RBTH Thailand issue (April 2014) by Russia Beyond

Thursday, April 3, 2014

Travel

Russia comes under American and European sanctions over absorbing Crimea.

Have you ever heard of Tuva - one of Russiaâ&#x20AC;&#x2122;s Buddhist regions?

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Politics

A special supplement produced and published by Rossiyskaya Gazeta (Russia), which takes sole responsibility for the contents.

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SHOT IN THE ARM FOR RUSSIAN DEFENCE A REPORT ON THE ARMY AND RISING RUSSIAN EXPORTS

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Economy Europe and the United States react strongly to the Crimea crisis

Sanctions: Is the West shooting itself in the foot? Russia faced sanctions from the US and the European Union as well as suspension from the Group of Eight (G-8) world leaders reacted to the crisis over Crimea. NIKOLAI GORSHKOV SPECIAL TO RBTH

The US extended sanctions to include leading Kremlin officials and business figures alleged to have ties to President Vladimir Putin. President Barack Obama signed an executive order imposing visa restrictions and freezing any US assets of 20 more top officials and business people as well as Russia’s 17th-largest bank, Bank Rossiya, described as “the personal bank for senior officials of the Russian Federation”. US officials said that Bank Rossiya would be “frozen out of the dollar” after Obama said the bank provided“material support” for people on the sanctions list. Visa and Mastercard blocked operations for clients of the bank.

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267

billion euros: the trade between the EU and Russia in 2012.

billion euros: the trade between the United States and Russia.

billion dollars a year: the fees Russia pays Ukraine for the transit of Russian gas through Ukrainian territory to Europe.

If our Western partners believe the G-8 format has exhausted itself, let it be

A separate executive order also warned of further US sanctions aimed at key sectors of the Russian economy, including energy, finance, defence and mining. The EU also added 12 more names to its list of people facing sanctions in protest at Russia’s absorption of Crimea after a referendum vote in the peninsula to leave Ukraine in favour of unification with Russia. German Chancellor Angela Merkel said that the EU was ready to impose serious economic sanctions against Russia in the third phase of a planned response if there was any further escalation of Russia’s actions in Ukraine. The seven other G-8 countries – the US, the United Kingdom, Germany, France, Italy, Japan and Canada – declared they would not attend a summit to be hosted by Russia in June. Russia’s Foreign Minister Sergei Lavrov said the G-8 was an informal club from

HOT TOPIC RBTH.COM/UKRAINE

Russia ‘backs a stable Ukraine’ A ddressing the parliament and explaining why Russia welcomes Crimea, Vladimir Putin emphasised that Russia does not want the collapse of Ukraine. NIKOLAI GORSHKOV SPECIAL TO RBTH

“I want you to listen well, dear friends”,he said, sending this message to Ukrainians.“Do not believe those who are trying to scare you with Russia, those who are shouting that other regions will follow Crimea. We do not want the division of Ukraine,”the president said. Many ethnic Russians and Russian-speakers in east Ukraine are not happy with the strong nationalist and anti-Russian overtones in Kiev and the west of the country. The regions of Kharkov, Lugansk and Donetsk were Russian provinces until they were annexed to historic Ukraine by the Bolsheviks in 1918 for political and ideological reasons. This is not to say that there is an overwhelming desire to reunite with Russia. In the 1991 referendum, a majority of eastern Ukrainians voted for independence from the Soviet Union. The industrial east was allowed a degree of autonomy and closer ties with Russia that brought jobs

and money to Kiev. Russian was eventually recognised as an official language in the region alongside Ukrainian. The violent change of guard in Kiev in February breached the status quo. An immediate attempt to repeal the language law and the replacement of homegrown governors and mayors with pro-Western appointees from Kiev led to unrest, a cause for concern in Moscow. President Putin voiced this concern in his address to both houses of the Russian parliament. “Millions of Russian people, Russianspeaking citizens live and will continue to live in Ukraine, and Russia will always defend their interests by political, diplomatic, and legal means. However, primarily, Ukraine itself should be interested that the rights and interests of these people are secured – this is the guarantee for stability of Ukrainian statehood and the territorial integrity of the country,” Putin said. Earlier, he had secured the permission of the parliament to use the Russian military to protect Russians and Russian speakers in Ukraine. And he is unlikely to use this permission, unless blood is spilled there.

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US ambassador Samantha Power and Russian ambassador Vitaly Churkin at the UN.

which nobody could be expelled but that“if our Western partners believe this format has exhausted itself, let it be. We are not clinging to it.” The measures are ostensibly designed to induce Russia to reverse its policies towards Kiev and Crimea, but the jury is out on the effectiveness of sanctions. A J Hughes Hallett and Andries S Brandsma argued in 1983, in their article “How Effective Could Sanctions Against the Soviet Union Be?” that “an across-the-board trade boycott, which follows the popular view of using sanctions as a retaliatory measure, would just reduce the West’s influence on the Soviet economy”.When the Soviet Union dissolved in 1991, their view appeared ill-founded. But research by Hufbauer, Schott and Elliott,“Economic Sanctions Reconsidered”, found the collapse stemmed from internal inefficiencies. A lot has been said about Europe’s dependence on Russian oil and gas, and, of course, it’s a two-way street. Any cut in Europe’s consumption would deplete Moscow’s coffers. But the biggest loser would be Ukraine, which is even more dependent on Russian gas than the EU. Ukraine earns up to US$4 billion in fees for the transit of Russian gas to Europe. Jack Matlock, US ambassador to the USSR from 1987-91, believes sanctions are not in the West’s interests. He wrote in The Washington Post on March 15: “The US and Europe would lose to the extent that a resentful Russia would make it even more difficult to address global and regional issues such as the Iranian nuclear programme, North Korea and the Syrian civil war, to name a few. Russian policy in these areas has not always been all that the US desired, but it has been more helpful than many Americans realise. And encouraging a more obstructive Russia is not in anyone’s interest.”

Policy No plans for eastern Ukraine

Crimeans celebrating the reunion with Russia.

UKRAINE WARNS RUSSIA AGAINST ABSORPTION OF EASTERN LANDS rbth.com/35319

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History The leader of the USSR gave Russia’s Crimea away to Ukraine back in 1954 as a ‘gift’

Throughout its history, Crimea was run by many countries, including the Mongol and Byzantine empires, until it became part of Russia in 1783. ALEKSANDR KOROLKOV SPECIAL TO RBTH

After the 1917 Bolshevik Revolution, the Russian Empire was broken down into independent Soviet republics and autonomies, including Crimea. The peninsula remained part of Russia, which at the time was called the Russian Soviet Federative Socialist Republic (RSFSR). The decision to make Crimea part of Ukraine, which at the time was called the Ukrainian Soviet Socialist Republic and had a formal independence within the Soviet Union, came as a complete surprise to its residents and to the country’s ruling elite at the time. Immediately after he came to power as general secretary in 1953, Nikita Khrushchev, who had for

many years been in charge of the Communist Party of Ukraine, decided to make the symbolic gesture to ensure he enjoyed strong support among the influential Ukrainian establishment. He did it in his typical arbitrary and headstrong manner, coming up with a proposal to hand Crimea to Ukraine as a gift. Dmitry Shepilov, a future Soviet foreign minister who was at that meeting, later wrote: “Khrushchev wanted to present Ukraine with a gift on a golden dish, so that the whole republic knew how generous he was and how he cared about Ukraine’s prosperity.” The reasons given by Khrushchev were repeated almost word for word at a session of the presidium of the Supreme Council of RSFSR on February 5. The arguments came down to three points: Ukraine was closer to Crimea than Russia; the new configuration would make it easier to run the region’s economy; what

NATALIA MIKHAYLENKO

Was Khrushchev’s ‘generous’ act legal?

More than 75 per cent of the Crimean population are Russian and use only the Russian language for their communication.

The status of Sevastopol After Crimea was handed over to Ukraine, Sevastopol continued to receive funding from both Moscow and Kiev. In 1978, Sevastopol be-

came a separate entity within Ukraine, which its residents were and still are bitterly opposed to. In 1994, the city even decided to join Russia.

difference did it make since Ukraine and Russia were parts of the same country? In the 1950s, the people of Crimea did not think of opposing the handover, largely for the reasons outlined above. Since the change was taking place in the same country, nobody no-

ticed any difference. Many had no idea a change had occurred until they started seeing street signs in Ukrainian. However, 60 years on, debate continues about the legality of that handover. The question that raises most concern among lawyers and historians is: Who was authorised to agree, on behalf of the RSFSR, to a change of its territory? The need for a formal agreement was stipulated in Article 16 of the 1937 constitution of the RSFSR and in Article 18 of the 1936 constitution of the USSR. The relevant agreements from both republics came in the form of resolutions of their respective governments. However, Article 33 of the constitution of the RSFSR did not envisage powers to change the borders of the republic, but did grant the power to initiate a referendum. But no referendum was conducted either in Crimea or in the rest of the RSFSR.

Geopolitics Why the Black Sea region is becoming economically and politically significant

Strategic location a key factor in its importance nal conflicts. The region is the home to all four unrecognised or partially recognised states on the former Soviet Union territory: the Dniester Republic, Abkhazia, South Ossetia, and Nagorno-Karabakh. The effect domestic political instability has on the geopolitical situation in the Black Sea region is evident in the case of Ukraine, which is living through its most serious political crisis in a decade.

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coastline, while Russia has only 10.9 per cent.The other new states – Moldova, Armenia, Azerbaijan – though technically not bordering the sea, have historically VLADIMIR KOLOSSOV been connected with the SPECIAL TO RBTH countries of the Black Sea First, the “socialist system” region and undoubtedly collapsed and then new form part of it. players have emerged in the Second, the geopolitical region, namely Georgia and situation in the Black Sea Ukraine, one of Europe’s region has been made more biggest countries. Ukraine complicated by the new and Crimea make up 37.5 players’ internal weakness per cent of the Black Sea and unresolved internatio-

Over the past two decades, the geopolitical situation in the Black Sea region has become considerably more complicated.

Energy transit routes

The Black Sea region is important in terms of transit.

Third, globalisation has expanded the boundaries of the Black Sea region, involving non-regional and non-state players, such as transnational corporations, national movements and refugee communities. As a re-

sult, the Black Sea region is becoming a priority from the point of view of the world economy and politics. Objectively, this process goes back to the discovery of rich oil and gas deposits in the Caspian Sea.

For many countries of the region, transit has become a major factor for development. Competition for investment and construction of pipelines and terminals on one’s territory has made rivalry for leadership among countries of the region more acute. Soon after the breakup of the USSR, Russia’s monopoly over the transit of energy supplies from the Caspian region and Central Asia was over, as those countries have built new routes to China and the Asia-Pacific region.

MILITARY SANCTIONS AGAINST RUSSIA: WHO STANDS TO LOSE MORE?

ON THE REUNIFICATION OF CRIMEA WITH RUSSIA, AND NOT ONLY

LUKASHENKO: CRIMEA IS PART OF RUSSIA

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Education Russia has four main centres for Thai-language studies

IN BRIEF

Forging a linguistic link

Worsening ties with the West Most Russians think that Russia’s relations with the United States and the European Union are going through a bad patch now, sociologists of Levada Centre said following a poll held in 130 cities, towns and villages in 45 Russian regions in March. A total of 34 per cent of Russians have a positive attitude towards the US. However, 56 per cent of respondents share the opposite stance while 10 per cent did not respond.

At first glance one might think that Thai-language studies in Russia is a very niche and perhaps even exotic pursuit. EKATERINA KOLDUNOVA SPECIAL TO RBTH

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New work-visa regulations KIRILL LAGUTKO KIRILL LAGUTKO

Overall, every four to five years Russian universities award some 20 bachelor’s and master’s degrees in Thai, whereas the number of Thai students coming to Russia to study the Russian language and get a degree at Russian universities is scores of times as many. Compared with a constantly growing interest in the Chinese language and a corresponding growth in the opportunity to learn it (language classes, specialised schools, university programmes, Confucius Institutes), pursuing a serious interest in the Thai language in Russia is not that easy. Yet, if one were to look at this issue from another angle, the variety of Thailanguage programmes offered by Russia’s four leading universities presents a far more upbeat picture of Thai studies in Russia. Currently, at the professional level, Thai is taught at the Moscow State Institute of International Relations (MGIMO), at the Institute of Asian and African Studies under Moscow State University, at St Petersburg State University, and at the Far Eastern Federal University. MGIMO was the first Russian university to offer a Thai language programme, with its first Thai group set up in 1954. The author of the first Thai-Russian dictionary, which was published in 1964, Lev Morev, worked there for many years. The dictionary has some 26,000 words and continues to be Russia’s only dictionary of this kind. A Russian-Thai dictionary comparable in content and

Russian universities have partnership programmes with leading Thai universities.

scope was published in Bangkok only in 2011. The 1950s-60s was a period of growing interest in regional studies in the former Soviet Union. At the time, studying Southeast Asian countries was not unlike venturing on a journey into a terra

Every five years Russian universities award some 20 degrees in Thai studies incognita for Soviet scholars. It was then that the foundations of comprehensive academic studies of Thailand were laid at the Institute of Oriental Studies under the Russian Academy of Sciences in Moscow. In 1956, a Thai-language programme was set up in the Institute of Asian and African Studies. The institute, which structurally forms part of Moscow State University, continues the

tradition of Asian studies first established back in the 19th century. In 1961, a Thai philology section was set up at the Oriental Studies Department of St Petersburg State University. It was there that one of Russia’s most prominent scholars in Southeast Asian literature, Yury Osipov, carried out his research. He taught himself Thai, and also the Chinese, Burmese and Laotian languages. Finally, in 1999 the first Thai-language group was launched at the Far Eastern State (now Federal) University. Each of the four universities specialises in a particular aspect of Thai language and regional studies. At MGIMO, the emphasis is on political and current affairs translation, essential for future diplomats. Still, considerable attention is also paid to literary language, including fiction works by Kukrit Pramoj, Siburapha, as well as mod e r n a u t h o r s . M a ny MGIMO graduates work at

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Russian diplomatic missions in Thailand or at the UN Economic and Social Commission for Asia and the Pacific, whose headquarters is in Bangkok. At MGIMO, Thai is taught by Lyudmila Larionova, who is proficient in various aspects of the lan-

Each of the universities focus on a particular aspect of Thai language guage, including the royal vocabulary. During the visit of Her Royal Highness Princess Maha Chakri Sirindhorn to Russia in 1993, it was Lyudmila Larionova who acted as her interpreter from the Russian side. At the Institute of Asian and African Studies, the Thai language forms an integral part of in-depth studies of the history and socio-economic development of Thailand. Graduates of this institute often work at

the Russian Foreign Ministry and in business. The St Petersburg University pays particular attention to historical, linguistic and cultural studies. Some of its graduates pursue academic and teaching careers, others work at the Russian branch of the Tourism Authority of Thailand, in business structures in Russia (the CP Group representative office) and in Thailand. St Petersburg is inexorably connected with the history of friendship between Russian Tsar Nicholas II and King Rama V, who visited that city in 1897 and left his son there to be trained in the Page Corps. The launch of a Thai-language programme inVladivostok came in response to the demands and challenges of the modern day. Without having highly-qualified experts in the Far East, who have in-depth knowledge of Asia-Pacific countries and speak the relevant languages, Russia can hardly hope to expand its cooperation with that region.

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Simplified regulations for the employment of foreign students in Russia came into effect this year. In accordance with amendments to the bill on the Status of Foreign Citizens in the Russian Federation, foreigners with student visas can now obtain work permits without filling out special forms.

Change in exam schedule Starting this year, the Unified State Exam, which is taken by all Russian high school students upon graduation, will be different for each of Russia’s eight time zones. Different versions of the test will be developed in order to prevent students in Vladivostok from relaying information about the test to students in Moscow.

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Public opinion People started the year in a good mood

According to opinion polls, family is what matters most to Russians. They are optimistic about the future and they value good friends and honesty. ANASTASIYA MALTSEVA SPECIAL TO RBTH

On the flip side, Russians believe they must be vigilant and cautious in relations with others. They are also convinced that no-one can protect them from acts of terrorism and they are increasingly wary about the US and Europe. Polls by the All-Russian Public Opinion Research Centre (VTsIOM) reveal that the greatest desire of 93 per cent of those polled was to create a happy “social unit”,while 91 per cent wanted good friends and 90 per cent wanted “to be honest”. Sixty-five per cent of those polled celebrated the new year in an optimistic mood and 56 per cent were hopeful that everything would work out well for the

country in 2014. Only a third of the respondents expected to face problems this year. Year after year, the number of optimists in Russia seems to exceed the number of pessimists. While optimistic, according to figures from the Public Opinion Foundation (FOM), Russians are also

Residents in Moscow and St Petersburg feel safer than in other parts of Russia fairly distrusting. Only onefifth say they trust most people. Three-quarters are convinced of the “need to be cautious in relationships with others”, while 60 per cent are prepared to trust only those close to them. The remainder think they must always be vigilant among their acquaintances. Russians are also not forgiving of those with crimi-

nal records: 61 per cent are opposed to allowing people who have been in prison stand for public office (and women and the elderly are more categorical about this: at 65 per cent and 68 per cent respectively). Russians also do not feel all that safe, with 63 per cent doubting that their authorities can protect them from acts of terrorism (and of that figure, 44 per cent are convinced there is no way to escape terrorism). Residents in Moscow and St Petersburg, however, feel safer than in other parts of Russia. When it comes to foreign policy, the Levada Centre found Russians have become more negative about the US and the European Union. Those who perceive the US as “bad” rose from 23 per cent in 2011 to 37 per cent last year. And the figure went from 14 per cent to 29 per cent in regard to the European Union. Closer neighbours, however, are viewed more posi-

REUTERS

Russia taking an optimistic view

Russians value famiy and honesty, but are increasingly mistrusting of the US and EU.

FACTS ABOUT INTERESTS AND VALUES

Pre-Olypmics, only 62 per cent of Russians said they planned to watch the Games. But the post-Olympics polls showed, that Sochi was watched by around 90 per cent of the population.

tively, and 64 per cent of those polled would like Russia to restore diplomatic relations with Georgia. The Dean of Sociology at Russia’s National Research University Higher School of Economics, Aleksandr Chepurenko, noted that a stark “values gap” can be

Surveys show only 17 per cent of Russians polled were interested in their pension funds (these were primarily affluent people, aged 3544, living in medium to large towns).

seen between Russians born after the collapse of the USSR and the older generation. “Young people have grown up in a values vacuum when there has been no political ideology of the kind to which the state is now returning,” he said.

Russian society has been said to comprise four segments: the Moscow and St Petersburg segment, large industrial cities, rural Russia and the Caucasus – a clan-based culture.

“The young, unlike the older generation, are not nostalgic for the old Soviet machinery of the state. “Young people are not interested in what was good or bad about it. They live in the present and have a good grasp of information technologies.”

Education Overseas candidates must study Russian language before they can take university entrance exams

Students will now need to complete a programme comprising Russian language and literature, as well as mathematics, before taking exams. DARYA LYUBINSKAYA SPECIAL TO RBTH

By the end of 2014, the Russian Education and Science Ministry is due to adopt a new list of requirements for foreigners who want to get a higher education in Russia. Now international

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applicants will have to spend a year learning Russian, mathematics and the key subjects in their chosen fields in order to qualify for entrance exams at the universities of their choice. Foreign applicants will be divided into groups of faculties: the humanities, the natural sciences, medicine; and biology, engineering and economics. Each of these groups will comprise three mandatory and

ITAR-TASS

Foreign students facing new rules

In Russia, 2.5 per cent of tertiary students are foreign.

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one specialist subject. In addition, foreign applicants will need to study generalknowledge subjects, such as Russian language, mathematics or computer science. The list of subjects set will depend on the discipline the applicant will be specialising in. At the end of the foundation programme, applicants will have to pass exams in their mandatory subjects and achieve a pass in optional ones. The Russian language course comprises basic knowledge of phonetics, syntax and punctuation. At

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the end of it, an applicant must have a vocabulary of at least 2,300 words, adequate aural comprehension (a speed of 200–240 words per minute) and be able to read at a speed of 80–100 words per minute. They will have to be able to write an essay or a summary of a topic in their specialist field.“At the moment, there are no clear requirements regarding knowledge of Russian and, as a result, very basic ones are applied,”vice-chancellor of the Plekhanov Russian University of EconomicsViktor Grishin explained.

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Business

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Practice Stereotypes of Russian entrepreneurs have little to do with contemporary realities late into the night. Restaurants can be full of business people doing deals at all times of the day, whereas in London or NewYork the deals are more likely to get done during the day and in the office,” he says. Fentham-Fletcher believes the more Russians trust their business partners, the more likely discussions will take place in more personal and relaxed environments.

A different way to get the deal done Misleading perceptions about Russian business people and negative images about doing business in Russia have abounded since the 1990s.

4. Assertiveness, creativity and drive

ANNA KUCHMA

Common images of Russian business people have been, at worst, of hardened criminals, or, at best, of compromised entrepreneurs, working in an environment where any attempts at running a legitimate business fail because of impenetrable walls of bureaucracy and corruption. While there are elements of truth to these stereotypes, things have changed in Russia since the ’90s, and many foreign entrepreneurs who have gone to Russia to do business have been in no hurry to leave. “It’s not at all like the stereotypes portrayed in Western media,” says Simon Fentham-Fletcher, a British expat in Moscow who works as a portfolio manager at Renaissance Asset Managers. “I originally thought I’d be here for two years,” he said, “and it’s now been seven. Working in Russia has made me a better businessman and problem solver. I’ve upped my game to match what’s here.” There are, of course, tricks of the trade that entrepreneurs looking to set up shop in Russia should know.

1. The importance of trust Fentham-Fletcher says Russians are typically wary at the beginning of business negotiations, and that trust is a critical factor, which once earned with Russians will last a lifetime.

KOMMERSANT

RBTH BUSINESS EDITOR

Russians do have the tendency towards strong emotional expression.

Want to do business in Russia? The pros: 1. Russians are known to be hard workers. 2. Once trust is established, Russians make loyal business partners. 3. The 13-per-cent tax rate is attractive for investors.

4. As a large country, Russia has an army of well-educated and driven young people. 5. Russians have an anythingis-possible mentality. 6. A legacy of the Soviet experience – many Russians are innovative problem-solvers.

2. Russian emotional styles

inexperienced with. Russians also do not smile as much as other business people in negotiations. Russian-born Polina Lagutina, from PricewaterhouseCoopers Melbourne, says on this subject: “Of course, it depends on the person, but [Russian] traditions dictate that you not reveal happiness or pride, in case someone gets jealous and takes the reason for your happiness and pride away.”

Once trust has been established, Russians are not afraid to show emotion during business negotiations. It is not uncommon for them to be physically animated, to pat their business partners on the back or to have fewer boundaries with regard to personal space in general. Bonding Russian style often involves drinking vodka shots – something non-Russians are usually

For each grumpy russian waiter,

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The cons: 1. Winters are brutally cold. 2. Immigration, visas and work permits are thought difficult to get. 3. Red tape is harrowing in general. 4. The traffic jams in Moscow are so bad that Russia’s president and prime minister go to work by helicopter.

These qualities are some of the most distinct traits that stand out in Russians, Fentham-Fletcher says. He says that because there are so many opportunities in Russia, Russians are always on the look out for them, and are often very creative in finding ways to build new businesses. He points out that because of the country’s legacy of bureaucratic barriers, Russians are often innovative and lateral-thinking problem-solvers. That said, he emphasises that the age of a Russian business person is important. “Those over 50 usually have a Soviet style of doing business. This means they are likely risk averse and tend to gloat over their past achievements. Those in their forties set targets, it’s just that the targets get increased with each new deal. I love their insatiability. The desire to keep pushing for more is something that holds Europeans back. Not in Russia, where there is never enough.”

3. Getting straight down to business

5. Giving advice

The more Russians trust their business partner, the less inclined they are to waste time on formalities and exchanges of pleasantries. They get straight to the point, and only then do they resort to small talk. And, as Fentham-Fletcher has learned, business matters are often discussed outside the office. “Business dinners are the norm; the business day starts slightly later but runs

In Russian, the word soviet means“council”or“advice”. Soviet-era Russians have an infuriating tendency towards giving advice, even if what they are advising on is well outside their field of expertise. Lagutina says this tendency can frustrate foreign business people. But, she explains, it should be understood as a way of expressing care and a sign of friendship.

EXPERT

Starting business Pavel Zolotov BUSINESSMAN

he easiest and safest way to start business with a Russian is to get in touch with one of numerous Russian trade agents working in Thailand. How do you know if he or she can be trusted? First, they should have an office and a registered company. Second, a good agent would always provide initial advice and would offer three to five different options. Since an agent is a guarantor of relations between a Thai and a Russian company and this is where he or she get their profit from, they are interested in making sure that business relations get off to a good start. Incidentally, one of the problems that Thai businesspeople often encounter is the delivery of samples and their clearance by the Russian customs. The main problem there is not so much the complexity of the procedure as lack of information and knowledge and the language barrier. To deliver samples, an ATA Carnet is required, which any experienced agent can get in no time. In addition to excellent knowledge of the Russian customs regulations, a good agent should have an extensive client base and be able to offer a selection of suppliers and partners in different Russian regions. One of the possible partners could be the all-Russia public organisation of small- and medium-size businesses, called Opora Rossii. It unites more than 450,000 businesspeople and has branches in 81 Russian regions, as well as representative offices abroad, including in Thailand.

there is a smiling babushka serving pelmeni

there is a glass of kvas

there is a Russia of your choice

RUSSIA BEYOND THE HEADLINES

Business

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ion’s exports and 37 per cent of imports, with overall trade in 2013 rising by 4.3 per cent. Many countries of the region are our major trade partners. In addition to China (second-biggest trade partner in 2013, at 12.3 per cent), these include Japan (in fifth place, with 3.77 per cent), the USA (sixth, with 3.35 per cent), and South Korea (seventh, with 2.88 per cent). In 2013, Thai imports into Customs Union countries went up 4.9 per cent.

QUESTIONS & ANSWERS

The Eurasian integration

PRESS PHOTO

What is goal of the Eurasian integration project now? The Eurasian integration project of Russia, Belarus and Kazakhstan aims at creating a single economic space, which would make it possible to leverage cooperation between individual sectors and boost benefits from established cooperation ties as far as mutual trade is concerned, and enhance opportunities for exporters wishing to work on a single market of some 170 million people, as

PHOTOSHOT/VOSTOCK-PHOTO

In 2014, Russia, Belarus, and Kazakhstan plan to sign a treaty on the Eurasian Economic Union (EEU) leveraging the existing regional integration. It will set the region’s strategy for the next few years. RBTH spoke to Andrey Slepnev (on the photo above), the minister for trade of the Eurasian Economic Commission (EEC).

tiations. The year 2014 should become an important one in the history of Eurasian integration.

far as foreign trade is concerned. The Eurasian Economic Commission, a supranational body for the Customs Union, has the following competences in regulating the bloc’s foreign trade: tariff and non-tariff regulation, customs administration, technical regulation, sanitary, veterinary and phytosanitary measures.The EEC also conducts antidumping and safeguard investigations and, when necessary, applies the relevant trade defence measures. In addition, the EEC’s remit includes establishing trade regimes with third countries and ensuring harmonised approaches at trade nego-

What are the Customs Union’s foreign trade priorities? The Customs Union adheres to a multi-vector policy. We are developing our cooperation with the European Union and the CIS [Commonwealth of Independent States] , building up presence in the Asia-Pacific region.We work both with individual countries in those regions and with blocs as a whole.The Customs Union’s main partners in 2013 were: the EU (52.86 per cent of the Customs Union’s foreign

trade); Apec (26.5 per cent), including China (12.3 per cent) and the USA (3.35 per cent). The Asia-Pacific region is one of the key strategic areas for the Customs Union.With production centres and demand shifting to the AsiaPacific region in recent decades, the development of trade and economic cooperation with the countries of that region is becoming essential for Eurasian countries. Apec [Asia-Pacific Economic Cooperation] accounted for 26.5 per cent of the Customs Union’s trade in 2013.The countries of the region account for some 20 per cent of the Customs Un-

How is cooperation with Apec countries developing? For many years, the ambitious agenda of the WTO Doha Round of negotiations remained unimplemented. Progress in the discussion on how to further facilitate world trade was made only at the WTO ministerial conference in December 2013. It is very important that a network of regional freetrade agreements is developed alongside a search for common rules for all regional associations. We believe that the WTO, Asean and Apec could take the lead in drawing up template agreements on mutual trade that would ensure compatibility between trade legislations used by different regional associations and would thus reduce the risk of emergence of new barriers to trade in goods and services. Focus should be on the technical regulation, and veterinary, sanitary and phytosanitary systems – barriers in these areas are the most cumbersome. And we are ready to actively engage in this work.

IN BRIEF The Okhotsk Sea shelf

PHOTOSHOT/VOSTOCK-PHOTO

On March 17, the UN Commission on the Limits of the Continental Shelf officially recognised Russia’s right to 52,000 square kilometres of continental shelf in the central part of the Sea of Okhotsk. According to exploration findings, 40 per cent of that territory consists of oil and gas reserves. Russia submitted its claim on that territory back in 2001.

Advanced economic growth zones

Trade trends Russian businesspeople hope political situation will settle down soon in Thailand

The Russian ministry for the development of the far east is planning to set up 23 zones of advanced economic growth in the region. The strategy envisages the introduction of less time-consuming administrative procedures and a special tax regime. Prime Minister Dmitry Medvedev has described the development of the region as “a national priority”. The region’s developm e n t w i l l re qu i re considerable funds. To this end, a Far East Development Fund will be set up.

Status quo in trade with Thailand last year

Going East

GLEB FEDOROV RBTH

According to data from the Federal Customs Service, the first place on that list belongs to electric machinery and equipment, US$493 million (down 0.3 per cent), followed by land transport vehicles, $427 million (down 3 per cent); machinery for the nuclear energy sector, $328 million

(up 11 per cent); rubber and goods, $151 million (up 3 per cent); and precious and semi-precious stones, $110 million (up 81 per cent). Russian exports to Thailand in 2013 were quite stable, too. As in 2012, the most exported category of products were oil and petroleum products, $548 million (down nearly 30 per cent); fertilizers, $306 million (up 22 per cent); ferrous metals, $211 million (down nearly 35 per cent); semiprecious stones, $119 mil-

Russia is mainly exporting resources and importing goods from Thailand. The trade potential is huge.

PHOTOSHOT/VOSTOCK-PHOTO

According to Russian-Thai trade statistics for 2013, the top five imported goods from Thailand remained the same as in 2012.

lion; and aluminium and products made from it, $21 million (up nearly 130 per cent). The representative of the Opora Rossii association of small and medium busi-

nesses in Thailand, Pavel Zolotov, points out that the Thai SME sector has far from exhausted the potential of agricultural exports to Russia. “Since a large number of

Interviewed by

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Russians have been to Thailand,Thai businesses should consider exporting prepared components and spices and herbs to go into Thai dishes, soups and salads,” he said. For its part, Russia could offer Thailand not only oil and raw materials, which make up most of the current exports, but also“water treatment products, R&D in energy saving and solar energy”, Zolotov said. On the food market, Russia could supply Kamchatka crabmeat, caviar, and valuable species of fish.

The headquarters of several major Russian state companies may move from Moscow and St Petersburg to the country’s Far East. An order to that effect was issued by Russian Prime Minister Dmitry Medvedev at the end of 2013. Presidential envoy to the Far East Yuri Trutnev has said that a list of these companies has already been compiled. However, so far only one of them has been made public: the first to relocate east might be the Federal Fisheries Agency (Rosrybolovstvo).

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STRATEGIC PERSPECTIVES

OVER 40 PER CENT OF THE LAST YEAR’S $13.2 BN ARMS EXPORT REVENUES WERE GENERATED BY CONTRACTS WITH ASIA-PACIFIC COUNTRIES

In 2013, Russian Rosoboronexport (ROE) had revenues of $13.2 billion, more than 40 per cent of which came from Asia-Pacific countries. GLEB FEDOROV RBTH

“This is slightly above the target figures […]. In 2013 alone, we received and considered 1,902 offers from customers. In the end, 1,202 contracts were signed,”ROE head Anatoly Isaykin told Russian business newspaper Kommersant, summing up last year’s results. According to Isaykin, last year there was demand, in particular, for Su-30 and MiG-29 fighters as well as Su-35 and Yak-130 trainer aircraft. Rosoboronexport accounts for more than 80 per cent of Russian military exports to more than 70 countries of the world. The corporation supplies all types of weapons, from firearms to air defence systems to submarines. Interestingly, in 2013 air force-related exports made up 38.3 per cent of all the signed contracts; navy, 17 per cent; ground troops, 14.2 per cent; and air defence, 26.2 per cent. Russia’s main partners in the Asia-Pacific region are India, China,Vietnam, Malaysia, and Indonesia. So far,

Deep sea divers: Russia’s pioneering submarines rbth.com/35337

Thailand could not be described as Russia’s major partner, but both Moscow and Bangkok have already expressed mutual interest. In November 2013, ahead of the Defence & Security exhibition in Bangkok, ROE expressed a desire to step up military cooperation with Thailand. According to an ROE representative, the fact that Thailand had Russian mul-

NATO’s nickname for Kilo submarines is “Black Hole” for their excellent stealth qualities ti-purpose Mi-17V-5 helicopters and Igla-S portable air defence systems could further open up the country’s market to Russia. In 2008,Thailand ordered three Mi-17V-5 helicopters, which were delivered in 2011. The supply of 36 IglaS portable air defence systems was completed in 2010. “Previously, we did not have a strong position here because Thailand traditionally gave preference to Western countries. But our recent sales show that now Russia, too, has opportunities to expand its presence in this market,”an ROE representative said, refusing

however to elaborate on what specifically Thailand could purchase. However, an ROE press release issued ahead of the Defence & Security exhibition in Bangkok said that Thailand could be interested in Gepard 3.9 guidedmissile frigates (Project 11661), Amur-1650 submarines, Podsolnukh-E radars, Yak-130 trainer aircraft, multi-purpose helicopters as well as BTR-80A armoured personnel carriers. In 2013, Russia signed a series of new contracts with Asia-Pacific countries and effected deliveries under contracts signed earlier. In early 2013, there came reports that Bangladesh was using a $1-billion Russian loan to purchase Russian weapons, in particular 24Yak-130 trainer aircraft. That aircraft is considered to be one of the most advanced models in the world. It can be used to learn how to pilot fifth-generation fighter jets and to simulate practically any warplane. In September 2013, Russia completed the delivery of Su-30MK2 aircraft to Indonesia. Overall, that country’s air force now has 16 Su fighters. The Su-30MK2 delivered in 2013 have entered service with the 11th Squad-

Hero to zero: The rise and fall of the Titan of Soviet reconnaissance rbth.com/35075

PRESS PHOTO

RISING RUSSIAN ARMS EXPORTS TO ASIA-PACIFIC

State of arms export

NUMBERS

$13

billion

helicopters

Su-35

Is the arms exports forecast for 2014-16

Will be exported to the region till 2015

Can be sold to China in 2014

ron of the Indonesian Air Force. On November 16, 2013, Russia handed over the aircraft carrier Vikramaditya to India. The ship had been converted from a Sovietproject aircraft carrier. Vikramaditya will carry 24 Russian-made MiG-29K/ KUB naval fighters and six Ka-27 and Ka-31 helicopters. In early 2014,Vietnam received two of the six Kiloclass non-nuclear submarines (Project 636) under a contract signed in 2009.The value of the contract is estimated at $2 billion. The submarines entered into service with the Vietnamese Navy under the names of Hanoi and Ho Chi

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Minh. The third submarine is due to be delivered in November this year. In addition to Vietnam, China has 10 submarines of this class. Nato’s nickname for Kilo submarines is“Black Hole” for their excellent stealth qualities. In recent years, Russia and Vietnam have signed contracts worth more than $4.5 billion. In addition to submarines, Vietnam is purchasing from Russia Su-30MK2 fighters, Molniya-class guided-missile boats, and Gepard patrol boats. Also in 2014, MiG Corporation proposed an upgrade programme for Malaysia’s 18 MiG-29 aircraft.

Russia is the world’s second-biggest arms exporter, after the United States. According to ROE forecasts, in 2013-16 export value will remain

Unlike many other exporting countries, Russia is not afraid of transferring its newest technologies to partners, even though many of these technologies are often superior to weapons and hardware used by the Russian armed forces. Russian Yak-130 trainer aircraft at the Defence & Security exhibition (1). The Kilo submatine, exported to Vietnam (2) and (3).

SCIENCE AND TECH

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VEDOMOSTI

One theory doing the rounds in the 2000s was that Russian-Chinese military-technical cooperation was going downhill and would inevitably cease altogether. Now, however, it is obvious that the situation has improved, with Russian military exports to China picking up again.The volume of exports has al-

Vietnam to get two more frigates

he arrival of the Su-27 and Su-30 in the Asia-Pacific has increased the vulnerability of the United States’ nuclear powered aircraft carriers. The American military has wargamed situations where these massive CVNs go into battle against Sukhois armed with anti-ship cruise missiles, and the missiles have won every single time. In the past these nuclear powered carriers, protected by a ring of support ships and AWAC aircraft, and of course their own fighter jets, were able to sail into any troublespot without fear.

That’s history. Today, any American carrier that attempts to come close to, say, China’s shores would be targeted by Flankers based on land, and firing their missiles from safe distances. Basically, the Su-27 and Su-30 may have ended the era of American gunboat diplomacy. There is a reason why the India describes the Su-30 MKIs as its “Air Dominance Fighter”. The aircraft is a generation ahead of any other aircraft – bar the stealth types – in the skies. The MKI version is actually superior to the Russian Air Force’s own Flankers, which is a result of Russia’s policy to provide its trusted customers with export versions that are half a generation ahead of its own base models.

Why Russia should be strong © RIA NOVOSTI

Ajay Kamalakaran JOUNALIST

Russia-China arms trade on rise

VASILY KASHIN

Sukhois shift the balance in Asia-Pacific JOUNALIST

Warming ties between Russia and China are reviving the arms trade between the two countries.

IN BRIEF

Rakesh Krishnan Simha

stable at about $13 billion. One of the company’s new strategy is to expand the geography of its supplies and list of services.

BEYOND THE FUTURE

ready reached the level of the 1990s and the early 2000s, and may yet beat that record. However, one difference is how insignificant the arms trade is in the overall structure of cooperation between the two countries. In the 1990s, military-technical cooperation was one of the pillars of mutual trade, and served as the basis for their bilateral partnership. After Russian arms exporters had broken into new markets in the 2000s, China’s share in the total

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volume of exported Russian military equipment decreased noticeably. According to published data, Russian arms exports to China peaked during the early years of the last decade. China is still a major buyer of Russian weapons. But the growing domestic demand, new export markets and diversification into civilian markets has lessened arms manufacturers’ dependence on Chinese contracts, while providing Moscow with a significant degree of freedom in negotiating future contracts.

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hat the situation in Ukraine has proved beyond the shadow of a doubt is that America and its NATO allies can no longer act like global bullies. The recent events have led to media frenzy and sharp statements from Western politicians drumming up rhetoric. I don’t want to even dignify what a former US Secretary of State said with a response. The fact is that Russian troops have shown a tremendous degree of professionalism and the operation in the Crimea has been bloodless. Not a single shot was fired over the course of the events and there has been

a sense of calmness in the peninsula. Russia does not want a destabilised Ukraine, as it against Moscow’s best interests, but American interference in the former Soviet republic is part of a long-drawn out policy to weaken its Cold War rival.With Ukraine, the American government is clearly testing the waters to see how far it can provoke Russia. The world needs peace, development and a protected natural environment. World leaders bear the responsibility of working for all of the above. But as long as the West tries to extend American hegemony across the world, the prospects of world peace look very dim. The re-emergence of Russia as a military power will go a long way in ensuring that the world is a much less violent place.

MiG-31: A fighter ahead of its time rbth.com/34687

Russia’s Zelenodolsk Shipyard will build and hand over to Vietnam two Gepard 3.9 frigates by the end of 2017. The frigates are intended for economic zone patrol, search-and-rescue operations, anti-piracy and anti-smuggling activities. The two frigates are now in the final phase of construction, with hulls being completed and life support systems assembled. Over the coming months, communication and navigation systems as well as electronic and other equipment will be installed. Following the installation of technical positioning the engineers will begin trial runs in the Baltic Sea, so that the frigates could be ready for delivery in early 2017. Vietnam received two first Gepard-class frigates from Russia in 2011.

T-50 going into official trials

ITAR-TASS

Sukhoi Company has handed over its first fifthgeneration T-50 fighter to the Russian Air Force for official trials. In 2015, the new aircraft is expected to be delivered to pilot training units. By the end of the decade, up to 60 T-50s will come into service with the Russian Air Force. Like the US F-35 aircraft, the T-50 is aimed for the foreign market, too. A fifth-generation fighter aircraft on the basis of the T-50 is already being developed with India.

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Weapons Top three new acquisitions of the Russian armed forces in 2013

IN BRIEF

Su-34, Iskander-M and new subs

Potential penalties Penalties for a possible breach of the 2011 contract for the supply to Russia of four Mistral-class helicopter carriers may amount to 1.2 billion euros, Deputy Prime Minister Dmitry Rogozin has said. Earlier French Foreign Minister announced that France was considering terminating the contact as a sanction against Russia for making Crimea part of the Russian Federation. However, judging by a statement from the French defence minister no decision has been taken yet.

In 2013, Russian troops began receiving not just single pieces of equipment, as before, but enough for entire divisions and regiments. DMITRIY LITOVKIN

The share of modern weapons in the strategic nuclear forces, in 2013, reached 45 per cent, 62 per cent in aerospace defence, 42 per cent, in the air force, 52 per cent in the navy, and 21 per cent in the land forces. So what is the Russian military buying? The most important symbol of modernising the Russian air force in 2013 was Sukhoi’s first shipment of the new Sukhoi Su-34 bombers. This aircraft is considered one of the most unique advances in armament made by the Russian air force in recent years. The Su-34 is a hybrid fighter and bomber. With a take-off weight of almost 50 tons, it can perform aerobatics, act as a fighter-interceptor, and carry out precision bombing of small targets, all with equal ease. The first two bombers cost the air force Bt1.6 billion. The bomber can carry 8 tons of precision-guided bombs and missiles at a

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The Russian air force signed a deal to acquire 32 Su-34 bombers in 2008 and another contract in 2012 to get 92 more till 2020. In 2013, the first contract was accomplished.

Su-34 can perform aerobatics, act as a fighter-interceptor, and carry out precision bombing time. It can operate in all weather conditions regardless of the time of day. The reinforced protection of the cockpit and vital components of the aircraft allows the Su-34 to withstand damage more severe than other aircraft in its class can handle. The fact that the aircraft was built to be

deployed in Eastern Europe and that it had, in fact, deployed the Iskander in the Kaliningrad region. The missiles are concealed in a four-axle truck, and have a range of more than 500km and a flight speed of 2,000 metres per second. Each of the missiles can hold a nuclear, conventional, or cluster warhead. Last year, the Russian navy acquired three nextgeneration nuclear submarines all at once. Two of them are Boreiclass ballistic missile submarines of Project 955

easily updated ensures a lifespan of 30-35 years. In total, the military plans to acquire at least 120 of these planes in the near future. In 2013, the Russian army received the first two complete missile brigades of the Iskander-M tactical system. Prior to this, only separate divisions of the tactical system had been introduced into combat duty. In addition, the Russian Defence ministry reported with undisguised pride that it had taken the necessary steps to counter threats from the US missile defence system

equipped with Bulava strategic missiles (Yury Dolgorukiy and Alexander Nevsky). The third is the Severodvinsk, a Project 885 Yasen-class submarine.This sub will replace several current classes of armed submarines in the fleet. Experts consider Yasenclass subs to be a real innovation in underwater shipbuilding. Their noise profile is not only superior to Akula-project submarines, but they are also quieter than the latest American nuclear submarines, the Seawolf class.

Air Force Russia is now receiving foreign enquiries about the Yak-130 “from everywhere”

Yak-130 can get out of a spin and cruise safely

JNIKOLAI NOVICHKOV, LYUBOV MILOVANOVA VPK

This year the Borisoglebsk Higher Military Aviation School for Pilots saw the graduation of its first group of pilots who had trained on the new Russian trainer aircraft, the Yak-130. The cadets have proven that the aircraft is easy to operate and maintain and easy to

learn. “The designers and engineers did their best and made the aircraft a proper ‘school desk’. It is very easy to fly, it forgives you many mistakes. Things have really moved on since the time we were cadets. Back then, if you lost speed, you immediately went into a spin, which it was very difficult to get out of,” recalls Russian Air Force commander Lt-Gen Viktor Bondarev. TheYak-130 is a completely different story. It is very hard to put it into a spin. However, even if, for wha-

tever reason, it goes into a spin, all the pilot has to do is to let go of the yoke and the aircraft will get out of the spin itself and continue safe cruising. International experts at the La Bourget air show have recognised the Russian Yak-130 as the best model of a trainer aircraft. It has specially designed and manufactured advanced navigation, flight control and combat avionics systems integrated into a single digital airborne avionics system. The latter

PRESS PHOTO

In early 2014, an aerobatics team flyingYak-130 aircraft began training at a training base in the town of Borisoglebsk. The group consists of nine pilots: six in the core team and three in the reserve. The pilots are being trained by aces from the Swifts (Rus: Strizhi) aerobatics team flying MiG-29s. The new aerobatics group will become Russia’s fourth, in addition to the Russian Falcons, the Swifts and the Russian Knights.

Defence centre PRESS PHOTO

The new trainer aircraft Yak-130 ensures readiness of Russian Air Force pilots and enjoys stable demand in the market.

Aerobatics on Yak-130

Algeria was the first foreign country to purchase Yak-130.

allows theYak-130 to simulate flight control and navigation equipment as well as the main flight characteristics and weapons system handling of the newest fourth- and fifth-generation fighters. In addition to the training role, theYak-130 is capable of performing light attack duties. The Yak-130 is easy in maintenance, can

be used in adverse weather conditions and can land in an unprepared airfield. All these advantages of the trainer aircraft have been fully appreciated, not just by the Russian Air Force. Interest in the Yak-130 has been seen in Latin America, Southeast Asia, the Asia-Pacific region, and CIS countries.

The Russian Defence Ministry has launched the construction of a national centre for defence management. Its main purpose is coordination between the government and the armed forces. The centre will have a single system of operating the whole of Russia’s multi-level military structure. It will take decisions on defence, deployment of troops and ensuring their everyday operation. It is expected to be built by the end of the year.

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Person The Russian defence minister made series of critical decisions

Much to salute Shoigu for in his first year at the helm

RUSSIAN ARMY IN PICTURES... r b t h .c o m

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Before being nominated as defence minister in the late 2012, Sergey Shoigu was the minister of emergency situations since 1991 EKATERINA TURISHEVA RBTH

r b t h .c o m

ITAR-TASS

Analysts and military experts believe that last year was especially symbolic for the Russian army development because of the decisions made on implementation of a complete vital cycle for military equipment, the return of military property sold illegally, improvement in the quality of troop training and development of military science and education. Last November marked one year from the date whenVladimir Putin removed Anatoliy Serdyukov as minister of defence and replaced him with Sergey Shoigu. The most popular and recognisable minister in Russia (based on survey results), Shoigu was assigned the job after serving for a short while as acting governor of Moscow Region. Before that he had been the head of the ministry of emergency situations for many years. Sergey Shoigu was assigned to his new position against a background of the reverberating scandal surrounding the company Oboronservice.The key players in this scandal were persons close to the former defence minister and one of the first decisions faced by Shoigu after taking up the post was to recover property sites, previously sold in breach of the law, back to the ministry of defence. Experts believe that Shoigu is consistent in his advocacy of liberating the ministry of defence from its non-typical economic functions, including pricing. “The initiatives of the heads of the ministry of defence regarding de-commercialisation of the army are, first and foremost, targeted against corruption,” believes Pavel Verkhnyatskiy, lead analyst of the Political Information Centre. The introduction of a sys-

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Sergey Shoigu, left, is the most popular minister in Russia, according to opinion polls.

tem of total vital cycle contracts for the purchase of weapons and military equipment is another achievement of Sergey Shoigu. This system implies that the enterprise that has sold a certain item to the armed forces, will render continuous support to such a project, from the beginning of construction and till disposal. In accordance with the department’s plans, practically all enterprises of Military & Industrial Complex must provide a total life cycle of manufactured weapons and military equipment over the next two to three years.

FACTS

The Crimean army Russia recognises the military ranks and education of the Ukrainian officers based in Crimea willing to transfer to serve in the Russian Armed Forces. “This will allow for the taking of people into service, at least on a contract basis, until all other formalities are resolved, including those related to obtaining citizenship,” Russian President Vladimir Putin said.

NOTES FROM THE EXPERTS

Russian fleet in Crimea Viktor Litovkin MILITARY EXPERT

What does the Russian Black Sea Fleet consist of? Besides the fleet headquarters in Sevastopol, there are: the 68th Coastal Defense Brigade; Navy Arsenal No 17; the 810th Naval Infantry Brigade; the 247th Independent Submarine Division; the 854th Coastal Missile Regiment; a separate marine engineering

battalion, a communications hub; the 30th Surface Ship Division, consisting of the guided missile cruiser Moskva, guided missile hovercrafts Bora and Samum, a brigade of auxiliary ships, a brigade of assault landing ships, a brigade of missile boats; a naval air assault squadron, a composite air regiment; a radio electronic support brigade; arsenals, depots, repair plants and training schools for junior officers.

With the arrival of Sergey Shoigu as defence minister, the department has reinstated the practice of regular inspections of the Russian army. These inspections help to evaluate objectively the level of military readiness of the armed forces and to set out the best ways to address current problems. The first unannounced inspection in the last 20 years was conducted at the central military district midway through February this year, which was followed by a number of other, similar events of various levels in other military districts. Experts suppose that the unannounced inspections of the Russian army help not only to understand the actual military readiness of the armed forces and test the close cooperation between all their elements but, in addition, they teach the military service personnel of all levels the ability to react instantly to any potential threat. “The cornerstone of the armed forces is their readiness to enter battle at any moment. More has been done over the last year in this respect than in the preceding decades,” asserted Victor Zavarzin, first deputy head of the State Duma Defence Committee.

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EUROPE’S REAL MELTING POT Pavel Kuzenkov HISTORIAN

U ALEXEY IORSH

THE 19TH-CENTURY BEHAVIOUR FEDOR LUKYANOV POLITOLOGIST

hen it comes to the crisis in Ukraine, the discussion on the principles of the world order has entered a new phase. United States Secretary of State John Kerry reproached Russia for its “19th-century behaviour.” After all, international issues are now resolved differently. We can grant that. But what exactly does “19th-century behaviour” entail? In a legal sense, the 19th century started with theVienna Congress of 18141815. This session of negotiations that included monarchs (Russian Emperor Alexander I, Franz I of Austria and the most eminent diplomats and states-

men of their time – Metternich, Talleyrand, the Duke of Wellington and others) set limits on the eve of the Napoleonic Wars. TheVienna System collapsed in August 1914, when conflicts among the European grandees, their colonial appetites and a splash of chauvinism sparked World War I. At this juncture, the“good old Europe”,along with the golden age of classical diplomacy, came to an end. Two hundred years after the Vienna Congress and 100 years after the start of World War I, it turns out that what is lacking now is precisely what distinguished the 19th century. After the cataclysms of the first half of the last century, and the Cold War of its second half, a period of freedom – in every sense of the word – set in: freedom

THIS SPECIAL REPORT IS PRODUCED AND PUBLISHED BY ROSSIYSKAYA GAZETA (RUSSIA), WHICH TAKES SOLE RESPONSIBILITY FOR THE CONTENTS. INTERNET ADDRESS WWW.RBTH.COM EMAIL EDITORTH@RBTH.COM TEL +7 (495) 775 3114 FAX +7 (495) 988 9213 ADDRESS 24 PRAVDY STR, BLDG 4, FLOOR 12, MOSCOW, RUSSIA, 125 993 EVGENY ABOV PUBLISHER PAVEL GOLUB EDITOR-IN-CHIEF KONSTANTIN FETS EXECUTIVE EDITOR GLEB FEDOROV EDITOR KUMAR KRISHNAN ASSOCIATE EDITOR ANDREY SHIMARSKIY ART DIRECTOR ANDREY ZAITSEV HEAD OF PHOTO DEPT MILLA DOMOGATSKAYA HEAD OF PRE-PRINT DEPT MARIA OSHEPKOVA LAYOUT THIS ISSUE WAS SIGNED INTO PRINT ON MARCH 31, 2014. E-PAPER IS AVAILABLE AT WWW.RBTH.COM

as the ideological understanding that is central to the American worldview, and freedom from the international laws and restrictions of the past. At first, it seemed that this second type of freedom

The Ukrainian crisis is a manifestation of a chaos that has been reigning on the world stage spread only to the winner in the conflict: the United States and the West. But it gradually became clear that freedom is universal. With the erosion of principles, and then the decency to act according to one’s own discretion, the world stage became a free for all.

The Ukrainian crisis is a manifestation of a chaos that has been reigning on the world stage, but it is striking and symptomatic. It is more indicative that what is needed is precisely a genuine professional diplomacy in the spirit of the 19th century, a diplomacy that is familiar from textbooks but whose actual practice has been virtually forgotten. The flaw of the modern world is a total imbalance in everything: opportunities, interests, ideas of one another. On the contrary“19th-century behaviour” is useful in trying to find diplomatic solutions without the ideological exaltation inherited from the 20th century, and on the basis of sober calculation and with an adherence to gentlemanly etiquette in relations with opponents. The world needs a global concert of nations, and their directors need a classical score, albeit in a modern orchestration. The writer is head of The Council on Foreign and Defense Policy. First published in Russian at RG.ru.

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nder the Romanovs, Russia played the same role in Eastern Europe as ancient Rome did in the Mediterranean and the United States in the Americas. It was the melting pot of Europe, bringing together Christians, Muslims and indigenous peoples. Over the 300 years of its reign, the Romanov dynasty transformed Russia from a medieval backwater into a European power. At the beginning of the 17th century, Russia was more Asian than European. Although Tsar Alexei Mikhailovich began the process, it was his son, Peter the Great, who first opened the “window to Europe”. But the converse was no less important - that Europe gained access to Russia. Our country would not have achieved the status of empire had hundreds of thousands of Europeans not poured into the country. Europe’s elite came en masse: scientists, officials, musicians and engineers. I’m going to say something subversive: a Russian nation has never really existed in Russia. Those who came and worked for the benefit of the country, and adopted Russian values – they were Russian. This is a very important point. Russia is fundamentally different from many countries, with the exception of the United States, of course. It’s possible to speak of a multinational empire, but it would be more correct to use the words“multicultur-

al” or “multi-ethnic”. It’s a pure melting pot, and the melting pot is also the basis of American society. Nonetheless, the melting pot came earlier in Russia. It was the continuation of a tradition founded by the Romans, who created their empire along the same lines. In America it was much easier to create a multi-ethnic society, as it was a no-man’s land. In such an environment there were no serious conflicts other than those with the Native Americans, who were quickly sidelined. But Russia was a country that many called home, with local and national cultures and tribes who fought among themselves. A particular challenge was the integration of the Muslim population into a Christian state, which was unique in world history. In the Roman Empire, Byzantium was not integrated despite hopes to the contrary. Such an attempt failed in Spain, and the Muslims were expelled. Only in Russia was integration successf u l , a l t h o u g h i t wa s achieved with great difficulty. The end of the empire was frightening, but the reasons were neither ethnic nor religious. In 1991 Russia could have disintegrated into separate states, as did the Soviet Union, but this did not happen. Ethnic and religious differences were an order of magnitude less significant than social and civilizational issues. The writer is historian and an associate professor at the Moscow State University.

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RUSSIA BEYOND THE HEADLINES

Opinion

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THE UKRAINE STORY THEY MISSED W George Krasnow SCHOLAR

KONSTANTIN MALER

s US-Russia tensions mount over Ukraine and the Crimea, it is important to realise that these tensions largely result from the media spin on real and imagined conflicts among the Ukrainian people. The advantage of the Western media over Russian PresidentVladimir Putin is huge, because Putin’s influence is confined mostly to within the borders of Russia. The first and most important spin put on the situation was to portray the situation in Ukraine as a conflict between Ukraine and Russia, not among culturally, ethnically, linguistically and religiously diverse people in Ukraine. For several weeks I watched on a wide range of TV channels – from Russian channels to EuroNews – how an originally peaceful protest in the Maidan in Kiev gradually turned more and more violent as rocks and Molotov cocktails were thrown at unarmed and constantly retreating police.

The more concessions Ukraine President Viktor Yanukovich made, including the suggestion to have ArseniyYatsenyuk as prime minister, the more violent the Maidan became. Finally, even after the compromise accord between the Maidan coalition andYanukovich was signed – in the presence of the foreign ministers of France, Germany and Poland and Russia’s human rights ombudsman Vladimir Lukin – the violence did not abate, as one would have expected. Instead, the situation got worse. Yanukovich accepted virtually all the demands of the Maidan, including a return to the 2004 Constitution and the calling of presidential elections before his term expired. The protesters in the Maidan had every reason to celebrate, instead the area became very violent and dozens were killed. This turn of events was very difficult to understand, until the conversation between the EU Fore i g n A ff a i r s H i g h Representative Catherine Ashton and Estonian For-

This division was felt most painfully by the Russian ethnic majority in Crimea

Thus the opposition, instead of trying to unify this nation already divided by ethnic and religious loyalties, drove a wedge between western Ukraine, which is mostly Catholic or Eastern Catholic and southern and eastern Ukraine, which is mostly Orthodox. Some of these Ukrainians in the south

eign Minister Urmas Paet surfaced. The conversation cited opposition figure Olga Bogomolets saying that the leaders of the Maidan were not interested in discovering the source of the snipers shooting in the Maidan because the violence helped the opposition movement.

and east are ethnic Russians, but most of them identify themselves as Ukrainians who regard Russian as their native language. This division was felt most painfully by the Russian ethnic majority in Crimea. Because they were afraid of their autonomous status under a new government headed by Maidan leaders, they made the decision to hold the referendum that gave them autonomy as part of Russia. Had the opposition honoured the February 21 agreement and retained Yanukovich as president until the May 25 special election, Crimea would not have revolted. The grab for power in Kiev triggered regional efforts to secure the safety and well-being of their electorate. If outside powers have a role to play, it must be as a mediator and peace-maker between these divided segments of the Ukrainian nation. W George Krasnow, based in Washington, runs the Russian-American Goodwill Association promoting better relations between the two countries.

Vladimir Kolosov PROFESSOR

ptimism about Russia’s ability to survive Western sanctions with little effect may be a bit premature. It is true that broad punitive sanctions against a country that is deeply integrated into the world economy have no precedent. However, the challenge that Russia has thrown to the geopolitical order that

has existed since the break-up of the Soviet Union is a critical one, and is certain to become a factor in galvanising the West. In all likelihood, Russia will not start feeling the consequences of the sanctions right away. The most serious measures will take a while and will cost the West a lot. As they did in the 1980s, the United States and its allies will seek to lower global prices for oil, gas and other commodities. This will be in line with

current trends in developed economies, which are seeking to reduced reliance on fossil fuels and diversify energy supplies. The EU will speed up its efforts to find alternative oil and gas suppliers and build terminals for receiving LNG tankers from the United States, North Africa and other regions. Additionally, non-energy-related spheres, such as arms exports and science and technology cooperation (including the construction

of foreign nuclear power plants), will also be affected. Russia should expect Western governments to start putting pressure on their existing and potential Russian partners in these fields. The same is true for large investment projects of leading Western companies: they may have to be abandoned for a long time. Changes in visa policy – both bans on officials and changes that will make the procedures far more com-

KONSTANTIN MALER

RUSSIA SHOULD BE PREPARED FOR ALL THESE CONSEQUENCES

plicated – would affect not only officials but ordinary Russians, too. Finally, switching Russia’s focus to Asia will be a difficult and costly thing to pull off. In order to considerably expand oil and gas exports to China and other

Asia-Pacific countries, infrastructure must be developed, which would require enormous investment. Vladimir Kolosov is head of the Geopolitical Studies Center at the Russian Academy of Sciences’.

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Travel

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Siberia The Republic of Tuva - cituated on the border with Mongolia - is one of the Buddhist regions of Russia

A guide to the remote Buddhist Republic Getting there The best option is to take the train from Moscow to Abakan (76 hours), with one-way fares varying from about Bt5,100 to Bt12,500. Two-way flights from Moscow to Kyzyl via Novosibirsk or Irkutsk will cost around Bt45,000. ALAMY/LEGION MEDIA

The remote Russian Buddhist region of Tuva offers vibrant landscapes, eccentric traditions and the natural beauty of south Siberia. DAN POTOTSKY RBTH

The population of the Tuva Republic is 300,000, the majority of whom live in the capital, Kyzyl. The rest are scattered randomly around its territory. A journey from one population centre to another can take up to five hours – this is an uninhabited region comprised almost completely of nature reserves, the majority of which don’t even have roads. Stock up with plenty of food and water because its unlikely you will find any

place to purchase drinking water or even a sandwich on the road. So, if you do find an opportunity you would be wise to take it. The same philosophy should be applied to cash points in the Taiga. About 90 per cent of the shops found in the republic are simply known as“Shashlyk”. Here you can get a big meal for US$30 in 20 minutes. For the first time it seems that civilisation’s many advantages are just not enough amid the wond e r s o f l o c a l natural beauty. Mobile phones are available only in very specific locations. At this point the hustle and bustle of the big city feels like

water therefore nature provides all conveniences and a Banya (steam bath) takes the place of washing facilities. Almost every house in the village has its own Banya, but there are communal ones. In the first location we went to, the Banya was communal and mixed, so men and women would share. A towel helped to maintain decency. Tuva was the very last of the republics to come under the Soviet Union. Taiwan still lays claim to Tuvan territory and Tuva remains in a state of war with Germany. The history of Tuva is meandering and complicated, so Tuvans relate to everyone around them in a unique way. What do they think of Taiwan’s claim on Tuvan te-

a distant memory. There are so many nature reserves in Tuva that they are separated from the rest of the landscape only by signposts, which are hiden by the dense vegetation in some cases. The weather in Tuva is terribly unpredictable. In a few hours it can climb to 35 degrees Celsius and fall to 5 degrees Celsius. It can be pouring with rain and then suddenly the sun appears. No sooner have you donned a coat to stop yourself from freezing, than you have to take it off to stop yourself from roasting. It rained for the whole three days we were in Tuva, and the sun rarely made an appearance. In small villages or in camps there is no running

ALAMY/LEGION MEDIA

Buddhuism first came to Tuva in the IX century from the Uyghurs.

Top 12 spectacular Reasons to visit Russia

FACTS ABOUT TUVA

Where to stay As the majority of tourist companies in Tuva do not have an English-language site first and foremost, it may be best to use the services of a Moscow or St Petersburg tour operator. Negotiations with the local non-English speaking population may be very challenging.

rritory, we asked. A representative of the local administration told us: ‘We don’t even understand it ourselves why they have become obsessed with us. Well, let them lay claim, what is it to us?’. The situation is also complex when it comes to religion for Tuvans. Russia’s chief shaman lives here to this day, who in his time read fortunes during the election of the first President of Russia Boris Yeltsin. Buddhism is Lamaist in

The Republic of Tuva is situated in the far south of Siberia. Majority of the population are Tuvans. Its capital city, Kyzyl, is located near the geographic “centre of Asia”.

Tuva.The Dalai Lama came to Kyzyl once in 1992 and set up a “holy temple” in the centre of the town square.There is a statue of Lenin on that same square – this juxtaposition does not cause anyone any confusion. Over the shoulder of Lenin’s statue, a peak in the mountain range can be seen, on which a holy inscription is set out in stones in the Tibetan language. This marks the spot where in 2015 a 20-metre statue of the Buddha, the biggest in Russia, will be erected. On the road, you often encounter trees with branches that have been embellished with multi-coloured ribbons – these are holy places. The idea is that anyone looking for safe passage should hang a ribbon on the tree. These rudiments of pagan cults can be encountered everywhere: Places of power, with spears driven into them on the tops of the hills, which women are forbidden to climb and small pagodas in wooden Buddhist temples. You should scatter small change all around “for luck”. It is best to stock up with small change as there are a great many such places, both on the steppe and in the mountains. Tuva is nothing like the tourist destinations in Russia.Tuvans are free from corruption of outside influences and are indifferent and unassuming in the nicest possible way. It seems that the only thing that is truly protecting them is the cost of the cheapest one-way airline ticket there from Moscow – around Bt20,000.

There are only about 300,000 people living in Tuva, which puts it on 77th place in terms of population among the other 83 federal subjects of the Russian Federation.

Mountains cover over 80 per cent of the territory. There are also more than 8,000 rivers, including the upper course of the Yenisei River, the 5th-longest river in the world.

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RUSSIA BEYOND THE HEADLINES

History

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Sport Russian tsars favorite hobbies

GEORGY MANAEV RBTH

What can be said about a country whose leader is a master in judo. Russian President Vladimir Putin’s public image is one of a strong and competitive individual, and his sport of choice complements this image. But for Russian tsars, public image was far less important, since they were so seldom seen by the public. The tsars and empresses did, however, have a real passion for competition, fitness and joy in the various games and sports of their choice.

Ivan the Terrible’s last chess game Before Peter the Great, having an athletic physique wasn’t considered a virtue in Russia. In the 17th century, every nobleman, including the tsar, was ideally a little overweight – evidence of his material abundance and wealth. Probably the only contemporary game that medieval Russian sovereigns played was chess, which was a favourite of the first Russian Tsar, Ivan the Terrible. An English diplomat, Jerome Horsey, witnessed Ivan’s last chess game. On

the evening of the last day of his life, Ivan sat in bed for a game of chess with one of his boyars. Before the game started, the tsar himself managed to set up all his pieces on the board, except for the king, which Ivan couldn’t place on the board, and needed help. Minutes later, Ivan fainted and died. Chess was also popular among the first Romanovs. Tsar Alexis, the father of Peter the Great, ordered numerous beautifully crafted chess boards from abroad, so his son could learn the game in his youth. And later it was Peter who really introduced sport as a means of entertainment and exercise to the Russian royal family.

Peter's passion for pool Peter had been familiar with the European way of life since his youth when he frequented Moscow’s German Quarter. In German taverns, Peter learned to play the game of drucktafel – a hybrid of pool and bowling. Later, when he was in the Netherlands, he received a billiards table as a gift from the Dutch king. Peter installed the table in his waiting room to keep his guests busy – and, following the tsar’s example, many noblemen started playing billiards. In 1718, a tsar’s decree established billiards as a compulsory game for the nobility’s evening parties

Billiards were brought to Russia during the reign of Peter the Great (1682-1725)

(meanwhile, playing cards was banned). Peter’s daughter, Elizabeth, who ruled Russia for 20 years, was very concerned about her appearance, so to stay young-looking, she practised rowing and went horse-riding. The next empress, Catherine the Great, also engaged in horse-riding to some extent, but it was her grandson, Nicholas I, who grew up to be a true athlete.

The cycling tsars Emperor Nicholas I, who was 6ft 2in tall and exceptionally strong, used to take part in chivalrous competitions modelled on medieval knight tournaments. During these, Nicholas wore armour so heavy that, on one occasion, his nose started bleeding because of high blood pressure and the overall tension. Nicholas understood the importance of sport for the young, so he organised gymnastics areas for his children on the seashore of his estate at Peterhof, near St Petersburg. Nicholas’s elder son, the next emperor Alexander II, was the first of the royals to take up cycling, and he got his first bicycle in Paris in 1867. For a 50-year-old tsar this was a mere toy, but his teenage sons, princes

Stalin's preferred pastime

From chess and billiards to cycling and tennis, the Russian imperial family had a genuine passion for sport and games, going as far back as Ivan the Terrible.

PRESS PHOTO

Royal family's sporting life gives glimpse of healthy competition

Billiards, skittles and gorodki (a Russian version of bowling) were the games Joseph Stalin enjoyed, according to his daughter, Svetlana Alliluyeva. Stalin’s country house even had its own gorodki court. As Eugene Katzman, an artist who visited him there, recalled: “Stalin was the best at gorodki. When he aimed, his face became particularly energetic and expressive, as

if he was arguing at a party congress, crushing not pins or skittles, but Trotskyites, Mensheviks ... and other enemies.” Stalin often played gorodki with guests, showing his skills and passion for the game. He was pleased when he won, but if he didn't, he would light his pipe and puff on it contemplatively.

Sergey and Pavel, developed a real passion for cycling. They even rode their bikes in winter … albeit in the halls of the Winter Palace. Their bikes had solid rubber tyres and made a lot of noise,but nobody could

reproach them while they were having fun. By the end of the century, almost every member of the royal family owned a bicycle, and long fitness rides became a common royal pastime. Emperor Alexander III

How to play gorodki? rbth.com/26091

owned a bike, too, but, because of his giant stature and bulkiness, he preferred a more meditative, static kind of sport – fishing. Once, when he was fishing at his country estate, Foreign Minister Girs approached him for a meeting on European affairs, but Alexander dismissed him, saying:“Europe can wait while the Russian tsar fishes!” Russia’s last emperor, Nicholas II, was the most avid sportsman of all the tsars. He took up cycling at an early age and had many bicycles. But Nicholas’s great passion was for tennis. He got his first taste of it during his visits to England in the 1890s, and he soon began playing almost every day. Five tennis courts were set up at different royal estates, and the tsar’s favourite game soon became widely popular among the nobility. During the last years of the Russian empire, Nicholas continued playing tennis and cycling – maybe it helped him put up with the enormous pressure of those times. His last bill to a bicycle repairer was written on May 10, 1917; and his last tennis game was during the same month – even after his resignation Nicholas, no longer an emperor, remained a keen sportsman.

RUSSIAN HISTORY IN DETAIL A short history of British tourism in Imperial Russia r b t h . c o m /a r t s / h i s t o r y

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Fashion

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Style Russian-style prints, collars and colour schemes are appearing in both high-end and popular fashion worldwide

INNA FEDOROVA RBTH

The set – an ice-dusted interior of a Russian mansion – appears like a Doctor Zhivago dreamscape, complete with its own Lara. Interest in Russian culture and fashion in the West has historically gone up and down, but it seems that a few times a decade, designers turn towards Russia, or at least to a Western idea of it, for inspiration. In the ’90s,ValentinYudashkin had an international impact with his Faberge egg dresses, then in the noughties Denis Simachev brought out a line of frocks inspired by blue-and-white Gzhel porcelain and Russian-style fur hats.The current international interest in Russian style may be driven, in part, by the visibility of Russian women on the international scene who are known for their sense of style. Examples include Dasha Zhukova, a patron of the arts and partner of billionaire Roman Abramovich, Elena Perminova, partner of billionaire Alexander Lebedev, and Mi-

roslava Duma, fashion consultant and former editor of the Russian edition of Harper’s Bazaar. “From Dasha Zukhova and Miroslava Duma to Ulyana Sergeenko, Russian fashionistas have become favourite subjects of style chroniclers from New York to Milan and Paris,”saidVanessa Friedman, international style guru and long-standing fashion editor at the Financial Times.“Their willingness to take risks with their clothes and embrace

Russian style basics include feminine silhouettes, lush long skirts and waistlines... the high-end is sure to filter down through not only the designers’ imagination but to the consumers as well.” And there have been other pop-culture influences. Last year’s film Anna Karenina may not have been a big boxoffice hit, but its intense and sumptuous style had a fashion impact on both couture and mass-market designers, such as the Banana Republic’s“Anna Karenina” collection. American Friedman says that“Russian street style” and designer Ulyana

Julia Roberts at this September’s Toronto International Film Festival, in a Dolce & Gabbana frock that tips its hat to traditional Russian styles.

Sergeenko are the biggest Russian influences on fashion today. Suzy Menkes in the New York Times’ T magazine has also commented on the Russian style phenomenon: “When fashion mavens like Elena Perminova, Miroslava Duma or Dasha Zhukova get dressed for the evening, the whole world is watching.” At the 2013 Toronto International Film Festival, fashion observers were surprised when actress Julia Roberts, known for her love of the colour black, appeared at the premiere of August: Osage County in a red Dolce & Gabbana dress with lace, dolman sleeves and a

short hemline. Coupled with Roberts’s vintage hairstyle, the look recalled the film Gorky Park (1983). Last year, Lady Gaga appeared in outfits by Sergeenko that offered a contemporary mix of Anna Karenina and Eugene Onegin’s Tatyana.

Style “a la Russe”

The Russian style is becoming more and more popular worldwide.

PHOTOSHOT/VOSTOCK-PHOTO

In one of Vanity Fair's recent editions, fashion brand Blackglama took out a four-page spread, featuring a striking Julie Christie lookalike.

REUTERS

Once again, the fashion world looks to style a la Russe

Style a la Russe refers to a revival of Russian folk art, designs and materials (mainly silk and fur) and applying them to everything from hats to skirts. Russian style basics include feminine silhouettes, lush long skirts, emphasised waistlines, fur hats (Doctor Zhivago style), scarves, floral prints, lace and embroidery. Elements are also taken from Russian folk art.

Traditional Russian designs Khokhloma This hand-painted style dates from the 17th century and is one of the best-known expressions of Russian folk art. It is known for its vivid flower patterns. Pavlovsky Posad These colourful woollen shawls from the Pavlovo Posad factory are known for their flower and vegetable-themed designs, which appear three-dimensional. Gzhel This blue-and-white porcelain takes its name from the village of Gzhel where it has been produced since 1802. Gzhel designs come on vases, small animal sculptures, tableware and tea sets.

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