RBTH for The Telegraph #8

Tuesday, August 26, 2014

The official media partner for the Year of Russian Culture in the UK ukrussia2014.co.uk

Politics & Society

Ukraine crisis

The $50bn battle over Yukos

Escaping from hell

Moscow to appeal after court backs former shareholders in oil giant

Thousands flee to Russia after months of shelling REUTERS

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THE TRUTH MUST BE REVEALED ‘Those responsible for downing flight MH17 will be brought to justice’ ‘The tit-for-tat vicious circle of sanctions must be stopped’ ‘We need a government of national unity for Ukraine’ PHOTOSHOT/VOSTOCK-PHOTO

In an exclusive interview with RBTH on the Ukraine crisis, Russian Foreign Minister Sergei Lavrov says the highest priority must be an unconditional ceasefire to end the suffering of civilians. He also warns that trying to settle disputes by imposing unilateral sanctions threatens international peace and stability

sions threaten international peace and stability. Such attempts are counter-productive and contradict the norms and principles of international law.

It is absolutely unacceptable to talk to Russia – or anyone for that matter - in the language of ultimatums and coercive measures. Our response to unilateral steps by the United States, EU and some other countries has been balanced and in line with the rights and obligations of Russia under international treaties, including the World Trade Organisation.

But sanctions continue to be threatened and implemented. Will Russia respond to new measures against it?

There has been repeated speculation, particularly in the Western media, that Russian troops could be deployed in Ukraine and even that they have already crossed the border into Ukrainian territory. Is such an action possible in your view?

Unfortunately, the mass media continue to spread rumours, distorted information and even outright lies.

Recently there were claims by Ukraine that its artillery destroyed an armoured column that had allegedly crossed from Russia into Ukraine, and the British media even said they witnessed the incursion.

No evidence, however, was presented, and even the US State Department could not confirm the incident.

We view all such stories as part of an information war.

But a real war is happening on the ground. What can Russia do to resolve this crisis?

Our stand is crystal-clear – we want peace in Ukraine, which can only be attained through broad national dialogue in which all regions and all political forces of the country must participate.

This is what Russia, the US, the EU and Ukraine agreed in Geneva on April 17. At the recent meeting in Berlin of the foreign ministers of Russia, Germany, France and Ukraine, no one objected to confirming the Geneva Statement. The point is for Kiev to stop war games and to abandon the illusion that the deep crisis in Ukraine can be resolved by winning the war against your own people. It is deeply saddening that the US and the EU continue blindly to support anything Kiev does. Let’s recall another doc-

ument that Kiev and the West try to forget. On February 21, an agreement on settling the crisis was signed by Viktor Yanukovych, Arseni Yatsenyuk, Vitali Klitschko and Oleg Tyagnibok and witnessed by the foreign ministers of France, Germany and Poland. They now say the agreement “has been superseded by events” because [former Ukraine president] Mr Yanukovych left the country. But let me remind my colleagues that the February 21 agreement listed as the number-one priority the commitment to a government of national unity. Does this goal depend on the personality of Mr Yanukovych? Isn’t national unity a universal principle for any country that wants to stay whole? Instead of honouring this commitment, the opposition leaders staged an armed coup and publicly declared they had created a “government of the winners”. Unfortunately, the logic of “winner takes all” remains the thrust of Kiev’s actions, resulting in thousands of victims among civilians, hundreds of thousands of refugees and displaced persons, as well as an almost totally destroyed social infrastructure in many cities and towns in eastern Ukraine.

There has been much talk of a new Cold War in relations between the West and Russia, with the United States and the European Union having imposed economic sanctions. If they pursue a further hardening of sanctions, how can Russia respond?

Attempts to settle crises by unilateral sanctions outside the framework of UN Security Council deci-

It is not at all our choice, but there should be no doubt that we will do whatever is necessary to protect our legitimate interests, including the interests of national security in all its dimensions. That was the basis of our decision to restrict, for the duration of one year, the import of agricultural and food products from several states that had adopted sectoral economic sanctions against Russia.

But Russia does not want to proceed along the road of escalation. We hope that the US, the European Union and others heed the voice of reason and put an end to this meaningless tit-for-tat vicious circle which they started.

How does Russia view the investigation into the crash of flight MH17 in eastern Ukraine?

Russia does not want to proceed along the road of escalation.

We hope that the US, the EU and others heed the voice of reason

The downing of the Malaysian plane is a shocking tragedy. Since it happened on July 17, we have been calling for an open and objective international investigation. It is impossible to explain why the Ukrainian authorities, who bear full responsibility for the safety of international flights over the territory of their country, had not closed the airspace over the area of combat.

Resolution 2166 adopted by the UN Security Council on July 21 provides for a full, thorough and independent investigation into the incident in accordance with international civil aviation guidelines.

Unfortunately, from the very beginning we have been witnessing attempts to conceal evidence and to hinder the implementation of that resolution. The

demand for a ceasefire in the area of the crash was ignored by the Ukrainian authorities for more than 10 days, and our proposal to call for full respect of Resolution 2166 was blocked in the Security Council by the US, UK and Lithuania. At the same time, those very countries and some others started spreading unfounded accusations against Russia.

Let me reiterate that Russia is fully committed to the international investigation in full compliance with Resolution 2166. We would like to see the International Civil Aviation Organisation (ICAO) take a more active role in the matter, and we believe that the UN and ICAO should co-ordinate international efforts to ensure early and convincing results of the investigation. Russia is the only country which officially presented to the international community the data relating to the incident as received through our space-monitoring capacity. Others are still to provide the evidence they possess.

Do you think all of the evidence related to the crash will be made available so that investigators can establish exactly what happened?

We formally put forward a number of questions on our part that remain unanswered. For example, where are the transcripts of exchange between the pilots of MH17 and the Ukrainian air controllers and why were they not presented to the international community? Why did the controllers instruct the flight to enter the conflict zone? What was a Ukrainian air force plane doing in the near-vicinity of the Malaysian Boeing right before the incident?

What is happening to the wreckage at the crash site and why has it not been thoroughly examined by the appropriate international investigating authorities? To what extent can an objective and independent investigation be assured without safe and unimpeded access of experts to the crash site, where Kiev continues its war activity in violation of Resolution 2166? And where is the documented evidence of claims by the US officials regarding the causes of the downing of the aircraft? We hope to get answers to these and other questions both from the states that CONTINUED ON PAGE 2

Read on RBTH.CO.UK: The downing of flight MH17: What ordinary Russians think rbth.co.uk/38469

Financial records reveal $20 billion in Rosneft accounts rbth.co.uk/39161

How will restaurateurs cope with the sanctions? rbth.co.uk/38937

Politics & Society P2_Tuesday, August 26, 2014_www.rbth.co.uk_THIS SUPPLEMENT IS SPONSORED BY ROSSIYSKAYA GAZETA

Yukos: will Russia pay $50bn?

The truth must be revealed

Legal ruling Minister attacks court backing for shareholders as ‘lacking common sense’

CONTINUED FROM PAGE 1

IGOR ROZIN

took the leading role in the international investigation and from those who made unsubstantiated public statements. The truth must be revealed. That was our strong demand at the recent meeting of the UN Security Council, while some member states showed little enthusiasm in pursuing the investigation in a transparent and accountable manner.

We must not allow the investigation of the MH17 crash to be manipulated into oblivion, which has happened to investigations into many Ukrainian tragedies, including the sniper assault on civilians in Kiev in February, massacres in Odessa and Marioupol in May and others. We are determined to insist on bringing to justice all those who bear responsibility for these crimes.

Former shareholders ofYukos, which was once Russia’s largest oil and gas company, have won a $50bn judgment against the Russian government in the Permanent Court of Arbitration in The Hague.

Russia was ordered to return around $50bn to the former shareholders, a sum that represents the 70pc of the company that belonged to the plaintiffs, as well as uncollected dividends with a discount for risk. If Russia fails to overturn the ruling on appeal, any of its overseas assets that are not being used for representational purposes may be seized at the plaintiffs’ request.

The amount is essentially compensation for the bankruptcy of the company by Russian authorities and the sale of its assets in 2004.

The panel of judges ruled that Russia had violated the Energy Charter Treaty when it de facto expropriated the oil company from its legitimate owners by putting the oil company Yuganskneftegaz, a key asset of Yukos, under the control of state oil major Rosneft.

Yukos was owned at that time by Mikhail Khodorkovsky, then Russia’s richest man, who was arrested in 2003 and convicted of fraud and tax evasion in 2005. He served 10 years in jail and was pardoned by President Vladimir Putin in December last year.

Vasily Nebenzya, the Russian Deputy Foreign Minister, accused the Dutch court of reaching a“politically motivated”judgment against Russia. He told Itar-Tass that“the court failed to approach this dispute with the common sense required from judges in these situations”,adding:“Instead of an objective and unbiased consideration of the matter, the court panel was guided by situational considerations in its actions and, as a result, passed a politically motivated decision.”

The Ministry of Finance said that Russia would appeal against last month’s ruling in the Dutch courts, arguing that Russia had not ratified the energy charter, but only signed a merger agreement, and that therefore The Hague did not have jurisdiction. The court ruled in 2009 that signing the treaty was sufficient.

The ruling is bad news for Russia’s economy. The Hague tribunal named the energy giant Rosneft and gas monopoly Gazprom as beneficiaries of the Yukos bankruptcy, which means that their overseas assets could be up for grabs.

“Since Gazprom and Rosneft were involved

REUTERS

SPECIAL TO RBTH

in the case as co-defendants of the Russian Federation, the decision to recover $50bn also extends to them,” said Dmitry Gorbatenko, a lawyer at Pleshakov, Ushkalov, and Partners.

According to Mr Gorbatenko, this means it is possible to seek payment of compensation at the expense of Gazprom and Rosneft, and in the worst case to seize their assets abroad. Alexei Kozlov, chief analyst at the UFC investment company, also thought there was a political element in the ruling.“Certainly, the decision has a large political component. For Russian companies, the court’s decision lies in the general field of countering Russian business activities,” he said.

Vladislav Tsepkov, senior partner at Urlov and Partners, said Russia had until January 15 next year to pay. Then the judgment would begin to accrue interest.

There are precedents for the seizure of Russian assets following judgments made by foreign courts. The best-known case was in 1993, when a Luxembourg court upheld a $300m claim against Russia filed by the Swiss firm Noga. For several years the company seized Russian assets, including warplanes, an exhibition of paintings and money from the for-

THE NUMBERS

50

billion dollars is the highest sum awarded to any organisation in a judgment by the Permanent Court of Arbitration

15

January 2015 is the deadline for Russia to make payment. After this, further financial penalties are imposed

10

pc of Russia’s annual budget would be needed to pay the compensation ordered by the court

New weapon for war on Ebola

ROMAN VOROBIEV INTERFAX

The Russian hi-tech company Aviation Equipment Holding is to deliver unique face masks to Africa to help prevent the spread of Ebola and other viruses.

The masks have been developed and tested by Aviation Equipment Holding’s Textile Material Research Institute, said Maxim Kuzyuk, Aviation’s general director.

He added: “The masks have been presented to the Russian Defence Ministry’s main military medical department to be tested in Ebola-stricken areas of Africa.”

The masks use innovative material containing bactericide and bacteriostatic effects that last for more than 360 hours, 180 times longer than any other masks.

They offer 100pc filtration of microbes. The textile in the masks wards off microorganisms on its surface and suppresses their growth and reproduction. Local

residents could be protected from the Ebola virus by the masks, which have three layers and can withstand washing up to 20 times, according to Aviation Equipment Holding, which is part of the Rostec state corporation.

Aviation manufactures oxygen inhalers, Kashtan anti-shock costumes for prehospital aid, haemostatic equipment, endoscopic systems and other products, including protective masks, which it supplies to Moscow hospitals.

“If the masks successfully pass examinations and tests, we will be ready to start mass production and deliveries of the individual protective masks to African populations, rescue services and medical personnel operating in the Ebola-stricken zone in Africa,” the company said.

Russian virologists are providing advice in Guinea on the Ebola outbreak, which has claimed more than 1,100 lives in West Africa so far. There have been more than 2,000 suspected cases in Nigeria, Liberia, Sierra Leone and Guinea. There is no vaccine against the disease.

A groundbreaking 3D model of the rod-shaped Ebola virus was created by Russian specialists.

Power games: oil and gas giant Yukos was made bankrupt and its assets sold in 2004

Golden era for the nation’s reserves VIKTOR ASTAFIEV RBTH

REUTERS

Epidemic Company develops protective mask that could fight the spread of virus

eign accounts of state-owned companies. However, in 2009 the US Federal Court of Appeal rejected Noga’s claim against Russia.

The German entrepreneur Franz Sedelmayer won about €2m from Russia in a Stockholm arbitration court in 1998. Compensation was a long time coming, however. In 2010, the court seized the Russian trade mission building in Sweden and the building was sold at auction in February 2014, with the proceeds being paid to Mr Sedelmayer.

According to Mr Gorbatenko, seizures may be made of “absolutely any asset belonging to the Russian Federation that is not covered by state immunity”.

Vitaly Tsvetkov, head of the information analysis department at the Russian consulting firm Gradient Alpha, said that foreign property covered by state immunity included embassies, consulates, and representative offices.

He said that Russia did not have $50bn of commercial property outside the country.

“The foreign assets that belong to state-owned companies are under threat, but there has been no legal precedent to seize this type of real estate,” Mr Tsvetkov said. “Litigation over these assets will be lengthy and complicated.”

Hi-tech health: a Russian invention will help save lives

Russia now has the world’s sixth-largest gold reserves, a total of 1,094.7 tonnes, according to a World Gold Council (WGC) study. The bullion fund is now larger than China’s, whose gold reserves are 1,054.1 tonnes.

“The reasons why the Bank of Russia is increasing gold reserves are obvious: the regulator is reducing the risks over possible sanctions and diversifying its investment, said Pavel Simonenko, who is head of CIS sales at Dukascopy Bank SA. According to Mr Simonenko, the danger of sanctions affecting foreign exchange operations in dollars and euros will force the Russian Central Bank to further diversify its assets, so that gold may make up 15pc of total reserves by the end of this year.

The WGC reported that Russia’s gold reserves had increased by 54 tonnes over six months, the biggest rise among all countries.

The world's gold-reserve leaders – the US, Germany, Italy, France and Spain – did not buy gold and Germany sold 2.9 tonnes.

Russia’s Central Bank said that the share of foreign currencies in the country’s reserves fell from 90 to 87.5pc in the same period.

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The cost in human life of this conflict has already been high and tens of thousands of people have been displaced because of the fighting.

How do you view the humanitarian situation in Ukraine?

The humanitarian situation in the Lugansk and Donetsk regions of Ukraine is catastrophic and continues to deteriorate.

And it is not only our view. This assessment is widely shared in the United Nations, including the UN Office for the Co-ordination of Humanitarian Affairs, in the International Committee of the Red Cross (ICRC) and in the Council of Europe.

More than 2,000 people have been killed and more than 5,000 wounded, many of them children. There is an acute shortage of food and medicine and growing risk of outbreaks of infectious diseases. More than 200,000 people in Lugansk are deprived of electricity, drinking water and means of communication.

A lot of people have fled the area of conflict.

Since April 1, nearly 775,000 Ukrainian citizens entered the Russian territory, and 190,000 Ukrainians applied for a refugee status in Russia. Temporary shelters have been put up in our country to accommodate tens of thousands of refugees.

Under these circumstances it is crucial to ensure the immediate supply of humanitarian aid to the people of south-eastern Ukraine.

Humanitarian issues must bring together all people who act in good faith trying to alleviate the suffering of people in dire need – especially women, children and the elderly.

But Russia has been sending aid. What happened with the humanitarian convoy?

Russia, in co-operation with the ICRC, sent a humanitarian convoy of around 300 trucks carrying 2,000 tons of medical supplies, food, sleeping bags, power generators and other basic commodities. The convoy was ready to move as early as August 17, but was delayed primarily due to procrastination tactics employed by the Kiev authorities, though they had recognised the cargo as humanitarian aid under the auspices of the ICRC, and sent Ukrainian border guards and customs officers to monitor all procedures at the Russian checkpoint near Donetsk.

We urge the Ukrainian government to deliver on its promises and to facilitate the safe and unhindered passage of future humanitarian assistance. We also hope that our partners in the West and international organisations fully understand the magnitude of the disaster and contribute in practical terms to meeting the basic needs of the civilian population in south-eastern Ukraine.

But the central task in the efforts to stop the suffering of civilians in Ukraine remains, of course, reaching a ceasefire.

People are dying, and the civilian infrastructure is being destroyed every day.

We firmly believe that a ceasefire must be unconditional, and open the way for serious political dialogue and a constitutional reform process with the participation of all regions and all the political constituencies of Ukraine, as agreed by the EU, Russia, Ukraine and the US in the Geneva Statement of April 17, 2014.

Business & Finance www.rbth.co.uk_Tuesday, August 26, 2014_P3

The current year is likely to end on a positive note for many Russian food producers

Punitive measures could spark Russian food boom

VIKTOR ASTAFIEV RBTH

Sanctions on food products have spurred investors to turn their attention towards Russian agricultural companies, whose stocks have risen by 30-40pc. Experts say that this is speculative growth but in the coming years these manufacturers could attract foreign investment.

Explosive shares growth Just a day after the Russian government announced a ban on imports of certain foods from the US, the EU, Australia, Canada and Norway, shares of Russian food companies

REUTERS

Markets Analysts predict big gains for agricultural investors as domestic producers seek to replace banned imports

showed explosive growth: the agro-holding Razgulyay rose by 40pc, the grain giant Rusgrain by 36pc, fish producer Russkoe More by 19pc, and meat processing specialists Cherkizovo by 7pc, said the head of the analytical department at Russ-Invest, Dmitry Bedenkov.

“Already, many Russian agricultural enterprises have declared their readiness to replace the markets for the production of those goods on which an embargo was placed,” said Pavel Simonenko, director of sales for Dukascopy Bank SA in the CIS countries. He said Razgulyay may increase turnover in 2015 by 120pc – up to 60 billion roubles ($1.6bn). “For strategic investors, buying agricultural holdings shares would be more than a good investment: the annual yield of such investments can be up to 55-60pc in two to three years.”

The largest producer and importer of fish in Russia, Russkoe More, plans to increase production and delivery of products from new regions, including Asia, Turkey and

Food wars: shares in Russian food firms have risen sharply since sanctions were announced

Latin America, the company’s press service told RBTH. In particular, despite the ban on the importation of fish products from Norway, the group continues shipment of chilled and frozen salmon at the expense of its own fish farmed in the Murmansk region, as well as fish from Chile. The other major fish producer, GlavTorgProdukt, is to increase investment in the cultivation of sturgeon and salmon. By the end of this year, it plans to open a new fish processing plant in Vyborg, just over 500 miles from Moscow.

Food shortages and price rises Sceptics question whether the sanctions will produce benefits for Russia, arguing that they could instead lead to shortages of goods and increased prices for consumers if Russian companies are unable to fill the gap in demand. The import ban has also been in place for only a year so far, which may deter companies from making significant

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investments in production. “Depending on the way the public debate revolves around the new sanctions, Russian agro-industrial shares can still grow a bit, but the first psychological boost has actually worked out.

The real economic impact will depend on how quickly substitutes can be found for suppliers who have fallen under sanctions,” said Ilya Balakirev, chief analyst at UFS IC. He believes the year is likely to end on a positive note for many food producers, but it is too early to be optimistic for next year.

“Most companies in the sector, apart from the sanctions and the possible positive effects, do not look too good,” says Mr Balakirev. He thinks foreign investors will be more interested in direct investment in Russian agriculture. “It will be important when the sanctions are lifted, whether this success is here to stay. Agricultural business is not the fastest in terms of growth and one shouldn’t invest in it guided by short-term market sentiment,” he said.

The situation could become clearer if long-awaited measures to support agriculture are also taken, he said, which could be a long-term driver for stocks and even spawn the rise of new names on the market. On August 12, Russian Prime Minister Dmitry Medvedev instructed the government to increase state funding for the development of agriculture because of the sanctions. Mr Medvedev considers it a new state programme for the development of agriculture.

How hard will the new sanctions hit?

Economic blockade: The US and the EU have been joined by five countries in imposing sanctions on Russia that include bans on bank loans, a halt to arms deals and blocking sales of technology for the oil industry

THE NUMBERS

250 the number of products (including minerals, carbons and fossils) banned by the EU

5.6 billion dollars was the total value of trade between Russia and the UK in 2013

NATALIA MIKHAYLENKO

Under pressure Finance, energy and defence targeted ALEXEI LOSSAN RBTH

This summer has been a hot one for Russia's economy. On July 16, the United States imposed a third round of economic sanctions to punish Moscow for what the US sees as its continuing failure to take concrete steps to deescalate the conflict in eastern Ukraine.

The EU followed up on July 30 with an extension of its own sanctions against Russia.

State banks in Russia were barred from raising long-term finance in the EU and there were bans on the export of equipment that could be

used for military purposes, on some oil industry technologies, and on future arms sales. There were also further travel bans and asset freezes on Russian officials. The measures led BP, the largest foreign investor in Russia, to warn that further Western sanctions could damage its partnership with the state-owned energy giant Rosneft and harm its profitability in Russia.

Whereas previous US sanctions mainly targeted individuals, the new measures were aimed at companies. Besides Rosneft and the state investment bank VEB, the sanctions list now includes Russia’s largest private energy company Novatek and the state-owned Gazprombank. These companies will be unable to attract funds from American investors and creditors for longer than three months.

Under the new rules, the assets of these com-

American money has formed the basis of the bank’s long-term resources for more than a decade

54 pc of Russian imports are from the EU

panies will not be frozen and American industry players are not forbidden to work with them.

“We will feel the effects of the new package of American sanctions against Russian companies and individuals considerably more, when compared to the previous two rounds,” said Vasily Ukharsky, an analyst at UFS INvestment Company. “The companies that ended up on the list are very large companies that form the backbone of the system and have government support.”

Enterprises in the military-industrial complex, meanwhile, are looking at a complete suspension of co-operation and frozen accounts with US banks. Affected entities include the air defence concern Almaz-Antey, which was also sanctioned by the EU, Kalashnikov Concern, Izhmash, and other factories, plus

Atoms for peace without politics Nuclear energy On the 60th anniversary of the first power plant, Russia is building reactors worldwide, free of sanctions

SPECIAL TO RBTH

In June 1954, the Soviet Union opened the world’s first experimental atomic reactor in Obninsk, just over 60 miles from Moscow. In 1956, the UK launched the Calder Hall nuclear power plant, and the United States began operating the Vallecitos plant in 1957.

These can be regarded as the first commercial electric power generating plants using atomic energy. Today, the world has 193 nuclear power plants in 30 countries.

The peak of nuclear generation was reached in the early Nineties. Nuclear plants were then generating 17pc of all electricity, while in France it was more than 70pc.

After the accident at Chernobyl in April 1986, Russia suspended the construction of new nuclear plants, while continuing work on research and design to improve the reliability and operating lives of existing units. But now the trend has changed, and the sector has experienced new growth.

Around the world, a total of 72 units are being simultaneously constructed – on new sites and at existing nuclear power stations, including the replacement of older reactors. The most active countries in exploring this relatively new technology (for them) are China and India, while a growing interest in nuclear power generation is being shown in the developing countries of South-East Asia and the Middle and Near East. At the same time, Russian nuclear experts continue to work with their partners in the conditions of a worsening geopolitical situation.

“For now, no sanctions have been imposed against Rosatom,” said Dmitry Baranov, leading expert at MC Finam Management.

“The company is continuing its work on the domestic market, and in other countries. All international projects are being implemented in accordance with previously agreed schedules,” he said. The Finnish side, for instance, has already confirmed that work on the joint project of Fennovoima and

© RIA NOVOSTI

ALEXANDER YEMELYANENKO

Decisions by European countries to wind down their nuclear power generation are politically motivated, analysts say

Building the future: work goes on for Rosatom’s international partnerships despite the political climate

Rosatom, involving the construction of the Hanhikivi-1 NPP, will continue. In addition, co-operation with China has not ceased. In late July, Rusatom Overseas and the company CNNC New Energy signed a memorandum of understanding for co-operation in a project involving the construction of floating nuclear

important industrial players KBP Instrument Design Bureau and NPO Mashinostroyenia.

Blow to joint ventures Of the firms on the sanctions list, Rosneft is the most integrated with the US economy and has a key partner in ExxonMobil. The Russian company also recently made a bid for Morgan Stanley's oil trading division. “Rosneft has a financial pillow of $20bn, but this isn't much for such a large company,” said Veniamin Vutyanov, assistant professor of economic regulation at the Russian Presidential Academy of the National Economy and Public Administration (Ranepa). He believes this puts the company in a difficult situation, which will be reflected in its stock price and cost of financing.

The exclusion zone Much more serious sanctions may affect banking.“About 60pc of VEB’s funds are raised on open markets,”said Mr Ukharsky. Of those assets, the bank has received up to 80pc from American and European markets, and only 20pc from China and other countries. American money has formed the basis of the bank’s longterm resources for more than a decade.

The American sanctions directly influence opportunities to raise funds through bonds.

“Currency bonds make up 10-12pc of VEB’s net liabilities, and 7pc of Gazprombank’s. Sanctions will not affect their operating stability, but will create a great amount of uncertainty for Russian players all the same,”said Alexander Abramov, head researcher at Ranepa’s Centreer for Financial System Analysis.

Sberbank, Russia’s largest bank, would have to rewrite the sovereign risk section of its investment memorandum to take part in the eurobond market. Gazprombank is the main underwriter helping Russian issuers place eurobonds. “Therefore, the sanctions may infect the projects of other organisations that have absolutely no relationship with eitherVEB or Gazprombank,” Mr Abramov said.

The European Investment Bank (EIB) and the European Bank for Reconstruction and Development (EBRD) have halted new investments in Russia. In 2013, the EBRD financed $2.64bn of projects and the EIB contributed $1.4bn. However, Russian leaders are still unwilling to dramatise the situation.

President Vladimir Putin stated after the latest summit of Brics countries in July that sanctions against Russia would harm America’s companies. “The measures taken by the [American] administration, in my view, clash with the national interests of the US itself.

Large corporations want to work in Russia, but in facing certain restrictions, they will lose their competitiveness with other global energy companies,” he said.

power plants. At the same time, independent analysts regard the decision of some European countries to wind down their nuclear power generation as politically motivated. The head of the World Nuclear Association, Agneta Rising, previously stated that nuclear power must remain free from politics, as it provides secure energy supplies for people in different parts of the world.

As an example, she referred to Britain, “which has been engaged in nuclear energy production longer than the others, and continues to develop”.

Sergey Kiriyenko, the head of Rosatom, was even more explicit, saying that Britain was creating an attractive environment for foreign companies to build new nuclear plants in that country. “It is quite interesting logic, when they invite other manufacturers of NPPs and give them guarantees of surcharges over previously stipulated energy prices,” he explained to reporters.

Mr Kiriyenko also said that there were several platforms where the British government was involved in talks and consultations with potential partners, including Rosatom.

According to the head of Rosatom, it was now working on the licensing of Russian technology with Britain – pressurised water reactors. This technology has never before been used in Britain, and two years are required for licensing. This will be followed by commercial decisions being taken.

Ukraine crisis P4_Tuesday, August 26, 2014_www.rbth.co.uk_This supplement is sponsored by Rossiyskaya Gazeta

Frightened families flee ‘hell’ of war for new lives as refugees Special Report Camp hosts eastern Ukrainians forced to abandon homes by fierce fighting Dmitri Vostrikov special to RBTH

In the village of Mazanka, there are people who know that war is hell. A tent city run by the Ministry of Emergency Situations serves as a transit centre and temporary shelter for people from the Donetsk and Lugansk regions of eastern Ukraine, where government forces have been fighting separatist militias. The conflict has made life unbearable for thousands of families, and their plight led to the dispatch of a road convoy of humanitarian aid from Moscow, viewed with suspicion by the West.

Children scared and confused

More than 800 people are living in Mazanka and the flow of refugees grows every day. Buses transport them here from Simferopol, the capital of Crimea, which is six miles away. There are entire families of forced migrants, many with children. Scared and confused, the children embrace their mothers, who try desperately to come to terms with the situation.

“Our house is not far from the city of Teplogorsk, which was heavily bombed and we were constantly frightened,” says Elmira Maltseva, from Stakhanov in the Lugansk region. The territory she left behind is known as “the Bermuda Triangle.” It consists of the towns of Stakhanov, Bryanka and Alchevsk, where factories belonging to the Ukrainian businessman and Dnepropetrovsk governor Igor Kolomoisky are located.“That is why the Ukrainian National Guard is holding tightly to this area,”she says.“But the towns are empty. I decided to leave with my husband and two children. We crossed the border at Izvarino into Rostov region. And from there we took a bus to Crimea.” She does not think she will return home soon, but hopes that one day she will.

“When we were leaving, I covered our windows with white tape. They used to do this in the Second World War, so that windows would not shatter from the blast waves.”

Going home is impossible

The camp in Mazanka consists of several small tents and a dormitory building. The building also offers a toilet, shower and kitchen, but there always queues. Although many homes were destroyed and several people have lost friends or family, the residents are optimistic.

Few do not believe that everything will return to normal.“We are given baby food here, nappies, toothpaste, brushes,”says Ekaterina Gorelkina, from Lisichansk in Lugansk region.“Sure, we want to go home, but it is impossible now.

There are no people left there, only bombings.

The food that can be bought has become much more expensive. The conditions are better here than back home now.”

Though homes were destroyed and people have lost family members, the camp's residents are still optimistic People ask whether their friends are still alive, whether their houses are still intact, whether the bombing continues

Seeking shelter from the storm

New arrivals adjust in time

Men and women live separately at the Mazanka camp: the women in the dormitory, the men in the tents outside. There are big rooms in the dormitory that can house up to 20 people. Outside, there is a sandpit for children to play in.

The migrants clean and make things as comfortable for themselves as they can. New arrivals feel strange at first but they adjust and immerse themselves in daily routines – preparing food, washing clothes, clearing rubbish and helping the newly arrived.

Artem Mamykin, from Teplogorsk, said: “We’ve already made friends. We speak with our neighbours. They help us a lot. My wife was in the hospital with our child and when people found out that we were refugees, they brought us money, things, food.” Often you hear people asking: “How’s everyone back

reuters

The United Nations estimates that almost 730,000 people have left Ukraine and moved to Russia this year because of the war in the east of the country. Some 87pc of the forced mi-

grants are from the Lugansk and Donetsk regions.

At the beginning of June, the number of refugees coming to Russia from eastern Ukraine was 2,600.

By August 1, that total had increased to 102,600 people. Russia’s Federal Migration Service says that there are currently about two million Ukrainians in Russia, of whom 600,000 are from south-eastern Ukraine and 36,000 are living in temporary accommodation.

In Russia, there are temporary accommodation points for refugees from Ukraine in Simferopol, Sevastopol, the regions of Belgorod, Bryansk, Voronezhn, Kursk, Leningrad, Rostov and Moscow, as well as in the cities of Moscow and St Petersburg.

home?” Contact with towns in areas of military conflict has been lost for several days, but the migrants manage to gather information bit by bit. The most reliable news comes from those who arrive at the camp each morning. People ask if their friends are still alive, if the houses are still intact, if the bombing is continuing.

Bribes at the roadblock

The refugees in Crimea came through Russia’s Rostov region, bordering Ukraine. Other routes are dangerous. Those who risked going through Ukrainian roadblocks complain about the bribes extorted from them. ‘‘A few times they tried taking us off the bus because we had a Russian exit permit,” Ekaterina, from Lisichansk, says. She was lucky: the soldiers let her pass, taking a total of about £10.

Ekaterina will stay for about a week in the Mazanka camp, the average time that most refugees spend here. Then they are flown on a ministry plane to the Russian mainland. The Maltseva family will be sent to Kemerovo in western Siberia about 2,200 miles from Moscow. Her husband, a coal miner, was promised a job there.“There’s no work back home,” says Elmira Maltseva. “My sister closed her pharmacy, since all the supplies had stopped coming in. All the store items have been bought up, only the most expensive drugs remain.”

Since the war began in south-eastern Ukraine, production in entire sectors of the economy has been shut down. “Our region was firmly connected to Russia. All the factories functioned thanks to Russian orders. Looking at relations between the two countries, no one knows how the regional economy will now work,”she says.

Russia is under pressure from the sheer numbers of refugees and has appealed for international assistance. But ordinary Russians have offered practical help to families who have crossed the border. English teacher and longterm Moscow resident Stephen Wilson, 53, has teamed up with four Russian human rights activists to set up a volunteer organisation to help displaced citizens from eastern Ukraine find work and homes in the Russian capital.

Mr Wilson, a Scot who has lived in Moscow for 20 years, focuses not only on donations but also on mentoring and psychological support for the distressed refugees.“We don’t have posh offices or any paid secretaries or bureaucratic structures,” Mr Wilson said. His organisation provides clothes, toys for children, nappies, soap, toothpaste and more. “What we quickly discovered is that the refugees want help with applying for refugee status, getting work and of course, a place to stay if they are not at a dacha or hostel. What we really need to offer is moral and spiritual support.”

Will Putin and Poroshenko find a way to end the deadlock?

Summit Leaders may meet but few see hope for real progress towards a peaceful solution

reuters

Nikolai Litovkin, Alexander Trifonov RBTH

The presidents of Russia and Ukraine, Vladimir Putin and Petro Poroshenko, may meet today in Minsk at a summit of the Customs Union and Ukraine. Experts believe that a breakthrough to resolve the conflict is unlikely.

Alexei Arbatov, head of the International Security Centre at the Institute of World Economy and International Relations Ukraine is trying to create the impression that it is looking for political solutions. In Europe and the US, diplomacy is preferred to a military solution to the conflict, so Kiev

will try to create the appearance of willingness to negotiate with Moscow.

Ukraine will demand the unconditional withdrawal of support for the militias in the Lugansk and Donetsk People’s Republics.

Moscow cannot agree to these terms because it maintains it has not provided military support to the republics. Agreeing with Kiev’s conditions would mean recognition of aid from Moscow to the separatists. Russia, in turn, requires Ukraine to stop the fighting in the south-east and allow a humanitarian convoy to enter. So we have an impasse that will be very difficult to resolve.

Alexei Suzdaltsev, researcher at the Centre for Comprehensive European and International Studies, Higher School of Economics Meeting of minds? Most analysts are pessimistic about the chance of a breakthrough

Formally, the talks will be about the sanctions imposed by Ukraine on Russia, but in fact they will focus on the economic war

that Kiev declared on Moscow. It will also discuss the issue of gas supplies to Europe, as the last rounds of negotiations on this issue led nowhere. However, there is no reason to expect any progress here either.

Russian media speak a lot about the worries in Europe over possible sanctions

by Ukraine on the transit of Russian gas, but it’s actually just an act. In Europe, this would be preferable, as this step would give Kiev another way of putting pressure on Moscow.

Sergei Mikheyev, independent political analyst

The talks in Minsk are just an attempt by Ukraine and the Western powers supporting it to somehow force Russia into sponsoring the plummeting Kiev economy. I do not believe that Ukraine is ready to make concessions on political issues, which most likely won’t even be discussed there.

Discussing them without the Americans who are backing them does not make sense. This means that Kiev wants to use the negotiations in order to put pressure on the Customs Union and Russia to create a friendlier economic policy towards Ukraine. These negotiations are wanted by Kiev, Europe and America, because they do not want to pay for the Ukrainian problem. They want us to pay for it, they want Russian markets to remain open for Ukrainian products and they want to solve the gas issue in a way that benefits Ukraine.

I do not know how the Kremlin and President Putin are going to act on these issues. Do not expect progress in the start of a political process in Ukraine.

Kiev’s goal is to gain preferential status in the economic sense, and the goal of Moscow should at least be the discussion of political issues.

Ukraine crisis This supplement is sponsored by Rossiyskaya Gazeta_www.rbth.co.uk_Tuesday, August 26, 2014_P5

City of tents: People fleeing the war in eastern Ukraine make the best of life at refugee camps and other temporary accommodation.

Most will be flown to Russian cities after a short stay

Special Report Many fled from Donetsk after the first shells landed. Those who stayed fear for their lives every day

AFP/eastnews

‘I don’t want to leave the city, I don’t know where to go’

Ruined hopes: a bomb-damaged building in Donetsk, which has become a city under siege Paul Duvernet special to RBTH

MULTIMEDIA

mikhail mordasov(4)

Scan here to read how leading Russian media are reporting on the situation in Ukraine.

Find more

rbth.co.uk/ukraine

hard talk

A case study in the failure to learn from history

T

Alexander Yakovenko

ambassador

he Ukrainian crisis has two closely intertwined dimensions: a domestic one and an external one, both testifying to the failure to manage the process correctly. Both provide abundant material for a study in abject mismanagement, with the lessons of European history consigned to oblivion.

The crisis was launched in Brussels by the offer of the EU – Ukraine Association Agreement and its Deep and Comprehensive Free Trade Area. Nothing was thought through in advance, including how to finance a radical economic reform in Ukraine and the consequences for Ukraine-Russia trade and economic ties. Nothing was debated in public in the EU or Ukraine. It was a take-it-or-leaveit offer at odds with European traditions of pragmatism and moderate politics. But it was hatched by the Brussels supranational and unaccountable bureaucracy, which was carried away by temptations of grandeur and geopolitical self-assertion. For example, it took three months of the crisis for Brussels to admit that Russia has a legitimate economic interest in Ukraine.

But what is still denied is a far deeper and multifaceted relationship between Ukraine and Russia, including common historical, cultural, family and other ties. The slogan of a European future is not enough for sound practical policies, especially in a country as complex and large as Ukraine with an elite that over 23 years could not restore the size of its economy to the pre-independence level.

Domestically, the plan for the agreement triggered anti-government protests, which were fast taken over by armed radicals. As in any popular movement, resort to violence proved fatal. Violence begets violence and is no substitute for a reasoned public debate with the entire nation involved. Though President Viktor Yanukovich left the country, the

fundamentals of the road map, agreed by the president and the three leaders of the parliamentary opposition through mediation, are as relevant now as six months ago. It is either “winner takes all”or a gradual process of building consensus in a society on where to go, how and at what pace.

This sequence and its logic were endorsed internationally in Geneva on April 17 and in Berlin on July 2. It provides for a national unity government, which would conduct an inclusive constitutional reform followed by elections.

What is wrong with that? It’s the only option.

That is where we stand in the resumed talks.

Russia faced the same fork in the road when the coalition government of left-wing parties chose to disband the Constituent Assembly in 1918. The consequences were similar to those in England when Oliver Cromwell told the Rump Parliament: “In the name of God, go!”

Whatever the democratic aspirations of the original protest, once the issue of power was resolved, it was just a matter of time before the Maidan would go. The groups of radical nationalists, who espouse violence and define national identity in a negative way, ie, through the vilification of other nations as proved by the latest tensions between the authorities and the Right Sector, are more difficult to push aside. The old elite has been co-opted into this simple fix of suppression by force of arms by those who disagree and want to be heard. To make things easier they were labelled terrorists. The bet on a military solution, of course, prolongs the life of the existing parliament.

And no reform is on the horizon.

It is sad that the US and EU have chosen to render uncritical support to Kiev, juggling the notions of sovereignty and territorial integrity as opposed to the real needs and aspirations of people on the ground. As some believe, that makes it tempting for Kiev to get into a military conflict with Russia. The crisis already acquired a broader scale because of Western sanctions against Russia, a sort of middle ground between war and peace. This still means war, although an economic one, but as destructive and inconclusive as a real one. This brings us to uncharted territory, with all the uncertainties and unpredictability involved.

On the part of the West there has been constant talk of reform of the constitution, decentralisation, protection of minority rights and

a genuine national dialogue (most recently in the EU Council’s Conclusions on Ukraine on August 15). But that is talk against the backdrop of facts on the ground that deny all those good intentions. It is only now, in anticipation of the government forces’ victory, that this reality has started to dawn on some in the West.

Edward Lucas wrote in The Times on August 12 that the West is facing a prospect of “bankrolling indefinitely a failing state run by corrupt politicians, oligarchs and paramilitary thugs”.Is it really the outcome we all want? For sure, it will be sealed by a military victory, with Russia unable to bankroll such a state in any way. Our public opinion simply won’t allow it.

If the West has a stomach for a Cold-War type of geopolitical dependency (the “our son of a bitch” approach’’), it will have it. There is another option, which is still possible, ie, truly collective outside involvement in Ukraine’s transformation on a realistic basis, perhaps under the auspices of the Contact Group.

And finally, it is obvious that the politics of double standards and the spectacular display of indifference towards the plight of civilians in eastern Ukraine, presumably as less human, than, let’s say, the Palestinians, will have a lasting impact on Russian perception of the West.

As if association with Nazism, which was a pure product of Western culture, wouldn’t suffice. It will make a bad situation worse: such a such foray into the old geopolitics will have consequences for the EU’s future and that of Europe in a new global environment.

As to the world order, there never was a formal settlement after the end of the Cold War. Russia has consistently called for the establishment of a modern security architecture on the continent, including through the proper institutionalisation of the Organisation for Security and Co-operation in Europe. The West has preferred constructive ambiguity because it gave it the unfair advantage of a majority which is always in the right. Russia continued to be contained.

Kiev and Western capitals are making fundamental choices for Ukraine, between democracy and something that leads in the opposite direction, and for Europe, between peace and something that is a poor substitute for it.

Alexander Yakovenko is Russian ambassador to the UK

At the heart of the battle between proautonomy militias and forces loyal to the Ukrainian government in Kiev, the city of Donetsk has been living with the rhythm of explosions. Residents say fear has become part of their daily lives.

“I saw it happen slowly, this war. I had even started to get used to the presence of armed men, empty streets and the sound of explosions at night. But everything changed when the shells landed in our residential quarter. Now I am scared all the time,” says Antonina Kharchenko, 62, sitting on a bench at the entrance to her building. Her neighbourhood, near the rail station, has been fired on several times in recent days.

“When the first shell exploded in our residential quarter, the militiamen [from the so-called Donetsk People’s Republic] organised an evacuation,” she says. “But I didn’t want to leave. I do not know where to go. All I have is my apartment. Many of those who left have returned because they have no more money.” Antonina has spent many hours in an air-raid shelter.

In Donetsk region as a whole, 951 people have been killed and 1,748 wounded since the conflict began. In the city, residents know the shelters closest to their homes.

Lists were distributed or posted at the entrances of their buildings. Fewer and fewer areas of Donetsk have remained untouched by shells. These are not massive bombings like those of the Second World War, but between 10 and 20 shells explode every day, enough to terrify everyone.

“The real problem is safety,” says Andriy, a waiter at one of the few restaurants in the city centre still open. “Until the beginning of August, it was pretty quiet. The shelling was restricted to the area around the airport and the city’s south, but there are no longer any safe places.”

The streets have become almost devoid of cars and pedestrians, while 95pc of shops are closed. Just a handful of restaurants and grocery stores remain open. Andriy says: “All my friends have gone. Many of them are now in Crimea, some are in Russia, others are in Kiev. I have stayed because I am one of those few who have not

lost their job.” Residents estimate that between 30 and 60pc of the city’s one million inhabitants have fled Donetsk since May. Paradoxically, the city centre first saw an exodus, although the shelling focused initially on the outskirts. “That’s because those in the centre have the means to leave, while the suburbs are populated by retired people and workers who do not have savings to go elsewhere to live,” says Andriy.

At sunset, the last signs of life disappear.

People hurry to get home before the curfew, from 11pm to 5am, imposed by the separatist leaders. However, an island of resistance remains, in which the brave people and insomniacs gather. The Banana Café, the only one open around the clock, hosts on its terrace a strange mixture of militia leaders flanked by heavily armed men, stylish young women and foreign journalists. If you come out, there is total silence, broken regularly by the rumblings of war.

Mariya Krasnova, 21, is a regular at the café. Although she lives on the other side of the city, she takes refuge at the Banana Café to meet her friends. All of them are pro-separatists, and a good half of them are fighting with arms in their hands. “I am proud to have such friends,” says Mariya.

“This is my new family, because most of my relatives have stopped talking with me since the start of the conflict. They live in other regions of Ukraine and are misinformed by the media. They think I’m a terrorist! But we are simply defending our territory!” She swears that she will never leave Donetsk.

Her anger is shared by many residents, but it is oriented in different directions.

“I’m tired of this war,” Vasyl Chorny, an electrician and Antonina’s neighbour, says with a deep sigh. “At first, I supported the separatists, but now I just want everything to stop and people to live as before. We were promised that after the referendum [for the independence of the Donbass region, on May 11] that the situation would improve, but the opposite has happened. The people behind this conflict are unable to negotiate a solution. They will not let us live in peace!” he laments.

This is an opinion that is unanimous here.

This war is here to stay.

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Analysis P6_Tuesday, August 26, 2014_www.rbth.co.uk_THIS SUPPLEMENT IS SPONSORED BY ROSSIYSKAYA GAZETA

Human cost of a war without winners

THE PAYMENT FOR UKRAINE: ISOLATION AND PUNISHMENT need to seize the initiative and be highly assertive. Russia does not expect the Brics or any developing countries to support its struggle against the Ukrainian government. They are not interested. The fact that Russia’s actions led to a change of internationally recognised borders could also be taken as support for separatism on the territory of a neighbouring state.

Such behaviour is not consistent with what China, India, or other developing nations consider appropriate in international relations. At the same time, it is understood in Beijing, New Delhi, Brasilia, Pretoria, Tehran, and Buenos Aires that Russia’s actions had an extensive pre-history. Furthermore, it is recognised that Russia acted in response to pressure from the West, which heedlessly expanded its sphere of influence. These countries will accordingly not join Washington’s chorus of those condemning Russia. In China, for example, the ‘‘battle for Ukraine”is not considered a local conflict, but a confrontation over the structure of a new global hierarchy. Russia’s defeat would mean the strengthening of the US and increased pressure on China. Thus, a certain amount of support is guaranteed.

Fyodor Lukyanov INTERNATIONAL ANALYST

Moscow faces the greatest political and economic pressure from beyond its borders in more than a generation over the crisis in Ukraine, while media criticism of President Vladimir Putin is at a new high. Fyodor Lukyanov, head of the Council for Foreign and Defence Policy, examines the issues.

On western economic penalties Sanctions are not fatal. But in the case of sector-wide sanctions against entire industries, they will sour the economic situation and require a new model of development. Such a model does not yet exist, and a response mechanism to a serious economic blockade from the West has not been developed. Russia has an economy that is not so deeply immersed in the global economy compared to China. But Russia is still bound very closely to global markets and especially to Europe, so it would be a bad idea to disregard the sanctions. I also would not bank on Europe’s“greed”.Without a doubt, sanctions against Russia would be horrendously disadvantageous, but the pressure from the US has been very strong, and the informational situation surrounding Ukraine and the downed Malaysia Airlines flight has become extremely harsh. The international media has portrayed Russia as almost a rogue state. There is no cause for panic, but Russia has not found herself in such a serious political, economic, or informational confrontation since 1991.

On a possible turn to the East

On the aims of the West

Russia has not found herself in such a serious political and economic confrontation since 1991

This would require very active work; we would

It is seeking to end any support for the proRussian forces in Ukraine. This is the immediate goal, as it is important to the US that Kiev achieves a military victory. Such a result is probably inevitable if Kiev secures the border with Russia. This will not settle the Ukrainian crisis. Resistance will continue: instability, but with the territory generally under the control of the Ukrainian authorities. The West’s longterm goal, about which it does not speak publicly, is a change in Russia’s domestic political situation, and regime change, if possible. After all that happened this spring and summer, normal interactions between Washington and Moscow at higher levels are impossible. Not only for Obama, but in all likelihood for his succes-

sor. The Kremlin also sees the US as an outright enemy. So the ideal scenario for the US is for Putin to leave office, especially now the level of demonisation has reached its peak, with highly personal attacks. We are not speaking of direct interference, but a deterioration in Russia’s position through sanctions, as a longterm way of weakening the ruling elite.

Tim Lewin SPECIAL TO RBTH

On why Israel’s operation disturbs the West less than the conflict in Ukraine In the first place, everyone is accustomed to regular exacerbation of the Israeli-Palestinian conflict. Second, Israel has enough allies within the US that it can expect support for absolutely any action, thanks to the influential Israel lobby. Third, while Europe has much more sympathy for the Palestinians when compared to America, Europeans still harbour an enormous amount of guilt for the Holocaust. Thus it is frowned upon to criticise Israel, which is using military force to maintain its security.

VOX POP

On Russia’s introduction of sanctions Russian sanctions came as a surprise. I have a feeling that Europe did not expect such a harsh reaction. However, it was quite predictable. Moscow is not the type of capital city to tolerate being treated as a pariah or to succumb to overt pressure. But because the sanctions war began, we must wait for the coming rounds. This is bad for everyone but the laws of politics are not always rational. The most interesting thing is how this will affect the future of world trade and global regulations.What we are seeing from both sides aren’t violations but rather a disregard of WTO regulations, and thus politics reigns. The Ukrainian crisis was the catalyst but the trend towards fragmentation of the global environment began earlier. It is possible that we will see a qualitative change in the world, far beyond the relations between Russia and the West.

What RBTH readers think about the hot topics.

From facebook.com/ russianow Jay Whitten on Russia’s food embargo from western countries Well, war has been declared on Russia, so people expect this. Nobody thought this was going to be fun, but in the long run, there are great opportunities for Russia to become more self-sufficient and to develop the Brics system.”

"

Based on material from Lenta.ru and RBTH.

Markus Schneider on Ukraine and the EU We don’t want another bankrupt country to be fed from the EU and other rich countries. We have our own problems.

Ukraine should never join the European Union. This would be a waste of economical help and so on.”

"

Ale Viola on Ukrainian sanctions against Gazprom It's gonna be a long, dark, bitter cold winter, I fear..."

"

When my father, British defence supremo Admiral Sir Terry Lewin, was asked in 1982 about the impending crisis with Argentina that dominated the days immediately before the invasion of the Falklands, his response was: “I cannot believe two civilised countries could settle such a difference by anything but negotiation”.How easily that could have been repeated about Russia and Ukraine now.

Much has been said about the origins of what is essentially a family dispute, most only marginally accurate. Sadly the real truth, the human cost of the failure in relations between these two neighbours, seems to have been buried by the propaganda snowstorm of apportioning guilt. As with most family disputes, resolution can only come from within, and so far we see little genuine desire to restore any degree of cross-border harmony.

Many, in both countries, still find it hard to accept Russia and Ukraine are no longer joined at the hip. But until this year, the borders remained open, families visited relatives freely, trade was unhindered, Russians invested in Ukraine. Sadly, political maturity has not blossomed so healthily and this is the fundamental tragedy that is extending the agony for people whose lives are being destroyed daily.

The old ties between eastern Ukraine and Russia cut both ways; stoking the separation angst of the militants, it has also provided a lifeline for the main part of the population caught up in a war they do not support. According to the UN, almost 730,000 people have been displaced and sought refuge in Russia, some with family, some with old friends, most anywhere that will accept them to get away from the very real prospect of violent death.

Eventually this undeclared civil war will be resolved. It will fade to a footnote in the history of the break-up of the USSR. But at what price to the people? More than 2,000 civilians have been killed, up to 2,000 families who will never forget this wave of internecine madness.

Life has been destroyed; business devastated. Homes, possessions and modest comforts have been utterly destroyed, blown to bits in a pointless orgy of violence. There is no insurance; no one to help pick up the pieces.

People who lived in these shattered little towns now live in tents, schools, stadiums, wherever they can find shelter.

Not a problem while summer is still with us, but in 90 days the cruelty of winter – remember Napoleon’s defeat – will return. Temperatures will plummet to double figures below zero, snow will cover everything. How to live, to survive, under these conditions? This is a disaster from which there will be no winners.

Tim Lewin is an organiser and consultant for major financial, cultural and arts projects in Russia and Ukraine, and the UK Honorary Consul for development in Crimea

NATALIA MIKHAYLENKO

The way forward is clear but ending the impasse needs political courage

Sir Tony Brenton SPECIAL TO RBTH

This year has brought the chilliest phase in relations between Russia and the West since the end of the Cold War. Neither side intended this, but both have played their part. After the collapse of the Soviet Union, the West simply stopped taking Russia seriously. Again and again the US and its allies rode roughshod over Russia’s intensely expressed concerns about, in particular, the expansion of Nato, the seizure of Kosovo, the invasion of Iraq and the overencouragement of Georgia. And even when Georgia’s ill-judged attack on South Ossetia in 2008 led to an overwhelming Russian counterattack, the West seems not to have learnt the lesson.

Instead it chose the country that Russia regards as almost part of itself, Ukraine, as

the place to encourage the overthrow of a democratically elected (if awful) president by what looked to Moscow like an anti-Russian mob. Nothing could have been more provocative. But Russia then committed blunders of its own. The annexation of Crimea, understandable in the context of a panic that “Little Russia” might be about to be swallowed up by Nato, was the most significant act of territorial rapacity in Europe since the end of the Second World War. It created an atmosphere of mutual mistrust and fears of renewed Russian expansionism that have bedevilled all attempts to lower tensions. And (steadfastly denied, but abundantly evidenced) Russian involvement with the pro-Russian separatists in East Ukraine has been a catastrophe.

The separatists have proved to be illdisciplined gangs of thugs, brutal in their methods, with limited public support in eastern Ukraine. They are increasingly dependent on Russia as a source of volunteers and arms. The latter almost certainly included the missile that brought down flight MH17 and sharply intensified Western anger at what is seen as the Russian

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hand behind the insurrection. And now the dissidents are losing the war, facing President Putin with a hideous choice. He can acknowledge defeat and abandon them.

Or he can up the ante, perhaps with overt intervention, and face the costs, dangers and immense further damage to relations with the West which would surely result.

Meanwhile, Western economic sanctions, understandable in the context of the need for Western leaders to be seen to “do something”, have made the situation worse. They are doing real economic damage but their political effect has been exactly the reverse of what was advertised. In embattled Russia, public opinion has swung firmly behind the nation’s president. He shows no disposition to compromise, has authorised a significant round of Russian countermeasures, and has ostentatiously built links with the non-Western rising powers. The past few weeks have seen a vast new gas deal with China, talk of oil swaps with Iran, and encouragement to the Brazilians to fill the gap left by the exclusion of EU agricultural exports to Russia.

It is encouraging that both the French and

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the Germans are now trying to reopen communications with Moscow. But trust is at a low ebb, and could evaporate if Russia invades eastern Ukraine. Mr Putin’s credibility with Western leaders has been sapped by his repeated denial of Russian military assistance to the Ukrainian rebels.

He and President Obama are virtually incommunicado. David Cameron seems to have decided that tough rhetoric is adequate as UK policy – negotiation is for others. And Angela Merkel – the one Western leader Mr Putin listens to – has become much less open to compromise as a result in particular of the downing of the Malaysian airliner.

Western policy towards Russia, even discounting improbable talk of Nato rearmament and reduced dependence on Russian gas, is reduced to maintaining economic pressure and waiting for Putin to fall. This is a remote prospect, made more remote by Western hostility, and there are good reasons for doubting that Putin’s eventual successor will be any friendlier to the West. In Russia, the crisis has given a boost to those who want to see a more state-centred Russian economy less entangled with the West. Such a Russia would inevitably also be more authoritarian and less co-operative across the whole range of crucial international problems, from the Middle East to climate change. Long held, and even now not entirely extinguished, hopes of Russia becoming a “normal” European country are being set back by

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decades. Meanwhile, prospects for recovery of a battered Ukraine, prostrate between Russia and the West, remain minimal.

The tragedy is that, given the necessary statesmanship, a way out of the mess is plainly visible. It must be apparent, even in the depths of the Russian security establishment, that the eastern rebels have become a huge liability. The trick is to give Russia a face-saving way of abandoning them. A package comprising a ceasefire, humanitarian efforts for the local population, and Ukrainian assurances on the rights of Ukraine’s Russian speaking population should be enough. Meanwhile Russia’s other key fear – that Ukraine will fall into the arms of Nato – certainly will not happen in the foreseeable future, and could be further guaranteed by the West.

Ukrainian acquiescence could be obtained in exchange for a large aid package.

Although Crimea looks doomed to join Europe’s list of “frozen conflicts”, Ukraine could drive a profitable bargain on Russian gas supply in exchange or formal recognition of its loss. It looks as if the Germans and the French have launched tentative feelers on the question of a ceasefire, but where are the leaders with the political courage to press for a broader solution, so avoiding a destructive freeze in Russia’s relations with the West for years to come?

Sir Tony Brenton is a writer and former diplomat. He was UK ambassador to Russia 2004-08

© COPYRIGHT 2014, ROSSIYSKAYA GAZETA. ALL RIGHTS RESERVED. ALEXANDER GORBENKO CHAIRMAN OF THE BOARD, PAVEL NEGOITSA GENERAL DIRECTOR, VLADISLAV FRONIN CHIEF EDITOR. ANY COPYING, REDISTRIBUTION OR RETRANSMISSION OF ANY OF THE CONTENTS OF THIS PUBLICATION, OTHER THAN FOR PERSONAL USE, WITHOUT THE EXPRESS WRITTEN CONSENT OF ROSSIYSKAYA GAZETA IS EXPRESSLY PROHIBITED. TO OBTAIN PERMISSION TO REPRINT OR COPY AN ARTICLE OR PHOTO, PLEASE PHONE +7 (495) 775 3114, OR EMAIL UK@RBTH.COM WITH YOUR REQUEST. RBTH IS NOT RESPONSIBLE FOR UNSOLICITED MANUSCRIPTS AND PHOTOS.

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Year of Culture THIS SUPPLEMENT IS SPONSORED BY ROSSIYSKAYA GAZETA_www.rbth.co.uk_Tuesday, August 26, 2014_P7

CALENDAR UK EVENTS

Q&A Mariinsky principal dancer Xander Parish on life in St Petersburg and how it feels to come home to London

|FROM SEPTEMBER 18 LESSONS IN GEOMETRY WITH LEONID BORISOV GALLERY ELENA SHCHUKINA, 10 LEES PLACE, MAYFAIR, LONDON W1K 6LL

The work of St Petersburg-born artist Leonid Borisov is appearing on the English art scene for the first time. The exhibition, featuring a range of media, including painting, sculpture, collage and photography, spans more than five decades of artistic production, from the Soviet to post-Soviet eras, and reflects the geometric style of the 20th century. ukrussia2014.co.uk/article/591

PRESS PHOTO

|SEPTEMBER 21, 23; NOVEMBER 11, 13 DENIS MATSUEV AND THE LONDON SYMPHONY ORCHESTRA BARBICAN CENTRE, SILK ST, LONDON EC2Y 8DS

Glorious return of the native when I go back – is a huge deal. It’s like being back in time in a way, but with a whole different perspective. Going back, dancing in one of the principal roles, with one of the best companies in the world, is incredible. And to make it more interesting, I remember going to Covent Garden to watch the Mariinsky Ballet on tour when I was at the Royal Ballet School. I was 14 or 15. I watched most of their productions, the big stars – I must have seen them all.

At the time I did not know I would be dancing with them, back on that stage.

ILARIA PAROGNI RBTH

Xander Parish,the only British dancer with the Mariinsky Ballet, brought his remarkable talent back to London this summer for the company’s summer season at the Royal Opera House, a series of five different shows.

The opener was Leonid Lavrovsky’s Romeo and Juliet. On the stage, Romeo was brought back to life for a few hours, only to perish once again after experiencing the bliss and tragedy of love. Parish, who was the first Briton to become a principal dancer at the Mariinsky, combined facial expression, physical strength and charm to create an unforgettable version of the Shakespearean hero.

As an Englishman with a Russian company, he regards the role as a “dream come true”.

Years of training and passion were behind his mesmerising journey from the Royal Ballet to St Petersburg, where he arrived in 2010.

Speaking to RBTH after a long day of rehearsals, the dancer shared his thoughts on Russian ballet and what he has learnt about the country and its people while living in St Petersburg.

What does it mean to you as a British dancer to perform with the Mariinsky at the Royal Opera House?

The Opera House isn’t just the most famous theatre in the UK, it’s the theatre which I grew up in. I joined the Royal Ballet School when I was 11 years old and I must have been 13 or 14 for my first production with the Royal Ballet, The Nutcracker. I was a pageboy. Later I joined the Royal Ballet company, lived there from the age of 19; it was my home for four and a half years. Then I came to Russia. To come back to the Royal Opera House, which is my London base – I still think of it as home

In Russia they work and work and work; and then they work some more.

And there is no stopping. There are no breaks

What is it like to train at a place like the Mariinsky?

The old-fashionedness of this place is what I love dearly and that makes it so special. They are going to close the old Mariinsky in a year or two for renovation and it brings a tear to my eye to think of it. I know it needs doing and upgrading, but at the same time it’s so special and unique – I don’t want them to change a dot. I love the fact that the stone steps are worn down: dancers for many generations have worked and danced there, and checked in the mirrors, used the studio and been on the same floor... The history is poignant, you can feel it in the atmosphere.

What have you learnt about Russia and Russians from your stay in St Petersburg?

It took me a while to figure it out. When I first came here, people seemed quite cold and unfriendly, but that’s not actually the truth. Russians have a veneer – they don’t give themselves immediately. But, in a way, that makes them more genuine. Once you have their trust and they know you, you get underneath. Mariinsky’s new stage causes debates among theatre fans. I have some friends here now that I will have for the rest of my life. With some of them I couldn’t even communicate properly in

Capturing Dostoevsky’s voices GEORGE MANAEV RBTH

Out this year in Penguin Classics, Oliver Ready’s new translation of Dostoevsky’s Crime and Punishment aims to bring the reader as close as possible to the troubled and many-voiced narrative of the original.

Past translations, which Mr Ready studied thoroughly, tended to smooth over Dostoevsky’s stylistic peculiarities, which robbed the novel of its unique, jagged, repetitive tone that best describes the anxious state of Raskolnikov, the anti-hero of the story. Capturing the right tone, according to Mr Ready, is the essence of any good translation. He did his best here, following the author’s intention to construct his characters by their speech and their writing, the latter featuring prominently in the novel in the form of letters, newspaper articles and diaries.

Mr Ready’s main point is that Crime and Punishment is really a self-reflective text, centred on the perception of reality through literature. Throughout the novel,

Murder in mind: the cover of Crime and Punishment in Oliver Ready’s translation.

FIND MORE rbth.co.uk/39215

Raskolnikov reads a lot, and his actions are influenced by his reading, which makes him similar to such characters as Don Quixote or Eugene Onegin.

Mr Ready, a research fellow in Russian society and culture at St Antony’s College, Oxford, says that, in his translation, he chose not to use the English of the 19th century or contemporary language. Instead, his vocabulary comes from the middle of the 20th century, and he does not use words that appeared after the Sixties – which makes the language of the new translation “modern, but not contemporary”.

“Obviously I didn’t use locutions which are specifically of today, which in a few years time would be dated, but I did allow myself at times to use types of humour which are much more modern than Dostoevsky’s time and therefore have a bit more force for the contemporary reader,” Mr Ready told Podularity.com. It took him five years to complete the translation, and to get closer to Dostoevsky’s own style, Mr Ready did it all longhand, creating the most precise translation of the immortal novel to date.

the beginning, but we formed such strong friendships! Although the view of that exterior that sees the Russians as cold and a bit hard is often publicised in the West, it is like looking at a cupboard and not seeing what’s inside. Maybe the cupboard is closed, but once you open it, it’s filled with awesome things.

Why do Russia and ballet go so well together?

Because the Russians have great respect for their art and their history. They preserve it in a way that’s almost faultless. They pass it down by mouth and by person, one generation to the next. There is very little room for error when it’s passed down so carefully to the next generations. The old Kirov stars are now coaches in the company.

Are there any differences between Russian and British dancers?

There might be different breeds of dancers, but we are all the same. Dancers here [in Russia] are trained so purely and thoroughly, and the technique is so beautiful. People in the West work very hard, but they have a certain mentality: “Ah, it’s time for my break, I deserve my weekend, I must have my holiday now”.In Russia they work and work and work; and then they work some more. And there is no stop. There are no breaks. There are no free days. You just work like it’s your calling and your art. You owe it to the art form, rather than the art form owing it to you. But I have friends who are dancers both in London and St Petersburg, and we are the same people, wherever we are. It’s just the moulds that are different.

PROFILE

Xander Parish BRITISH 28

|SEPTEMBER 25

BALLET DANCER

WINE TASTING WITH THE RUSSIAN WINE CLUB

Parish was born in Yorkshire. He started to dance at the age of eight and graduated to the Royal Ballet in 2005 as a member of the corps de ballet. He joined the Mariinsky in 2010 and became a soloist four years later.

PUSHKIN HOUSE, 5A BLOOMSBURY SQUARE, LONDON WC1A 2TA

What sets “intelligent” drinking apart from its less refined versions? When we speak about intelligent drinking, do we mean respect for oneself and for others, savouring the moment, acknowledging and appreciating the mantra in vino veritas? Answer the question with a glass — or two — of Russia’s finest. ukrussia2014.co.uk/article/587

|UNTIL OCTOBER 28 KAZIMIR MALEVICH EXHIBITION TATE MODERN, BANKSIDE, LONDON SE1 9TG

Master of geometrism and father of the Suprematist movement, Kazimir Malevich is known across the globe for his Black Square.

But how many other paintings by the great avant-garde artist can you name? Expand your knowledge of Malevich’s career as a painter, printmaker and art theoretician. ukrussia2014.co.uk/article/3

|SEPTEMBER 26-28

How has Russia changed you?

I am a much broader person. I am much more open-minded. Coming from the Royal Ballet system, it was like I was in a bubble. When you train at the Royal Ballet School as a kid, you are focused every day on ballet and the Royal Ballet. Once you graduate, the Royal Ballet is the only company in the world and you don’t know anything else. That was my mentality, too. I didn’t know what else was out there. I didn’t know about other companies: I just had to be in the Royal Ballet. I was British, it was my company and my heritage.

To come to Russia has completely changed my view of things.

DACHA BY RUSSIAN REVELS REAL FOOD MARKET, SOUTHBANK CENTRE SQUARE, BELVEDERE ROAD, LONDON SE1 8XX

A tent, set within the Real Food Market, will evoke the atmosphere of a dacha. Russian Revels will put on a welcoming spread of zakuski (Slavic tapas). Dacha will include Bio-tiful organic cultured milks; breads and pastries from the Karaway Bakery of Lithuanian-Belorussian tradition; fine wine from the Georgian Wine Society and Ukrainian wine and vodka from the Kolonist. Over the weekend, visitors will also be able to experience the charm of a Russian dacha with 20-minute tastings of the food and drink. ukrussia2014.co.uk/article/613

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Russian without tears – in 16 user-friendly steps Many people who are eager to speak Russian are deterred by its reputation as one of the toughest languages in the world to learn. The reason for this, argues philologist Dmitry Petrov, is the “unfriendly, unsuitable and scary” form in which most manuals present their Russian language courses.

Mr Petrov, arguably Russia’s most experienced interpreter and teacher-host of the Russian TV reality show Polyglot, has already created basic courses in English, Italian, French, Spanish and other languages. Now the time has come for his self-study course in Russian.

“The aim of the course is to attract the widest possible circle of people who want to learn Russian,” says Mr Petrov.“What is special about this course is that it is user-friendly and does not scare a student with deep study of complicated grammar. Starting from the first lessons, readers are able to learn basic vocabulary and algorithms of building sentences – and to feel the language first hand, which gives a great boost to learning.”

In addition to the printed version, which is available in Moscow bookshops, apps for Android and iPhone are to appear shortly.

Denis Matsuev is one of the most sought-after pianists of his generation. UBS Soundscapes dedicates a chapter of its LSO Portrait Artist series to the Russian virtuoso. The opening night on September 21 will see Matsuev perform Prokofiev, Shostakovich and Tishchenko with the London Symphony Orchestra, conducted by fellow Russian Valery Gergiev. ukrussia2014.co.uk/article/581

ABOUT RUSSIAN CULTURE IN LONDON ukrussia2014.co.uk

Petrov’s language course will soon be available as an app

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Contact us UKRUSSIA@RBTH.COM

Sport P8_Tuesday, August 26, 2014_www.rbth.co.uk_THIS SUPPLEMENT IS SPONSORED BY ROSSIYSKAYA GAZETA

FINAL THIRD

Driving passion: the Tigers aiming to roar in Brazil

James Ellingworth

Golf Tennis ace turned golfer sets sights on Rio Olympics and helps persuade Russians 'exclusive' sport is for all

SPECIAL TO RBTH

MULTIMEDIA

IMAGO/LEGION MEDIA

ANDY POTTS SPECIAL TO RBTH

Yevgeny Kafelnikov, a tennis champion in the Nineties with two Grand Slam titles under his belt, also has the distinction of being Russia’s best-known golfer. After retiring from tennis in 2003, Kafelnikov traded in his racket for a set of clubs. Currently plying his trade on the European Tour and European Challenge Tour, he has stated that one of his goals is to play golf at the sport’s long-awaited Olympic return in Rio de Janeiro in 2016. That thought was probably on the minds of many participants last month in the M2M Russian Open Championship at the Tseleevo Golf and Polo Club outside Moscow.

Russian golf pros and enthusiasts are increasingly focused on developing a new generation that will produce better results on the European tour. That grass-roots campaign is happening in some unlikely places. The Tiger Golf Club in the industrial Kapotnya district of south-east Moscow offers five holes, a driving range, and a burning desire to bring more people into the sport. While Tseleevo offers a course designed by Jack Nicklaus in a beautiful woodland setting, Tiger is hemmed in by cooling towers and electricity pylons.

Tseleevo’s rival attractions include a polo field; Tiger shares office space with a company that specialises in artificial turf.

Small wonder, then that Yury Shalimov, Tiger’s director of golf, is determined to shatter the stereotype that golf is an exclusive pursuit and attract local families to the game.“We don’t want this to be a closed environment; we want this to be a place where people can come along and give it a try,”Mr Shalimov says.“You can start this game at any age. It’s not just for the super rich, it’s open to anyone.”

An iron fist threatens the drug cheats

Scan this code to read more on how Russia is preparing to host the 2018 Fifa World Cup

The capital's Tiger Golf Club is determined to shatter the stereotype and get more local families playing

FIND MORE rbth.co.uk/36483

Free training sessions MEANWHILE

Club class: Kafelnikov reached the top in tennis, above, and is now a role model for young golfers

EXPERIMENTARIUM Budding scientists will enjoy the Experimentarium, a centre that lets children not only look at exhibits but also participate in real experiments. At this giant complex, visitors can see more than 200 unusual exhibits, ranging from the cab of an American 18-wheeler to the layout of the human eye. Through exploring the exhibits, children can learn about the basics of anatomy, mechanics, optics, acoustics,and electromagnetism.

Address: 46/2 Butyrskaya, Moscow.

Telephone: +7 (495) 989-73-94; Hours of operation: Monday to Friday from 9:30am to 7:00pm, Saturday, Sunday, and holidays from 10:00am to 8:00pm.

For individual ticket and membership prices, call or visit the website.

Best for ages 7 and up.

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GETTY IMAGES/FOTOBANK

Mr Shalimov is a persuasive promoter of the game. A former hockey player, he is eloquent about the attractions of golf, and well aware that the costs of equipment need not be any higher than that of skates, sticks and a full set of padding.“Sometimes we find kids sneaking on to the course and collecting balls,” he says.

“When that happens, we lend them some gear and invite them to a free training session.

That way, we attract some of them to the game.

Then we get their parents on the phone, asking what golf is all about. They’ve never heard of it before. We’re determined that we should have an open-door policy.”

Tiger Golf Club’s commitment to attracting youngsters chimes with a nationwide scheme that aims to put golf on the school sporting curriculum, something that has moved up the Russian Golf Association’s priorities since Andrei Vdovin became president last year. Mr Vdovin explained earlier this year that the school golf programme had been neglected since its inception three years ago, but was restarted in April 2014 with 50 pilot schemes in schools throughout Russia. Further expansion is planned when the new school year starts next month. Meanwhile, Kafelnikov himself is seen as an asset to the game’s development – espe-

cially among young players. During the recent Russian Championship, a tournament that the former tennis player won in 2011, Mr Vdovin told Russia’s R-Sport agency: “For any sport that’s trying to gain popularity, the presence of a globally renowned player like Kafelnikov is very important.”

Mr Shalimov agrees. “We need to get more people involved in golf in Russia. It’s good that we have a few famous names who are playing.

A sportsman like Kafelnikov doesn’t play tennis any longer but he has the right attitude to sports, he’s a good example.”

Kafelnikov and Russia’s other pros are now looking towards 2016 and the sport’s Olympic

PLANNING A TRIP FOR ADULTS TO MOSCOW IS EASY. FIRST COMES THE KREMLIN, THEN RED SQUARE, AND THEN OTHER SITES BASED ON YOUR INTERESTS AND PREFERENCES. FINDING CREATIVE WAYS TO SHOW THE RUSSIAN CAPITAL TO A CHILD, HOWEVER, IS A MORE DIFFICULT TASK. BUT THERE ARE PLENTY OF UNIQUE ADVENTURES FOR CHILDREN TO BE FOUND OFF THE BEATEN PATH.

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MINERALOGICAL MUSEUM The Fersman Mineralogical Museum is a must-see for inquisitive children, and not only because there are fuzzy stones to touch. The museum features chunks of meteorite, including one that was added to the collection of the Russian Academy of Sciences in 1749.

But the most important part of the exhibit is its collection of minerals of all shapes, colours and sizes: quartz that looks like a sea urchin, sprigs of bluestone covered in dew, fuzzy natrolite, and purple elbaite.

Address: 18/2 Leninsky Prospekt, Moscow. Telephone: +7 (495) 954-39-00, +7 (495) 954-18-59; Hours of operation: Every day from 11:00am to 5:00pm, except for Monday, Tuesday, and the last Thursday of the month.

Adults, €2; Children, €1 (entrance is free on Wednesdays).

Best for ages three and over.

4+

return after a gap of 112 years. Mr Vdovin is looking for a foreign coach to support Russia’s push for medals in an event in which it has traditionally lagged behind the rest of the world.

“People talk about TV exposure, and there is a cable channel in Russian dedicated to golf, but if you don’t know the game it doesn’t make sense when you watch it on TV,” Mr Shalimov says “One ball goes in the hole and the commentator says it’s a birdie and everyone cheers; the next ball goes in the same hole, and that’s a bogey and everyone looks worried. If you’re not used to golf it’s hard to understand what it all means. That’s why we need to get more people to come along and give it a try.”

Russia’s rugby team will face Uruguay in a playoff match to qualify for the 2015 World Cup. The two teams meet in Krasnoyarsk for the first leg on September 27, with the return in Montevideo on October 11. The winner will go through to a fiveteam pool at the World Cup, with the first game against Wales at the Millennium Stadium in Cardiff. Other teams in the pool are hosts England, former champions Australia, and Fiji.

Russia made their World Cup finals debut in New Zealand in 2011.

MUSEUM OF PALEONTOLOGY Dinosaur lovers of all ages can easily spend an afternoon here among the skeletons of animals that died millions of years ago, including plesiosaurs with sad eyes and giant mammoths.

Address: 123 Profsoyuznaya Street, Moscow.

Telephone: +7 (495) 339-15-00, +7 (495) 33945-44; Hours of operation: Every day from 11:00am to 6:00pm, except Monday and Tuesday. Last ticket sales at 5:15pm.

Adults, €3; Students, €1.5; children under six, free. Best for ages four and over.

DARWIN MUSEUM Visitors to the State Darwin Museum can see animatronic dinosaurs; measure their weight in mice, bears and elephants or watch films on giant screens. In the Living Planet multimedia show, guests can take a trip to a unique underwater world and see the cabin of Charles Darwin’s ship The Beagle as well as a timeline of life from prehistory to today. The museum features an enormous collection of stuffed animals, including 718 birds. The Darwin museum is a perfect destination for kids interested in the natural sciences.

Address: 57 Vavilov Street, Moscow. Telephone: +7 (499) 783-22-53; Hours of operation: Every day from 10:00am to 6:00pm, except Monday and the last Friday of the month.

Adults, €7; Students, €2; children under six, free.

It’s time to use an iron fist to fight the fools who damage the prestige of the state. Sports Minister Vitaly Mutko certainly made his point in a recent speech on anti-doping, albeit at the risk of sounding like a Russian spy chief in a bad Hollywood thriller. The enemy? Drugs in sports, the athletes who take them and the coaches who supply them.

In a piece of political theatre, Mr Mutko gathered representatives of 39 Russian regions that have seen doping cases for a public dressingdown. “We need to wake up. Sort this out,” he told them, blasting anti-doping efforts stuck “in the Nineties”that stop Russia earning“honest victories”.The only remedy? An “iron fist”.

Mr Mutko did not shy away from condemning Russian athletes found doping, something other officials have sometimes seemed reluctant to do. An athlete found pumped full of banned substances is a“fool”,he said, and when a Russian champion is disqualified in the lab, “the prestige of the state” is at risk.

It was a speech Russian sport needed. So far this year, almost 80 elite-level Russian athletes in Olympic sports have either failed drug tests or received doping bans. Worse, the Russian national testing lab in Moscow was criticised by the World Anti-Doping Agency last autumn and told to rectify a lack of “compliance”.

There are big names among the Russian athletes banned this year: world swimming championYulia Efimova and the cyclist Denis Menchov, stripped of his second-place Tour de France finish from 2010. At this month’s European Athletics Championships, Russia was without Olympic and world race-walking champion Elena Lashmanova, who was banned for two years last month, and also her coach Viktor Chegin, who is under investigation after 18 athletes he trained tested positive.

You might ask: why not legalise doping? No tests, no results changed years later – athletes should take what they want to go as fast as they can. The problem is that many would die.

At the height of cycling’s doping era, international-level riders, supposedly at the peak of fitness, died as the drug EPO caused the blood to thicken in their veins. The substance found in Lashmanova’s system, GW1516, provides a boost to endurance but has never been sold legally because it comes with horrifically high risks of cancer.

In her case, an investigation is under way and heads will roll. Mr Mutko said: “The people responsible for all this will be named. These people will receive the corresponding punishment.” He did not provide further details but his comments suggest an organised doping operation is suspected. An experimental drug such as GW1516 does not turn up in an athlete’s bloodstream by accident. If a coach or team official acquired this substance and injected it into Lashmanova, 22, that person may have destroyed her career and put her life at risk.

Mr Mutko left a slightly mixed impression by describing what happened with Lashmanova as “absolute carelessness”. But his speech marked a watershed and there are positive signs – such as the lack of positive tests among Russian athletes at the Sochi Winter Olympics.

Many Russian athletes may have been banned, but perhaps people will look back and mark 2014 as the year that Russia got serious about stamping out doping.

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MUSEUM OF ASTRONAUTICS Children who dream of interplanetary travel will be thrilled with a visit to the Memorial Museum of Astronautics. This museum has a real Mission Control Centre – a giant screen that shows where the International Space Station is and how the astronauts live. There's also a ride that simulates a space flight. Guests can stop in the Mir space station and wander among space suits, containers for growing orchids in space and ejector seats.

Address: 111 Prospekt Mira, Moscow.

Telephone: +7 (495) 683-79-14; Hours of operation: Monday to Sunday from 11:00am to 7:00pm. Tickets, €3. Best for ages four and over.

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