaire will allow not be an expensive espresso machine but we can surely pro- everyone to provide their preferences. vide them with a standard coffee machine. We need such, in addition to tea and water, for our staff, and visiting clients and Employees want: candidates.

• To open windows, on occasion, so that fresh air can Employees want: circulate through the office; and • To have their seating preferences taken into consider- • Coffee machines in their offices. ation with regard to bright lighting or low lighting, and colder or warmer areas of the room. UP-GRADE LAPTOPS FLEXIBLE SCHEDULES “Very organized already – all fine, up-grading laptops in the future (out-dated and heavy now)”… “Good conditions, good office, some flex schedules for employees -(Ok sana starts at 8am) “…”Slightly flexible schedule – maybe some oppor- We use laptops to deliver electronic presentations to clients tunities to work from home from time-to-time (save on gas and time when we are selling our recruitment and executive search

January-March 2015 CAPITAL IDEAS 61 BOOKSHELF

services. I believe that it is a great presentation and really sets up apart from our competitors. We have had our current KITCHEN laptops for several years now and they are larger and heavier than the latest models. This can be especially burdensome “Have a kitchen room, fridge and snacks”…”If we had a fridge and a for our female directors to carry around the city on appoint- microwave, it would be easier to stay out of expensive restaurants at ments. lunchtime. Beer could be kept in the fridge also ☺”…

When we have the budget we will up-grade current laptops to In Moscow, we are housed in an old historic building with no lighter models. cafeteria, so our only dining options are city restaurants, cafes and food kiosks. If we had a kitchen in our office we would Employees want: surely have roaches, so that is not an option. In spite of the sharp recession in Russia we did not lower wages and, there- • Lightweight laptops or similar, if needed for their fore, I thought we could survive without a kitchen for awhile, role. and come back to this issue when the market was better.

I agree, having a huge refrigerator full of beer, and a wine cel- SEPARATE COLD CALLING ROOM lar, hot tub, masseuse on staff, hookah pipes in every corner, a disco ball with a sweet sound system, and a roof top deck with “All works very well, need cold calling in separate room”… 40 lounge chairs, would be great! However, we are not Google, and we have a lot of work to do in order to come out of this At Staffwell, everyone works in rooms where people are seat- recession on top. ed around them. I have always preferred this type of seating as it fosters a more focused and productive work environment. It Employees want: leaves less opportunity for people to goof around on the company dime through activities like extensive internet surfing or • Kitchens in their offices. chatting on the phone with friends.

However, I do appreciate that some of our team would be RENOVATION more comfortable and confident if they had some privacy and less noise when making important sales calls or follow-up “Remont [renovation] office; too cold and too hot in some places - calls to clients. I decided that I would look into dedicating make that better”…”Fix the paper towel holder! It is embarrassing for a small office space for our Director’s team to use for this candidates to see this. All candidates think our updated offices are purpose. great compared to before”…

Employees want: Employees care about the condition of their office and their working conditions in it. We cannot really make the office hot- • Dedicated private and quiet rooms, in which to make ter or colder and this is not an issue, except for one person who important business calls. is an above-average complainer. However, we can immediately fix the paper towel holder in the ladies’ bathroom and I decided MANAGEMENT REPORTING LINE to see to it myself that it got done within a few days. We did update our offices a year ago to the delight of all of our “All OK but people are still going to Diana instead of Albert – this is staff, visiting clients and candidates. We had limitations due an issue!”… to our offices being located in an historic building. Nonethe- less, we put in all-new carpeting, painted all the walls and win- Reporting lines do need to be respected. However, I need to dows, created a proper reception area with proper reception look further into this to see what the real issues are. Albert may furniture, and put up framed Staffwell motivational posters in need some training on how to communicate more effectively all the rooms. This was done to create a really great looking and with his team so that they do go directly to him. Alternatively, thoughtful office design which really brings good and positive Diana may just need to set boundaries for Albert’s team regard- feelings and feedback to all who visit us. ing which issues should be directed to Albert and which issues should be addressed to her. Employees want:

Employees want: • Office air temperature to remain fairly neutral and not fluctuate too much; • Reporting lines to be respected and followed by ev- • Bathroom toilet paper and paper towel dispensers to eryone. be in proper working order; • Offices to be updated when they need to be.

62 CAPITAL IDEAS January-March 2015 We can always make our Staffwell Digital System better, and FITNESS CLUB MEMBERSHIP it is a constant work-in-progress. I think this idea is a good one and I noted to look into it once we have our new pro- “Pay for 30% of sports club membership”… grammer on board.

Paying only 30% is better for us than having to pay 100%. Un- Employees want: fortunately, this is something that we cannot afford in the midst of recession. However, I have noted that it is of interest to sev- • Their suggested up-grades made to the Company’s eral people and maybe in the future it is something we would digital CRM systems. consider as an incentive, or additional perk, for top performers.

Employees want: ALL FINE

• Partial payment of fitness club memberships. “Hours are good now, great office location, not Class A like others, but likes this place here and the management”…”All is fine”…

SCHEDULE It is just nice for me to hear that some of our team appears con- tent with our hours and amenities. “Create an electronic schedule in the system – not just a board in reception”… Employees want:

Currently, in our reception area, we have a big board that shows • Nothing sometimes, because all is fine. which employees are in the office and which are not and why, and where they are. Our staff update it themselves, every time they enter or exit the office. ENGLISH LESSONS

Creating an electronic version is a great idea and I am unsure why “English courses”… we don’t already have one. I decided to look into that further. We have very few staff members that do not already speak Employees want: English. Those few that do not speak English seem very keen to learn and I think that is great. • Modern, digital processes and systems. A few years ago, we did offer paid English classes to staff. How- ever, those who signed on for the course eventually started MOVING DESKS to show up less frequently for the classes, and we eventually cancelled them. However, when things are better I am willing “Bad was too many workplace moves under orders from Adam – very to revisit them for those who are interested to learn, and willing disruptive”… to allocate the time commitment for the lessons during lunch or after work hours. Some people just do not like change and, especially, changing their workstation location. We have to do this sometimes as it Employees want: makes sense when we are trying to keep teams together. How- ever, we should be more flexible in the future, and more consider- • English lessons, to be paid by the Company, if they ate of possible disappointment by certain people in such moves. need and want them. Employees want: DISCIPLINE • To sometimes keep their workstation location where it is; and “Discipline helps, people need discipline. • To be consulted prior to any workstation location change. I agree that people do need discipline and strong-focused management. I made notes to personally evaluate our management IT/SDS team on this and other areas mentioned. Employees want: “After we hire a good programmer in the future, there are some up- grades needed with SDS – especially pertaining to the legal sector • Management to instill discipline throughout the com- (specialties of lawyers)”… pany.

January-March 2014 CAPITAL IDEAS 63 TUTTI-FRUTTI Why don't russians smile? Russians don’t like to smile, but not because they’re angry. And it has nothing to do with Russia’s harsh climate. They are just raised differently.

llow me to clarify something: Rus- It’s important to understand that smiling serves sians take smiling very seriously. In a completely different function in Russia. “The the West, smiling has become so au- Russian style of communication is character- tomatic that there is even a special ized by unsmiling faces, which always pointed term for it – “to flash a smile.” In Rus- out as a very specific national feature,” says the Asia, a smile is a lot more meaningful. It is no famous scientist and professor Joseph Sternin, wonder that a Russian person who is travelling Head of the Linguistics and Stylistics Depart- abroad will often notice that his facial muscles ment at Voronezh State University, “The thing start to hurt after a few days – he now has to is that smiling is not a sign of politeness in smile at everyone and everything! Russia. In America and Europe, smiling is polite, and it is necessary to smile during a greet- For Russians, automatic smiling can be ex- ing and throughout the conversation. Smiling hausting – we consider people who default in the service industry in the West and in the to the smile to be insincere and think they East also demonstrates politeness. This is why are trying to hide their true intentions behind there is a famous Chinese saying: ‘A man with- friendly exteriors. out a smiling face must never open a shop.’ For

64 CAPITAL IDEAS January-March 2015 Why don't russians smile?

Russians, smiling is a sign of affection – a way In other words, the Russian smile is no less of saying you really like the person.” mysterious than the Cheshire Cat. It has to be meaningful and emotionally justified. It has to It’s no surprise that Russians do not smile at reflect positive and honest emotions: trust, strangers. Smiling, in Russian culture, is re- warmth, friendliness, joy. ■ served for people you know. For example, two strangers who walk into an elevator together do not smile at each other, as they would in the West. This is why even salespeople and waiters do not smile at clients – they are strangers. If the client knows the salesperson or the waiter, they will definitely smile!

Russians do not smile at work or when doing something important. For example, customs officers at airports, policemen, doctors and teachers rarely smile, because they are doing an important job.

Russians are also not accustomed to smiling back at people. If a Russian sees a stranger smiling at him, she will start looking for a reason the person is laughing. The first thing that will come to mind is a wrinkled shirt or bad hair that is making the other person laugh.

A Russian person needs a good reason to smile. Excessive smiling or happiness seems suspi- cious to Russians – they may think you are stupid or crazy. There is even a Russian saying about this: “A smile for no reason is a sign of a fool.” When a Russian person sees a polite smile, he might think: “Why are you smiling? Are you stupid?”

The non-smiling Russian face (that is, the ab- sence of a smile and not grim facial expres- sions, because Russians are happy, cheerful and witty people) is also reflected in Russian folklore, which contains a lot of proverbs that vilify laughter and jokes. For example, this is an excerpt from Vladimir Dal’s Proverbs of the Russian People: “A joke doesn’t end well.

Laughter results in sin. Laughter is reflected in by Anastasia Saifulina Pictures tears. There is no truth to jokes. Jokes do not end well.”

January-March 2014 CAPITAL IDEAS 65 QUALITY TIME Anton Chekhov: want to understand Russia? Come to Moscow!

66 CAPITAL IDEAS January-March 2015 Anton Chekhov: want to understand Russia? Come to Moscow! Born in southern Russia near the Sea of Azov, spent his last days in the German Badenweiler, travelled thousands of kilometres across Siberia and across the Indian Ocean, has visited Europe multiple times, lived in Yalta for many years... And still more than anything the name of Chekhov belongs to Moscow. Soon after his arrival in this city to study at the University of Moscow, he wrote to a friend: "I'm terribly in love with Moscow. One who gets used to it will never leave it. I am forever a Muscovite. "

More than 50 addresses in Moscow lthough Chekhov House-Museum is liter- are tied to Chekhov, says Ernest ally sandwiched between massive facades of nearby buildings, it is easy to see because of Orlov, Deputy Director of the State the unusual architecture, which does not fit Museum of Literature and Director of Ainto any of Moscow's styles. the Chekhov House-Museum. But the There is magic in numbers. Here, number 4 prevails. central memorial of the great writer The mansion itself built in 1874, and the museum was opened in it in 1954. In this house that "looks like a chest is focused in this cosy house on one of of drawers," as defined by its own great inhabitant, the main streets of the capital — the Chekhov lived with his family for four years. And some years those were! He settled here as an obscure novice Garden Ring. writer who published short stories under a pen name, and left here a famous Russian writer.

Within these walls Anton Chekhov wrote about a hundred short stories and the first major work — the story "The Steppe", where in fact there is no plot, but there are artistic depictions of space unmatched in skill, filled with the smell of grass, the sounds of an invisible life of nature and a sense of joy of being human. He also created his first play to be performed on stage — "Ivanov", which began the spectacular success of Chekhov the playwright. Top actors, starting with Vladimir Davydov. a contemporary and a friend of Chekhov’s, considered it an honour to play a role in it, and more than a hundred years later, "Ivanov" remains in the repertoire of the leading theatres.

January-March 2015 CAPITAL IDEAS 67 QUALITY TIME

A.P. Chekhov’s Office

Literary work started being his livelihood. Chekhov’s fees grow together with fame, and, moreover, in the same period of time he gets the Pushkin Prize — 500 rubles. Finally, time for Chekhov's family to end strug- gling with the lack of money and the need to constant- ly move from apartment to apartment. The rent for the ‘chest’ is 650 rubles a year, and Chekhov is able to pay that much.

But let’s peek inside this charming mansion! Despite its modest size, it contains the world's largest collection of authentic items related to the life and works of Chek- hov. It is based on books, things, letters, photographs, and pictures submitted by relatives and descendants of Anton Chekhov. They give an accurate representation of the way of life, habits, preferences, and ways of the writer's life and that of his numerous entourage. Suf- fice it to say that they have collected almost all his lifetime portraits. The book collection, without exaggera- tion, is considered to be the richest. It presents even such rarities as the censored first collection of stories, "Mischief" (1882) with illustrations by Nikolai Chekhov, Korneev House in Moscow. Artist: V.N. Nizov the elder brother of the writer. Here you can find all

68 CAPITAL IDEAS January-March 2015 Living room in the A.P. Chekhov House-Museum M.P. Chekhov’s room (writer’s sister) the lifetime editions of Chekhov's books, including col- morial hall, Checkhov’s office the pen with which he lected editions, published by a major Petersburg book wrote the play "The Cherry Orchard" and the table at publisher Marx. Not to be confused with Karl Marx! which he worked from 1886 to '89 are presented. Per- By the way, Chekhov did not fail to make a joke about haps some of the visitors were surprised to find medi- the similarity of names and after the first run in the re- cal devices on the shelf in the closet and learned for the spectable publishing house announced to friends: "I am first time that Chekhov was a certified medical prac- now a Marxist." titioner, and did not cease practicing medicine even after becoming a famous writer. This combination of Extensive collections of the museum are open access, the writer's and doctor's work is demonstrated by yet and it's a real gift to the researchers of the life and work another exhibit— the inkwell with a bronze figure of a of Chekhov. Foreign experts are here almost more than horse, a gift from a poor patient from whom Dr. Chek- the Russian literary and theatre critics. Ernest Orlov re- hov not only refused to accept payment for treatment, called how in 1997, met with Donald Rayfield, Professor but also gave money to buy medicine. Emeritus of the School of Modern Languages, Queen Mary University of London, and the author of the pop- Sixty years ago, when the house-museum just opened, ular book "The Life of Anton Chekhov" a biographical Chekhov’s study was the only memorial room. Since version, which, though controversial, attracted a lot of then, the historical space has increased significant- attention of Western audience, and was then trans- ly. Restoring it room to room based the drawings lated into Russian. younger Chekhov brother, Mikhail, and according to the plans charted by his sister, Maria Pavlovna. God And yet most people do not come here to study, but to gave this remarkable woman a long life: she died at simply "be with Chekhov." The main value of the mu- the age of 94, having done a lot to keep the memory seum is authentic decor of the house. In the first me- of her great brother.

January-March 2015 CAPITAL IDEAS 69 QUALITY TIME

Book – Sakhalin Island A.P. Chekhov 1889

The only thing lacking in the setting of Chekhov's for preparing carp fried in sour cream that many read- house is dining room. However, all the necessary items ers immediately decided that it must be Chekhov’s fa- and interior parts for it are collected, and as head of the vourite dish. Although no evidence confirms that, the museum Ernest Orlov promises, soon this room will be recipe successfully migrated from literature to cook- restored in its original form. It must be said, it has not books. Many way of cooking carp now offers Internet not only a purely domestic, but also a literary meaning. and, of course, all of them are "Chekhovian". And here’s why. Chekhov’s house attracted Moscow’s cultural dias- In Chekhovs’ life, hearty and delicious meals played a pora like a magnet. Many well-known artists, actors, significant role. As natives of the south, they enjoyed musicians have visited, and this is clearly reminiscent fine cuisine and were well versed in it, using bergamot, of the museum. Perhaps the most interesting evi- capers, artichokes and tomatoes in cooking that they dence is a photo of Tchaikovsky with an inscription. themselves grew in their estate Melikhovo, near Mos- Famed composer sent this photograph immediately cow. At the time few have heard of such products even after receiving the new collection of short stories by in Moscow, famous for its hospitality. Understandably, Chekhov dedicated to him, and then he came to visit the writer Anton Chekhov paid tribute to the culinary to express gratitude for the honour. Two great Rus- side of life in his works with his characteristic sense of sian talents scheduled plans for working together, humour. In this house, a lot of "delicious" pages that can preparing to write an opera based on Lermontov's ro- awaken the appetite even indifferent to human food mantic story "Bela" (one of the five parts of the novel were written. For example, in "The Siren" he so colour- "A Hero of Our Time"). Alas, these plans did not come fully described, in the words of his character, a method to pass. In 1890, Chekhov left Moscow for Sakhalin Is-

70 CAPITAL IDEAS January-March 2015 land to describe the lives of convicts living there, and P.I. Tchaikovsky, Tchaikovsky went on tour across Europe in 1891. They 1889 never had a chance to meet again. But fate held one more parallel in store for them, this time tragic: in 1893, when Dr. Chekhov went to combat the epidemic of cholera in the Moscow region, Tchaikovsky dies of cholera in St. Petersburg.

Musical and theatrical tradition of Chekhov's house continues today. There are always performances happening of works by Tchaikovsky, Glinka, Rachmaninoff and other composers whose pieces were heard during the life of Chekhov. Contests are held for readers recit- ing Chekhov’s books. On the chamber stage Chekhov’s plays are staged, and not just the one act miniatures. Moscow theatre Amphitryon promises to stage Chek- hov's famous "The Seagull” in the house. Natasha Re- imer from New Orleans brought her performance here, called “I Shake Your Hand" — a fantasy on the theme of the relationship between Chekhov and Olga Knip- per, an actress and later his wife. It is difficult to imag- ine how a small room, which normally seats up to 50 people, can sometimes go up to 80, but the museum staff say that this is exactly what the actors, directors, and audiences are looking for — to be surrounded by an aura of Chekhov.

The topic of Moscow occupies a special place in the museum. And not only in the rare photographs from he needed to live in Moscow. And one day, looking at Chekhov's time, but also in Chekhov's special attitude the city from the top point on the Sparrow Hills, he told to this great city. Today, unfortunately, you can often one of his friends: "One who wants to understand Rus- hear the paradoxical phrase which is been worn into sia should come here and see Moscow." banality, that Moscow is not Russia. But this statement contradicts the perception of a great writer! Even be- This summer, in July, exactly 110 years after Chekhov’s ing terminally ill and forced to reside in a soft, gentle death, his many fans gathered again in this house, to climate of the Crimea, against all the advice of doctors honour the memory of the great Russian whose talent he sought to return to the cold and slush, insisting that has become global. ■

The shackling of Sofia Blustein (“Sonka – Golden Hand”). Photo from A.P. Chekhov’s collection.

January-March 2015 CAPITAL IDEAS 71 QUALITY TIME Russian winter – a time to celebrate! The middle of winter is a favorite time of the year for Russians, because there are a ton of holidays to celebrate. The four main winter holiday events are New Year, Christmas, Epiphany and Maslenitsa. All of them take place during the year, and the last one – Maslenitsa – marks the end of winter and concludes the string of holidays with a bright, week-long celebration. New Year In Russia, the New Year traditionally started in March or right after Easter. In 1492, Ivan III approved the decision of the Moscow Synod to begin the New Year on September 1st. Moreover, up to 1700, the Russian calendar was dated “since the creation of the world.” When Russia began to establish ties with Europe, Pe- ter the Great eliminated this difference and issued an order that moved the New Year date to January 1st. The order is dated December 15th, 1699 (or 7,207 “since the world was created”).

Peter the Great also mandated that all noble households put decorated Christmas trees outside of their homes; everyone else was ordered to decorate their homes with fir tree branches. The decorations were to stay up until January 7th. On January 1st, Peter the Great organized a “fire festival” and even launched the first rocket himself. Others shot from small cannons and guns in front of their homes. The holiday was a week full of carnivals, masquerade tricks, sledding, dancing around the Christmas tree and food. The tradition of decorating the Christmas tree at home was exported to Russia from Germa- ny in 1855. Everyone tried to kick off the New Year with a clean slate – people put on new clothes, set the table, paid off debts, and made up with family and neighbors. The tradition of giving presents to celebrate the New Year is very old. For our ances- tors, the New Year was sometimes a matchmaking event: young men would pick out women they wanted to marry and would then woo and cajole the girls and their relatives with gifts.

Everyone’s favorite New Year’s fairy tale character, Grandfather Frost, appeared in Russia as a cheerful old man with a bag full of presents in the second half of the 19th century. Before this, Frost was known to the Slavic people as the embodiment of natural forces and weath-

72 CAPITAL IDEAS January-March 2015 Russian winter – a time to celebrate!

er changes, which are not always friendly to people. blue coat, white valenki and a Boyar hat with a trim. He could reward a person for good behavior with gifts, Santa is stocky and has a short white beard, a red jack- or freeze him to death as punishment for bad deeds. et, boots and a red hat with a pompon. Moreover, the In 1840, Moroz Ivanovich became a character in V.F Russian Grandfather Frost comes in through the door Odoevsky’s collection of short stories called “Uncle Iri- and puts presents under the Christmas tree, while San- nei's Fairy Tales,” after which he gradually took on more ta comes in through the chimney and hides gifts in the friendly traits. He was primarily a Christmas character at stockings by the fireplace. Most importantly, though, first and was sent into exile along with all religious cel- is that both holiday characters try very hard to get the ebrations after the revolution. He returned in 1936, when right present and to deliver it in time. This is why both the government decided to relax its stance on religious of them were adored by children and adults alike 100 symbolism. In January 1937, Grandfather Frost sud- years ago, and are still adored by everyone today. denly showed up at the Moscow House of Unions with a granddaughter named Snegurochka. Legend has it Much like they did 300 years ago, Russians today set that a Soviet writer thought to make her Frost’s grand- the table for a holiday feast and gather the whole fam- daughter: prior to this, she was a character in a fairy tale ily together. Like in the olden days, there are fireworks. about a girl made out of snow by a childless family. Champagne, “olivie” salad, sparkling garlands and fire- work sparklers have also become a tradition. This is a Snegurochka is not the only difference between night where everybody remembers all the highlights Grandfather Frost and the western Santa Claus. Our from the previous year and makes wishes for the New Frost rides around on his sleigh with horses, while San- Year to the sounds of chimes. The New Year is the most ta’s sleigh is powered by reindeer. Unlike his European important holiday in Russia, when everyone remembers counterpart, Frost is tall and has a long grey beard, a family traditions and dream of a bright future ahead.

January-March 2015 CAPITAL IDEAS 73 QUALITY TIME Christmas Christmas – the country’s favorite Christian holiday A lot of Christmas traditions have survived to this day. – is celebrated in Russia on January 7th. People have Of course, every household celebrates Christmas with always tried to celebrate Christmas by cleansing their an elaborate and delicious dinner party. Some places, bodies and souls: they cleaned their houses, bathed, especially villages, have kept the tradition of caroling and put on fresh new clothes. Helping the needy and alive: on Christmas Eve, people in costumes walk from poor and giving presents to orphans, prisoners and house to house and sing Christmas carols for treats the homeless was also customary. and money.

The holiday dinner, which started as soon as the first Matchmaking, which traditionally took place from star appeared in the sky, was a significant event. Peo- January 7th to January 19th, is now a time for fortu- ple lit candles in front of icons and Christmas trees in netelling. For the most part, young women who want ceremonious silence. The dinner table had to have 12 to know when they will marry and what their children dishes – a holy number meant to symbolize the 12 days will look like go to fortunetellers for all kinds of ritu- after Christmas intended for matchmaking events. On als – there are ones to conjure up images of future these days, people usually came to neighbors’ houses husbands, predict wedding dates and measure future with prayers and songs; everyone went caroling and wealth. held masquerade events. Puppet plays that depicted biblical scenes such as the resurrection of Jesus and Giving family members and friends angel figurines, the hiding of baby Jesus were also common (later, cookies and other treats is also customary. other scenes became popular as well).

74 CAPITAL IDEAS January-March 2015 Epiphany Epiphany, or Theophany, is celebrated on January 19th. On this day, the Russian church conducts the Great Blessing of the Waters and people wait in line for hours outside of churches. On this day, any water that you bring to the Orthodox Church will be blessed with healing powers. This is why, in accordance with the old tradition that became popular in 988, many believers bathe in ice holes in spite of the cold weath- er. Bathing during this night is supposed to help heal all types of ailments.

Every year, each Russian city sets up several places where people can bathe, and there are dozens of people who aren’t scared off by the cold or the freezing water. In Moscow alone, hundreds of people bathe outdoors on this night.

The ice hole is made ahead of time, usually in the shape of a cross. After the priest blesses the water, people submerge themselves completely under water three times with the words “In the name of the Fa- ther, of the Son and of the Holy Spirit!” These events always have doctors and rescue workers on site.

January-March 2015 CAPITAL IDEAS 75 QUALITY TIME

izing a farewell to the winter months. The ashes were then sprinkled across the fields for a better harvest. Of course, the traditional Maslenitsa food is blini (Rus- Maslenitsa sian crepes), which are supposed to symbolize the sun. The blini were made in every way imaginable: According to popular tradition, Maslenitsa is the most thick and thin, with both savory and sweet fillings. cheerful national holiday. The holiday lasts a whole Today, blini with red caviar are the most popular and week, always from Monday to Sunday, but does not are considered to be traditional. However, caviar was have a set date. Maslenitsa takes place at the end of not a popular food until the mid-19th century – prior February/beginning of March. The tradition of cele- to this, it was considered to be “poor people food.” brating Maslenitsa dates back to centuries ago: the It wasn’t until the 1840s that caviar became popular holiday symbolizes the passing of winter and the among city residents, after doctors declared it to be a coming of spring. dietary delicacy.

To celebrate, people sled from snow-covered hills, Blinis weren’t just made at home for family and guests build fires and hold cheerful costume festivities. For – there were a staple of street food stands and holi- men, the most popular form of entertainment was day fairs. The stands typically had different types of to build snow forts and hold snowball battles. The goods, including treats. There were hot sbitnis (drinks main squares feature performances by circus artists, made from water, honey and spices), roasted nuts, buffoons and puppet theatre shows about a fun char- and honey cakes, along with tea from boiling samo- acter called Petrushka. Almost all Maslenitsa celebra- vars. tions had a bear show – trained bears that danced and amused the public. The last day after Maslenitsa is called “Forgiveness Sunday.” The holiday is over, and everyone asks each On the first day of Maslenitsa, people made an effigy other for forgiveness over past troubles and trans- of winter out of straw, dressing it in bright clothes gressions. Lent begins the day after, and lasts until and taking it around the village while singing songs. Easter – the main holiday of the Orthodox calendar On the last day, the effigy would be burned, symbol- held in celebration of Christ’s resurrection.

76 CAPITAL IDEAS January-March 2015 January-March 2015 CAPITAL IDEAS 77 QUALITY TIME Christmas tree: the nuances This year marks the 60th anniversary since the country's main Christmas tree in the Kremlin lit up the city center. For both Soviet and post-Soviet children, getting to see the Kremlin Christmas tree was of national décor always a real treat, even though each family had a festively decorated Christmas tree at home as well.

lthough the tradition of decorating churches and homes with fir branches for Christmas has been around for centuries, the appearance of the first Christ- mas tree in Europe only dates back to the Abeginning of the sixteenth century. According to historical records, the French town of Celeste was the first place to house a decorated Christmas tree in 1521. Contemporary Latvian historians, however, claim that the first Christmas tree in Europe appeared in the central square near the town hall in Riga in 1510.

Regardless of origins, however, the tradition of decorating the tree as a symbol of future good health and happiness was established in Germa- ny in the beginning of the seventeenth century. Back then, the Germans decorated not only fir trees, but also pine, cherry and beech trees. Un- like the ornaments we use today, the first decorations of the Middle Ages were edible treats. The Star of Bethlehem decorated the top of the tree, and apples, which symbolized the forbidden fruit, hung below it. Candy, pieces of sugar, and fruit hung further down the tree. Christmas ornaments as we know them today appeared in the middle of the seventeenth century in Germany. These ornaments were mostly painted fir cones, paper flowers and figures of angels and animals made out of wax or wool.

78 CAPITAL IDEAS January-March 2015 Christmas tree: the nuances of national décor

Glass apples Elki-Palki

The tradition of decorating Christmas trees with Russians started celebrating the New Year in the balls made out glass has a unique legend be- winter after Peter the Great issued an order to hind it – originally, the glass balls were meant change the date to December 31, 1699 – Janu- to symbolize apples. Story has it that there was ary 1, 1700 (Julian calendar). Prior to the change, a shortage of apples one year in Germany, and the New Year was celebrated on March 1st until people asked local glass blowers to help make 1492, and then on September 1st until 1699. Aside tree decorations to replace the apples. Since from changing the official date, Peter the Great then, glass balls have become a traditional also insisted on dictating how the New Year was Christmas tree ornament. to be celebrated. All Russians were ordered to celebrate for no less than seven days and to put The first such ornaments appeared in the town fir trees in front of their homes. Residents were of Lauscha in Germany. The balls were covered to light barrels of tar and launch rockets every with a special silver coating on the inside, which evening for the duration of the holiday. It is in- was originally made from mercury and lead and teresting to note that, three hundred year later, was then replaced with a silver nitrate solution. Peter the Great's order is still executed every Balls of different colors appeared later, along year. But, in the eighteenth century, the tradi- with balls coated in wax and colored varnish. The tion was nearly eradicated altogether after the first complex hand-made glass toys only started emperor died. For a long time afterward, deco- appearing on Christmas trees in the 1870s. rated Christmas trees could only be found outside of taverns throughout the whole year, and Until 1940, the town of Lauscha in Germany – were dubbed “elki-palki.” the birthplace of the world's first glass Christ- mas ornaments – retained the status of the world's glass Christmas ornament capital, even as enterprises sprung up all over the globe.

January-March 2015 CAPITAL IDEAS 79 QUALITY TIME

Tangerines, apples and candy The ornaments we are used to appeared in Russia in the middle of the nineteenth century, The trend of decorating Christmas trees with when the first ornament production factories toys sprung up in Russia again not that long ago were founded. For a long time, the majority of – it was during the rule of Nikolai I in the 1820s, Christmas ornaments were imported from Ger- who was married to the Prussian princess Char- many. lotte. At first, the main attribute of New Year celebrations was decorating a Christmas tree Today, we have almost forgotten the curious fact German-style, although only aristocratic house- that the ornament placed on the top of a Christ- holds followed the trend. mas tree – the spire – is meant to symbolize a German Kaiser helmet. The so called “Dresden Christmas trees only started to become popular cardboard” - ornaments glued together from among regular (although well-off) people after two halves of corrugated cardboard and deco- several decades. Christmas trees were fairly ex- rated with lithographic images – were particu- pensive back then, and were sold in candy stores larly popular in pre-revolutionary Russia. Card- instead of in large-scale fir tree markets. board angels with faces and outfits made out of wool, fabric or porcelain were no less popular. Much like in Germany, the first ornaments for Christmas trees were edible: tangerines, apples Everything changed in the beginning of WWI. and candy. The ornaments were originally in- Ornaments from Germany were considered un- tended as a New Years treat for children. Tradi- patriotic, and local ornament factories sprung tionally, the Christmas tree only appeared in the up all over Russia. Nonetheless, a lot of Russian living room for one night, and would be taken glass blowers were taught by German prisoners. outside the next morning so that children from poor households could eat the left over treats. Keeping pace with the times

Serious changes to the tradition of Christmas tree ornaments came after the revolution of 1917. It is well known that the first few years after the revolution were marked by a complete rejection of all “old regime” holidays. New Year's and Christmas were cancelled and were considered to be regular workdays. Moreover, guards were appointed to ensure that Russians did not

80 CAPITAL IDEAS January-March 2015 celebrate Christmas, which was one of the main WWII. Christmas ornaments were made from religious holidays of the Czar days. The ban on shoulder straps, bandages, socks and even shells. New Year celebrations did not last long, and the The occasional factory-produced toys were Soviet government made a decision to reinstate made from painted tin. the New Year holidays in 1935.

Interestingly, the decree's text drew direct par- Khrushchev’s corn allels with the pre-revolutionary era, when bourgeois children visited holiday Christmas tree After the war, Christmas ornaments became gatherings that other children did not have ac- markedly different. In the beginning of the 1950s, cess to. It was decided that the injustice could be ornaments that resembled fruit, berries and fixed, and ornament factories became agitprop sweets became really popular. Soviet people also affiliates. The Star of Bethlehem was replaced enjoyed garlands made of different colored flags with the Soviet star, and biblical figures gave with drawings on them. way to Red Army soldiers, tanks and armored cars. In 1949, when the country was celebrating the 150th birthday of Alexander Pushkin, a new se- The revolutionary undertones of the 1930s gave ries of Christmas tree ornaments that depicted rise to heroes and protagonists of famous Rus- scenes from the poet's greatest works was re- sian fairy tales and popular children's books: Ivan leased. Featured fairy tales included “The Golden Tsarevich, Little Red Riding Hood, Cat in Boots, Chicken,” “Ruslan and Lyudmila” and “The Tale Aladdin, Old Man Hottabitch, and Doctor Aibolit. of the Fish and the Fisherman.” In the 50s and Films also had a lot of influence on Christmas or- 60s, ornaments attached to clothespins became naments – the popularity of the film “The Circus,” quite popular, along with glass beads and ab- for example, explains a boom in circus-themed stract ornaments which looked like tiny beads ornaments. The pre-war political climate in the and pipes held together by strings or wires. country was marked by toy airplanes and ships, while the war in Spain gave rise to the appearance of ornaments that depicted entire battle scenes.

If during the pre-war era, glass, cotton, cardboard, papier-mâché and wire served as the main materials for the production of ornaments, any and all materials became fair play during

January-March 2015 CAPITAL IDEAS 81 QUALITY TIME

When Nikita Khrushchev was the Premier of Cheburashka and Crocodile Gena, Umka and the Soviet Union, agriculture-themed orna- Winnie-the-Pooh. In the 80s and 90s, electric ments, especially corn-themed ornaments, be- garlands that had previously been difficult to came a big hit. Then, the country's focus shifted obtain became a huge hit. Nonetheless, the 90s to space-themed ornaments. Christmas trees were perhaps the most boring period in terms of were decorated with space ships, satellites, as- holiday ornaments. In spite of the fact that ar- tronauts and even miniature moon walkers. tificial trees became widely available, creativity in ornament production came to a screeching Unfortunately, there wasn't much creativity halt. The European trend of decorating Christ- when it came to holiday ornaments after this mas trees with plastic, two-toned balls became period. Ornaments that were manufactured af- fashionable. So far as toys go, the most creative ter 1966 aren't valued by collectors and really are decorations were ornaments designed in the a lot simpler in terms of style and execution than shape of Chinese calendar animals. Thus, the their predecessors. Westernization of New Year celebrations nearly destroyed local creativity and the festive atmo- Cheburashka and Crocodile Gena sphere of the Slavic holiday. Fortunately, in the beginning of this century, However, the lack of creativity was quickly com- traditional Russian Christmas ornaments have pensated for by the appearance of new manu- made a comeback. There are now ornaments facturing technologies. Balls that looked like with Russian landscapes and even with national they were covered in snow and glow-in-the- symbols. It comes as no surprise that the city dark ornaments became popular. In the begin- of Klin, which housed the first Russian holiday ning of the 70s, trees were decorated with ma- ornament factory, has opened a Museum of treshkas in headscarves and see-through balls Christmas tournaments that is particularly pop- with floating fish on the inside. ular among tourists. ■

A line of toys molded after Soviet cartoon pro- For Capital Ideas courtesy of National Geographic So- tagonists was also quite popular: these included ciety, Russia

82 CAPITAL IDEAS January-March 2015 BEAUTY SPOT

January-March 2015 CAPITAL IDEAS 83 MOSCOW VOCABULARY

This section of the magazine – “Moscow Vocabulary” – was created in honor of Ronald Rea- gan, who appeared to be a fan – and collector – of Russian proverbs and sayings. We would like to guide you through the world of Russian idioms, which are just as bright and colorful.

САМИ С УСАМИ – sami s usami. (We too have a moustache of our own) English equivalent: We weren’t born yesterday

СМОТРЕТЬ В ОБА – smotret’ v oba. (To look through both) Explanation: To look attentively

СОБАКУ СЪЕЛ на чем-то – sobaku s’yel. (One has eaten the dog at someone) Explanation: One is an expert in something

СОРИТЬ ДЕНЬГАМИ – sorit’ den’gami. (To litter with money) Explanation: To spend a large sum of money recklessly

С ПЛЕЧ ДОЛОЙ – s plech doloy. (Off one’s shoulders) Explanation: One has got rid of duties Pictures by Anastasia Saifulina Pictures СТИРАТЬ ГРАНИ – stirat’ grani. (To grind off the edges) Explanation: To remove differences or distinctions

CТАВИТЬ НА ОДНУ ДОСКУ – stavit’ na odnu dosku. (To put someone on the same board with someone else) Explanation: To consider one person comparable with another

СО СКРИПОМ – so skripom. (With a creak) Explanation: To do something very slowly, with great difficulty

ТЯНУТЬ ЗА ЯЗЫК – t’anut’ za yazyk. (To pull someone by the tongue) Explanation: To make someone say something

УТЕРЕТЬ НОС – uteret nos. (To wipe someone’s nose) Explanation: To win an advantage over someone

ЧЕРНАЯ КОШКА ПРОБЕЖАЛА – chornaya koshka probezala. (A black cat has run between them) Explanation: There’s a coolness between them FACELIFE&CULTURE TO FACE Winter in Moscow: sensuality and openness When your windows have frosted up and there is a snowstorm outside, going for a walk in the park or the city center is not that pleasant. Winter is a great time to visit an art gallery, a concert or a theatre performance. You can discuss the event with your friends afterward in a cozy cafe over a cup of hot tea or glint wine. This is especially true for this winter – there is a lot going on in Moscow.

86 CAPITAL IDEAS January-March 2015 he Tretyakov Gallery on Lavrushinsky Pereulok is going to be hosting an exhibition called “Magic of the Body. Drawings fromT the XVIII-XX Centuries.” The exhibition will be on display until the middle of April. The artists Winter in Moscow: took special care in working on nude portraits of women – a lot of them are said to have had roman- tic relationships with the artists, so it’s not surprising that these works have always peaked the public’s interest. Of course, the majority sensuality of such rumors are most likely not true. Classes in “female nature” started being offered at the Mos- cow School of Painting, Sculpture and Architecture and the Imperial Academy of Arts in St. Petersburg and openness in 1893. The classes led to the production of more works that depicted nude models. The portraits presented at the exhibition will shock the visitors with the air of freedom, sensuality and openness, although the majority of them were created over 100 years ago. The works include paintings by V.A. Serov, K.S. Petrov-Vodkin, P.P. Konchalovsky, Z.E. Serebryakova and other well-known artists.

mong recent theatre premieres, the play “Ol- ympia” is worth not- ing. It was produced by the 35-year-old actor andA star of the TV series “Ottepel” (Snowbreak) Evgeniy Tsiganov at the Fomenko Workshop. The show is the debut for Petr Fomenko’s favorite student (Fomenko himself passed away 2 years ago). The play tells the story of the genera- tion that was born in the early 70’s in the Soviet Union – a period of so-called “Brezhnev stagnation.” It focuses on their dreams, victo- ries and losses. The play is neither revolutionary nor provocative, but the production clearly shows Fo- menko’s signature style- a subtle irony that marks all of his plays.

nother premiere may interest fans of Andrew Lloyd Webber’s musicals. “The Phantom of the A Opera” can now be seen January-March 2015 CAPITAL IDEAS 87 FACELIFE&CULTURE TO FACE

at Dvorets Molodezhi in Moscow. endary ballet, which premiered in light with the help of 3D graph- The musical is particularly note- St. Petersburg in 1892, sell out sev- ics. Project organizers promise to worthy because it has lasted the eral months before the show every combine theatre, circus and cho- longest of all Broadway musicals. year: it’s practically impossible to reography elements in the per- The premiere of “Phantom of the get them. Some lucky people get formance. The play will run from Opera” took place on Broadway in tickets as a Christmas present and January 1st to January 11th at the January 1988 and the show contin- have the pleasure of spending sev- Tchaikovsky Concert Hall. ues to run to this very day in the eral hours in the magical world of Majestic Theatre. Incidentally, Sa- Tchaikovsky’s music and the fan- n general, there is a wide se- rah Brightman played the female tastic characters from Hoffman’s lection of holiday shows for lead, Kristina, in London and New fairy tale. Children, in particular, children in Moscow. Special York. It should be interesting to really like this fairy tale. If you don’t New Year shows for chil- see if the Russian version of this get a chance to take your children dren called “Elki” (Christmas legendary show will be any match to this magical Bolshoi Theatre Trees)I run in different venues in to the Broadway original. performance, don’t worry: you Moscow before the New Year and can visit another version of “The during the first week of January. t the end of December, Nutcracker” – a musical perform- One of these shows, called “Save the Bolshoi Theatre will ance called “The Nutcracker, or the the Northern Lights,” will be taking be showing the famous Toy Rebellion on New Year’s Eve.” place at one of Moscow’s biggest ballet “The Nutcracker.” The idea behind the project is to swimming pools. This is what the A The tickets for this leg- present the classic work in a new three-time Olympic Champion in

88 CAPITAL IDEAS January-March 2015 synchronized swimming Marina Kiseleva said about the show: “This will be our fifth holiday show anniversary. We already did The Little Mermaid, Alice in Wonderland and Dreamlands. This time, our main characters will be penguins in the Antarctic. We’re going to treat our guests to an exciting story, original music, jumps with trampolines, appearances by synchronized swimming stars and breathtaking stunts by aquabike and flyboard champions.” The Estrada Theatre in Moscow will be showing a musical called “Snow Queen” based on the famous Hans Christian An- dersen fairy tale.

rue fans of ballet will have a chance to witness a very special performance. On December 30th, the famous ballet star from St.T Petersburg Ulyana Lopatkina will be performing in Moscow. The Mariinsky Theatre Prima ballerina will be presenting the “New Year Gala Ballet” at the International House of Music – a show that has almost become a tradition in Russia’s capital. Other Mariinsky and Bolshoi stars will be joining Lopatkina on stage as well, including classic choreography masters from ballets like “Sleeping Beauty,” “The Nutcracker,” “Don Quixote,” “Swan Lake” and others.

his winter has a lot to offer for those who like classical music. On De- cember 31st, the famous violist and conductor Yuri BashmetT will be performing at the Tchaikovsky Concert Hall. If this wasn’t what you had in mind for the New Year celebration but you would still like to see Bashmet play live, there is another option – he will be performing at the same venue on January 24th. Another Russian classical music star – the famous violinist and conductor Vladimir Spivakov – will also be treating his fans to a New Year’s Eve performance at the Interna- tional House of Music on Decem- ber 31st. Spivakov’s second concert will take place at the Tchaikovsky Concert Hall, where he will be

January-March 2015 CAPITAL IDEAS 89 FACELIFE&CULTURE TO FACE sian show business star gained a low of new fans after she started working with the composer Kon- stantin Meladze and lost over thir- ty kilos. She transformed herself from a full-figured brunette into a thin blonde starlet. The changes had a positive effect on the singer’s personal life as well: she married the famous Moscow photog- rapher Dmitry Ishakov just a few months ago.

n celebration of the 80th anniversary of the king of rock- n-roll Elvis Presley (he was born on January 8, 1935), the Moscow International House joined by talented pianist Nikolai minster Abbey organist for the ofI Music will be hosting a con- Lugansky, on January 29th. The past 30 years. cert by James Brown – a Presley program is based on Franz Schu- double. Brown, who was born in bert’s famous musical composi- ans of pop music will also Belfast, worked as a postal serv- tions. The musicians have already have several shows to ice employee for several years and given concerts dedicated to the choose from. In January, performed Elvis hits at bars and works of Beethoven and Brahms. Dmitry Malikov – the pop night clubs. Now, Brown is famous idol of the early 90’s and all over the world. “I am just and n January 29th, the Fthe prince of Russian show busi- imitator, not an interpreter,” he International House ness – will be celebrating his 45th maintains. of Music will be host- birthday. The singer decided to ing a real holiday for celebrate his birthday on stage and n February, Emir Kusturica fans of the organ. will be performing at Crocus City – the most famous Serbian OThe show will feature the famous Hall on January 29th. On February filmmaker and a prominent British concert organist Thomas 21st, the singer Polina Gagarina will figure in European cinema trotter, who has been the West- be giving a recital. This young Rus- I whose films “Underground,”

90 CAPITAL IDEAS January-March 2015 “Time of the Gypsies” and “Ari- zona Dream” helped the world explore the mysteries of the Gypsy soul – will be performing at the Kremlin Palace. Emir’s fans have known for a long time that the artist has been working on music projects. Kusturica will be performing with his band, No Smoking Orchestra, which was founded in 1980. The band’s musicians recorded to sound track to Kusturica’s film “Black Cat, White Cat.” Emir and his friends always surprise the audience with something new at every show.

he Kremlin Palace will also be hosting a the- matic show by one of Russia’s most famous fashion designers in cel- Tebration of International Women’s Day. Valentin Yudashkin puts on a show every year on March 8th as a special present to women – it has become a tradition. The show gathers the biggest stars of Russian show business, including Yudashkin’s biggest fan Alla Pu- gacheva.

n March 14th, the Kremlin Palace will be holding a concert by 68-year old singer Jose Carreras. Car- Oreras was diagnosed with leuke- mia in 1987 and doctors told him he had a one out of ten chance of surviving. Jose took a year-long break from his music career and managed to overcome his disease. Listening to him perform his opera arias live is a real pleasure.

n the middle of March, Cro- cus City Hall is hosting another legendary singer, who has sold over 60 million albums all over the world andI is highly respected in Russia – Demis Roussos. The singer is holding the concert to celebrate the 50th anniversary of his music career. Demis formed his first music group when he was just 17 years old. The singer will be performing his old hits along with new songs.

January-March 2015 CAPITAL IDEAS 91 FOOD&DRINK Seiji: Where taste

matters Can you get fresh tuna in Moscow? It’s hard to believe it, but yes! You can get it at Seiji, a Japanese restaurant on Komsomolsky Prospect. No need to worry about product quality: it is delivered to Moscow directly from the legendary Tsukiji fish market in Tokyo!

Nino Chanturia

ino Chanturia is a very brave woman – a real business woman. If she decides to do something, she will definitely follow through. Ten years ago, she decided to open a Japanese restaurant in the capital: Na restaurant unlike any other. “At the time, there were over 300 Japanese restaurants in Moscow,” Nino remembers, “so we didn’t want to open just another restaurant. From the very beginning, we decided that we had to be the best. I told my first chef, ‘Seiji, we have no room for mistakes!’”

92 CAPITAL IDEAS January-March 2015 Where taste matters FACEFOOD&DRINK TO FACE

Seiji-san knew exactly what Nino was talking about. He had a lot of experience working in Japan and Canada – places where he is still remembered as a master chef. 64-year-old Seiji Kusano is one of the unique Japanese chefs who can evaluate fish quality not only by sight and smell, but also by simply touching the product with his fingertips. This can’t be taught in cookbooks; it’s something you can only learn how to do after years of experience. “Seiji is like a violinist,” Nino says, “A violinist who has to feel the instrument before he starts playing. Of course we decided to name the restaurant after such a great chef. His name has practically become its own brand.”

Seiji tried a lot of fish, shrimp, calamari and other seafood in Moscow, but none of it lived up to his high standards. “Working with such products wouldn’t make any sense,” he says, “It means that you’re trick- ing your clients. The most important thing in cooking is using fresh, high-quality ingredients. This is why we decided to import everything from Japan. This is what Ms. Chanturia meant when she told me that we have no room for mistakes.”

94 CAPITAL IDEAS January-March 2015 “I was the first crazy person who started shipping fish, rice, ginger, wasabi and even sugar (to prepare special sauce) from Japan,” Nino says. The craziness turned out to be a genius decision. As the winner of the Nobel Prize in Physics Niels Bohr once said: “An idea has to be a bit crazy to be genius.”

As usual, it turned out the solution was a lot easier to think of than to implement in practice. It took a lot of effort to begin exporting products from Japan: the restaurant not only had to get special licenses, but open a separate logistics company. “It’s small and it’s exclusively for our restaurant,” Ms. Chanturia says, “We don’t have our own airplanes; we use Aeroflot. This is how the deliv- ery model looks: two times a week, when the Tsukiji fish market opens at five o’clock in the morning, our specialist picks out the products we need. He then drives them to the airport, where Aeroflot picks them up and delivers them to Moscow in special containers. We clear it with customs and take it to our restaurant. Aside from fresh seafood, we have also started importing marbled meat.”

It’s no wonder that Seiji became quite popular in Mos- cow as a restaurant that serves gourmet Japanese

January-March 2015 CAPITAL IDEAS 95 FACEFOOD&DRINK TO FACE

food. Two years after the restaurant opened, it be- chocolate cakes with ice cream made from Japa- came one of the top seven best Japanese restaurants nese liquor “Midori” and shrimp crème-brulee with in the world. raspberry sauce.

Everything in Seiji operates like clockwork: both “Of course, a lot of food connoisseurs come to our chefs and waiters. Everything is planned out by the restaurant, people who know a lot about food,” Nino minute. You will always be warmly greeted and says, “But even people who know nothing about food served well. The restaurant’s regular clients include will be able to tell the difference after just one bite.” prominent politicians, businessmen, popular actors After Seiji, Chanturia opened two other restaurants in and diplomats. There is something for everyone in Moscow – Misato and Kobe Steak House – as well Seiji: sushi rolls, sashimi, tempura, salads, pelmeni as the Japanese bar O2 Lounge located on the roof of with unique fillings, soups, hot dishes, grilled deli- Ritz-Carlton hotel, which has a phenomenal view of cacies, and, of course desert. The restaurant serves Red Square. ■

96 CAPITAL IDEAS January-March 2015