The Science of Today Is the Technology of Tomorrow Edward Teller

STRATEGIES FOR BUSINESS IN MOSCOW

The science of today is the technology of tomorrow Edward Teller

A PROPOS

Probably the most famous Moscow park among the tus of a technopark this summer. The area used to house international community is Gorky Park. This is because a plant for the assembly of Soviet televisions. Today, the the American writer Martin Cruz Smith wrote a detective area is used to manufacture touch screens and interac- novel called Gorky Park back in 1981 – a work that was tive systems that are based on Russian technology. made into a very popular film two years after it was first The first technopark was established in the capital in published. It comes as no surprise that the famous musi- 2007. ‘Strogino” is located on an area of 23,000 square cian Stas Namin named the English-speaking hard rock meters. There are a total of about 20 such parks in the city band he created in 1987 Gorky Park as well. as of today. By the end of 2016, the number of special- Gorky Park remains the main park for leisure and rec- ized territories (technoparks, technopolises and industrial reation in Moscow, but has very little in common with parks) will amount to 60. The total area for these parks the park that existed in its place over 30 years ago. Like will reach almost 670 ha, while the number of residents many things in Moscow, the park has undergone a trans- will amount to over 5,300 people and the number of formation – it is now truly a world-class park where emplyees working in the companies located in specialized tourists and locals can have a great time. zones will total over 40,000. Long-term employment is one of the most important components in the develop- But there are a lot of different kinds of parks that are be- ment of technoparks. Creating new jobs that are based coming popular in Moscow these days – technology parks, in modern industrial facilities is the main message the city for example, are multiplying in front of our very eyes. wants to get across to business today. The authorities are In trying to modernize the capital’s economy and imple- ready to provide tax breaks and take on non-commercial ment new innovative solutions, the Moscow Government risks in the establishment of new projects for those who has been paying special attention to the development are truly interested in working in this field. of technoparks as an integral component of the city’s Moscow technoparks are not the closed off areas that reindustrialization. After all, technological parks are used to be popular during the Soviet era. Technoparks are territories for the accelerated development of innova- open to both Russian and foreign business. So, ladies and tive projects across a single sphere (or several related gentlemen, have no fear – come and work with us! By spheres). One of the best examples of this is “Moskvich” the way, there will be a techopark Olympiad in Moscow (which acquired the status of a technopark in 2012). It in 2016 – the Conference for the International Associa- was established on the territory of the former automobile tion of Science Parks and Areas of Innovation (IASP). plant “Moskvich,” which was named after Lenin’s komsomol. There is obviously no room for Lenin or komsomol in today’s world, but we do have “Moskvich” – one of the Sergo Kukhianidze most large-scale and innovative platforms in the city. Another example is “Temp,” which only acquired the sta- Editor in Chief CAPITAL IDEAS Founder: Department for External Economic and International Relations of the Government of Moscow Address: Tverskaya, 13, Moscow, 125032. Ph: +7 (495) 633-68-66 Fax: +7 (495) 633-68-65 Moscow Official E-mail: [email protected] www.dvms.mos.ru Happy birthday, beloved city! Editorial staff: Moscow celebrated its birthday with colorful festivals, Editor-in-chief – Sergo Kukhianidze concerts featuring popular stars, televised performances, Production crew of the edition: Elena Egorova (deputy editor-in-chief), exhibitions, charity functions, mass festivities and a Tatyana Akimova, Gennady Charodeev, Vladimir Dolmatov, spectacular fireworks show! This time, the main theme Evgeny Khokhlov, Sergei Levin, Marina Ogorodnikova, Anastassia Paloni, of the event was “Triumphant Moscow.” Dmitry Sokolov, Anna Tomkins 6–11 CAPITAL IDEAS STRATEGIES FOR BUSINESS IN MOSCOW

Publisher: Moscow Center for International Cooperation 12–13 CEO: Igor Tkach Moscow Official Address: 105005, 68/8, build.1, Baumanskaya str., Moscow, Russia Phone: +7 (499) 267-46-56 E-mail: [email protected] New life for old streets Right before Moscow City Day, Mayor Sergey Sobyanin General Partner: National Review Ltd talked about the work that has been done to improve the CEO – Sergei Oposhnyanskiy streets in the city center. Phone.: +7 (495) 784-69-71 E-mail: [email protected] 14–19 Consulting – Sergei Anikanov, Evgeny Khokhlov Moscow Official Design – Robert Saifulin Photo editor – Victoriya Oposhnyanskaya Page layout – Alexander Saifulin NEWS Assistant – Nadezhda Ratanova We will complement each other Distribution – "Trans-Media" Ltd The official signing ceremony for the 2015-2017 Acknowledgements to: cooperation program between Moscow and Bangkok PHOTO – www.mos.ru, www.dvms.mos.ru, ITAR TASS Agency, RIA-Novosti, took place in the capital of Thailand on September 2. Getty Images Russia, companies and organizations, represented in the issue. Thailand on Kuznetsky Most If you wish to get new issues of Capital Ideas, please, apply to: [email protected] We have a lot to work on The magazine is registered with at the Federal Authority of Legislative Control in Mass Media and Days of Hanoi in Moscow 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’. Complete mutual understanding Distributed free of charge This year marks the 20-year anniversary of the Published with support from the Department for External Economic partnership between capitals of Russia and China and International Relations of the Government of Moscow

Circulation : 7000 Signed into print 05. 10. 2015 Nothing Ventured Face to Face Temp: from the school We respond to all desk to space challenges with These industrial buildings used to house the manufacturing facilities for Temp – Moscow Global new initiatives Soviet televisions that could not compete Maxim Reshetnikov, Minister of the with the world’s best brands on the free Conquer the Dragon Moscow Government and Head of the market. Today, the space has acquired the Department of Economic Policy and status of a technopark and will be used to together again Development, answered our questions manufacture touch screens and interactive Pierre Helg, the Swiss Ambassador answered in an interview with Capital Ideas systems based on Russian technology. questions from Capital Ideas 20–23 30–35 42–45

24–28 36–38 Face to Face Nothing Ventured Technoparks Otradnoye: – important In search of artificial components in the intelligence reindustrialization For several years, unique products have been under development at Otradonye, of Moscow including innovations in the field of What is a technopark and why does artificial intelligence. This summer, the Moscow need them? Oleg Bocharov, business center on Otradnaya Street Head of the Moscow Department obtained the status of a technopark. of Science, Industrial Policy and 39 Entrepreneurship answers this and other questions in an exclusive City’s graph interview with Capital Ideas. What do Moscovites live on? Profits for Moscow companies

40-41 Moscow in words

October-December 2015 CAPITAL IDEAS 3 Nothing Ventured You have to be prepared to use Travel innovative solutions Heinrich Steinhauer, head of the German Zaryadye: a ticket to Nothing Ventured regional bank Helaba in Moscow, the future remembers Russia in the 90s very well. He came to live in Russia right after the German towns voting Aside from technology parks, Moscow is also 1998 crisis and knows first-hand how against the sanctions actively developing recreational parks in the tough things were back then. Today, he is city. The most notable example is Zaryadye confident that Russia will find the strength Karlsruhe hosted the Conference of Russian and Park, which has already been dubbed “the to overcome all of the challenges ahead. German Sister Cities park of the future.” 46–48 54–57 64–71

50–53 58–61 72–75 Nothing Ventured Our interview Our interview Moscow is the place Head transplant? I don't Russia as a to achieve rapid see a problem, but... Western handmade growth He has performed over 1,400 surgeries, each scarecrow is one of them unique. Mr. Dan performs one of Construction and infrastructure the most difficult types of vascular surgery – he inconceivable for continue to be the primary drivers of operates on angiodysplasias. There are only economic growth in Moscow, but there a few clinics in the world that perform the a sober mind have been a lot of changes in these procedure: in Germany, the US and in Moscow, “What’s going on between Russia and sectors. The Swiss company Sika has where professor and MD Vasily Dan works at the West right now is an aberration taken advantage of this new trend. the A.V. Vishnevsky Institute of Surgery. – a deviation from the normal path of Sergey Zyuzya, General Manager of historical development,” said former Sika Russia, talks about all these in an Director of the Russian Foreign interview with Capital Ideas. Intelligence Service and First Deputy at the Russian Ministry of Foreign Affairs Vyacheslav Trubnikov in an exclusive interview with Capital Ideas.

4 CAPITAL IDEAS October-December 2015 Life&Culture This and That Go right – lose your We simulate situations MONEY: horse, go straight – Factoring in all the risks between capitalism find happiness... Autumn promises to be hot. This, of course, Foreigners in Russia don’t always consider the and communism does not mean the weather, but the cultural risks associated with the specifically local nature What is the attitude toward money in the events that are in store for Muscovites. The of business practice. But such risks exist, and West? Of course everybody is different, but theatre season is in full swing. So many opening may inflict serious damage on your business. the opinion of the general public can be nights! Singers and musiciansare in full combat Telling how foreign companies can sidestep some summarized with a famous saying: ‘Money readiness. Museums and exhibition halls have particularly Russian problems is Oleg Timofeev, Talks.” In Russia, people think differently about also prepared thoroughly. Serious struggle Managing Partner at the law firm Timofeev- money. Here, the vast majority of people think breaks out even for the youngest audience. Cherepnov-Kalashnikov. that Money is evil. 88–93 76–77 82–83

78–79 84–87 94–96 Moscow Vocabulary Life&Culture Food&Drink

80–81 Mosfilm – my love New Year's table: Between Past and Future and my life delicious, spectacular People’s Artist of Russia Karen Shakhnazarov & exciting! The incredible is a unique person in our film community. He is a film director, and every new film he The most beloved festivity in this country is journey of a frenchman makes becomes an important cultural and coming up soon- New Year’s Eve! Where do social event. we ring the New Year in, where to raise a to Muscovy toast under the chiming clock? The editorial Official relations between Russia and France team of Capital Ideas did your work for you were established in 1717, under Peter the and put together a selection of the best Great. In reality, though, cooperation between banquet halls in Moscow, where you’re the two countries started much earlier. guaranteed to have an excellent time! Few people know that Jean Sauvage, a sailor and merchant from Dieppe, visited Moscow in 1586.

October-December 2015 CAPITAL IDEAS 5 MOSCOW OFFICIAL Happy birthday, beloved city! The capital of Russia is 868 years old! “The most important gift for our city is the smiles and great mood of those who have gathered here today: your hearts, your love for Moscow,” said the Mayor of Moscow Sergey Sobyanin.

oscow celebrated its birthday with colorful of Moscow Sergey Sobyanin took part in the event, which was festivals, concerts featuring popular stars, dedicated to the 868th anniversary of Moscow. televised performances, exhibitions, charity functions, mass festivities and a spectacular “I sincerely wish Moscow success and prosperity. We are truly fireworks show! This time, the main theme proud of Moscow – one of the most beautiful, truly great cities Mof the event was “Triumphant Moscow.” in the world. Here, everything is tied to the most notable accomplishments in the country’s history – both past and pres- Moscow first celebrated this holiday on January 1st, 1847. ent achievements,” said Dmitry Medvedev. He also noted that Back then, the city was already 700 years old. There was the capital brings together the fates of different people. “Of a solemn church service at the Chudov Monastery and course, each one of us has our own Moscow, our own favorite prayers in other churches, church bells, and an eve- places. But from these very different boulevards, squares, and ning decorative illumination. The tradition was revived in 1997 and the day is now a high-profile event during which the city becomes submerged in a pleasant bustle. There are concerts, festivals, shows by street performers and much more!

The opening ceremony of Moscow City Day took place at noon on September 5th, at the Red Square. Over 7,500 were invited to take part in the festivities: honored residents of the capital, veterans, representatives from public and youth organizations, officials and 430 socially active citizens. Participants got to see a retrospective review of major events throughout the capital’s history. Russian Prime Minister Dmitry Medvedev and the Mayor

6 CAPITAL IDEAS October-December 2015 Happy birthday, beloved city!

Moscow kicked off the celebrations of the city’s 868th Anniversary with a grandiose event at the Red Square MOSCOW OFFICIAL

districts, from different people who live according to the same student population in the country and one of the largest in rhythm, the same breath – Moscow is made of these things,” the world. You have chosen your professions, you study hard Medvedev added. and will be replacing the older generation. I want to congratulate those who work – those who create the city we Sergey Sobyanin also congratulated the capital’s residents: live in with their talent, hard work and energy. I congratulate “Today, our city turns 868. I want to congratulate 12 million the veterans, labor veterans, war veterans – those who gave Muscovites. I want to congratulate our tiniest residents, us the gift of peace, our beloved Moscow.” the school children who started first grade this year and for whom life is just opening its doors to a wonderful world. I Sergey Sobyanin also addressed the residents of other regions want to congratulate the university students – the largest in Russia that are connected to Moscow through centuries of friendship. According to the Mayor, the capital has agreements of cooperation with just about every city. “The whole country and the regions have always helped Moscow: during the war

8 CAPITAL IDEAS October-December 2015 years and during the period of recovery, and today, when we The two-day celebration program included over 500 events, are met with challenges due to the international sanctions. The 300 concerts, 80 workshops and 247 tours that encompassed regions have done everything to make sure we have what we every district and every park in the area. The slogan for this need,” Sergey Sobyanin said. year’s celebration, “Triumphant Moscow,” was chosen because the city is also celebrating the 70th anniversary of Victory Day He also recalled that being the capital of a country is an hon- and 50 years since Moscow was first dubbed “Hero City.” The or that goes hand-in-hand with responsibility, which is why organizers worked hard to include events from the city’s mili- city authorities continue to work hard to develop the city. tary history in the program. The capital’s streets featured re- “Moscow continues to develop. We are building roads and productions of arches that were installed in Moscow from the interchanges, bridges and new transport interchange hubs, times of Peter the Great until the Soviet era. new schools and kindergartens, clinics and hospitals. We are building a better business environment. But we don’t plan on A total of 100 park territories were included in the program, as stopping there,” the Mayor said. well as 25 central, 31 district and 196 regional platforms.

The historical festival “Triumphant Moscow” took place on Tverskaya Street October-December 2015 CAPITAL IDEAS 9 MOSCOW OFFICIAL

8th International Military Music Festival “Spasskaya Tower” on the Red Square Tverskaya Street hosted the historical festival “Triumphant Mos- cow.” During the show, viewers got to see the major milestones of the city and the country as a whole. Sergey Sobyanin attended the event to talk to Muscovites one more time and congratu- Holiday in numbers: late them. The festival featured a recreation of a Preobrazhensky – Over 7,500 people were invited to the Regiment camp, a salon of fine art, the boudoir of Catherine the Great and a silent film pavilion. Guests had the chance to learn celebration on the Red Square: honored how to smelt bullets, fence, and create hairstyles with small ships and bouquets. There were also dishes and drinks popular in Rus- residents of the capital, veterans, sia during various epochs and much more. For one whole day, representatives from public and youth Tverskaya Street turned into a time machine.

organizations, officials and 430 socially The festival was like a massive installation dedicated to three centuries of Russian victories. The main street in the capital active citizens. featured eight reconstructed triumphal arches from different – Over 500 events were held, 300 concerts, time periods, starting from the rule of Peter the Great and ending with the Soviet era. 80 workshops and 247 tours, which took At Lubyanka Square, there was a grandiose concert in celebra- place in all 12 districts and all parks. tion of City Day. The stage, which was built to look like the main – Over 100 park territories took part in the building of Moscow State University, featured performances by Russian and foreign performers. The program included the holiday, as well as 25 central, 31 district most popular hits, as well as an hour and a half long finale by and 196 regional platforms. the iconic rock band Aerosmith. – The public transportation system in Sergey Sobyanin congratulated the residents and guests of the capital at the concert. “Today, there are people from all over the Moscow transported over 20 million people country in Moscow – from the Far East to Kaliningrad, from Sevastopol to Murmansk,” the Mayor highlighted. The streets during City Day celebrations. of the capital have also become a Russian history museum. “All – About 10 million people visited the holiday of our great accomplishments are embodied in the decorations and holidays shows. We are remembering the great history of events during City Day. Moscow and creating the present. We believe in the great future of our country,” Sergey Sobyanin said.

10 CAPITAL IDEAS October-December 2015 He recalled that people often give each other gifts during cow. “According to assessments by experts, specialists and au- holidays. And the most important gift is the good mood of dience members, the Moscow military orchestra festival was everybody who has come to celebrate the city-wide holi- the best one in the world,” Sergey Sobyanin added. day. “The construction workers gave Muscovites new roads, transport interchanges, clean streets and upgraded parks. One of the most large-scale cultural programs encompassed Thanks you! Today, 500 platforms all over Moscow are host- the entire Boulevard Ring in the capital. Over the course of two ing performers and musicians who are giving us their art and days, City Day celebrations within the scope of the “Creative their hearts on behalf of theatres and concert halls. Let’s say Moscow” program on city boulevards included concerts, open- thank you to them! The most important gift for our Moscow air events, dance lessons, plays, poetry readings, games and is the smiles, the good mood of those who have gathered contests. here today: your hearts, your love for Moscow,” the Moscow Mayor declared. The Gogol Boulevard became a platform for celebrating literature. Dancers gathered on Tverskoy Boulevard, which host- On September 5th, Sergey Sobyanin opened the 8th Interna- ed performances by professional collectives and workshops. tional Military Music Festival “Spasskaya Tower.” Folk ensembles put on shows on Sretensky Boulevard, and Chistoprudny Boulevard featured choral singing. Theatre per- “I want to congratulate you with this magnificent event that formances took place at Strastny Boulevard and Rozhdest- is beginning in Moscow today, with this unique international vensky Boulevard. Student theatres entertained the public on festival. Over the past eight years, participants from all over the Pokrovsky Boulevard, while children’s collectives performed world have been coming to Moscow to perform,” the Mayor of at Nikitsky Boulevard. Guests could find out more about ar- Moscow said. He added that the festival participants are giving chitectural styles at Yauzky Boulevard, which hosted open Muscovites their art along with the hearts. lectures.

The best Russian and foreign military orchestras and folk col- Neglinnaya Street hosted the 4th Theatre Festival “Bright Peo- lectives took part in Spasskaya Tower, and there were also ple.” The festival was dedicated to the Year of Literature in Rus- congratulatory speeches from honor guards of heads of states. sia and introduced 10 theatre premiers, a world premiere of the Representatives from Belgium, Japan, Greece, Ireland, Italy, Remue Menage theatre company (France), performances, art Spain, China, Pakistan, Kazakhstan and Belarus came to Mos- installations, workshops and carnivals. ■

The iconic rock band Aerosmith performed at Lubyanka Square October-December 2015 CAPITAL IDEAS 11 MOSCOW OFFICIAL New life for old streets Right before Moscow City Day, Mayor Sergey Sobyanin talked about the work that has been done to improve the streets in the city center.

“The facades have been renovated, lighting has been added and comfortable pedestrian spaces have been set up,” the Bolshaya Nikitskaya Street Mayor of Moscow said during his speech, “People will be able to take walks, sit in cafes and restaurants. The city center will be a comfortable space both for our residents, guests, tourists – anybody who loves our city.”

“Aside from the streets,” he added, “We have also cleaned up the squares that were adjacent to these streets, and the courtyards. We got a lot more than just streets – we cleaned up entire districts.”

The goal of these comprehensive improvements is to create a comfortable atmosphere for pedestrians, cyclists and cars, as well as to increase the aesthetic quality of the urban environment.

Triumfalnaya ploshchad (square) From 2011 to 2014, a total of 120 kilometers of pedestrian zones and routes were created, including in the city center. The implementation of the “Moya Ulitsya” (“My Street”) program was launched in May. 50 city streets that stretch over a total of 112 kilometers are included on the priority renovation list for this year. The list includes seven outbound highways (Varshavskoye, Kashirskoye, Lein- gradskoye, Yaroslavskoye, Mozhaiskoye, Shelkovskoye highways and Ryazanskiy Prospekt); or the extensions of outbound highways (Lyusinovskaya, Bolshaya Tul- skaya, Bolshaya Ordynka, Prospekt Mira, etc); or historically significant streets in Moscow (Bolshaya Nikitskaya, Malaya Nikitskaya, Spiridonovka, Bolshaya Bron- naya, Malaya Bronnaya, Myasnitskaya, Novodevichya Naberezhnaya, Triumphal- naya Square, etc.). ■ Nikolskaya Street 12 CAPITAL IDEAS October-December 2015 Pyatnitskaya street

October-December 2015 CAPITAL IDEAS 13 MOSCOW OFFICIAL

We will complement each other The official signing ceremony for the 2015-2017 cooperation program between Moscow and Bangkok took place in the capital of Thailand on September 2.

The document was signed by Sergey Cheremin, “The cooperation program stipulates that we will try Moscow Minister and the Head of the Department to use the most innovative methods developed by our for External Economic and International Rela- colleagues, integrate them into municipal manage- tions of Moscow and Deputy Governor of Bangkok ment in Moscow and use them when implementing Pusadee Tamthai. the city development strategy,” the Minister added.

The program entails cooperation in developing The agreement to put together the cooperation public transport and road and transport infrastruc- program was reached between Moscow Mayor Ser- ture, housing and utilities infrastructure, municipal gei Sobyanin and Bangkok Governor Sukhumphan infrastructure and environmental protection. The Boriphat during a Thai delegation visit to Moscow Russian and Thai capitals will also develop links in in December 2014. culture, cultural heritage preservation, sports and tourism. Friendly diplomatic ties have defined relations between Moscow and Bangkok since 1997. The next “Both metropolitan cities can complement each event within the scope of cooperation was the II other by exchanging best-practices and technolo- Thai Festival in Moscow, which was held on Sep- gies,” Sergey Cheremin said. tember 12-13, 2015 on Kuznetsky Most. ■ Thailand on Kuznetsky Most

In the midst of Indian summer, the Second Thai Festival took place in Moscow. The festival was organized by the Royal Thai Embassy in Russia, with support from the Moscow Department for Foreign Economic Activity and International Relations

During the opening of the festival, Itti Ditbanchong, capital to hold the festival – the pedestrian zone on the Ambassador of Thailand in Russia, noted that Kuznetsky Most. the holiday has become a symbol of constructive and friendly relations between Bangkok and Moscow. Mr. “I hope that our festival will encourage Muscovites Ditbanchong thanked the Moscow authorities for and other guests to visit Thailand, which has always their cooperation in organizing the event and prom- been considered one of the most attractive and inter- ised that the Thai food fair and presentation of tourist esting tourist destinations,” the minister said. programs will “demonstrate the best Thailand has to offer.” This year, guests of the festival had the chance to learn about one of the oldest and most beautiful The Minister of the Moscow Government and head Thai traditions – the Loi Krathong festival. It is cel- of the Moscow Department for Foreign Economic ebrated in Novemeber. During the festival, thou- Activity and International Relations Sergey Cher- sands of people send decorative baskets to float emin welcomed the representatives from Thailand down the river as a symbol of gratitude. Muscovites and guests of the festival on behalf of the city mayor gladly made krathongs and left them in the make- Sergey Sobyanin. He stressed that the city authorities shift pond right on Kuznetsky Most along with writ- have gladly provided one of the best locations in the ten wishes.

October-December 2015 CAPITAL IDEAS 15 MOSCOW OFFICIAL

The main stage of the festival hosted performances Thailand Club,” who are engaged in promoting popu- by masters of Thai folk dancing. Chefs prepared tra- lar tourist routes in Thailand. For Bangkok, inbound ditional Thai delicacies for food lovers and there were tourism has become the second most profitable after open Thai massage workshops. There was also a spe- China. Just Russia alone provides over 1 million tour- cial exhibition on the history and main tourist attrac- ists to Thai resorts every year. Our tourists spend an tions in the country. average of $150 per person every day (Germans spend just $50 per day). Still, the number of Russian tourists Moreover, the Tourism Authority of Thailand held Thai in Thailand fell by more than 40% in 2015 compared boxing matches at RayArena Moscow – Muay Thai to the previous year. The main reasons for this are featuring the Russian masters of this type of martial the difficult economic climate in Russia and the ruble art. The real sensation was the fact that eight Muay devaluation. European tourist volumes, however, also Thai superstars that had never competed together in went down in Thailand this year. the same place before took part in the competition. But Thai people aren’t giving up. Bangkok has re- As official representatives of Moscow and Bangkok cently rolled out a global campaign called “Discover governments noted, the two capitals achieved the Thainess” to promote the country’s resorts across most success with the implementation of the proj- global tourist markets. The Friends of Thailand Club ect “Thailand at the center of attention in Russia.” explains: Thainess is a new concept that the local Within the scope of this project, the first Thai festi- authorities are trying to promote. It entails a specific val in Moscow was held in 2014. Over 10,000 Musco- way of life that is characterized by the good will of the vites were in attendance. During the same time, the Thai people compounded by the cultural and natural Deputy Governor of Bangkok Phusadi Tamthay met specifics of South-East Asian countries. with the head of the Moscow Department for Foreign Economic Activity and International Relations Sergey A part of this global campaign encompasses Russia. Cheremin. The two sides agreed to hold the Days of The authorities in Bangkok feel that Russians should Bangkok in Moscow in 2015, and the Days of Moscow be making a conscious decision to come to Thailand in Bangkok in 2016. for vacation. The idea is that Russian citizens should have a clear understanding of what kind of events “Both cities can complement each other by exchang- will be happening in Pattaya or Phuket during their ing best practices and technologies,” Sergey Cheremin stay. Such events can include dance festivals or a says, “The cooperation program stipulates that we try Thai boxing championship or rock concerts that in- to use the most innovative methods developed by clude big international stars. Either way, Bangkok our Thai colleagues, integrate them into the munici- plans to expand advertising to draw in consumers, pal management system in Moscow and use them in especially in the public transportation system in implementing the city development strategy.” Moscow.

By the way, another feature of this Moscow festival This year, the Second Thai festival on Kuznetsky Most was the meeting between members of the “Friends of was visited by at least 15,000 Muscovites. ■ We have a lot to work on Days of Hanoi in Moscow

The Days of Hanoi in Moscow started with a meeting between the Minister of the Moscow Government, Head of the Moscow Department for External Economic and International Relations (DVMS) Sergey Cheremin and the Vietnamese delegation, headed by the Vice Chairman of Hanoi People’s Committee Vu Hong Khanh.

While answering questions from journalists, Sergey Cheremin noted we will put together a program for 2016-2018 in the near future. that trade turnover between Moscow and Vietnam may amount to In the beginning of next year, we will sign this program into ef- $5 billion in the future, given that the possibility of conducting trans- fect. It will encompass all relevant spheres of our cooperation, actions in national currencies has been discussed a great deal lately. from urban development to environmental issues,” Minister Trade turnover between Moscow and Vietnam amounted to $2 Cheremin noted. billion in 2014. “We think that this can be increased several-fold, given the rates of economic development our colleagues are post- According to the Vietnamese guest, tourism continues to be an ing today,” Minister Cheremin said. important area for the development of bilateral cooperation. Comfortable hotels, cultural facilities and recreation centers are The head of the Vietnamese delegation agreed that trade turn- being built for Russian tourists. “The most important thing is that over between Hanoi and Moscow is “quite modest” so far. Vu Russian tourists are happy,” Vu Hong Khanh says. Hong Khanh pointed out that this is precisely why the Viet- namese delegation came to Moscow. According to him, the free In turn, Sergey Cheremin clarified that about 300,000 Russian trade agreement Vietnam has signed with Europe can give a tourists from Russia visited Vietnam this year. The majority of serious push to increasing trade turnover. The Vietnamese can them were Muscovites. “I think that Vietnam can attract even now engage in barrier-free trade with EU countries, since cus- more Russians. We are also going to bring Vietnamese tourists to toms procedures have been simplified and administrative/trade Moscow and create all the conditions necessary for a great vaca- barriers have been minimized. tion,” the head of the DVMS promised.

“For Moscow, cooperating with Vietnam is very important, espe- Days of Hanoi in Moscow included an interesting cultural pro- cially during this economic crisis,” Cheremin said. gram that featured performances by Vietnamese artists. The capital’s guests and residents saw the puppet theatre on the water, a Moscow and Hanoi reached an agreement on cooperation and photo exhibition dedicated to the Vietnamese capital, and learned the development of a cooperation program. “We agreed that more about the history, culture and traditions of Vietnam. ■

October-December 2015 CAPITAL IDEAS 17 MOSCOW OFFICIAL

This year marks Complete mutual the 20-year anniversary of the partnership between understanding Moscow and Beijing A series of business, athletic and cultural events to celebrate this date took place in the capital with support from the Moscow Department for Foreign Economic Activity and International Relations (DVMS). The central location for the holiday was a forum titled “Prospects for the Development of Partner Relations Between the Government of Moscow and the People’s Government of Beijing.” The forum was attended by the Moscow Minister and head of the DVMS Sergey Cheremin and Wang Xiaohong, head of Beijing’s Public Security Bureau. The two officials discussed cooperation in the sphere of urban planning and development. “Last year, we signed the cooperation program be- “Close cooperation between our cities has prompted tween Moscow and Beijing,” Sergey Cheremin said, representatives from various public and business cir- “Our cities face similar tasks: urban planning and sus- cles to actively participate in trade, economic, scien- tainable development, ensuring a functional trans- tific and research exchanges, as well as exchanges on portation system, creating a comfortable atmosphere urban planning and development. All of this is mak- for city residents, environmental improvements and ing a contribution to the development of relations not much more.” only between the residents of our capitals, but also the peoples of our countries. We see even more room According to the minister, Moscow is actively holding for the development of our relations against the back- talks with major Chinese companies regarding their drop of this partnership,” the Chinese guest noted. participation in the city’s infrastructure projects, including urban construction, the renovation and con- Another interesting event took place before the cele- struction of transport interchange hubs, as well as brations in Gorky Park: the Vice-Mayor of Beijing Wang possible investments of Chinese companies into new- Xiaohong and the head of the Moscow Department of ly-developing areas in Moscow. Natural Resources and Environmental Protection An- ton Kulbachevsky opened a Chinese landscape corner Wang Xiaohong supported the statements made by and planted a pine tree – a symbolic “Tree of Friend- his Moscow colleague, pointing out that the two cit- ship.” Moscow dancers performed the “Dance of the ies have managed to reach a mutual understanding Lion” in honor of the Chinese guests, which is used in across a number of key issues over the past 20 years. China to attract good luck and prosperity. ■

October-December 2015 CAPITAL IDEAS 19 FACE TO FACE Maxim Reshetnikov: We respond to all challenges with new initiatives

Maxim Reshetnikov, Minister of the Mr. Reshetnikov, what is the business climate like in Moscow today: does it remain cloudy or are we Moscow Government and Head of seeing the occasional few rays of sunshine? the Department of Economic Policy You know – there are climates, and then there are and Development, answered our seasons (Smiles). I would try to separate the two. So far as the business climate is concerned, this has only questions in an exclusive interview been getting better in Moscow over the past few with Capital Ideas years. A lot of administrative procedures have been simplified. This does not mean that the requirements got any more lax. On the contrary, we have become more strict with advertising and sales – a lot of requirements have actually become stricter. At the same time, the important thing is that they have become uniform for all enterprises. Procedures across sphere such as investment, retail, power, construction and provision of land have become more simple and predictable. At the same time, the city has been working on reducing costs for businesses wherever possible. For example, the indexation of tariffs for businesses has not exceeded 5 percent for the past two years, while inflation during the same period amounted to about 18 percent.

In short, Moscow is still one of the most attractive places for investors in the country: there is a lot of money here, a big market, serious potential in terms of human resources. It is also obvious that this is not the best season for our economy.

Not the best time, to put it mildly…

Yes, and the business community is the first to take a hit – the drop in demand and interest rates is a big issue. These factors don’t have as much of an influence over the city budget, which remains fairly stable. Mos- cow programs are developing in spite of the fact that

20 CAPITAL IDEAS October-December 2015

FACE TO FACE we’re having not the best season. Our budget policies Technoparks and technopolises are the manifesta- allow us to have resources for further development. tions of these policies, which are geared toward cre- Even in today’s tough times, the city continues to ating long-term employment opportunities. In order build the metro, roads, railway infrastructure, public to attract investments to these spheres, we have infrastructure…we are implementing everything we made significant changes to the tax rates applicable had planned for. From the very beginning, there was to technoparks and technopolises. The city started an understanding that this will be a difficult situation, taking on non-commercial risks when starting new which is why we prepared ahead of time and took a projects. Plus, we are ready to invest in infrastructure lot of factors into consideration. for industrial sites. Today, Moscow is one of the best places for medium and long-term industrial projects. Not a lot of people know what the city has been dealing For the projects that meet strict environmental re- with serious restrictions for the past five years. The oil quirements and make rational user of the area in the revenues have shrunk and the accelerated depreciation city (because land is a resource that is always in defi- mechanism is in effect, which affects the budget greatly. cit here). Between 2011 and 2015, our revenues grew at a rate that was three times lower than inflation. We had to learn We are sending a clear message to business: the in- how to manage the current, capital expenditures, aban- dustrial areas that we have should not be turned don inefficient spending and increase productivity in the into residential areas. These are areas designated for public sector. Making all of these changes has served us production. Yes, there is the ZIL territory, which also quite well, and we are doing fine now. houses residential buildings. But overall, industrial areas need to be creating jobs and sticking to industrial When you talk about challenging times, what ex- production. On the one hand, we are giving tax breaks actly do you mean? What brought about the chal- and benefits to those who are investing and develop- lenges? ing. On the other hand, we will also give an economic push to those who don’t want to do anything, will First and foremost, of course, there are the external force them to make moves. factors – the sanctions, the drop in oil prices and the ruble devaluation. So how do foreign business people and investors feel in environments like this one? So the Western sanctions really affected Moscow? In my opinion, foreign business can be split up into It’s difficult to say exactly how much, but we have cer- two very different categories. There are those who tainly felt the effects. With launching new investment have been in the city for a long time and aren’t projects, for example. But the most unpleasant conse- shocked by anything that is happening. By the way, quence of all of this is the fact that loans have become unlike Russian investors, who are limited in terms of more expensive for business. We have lived through foreign loans, foreigners have a distinct advantage – a ruble devaluation already and will live through an- access to more sources of financing in the West. other one, but the restriction when it comes to access to credit is bad for the economy. The second category includes business people who want to work in Russia, but remain hesitant. A lot of foreigners So far as Moscow is concerned, the authorities aren’t are interested in entering the market here and see that delusional. The city is not waiting for the problems to there are great opportunities, but are at a loss when it resolve themselves. We are adapting to this new situa- comes to searching for partners. A lot of times they will tion, and there are advantages and disadvantages to it. say: “We are ready to come to Russia, but advise us on who we should work with.” We answer: “Don’t worry. At the end of 2013, we adopted an investment strat- Try it yourselves. Go to the technoparks, for example. egy. The main objective of this strategy is to increase You don’t have to build anything there. Bring the equip- competitive investment amounts. So what does this ment and turn the space into a production facility. Ev- mean? If we look at our largest investments – like in erything is already there – come and work!” housing and trade – these are usually investments that catch up to incomes and the standard of living in Yes, looking for partners seems to be the num- the capital. Of course this is important and necessary. ber one problem foreign business people worry But we also need to invest in modern technologies, about… in the IT sphere, in pharmaceuticals and medicine, in intelligent engineering – in spheres that create jobs. We are putting a lot of effort into creating the necessary infrastructure. We have established Moscow Сity You must be talking about the technoparks that Investment Agency. Last year, we launched a powerful seem to be springing up all over Moscow? investment portal in multiple languages. Visitors can find different opportunities there – we recently put Right. The city is going through a shift – we need up a lot of useful information about industrial sites, to create and support modern industrial production. and will be putting up information about technoparks

22 CAPITAL IDEAS October-December 2015 and technopolises. We urge investors, including for- The anticrisis plan went into effect in Moscow in eign investors, to invest in industrial development and February. Are you happy with the plan’s imple- create new industrial buildings – the city will help fill mentation so far? them with business. The anticrisis plan entails two packages of initiatives. We are always trying to create dialogue with busi- The first includes short-term measures geared to- ness. It is important for business people to talk to us ward stabilization. These measures went into effect openly about their ideas. We understand that, in the within the first four months. The second package long term, only companies that pay taxes and plans includes long-term strategic solutions. For example, on developing will be able to help the city economy. In the development of the tourism sector. Right now, short, I would urge business people to take an interest experts are saying that this year may be even better in the city – we are open to cooperation. than 2013 in terms of tourism.

Judging by what you’re telling me, the crisis hasn’t Of course, everything we’re doing doesn’t cancel out sent the Moscow authorities into a panic, right? the crisis. After all, the crisis will not be around forever. All of the steps we are taking now will create a Right. We try to address all challenges immediately. stronger economy for a new cycle. ■

October-December 2015 CAPITAL IDEAS 23 FACE TO FACE Oleg Bocharov: Technoparks – important components in the reindustrialization of Moscow

What is a technopark and why does Mr. Bocharov, could you talk briefly about what a modern Moscow technopark looks like? Does it have Moscow need them? Oleg Bocharov, anything in common with the famous “academic Head of the Moscow Department towns” that used to exist during the USSR?

of Science, Industrial Policy and Academic towns were large academic clusters. These spaces were used to address scientific challenges Entrepreneurship answers this and (sometimes across a number of areas, as was the case other questions in an exclusive with the famous Akademgorodok in Novosibirsk) and to implement large-scale projects that were relevant interview with Capital Ideas. to the USSR as a whole.

A technopark is a space that more closely mirrors a So- viet research institute. The space can be used to implement dozens of projects that aren’t necessarily related to each other.

In short, a technopark is a territory for the accelerated development of innovative business projects that fall within the scope of one or several related industries.

When, how and why did technoparks start to appear in Moscow?

Technoparks started to appear in the capital when the former economic model, which was in effect for almost a full quarter of a century, was no longer working. In the beginning of 2010’s, business representatives and the authorities started to understand that both the country and Moscow specifically is in need of a large-scale indus- trialization – the re-establishment of high-tech facilities

October-December 2015 CAPITAL IDEAS 25 FACE TO FACE

on the land that we have, with the use of the compe- as of January 2015). But we think that the system, as we tencies we have developed over the past few decades. approximately envision it, will be operating once there At first there were isolated technopark experiments by are 60 specialized territories in the capital. In our opin- enterprises, universities and state corporations. One of ion, this is the point where market demand and the po- these experiments was the establishment of the Stro- tential of the capital’s infrastructure will be in balance. gino technopark by the Moscow government in 2007. This should happen by the end of 2016 and we will have A few years later, we came to the conclusion that a to put in a lot of work in order to make it happen. But technopark system needs to serve as the foundation after we complete our development program, the to- for re-establishing our industrial potential and started tal area of specialized territories in the capital will ex- to create the necessary legislation for such a system. ceed 669.2 ha. There will be a total of 54 technoparks, 4 The first bill we worked on in this respect was regu- technopolises and 2 industrial parks. The total number lation 152 PP, which went into effect in April 2012. We of residents will amount to over 5,300 and over 40,000 recently made some amendments to it. There were a people will be working with these companies. lot of other bills being passed in related spheres that ended up working in our favor. For example, the land Can the technoparks in the capital be classified by market regulations we worked on in the second half their type of activity? What are some of the priority of 2014 helped increase the number of technoparks. In areas and why? 2015, it became clear that it makes the most sense for Moscow industrial zones to be engaged in manufac- There are separate areas of activity that are largely turing. The same can be said about tariff policies. determined by a particular territory’s history. TEMP, for example, which only recently obtained the official One of the best examples is Technopolis Moscow, status of a technopark, used to be a radio manufac- which is established on the territory of the former turing plant that used to produce TEMP television sets. Moskvich Car Factory. The space secured its technopo- Now it’s one of the leaders on the electronics market. lis status in 2012 and is currently one of the largest in- It produces computer technology, software, switch- novative and high-tech platforms in the city. gear equipment, microelectronics, medical equipment and supplies, sensor technology, polymers and more. This year, nine more thechnoparks and one technopolis There are a lot of rare products as well – transparent (Skolkovo) will be added to the list. I’m certain that this touch screen monitors, for example, which we usually is just the beginning. encounter in sci-fi films, not in real life.

How many of them does the city have today? Is there A special feature of Technopolis Moscow is the way a development program and what does it entail? the infrastructure is divided up into clusters. All of the plants located in the Technopolis are separated into There are currently 17 specialized territories operating several clusters: advanced materials and nanotechnol- in Moscow (this is taking into account the fact that ogy; medical technology, equipment and biopharma; there were just 7-15 technoparks and 2 technopolises microelectronics, optics, robotics and industrial auto-

26 CAPITAL IDEAS October-December 2015 mation; information and communication technologies; For example, the experience of a large industrial city other high-tech manufacturing.The concentration of with good higher technical education and a great companies that work in the same industry on sitehas a number of scientific research organizations that synergistic effect and attracts new participants to the has started to convert these resources into business technopolis. over the past two-three decades is highly relevant to Moscow. In this case, Beijing is a very good com- Some sites also have so-called “cleanrooms,” which parison. The Zhong Guan Cun is a large center that are spaces with low levels of environmental pollutants converts scientific knowledge into products across in the air and on surfaces. These rooms are ideal for all kinds of industries – it’s more of a system of tech- medical, biotech and electronic industries. For exam- noparks than a single technopark, actually. There are ple, there are over 7,000 square meters of cleanroom other similar facilities. The capital of China has not space in Technopolis Moscow. only become a leader in new industries – electronics, telecommunications equipment and pharmaceu- These rooms also exist in the technoparks ELMA and ticals (Beijing manufactures about 30% of drugs on Temp. Strogino technopark has unique conditions for the PRC market) – but also to preserve the efficiency the development of biotechnology. The newest medi- of old industries by modernizing them. Our re-indus- cal and pharmaceutical technologies are in the process trialization program has similar objectives, which is of development at Strogino, TechnoSpark, Slava, Na- where the similarity lies. gatino and Vizbas. IT technologies are present across many of our innovative platforms. The majority of The difference between our facilities and foreign tech- technoparks bring together various tech companies. noparks is that this is a new field for us, and we are just The fact that these companies are located in close now approaching the peak of its growth. This is why it proximity to each other, as well as the localization of is crucial to establish the correct parameters that will the component base, sometimes results in new collab- help our technoparks become hubs of growth for Mos- orations. The city prioritizes innovative companies that cow’s new industrial economy and centers of compe- entail a great deal of intellectual labor and employs the tence in the industrial cluster. Moreover, technoparks latest scientific solutions. should begin creating new jobs as well.

Are our technoparks any different than foreign Have there been any ties established between Mos- technoparks? If so, what are the main differences? cow and foreign technoparks?

Our technoparks are established in order to convert Yes, a number of specialized territories have been the competencies we have developed over the past maintaining contact with foreign technoparks since few decades into efficient business projects. That they were first established. The Skolkovo technopo- said,foreign experience was taken into account when lis cooperates with the MIT technopark, the Zurich the capital’s technoparks were initially created. Many technopark and others – the team has visited over solutions are effective and applicable to us – it would 50 technological parks across 20 different countries. be a mistake not to use them. Foreign delegations regularly visit the innovative in-

October-December 2015 CAPITAL IDEAS 27 FACE TO FACE

frastructure in Moscow. But the majority of the capi- cus Nano Electronics is supposed to be the first com- tal’s technoparks will be presented to our colleagues pany in the world to manufacture MRAM. In 2013, the in 2016, when Moscow is going to host the Olympics first stage of production, which entailed the application of technoparks – the conference for the International of magnetic layers, was launched. The total budget for Association of Science Parks and Areas of Innovation the project amounts to 11.8 billion rubles. RUSNANO’s (IASP). By the way, the torch hand-over ceremony took share in the project is 4,5 billion rubles. place at the end of September in that Chinese center, the Zhong Guan Cun. Another example is MAPPER – a joint venture between the Dutch company MAPPER Lithography and How attractive are Moscow technoparks to foreign RUSNANO. MAPPER Lithography has been develop- investors? ing electron-beam maskless lithography technology for over 10 years and the joint venture is now a A technopark that is ready to go can provide tens resident of Technopolis Moscow. Dutch lithnography of thousands of square meters to companies. Tech- machines are used to manufacture semiconductor nopark residents and tenants do not need to develop devices, integrated circuits and some superconduct- the necessary infrastructure, not to mention that the ing nanostructures. There are no companies similar city is prepared to assist foreign investors by provid- to MAPPER in Russia or abroad. The total budget for ing them with tax breaks and many other benefits. the project amounts to 13.2 billion rubles. RUSNANO’s For example, technopark residents are exempt from share in the project is 1.6 billion rubles. property tax and pay much lower land taxes (0.01%). Benefits also include lower income taxes payable to Also, at the last Hannover fair in April, Technopo- the Moscow budget (13.5%) and much more). lis Moscow and the Swiss company DEGA GROUP signed an agreement according to which Swiss de- For Moscow, cooperation with foreign partners is velopers will assist in the development of an Innopo- of tremendous importance. The city’s plans include lis industrial zone in the south-eastern district of the the development of advanced technology and the capital. The concept of placing high-tech industries high-tech industry, which will take place as the in- on the new territory, which is now under the man- dustrial component base is localized. Both foreign agement of Technopolis Moscow, will be one of the investments and technologies will be in demand as company’s first joint projects. The 20-hectare plat- well as very applicable. This is why Moscow is in- form will house manufacturing plants adapted to terested in attracting foreign companies that are a meet the needs of specific resident companies. DEGA part of a single technological chain with other en- GROUP’s main areas of activity include attracting terprises in the city. residents, developing concepts and business plans for industrial parks, conducting sales of land in exist- An example of a successful collaboration and joint ing industrial parks in Moscow and the Moscow re- investment is Crocus Nano Electronics. This is a joint gion, as well as attracting western residents to Rus- venture of CrocusTechnology (France-USA) and RUS- sian industrial parks (primarily to Moscow industrial NANO. Within the scope of the project at Technopolis parks), which is absolutely in the interests of the city. Moscow, the production of Magnetoresistive Random I am confident that we stand at the beginning of an Access Memory is to be launched in Russia with the use interesting journey and suggest that all potential in- of 90-65-45 nm parameters on 300 mm wafers. Cro- vestors come along on the journey with us. ■

28 CAPITAL IDEAS October-December 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 20 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 72 21 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) 587 70 87 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

October-December 2015 CAPITAL IDEAS 29 NOTHING VENTURED Temp: from the school desk to space

Vladimir KRIKUSHENKO – Chairman of the Expert Council of TEMP Managing Company and the Director General of Nex-T LLC TM NexTouch (the anchor resident company of the technopark) – and the Advisor to the Director General of TEMP Managing Company Valeriy MAKOVETSKY talk to us about what is happening with the space now. They both think that all of the key elements needed for the project to succeed are there: technology, interested customers, expected high return on investment and support from the Moscow government, which is committed to establishing multiple technoparks in the capital.

These industrial buildings used to house the manufacturing facilities for Temp – Soviet televisions that could not compete with the world’s best brands on the free market. Today, the space has acquired the status of a technopark and will be used to manufacture touch screens and interactive systems based on Russian technology.

30 CAPITAL IDEAS October-December 2015 Temp: from the school desk to space

V.M.: dustrial Policy and Entrepreneurship, spheres such as microelectronics, energy efficiency, energy conserva- We entered the process of establishing technoparks a tion, and medicine would be prioritized. bit late in the game, but the authorities were very receptive. In a short period of time – just two months – In the business plan that we put together, we stated we managed to get together all the documents we our intention to attract over 700 million rubles in in- needed for the meeting with the Interdepartmental vestment (about $12 million) during the first few years Commission, which was chaired by the Deputy Mayor of the park’s operation. Since the overall revenue for of Moscow Natalya Sergunina. the technopark should reach 9 billion rubles by 2024, the projected yield is pretty high: every ruble invested While we prepared for the competition, we looked will bring in over 10 rubles of profit over the course of into several areas of activity for the technopark. It was this period. The Interdepartmental Commission liked clear from the statements issued by Minister Maxim our program and we received the status of a Tech- Reshetnikov, Head of the Moscow Department for nopark Management Company. My colleague, who Economic Policy and Development and Oleg Bocha- represents a resident company of the technopark, will rov, Head of the Moscow Department of Science, In- tell you about what we plan on doing with it.

October-December 2015 CAPITAL IDEAS 31 NOTHING VENTURED

V.K.: search – it minimizes the number of times you have to touch the screen and saves time. This device is as We are developing touch and multi-touch technolo- easy to use as the iPad. gy, creating interactive systems and want to establish a full production and technology cycle, from design to We are going to start entering the market with inter- finished product. Our products include displays of var- active boards for school, which nobody makes in Rus- ious sizes and purposes, ranging from small interac- sia and we spend billions of rubles importing. More- tive board what are being used by students in schools over, we have developed special kinds of devices that and universities to demonstrations screens that can do not have any equivalents in the world – interactive be used across all spheres, including space. simulators for the audio and verbal development of deaf children. They are very effective and use a game These products, including the touch screen control format: the images that appear on the screen are ac- parts, are based on technology developed in Rus- companies by vibrations, while the sounds transmit- sia. We have a very ambitious objective: to take over ted over special headphones is adapted to the child’s the entire touch screen device segment. Of course, audiogram. The child learns how to correctly pro- we don’t plan on entering the sphere of mass pro- nounce sounds, syllables, words and gradually learns duction of mobile devices. We are talking about the how to speak clearly. part of the market that is related to the needs of the city and the country as a whole. Here, we are We expect a lot of orders for the interactive software- ready to compete even with American companies, hardware street systems that would be integrated not to mention Asian ones. For example, there are into the “Accessible Environment” and “Safe City” pro- payment terminals all over Moscow. For the most grams. We already have a successfully implemented part, these are single-touch screens, which is a bit pilot project in one region in Russia. We will be able outdated. We can offer multi-touch screens that to offer the same devices to Moscow. The systems can process tens, hundreds and even thousands of are installed at public transportation stops and give points of contact at the same time. For a user, this is users access to the portal of public services, allowing convenient in terms of making requests and doing a them to immediately get in touch with emergency

32 CAPITAL IDEAS October-December 2015 services, the police and the fire department. They also have free Wi-Fi and are adapted for people with disabilities – they can be easily accessed by wheel- chair users and are equipped with special software for people who are visually impaired. Unlike the devices Chinese manufacturers offer, which break easily and need to be replaced often, our interactive kiosks are equipped with anti-vandal protection and water-re- pellant glass. We use durable metal for the body, and we make the structural elements ourselves. V.M.:

Aside from laboratories, the technopark will house equipment that will let residents conduct key manufacturing operations, including metal processing, applying polymers to screens or protective coatings to electrical devices, and producing printed circuit boards. We will gradually increase the share of Rus- sian materials, parts, and components to eventually reach 100 percent localization. The emergence of related industries in Russia, like the first plant for the production of display matrices in the Moscow region, will help us attain this goal.

Together with Baumansky University graduates, we are working on manufacturing touch screens without the use of indium oxide – a very expensive product. We have received a grant from the Skolkovo Research Center and our resident company plans to patent the new technology – not just in Russia, but also in the US and Singapore. This innovation will allow us to significantly cut down on the cost of manufacturing touch screen devices. We plan on testing a commercial sample in February of next year, and then prepare for setting up mass production if the trial is successful.

The technopark will produce only small series, mostly for the needs of Moscow and possibly other Russian regions. The main plant will be located in Southeast Asia. A major international company that we plan on setting up a joint plant with has expressed serious interest in the product. V.K.:

Another promising area for our technopark is mas- tering the application of so-called quantum dots on the screens. This is the technology of the future that, according to forecasts made by market experts, will be in high demand in the next two years. We have already patented it – just a few months after Apple did the same thing. Of course, we don’t consider ourselves to be Apple’s competitor – it would be silly to try to compete with a global market leader. But we are looking at a different segment. Apple works with mobile devices, while we want to make screens that are over 30 inches.

October-December 2015 CAPITAL IDEAS 33 NOTHING VENTURED

The quantum point device market is expanding very so we spoke with Moscow directors to try to resolve rapidly on the global. With the technology that we the problem. We might make a list of products manu- have, and considering that there is a real demand in factured in Moscow and state institution will have to Russia, we will be able to increase sales numbers by look at this list before starting the tender procedure. 200 percent every year for the first three-four years. In turn, manufacturers seeking to sign offset agree- The sanctions and the jump in the exchange rate are ments will have to do a detailed market analysis. working in favor of Russian manufacturers. It’s true what they say – a crisis is a time for new opportuni- It is worth noting that government institutions in ties. When it comes to the TEMP technopark, this rule Moscow are a very demanding and competent cli- applies fully. The Moscow government provides resi- ent. The city keeps a register of unfair suppliers. Any dent enterprises with significant benefits, including misstep – like failure to meet deadlines, supplying subsidies on lease payments and credits for the pur- defective goods or services that don’t meet the re- chase of new equipment. Mayor of Moscow Sergey quirements outlined in the agreement – results in Sobyanin recommends that city organizations sign the company being included in this list for a period offset agreements with manufacturers. The idea is to of two years. During this period of time, the compa- have government organizations order products man- ny is barred from participating in tenders and loses ufactured on the capital’s territory. Thus, the money out on orders and a guaranteed volumes of work. spent will remain in Moscow and will work to boost Luckily, there are no such companies among TEMP the city economy. residents.

This instrument doesn’t discourage competition and The Moscow government’s decision to support the encourages new participants to enter the market. development of advanced technology has allowed us Up until now, those who prepared tenders for pur- to make significant gains in this sector, which used to chases put together technical specifications based in not be considered promising at all in terms of making a information that was easily available. Because of this, profit. Now we not only hear encouraging statements the majority of the time a foreign product that was from the government, but are seeing the first results. already popular – and not necessarily high-quality – There is a technopark that provides businesses with a would be selected. When it comes to interactive sys- better tax structure and other benefits. State institu- tems, we were focusing on the same Chinese com- tions intend to purchase the products manufactured pany. It essentially had a monopoly on the market, by companies located in these technoparks and these

34 CAPITAL IDEAS October-December 2015 aren’t small numbers – we are talking about hundreds mental requirements. So far as the equipment we plan of thousands, and even millions of units every month. on purchasing is concerned, all of it is manufactured in accordance with future European (and even the more Of course, we don’t just sell our products to state in- strict Japanese) environmental standards. stitutions. Not long ago, Nex-T LLC won a B2B tender for the supply of sensory monoblocks for a major We are currently wrapping up cosmetic renovations international telecommunications company (over the and should be installing additional equipment and a global leader Lenovo). At first, clients were skeptical common use center. We plan on inviting investors, in- of the fact that a Russian manufacturer nobody knew cluding foreign investors, with the understanding that about came out on top. But when the customer’s en- the TEMP technopark is focusing on the Russian mar- gineers saw that our company adapts our products ket. The residents who come to us with funds and in- to suit their requirements, they definitely felt the ad- vest these funds into the establishment of production vantages of working with us. Large companies are not facilities can be confident that there will be demand going to tweak their products for such small batches. for the products manufactured here. V.M.: V.K.:

The cost of leasing manufacturing and office space For us, it is better to work with one major investor is significantly lower than in other Moscow tech- than with a dozen of small investors. We hope that noparks. At the same time, our space has all the nec- we will not have any lack of offers. We were interest- essary infrastructure, including easy railway access ed in learning how US companies that produce similar and 7 hectares of territory (out of which 3 hectares are products are faring. Turns out they are growing rap- unoccupied) – companies can built their own facilities idly, doubling and tripling the value of their assets and here. Since the territory is within city limits, close to quickly reach market cap of a billion or more. This is residential areas, it is crucial for us to stick to envi- why we are ready to include an item for the option to ronmental safety requirements. There are wastewa- repurchase in our agreements with investors, in order ter treatment plants that are going to be modernized, to establish our obligation to redeem the investor’s after which we will easily meet all European environ- share, say, in five years. ■

What do Russian technoparks specialize in?

Machine manufacturing 10% 15% Energy efficiency and energy conservation

18% Innovative technology in manufacturing Information technology19%

Medical technology 5% 16% Instrumentation engineering

Biotechnology 16% 1% Space technology

Source: data from Mosgorstat, 2014

October-December 2015 CAPITAL IDEAS 35 NOTHING VENTURED Otradnoye: In search of artificial intelligence

For several years, unique products have been under development at Otradonye, including innovations in the field of artificial intelligence. This summer, the business center on Otradnaya Street obtained the status of a technopark.

“The Moscow Department of Science, Industrial Policy benefits for our residents – like lower property and and Entrepreneurship asked us to join the technopark income taxes.” program,” said Alexander Rubin, Chairman of the Board at Motek, “We soon found out that everything The Moscow government provides support to tech- we did for the development of Otradnoye falls in line nopark management organizations in the form of perfectly with the Moscow technological park devel- lower land tax rates for a period of ten years, as well as opment program.” exemptions from property tax for ten years and pref- erential rent payment rates for the use of land lots. The idea for developing technoparks in Moscow is based on the need to increase the competitive at- ABBY and Lighting Technologies are the anchor ten- tractiveness of the Russian capital in order to retain ants of the Otradnoye technopark – the two compa- professional staff. The fact is that the “brain drain” re- nies take up approximately 80% of the entire territory. mains a relevant problem in Russia. The most highly competitive sector on the labor market is currently the IT sphere. A qualified specialist, especially a qual- Note from Capital Ideas: ity IT specialist, will not have a difficult time find- Otradnoye technopark is located on Otradnaya ing work – and won’t even have to relocate to do so. Modern technology allows people to work from Street in the North-Eastern Administrative anywhere. Under such circumstances, the most important criteria when it comes to retaining profes- Okrug in Moscow. The total area of the sional staff is the quality of the work atmosphere that technopark is 3.4 hectares. 25,000 square meters employers are able to offer. The operators of technoparks are able to offer such conditions to their resi- of office space has already been commissioned, dent companies. and the number will increase to 50,000 square “Motek gets a series of tax breaks (land and property meters in 2016. Motek is the management taxes) from the Moscow government as the managing company of Otryadnoye technopark,” Alexander company of Otradnoye technopark. clarified, “and we can convert these tax breaks into

October-December 2015 CAPITAL IDEAS 37 NOTHING VENTURED

Moreover, they completely meet all of the criteria of ing companies operating in the IT sphere,” Alexander innovative and high-tech enterprises. The city govern- says, “First and foremost, such partners have high ment is interested in having companies like these oper- demands in terms of working conditions. They have ate in Moscow, since they generate a lot of tax revenue specific requests, especially in terms of premises and for the city budget. Tax payments made by Otradnoye communications. This is why we took all of these re- resident companies are expected to amount to 1.49 bil- quirements into account when erecting new buildings lion rubles for 2014-2024. at Otradnoye.”

“Our role as the management company entails more New economic realities, which is what a lot of people than just attracting residents and keeping them here,” call the crisis in Russia, means that businesses face Alexander notes, “so it’s good to have a broader per- new challenges. “Like many other companies, we are spective. Because our current potential residents are feeling the effects of the crisis,” says Alexander Ru- companies that operate on a global scale, they are bin, “But I think that it is important to concentrate on very interested in being the most competitive and at- the positive aspects, which definitely still exist. But tractive to qualified professionals. And they tend to the companies that want to continue operating in gravitate to places where they can get these benefits. Russia will be able to make it thanks to the practices This is why at Otradnoye, our main goal is to create they cultivated during the pre-crisis days. I’m talking the most favorable business climate possible.” about efficiency, productivity and the ability to work a lot. Our strategy has not changed during the cri- The management company has extensive develop- sis. Much like before, it entails putting our efforts into ment plans for Otadnoye. An athletic area (which will providing our partners and residents with the best turn into a skating rink in the winter) will be open services for the best possible price. Moreover, many to technopark residents, along with a free kinder- companies seek to optimize their expenses during a garten, fitness club and a special recreational zone crisis, which is why Otradnoye’s offer is even more that will also be used for presentations and meet- relevant today.” ings. There will also be an alley for walks and leisure, which will be modeled after the Boulevard Ring. The It would be a challenge to overestimate the signifi- total amount of investment in the development of cance of the technopark development program for the technopark over the next 10 years will amount to the city of Moscow. The city needs projects like these, 1.23 billion rubles. since they not only portray the Russian capital as a comfortable place to work, but also demonstrate all of “Over the course of the project’s development, we the advantages of working with state authorities and realized that Otradnoye will be focusing on attract- structures for modern business representatives. ■

38 CAPITAL IDEAS October-December 2015 SOURCE: data from Mosgorstat, 2014 CITY’S GRAPH What do Muscovites live on? Salary 47,8 %

Property Income 13,2 %

Social Security 12,2 %

Income from Entrepreneurship 5,7 %

Other Income 12,2 %

Profits for Moscow Companies

Real Estate Transactions 199,5 billion rub

Transport 63 billion rub

Communications 59 billion rub

Retail 35,8 billion rub

Construction 10,3 billion rub

Finance – 14,9 billion rub

Manufacturing – 53 billion rub

October-December 2015 CAPITAL IDEAS 39 MOSCOW IN WORDS

«Whatever a person may pray for, that person prays for a miracle. Every prayer comes down to this – Almighty God, grant that two times two not equal four.” Ivan Turgenev, Russian novelist, short story writer and playwright

“The darker the night, the brighter the stars.” Vasily Rozanov, Russian writer and philosopher

“What a fine weather today! Can’t choose whether to drink tea or to hang myself!” Anton Chekhov, Russian physician, playwright and author “You should never ask anyone for anything. Never – and especially from those who are more powerful than yourself.” Mikhail Bulgakov, Russian writer and playwright

“Life is a game with many rules but no referee. One learns how to play it more by watching it than by consulting any book, including the holy book. Small wonder, then, that so many play dirty, that so few win, that so many lose.” Joseph Brodsky, Russian poet and essayist

“People are craving this great progress in electronics, going after computers, the Internet, etc. It's a giant progress technologically. But they must have a balance of soul, a balance for human beauty. That means art has an important role.” Mstislav Rostropovich, Russian cellist and conductor

October-December 2015 CAPITAL IDEAS 41 MOSCOW GLOBAL

Pierre Helg: Conquer the Dragon together again

The Swiss Ambassador answered questions from Capital Ideas

The history of official relations between Russia and Switzerland began over 200 years ago. Today, our governments and capitals remain important political and economic partners. Moreover, in spite of tensions between Russia and the West, In your opinion, how are the relations between Moscow and the Cantons of Switzerland devel- Moscow and Bern constantly insist that oping today?

the potential for mutually beneficial Delegations from Switzerland have been coming to cooperation between our two countries is Moscow regularly over the past few years. The cantons of Geneva, Zurich, Vaud, Valais, Basel, Ticino enormous. and Lucerne have all successfully given presentations here. The majority of these presentations have resulted in the establishment of partnerships with the biggest megapolis in Russia, and these regions now work with Moscow across economic and cultural spheres.

42 CAPITAL IDEAS October-December 2015 Our cooperation intensified last year due to cele- tains in the form of the mythical creature. Legend brations of the 200-year anniversary of establish- has it that a long time ago Baselites conquered the ment of diplomatic ties between our two countries. dragon and were so proud that they made its image We had a fairly extensive program in the regions, the symbol of their city. Since the Moscow emblem but the main events took place in the Russian capi- illustrates a similar story – Saint George defeating tal, including events held with support from the the Dragon – the residents of Basel decided to pres- Moscow government. ent Muscovites with this unusual gift.

In September 2012, a Swiss decorative fountain in the In terms of big Swiss projects, I would highlight form of a basilisk (a dragon with a rooster’s head) the comfortable two-level KISS trains for Aeroex- started working in Bauman’s Garden in Moscow. The press, which we hope will soon start taking passen- city of Basel, which has sent representatives to Mos- gers from airports into Moscow. This is a landmark cow twice to give presentations, has about 30 foun- project – both for us and for the city. The Mayor of

October-December 2015 CAPITAL IDEAS 43 MOSCOW GLOBAL

intensify border control with European neighbors, to avoid confirming these rumors?

These suspicions and rumors were immediately dis- pelled. Our position is that nobody is allowed to use Switzerland to circumvent the sanctions imposed by the conflicting parties. In order to make sure this does not happen, we use statistical control mechanisms – we monitor the flow of products that pass through our bor- ders. If some suppliers suddenly increase volumes, the authorities may have questions for them. Swiss busi- nessmen understand that taking part in dubious transactions is not in their best interests.

In light of these geopolitical tensions, how is Swiss business cooperating with Moscow? Are Swiss entrepreneurs more cautious?

There are two categories of companies. There are giants like ABB, Nestle and Novartis (there are about 15 of them in Russia) – they have been operating on the Russian market since the Soviet era. They are certainly not going anywhere.

From talking to small and medium-size Swiss companies that operate in Russia and in Moscow (there are Moscow, Sergey Sobyanin, took part in the launch hundreds of them), we know that they continue to view of the project in fall of 2014. this market as the most promising in Europe – as a market that has a lot of potential over the next 30-40 years. There was a lot of confusion over Bern supposedly taking part in the sanctions against Russia. Swiss business is doing well in EU countries, by the way. Is Switzerland participating in the sanctions? But the potential of the European market is not unlim- ited. That’s what the Swiss think. I want to remind the readers that Switzerland does not belong to any unions, military alliances or political as- Of course, there are small business representatives who sociations. It is only a part of the United Nations. Our are just now starting to look into Russia. They are wait- position is determined by what international law labels ing and looking at the risks. They cannot afford to in- “neutrality.” In any case, Switzerland makes decisions vest their own funds into the Russian economy and not autonomously and independently – we don’t take the make any money for some period of time. The market political ambitions of the US, Canada or the EU into ac- conditions are not the best right now. count. Just our own interests. This is why we did not join the anti-Russian sanctions. But there are also lively, encouraging signals. Take the last three exhibitions in Moscow – Metalloobrabotka, It would not be accurate to say that we are neutral MAKS International Aviation and Space Salon, and the when it comes to Russia. Switzerland is neutral with International Fair of Railway Equipment and Technolo- respect to everyone. In other words, our neutrality gies EXPO 1520. All of them went really well for the applies to both Russia and the European Union. We Swiss. We had just as many Swiss companies across all do not give any preference to Moscow or to Brussels. of these platforms as we had in previous years, and the Of course, if there were a conflict between Australia number even increased for the railway exhibition. and New Zealand, it would be much easier for us to stick to our position of neutrality. When we are sur- It must also be noted that trade turnover between our rounded by neighbors who are all involved in this situ- countries has decreased by about 10-12% over the past ation, it’s a bit more difficult. year. Russia started importing less Swiss products – machinery, equipment and vehicles, food products and You are probably under fire from some media agricultural supplies. We attribute this decrease to the sources because Switzerland was supposedly be- ruble devaluation. The volumes of products that Russia ing used to re-export banned agricultural products has always exported to Switzerland – mineral products, from Europe to Russia? Perhaps it would be best to precious stones and metals – have remained the same.

44 CAPITAL IDEAS October-December 2015 People say that there are a lot less Russian tourists More than anything else, I am happy to see how in Switzerland now? quickly the city is changing. Of course, this is for the most part an accomplishment of the Moscow gov- We still have a lot of guests. Unfortunately, Rus- ernment, of the Mayor. Look at how many historical sian tourist volumes have decreased by an aver- mansions have been cleaned up and how many build- age of 10-12%. Again, this is due to the fact that the ings are being renovated! Swiss franc has strengthened lately and vacation- ing in Switzerland has become very expensive for I have seen a lot of cities that have parks, but Moscow Russians. But tourist volumes from other countries is the only city I’ve been to where you can walk along have decreased as well. the so-called green belt and not run into a single soul. You can completely leave the noisy and dusty city and In the heat of the crisis, there was a proposal submerge yourself in nature. Believe me when I tell in the Duma to cut down on chocolate imports. you, as a diplomat who has visited dozens of capitals Will we be able to continue enjoying this famous all over the world – Moscow is soon going to be one Swiss delicacy? of the most beautiful cities on the planet.

Yes, we heard that somebody proposed a ban on for- I like to just take strolls along the city streets on my eign sweets, including Swiss chocolate. But this didn’t way to work. I use the metro a lot: it’s faster and faze us. After all, the biggest supplier of chocolate – there is no need to look for a place to park. The only Nestle – has been in Russia for 150 years, and pro- problem is that traffic jams make it difficult to leave duces chocolate in Russia as well. the city on the weekends. But there is not much you can do about that – traffic jams are the bane of all So far there is nothing that threatens Swiss chocolate. big cities. Moscow will find a way to solve this prob- Moreover, we are doing a lot to promote it. In March, lem some day. Moscow hosted a prestigious international event called ‘Chocolate Salon.” Switzerland participated in the event I love the monasteries in Moscow. I think these are and will continue to attend these events in the future. most quiet and peaceful places in the city. I go to the Andronikov Monastery a lot – I like the muse- Mr. Ambassador, you have been living and working um that features Andrei Rublev’s icons. My soul is in Moscow for three and a half years already. You truly at peace in places like this. Sometimes I even undoubtedly have formed an opinion of the city. imagine myself as an inhabitant of such a peaceful Could you tell us about it? monastery. ■

October-December 2015 CAPITAL IDEAS 45 NOTHING VENTURED Heinrich Steinhauer: You have to be prepared to use innovative solutions

Heinrich Steinhauer, head of the German regional supermarkets and we had to wait in lines at different stores to get what we needed. I never understood how that system bank Helaba in Moscow, remembers Russia made any sense – I still don’t. But all of these problems are in in the 90s very well. He came to live in Russia the past now. right after the 1998 crisis and knows first-hand Russia is going through another crisis right now. Mr. Steinhauer, do you think this is worse than the crisis in 98? how tough things were back then. Today, he is confident that Russia will find the strength to It was a lot worse back then. Right now all of the macroeconom- ic indicators are on a completely different level. If you just look at overcome all of the challenges ahead. the gold and foreign currency reserves in Russia, at the amount of public debt – these are much better in Russia right now.

What other cities besides Moscow have you visited in Russia? Mr. Steinhauer, how long have you been living in Russia? I went on a lot of business trips all over Russia. I’ve been to a I first came to Russia in 1999 and started working in the banking lot of cities, from St. Petersburg to Vladivostok. And every city sector here, but I wasn’t with Helaba back then. My job was to I visited had something special about it, something that I re- conduct business restructuring with our Russian partners. membered for a long time. For example, I had an interesting experience in Novosibirsk. I went there in 2004 as part of a small When you were getting ready for your move to Russia, did delegation. Although this was in May, I knew that May in No- you have any expectations regarding what you would see vosibirsk is still pretty much winter. But when we came there, here? it all of a sudden got really hot - +37 degrees. It was amazing to see how quickly the snow melted! No, no specific expectations. This is a character trait of mine: I try to not expect anything so that I am not disappointed later. Is it easy for you to work with Russian colleagues? I moved to Russia with my entire family. Before the move, my wife and I came to Moscow for a couple of days to see if we Everybody is different, and a person’s qualities and their dignity would be comfortable here and be able to provide everything rarely depend on nationality. I’ve met a lot of different people we need for our children. We didn’t have a lot of requirements. while working in Russia. There are several important things to Family is important, and I didn’t want our move to Moscow to remember when working with Russians. On one hand, you de- affect the people closest to me in a negative way. We didn’t velop a relationship that is truly based on trust while working have any problems with school: there is a German embassy together, and in this sense cooperation is very productive. On the school, and we are very happy with it. Back then, it was the other hand, banking is a sphere that requires formalities and reg- little everyday things – like going to the store – that were the ulations – this can’t be neglected. Another thing is that Russian most difficult. I remember when Moscow still didn’t have any business people do not like to wait – they want results yesterday.

46 CAPITAL IDEAS October-December 2015

NOTHING VENTURED If you look at business processes, Germans (and in this case they conform to the stereotype) are very consistent, while Russians are more impulsive. When it comes to specifics and the differences between Russia and Germany, there are a lot of women in high-ranking positions in the banking sector here.

In your opinion, how is Helaba doing in Russia right now?

In the Russian Federation Helaba is primary focused on financing German exports to Russia. If you analyze the exports of Ger- man goods and services to Russia, it is obvious that there was a drop off in volume back in 2014 – a trend that has continued this year. The bank was affected by both politics and the economic climate in the country. The structure of German exports to Russia has always been very diversified and has not changed much overall.

What gives you reason to believe that there is potential for your bank in Russia?

The short-term forecast for operating on the Russian market isn’t very optimistic. But you have to use longer time spans to operate in Russia, in my opinion. This is because those who want to establish a business here have to think long-term. Right now it’s not yet clear whether the most challenging period of this crisis is behind us. It’s possible that the most difficult times are still ahead. We expect that there will be an increase in overdue payments in the banking sector. Right now, the country’s economy depends on factors such as the decrease in household incomes among the general population and a drop in energy prices. Recalling the crises of 1998 and 2008, which also shook up the country, I want to note that Russia overcame those challenges. This is why I am confident that the country will be able to overcome this as well.

What advice would you give to a foreigner who wants to live and work in Russia? Note from Capital Ideas LandesbankHessen-ThüringenGirozentrale (Helaba) I am confident that any person can adapt to a new atmosphere if they keep an open mind. Another important thing is to like has assets worth over 180 billion euros and is one of your job, and I can say that for me, working in Russia is very the largest banks of Frankfurt, Germany’s financial interesting. Although I haven’t changed the field I work in for many years, a lot of things around me change and I don’t get center. The organization employs over 6,300 people. bored. You have to not be afraid of changes, be ready for them The bank offers financial services to companies, banks, and be prepared to use innovative solutions. And regardless of where you work, you have to think critically about your ap- institutional investors and the public sector both in proach and your opinions because something that works well Germany and abroad. Aside from a representative in one environment might not work so well in others. office in Moscow, the bank has other representative People who don’t change their opinions or their approaches and offices and branches in New York, London, Paris, hope that the rules of the game will continue to apply forever can end up in a fiasco. A lot of times, a person’s greatest strength turns Dublin, Shanghai, Singapore and Madrid. Helaba also out to also be their greatest weakness. This is why a lot of suc- acts as the central institution and service provider cessful companies frequently end up in a trap: at some point they stop working hard, thinking that everything is already on point. In for almost half of all savings banks in Germany. this situation, people begin to function with no true understand- In the Russian Federation Helaba is primary focused ing of the market and market needs. This is one of the first red flags. It is really important for bankers to understand what di- on financing German exports to Russia. rection business is moving in, when the conditions are more favorable and where the risks are. In order to observe all of these processes, you have to be honest with yourself and impartial. ■

48 CAPITAL IDEAS October-December 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 E-mail: [email protected] http://www.tpprf.ru/en/

Department for Work with Foreign Legal Entities and their Representative Offices Ph: +7 (495) 620 02 62, 620 02 22 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]

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

October-December 2015 CAPITAL IDEAS 49 NOTHING VENTURED Sergey Zyuzya: Moscow is the place to achieve rapid growth

Construction and infrastructure The Moscow government, like the Federal authorities, is encouraging companies to do busi- continue to be the primary drivers of ness in Russia, claiming that there is a lot of po- economic growth in Moscow, but there tential here. Does Sika’s example confirm that this is true? have been a lot of changes in these sectors. Due to the sharp devaluation The twelve years of Sika’s successful and stable development in Russia serve as the best kind of confirma- of the ruble, imported materials are tion of the fact that foreign business can invest in the Russian economy without fear. In 2003, we opened becoming too expensive and are being the first branch of our international group in Russia. replaced with locally manufactured Seven years later, we have opened Sika’s head office in Russia, along with a plant in Lobnya, Moscow Oblast. equivalents. The Swiss company Sika Today, this is a manufacturing and testing center that has taken advantage of this trend. includes a plant for the production of chemical admixtures, research and testing laboratories, a training The company launched its own plant center and other Sika divisions in Russia. We are developing rapidly and plan on opening another plant in in Russia, thus increasing its market the Moscow Region this year. It will be specializing in share in a short period of time and manufacturing products that so far have no equivalents in Russia. This is all the information we can give maintaining high sales volumes. Sergey you right now. I will be able to talk more about specif- Zyuzya, General Manager of Sika ics after the plant is up and running.

Russia, talks about the company in an How is doing business in Russia different from interview with Capital Ideas. other locations in the world – both developed and developing markets?

The main difference is the enormous potential for development. In Europe, all markets are saturated and divided between experienced market participants

October-December 2015 CAPITAL IDEAS 51 NOTHING VENTURED

(Sika is one of them, obviously). Under these condi- The Russian division of Sika belongs to the medi- tions, it is difficult to maintain positive trends across um-size business segment. We do not receive any all economic indicators. In Russia, the market has benefits or tax breaks, but would gladly take advan- yet to mature – it is developing quickly, and you can tage of them if we had the opportunity. The most achieve significant growth in a market like this. important thing for us is not benefits, but stable and clear rules and regulations. It would be best if these Can you give us an estimate of Sika’s investments rules and regulations applied equally to all market in Russia, including in the Moscow Region? Are participants. these investments effective? What major Moscow projects has Sika partici- Our investments in the Russian economy over the pated in recently, and are there any new develop- past ten years have amounted to over 1.4 billion ru- ment plans put forth by the city of Moscow that bles, and about 80% have been concentrated in the caught your attention? central region. Because of these investments, the market share of the company grows every year. For We take part in many important projects all over Rus- example, our share in the concrete admixtures mar- sia, including the preparations for the Winter Olym- ket has grown from 1% in 2007 to 12-14% in 2014. pics in Sochi and the construction of the bridge to This was possible because we localized production Russky Island for the APEC Summit. If we focus on in Rzhev in 2009, in Lobnya in 2010 and in St. Pe- Moscow exclusively, we have supplied materials to tersburg in 2012. Our revenues in Russia amounted major facilities such as the sports and entertainment to 1.2 billion rubles in the first 6 months of 2015. The complex, the luxury residential complex Literator, Central Federal District posted the best results: 695 Skolkovo research center, the Park of Legends athletic million rubles, or 65% of total company sales vol- and entertainment quarter and new Moscow metro umes. In spite of the dip in the Russian economy stations. in 2015, sales volumes for waterproofing products, roofing materials and industrial floors have re- Has the ratio of materials and technologies im- mained stable, while sales of adhesives & sealants ported from abroad versus equivalents produced and concrete admixtures increased. The unstable domestically changed for Sika? atmosphere in the construction sector and the economy as a whole has motivated us to cut down Localizing production is currently a key focus in on transportation costs, import expenses and cre- the development of our business in Russia. There ating new jobs in Russia. are currently four plants in Russia, and we plan on opening another two. Localization has allowed us What category of business (small, medium-size) to significantly reduce import volumes, as well as does the Russian division of Sika belong to in optimize logistics costs. For example, the opening terms of transaction volumes and the number of of the concrete admixtures plant in Rzhev allowed personnel? Do you receive any benefits from the us to reduce import volumes in this category from Moscow Government? 100% to 30%.

52 CAPITAL IDEAS October-December 2015 In your opinion, how receptive are the construction sector, the transportation infrastructure and other economic sectors in Moscow to innovations – including those introduced by your company?

The construction sector is overall pretty conservative, but is still fairly receptive to new ideas. This is especially obvious if you look at architectural solutions. New architectural approaches require new technological solutions, which is where Sika is always ready to offer support. If we compare different regions of the country in terms of how conservative they are, then Mos- cow and St. Petersburg are undoubtedly the leaders when it comes to implementing new solutions. We are happy about this, since Sika puts a lot of stress on innovation – quality development and maintaining competitiveness are impossible without it. All of our R&D centers work exclusively on the development of innovative eco-friendly and energy-efficient materials and technology.

Across which segments is your business doing best in right now?

The most successful segment is the production of concrete, due to the fact that 98% of our admixture production has been localized. The transport infrastructure segment is also well developed thanks to tried and reliable solutions, as well as the localization of a number of materials.

Much like other major international companies, Sika pays close attention to company reputation, including by implementing environmental and educational programs. Is the Russian division of Sika involved in any such initiatives”?

Sika has always been a socially responsible company. Increased attention the environment and industrial safety is an integral part of Sika’s policies. Non-waste technology lies at the core of our enterprise. Efflu- ent from washing the equipment and air emissions go through a multiple-stage deep cleaning process, which eliminates any possibility of polluting the environment with chemicals.

In 2015, we held Sika Awards 2015 – a national innovative architecture contest for students that major in architecture, construction, design and attend other specialized schools all over Russia. The goal of the project was to promote bold architectural solutions that employ innovative technology in the construction chemicals field. Contest participants were asked to develop a project called “Bridges of the Future.” The contest turned out to be quite popular: we received applications from over 200 student teams from almost 50 cities in Russia. ■

October-December 2015 CAPITAL IDEAS 53 NOTHING VENTURED German towns voting against the Karlsruhe hosted the Conference of Russian sanctions and German Sister Cities

Aussichten und neue Wege der Zusammenarbeit Karlsruhe is a typical small town in Germany with cobbled streets, tiny houses and half- empty street cafes. There are no crowds of tourists here, no famous museums and art galleries. After dinner, even the local bars are almost completely empty. The locals like to joke that the last time anybody saw a Russian in Karlsruhe was when Napoleon was around. But suddenly, in the middle of the crisis in Ukraine, Karlsruhe saw an influx of Russians: a big Russian delegation participated in the 13th Conference of Russian and German Sister Cities. The conference was headed by Mikhail Shvydkoi, the Russian President's Special Representative for International Cultural Cooperation.

he main event at the forum In opening the meeting, Minister Cher- Sergey Cheremin reminded the partici- in Karlsruhe was the business emin noted that the Russian capital has pants that an economic forum was held roundtable “Moscow and Ger- been cooperating with many German during the Days of Berlin in Moscow. man Partners: potential and new cities for many years – Berlin, Düsseldorf, The forum included a cooperation incu- paths of cooperation.” The De- Leipzig, Frankfurt, Baden-Wuerttem- bator, as well as round tables dedicated partmentT for External Economic and In- berg, Bavaria and Hesse. Cooperation to the issues of economic development ternational Relations of Moscow (DVMS), takes place across areas such as social af- and municipal management. The heads headed by Sergey Cheremin, organized fairs, culture, exhibition activities, train- of two capitals signed a memorandum the event. ing municipal personnel, sports, tourism on friendship and cooperation. However, and youth exchanges. the Minister noted that our cooperation The discussion, which was covered by with Berlin is no longer as active and five leading German publications, was at- According to the head of the DVMS, the needs to be restored. tended by the Lord Mayor of Düsseldorf Days of Berlin, which were recently held Thomas Geisel, Mayor of Ingolstadt Al- in Moscow, are held as the standard: they The head of the DVMS highlighted re- bert Wittmann, head of the Department were dedicated to the 20th anniversary lations between Moscow and Düssel- of International Relations and Protocol of establishing partnership ties between dorf – one of our oldest partners. A new of Berlin Folker Pellet, as well as Deputy the capitals of Russia and Germany. The stage of bilateral relations started in Head of the Office of International Re- exciting program included concerts, film 1992, when the two partner cities signed lations of Leipzig Heiderose Hesske and screenings, exhibitions, seminars and var- an agreement on friendship and cooper- many other Russian and German high- ious events that allowed the residents of ation. It became the foundation for the ranking officials. the two capitals to exchange experience. exchange of best practices in municipal

October-December 2015 CAPITAL IDEAS 55 NOTHING VENTURED management, education and the development of an innovative climate.

The main principles behind the relations of the two cities are mutual economic benefit, practical use for separate spheres of communal services, as well as cooperation in the humanitarian and cultural spheres. One of the central formats for cooperation with Düssel- dorf is regularly holding the Days of the Economy. One of these events resulted in the establishment of Düsseldorf Park in Moscow. The Center of Education № 1423, in Marino, has been assigned pa- tronage over it and there is a development agreement between the center and a school in Düsseldorf.

Moscow-Bavaria is an area that requires special attention. Bavaria has been hosting Days of the Moscow Economy every year since 2011. Interest in cooperation is supported by many contracts signed after meetings and Russian capital this summer, stated emin introduced the German partners talks, as well as the diversity of spheres their desire to continue the dialogue to an interesting game project that he of cooperation. The same package in- with Moscow. believes will bring our cities closer. In cludes innovations and advanced tech- the near future, a page called “I want nology (including methods of their im- “During the talks that took place at Mos- to go to Moscow” will appear in a so- plementation in production), solutions cow City Hall, the Bavarian entrepreneurs cial network. The Moscow guest offered for transportation problems in big cit- expressed interest in developing the eco- to post a link to the page across official ies, medicine and medical equipment, nomic partnership with the city of Mos- websites in Germany. nano- and biotechnology, professional cow. Moreover, both small and medium- technical training, culture, sports and size business representatives from Bavaria “The idea,” Sergey Cheremin explained, youth exchange programs. said they were ready to keep investing in “is that any city resident, or somebody the Moscow economy,” the Minister re- from a partner city or region, will be able In spite of the slight decrease in activity lated to the round table participants. to leave a picture with comments on the from Bavarian partners, Minister Cher- topic ‘I want to go to Moscow.’ The per- emin continued, Moscow hopes for the The dialogue between representa- son who gets the most likes will receive resumption of Bavarian economic mis- tives of partner cities continued even souvenirs from us. We will also bring the sions. Representatives from the Bavar- when the round table was officially on winner of the contest to Moscow so they ian Economic Union, who visited the a break. Over a cup of tea, Sergey Cher- can enjoy the city’s hospitality.”

56 CAPITAL IDEAS October-December 2015 Oberburgermeister Thomas Geisel, who are a lot of businesspeople like this in increase public pressure on the Kremlin. is well-known to Muscovites, partici- Germany today, which is why they come Platzeck cited public opinion polls, which pated in the round table. In the spring, to Karlsruhe. illustrate that 89 percent of Russians he came to Moscow to give a speech at support President Vladimir Putin. a seminar for Russian entrepreneurs. His In the meantime, an intense discussion position remains the same: the capital of was taking place in Karlsruhe. Here are “These sanctions have had the opposite North Rhine-Westphalia, which he rep- the results. effect. This means that the measures resents, has become a center of gravity need to be adjusted or lifted,” Platzeck of sorts, drawing in enterprises operat- “The effect of the EU sanctions has had concluded. ing in the telecommunications sector. the opposite effect – not the one the Eu- It turns out that over 1,900 companies ropean community was expecting. They The discussion participants came to the from this sector established themselves need to be adjusted or lifted,” said Chair- unanimous conclusion that the sanctions in Düsseldorf a long time ago, and al- man of the German-Russian forum Mat- against Russia are not only challenging most all of them have a wide range of thias Platzeck. for Russia, Germany and all of Europe, international contacts. A lot of Russian but also serve to benefit third parties companies in the mobile technology According to the politicians, Western (such as the US and China) that come to sector also work in Düsseldorf, but Mr. sanctions have not only failed to end the the Russian market, taking advantage of Geisel wants to see more of them. There conflict in Ukraine, but have also failed to a drop in European trade volumes. ■

October-December 2015 CAPITAL IDEAS 57 OUR INTERVIEW Vasily Dan: Head transplant? I don't see a problem , but...

While talking to the professor, we case is different. Congenital malformations of the blood vessels or deformations are as difficult to treat touched on a sensational topic – the as tumors in neck vessels, which I also have a lot of upcoming head transplant surgery experience with. You can never be completely sure that the procedure will be successful after just one on a Russian patient that will be surgery. You usually have to operate two or three performed by Italian doctors. But the times, and sometimes even more. This is difficult for both the surgeon and the patient, who has to be conversation started with a more patient and not expect any miracles. practical question: why are there so What needs to be done in order to expand the few surgeons practicing in the field practice of treading such complicated illnesses – Professor Dan has chosen? equipment, new medicine, the establishment of specialized clinics? A lot of times, doctors opt out of operations like these because they are so difficult. If we compare them I don’t think there is any need for specialized clinics. to other types of vascular surgery (coronary artery At our institute, we successfully treat many types of bypass surgery, removal of plaques in the carotid illnesses and traumas. We do all types of operations on artery or aortic prosthesis, for example), it is clear that vessels, including the aorta, veins, arteries, and blood operating on angiodysplasia is a lot more complicated. vessels of the limbs. Our 50 years of experience has While other surgeries are completed in accordance shown that the large-scale medical research center with specific procedures, with angiodysplasia each has plenty of capabilities in this regard. We have the

58 CAPITAL IDEAS October-December 2015 He has performed over 1,400 surgeries, each one of them unique. Dan performs one of the most difficult types of vascular surgery – he operates on angiodysplasias. There are only a few clinics in the world that perform the procedure: in Germany, the US and in Moscow, where professor and MD Vasily Dan works at the A.V. Vishnevsky Institute of Surgery.

October-December 2015 CAPITAL IDEAS 59 OUR INTERVIEW

necessary equipment that is adapted to operations Do you agree with the popular opinion that our like these. We are always improving treatments. For clinics lag behind European or Israeli ones in example, we are successfully making progress in the terms of treatment quality? relatively new field of embolization. This entails using a special type of adhesive to clog blood vessels during I travel a lot, and in my experience I have not seen that we operations and prevent blood loss. lag behind in the field of vascular surgery. In some ways, we are even ahead of the curve. You know, when I talk So you don’t have any limitations, technical or to my colleagues, the point out something interesting: it otherwise? turns out there are more opportunities in Russia, since we are not limited by standards in the same way that Only financial. For the most part, we can only the West is. There, the surgeon does not have a right count on the funds we receive from the Ministry to deviate in any way from the established procedure. I of Health of the Russian Federation, which falls think that such restrictions are necessary less so because within the scope of the approved budget. Of course of medical concerns and more so because of certain legal there is not enough money for everything. So we and insurance aspects. Also, the trust we have in surgeons have to choose what we’re going to save money here entails a lot of responsibility. Russian surgeons can on: the maintenance of expensive scanners or rely more on our own experience and knowledge – we new instruments, materials for vascular prosthesis, can deviate from standards without violating the main medicine, and so on. principles so long as we take everything about the patient’s anatomy and overall health into account. Can the patient pay for the treatment? Why, in spite of all accomplishments, do we not Of course. Those who are capable of doing so can take have a better reputation in terms of healthcare? advantage of our commercial services. But the vast majority of our patients – 90% – do not have enough You can’t really blame the doctors themselves. The money. We cannot demand that these people pay for government’s image influences our reputation a lot – their own treatment. Patients who are well off prefer same as with other spheres. I remember how the world to go abroad. Of course, spending a lot of money does used to respect the USSR. They used to listen to us. Our not guarantee that you’re going to get the treatment experience was applied in the US, where doctors were you need. I can give you a lot of examples where particularly impressed with Soviet accomplishments I had to correct the mistakes made by our foreign in managing the healthcare system – the provision of colleagues. emergency care, for example, and setting up regular medical checkups for the general population. When we How do these mistakes happen? left the country to attend international congresses – and we did so regularly, back then – we were always at the Before treating a person, you have to understand center of attention. Now people look at us differently, what the illness is, what the condition the person’s although our specialists are no less qualified. I think that overall health is in and how his or her body will react politics can influence the way people think a lot. to a certain procedure or operation. Maybe there are other problems that need to be eliminated first, before Are you a fan of the Soviet system? the serious condition is treated. In other countries, a common scenario is that only the organ the patient The Soviet Union was a wonderful country. I am initially complained about will be treated. proud of the fact that I worked and lived in the USSR.

60 CAPITAL IDEAS October-December 2015 I was born abroad – in Zakarpattia in 1941, when this what will happen with the nervous system and how area was still a part of Romania (it is a part of Ukraine the spinal cord will react. The patient is taking a huge today). The area had a mixed population – Romanians, risk – I think he just doesn’t have much of a choice. Russians, Czechs, Hungarians and Germans. There was never any conflict between them. Can Russian doctors can impart their knowledge to others and get Russia’s reputation back in The Soviet system provided me with every opportunity the medical sphere? What should be done in this I needed to become the qualified professional I am respect, in your opinion? today. For twelve years, I worked as a surgeon in a remote area outside of Moscow and worked in the First of all, there need to be more articles in foreign emergency room, operating on people’s hearts, lungs, professional publications. People only read Russian treating compound fractures and brain injuries. This publications in Russia and maybe some in some was an invaluable experience for me and helped me in CIS countries. Right now, being featured in foreign my work with the A.V. Vishnevsky Institute of Surgery. publications is still a rarity for our specialists. We You asked about the reputation of our medical care. are trying to change this. I just had an article come Here are the facts: we have had patients come for out in the Italian journal Gazzetta Medica Italiana and treatment from many countries – Greece, Italy, I recently sent them another two articles. I plan Yugoslavia…I remember operating on a professor who on publishing my book, Angiodysplasia, in English. It was very ill. When he felt the results, he was amazed should be printed in Europe. So far as I know, there is and said that all major medical publications should be very little research in this sphere. I am confident that printing articles about our accomplishments so that our experience will be interesting and helpful to our the whole world knows about them. By the way, do foreign colleagues. you know where the first successful heart transplant took place? Second, we have to be more active in participating in international forums. But here, again, it comes down in South Africa… to money. These trips require funds, and sometimes we don’t even have enough money for the medicine In Moscow. At our institute, professor Vladimir we need. Demikhov performed the heart transplant, along with other types of transplants, on dogs. After this, Is it possible to attract funds outside the budget the famous doctor Barnard came to visit us several allocated by the Ministry of Health? From a major times in order to learn more about the transplant medical or business association, for example? procedure before he performed the operation on a human for the first time. Our institute has In pre-revolutionary Russia, there was a great and very extensive experience in transplants of various much needed tradition of charity. Wealthy people would organs for animals. We even have experience with build hospitals with their own money and maintained engraftment of a head on a dog. them. The most famous hospitals in Moscow actually started off that way. It would be great if wealthy people Do you think that the head transplant that will today took hospitals under their wing, establishing take place in Italy will go well? boards of trustees. It doesn’t take much to make this decision – realize that saving people’s lives and taking I really hope so. So far as connecting the vessels is care of their health is just as important and prestigious concerned, that can all be done. But we don’t know as sponsoring an athletic club or a theatre. ■

October-December 2015 CAPITAL IDEAS 61 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

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62 CAPITAL IDEAS October-December 2015 useful info

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October-December 2015 CAPITAL IDEAS 63 TRAVEL

64 CAPITAL IDEAS October-December 2015 Zaryadye: a ticket to the future

Aside from technology parks, Moscow is also actively developing recreational parks in the city. The most notable example is Zaryadye Park, which has already been dubbed “the park of the future.”

t would not be an exaggeration to say that the term “recreational park” has taken on a whole new meaning for Muscovites over the past few years. The city authorities and the residents themselves have done a great deal of work to make sure that the city’s green I zones with pedestrian walkways for afternoon strolls and platforms for cultural events turn into places of constant activity, drawing in visitors of all ages. But Zaryadye Park is a special case, however: the establishment of the new park is to become an exciting event for the city, the country and even the whole world. There are several reasons for this.

October-December 2015 CAPITAL IDEAS 65 TRAVEL opened on Varvarka. In the middle of the 18th century, this school was combined with another school nearby, and a new school near the Varvarskiye Gates of the Kitay-Gorod Wall opened its doors nearby. enius location In the 19th century, the Glebovskoye farmstead in Zaryadye was the only place where Jewish merchants Of course, public and professional at- were allowed to stop. Because of this, the entire area tention to Zaryadye Park can be explained, first and turned into a Jewish ghetto of sorts, and about two- Gforemost, by its location – a historical area in the cen- thirds of all Jews in Moscow lived in Zaryadye. ter of Moscow in the southern part of Kitay-Gorod between Varvarka and the Moscow River, which is In the middle of the 19th – early 20th centuries, Zary- adjacent to the Kremlin and the Red Square. The first adye turned into a slum – the back yard of the rich settlements appeared in the area in the 17th – 18th Kitay-Gorod, inhabited by small-time artisans and of- centuries and life in Zaryadye has been booming with ficials. In the 1930s, there was a mass demolition of activity since then. historical buildings in the area. Zaryadye was to become a place for the implementation of ambitious At first, foreign feudal lords and merchants who Soviet projects. In 1935, the construction of the high- served the Princes of Moscow lived here. In the 16th – rise building that was to house 4,000 offices of the 18th centuries, with the development of trade (goods People's Commissariat of Heavy Industry was to be- were delivered here via the Moscow River), the area gin here. State authorities then planned on erecting a gradually became more populated with traders, arti- second house for the Council of People's Commissars, sans and petty clerks. and the 8th Stalin Skyscraper in 1947.

In 1556, Ivan the Terrible presented the British with The skyscraper was in the process of construction, Yushkovsky Square on Varvarka as a gift. Here, the but the project was halted in 1953. In 1948-1950, British established the Moscow Trade Company and there were archeological excavations during the lived at Zaryadye for nearly a hundred years, taking demolition. By the end of the 1950s, all of Zarya- advantage of the right to free trade. dye, with the exception of a few monuments on Varvarka, the Church of the Conception of Saint In 1720, a school for boys from noble families, as well Anne and a fragment of the Kitay-Gorod wall, had as children of government officials or clergymen been demolished.

View of Kitay-Gorod, 1887

66 CAPITAL IDEAS October-December 2015 View of Kitay-Gorod from Teatralnaya Square, 1884

In 1964-1967 Rossiya Hotel was erected in place of the area be turned into a park in 2012. Obviously, this was eighth skyscraper. For some time, the building was a proposal the mayor could not turn down. even in the Guinness Book of Records as the biggest hotel: a total of 5,300 people could live in it at the Thus, the fate of the most expensive vacant lot was same time. In 2004, the hotel was closed under the sealed. At the time, no other capital in the world had pretext of dilapidation. It was dismantled in 2006. such a huge empty space in the middle of the city. Thanks to its unique location, centuries of history, Surrounded by a high fence, Zaryadye stood empty and the nearby monuments that have been pre- for several years. Its future was undecided for several served over the years, Zaryadye is already an open- years, until Vladimir Putin, who was Prime Minister at air museum of sorts and has a lot of potential for the time, proposed to mayor Sergey Sobyanin that the development.

October-December 2015 CAPITAL IDEAS 67 TRAVEL

Church of St. Varvara

the future park was to establish wilderness as both an attraction and an exhibition. Zaryadye Park is to become one the main attractions of the Russian global contest capital and fundamentally change the perception of Moscow and Russia. For the capital’s authorities, Undoubtedly, the development and this was the first experience in organizing such a implementation of such a large-scale large-scale competition, which could be considered project required a serious approach. one of the major architectural events of the past This meant including the best architects, landscape few decades in terms of its significance – like the Adesigners and urban planning in the project, along project for the new World Trade Center in New York, with specialists in the fields of design, management of for example, or the reconstruction of the Reichstag public spaces, entertainment, cultural, programming, in Berlin. economics, sociology, anthropology and natural resource management. It’s important to point out that all aspects of Zaryadye Park are of equally important significance: originality The Moscow government announced an interna- and depth must be backed by grandiosity and techni- tional contest for the best landscape and architec- cal innovation in implementation. No new parks have tural design concept, which would be used to create been established in Moscow since 1958 – all efforts a modern park with developed infrastructure that were focused on maintaining the parks that were al- would be open to visitors year-round. The area of ready in place, and green areas were shrinking in size. the park would amount to over 23 ha, and would Since then, the art of landscaping has undergone sev- have capacity of 15,000 visitors. The main idea for eral decades of development and has become highly

68 CAPITAL IDEAS October-December 2015 Church of St. Maxim the Confessor

advanced. Context organizers stressed that Zaryadye Applications from a total of 27 countries and 420 has to be a fundamentally new kind of park. It should companies (90 consortia) were considered. During be a project that demonstrates the latest accomplish- the second stage of the contest (July 1st – September ments, methods, materials and technology in the field 27th, 2013), six teams that had been selected by the jury of landscape design. received detailed design specifications and developed their landscape and architectural concepts for the fu- The contest was announced by Sergey Kuznetsov, ture park. Chief Architect of Moscow, on April 19th, 2013. The contest organizer was the Genplan Institute of On November 11, 2013, the international jury, which Moscow, with support from the Mayor of Moscow consisted of Russian and foreign experts, came to- Sergey Sobyanin, the Construction Complex of Mos- gether to make a decision and spent the entire day cow, the Moscow Committee on Architecture and intensely discussing the project. An international Urban Planning, the Association of the Landscape consortium headed by the architectural studio Diller Architects and the Moscow Union of Architects. The Scofidio + Renfro (DS+R, New York) ended up win- Strelka Institute of Media, Architecture and Design ning the competition. CU Reserve (Moscow) placed served as the consultant for the project, develop- second, while MVRDV (Rotterdam) placed third. At ing the design specifications and functional model the press conference during which the contest winner of the park. was announced, Sergey Kuznetsov promised that the winning project would be implemented, but all three There were two stages of the contest. The first stage finalists would take part in the construction as ex- (April 19th – June 17th, 2013) filtered out qualified bid- perts and consultants, since each project had its own ders based on the applications that were submitted. unique advantages.

October-December 2015 CAPITAL IDEAS 69 TRAVEL

he project as a challenge these intersections: the restaurant “Taste of Russia,” glass exhibition pavilions, and so on. It is important that each natural zone corresponds to its location, as well as historical and urban specifics. A swamp will The US studio that developed the win- be a place where the park interacts with water, the ning project is well-known for its unique forest – a wilder atmosphere, the steppe – an open natural urbanism designs. The most fa- space for sports and recreation. The tundra, which will mous project in the studio’s portfolio stretch along the Varvarka, will let visitors enjoy the is the High Line park, which was created based on architectural monuments of this old Moscow street. abandonedT railway tracks in New York. The guiding Another important point is the varying density of pav- principle behind the Zaryadye Park project is what its ing in different places – vegetation and pavement are creators refer to as “wild urbanism.” This is a special to intertwine with each other. There will be no clear philosophy for urban spaces, in which architecture border between pedestrian walkways and lawns, so does not dominate over nature. Nature creates an un- there will be no clear-cut routes and visitors will be expected contrast to the city, which means the urban able to walk in any direction they like. and natural landscapes are joined into one. Only one building will stick out against the backdrop The result of this union between architecture and of the landscape: an artificial hill will house a philhar- landscape should be a park that is at the same time monic hall and an outdoor amphitheater. They will be natural and man-made. The main idea behind the covered with a dome made out of transparent mate- project can be formulated as follows: the diversity of rial, which will be dubbed “the glass crust.” The phil- the Russian landscape as a unique component of na- harmonic hall’s capacity will total 1,500 people. There tional identity and cultural heritage. There will be 4 will also be two rehearsal halls, a recording studio and natural zones that are typical for Russia established a buffet and leisure zone with an open terrace. The in Zaryadye: tundra, steppe, forest and swamp. The open amphitheater for 4,000 viewers will house a park will be set up in the form of terraces, which large screen that will broadcast concerts taking place will descend from the top level of the section to the at the philharmonic hall. There will also be the option lower level, from the northeast to the southwest. The to hold two performances at the same time: inside natural zones will intersect and be layered over each the philharmonic hall, and on the open stage. Under- other, and the park’s key facilities will be located at neath the glass dome, the temperature will be kept

70 CAPITAL IDEAS October-December 2015 at comfortable levels and the grass will remain green Work on the construction of the park started in the year-round. Moreover, this zone of eternal summer spring of this year. The cost of the project is estimated will have a great view of the Kremlin, St. Basil’s Ca- to total 6 billion rubles, which will be spent on the thedral and the Moscow River. construction of park facilities, as well as on the establishment of different climate zones and a transport There will also be a pavilion of eternal winter at Zary- infrastructure. 12 million people will be able to visit adye – the so-called “ice cave,” which will remain cool Zaryadye Park every year. The opening of the park will even during the hottest days of the year. Sustainable take place on the Day of the City in 2017, when the development technology (temperature regulation, capital will be celebrating its 870th anniversary. ■ wind management and natural light simulation) will create an artificial microclimate in different parts of the park. All of the energy needed to sustain this system will be generated internally, on park grounds.

In addition to the park, there will be a pedestrian zone on Moskvoretskaya Embankment. The zone will be lowered to the water level and there will be less room for car traffic, which will create a green ring around the center of Moscow.

According to experts, the work to be completed by Diller Scofidio + Renfro will be the last word in the design of green urban spaces. “This project is a challenge that deserves a modern and dynamic city like Moscow,” said Martha Thorne, the Executive Director of the Pritzker Architecture Prize and member of the Zaryadye Park project jury. According to a number of American publications, Zaryadye is included in the list of the top 14 most impressive architectural projects of our time.

October-December 2015 CAPITAL IDEAS 71 OUR INTERVIEW Vyacheslav Trubnikov: Russia as a Western handmade scarecrow is inconceivable for a sober mind

“What’s going on between Russia and Mr. Trubnikov, do you feel that we may be at the brink of another Cold War? the West right now is an aberration – a deviation from the normal path of No. In spite of all the current difficulties between Russia and the West, I am confident that there is no scope for another Cold historical development,” said former War, though some international observers do use this term again. The thing is that the Cold War was a very specific phe- Director of the Russian Foreign nomenon – a battle between two ideologically opposed sys- Intelligence Service and First Deputy at tems, supported by two opposing camps that had essentially split the world in two. The Americans were fighting against the the Russian Ministry of Foreign Affairs “evil empire,” while we were at war with the imperialist domi- nation of the world by a single power. This war, of course, had Vyacheslav Trubnikov in an exclusive its own battlefields – diplomacy, the press and, of course, in- interview with Sergo Kukhianidze, telligence, which at the time was widely used by both sides. Today, ideology is not at the heart of the problem. What we Editor-in-Chief at Capital Ideas. have today is not a war, but a confrontation between Russia and the West (by the way, this term is often used quite liberally and eliminates differences between the US, the EU and NATO). This confrontation is taking place across multiple spheres –political, economic, military, scientific and informational. It entails competition, which is sometimes fierce and unfair, but at other times also cooperative.

So what is at the heart of this confrontation?

I would say that it is misunderstanding. There has been a dra- matic shift in what concepts such as sovereignty and territorial integrity mean, as well as changes in international law. Strange as it is, but today some principles of international law are

72 CAPITAL IDEAS October-December 2015

OUR INTERVIEW

interpreted in diametrically opposite sense. And all of this is hap- ning of perestroika, when the country was going through a eu- pening against the backdrop of increased international tensions phoric period – when we had just broken up with communism across several different regions. First and foremost, I’m talking and wanted everybody to like us. This sense of euphoria pushed about the civil wars in Syria and Ukraine.Both of these wars ini- us toward Washington and its European allies, wiping historical tially started as domestic conflicts, but have been drawing in ties with our old friends like Cuba and India from our memory. outside forces. There is a very dangerous element (which is ap- For a while, this sense of euphoria prevented us from think- proved, by the way, by the United Nations) – an excuse to in- ing strategically. Moreover, at the time we did not understand terfere under the guise of protecting the civilian population. As who we were and what we were supposed to become. We had a result, relations between Russia and the West are quite un- lost our essence. Thankfully, we are now restoring it and finding predictable at this point in time. Everything is changing way too ourselves. We woke up during the default of 1998. When it hap- quickly and international relations analysts simply can’t keep up. pened, we understood two important things. Firstly, nobody is It really is difficult to predict what will happen tomorrow. going to come to our rescue. Secondly, we saw that Russia had become so closely intertwined with the global economy that Kind of makes you want to go back to the good old Cold economic shocks quickly spread to our country. The global crisis War days! of 2008 illustrated this once more. We quickly forgot all about Karl Marx, who wrote that capitalism cannot develop without Well, back then everything was clear. At the very least, the crises! We used to study all of this – time to remember it. We world was much more predictable. In spite of the dangers, the must not forget another thing – we may have it harder than leaders of the two camps were politically literate enough to not anybody else. After all, Russia is moving along an unknown tra- take things past the point of a Cold War. There were certain jectory, from socialism to capitalism. limits to confrontations and ideological clashes. A good example of this was the Cuban Missile Crisis of 1962, when both sides But isn’t it bad that people are cautious when it comes to were able to stick to common sense and act in a politically re- Russia? sponsible way. Of course. Although in my opinion, it’s more like Russia is being These days, international relations are not as clear. The world used to scare people. We have been made out to be the world’s has become a puzzle, and not one that is suitable for children. bogeyman, of sorts – everybody is introducing sanctions, talk- In this regard, I don’t think Washington considers the end of the ing about Russia as an aggressor that annexed Crimea. But for Cold War to be a victory anymore. For my part, I was always some reason everybody is overlooking the history of Russia and convinced that the Cold War ended poorly for everybody in- the history of Crimea itself… volved in it. Though, of course, the outcomes were different for different countries. For the US, for example, the end of the Cold I guess those who think that the West is, historically War never brought the hegemonic leadership that the country speaking, Russia’s enemy, are right? expected. I don’t like these kinds of definitive statements. The West is not Because now there is China… Russia’s enemy, same as how Russia is not the West’s enemy. Of course we are different and have different values. But these Not just China. Because now there are regional associations – are not universal differences, just ones that have been shaped groups that remembered that, aside from ideological confron- by history. tations, there are also national interests. Yes, the US is still a great power, but it is no longer a “superpower.” It is enough to Let’s remember how Christianity disintegrated into the Roman point out that this is country that exists and develops by tak- and Byzantine empires a long time ago. The West, as we all ing on huge amounts of debt, by using the rest of the world’s know, followed the Roman path, while we followed the Byzan- resources. It prints dollars and floods the global financial and tine path. What’s the difference? In Rome, material wealth was banking system with them. at the forefront, while the Byzantine Empire stressed spiritual values. Rome was focused on law, while Byzantine focused on So what could happen? conscience. This is why they have laws that will punish you if you do something wrong. We have God. I don’t want to give a Well, if America’s creditors all of a sudden got together and de- simplified explanation of everything that is going on between manded that the US pay them back…but this wouldn’t happen, Russia and the West based on this religious difference, but of course. The difficult craft of American leadership entails con- there is something to it. stantly maneuvering between Scylla and Charybdis. So can we never agree? Ok, what about Russia? Are people afraid of us again? That’s not the point. We don’t have to agree, but we don’t have No, but people are cautious because Russia is refusing to play to disagree either. We have to respect the values of other peo- second flute in the US orchestra. For some time, Moscow was ple. Just as we should have no desire to convert others to be content with this role. Especially at first, right after the begin- more like us, others shouldn’t want to change us either. You

74 CAPITAL IDEAS October-December 2015 know, my friends from the NATO headquarters often ask me: What’s that? why are you not like us? I always respond with: why are you not like us? Let everybody be different. Would the US be able You know, sometimes I think that the problems in the former to impose its way of life on Afghanistan? Or on Japan, China, Soviet Union, including problems that exist in relations between India? These are all different religions, philosophies, values and Russia and neighboring countries such as Ukraine, Georgia and customs. There are different historical backgrounds and types Moldova, were in some way provoked by the anti-alcohol cam- of government. paign initiated by Gorbachev. The grape vine is an important cultural component for those countries, and it was being cut How long do you think this confrontation between Mos- down. But this is my personal theory that has nothing to do cow and the West is going to continue for? with research of any kind!

I can tell you right now that what’s happening is an aber- So far as conspiracy theories are concerned, they are the easi- ration – a deviation from the normal path of historical de- est way to attempt to grasp things you cannot explain logi- velopment. Unfortunately, there is no end in sight to it right cally. Primitive brainwashing specialists use conspiracy theo- now. In any case, I’m not going to make any predictions. One ries when they cannot figure out complicated phenomena in thing is clear for me – relations between Moscow and the foreign and domestic politics – when they don’t understand West right now are not right. But it’s very difficult to find a why things work the way they do. This has always been the way out of the crisis. case. The West has always blamed Moscow, and we’ve always blamed the CIA. Of course, any time there is a confrontation What advice would you give to Western business people? of any kind, security services will work to undermine the social and political foundations of the opponent country, try to get I don’t think there is much I can tell them. Western interests as much information as possible… but believing in conspiracy have been hit hard by the sanctions. It’s the politicians who theories is childish. The CIA and KGB are just tools used by poli- need advice: to look at things in a more realistic, balanced way. ticians. The head of the CIA has never determined the foreign policy of the United States. Do you think the sanctions will help Russia? Let me re-phrase. Do you think the standoff between Mos- Sanctions are not the way to help. Sanctions are an attempt cow and the West has spiraled out of control? to make things more difficult. Not so much economically, but politically. Not at all! It’s just that a lot of aspects in this process come as a big surprise to people who think they know everything. What exactly do you mean? It is the height of naiveté to be absolutely sure that you know everything. Unfortunately, there are processes that cannot be The West thinks that the source of all of today’s challenges predicted because you simply don’t every single thing that may is the fact that President Putin determines Russia’s political influence them. course. So they have a clear goal – regime change. Politicians are rarely guided by science and research. Otherwise, they So nobody knows every single thing? would know that sanctions usually have the opposite of their intended effect. They have not worked well anywhere yet. Just People who believe in God say that only God knows every- look – they have made Russian society more cohesive than be- thing. God allows some of us ordinary mortals know a bit more fore. In the West, on the other hand, society is polarizing. After than others, but you still can’t see too far past your own nose! all, the sanctions have had a serious impact on the economies (Laughs) of many European countries. Can the West be trusted? Since people talk a lot about the Cold War, perhaps it’s time to discuss how we can co-exist peacefully… Trust isn’t really the issue. Building international relations solely on trust is not an option. This is why Reagan liked Exactly! No matter what we do, we will have to revert back our Russian proverb so much: trust, but verify. This is why to peaceful co-existence. And under the current conditions of you have intelligence, by the way – to know what’s really economic co-dependency, this is the only way to ensure the going on. healthy development of each country. Is intelligence really omniscient? Let me ask you, do you believe in conspiracy theories? There are come people who believe that what’s happening No, intelligence is not omniscient or all-powerful. Relying only was planned by the CIA… on intelligence, much like relying on any one source of information, is a mistake. There is now a plethora of information out No, I don’t believe that. I am a fan of a different theory – the there that needs to be analyzed in order to put the world puzzle “grape-vine.” (Smiles). together. Maybe! (Laughs) ■

October-December 2015 CAPITAL IDEAS 75 WE SIMULATE SITUATIONS Factoring in all the risks

Foreigners in Russia don’t always consider the risks associated with the specifically local nature of business practice. But such risks exist, and may inflict serious damage on your business. Telling how foreign companies can sidestep some particularly Russian problems is Oleg Timofeev, Managing Partner at the law firm Timofeev-Cherepnov- Kalashnikov.

Situation 1 A French chemical company has embarked One should bear in mind that in Russia, the cost for on a project to build its first factory in Russia. businesses of connecting to the utilities networks can Having procured the land for it, however, it vary substantially from region to region. For instance, in the interests of attracting investors, such connection in has come to light that connecting the manu- several Russian regions is carried out free of charge. In facturing facilities to the utilities network will another region, it might require a small payment, but in work out far more expensive than anticipated some places, the connection cost might require the outlay of a hefty sum. In some places, the electricity supply in the costing. The problem has failed to be is limited, so the company will not be able to connect to resolved, and the French have had to build the nearest substation. Generally, in such circumstances, their factory in another region. As a result, the the local authorities offer to extend a power line to a substation located at a further distance from the com- deadline for the production launch has passed. pany’s production facilities at their own expense. The company has incurred losses associated with moving construction to another site, as When planning a project in a given area, don’t necessarily take the promises of government officials offer- well as having to meet the costs of maintaining a “turnkey” site at face value. To understand the real ing the plot of land they no longer need. state of affairs regarding a region’s utilities networks, it is necessary to find out for yourself. Accurate information In order to avoid the problems associated with connect- can be obtained from corporate lawyers specializing in ing a business to the utilities network, the French should the energy field in the region you are interested in. An have carried out a so-called energy audit at the time of energy audit will indicate any problem areas and iden- the investment risk assessment. This would have indi- tify ways of resolving them. The cost of such a survey cated the costs required to connect the manufacturing is incomparable with the losses which a company risks facilities to the electricity and gas networks. incurring by acting at their own peril.

76 CAPITAL IDEAS October-December 2015 A health and safety audit is extremely important for foreign manufacturing companies. Any legal firm specializ- Situation ing in Russian corporate law can perform such an audit. 2 This procedure will protect the company from conflict A German manufacturer of car compo- with the Russian regulatory authorities which can turn nents decided to expand its production out to be very expensive. network in Russia. They set up a new manufacturing works on an industrial estate. A year after production was launched, the 3 company was issued with a writ regard- Situation ing a breach of health and safety regula- An Italian producer of glass for general use tions. It turns out that those running the built a factory in one of Russia’s peripheral industrial estate provided the German regions. In doing so, they did not take ac- company with premises next door to a count of the fact that they built their works food warehouse, which, under Russian in an agricultural area where the population law, is prohibited. The enterprise had to are unused to working in large-scale indus- either shut down production or carry out try. A year later, they had to release around a complicated an expensive refitting. In half of the workforce due to their inability the end, the company was forced to re- to maintain workplace discipline. The man- locate, which required a large outlay not agement of the enterprise was compelled envisaged in the budget. In addition to to bring in workers from neighbouring ar- this, the company missed it product de- eas and even another region entirely. livery deadlines. When choosing somewhere to set up production facilities, a foreign company has to bear in mind more than just the The German company brought these problems on itself legal and financial risks. The first thing must be to analyse by not assessing the risks associated with the location the socio-economic situation in the region, particularly of production premises. The Germans trusted the indus- the availability of a labour force. Inattention to this issue trial estate’s management company insofar as the lease complicated the operation of this Italian enterprise, and agreement stated that no kind of risks or consequences led to a rise in its costs. Given the circumstances, resolving would be incurred from their being located on their in- the problem in any other way was impossible. dustrial estate. Amongst foreigners, there is the widespread misconcep- The foreign company did not take into account that it tion that it is always possible to motivate its workforce is virtually impossible to call the management compa- and achieve the desired result. But counting on a satis- ny to account for breaching this clause of the contract, factory outcome with an ill-prepared labour force is a or to claim back losses resulting from it. Europeans are non-starter. accustomed to contractual parties being scrupulous operators who discharge their responsibilities in good Today, many Russian regions are tempting foreign inves- faith. But even a respectable Russian company can let tors with various incentives. Of course, the cooperation its partner down and avoid taking responsibility for the of the local authorities goes a long way towards de- consequences. veloping a successful business. Even so, one should not forget that incentives are no use if there isn’t anyone to Russia’s health and safety, and environmental require- work at the company. So, when choosing somewhere to ments are known for being amongst the most stringent set up, a business should first of all evaluate the work- in the world. Failure to comply with these regulations can force potential of a given area: is it able to provide it cause a company a large number of headaches. There- with the right number of workers with the right level of fore, when siting production in Russia, it is vital to find out skills? Such data can be provided by social scientists. If what else there is in the vicinity. In international practice, desired, a specific survey of the available labour market such a check is covered by due diligence. But foreign com- can be requested in order to build up a detailed picture. panies in Russia often neglect this procedure, relying on The costs will be comparatively small, not to mention the assurances of partners or government officials that the fact that the data received will assist the company’s there are no such risks. Thus, the requisite attention is not management in avoiding making mistakes or acting in a paid in the negotiations to the question of each party’s way that is counter-productive. ■ responsibilities, as a result of which the injured party is unable to claim compensation for any losses incurred. For Capital Ideas courtesy of BIGMOSCOW

October-December 2015 CAPITAL IDEAS 77 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.

НАДЕЯТЬСЯ КАК НА КАМЕННУЮ ГОРУ – nad’eyattsa kak na kam’ennuyu gory. (To rely on someone as on a rock mountain) Explanation: To rely fully on someone

ПОДВЕСТИ кого-либо ПОД МОНАСТЫРЬ – podv’esti pod monastyr’. (To bring someone up to a monastery) Explanation: To put somebody into a difficult position

РУКИ КОРОТКИ – ruki korotki. (One’s hands are short) Explanation: One doesn’t have enough strength to do something

НЕ ЛЕЗТЬ ЗА СЛОВОМ В КАРМАН – n’e l’ezt’ za slovom v karman. ( Not to climb for a word into one’s pocket)

Pictures by Anastasia Saifulina Pictures Explanation: Not to be at a loss for words

ДАЛЬШЕ ЕХАТЬ НЕКУДА – dal’she yekhat’ n’ekuda. (You can’t go further) Explanation: Things couldn’t be worse

КАК ПО НОТАМ РАЗЫГРАТЬ – kak po notam razygrat’. (As if played from music) Explanation: To accomplish something without any difficulty ВРАСТАТЬ КОРНЯМИ – vrastat’ korn’ami. (To take root) Explanation: To get fully accustomed to something

ГЛАЗА РАЗБЕГАЮТСЯ – glaza razb’egayutsa. (One’s eyes are running in different directions) Explanation: One doesn’t know what to look at first

СГЛАЖИВАТЬ ОСТРЫЕ УГЛЫ – sglazhivat’ ostryye ugly. (To smooth sharp corners) Explanation: To ease tension

НЕ НЮХАТЬ ПОРОХУ – n'e n'ukhat' porokhu. (Not to smell gun-powder) Explanation: Not to have been in combat

НАЙТИ СЕБЯ – nayti s’eb’a. (To find oneself) Explanation: To find and realize one’s vocation, calling

ДУША УШЛА В ПЯТКИ – dusha ushla v p’atki. (One’s soul has gone into one’s heels) Explanation: Terribly frightened BETWEEN PAST AND FUTURE The incredible journey of a frenchman to Muscovy Official relations between Russia and France were established in 1717, under Peter the Great. In reality, though, cooperation between the two countries started much earlier. Few people know that Jean Sauvage, a sailor and merchant from Dieppe, visited

Bruno Vianey with his book Moscow in 1586.

runo Vianey, a mathematician from Grenoble, has The event took place in 2007, in Arkhangelsk. What took made a discovery. It has little to do with math, how- Bruno to this northern city? His interest in the Arctic. Vianey ever, and more to do with history – the history of is a representative of the French Center for Arctic Research. French-Russian relations, to be exact. The humble He was at a local library when he accidentally overheard Bruno himself doesn’t consider the discovery to be a the name of the French explorer Jean Sauvage, who visited Bbig deal, though – he thinks he has simply breathed new life Arkhangelsk on his own merchant ship in the 16th century. into a piece of history that has long been forgotten. ‘I was so intrigued by this that I decided to find out more

80 CAPITAL IDEAS October-December 2015 about my brave compatriot from Dieppe, as much as I could,” ney to Muscovy in 1586. He wrote the book in his free time, Bruno says. while teaching at the lyceum. The book has been published in French and is now about to be published in Russian as well. Vianey has a very inquisitive mind. In spite of the fact that he Considering the fact that Jean Sauvage will turn 430 years is a mathematician, his interests were never limited to num- next year, the book will be published at just the right time. bers, formulas and theorems – a trait that runs in his family. His father, who was a physicist, was always interested in history But what is the significance behind Jean Sauvage’s journey? and culture. Bruno takes after him. Aside from the Arctic, he “There are good reasons to believe that the journey lay the is also interested in the history and culture of France, Norway foundation for relations between France and Russia,” Vianey and Russia. It is no surprise that, prior to his arrival in Moscow, says, “Of course there were Anne of Kiev and Feodor I, who where he now teaches math at the Lycée Alexandre Dumas, sent a letter to Henry III. But the first ‘trade agreement’ be- Vianey worked for five years at a French school in Oslo. tween our two countries was signed a year after Jean Sau- vage visited Arkhangelsk. It was then that the tsar allowed Like a true mathematician, Vianey was extremely thor- merchants who came on Sauvage’s ship to trade. And many ough about his research of Jean Sauvage’s journey to Mus- other important events in the relations between our two covy (which is what Russia was called at the time). For ex- countries started happening after Sauvage’s journey.” ample, he found a small text written by the traveler himself at the National Library in France. The text was published in Interestingly, in conducting his research, Vianey discovered France, and then also in Russia. After arriving in Russia by sea another Jean Sauvage, who visited Russia in 1944. He was a through Norway, Jean Sauvage was impressed with Arkhan- pilot of the legendary "Normandy-Niemen" regiment, which gelsk. The traveler called the city “a castle built out of spired fought with us against our common enemy – fascism. Bru- and crossed logs.” Sauvage noted that there were no nails in no met with him and is now thinking about writing another the buildings and concluded that the people who built it were book that will document another moment in the history of true masters of architecture. His notes outline the route that French-Russian relations. future travelers should follow, the surprise of travelers when they see a sun that never sets, the skill of Russian carpenters Diplomatic relations between Russia and France were offi- and the great Russian traditions of sledding and drinking… cially established in 1717, after Peter the Great visited France. Relations between our two countries have gone through a Another amazing discovery awaited Bruno at the library. lot of changes since then, and Bruno things that the cur- Next to the text written by Jean Sauvage, there was a small rent state of affairs, fueled by sanctions and the conflict in French-Russian dictionary from the 16th century. It con- Ukraine, is “abnormal.” When the sanctions first went into tained words and sentences used in both everyday life and in effect, he thought they would only last a couple of months. business. So who is the author is this French-Russian phrase- He has been living in Moscow for 8 years and feels comfort- book? Jean Sauvage himself? According to Vianey, the answer able in the city. He doesn’t like that Moscow is transforming to this question remains a mystery. Either way, it’s not im- into a city that is similar to European capitals – losing its portant. The phrasebook in itself is a unique linguistic docu- Moscow touch. But overall, according to Vianey, “there is ment. no time to be bored in Moscow. There are so many interesting things to do there: theatres, ballets, concerts. Trust me, The research Bruno Vianey conducted over the course of you can live here just fine without French cheese,” Bruno three years materialized in a book called Jean Sauvage’s Jour- smiles. ■

October-December 2015 CAPITAL IDEAS 81 THIS AND THAT MONEY: between

What is the attitude toward money in the West? Of course everybody is different, but the opinion of the general public can be summarized with a famous saying: ‘Money Talks.” In Russia, people think differently about money. Here, the vast majority of people think that Money is evil.

his negative opinion of money can be Some people, in trying to explain this easily explained. First of all, there were drama, insist that the core of the issue is seventy years of Soviet rule. Although also the Russian orthodox religion, which money did exist during the communist also portrays wealth in a negative light. As era, the central idea was that money proof, many site the gospel, which states Tand wealth in general are evil. Vladimir Len- that it is difficult for a rich man to enter in, the founder of the Soviet state, once even Heaven. This may be so, but the key word is wrote: after communism finally triumphs, we “difficult.” Jesus said that it would be diffi- will be using gold to build public toilets. Per- cult for a rich man to enter Heaven, but not haps he truly believed this. Perhaps this would impossible. And after all, entering Heaven have even been the case has Russia truly be- is difficult for everybody – not just for the come a communist country. But communism rich. So it seems like many people are mis- is a class-less society that is based on abun- interpreting the Bible. dance – a utopia that seems unattainable. The truth is that Orthodoxy is not opposed Of course, making money out to be evil was to wealthy. Orthodoxy simply warns about a bit extreme and silly. A person who tried turning your whole life into an endless to make money during the Soviet Union was search for money and gold. As abbot Cypri- seen as an enemy of the people. But making an once pointed out, the need for material money in those times was very difficult. As things is a neutral – it is neither bad nor a result, just about everybody in the USSR good. It only becomes a bad thing when a was equally poor. “The story of our lives,” person turns it into a passion. As the Holy the Vainer brothers once said, “is a drama of Fathers said, “the trouble is not the riches,

Pictures by Anastasia Saifulina Pictures never-ending poverty.” but the passion for it.” This is why wealthy

82 CAPITAL IDEAS October-December 2015 capitalism and communism people who spent their money on charity were always treated with respect in Russia.

Be that as it may, after 1985, when perestroika started, Russia was thrown into another extreme – forgetting about morality, people became obsessed with making money. There used to be a joke about it back then: “The friends meet up for a drink. One of them asks the other to say something pleasant. The friend answers, ‘dollar,’ and both men break into smiles.” The dollar and then the euro became the basis for relation- ships between people, which is of course unhealthy. People in the country quickly split into two camps: those who had money and those who did not. Of course, there were more people with no money, which is why the general public developed a negative attitude toward wealth. This frustration was fueled by the fact that many people who became rich quickly did not make their money in honest ways.

But these days of street capitalism are over in Russia. We like to think that Russian at- titudes toward money will change soon as well and that we will stop treating it like it is evil. Russians will soon find the happy middle ground between capitalist wealth and communist morality. ■

October-December 2015 CAPITAL IDEAS 83 LIFE&CULTURE

Karen Shakhnazarov: Mosfilm – my love and my life

Mr. Shakhnazarov, how do you manage to combine manag- But it’s mostly TV series that are filmed there… ing Mosfilm with your own work? This is no secret: in the past few years, Mosfilm has been focus- Honestly, I don’t know the answer to this question. I think it’s a ing more on television. We film popular programs and movies character trait of mine, or maybe a habit – keeping a new film for television. But this is the reality of our time: TV series are (right now, for example, I’m getting ready for the film adaptation becoming better and more colorful – their creators need ex- of Leo Tolstoy’s Anna Karenina) in my head and thinking about pensive studios and complex decorations. With the emergence where to buy a snow blower for Mosfilm at the same time. of advanced new digital technology, our low-budget films (it is Moreover, I think doing this job helps me in my own creative a well-known fact that the cost of all Russian cinema is compa- work. I know the capabilities of the studio very well, the poten- rable to the budget of just one Hollywood movie) is frequently tial of the people there. I won’t say that the past 17 years have filmed outside of studios. I don’t see any big tragedy here. The been easy. And I don’t think I would do it a second time. But I am most important thing is that the country has a modern, pow- glad that my colleagues and I were able to create something real. erful, self-sufficient cinema base – one of the best ones in the Today, Mosfilm is a modern, stable, commercially viable studio. It world and definitely the best one in Europe. will live on so long as people in our country keep making movies. Are you not exaggerating? So, could you summarize what Mosfilm is today? Not even a little bit. When I became the Director of Mosfilm 17 Mosfilm is a movie-making factory. It is modern, powerful and years ago, the studio was in ruins. Everything was falling apart, equipped with the latest technology, including computer graph- from the actual film technology to the bathrooms and electrical ics. I will stress that this is the only commercially viable film studio wiring. I’m not blaming anyone for this, but it was the reality. in Russia. Over the past ten years, Mosfilm has been renovated Back then, I set an objective for myself and my colleagues – and modernized with our own funds. We not only don’t borrow to make the best studio in the world. Not the second or third money from the government, but we also pay taxes. Today, our best, but the absolute best. Today, the majority of the work we film studio has a lot of work – all of the pavilions are booked for had to do has been done. Mosfilm’s international guests tell us several months in advance. about this, and I’ve done quite a bit of travelling myself. The only

84 CAPITAL IDEAS October-December 2015 People’s Artist of Russia Karen Shakhnazarov is a unique person in our film community. He is a film director, and every new film he makes becomes an important cultural and social event. Karen has been the Director General of Mosfilm for over 15 years. Mosfilm is a legendary film studio, in which masters of Russian and Soviet film such as Sergei Eisenstein, Alexander Dovzhenko, Sergey Bondarchuk, Andrei Tarkovsky once created their masterpieces. Mosfilm – my love and my life studio I’ve seen that I would say we can compare ours to is the Had I made a film with Marcello Mastroianni, I’m sure it would Warner Bros. studio in Los Angeles. They have more pavilions have been followed by some type of success, festivals and so on. than we do. But we are matched in terms of the “stuffing,” so I often do things that just aren’t practical. But I can’t do any- to speak. But it’s easier for them, the climate is different. It’s 20 thing about it. I only do films that are interesting for me. degrees in Los Angeles in the middle of January, while we have to deal with ice on the roof and heat the entire place. Which film was the most difficult for you to make?

Do you think that our contemporary cinema has its own White Tiger and The Assassin of the Tsar. My latest film, White Tiger, perspective and its own path for moving forward? was difficult because there were a lot of elaborate battle scenes that involved tanks. Actually, I had wanted to make a war film for To be honest, I don’t really consider Russian cinema to be a well- a long time, but didn’t have the mental and physical energy for rounded phenomenon – something that has its own thought it. Right before my 60th birthday, I decided that it was time. Es- process, language and style. There are some individually suc- pecially since I had interesting material – Ilya Boyashov’s novella cessful pictures, but I can’t tell you what Russian cinema is, ex- The Tank Crewman, or “the White Tiger," in which there is a new actly – what its primary characteristics and strengths are. So- surprising perspective on the nature of war. viet cinema, on the other hand, was unified by this idea that it had to make humanity better, to give us hope in goodness and Together with my friend, the screenwriter Alexander Borody- progress. It’s no wonder that retrospectives of Soviet classics do ansky, I submerged myself in the history of WWII, studied vol- so well at international film festivals. I think that Soviet cinema, umes of documents and memoirs, including some that were in spite of all of its initial political engagement, gradually came not translated into Russian. We also included the characters to continue the traditions of great Russian culture. The best of of Marshal Zhukov, Hitler and Keitel. Based on the memoirs of contemporary Russian films also continue these traditions. front-line journalists, including Konstantin Simonov, we added scenes of Germany signing the surrender documents. Finally, You have done 15 major pictures since then. They are very we infused the film with our own thoughts and feelings. Mak- different in terms of theme, genre and style. There is a popu- ing the film demanded I engage all of the knowledge and skills lar opinion, though, that a real director has to be working on that I had acquired over my lifetime. making one big movie throughout their entire life… This film is also a source of pride for me as a Director of Mos- I don’t want to offend anyone, but I would die of boredom if I had film. Everything that you saw on the screen – the guns and to focus on one big film my entire life. But seriously, I can’t explain tanks – all of this belongs to Mosfilm. And everything works why all of my films turned out to be so different. Picking a new perfectly. We weren’t interrupted once by a technical mal- topic and genre have always been intuitive and emotional process- function during filming. This is in spite of the fact that the es for me. Because of this, I often do things that are not in my best tanks are 70 years old – they date back to WWII. I served in interest. For example, filming a musical in the USSR was clearly a the armored division during Brezhnev and remember that we hopeless project with no potential. There was no way it could have couldn’t get a third of the tanks out of the park. All of our ended well. But I made We are from Jazz and Winter Evening in Gagry, tanks worked perfectly. because at the time that is what I was interested in. Why was The Assassin of the Tsar difficult for you? On the other hand, I refused to make Ward No. 6 with the Italians. They insisted on a classic representation with cos- We were filming in both Russian and English at the same tumes, while I wanted to adapt it to modern times. Finally, time. We would film a scene in Russian, then in English – I managed to make my version a few years ago and I’m very double the effort from the start. Moreover, it was a difficult happy about it. The film received the Moscow Film Festival movie to make in terms of ethics. The murder of the royal award and was nominated for an Oscar. But today I some- family, of innocent children – you can’t film things like this times think: why was I so stubborn about it? Why didn’t I just indifferently. Besides, a part of it was filmed in a mental in- go along with the Italians? stitution – not very pleasant. Plus the time period. This was

86 CAPITAL IDEAS October-December 2015 1991, when the country was falling apart. The shelves in the You have been married three times, and divorced three stores were completely empty. We had to feed the world- times. What is the reason for this: are you a tyrant or were famous actor Malcolm McDowell this rubbery chicken that you marrying the wrong women? we could barely find at the market. At times I thought that I wouldn’t be able to finish filming it. I finally had to force my- Well, you know how it is with family life. If you listen to the self to finish it, against all odds. But the premiere was shown wife’s perspective, you’ll get one truth. Listen to the husband at the Cannes Film festival, and McDowell still considers it – you get another. The answer is probably that cinema has alone of his favorite films. ways been more important to me. It is the altar on which I sac- rificed my personal life. Finally, which one of your movies was the most personal? American Daughter, maybe? Because of what happened in So, in your 60 plus years, you can proudly say: I’ve made 15 your family, when your wife secretly took your daughter to movies, built a house, made a garden, raised children… the US during perestroika… Yes, the kids are all grown up. I didn’t build my own house – I don’t really televise my own life. Yes, the main premise was I am happy with the old dacha that I inherited from my Dad. based on something that happened in my own life. But then Mosfilm became my home that I managed to modernize with I turned into a melodramatic fairytale that doesn’t resemble the help of my colleagues – I’ve made it into a modern studio. reality. If I filmed it in accordance with what happened in real Alexander Dovzhenko planted the famous apple orchard, but life, it would have been a less interesting and much more de- we really did some work on it and now it blooms every spring. pressing film. So I have completed my life plan, in general terms. ■

October-December 2015 CAPITAL IDEAS 87 LIFE&CULTURE Go right – lose your horse, go straight – find happiness...

Autumn promises to be hot. This, of course, DNKH is rapidly becoming one of the most interesting places in Moscow these days, does not mean the weather, but the cultural and in the last year it has undergone a lit- eral rebirth. Union Agricultural Exhibition in events that are in store for Muscovites. The the Soviet Union was conceived in the 30s Vunder Stalin. It had its inaugural opening on August theatre season is in full swing. So many 1st, 1939. And since then for decades it carried the opening nights! Singers and musicians honorary title of the main exhibition in the country. In recent years, many innovations happened on the site are in full combat readiness. Museums of VDNKH. For example, a new entertainment and educational center called "Urban Farm" has opened. and exhibition halls have also prepared It is located in the former historic pavilion number 44, "Rabbit Rearing." Everyone can see cows, sheep, goats, thoroughly. Serious struggle breaks out even rabbits and poultry all year round here. Young visitors, for the youngest audience. for whom the farm is designed in the first place, are in for fascinating lectures and master classes.

88 CAPITAL IDEAS October-December 2015 Go right – lose your horse, go straight – find happiness...

oung nature lovers will appreciate the unique oceanarium that opened on VDNKH grounds recently. The President Vladimir Putin even attended the opening on the 5th of August. He was impressed with the oceanarium – oneY of the largest in Europe. It also holds performances with marine animals.

On the 5th of November, an exciting exhibition cu- rated by the fashion historian and collector Alexander Vassiliev will open to the public. I will be dedicated to Russian and Soviet wardrobe of the past 100 years. Everyone will be able to see how the citizens of the Soviet Union dressed during the October Revolution and after, in the harsh war years, to trace all eras, starting from the 50s to our time. Alexander has been collecting his unique exhibits over the years at flea markets and antique shops around the world. www.ferma.vdnh.ru

he theatrical life of the capital is in full swing in the autumn, too. Theater Et Cetera, which is run by Alexander Kalyagin, will introduce viewers to the premiere of the play Duck Hunt. Vladimir Pankov directs it. The basis Tof his productions is always a musical score, which is composed of text, music, and various noises. Al- exander Vampilov wrote the famous play, which still attracts many directors in the country, in 1967. The playwright was just 30 years old. The fate of the playwright is very tragic: he passed away two days before his 35th birthday, when he drowned in Lake Baikal. His motorboat capsized at the source of the Angara River. The play is written as if in anticipation of this tragedy. After all, it is dedicated to a man who is tired of life, and can’t decide if he should keep on living. The protagonist Zilov, whom everyone loves, cannot love anyone, and exists on the edge, outside the normal life of normal people. The unique actor Oleg Dahl, who also died early, played this role at the time in a film. www.et-cetera.ru

October-December 2015 CAPITAL IDEAS 89 LIFE&CULTURE www.theatreofnations.ru

he theater of Nations under the leadership of the popular actor Yevgeny Mironov is staging the sensational premiere of "Push- kin's fairy tales." These modernized fairy tales are still familiar to every Russian child fromT infancy. Three wenches under the window rap, the Goldfish’s tail is embroidered with thousands of sequins, and the narrator looks like the Mad Hatter from "Alice in Wonderland." Many viewers did not even recognize him as the artistic director Yevgeny Mironov. Each costume is a work of art. No one has ever showed Pushkin in this light. Who would dare to www.theatreofnations.ru treat the classics in such a way? One of the most popular American directors and set designers, the star of avant-garde theater, Robert Wilson. As a child the director was diagnosed with autism. For many years he worked with the doctors on a specific procedure, which included repetitive motion, so Robert could develop his vocal apparatus. Years passed, and this technique has become a creative method for Wilson. All the motions of the artists who participate in his productions are monotone, as if borrowed from car- toon characters.

airy tales in general seem to have become a favorite genre for contemporary directors. In the Gogol center, this fall’s premiere is "Russian Fairy Tales." One of the most con- troversial and avant-garde filmmakers of MoscowF Kirill Serebrennikov made a very unusual move. A lot of music, a lot of stories, and most im- portantly – these stories happen all over the theater at the same time. In different rooms. Three troupes, three paths, three different experiences. And the spectator themself can choose what at and where to look. As in the real Russian folk tale: you go to the right – you lose the horse, go to the left - become a goat, go straight - you will find happiness!

www.theatreofnations.ru Familiar plots and characters: Baba Yaga, Vasilisa

90 CAPITAL IDEAS October-December 2015 the Beautiful, The Firebird, Ivan Tsarevich and the Grey Wolf. But in a whole new way!

n the theater under the direction of well-known and beloved actor Armen Jigarkhanyan there is also a premiere – "Theater in the time of Nero and Seneca," based on a play by Edward Radzinsky, but in a new interpretation. In the role of the philoso- I pher Seneca for the first time after a long break is Ar- men Borisovich himself, this luminary and mastodon of Theatre, who turned 80 years old on the 3rd of Oc- tober! So the struggle for the audience is joined by an experienced master-heavyweight.

oday everyone is trying to surprise the audience with something original and unusual. For example, on November 8th the stage of the Kremlin Palace of Congresses will host the famous ballet "Swan Lake," but not the Tclassic traditional production everyone is used to. It will be a spectacular ballet-acrobatic show of Chinese www.mk.ru artists from Shanghai. They promise an incredible sight of complex acrobatic elements, even with the participation of high-wire walkers, lightning speed change of scenery, with breath-taking stunts.

here will be an event held in memory of Maya Plisetskaya on her birthday (Novem- ber 20th) in the Bolshoi Theatre. The star did not make it to her 90th birthday and passed away after a heart attack in Munich Ton May 2nd, 2015. But the ballerina’s ashes have yet to be buried. According to Plisetskaya’s will, her ashes are to join the ashes of her husband Rodion Shchedrin after his death and scattered over Russia. Maya Plisetskaya is more than just a prominent ballerina – she is a symbol of Russian ballet who continued to perform on stage until age 70. The mist prominent dancers of the Russian Federation will take part in the concert.

n the 21st of November, the Moscow In- ternational House of Music will host an unusual concert for the fans of Francis Ford Coppola’s The Godfather. The film, as it is well known, came out in 1972, and has sinceO been watched by many a generation of viewers. On the day, the film will be screened in the Svet- lanovskiy Hall big screen, fully digital HD and accom- panied by a symphony orchestra, which will perform all the tunes from the film. The soundtrack to The Godfather is considered one of the most successful in the history of the cinema. Coppola’s collaboration with the Italian composer Nino Rota was one of the major components of success.

The premiere of ‘The Godfather. Live in Concert’ was held in December 2014 in the London Royal Albert Hall. Since then the show toured the major capitals of the world: Vienna, Paris, Berlin, Amsterdam and Brus- sels. And now it comes to Moscow.

October-December 2015 CAPITAL IDEAS 91 LIFE&CULTURE

n November, a marathon month-long battle for the viewer will begin amongst the most famous singers in Russia. November 3rd will be the time for Timati, a famous rapper, whose body is decorated with a record number of tattoos, to make his I move. 70% of Timati’s body is covered in tattoos. His work attracts the same wild lovers of tattoos, rap and sweet carefree life consisting of continuous partying as him. "Hey, girl, why you so rude?" is one of the biggest hits of this artist. The next day, November 4th, 35-year-old Stas Piekha will take the same stage in the Crocus City Hall. This singer’s audience is main- ly women, because he is the grandson of one of the most famous singers in the USSR, Edita Piekha, and sings about love, including the unrequited. "She's not yours" is the title of one of his most popular hits.

On November 14 a double whammy for the female audience on the stage of the Kremlin Palace of Con- gresses! Two talents and favorites of the Russian ladies: the Meladze brothers. The elder is the composer, and the Jr. is the performer of his songs. Konstantin and Valery have worked in a creative tandem for decades. A record number of hits has been produced in this time. This performance is the anniversary, as this year Valery turned 50. But regardless of age and gray- ing hair, the number of admirers of his talent is not diminished.

lassical music lovers may be interested in the cycle "Music in Mansions." These concerts are held in the living rooms of Moscow mansions and estates. For example, on 24th and 25th December the Concert Hall of the Ctotal 130 seats, located in the memorial house-museum of the composer Scriabin in the historic Arbat area will host an event called "Rossini-jazz", in the program of sonatas for string instruments Rossini combined with jazz pieces and music parodies.

There is also an extraordinary number of different memorial museums associated both with famous writers, musicians, poets, and with artists, painters, actors and politicians in Moscow.

ne of the most famous writers is, of course, Leo Tolstoy. The Museum-Estate of Leo Tolstoy in Khamovniki, where the writer lived for 19 winters from 1882 to 1901, an activity can be ordered (it is somewhat differentO from the usual tour), which is designed for a small group of up to five people. A variety of top- ics: "Family of the Tolstoys. Games, holidays." Or "one weekday in the Tolstoy family." In this lesson you can learn interesting facts about the life of one of the most famous writers of Russia and his family. For information on how the writer’s children studied, what they wore, where bought produce, what they played, how they celebrated name days, holidays, where they

92 CAPITAL IDEAS October-December 2015 went on picnics. This activity gives a clear idea of what the life and customs of the Russian nobility were like. Young children are offered interesting tasks. And in December, it will be particularly interesting to learn about the Tolstoys celebrated Christmas, which is not far off.

he December listings are replete with activities for children. These are numerous “Yolkas” which are traditionally held in various halls leading up to the New Year's Eve. And this year they will start earlier than usual. For ex- Tample, in the Central House of Artists they begin from December 5th: "Firs in the art gallery", dedicated to the fine arts. On December 10 at Sokolniki starts Ro- bo-Yolka - the most unusual idea, in which the protagonist will be the robot Titan. January 19 onwards at the Crocus City Hall runs the New Year's show by the Canadian illusionist Fan Yang, specializing in soap bubbles. Fan can blow bubbles of such a huge size that they will fit in 200 people. ■

October-December 2015 CAPITAL IDEAS 93 FOOD&DRINK New Year's table: delicious, spectacular & exciting! The most beloved festivity in this country is coming up soon - New Year’s Eve! Where do we ring the New Year in, where to raise a toast under the chiming clock? The editorial team of Capital Ideas did your work for you and put together a selection of the best banquet halls in Moscow, where you’re guaranteed to have an excellent time!

A complex with an exclusive concept. There are five independent spaces in one build- SOHO ROOMS ing that can operate in standalone mode or easily become one: PoolTerrace – the only terrace in the center of Moscow with panoramic views and a roof- top pool. The interior design is reminiscent of luxury penthouses. The terrace is covered with a huge dome that allows guests to enjoy the atmosphere of year-round summer. GardenRoom – an open-air summer garden, drowning in tropical foliage, with sofas, sun loungers and a bar in Balinese style. The perfect place to organize small events in the format of a cocktail party as well as a great lounge-area for any celebration at PoolTerrace. Capacity: 300 persons, seating 100 people. DiscoRoom – the epicenter of night life in the capital. The most well-known concert hall, which has established itself as the top-level venue in the last 6 years. This is a space that provides optimal opportunities for a celebration banquet. Capacity: 500 persons, seating from 80 to 130 people. Address: Savvinskaya emb., 12/8 DiningRoom – restaurant that occupies the first and second floors of SOHO ROOMS. Tel .: +7 495 988 74 74, +7 495 988 74 44 The most demanding connoisseurs of culinary delights and tasteful atmosphere as Website: http://sohorooms.com well as lovers of fun and social parties have become regulars here. This place is ideal for banquets. It is possible to transform the room for the most comfortable accom- modation of guests. Capacity: 150 people. BarRoom is located on the ground floor of SOHO ROOMS. This is where the fresh- est music from global dancefloors plays. A lively, dynamic space with stained-glass panoramic windows and high ceilings is decorated in the style of a luxury London loft. Capacity: 200 persons, seating 50 people.

ICON – restaurant and concert venue The project, which was opened on the site of the legendary club "Rai", combines the capacity of a bright, trendy nightclub and stylish premium level banquet hall! This place is perfect for organizing a brilliant, stylish New Year. It offers a ballroom premium area of 3500 m² with extensive zoning. The geometry of the space is universal and can be adapted to banquets of 100 to 600 persons, and events in buffet format of up to 2000 people. It offers its own banquet service, which can satisfy even the most refined culinary tastes. The total area of the entertainment space complex includes zones that are different in the entourage, yet organically connected in the architecture and the definition of the format of the guest areas: ICON Bar, ICON Club, ICON Hall. Address: Bolotnaya Naberezhnaya 9/1. Booking of tables and tickets: Phone: +7 495 256 49 44. Corporate events: 7 495 256 30 01. Website: http://iconclub.ru/o-klube/icon-hall/

94 CAPITAL IDEAS October-December 2015 Arkady Novikov’s project takes up a few buildings of a city estate built in XVIII-XIX c. A three-story house is entirely occupied by a restaurant, and there are not only large Gusyatnikoff halls, but also a suite of separate study rooms with unique interiors and individuality. The guests are greeted in a classical billiard & cigar room, a hookah room in a Moroccan style. Going up the grand staircase past the gallery with portraits of eminent merchants of the past centuries, you feel an invisible connection to the older times and find yourself in a mirrored ballroom with a designer chandelier in the Empire style, glittering gilded candlesticks and crystals. Second floor is a series of separate rooms, each of which has its own name and interior: "Fireplace" (20-25 persons), "Hardwood" (6-8 persons), and children’s room (15-20 people). In the main "mirror" hall (70 persons) one can feel the grandeur of aristocratic furniture. All rooms connect with each other, which is very convenient when you close the restaurant for a banquet. There are special banquet and buffet menus. Auteur cake handmade by the pastry chef will be a wonderful addition to the banquet. Banquets are organized in accordance with individual scenarios. Address: A. Solzhenitsyn st., 2a. Tel .: +7 495 632 75 58, +7 926 533 44 56. Website: http://gusyatnikoff.ru

Here you can celebrate New Year spectacularly and tastefully. The building of the Central Moscow Hippodrome has two banquet rooms: "Royal" (up to 300 pers.) RoyalHall banquet hall And "Collonade" (150 pers.), both executed in the style of a classical palace. Stately columns and sweeping staircases transport you to the XIX century. This is where your New Year's corporate party will be served by the excellent team working at the establishment, in the festive atmosphere of luxury rooms. Convenient parking for transport in the immediate vicinity of the entrance is one of the many advantages that the ladies, dressed in high heels for the celebration, will appreciate. A celebration spent in a place with centuries of history, will be remembered for good service, delicious food and luxurious interior.

Address: Begovaya Str., 22. Tel .: +7 495 646 82 11 Website: http://www.royalhall.ru

It is hard to imagine a more Italian restaurant than "Piazza Rossa," which is located in the heart of Moscow, at the intersection of Mokhovaya and Tverskaya. Restau- Piazza Rossa rant Red Square – so translates the name of the "Piazza Rossa" – is a cozy island in the center of Moscow. In this restaurant, New Year's banquet will be remembered not only for delicious dishes and wines from the best grapes grown on plantations in France and Italy, but also its view of Red Square, St. Basil's Cathedral, Alexander Gar- dens, and Manezh from the windows of the big hall. Tasty, bright, interesting, luxurious – the best combination for people who like to celebrate in the heart of Moscow in a beautiful historic place.

Address: Mokhovaya st., 15/1, bld. 1, hotel "National", 2nd floor. Phone +7 495 258 70 68 Website: http://piazza-rossa.ru

"Shuvalov” banquet hall This VIP banquet hall is named after the favorite of Empress Elizabeth II, Shuvalov. It is located on Mokhovaya near the Alexander Gardens in the heart of Moscow. The banquet hall is decorated in the style of Elizabethan era, where, together with the pomp and luxury, there is much of the finesse of this XVIII style. Palace style interior of the Czars’ banquet hall, the style of Historicism stresses the elite nature of the room and gives a special flair of elegance to every celebration. Capacity for banquet seating is up to 70 people, buffet style – up to 80 persons. Address: Mokhovaya st., 11, bld. 1 Tel .: +7 495 961 53 95 Website: http://www.shuvalovskyholl.ru

October-December 2015 CAPITAL IDEAS 95 FOOD&DRINK

The place that will turn any event into an unforgettable experience. There are several Surikov Hall banquet rooms: "Golden Hall" – the name is no accident: it is made in the style of the late Renais- sance, which is characterized by rich, artful decorations. The hall can host events of any size – from large-scale celebrations for several hundred guests to theatrical performances or concerts. Dance events of in club style would also fit in well: luxury decoration coupled with superb sound and lighting equipment will make such a party the big event on New Year's Eve. Capacity: Up to 600 guests for a banquet, up to 1200 guests for buffet. "Silver Hall" is suitable for a friendly warm welcome drink, as well as stand-alone events, be it a sophisticated social or a cozy family one. A unique feature of the circu- lar stage is a waterfall, which can be decorated with colorful lights. The bar counter is located in front of the lobby: it is convenient for meeting guests and comfortable. Capacity: banquet – up to 300 guests, buffet – up to 600 guests. Address: Vyatskaya Str. 41a "Mirror Hall" is made in the style of the Renaissance – it’s the ideal place for private Tel .: +7 495 923 78 23, +7 495 500 60 30 events with a small number of guests. The design of the room has large mirrors: a sig- Website: http://thehall.ru/ru/ nature feature of this decorative style. The room can be used as a VIP-area of the "Golden Hall". Capacity: Banquet: 20 to 100 guests, buffet: up to 150 guests.

"Champagne” banquet restaurant

As you know, champagne is sparkling wine, whose birthplace is the province of Champagne, a historical region in north-eastern France. This restaurant was named in honor of the region's famous wine-making tradition, and is located in Moscow at the "Kutuzov Riviera." It’s hard to find such authentic French culture and aesthetics elsewhere in the Russian capital. The atmosphere is created with genuine antique interior elements, specially brought from France. The restaurant's wine list has more than 15 varieties of sparkling wines. The menu is full gastronomic delights. Where, if not in the restaurant "Champagne" can one afford a little holiday or celebration of an important life event? After all, champagne has traditionally long been a symbol of triumph and celebration, revelry and good cheer, friendly smiles and pleasant conversation, style, and prestige, elegance and refinement, good luck and success. All these words fully characterize the atmosphere in "Champagne" as well as its visitors. Address: Nezhinskaya Str., 1, Building 2 Book table: +7 495 647 13 15 (RC "Kutuzov Riviera") Website: http://www.champagnerest.ru Banqueting: +7 985 773 09 27

"Podmoskovnye vechera" This is the first restaurant that opened on Rublevo-Uspensky highway, at its heart – the village of Zhukovka. The kitchen is the domain of Antonio Mellino, the legendary Italian chef of QuattroPassi, located on the Amalfi Coast near Naples, a Michelin star restaurant. In winter, you can warm up at the restaurant on the big couches by the fireplace. And spacious, comfortable rooms are an ideal venue for banquets and celebrations of Christmas. The real discovery for the discerning will be the huge wine cellar, where a collection of wines from all over the world is kept. The youngest visitors of the restaurant are not left without attention too – especially for them there is a spacious children's room, where the company's events team and the children can have fun together. Capacity: Hall on 1st floor – up to 130 guests Address: village Zhukovka, Rublevo-Uspenskoe rd, 205 (+ summer terrace), hall on 2nd floor – up to 70 guests (+ summer terrace), wine cel- Tel .: +7 495 635 50 30 +7 495 661 69 63 lar – up to 50 guests. Website: http://www.pvechera.ru

96 CAPITAL IDEAS October-December 2015