Russia And Greater China by Russia Beyond

Tuesday, March 26, 2013

SPECIAL REPORT

RUSSIA

AND GREATER CHINA A product by

Monthly supplement from Rossiyskaya Gazeta (Moscow, Russia) which takes sole responsibility for the contents

Mumiy Troll rocks city

Games chiefs are under fire

PAGE 14

2014 Winter Olympics mired in controversy as a result of delays and escalating costs

XINHUA

PAGES 8-9

Beijing’s claims disputed PRESS PHOTO

Band from Vladivostok, led by Ilya Lagutenko (above), surprises the local audience by singing in Chinese.

Attack helicopter’s chief designer says it was his company’s design PAGE 5

2 Tuesday, March 26, 2013

RUSSIA AND GREATER CHINA DEAL OF THE MONTH

TRADE

Sechin seals oil deal R

HK is ‘ideal platform’ for business

ussia’s crude oil exports to China are set to spike after the two countries signed an agreement last month. The deal was struck following an Asian tour by Rosneft CEO Igor Sechin, who also visited South Korea and Japan. China, the world’s second largest economy, is set to become the world’s largest importer of crude oil. Speaking at a meeting of the RussiaChina intergovernmental commission on energy co-operation, Deputy Prime Minister Arkady Dvorkovich suggested Rosneft could sell another nine million tonnes of crude oil annually to China. Dvorkovich also implied that China might give Rosneft a loan to implement the new agreement. Rosneft had earlier dismissed a Reuters report that Beijing could lend the company US$30 billion in exchange for doubling existing crude supplies. Russia currently supplies 15 million tonnes of crude oil annually to China along the East SiberiaPacific Ocean (ESPO) pipeline. Although ESPO’s capacity could double in the future, Rosneft may use a swap scheme for the deal with Sinopec. It would supply 7 million tonnes of crude per year to Kazakhstan’s Pavlodar refinery and Kazakhstan’s KazMunaiGaz state company would despatch a similar volume to China through the AtasuAlashankou pipeline.

ROUND-UP

Read more at www.rbth.asia/45053

XINHUA

hina’s new attack helicopter, the WZ-10, unveiled at Airshow China 2012 in Zhuhai, was based on a design by the Russian company Kamov, contradicting reports that it was an entirely Chinese designed and built weapon. The news was only revealed this month at the Heli-Expo exhibition in Las Vegas, United States, by Kamov’s chief designer, Sergey Mikheev. “For obvious reasons we have kept this information secret until now,” Mikheev said. Previously, it was thought that the WZ-10 was the first attack helicopter that China had designed and built from scratch. The prototype was built by China’s Changhe Aircraft Industries Corporation (CAIC). The schematic design of the WZ-10 was produced by Kamov based on the requirements and specifications of the Chinese customer, and not based on any Soviet designs. “They [China] gave us the target mass of the helicopter, and we discussed the desired performance and specifications,” Mikheev said. “Then we signed the contract and our company fulfilled it.” Mikheev, who was involved in the development of Russia’s legendary Ka-50 Black Shark and Ka-52 “Alligator” attack helicopters, said that Kamov’s role in the WZ-10 programme was limited to producing the schematic design. Specialists attending Heli-Expo described the news as a bombshell. Rus-

Russian companies are increasingly taking on more weapons design contracts, such as the one for China’s WZ-10. nical details about the new Chinese helicopter, saying that CAIC had built all the prototypes and conducted all the flight tests. Although CAIC had previously claimed the WZ-10 was China’s first domestically designed and built attack

sian experts believe work on that contract must have begun in the mid-1990s and that the deal was probably signed by state-owned Rosvooruzheniye, the predecessor of Russian arms export quasi-monopoly holder Rosoboronexport. Mikheev refused to be drawn on tech-

helicopter, there were reports the Chinese company had commissioned Eurocopter, a Franco-German concern, to design the five-blade main rotor and four-blade tail rotor, and that the helicopter’s gearbox was designed by Italy’s AgustaWestland.

The WZ-10 programme began in the mid-1990s. The first prototype took flight in April 2003. The helicopter’s entry into service with the Chinese forces was expected in 2008-2009, but the programme fell behind schedule. Russian experts have described the changing nature of Chinese weapons imports from Russia. Previously, the Chinese mostly bought finished weapons systems. China now prefers to use Russian companies as suppliers of critical components. “Mikheev has revealed another large weapons R&D [research and development] project the Russian defence industry has completed for the Chinese,” says Vasiliy Kashin, an expert with the Centre for Analysis of Strategies and Technologies. “Other projects include the L-15 combat trainer, the FC-1 fighter jet, the HQ-16 surface-toair missile, the PL-12 air-to-air missile.”

Moscow targets IT as key sector for growth RGC speaks to deputy Telecommunications and Mass Communications minister Mark Shmulevich about Russia’s potential as a global software exporter. Russia plans to increase its IT exports, so that they rival the defence industry. How and when can this be done? Software development is emerging as a key sector among Russian exports to the world. In the decade leading up to the end of last year, Russia’s annual software exports rose to HK$31 billion from HK$1.5 billion. Arms exports remains the main driver, with HK$116.2 billion worth of weapons sold last year. However, the software sector can expect to close in on defence over the next few years given its rapid rate of expansion. Exports are also growing thanks to outsourcing to Russia, and that’s what small companies do. When it comes to software products, we have had some

successful projects, too. Well-known Ecwid, Prognoz and Diasoft were all start-ups, but they have found their niches. The only question is whether they are interested in staying in Russia or shifting their business to neighbouring countries or the United States, where the business environment is often more favourable.

MARK SHMULEVICH Mark Shmulevich was born on July 18, 1982, in Moscow. He graduated from the Moscow Institute of Physics and Technology. From 2009 to 2012, he was head of business development at Russian Space Systems, which developed satellite navigation system GLONASS. In 2010, he founded Rusnavgeoset, a Russian-US joint satellite navigation venture. In 2011-2012, he was director for development at the Russian Quantum Center, set up under the Skolkovo Foundation. Last year, he was made deputy Telecommunications and Mass Communications minister.

How can we encourage them to stay? Two [areas] are critical to the development of the IT sector: a favourable tax regime and availability of skilled staff. Do you agree that sometimes Russian programmers can succeed where Chinese, Indian or Americans have failed? Our graduates are excellent engineers, but there is a terrible shortage of them. At present, less than 1 per cent of the Russian workforce is employed in IT, compared with 4 per cent in the United States and over 3 per cent in Europe. The ministry has a considerable challenge to address, namely, how to

PRESS PHOTO

Elena Shipilova

make this profession more popular. We had a roundtable conference on the personnel problem at the 10th Krasnoyarsk Economic Forum in Siberia not long ago. We are already putting in practice some of the provisions from the conference. One of these is ... programming competitions.

There is an American video on YouTube showing the founders of Microsoft, Facebook and Twitter explaining why it is important to learn coding. Will Russia have anything of this kind? We won’t copy the American idea, but such things are required. Videos are

just one method. Our task is to turn IT specialists into a symbol. To this end, we should have TV shows, talk to students about career prospects, meet with successful IT personalities and, possibly, shoot a TV series about programmers. When you were working on the development plan for the sector, were you building on the experience of countries that have succeeded in IT? Unfortunately, you can’t take someone else’s model and apply it to Russia. We have some important peculiarities and pitfalls. But we are keeping an eye on developments in other countries. India is liberalising its regulations on currency options, so we are looking at how this could apply to Russia. Options are not yet an effective motivation tool in Russia. We are also building on other countries’ experience in copyright protection. The fact that we are lagging behind gives us an advantage in, say, patent wars. When it comes to infrastructure, we are exchanging experiences in the creation of technoparks with Singapore and Israel. We still have a lot to do.

6 Tuesday, March 26, 2013

RUSSIA AND GREATER CHINA

Investing in the future Aleksandr Gabuyev

OPINION

NIYAZ KARIM

n his first visit abroad as the new President, General Secretary of the Chinese Communist Party Xi Jinping was in Moscow on March 22. It is significant that Russia was the first foreign country the Chinese leader visited after his election at the annual session of the National People’s Congress. Given rising tensions with the United States and many of its neighbours, Beijing sees it as important to maintain friendly relations with Moscow at a time when the economic links between the two countries are also in need of some bolstering. In recent years, Moscow and Beijing have been actively stepping up their political co-operation. They have created the Shanghai Co-operation Organisation; they have been voting in unison at the UN, counterbalancing the three other permanent members of the Security Council; and they have been opposing US missile defence plans. However, when it comes to trade, relations between the world’s second- and sixth-largest economies (by nominal GDP) are far from realising their potential. According to China’s General Administration of Customs, last year’s trade between Russia and China grew by 11.2 per cent to reach HK$697 billion. At the same time, the growth rate in trade (42.7 per cent in 2011) dropped nearly fourfold. The leaders of the two countries have set the task of bringing trade to HK$775 billion by 2015 and HK$1.5 trillion by 2020. In order to hit these targets, progress needs to be made in several areas. First, trade cannot reach HK$1.5 trillion without China buying Russian gas. A memorandum to that effect was signed between Gazprom and

China National Petroleum Corporation (CNPC) back in 2006. Two pipelines with a capacity of 68 billion cubic metres, were supposed to be launched last year. However, because of price disagreements, this project is only alive on paper. In the meantime, this year offers new opportunities. Gas prices in Europe are falling, while prices for liquefied natural gas (LNG) that China imports are on the rise. The prices should even up soon, which would make sales to Europe and China equally profitable for Gazprom, while for China it would make no difference as to whom it buys energy

resources from – except for the strategic reliability of pipelines over the vulnerability of deliveries by sea. At the same time, the two countries need to boost their oil trade. The president of Russia’s major state oil company Rosneft is ready to give CNPC, CNOOC and Sinopec access to offshore oil projects on Russian territory and to increase oil supplies to China via Kazakhstan. This might dispel the uneasy feeling still remaining after the price dispute between Rosneft, Transneft and CNPC over the Skovorodino-Daqing pipeline that was resolved early last year

after HK$23.3 billion in losses for the Russians. Moscow and Beijing also need to revise the largescale programme of economic co-operation between regions of the Russian far east and northeast China signed back in 2009, which has also remained largely on paper. The Russian leadership should decide whether to allow Chinese investors into Siberia and the Russian far east, and what the rules of the game should be. The two countries must step up their mutual investment activities. Last year, China was the fourth-largest foreign investor into Russia, in terms of accumulated investment with HK$215.5billion, after Cyprus, Luxembourg and the Netherlands, which largely represent money from offshore Russian companies. The mechanisms the two countries have set up to increase investment have not been working. A HK$31 billion joint fund established in 2012 by China Capital Investment Corporation and the Russian Direct Investment Fund with a managing company in Hong Kong has not yet invested a single cent. Alexander Gabuyev is a correspondent at Kommersant

Xi’s visit set to improve bilateral relations Sergei Luzyanin Despite similar political interests, economic relations between Russia and China are characterised by a high degree of mutual mistrust. There may be changes under way, however. In his first state visit to Russia, China’s new President and General Secretary of the Central Committee of the Communist Party, Xi Jinping, suggested a possible solution. His predecessor Hu Jintao’s first visit to Russia in 2003 was to attend a summit of the Shanghai Co-operation Organisation in Moscow. Xi’s visit has an independent bilateral agenda, underscoring a new zenith in the political partnership between Moscow and Beijing. Xi described China and Russia as “constructive forces” in maintaining the “international strategic balance”. Strengthening the Russian vector could also point to Beijing’s desire to send a signal to Washington that not everything is measured in terms of commercial contracts. It is possible that the Chinese leadership is making it known to Washington and Moscow that, despite the close economic and financial ties and obligations binding China and the United States, its strategic priorities in respect to Russia could be even more vital. Moreover, the Russian-Chinese partnership is

becoming a weighty response to America’s return to Asia without threatening to turn it into an alliance or a military-political union. In a sense, leaders of both countries have sought to teach US President Barack Obama a lesson of

... the visit by the head of the world’s second largest economy is especially important for Russia ... with a view to strengthen bilateral relations... respect and farsightedness. One must remember that Obama did not deem it necessary to visit Russia after his first or second election. The reasons vary, but chief among them is America’s underestimation of Russia’s role. Against this backdrop, the visit by the head of the world’s second largest economy is especially important for Russia, both as a kind of moral compensation for America’s diplomatic moves and with a view to strengthen bilateral relations, and

the personal friendship of Xi and Russian President Vladimir Putin. After Moscow, the two leaders will meet again at the BRICS summit in Durban, South Africa. The establishment of a BRICS community is a real and important step to create a more equitable world. Global and regional security is clearly top of the bilateral agenda for both countries. North Korea’s short-sighted nuclear tests have, wittingly or unwittingly, affected Russia and China’s strategic positions in the Asia-Pacific region. Make no mistake, the expansion of the US missile-defence programme in Asia is not directed at North Korea but at its two giant neighbours. The situation is compounded by the fact that the region lacks a comprehensive system of security. The cold war structure of US defence treaties and military bases still dominates. The key issues of trade and energy co-operation have some way to go before they catch up with the political initiative. But the start of promising negotiations on the production and sale of liquefied natural gas (LNG), and the construction of oil refineries in Tianjin and Russia, suggest hydrocarbon co-operation is deepening. China could prove to be a major asset in the development of Siberia and the Russian far east. Recently, however, certain experts in Russia have arrived at the conclusion that Chinese business is more interested in turning Russia into a “feed-

stock appendage”. Incidentally, on the potential collaboration with Russian companies, certain sections of China’s business community have focused on unilateral benefits. Whether by accident or design, this strengthened feelings of distrust and suspicion in Russia. After a series of meetings and sessions with party and business leaders, Xi made a very important suggestion. He drew his colleagues’ attention to the need for a shift in emphasis from “unilateral advantage” to “mutual benefit”. Xi’s “mutual benefit” approach could solve the thorny issue of trust, which is the perennial cornerstone of relations in the economic and political sphere. If the problem is resolved, and Russian business begins to believe in the mutual benefit scenario, the qualitative expansion of Chinese investment in the Russian economy, including hi-tech and energy, will grow exponentially. This could well become the key bullet point in the economic dialogue between the two countries. Sergei Luzyanin is deputy director of the Institute of Far Eastern Studies under the Russian Academy of Sciences and professor of the Moscow State Institute of International Relations (MGIMO) under the Ministry of Foreign Affairs. He has a PhD in History.

Tuesday, March 26, 2013 7

RUSSIA AND GREATER CHINA

Nation offers new concept Fydor Lukyanov

JAVIER AGUILAR

ussia’s new Foreign Policy Concept has finally been released. The latest version doesn’t contain anything revolutionary, but gives insights into how the Russian establishment sees the world. For the first time, the concept does not mention the cold war. Twenty years after the cold war, it is clear Russia’s problems have little connection to that time. The updated concept mentions “the decreasing danger of large-scale war, including nuclear war”. This is important, and shows Russia is struggling to shed its 20th-century, big-war mindset. Russia needs a new approach to national defence and foreign relations. The concept points out that “the only reliable insurance against possible shocks is compliance with the universal principle of equal and indivisible security as applied to the Euro-Atlantic, Eurasia and Asia-Pacific regions”. This is a departure from the popular Russian myth that isolation can be good for development. It simply isn’t possible in the modern world. An important section of the concept deals with the “civilisational dimension” of global competition and the “rivalry of values and development models within the framework of the universal principles of democracy and the market economy”.

OPINION This is nothing new, but it has new resonance. Hyper pragmatism in Russian politics is giving way to a search for a new ideology and values. The concept acknowledges the need for this: “The growing importance of civilisational identity is the flip side of globalisation.” It is notable that the Arab Spring is interpreted in the concept as the “striving of nations to return to their civilisational roots”, and “a political and socio-economic renewal of society proceeding under the banner of strengthening traditional Islamic values”. Given the widespread belief that developments in the Middle East and North Africa were the result of a clever United States strategy, or another conspiracy, this new interpretation comes across as adequate, even daring. The new concept introduces the term “soft power”, which has gained popularity in the West

since the 1990s, but not in Russia. Russia’s President Vladimir Putin used the term in one of his pre-election articles, a year ago, and has since referred to it as a vital element of foreign policy. However, the Russian interpretation of “soft power” emphasises the country’s role in counter-propaganda, whereas Europe and the US understand “soft power” as an attractive sociopolitical model that can be applied in other countries. But the fact that Moscow has taken note of “soft power” at all is a step in the right direction. Until recently, Russia preferred to rely solely on hard power. Echoing Putin, the authors of the concept write about the “unlawful” use of soft power, referring to Western NGOs, which the Russian president sees as a foreign tool used to destabilise Russia. Another new element that Russia used to disregard is information security. Given the present situation, the new concept urges “expanding the legal framework of international

co-operation to better protect the rights and legitimate interests of Russian children abroad”. It also indicates that Russia is willing to work to improve relations with Georgia. European countries of primary importance to Russia are Germany, France, Italy and the Netherlands, and Britain, with which Russia has had troubled relations. The authors write: “Russia would like to use the potential of mutual co-operation with Great Britain.” The concept also mentions a new interest of the Russian leader: Antarctica. The hierarchy of Russia’s priorities has not changed. As before, the post-Soviet space is the top priority, to be dealt with through the Eurasian Economic Union. Asia still comes after the CIS, Europe and America in Russia’s foreign policy priorities. Fydor Lukyanov is Russian editor at a global affairs magazine. The article appeared in RIA Novosti.

Growing rivalry in East Asia raises the stakes Victor Sumsky An important aspect of the rivalry between the United States and China, which is taking on increasing significance in East Asia, is the potential for naval confrontation. The face-off is already on the agenda of many international conferences and seminars, and is a topic of parliamentary debate and media discussion. All too often, the impression created is that “China is to blame for everything”. The data point to a build-up of its surface and submarine fleet, the coastline deployment of precision missiles and the development of tools to track maritime targets and disable enemy commandand-control systems. According to US experts, the main objective is to “deny access” to the US navy in various regions of the Pacific Ocean. The wording is technical in nature, but re-

plete with latent resentment. After all, the everyday “access” of the internet has inculcated us into believing that the very concept is a sacred human right. So if US sailors need “access” to waters adjacent to a certain territory, then how can it be denied? After all, for more than half a century, naval bases, patrols and intelligence gathering in the proximity of China’s coast have been natural to the Americans. The US, and its faithful allies, wield great force – in the shape of six aircraft-carrier groups – as a guarantee of political stability and economic prosperity across East Asia and to secure international lanes of communication. Even the mere suggestion that “forward deployment” could, in the eyes of the Chinese or someone else, appear to be an act of open aggression, and expansionism is deeply offensive to the American psyche. In Washington’s official interpretation, the principle of freedom of navigation requires that

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the 360km economic zones of all coastal nations be open to foreign military vessels. The US justifies its right to “access” the Chinese coast on this very proposition. US diplomats assert that their country’s administration would not object to Chinese warships in the exclusive economic zone of the US – omitting to point out that China is not yet able to mount such an expedition. But if China’s naval capabilities – and control of the seas – continue to grow, will we see such an incursion in future? If so, expect the US to promptly revise its policy of acquiescence. What’s worse, the problems outlined above impact much more than US-China relations. The level of military and political tension is rising throughout East Asia. The question that lingers is whether the rivalry between the two powers undermines regional stability, without which the continued growth and integration of East Asian economies would founder?

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Russia, which harbours plans to exploit the economic potential of Siberia and its far east in close co-operation with its Asian neighbours, has something to mull over. In particular, the fact that any escalation between the US and China is not in Russia’s national interest, and does not chime with its modernisation programme. It is reassuring that other countries in the region share these sentiments, so there is hope for multilateral dialogue on Asian security underpinned by joint action. As Russia’s resurgence continues, its contribution will be even more vital – economically, politically and militarily. In this context, the modernisation of the Russian armed forces, including the Pacific Fleet, comes not a moment too soon. Victor Sumsky is the director of the Asean Center at the Moscow State Institute of International Relations.

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8 Tuesday, March 26, 2013

RUSSIA AND GREATER CHINA

Organisers in the firing line

Some of the Games facilities are a long way behind schedule.

The snow leopard is one of three 2014 Sochi Olympics mascots.

Most coaches, journalists and spectators agree that the Turin Olympics was poorly organised

was very poorly organised,” says Pavel Rostovtsev, who won silver in the biathlon in Turin. He said most of the complaints were about housing and transport. “Many believe that of the previous five winter Olympics, Turin was the worst,” Rostovtsev says. The 2010 Winter Olympics in Vancouver made the worst possible start. Nodar Kumaritashvili, a Georgian luger, crashed during a trainig run on the opening day. He was thrown off his luge and over the sidewall of the track, smashing head-first into a concrete support pillar. He died an hour later without regaining consciousness. The opening ceremony began with a minute’s silence.

Akhmed Bilalov stepped down as vice-president of ROC.

NATALIA MIKHAYLENKO

of a lack of financing. During the Games itself there were serious problems with transport. It took athletes and journalists four to five hours to reach the Olympic venues from the city, changing several trains or buses along the way. The narrow main road between the city and the venues was constantly clogged. “As an athlete, I have nothing to complain about – but most of the coaches, journalists and spectators I have spoken to agree that the Turin Olympics

PHOTOSHOT/VOSTOCK-PHOTO

2008 Olympics in Beijing. Politicians and NGOs around the world criticised the choice of host, accusing Beijing of serious human rights violations. Two separate resolutions were introduced in the United States Congress calling for an official boycott over the human rights situation in China. The Beijing Olympics was later lauded as arguably the best Games ever in terms of organisation, quality of facilities and the memorable opening and closing ceremonies. As for the previous Winter Olympics, ahead of the 2006 Games in Turin, Italy, the organising committee faced the prospect of being shut down because

ITAR-TASS

onstruction of facilities is behind schedule, costs are soaring, the environment is being damaged and some are starting to question whether Russia should have been given the right to stage such a big event in the first place. Even Russian President Vladimir Putin is unhappy. With less than a year to go before the opening ceremony of the 2014 Winter Olympics in Sochi begin on February 7, organisers are facing mounting criticism. Journalists, politicians, human rights groups and economists in Russia and abroad have all waded in. In early February, Putin travelled to Sochi to inspect the Olympic venues and criticised the organisers. He was angered by the fact that the Russkiye Gorki ski jumping facility was 18 months behind schedule. Worse, Deputy Prime Minister Dmitry Kozak said costs for the facility had soared from HK$310 million to HK$2.1 billion. Akhmed Bilalov, vice-president of the Russian Olympic Committee, was blamed for the huge overrun. He has since resigned. Olympic preparations have also drawn criticism from environmentalists. They say construction in and around Sochi has irreparably damaged the environment. “These projects have devastated the natural habitats of rare species of plants and animals in the Sochi National Park,” says the Russian office of the World Wildlife Fund. Rights groups have also voiced concerns. Human Rights Watch said migrants were not being paid on time and that employers were holding back part of their wages. Such criticisms are the rule rather than the exception in the build-up to most modern Games of the past generation. Nevertheless, in almost every single case, organisers managed to get their act together and ensure decent standards at the planet’s biggest sporting event. The 2004 summer Olympics in Athens provided an example. Four years ahead of the event, the International Olympic Committee (IOC) expressed concerns that facilities had fallen behind schedule. Greece was forced to set up a new organising committee. Just months before the Games, venues were unfinished. The stadium which hosted the opening and closing ceremonies opened just two months ahead of the Games. Yet, the Games proceeded without a hitch. Complaints were voiced ahead of the

Sochi Olympics faces race against time to get everything finished for 2014 showpiece, writes Ilya Trisvyatskiy

In Russia, the Olympics have long been a sensitive matter. Many still remember the Western-led boycott of the 1980 Games in Moscow and are wary of the merits of further criticism. The Western media often give prominence to calls to use this event to extract concessions from Moscow in other areas. Several IOC members say that the most impressive aspect of the preparations for the 2014 Games was the strong emphasis on security measures. Only a few doubt that the organising committee will overcome the difficulties. “We did not choose Sochi because it is a Russian city,” says IOC president Jacques Rogge. “We chose it because it was the best choice.”

2.01 BILLION HK$ cost for ski jumping facility

These projects have devastated the natural habitats of rare species of plants and animals

Tuesday, March 26, 2013 9

RUSSIA AND GREATER CHINA Moscow Sochi

Visitors can enjoy a winter wonderland during Games The Sochi Olympics have been split into a coastal cluster and a mountain cluster. The mountain cluster is one of the oldest places in Krasnaya Polyana – a “Plymouth Rock” of sorts, on which the first wave of migrants crashed. Like all coastal areas, Krasnaya Polyana was originally populated by newcomers. In the 19th century, descendants of Moldovans, Pontic Greeks and Estonians found shelter here. The mountain cluster includes the Olympic biathlon and ski complexes, the bobsleigh track, the ski centre, the ski-jump complex, as well as the snowboard park and the freestyle centre. Almost all of the facilities are ready for competition. Even with a year to go before the opening of the Games, there are plenty of places to have a great time. A sophisticated cable-car network is strung across Psekhako Ridge, where you can travel like a prince in a closed carriage with tinted windows. If your tastes are more modest, then you can be whisked away on a plastic chair, legs dangling in the open air. If you plan on skiing, then you had better be sure of your abilities before you have a go – there are your standard green slopes for beginners and black slopes for advanced skiers.

Daniyl Kolomiychuk

What can visitors eat in Krasnaya Polyana? Among the effective dishes to fight hunger pangs are venison hot pot, wild-hog ribs or bear stew. You can sample these exotic delights at the Vodolei restaurant in Estosadok village (at 36 Olympic Street), housed in a mysterious cavern-like room with illuminated stalactites. Czar Trout is another local delicacy. You can try the fish, prepared on a grill with fragrant herbs, at the Patskha Achishkho in Krasnaya Polyana (1 Achishkhovskaya Street). The restaurant is set away from the main street, but this is part of its charm. Listening to the sounds of the mountain lake is more pleasant than listening to screeching tyres. The alpine café 1144 is a local cult favourite. Located at Rosa Khutor Xtreme Park in Estosadok village (second-tier cable car), the 1144 refers to the cafe’s elevation. You need to ride a cable car to get there and it was made famous by President Vladimir Putin, who once ate pancakes with honey at the cafe. There is no shortage of summer entertainment in Krasnaya Polyana. You can go rafting on the “Rage” (the locals’ name for the Mzymta River). If you want to go careering down near -vertical slopes full of overgrown shrubs in an off-road vehicle, then you can give “jeeping” a try. If you prefer a more relaxed pace, then you can take a walk to

MARINA KOROBKOV_FOCUS PICTURES

Daniyl Kolomiychuk

Krasnaya Polyana has something for everyone. the Khmelevsky Lakes and see the fascinating tritons that live there. You can also give crossbow shooting a go. The list goes on. Russian tradition dictates that in winter, the thing to do is visit the local bath house, or banya. Indeed, they have bathing down to an art in Krasnaya Polyana. At the Four Peaks bath house (10 Estosadok), a honey, salt or forest-herb rubdown awaits you. At Timeskal (94 Zapovednaya Street), the steam room has been replaced by a unique, “black” mud hut, while at Kharakuge (also 94 Zapovednaya Street) you are pushed into a two-tonne water tank hung over a fire. If you are after souvenirs, the old babushkas will be selling traditional crafts, warm, woolly goat-fur socks for HK$152 and sweet honey.

AFP/EASTNEWS

Exotic delights to savour

Read more at www.rbth.asia/45093

The upcoming Winter Olympics has transformed Sochi’s nearby resort area of Krasnaya Polyana. Hard to reach, the region now attracts visitors with sophisticated cable cars, five-star hotels and traditional Russian saunas. From skiing to crossbow shooting, there is plenty to do here, even before the Games start. Two decades ago, a trip to Krasnaya Polyana was a challenging and perilous quest. Options for getting there were severely limited. You could throw your things into a flimsy helicopter and hope for the best, or spend three-and-a-half terror-stricken hours negotiating the winding mountain roads while staring into the abyss. Admittedly, the road to Akhshtyrsky There are no direct flights between Canyon is more or less trouble-free. Sochi and Hong Kong. The most Still, once you hit the Royal Road – a convenient route in terms of durapathway carved through rock by Turktion and the number of changes is ish prisoners – any pretence of calm through Moscow’s Sheremetyevo vanishes. Airport. Aeroflot is the only airOn the right is a near vertical line that flies the Hong Kong-Mosdrop, at the bottom of which lies cow-Sochi route. It takes 16 hours the mangled corpses of Ladas on average, including the stopover and UAZ cars in the muddy in the Russian capital. But there waters of the Mzymta River. is a viable alternative through S7, On the left is a bombardment another Russian airline that has of rock fragments, falling like formed an alliance with Cathay Pabread crumbs on to the roof cific. And ahead of Sochi 2014, of whatever vehicle you are Russian Railways has built a line travelling in. And leaving the connecting Sochi Airport to Kraswork to professionals does not naya Polyana. make things easier. If you are making the trip by bus, tour guides would regularly prod passengers with the obligatory joke: “The driver’s just as scared as we all are; that’s why he’s MIKHAIL MORDASOV_FOCUS PICTURES driving with his eyes closed.” These days, a trip to the mountains is a pleasurable and uncomplicated affair. The menacing roads are a thing of the past. Neatly cut tunnels have reduced the travel time to nearby Sochi to 30 minutes. More comfort and ease is expected by the time the Olympic Games arrive, thanks to a monorail from the airport to the old heliport. With less than a year to go, Krasnaya Polyana looks less like a land that time forgot. Leafy pathways have turned into highways. Bushes have been hacked away to make room for cable-car stops, which are perched on top of tripods that seem straight out of a sci-fi novel. Quaint bungalows have given way to modern chalets with floor-to-ceiling windows. Why do people go to Krasnaya Polyana? The answer is pretty straightforward — they come for the snow. Russia has its fair share of snow, but only here can the proximity to the sea turn your holiday into a kind of surreal, roller-coaster ride. You can go for a swim in the sea and, an hour later, your skis are crunching fresh, marzipan-textured snow. Sombre foresters and the occasional meteorologist have been replaced by Sochi’s nearby resort area of Krasnaya Polyana has been transformed trendy young Eastern Europeans. into a modern venue for the Winter Olympics.

SOCHI

How to get there from Hong Kong

10 Tuesday, March 26, 2013

RUSSIA AND GREATER CHINA COMMENT ELENA SHIPILOVA RGC BUSINESS EDITOR

Russia is capable of doing everything, from building nuclear power plants to providing financing.

Firm fuelled by power demand Rosatom enjoys a boost in orders despite the Fukushima nuclear disaster, writes Andrei Reznichenko

espite fears that the accident at Japan’s Fukushima nuclear power plant in March 2011 would slow down the global growth rate of the nuclear sector, the Russian stateowned nuclear monopoly Rosatom ended last year on an optimistic note. Its portfolio of orders was nearly HK$147.2 billion higher than in 2011, the company’s representatives said during the Asia Nuclear Business Platform in Hong Kong last month. The Fukushima disaster has spurred competition on the nuclear energy market, with the main criterion for customers now being safety and durability. The fiercest competition has been in the fastest-growing and most earthquake-prone part of the world, AsiaPacific, where reactors have to meet rigorous standards. The task of building a nuclear infrastructure from scratch is particularly relevant for countries now developing a nuclear power industry, because the infrastructure to ensure the operation and regulation of a nuclear programme is the basis for a peaceful nuclear sector. Rosatom is a key player, with the company specialising in nuclear infrastructures customised for specific countries. “Russia is capable of doing everything, from building nuclear power

plants to providing financing to transferring technology, training staff, providing legal support and creating the necessary nuclear infrastructure,” Rusatom overseas vice-president Yuri Sokolov told Russia and Greater China. “We are already successfully co-operating with Vietnam, China, India and Bangladesh and are ready to expand the geography.” In Hong Kong, Russia presented a new approach to international co-operation on small reactors and nuclear medicine. Russia used the forum to unveil some new designs, including the fast neutron modular reactor SVBR-100. Russian submarines use similar reactors. Low-power reactors are one of the most promising areas in modern nuclear energy. “The SVBR-100 project ... is based on a technology that has enjoyed over 80 reactor years of accident-free operation in nuclear propulsion systems,” says Sergey Boyarkin, an executive vicepresidential adviser at Rusatom Overseas, a subsidiary of Rosatom. Several European nuclear companies have already joined the project. Research and development on the project and the design for the reactor and the test power unit are due for completion by the end of next year and the power start-up set for 2017. The SVBR-100 may become the

ENERGY world’s first commercial medium-power reactor and take up 10 to 15 per cent of the global market for small and medium power nuclear reactors. “Fast reactors will help us answer one of the most pressing questions in atomic power generation: what is to be done with spent fuel from operating nuclear power plants. Russia has extensive experience with fast neutron reactors. “Not only in terms of design but also in terms of test operation of these reactors that could become a reliable source of energy for centuries to come,” says Professor Leonid Bolshov, head of the Nuclear Safety Institute at the Russian Academy of Sciences. Rosatom also presented its latest achievements in radiation technology, covering three main areas: nuclear medicine, ecology and radiation sterilisation, including plans for Russianmade equipment for radionuclide diagnostics and radiation therapy; projects for building high-tech industrial facilities – radiation centres and plants for the sterilisation of medical waste.

Asia’s growth opens new doors The development of Asian economies is often seen as a miracle in Russia. Most countries in the region have experienced explosive economic growth in the past few decades, developing new business and financial ties with Russia. Financial market development also continues. Many global investors have increased their asset allocations to Asia, particularly within fixed income markets, encouraged by a favourable macroeconomic backdrop and the stability and strength in the underlying sovereign finances of many Asian countries. Over the past 15 years, Asia’s role in the Russian economy has changed remarkably, especially that of China. “China has become the largest trading partner of Russia,” Damian Chunilal, CEO Asia for VTB Capital says. “This is mainly through the circulation of goods, services and ideas. However, this has yet to be supported by the flow of capital and FDI in a way that has been seen between Russia and Western countries.” VTB Capital believes trade and finance flows between Russia and Asia will increase. “The firm is well-positioned to participate in these flows and support clients”, Chunilal says. In particular Chinese investors, are showing great interest in Russia. VTB Capital, the investment business of VTB Group, the second largest bank in Russia, has been in Asia since 2008. The company, representing global markets and global banking businesses in the region, has offices in Singapore and Hong Kong. In that time, VTB Capital has grown into the leading investment bank in Russia and the Commonwealth of Independent States (CIS), according to Dealogic, Bloomberg and Thomson Reuters. Last year, VTB Capital became the first Russian bank to enter the top-20 advisors on global mergers and acquisitions in the Dealogic rankings. VTB Capital is expanding its activities in Asia has been active in intermediating capital flows between Asia and Russia. Chunilal says sizeable Russian-Asia trade flows will provide a major boost for the development of the cross border financial services market between Asia and Russia. As a result, VTB Capital is strengthening its Asia team. Several appointments have been made in the Hong Kong and Singapore offices in the past six months and plans are afoot to expand corporate and investor coverage in Asia generally and onshore and offshore in China specifically.

However, one must not be complacent. Asian economies still remain vulnerable to potential volatility in crossborder capital flows given the inter-connectedness of trade and capital flows. As we saw in 2008, a sharp fall in exports to other developed markets, a reversal of foreign investment flows into Asia and restriction of credit supply as a result of rapid foreign bank deleveraging can severely impact short term economic growth. Within Asia the specific economic situation differs with some economies arguably needing to rebalance from investment-led to consumption-led growth. Loan growth remains high in some countries and it remains to be seen whether this has been at the cost of some deterioration in asset quality.

Region’s role in Russian economics has changed remarkably, especially that of China Global economic developments remain challenging. As recent events have demonstrated, the eurozone crisis remains unresolved and ongoing public and private sector debt deleveraging in the West plus the impact of bank recapitalization may result in a sustained period of lower growth. Moreover, sovereign debt problems are not confined to the eurozone – both the US and the UK face challenges over the longer-term in moving fiscal policy on to a more sustainable basis. Nevertheless, the longer-term picture for Asian economies and its financial markets is positive. The lessons from the 1998 crisis have been learnt and sovereign and private sector balance sheets and for the most part strong. Asia as a region has some degree of immunity and a greater flexibility to respond to any future economic or financial crisis. We expect to continue to see the region enjoy above average sustainable economic growth over the longer term. We also expect trade and financial market flows between Russia and the rest of the Asia Pacific region continue to grow rapidly in the years ahead and regional cooperation increase as a result.

Tuesday, March 26, 2013 11

RUSSIA AND GREATER CHINA

Ageing gracefully

Girls put their best look forward

Not all retirees want to stay home and babysit, writes Natalia Yamnitskaya

Irina Ford, Natalya Nemchinova The international advertising agency DDB Russia once worked on a campaign for a cream by RoC skincare that aired in several markets. The commercial, showing a woman looking at herself in the mirror, smiling at the results of her cream, won acclaim in France, but was a failure in Russia, scoring low on believability and likeability. When the DDB team introduced a man looking at the woman in admiration, the attitudes of Russians changed markedly. DDB’s experience is an example of what beauty experts consider the key difference between Russian and Western women. Ads directed at European women emphasise that a product can make the user feel comfortable in her skin; they often show women wearing comfortable clothes and light make-up that underlines natural beauty. But Russian women are thought to

lga Kuznetsova glides across the floor of a dance studio in an elegant dress and heels. At 55, she is the picture of poise and grace, even though, age-wise, she qualifies as a babushka, the Russian word for grandmother. Despite her recent retirement from work, Kuznetsova refuses to retire from life. She looks at it as a chance to do something she has long dreamed of: learning to dance the tango. And she is not deterred by being the oldest in her group. Kuznetsova’s new routine involves meeting friends after class, and she is planning a trip to Europe with them next month. “I raised a child, worked three jobs, and now just want to live for myself,” she said. While such activities might be common for retired women in other parts of the world, in Russia they are a novelty. The traditional image of Russian grannies is of old ladies sitting on benches outside apartment buildings, watching their grandchildren play nearby as they discuss the latest news and gossip. But exposure to globetrotting retirees – in person and through movies and magazines – has given Russian women new ideas of what to do after escaping the daily grind. Today, retirement can mean a new sport or hobby, chatting online or helping families and society. “My mother is 62 years old, and she is by no means a babushka,” said Yulia Bushueva, managing director of Arbat Capital’s New Kremlin Fund. “She retired a couple of years ago, started driving, and is now thinking about courses in photography and English.” Others are using technology for a new take on old hobbies. “My grandmother downloads computerised embroidery patterns and uses

Fitness classes are among the many new activities older women are embracing. them in a special sewing machine,” says student Yulia Vedinina. “If she doesn’t understand something, she takes a video tutorial on Skype.” Body-and-soul courses aimed at older people are popping up everywhere in Moscow. A dance school for seniors recently opened at the All-Russia Exhibition Centre (VVTs) in northern Moscow. And the Mitino social service centre in the Moscow region now hosts an amateur puppet theatre. Under the Age of Happiness project, set up by

LIFESTYLE

Grandmothers take centre stage

Vladimir Yakovlev, founder of the business daily Kommersant, seminars are held on how to live, eat and stay busy, regardless of age and social stereotypes. And this more active type of retirement is not only on the rise in Moscow and St Petersburg. Gertruda Pankrushina, a former anaesthesiologist from Novosibirsk, enrolled in a computer course at the age of 70. “It wasn’t easy, but I got through it ... I now Skype my grandchildren, write e-mails, and get recipes online,” she said.

Paying for retirement

test. The group, from the Republic of Udmurtia in the Urals region, dance in traditional birch-bark shoes and rehashed hits by Russian and foreign performers in the Udmurt language. They took second place with their rousing song Party for Everybody.

ALYONA REPKINA

The Buranovskiye Babushki (The Grandmothers from Buranovo), a folk collective with an average age of 75, showed the world that growing old doesn’t have to mean slowing down when they represented Russia in last year’s Eurovision song con-

The reason Russian women dress the way they do is because of their background want to look their best 24/7, preferring to see women in ads with the kind of make-up and attractive clothes they see on the streets in Moscow. Natalya Tsel, a linguist from St Petersburg who studied in the United States, says many Russian women find it hard to comprehend Americans’ love for casual style. “How do American women dress and apply make-up? They’d use the words ‘comfortable’ and ‘practical’, but we’d say ‘careless’ and ‘dull’,” Tsel says. Stylist Natalya Tan explains the difference: “The reason Russian women dress the way they do is because of their background. “Our art, our national costume and architecture build on the heritage of the Scythians, Mongols and Byzantines. Look at the Orthodox churches, their luscious paintings and the shining domes. This is the cultural code that defines our taste.” Studies show Russian women spend generously on cosmetics. Indeed, Euromonitor notes they devote a higher proportion of their income to cosmetics than European women. Women in Spain, Portugal and Greece spend about HK$1,010 on cosmetics a year; French women spend HK$2,000; Swiss women HK$1,800; and British women HK$1,500. A Russian woman spends about HK$700 a year, but that is still considered high, given that monthly salaries averaged HK$5,900 last year, compared with HK$21,000 in Spain and HK$19,500 in Greece. The beauty industry in Russia is thought to be among those with the most potential for profitability.

12 Tuesday, March 26, 2013

RUSSIA AND GREATER CHINA

Future lies in the past

Moscow Kazan

Kazan is the best place to discover the connection between Europe and Asia, writes Toby Fisher

TRAVEL which leans on its side. English-language tours are available. The River Kazanka joins the Volga at Kazan and offers a good view of the city’s modern face, including the Millennium Bridge, built in 2005 for the 1,000th anniversary celebrations. Heading back from the river, you can see its Russian heritage in all its glory. Tatarstan became part of Russia during the reign of Ivan IV (the Terrible), whose forces put the city under siege in 1552. The Kazan Theatre of Opera and Ballet dominates Liberty Square, and closer to the city centre is Kazan Federal University, near Bauman Street, a long pedestrian walk at the heart of the city. Here the souvenir shops alternate with restaurants, many offering Turkish cuisine – a testament to the ethnic ties between Tatar and Turkish cultures. You’ll also find traditional Tatar dishes – the honey-coated fried dough known as chak-chak, served with tea, comes highly recommended. Across the Bulak canal is Kazan’s central market, which shouldn’t be missed.

SLAVA STEPANOV

hen Kazan celebrated its 1,000th anniversary in 2005, it marked the start of a transformation for the city, as it earned recognition as the “Third Capital of Russia” and became a tourist haven for Russians and foreigners. The Kazan mayor’s office patented the brand name “Third Capital of Russia” for the nominal sum of HK$10,100 and secured this honorary position after Moscow and St Petersburg. Its raised status also helped to attract some major events. From July 6-17, Kazan will host the 2013 World Student Olympics, or Universiade. The city has changed so much since the anniversary that old guidebooks are now useless. The best way to discover this rising metropolis is to simply go there. Even for Russians, visiting Kazan is like going to another country. The city was built on the River Volga, about 965km east of Moscow. Kazan is the capital of the Republic of Tatarstan – whose population is almost evenly split between the Muslim Tatar and Orthodox Russian communities. Kazan’s appeal is rooted in this mix of cultures, which is reflected in the architecture and cultural offerings. Dominating the skyline is the Kazan Kremlin, an ancient fortress. There is a large mosque and a Russian Orthodox cathedral. Next to the mosque, the Annunciation Cathedral is revered by Orthodox believers as the home of the icon of Our Lady of Kazan, one of the holiest in Russian Orthodoxy, built from 1554-62. In addition to religious sites, the Kremlin also features the Söyembikä Tower,

Read more at www.rbth.asia/44525

Dominating the skyline is the Kazan Kremlin, which is an ancient fortress.

How to get there from Hong Kong

Where to go what to eat in the city shop and the Altyn Ay workshop, which specialises in Islamic and Tatar clothes. These range in price from HK$201 for a belt or purse to HK$1,030 or more for a Tatar costume. If you are looking for edible souvenirs, go to one of the many shops in the Bahetle chain. At Bahetle, you can buy real Tatar groceries used in Tatar cuisine, and small souvenirs for the home. The prices will be a little higher than in ordinary supermarkets, but so will the quality. There are also Bahetle supermarkets in Moscow.

Like Sochi, Kazan has no direct air links with Hong Kong. The city is on the banks of the River Volga, and a 90-minute flight from Moscow. The shortest routes go through Moscow’s Sheremetyevo International Airport. Only one airline offers the Hong Kong-Moscow-Kazan route and that is Aeroflot. S7 and Cathay Pacific also fly to Moscow. A trip to Kazan can be easily arranged during a stay in Moscow. Instead of hopping between airports, you could take an evening train from Moscow to Kazan.

SLAVA STEPANOV

The Al-Marjani Mosque, which is the oldest mosque in Tatarstan, is a must for visitors. You will receive a warm welcome and be taken on a short tour that is free of charge. Don’t forget to take your shoes off when you enter the mosque. If you want to grab a bite to eat, drink some tasty tea and stock up on souvenirs, you need to pop into the Ebivol gallery, near Ulitsa Parizhskoy Kommuny (Paris Commune Street). Here you can buy pictures by Kazan artists. There is also a tea

Kazan’s appeal to visitors is its mix of cultures.

Tuesday, March 26, 2013 13

RUSSIA AND GREATER CHINA

Oasis at ice station George Tourists can enjoy fishing, look at penguins, get married and run marathons, writes Daria Gonzalez

Bellingshausen Station holds The Church of the Holy Trinity, the only permanently staffed Eastern Orthodox church in Antarctica.

DMITRY MALOV

TRAVEL

ALAMY/LEGION MEDIA

athon. The first of these races was held in 1995. In 2012, 145 people ran through 42km of uneven, hilly ground. The Antarctic’s first Orthodox church – The Church of the Holy Trinity – was built at the Russian base. Since its completion in 2004, priests have been replaced each year on the same schedule as the station staff. Some of them have been here more than once. Father Kallistrat has done two tours. “At Epiphany we blessed the water in the lake and then sprinkled the whole station with holy water,” said Father Kallistrat. The church now has a permanent priest, Father Grigory, who has spent 20 years in polar regions. The stream that divides the Chilean and Russian stations is known as “the Jordan”. The first wedding in the Antarctic took place in this church in 2007: Angelina Zhuldybina, daughter of a Russian polar researcher, married Chilean Eduardo Aliaga Ilabaca, who works at the Chilean base.

One way to reach Antarctica is by sea, from Argentina. Antarctica is not easily accessible. There are two ways to get there: by air or by sea. Flights to Antarctica take off from Chile’s Punta Arenas Airport, with a preliminary landing at Teniente R. Marsh Airport on one of the Antarctic islands. These flights serve research stations, including Russia’s Bellingshausen and China’s Changcheng. The second option is by sea from the Argentine town of Ushuaia, where you can catch one of the cruise ships that ply the route to the southern continent. To get from Hong Kong to Ushuaia requires at least two transfers. The first depends on the airline, and could be in Sydney, Toronto, Doha or Istanbul. The second is very often in Buenos Aires, Argentina, from where Aerolineas Argentinas operates local flights to Ushuaia. Russia’s research stations are serviced by flights from Punta Arenas and by sea on board the Akademik Fedorov.

Facts about Antarctica For centuries, the existence of a southern continent was a moot topic. The world thought it was joined by land to southern hemisphere countries and maps even linked this so-called continent to Australia or South America. Only in January 1820 did a Russian scientific expedition, headed by Fabian von Bellingshausen and Mikhail Lazarev, prove that Antarctica was not connected to any other continent. Their expedition on the Vostok and Mir sloops, which bequeathed their names to two research stations, skirted the continent between the 60th and 70th parallels. The first humans to set foot on the Antarctic ice were, in all probability, the crew of the American vessel Cecilia. Under the International Antarctic Treaty, signed on December 1, 1959, no country can claim Antarctica. Only scientific activity is permitted. There are 28 countries party to the treaty and dozens with observer status. The region is home to some 45 research stations, seven Russian. Antarctica has no permanent population. Depending on the season, the number of

ITAR-TASS

How to get there from Hong Kong NATALIA MIKHAYLENKO

f Antarctica didn’t have its ice cover it would be an archipelago like the islands of French Polynesia: a few volcanic peaks rising above the water, underwater rocks and wide straits. King George Island (or Waterloo Island) would form a small part of this Antarctic archipelago. Most of the island is ice dotted with small “oases” of volcanic rock. Not only is King George Island the closest point between Antarctica and the other continents, it is also the most multinational island in this latitude. The population consists of research station staff from Argentina, Brazil, Poland, Russia, China, Uruguay, Peru, Chile and South Korea. The Antarctic doesn’t belong to anyone. There are no authorities, no borders and no fences. Visitors can catch a range of Antarctic fish and they can look at whales, penguins and seals at close quarters. In summer’s sub-zero temperatures, people swim in the sea and sunbathe in light reflected from the ice. Compared to the largely unpopulated wastes of the Arctic, King George Island is a megalopolis. The Frei base and the Chilean polar village are separated from the Russian Bellingshausen station by a stream, and you can reach the appropriately named “Great Wall” Chinese base in less than an hour by snowmobile. When scientists first came to the Russian station in 1968, 11 people stayed there for the winter. Now, 23 people spend the winter there each year. Because of the mild climate (minus 6.8 degrees Celsius is the average temperature in the coldest month of August rising to minus 1.1 degrees during the warmth of February), Russian scientists call it a “resort.” For tourists who like extremes, King George is a paradise. There are frequent charter ships full of people dreaming of seeing penguins and catching fish next to whales and seals. One of the three stationary hotels on Antarctica belongs to the Bellingshausen research station. “It’s a simple set-up: two beds, linoleum on the floor, a table and chair, walls lined with wood. But if you’ve decided to go to the South Pole, you don’t need any more than that – just the essentials,” reads the blog of one Antarctic tourist. Travellers stay at Bellingshausen by arrangement with the Russian scientists who are happy to put them up, if only because they bring fresh vegetables. In addition to the tourists, the island’s scientists are entertained by participants in the annual Antarctic Mar-

Fabian von Bellingshausen proved Antarctica to be a continent. people living there ranges from 4,000 to 1,000 in winter. Antarctica has been assigned the internet domain .aq and the dialing code +672. In the 1980s, Antarctica was declared a nuclear-free zone.

14 Tuesday, March 26, 2013

RUSSIA AND GREATER CHINA

Mumiy Troll rocks the city Top band from Vladivostok surprises the local audience by singing in Chinese, writes Shirley Lau

Group has strong Asian following

Mumiy Troll is now setting its sights on the lucrative United States market concert-goer Marcello Dini. Formed in the early 1980s in Vladivostok, Mumiy Troll has gone from being what the Soviet authorities deemed a “socially dangerous” band on par with the Sex Pistols to a weighty musical entity in Russia with a growing international presence.

CONCERT Voted “Best Band of the Millennium” in Russia, the self-proclaimed “rockapops” group is known for their melodic hard rock music and Lagutenko’s deliberately androgynous performance style. While many still struggle to pronounce the band name (Moo-me Tro), audiences around world have seen the four musicians live on stage, from Japan and Kazakhstan to Greenland. They are now setting their sights on the lucrative United States market, with an English-language album released some months ago. Yet, Asia is no less important. A Russian whose formative years straddled the Soviet and post-Soviet eras, Lagutenko is used to change. When the Soviet Union collapsed in 1991, he was an exchange student in Dalian. Upon hearing the news during a backpacking trip near Guilin, he called the Russian embassy, inquiring what to do, but eventually decided to stay put while watching the changes unfold. “Everything happened so quickly. I

ITAR-TASS

The band shot to fame in 1997, with their first album, Morskaya. Since then, Mumiy Troll have recorded a range of albums and developed a strong following in Japan, Europe and China. “I grew up in Vladivostok, which is much closer to Asia than the West,” says frontman Ilya Lagutenko. That’s partly why the band staged a concert in Shanghai. “The last time we went there, it was seven years ago. At the time, there was no place where you could hear proper rock ‘n’ roll music ... today, Shanghai is much more exciting.”

Ilya Lagutenko turns up the volume at Mumiy Troll’s concert. was too young to grasp the situation. But it was a most memorable experience ... I’m lucky to have lived in a time of big changes,” he said. Today, slow-paced Vladivostok is not a place to look for drama, but life for Lagutenko and his bandmates is no less exciting. They are working on creating a Vladivostok music festival in August that will feature young musicians from all over

Asia, including Hong Kong, Korea and Singapore. “The Russian music scene is now very international, but Asia isn’t aware of that, just as people in Russia don’t know much about Asian music,” Lagutenko said. “This festival will hopefully bring some changes.” Read more at www.rbth.asia/mt

Hong Kong’s incredibly varied scene is the perfect place for band Independent radio show host Calvin Wong believes Hongkongers are usually keen to see a well-known act in order to stay on top of the trends. Marco Bresciani, producer at Channel V, is intrigued by how the outside world views Asia, however. “I’d be interested to see how Mumiy Troll will perform in terms of sales and airplay,” he says. Bresciani isn’t sure what kind of place the band would have in Hong Kong. Channel V airs a number of videos from acts around the world. “That they use a bit of Chinese in their songs plays in their favour”, he says. “But I can imagine they will remain a niche act over here.” The local indie scene might offer

PRESS PHOTO

t the age of six, Ilya Lagutenko was learning Putonghua at an old Chinese-language school in Vladivostok. It was the late 1970s and sending children to a Chinese school was as fashionable as feudalism in the Soviet Union, but Lagutenko’s mother liked the school because it was only three minutes’ walk from their home. Lagutenko had no idea at the time that what he learned would come in handy in Hong Kong, three decades later. Earlier this month at the Kowloon Bay International Trade and Exhibition Centre, Russia’s most successful band, Mumiy Troll, played their first gig in Hong Kong. After a few Russian songs, the band’s lead singer, none other than Lagutenko, amazed and amused the audience when he launched into Wo Dengzhe Ni Huilai (Waiting For You), an old Chinese song made famous in the 1940s by Bai Guang. Lagutenko sang with a slight accent, but that didn’t stop some 450 concertgoers from applauding. More cheers ensued when he switched to the band’s English-language hits. Guitarist Yuri Tsaler, drummer Oleg Pungin and bassist Eugene “Sdwig” Zvidionny were not in the least bothered about Lagutenko stealing the show, as he always does. The March 13 concert was part of the first-anniversary celebrations of the Russia and Greater China (RGC) project in Hong Kong. In March 2012, the first Russia and Greater China supplement appeared in the South China Morning Post. It has since grown into online portal rbth.asia. “I heard that Mumiy Troll was coming to Asia to play in Shanghai and knew immediately that we desperately needed them here in Hong Kong,” said RGC’s Asia bureau chief, Mark Zavadskiy. “It took more than two months of hard work and negotiations to bring the band in, but it was worth the effort. “Just look at this crowd,” he added, pointing to the throng at the Music Zone Hall at the exhibition centre. The crowd was international: Russian men clad in navy striped tops emblazoned with the name “Mumiy Troll”, perfectly coiffed Russian girls, expatriates of various nationalities and a motley crew of local music lovers. There were no seats in the music hall, which contributed to the vibrant atmosphere and allowed the crowd to dance with out inhibitions. “I rarely go to a concert in Hong Kong. I’d been to one and I was told: ‘Sir, please be seated.’ I was like: ‘What? Sitting in a concert?’ This one was good. It offered something different,” said Italian

Mumiy Troll have performed worldwide, from Japan to Greenland.

a more embracing prospect. Arthur Urquiola, a local musician, event organiser and independent record label founder, says Hong Kong offers the perfect ground for something different. “Hong Kong’s a very international city and the scene here is incredibly varied, and acts that play together aren’t linked by genre”, Urquiola says. “Sometimes you’ll get strange combinations of electronica, folk and hardcore acts on the same bill – and it works.” Urquiola sees another side of Mimiy Troll. “Personally, I’m impressed that they’re passionate about causes like animal welfare ... [and] raising awareness,” he says.

Tuesday, March 26, 2013 15

RUSSIA AND GREATER CHINA

Spectacular treat for HK Priceless eggs from tsar era and other items worth HK$7.75 billion on display, writes Brian Yeung

CULTURE Masterpieces sold for millions

XINHUA

The ‘Fabergé Legacy of Imperial Russia’ exhibition will be in Hong Kong until April 29. Photo: Xinhua coffee service was a gift presented to the wife of former Hong Kong governor Arthur Kennedy during Tsar Alexander II’s trip to Asia and the Far East in 1871 and 1872. Hong Kong and Russia have enjoyed limited large-scale cultural co-operation in the past. Olga Dmitrieva, deputy director for promotion of educational programmes of the Moscow Kremlin Museums, describes “Fabergé Legacy of Imperial Russia” as a very good start. Tsang says that the government signed a Memorandum of Understanding on Cultural Co-operation with Russia in 2011, and this exhibition marked the beginning of large-scale cultural collaboration between Russia and Hong Kong.

An expert, Géza von Habsburg, once described the Fabergé Eggs as “the most expensive things that the imperial family bought from Fabergé”. Ten years after the October revolution, Joseph Stalin sold many of them. Between 1930 and 1933, 14 imperial eggs left Russia. The last sale of a Fabergé Egg was in 2007. A Fabergé clock was sold to a Russian bidder for HK$143.4 million, a record high. The Coronation Egg, presented by Tsar Nicholas II to his wife in 1897, was the second last egg sold at auction to Victor Vekselberg, chairman of Renova Group, in 2004. The final price was not disclosed, but the egg was estimated to be worth as much as HK$186 million.

These pieces of art will stay until eternity Read more about Russian Imperial family at our website www.rbth. asia/15867

abergé Easter Eggs, the most spectacular work ever created by the House of Fabergé for the Russian court, and another 200 pieces of jewellery and adornments worth HK$7.75 billion, are now in Hong Kong. The pieces are on display at the Hong Kong Heritage Museum until April 29 and are expected to attract 150,000 visitors. The House of Fabergé made more than 50 of its famous Easter Eggs from 1885 to 1917 for the Russian royal family. Only 42 of them have survived. The rest disappeared after the October revolution in 1917. Russian art has been under-represented in the Hong Kong art scene. The Fabergé Legacy of Imperial Russia exhibition is the largest display of Russian artefacts in Hong Kong, says Secretary for Home Affairs Tsang Tak-sing. The exhibition is divided into three parts: History of Fabergé, A Glimpse of Imperial Russia and Representation of Beauty. Peter Carl Fabergé, the Russian jeweller best known for his Easter Eggs, served as the imperial supplier for Tsar Alexander III and his son Tsar Nicholas II. The Fabergé eggs are famous because of their sophisticated design and depth of history behind them. As Victor Garanin, director of Moscow’s Fersman Mineralogical Museum, puts it: “They [Fabergé Easter Eggs] remind you that everything is temporary. We are temporary, but these pieces of art will stay until eternity.” Made of gold, sliver, onyx and glass, the Moscow Kremlin Easter Egg imitated the architecture of the Cathedral of the Assumption, the oldest church in the Kremlin. Inside the gold turret-and-wall structure there is a music box that plays two traditional Easter festival hymns composed by AD Kastalsky (1856-1926). Following the same pattern, there is a miniature replica of the Imperial Russian Navy cruiser Pamiat Azova inside The Memory of Azov Easter Egg and a miniature Trans-Siberian train inside The Trans-Siberian Train Easter Egg. Tatiana Muntyan, curator of the Moscow Kremlin Museums, says the spirit of Fabergé Egg is the surprise inside. Aside from Fabergé Easter Eggs, the exhibition in Hong Kong features art works with an oriental touch. The Pine-tree and Wisteria Flowers, for example, were made from gold, silver, emeralds, nephrite, onyx marble and noble serpentine. Though strikingly simple, these Fabergé flowers are very realistic and appear to be inspired by the Japanese art of flower arranging. A Tea and Coffee Service with nine items, produced by the AM Postnikov Factory, is another display with an oriental touch. Showing an image of the Kremlin on the bank of the Moscow River, this traditional handcrafted niello silver tea and

The House of Fabergé made the Easter Eggs for the Russian royal family.

Historic gifts made especially for the imperial court The Fabergé Easter Eggs are the signature works of the jewellery firm House of Fabergé, founded in the Russian Empire in 1842. Made of precious metals or hard stones, the Easter Eggs were created for the imperial Russian court from 1885 to 1917. Most were presented as Easter gifts in accordance with Russian tradition to exchange Easter eggs to mark the most important holiday in the Russian Orthodox calendar. Among the 200 items on display in Hong Kong are four Fabergé Easter Eggs

given to Alexander III and his son Nicholas II, the last two Romanov dynasty tsars. The Memory of Azov Easter Egg, the oldest egg in the exhibition, has a miniature replica of the Imperial Russian Navy cruiser Pamiat Azova inside. It was presented by Alexander III to his wife Maria Feodorovna in 1891 and made to commemorate a trip by his son Nicholas and Grand Duke George to the Russian Far East. They also visited Hong Kong and Japan. Nicholas was injured in an assassination attempt during the

journey. The Trans-Siberian Train Easter Egg was presented by Nicholas II to his wife Alexandra in 1900. There is a miniature Trans-Siberian train inside the egg, which reveals Alexander III’s dream of connecting the European and Asian parts of the country. The TransSiberian railway was almost completed the same year and the egg was made to commemorate the project. The Moscow Kremlin Easter Egg was a gift by Nicholas II to his wife in 1906. The egg was created in memory of Nicholas II’s visit to Moscow with Alexandra

in 1903. The egg was presented three years after the trip because of the Russo-Japanese war (1904-1905). The design inside the egg is a music box that plays two traditional hymns. The unfinished Constellation Tsarevich Easter Egg was the last egg made by the House of Fabergé. It was in three pieces before it was restored. It was intended to commemorate crown prince Alexei, the royal family’s hope for succession. It remained unfinished because of the October revolution in 1917.

16 Tuesday, March 26, 2013

RUSSIA AND GREATER CHINA Gallery leads promotion of nation’s art

The Sedov, the world’s largest sailing ship, moors at Ocean Terminal on its visit to Hong Kong.

Sea icon thrills locals

Brian Yeung

AFP/EASTNEWS

City gives warm welcome to world’s largest sailing ship, writes Brian Yeung

VASILY VASILEVSKY

n an ordinary morning on February 22, the iconic Russian sailing ship Sedov, the world’s largest of its class in operation, arrived in Victoria Harbour and immediately captivated Hongkongers. To celebrate the 1,150th anniversary of Russian statehood in the historic city of Velikey Novgorod, the 92-yearold Russian sailing ship embarked on a 13-month journey around the world. Before visiting Hong Kong, it docked in Manila, Vladivostok and Busan. It will stop at 10 more ports before returning to St Petersburg. The ship moored at Ocean Terminal, where more than 21,000 visitors boarded her in three days. Alan Chu and Mary Lee, who won the My Russian Cruise contest by Russia and Greater China, met Captain Nikolay Zorchenko and spent the night of February 23 on board. They had visited Moscow in 2005 and became enamoured with Russia, which Chu described as a “big country” that combines “good and bad”, “old and modern”. In a meet-and-greet session, Zorchenko offered the couple traditional snacks, along with Russian tea and chocolates. “I am impressed not only by the captain’s hospitality, but also by the fact that he could point out the influence

CITY

Captain Nikolay Zorchenko greets visitors aboard the Sedov. of Chiang Kai-shek in 20th-century Chinese history,” Chu said. “Russia and China had gone through many ups and downs. In the last 20 years, I see they have found a way to show mutual respect and to develop a better future.” In the evening, Chu and myself, as a representative of Russia and Greater China, joined a late night chat with the crew. Because they had no internet access while at sea, my smart phone with an electronic translator and networking apps helped break the ice. Sailor Lyokha Bortnyuk told me how much he enjoyed the world tour, although he obviously wanted to stay in touch with friends and family on VKontakte, the Russian social networking site.

Will Asia overtake North America and Europe in the world economy?

Styopa Grekov, another sailor, had a bite of chocolate, looked at the photograph of his girlfriend on the wall and said, “for the anniversary with my girl in Murmansk”. Grekov studied in the School of Navy at Murmansk University, and this first world tour was part of his study programme. Before going to bed, he showed us pictures of his friends and the home he missed. At 7am on February 24, with two days left in Hong Kong, the crew cleaned the deck. That reminded me of what Zorchenko told the Russian Geographical Society: “The most important ability of a sailor is the ability to live in a team.” Regardless of how much Grekov

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misses his girlfriend or Bortnyuk’s curiosity about posts on social networking sites, their duties are their priority. Standing on the deck of the Sedov, I watched the waves and felt the wind. The Pacific breakers never stopped the Sedov’s aspiration to travel the world. Despite the many sailors and guests on board, the captain was always generous and welcoming. As time goes by, the ship may get old, but the Russian soul, like its survival instinct, hospitable character and spirit of adventure, never gets old. Experienced sailors say the oceans always reveal something unexpected. Slide Show at www.rbth.asia/45349

Russia beyond the headlines Asia

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Growing up in Moscow, Anastassia Katafygiotis started learning her art at the age of five. Her works are in demand from collectors in Europe, Asia and North America, and she has founded Anastassia’s Art House – Russian Art Academy and Red Square Gallery, one of two Russian galleries in Hong Kong. Reflecting her fascination with colours, the paintings on show at the gallery are often vibrant, energetic and kaleidoscopic. The Happy Valley branch hosted an exhibition, Awaiting Spring, featuring young artists Irina Kotova, who embodies the Russian folk-art tradition with a modern touch, and Anna Berezovskava, whose paintings are known for her beautiful fantasies and meticulous details. What makes the gallery unique are the art classes, which put a strong emphasis on the foundations for the learning of traditional Russian art. “Strong foundations should always come first to empower creativity. Academic knowledge and creativity are the prerequisites in forming a personal and unique painting style,” the artist says. Having gone through an eventful journey from unknown student to a prestigious artist, Katafygiotis is particularly enthusiastic about young Russian artists. Every year, she travels across Russia and meets as many young artists as she can. “There are many talented art students in Russia ... only a few of them can become a successful artist,” she says. Asked about her vision for Russian Art Academy and Red Square Gallery, she smiles with passion and enthusiasm: “We are committed to building a community around Russian art,” Katafygiotis says. “We want to empower people who are passionate about art to reach beyond and discover their inner selves and true limitless potential. We are here to offer the people in Hong Kong the ultimate art experience.”

Students learn their creative potential at Anastassia’s Art House.

Copies are available at: Russian Consulate in Hong Kong (2106-2123, 21/F, Sun Hung Kai Centre, 30 Harbour Road, Wanchai) Russian Language Center (701, Arion Commercial Centre 2-12 Queen’s Road West Sheung Wan) Sun Studio (Unit3, GF, Westley Square, 48 Hoi Yuen Rd, KwunTong) Red Square Gallery (11 Yuk Sau Street, Happy Valley ) ATC AVIA (Room 3105, 31/F, Tower 1, Lippo Centre, 89 Queensway Please write to saleshk@rbth.ru if you want to add your company name to this list.