STRATEGIES FOR BUSINESS IN MOSCOW No bees, no honey; no work, no money A PROPOS The number of Muscovites registered as individual en- private entrepreneurs who got rich quickly and started trepreneurs has increased by 32 percent over the past to live well. five years. There are currently over 233,000 individual The road toward small and medium-size entrepreneur- entrepreneurs working in the capital, which is 60,000 ship in Russia has never been easy: business people more than in 2010. This fact was recently reported by have been given a green light here and there, many red Natalya Sergunina, Deputy Mayor for Economic Policy lights, weighed down by so many laws that growth and Property and Land Relations of Moscow. was impossible...And although there are still a lot of This is an excellent trend, especially considering the problems in this sector of the economy today, it is fact that just a short while ago those who wanted difficult to find people who are fundamentally opposed to start a private business could be put in jail for 3-5 to its existence. At least there aren’t any people like years. The Criminal Code of the USSR was extremely this in the Moscow Government. The Mayor himself strict in this regard! sets the tone. Just recently, Sergey Sobyanin made the following statement: “Small business is part of the The situation started to change with the beginning of foundation of any economy. During challenging times, perestroika. In 1987, a law legalizing self-employment small business becomes a source of economic growth. was passed. It was back then – on May 13th, 1987 – We know this, and are paying a lot of attention to this that the first Co-op restaurant, Kropotkinskaya 36, sector. The city is providing financial and material sup- opened in Moscow. Those who had a chance to visit it port to small business, along with tax benefits.” Suffice remember how delicious the food was – the burgers, it to say that it is now possible to open a business in borscht, baked veal with mushrooms and meat on a Moscow in just a few days. skewer with tomatoes. No other cafes in Russia ever had anything resembling this before. Unsurprisingly, By the way, there are a lot of foreigners working as small business started to blossom. There were not individual entrepreneurs in Moscow. Some of them only private restaurants, but also private stores, taxis, are featured on the pages of Capital Ideas. One of studios, repair shops and construction companies, them, Maurizio Pizzuti – a restaurateur from Rome farms – the list goes on. Just two months after the law who has been in Moscow for 20 years. He has lived was passed, there were about 600 different private through the toughest times here and never wanted enterprises in Moscow. to go back to Rome. Why? “Unlike in Italy,” Maurizio says, “there are plenty of opportunities in Moscow.” But not everything was going smoothly. The corporate world immediately encountered opposition from both party members and the general public. The former were guided by communist principles, while the latter Sergo Kukhianidze were motivated by irritation and jealousy toward the Editor in Chief [email protected] CAPITAL IDEAS Moscow Official Founder: Department for External Economic and International Relations of the Government of Moscow Cooperation between Address: Tverskaya, 13, Moscow, 125032. two regions expands Ph: +7 (495) 633-68-66, Fax: +7 (495) 633-68-65 E-mail: [email protected] Mayor of the Russian capital Sergey Sobyanin and the www.dvms.mos.ru Minister President of Bavaria Horst Seehofer signed a joint Editorial staff: announcement on cooperation. Editor-in-chief – Sergo Kukhianidze Production crew of the edition: Elena Egorova (deputy editor-in-chief), Austrian business is ready to Tatyana Akimova, Gennady Charodeev, Vladimir Dolmatov, Marina Ershova, participate in large scale projects Evgeny Khokhlov, Sergei Levin, Pavel Lukyanov, Marina Ogorodnikova, New opportunities are opening up for Moscow and Vienna Anastassia Paloni, Vladimir Smelov, Dmitry Sokolov, Anna Tomkins, Marina Urshina 6 – 7 CAPITAL IDEAS STRATEGIES FOR BUSINESS IN MOSCOW Publisher: Moscow Center for International Cooperation 8 – 13 CEO: Igor Tkach Address: 105005, 68/8, build.1, Baumanskaya str., Moscow, Russia Moscow Official Phone: +7 (499) 267-46-56 E-mail: [email protected] Showcase our work, General Partner: National Review Ltd appreciate the work CEO – Sergei Oposhnyanskiy Phone.: +7 (495) 784-69-71 of others E-mail: [email protected] Moscow became a focal point at the Consulting – Sergei Anikanov, Evgeny Khokhlov international exhibition of investment Design – Robert Saifulin and real estate MIPIM-2016, which Photo editor – Victoriya Oposhnyanskaya took place in the middle of March in Page layout – Alexander Saifulin Cannes 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 06. 04. 2016 Nothing Ventured Nothing Ventured Cover Story Russian wine with Luca Tavasci: The most Sergey Sobyanin: a Swiss personality important thing is that Small business Winemakers are particularly responsible professionals who approach their work, the suit fits! becomes a source of along with everything else in life, with We judge people by their clothes. This applies to strict perfectionism. A meeting with Swiss men as much as it does to women. Luca Tavasci, economic growth winemaker Renaud Burnier and his wife a 27-year-old style consultant at De Luca Sartoria, It’s a well-known fact that small size does Marina is the quickest way to confirm this has no doubts that this is the case. “Somebody like not preclude great content. This is true fact. Relying on techniques developed by Adriano Celentano can certainly afford to wear in both art and business. The Moscow experienced Swiss winemakers, they have whatever he wants, but this doesn’t apply to the Government completely agrees with this been making real Russian wine in Southern rest of us. Regular men must watch what they’re point of view. Russia for several years. wearing,” he said in an interview with Capital Ideas. 14 – 19 32 – 36 38 – 40 20 – 24 Face To face Horst Seehofer: The best way to create trust is through dialogue Bavarian Governor answers questions of Capital Ideas in an exclusive interview 26 – 29 What’s New 30 – 31 Moscow in words April-June 2016 CAPITAL IDEAS 3 Nothing Ventured Nothing Ventured Nothing Ventured The place where Time to convert freshness is baked Anke Pötzsch: When In the beginning of Ostozhenka Street, one door closes, two feelings into action there is Austrian bakery that was The World Trade Center hosted a Russia- opened in October of last year by Martin new doors open India business day. The main topic for the Erichovich and Engelbert Edlinger. Walk The German holding company INTERPONT, new format for communication between through the glass doors of Engelpekar, which provides consulting and outsourcing businessmen from the two countries was and you immediately end up in a services and has been operating in Russia for the issue of mutually beneficial cooperation different dimension – a warm, cozy, over two decades, is a unique enterprise. It in the small and medium-size business almost homely atmosphere filled with wasn’t “imported” from abroad, but rather sectors. the smell of coffee and Austrian bread. founded from scratch right here in Moscow. 41 46 – 49 54 – 57 42 – 44 50 – 52 58 – 61 Nothing Ventured Nothing Ventured Expert tips Arnaud Jacquart: Russia is Jussi Tuisku: It's worth investing a fantastic school of life We are planning in Moscow French-born Arnaud Jacquart came to Moscow as a to strengthen our Swedish national Fredrik Svensson has student right before the coup of 1991 and immediately been living and working in Moscow fell in love with Russia. He considers himself to be presence here since 2007. He is a partner in law more Russian than French, manufactures electric No doubt, the most significant firm Mannheimer Swartling which bicycles in partnership with Russian defense plants decision was to localize our is the largest law firm in the Nordic and dreams that Tverskaya Street will one day be a manufacturing in the centre of countries. In this interview, Fredrik pedestrian area free of motorists. Russia, so that we can offer the Svensson talks about the continuing most competitive products for investment attraction of Russia and 45 reasonable prices i.e. value for its capital for small and medium businesses. Nothing Ventured money to our clients, said Head of Ruukki Russia answered questions New agency for investors from Capital Ideas In late March, Analytical Credit Rating Agency (ACRA), which was established in Russia at the end of last year, held a business breakfast dedicated to issues of its development. 4 CAPITAL IDEAS April-June 2016 Our interview Life&Leisure Nikolay Kovalyov: Unusual museums: valenki, The law should Bookshelf retro cars and Olympic bear work like an There are a lot of world-famous museums here Making Perfect in Moscow: the Tretyakov Gallery, the Pushkin electrical outlet.... Teri Lindeberg, founder and CEO of Museum, the Kremlin Armoury and so on.