SCMP 2013 11

Tuesday, November 26, 2013

SPECIAL REPORT

RUSSIA

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2 Tuesday, November 26, 2013

RUSSIA BEYOND THE HEADLINES

Memorable moments TIME OUT

MISS UNIVERSE

PRESS PHOTO

ARCHITECTURE REUTERS

MOSCOW will get a breath of fresh air, thanks to a new park project. When completed, at a date to be announced, it will transform the site next to the Kremlin into a public venue which will highlight Russia’s diversity.

MISS VENEZUELA Gabriela Isler was this month crowned Miss Universe 2013, beating 85 other contestants in Moscow. Miss Universe 2012, American Olivia Culpo, presented the US$120,000 Diamond Nexus crown to Isler, 25. Miss Spain, Patricia Yurena Rodriguez, was first runner-up and Miss Ecuador Constanza Baez was second runner-up.

MARTIAL ARTS

AP

VLADIMIR PUTIN visited South Korea and Vietnam during his recent Asian tour. Putin was awarded a ninth-dan black belt from the president of the World Taekwondo Federation — ranking him a notch higher than American actor Chuck Norris. Putin, a martial-arts enthusiast, said: “I’m not sure if I deserve this.” Last month, Putin was also named by Forbes magazine as the world’s most powerful person, displacing United States President Barack Obama.

DON’T MISS RBTH’S NEW GUIDE ON RUSSIAN NHL PLAYERS!

TORCH RELAY

REUTERS

THE SOCHI 2014 WINTER OLYMPICS will open in February. Two Russian crew members of the International Space Station (ISS) took the Olympic torch with them for a spacewalk. Expedition 37 commander Fyodor Yurchikhin (left) shakes hands with Expedition 38 cosmonaut Mikhail Tyurin, who handed over the Olympic torch aboard the ISS.

Coming in November!

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“CHINA’S THIRD PLENUM: WHAT DOES IT MEAN FOR RUSSIA?”

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“INTERVIEW WITH MITSUI & CO PRESIDENT: ‘WE NEED TO DEVELOP HUMAN EXCHANGE’”

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Tuesday, November 26, 2013

3

RUSSIA BEYOND THE HEADLINES

Patriotic howl from Wolves Wolves and other clubs outside Russia are considerable. The club is ideologically close to the authorities, has connections to Putin and is increasingly known for espousing nationalist rhetoric. Putin first visited the Night Wolves at its Sexton bike centre in western Moscow in 2009 – something the sceptics viewed as just another one of his macho media stunts.

Images of Putin, in a leather jacket and surrounded by burly bikers, were published several times since he first became president. Last July, Putin even reportedly kept Ukrainian leader, Viktor Yanukovich, waiting for four hours while he had a meeting with the Surgeon.

Zaldostanov himself makes no secret of his warm relations with Putin and praises the president for his patriotic attempts to “return Russia’s greatness”.

The Surgeon organises a Stalingrad patriotic biker festival, as part of a wider ceremony commemorating the Nazi bombing of Stalingrad on August 23, 1942, and is also known for his harsh anti-American rhetoric and his criticism of Western values.

The Night Wolves expressed outrage at the controversial punk prayer performed by Russian feminist group Pussy Riot in Moscow’s Christ the Saviour Cathedral in February last year and, in doing so, showed their strong support to the Russian Orthodox Church.

The club later promised to help guard Orthodox cathedrals from any further “hooliganism”.

The Night Wolves are also openly

ROAD THRILL homophobic, not allowing homosexuals to join the club. Such behaviour has raised eyebrows among other motorbike clubs, comprising mostly middleclass men who are able to afford upmarket bikes. Indeed, the Night Wolves’ recent pro-government stance has put some bikers off.

This year, Putin awarded the Surgeon with the prestigious Order of Honour for his “active work in the patriotic upbringing of the young” and for helping search for the remains of dead second world war soldiers.

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1

WAYS TO BECOME A NIGHT WOLF

travel.rbth.ru/1327

Headquartered in Moscow, and with more than 5,000 members nationwide, the Night Wolves is Russia's biggest motorbike club.

The Night Wolves’ power and influence were highlighted last year in an incident in which one member was killed in a shootout with rival gang Three Roads, allegedly because the latter refused to endorse the Night Wolves’ support of the Kremlin. No action was taken by the authorities.

Aspiring members – only straight men need apply – should be adventureseekers, without work or family commitments that might prevent them from spending time with the club.

Read on RBTH.RU: The best vegan and vegetarian dishes in Sochi

REUTERS

A

lexander Zaldostanov looks like a typical anti-establishment biker – tattooed, burly, long hair and, of course, with a big bike.

However, the “Surgeon”, who is head of the famous Night Wolves motorbike club in Moscow, is also a good friend of Russian President Vladimir Putin.

And his bikers – unlike the American Hells Angels – are seen as purveyors of positive nationalism.

“I want us to remain a patriotic club, to be an example for the young, to do something for our Fatherland – which we basically lost by buying jeans and chewing gum, selling out for McDonald’s,” the Surgeon says.

“The Night Wolves are a phenomenon – bigger than a motorbike club, something that makes presidents come to us and the patriarch gave us his blessing.”

Founded in May 1989, the Night Wolves – heavily bearded, beer-bellied men in leather vests – grew out of the anti-Soviet rock culture of the 1980s. For years, it was the only motorbike club in the country, and now it is Russia’s largest, with more than 5,000 members.

The Night Wolves’ manifesto rejects all laws and speaks of the power of the brotherhood. It has not, however, tarnished its reputation, as the American branch of the club has, with criminal activities.

The Russian branch was modelled on the Hells Angels.

But the differences between the Night

AP

With support from Putin, Moscow’s motorbike club fuels nationalism, writes Aglaya Tolstaya

President Vladimir Putin rides with the Night Wolves.

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Yevgeny Vorobyev, the leader of the Three Roads, said that his gang had angered the Night Wolves by ending an alliance with them and establishing ties with the US motorcycle club the Bandidos.

“The Wolves have become too politicised,” Vorobyev said.

You need your own bike - and they don’t always come cheap. Vladimir Putin’s three-wheel Harley that he rode to a bike show in Sevastopol, for instance, cost more than US$20,000.

3

Would-be Wolves need to demonstrate their loyalty and commitment to the club by waiting five years before they become members. New members can wear the club’s emblems on their leather jackets.

NEXT issue Winter in Sochi: what do you wear and what do you bring with you? travel.rbth.ru/1331

17 December

4 Tuesday, November 26, 2013

© RIA NOVOSTI

PHOTOSHOT/VOSTOCK-PHOTO (2)

RUSSIA BEYOND THE HEADLINES

(Above): Yevgeny Roizman after his mayoral victory; (middle): opposition activist Eduard Limonov; (right): Alexey Navalny, Moscow's contentious opposition leader.

Maintaining grip on power While opposition makes gains, ruling party remains strong, writes Alexander Kolesnichenko

T

he desire for change in Russia is starting to manifest itself, however small.

In the country’s biggest elections since the break-up of the Soviet Union, opposition figures made strong gains, but they are still a long way from toppling the power base of Russia’s President Vladimir Putin and his ruling United Russia party.

Municipal authorities were elected in 80 of the country’s 83 regions, with 16 regions also electing local parliaments and 10, including the Greater Moscow region, electing heads of government. According to data released by Russia’s Central Electoral Commission, 109,900 candidates ran for a total of 44,661 seats nationwide.

“The elections in Moscow and several other major cities have shown that the changing social structure is starting to be reflected in the electoral process, and is fostering the emergence of new contenders for power,” says Jadwiga Rogoza, of the Centre for Eastern Studies.

“As yet, these changes are not undermining the domination of the Kremlin.”

The new forces are led by opposition politicians Alexey Navalny, in Moscow, and Yevgeny Roizman, in Yekaterinburg.

While the 37-year-old anticorruption blogger Navalny didn’t win Moscow’s mayoral election, he received 27 per cent of the vote – something incumbent mayor Sergei Sobyanin, who got 51 per

parties to survive. One, for example, introduced in 2004, required that the minimum membership for a political party be 50,000 people, and that party branches have at least 500 people in at least half of Russia’s regions. As a result, the number of parties in Russia dropped from more than 60 in the early ’90s, to seven, by the time of the State Duma elections in 2011.

In March last year, that regulation was amended, and a political party can now be registered if it has per cent of the vote a minimum of 500 members, and was won by reformist Galina Shirshina in only five members are required to the city of Petrozavodsk register a regional party branch.

Since 2003, United Russia has had a majority in the State Duma, which has allowed it to pass laws at its discretion.

Also, by 2003, Russia’s opposition per cent of the vote movement was described as being eiwas garnered by ther inside or outside “the system”. opposition leader Alexey Navalny in Moscow The internal opposition consists of parties that have managed to retain their official registration and run in elections, while the external oppoper cent of the vote sition includes unregistered parties went to Yevgeny and political movements that hold Roizman in Yekaterinburg elections meetings and stage protests without permission from the authorities.

However, political analysts describe the internal opposition in the State Duma as merely a “notional” opposition.

This notional opposition consists of rbth.asia/48957 the Communist Party of the Russian

Opposition grows stronger

POLITICS cent of the vote, is probably not too happy about. Roizman, however, did win the mayoral post in Yekaterinburg, gaining 33 per cent of the vote, narrowly beating United Russia’s candidate, Yakov Silin, who earned 30 per cent.

Running on a tough-love, antidrug platform, Roizman is now the highestplaced opposition figure in Russia.

Despite the success of these two figures at local level, opposition politicians in Russia have a hard time getting anywhere in light of the dominance of United Russia. And even Roizman is not likely to find it easy, working with a United-Russia dominated city council.

After Putin came to power in 1999, Russia’s opposition parties have gradually became sidelined. Since 1999, a number of regulations have been introduced, making it difficult for small

41.9

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Federation (CPRF), helmed by its leader of 20 years, Gennady Zyuganov. The two other parties are A Just Russia, created by spin doctors in 2006, as a spoiler party to lure voters away from the CPRF, and the Liberal Democratic Party of Russia (LDPR).

The LDPR is headed by Vladimir Zhirinovsky, who is infamous for his outrageous, nonsensical and, at times, aggressively nationalist rhetoric. He once promised that, if he came to power, he would find a husband for every single woman in Russia. It’s hard to fathom that a man who gets into fist fights in parliament and has been known to give away cash at political rallies garners around 10 per cent of the vote.

Some opposition leaders have no intention of getting their parties registered because they think that in the present political system, they would not be able to win elections anyway.

One example is Eduard Limonov, a writer and leader of The Other Russia.

Limonov has been convicted and imprisoned on many occasions, and spent two years in jail for illegally purchasing weapons in 2003. He advocates seizing power through mass insurrections.

“When there are 5,000 or 8,000 of us taking to the streets, we’re outside the law. But if there are 500,000 of us, we become the law,” he famously said.

Tuesday, November 26, 2013

5

RUSSIA BEYOND THE HEADLINES

Minding their business Contrary to stereotypes, businesspeople are creative and determined, writes Anna Kuchma

R

Gaining trust Fentham-Fletcher is also chief of front office staff at Renaissance Asset Managers. He began his career in Russia with banking, offering new ideas that were all the rage in London at the time.

“It was amazing, at first they were logically sceptical, but what surprised me was how they grasped the potential, how we could grow things,” he recalls.

It is typical for Russians to be on their guard at the beginning of negotiations; the habit goes back to Soviet days. Back then, the usual tactic was to ask for a lot, but then make mutual concessions and settle for more reasonable terms after lengthy haggling.

“Trust is a critical quality to a Russian businessman, that can come quickly and once earned, it will last a lifetime,” Fentham-Fletcher says.

Polina Lagutina echoes this view.

Born in Russia, she spent several years living and studying business in Canada and the United States before moving to Australia. She now works in Melbourne for PwC, a global professional services group.

“Russians are reserved at the first meeting, often trying to analyse if they can trust a person,” she says.

“When you don’t have this trust, Russians could appear almost building a paranoid fence and looking for a second meaning where it doesn’t exist.

Once you have passed the check and earned trust, Russians are the most devoted friends.”

Showing emotion Once trust has been established, Rus-

COMMERCE

Trust is a critical quality to a Russian businessman ... and once earned, it will last a lifetime sians 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.

Bonding Russian-style often involves drinking vodka shots – something nonRussians are usually not used to. Russians also do not smile as much as Western businesspeople in negotiations.

Lagutina says: “Of course, it depends on the person, but [Russian] traditions dictate that you don’t reveal happiness or pride, in case someone gets jealous and takes the reason for your happiness and pride away.”

Straight down to business The more Russians trust their counterpart, the less they are inclined to waste time on formalities and polite small talk.

They get straight to the point – and only then ask how things are going, or chat about the weather.

And, as Fentham-Fletcher has learned from personal experience, business matters are often discussed outside the office.

“Business dinners are the norm,” he says. “The business day starts slightly later but runs late at night.

“Restaurants can be full of businesspeople doing deals at all times of the day, whereas in London or New York the deals are more likely done during the day and in the office. In cafes or restaurants the topic of conversation can be more measured than a boardroom.

“That doesn’t mean to say that Russian business isn’t done inside boardrooms – it’s just that the more trusted you become, the closer you are taken in.”

Another useful point to note is that it’s better not to enter into any drinking competitions with Russians; they usually win.

ALAMY/LEGION MEDIA

ussia’s business elite has had an image problem over the years. At worst, they are portrayed as hardened criminals with links to the underworld.

At best, they are 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 since the 1990s, and many foreign entrepreneurs who have gone to Russia to do business are in no hurry to leave.

“It’s not at all like the stereotypes portrayed in Western media,” says Simon Fentham-Fletcher, a British expatriate in Moscow, who works as a portfolio manager at Renaissance Asset Managers.

“I originally thought I’d be here for two years,” he says.

“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.

The iconic kiss between former Soviet head Leonid Brezhnev and the former East German leader Erich Honecker in 1979 symbolises the strong emotional expression shown by Russians.

Distinguishing features According to Fentham-Fletcher, there are three useful qualities that distinguish the Russians from Westerners.

The first is their never-say-die attitude.

“In Russia, there is always opportunity, people don’t wake up and think this can’t be done as so often happens in Europe; rather the opposite, opportunities are always being looked for.

“I might argue that Russian entrepreneurship has to be creative because previously there was none and so it has had to invent itself.

“This is a great attribute.”

Adaptability is another important factor.

The need for innovative solutions and lateral thinking also has to do with the fact that in Russia, the straight path is not always the quickest.

“Entrepreneurs here still have to battle quite a large state sector in many industries.

“This means that they have to be adaptable and deliver so that the ‘safer’ state option isn’t chosen,” FenthamFletcher says.

Also, the age group of your Russian business partner can make a great deal of difference.

People over 50 are usually representatives of the Soviet school of business.

As a rule, they are reluctant to take risks, and tend to coast along on their past achievements.

“Those in their 40s also have a ‘number’ that will make them stop – it is just that the number gets larger with each new deal,” Fentham-Fletcher says.

“I love this never-sated quality. “The desire to push and push for more is something that starts to lag in Europeans.

“Not in Russia, there is never enough.”

Word of advice The word “Soviet” means “council” as well as “advice” in Russian. As such, Russians always seem to have a bit of advice for each other – even if the mat-

ters they are advising upon are well outside their field of expertise. Lagutina recalls how it used to drive her Austrian friend Darren mad.

“At first I was really angry and thought every Russian I met was [too clever], trying to show me how to do something I already knew how to do,” she quotes Darren as saying. “But I understand now that this is a way of them showing how they care, a sign of friendship and no ego is involved.”

PROS AND CONS

Want to invest?

THE PROS: Russians are known for being hard workers.

A legacy of the Soviet era, many Russians are innovative problemsolvers.

THE CONS: Once trust is established, Russians make loyal business partners.

Winters are brutally cold.

The new 13 per cent tax rate is attractive for investors.

Visas and work permits are difficult to get.

As a large country, Russia has an army of well-educated and motivated young people.

Red tape is a nightmare to overcome.

Russians have a never-say-die mentality.

Traffic jams in Moscow are so bad that Russia’s president and prime minister go to work by helicopter.

6 Tuesday, November 26, 2013

RUSSIA BEYOND THE HEADLINES

I2BF’s US$20 million investment is expected to put satellite sector in hyperdrive, writes Ilya Dashkovsky

L

ast month, international investment firm I2BF Global Ventures announced a significant investment in start-up Russian space company Dauria Aerospace, in a low-profile move.

I2BF’s US$20 million investment is surprising, as Dauria is recognised as a pioneering company in developing a sector pretty much neglected by the Russian government.

“Traditionally, Roscosmos [Russia’s Federal Space Agency] focuses on lowmargin services, launching, servicing and putting satellites into space, while completely neglecting the high-margin services market, which is what private companies are aiming for,” says Aleskey Volostnov, business development director for Frost and Sullivan in Russia.

Dauria develops and manufactures the new generation of small satellites that cost much less, yet boast enhanced capabilities. This allows the launching of many satellites, financially viable at private and government levels.

I2BF’s US$20 million investment will be used as working capital to serve ex-

isting contracts, technology development and new satellite platforms. Last year, the global satellite industry saw US$190 billion in revenue, broken down by satellite services, launch industry, satellite manufacturing and ground equipment.

Dauria Aerospace’s operations touch almost all of these subsectors, with an overall strategic goal of establishing a low-cost infrastructure for rapid monitoring of ground assets and activity.

Dauria hopes to manufacture cheap satellites that will cost up to US$10 million to build and which can be made within a year. Spacecraft usually cost hundreds of millions of dollars and take years to produce.

Russian space company plans to launch four satellites over the next few years, two of which, Saggita and Perseus, will be launched next year, and another two, Pyxis and Auriga, between 2015 and 2017.

According to forecasts, the company’s annual turnover will exceed US$1 billion a year by that time.

Mikhail Kokorich, president of Dau-

PRESS PHOTO

Ready for warp speed Forecasts predict that Dauria’s annual turnover could reach US$1 billion annually.

SPACE ria Aerospace, says: “Our services are unique from the point of view of gathering information and we have our own niche: accurate surveying, forestry, and asset management and monitoring from space.” Kokorich says there’s no need to fear competition from state-owned companies because Russia only has a small number of space vehicles.

Andrey Milovanov, head of the Satellite Transport Monitoring department within the Arkan group, says that for a long time, the Russian space industry

was merely trying to survive, while the rest of the world modernised its satellite production, developing low-budget, small-scale systems. He says Dauria, which was formed in 2011, is a pioneer in the private satellite market in Russia and is expected to perform well in the domestic market at least.

“Today, Russian government agencies use systems for satellite observations which are 95 per cent foreign manufactured. So, a local product would certainly be in demand in a growing Russian market,” Milovanov says. “It is more difficult to predict the outcome of doing business on the global market though.

But the company’s innovative approach and its collaboration with experienced partners, like the English company SSTL, makes the project competitive.”

American universities are also involved with Dauria and Roscosmos.

Dauria has a branch at Skolkovo Innovation Centre, in Moscow, making systems for the internal market, and the company’s headquarters, which houses the key service division, is based in Munich.

There is also a division in the United States developing payload, and satellite systems for the international market. Dauria’s founders are certain that only a transnational company can achieve success in this business. However, there is another reason why the company’s headquarters are not based in Russia.

Kokorich says: “Unfortunately, due to the idiosyncrasies of the Russian tax system and the complexities of importing and exporting the necessary equipment, it is still difficult to work efficiently on the global market from inside Russia.” Experts add that the state still strictly controls key infrastructure, and the delivery vehicles. As Volostnov suggests: “This could mean that this field would be closed to private companies very rapidly if a decision like this is taken at the governmental level.

“That said, the market potential is relatively high, which means that private investment in this field can be taken seriously. Moreover, it does not prevent us being proud of the first private project in Russia’s space industry.”

‘Weak’ sentiment hides real signs of growth Wiktor Bielski Global Head of Commodities Research at VTB Capital Asian and global commodity markets in 2013 have been dominated by “weak” headlines: “weak” Chinese growth; slowing demand; a “glut” in copper and steel; “weak” price outlook; and so on.

As a result, speculative investors – spearheaded by fast money and hedge funds – shorted metals markets in record volumes in the first half of the year and prices came under sustained pressure. This has eased in the past three to four months as signs of a global economic recovery gather pace, with the manufacturing purchasing managers index rising above 50 in most regions; residential construction markets recov-

ering their strength; and rising global car sales. This has prompted speculators to cover their short positions, within limits. However, the approaching end of quantitative easing and an obsession with the timing of the Fed’s tapering of bond purchases has kept prices in check, supporting continuing short positions.

We believe, however, the “weak” headlines have been misleading and at odds with improving fundamentals. In the third quarter, global finished steel consumption was up 7.7 per cent, yearon-year, with China leading the way with a rise of 14 per cent, year-on-year.

Chinese production of copper and aluminium, meanwhile, was up 22.7 per cent and 25.1 per cent year-on-year, respectively, in the first three quarters of 2013, although this is admittedly an imperfect proxy for consumption.

VTB Capital sees these developments as encouraging for Asia and the global economy Moreover, Chinese imports of crude oil and iron ore reached new all-time highs in September, and coking coal imports in the first three quarters exceeded full-year volumes in 2012, which itself was a record year.

Indeed, we estimate that for all commodities, Chinese and global demand growth in 2013 will be significantly high-

er than in 2012, and we expect further acceleration in 2014 as global economic recovery gathers momentum. In addition, we think the upcoming third plenum of the central committee is likely to announce measures to boost the pace of urbanisation and infrastructure spending, underpinning our forecast of Chinese GDP growth of 7.5 per cent next year.

Acting as a constraint to prices, however, has been equally strong production growth – a result of a strong capital expenditure (capex) cycle of the past three years reaching a peak.

This is set to change as substantial capex reductions, project cancellations and growing operating headwinds combine to taper the supply pipeline. Meanwhile, global inventories are low in many commodities, while in base metals ware-

housing and financing deals have kept metal tightly held and triggered historically high spot premiums. When combined with accelerating demand growth, we believe this creates a strong platform for tightening market balances and hence rising prices over the next two to three years, leading to a more positive outlook for commodities in the medium term.

VTB Capital sees these market developments as encouraging for Asia and the wider global economy. Indeed, we have strengthened our team and are expanding our business in Asia and farther afield to cope with the increased and anticipated demand. We’ve also established a partnership with investment bank Citic Securities, with the aim of increasing deals between Russia and China.

Tuesday, November 26, 2013

7

RUSSIA BEYOND THE HEADLINES

Hunger for ‘black gold’ Decline in sturgeon numbers sparks demand for salmon caviar, writes Yaroslava Kiryukhina

DELICACIES

Caviar’s high prices have encouraged overfishing and smuggling As salmon catches increased in the Kamchatka Peninsula in the Russian far east and in the Sakhalin region, more processors were established on the east coast – leaving processors near the Caspian Sea with no place to obtain fresh salmon roe. According to recent data, about 4,000 tonnes of raw caviar were harvested in the Caspian Sea in 20102011, while last year that number dropped to 1,500 tonnes.

One can hardly find legal Russian caviar in Asian stores, except in Japan, which imports salmon roe from its western neighbour for its sushi bars. Hong Kong, however, has recently witnessed the first Asian sale of wild sturgeon harvested in the Iranian side of the Caspian Sea. The price for a kilo of this precious roe exceeded HK$86,000 at Hong Kong’s Food Expo. European gourmands, with deep pockets, however, rejoiced two years ago, when Russia lifted a nineyear ban on the export of sturgeon caviar to Europe – harvested from farmed sturgeon and limited to 150kg a year.

Russian wild caviar, that beloved snack of Russian tsars and those who aspired to be princely, is now no more.

Rampant fishing after the fall of the Soviet Union led to stocks falling so low that Russia, 11 years ago, introduced a moratorium on commercial fishing of sturgeon in the Caspian Sea, the historical centre of caviar production.

Other countries bordering the Caspian Sea, the source of 90 per cent of the world’s wild caviar – Iran, Kazakhstan, Turkmenistan and Azerbaijan –

IN NUMBERS

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tonnes of sturgeon-roe caviar are legally produced in Russia’s fish farms, according to market research.

ITAR-TASS

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lack caviar has long been a symbol of Russian affluence – now more than ever. The aristocrat’s hors d’oeuvre is the salted roe derived from the sturgeon, one of the most threatened groups of animals on the planet.

Worth more than gold and prized by gourmets around the world, the decline in sturgeon numbers means the genuine tiny, shiny black eggs are rarely available in stores.

Instead, counterfeit caviar is filling the shelves. Pike caviar looks similar in every way, but is no way comparable to sturgeon eggs when it comes to taste.

However, aficionados are increasingly turning to the lower-priced red caviar, produced by salmon, to satisfy their roe desires.

Even red caviar prices are expected to sky-rocket ahead of the New Year, a holiday most Russians associate with a sandwich topped with butter and the red beads.

Last summer, the cost of salmon caviar rose to 70 per cent, largely because of a bad start to the salmon season in eastern Russia. Later, normal market prices returned – about US$50 a kilo – thanks to large imports of frozen red caviar from Alaska.

Between 40 per cent and 60 per cent of the red caviar in Russia comes from fisheries in the far eastern part of the country. Annual production of salmon caviar in Russia is estimated between 11,000 and 13,000 tonnes. About 1,500 tonnes of frozen red caviar had been imported to Russia as of August, worth more than US$13 million, the Federal Customs Service reports.

Almost 90 per cent of the caviar was declared at US$7 to US$9 per kilo, several times lower than average price of Russian caviar.

Russian caviar market experts say salmon-roe shortages and price fluctuations are largely a result of conflicts between caviar processors on the eastern coast and those near the Caspian Sea.

In 2006, international trade in wild-sturgeon products was banned.

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Expensive taste for the wealthy few

tonnes of sturgeon roe are sold in Russia’s black market annually, giving illegal producers millions of dollars in cash.

If you think black caviar is the most expensive and the tastiest, you would be wrong.

The most expensive roe - golden yellow in colour - comes from the rare Caspian Sea sturgeon: the albino beluga sturgeon.

A small jar of this delicacy could set you back US$50,000 because it takes the fish at least 20 years to

mature before producing eggs.

The lighter the colour of the caviar, the older the fish is. And with age comes an exquisite flavour, and colour.

The grades of the roe’s colour are: 0 (darkest), 00 (medium toned), and 000 (lightest colour). The 000 grade is the most expensive and is referred to as “royal caviar”.

also agreed to respect the moratorium.

In 2006, Cites, the United Nations organisation that controls trade in endangered species, banned international trade in caviar and other wild-sturgeon products.

Twenty seven species of sturgeon are now on the International Union for Conservation of Nature’s Red List of Threat-

ened Species and, of these, 63 per cent are listed as critically endangered.

Caviar’s high prices have encouraged massive overfishing of the sturgeon, and smuggling. Traditionally, caviar was obtained from wild species caught mainly in the Caspian Sea. In China, which aims at becoming a world leader in caviar production,

90

per cent of Russian red caviar is harvested from wild salmon in the far east, while the rest is taken from farm-raised fish.

the salted sturgeon’s roe from Russia has better reputation than the domestic delicacy and traders are sometimes forced to obscure its origin. For instance, one of the journalists at seafoodsource.cn has found that Chinese caviar being sold in Cyrillic-language packaging at Jingshen seafood market in Beijing.

telling you their success stories.

Don`t miss the chance to meet them at

rbth.ru/30under30

8 Tuesday, November 26, 2013

RUSSIA BEYOND THE HEADLINES

A migrant headache Workers from CIS and ethnic regions face increasing hostility, writes Yara Olenina IN NUMBERS

11

million migrants, or more than 7 per cent of the overall population, now live in Russia, according to the recent UN report.

2 million foreigners working in Russia are legally employed, says Russian Labour and Social Development Minister Maxim Topilin.

6

The nationalists are pursuing their political goals.

This is clearly very dangerous Russia’s economic boom, there are now more than 11 million migrants in the country – the second-largest immigrant population in the world behind the United States (45.8 million). Germany (9.8 million), Saudi Arabia (9.1 million) and UAE (7.8 million) also have large migrant populations.

In Russia, they account for 7.7 per cent of the population, while in the US it is 14.3 per cent and in the Arab Emirates an overwhelming 83.7 per cent.

More than 1 million people from the CIS member states or from the Russian Caucasus live in Moscow, around one third of them illegally.

Despite their numbers, there is only one migrant-friendly hostel in the city – in Chelobityevo, just outside Moscow’s ring road, where Tajiks, Uzbeks, Dagestanis and Russians from different regions, mainly Vologda and Arkhangelsk, co-exist peacefully and pay only US$5 a night.

While safe in their hostel, the streets can be hazardous, says a 20-year-old Dagestani named Maxim, who works as a cashier in a supermarket and claims to earn about US$1,500 a month – 10 times the average salary of those in other Russian regions.

“They [policemen] may stop us sev-

SERGEY SAVOSTIANOV / RG

Russia is ranked sixth in the world for using migrants for forced labour in some industries, the Australiabased Walk Free Foundation reports.

Russian nationalists stage a march during Russia Unity Day. They want all immigrants expelled. eral times a day, so we prefer to keep a low profile,” Maxim says.

He says the police extort more money from those who have legal documents – more than US$30 each time, while those who haven’t got any documents are required to pay US$3 fine. As a result, most of them prefer to leave their documents at home.

Apart from the fortunate few who live in the hostel, many migrants are forced to live directly on construction sites inside the structures they are building or

in tiny flats along with a dozen of their compatriots.

However, not all migrant workers say life is hard. Timur, from Tajikistan, who has been living in Moscow for the past 20 years, says he has never been offended or beaten by football fans or by nationalists, and thinks that the problem is exaggerated.

“They [Russian authorities] allow us to come to Russia to earn money for our families, they don’t stop us on our way to Moscow, so why haven’t they tried to

SERGEY SAVOSTIANOV / RG

I

t’s not easy being an immigrant in Moscow. It seems nearly everyone – Russian nationalists, the media and even the president – blames immigrants for all forms of social strife, from bad roads to violent crimes.

The migrants themselves, many of them from Commonwealth of Independent States (CIS), complain of harassment and extortion by the police, even if they have legal documents. They also have trouble finding decent accommodation.

However, official police records show that only about 20 per cent of crimes are committed by immigrants. In addition, media reports indicate that half of Moscow’s crimes are committed by people from other regions who police try to pass off as immigrants.

Many organisations and politicians blame nationalists for exaggerating the migrant menace. These migrants perform the majority of menial jobs Muscovites are reluctant to do.

“The nationalists are pursuing their political goals. This is clearly very dangerous. We are warning migrants to be careful for now in crowded areas and on public transport,” Mukhamad Amin, head of the Federation of Migrants of Russia, said after riots last month stemming from the stabbing of an ethnic Russian in a Muslim area of the capital.

“Russia for Russians” is an increasingly common chant by Russian nationalists, who demand that migrants – either internal, such as Dagestani and Chechen, or external – be kicked out.

Tensions between Russians and migrants in Moscow reached crisis point last month, when an incident in Moscow’s low-income outer suburb of Biryulevo led to rioting. The riots were in response to the death of a man whose murder local residents blamed on an Azeri migrant, Orkhan Zeynalov.

Zeynalov was arrested soon after the stabbing, although some sceptics say he may be have been used as a scapegoat to calm angry crowds.

Emil Pain, director of the Russian Centre for Ethnopolitical Studies in Moscow, says it was the fourth major ethnic conflict in Russia this year – after incidents in Saratov, Yekaterinburg and Tatarstan.

Azerbaijan has criticised Russia’s law enforcement agencies, saying that the public descriptions of Zeynalov as a “killer” instead of a suspect ahead of any trial contravened legal presumption of innocence.

After the incident, police stepped up patrols throughout the city to prevent a repeat of the 2010 riots on Manezhnaya Square, when thousands of nationalists protested over the killing of an ethnic Russian during a fight between football fans and Russians from the North Caucasus.

Recruited mostly from former Soviet republics in Central Asia to build skyscrapers and shopping malls during

Migrants take up jobs most Muscovites are reluctant to do.

stop the influx of migrations at the border?” he says. Head of the Federal Migration Service (FMS) Konstantin Romodanovsky says Russia has failed in its immigration policy and proposes setting up 81 special centres for illegal migrant workers. Jobs on construction sites or in building renovation – the two most lucrative migrant professions – are becoming scarce, with employers withholding wages for work already completed.

Boris Titov, presidential ombudsman for Entrepreneurs’ Rights, is in favour of an amnesty for illegal migrants.

“If we suddenly deport all the migrant workers, the economy of the country will crumble,” he says. “Today, Russia desperately needs workers. Approximately every 15th job is taken by a migrant.

Taking into account the demographic pit into which Russia had sunk recently, the need for workers will only increase. And who will fill this need?”

In an experiment conducted in Kronstadt, an island town near St Petersburg, two-thirds of street cleaners were replaced by locals. However, complaints soon flooded in that the quality of the work deteriorated.

By 2030, the number of working-age Russians is predicted to fall to 77.4 million from 87.5 million, according to official estimates.

Tuesday, November 26, 2013

9

RUSSIA BEYOND THE HEADLINES

Hardliners take over Unity Day Yaroslava Kiryukhina Thousands of nationalists took to the streets of Russia’s major cities, including Moscow, St Petersburg, Kazan and Irkutsk, earlier this month as part of annual marches that have sparked antiimmigrant violence in the past.

In 2005, President Vladimir Putin replaced the old public holiday commemorating Russia’s 1917 revolution with a new National Unity Day, which honours the liberation of Moscow from Polish invaders in 1612.

SOCIETY

ITAR-TASS

Every day, Russian nationalists are gaining more and more support across the country

Migrant workers from Central Asia are in demand in Moscow’s construction sector.

However, the day soon became synonymous with ultranationalist rallies called the Russian Marches, which regularly feature anti-immigrant slogans and sometimes even Nazi emblems.

Alexander Belov, a nationalist leader and organiser of the march was quoted by news agencies a saying: “Moscow has only just woken up, and Russians have only just started to recognise their identity.

“Every day, Russian nationalists are gaining more and more support across the country.”

Marchers celebrating this year’s National Unity Day in Moscow ranged from teenagers to elderly men and women, some of whom were military retirees.

Images from the Moscow neighbourhood of Lyublino, where the march took

place, showed demonstrators carrying Russian imperial flags and banners with slogans such as “Today a mosque, tomorrow jihad” and “Say yes to visas for migrants”. One group displayed a banner reading “Young People Against Tolerance”, while others accused migrants of pushing up the crime rate and taking their jobs.

Marchers chanted “Russians Unite” and “Russia for Russians, Moscow for Muscovites”, echoing hostility towards migrants from the former Soviet Central Asian republics and non-Slavs from the largely Muslim Caucasus region.

Migrants usually engage in trade or menial jobs that most Muscovites would refuse to do, such as street-sweeping, garbage collection, cleaning, road works and construction.

Russia is visa-free for all Central Asian republics, such as Azerbaijan, Armenia, Belarus, Kazakhstan, Kyrgyzstan, Moldova, Tajikistan, Ukraine and Uzbekistan, but many protesters called for the introduction of a visas for citizens of the CIS travelling to Russia.

Some marchers demanded the country reduce funding for Russia’s republics in the North Caucasus, such as Chechnya and Dagestan.

While some bystanders didn’t like what they said, others said they supported the march because of the number of migrants they had seen in their neighbourhoods.

There have been 19 hate-related murders so far this year and 140 injuries, according to the Sova Centre, a Moscow-based NGO that monitors racism.

About 30 people were detained during the rally for using Nazi slogans and symbols, and other minor public order offences, according to Moscow police.

The Interfax news agency also reported that police detained 12 participants in a similar rally in the Siberian city of Krasnoyarsk.

Experts want amnesty for illegal immigrants Darya Lyubinskaya An amnesty for illegal immigrants is the best solution for Russian’s migrant problem without threatening economic growth, experts at a recent Moscow conference on diversity say.

The issue of illegal immigration has been at the forefront of Russia’s domestic politics in recent months.

As such, a key topic of the Unity in Diversity international conference on migration and inter-ethnic relations was about the need to integrate immigrants into all spheres of Russian society.

Experts believe it is far more beneficial to legalise immigrants than to deport them.

One possible solution would be an amnesty for all illegal immigrants.

“One could introduce quotas, limits, put up barbed wire fences, but immigrants will continue to come because there is work for them here and they are wanted,” says Olga Vorobyeva, head of the research centre for socio-economic population studies under the Mos-

cow Psychology and Sociology Universities. “The authorities themselves are breeding illegal immigration,” Vorobyeva says, because of their excessive demand for migrant labour.

An amnesty would involve the mass legalisation of immigrants, provided a number of conditions are met, such as an immigrant must have an employ-

The authorities are breeding illegal immigration because of the demand for migrant labour ment contract, must register with the tax service and must obtain an individual taxpayer’s number.

The employer must also provide its employees with medical insurance, third-party insurance and cover the cost of deporting the worker should they

break Russian laws. Migrant workers account for 7.56 per cent of the Russian GDP and, apart from economic benefits, the country needs people to perform jobs Russians are loath to do.

In addition, Russia must deal with the consequences of the demographic crisis of the 1990s, when the population shrank by a million a year.

It is expected that by 2050, there will be a shortage of 10 million workers in the labour force.

Leokadiya Drobizheva, head of the centre for inter-ethnic relations studies under the Russian Academy of Sciences’ Institute of Sociology, proposed setting up adaptation centres for immigrants, where they will be taught the Russian language, basic laws and Russian traditions and customs in order to better assimilate with ethic Russians.

The Federal Migration Service has recently submitted a draft law to the State Duma that proposes replacing migrant worker quotas with limits for each sector of the economy.

If the bill is adopted, the cancellation of quotas will cut administrative barri-

ers and put an end to the corrupt practice whereby intermediaries take on migrant workers in exchange for bribes.

The law would mean, for example, that if the construction sector has a limit of 30 per cent of migrant labour, a company can give 30 out of every 100 jobs to foreigners. The actual quotas have yet to be finalised.

One could introduce quotas, limits, put up barbed wire, but immigrants will continue to come The most acute problem, though, is what is to be done with migrant workers already in Russia.

Nobody knows for sure how many there are in the country, and estimates range from 3.6 million to 11 million, most working illegally.

Experts say that with an amnesty for all illegal immigrants, migrant workers will start paying taxes and they will value their legal status, helping to bring down the crime rate.

The problem of illegal immigrants has spawned right-wing movements, such as the Movement Against Illegal Immigration, which organises rallies throughout Russia.

The movement’s chief is Aleksandr Belov, who is a former member of the ultranationalist Pamyat.

The group also engaged in organising support to ethnic Russians in a number of high-profile court cases involving crimes allegedly committed by immigrants.

It is also one of the more active political organisations, with about 5,000 members in 30 regions.

However, a court in Moscow banned the organisation in April 2011, given the fact that the group’s activities have been suspended by Moscow Chief Prosecutor Yuri Semin two months before the ruling, which was later appealed.

10 Tuesday, November 26, 2013

RUSSIA BEYOND THE HEADLINES

NIYAZ KARIM

Unravelling the nation’s ethnic myth Sergei Markedonov

I

mmigration policies and xenophobia in Russia are at the forefront of political discussion in the wake of the riots in Moscow’s West Biryulyovo.

The rioting has once again sparked debate about immigration policies, xenophobia and inter-ethnic relations in modern Russia, with the media giving the issues wide coverage.

The discussions being held on the causes and consequences speak loudly about the lack of adequate understanding of the Russian national issue.

The opposition between natives and newcomers has come into sharp focus. Here, an explicit emphasis is placed on ethnic collective responsibility for a crime or offence committed by a single person.

Today, the word “diaspora” has become widely used. People have begun to speak about migration in the same breath as other Russian domestic and foreign policy issues. Such assessments are not just flawed, they also lead to incorrect management and policy decisions.

This or that ethnic group is often presented as a single, monolithic structure – a kind of state within a state. However, such an approach has nothing to do with reality. This is explained by looking at “unity” as a virtual entity. Those Azerbaijanis,

OPINION who came into sharp focus after the riots in Biryulyovo, may be citizens of three countries at the very least – Azerbaijan, Russia or Georgia. They also represent two Muslim denominations (Sunni and Shia).

As for the Dagestan Azerbaijanis, representing the sixth-largest group in the northern Caucasus, they are actually more “native” than some of the capital’s second- and third-generation residents who shout slogans such as “Russia is for Russians, Moscow is for Moscow residents”.

The same applies to some of the Armenians of the Don, Kubani and Stavropol, whose ancestors had settled in this region in the 18th century. Many of them do not speak Armenian, and Russian is

as native a language for them as it is for Moscow, St Petersburg and Novosibirsk residents.

The representatives of these “diasporas” also have a varied social status. Russian businessmen, such as Vagit Alekperov, Alisher Usmanov and Ruben Vardanyan, cannot be compared with traders in the markets and shops, or small businessmen.

It is absurd to believe that there are representatives of the various diasporas in public organisations representing the Azerbaijanis, Georgians or Uzbeks. Many reputable people belong to these groups, but there are no legal, institutional or political mechanisms, nor financial resources, to control the representatives of “their” groups.

Often, a diaspora has several public organisations competing with each other.

However, they are not responsible for the crimes of some people who share their ethnicity and who may well have a different passport or citizenship.

It would be extremely dangerous to replace the principle of individual responsibility with the principle of collective guilt.

This would provoke nationalists to mobilise on a “defensive basis” and demonstrate the inability of the state to regulate issues that are supposed

to be resolved, such as the fight against crime and corruption.

In contrast to the United States or the European Union (France for example, where it experienced strong nationalist-populist sentiments for many years), in our country, external and internal migration is of paramount importance.

This is associated with the movement throughout the country of representatives of different ethnic groups, religions and regions, who have different historical reasons to join Russia, but who are now citizens of the same country.

Yet, the biggest problem is that the residents of Moscow and other major Russian cities are indifferent towards the fundamental differences between the Chechens and Dagestanis, holders of passports of the Russian Federation and Azerbaijan, or those with Uzbek passports who came into the country for temporary jobs.

The continuation of this line of thinking is dangerous, because it can give birth to anti-Russian sentiments in the north Caucasus and the Volga region, and to separatist feelings.

The author is a visiting fellow at the Center for Strategic and International Studies in the US.

Putin is named most powerful by default Yevgeny Shestakov Russian President Vladimir Putin was named the most powerful person of 2013 by the influential Forbes magazine, sparking much debate as to why he deserved the title.

Experts point to the fact that Putin’s top ranking came about because of his perceived status as the most independent international politician, free to decide on what he says and does. Even if it is true, this independence by itself is not supported by tangible yardsticks.

Putin’s Forbes success was primarily because of the apparent weakening of US President Barack Obama, who topped the Forbes list last year.

This year, the US leader was bogged down in drawnout negotiations with Congress amid the budget crisis.

Obama also became entangled in protracted, and not particularly effective, Israeli-Palestinian talks, and failed to make headway in resolving the Syrian crisis. The Kremlin, for its part, persuaded Syrian President Bashar al-Assad to place the country’s chemical weapons under international control.

Another possible reason for Putin’s success is that other candidates were distracted towards the end of the year, or were busy tackling domestic issues. German Chancellor Angela Merkel, who could have given the Russian president a run for his money, spent much of the time involved in

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parliamentary campaigning. Her party won, but proved unable to form a new government on its own. Another possible candidate is Xi Jinping, who became China’s president this year. He spent most of the year overhauling the government system and abstained from high-profile foreign policy steps.

Putin’s top place, therefore, appears logical against the background of his weakened rivals, if we are allowed to apply the term to global political leaders.

Putin’s success may be interpreted not as the victory of one leader over another, but as the US editorial team’s favourable appraisal of Russia’s foreign political course, which is founded on respect for other countries’ sovereign right to have

their own, non-aligned views of global processes.

CIA whistle-blower Edward Snowden also contributed to Putin’s global reputation. What Snowden leaked about the National Security Agency’s surveillance practices led to a crisis of trust in the US, including among Nato-member nations.

The Snowden scandal has certainly dented Obama’s global standing, forcing the US president to publicly admit that the activities of his country’s security services do not entirely comply with the American values. Against this background, Putin’s domestic and foreign policy appear to be more coherent and constructive.

Yevgeny Shestakov is an international affairs editor at Rossiyskaya Gazeta.

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Tuesday, November 26, 2013

11

RUSSIA BEYOND THE HEADLINES

Litvinenko case lingers on Former KGB officer’s murder is in the spotlight seven years after his death, writes Gleb Fedorov

N

ovember 23, 2013, marks the seventh anniversary of the death of Alexander Litvinenko at University College Hospital in London.

The fugitive former KGB and FSB officer, who was granted asylum in Britain in the early 2000s, became a British citizen two weeks before he died.

His father also reported that he had accepted Islam on his death bed – a move he had been pondering in the years before he died – and Muslim prayers were uttered by an imam during his burial.

Litvinenko’s mysterious death proved a major setback for Russian-British relations; the two countries put their cooperaton on hold in many key areas, including the extradition to Russia of criminals who have gone into hiding in Britain.

In Russia, the affair is now all but forgotten. President Vladimir Putin, who was accused by Litvinenko of a number of unsavoury acts, last mentioned the name of the former FSB officer in public in 2007.

However, Litvinenko’s name has resurfaced in the media. In November, it was reported that former Palestinian leader Yasser Arafat was, in fact, poisoned with polonium-210 – the same substance that reportedly killed Litvinenko.

The theories of who poisoned Arafat have yet to offer any substantial clues and the same can be said for Litvinenko’s probe. Judging from the direction the Litvinenko investigation in London has now taken, the chances of the truth being established are receding.

The favoured version of Litvinenko’s death is that he died of radioactive poisoning after drinking tea laced with polonium-210. The poison was allegedly put in Litvinenko’s tea by Andrey Lugovoy, a former FSB officer and now a member of the Russian parliament representing the Liberal-Democratic Party.

Lugovoy denies any involvement.

It is known that on November 1, 2006, Litvinenko met Lugovoy. It is also known that Lugovoy was also diagnosed with a much milder case of polonium poisoning. The physical properties of polonium-210, a source of alpha radiation, are such that it is impossible for the poisoner to avoid being contaminated as well.

In addition, on the same day, Litvinenko also met Mario Scaramella, an Italian security specialist, who himself was later diagnosed with polonium-210 poisoning.

The meeting with Scaramella took place before Lugovoy met Litvinenko at the Pine Bar of the Millennium hotel.

A statement from Britain’s Crown Prosecution Service, declaring Litvinenko died of polonium-210 poisoning, was the only public comment relating to his death. No official post-mortem findings

KONSTANTIN ZAVRAZHIN / RG

Radiation poisoning

Vladimir Putin has said that Alexander Litvinenko did not know any state secrets.

“Alexander Litvinenko was dismissed from the national security agencies; prior to that he served with the escort troops. He did not know any secrets.

“He had been convicted in Russia on abuse of office charges, namely: beating up citizens as they were being taken into custody when he served in the security agencies, and stealing explosives,” the Russian president said.

A QUOTE FROM VLADIMIR PUTIN’S SPEECH IN FEBRUARY 2007

Alexander Litvinenko, seen in hospital in November 2006 after being poisoned with polonium-210, was an archcritic of President Vladimir Putin. He was given asylum in Britain after fleeing Russia. establish the truth. A preliminary hearing as part of the inquest into Litvinenko’s death has been scheduled for this Friday. The purpose of the inquest, which began back in 2006, is to establish the circumstances of Litvinenko’s death. However, the probe became deadlocked in May this year after the coroner, Robert Owen, refused to attach to the case some documents relating to the possible role of the Russian government and to the question of whether Litvinenko’s death could have been prevented.

He went along with British Foreign Minister William Hague, who said that the publication of these documents could prove damaging to Britain’s national interests. Well aware that the removal of important information from the Litvinenko case would make the entire inquest procedure pointless, Owen asked the British government to drop the inquest and hold an open inquiry instead. The inquiry procedure allows officials to hold closed-door meetings in order to discuss classified documents.

But the British Home Office turned down Owen’s request. Britain’s stance forced Lugovoy, seen by the British investigators as the main suspect, to announce he would no longer co-operate with the investigation into Litvinenko’s death.

“I have arrived at a conclusion that the British authorities will not give me an opportunity to prove my innocence, and that I will not get justice in Britain,” Lugovoy said at a press conference in Moscow in the spring of this year.

REUTERS

have been released. Zhores Medvedev, a Russian-British radiobiologist and author of the book Polonium in London, says Litvinenko could not have died of polonium poisoning by drinking tea because polonium does not enter the body via the digestive tract.

“People die of polonium after breathing it in, because it is 100 per cent toxic only if it gets into the body through the lungs,” the scientist says. He reckons the post-mortem on Litvinenko’s body probably found radioactive damage in the lungs, not in the stomach.

After Litvinenko’s death, British police found polonium traces all over London. But that information has not produced any practical results, apart from spreading panic among Londoners.

Judging from the information released into the public domain, the British government appears to have valuable evidence that could help the investigation

GETTY IMAGES/FOTOBANK

CRIME

Yasser Arafat is now thought to have died from polonium poisoning.

“How am I supposed to defend myself, and how am I supposed to refute evidence which the UK government is determined to keep secret. Meanwhile, last year, Lugovoy took a lie detector test with the British Polygraph Association and passed. During the test, Lugovoy said “no” when asked the following questions: “Have you ever done anything that resulted in Alexander Litvinenko’s death?”; “Were you in any way complicit in Litvinenko’s death?”; and “Have you ever handled polonium?”.

How am I supposed to defend myself, and how am I supposed to refute evidence which the UK government is determined to keep secret

12 Tuesday, November 26, 2013

RUSSIA BEYOND THE HEADLINES

Islands of misery and death

T

he sun is shining, the water is crystal clear and a fresh breeze is buffeting the ferry. Ahead, there is a glimpse of virgin forest, small cottages sparkling under the sun. Above is a vast, luminous sky, and all around the limitless blue of the White Sea. With its Unesco-listed monastery and unspoilt forests and lakes, the Solovetsky archipelago is a place of ethereal beauty, and arriving by boat is an uplifting experience. During the 1920s and 1930s, though, this was a journey into a nightmare – and one from which vast numbers never returned.

For centuries, the archipelago’s remote location and isolation from the mainland made it the ideal dumping ground for criminals and political prisoners and, under Soviet rule, the islands acquired the unwelcome distinction of becoming the site of the very first Soviet corrective labour camp, or Gulag.

Named the Solovetsky Lager Osobogo Naznacheniya (SLON), the Solovetsky Special Designation Camp was established in 1923 by decree of Vladimir Lenin as a place where criminals and people who opposed the ideology of the new Soviet state were to be rehabilitated through hard labour.

The SLON camps, located in the “Solovki” and around the White Sea port of Kem, became the early prototype for a web of brutal prisons that spread its sinister tentacles to the farthest corners of the country – a network that dissident writer Aleksandr Solzhenitsyn christened the “Gulag Archipelago”.

Here, the Soviet authorities developed

With its monastery, forests and lakes, Solovetsky Islands are beautiful.

and tested the methods that would come to be synonymous with the concentration camp: security, the organisation of living quarters, rationing, work production norms, and different forms of torture, repression and execution.

Prisoners would be shipped north via a series of transit camps and, on arrival in the Solovki, they would be put to work on building roads and barracks, logging, digging peat or working in a brick factory.

The heart of the Solovetsky camp was the Solovetsky Monastery itself, overlooking the harbour. This 16th-century fortress, the centre of the archipelago’s monastic life for centuries, was closed down after the Bolsheviks seized power and turned it into the administrative

The tranquil spot was the scene of the most savage punishments to take place under the jurisdiction of SLON centre for the newly formed SLON. The chambers of the monastery were put to new uses: monks’ cells were used as prisons, the altars were stripped bare and the stove was used as a kiln for firing bricks.

The monastery was reopened in the early 1990s, and an exhibition in the great halls on the monastery’s upper floor provides a gruesome summary of

LORI/LEGION MEDIA

The White Sea port of Kem, on Solovetsky Island.

PHOTOXPRESS

Beauty of Solovetsky archipelago masks the horror that took place there, writes Alastair Gill

the moral catastrophe that befell the nation during the era of the Gulag: trials, executions, mass graves, smashed churches and the doomed priests who were the first to face the firing squads.

Elsewhere around the archipelago’s sole settlement – known simply as Solovetsky – the visitor will notice signs of its Gulag past everywhere: many of the buildings are cottages and barracks built by prisoners; the network of roads and tracks was largely built using prison labour; and many of the settlement’s modern-day residents are the descendants of men who were imprisoned here.

Behind the monastery is the Gulag Museum. Visitors accustomed to the dusty chambers and faded displays, typical of provincial museums in Russia, will be pleasantly surprised by the bold, contemporary design of the interior and the presentation of the exhibits.

There are photographs, maps, letters, drawings, items of clothing, numerous documents and other items. Of particular interest are the detailed statistics relating to escapes, including seven cases of successful breakouts – all from camps on the mainland or from work expeditions. Most escapes were doomed to failure because escaping the islands was a near-impossibility, but nonetheless attempts were common.

Elsewhere, a series of recollections from prisoners shed light on the grim realities of daily life in the camp. Prisoner Boris Shiryayev was on the logging detail during the winter of 1923.

“The production norm in the forest was to chop down, cut off the boughs and drag to the road 10 tree trunks. Very few could manage this. It often meant having to stay out in the forest in the freezing cold for several hours, or even all night. Many froze. On the work sites, especially at night, they often shot people.” Nearby is a display of the rudimentary saws and axes prisoners were expected to use to carry out this work.

From the Solovetsky settlement, a dirt

track leads through the forest for 12km to Sekirnaya Gora (Hatchet Hill), the highest point in the archipelago at 98 metres above sea level. “Sekirka” is visible from many points around the island, its summit is crowned by the white building of the Ascension skete (a small church), which was the world’s first lighthouse church.

The hill offers sweeping vistas of the lakes and forests of Bolshoi Solovetsky Island and the White Sea, and is undoubtedly one of the archipelago’s most beautiful places. However, this tranquil spot was the scene of some of the most savage punishments to take place under

the jurisdiction of SLON – brutality on a scale that was so excessive it shocked even the Soviet authorities.

The Ascension skete was transformed into an isolation unit for prisoners, to which they could be sent for periods of up to a year for a variety of offences, including breaking camp rules, counterrevolutionary activity, sabotage, refusing to work, conspiring to escape and associating with women.

Behind the Ascension skete, a 294step wooden staircase descends the steep hill. Known as the “Torturers’ Stair”, the steps are the site of one of the cruellest punishments meted out at

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Tuesday, November 26, 2013 13

KOMMERSANT

RUSSIA BEYOND THE HEADLINES

Many of the inmates in Perm 36 were accused of collaborating with the Nazis during the second world war.

TRAVEL

Reminder of a repressive past

wooden building and an area of rubble where the church once stood. Bolshoi Zayatsky Island and Anzer Island are accessible only as part of guided tours.

The Solovetsky camp was closed in 1939, because its proximity to Finland and the unstable political climate in Europe meant its location was no longer suitable. More than 80,000 Soviet citizens passed through SLON from 1923 to 1939, and it is estimated that around half of those died in the camps.

Today, a monument to the victims of the Gulag stands on Moscow’s Lubyanka Square. Tellingly, it is made of a boulder from the Solovetsky Islands.

How do people get to this clandestine archipelago? It should be easy.

After all, planes fly there, ships steer their course there and trains rumble on tracks to the location. However, none of them want to inform people of their destination. And at ticket windows or travel bureaus, whether you are Russian or foreign, employees would be astounded if you were to ask for a ticket to go there.

They know nothing and they’ve never heard of the archipelago. Those who go to the archipelago to administer it get there via the training schools of the Ministry of Internal Affairs.

Those who go there to be guards are conscripted via the military conscription centres. And those who, like you and me, dear reader, go there to die, must get there via arrest.

Find out what to eat, where to go and what to bring as a gift

ALEKSANDR SOLZHENITSYN THE GULAG ARCHIPELAGO

Perm 36 is the unofficial name of the Soviet high-security forced labour colony for those convicted of particularly heinous crimes against the state. It is located in the settlement of Kuchino in the Chusovsky region of Perm Oblast, and it is now a museum.

The main contingent of inmates comprised members of the so-called punitive expeditions, who served on the side of Nazi Germany during the great patriotic war. Perm 36 also housed political prisoners. The colony was closed down in 1988.

In 1992, the decision was taken to turn it into a museum. Four years later, the Perm 36 Museum of History of Political Repression welcomed its first visitors.

As the only such museum in Russia, Perm 36 includes preserved and reconstructed facilities that existed at the camp for political prisoners, where dissidents, dissenters, human rights activists, opponents of the communist regime, champions of national independence for enslaved people, politicians, public figures, writers, scientists — anyone whose ideas un-

dermined the regime – were held in wretched conditions, suffered and died.

Some of the high-security camp buildings are still standing, including one of the four barracks built in 1946, an isolation ward, medical unit, bathhouse with laundry facilities, the internal camp headquarters, a water tower and toilet.

The industrial zone – the production

Perm 36 was a labour colony for anyone who was deemed a threat to the regime area where prisoners worked – still houses a smithery, sawmill, stokehold, control tower, diesel power plant, toilet and watch cabin. In 2004, the World Monuments Fund included Perm 36 in its Watch List of 100 Most Endangered Sites. The process has begun to grant the museum a Unesco World Heritage Site status. rbth.ru/27913

GETTY IMAGES/FOTOBANK

GETTY IMAGES/FOTOBANK

Sekirka – prisoners would be tied to a log and then pushed down the stairs.

At the foot of the Torturers’ Stair, a large cross has been erected in the forest to commemorate those who perished here.

In 2005, excavations were carried out at the foot of the hill and the discovery of a number of mass graves testifies to the site’s grisly past.

There are a number of other Gulag sites in the archipelago, but they are harder to reach.

On Bolshaya Muksalma Island are the remains of Sergeyev skete, where women prisoners were confined. Today, all that remains is an eerily derelict

KONSTANTIN ZAVRAZHIN / RG

Ricardo Marquina

Conditions were harsh for those unfortunate enough to be sent to the labour camp.

Many inmates did not survive the cold conditions in the high-security camp.

14 Tuesday, November 26, 2013

RUSSIA BEYOND THE HEADLINES

Stylish evolution Some of the country’s most glamorous women are inspiring a global boom in Russian clothing, writes Inna Fedorova AP

I

n the most recent issue of Vanity Fair, a celebration of 100 years of the magazine, the Blackglama brand took out a four-page narrative advertisement, featuring a Julie Christie look-alike wearing a black fur hood.

The setting of the advertisement could only be described as a Doctor Zhivago dreamscape: A once-opulent Siberian estate palace with the model, poised to resemble Zhivago’s lover, Lara, leaning on a marble fireplace dusted with snow and ice.

Interest in Russian culture and fashion in the West has historically gone through peaks and troughs, but it never fades for long. It seems that a few times a decade, fashionistas turn to Russia, or at least the Western concept of Russia, for inspiration.

In the 1990s, Valentin Yudashkin carried the style with his fabulous Faberge egg dresses. In the 2000s, Denis Simachev brought out dresses inspired by the blue-and-white Gzhel porcelain and fur hats.

Today’s “Russian moment” is partially driven by the increased visibility on the international scene of women such as Dasha Zhukova, a patron of the arts and partner of billionaire Roman Abramovich, known for her sense of style.

Elena Perminova, partner of billionaire Alexander Lebedev, and Miroslava Duma, fashion consultant and the former editor of the Russian edition of Harper’s Bazaar, are prominent not only on the streets of London and Paris, but also on social media.

“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, and their willingness to take risks with their clothes and embrace the high-end is sure to filter down through not only the designers’ imagination, but to the consumers as well,” says Vanessa Friedman, international style guru and long-standing fashion editor at the Financial Times.

And there are other pop culture influences. Last year’s film Anna Karenina may not have been a big box-office hit, but its intense and sumptuous style had a huge fashion impact on couture and mass-market designers, including Banana Republic’s successful “Anna Karenina” collection.

American Friedman says that “Russian street style” and designer Ulyana Sergeenko are the biggest Russian influences on fashion today. Suzy Menkes in T magazine, of The New York Times, says of the Russian street 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 pantsuits and the colour black, appeared at the premiere of the film August: Osage County in a red Dolce & Gabbana dress that offered a nod to traditional Russian fashion. The dress’s red lace, Dolman sleeves and short hemline, coupled with Roberts’ vintage hairstyle, recalled the 1983 film Gorky Park.

Last year, pop diva Lady Gaga appeared in public in outfits by Sergeen-

ko that offered a contemporary riff on Anna Karenina mixed with Eugene Onegin’s Tatyana.

What exactly, though, is Russian style?

The basics include feminine silhouettes with lush skirts (often long), an emphasised waistline, fur hats, scarves, floral prints, lace and embroidery. Elements are also taken from Russian folk art. Popular sources of inspiration include Pavlovsky Posad scarves, which are large with bright floral patterns and fringes; and Khokhloma designs – the red and gold painting of flowers and vegetables common on Russian lacquerware.

Historically, Russian culture becomes popular internationally whenever there are upheavals in Russia, whether it is a change of ruler, war, revolution or perestroika. In the 18th century, Peter the Great stirred the imaginations of Europeans and brought European influence into Russian culture, bringing the two closer together. Interest in Russian style came back with full force in Europe in 1909, with the arrival of Serge Diaghilev’s self exiled “Ballets Russes” in Paris.

Two years later, famous French fashion designer Paul Poiret introduced Ukrainian embroidery and Cossack boots into Parisian fashion after a trip to Russia. After the Russian Revolution of 1917, immigration from the former Russian empire to France, Germany, the United States and Britain generated an interest for all things Russian.

In this way, the Boyarsky collar (a tall collar that stands straight up), the northern kokoshnik (a traditional Russian headdress) and shawls with tassels became firmly entrenched in European fashion.

Russian fashionistas have become favourite subjects of style chroniclers from New York to Milan

Dolce & Gabbana spring/summer 2013 collection

Traditional designs SHUTTERSTOCK/LEGION-MEDIA (3)

Even Julia Roberts (left) and Lady Gaga (right) are influenced by Russian style.

PHOTOSHOT/VOSTOCK-PHOTO (2)

GETTY IMAGES/FOTOBANK

FASHION

Khokhloma This is a hand-painted style, dating from the 17th century, and is one of the bestknown expressions of Russian folk art; it is known for its vivid flower patterns in red and gold on a black background.

Pavlovsky Posad These are colourful woollen shawls produced at the Pavlovo Posad factory, just 68km from Moscow. A Pavlovsky shawl is of artistic quality, with patterns having a 3D effect.

Gzhel This blue-and-white porcelain takes its name from the village of Gzhel, not far from Moscow, where it has been produced since 1802. Gzhel designs are available on vases and small animals sculptures, and tea sets.

Tuesday, November 26, 2013 15

RUSSIA BEYOND THE HEADLINES

Fashion for revolutions

F

rom red armbands to Budenovka peaked hats, Russia’s fashionistas have set revolutionary trends over the past century – mostly inspired by actual revolutions.

Indeed, Russian’s fashion for revolution is reflected not only in leftist political views or mass rallies but also in revolutionary fashion, which has its own tradition and logic. What did people wear in Russia after deposing the tsarist regime and during the civil war that followed the revolution? They wore something outrageous and wonderful.

Some were marching enthusiastically towards communism, others were mourning the bygone era. All of them had been wrenched violently away from the old way of life. The new ways had yet to replace the old.

STYLES The workers and peasants who became fighters of the Red Army in February 1918 were a motley and colourful crew. They joined the red banners in whatever outfits they could afford when the war came.

The new Bolshevik government was too cash-strapped to provide uniforms for its army. Soldiers wore plain civilian clothes with only a red armband to distinguish themselves from the crowd.

When there was no red armband, simple red items of clothing sufficed.

A Red Army soldier described his unit arriving in town: “We’ve just had a veritable Red Brigade pass through the city.

We dressed in red from head to heel with white high boots, looking for all the world like some new tribe of redskins.”

Some of the Red Army units were outfitted in the tsarist uniforms seized from the imperial Russian army’s depots. As a result, the Red Army cavalry wore the same uniforms as the deposed tsar’s own mounted regiments. On one occasion, Red Army infantry chased a newly arrived Red Army unit out of a

ITAR-TASS

Red Army uniforms became iconic symbols of the nation’s history and culture, writes Inna Fedorova

The Budenovka peaked hats became an iconic design.

Red-held town after mistaking them for the Whites.

Meanwhile, members of the White Guard, which fought for the tsar, also tended to look more like highwaymen than representatives of his imperial majesty’s forces. The rich farmers, who were so loathed by the communists, preferred simple farmer’s shirts, loose breeches,

felt boots and sheepskin jackets.

The Bolshevik government fully realised that the Red Army, and the whole country, needed new symbols. In 1918, it announced a competition for a new army and navy uniform design. rbth.ru/ 31467

There are more than 50 theatres in Moscow. Some, such as the Bolshoi, are world-famous, and their new productions are always an event in the city’s cultural life. Others are little-known, but unique in their own way. Several of them, such as the Moscow English Theatre, cater specifically to the Russian capital’s English-speaking community. The Pyotr Fomenko Theatre is reaching out to non-Russian speakers through the innovative use of technology.

Theatre buffs are bound to find something to their liking in the Russian capital, whether they are visiting for a few days or making Moscow their home for a few years. Here are just a few of the offerings available on stage this winter.

Theatres offering special treats to those visiting Moscow – no knowledge of Russian is required

F O R T H E AT R E L O V E R S , M O S C O W H A S A L O T T O O F F E R — F R O M C L A S S I C A L O P E R A , A N D S I LV E R - A G E R U S S I A N D R A M A T O B R I T I S H C O M E D Y

M O S C O W E N G L I S H T H E AT R E The Moscow English Theatre opened in March, thanks to the efforts of Jonathan Bex, a professional actor and graduate of the Drama Studio London, who resides in Moscow. The theatre, which only casts foreigners in its productions, chooses plays that have enjoyed success in Britain.

On November 30, the Moscow English Theatre will present another performance of Educating Rita. The play, by British playwright Willy Russell, is directed by Gillian King, and stars Bex as Frank and Emma Dallow as Rita, a hairdresser who decides to make some changes in her life. She decides to get an education and she is accepted into a correspon-

dence course, where her tutor is Frank Bryant, who is more fond of whisky than his students. But Rita proves an eager and intelligent student, and he finds it highly interesting to converse with Rita about literature. As he nurtures her literary skills, they eventually fall in love. The play clearly echoes George Bernard Shaw’s Pygmalion, but Rita is not an object of an experiment.

The most important thing for her is the ability to choose. The play is essentially about human relationships, and the way people can change, and how these changes can affect others.

Rita’s decision about which path her life should take is left unresolved.

P YO T R F O M E N KO T H E AT R E It’s hardly surprising that many visitors to Moscow limit themselves to opera or ballet, rather than trying to understand classical Russian drama, in Russian. The Pytor Fomenko Theatre, however, has found a solution for those who want to see Anton Chekhov in Moscow, but don’t speak Russian. Four of the theatre’s productions, based on Russian classics, are now available with subtitles. The plays are Wolves and Sheep, based on a comedy

by Alexander Ostrovsky; Three Sisters, based on a Chekhov play; and two stage adaptations of Leo Tolstoy: Family Happiness and War and Peace: the beginning of the novel. The plays are subtitled by native

speakers and specialists in literary translation.

Theatregoers can pick up a tablet when they arrive at the venue.

There is no charge for the service, but guests are requested to leave a passport or other types of identification as a security deposit.

The tablets display white text on a black background, so there is little light spillage to distract other theatregoers. The theatre is now working on a new version of the software that will allow spectators to use smartphones and tablets after installing a free app. There are also plans to offer a dubbed soundtrack via headphones. More information on the programme can be found at http://fomenko.theatre.ru/.

B O L S H O I T H E AT R E The Bolshoi Theatre is a must-see attraction for any tourist to Moscow. Pyotr Tchaikovsky’s masterpiece, Eugene Onegin, based on the novel

by Alexander Pushkin, has long been one of Bolshoi’s most popular offerings. Since it was first performed in 1921, the production has undergone a number of changes, but it has a strong place in the repertoire. The present Bolshoi staging is by Dmitry Chernyakov; it opened the 2006–2007 season.

The Bolshoi season also includes the classic ballets: The Nutcracker and Ivan the Terrible, both in productions by Yuri Grigorovich; and Jewels, George Balanchine’s choreographic masterpiece as interpreted

by Alyona Pikalova.

In addition to Russian classics, the Bolshoi is also staging La Traviata as part of the celebrations of the 200th anniversary of Giuseppe Verdi’s birth. The production, by American director Francesca Zambello, is the theatre’s 11th interpretation of the opera. Francesca Zambello’s masterful use of costumes and props has helped her to combine an authentic 19th century atmosphere with a very modern way of storytelling that, nevertheless, does not detract from Verdi’s masterpiece.

Bolshoi tickets can be bought online. More information on the schedule for upcoming productions and ticket prices can be found at the theatre’s website, http://bolshoi.ru/en/

16 Tuesday, November 26, 2013

RUSSIA BEYOND THE HEADLINES

‘Da’ to the language As economic ties grow, Hongkongers are learning to speak Russian, writes Brian Yeung

R

EDUCATION

There is growing interest among Hongkongers to learn to speak Russian.

Russian is a language of emerging importance for Hongkongers And yet he believes cultural programmes, social networks and the increasing number of Russian-speaking tourists bring opportunities to practise the language.

Crystal Lai, who is learning Russian with Russian Culture Association, says price and location are the two main considerations when choosing a Russian language course. Lai adds that having a Chinese instructor is an advantage.

“My teacher understands my needs and obstacles in learning Russian language as a Chinese speaker,” she says.

Chan says he believes learning the language opens “a portal to the rich Russian culture”.

PRESS PHOTO

ganised by language institutes in Moscow, Saint Petersburg and Kiev. Freda Wan, a student at the Russian Language Centre who took summer courses in Moscow last year, is preparing to volunteer for the Olympics News Service at the Sochi Winter Olympics in February next year.

“Several important international events will take place in Russia and Russian-speaking countries. The Winter Olympics in Sochi and the World Expo 2017 in Kazakhstan are some examples,” Wan says.

“I believe that the region is rising in economic and political stature. Learning the language would be key to unlocking opportunities.”

The Hong Kong government has the Continuing Education Fund, which subsidises adults to pursue continuing education and training courses.

The fund covers language courses in English, Putonghua, French, German, Japanese, Korean, Spanish and Italian, but not Russian.

“Russian is a language of emerging importance for Hongkongers with an international perspective.

“It would be ideal if the Continuing Education Fund can also support the learning of this foreign language,” Wan says.

Enoch Chan, a beginner student, says learning Russian is “one of the hardest things” he has done.

He says “declensions” (variations of words) and “flexible word order” are the two obstacles he faces.

Dmitry Ivanov says the “lack of exposure to the Russian language in Hong Kong” has been an obstacle.

PRESS PHOTO

ussian is emerging as a fashionable foreign language to learn, according to schools in Hong Kong.

Experts believe strengthening economic ties between Russia and Hong Kong have been a driving force behind the growing appetite for learning Russian as a foreign language.

“The majority of my students want to speak Russian for business purposes, as Russia is becoming more open to the international markets and many companies are starting their businesses with Russia,” says Elena Filenko, Russian language instructor at the University of Hong Kong ’s School of Professional and Continuing Education (HKU SPACE).

“Economic ties between Russia and Hong Kong are growing fast, [and] the importance of the Russian language in Hong Kong is rapidly increasing.”

Despite only 800 Russians living in the city, there were 14,287 Russian tourists in September, up 18 per cent compared with a year ago.

The Hong Kong Trade Development Council says Hong Kong’s total exports to Russia rose by 12 per cent to US$1.3 billion in the first seven months of this year.

Dmitry Ivanov, instructor at the Russian Language Centre, says the number of students is growing steadily, with a 10 per cent increase this year.

Ivanov adds that curiosity about Russian culture and personal connections to Russia are two common reasons for learning the language among his students.

While HKU SPACE highlights “an inclusive and personalised approach” as its edge, the Russian Language Centre organises cultural programmes, such as movie nights, cooking classes and book clubs, to deepen its students’ understanding of the language and culture.

The centre also co-operates with the Russkiy Mir Foundation and the Orthodox Brotherhood of Apostles Saints Peter and Paul in providing free courses for children and full-time students.

Learning Russian can also be done through a private tutor, via lessons on Skype, and short-term programmes or-

Dmitry Ivanov (right) is Enoch Chan’s Russian-language teacher.

He hopes to one day work in a multicultural organisation or intelligence agency armed with his knowledge of Russian and Chinese.

Jeanette Yang, who has been learning Russian for nearly five years, says she wants to understand secret Russian

codes that she came across in her study of world history. “If I could read and speak fluently in Russian, I would travel across Russia, the romantic and moody wonderland, with the original version of Leo Tolstoy and Anton Chekhov’s literary masterpieces,” she says.

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