Evgenia Nedosekina “The Shadow Empire”

the shadow empire A TRAGIC TALE OF ONE STATE

JENNY NEDOSEKINA

the shadow empire A TRAGIC TALE OF ONE STATE CHERKIZOVSKY MARKET

JENNY NEDOSEKINA 2011

“For example, the tiny ant, a creature of great industry, drags with its mouth whatever it can, and adds it to the heap which she is piling up, not unaware nor careless of the future.�

Horace

CONTENTS FOREWORD

AND HE GAVE BIRTH CHELNOK.HELLO WORLD FUSION UNDER ATTACK DEATH TRACES THE SOAP EPILOGUE

FOREWORD

One ant makes millions With the collapse of the old regime and the rapid emergence of free enterprise a new type of economy as well as a new model of power formed. A truly unique phenomenon of a city within a city, Cherkizovsky Market had its own culture and lifestyle. A city state that completely changed the consumption patterns of moscovites and even the relations between Russia and the World.

Following the decree regarding “Freedom for trade” in 1992, issued by president Yeltsin which legalized business in the form of trade, many people took on new types of profession and entrepreneurship spread swiftly. Starting from kiosks and growing to markets one business-savvy man in particular established a whole empire based on the suitcase trade and gray customs – Mr Telman Ismailov became one of the first millionaires of Russia, providing the disrupted and torn country with a variety of foreign goods. Founded in 1993 Cherkizovsky market grew from just a few containers to a gigantic trading zone, transforming an empty unused space into a trade hub.

Giving jobs to millions of people it established steady relations with countries such as Turkey and China and developed the stagnated economy within Russia itself.

Growing to an immense size, comparable to that of a state such as Monaco, Cherkizovsky market not only became a central spot for trade, but also an urban and social phenomenon albeit one with an informal character. Set up within Moscow’s territory it became an integral part of the city’s cultural landscape that formed a new type of design. A place where ethnic communities could co-exist in equity, with the possibility of creating their own roots and a sense of identity. Regarded by most as a negative display of the country’s current situation,

Cherkizovsky reflected the overall relationships between the now former republics and became a something of an isolated city.

While one big ant made millions by attracting other ants, another highly ambitious man, ex-mayor Yuri Luzhkov, was determined that Moscow should be a place for high society and luxurious shopping, thus Okhotniy Riad was born in 1997.

Destroying a central square, used previously for manifestations and protests, Luzhkov made his way into the trading arena by constructing a high-class underground shopping mall for the future by investing 15 million dollars from the Moscow government budget (but in fact it was 350 mill $) and holding a competition for the reconstruction of the square. Despite such ambition the grand aim of making profit by selling expensive brands failed, as Moscow lacked sufficient consumers for such products and the “underground pit” brought more attention to its own construction rather than to what it sold, being highly criticized by professionals and locals alike. Subsequently the concept turned towards attracting the newly formed middle class society, but still failed to address the majority of the population.

The two contrasting strategies of development, one bottom-up, the other top-down show the different courses in which the burgeoning market economy tried to develop an ideal commercial environment and what impact it had on design.

Showing the formal and informal back to back, one was destroyed without the possibility of adapting, while the other became a national treasure.

Jenny Nedosekina

RAGS TO RICHES

Telman Mardanovich Ismailov, who has by now achieved the dubious status of oligarch, has been known for being very extravagant and throwing lavish parties. He was born in 1956 in Baku into a family of twelve children. However members of that diaspora claim that his real roots can be traced back to a small village on the border of Dagestan called the Red Village. In Azerbaijan it is often called the financial capital, as many of those who made fortunes and have some power in the republic come from there. Telman Ismailov a talkative and charming man, would not have built his business, if he didn’t have a gift for negotiating and persuading people. Smiling, he says that starting a business in Moscow, he was faced with attacks by bandits, but was able to explain to them that they’re better off not dealing with him. He convinced the capital beaurocrats that the idea to open the first commercial shops, and markets is a good one.Having made his fortune in trade, Telman Ismailov switched to more ambitious projects.

Telman’s father had a successful textile business, and Telman, the tenth child in his family, entered the world of trade at 14. However Baku soon became too

As Lenin said, the son of a prosecutor must be a prosecutor. Well, a son of a trader should be a trader. All my brothers and sisters graduated, three became doctors, four - lawyers, two engineers, and my brother and I - the workers of Soviet trade. I like this word more than a "businessman" or "merchant".

small for Telman. Years later he had a vast collection of rare watches amounting to 2000 items and a golden jet, but it all started when Telman opened his first business, in 1987, a cooperative, whose development led to his acquaintance with Yuri Luzhkov.

On July, 13th, 1989 the future king of Cherkizovsky registered the company AST named for the first letters of his sons’ names. Within a year he had opened 50 shops around the city. Following a chain of kiosks, he opened a market in Luzhniki. As of today 31 companies make up the AST group, each involved in various types of businesses from jewelry to the construction of large hotels.

According Expert magazine, the main value for Moscow officials of such business figures as Ismailov, was that in the early 1990's they helped establish a stable flow of funds into the, then tight Moscow budget, (which was not without benefit for these metropolitan officials themselves). Since then, the Ismailov empire has grown in great leaps, and the owner of Cherkizon entered the cohort of businessmen close to the city authorities.

There were many unpleasant moments. They tried to blow up a car. In 1994, we were forced to buy a bulletproof car.

Who comes up with an idea first, wins. I came up with this idea, and I got support.

In the mid-90s. Money came, I had to invest somewhere, so I came up with ideas. For example, we bought large quantities of Chinese goods, bought an annual turnover of several local factories.

AND HE GAVE BIRTH

SITE IN 1991

SITE IN 2010

In 1992 president Yeltsin issued decree 65 “Of freedom for trade”.

Once upon a time in 1993 while the city lay unaware and sleeping, something was bound to change. As the moon glistened in the deep blue sky, as though with a wave of a magic wand a container popped up out of nowhere, and then another one.

Somewhere nearby the man stood in silence, counting away the pennies, a sense of doubt and worry wrapping him like a cold blanket, yet the deal was made, the hour had struck. He would return to his office with faded wallpaper and ghosts of the glorious past, reminiscing of the good old days of triumph and ambitious goals.

It was getting darker, he had no desire to witness the process any longer. Cherkizovsky, what kind of a name is that? He trailed off into the night thinking of the prophecy about one short stocky man who would one day break the curse...

Photo: Itar-Tass agency

The soviet type of trade died instantly. The decree not only allowed people to trade, get into brokerage and procurement but also to transfer goods across the borders without tax and without special authorization.

People went out selling in the streets, squares, boulevards and underground passages. Compared with the number of state markets in the soviet times, around 32

in Moscow, by 1992 this number had rocketed to 240 in 1999. This new type of economy invaded such spaces as Palaces of Sport and stadiums. These former sports facilities, now in a state of stagnation because of a lack of funding, became central locations for small businesses. This system of consumption replaced industry within the city, while architectural practice could not provide traders with any real ways of organizing their spaces.Spontaneous privatization of space occurred everywhere.

Map of Cherkizovsky market

www.cherkizovskyrinok.ru

Cherkizovsky Market

Vatican City

F o u n d e d

1993

1929

A r e a ,

234

44

OfďŹ cial language

Chinese, Russian; Tadjik, Azeri, Vietnamese also widely spoken

Italian

Government

Monarchy

Ecclesiastical

Population

100 000

829

C u r r e n c y

Roubles, dollar, Yen

Euro

Number of tourists

2 000 000

17 000

180 000 000 $

9 589 710 $

G

D

h a

P

Monaco

Singapore

1861

1819

200

71000

French, but Italian and English also widely spoken

English, Malay, Chinese, Tamil

Constitutional monarchy

Parliamentary republic

30,589

4,987,600

Euro

Singapore dollar

13, 698

106,523

5.888 billion $

222,700.6 billion $

Cherkizovsky market of course did not grow overnight, however over the years it increased to such an immense size that it could be compared to Monaco. It became a truly unique phenomenon, a city within a city with a GDP 20 times more than the Vatican’s. Over one million people from all over Russia travelled to this market at weekends to buy and sell. It is difďŹ cult to draw up exact numbers on anything concerning the market, which was almost completely based on a shadow economy. Different sources say that the annual revenue of Cherkizovsky was around 180 million dollars, however Russian businessmen claim that it may well have amounted to tens of billions of dollars. OfďŹ cially only 15000 workers were registered at the market when in fact over 60 000 people worked there.

Cherkizovsky Market was established in 1993 on a plot of land of 234 hectares, which belongs to the Russian academy of physical education and sports. At this time a lot of sports facilities were in a state of utter deterioration and in considerable debt, they got no funding from the government budget and thus had no choice but to lease their land, which was often transformed into open air markets. And this was the case with cherkizovsky market. Unsuccessful economic reforms had led to a signiďŹ cant reduction in the income of Russian citizens. So thanks to their low prices, such markets have became a major shopping destination for the bulk of residents First decree to shut down the market and build in its place a residential complex

Opening of a synagogue

1993

2000 1997

Opening of Cherkizovsky market, area = 234 hectares, 12 retail spaces, land leased for 49 years

2001 Fire on the premises

In order to understand the nature of the phenomena that existed for almost 17 years we trace the history of this city-state

Start of investigation on counterfeit goods by the state

The Supreme Arbitration Court of the Russian Federation on December 15 last year, acknowledged the right of the federal property on all 66 acres of land under private Cherkizovsky market.

Strong fire on the premises, roof collapses

The Moscow Arbitration Court upheld a claim by the Russian State University of Physical Culture, Sport and Tourism (RGUFK) to one of the tenants of the former Cherkizovsky Market LLC Fount groups "for the release of land. The court ordered the defendant to demolish illegally constructed stalls

Third attempt to close the market

2004

2006 2005

Strong fire on the premises

2008 2007

2010 2009

Fourth attempt to close the market

Bomb attack in the market, 14 killed; second attempt to close the market

Temporary closure of the market due to violations of sanitary and fire norms

Start of demolition of LLC AST-Trans Service

The state of light industry, as described by Minister Khristenko was, despite the 2 billion dollar funding for the its modernization in the late 80s - early 90s, still considered to be critical. Businesses had reduced their industrial output, and then began to resell their equipment to Turkey and China, where light industry was rapidly developing. At the same time the untamed and grey market of the suitcase trade was born, which was also described in Khristenko’s report. True, in recent years, the share of goods from the “grey” economy (underground and illegal imports) has started to decrease, but it is still extremely significant: the market has acquired a semi-criminal nature so that the budget annually loses about 650 billion rubles in unpaid taxes, and price discrimination working in the favour of illegal goods has strangled domestic production

According to several newspaper articles the FSB had its own channel for counterfeit goods.

Investigators stated that the former dean of the Russian State University of Physical Culture, Oleg Matitsyn leased 664.8 thousand square meters to Telman Ismailov. Lease payments were transfered to the account of the University, bypassing the federal budget, and thus, according to SU UPC Attorney-General of the Russian Federation, the state suffered damage amounting to 77.6 million roubles.

CHELNOK. HELLO WORLD

photo: Itar-Tass

The birth of the “suitcase trade” in Russia is part of the liberalization in the economy and was exacerbated by the development of international tourism of the late 80s. The main driving force stimulating the growth of the new middle class and of its actions in the mid 90s was the economical crisis that pushed a significant part of the population into business enterprise. According to official statistics the number of business entrepreneurs grew 4 times from 1992-1993. In the context of the total trade deficit the phenomena of the” suitcase trade” made a substantial contribution to the saturation of the domestic market. The imperfection of the Russian legislation system allowed individuals to avoid registering their businesses, therefore making possible the existence of such structures as Cherkizovsky market. The suitcase trade provided job opportunities for almost 10 million people in the mid 90s in Russia. This business began to develop owing to the opportunity to freely import of goods by individuals up to the sum of 5000 dollars. This benefit opened a channel of tax free commercial import. Suitcase traders did not pay any taxes, except for the fee for the right to trade.

The weak development of the retail infrastructure and insufficient demand for high price consumer goods added the spread of the suitcase trade in the early 90s. As a result this model was very effective. This efficiency and the scale of profits led to the formation of a developed infrastructure around the busines, which included wholesale markets, tourist and transport companies in Russia, and also hotels, shops, storages and factories in Turkey and China, specializing in Russian clientele.

The market offered the best rental rates and conditions, security and parking to traders, which is why it grew so large. The cost of renting a stall or place, according to the owners of containers, ranged from 1000 to 4500 dollars monthly, and this amount was paid directly to the leaser. Another 58,000 rubles a month, was paid directly to the market administration. You could rent from anyone - the owner, from another leaseholder or another subleaser - a truly free market, almost like the wild west. Moreover, it was possible to rent half of a container or a quarter.

According to Goscomstat of Russia, products imported by suitcase traders from the CIS countries accounted for almost one third (around 2,5-3 billion dollars per quarter) of the whole Russian import from these countries.

Microeconomics of “suitcase trade”

Generally, earnings on Cherkizovsky – were a seasonal thing. The best profits were made in the late summer, when children were preparing for school, in spring - when people dress more lightly, and in cold weather - when they rushed to dress warmly. The bulk of revenue was between six and nine o'clock in the morning

Shop-tour payment 300-400$ for 3-4 day trip

Transport of goods use of cargo-carriers 6-7$ per 1kg of product

Salary of market seller 150-200$ monthly rent of trading space 3000-4000$ per 1 sq meter annually

Practically any kind of trading activity was banned in the USSR. After the collapse the term “street economy” appeared, and street trade became the dominant model of behaviour and social interaction between buyers and sellers.

photo: Itar-Tass

“The most positive effect of this was the large number of commercial and semi-commercial services which, even when working illegally, were able to access relatively cheap credit (2-3 times lower than bank interest rates), then take the credit in good faith and transfer the money (for example, money to China could be transferred at 1-3% in 5 minutes), then quickly sell the goods (a container a day). Not one formal structure would go through this and even if they could, then they would have asked an exorbitant amount of money (or paperwork).

Ultimately it had the simple effect that a pair of sneakers in Lugansk cost half as much.”

CUSTOMS

Legend

informal control (connected with corruption)

MIA and FSB

movement of goods

CARGO CARRIERS

cash flows

LOCAL AUTHORITIES AND MILITIA

SMALL WHOLESALE MARKETS

SUITCASE TRADERS

SHOPS

HOTELS

FACTORIES

TRAVEL COMPANY

AIRLINE COMPANY

RUSSIA

suitcase trade infrastructure (Demoscope weekly)

LOCAL AUTHORITIES AND MILITIA ABROAD

The average sales volume on markets constituted slightly more than 200 thousand roubles monthly for each outlet. In Moscow however the average turnover was almost 500 thousand roubles, which is explained by the fact that Moscow markets still act as wholesale shipping bases for smaller traders in the regions.

Almost all payments for products were made in cash without paying any taxes. The unofficial control over markets went from criminal “roofs”(protection) to police and the municipal authorities. The most common complaints about the suitcase trade had to do with the low quality of products. Some of these complaints resulted in political action. For example in 1994 the Chinese government attempted to stop the suitcase trade from Russia as it affected the reputation of China.

FUSION

All in all 12 nationalities existed on the market : vietnamese, chinese, korean, indian, afghan, azerbaijan, uighurs, turks ukranian, tadjik, uzbek, russian.

60 000 chinese 17 000 tadjik

specialplan.blogspot.com

An active governmental campaign in 2000-2003 aiming to attract migrants to compensate for the rapid fall in the employable Russian population resulted in a flood of illegal immigrants and the formation of several large communities.

All major market announcements On Cherkizovsky market were broadcast in Russian and Chinese languages, before Vietnamese and Azerbaijan were added, but the Chinese finally won. Seven daily newspapers in Chinese were published at the market. The authenticity of different nationalities were presented in other forms such as food aisles with cafes, beauty salons and massage parlors .The poorest and most desperate of the Chinese population came to work in Cherkizovsky market, ones who would risk their life and heath for a mere 200-300 dollars a moth. In general the Chinese did not want to assimilate in Moscow; they did not feel comfortable here, even if they had money to buy an apartment, they preferred to return home.

The state also didn’t want them to assimilate and constantly raided the market and those who stepped outside the premises. Some people lived directly on the market, but mostly they lived in the vicinity, 16 people in one flat. Overall the various communities lived in harmony, mixed marriages happened. The majority of workers were on the market illegally because in order to get a work permit you had to present a pile of documents and wait for it to be processed for 6-7 months only to be legally permitted to work for 2-3 months. specialplan.blogspot.com

“The abundance of cheap authentic cuisine from all countries represented - certainly (where now can you get the fat-tailed sheep and fresh Chinese greens?).� Arseniy Popov, associate of the Institute of Oriental Studies RAS

Cherkizovsky had such notable landmarks as a Sinagogue, stadium and tadjik consulate

Public houses, spas, stomatology, kindergartens for the laborers all existed on the market

A very special place in Moscow only 20 minutes from the Kremlin . If you're looking for rare Chinese or Vietnamese herbs, ram's testicles, ďŹ sh sauce, thai massages etc - this is your place.

specialplan.blogspot.com

UNDER ATTACK

During the course of its 17 years of existence the Telman-created empire was constantly under attack by the Moscow government and many attempts were made to shut down the market. But not even a terrorist attack resulting in 16 deaths was a legitimate enough reason for its closure. By that time Telman had already entered the cohort of businessmen close to the city authorities, including the exmayor Luzhkov himself.

In 2009 a June report tendered by Minister of Industry and Trade Victor Khristenko stated that contraband goods not only cost the government great losses in taxation, but also undermined the development of the country's light industry. The Supreme Arbitration Court of the Russian Federation on December 15 acknowledged the right of the federal property authorities to all 66 acres of land under private control at Cherkizovsky market.

The prime minister himself broached the matter at a cabinet meeting June 1, leaving little doubt what he had in mind. “The fight is on, but results are few,” Mr Putin said, referring to smuggled goods at the market, according to news reports. “The results in such cases are prison terms. Where are the prison terms?” (NY Times). The official occusations related to the violation of fire and health codes, and the counterfeit goods worth 2 billion dollars.

The Moscow Arbitration Court upheld a claim by the Russian State University of Physical Culture, Sport and Tourism (RGUFK) to one of the tenants of the former Cherkizovsky Market LLC Fount groups "for the release of land.

DEATH

29.06.2009 Cherkizovsky Market was ofďŹ cially shut down and removed from the register of market territories .

12.05.2010 Demolition of structures started As of today 70% has been c l e a r e d

Demolished

Empty conteiners

Photos by Dmitriy Chistoprudov. 28-300.ru Photo Agency

A recent interview with Mr Putin opened up that new sports facilities for the Russian academy of Physical Education and Sports will be constructed on the premises of the former market

Photos by Dmitriy Chistoprudov. 28-300.ru Photo Agency

TRACES

The real reasons for closing the market remain ambiguous, whether they were connected to the extravagant opening of a luxurious hotel in Antalya, Turkey or an anti-Luzhkov campaign, we cannot say for sure, however the prophecy was fulfilled and the market was closed.

The shutting down of the market left 100 000 people without work and had a serious impact on business not only with China and Turkey but also with Russian cities that relied on its trade. Many of the workers were forced to return to their homelands or relocate to other markets which were still open. The first consequences of the closing of the market affected such cities as Krasnodar and Ulyanovsk and several other cities in the central part of Russia. The goods that were previously solely purchased at Cherkizovsky, were already all sold out and there were no other places to buy them.

The closing of the market also led to a dispute between the Russian and Chinese government, as many of the Chinese entrepreneurs lost their business. A Chinese delegation arrived in Moscow for negotiations in the case of 150 Chinese traders detained in a crackdown at Cherkizovsky Market. Led by Gao Hucheng, Vice Minister of the Ministry of Commerce (MOFCOM), the delegation was composed of officials from MOFCOM, the Ministry of Foreign Affairs, China Customs and trade officials from Zhejiang and Fujian provinces. The result was a government project to build new state controlled markets in Moscow, especially for those Chinese workers. From recent information in February this year the construction of a commercial complex, "Greenwood", into which 350 million dollars were invested by a Chinese company officially began to attract traders.

I worked on the market for 8 years. Of course people need such structures as cherkizovsky, a rich man could go buy anything, but a common man with a salary of twenty thousand roubles and those who live beyond the Moscow Ring road with a salary of ten thousand, of course it’s cheaper for them to buy things on the market. Cherkizovsky functioned as any other shopping center, they paid taxes and were checked quite frequently. For a person who wanted to buy or sell something, this market was the ideal place. People from all over Russia came here. Generally the people that worked there lived in harmony, I myself have a Russian wife. A lot of people went to the synagogue, but when the market got closed, it was also closed.

Of course I went to the market, like many I tried to survive and shopped here.

I didn’t go there often as I worked on two jobs, but when money was tight I went straight to cherkizovsky. Such markets are necessary for the city, as not everyone is rich, a lot of people are poor. I can say about the post office, as I worked there for some time, now could you live on twelve thousand roubles?

It’s hard when you’re alone, but what if you have a family? Of course people went there and bought everything from food to clothes. The quality of course was bad, but there were no alternatives. Once I got lost on the market, after that I didn’t go there anymore. The market was as big as, in my time, vineyards in Moldova, from horizon to horizon. It was immense. Cherkizovsky market, just like the Kremlin, was a state within a state.

“The owner? Of course I know him, he came here. But it wasn’t in his duties to watch if things ran right. The president, Ismailov? No it wasn’t in his duties. He went around the market, but rarely, maybe once a year. We weren’t put in the know.”

“It was like an abscess that was growing, sooner or later it would have broken, the people would have protested anyway.

Such structures are needed but not in that kind of quality or relation. Cherkizovsky for me is a synonym of survival.”

The closure of Europe’s largest wholesale market could not go unnoticed by the press and apart from the official reasons of fire and health code violation, newspapers and reporters bombarded the media with their different investigations.

Reason 2: Complaints made by moscovites about the excess of migrant workers on the territory of Cherkizovsky market and its surroundings, as well as the violation of legal stay in Russia for foreign citizens. True, the majority of workers were employed illegally, however the many police raids that happened did not put an end to the markets’ existence.

Reason 3: Fight against counterfeit products. The closing of the market, according to some views, was an attempt to make the trade more civilised, that is to move it into specialised shops. However the closing of just one market could not in any way stop the import of counterfeit and smuggled goods through the “gray customs clearance”.

Reason 4: Support of domestic industry. The minister of Industry and Trade Khristenko stated that the “gray” import was the main factor that practically destroyed the country;s light industry. The corruption of the "power" structures and the judicial system, inefficient tax system, colossal administrative barriers, lack of loans in domestic banks, unrealistically high interest rates on bank loans, etc., etc. In other words, it turns out that the last 10 years the Russian government deliberately did everything so that the industrial production in Russia was unprofitable.

Reason 5: The last and most discussed reason in all the media was the grand opening of Ismailov’s 1.4 billion dollar investment - a luxurious five-star resort in Antalya, Turkey. It was called Mardan Palace, after Mr. Ismailov’s father, with 560 rooms, 10 restaurants, 17 bars and a lake-size swimming pool. In a few days after the opening, Prime Minister Putin broached the matter of counterfeit goods in a cabinet meeting, stating that results are few.

According to some journalists another reason of the attack against the market was an attempt to destroy the framework of the Moscow administration system, taking a long shot against the now ex-mayor Luzhkov.

“Of course, if you applied the official hygiene, fire and labor codes, it was not done the way it was written,” Arseny Popov, an authority on the Chinese diaspora in Russia with the Russian Academy of Sciences, said of the market’s operations. “But nothing was happening there that wasn’t happening for the past 15 years.”

(NY Times) “The impact is huge. Behind each businessman in the market, there was at least one supply factory in China.” (Beijing Today) “In order to make their products more competitive, domestic producers need to develop trade in the shops, but not in commodity markets, where most of the smuggled goods are sold.” (Vedomosti) “The results are prison terms, where are the prison terms? A few years back I practically disolved the whole of the Customs administration. And what? The channels are still working as before. On one market there are smuggled goods worth 2 billion dollars!”

(Vladimir Putin)

THE SOAP

Cherkizovsky market had such a big impact on the everyday life of people, that its spirit got reincarnated into a television soap-opera called Cherkizon: Disposable people. The initial project of the show was called Cherkizona referring directly to the closed market.

However soon afterwards the title was changed to Disposable people thought to be more universal and sellable to CIS countries. Although the head producer of RWS had the opinion that „someoe simply didn't like that the show directly related to the real market and that it was a touchy topic for our leaders�.

Several pavilions of stage design with a total area of 4 thousand square meters were built on ZIL factory to recreate the market.

The project is designed for a wide audience: "We expect that the audience iare those people who know what the market is, and realize that it was the only way to make money", - said Artem Ivanov, PR The show aired week days at 5:30 pm on Ren TV and ran for 60 episodes Uncover

the secrets of Moscow's largest market in the new show Cherkizona: Disposable people following the gruelling tale of widowed Sergey and his 10-year old daughter Dasha. After the death of his wife secretly Sergey quits the hospital, sells his apartment, and against the will of Dasha's grandfather takes her to Moscow. Full of hope for a happy life, the characters accidentally wind up on the infamous Cherkizon where the girl disappears.

The significance of Cherkizovsky market was that it supported small businesses, for which the main obstacle was always rent. While Cherkizovsky built the trade across all of the country, Okhotny Riad focused mainly on Moscow consumers.

Markets do not only play the role of trading and working zones, but also give different people the opportunity to integrate into a society which is desintegrated by erasing the invisible borders. The environment of the informal can be designed in such away as to avoid the negative parameters and connect the infrastructure with the “civilized” world.

Markets do not only play the role of trading and working zones, but also give different people the opportunity to integrate into a society which is desintegrated by erasing the invisible borders. The environment of the informal can be designed in such away as to avoid the negative parameters and connect the infrastructure with the “civilized” world.

The significance of Cherkizovsky market was that it supported small businesses, for which the main obstacle was always rent. While Cherkizovsky built the trade across all of the country, Okhotny Riad focused mainly on Moscow consumers.