STRATEGIES FOR BUSINESS IN MOSCOW Constant dropping wears away the stone A PROPOS Moscow wasn’t built in a day. This saying has been excellent impression. I want to come to Moscow again!”. popular in Russia for centuries, but doesn’t look relevant Here is what another celebrity, Hugh Jackman, had to today. It would be a challenge to find a city that is say about the Moscow metro: “We went into the metro developing as quickly as the Russian capital. Previously and truly saw something amazing. Around us, hundreds unused spaces are quickly being replaced with modern of people were rushing to get to work and not paying business centers, abandoned buildings are converted attention to their surroundings, and we stood there with into technoparks, and barely paved streets have turned our jaws dropped open.” into elegant pedestrian areas. Even the foreigners who It’s important that the Moscow government is making come back to Moscow after being gone for a year changes in a way that strikes a balance between the are surprised by how much the city has changed, not interests of investors and city residents. The authori- to mention the people who remember what Moscow ties adjusted their ideology, making the city’s develop- looked like during the Soviet era. For them, the appear- ment more comprehensive and gentle. For example, the ance of multiple cafes and restaurants, cosy hotels, development of depressed industrial areas prioritizes different shops and phenomenal parks is akin to living improvements to transport infrastructure and communi- on a different planet! cations, as well as improvements to surrounding areas. Yes, Moscow is improving by the hour, becoming more Among the most large-scale and ambitious projects that comfortable for both living and working. This is con- ensure better standards of living, it is important to point stantly confirmed by the heads of foreign companies in out improvements to the embankments of the Moscow Moscow, as well as foreign businessmen and investors River. This is a truly grandiose project. Suffice it to say who travel here for work. Across the pages of Capital that the length of the river within the city amounts Ideas, all of them say that they don’t miss home nearly to 80 kilometers. Up until now, only 7 percent of the as much as foreigners used to during the Soviet era, for river’s embankments were accessible to pedestrians. In example, when everything about the city seemed difficult London, on the other hand, 76 percent of Thames River and unfriendly. Now, expats are free to enjoy their favor- embankments are accessible. 52 percent of the Seine ite food and live the kinds of lifestyles they’re accustomed River embankments are available to pedestrians. The to. These days, Moscow has absolutely everything that main objective of the Moscow project is to finally make one would expect a modern city to offer. The famous the Moscow River a comfortable space for people. In actor Pierce Brosnan, who came to Moscow for the first fact, this is the objective of any project that is currently time two years ago, wanted to get a real feel for the city underway in the city. so desperately that he ran away from his bodyguards early one morning. After walking around by himself for sometime, Piers said, during a press-conference: “I got an Sergo Kukhianidze Editor in Chief [email protected] CAPITAL IDEAS Founder: Department for External Economic Moscow Official and International Relations of the Government of Moscow Address: Tverskaya, 13, Moscow, 125032. For the benefit of Ph: +7 (495) 633-68-66, Fax: +7 (495) 633-68-65 E-mail: [email protected] residents from www.dvms.mos.ru two capitals Editorial staff: Editor-in-chief – Sergo Kukhianidze In October, the Mayor of Moscow Sergey Production crew of the edition: Elena Egorova (deputy editor-in-chief), Sobyanin and the Mayor of Budapest Tatyana Akimova, Gennady Charodeev, Vladimir Dolmatov, Marina Ershova, István Tarlós signed a cooperation program between the capitals of Russia and Hungary Evgeny Khokhlov, Sergei Levin, Pavel Lukyanov, Marina Ogorodnikova, for 2016-2019. Anastassia Paloni, Vladimir Smelov, Anna Tomkins, Marina Urshina 6 CAPITAL IDEAS STRATEGIES FOR BUSINESS IN MOSCOW Publisher: Moscow Center for International Cooperation CEO: Sergei Anikanov Address: 105005, 68/8, build.1, Baumanskaya str., Moscow, Russia 7 – 9 Phone: +7 (499) 267-46-56 E-mail: [email protected] Moscow Official General Partner: National Review Ltd CEO – Sergei Oposhnyanskiy Big opportunities Phone.: +7 (495) 784-69-71 for cooperation E-mail: [email protected] For the first time in history, Moscow and Consulting – Gennagy Charodeev, Evgeny Khokhlov Singapore signed a cooperation program Design – Robert Saifulin for 2017-2019 during the first Days of Photo editor – Victoriya Oposhnyanskaya Moscow in Singapore Page layout – Alexander Saifulin Assistant – Nadezhda Ratanova Distribution – "Trans-Media" Ltd Acknowledgements to: PHOTO – www.mos.ru, www.dvms.mos.ru, ITAR TASS Agency, RIA-Novosti, Getty Images Russia, companies and organizations, represented in the issue. If you wish to get new issues of Capital Ideas, please, apply to: [email protected] The magazine is registered with at the Federal Authority of Legislative Control in Mass Media and Cultural Heritage Protection. Media registration certificate ФС77-53716, issued April 26, 2013. All reproduction permitted only with the Editor’s permission and reference to ‘Capital Ideas’. Distributed free of charge Published with support from the Department for External Economic and International Relations of the Government of Moscow Circulation : 7000 Signed into print 30. 11. 2016 Moscow Official Cover Story A friendship that dates back New Urban Projects — The New Face centuries of Moscow It will be impossible to enhance the status and competitiveness of Moscow Days of Moscow in Yerevan among major cities, and to fulfill its mission as a world city, without improving the quality of its urban environment. On the level of global Strengthening ties between cities competition, this factor proves decisive for the influx of investment and Within the scope of Days of Moscow in Belgrade, which took place the augmentation of human potential. In our survey we have placed an in the beginning of October, a number of important documents were accent on the most far-reaching and ambitious projects, which offer new signed regarding the development of ties between the capitals of standards for the quality of life in the city. How will Moscow change in the Russia and Serbia. near future, and which projects will become the face of the capital? 10 – 12 14 – 31 32 – 33 City’s Graph 34 – 38 What’s new January-March 2017 CAPITAL IDEAS 3 Face to Face Nothing Ventured Alexis Rodzianko: It's Time to implement a very good time to Nothing Ventured a green tariff Moscow is becoming a do business in Russia “Currently, Russia has all the conditions “American business in the last 25 years necessary to start resolving the problem great place for developing has grown quite a bit in Russia. I always of MSW management via the construction like to say, you can’t spend a day in Russia of additional disposal sites as well as via industrial manufacturing without being touched by an American MSW processing and therefore shift to The establishment of technoparks is becoming company’s product or service”- said Alexis fundamentally new business models,” said one of the key trends when it comes to Moscow’s Rodzianko, President of the American Alexey Volostnov, Director of Business development. The appearance of yet another space Chamber of Commerce in Russia, in an Development at Frost & Sullivan in Russia, in begs the logical question: how is the Technopolis exclusive interview with Capital Ideas. an interview with Capital Ideas. METMASH project different from the rest? 40 – 46 56 – 58 68 – 71 48 – 49 60 – 63 72 – 73 Nothing Ventured Expert tips Moscow in words 50 – 54 We believe in developing our The regulations Face to Face business in Russia for business Heidelberg Cement has over 3,000 representative offices in success Ernesto Ferlenghi: over 60 countries all over the world. We sat down to talk Pour your heart into with Mihail Polendakov, General Manager of Heidelberg How foreigners can avoid Cement in Russia, about the company’s activities. additional costs and fines when supplying their products to Russia doing business in 64 – 67 Russia Nothing Ventured “Our objective is to convince Italians that, in spite of the sanctions, the drop in oil prices Massimiliano Perri: and ruble devaluation, you can and should continue to work in Russia. You have to We are going to expand our learn to adapt to the new conditions, study presence in Russia the market and analyze it,” said Ernesto Ferlenghi, President of Confindustria Russia, The Italian company Iveco is quite unique for the Russia an association of Italian companies operating (now belongs to the multinational CNH Industrial). It entered in Russia, in an interview with Capital Ideas. the Russian market almost 40 years ago, and continues to successfully develop today. Back on the 1970s, Iveco started supplying its powerful trucks for what was referred to as “the construction project of the century” - the Baikal-Amur Mainline. Now, the company carries out a much wider range of activities in Russia. We sat down to talk about the company with Massimiliano Perri, General Director of Iveco in Russia 4 CAPITAL IDEAS January-March 2017 Life&leisure Don’t be bored this Life& Culture winter, get your skates Travel and head out! Art as food for thought The New Year is finally here. Every single person is Moscow Review of the most popular ice rinks in Moscow waiting in anticipation for the new things that lie is among Ice skating is a favorite pastime for Muscovites ahead - something interesting, bright, original that in the winter.