The Old Gets Older, and the New Grows Russian Proverb

STRATEGIES FOR BUSINESS IN MOSCOW

The old gets older, and the new grows Russian proverb

A PROPOS

It’s difficult to find a city in the world that’s developing as In other words, we don’t know what would have hap- quickly as Moscow right now. It seems that it’s changing for pened to Khrushchyovkas in the future had the brave and the better every 24 hours. Every day there is something new grandiose renovation program not been approved last year. in the Russian capital: a new metro station opens, a new Just think: after it’s complete, people who currently live in road is being built, a new cafe or concert hall… It’s almost 350,000 apartments will be relocated to new, comfortable, like no change comes as a surprise anymore. At least that’s environmentally friendly housing. what everybody thought until last summer — until Sergey But this program will entail more than just the construction Sobyanin approved the renovation program on August 1, of new homes. It will also create an appealing, high-quality 2017. According to the program, over 5,000 residential urban environment in the renovated districts. buildings will be demolished within the next fifteen years. This number is shocking, considering that in most countries The scope of the renovation program is so broad that it will demolishing just one building would be a problem. require investments that, according to various estimates, may amount to $50 billion. It’s not a small sum of money. The project concerns old residential buildings — the Can foreign investors invest in this program? This question is so-called “Khrushchyovkas.” The buildings got this name worth asking. The thing is that for some time, Tverskaya 13 because most of them were constructed during the era of wasn’t considering foreign investors for the program. Offi- Nikita Khrushchev, the former leader of the USSR. These cials said that Moscow doesn’t plan on working with foreign five-story houses were erected quickly in order to resolve construction companies on the renovation program, since the housing crisis that transpired because people started they didn’t see much sense in having foreigners participate. moving from villages to quickly-developing industrial cit- But seven months later, they changed their perspective. ies. It was a good idea. Plus, the Khrushchyovkas were a temporary solution, not intended to last longer than 25 Even last summer, Sergey Sobyanin used his Twitter account years. Nikita Khrushchev was certain that communism will to announce an International competition for the develop- have been built in the USSR by 1980, and people would be ment of projects for districts under renovation, inviting moving into beautiful, modern buildings. As we all know, Europe’s best architecture firms to participate. this didn’t happen. Communism was not built by 1980, and it wasn’t built any time after that either. In Russia, the idea of communism collapsed, and the Khrushchyovkas started to go along with it. According to experts, many of them are in serious disrepair. Since we can’t fly to space from them, Sergo Kukhianidze like in Ilya Kabakov’s famous installation “The Man Who Editor in Chief Flew Into Space From His Apartment,” we had to think of something quickly! [email protected] CAPITAL IDEAS Founder: Department for External Economic Moscow official and International Relations of the Government of Moscow Address: 125009, Moscow, Voznesensky Pereylok, 22 Ph: +7 (495) 633-68-66, Fax: +7 (495) 633-68-65 Sergey Sobyanin elected Mayor E-mail: [email protected] of Moscow https://www.mos.ru/dvms Sergey Sobyanin took office as Mayor of Moscow. Publisher: National Review Ltd The inauguration took place on September 18, CEO – Sergei Oposhnyanskiy in the recently opened Zaryadye concert hall Phone.: +7 (495) 784-69-71 E-mail: [email protected] 6-7 CAPITAL IDEAS STRATEGIES FOR BUSINESS IN MOSCOW

Editorial staff: 7-17 Editor-in-chief – Sergo Kukhianidze Production crew of the edition: Elena Egorova (deputy editor-in-chief), Moscow official Gennady Charodeev, Vladimir Dolmatov, Marina Ogorodnikova, Anastassia Paloni, Vladimir Smelov, Dmitry Sokolov, Marina Urshina, Anna Vavilina Days of Moscow Culture in Italy Consulting – Evgeny Khokhlov Days of Moscow Culture took place across three Italian Design – Robert Saifulin cities — Merano, Florence and Bari. Photo editor – Victoriya Oposhnyanskaya Page layout – Alexander Saifulin Assistant – Nadezhda Ratanova It’s Time for Moscow Editorial contacts The 6th international forum for Russian-language web: capitalideas.moscow foreign media “It’s Time for Moscow” took place in the e-mail: [email protected] Russian capital. The forum was organized by the Moscow f: capital.ideas.moscow Department of External Economic and International Relations. This year, the main topic of the forum was With assistance of Moscow Center for International Cooperation “Smart Cities.” Address: 105005, 68/8, build.1, Baumanskaya str., Moscow, Russia Phone/fax +7 (499) 267-46-56, http://www.mcms.ru/ Moscow Days in Belgium Distribution – "Trans-Media" Ltd Acknowledgements to: The Belgian cities of Brussels, Liege, and Antwerp hosted a PHOTO – www.mos.ru, www.dvms.mos.ru, www.stroi.mos.ru, ITAR TASS Agency, RIA- series of events within the scope of Moscow Days: economic Novosti, Getty Images Russia, companies and organizations, represented in the issue. forums, cultural events, and meetings with compatriots. If you wish to get new issues of Capital Ideas, please, apply to: [email protected]. The magazine is registered with at the Federal Authority of Legislative Control Moscow is 871 years old! in Mass Media and Cultural Heritage Protection. Media registration certificate 871 is quite the number! But Moscow is looking better and ФС77-53716, issued April 26, 2013. All reproduction permitted only with the Editor’s permission and reference to younger, holding interesting and colorful birthday celebrations ‘Capital Ideas’. every year. Distributed free of charge Published with support from the Department for External Economic and International Relations of the Government of Moscow Circulation : 7000 Signed into print 01. 10. 2018 Cover Story Face To Face Moscow In Words Renovations: Alexey Gromyko: 40-41 an unparalleled Those who are afraid of Nothing Ventured construction project has today’s Russia need to In the spirit of traditional begun in Moscow see a psychologist friendship and mutual A year ago, a new word was added to our everyday “Russia needs to adapt to the current reality vocabulary in Moscow — renovations. Right now, and not think about when the sanctions will understanding it’s one of the most popular words in the city. But be lifted,” said Alexey Gromyko, Director of the The 23rd session of the Russia-India Inter- “renovations” is more than just a new word for the Institute of Europe and Corresponding Member Governmental Commission on Trade, Economic, city residents. It’s a massive project that has never of the Russian Academy of Sciences (RAS), Scientific, Technical and Cultural Cooperation been attempted in any country in the world. during his interview with Capital Ideas. was held in the middle of September in Moscow

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26-30 Face to Face Alexey Fursin: Right now, it’s easier to do business in Moscow than in Rome or Brussels “Boosting the capital’s investment appeal is a priority for the Moscow Government. The city is working on providing comfortable conditions for doing business and attracting investments to various spheres of the economy,” head of the Moscow Department of Science, Industrial Policy, and Entrepreneurship Alexey Fursin said in an exclusive interview with Capital Ideas.

32-35 The great power of football What the World Cup gave Moscow The FIFA World Cup was a real triumph, and Muscovites will remember this event forever. And not just in their minds and hearts. After the World Cup, city residents will be left with world- class stadiums, excellent football fields, certified hotels, renovated airports, high-speed Internet...

October-December 2018 CAPITAL IDEAS 3 It’s Time for Moscow Ewald König: Europeans have to define Nothing Ventured relations with Russia themselves Michael Zipfel: Retail business Ewald König is a political scientist, writer, journalist, and TV host who has been living and working in Germany since will develop rapidly in Russia 1985. He has written several books (including one about Selgros Group is an international retail chain that has been Federal Chancellor Angela Merkel), is the Editor in Chief at operating on the Russian market since 2008. Over the past 10 korrespondenten.tv, and was a guest at the International Media years spent on the Russian market, the company has shown Conference “It’s Time for Moscow” at the end of July. He shared good results and is expanding according to plan. Michael his thoughts and impressions of the Russian Capital in an Zipfel, who has been the CEO of Selgros Cash & Carry Russia, interview with Capital Ideas. talked to Capital Ideas about his time in Russia.

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48-50 66-69 It’s Time for Moscow Nothing Ventured Mathias von Hofen: The Russian market has a lot of There’s a lot to learn from Moscow potential All of the publications that independent journalist Mathias von Hofen writes The name KUKA Robotics, which is headquartered in Augsburg, the for wouldn’t be able to fit even on an unusually large professional card. capital of Swabia located in the south-west of Bavaria, speaks for There is Wirtschaftswoche, Bayerische Staatszeitung, Wirtschaftszeitung, itself. KUKA is one of the world’s leading robotics and automation Nürnberger Nachrichten and Weserkurier, along with several online media technology companies, with an annual turnover of about 3 billion outlets and local political science centers. At the “It’s Time for Moscow” euros. The company offers the full range of services, from individual international media conference in Russia, he represented Wirtschaftszei- robots to automated production lines. Dmitry Kapishnikov, the tung — a local monthly financial publication for Eastern Bavaria. CEO of KUKA Robotics RUS, told us more about the company in an 52-57 interview with Capital Ideas. What’s New 70-72 58-61 Nothing Ventured Nothing Ventured Andrea Impero: Zou Gang: Ancient Moscow looks Moscow is the best city to live in younger Andre Impero has been working in the kitchen since he was 14. By age 27, he has managed to show off his culinary talent in Rome, In March 2018, the Chinese company Baosteel Europe GmbH opened London, and Vladivostok. The young chef’s ambition and ability an office in Moscow, putting Ms. Zou Gang in charge. She is not just a to work brought him to Moscow. business woman but also, according to her male colleague, is very smart and beautiful. Zou Gang loves Moscow and speaks excellent Russian.

4 CAPITAL IDEAS October-December 2018 Life&Culture Between past and future Renovations, German-style Autumn Marathon: Moscow has started to implement a large- from Bach to Julio Iglesias scale renovation program for the so-called An important event has taken place in Moscow’s “Khrushchyovkas,” the construction of which began cultural life — this fall marked the opening of back in the USSR in the 1950s. But these residential the unique Zaryadye concert hall. On City Day buildings weren’t only constructed in the USSR. (September 8), the hall’s audience members heard a They were built in other socialist countries as well. magnificent concert by the Mariinsky Theater Sym- After the fall of the Berlin wall, a lot former allies of phony Orchestra, led by conductor Valery Gergiev. the USSR launched state programs to renovate a The technology this concert venue is equipped with modernize the socialist panel heritage. is being used for the first time in Russia. Moscow Vocabulary 74-76 80- 85 90-91

77 86-89 92-96 Letters To The Editor Travel&Leisure Food&Drink Communication Tips For fans of steam rooms A flavor rainbow for Doing Business in and bath brooms “Flavorful, delicious, positive” — these words are a great summary of everything about Muscovites have loved to wash and take Russia the restaurant DANTE Kitchen + Bar, which steam baths in city banyas for a very long opened last spring in the center of Moscow, 78-79 time, and nothing could ever stop them — on Kuznetsky Most 3. Its cozy interior is not mass construction projects, and not the This&That pleasing to the eye, and the unusual food is a widespread emergence of personal bathrooms treat for everyone. in people’s homes. Capital Ideas has put World Cup: stereotypes together an overview of Moscow’s historical take a big hit banyas that you can still visit today. The World Cup opened the eyes of millions of foreigners when it comes to Russians. They understood that Russians have nothing in common with the scary images painted by unscrupulous media in the West. A lot of myths have finally been dispelled. Russians are welcoming and friendly people. But what do Russians think of foreigners?

October-December 2018 CAPITAL IDEAS 5 MOSCOW OFFICIAL

Sergey Sobyanin elected Mayor of Moscow Sergey Sobyanin took office as Mayor of Moscow. The inauguration took place on September 18, in the recently opened Zaryadye concert hall.

hairman of the Election Committee of the in education, and establish a world-class healthcare City of Moscow Valentin Gorbunov presented system that works for the benefit of all citizens in Sergey Sobyanin with an election certificate our country,” he said, “Together with the Ministry of and the title of Mayor of Moscow — a medal- Transportation, Russian Railways, and the Moscow lionC on a chain with the image of the city’s patron Oblast administration, Moscow must ensure the Saint George the Victorious slaying a serpent with effective implementation of major transportation his spear. “You have a lot of work to do for Moscow projects. This includes the metro, Moscow Central and Muscovites,” he declared. Diameters, the Central Ring Road, and the reconstruction of outbound highways. This is about major President Vladimir Putin congratulated Sergey improvements to the infrastructure and logistics of Sobyanin with the election results. He wished the the Moscow agglomeration.” Mayor of Moscow success in his work for the city residents and the country as a whole: “The city Sergey Sobyanin thanked the President and the Gov- residents offered you support, trust, and have ap- ernment of the Russian Federation for the support, preciated your ability to work with great impact, to and thanked Muscovites for placing their trust in keep your promises, and to stick to your word. Five him. years ago we presented a large-scale program for the city’s development. The bar was set very high, “This is a sign of appreciation of the difficult, chal- and you’ve proven that you are capable of solv- lenging path that we’ve traversed over the past few ing the most complex tasks and achieving positive years. It’s an appreciation of the programs that we’ve changes.” implemented with millions of Muscovites — changes in the spheres of education, healthcare, transport, Vladimir Putin also talked about the major con- public spaces, city improvements, safety, and the tributions the capital has made to solving national economy. And of course, it’s an expression of hope problems and asked the mayor to continue doing and confidence in the fact that positive changes will this work. “Moscow must consolidate its positions continue to happen in our city,” he said. The Mayor of Moscow pointed out that the capital still has many challenges, and so the city government has a lot to work on. “During the election campaign, we collected hundreds of mandates from Muscovites. And I promise that not a single of these ideas that we came up with during the campaign will be forgotten. We will incorporate all of them into our work.”

Proposals from other candidates and the wishes of those who voted for them will also be taken into account. “I want to assure Moscow residents that I will do everything in my power to live up to the expectations they’ve expressed by putting their trust in me. We’ll work together for the benefit of Moscow and for the benefit of our country,” Sergey Sobyanin said.

He also expressed gratitude to his confidants, volun- A total of 2,259,079 city residents voted in the elec- teers, and everybody who played an active role in the tions. 70.17% of voters — the absolute majority — election campaign. elected Sergey Sobyanin.■

The editorial staff of Capital Ideas would like to congratulate Sergey Sobyanin with his election to the office of the Mayor of Moscow. We wish him success in his work for the benefit of city residents. Days of Moscow Culture in Italy

Days of Moscow Culture, organized by the Moscow Department of External Economic and International Relations, took place in Italy on September 18-25. The main events took place across three Italian cities — Merano, Florence and Bari.

uring the visit, the Moscow delegation took Igor Karavayev, Russia’s Trade Representative in part in the 4th Russian-Italian seminar “Rus- Italy, said that Italy is once again in the top 5 big- sia and Italy: the art of innovation,” which took gest foreign trade partners for Russia. “It’s not just place in the city of Bolzano. During the ses- the geographic distribution of Russian exports that Dsions, participants talked about trade and economic changed. Russia’s leading trade partners in the Eu- relations between the two countries, covering the ropean Union changed as well. Germany, of course, subject of innovative cities with “smart” infrastructure. is in first place, but Italy isn’t lagging far behind in terms of trade turnover volumes. Our government is Ambassador of the Russian Federation in Italy Sergei offering an unprecedented support program for Ital- Razov noted trade turnover between Russia and Italy ian enterprises operating in Russia,” Mr. Karavayev grew by 11% in the first half of 2018. Cultural coopera- explained. tion between the two countries is not lagging behind either. This year, over 200 cultural events have been Antonio Fallico, Chairman of the Board of Directors planned in Italy within the scope of “Russian Seasons.” of Intesa Bank and President of the “Conoscere Eur- “The program will be held in over 70 Italian cities, and asia” Association called on the political community will include performances by the best opera, ballet, to abandon the sanctions. “The sanctions affect the and drama ensembles," the ambassador said. overall climate, but don’t limit us,” he said. ■

October-December 2018 CAPITAL IDEAS 7 MOSCOW OFFICIAL

On July 23-25, the 6th international forum for Russian- language foreign media “It’s Time for Moscow” took place in the Russian capital. The forum was organized by the Moscow Department of External Economic and International Relations. This year, the main topic of the forum was “Smart Cities.” It’s Time for Moscow Over 100 journalists from 34 countries took part in the forum.

ispelling myths and breaking stereotypes car sharing system, as well initiatives aimed at improv- is tough but important and noble work, ing the spaces near the Moscow River. He pointed out which many Russian-language media do that the implementation of projects like “Safe City,” an honorably. The regular international forum, intelligent transportation system, and the Unified Medi- which“D brings together journalists, experts, and business cal Information Analysis System (UMIAS), the Moscow and government representatives, facilitates this work as electronic school got a lot of positive feedback from city well,” the Mayor of Moscow Sergey Sobyanin said during residents and experts. his opening address to the participants of the It’s Time for Moscow forum. Thanks to the establishment of modern infrastructure and a favorable business climate, Moscow was able to Moscow is the economic engine for Russia’s develop- move up to top positions in global ratings across indica- ment and a rapidly growing macroeconomic region, Min- tors like creation of a quality urban environment, human ister of the Moscow Government and head of the Mos- capital, and digital economy in just a few years. Accord- cow Department of External Economic and International ing to Mr. Cheremin, the city is also in the lead among Relations Sergey Cheremin said in his speech during the Russian regions when it comes to public-private part- opening of the forum. “In just a few years, we have moved nership projects, in the lead among Western European up almost 100 places in the ratings for the ‘Business’ cat- cities in terms of economic and infrastructure develop- egory and are currently in 35th place. We have very ambi- ment indicators, and has taken the lead globally in terms tious plans for the near future,” he said, “As of today, the of paid parking space organization. capital has a well-balanced and nearly deficit-free budget, which is really uncommon for major cities. Moscow Government Minister and Head of the Depart- ment of Information Technology Artem Ermolaev talked By the end of 2017, direct accumulated foreign invest- to the forum participants about the introduction of new ment in the city's economy amounted to about 280 bil- information services for Muscovites. He noted that the lion US dollars. The number of foreign companies in the city has reconstructed over 300 parks, which are now city continues to grow. And this growth isn’t limited to equipped with Wi-Fi. “There are over 2,000 free wire- just European enterprises, but also companies from the less internet hotspots in Moscow, there is free internet United States. Countries that introduced anti-Russian in all public transportation in Moscow, and mobile inter- sanctions in 2014 are also in the lead in terms of invest- net access is eight times cheaper in Moscow than it is in ment volumes in Moscow’s economy. According to New York,” the Minister said. Mr. Cheremin, this includes Germany ($ 8.8 billion of accumulated investment), France ($ 4.6 billion) and Italy Mr. Ermolaev also talked about the process of establish- ($ 3.6 billion). ing car sharing and taxi services in Moscow. All social facilities in the city have been digitized as well. “Today, Sergey Cheremin highlighted the importance of city Moscow is in first place in the world in terms of devel- projects, including “My City,” “A Million Trees,” the “Ac- oping e-services for business and city residents, ahead tive Citizen” portal, Zaryadye Park, the development of a of London, New York, and Paris. Digital medical services, artificial intelligence technologies, and blockchain are tation sector plays a major role in the city’s develop- developing rapidly,” he pointed out. According to him, ment. Over the past few years, the city has managed to digital technologies will help increase transparency in build about 700 kilometers of highways and complex many socio-economic processes and create and envi- transport interchanges, as well as launch an intelligent ronment of equal opportunity. transport management system. In the future, another 200 kilometers of roads will be built, and the city also Alexey Pogonin, Deputy Head of the Moscow Health- plans to make improvements to the intelligent trans- care Department, spoke about the development of the port management and telemonitoring system. Before Unified Medical Information Analysis System (UMIAS) in 2020, private investment volumes into the city’s trans- the capital. He pointed out that the concept of a “Smart port infrastructure are expected to reach $18.2 billion. City” includes the use of digital technologies in the sphere This will allow the city to build 255 major interchange of diagnostics, treatment, and services for patients. Cur- hubs that will bring public and private transport to- rently, 98% of patients can get an appointment with a gether into a single system. local doctor or pediatrician for today or tomorrow — a major improvement that was in many ways possible The second session of the forum, which brought to- thanks to the UMIAS. Currently, over 7 million Musco- gether representatives of Russian and foreign busi- vites already have electronic medical records. “The use ness circles, was dedicated to the issues of developing of telemedicine, computer vision for medicine, and digi- international business in Moscow and informatization. tal education is growing in Moscow. All of this helps us President of the American Chamber of Commerce Alexis diagnose life-threatening diseases in early stages and Rodzianko (who talked about US companies working It’s Time for Moscow select proper treatments,” Mr. Pogodin said. in Russia), Deputy Director of the Italian Foreign Trade Institute Giuseppe Russo, representative of The Boston Moscow Government Minister and Head of the Depart- Consulting Group Konstantin Polunin (who gave a re- ment of Department of Regional Security and Anti- port about Moscow’s competitive positions in the con- Corruption Activities Vladimir Chernikov talked about text of international business development), Managing the multi-level, multipurpose security system that was Director of Kroll Russia and CIS Alessandro Volchich, and set up in Moscow during the FIFA World Cup. “Today, Vice President of AccorHotels East Alistair Robertson- Moscow meets all international security standards. The Watts spoke at the session. championship was a sort of test for us and a criteria used to assess the quality of our work. Over 100,000 people Roundtable discussions with the participation of Edi- came to the fan zone, including people with babies. tors-in-Chief from leading Russian-language foreign Everybody understood that the situation is under total media were held during the forum. During the discus- control, and we didn’t let the fans down,” he said. sions, participants talked about about various functions of Russian-language press abroad: objective and bal- The Head of the Moscow Department of Sports and anced coverage of socio-political events, the creation of Tourism Nikolay Gulyayev talked to the participants a unified Russian-language information space, and the about the results of the World Cup. He called the cham- preservation and promotion of the Russian language. pionship a success and said that the fans brought an ad- The issue of what role the Russian youth can play in ditional 14.8 billion rubles to the city’s budget. consolidating the Russian speaking world.

Alexander Polyakov, CEO of the State Unitary Enter- Forum participants visited the VDNKh “Smart City” pa- prise “MosTransProekt,” talked about transportation vilion, where they took part in the round table, as well as logistics during the World Cup, as well as about the the “Interactive Model of Moscow,” “Space,” and “Zarya- development of Moscow’s transport infrastructure dye Park” pavilions. (Interviews with some of the partici- within the “Smart City” context. Today, the transpor- pants of the forum read on pages 44-50 ). ■

October-December 2018 CAPITAL IDEAS 9 MOSCOW OFFICIAL

Moscow Days in Belgium On June 25-30, the Belgian cities of Brussels, Liege, and Antwerp hosted a series of events within the scope of Moscow Days: economic forums, cultural events, and meetings with compatriots.

he extensive event program was aimed at serve as a kind of platform for establishing mutually strengthening cooperation and exchanging beneficial relations,” the minister said. experience in the spheres of the economy and social and cultural development. Moscow was Ambassador of the Russian Federation to the King- Trepresented by a delegation headed up by Minister of dom of Belgium Alexander Tokovinin, Director Gen- the Moscow Government and Head of the Depart- eral of the Walloon Export and Foreign Investment ment for External Economic Affairs and International Agency Chantal De Bleu, Trade Representative of the Relations Sergey Cheremin. Russian Federation in Belgium Anatoly Gorshkov, General Manager of the Belgian-Luxembourg Cham- The business program included negotiations with ber of Commerce and Industry for Russia and Belarus representatives of city administrations of Liege, Brus- Arkady Arianoff, and other officials took part in the sels, Antwerp, and Luxembourg, roundtable discus- conference. sions that addressed the issues of providing support for and cooperating with compatriots, along with In the first three months of this year, the increase meetings on the topics of healthcare and social and in trade turnover between Belgium and the Russian city development, which included visits to specialized federation amounted to 30% compared to the same infrastructure facilities. period of time last year, Mr. Tokovinin said during the discussion. Chantal De Bleu talked about the incred- An investment conference and presentation of the ible positive changes that have happened recently in Russian capital’s economic potential took place with- the transportation sector of the Russian capital. in the scope of Moscow Days in Belgium and Luxem- bourg. “For the first time, Moscow Days are being held Within the scope of Moscow Days in Belgium, a work- in Belgium, in several cities. This is a great honor for ing meeting was held between the Moscow Govern- us. There are hundreds of Belgian enterprises in Rus- ment delegation and Archbishop Simon of Brussels and sia, and in Moscow as well. We have very close coop- Belgium. The parties discussed possible options for sup- eration across various sectors,” Sergey Cheremin said porting the Russian language and culture abroad. On during his speech at the forum. A five-year program behalf of the Government of Moscow, the head of the of cooperation with Antwerp was recently signed in Moscow delegation Sergey Cheremin presented to the Moscow, and the city also signed cooperation agree- Orthodox community church service covers for various ments with Liege. “We hope that this conference will holidays and an icon of St. John of Shanghai.■ around the world

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

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

Write to Sergo Kukhianidze at [email protected] MOSCOW OFFICIAL Moscow is 871 years old!

871 is quite the number! But Moscow is looking better and younger, holding interesting and colorful birthday celebrations every year.

City Day is one of the most festive weekends in the city. This year, it took place on September 8-9. The city’s parks, streets, and squares were filled with music and dancing, drawing people in with plays and festivals, contests and athletic competitions, outdoor markets, picnics and open-air restaurants where guests could enjoy freshly made food and 160 different kinds of ice cream.

12 CAPITAL IDEAS October-December 2018 ФИРМЕННЫЙ СТИЛЬ 1.1 СТИЛЕОБРАЗУЮЩИЕ ЭЛЕМЕНТЫ

ЛОГОТИП

Sergey Sobyanin wished Moscow residents happy City Day in Telegram, since there were elections in Russia during this time. Sergey Sobyanin was running for Mayor of Moscow and could not take part in public events on these days.

Here is the message from Sergey Sobyanin, Mayor of Moscow:

“Our beloved Moscow is 871 years old. It has of the first two Moscow central diameters of the been almost nine centuries, which encompass overground metro, which will connect Moscow to the transformation of the border fortress on the suburbs, is under way. Borovitsky hill into a global metropolis. The capital A unique building of the Morozov hospital, which of Russia is proud of its past, appreciates the has the best conditions for treating children and present, and cherishes the future. And future is accommodations for parents, has been established. created today. A new international medical cluster has started In 2018, Moscow continued the largest operating as well. Doctors have started to accept infrastructure development project in the world the first patients in the diagnostics center that in order to make the city more beautiful and houses the Israeli Hadassah clinic. Thousands of comfortable for Moscow residents. We opened children went to new kindergartens and schools in the first section of the Large Circle Line. The Moscow. metro was extended to the “Seligerskaya” stop, We’re proud of our students’ brilliant stretching to Solntsevo, Novo-Peredelkino, accomplishments at student olympiads. We’re Rasskazovka, and soon to the center of Kosino and happy about VDNKh’s revival with historical 4 Nekrasovka. Dozens of other stations are under pavilions and fountains. And we’re waiting in construction. By 2023, 90% of Moscow residents anticipation for the opening of the Zaryadye will live within walking distance of the metro. concert hall — a wonderful present to Muscovites for City Day. Three new sections were added to the largest city highway — the North-East highway. Drivers have On September 8 and 9, traditional festivals, already had a chance to experience the benefits of concerts, and fireworks will take place in Moscow, the new Krylatsky Bridge over the Moscow River, and the metro will stay open all night. So come out along with a number of other road structures to the parks, the streets, the embankments, and that were completed this year. The construction squares of the best city in the world.”

October-December 2018 CAPITAL IDEAS 13 MOSCOW OFFICIAL

ity Day was celebrated for the first time in 1847 them to do good. I want to wish Muscovites happy in honor of Moscow’s 700-year anniversary. City Day! Good luck to you! I’d like to wish prosperity After this, the holiday was held intermittently to our beloved capital and, of course, all of Russia,” the and with huge breaks in between, mostly to President said. celebrate big anniversaries. Since 1997, City CDay has been celebrated in Moscow every year. At first, The President added that the name “Zaryadye” has it was held every first Saturday of September. But since been passed down through centuries and has inspired 2016, it’s sometimes moved to the second weekend to several generations. Musogorsky dedicated the over- avoid conflicts with mourning dates. ture “Dawn on the Moskva River” to this place. This composition, which reflected the rise and flourishing of The opening of a new concert hall at Zaryadye Park, Russia at the time, is what kicked off the concert today. which hosted a concert featuring the Russian Na- tional Orchestra with conductor Mikhail Pletnev and The city also held over 300 major events, includ- famous opera singers, was the main present for city ing on the site of the “Flower Jam” festival. There residents. The audience heard fragments from operas by Mussorgsky, Glinka, Rachmaninov, Tchaikovsky, Donizetti, and Bizet.

Guests included President Vladimir Putin, as well as Prime Minister Dmitry Medvedev. The President addressed the audience before the show:

“A world class concert venue like this could have only been made in a city that’s constantly developing and becoming more comfortable to live in every year. This hard work is, of course, not limited to the construction of separate, large, prominent structures like this. It’s happening everywhere: in every courtyard and building entrance, on the streets and squares, in clin- ics and schools, at new metro stations, and advanced technology parks. I sincerely want for the music that is performed in this magnificent hall to bring people together, filling them with moral energy and inspiring

14 CAPITAL IDEAS October-December 2018 were 160 concerts, 90 exhibitions, lectures and 80 museums in the city operated for free on City creative meetings, 100 workshops, and 200 char- Day. Among them were popular venues like Manege ity events were set up for Muscovites. People could Central Exhibition Hall, the Museum of Moscow, the watch the fireworks from 13 different locations in Darwin Museum, the Marina Tsvetayeva Museum, the city and 17 park locations. Tsvetnoy Boulevard Kolomenskoye Estate, and the Gilyarovsky Center. hosted a festival called “Dobraya Moskva.” Char- Memorial museums like the N.V. Gogol House and the ity foundations organized an exhibition-fair and Moscow State Museum of Sergei Yesenin, prepared talked about what they do. Moreover, the space tours of their exhibits as well. hosted creative and culinary workshops. The festival ended with a concert that included youth en- Over 880,000 Muscovites and tourists saw the main sembles. exhibitions and visited free tours organized by the capital’s museums. The Moscow State Integrated Luzhniki hosted a sports and music festival “Big Rap Art and Historical Architectural and Natural Land- 2018,” which was held for the eighth time. scape Museum-Reserve was the most popular —

October-December 2018 CAPITAL IDEAS 15 MOSCOW OFFICIAL

250,000 people visited the Kolomenskoye, Lyublino, cow. There were Taiwanese drummers, the French and Izmailovo Museum-Reserves. women’s wind orchestra, dancers from South Korea, and many others. The Tsaritsyno Museum-Reserve (over 240,000 visitors), Kuskovo Estate (over 55,000 visitors), the Mu- The sports program was just as interesting. The “Tra- seum of Moscow (over 40,000 visitors) and the Mu- pezia” arcade help ten acrobatic performances, and seum of Cosmonautics (over 16,000 visitors) were over 450 visitors participated in workshops. Skate- also very popular. boarders showed off 25,000 tricks on the “Bowl” skating platform. About 17,000 adults and children walked Over 150 free tours were set up for Muscovites on across a slackline, and 500 people did aerial yoga. September 8-9. The Moscow Government prepared maps with routes along the most interesting exhibi- Fans of classical music were in for a big treat. On tions in Moscow’s museums. People could choose be- September 8, the best classical music ensembles in tween three pedestrian routes — “Poets and Writers,” Moscow held a concert next to the Church of Christ “Architecture and Sculptures,” and “Artists, Compos- the Savior. The most famous compositions were per- ers, and Patrons.” formed by a symphony orchestra, and chorus ensembles presented a separate program. The large-scale City Day program unfolded out in the streets as well as inside museums. Tverskaya Street, The fireworks show was the culmination of the cel- which turned into a pedestrian area for the holiday, ebration. The fireworks in honor of City Day were set had plays about Moscow, a moto balloon show, acro- off across 30 different locations all over the city. The bat performances, and workshops people could par- launches fired dozens of thousands of times. ticipate in. The metro was open until 2.00am. In 24 hours, the Ensembles from France, Germany, and Spain staged Moscow metro and the Moscow Central Circle trans- spectacular performances with stunt shows and sur- ported over 5.7 million passengers. real costumes. Their performances were part of the “Golden Mask in the City” project. Over 1.8 million The stations located close to the center and next to the Muscovites and tourists took part in the celebrations festivities had the highest traffic volumes. Okhotny on the capital’s main street on September 8. Ryad, Kitai-Gorod, and Ploschad Revolutsii were the most in-demand. 93,800, 86,700, and 83,900 people Plays about Moscow were especially popular. Manege used them as entry points, respectively. Square hosted performances by actors who were part of the A.P. Chekhov International Theatre Festival. Because the metro and the Moscow Central Circle They gave the visitors a show of flying drummers and stayed open all night, over 135,000 people were able fantastic dance and music performances. Performers to get home late. Over 5,700 people worked to keep from other countries also brought their acts to Mos- the metro running. ■

16 CAPITAL IDEAS October-December 2018 HOLIDAY STATS: ⦁ 460 million rubles spent on holiday events ⦁ over 1.8 million people took part in the festivities on Tverskaya Street ⦁ 27 parks hosted City Day events ⦁ 2,000 City Day celebration sites ⦁ 80 museums and galleries were free for visitors ⦁ 470,000 guests visited cultural venues ⦁ over 5.7 million passengers used the metro and the MCC in 24 hours ⦁ 38,000 police workers were on duty during City Day ⦁ 150 ambulance brigades were on duty

⦁ 100 search and rescue workers were on duty

October-December 2018 CAPITAL IDEAS 17 COVER STORY Renovations: an unparalleled construction project has begun in Moscow

A year ago, a new word was added to our everyday vocabulary in Moscow — renovations. Right now, it’s one of the most popular words in the city. But “renovations” is more than just a new word for the city residents. It’s a massive project that has never been attempted in any country in the world.

t all began with an amendment to the law “On over 5,000 buildings were included in the program the status of the capital of the Russian Federa- approved by the capital’s mayor Sergey Sobyanin. tion,” which was signed by President Vladimir Most of them are 5-story buildings that were built Putin on July 1, 2017. This is how the renovation during the Khrushchev era. This is almost 70% of all program for Moscow’s residential buildings was buildings of this type in Moscow. After the program approved.I Then, Moscow residents voted on the pro- is complete, Muscovites will have new residential gram. After the results of the vote were tallied up, monolithic and panel buildings. The program entails the resettlement of over 350,000 apartment residents. To be exact, 5,171 buildings are The program entails currently included in the program. They are located in almost all districts in Moscow, including the city the resettlement of over Renovations: center — Arbat, Khamvoniki, and Zamoskvorechye. Kuzminki has the highest number of five-story buildings to be taken down. A total of 284 buildings will be 350,000 apartment residents an unparalleled construction demolished there. Sergey Sobyanin announced an international competition for the development of renovation projects on buildings are included in the his Twitter last summer: “We’re announcing an inter- 5,171 national contest for the development of pilot projects renovation program project has begun in Moscow for districts under renovation. We plan on working with the best architects,” Sobyanin wrote. He also announced that he has invited the British architecture firm Foster and Partners and the Swiss firm Herzog & de Meuron to take part in the competition. “Our goal keep up with demand, the temporary housing stayed is not to simply build new buildings, but to create a in place for much longer than expected. Unlike the high-quality, appealing urban atmosphere in the dis- brick buildings that were erected before Khrushchy- tricts under renovation,” the mayor said. ovkas, these buildings had smaller apartments. The architecture was functional and completely void of “architectural excesses” that were common to other The history of five-story buildings residential buildings in the city. At the same time, the Khrushchyovkas were in many ways better than The five-story buildings targeted by the renovation the multi-apartment wooden two-story houses that program are often called “Khrushchyovkas,” because were erected when Stalin was in power. most of them were built when Nikita Khrushchev was the leader of the USSR. They were first built in So why were the Khrushchyovkas built? The main Moscow in 1948. Interestingly, most Khrushchyovkas reason is that the city needed to quickly construct were built as temporary housing. However, because cheap housing in order to move people from villages the pace of residential building construction couldn’t into the city...

October-December 2018 CAPITAL IDEAS 19 COVER STORY

The residential buildings that will be constructed in New standards accordance with new standards will be more environmentally friendly than the old buildings, the capi- The Moscow government plans to complete the tal’s mayor Sergey Sobyanin said at the 2018 Moscow residential building renovation program in 2032, in Urban Forum. spite of the fact that the scope of the program has recently changed. Sergey Levkin, Head of the Depart- “We have new standards for residential building con- ment of Urban of Urban Planning Policy of Moscow, struction. We’ve banned construction in Moscow announced this date in an interview with the Mos- based on old projects. This means that the new build- cow Government Information Center website. “We ings will be 15-20-25% more environmentally friendly,” still think that the program can be implemented in Sobyanin said. The mayor pointed out that the new 15 years and completed by 2032,” he said, responding requirements for utility networks, for heat and elec- to a question about how much the scope of the pro- tricity, will have a direct impact on the environment. gram has recently changed. “Moreover, this entails joint programs with the Mos- cow region on the sorting, separate collection, and Mr. Levkin also said that new utility networks will be disposal of trash. All of this will seriously impact the built within the scope of the program as well. Because future and improve our city’s environment,” he point- of this, “clean” sites were specially selected for the ren- ed out. ovation project so that old utility networks don’t have to be transferred or reconstructed, and new ones can The construction plants that build residential hous- be built instead. Mr. levkin added that the old utility ing in Moscow have modernized their processes in infrastructure won’t be able to handle the necessary accordance with new requirements from the city volumes for districts under renovation. authorities. New types of panels that will enable the construction of modern, convenient, and appealing residential housing and the establishment of districts Sergey Levkin, Head of the Department of Urban of Urban with prominent, memorable architecture are already Planning Policy of Moscow: being produced in Moscow today.

“We still think that the program can be The ground floors of the new buildings will be used for public and commercial purposes. There will also implemented in 15 years and completed be separate entrances into residential and commer- by 2032” cial spaces. During the development of the new series of buildings, special attention was paid to sound insulation and thermal conductivity of the structures.

20 CAPITAL IDEAS October-December 2018 The new series of panel buildings will save residents districts with housing that’s in complete disrepair, we money on utility services as well. need renovations. And it’s best to address this problem systematically, in a planned manner, rather than wait for an emergency to happen before we relocate Absolute necessity the residents.”

“Why did you decide to demolish the five-story But a fair question comes up: there’s not much space buildings instead of renovating them? And what will for more construction projects in Moscow. Where will happen to these buildings if they’re not demolished?” the city find room to build more spacious housing that These are the questions the newspaper “Komso- the renovation program entails? molskaya Pravda” asked Sergey Sobyanin. Here is the mayor’s response: “The majority of five-story buildings have been out of date since the late 80s. The city tried to renovate them within the scope of the remodeling program, but we weren’t able to do so successfully. The foundations were very old, the walls were falling apart, the ceilings were caving in, the balconies are falling off. Even if we were to renovate these buildings, they will be in disrepair within 10-20 years and we will have to move the people Sergey Sobyanin, who live there anyway, but it will be an entirely dif- Mayor of Moscow: ferent situation legally. “So the renovation program is not someone’s whim, but So the renovation program is not someone’s whim, an absolute necessity. If we don’t want for 25 million but an absolute necessity. Moscow residents have told us about this as well. Over the past few years, square meters of five-story buildings to turn onto the Moscow Government received 250,000 letters districts with housing that’s in complete disrepair, we regarding this matter. Municipal deputies have talked about this as well, along with the Civic Chamber and need renovations. And it’s best to address this problem the Moscow City Cuma. We have the support of Pres- systematically, in a planned manner, rather than wait ident Vladimir Putin. for an emergency to happen before we relocate the I’ll say it one more time: if we don’t want for 25 mil- residents.” lion square meters of five-story buildings to turn onto

October-December 2018 CAPITAL IDEAS 21 COVER STORY

22 CAPITAL IDEAS October-December 2018 According to the mayor, there really is an issue with Construction Marat Khusnullin said, “Interfax-Ned- finding space for the construction of so-called “start- vizhimost” reports. er” homes. But the situation is not as dire as some might believe. Experts have already found several He pointed out that investors and developers have dozen locations where we can start construction enough construction permits, so the renovation pro- right away. And then the principle of “wave reloca- gram’s impact on the market will be minimal. “Right tion,” which many Muscovites are familiar with, will now, developers have a lot of building permits on apply. Residents get new apartments, the five-story hand, and companies have plans and programs for buildings they move out of get demolished, new ones erecting new buildings for the next several years,” are built in their place, residents of the next batch of Mr. Khusnullin said. five-story buildings are resettled there, and so on. According to him, about 51 million square meters, includ- No interim housing will be required to implement the ing 20.5 million square meters of housing, will be built in renovation program. There won’t be temporary re- Moscow over the next five years. “This kind of injection settlements. People will move into new apartments of residential space will allow us to keep the housing straight from the five-story building. supply high in the capital,” Marat Khusnullin said.

Housing supply is high Real interest

About 250 sites have already been identified for the The renovation program is so broad that it will require program. And this is just the beginning that will en- investment volumes that may amount to over $50 able the construction of about five million square billion, according to various estimates. That’s a large meters of real estate. The first buildings need to be sum of money. Is it possible to work with a foreign constructed within three years. Some people — the investor on this renovation program? first 10,000 Moscow residents — will get keys to their new apartments in 2018. These people will be getting Sergey Cheremin, Minister of the Moscow Govern- apartments in buildings that were constructed within ment and Head of Department for External Economic the scope of other programs. These apartments are and International Relations, gave an answer to this being finished right now, since they have to meet the question in Cannes, at the international real estate requirements of the law on renovations. exhibition MIPIM 2018. His answer attracted a lot of attention all over the world. The thing is that Tverska- The renovation program will not affect the housing ya 13 used to have a different opinion about working market. “The program isn’t affecting the market, be- with foreign investors on the program. Mayor Sergey cause everything that’s built by the city will be used to Sobyanin said that Moscow doesn’t plan to work with resettle the residents of the five-story buildings that foreign construction companies on the renovation will be demolished,” Deputy Mayor of Moscow in the program, as it doesn’t make sense for foreigners to Government of Moscow for Urban Development and participate in the project.

October-December 2018 CAPITAL IDEAS 23 COVER STORY

— At the first stage, the city is the investor. But the scope of the program is so broad that we haven’t ruled out the possibility of foreign developers participating in it in the future. For example, Italian companies have said that they’re ready to take part in very Sergey Cheremin, large construction projects, including the construc- Minister of the Moscow Government and Head tion of healthcare and athletic infrastructure. We al- of Department for External Economic and ready had a similar experience, when the company International Relations Codest worked with VTB bank to reconstruct the Dinamo district and build the stadium. A lot of com- “I think that our partners aren’t simply watching panies have offered extremely advanced construction our development programs in the capital from their technologies. These include smart homes, energy- efficient construction, and technologies with a high newsfeeds abroad, but also have a real interest in quality of construction, design, and shorter timelines participating in them.” for projects.

Renovation of industrial zones

But here is what Sergey Cheremin said in Cannes: Aside from residential building renovations, Mos- “I think that our partners aren’t simply watching cow has also started to renovate industrial areas. our development programs in the capital from their “These essentially depressing areas occupy 17% of newsfeeds abroad, but also have a real interest in ‘old’ Moscow. This year, we are going to build 3.4 mil- participating in them.” A TASS correspondent asked lion square meters of real estate there, and not just the minister what his statement means in light of the residential buildings. The former industrial areas are earlier announcement that the Moscow government already housing 33 technology parks, which amounts will be the main investor. This is what Sergey Chermin to 41,000 jobs,” Sergey Sobyanin wrote on his Twit- answered in this respect: ter page.

24 CAPITAL IDEAS October-December 2018 Residential and shopping center construction proj- intact in the latter. This will enable the city to provide ects are in high demand among investors within the people with additional housing, social and cultural fa- Third Ring Road, Chairman of the Moscow Commit- cilities, roads, and parking. tee for realization of construction investment projects and co-investment agreements Konstantin Timofeev “There will be a significant economic impact for the stated at the 2018 Moscow Urban Forum. city, first and foremost because a lot of jobs will be created, which means additional revenue for the city “The most expensive land is beyond the old city bor- budget,” Mr. Khusnullin said. Moreover, traffic jams ders, and so far real estate that isn’t residential real will be less of a problem because people won’t have estate isn’t bringing in enough profit. Inside the Third to travel to the other side of the city for work. A lot of Ring Road, investors are trying to implement proj- them will be able to get jobs close to home. ects that combine residential buildings with commercial structures,” Konstantin Timofeev said during Construction has already begun in over 20 industrial a discussion titled “Redevelopment of Industrial Ar- areas — ZIL, Serp i Molot, Lenino, Perovo, Verkhniye eas. What the City Needs and Developers Want.” He Kotly, the former Tushinskiy airport, and others. ■ added that projects for the establishment of industrial sites, which also create jobs, are in demand beyond the Third Ring Road.

During the discussion, a survey about the future of industrial zones was conducted. Over 50% of par- Marat Khusnullin, ticipants voted for establishing “creative clusters” in the Deputy Mayor at the Government their place. Not a single person voted to keep them of Moscow for Urban Development as industrial areas. As Deputy Mayor of Moscow for and Construction Urban Development and Construction Marat Khus- nullin said earlier, there are a total of 208 industrial “There are a total of 208 industrial zones in Moscow. zones in Moscow. They take up 18,800 hectares of space in the city, which accounts for 17% of the city’s They take up 18,800 hectares of space in the city, which total area. accounts for 17% of the city’s total area.

“12,500 hectares will be reorganized. 4,700 hectares 12,500 hectares will be reorganized. 4,700 hectares will will be reorganized completely, and another 7,800 be reorganized completely, and another 7,800 will be will be reorganized partially,” Mr. Khusnullin clarified. He explained that manufacturing facilities will remain reorganized partially.”

October-December 2018 CAPITAL IDEAS 25 FACE TO FACE Alexey Fursin: Right now, it’s easier to do business in Moscow than in Rome or Brussels

“Boosting the capital’s investment appeal is a priority for the Moscow Government. The city is working on providing comfortable conditions for doing business and attracting investments to various spheres of the economy,” Head of the Moscow Department of Science, Industrial Policy, and Entrepreneurship Alexey Fursin said in an exclusive interview with Capital Ideas.

Mr. Fursin, is Moscow losing its investment appeal future rating published by the Foreign Direct Invest- due to political tensions? Sanctions aside, what is ment Intelligence (part of Financial Times Group) in the city doing right now to encourage foreign in- the beginning of this year, and in 1st place among vestors to come here? Eastern European cities. This means that, in terms of economic potential and investment attractiveness, I’ll give you some numbers to clear things up. Invest- our capital is in a good position behind cities like ment volumes have gone up 77% in Moscow over the London, Dublin, Paris, Amsterdam, and Helsinki. In past 7 years. Last year, they reached almost 2 trillion terms of investment attractiveness, Moscow is also rubles. It’s also worth pointing out that Moscow ac- in the lead among Russian regions. This information counts for almost 50% of direct foreign investments comes from the National Investment Rating of the in Russia. Subjects of the Russian Federation, which was published recently. Of course, this kind of progress doesn’t appear out of thin air. The Moscow government is doing every- So yes, Moscow is a tough competitor in the battle for thing they can to improve the city’s business climate, investments. The city has a developed transport and and international institutions confirm this to be the social infrastructure, as well as high quality labor and case. Moscow was in 6th place on the cities of the other resources.

26 CAPITAL IDEAS October-December 2018

FACE TO FACE

Because the investment climate in Moscow has im- stopping here. The government is implementing proved so much, Russia placed 35th in the interna- large-scale development programs, making sys- tional Doing Business rating in 2017, moving up 5 plac- temic improvements to the entrepreneurial climate, es. Russia is currently 12th in the world when it comes and are improving different areas in the city. As a to “property registration simplicity,” and 10th in terms result, Moscow should become more appealing for of “connection to networks.” Right now, it’s easier to localization of international business and qualified do business in Moscow than in Brussels or Rome. specialists who will be able to realize their potential here and promote further economic development Moscow is also competitive when it comes to attract- of the capital. ing investments to high-tech manufacturing localization due to tariffs and the availability of qualified spe- Moscow is a mega-city with 20 million people. It’s cialists in various professions on the labor market. clear that there are a lot of spheres that are of interest to foreign business people. What are they One of the most important trends in modern urban most interested in? Construction, manufacturing, planning is the emphasis on establishing special eco- research..? nomic zones that are necessary for the region’s innovative economic development. There are spheres that have more potential in terms of strengthening Moscow’s international positions. In Moscow, innovation is stimulated by the special They are our priorities in terms of where investments economic zone (SEZ) Technopolis Moscow. It has are directed. These are spheres in the real sector that helped the capital attract several billion in invest- make a significant contribution to Moscow’s gross re- ments every year and create hundreds of jobs. Key gional product and provide jobs for the city’s popula- factors that attract investors include a wide range of tion — transportation, information technology, com- incentives and benefits, a developed infrastructure, munications, and high-tech industrial manufacturing. and sufficient capacity to launch production. Overall, increasing the city’s investment attractive- Since management of SEZ Technopolis Moscow was ness is a priority for the Moscow government. The handed over to the government in September 2017, city is working on providing comfortable conditions another 15 residents have been added to its registry, for doing business and attracting investments to vari- and total planned investment volumes into future ous spheres of the economy. projects amount to 13.605 billion rubles. What is the city doing to develop small and medi- The capital’s economy is stable, which means that um-sized enterprises (SMEs), which is the founda- it’s protected against many risks. But the city isn’t tion of all of the world’s leading economies?

28 CAPITAL IDEAS October-December 2018 Right now, the city has a comprehensive system of measures to support small and medium-sized business, including guarantee, financial, consulting and informational support, there are educational events...

A network of centers called “Small Business of Mos- cow” has been established and is developing for the purpose of providing informational and consulting support. There are 15 of them in the city right now, and you can take their programs for free. The centers significantly help entrepreneurs to not only understand the local market, but also provide assistance in terms of registering events and consultations for entrepreneurs who are starting their own companies, need help with taxes and accounting.

Last year a process was launched to automate online consulting (there is a service called “Find Premises,” which lets people get information about available spaces in commercial real estate within 24 hours).

You can find the full range of services provided by the centers on the mbm.ru, and also see where in Mos- cow each center is located.

The city also organizes various educational events for entrepreneurs (workshops, seminars, classes) every year. There are thousands of these events in Moscow, with over 40,000 attendees in total.

In October 2017, a free startup school for beginner entrepreneurs was launched. It offers an intensive 5-day course on the basics of starting a business. Any Rus- sian citizen over the age of 16 or an SME representative who files an application on mbm.ru can enroll in the course.

A new educational project is currently in development as well. It’s an online academy with a selection of e- courses on topics most relevant to business. Its main goal is to make learning about entrepreneurship more convenient.

The Fund of Small Business Credit Assistance of Mos- cow has been operating since 2006 in order to give small and medium-sized business representatives more access to loans. Since 2006, the Fund has helped entrepreneurs attract over 121 billion rubles of loaned capital.

Providing support for and promoting the development of SME representatives that are focused on exports is an important task for the city. The Moscow Export Center, which works with Moscow exporters, was established in 2017.

The center holds educational events and provides consulting on foreign economic activities, arranges

October-December 2018 CAPITAL IDEAS 29 FACE TO FACE

for Moscow manufacturers to participate in Rus- clude robotics, information technology, the automo- sian and foreign exhibitions under the brand "Made tive and aerospace industry, animation, electronics, in Moscow," and promotes their products on in- green energy technologies, and smart technologies ternational electronic trading platforms, and also for urban spaces. Of course, these children's tech- maintains an electronic catalog of export products noparks benefit future employers. in Moscow. A network of innovative creativity centers for young A Headquarters for Business Protection has been es- people, where school children and young adults can tablished in Moscow in order to create favorable con- implement their scientific and technical ideas, is also ditions for entrepreneurial activities. Its main goals under development in Moscow. There are currently are to protect the rights and interests of entrepre- 69 centers like this in Moscow, with 15 specializations neurs, as well as to help eliminate administrative bar- to choose from. riers. The headquarters assists entrepreneurs both on an individual basis and systemically, by improving the In spite of the fact that Moscow is one of the most business environment. educated cities in Russia (48% if Muscovites have a university degree and the city houses 23% of the A city’s potential lies in the people who live there. country’s universities), the problem of attracting new What measures is Moscow taking to create favor- STEM personnel is a pressing one. In order to help sup- able conditions for professional development? port young scientists working in Moscow, the capital’s mayor Sergey Sobyanin established the Moscow Gov- In the 90s and 2000s, being an engineer became less ernment Prize. It’s awarded across 22 nominations. prestigious and there were no career guidance pro- 11 nominations are for research fields, and another grams for young people. As a result, the manufactur- 11 are for development. Over the past 5 years, over ing sector, which is one of the key drivers of the city’s 3,000 young scientists have submitted their work for economy, was short-staffed. consideration.

Because of this, the city created career guidance and The Moscow government and the Russian Founda- orientation programs for young people. A chain of tion for Fundamental Research jointly implemented a 12 children’s technology parks based in regular tech- two-year program to provide young scientists work- noparks started operating across every district in ing in the capital with grants to finance projects rel- Moscow. About 35,000 children will complete pro- evant to the city’s economy. Within the scope of the grams in these technology parks every year. The tech- program, 100 grants were allocated to finance re- nology parks offer training for high school students search and development across 8 science disciplines. across 19 different disciplines. Key areas of study in- Each selected project received 2 million rubles. ■

30 CAPITAL IDEAS October-December 2018 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.mos.ru/dvms/ Department of Science, Industrial Policy and Entrepreneurship of the Goverment of Moscow Address: 22 Voznesensky Pereylok, Moscow, 125009 Ph: +7 (495) 777 77 77 Fax: +7 (495) 957 05 92 E-mail: [email protected] www.mos.ru/dnpp/ Department of Economic Policy and Development of the Government of Moscow Address: 21 Voznesensky Pereylok, Moscow, 125032 Ph: +7 (495) 777 77 77, +7 (495) 957 72 17 Fax: +7 (495) 629 33 42 E-mail: [email protected] www.mos.ru/depr/ Department of City Property of the Government of Moscow Address: 20 Bakhrushina Street, Moscow, 115054 Ph:+7 (495) 777 77 77 E-mail: [email protected] www.mos.ru/dgi/ Moscow Exchange Address: Office 1: 125009 Moscow, Bolshoy Kislovsky per, 13 Office 2: 125009 Moscow, Vozdvizhenka Str, 4/7, Bldg. 1 Phone: +7 (495) 363 32 32, +7 (495) 232 33 63 Fax: +7 (495) 234-48-40 www.moex.com

October-December 2018 CAPITAL IDEAS 31 THE GREAT POWER OF FOOTBALL What the World Cup gave Moscow

The FIFA World Cup was a real triumph, and Muscovites will remember this event forever. And not just in their minds and hearts. After the World Cup, city residents will be left with world-class stadiums, excellent football fields, certified hotels, renovated airports, high-speed Internet...

verybody who wishes ill on Russia didn’t get what they wanted. This summer, the country held a fantastic World Cup. Two days before the events came to a close, the Head of FIFA Gianni Infantino said the following: “It is an incredible, amazing World Cup. EFrom the very beginning of the tournament, we have experienced incredible emotions from being here.”

There were attempts to ruin the World Cup before it started, and during the championship as well. President Vladimir Putin talked about this right after the games were over. “Almost 25 million cyber attacks and other situations of criminal impact on the Russian information infrastructure associated with the organization of the World Cup were neutralized during the championship,” he said.

Even though many fans from different countries were hesitant to come to Russia, all of their fears disappeared as soon as they stepped out on the streets of the cities that hosted the matches. Aside from Moscow, the games took place in 11 Russian cities, across 12 stadiums with total capacity of over 550,000 people. Over 3 million foreigners from one hundred countries visited Russia from June 14

32 CAPITAL IDEAS October-December 2018 to July 15. And they didn’t just go to football games, but The football championship also left Moscow with an exten- also to museums. The Moscow Museum of Cosmonautics sive network of training facilities that were built specifically was the most popular among tourists. Over 16,000 people for the 2018 World Cup. Now, these big areas will be handed went to the museum to learn about Russia’s achievements over to football schools. Young football players will be able in space. Moreover, visitors frequently used the virtual tour to train for competitions and represent Russia during in- guide put together by the Moscow Agency for Recreation ternational games. As a result, Moscow can safely be called and Tourism during the 2018 World Cup. The routes from one of the most football-oriented cities after the 2018 World Smolenskaya to Arbatskaya, from Kropotkinskaya to Kitai- Cup. In terms of infrastructure, it will be one of the most Gorod, and from Arbatskaya to Tretyakovskaya were the well-adapted cities in the world for football. most popular. Here is what else Muscovites inherited from the champi- The World Cup ended with a final match in Moscow, which onship. was held at the renovated Luzhniki Stadium. The French team beat the Croatian team and became world champions Modernized transport for the second time in history. Moscow hosted a total of 12 games for the tournament. The Mayor of Moscow thanked Upgrading the city’s transportation system is an ongoing everybody who helped hold the 2018 World Cup in Moscow process. “Mosgortrans” adds about one thousand vehicles on his Twitter page: “The biggest athletic event in the his- to its park every year. Over the next few years, the Moscow tory of Moscow is over. A big thank you to everybody who metro will acquire 1600 new train cars. helped us hold the #2018WC in our city!” The World Cup added a lot of momentum to this process. The World Cup left behind a renovated stadium at Luzh- 360 new trains have been added to the Moscow metro niki, which is a world-class arena that can accommodate and 42 have been added to the Moscow Central Circle. 81,000 fans. The stadium won’t be empty after the World Mosgortrans also received 173 modern tram cars and Cup. It will host concerts, shows, and festivals. After the 1,240 new low-floor buses adapted for passengers with championship is over, the facilities that housed FIFA ser- disabilities. Moscow Aeroexpress trains got a whole new vices will be used as exhibition halls that can accommo- floor. Right before the World Cup, next generation two- date up to 90 visitors. The media center will be used as floor trains started running to and from Vnukovo and office spaces, and volunteer facilities will be turned into Domodedovo airports. a fitness center. Various premises will be repurposed as clubs for runners, cyclists, and rollerbladers. Service facili- It’s important to note than all major Moscow stadiums, ties will be used to sell athletic souvenirs. Temporary facili- regardless of whether or not they hosted any games, got ties that were used as welcome centers will be turned into a nearby metro or Moscow Central Circle station over the indoor spaces for mini-football and gyms. past four years. Spartak, CSKA, and Locomotive got metro

October-December 2018 CAPITAL IDEAS 33 THE GREAT POWER OF FOOTBALL

stations with the same name. The Dinamo stadium, which Health workers got more training will be completed in the near future, already has another metro station — Petrovsky Park. An extra 37 ambulances were allocated for the World Cup, and they stayed with the city’s hospitals after the games After the reconstruction of Sportivnaya metro station, were over. The cars are equipped with everything doctors a southern vestibule that’s the closest exit to Luzhniki need to provide care for patients on their way to the hos- metro station opened. The city replaced escalators that pital: a system for monitoring heart rate and vital signs, a had been running for almost 60 years. The new escala- medical ventilator, as well as an Autopulse system, which tors, which were designed in Russia, use 30 percent less provides high-quality automated CPR to victims of sudden energy and are safer than the previous ones. The lobby’s cardiac arrest. throughput capacity also increased, since there are now four escalators instead of three. Together, they can trans- In preparation for the matches, health workers were trained port 7,000 more passengers an hour, and 136,500 more in several new disciplines: providing medical care in stressful passengers in 24 hours. and unusual situations, as well as cardiopulmonary resusci- tation with the use of an automatic defibrillator. Over 400 “Moscow was a good host for the championship, and I hope health workers, including resuscitators, physicians, general that even more tourists from different cities and countries practitioners, and nurses, took English classes that focused come to visit our beautiful city in the future,” said Maksim on healthcare terminology before the World Cup. Liksutov, Deputy Mayor of Moscow for Transport Affairs and Head of the Transport and Road Infrastructure Develop- All of these new skills will be useful to health workers in the ment Department, “We will use the experience we gain to future. Moscow frequently holds large-scale events that at- make their stays here safe and comfortable.” tract a lot of tourists from all over the world. Renovated airports Hotels got ratings

Domodedovo and Vnukovo airports were modernized be- 1,453 hotels in the capital proved they were prepared to host fore the World Cup, and the new Zhukovsky airport opened guests during the World Cup. 73,911 hotel rooms (a total as well. Sheremetyevo also got a facelift. The airport now capacity of over 200,000 people) passed ratings in accor- has an inter-terminal transfer that lets passengers get from dance with international standards. the north wing to the south wing in just four minutes, along with a new passenger terminal that’s decorated in the easily 35 hotels received five-star ratings, 112 received four stars, recognizable style of Russian constructivism. It can accom- 286 received three stars, 134 got two-star ratings, 68 were modate 20 million passengers a year. rated as one-star hotels, and another 818 (including 546 hos- tels) got no stars. ■ The area next to the train station in Vnukovo now has a new hotel, which is connected to the airport with an under- This article is based on information published on ground tunnel. the official website of the Mayor of Moscow

34 CAPITAL IDEAS October-December 2018 What’s left behind in Moscow CITY'S GRAPH after the World Cup

Luzhniki stadium ● No more blind spots ● More space (81,000 seats, up from 78,000) ● More exits ● A panoramic observation point ● A sports park on Luzhnetskaya Embankment

Sports fields ● The fields used to train national teams will be handed over to athletic schools

Public transport ● New metro cars and MCC cars ● New buses and trams ● New exit from Sportivnaya metro station ● Spartak metro station ● Two-story Aeroexpress trains

Airports ● New Zhukovskiy airport ● A transfer between the south and north buildings at Sheremetyevo ● New passenger terminal at Sheremetyevo ● A hotel in Vnukovo

Healthcare

● Physicians with more training ● An additional 37 ambulances

Hotels

● 1,525 hotels were reviewed and rated

October-December 2018 CAPITAL IDEAS 35 FACE TO FACE Alexey Gromyko: Those who are afraid of today’s Russia need to see a psychologist

“Russia needs to adapt to the current reality and not think about when the sanctions will be lifted,” said Alexey Gromyko, Director of the Institute of Europe and Corresponding Member of the Russian Academy of Sciences (RAS), during his interview with Sergo Kukhianidze, Editor-in-Chief of Capital Ideas.

Alexey Gromyko, the 49-year-old Director of the Institute of Europe, gives off an impression of a calm, confident person. He has good genes. His grandfather, Andrei Gromyko, was Minister of Foreign Affairs during the USSR. The first thing you notice when you enter Alexey Gromyko’s office is the huge number of books, magazines, and brochures. They’re everywhere: not just on the bookshelves, but on the tables as well. But Mr. Gromyko is obviously no theorist, but a practical man who clearly knows what’s going on outside of his office walls.

Mr. Gromyko, what is the reason behind the downturn in our traced back to the 1990s. The West, considering itself the victor relations with the West? of the Cold War, started to push our country out of the space where a geopolitical vacuum appeared after the fall of the So- So much has been said about this that I don’t want to talk about viet Union. Western capital, the Western military machine, and obvious things, and making something up doesn’t make sense. Western media all poured into this space. It’s all so banal, that The downturn in relations between Russia and the West can be this was essentially obvious 25 years ago.

36 CAPITAL IDEAS October-December 2018 October-December 2018 CAPITAL IDEAS 37 FACE TO FACE

So if everything was clear back then, why didn’t Moscow do competitive advantages, which put it in the top ten leading anything? countries even though it accounts for just 3% of the world GDP.

Russia was weak back then, the country was really on the If you apply the “friend-foe” framework to today’s world, brink of collapse. There were attempts to restore our posi- who is our friend and who is our foe? tion, but they were not systemic. There were no resources or political will. Russia doesn’t have any enemies. There’s not even a hint of this in our documents and doctornies. Yes, there are competitors Has the conflict between Russia and the West gotten out of and opponents. But it doesn’t do much good to use this kind hand? of framework because countries aren’t people. People can be friends or enemies, but relations between countries are differ- If it had gotten out of hand, we wouldn’t be talking here right ent. Germany and France were enemies for centuries, and now now. We would be in the middle of WWIII. Still, in some respects they’re probably the closest to each other so far as countries go. the conflict between Russia and the West has resurfaced. For example, the information & propaganda sphere and partially in There are, however, countries that are problematic for Russia. the economic sector, but luckily not in terms of military. Unlike There aren’t that many of them. Out of the 193 countries that politicians, military officials are in contact with each other and are members of the UN, there are about 10 of them. These in- are doing a lot to keep the situation under control. clude Baltic states, Romania, Poland, the UK, the US, and those that imitate the behavior of the US and the UK. Canada and Do you get the feeling that Russia is feared right now? May- Australia fall into this category. The core of these problematic be even more so than during the Cold War? countries that are anti-Russia is the US and the UK. And 80% of London’s foreign policy depends on Washington. In other I don’t have this feeling. In spite of its power and size, Rus- words, if you ignore the core, there’s not a real problem at all. sia can’t compare to the potential and resources of the Sovi- So things are not as bad as they seem. et Union. Those who are afraid of today’s Russia need to see a psychologist. Listen, Russia’s military budget is ten times So to improve relations with the West, we have to improve smaller than that of the US and 14 times smaller than NATO’s relations with the US, right? military budget. Unlike the US, Russia only has a few military bases abroad. And with the exception of Syria, all of these are The thing is that the West is about 40 countries, the major- in neighboring countries. If anything, people should be afraid of ity of which don’t want to ruin their relations with Russia and the US, which plans to increase its military expenses next year would like to improve them. So the issue is not in our relations to an incredible sum of over 700 billion dollars. NATO is also a with the West, but specifically with the problematic countries I source of tension, including the plans to create the so-called spoke about earlier. “military Schengen.” This will enable the alliance to create an infrastructure with the goal of rapidly transferring troops from In any case, when we talk about the sanctions against Rus- west to east, which is necessary to conduct large-scale, pro- sia, we’re referring to “Western sanctions.” How long do you tracted military conflicts. think they will last for?

By the way, Western experts obviously know about Russia’s I’ll say right away that sanctions are kind of an ambiguous military budget and about the fact that our army isn’t equipped thing. For example, does NordStream 2 fall under the European to be transported far away and conduct large-scale wars. The sanctions? No. Trade turnover between Russia and the EU is Russian army is fairly modern and mobile, so it can accomplish currently 200 billion euros, and our trade turnover with the US important tasks, but next to the Russian border or in very spe- is 23 billion dollars. So it’s important to remember that even if cific regions, like in Syria. So why the fear? It’s unclear. This is the sanctions are in effect for a long time, that doesn’t mean pure demagoguery, which Western political elites turn a profit our hands are completely tied. Not to mention that countries on. This is about the Baltic states, Poland, Great Britain and the like China, India, Turkey, Indonesia, Vietnam, Latin America, Af- United States. rica, and other rapidly developing countries in the world have not introduced sanctions against Russia. So Russia only plays a big role on the international arena because it still has nuclear weapons? Russia has to adapt to the current reality and not think about when the sanctions will be lifted. We have to diversify our econ- Absolutely not. Russia plays a big role because Russia has a lot omy, to modernize it. Everything that needed to be said on this of land and is rich in natural resources — it’s one of the largest subject was already said in the first part of President Vladimir Pu- energy powers in the world. Without Russia, modern interna- tin’s speech to the Federal Assembly in March of this year. Even if tional space projects would be hard to imagine. Russia, as we all half of what he said comes to fruition, our country’s economy will just saw during the FIFA World Cup, is still a sports power. Plus, look completely different in six years. However, whether or not there are a lot of other things: a strong science sector, smart these plans are carried out depends on the relationship between diplomacy, experienced special services. So Russia has a lot of the President and the executive branch of the government.

38 CAPITAL IDEAS October-December 2018 Ok, let’s leave the sanctions alone. What role do the dif- the EU starts to gain geopolitical independence, the sooner re- ferences in the way we think play in the relations between lations between Moscow and Brussels will go back to normal. Russia and the West? Many people think that Russians and Then, nothing will get in the way of coming back to the idea of Westerners are so different that they’ll never understand strategic cooperation — of a partnership between Russia and each other... the EU.

I think that these kinds of claims don’t have much substance But Moscow can’t just sit and wait. What can Russia do to behind them. There are a lot more differences between coun- improve relations with the West? tries within the EU itself. For example, take Finland and Spain or Greece and Denmark. Russia just hosted the FIFA World Cup, Russia needs to modernize its economy, to make public ad- which was attended by millions of fans from all over the world, ministration effective in order to become a quickly developing, including Europeans from many countries. I haven’t heard any much more appealing country. Russia doesn’t need to do any- of them complaining about cultural differences. Moreover, peo- thing else. Nobody is going through China’s values and philoso- ple from just about any continent in the world felt fine in Russia. phy, but everybody respects them. Why? because everybody sees that China has been confidently moving forward for the So I’m sorry to say, but when people start talking about cul- past 30 years. tural differences, these are baseless conversations. Do you really think that China and Japan are closer to Western civilization The same thing applies to us. If our country is developing eco- than we are? Of course we’re closer. But these two Asian coun- nomically, nobody will look at our political system and values. tries, for different reasons, are now in the top leading countries If Russia grows at least 4-5% a year for the next 20 years, the in the world. India is also very successful right now. Its economy whole world will call Russia great again. The French, Germans, is growing at 7% a year, and nothing is keeping Western coun- and British will come to us singing the same song they do in tries from investing 10 times more resources in India than in China right now. See, in terms of ideology and politics, China is Russia. Yes, cultural differences do play a role, but not when a lot more foreign to the West than Russia right now. But the it comes to specific countries being successful economically or Chinese economy and its development model are so appealing politically. and so respected that even countries that were only recently major opponents of China have forgotten about the bad blood And what kinds of cultural differences can we even talk about and put their issues aside. So Russia doesn’t need to try to get when Russia is a European country? If Europe were foreign to Washington, Brussels, and London to like it, but needs to focus Russia, then everybody would be travelling to Haiti or the Cook on transforming its economy. Islands. (laughs). Russians go to Europe as if they’re travelling at home and feel European there, just like they do here. Of course, At the end of our discussion, let me ask you another ques- Russia has its nuances as well. But, after travelling in Europe tion. You’re the grandson of a legendary Minister of Foreign for many years, I’ve come to the conclusion that talking about Affairs from the USSR. Under his leadership, the country’s religious and cultural differences that supposedly get in the way foreign policy was strong and clever. It seems like there’s not of Russia getting closer to the rest of Europe are made up. It’s much of either in Russia’s foreign policy today... as if every European country doesn’t have individual differences. Go to Sicily, Sardinia, the south of Spain, the Balkans, Scotland... I don’t agree with this. Our diplomats definitely deserve Travel from Finland to Portugal, and then to Bulgaria — any- praise, and we can be proud of them. If we can be just as body will see there are huge differences. The north and south of effective economically as we are diplomatically, Russia will France are entirely different, for example. definitely be in the top 5 most respected and powerful countries of the 21st century. Our diplomacy is highly intelligent, You’re definitely not a pessimist. Could you tell us what professional, and flexible. This isn’t something I’ve simply Moscow’s relations with Washington and Brussels will look overheard somewhere. I know this because the Institute of like in the future? Europe constantly interacts with the Ministry of Foreign Af- fairs, with our diplomats both in Russia and abroad. There The way they’ll develop depends on what happened in those are no major differences between our current foreign policy places internally. If the liberal establishment once again gains and the one we had after the war in USSR. But of course, ground in Washington, Trump will be overthrown or replaced Russia has more foreign policy vectors now than it used to by a neo-liberal democratic proxy in two years. In this case, we back then. shouldn’t expect anything good to happen. The thing is that Trump, unlike the neo-liberals, understands that the US has to And a bit of irony directed at Western politicians. Isn’t the stop trying to teach the rest of the world. Of course he’s pri- way our foreign policy is being treated in the West proof of marily concerned with his country’s interests, but he just tries how effective it is? After all, people are saying that Russia is to do what’s good for the US with no ideological undertones. always interfering with things, is practically dictating what happens in the world… In other words, our country’s foreign When it comes to relations with Brussels, the sooner the US policy is one sphere in which Russia is going above and be- and the EU start working on their own problems, the sooner yond expectations. ■

October-December 2018 CAPITAL IDEAS 39 MOSCOW IN WORDS

“A mournful time of year! Its sad enchantment flatters my vision with a parting grace - I love the sumptuous glow of fading nature, the forests clad in crimson and in gold, the shady coolness and the wind's dull roaring, the heavens all shrouded in a billowing mist and the rare gleams of sun, the early hoarfrosts, and distant grey-beard winter's gloomy portents.” Alexander Pushkin, Autumn

“At the beginning of autumn There is a short, but wondrous time When days seem made of crystal And evenings are radiant…” Fedor Tyutchev, The Complete Poems of Tyutchev

“Let whoever wants to, relax in the south, And bask in the garden of paradise. Here is the essence of north and it's autumn I've chosen as this year's friend.” Anna Akhmatova, The Complete Poems of Anna Akhmatova

40 CAPITAL IDEAS October-December 2018 “How I used to love the country in autumn! Then but a child, I was yet a sensitive being who loved autumn evenings better than autumn mornings. I remember how beside our house, at the foot of a hill, there lay a large pond, and how the pond--I can see it even now!--shone with a broad, level surface that was as clear as crystal.” Fyodor Dostoyevsky, Poor Folk

“... the extraordinary autumn weather that always comes as a surprise, when the sun hangs low and gives more heat than in spring, when everything shines so brightly in the rare clear atmosphere that the eyes smart, when the lungs are strengthened and refreshed by inhaling the aromatic autumn air, when even the nights are warm, and when in those dark warm nights, golden stars startle and delight us continually by falling from the sky.” Leo Tolstoy, War and Peace

“A withered maple leaf has left its branch and is falling to the ground; its movements resemble those of a butterfly in flight. Isn't it strange? The saddest and deadest of things is yet so like the gayest and most vital of creatures?” Ivan Turgenev, Fathers and Sons

October-December 2018 CAPITAL IDEAS 41 NOTHING VENTURED In the spirit of traditional friendship and mutual The 23rd session of the Russia-India Inter- Governmental Commission on Trade, Economic, understanding Scientific, Technical and Cultural Cooperation was held in the middle of September in Moscow

The discussions in Moscow were held in the spirit of traditional friendship and mutual understanding. The Russian side was led by H.E. Mr. Yu.I. Borisov, the Deputy Chairman of the Govern- ment of the Russian Federation, the Chairman of the Russian side of the Commission. The Indian side was led by H.E. Mrs. Sushma Swaraj, the Minister of External Affairs, Government of India, the Chairperson of the Indian side of the Commission. The sides discussed the possibilities of working together on projects in third countries. As a new dimension of their strategic partnership. There has been significant expansion in their cultural and tourism exchanges. Tourism flows in both directions has shown impressive growth. Moscow and New Delhi are working on further liberalizing visa regulations on both sides. Indian side www. indianembassy-moscow.gov. welcomed the initiative of the Russian Government to enable Our two countries enjoy a special and privileged strategic partner- electronic visas for Indian nationals visiting the Russia Far East. ship. This partnership has strengthened over time and covers a vast agenda involving almost all spheres of human activity. In 2017 Energy is the traditional area of cooperation. Both sides identi- annual trade between India and Russia has reached USD$10.17 bil- fied new areas of cooperation such as agriculture, infrastructure, lion. Two-way investments have already crossed the USD$30 billion transport and science and technology. Russia and India would like target, which Moscow and New Delhi had set for 2025. Now Russia to expand their cooperation in the area of space. Discussions in and India have therefore proposed that they enhance this figure to Moscow will further strengthen cooperation between two coun- USD $50 billion by 2025. tries in all fields in existing and new areas of cooperation.

Trade, economic and investment to special economic zones (SEZs) of both in trade, economic and investment spheres cooperation countries. The sides emphasized the im- and noted the positive contribution of the portance of sharing experience between Sub-Group in increasing the level of mu- Two countries agreed to accelerate the the Russian Federation and the Republic tual understanding between the sides on beginning of negotiations on the free- of India in the sphere of SEZ. elimination of existing barriers in trade, trade agreement between the Eurasian The sides agreed to start the implementa- economic and investment spheres. Economic Union and the Republic of India. tion of the “Green Corridor” project in test Priority investment projects They stressed the need to create an effec- mode and agreed to make all efforts to roll tive mechanism to ensure comprehensive out the “Green Corridor” project in a full- The sides noted the intensification of in- protection of investments in order to stim- fledged manner. vestment cooperation, emphasized the ulate the growth of mutual investments The Russian side expressed interest in con- contribution of the Working Group on Pri- as well as welcomed holding of the first tinuing cooperation with Indian partners ority Investment Projects and called on the technical consultations on determining the in the construction of waste treatment Working Group to continue searching for main parameters of the bilateral invest- facilities and in participating in tender pro- the new investment projects. ment treaty in the near future. cedures for the construction or modern- Industrial cooperation The sides noted that the negotiations on ization of waste treatment facilities in the the revised Double Taxation Avoidance Republic of India. Both sides confirmed their intention to Agreement between the Russian Federa- The mechanism of elimination of barriers develop cooperation in the field of civil air- tion and the Republic of India are pending craft manufacture. for long and should be started forthwith. in trade, economic and investment They underpinned the expansion of col- The Russian side also pointed out the issue spheres. laboration in aluminium sector under the of double taxation on dividends. Moscow and New Delhi welcomed the aegis of Subgroup on Mining of the Work- The sides noted the need to develop bilat- holding of the first meetings of the Sub- ing Group on Modernization and Industrial eral cooperation in attracting companies Working Group on elimination of barriers Cooperation.

42 CAPITAL IDEAS October-December 2018 The Indian side proposed to develop col- expressed its desire for the joint implemen- sector.They agreed to actively cooperate laboration between Geological Survey of tation of the project. The sides agreed to in the framework of the Memorandum of India (GSI) with its Russian counterpart continue cooperation in respect of project Understanding between the Federal Ser- to explore deep seated/ or concealed implementation keeping in view the pre- vice for Surveillance in Healthcare and the mineral deposits (at more than 400 me- vailing rules/procedures of both sides. Central Drugs Standard Control Organisa- ters depth) in India. tion, including the implementation of reg- The sides noted the interest shown by RZD ular bilateral exchange of information on The sides welcomed the successful coop- Holding in its participation in railways in- the detection of poor-quality and falsified eration between PJSC SIBUR Holding and frastructure projects in India, including medicines and pharmaceutical substances Reliance Industries Ltd. on the construction electrification, increase of speed of trains, in their respective territories, including in of butyl rubber and halobutyl rubber pro- construction and design of heavy railways, the case of emergency. duction facilities in Gujarat. tunnels and high-mountain railways, as well as a pilot project for the moderniza- The Russian side expressed its interest in Science and higher education cooperation tion of automation and telemechanics. developing cooperation between Sinara – During the session the sides appreciated Transport Machines JSC and Indian Rail- The sides agreed to continue cooperation the establishment of partnerships between ways in the field of supplying track equip- in the field of air transport in the frame- Russian and Indian scientific and educa- ment for the construction, repair and work of consultations between the Rus- tional organizations for the implementa- maintenance of railways, as well as other sian and Indian Aviation Authorities. tion of joint research projects within the projects in the field of railway engineering. Energy cooperation framework of various research programs. Cooperation in diamond sector They expressed interest in developing di- The sides welcomed the ongoing coopera- The sides expressed appreciation of the tion between the Rosneft, ONGC Videsh rect partnerships between Russian and level of the bilateral cooperation in the Limited (OVL), Oil India Limited (OIL), In- Indian organizations, carrying out educa- diamond sector.With the aim to uphold dian Oil Corporation Limited (IOCL) and tional activities on higher education pro- and promote the diamond consumer Bharat PetroResources Limited (BPRL) in grams, on the basis of bilateral cooperation equity and sustainable growth of the various projects in Russia, including Van- agreements. market, both India and Russia are coop- korneft and Taas-Yuryah. The sides noted Space cooperation erating on the development of diamond with satisfaction the progress of the com- generic marketing campaigns by the Dia- panies in the development of comprehen- Moscow and New Delhi reaffirmed their mond Producers Association. sive cooperation and expressed the hope interest in further development and in- for the completion of negotiations be- tensification of bilateral cooperation in the Within the framework of the multilateral tween the companies on the Vankor clus- field of joint scientific research and use of international cooperation in the diamond ter in the near future. outer space for peaceful purposes, in par- sector the sides expressed mutual interest ticular, human space programme includ- in establishing a permanent secretariat of The sides supported the interest of Rus- ing life support system, crew module and the Kimberley Process and improving its sian and Indian companies in cooperation astronaut training; advanced technologies peer review mechanism within the discus- in the field of LNG supplies of Russian in remote sensing of earth; ground stations sions that are still ongoing in the KP. origin to India. The sides welcomed suc- for satellite navigation systems (GLONASS cessful development of Gazprom Group’s and NavIC); and space solar power systems. Agriculture cooperation cooperation with GAIL India Ltd. for LNG The sides noted the successful holding supplies to India. Urban development cooperation of the first session of the Russian-Indian The sides expressed their support for de- Both sides expressed their intention to de- Working Group on Cooperation in Agri- velopment of cooperation and continua- velop cooperation in implementation of culture under the Russian-Indian Inter- tion of discussions between PJSC Gazprom smart city projects, the introduction of mo- governmental Commission, established in Neft and Indian oil and gas companies in dem information and innovative technolo- accordance with the decision of the Co- exploring opportunities for joint develop- gies and infrastructure solutions within Chairs of the Commission. Particular atten- ment of oil fields on the land side and the these projects. tion during the Arctic shelf of Russia. Interregional cooperation meeting of the Working Group was paid Nuclear Energy cooperation to the issues of mutual market access of The Sides agreed to continue work on ex- agricultural products and ensuring secu- The sides emphasized the importance of panding direct trade and economic rela- rity of supply. the cooperation in the field of peaceful tions between regions of the Russian Fed- uses of the atomic energy and resolved to The Indian side has conveyed to the Rus- eration and states of the Republic of India, continue to work in the areas of mutual in- sian side the information about the steps establishing direct ties between economic terest. taken to gain access to the Russian mar- entities through mutual participation in ket for agricultural products and requests The Sides noted the progress in the imple- exhibitions and fairs, business missions, ex- the Russian side to study the Indian side’s mentation of Kudankulam NPP and agreed changes of information on products with requests. to work together to achieve expected export potential as well as on economic operational performances and scheduled entities interested in establishing commer- Transport cooperation completion of the project construction. cial contacts. The sides expressed satisfaction with the Healthcare cooperation Next meeting of the Commission progress of work under the Agreement for the Nagpur-Secunderabad Semi High The sides confirmed their interest in con- The sides agreed to hold the 24th Session of Speed execution study. The Russian side tinuing bilateral cooperation in the health the Commission in 2019 in India. ■

October-December 2018 CAPITAL IDEAS 43 IT’S TIME FOR MOSCOW Ewald König: Europeans have to define relations with Russia themselves Ewald König is a political scientist, writer, journalist, and TV host who has been living and working in Germany since 1985. He has written several books (including one about Federal Chancellor Angela Merkel), is the Editor in Chief at korrespondenten.tv, and was a guest at the International Media Conference “It’s Time for Moscow” at the end of July. He shared his thoughts and impressions of the Russian Capital in an interview with Capital Ideas.

Mr. König, we’ve crossed paths in the GDR, in ing time for me, since I was the only correspondent Bonn and Berlin, where you’ve been working for accredited in both the FRG and GDR. I could see many years. Have you become totally German or historical developments from both sides. have you remained Austrian, a real Vienna man? Of course, I don’t feel German, in spite of the fact Yes, our countries have changed a lot since we met. that I’ve been observing Germans and their country There is no Soviet Union anymore, Germany is no for many years as a correspondent. I still feel like an longer split up, and Austria is part of the European Austrian, and specifically like a person from Vienna. Union. When we met, I was Chair of the Association But I also feel like a European who is disappointed of Foreign Press in the Federal Republic of Germa- by some developments in the European Union. ny (Verein der Ausländischen Presse in der Bundes- republik Deutschland), which had 550 members And now we meet in Moscow. Was this your from 60 countries. This was an especially interest- first introduction to the Russian capital?

44 CAPITAL IDEAS October-December 2018 July-September 2018 CAPITAL IDEAS 45 IT’S TIME FOR MOSCOW

Yes, this was my first time, and it’s about time! rants meet the highest international standards, I was really curious, because my perception of you often forget that you’re in a city that used to Moscow was rather grey and antiquated. be part of the Eastern bloc.

And what were your impressions? Is Moscow A lot of cities right now are concerned with safety, worth visiting? and during my short stay in Moscow I felt safe. Moreover, like most visitors in Moscow, I really I have to admit that my first impression was noticed how clean the city is. amazing. Of course, I know that first impressions aren’t everything. You might just see a facade, and And this reminds me of Berlin. Berlin draws people not the problems behind it. This goes for other cit- who come there in so much that the city, espe- ies as well. I also realize that urban development cially the city’s administration, is under too much in Moscow and the development of other places pressure. If Moscow can implement even a frac- in Russia are vastly different things. And still, there tion of all the Smart City plans that we were just was a lot that surprised me. I also talked to one introduced to, it will leave Berlin far behind. Berlin Western diplomat who was familiar with Moscow is a great city to live in, but not if you have to get at various other stages of development. He con- an appointment at some kind of institution (get firmed that Moscow has made incredible progress a date and time for a meeting with an official), and can’t be compared with the past. Is Moscow or secure a spot in a kindergarten. In this sense, worth visiting? Absolutely! It’s a shame that, un- the city can be very frustrating. A city like Ber- like other destinations, it’s not included in urban lin, which has 3.6 million residents, and definitely tourist highlights. Moscow, which is several times its size, need intelligent networks. Moscow may well move ahead Have you visited other Russian cities? faster than Berlin. I don’t think that Moscow’s Smart City presentation was a propaganda show A few years ago, my only trip to Russia brought me for foreign journalists. to Saint Petersburg. There, I was also impressed by the impression this wonderful city makes on When I travel to a city, I always ask myself wheth- visitors. er I could live or work there. And with respect to Moscow, I have to say: yes, I could imagine myself What other places in Russia would you like to here. But, as a correspondent, you have to leave visit? the capital, travel around the country a lot, and report about life there. I’m sure there are big dif- I have no plans in this regard. We’ll see. I would like ferences between the city and rural areas. to visit the place where my grandfather is buried. I don’t think I’ll be able to do it because I don’t know Do Austrian and German newspapers, includ- exactly where it is. My grandfather Adalbert Liener ing KORRESPONDENTEN.TV, report about Rus- was a cooper in Drasenhofen, at the Austrian- sia? Which aspects of Russian life do they talk Czech border. He had five small children when he about and what kinds of topics do they prefer was drafted as a soldier during WWII after refusing to cover? to join the local national socialist party. He was a prisoner of war in Russia for many years, and never Yes, of course there is a lot of information about came back. Times like these with so many millions Russia and Moscow, but for the most part this is of victims should never happen again! related to the sanctions and the alleged Russian influence on the elections, the Ukraine crisis, and Which cities in Austria, Germany, and the rest of interventions in Syria — difficult topics. At the the world would you compare Moscow to? same time, I didn’t understand the coverage of the London attack with the Novichok nerve agent. When I saw Moscow City with its glass tower and The West was almost entirely convinced by Brit- skyscrapers, when I looked over the entire city ish Prime Minister Theresa May that Russia should from the 360 degree platform on the 89th floor be considered guilty, in spite of the fact that there of the Federation Tower, it reminded me of Man- was no proof. This triggered the expulsion of a lot hattan in a way. I was also recently on a business of Russian diplomats. And Germany, which usu- trip in Seoul, South Korea — a metropolitan area ally insists on upholding the law, decided to join in. that’s huge like Moscow. There were a lot of com- Fortunately, Austria didn’t succumb to British de- parisons to be made here in terms of the pace of mands and didn’t follow the example set by the US. development. Because you can see all the interna- The fact that Russia also expelled a lot of Western tional brands in Moscow and hotels and restau- diplomats was to be expected. Otherwise, Russia

46 CAPITAL IDEAS October-December 2018 often plays a role in geopolitical reporting when Russia. But at the same time, they’re neighbors! US President Donald Trump posts tweets about A flight from Berlin to Moscow isn’t even three Russia. I can well imagine how President Putin hours long! US President Donald Trump’s policies could not believe his luck during his meeting with also fuel this tension. The US is putting pressure President Trump in Helsinki, when Trump didn’t on Europeans with respect to Russia. Regardless act according to plan. of how important transatlantic relations between Europe and the US are, Europeans have to define Unfortunately, the Western press features their relations with Russia themselves and avoid overwhelmingly negative and critical pieces caving to pressure. about Russia, although the World Cup changed this for the better. Have we finally reached an Something that I have a lot of empathy for is the epiphany, or are we still far from hitting a turn- impact on fellow journalists. On the one hand, ing point? there are those who are tasked with advocating for Russia in propaganda-oriented media channels, Unfortunately, we’re still far from reaching a turn- and those whose strange questions at government ing point. We’ve hit a dead end. If you’re waiting press conferences in Berlin leave me shaking my for an epiphany, each side is waiting for the other head. There are also colleagues who are appreci- side to have one, and that this will pull us out of the ated for their work, for different reasons. dead end. The West thinks that it has to support measures against Russia so long as the annexa- As we know, the majority German economy tion of Crimea continues to be a problem in terms representatives have a negative view of the of international law, until something changes in sanctions against Russia. What do journalists eastern Ukraine. On the other hand, it doesn’t think of this? make much sense to expect that something will change. It’s a typical “frozen conflicts” case. But Journalists also have different opinions. A lot of nobody knows how to drop the sanctions while them are in favor of sticking to tough sanctions, saving face. Even if people in Moscow don’t notice, some advocate gradual solutions in which each the sanctions are hurting Russia, and they’re also side retreats step by step, and only a few want to hurting the German economy. The German Com- lift the sanctions completely. Overall, German me- mittee on Eastern European Economic Relations dia are consistent with the policies of the federal (Der Ost-Ausschuss der Deutschen Wirtschaft), government. But I think that everybody is in fact which has many member companies that took a pretty confused. hit because of the sanctions, is looking for ways to separate trade from politics. But it still has to Experts often talk about the wide range of op- recognize the primacy of politics. portunities for doing business in Russia, about the many advantages for investors. Do you see Relations between Russia and the West leave good prospects for foreign companies in Russia? much to be desired. Do you and your colleagues feel the effects personally? Is it something that I’m certain that there are plenty of opportuni- comes up in everyday life? ties that would benefit both sides in both production and sales. The energy sector is a special Personally, we haven’t noticed any changes in ev- segment — the EU needs Russian gas and Russia eryday life due to a downturn in our relations. But a needs European money for this gas. The tourist lot of people who work in the economic sector are sector can be expanded as well. running into problems because of it: they can do some things, but not others. And where they can In your opinion, will the Russian market con- do something, they’re interested in ways to bypass tinue to be attractive for foreign companies and specific bans and profit from these transactions. investors?

I also got the impression that there are fewer I think so, yes. This will come back. We see that and fewer Russia experts in the West. It seems there is progress in terms of anti-corruption, and that specializing in Russia is no longer a popular we’ve also seen that a lot of officials have learned trend, and provides fewer opportunities for career English because of the World Cup and that a lot of growth. This makes producing reports on Russia signs were in English as well. This indicates that less lucrative. Some Russia experts can quickly end there is some level of openness. Eventually, every- up with reputations as “Putin sympathizers,” which thing has to stabilize. I’m hoping for this. And then means their opinions are no longer taken serious- things can only get better. I don’t want to think ly. This also widens the rift between Europe and otherwise. ■

October-December 2018 CAPITAL IDEAS 47 IT’S TIME FOR MOSCOW Mathias von Hofen: There’s a lot to learn from Moscow

All of the publications that independent journalist Mathias von Hofen writes for wouldn’t be able to fit even on an unusually large professional card. There is Wirtschaftswoche, Bayerische Staatszeitung, Wirtschaftszeitung, Nürnberger Nachrichten and Weserkurier, along with several online media outlets and local political science centers. At the “It’s Time for Moscow” international media conference in Russia, he represented Wirtschaftszeitung — a local monthly financial publication for for Eastern Bavaria. Its editorial office is located in Regensburg, where the Danube and Regens rivers meet. The economic power of Bavaria, which is an important region in Europe, can be illustrated by the following indicator: the gross regional product of the state amounted to 595 billion euros in 2017. And the gross regional product for Lower Bavaria (Niederbayern) and Upper Palatinate (Oberpfalz), where Die Wirtschaftszeitung is especially popular, hovers around 36,000 - 39,000 per capita. In both of these administrative districts, 270,000 people work in manufacturing.

48 CAPITAL IDEAS October-December 2018 Mr. von Hofen, you’ve been in Moscow, in Russia, and come out of a crisis stronger. Moscow is also an several times. How often do you come here and for example to many cities in terms of urban planning. how long? Do you come here for work or also for Public transportation works well. Especially the metro leisure? works remarkably well, and there aren’t long waiting periods between trains. Over the past two decades, I come to Moscow once or twice a year, and I usually Moscow has also made great strides in terms of es- stay for at least a week. I mostly come for work, but tablishing green areas and squares compared to the I also use my time here to meet with friends and col- majority of European cities. Of course, Moscow really leagues. had to make up for lost time here. But they accomplished a lot more. Do you ever feel trapped by the stereotypes people have about the Russian capital? Maybe not any- How would you assess economic cooperation be- thing grotesque like bears roaming the streets near tween Germany and Russia as a whole, and coop- the Red Square and drinking vodka, but still? eration between Bavaria and Russia in particular?

Unfortunately, a lot of Germans still think that Mos- There is intense economic cooperation between cow is a dangerous city. They still imagine the 90s, Germany and Russia. Still, there was a decline in which weren’t safe. Many people are surprised when trade volumes between Germany and Russia in you tell them that Moscow has become a safe city for 2014-2016. Last year we saw significant growth the most part. A lot of Germans also think that Mos- again. I think we should increase cooperation even cow isn’t a friendly place, and is very expensive. The more in the future. The German economy needs to best option is to tell people like this to go visit Mos- take into account economic progress in Russia out- cow themselves at some point. side the scope of the oil and gas sector. The food sector, the pharmaceutical industry, engineering, Do you have any favorite places in Moscow? tourism, and the agricultural sector present a lot of starting points for collaborations. It would also I especially like the park and palace at Tsaritsyno, and be good to see cooperation between medium-sized Kolomenskoye. Both places are far away from the enterprises yield results. This segment is not as noise, the hustle and bustle of the city. strong in Russia yet, and assistance from German companies would be helpful here. What do you find most appealing about Russia? The people, nature, architecture, something else? Bavaria has particularly strong economic ties with Russia. Bavaria is in the lead among all states in Ger- I’m especially interested in Russian history. I like going many in terms of trade with Russia. Relations with to exhibitions, like the ones at the History Museum. Russia are supported by the Bavarian State Govern- Plus, I really value Russian literature, especially Dos- ment. Former Bavarian Prime Minister Seehofer has toyevsky, Pasternak, and Turgenev. But I also like Rus- visited Moscow several times. The Bavarian govern- sian nature, especially big rivers like the Volga. ment is more open to relations with Russia than the federal government. Bavaria makes sure to maintain Moscow has been developing very quickly recently. a good relationship with Russia. Unfortunately, this In your opinion, which changes are the most no- commitment isn’t always fully appreciated in Brussels ticeable? and Berlin, as one Bavarian minister told me.

It’s really noticeable that a lot of resources have been Is there a chance that the continuing sanctions invested in Moscow over the past few years. The city against Russia will negatively impact this coopera- has become greener, cleaner, and more comfortable. tion? I’m especially impressed with the establishment of many new parks and green areas, bicycle lanes and As I already pointed out, trade between Germany and significant improvements to public transport, such as Russia has been on the rise again since 2017, after the opening of new metro lines. I’ve already been to several year of decline. Without the sanctions, Ger- different Russian cities, but haven’t seen modern in- man-Russian trade relations would likely be stron- frastructure like Moscow has anywhere else. ger. I often attend meetings at events organized by the Bavarian Industry Association in Munich, and I see Do other cities have anything to learn from Mos- that the sanctions against Russia are frequently the cow? subject of criticism. I can’t say that the sanctions have resulted in any progress in terms of negotiations re- Other cities can look at Moscow’s experience to learn garding the Ukrainian crisis. They’re not a replace- how to get through complicated economic situations, ment for political dialogue.

October-December 2018 CAPITAL IDEAS 49 IT’S TIME FOR MOSCOW

How are German companies doing on the Russian American liquid gas. This is one of the reasons the US market right now? government is putting political pressure on Germany right now, to stop the Nord Stream project. On the Companies that I’m in contact with have different opin- other hand, Russia depends on oil and gas exports. ions. Some of them feel less confident because of the The raw materials sector comprises over half of all sanctions, but overall people are optimistic. It seems like Russian exports. Russia would suffer big losses if it they’ve adapted to the sanctions. The constantly fluctu- boycotted gas deliveries to Western Europe. This is ating oil and gas prices are a factor of uncertainty. Some why the Russian government isn’t interested in us- companies would like to see improvements in terms of ing gas as a political weapon against Germany and cutbacks in bureaucracy. But in this sense Moscow does Western Europe. a lot better than a lot of other Russian regions. Do you agree with the opinion that Germany is Nord Stream 2, one of the biggest economic coop- fully controlled by Russia due to gas supplies? How eration project between the two countries, has ad- does this claim square with the fact that Russia vocates but also faces some opposition. Some peo- has been supplying Germany with gas for the past ple think that the pipeline will help make supplies 35 years? Has Germany been under Russia’s control of natural gas to Germany safer and more reliable. the whole time? Others think that implementing the project will make Germany more dependant on Russia. What is Germany has absolutely not been under Russia’s con- your opinion? trol for the past 35 years. Trump’s statement about Germany being dependent on Russia is absurd and Nord Stream 2 is in the best interests of both Russia is pure agitation. Germany has been looking after its and Germany. It’s an advantage when there is a di- own interests with respect to Russia over these past rect link between Russia and Germany that doesn’t go 35 years and has taken political conflicts into account. through transit countries. It’s obvious that this is how I think that the politicians in Washington know this. the majority of German politicians see it. It’s worth But, as I already said, they’re primarily concerned with noting that in spite of criticism from the EU, US, Po- selling American liquid gas in Europe. But in this case land, Ukraine, and Baltic countries, Berlin continues to they should say so openly. hold on to this project. But even with this issue Frau Merkel has to take the US and some other Western Germany has been getting natural gas from Rus- European countries into account. The compromise sia since the 1970s, and not once has gas been used that was reached during negotiations with Russia — as a weapon against Germany. Germany has always that Russian gas will continue to be sent to Western had positive experiences with Russian gas supplies. Europe through Ukraine — is a big favor to Kiev. Of course, it’s important for Russian prices to remain predictable in the future. Then, Russian pipeline gas I’m not afraid of being too dependant on Rus- will continue to be a better deal than American gas or sia. Moreover, Russian natural gas is cheaper than liquefied gas from Qatar. ■

50 CAPITAL IDEAS October-December 2018 useful info

Chamber of commerce and industry of the City Government Russian Federation Address: Voznesensky Per., 21, Moscow, 125032 Address: 109012 Moscow, St. Ilyinka, 6/1, Ph: +7 (495) 633-51-90 bldg. 1 www.mos.ru Ph: +7 (495) 620 00 09

Fax: +7 (495) 620 03 60 E-mail: [email protected] Moscow Investment Portal www.tpprf.ru/en/ Address: 119019, Moscow, Novy Arbat St., 11, bldg. 1 Department for Work with Foreign Legal E-mail: [email protected] Entities and their Representative Offices www.investmoscow.ru Address: 109012 Moscow, St. Ilyinka, 6/1, bldg. 1 Moscow Innovation Development Center Ph: +7 (495) 620 02 14, 620 02 22 Address: Voznesensky Per., 22, Moscow, Fax: +7 (495) 620 01 70 125009 E-mail: [email protected] Business Center Usadba www.tpprf.ru Ph: +7 (495) 225-92-52 http://innoagency.ru Moscow Chamber of commerce and industry Address: 107031, Moscow, St. Petrovka, 15, Business Protection Headquarters bldg. 1. Address: Voznesensky Per., 22 (5th floor), Ph: +7 (499) 940 33 16, +7 (499) 940 33 25, Moscow, 125009 +7 (495) 276 12 19 Business Center Usadba E-mail: [email protected] Ph: +7 (495) 620-20-45 www.mostpp.ru http://shtab.mos.ru

Main Administration for Service to the Department for Competition Policy Diplomatic Corps (GlavUpDK) Address: 12 Pechatnikov Pereylok, Moscow, 107045 Address: 20 Prechistinka Street, Moscow, Ph: +7 (495) 957-99-31, +7 (495) 957-99-77 119034 Fax: +7 (495) 957 99 95 Ph: +7 (495) 637 23 26 E-mail: [email protected] Fax: +7 (495) 637 31 71 www.mos.ru/tender/ E-mail: [email protected] www.updk.ru

October-December 2018 CAPITAL IDEAS 51 A world class concert hall opened in Zaryadye Park

struction experts in tic panels weighing 150-600 kilograms. In accordance with a Russia, these technologies were used for concept developed the first time. During the finishing process, by British engineers. the room was set to maintain a temperature of 21 degrees, along with a 45 percent The concert hall is humidity level. a unique building because it features Nagata Acoustics America Inc. under the a lot of unusual direction of Yasuhisa Toyota conducted equipment. There acoustics tests for the halls. Mr. Yasuhisa are special mecha- Toyota also designed the the Walt Disney nisms that can turn Concert Hall in Los Angeles and the Rich- the pit into a stage ard Fisher Arts Center in New York. floor and change he opening ceremony was attended the shape of the stage. There are also op- The floor covering of the stage, made out by President Vladimir Putin, Russian tions to change the number of audience of special stone cedar, ensures high-quality T Prime Minister Dmitry Medvedev, seats and the orchestra pit area. These sound and the right amount of reverbera- Moscow Mayor Sergey Sobyanin, and Pa- transformations create the opportunity to tion. The floor in the hall is a parquet made triarch Kirill of Moscow and All Rus’. stage different kinds of performances in out of oak. The lobby features panoramic the venue. glass facades and decorative wood panels A total of about 300 events will be held in on the walls. The floor is covered with nat- the concert hall in 2019/2020. They include Because of the way the building is con- ural granite, and the ceiling is covered with music concerts, lectures, and meetings structed, trucks with special equipment panels made out of artificial stone. with entertainers. The program will also can be unloaded directly on its terri- include workshops and interactive pro- tory. The stage and the auditorium are Top quality music instruments will be used grams that incorporate light, sound, and equipped with stage lighting, remote during concerts, including an organ from 3D technologies. spotlights with mobile, point and deco- the French company Mühleisen. It was as- rative hoists, platforms for the orchestra sembled by hand in accordance with tradi- “This hall is meant to be the heart and soul and chorus that can be lifted or lowered, tional technologies. of this unique park in the center of our as well as sound reinforcement systems capital, and to amplify the unique image of for electroacoustics, video projection, The Moscow Zaryadye concert hall will Moscow and all of Russia,” Vladimir Putin technological video surveillance, and an- not only host concerts and plays, but will said. He also pointed out that the new con- nouncements. Additionally, there is a re- also be used for briefings and press confer- cert hall was built with the most advanced cording studio in the room. ences. The location of the building, along technologies and is a musical complex of with the architectural, technological and the future in every sense of the word. The concert hall has natural acoustics. To organizational capabilities of the hall put it make the sound here perfect, specialists in the same league with the best concert The concert hall, which totals 25,600 used more than 15 thousand unique acous- venues in the world. ■ square meters in area, has 4 above- ground and 2 underground floors. Guests can enter the hall from Kitai-Gorod, or from the park. There are 2 halls here and 2 open amphitheatres, which will show concerts and plays that are happening on the main stage.

The main facade of the building, which faces the square in front of the hall, is made out of glass. The other facade, which is made out of natural stone, features a built-in media screen in the shape of a trapezoid. The roof resembles a glass piece of bark, and the building itself is hidden by an artificial hill — a landscape element. It was built by Russian designers and con-

52 CAPITAL IDEAS October-December 2018 Unusual dancing traffic light

or City Day, a special “dancing” traffic light was installed in Mos- F cow. It appeared at the pedestrian crossing on Tsevtnoy Boulevard, right next to the Nikulin Circus. The red light, which usually features a standing person, dances instead of standing still. There is a special cabin next to the light. Pedestrians can enter it and start moving around, and their movements will be scanned by a special camera. The dance of the person in the cabin is transmitted live on the red light. Peo- ple can dance in the cabin while the red light is on for pedestrians. If there is nobody in the cabin, the traffic light works like a regular traffic light, featuring either a walking or a standing person. the new traffic light will put the city’s lating traffic. A similar light has already residents in a better mood. For exam- been tested in Europe. The traffic light meets all safety re- ple, if they’re coming home from a long quirements: a dancing person is only day at work, they’ll smile when they see The city has also started testing a talk- broadcast during a red traffic signal for a dancing person on the red light,” said ing traffic light. When the light is green, pedestrians. Vadim Yuryev, head of the Traffic Man- a loudspeaker is turned on in the traffic agement Center. According to him, the light. It announces that pedestrians can “For City Day, we decided to put pe- location for the unusual traffic light is cross, and also announced how many destrians in the holiday spirit. To make no accident: a lot of children visit the seconds they have until the light turns waiting for the green light less boring, Nikulin Circus, and they’ll be particu- red again. When the light turns red, the we installed a dancing red light. Plus, larly happy to see a dancing light regu- traffic light announces this as well. ■

Night bus route to Vnukovo

new bus route that runs from the interchange hub at the Kitay-Gorod Ametro station to Vnukovo airport through the Lubyanka, Manezhnaya and Borovitsky squares, then along Bolshaya Yakimanka, Leninsky Prospekt and Boro- vskoye shosse has been established. The bus will run from Vnukovo Airport to the center from 11:30 pm to 4:30 am, and from the center to the airport from 1:00 am to 6:00 am. Buses will come every 30 minutes, and the route will take 1 hour 22 minutes each way. At the final stop in Kitay- Gorod, passengers will be able to transfer to most other night routes in Moscow: H1, H2, H3, H4, H5, H6, H7 and M10. Dur- ing the day, Vnukovo International Airport is connected to the nearest metro stations by the city bus routes No. 911 and 611. Now, airport passengers will be able to use public transport at night as well. ■

October-December 2018 CAPITAL IDEAS 53 Sergey Sobyanin opens the largest park beyond MKAD

in 2017, enabled the establishment of a major city park with quality infrastructure. It’s a good place of leisure for the residents of South Butovo — one of the largest districts in Moscow, with a population of 200,000 people.

There are 4 summer stages in the park: a green theatre for 300 people, a summer theatre for 100 people, and amphi- theatre for 170 people, and a dance floor. They will be used to hold concerts, dances in the evenings, and other events.

The park’s guests can rest in 10 covered gazebos (“Shamrock,” a chess house, five tea houses, two summer libraries, and a cafe).

Numerous pergolas — green cano- pies — will be the park’s main attrac- he city landscape park in South Sobyanin said during the opening cer- tion. One of them has a swing installed Butovo stretches over 142.5 hect- emony for the park. underneath. T ares and is 7 kilometers long. In terms of total area, it’s similar to the The highlight of the park is its water ar- The establishment of numerous children's largest green spaces in Moscow: Gorky eas: the Chernyovskiye and Gavrikovs- and athletic spaces was an important part park and Sokolniki. “When I came here, kiye ponds. The Koryushka River (also of the project. There are also 2 picnic ar- I wanted to make a good, quality park, called Chernyanka) also flows through eas with 15 seats each, paths for walking, because there was a huge district here the park. The total water surface area wooden decking, benches, urns, bath- and a lot of green space far from the amounts to 19.5 hectares, not counting rooms, navigation racks, lighting supports center of Moscow and the city parks. streams and channels. and video surveillance cameras. I really wanted a quality, big city park here. I hope we were able to achieve The improvement project, which was There are more than 12 kilometers of this goal,” Mayor of Moscow Sergey approved by the Moscow government bicycle paths for fans of cycling. ■

Mauboussin French jewelry boutique in Afimall

he story of the French jewelry approach. The creations with semipre- boutique dates back to the be- cious stones and recognizable collec- T ginning of the 19th century. Since tions featuring the famous jeweler’s 1827, the jewelry makers of this fam- symbol (a star) have made the brand ily business have embodied their pas- especially popular. sion for precious stones in gorgeous jewelry. The brand’s clients include People can now look at, try on, and members of royal families and golden purchase signature jewelry in two lo- era Hollywood divas Greta Garbo and cations in Moscow, because the brand Marlene Dietrich. Photographs of the recently opened another boutique in latter are still kept in the Paris salon. Afimall shopping center. The first bou- They show Dietrich stretching out her tique opened its doors at the end of hand to show off the emerald bracelet 2017 in the very center of the capital, around her wrist. Today, Mauboussin on Nikolskaya Street. Aside from jew- is a combination of the heritage left elry, both boutiques also offer Mau- by the French jewelers and a modern boussin fragrances. ■

54 CAPITAL IDEAS October-December 2018 The first Sephora in Russia

eauty addicts from all over Rus- sia have been waiting for this for Ba long time — Sephora has finally opened its doors in the Aviapark shopping center. The store houses over 10 international cult brands, including the unforgettable Kat Von D Beauty, the high-fashion Marc Jacobs Beauty, the natural Becca, the bright and magnetic Huda Beauty, and many others. Trendy publications write about them, and bloggers and celebrities recommend them. The store has both new beauty brands that can only be found here, and famous brands that are already popular all over the world. There is skincare, fashionable fragrances, hair products, and bright and expressive makeup.

Since Sephora’s founding in 1969, the company has been establishing new trends with their unusual approach to is part of LVMH (Moet Hennessy Louis ra was the recipient of the “Retailer of the beauty industry — turning shopping Vuitton Group) and is the leading inter- the Year” award at the World Retail into a pleasurable pastime. Sephora national beauty retailer. In 2018, Sepho- Congress. ■

The largest Breguet boutique in Europe opened at GUM

wo floors of a new Breguet store of famous people and members of the that belonged to Prince Shcherbatov, with a total area of 317 square me- Russian elite. Prominent Russian figures the watch sold to Anatoly Demidov, and T ters have opened on the 1st line of have owned Breguet watches through- many others. Visitors can also master the the GUM. Decorated in an exquisite style out the years: Alexander I of Russia, poet art of applying complex guilloche pat- with the help of ultra-modern materi- Alexander Pushkin, and composer Sergei terns in the Breguet boutique, because als, the space is an elegant fit for a luxury Rachmaninov, for example. Some of their the store has an old hand-made guil- watch store and the historical watches are on display among Breguet’s loche machine that was made in 1910. It architecture of the GUM. The exhibits in the GUM museum. There is was brought to the GUM directly from two floors, which are jointed Prince Sergei Golitsyn’s traveling watch, Vallée de Joux, which is where Breguet’s together with a marble stair- a small table clock made out of four parts headquarters are located. ■ case, complement each other perfectly. The first floor is the boutique’s showroom, which features the Breguet collection, as well as jewelry made by the watchmaker’s specialists. The second floor houses an official center, reception rooms with a view of the Kremlin, and the first Breguet museum in Russia with a ro- tating exhibition.

Russia and Breguet are linked together with a long history that includes a lot

October-December 2018 CAPITAL IDEAS 55 Gastronomic news

Usachyovskiy Market has famous home- made cheese from the shop located right in the market, uncomplicated village-style dishes, and a familiar interior. Most of the menu is comprised of the chain’s biggest hits, which people book tables a week in advance to try and are willing to wait in long lines for on the weekends: straccia- tella with arugula and tomatoes, salmon with potatoes, and magnificent pies with fresh blueberries. And of course, there are different types of cheese on offer: ricotta, burrata, mozzarella, scamorza, and others. The restaurant is separated into a main hall and a spacious summer veranda that feels like it’s floating above SYROVARNYA ON USACHYOVSKIY new trends, attending workshops, meet- the street. Like in other restaurants by the MARKET. All over the world, food mar- ing chefs and farmers — people can do same chain, the Syrovarnya at Usachy- kets turn into locations for food lovers all of this in one place. You can come to ovskiy Market has a shop where you can to get together and are attracting more the market with kids or your whole fam- take cheese, sweets, and other products and more food connoisseurs. Buying food, ily, go on a date, or meet up with friends after dinner or just on your way from one dropping into a restaurant, checking out and colleagues. The new Syrovarnya at farm shop to another. ■

HAPPY END BAR & KITCHEN. This is cur- and London dishes. Happy End is open for rently the most trendy place in town and brunch from 12.00 pm to 4.00 pm on the is definitely worth a visit. The new place weekends. The interior is relevant and new, from the owners of Pachamama Group in done in the style of a New York millennial London and Bek Narzi opened its doors at apartment. The cocktail menu has a lot of the Patriarch’s Ponds, on Spiridonyevskiy charming twists on 90s classics, and is one Pereulok 9. According to the owners, it’s of the best cocktail menus in the city. More not a restaurant in the literal sense of the complicated drinks are mixed in the up- word. The food here is good, but there is per bar, in a yellow Japanese style room for also a pleasant bonus. When putting the 13 people. There is no menu, but there are menu together, the restaurant stressed bartenders who are good at figuring out Peruvian cuisine, as well as Asian, Brazilian what each guest would want to drink. ■

PANDA EXPRESS. The largest Chi- Panda Express opened in the US in nese cuisine chain Panda Express 1973, and was founded by Asian immi- is finally on the Russian grants Andrew and Peggy Cherng. The market: the brand’s first chain now has over 2,000 locations restaurant opened its all over the world and and is the larg- doors in the Mega Kh- est Chinese fast food chain in the fast imki Shopping Center casual segment. Negotiations with the in Moscow. The com- Cherng family were held for 5 years pany Panda Express Rus- before the restaurant could open in sia was registered at the Russia. The menu features the famous end of 2017 and is now orange chicken, beef & broccoli, Kung part of Shokolad- Pao chicken, noodles, and a WokSmart nitsa Group. healthy food menu with dishes that The very first don’t exceed 300 calories. ■

56 CAPITAL IDEAS October-December 2018 and the spicy sauces are mild enough for a European palate. Here, cooking is a kind of ritual — it can be done inde- pendently or entrusted to the waiter. Guests have different types of meat to choose from: marble tenderloin, pork brisket, beef ribs, pickled ribeye. There are several types of sauces and ingre- dients — nori, kimchi, vegetables, and mushrooms. The bar focuses on cocktails based on Korean alcohol: rice ale and soya. Ginger, cinnamon, turmeric and other spices add flavor and tart- ness to the beverages. The non-alco- holic drinks are heavy on the spices as K-GRILL. A new Korean restaurant on grills installed at every table. The res- well: the ginger lemonade has curry, Sadovaya-Chernogryazkaya Ulitsya taurant’s chef combined the traditions and turmeric is added to the grapefruit 10/25, K-Grill focuses on bulgogi, or Ko- of North and South Korea: sour dress- iced tea. Guests can see their dishes be- rean barbeque. Every guest can make ings, sweet sauces, pickled snacks. All ing prepared in the kitchen through a it themselves, which is why there are of the flavors come together perfectly, huge window in the restaurant. ■

VERTEL. The “Gastromarket” on Ma- roseyka 4/2, bldg. 1 now has the first Vertel Israeli cuisine corner in Mos- cow. The foundation of the restaurant’s dishes is marble beef cooked on a real Lebanese skewer that is about 100 years old. The menu features over a dozen Middle Eastern dishes, from shawarma in pita and hummus with falafel to saj with lamb meat. On some days, you can bargain here like in a real Israeli bazaar. The goal of the project is to introduce visitors to high-quality Mid- dle Eastern street food. The rael and Turkey, and 50% of the dishes hummus are freshly-baked right before spices are shipped from Is- are vegetarian. The lavash and pita for before serving. ■

CHINA BLUE. A Chinese restaurant from the owners of Darbars and Tokyo has opened its doors in the Azimut Hotel on Smolenskaya 8. The menu features traditional Chinese dishes: spring rolls, spicy cucumbers, dimsum, wasabi shrimp, rice, noodles, and crispy eggplant. The restaurant’s interior is done in darker colors: the ceiling is painted red, and the floor is lit up with a bright blue light. It’s a great atmosphere, and the prices are fair as well. The average check is about a thousand rubles, which is a big plus for a restaurant in the center.■

October-December 2018 CAPITAL IDEAS 57 NOTHING VENTURED Zou Gang: Ancient Moscow looks younger

In March 2018, the Chinese company Baosteel Europe GmbH opened an office in Moscow, putting Ms. Zou Gang in charge. She is not just a business woman but also, according to her male colleague, is very smart and beautiful. Zou Gang loves Moscow and speaks excellent Russian, so that’s we started our discussion with.

How do you know Russian so well? I like Moscow. I like the ancient architecture, I like the Red Square and the Kremlin. You can never forget its I graduated from the Russian language department wide avenues, cozy alleys, and squares with a lot of at Harbin Pedagogical University in July 1991. So I ma- shade. After coming here once, you want to come jored in Russian. But textbooks are no match for talk- back again and again. ing with native speakers, so I’ve been in Russia many times since then. It’s also important to travel a lot and After graduating from university, I read a lot about the read classical literature, to work with primary sources history of Russia and its capital. And when I came to directly. Moscow for a big management job in November 2012, I went to a lot of museums and picture galleries in You lived and studied in Harbin for a long time. This spite of being very busy all the time. was the most “Russian” city in China, right? I like Russian ballet and the opera. I recently went to a A hundred years ago, Harbin’s population increased gala concert at the Kremlin Palace. significantly due to an inflow of refugees fleeing Bol- shevik Russia. Russian manufacturing, science, and In your opinion, how has the Russian capital changed culture developed successfully in Harbin. over the past five years?

There is still a Russian community in Harbin today, Moscow looks younger and better. The city has be- but the kind of Russians who live there are different. come noticeably cleaner. There are excellent roads, For the most part, these are students, mixed Russian- modern interchanges, a high-speed metro, and pe- Chinese families, and people who come to Harbin for destrian areas. The entire center has gone through a work. lot of restoration, and it’s a pleasure to look at. I really like walking around in Moscow parks, like Kolomen- Do you have a favorite place in the Russian capital? skoye and Tsarytsino.

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NOTHING VENTURED www.ecommerce.ibaosteel.com

I also have a lot of positive impressions of people who It’s hard not to notice that there aren’t many wom- live in Moscow. In spite of the crisis and Western sanc- en in the international business community today. tions, Muscovites have remained warm and friendly. How are things in China in this respect?

People in Beijing often complain about pollution. People everywhere think that business is a man’s job. In How is the air Moscow? China, business people are also overwhelmingly men. But there are women as well. And this situation is unlikely to The majority of modern Beijing offices operate with change in the near future. At least not in China. It’s also a the windows closed, and the air is circulated through tradition that goes back thousands of years — men have air conditioners. This happens because the air is very occupied key positions in society for a long time. polluted. The reason for this is Beijing’s geographic location: it’s surrounded by mountains on three sides, Chinese women are pretty domestic for the most part. and the city itself is in a basin. Plus, the tall buildings They wait for their men to come back from work, take create serious problems in terms of air circulation. The care of the children, and look after the household. large number of cars, which is growing exponentially Chinese men are providers. They work hard, provide every year, also plays a big role in terms of pollution. for the family, go on business trips.

In any case, the Chinese government is doing a lot At the same time, women are by nature more social right now to improve the environmental conditions in than men. A woman who takes case of the house- Beijing and other cities in the country. hold is always working. She keeps track of thousands of details and never gets to rest in the complete sense Moscow, on the other hand, is in a better geographic of this word. Dozens of domestic tasks start early in location. In spite of the large number of cars, the air the morning and only finish late into the night to start isn’t very polluted, even in the center. Seeing the blue back up again in the morning. This state of affairs has sky over my head makes me extremely happy. made women more resilient than men, able to con- centrate on specific tasks and work to accomplish In your opinion, is doing business in Moscow under things continuously, even if it’s in small steps. current conditions comfortable for foreigners? So you can’t really call women “the weaker sex” in It’s pretty good, we have nothing to complain about. terms of business, and the annual increase in the Both service and living conditions in Moscow are very number of successful female entrepreneurs and top well organized. There are good office conditions as managers serves as testament to this fact. well. This is an accomplishment for the city’s current mayor, Sergey Sobyanin. It’s obvious that he is a pro- Though I’ll say again that this isn’t so much the case fessional who loves what he does and does it well. for traditional China.

60 CAPITAL IDEAS October-December 2018 www.ecommerce.ibaosteel.com

Do you have a lot of women working in your office In the US, Canada, Japan, Korea, Australia, Singapore, in Moscow? Germany, South Africa, Spain, Italy, Turkey. There are 18 countries overall. Our office is small. There aren’t many employees, and most of them are men. But there is endless work to be A lot of people in the West seem to think that the done. People call us “the window into CIS.’ Chinese gravitate more toward the US than Russia. Is this the case? Could you talk about what Baosteel does? I think this depends on what specific people want or Our company is the largest in China’s iron and steel don’t want. In this case, the US needs, for example, industry. It’s in second place in the world in terms of electronic appliances or mobile phones that are made steelmaking capacity and strives to become the most in China. Right now, affordable, quality goods are in competitive and most attractive manufacturer from high demand in the US. the investment point of view. Moreover, Americans often experience shortages of In March of this year, Baosteel opened an office in affordable consumer goods. China, in turn, purchases Moscow. It’s in charge of promoting the company’s cars, chemicals, and plant products from the US. This products on CIS markets. is called business.

The company has been manufacturing steel for the Our relations with Russia are another story. You automotive industry for over 25 years, and has over supply us with oil and gas, and we supply you with 20 years of experience in the production of high- clothes and cars. But the difference is that a strong strength steel. Baosteel offers a wide range of spe- friendship between our people is at the foundation of cial services and technical support for our partners our successful trade and economic relations. We don’t in the automotive industry, from the development do anything to harm each other. This has been the of the bodies to the launch of products and qual- case historically and it will always be the case. ity control. The company’s products meet the highest international quality standards and include new Do you live here with your family? generation of automotive high-strength, as well as first-class steel for the production of household My family members can come visit me in Moscow often. appliances, oil and gas pipes, 100-meter rails and so on. This is a lot of trouble for you, right?

Aside from Russia, what other countries does Bao- I must admit I also miss my family and friends. But steel have offices in? I often go to China as well. ■

October-December 2018 CAPITAL IDEAS 61 NOTHING VENTURE Michael Zipfel: Retail business will develop rapidly in Russia Selgros Group is an international retail chain that has been operating on the Russian market since 2008. The company sells goods to firms, institutions, individual entrepreneurs, as well as to private customers. Selgros is owned by Transgourmet Holding AG, which in turn is part of the Swiss trading company COOP-Group. Over the past 10 years spent on the Russian market, the company has shown good results and is expanding according to plan. Michael Zipfel, who has been the CEO of Selgros Cash & Carry Russia, talked to Capital Ideas about his time in Russia.

You moved to Russia with your family five years ago. In your opinion, how is Russia different from other coun- What was your first impression? tries you’ve worked in when it comes to doing business?

I’m still horrified by how different reality was from what First, there is a giant market here, which consists of over 140 I had pictured in my head about Russia. Moscow is a won- million consumers. Because of the size of the country, con- derful city. Though it can also be incredibly exhausting. Rus- sumer behavior varies by region. This is very interesting to sia is a very big, diverse, and complex country… People here work with, and is a real challenge for any business in terms are welcoming and proud. Right now, I’m happy I came to of determining product range. this country and was able to form my own impression of it. But there is still a lot of bureaucracy here. It’s still very much What advice would you give to your compatriots and in effect, and manifests differently in different regions in other expats moving to a different country for work? Russia. There are a lot of challenges in day-to-day life as well that are a problem primarily for small and medium- When you make the decision to work abroad, you need to sized businesses. be prepared to encounter that other country’s culture. And of course, knowing foreign languages is an advantage in in- How would you describe the Russian style of doing ternational food trade. Speaking from personal experience, business? I can recommend getting some experience living abroad when you’re younger – go to another country to study or Personal relationships are the biggest deciding factor when do an internship, and just take an interest in other cultures. it comes to doing business with Russian partners. In order

October-December 2018 CAPITAL IDEAS 63 NOTHING VENTURE www.facebook.com/selgroscashandcarryrussia/

to establish a good relationship with Russian business part- sales strategies. The concentration will increase both in ners, you have to be ready to learn about their intentions. trade and in terms of producers. There are no alternatives This often takes up a lot of time. Herein lies the difference to digitalization. between us – the way we organize people, our living space, and social relationships. Selgros Russia is part of TransGourmet, which is the second largest cash & carry enterprise in Europe. As a subsidiary What challenges did you run into when developing Selgros? company operating on the Russian market, we have relative freedom and can make a lot of strategic decisions about our People in modern society want to derive pleasure from the activities in Russia on our own. This gives us flexibility and process of consumption, which is good for retailers – that’s room to take risks. By opening a new prototype in Septem- how we get the opportunity to come out ahead in the price ber, we’re establishing new standards in Russia for working war. Today, the atmosphere of shopping is acquiring a spe- with professional clients in terms of both stationary trade cial significance. Formats that target “experience shopping” and delivery services. Flexible solutions for clients on the try to surprise their clients. They’re dynamic and entail a spot and the security that comes with a big company, and combination or rest and active leisure. our experience in various European countries give us a significant competitive advantage. For professional clients, delivery service is becoming key. And this already something bigger than just delivering gro- How has business changed over the past few years in ceries. You need to develop completely new business mod- terms of trade turnover? els. Starting from the first contact with a client through an operator or an answering machine, the right product range, Like all retailers, Selgros is suffering from low end user pur- and logistics. Here, Selgros Russia is offering something chasing power, as well as the situation with professional cli- completely different with its multichannel approach. ents, primarily from the HoReCa segment. Of course, this impacts trade turnover before anything else. We’re not see- It’s great to have the opportunity to take part in this. The ing growth that’s as strong as it was a few years ago. Russian market is open to new things and isn’t limited by structures shaped by history that have been in place for Have the sanctions and the political climate impacted many years. Selgros and the segment overall?

What is competition like in your market segment? What For western companies, Russia was a promising market just is the main competitive advantage of Selgros? a few years ago. Today, the Russian market is among one of the most unstable markets in the world. Of course we’re Retail has always been a fast-paced industry, and it will feeling the impact of the political climate on our business, continue to develop quickly in the future. The change in just like all of our competitors. consumer behavior accounts for the scale here. Consumer power is growing, and market participants have to pay for What can you tell us about your buyer? every mistake immediately. Because competition is constantly growing, we, as a commercial enterprise, cannot 10 years ago, when Selgros started working in Russia, we forget about this within the scope of our traditional sta- were very surprised that the end user adopted the cash & tionary trade formats or when it comes to creating new carry model, which was initially geared toward professional

64 CAPITAL IDEAS October-December 2018 www.facebook.com/selgroscashandcarryrussia/ clients. It was also interesting to watch how the end user What are your development plans for the next few years? changed over these years, developing new requirements for our product range. Today, the end user even dictates their We have a strong position on the market, and our team has own trade format. This is the challenge a lot of retail enter- accomplished a lot over the past few years. But we have a prises are running into. lot of challenges ahead as well: competitive displacement, an increase in costs at every level, a switch from analog to Have you noticed a change in consumer behavior over digital formats. This isn’t just about online shopping, be- the last few years? cause restaurant food delivery services are also our competitors. When someone orders food there, they’re not going to The economic crisis has been going on for several years, so buy it from Selgros. We want to remain a reliable partner for people’s personal savings have been significantly depleted. both professional clients and end users. We’re going to con- Moreover, half of the population is paying off one or more tinue developing and improving our delivery services, and bank loans. Additionally, many people have stopped stocking also expand our shopping center chain. The Russian market up on things ahead of time, since nobody is expecting such has a lot of potential for us in this sense. sharp price increases anymore. Overall, Russian consumers have become more frugal in their spending. As a retail market About a year ago, Selgros Russia acquired Global Foods, participant, we’re seeing an increase in consumer demand for which specializes in supplying products to hotels and cheap products, which appeared as the result of a drop in the restaurants. How is this integration coming along? population’s real income. Today, a Russian consumer is willing to go to several stores to find what they need at a bet- The integration of Global Foods into Selgros Russia is going ac- ter price. The price has become a key factor when it comes cording to plan, but Global Foods was already managing fine to making a decision about a purchase. A lot of Russians go before us. There is no need to change something that has been online to compare prices, then select the best offer. Over the working well, so Global Foods operations are going to have a past few years, online shopping in Russia has become easier. significant level of independence. However, in areas where we Delivery is often free. But there is reason to have hope. Many can obtain synergy, like with joint purchases, we’ll be doing so. Russians say that they are a bit better off financially in 2018 than there were in 2017, and are making purchases they’ve Do you have a work motto? been putting off. People use credit a lot. Still, price remains the deciding factor. “If you’re a gnome, do things giants can’t do” – this is a quote from Niki Lauda. I mean to say that we may not be Do you plan to open an online store? the biggest player on the Russian retail market, we might not have as much weight to throw around, but we’re differ- Yes. We’re working on building an online store for profes- ent from others because we know our clients well and can sional clients. But it’s not enough to open an online store. offer products and services that are the perfect fit for them. Aside from everything else, you need good logistics. Also, This is equally true for our meat shops in terms of hygiene as a commercial enterprise, we want to make money. And and product quality that meet German standards, and for we don’t see this with a lot of our competitors who have individually tailored delivery solutions. opened online stores. We want our online store to work well and meet the needs of our clients. So we’re giving our- We’ve had a lot of success with this motto in the past and selves a bit more time to prepare. I’m sure it won’t let us down in the future. ■

October-December 2018 CAPITAL IDEAS 65 NOTHING VENTURE The Russian market has a lot of potential

The name KUKA Robotics, which How long has KUKA been on the Russian market? Was it difficult to get established here or did you is headquartered in Augsburg, the manage to bypass all the challenges?

capital of Swabia located in the KUKA is celebrating its 120th anniversary this year. south-west of Bavaria, speaks for The company established an office in Russia over 10 years ago. Even in this brief period of time, we’ve itself. KUKA is one of the world’s run into the ups and downs that were happening with the country’s economy. In spite of this, the leading robotics and automation company has managed to establish itself as a mar- technology companies, with an ket leader. annual turnover of about 3 billion In a more general sense, KUKA has been on the Rus- sian market for a long time now. The first projects euros. The company offers the full were implemented way back in 1968 for KAMAZ. In range of services, from individual June 2018, our companies signed a new agreement on global strategic cooperation at the Automatica robots to automated production exhibition in Munich. We’re glad that for the past 50 years, one of the country’s leading technology lines. Dmitry Kapishnikov, the CEO companies has been committed to implementing of KUKA Robotics RUS, told us more advanced robotic systems on their manufacturing sites. about the company in an interview How is business going in Russia right now? What with Capital Ideas. kinds of products does KUKA RUS offer in Russia, and which fields is it used in? Can you think of examples of your robots here? What do they do?

Our volumes grow, on average, by 30 percent a year. The main sphere that KUKA Russia wants to

October-December 2018 CAPITAL IDEAS 67 NOTHING VENTURE

continue developing is the implementation of proj- are installed in Russia annually? What is KUKA’s ects that use industrial robots. The automobile and share of this total volume? metalworking industries — these are the spheres that typically use these kinds of solutions in our The study conducted jointly by the Russian Associa- country. Robots already weld and paint the bod- tion of Robotics (RAR) and the Ministry of Industry ies of cars, collect consumer goods on pallets from and Trade in 2016 showed that 70 percent of enter- the conveyor line, and perform other routine, time- prises don’t use industrial robots at their factories. consuming, and often dangerous work. Our goal is Also, according to the International Federation of to introduce robotic solutions in spheres that don’t Robotics (IFR), Russia is way behind other coun- typically use them, like the banking, aerospace and tries in terms of robot saturation in manufactur- nuclear industries. ing. There are currently 3 robots installed for every 10,000 employees. On average, this number Nonetheless, we try to avoid limiting ourselves to amounts to about 80 units in other places in the just these spheres. We’re counting on digital solu- world, and maybe even higher. In our country, there tions for turn-key automation of manufacturing are over 700 industrial robots installed every year. processes with the help of not just industrial robots, KUKA is a leader on this market, accounting for over but also robotic mobile platforms and industrial a third of this volume. machines. KUKA is changing its approach to manufacturing organization, implementing a matrix Is there something fundamentally different model in modern enterprises. about the Russian market compared to the Euro- pean market, for example? There is also the concept of manufacturing localization, which a series of foreign companies, in- The Russian market is a developing one, and it’s cluding German companies, are currently imple- similar to the markets of other developing coun- menting. Does your company have plans like this tries, where the share of metalworking is over 50 in Russia? percent. The European market is considered developed. There, the share of metalworking amounts to For us, the Russian market has a lot of potential: less than 10 percent. And the main share of this is sooner or later, the country will undergo a sharp machine tool maintenance and the food industry. growth period that will be linked to the modernization of manufacturing facilities for the introduction Is there reason to believe the Russian market will of robotic complexes. KUKA actively promotes these grow? solutions in Russia. The Russian industrial robots market has just started to develop. We are consid- One sign is that a foundation has been created at ering the possibility of establishing robot assembly the state level for the introduction of automated factories here once it makes financial sense. One of systems in the country’s enterprises. Right now, the conditions that would have to be met is that the there development of digital manufacturing is a pri- market would have to grow to at least ten times its ority area of development for Russia. But it’s equally current size. Still, KUKA Russia is working on a num- important to inform business representatives about ber of partial localization projects and hope that we’ll the advantages of implementing automated solu- be able to announce the launch in the near future. tions in factories in general, and especially about the advantages of robotic systems. This is exactly why Does your company only supply the equipment, the topic of digital manufacturing was a key subject or do you also do installation and maintenance? at the Innoprom Exhibition — the main industrial platform for the exchange of experience between KUKA’s base in Russia exceeds several thousand ro- business and government. Our CEO Stefan Lampa bots. It’s one of the largest infrastructures among gave a presentation at the main strategic session all industrial robot manufacturers in Russia. So de- together with Denis Manturov, the Russian Minis- veloping our service line is a priority task that we’ll ter of Trade and Industry. be working on in the nearest future. We offer the same range of services in Russia that KUKA offers all Moreover, from the time we first started work- over the world: a 24-hour technical support hotline; ing in Russia, we’ve been training personnel for service plans for warranty and post-warranty ser- the industry. There are robotic systems labs in the vice; and training in the KUKA College training cen- country’s leading educational institutions that were ter, where graduates get European-style diplomas. established with KUKA’s industrial robot base. Our company has been an official partner of WorldSkills To what extent are enterprises in Russia robot- Russia since 2015 in the “Industrial Robotics” cat- ized? Would you be able to say how many robots egory.

68 CAPITAL IDEAS October-December 2018 Another task that we’ve set for ourselves is the efficiency and improve our quality of life by elimi- establishment of technological solutions based on nating routine work. They give us the opportunity our robots. We’re creating an environment for the to spend more time with families, or doing intellec- development of partnerships with technology in- tual and creative labor. This may play out differently tegrators who are developing solutions for milling in fantasy films, but the reality is that people deter- turbine blades for the aviation industry or sorting mine how robots work. Not the other way around. banknotes for the banking sector, for example. All of these are Russian companies, Russian know- In your opinion, what will a factory of the future how, and Russian patents. look like?

Usually, when discussing topics like automation Right now, we’re seeing a transition from tradition- and robotization in manufacturing, the following al conveyor belt systems to systems based on mo- question pops up: can robots ever replace people, bile robotic platforms. KUKA has already signed its and is there a chance of them taking over? first contract with one of the leading German auto manufacturers to replace a conveyor-type assem- As people who work for a company that develops bly line with a line based on automatic platforms. industrial robots, we understand that they’re creat- This is one industry trend that KUKA is actively de- ed to help people: to replace them in dangerous and veloping. Creating plants of the future is our key physically tough positions. Robots increase labor competence. ■

October-December 2018 CAPITAL IDEAS 69 NOTHING VENTURED

Andrea Impero: Moscow is the best city to live in

Andrea Impero has been working in the kitchen since he was 14. By age 27, he has managed to show off his culinary talent in Rome, London, and Vladivostok. The young chef’s ambition and ability to work brought him to Moscow, where he is developing a project called Maritozzo, managed by the famous chefs Marco Gubiotti and Ivan Pizzoni. Maritozzo includes a restaurant, cafe, and wine bar. Andrea talked to Capital Ideas about his experience with Moscow and the people who live here.

70 CAPITAL IDEAS October-December 2018 Andrea, how did you end up in Russia? guests due to this event. We plan to travel in the fall. We really want to go to Crimea and Sochi. I was invited by chef Marco Gubbiotti lo launch a new project in Moscow, which included fine dining Weren’t you afraid to come to Moscow? Some for- restaurant,wine bar and caffetteria. In that period eigners think that Russia is a wild country where I worked in london under the guide of Antonio Mel- bears roam the streets. lino, 2-Michellin-star chef, and I was interested to use this my experience. That's why I agreed. This is an opinion that people who belong to the older generation usually have. I don’t know how things Had you been to Russia before this? used to be, but right now Russia is no less civilized than Europe. Moscow is the best city I’ve ever lived in. When I was 18, I had an internship for a month at Rome and London are good places to travel, but hard Anatoly Komm’s restaurant Varvara. In 2012-2013, to live in. Moscow is very clean, there are places to go I worked at an Italian restaurant in Vladivostok, doing for walks, things to see. consulting work and creating a new menu. And what about the people? You came with your wife. Could you tell us your love story? They say that Russians are unfriendly and not talk- ative, but that’s not the case. My first impression was It began in Rome, six years ago. I was a simple cook that people were a little cold. But when you get to back then, and was cooking under the instruction know them a little better, it turns out that we have a of my teacher, Don Alfonso Iaccarino in Sorento in lot in common. The first thing is that we’re both very restaurant Taverna del Capitano where I worked for emotional, and we like entertainment and holidays. 4 years. Martina worked at the same place as a wait- ress. From then on, we went on all of our adventures What about your favorite places in Moscow? together, moving to London, Vladivostok, and now Moscow. Martina is our service manager at Maritoz- I really like the Patriarch Ponds, and my wife and I go zo. By the way, we got married in Rome on May 5th. to Gorky Park. We’ve seen the whole center, have been to the Kremlin several time, went to museums, So you both spent your honeymoon working? rode the metro. Martina really likes the GUM — it’s beautiful, even though it’s really expensive. Yes. It’s more than just work for us, it’s our lifestyle and it gives our lives meaning. And we launched I make sure I go to the market once a month, I like a new menu before the World Cup, we had a lot of the atmosphere, and I feel at home there. I mostly buy

October-December 2018 CAPITAL IDEAS 71 NOTHING VENTURED

vegetables, fruit, there is good meat sometimes. I re- We have suppliers that ship us fish and seafood from ally like Uzbek tomatoes, strawberries from Crimea, Morocco, Sri Lanka, and Tunisia. We buy our meat and red caviar. in Russia, from Miratorg’s premium segment or Myas&Co, and we get game from the Far North. How do you like Russian cuisine? We get imperial oysters and scallops from Vladivo- I love herring under fur coat! I really like pelmeni, but stok. They have the best scallops I’ve ever had, bet- only when they’re prepared correctly and are home- ter than French scallops. But they’re not always on made. I tried them at a restaurant once, and it was really the menu because it’s a seasonal dish and I’m totally good. But then I bought premade pelmeni at the store against frozen food. I think it’s better to not make a and it’s just not the same, even if you get the most ex- dish at all than to use bad quality products. pensive ones. I like Uzbek plov with lamb and red rice. Sounds like you’re a perfectionist, is that right? Have you been outside of Moscow? I always strive to be, even though it’s hard. Some- Right after I came, the whole team of Italians went to times we don’t accept shipments several times a day meet our suppliers and look at their factories. Among and return it to the supplier because the quality is not other places, we went to Tver Oblast, where the Ital- good enough. But it’s worth it. Our guests appreciate ian cheese maker Pietro Mazza makes cheese. Of this approach. course it’s not the same as real Italian cheese, but it’s very close to perfect. Have Russian clients already learned to tell good products from bad ones? Have you felt the effects of the sanctions? Undoubtedly, Russian people already know a lot Of course. When I came, I couldn’t understand why about quality cuisine, even though being a chef is not there was no good butter, cheese, and other products considered a prestigious occupation here yet. We had I’m used to. But then we found substitutes, although the same attitude in Italy 20-25 years ago, in the early we spent a lot of time looking. 90s. Now, a chef is a superstar who cooks with pas- sion, who puts their heart and soul into the menu. And Where do the products for your restaurant come I’m seeing these changes in Russia. There are more fa- from? mous Russian chefs, restaurant culture is developing, and it’s very noticeable.

What do you miss the most in Russia?

I really miss the sun and the sea! I miss my friends and my family. I have a really big family in Italy, like many people do. I want at least two children.

What do you dream about?

I dream about getting at least one Michelin star. I’ve been working in the kitchen for 13 years already, and I think it’s time to show some ambition.■

72 CAPITAL IDEAS October-December 2018 Always by your side capitalideas.moscow BETWEEN PAST AND FUTURE

Stefan Forster Architekten Renovations, German-style Moscow has started to implement a large-scale renovation program for the so-called “Khrushchyovkas,” the construction of which began back in the USSR in the 1950s. But these residential buildings weren’t only constructed in the USSR. They were built in other socialist countries as well. This format was especially popular in the German Democratic Republic. Back then, panel buildings that housed over 270,000 apartments like this were erected in East Berlin. After the fall of the Berlin wall, a lot former allies of the USSR launched state programs to renovate a modernize the socialist panel heritage.

74 CAPITAL IDEAS October-December 2018 The saving panel Before house-building plants that produced concrete panels for the construction of standard residential buildings appeared in the USSR, people in Soviet cities didn’t have many options to obtain housing. People were often huddled together in terrible barracks, and those who were lucky moved into fairly comfortable Stalin buildings (though, for the most part, apartments in these buildings were turned into communal housing). Only a handful of people who worked in creative professions, the sciences, or as politicians and administrators had their own housing. Everything changed at the end of the 60s, when the mass construction of five-story panel residential buildings began. They were as- Stefan Forster Architekten sembled in record time out of concrete panels or blocks that resembled Legos. The living conditions in these buildings met the absolute bare minimum standards. The first series of Khrushchyovkas didn’t even have garbage disposals. The kitchens were no higher than 5-6 meters, bathrooms often featured short bathtubs that you could only sit in, and the rooms were small as well. In later years, new series of panel homes with elevators and garbage chutes were developed. They had separate bathrooms and larger kitchens. But the first Khrushchyovkas were truly remarkable in terms of their their asceticism. Still, these were separate apartments — the cherished dream for millions of people in the USSR. Be- tween 1957 and 1985, over 5.8 million apartments were built in homes of this type. When the Soviet Renovations, German-style government understood all the advantages of building simple and cheap homes that were easy to erect, the political decision to take this positive experience to other socialist countries was made. East Germany, which fell within the USSR’s sphere of influence and wanted new buildings after WWII, was the first area that needed assistance. German Khrushchyovkas

House-building plants that specialized in panel and block housing were quickly constructed in the GDR. Soon after, the construction of German Khrushchy- ovkas began. In Berlin alone, several districts of block and panel residential houses were built in record time. For the most part, Khrushchyovkas were erected in Marzan, Hellersdorf, and Hohenschönhausen. Stefan Forster Architekten

October-December 2018 CAPITAL IDEAS 75 BETWEEN PAST AND FUTURE Stefan Forster Architekten

The scope of these construction projects was much the five-story buildings along with the nine-story more limited than the construction of similar build- Khrushchyovkas. In Germany, demand for the re- ings in new districts in Moscow. 270,000 apartments constructed five-story buildings turned out to be were constructed, which housed over half a mil- particularly high. This is because Germans took a lion East Berlin residents. Districts with panel homes practical approach to the reconstruction project, appeared in other GDR cities as well. It’s important and famous architecture firms were involved in the to point out that special series of Khrushchyovkas renovations. In the city of Halle, the architectural weren’t developed for the Germans. These buildings company Stefan Forster Architekten conducted the were exactly the same as the ones erected in the So- renovation project for five-story panel buildings. In viet Union. The gradual evolution of German Khrush- 2010, the firm received an award at the Interna- chyovkas, which made them more comfortable to live tional Architecture Exhibition for the best city im- in, took place at the same time that improvements provement project in Saxony-Anhalt. The concept to the layouts and amenities of these buildings were proposed by the firm was called “tightrope walk- made in the USSR. The most interesting thing is that, ing,” because it brought together the historical city 50 years after the USSR helped Germany resolve their centers and the districts with buildings that were housing problem in the second half of the 20th cen- erected in the 1960s and 1970s. The monotonous tury, Germans helped Russia make Khrushchyovkas panel homes transformed in front of people’s eyes. more appealing for modern city residents. For example, homes that had eleven entrances were split up into two buildings with five entrances each. In 1990, Germany launched a state renovation pro- In some cases, several floors were removed. The gram to make improvements to panel residential layouts inside the buildings changed as well. The ar- housing. Within the scope of this program, the chitecture firm constructed 18 different apartment Khrushchyovkas were renovated and modernized. types, including ones with private gardens on the Wherever possible, elevators were installed and bottom floors. Some five-story buildings were re- the buildings were lined with modern panels of dif- built as three-story houses, transforming them into ferent colors. The buildings were radically trans- cozy villas. One of the main complaints about the formed. This experience was helpful for Moscow in panel buildings was the ground floor. The residents the 2000s and 2010s, when the city started to mod- there were particularly uncomfortable because ernize nine-story block and panel housing. there wasn’t a barrier between their homes and the street — a problem that was resolved in an elegant Tightrope walking fashion in Germany. Stone barriers were erected in front of the ground floors to serve as buffer zones It’s worth noting that during the renovations of between building residents and pedestrians. The German Khrushchyovkas that were built in the residents typically used them to house beautiful 20th century, the German government renovated flower beds. ■

76 CAPITAL IDEAS October-December 2018 5years LETTERS TO THE EDITOR

Dear Capital Ideas, I am Rilind Elezaj communication manager at Day Translations. While searching for some business news I got in touch with your article about the ways of doing business in Russia at http://www.capitalideas.moscow/alexis-rodzianko-it-s-a-very-good-time-to-do-business-in-russia.html and I really liked the information you provided. I think that when you decide to expand your business in a foreign country there are some things that you should consider first, like the language and the way you communicate with your international customers and team members. I wanted to reach out to you to suggest a new article that we provided recently on communication tips for doing business in Russia. I think that sharing this article with your audience would be very useful for everyone that finds you page relevant in finding new and important information. Respectfully, Rilind Elezaj

Here’s the article Rilind Elezaj referring to. It appeared at Day Transla- tions site on June, 08 2018.

Communication Tips for Doing Business in Russia all decisions tend to rest on a single person who fulfills the role of a strong leader. This the person with whom a close The Russian Federation has a population of 144.3 million people, relationship must be established. All decisions taken by a GDP of 1.283 trillion dollars, and 17.1 million square kilometers of those below them in the corporate structure will be made land. It’s a culturally complex land rich in natural resources, and irrelevant if this person doesn’t approve of them. full of economic opportunities for local and foreign enterprises. 3. Express yourself in a detailed, precise and straightforward With the World Cup just around the corner, the world has its manner eyes on the Russian Federation. Perhaps, you are considering the possibility of expanding your business to the Russian market. Russian people appreciate warmth and friendliness, while respecting straightforwardness, clarity, and precise expres- Here, we share a few tips to ease negotiation and ensure effec- sion. This upholding of clarity and precision is evident in the tive communication with your potential business allies. structures of the Russian language, from its grammar rules to the sort of linguistic constructions that Russian people 1. Be patient and cordial tend towards.

This advice is always relevant, but it is particularly relevant 4. Unless you’re in St. Petersburg or Moscow, an interpreter here. Russian business people tend to value friendliness and is not just preferable but absolutely necessary cordiality, and give themselves the necessary time to make business decisions calmly. Sometimes, after being asked a If those with whom you’ll have a meeting, be they clients question, a Russian person might take a pause and, in si- or distributors, are based in St. Petersburg or Moscow, lence, think of an answer. This is very common, even in pro- it is safe to assume certain level of English proficiency, on fessional settings. their part. Of course, safer than to assume, it is to previously assess. It’s important to establish a close friendliness with your Russian business partners. A potential ally might invite you But, if the company you’re interested in doing business with to сауна (a sauna), to have some light-hearted conversation is based elsewhere and/or works exclusively for the Slavic and get to know you better. It’s also important to consider market, it’s most likely that an interpreter will be crucial to that a business partner will, most likely, expect and appreci- ensure clear, dynamic and effective communication. ate a gift characteristic of your culture. If you’re in need of a mother tongue Russian interpreter 2. Centralized leadership highly trained in business interpreting and etiquette, you can rely on us. We provide high-quality, culturally-sensitive In a previous blog post, we referred to several differences interpretation services either instantly, over the phone, or in in leadership styles across cultures. In Russian companies, person, within 24 hours of request. ■

October-December 2018 CAPITAL IDEAS 77 FACEThis and TO FACE that World Cup: stereo types take a big hit

The World Cup opened the eyes of millions of foreigners when it comes to Russians. They understood that Russians have nothing in common with the scary images painted by unscrupulous media in the West. A lot of myths have finally been dispelled. Russians are welcoming and friendly people. But what do Russians think of foreigners?

eople in Russia have always been wary to Russia for one reason: to make money and to of foreigners. Suffice it to say that, in Old save money. They left a few years later, having Slavonic, all foreigners were called pet’s’ learned nothing about the country or the lan- (mute) — “people who are unable to guage, and feeling nothing toward Russia except speak a comprehensible language.” Aside irritation, alienation, and fatigue. Pfrom incomprehensible language, foreigners also had other habits, behavior, and even clothes. All Thus, two lines of thinking evolved over the cen- of this made Russians treat foreigners with sus- turies with respect to Russian attitudes to for- picion and distrust. This was likely the case up eigners. There is distrust on one hand, and ad- until Peter the Great, who forced Russia to turn miration on the other. In one way or another, toward the West. Ever since then, Russian peo- these two lines of thinking still exist today. In ple’s attitude toward foreigners has started to this sense, the law prohibiting marriage between change. “After Peter the Great,” says Alla Serge- USSR citizens and foreigners, which was adopted eva, who has a PhD in Philology, “openness and in February 1947, looks harsh but logical. Among receptivity to everything foreign became the de- other things, the law stated that “Soviet women fining trait of Russian culture.” don’t feel well living in circumstances they’re not used to abroad and encounter discrimination.” Sometimes, this openness and receptivity Back then, those who violated this law were con- reached absurd proportions, like excessive ad- sidered enemies of the people. miration of everything foreign. For a whole two centuries, the most important people in Russia, International marriages only became more ac- for example, spoke French and neglected their cepted after the 6th International Youth & Stu- native tongue. Today this seems offensive to dent Festival, which was held in Moscow in 1957. Russians, even nonsensical — the same as if the Moscow hosted 34,000 guests from 131 countries. court of Louis XIV spoke Chinese. Even Alexander The festival was remembered for its friendliness, Pushkin, who later became Russia’s most promi- smiles, and open interactions between foreign- nent poet, learned how to speak Russian from his ers and young people from the USSR. Because nanny when he was a child. “There were a lot of of this, a lot of so-called “festival babies” were French people in Russia who had fled from the born in the spring of 1958. Many young moth- horrors of the revolution,” Alla Sergeeva explains. ers couldn’t conceal their brief encounters with At the same time, as she points out in her book foreigners because their children had darker skin. “Russians,” it’s hard to find a positive image of a After this, there were amendments made to So- French person in Russian literature. For the most viet marriage laws. In 1969, Soviet citizens were part, they are governesses and tutors invited into granted the right to start families with foreign- wealthy people’s homes to educate their chil- ers. In practice, however, these marriages were Pictures by Anastasia Saifulina Pictures dren. They often neglected their responsibilities, not welcome. Some echoes of those harsh post- weren’t well educated or clever, prone to adul- war times unexpectedly came up before the 2018 tery, and arrogant toward Russians. They came World Cup, when State Duma Deputy Tamara

78 CAPITAL IDEAS October-December 2018 World Cup: stereo types take a big hit

Pletnyova told Russian women to avoid intimate encounters with foreigners during the championship. In an interview with “Govorit Moskva,” she said that behavior like this results in children being born to single mothers, citing young people’s experience with the 1957 Festival and the 1980 Olympic Games as examples. According to her, both events led to an increase in the number of single mothers in Russia.

“The Deputy’s sentiments didn’t resonate with many people, because the championship was de- fined by love that had nothing to do with country of origin or the color of people’s skin,” journalist Sebastián Fest says, “A sea of fans spread out all over the city’s streets, talking to locals, listening to music, and dancing. Russian men and women gladly joined the celebrations.”

So yes, the 2018 World Cup helped do away with a lot of stereotypes that foreigners had about Russia, and also dispelled myths Russians had about foreigners.

A poll conducted jointly by Mikhailov & Part- ners, the Center for Knowledge Management Research Agency, and social media monitoring service YouScan confirms this to be the case. The results show that 93% of the people polled noted that foreigners saw that the people living in Rus- sia are the same as everywhere else. 87% think that Russia is a very cultured country, 81% of re- sponders said that the championship helped get rid of negative stereotypes created by the media, and 71% said that attitudes toward Russians im- proves after the World Cup. ■

October-December 2018 CAPITAL IDEAS 79 LIFE&CULTUREAutumn Marathon: from Bach to Julio Iglesias

American singer and conductor Bobby McFerrin 80 CAPITAL IDEAS October-December 2018 The Mariinsky Theater Symphony Orchestra, led by conductor Valery Gergiev.

his fall’s event list for the Zaryadye concert An important event has taken place in Moscow’s hall is already packed with surprises for music fans. Zaryadye is, essentially, several ven- cultural life — this fall marked the opening of ues in one place. The thing is that the stage can easily be transformed with the help of a the unique Zaryadye concert hall. On City Day Tspecial mechanism hidden underground. There’s no longer any need to move chairs around, because the (September 8), the hall’s audience members whole thing is done with a remote control. Press just one button, and the concert hall changes. The incred- heard a magnificent concert by the Mariinsky ible acoustics, which were developed by experts from Japan, will soon be tested out by stars from all over Theater Symphony Orchestra, led by conductor the world. For example, the famous American singer Valery Gergiev. The technology this concert and conductor Bobby McFerrin, who’s known world- wide for his hit “Don’t Worry, Be Happy,” will be giving venue is equipped with is being used for the first two concerts there in the beginning of November. His remarkable ability to improvise without accompani- time in Russia. ment, using only his voice, impresses everybody and is beyond any kind of scientific explanation. Bobby Mc- Ferrin uses his whole body when he sings, so that the audience gets the impression they’re listening to several different voices and instruments. Zaryadye won’t forget about fans of classical music either. In Novem- ber, there will be an interesting event for people who enjoy Johann Sebastian Bach’s work. The organizers jokingly point out that the genius composer never took part in marathons and wasn’t the most athletic person of his time. But on November 10, the two Zaryadye concert halls will host a marathon named after him. “You don’t have to come wearing sneak- ers or be in good shape for it,” the event description says, “The only thing guests have to do is listen. Bach’s genius music infects people with energy and has a positive effect on their cognitive abilities.” On Decem- ber 11, Zaryadye will host a performance by Take 6 — a world-famous American vocal sextet that performs gospel, spiritual, R&B, jazz, and pop music. They have 10 Grammys under their belt, along with a whole collection of other prestigious awards. www.facebook.com/Take6Official/ Take 6 October-December 2018 CAPITAL IDEAS 81 Julio Iglesias LIFE&CULTURE 82 CAPITAL IDEAS October-December 2018 paid totheartist’ssketches. works ofexceptionalquality.Specialattentionwillbe Museum, andseveralregionalmuseumsthathave lections oftheTretyakov Gallery,theState Russian ect willpresentover120worksbyKuindzhi fromcol- lot withlight,color, andcoloringpigments.Theproj- kind of romantic landscape. Kuindzhi experimented a half ofthe19thcentury.Thisartistcreatedaspecial of themostfamousRussianpainterssecond ip Kuindzhi —aprominent landscapepainter, andone be hostinganinterestingexhibitionofworksbyArkh- From October to February, the Tretyakov Gallery will "A BirchGrove". 1879 Arkhip Kuindzhi.

www.tretyakovgallery.ru happened on each other. Finally,they gotdivorced. incident. Theystartedtoargue alot,blamingwhat Romina, their relationship took anosedive after this & according to people who were close to Al Bano around hippiesanddecided to jointhem.Inanycase, sources insistthattheyoung womansimplyendedup clear whokidnappedherandwhy.Butsomemedia to oneversion,shewaskidnapped,thoughit’snot circulating afterYlenia’sdisappearance.According have sofarbeenfutile.Moreover, rumorsstarted her winterbreak.BothUSandItalianpoliceefforts US, inNewOrleans,whiletheyoungwomanwason est daughterYleniadisappeared.Ithappenedinthe for tough time. On January 6, 1994, the family’s old- 1984 withtheirhit“CiSara.”Butthesingerswerein They wonitseveraltimes,whichiswhathappenedin played asignificantroleintheduet’screativecareer. tigious ItalianmusicfestivalinSanRemo. Thiscontest song ‘Felicita,”whichthesingersperformedatapres- go.” Oneofthemostfamoushitsbyduetwas five yearslater co-releasedtheirjointalbum“Dialo- a familyunionaswell.Theygotmarriedin1970,and their creative union began, which soon turned into of Italymetduringafilmshootin1968.Thisiswhen duet isespeciallywellremembered.The future stars sian fans.ThememorableAlBano&Romina Power songs becamehouseholdfavoritesformillionsofRus- up intheUSSRbackthen.Theirincrediblymelodic in the80sstillrememberhowItalianperformersblew ing abigconcertinhishonor. Those whowerearound year. OnOctober25,the KremlinPalace willbehold- Bano Power, isalsocelebratinghis75thbirthdaythis Another singer who is loved by Russians, the Italian Al ful musiciansintheworld. in 1968.Iglesiasisonthelistoftop5mostsuccess- leased 82albumsoverhis50yearsonstage,starting have soldover300millioncopies.Overall,hehasre- top-selling singersinhistory.Asoftoday,hisalbums long agodubbed“thegreatSpaniard.”He’soneofthe tional tourbythefamousartist,whompresshas take placewithinthescopeofalarge-scaleinterna- 50th anniversaryofhiscareerinmusic.Theshowwill lio Iglesiaswillbecelebratinghis75thbirthdayandthe will becelebratingtwoevents—theoneandonlyJu- On October17,thesamestageatKremlinPalace tra — willbeperformingtohonorhismemory. and the“NovayaOpera”theatrechorusorches- Aida Garifullina,MarceloÁlvarez,AngelaGheorghiu, venues. Thesinger’scolleagues—IldarAbdrazakov, New York, andmanyotherwell-knowninternational Bolshoi Theatre,LaScala,theMetropolitanOperain preciated allovertheworld.Hehasperformedat years. His talent and incredibly beautiful voice was ap- lowing abattlewithbraintumorthatlastedseveral He passedawayonNovember22attheageof55,fol- in memoryoftheoperasingerDmitriHvorostovsky. 16, themainStateKremlinPalace willhostanevening for fansofallkindsmusicinMoscow.OnOctober In thefallandwinter, therewillbealotofsurprises Al Bano This is why their performance in Moscow is special. “virtuosic,” “flying,” “jumping,” “artistic,” “passionate,” Al Bano & Romina Power, the most beautiful duet in “demonic,” and “elastic.” The big gala performance at Italy, will perform their greatest hits one more time. the Moscow International House of Music will be a On November 3, 2018, the New Stage of the Bolshoi real treat for Ivan’s fans. He used Mikhail Fokin's ballet Theatre will be showing a new version of “The Barber “Scheherazade” and Maurice Ravel’s “Bolero” for his of Seville.” The production was directed by Evgeniy Pisarev, who already directed Mozart's “The Marriage of Figaro” at the Bolshoi Theatre back in 2015. Italian Pierre Giorgio Morandi, a guest conductor from the Helsingborg Symphony Orchestra (Sweden) will be the conductor. He regularly directs Italian operas all over the world.

November 6 will be a real treat for all fans of Ivan Vasiliev. Not so long ago, the famous dancer celebrated the 10-year anniversary of his creative career. It may not seem like that big of a deal, if it weren’t for the fact that Ivan has managed to accomplish more in his 28 years than most people can do over the course of their entire lives. In 2006, he joined the Bolshoi Theatre at the age of 17. Over the next few years, he performed at the the La Scala Theater, the American Ballet Theater, the Mariinsky Theater, and the Novosibirsk Opera and Ballet Theater. In 2010, he became a principal dancer at the Bolshoi, but soon after left the theatre and became a principal dancer at the Mikhailovsky Theatre, as well as a regular guest principal at the American Ballet Theatre. Tickets to see Ivan Vasiliev dance have been highly valued by fans of ballet for a very long time. He has received all sorts of praise from critics, who have called him

Ivan Vasiliev October-December 2018 CAPITAL IDEAS 83 LIFE&CULTURE

Uriah Heep production, “Ballet No.1.” The show will feature Bol- back together several times. Incidentally, Uriah Heep shoi Theatre soloists: Maria Vinogradova (Ivan’s wife), was the first rock band that performed in the USSR Denis Savin, Angelina Karpova, Anton Savichev, Alex- back in 1987. They gave 10 historical concerts at the ander Smolyaninov and others. Olimpiyskiy Sports Complex, all of which were completely sold out. On December 9, the classic rock legend Uriah Heep is coming to Moscow. The band will be perform- This year would have been writer Alexander Sol- ing all of their top hits at Crocus City Hall. Several zhenitsyn’s 100th birthday. There are several events generations of Russians grew up on their music. planned in his honor in December. There will be an The dinosaurs of rock continue to surprise the pub- unveiling ceremony of the monument to the writ- lic with their performances, even though the band er in Moscow, an opening of a memorial museum- has rotated between members, broke up, and came apartment dedicated to him, an international con- www.navka.show Ice show directed by Tatiana Navka 84 CAPITAL IDEAS October-December 2018 ference “Alexander Solzhenitsyn: a 21st Century Per- spective” in the Bolshoi Hall of the Pashkov House of the Russian State Library, a literary and musical evening for the writer’s birthday on December 11th in the Moscow Art Theatre, and much more.

At the end of the year, holiday season is coming to the capital. A lot of venues will be hosting special New Year performances for children. For example, the Olimpiyskiy Sports Complex will hold a water circus show with pirates for kids.

Famous figure skater and two-time Olympic champion Tatiana Navka is preparing another surprise for her fans — a new ice show “Scarlet Flower,” based on the famous fairy tale. Famous world-class ice skaters, the latest special effects, music specially written for the play — the combination of all of these elements ensures that this show will be exciting. The dizzying tricks, bright costumes, and dramatic lighting won’t leave any viewers indifferent. Of course, Tatiana will be skating in the show as well.

Producer Yana Rudkovskaya and figure skater Evgeni Plushenko, who are also a married couple, are putting together a unique ice show called “Swan Lake.” “The Nutcracker” a year ago, and “Swan Lake” is next Famous figure skaters and world-class ballet danc- in line. For now, the role five-year-old Sasha will play ers will perform on a stage that combines an ice in the show is a secret. This time around, Plushenko rink with a ballet floor. Tchaikovsky’s famous ballet Senior will leave the ice rink to dance as well. The “Swan Lake” is the foundation of the play, which will names of the dancers and ice skaters playing the lead combine the classical story with modern technol- roles have yet to be disclosed. Adelina Sotnikova, ogy. The producer herself has said that the show is who was a 2014 Olympic Champion, will definitely a combination of two genres. Figure skater Evgeni play the Black Swan. Plushenko has appeared on the ice with his son Al- exander several times, who regularly participates in The show will be directed by Sergei Filin — a former various shows and competitions. Gnom Gnomych, dancer who is now one of the directors of the Bol- as his parents lovingly call him, already appeared in shoi Theatre. ■

"Swan Lake" ice show with Evgeni Plushenko October-December 2018 CAPITAL IDEAS 85 Travel&Leisure For fans of steam rooms and bath brooms The most famous banyas in Moscow Muscovites have loved to wash and take steam baths in city banyas for a very long time, and nothing could ever stop them — not mass construction projects, and not the widespread emergence of personal bathrooms in people’s homes. Almost every district in Moscow had its own banyas. Even back in the beginning of the 19th century, the city already had 1,500 private and 70 state banyas. For a long time, public banyas in Russia weren’t separated into women’s and men’s banyas. Everybody bathed together. A decree issued in 1743 banned men and women from going to the banya together, but things remained as they were. During Catherine the Great’s reign, a new order required public banya owners to build separate rooms, and “only let in men who worked in the bathhouse, doctors, and artists into the women’s sections.” Capital Ideas has put together an overview of Moscow’s historical banyas that you can still visit today. Sanduny

f you haven’t been to Sanduny, you haven’t met every whim of the wealthy crowd. For Ireally been to Moscow. The story of these example, high society ladies could visit the famous Moscow bathhouses is connected establishment together with their dogs. to Sila Sandunov and Elizaveta Uranova — talented actors from Catherine the Great’s The technical infrastructure of the banyas were fantastic for their time. The water court theatre. After marrying the two lov- was supplied from the Moscow River with ers, the empress gave them diamonds, which a specially constructed water pipe, which Sandunov used to purchase a plot of land in stretched from the Church of Christ the Sav- the Neglinnaya River district in Moscow. He ior to the Prechistenskiye Gates, and from later bought his neighbor’s homes and de- there stretched across Volokhonka, Mokho- molished all of the buildings on his land in vaya, and Kuznetsky Most to the reserves of order to construct residential quarters and the bathhouses. In Sanduny, the water was shops. But soon, Sila Sandunov changed his purified with American filters, and was com- mind and decided to use the area to build pletely safe to drink. banyas. They were completed in 1808. Adherence to strict hygiene rules, electric Sanduny have always been, currently are, and lighting (a special power station, which was always will be the best banyas in the capital. In the first largest power station in Moscow, the 19th century, they were a true miracle of was built for the banyas) — all of these in- architecture and engineering that impressed novations made Sanduny a true palace of visitors with its halls, vaulted ceilings, rich stuc- cleanliness. co molding, paintings, and marble staircases. But even now, in the 21st century, they haven’t Today, Sanduny are an architectural monu- become any less magnificent. So they remain ment of the capital. People have business the highest standard for Russian banyas. meetings here, spend time with friends, and come for tours. And most importantly, the According to writer Vladimir Gilyarovsky, these place has retained the spirit of a true banya. banyas “have hosted the Moscow of Groboye- It can definitely be considered Moscow’s first dov, the Moscow of Pushkin, and the Moscow spa center that is over 200 years old. that gathered in Zinaida Volkonskaya’s salon Address: Neglinnaya Ulitsya 14, buildings 3-7, and in the English club.” Alexander Pushkin Built for true banya lovers, Sanduny has three m. Kuznetsky Most himself came to the banyas as well. After the sections for men and two sections for wom- Hours: public banyas: weekdays - 10.00 am-12.00 am, steam room and bath brooms, he liked to take en. There are huge leisure rooms, pools, and weekends – 8.00 am-10.00 pm, separate rooms: a dip in cold water with bits of ice floating in it. Russian steam rooms. For those who want until 6.00 am. to spend time away from the crowd, there Additional services: beauty salon, laundry, shoe shine, Sanduny became the center of the capital’s are separate banyas (8 rooms with original restaurant, tour desk, souvenir shop, online shop. public life, combining a club, a clinic, and, of interiors, Russian stoves, and jacuzzi pools). course, the banyas. It was Sila Sandunov who Of course, there is a restaurant in Sanduny as first split up the banya into men’s and wom- well. After a day at the banya, guests can try en’s rooms. Prior to this, everybody washed Russian , Uzbek, and Chinese dishes. There is in the same rooms. There were comfortable a laundry room here, as well as a “Sandunov” rooms with expensive furniture and silver stand, where guests can find banya accesso- bath accessories for noblemen here. Sanduny ries, soap, bath brooms, and souvenirs. ■

86 CAPITAL IDEAS October-December 2018 Krasnopresnenskaya banyas

or many centuries, the Moscow district ceramic painting called “Swans” by the fa- Fof Presnya was famous for its clean wa- mous artist Mikhail Vrubel, which became a ter, which was transported by water haul- kind of symbol of the Presnya district. There ers throughout the city. The water there were two separate banya section: one for was chilled, and tasted a bit sweet. It didn’t the people, and another one for nobility. The come from the Moscow River, but from the baths were maintained by distant relatives Students well, which was located near the of the Biryukovs, along with old believers modern-day International Trade Center from the Nizhny Novgorod province. There on Trekhgorny Val. Until this day, there is a was also a tea house, library, a billiard room, well pavilion built by the famous architect and a small winter garden. Domenico Dzhilyardi on the nearby Mantu- linskaya Street. This well with chilled water In the 1970s, Krasnaya Presnya underwent is what the whole district of Presnya was reconstruction. The street more than dou- named after. The word for chilled (“studyo- bled in width, and all the old homes on the naya”) can be found in the names of Stu- odd side were taken down. In 1980, Pres- dentskiye street, park, and square. More- nenskiye baths seized to exist at their former over, the Presnya River itself, which the location. whole district is named after and is famous A Hungarian trade office and cinema center for good water, attracted a lot of swimmers were built in place of the bathhouses. The and people going for leisurely strolls. Back banyas were moved near Ulitsya 1905 Goda in 1806, there were ponds and a garden metro station, to Stolyarnoy Pereulok 6. Fa- established for the public near the Presnya mous architects V. Ginsburg, A. Taranov, and River. Right next to them, there were city M. Philipov designed and built a new building banyas with water that was supplied from for the Krasnopresnenskaya banyas in 1977- the Presnya River or the Students well. The 1980. It was a separate project, which was baths quickly became popular among Mus- Address: Stolyarniy Pereulok 7, bldg. 1, m. Ulitsya 1905 Goda extremely rare for Moscow and the USSR Hours: 8.00 am - 11.00 pm. covites. In the middle of the 19th century, in general. This beautiful three-story build- Additional services: laundry, atelier, SPA-services, they were purchased by the wealthy Biryu- ing made out of red brick with basement hairdresser, aesthetician, cafe Presnya. kov coachmen. The baths were owned by utilities and ancillary facilities was made to them until the October Revolution of 1917. resemble early 20th century modern-style The banyas were located in the busiest part architecture, as a kind of tribute to the for- of the district, on the corner of Prudovaya mer Biryukov baths. And as a reminder of and Bolshaya Presnenskaya streets (cur- the former entrance, the “Swans” picture rently Druzhinnikovskaya 25 and Krasnaya hangs outside the elegant main entrance. A Presnya 7). In 1903, a trendy modern-style huge horseshoe-type arch with white stone one-story building was constructed to house edging was constructed out of special brick. the baths. The facades and interiors of the The modern building was equipped with building resembled a wealthy merchant’s powerful gas furnaces that heated cast-iron mansion. It was finished with gorgeous boilerplates to maintain a stable thermal en- stucco molding, forging, and carved doors. vironment in the steam rooms throughout At the corner above the main entrance to the day. This allowed the baths to serve up the horseshoe-shaped niche, there was a to 180 visitors at the same time. ■ Varshavsky bath house

his is one of the oldest banyas in Mos- best architects and designers worked on Tcow, originally built in 1938. It has recent- the project. Today, the men’s and women’s ly reopened after major reconstruction. sections are impressive in terms of creative execution and high-quality finishing. The Varshavsky bath house is located in a large four-story building. The first floor has The “Baths of the World” on the fourth floor a restaurant, the second floor is the men’s serve as VIP rooms. They’re done in Rus- section, the third is the women’s section, sian, Byzantine, and British styles and are and the fourth has bath houses from all heated with wood stoves. over the world. During reconstruction, it The section for women can accommodate was important to preserve everything that 64 people. The interiors are mostly white. fans of traditional Russian steam rooms go The numerous mirrors create an atmo- to public bath houses for and the spirit of Address: Varshavskoye Shosse 34, m. Nagatinskaya sphere of lightness. Each cabin has a con- Hours: Mon-Fri. 9.00 am – 11.00 pm, Sat, Sun 8.00 am – 11.00 pm. the old Varshavsky bath house, but at the venient table for drinking tea, and guests Additional services: SPA services, a beauty salon, Varshavskiy same time upgrade the infrastructure and are always offered tasty and healthy herbal restaurant modernize the design of the complex. The teas here. ■

October-December 2018 CAPITAL IDEAS 87 Travel&Leisure

Rzhevskiye banyas

hese old Moscow bath houses are on three classes of banyas, which served a Tthe Forbes “14 most interesting banyas total of 1,091,200 people in 1935. in the world” list. Their story begins back in 1888, when 2nd guild merchant, Moscow During WWII, the baths served military State Duma deputy, and major banya en- formations sent to the front from the thusiast Ivan N. Malyshev decided to build Rzhevsky railway station (now Rizhskiy), a bath house complex that is now widely at which point the bath complex was known as Rzhevskiye banyas. At the time, given a colloquial name due its proxim- Malyshev already owned two public ban- ity to the railway station. After the recon- yas in Moscow. The first one was in the struction of the bath complex in 1947, the Pegov House on the corner of Neglinnaya name became official. Street and Petrovsky Boulevard (now, Thanks to the unique atmosphere provid- the building houses the “School of Mod- ed by the arched steam rooms that have Address: Banniy Proyezd 3, bldg. 1, m. Prospect Mira ern Plays” Theatre), and the second one not been rebuilt since the bath houses Hours: 9.00 am - 10.00 pm was located at the corner of Alekseevs- Additional services: cafe, beauty salon, and special steam kaya Street and Krasnoselskaya Street were first established, the steam here sessions every Saturday and Sunday at 11.00 am, 1.00 pm, (this building no longer exists). In 1919- has always been special. And thanks to 5.00 pm, and 8.00 pm — invigorating, relaxing, anti-stress, 1925, the former “Malyshev banyas” were its own boiler room, the bath house can aphrodisiac, therapeutic. renamed “Krestovskiye banyas.” In 1936, always maintain the perfect temperature the bath houses were renamed again and in the steam rooms. There is a women’s were called “Banya Complex No.3 of the and men’s section, as well extra comfort Dzerzhinskiy District of the City of Mos- cabins. Going to the steam room is like a cow.” According to the “Moscow in New true ritual here: the steamers stand in the Districts” reference book from 1936, the center of the room, scoop up the steam, capacity of these bath houses amounted and envelop people who are lying down to 455 people “judging by the number of in it. Most bath house workers have been spots in the changing rooms.” There were here for decades. ■ Vorontsovskie banyas

his is a modern complex of bath servic- urdays, was practically the only accessible Tes in a historical “Stalin’s empire” atmo- form of leisure for working class families, sphere. Vorontsovskie banyas are some of and was therefore cherished. the oldest and most famous bathhouses in Moscow. There aren’t a lot of estab- Today, Vorontsovskie banyas are a full- lishments that can brag about preserv- fledged banya complex that features ev- ing the true spirit of a public banya. The ery type of modern day service. Several bath houses here differ from other ban- generations of Soviet citizens have bathed yas primarily because of their welcoming within its walls, and every brick is com- atmosphere, and many fans of the banya pletely saturated with their happy energy. choose “Vorontsi,” which is the nickname The total area of the bath house amounts they’ve acquired over time. to over 5,000 square meters. It’s split up into 2 men’s sections (the first and upper Address: Vorontsovskiy Pereulok 5/7, bldg.1, m. Taganskaya, The story of Vorontsovskie banyas starts section), and one women’s section. The Proletarskaya, Krestyanskaya Zastava in 1938, in the Proletarskiy district of Mos- upper men’s section stays open 24 hours Hours: men’s hall: Mon – 4.00 pm - midnight, Tues-Fri– cow, which was populated by the working a day. Each one has a pool and can seat 8.00am - midnight, separate rooms: 24 hours a day. class and packed with wooden barracks. up to 50 people. Additional services: cosmetology, a kitchen, Vorontsovskiy That’s when construction of the building hotel began across from the Novospassky mon- The improved upper men’s section can astery. The civil defense facility, or sanitary- seat 45 people. Staying true to its history, washing station, as the baths were officially the section is done in the style of “Stalin’s called back then, was vital for local resi- empire,” and probably brings joy to a lot dents. State institutions were the only op- of older Russians who want to visit steam tion for people who wanted to take a bath rooms that were previously only acces- back then. The surrounding factories — sible to the elites of the Communist Party. “Moskovskiy Shinniy,” “Serp i Molot,” “Dina- The Russian Vorontsovskaya banya is fa- mo,” and “Perviy Sharikopodshipnikoviy” — mous for its steam room. It has the right provided numerous visitors to the bath kind of furnace which leaves the guests house on a regular basis. The weekly trip to feeling comfortable because the steam the banya, which usually happened on Sat- room is very easy to breathe in. ■

88 CAPITAL IDEAS October-December 2018 Seleznyovskiye banyas

eleznyovskiye (Samotetskiye) banyas in near the large pond that existed at the time, SMoscow were reconstructed in accor- and the exterior of Seleznyovskiye banyas dance with architect Popov’s design in 1888. hasn’t changed much since that time. It’s The bath house belonged to a second-guild worth noting that the banyas don’t have a merchant, Sergey S. Krasheninnikov. Like foundation. The buildings sit on oak piles. today, the bath house had two buildings. Krasheninnikov owned the banyas until One of them was for nobility, and the other the October Revolution. The Soviet gov- was for the general public. Each building ernment opened the banyas to the public. had men’s and women’s sections. After re- The wooden buildings and pond eventually construction, the buildings became bigger, disappeared, but the famous “Seleznyovskiy separate entrances were built, there were steam” is still considered one of the best by new maintenance buildings and stands for banya lovers in Moscow. Plus, the largest selling kvas and sbitene, washrooms existed plunge tub is also here. ■ Address: Seleznyovskaya Ulitsya 15, bldg. 1,2, m. Mendeleevskaya, Novoslobodskaya, Dostoyevskaya. Hours: 8.00 am - 10.00 pm. Additional services: Liberto cafe, bar, hairdresser, beauty salon, spa, a shop. Izmailovskiye banyas

zmailovskiye banyas are an old estab- sists of large cabins with log walls, each Ilishment that was built in 1956. It got an for 6 people. There is a lounge with tables updated look in 2002, when major repairs and ashtrays, a buffet, and a massage were made. That’s when the gorgeous room. mosaics appeared on the walls and ceil- The Izmailovskiye banyas have been ings, along with intricate wood carvings, known for their gorgeous interiors and which perfectly fit with the pompous cleanliness for many years. This is exactly Stalinist architecture with columns, huge why people come here with children, es- vestibules and high ceilings. pecially since children under 7 can come The bath house itself is a small steam in free, and children ages 7-12 get a 50% room with excellent steam and comfort- discount. There is a hairdresser, a body able benches, a washroom with warm philosophy studio, and a solarium. Visitors Address: 6th Parkovaya Street 21, m. Izmailovskaya, benches made of artificial marble and can also get manicures and pedicures, and Pervomaiskaya. shower cabins, and a small pool from visit the spa. There are two big halls that Hours: 8.00 am - 10.00 pm. which people scoop water and pour it alternate between accepting male and Additional services: bar, beauty salon. over themselves. The dressing room con- female visitors. ■

Usachevskiye banyas

hey’re also some of the oldest ones in the among city residents. The banya has a Tcity, and were built as a counterweight capacity of 400 people. to Sanduny and Krasnopresnenskaya There are always people in these baths today, banyas. But when it comes to the interior, all because the tickets are relatively cheap. But it can’t compare to Sanduny or the the low price doesn’t impact service quality: Krasnopresnenskaya banyas, which have the steam rooms are the best in the capital. It’s undergone restoration. A long time ago, also important to note that the Usachevskiye the Usachevskiye banyas had regular banyas has a club of people who are huge fans clients, which is why the place developed of steam rooms. Real banya professionals come its own traditions over the course of many here, who appreciate steam with chamomile, years. The bath house has been operating wormwood, sweet clover, eucalyptus and a since the 1930s and is not quite popular whole bunch of other healthy herbs. ■ Address: Usacheva Street 10, bldg. 1, m. Frunzenskaya Hours: 8.00 am - 11.00 pm. Additional services: fitness center, beauty salon

October-December 2018 CAPITAL IDEAS 89 MOSCOW VOCABULARY

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

КТО В ЛЕС, КТО ПО ДРОВА – kto v les kto po drova. (Someone to the forest, someone to gather firewood) Explanation: When there’s lack of coordination or harmony between people.

ПОРОХУ НЕ ВЫДУМАЕТ – porokhu ne vydumayet. (He/she will not invent gunpowder) Explanation: Usually said of a dull-witted, not very bright person.

РАБОТАТЬ НЕ ПОКЛАДАЯ РУК – rabotat’ ne pokladaya ruk. (To work without giving rest to one’s hands) Explanation: To work hard, tirelessly.

БЫТЬ НА СЕДЬМОМ НЕБЕ – byt’ na sed’mom nebe. (To be in the seventh heaven) Explanation: To be overfilled with joy.

ВЫЙТИ ИЗ ПЕЛЕНОК – vyyti iz pelonok. (To come out of one’s swaddling-clothes) Explanation: To become adult, to be on one’s own.

ИМЕТЬ ГОЛОВУ НА ПЛЕЧАХ – imet’ golovu na plechakh. (To have a head on one’s shoulders)

Pictures by Anastasia Saifulina Pictures Explanation: To be able to think for oneself.

90 CAPITAL IDEAS October-December 2018 НАСТУПАТЬ кому-либо НА ПЯТКИ – nastupat’ na p’atki. (To step on someone’s heels) Explanation: To catch up with someone.

ЗНАТЬ что-либо ВДОЛЬ И ПОПЕРЁК – znat' vdol' i poperok. (To know something lengthwise and crosswise) Explanation: To know something very well.

ПРИПИРАТЬ кого-либо К СТЕНКЕ – pripirat’ k stenke. (To press someone against the wall) Explanation: To force someone to do or to admit something.

ПОЛОЖА РУКУ НА СЕРДЦЕ – polozha ruku na sertse. (With one’s hand on one’s heart) Explanation: To say something frankly.

ДУША НЕ НА МЕСТЕ – dusha ne na meste. (One’s soul is not in its place) Explanation: To be anxious.

ЗНАТЬ МЕРУ – znat' meru. (To know the measure) Explanation: To know when to stop.

October-December 2018 CAPITAL IDEAS 91 FOOD&DRINK

Ignat Kulikov, the 40-year-old restaurant chef DANTE Kitchen + Bar: A flavor rainbow “Flavorful, delicious, positive” — these words are a great summary of everything about the restaurant DANTE Kitchen + Bar, which opened last spring in the center of Moscow, on Kuznetsky Most 3. Its cozy interior is pleasing to the eye, and the unusual food is a treat for everyone.

t’s no wonder that the tables of the that the man behind the stove of the restaurant new restaurant were full from early is a talented person with a unique life story. Ig- morning until late evening during the nat never planned to become a chef. He was born FIFA World Cup. “There were so many into a family of doctors. He lived in his father’s people that we even had to take some home country — Ghana, in Africa — until the age things off the menu, which usually of eight. His parents met when his father was has 40 items,” the 40-year-old res- studying at the People’s Friendship University in taurant chef Ignat Kulikov confessed. Are there any Moscow. Both parents wanted their son to fol- dishes on the menu that stand out in particular? low in their footsteps. After graduating from high “No, they’re all different,” Ignat says, “We have and school, Ignat continued his education at the State international menu that combines several types of Fire Academy. So when Ignat Kulikov (he took his cuisinesI — French, Italian, Moroccan, Asian, Thai…” mother’s last name) started cooking, he had a degree as a professional firefighter! Believe it or not, This incredible combination of culinary styles is a Kulikov is a fire service captain — that’s the title real explosion of flavor, created by Ignat Kulikov he worked toward after graduating from the State himself. DANTE Kitchen + Bar really can be proud Fire Academy.

October-December 2018 CAPITAL IDEAS 93 FOOD&DRINK

Surprisingly, he first became interested in cooking during his time in this academy. While he was studying, he often went to different restaurants in Moscow in his spare time. And that’s when he got the idea to try his hand at the restaurant business.

This seemed like such a good idea to Ignat that he decided to pursue it. In 2010, he moved to New Zea- land to attend the Eastern Institute of Technologies, where he studied culinary arts. While he studied, he worked in establishments like Mission Estate Win- ery, Cape Kidnappers Lodge, The Engine room, and the five-star Pullman Auckland Hotel, where he was a sous chef.

What was Kulikov most impressed by during his time in New Zealand? “The cuisine in New Zealand is very flavorful, there is nothing subtle about it,” Ignat says, “The reason is that it’s very diverse, en- compassing just about every culinary tradition in the world. This shouldn’t come as a surprise, since people from different countries live in New Zealand, and have been influencing the local cuisine for a very long time. If I were to give you a short descrip-

94 CAPITAL IDEAS October-December 2018 tion of New Zealand cuisine, it would be: flavorful, delicious, positive!”

Ignat applies everything he learned in New Zea- land to his cooking at DANTE Kitchen + Bar, slight- ly adapting New Zealand cuisine for the Moscow crowd. The DANTE kitchen+bar menu features simple, but interesting dishes for every day of the week. The restaurant has dishes like Moroccan-style salmon with mashed potatoes and fennel, juicy Thai salad with beef ribs, lamb curry with smoked eggplant, vegetables and harissa sauce, baked tomato stuffed with pineapple and anise ice cream, and another 20 original dishes from the chef. In the menu there is an Italian pinza, and - a whole section of dishes for vegetarians. The menu also has the Ital- ian pinza, and a number of dishes for vegetarians.

The restaurant on the ground floor also has an open bar that’s decorated in the style of a cozy home kitchen. The center features a small round island with bartenders behind the bar. The DANTE kitchen+bar drink menu features original cocktails from the Oksana Zhidkova — a bar chef who also

October-December 2018 CAPITAL IDEAS 95 FOOD&DRINK

Oksana Zhidkova, a famous bartender. Every one of her cocktails is a work of art.

works at the Moscow Saxon+Parole at the Patri- arch’s Ponds. (This is no surprise, because DANTE kitchen+bar is a new project from Saxon+Parole’s Moscow founders). A separate draft bar category on the menu features draft cocktails on tap.

In the small but cozy space of the new restaurant, created by designer Yevgenia Uzhegova, everything is thought out to the smallest detail — original plants, the interplay of light and shade. The huge windows on both floors can open completely if necessary, turning the restaurant space into one large veranda. DANTE kitchen + bar is not an exotic Mos- cow establishment, but a restaurant with a cozy home atmosphere. When you step inside, you immediately feel comfortable and feel like you’re welcome here.

The restaurant’s originality isn’t limited to the menu and interior decor. The check is brought to customers in Dante Alighieri’s legendary book "Di- vine Comedy." The thing is that in the beginning of the 20th century, the building that currently houses the restaurant used to be home to an Ital- ian community named after Dante Alighieri. It had its own library and what we would call a consul- ate today, which gave visas to Russians travelling to Italy. Back then, there was a sign outside that read “Dante.” By naming the establishment DANTE kitchen+bar, the founders paid their respects to the location’s history. ■

96 CAPITAL IDEAS October-December 2018

Hold on to old friends and new houses Russian proverb