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Russia's space program changes course

pragmatism and profit prioritised over prestige

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Russian Asylum

PICTURES AND numbers

Snowden's political odyssey

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The current whereabouts of NSA-whisteblower Edward Snowden remains unknown.

On August 1, US National Security Agency whistleblower Edward Snowden left Moscow’s Sheremetyevo airport after he was officially granted a year's asylum by the Russian Government. White House spokesman Jay Carney criticised the decision, saying it dealt a blow to USRussia bilateral relations and that the White House was reevaluating whether an upcoming meeting between US President Barack Obama and Russian President Vladimir Putin would still take place. Washington wants Snowden extradited so he can be put on trial for espionage, after he leaked information about US internet and phone surveillance programs. However, the asylumseeker's father, Lonnie Snowden, in his first interview with the Russian media, thanked the Kremlin for its“courage’’ in protecting his son. Amnesty International Russia also announced its support for the decision.

Elections

Convicted blogger may run for Moscow mayor

In July, Russia banned all imports of kangaroo meat from Australia, after a shipment from an unpermitted supplier was discovered in the country’s Far East, Russia’s agricultural watchdog’s press service confirmed to RBTH. The ban came just eight months after Russia had lifted its previous four-year ban on kangaroo meat — which had arisen due to fears of bacterial contamination — and granted sole access to ex-

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Russia bans kangaroo meat

Reopened market lost

From July 1-17, the Russian city of Kazan hosted the 27th World University Games, the largest student games to date. More than 150,000 guests and tourists visited the city during the Games. The Russian national team won 292 medals, beating the previous country record set by China, with 155 medals.

351

The total number of events at the Games. The top five teams were Russia, Japan (84 medals), China (77 medals), South Korea (41 medals) and Belarus (13 medals).

160

The Games welcomed 11,759 athletes from 160 nations. Only two of the countries invited did not take part: Papua New Guinea and Democratic Republic of the Congo.

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Initially, 40 candidates were nominated for the elections, but few managed to pass the registration process, which required 110 signatures from Moscow municipal deputies, among other requirements. It was Sobyanin who helped some opposition candidates get registered by calling on municipal deputies to give their signatures to other candidates, including Navalny.

porter Macro Meats. A shipment on July 12 was found to contain meat from an unauthorised supplier, Meats Pty Ltd. According to Macro Meats’ general manager, Ray Borda, that meat should have been sent to the EU. The company behind the error may be an independent cold-storage handling company, which Mr Borda didn't name. The ban will also affect Australia's kangaroo-meat exports to Belarus and Kazakhstan, because they are members of the same customs union as the Russian Federation.

LGBT LAWS

Sobyanin, who is running as an independent but has the backing of Russia’s ruling party United Russia, has 55 per cent of the vote, according to VTSIOM. Other contenders don’t look like serio u s c o m p e t i t i o n : I va n Melnikov, a Communist Party candidate, has 4 per cent, and Sergey Mitrokhin, from the liberal party Yabloko, has 3 per cent, VTSIOM reports.

Why there won't be any war between China and Russia rbth.asia/48053

Vodka off list Some Sydney bars have taken Russian vodka off their shelves to protest against new laws in Russia, which state MP Alex Greenwich describes as “draconian” and “homophobic”. Greenwich says the laws, which concern gay propaganda among minors and child adoption by samesex couples, have provoked outrage in his Sydney electorate, prompting him to write to Foreign Minister Bob Carr regarding the issue.

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World University Games Russia's WARM-UP for next year's winter olympics

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Despite being found guilty of embezzlement in July — a charge some critics claim is fabricated and politically motivated — and being sentenced to five years’ imprisonment, Navalny has been released on bail and is awaiting an appeal. When he arrived at a Moscow railway station from Kirov on July 20, following his release, he was greeted by cheering supporters. However, according to the latest electoral ratings from Russ i a ’s p o l l i n g a g e n c y VTSIOM, Navalny only has 9 per cent support, coming in well behind incumbent mayor Sergei Sobyanin.

Moscow's mayoral race is in full swing less than a month before the capital's September 8 elections. The elections will mark the first time in a decade that Muscovites have been able to choose their mayor by popular vote, and it’s looking like the race will also include controversial anti-corruption blogger Alexei Navalny as a candidate. Navalny gained public prominence in late 2011, during the largest wave of public demonstrations in Russia since the early 1990s, when people were protesting against alleged vote-rigging in the parliamentary elections.

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Cultural Cold War: How Russia’s new laws prohibiting gay-propaganda are alienating it from the West

Human rights come under spotlight On June 11, the Russian State Duma voted to adopt a bill that banned the distribution of ’propaganda of nontraditional sexual relations’ to minors.

Popular support for the new law

yaroslava kiryukhina

Quotes

Nikita Mikhalkov actor and film director, known for Oscar-Winning Burnt by the Sun

When the world is changing in such a way that completely unnatural things are taking place, what can we expect from cinematography? A good, energetic film simply can't exist in a world where same-sex marriages are officially legalised."

Igor Kochetkov

CHAIRMAN of the LGBT network in St Petersburg

We insist on equal rights for all and we will continue to stand up against the patriarchal values that today are actively being promoted by the Church and the Government. We're doing this because we don't think these values and norms fit into a modern society."

In 2011 Moscow banned gay pride parades for the next 100 years, prompting gay-rights activists to hold unsanctioned rallies.

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POPULARLY labelled“Russia’s anti-gay law,” the new bill has attracted fiery international criticism for its potential implications for the human rights of Russia’s marginalised lesbian, gay, bisexual and transgender (LGBT) communities. Lyudmila Alexeyeva, former Soviet dissident and cofounder of the human-rights watchdog the Moscow Helsinki Group, has called the legislation“a step toward the Middle Ages”. But Kirill Kobrin, journalist and historian at Radio Free Europe’s Russia Service, has a different take: “It was unthinkable to even discuss these issues 20 years ago in Russia,”he says. Kobrin thinks there has been such a shift in public consciousness that now, under the Kremlin’s lead, LGBT rights are the focus of public attention and debate in Russia, albeit – following the new law – censored debate. Elena Mizulina, the conservative deputy who co-authored the legislation and who heads Russia’s State Duma Committee on Family, Women and Children, has said that the law aims to protect children from information that rejects “traditional family values”. Specifically,

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the bill prohibits“the spreading of information”that aims to: (1) create non-traditional sexual attitudes among children; (2) make non-traditional sexual relations seem attractive; (3) give “a distorted perception about the social equality between traditional and non-traditional sexual relations”; or (4) enforce information about non-tradition sexual relations that evokes interest in such relations.

Russian President Vladimir Putin has expressed his support for the new law, saying its purpose is only to“protect children”.Putin has said that homosexuals are “not being discriminated against in any way.” But how, critics wonder, is this legislation anything but discriminatory? rbth.asia/48397

Keeping a low profile Masha, a Russian woman in her 30s, is looking happily at her partner Aida, who has agreed to enter into a sham marriage so the two of them can be together. yaroslava kiryukhina rbth

OTHERWISE, Aida’s family, who are from the Russian federal republic of Dagestan, would have forced her to marry a groom of their choice. In the Islamic republic, being gay is equivalent to being an outlaw, and the only gay club in Dagestan’s capital, Makhachkala, was set on fire, while women thought to be lesbians were beaten outside. Masha and Aida have come out only to a select group of friends, most of whom are lesbian or gay. When they applied for a mortgage as a couple, they were refused on the basis they were both women; when Aida applied as a single woman, she was granted the loan.

The sham marriages are an effective cover-up, not only for the lesbian couple, but for the grooms: two gay men who are keeping their sexuality private for fear of public condemnation and discrimination. Being gay in Russia is accepted only in certain professional fields, such as the fashion industry. Being openly gay at work for many could result in discrimination. Anton Krasovsky, a political journalist, television personality and former editorin-chief at the Russian cable TV channel Kontr TV, was fired recently when he came out on air. “I came out because gay people in Russia are suffering,” he said. “It’s time for courage.” Masha and Aida, however, think it’s unwise to publicly protest against the“gay propaganda”ban, saying it’s only making the situation worse for Russia’s gay and lesbian community.

Regions legislate gay propaganda SIMILAR anti-gay propaganda laws to the one adopted by the Russian State Duma this June have been passed in 11 of Russia's regions and one city. The regions and dates of adoption are: Ryazan Oblast – April 2006; Arkhangelsk Oblast – October 2011; Kostroma Oblast – February 2012; St Petersburg

– March 2012; Magadan Oblast – June 2012; Novosibirsk Oblast – July 2012; Krasnodar Krai – July 2012; Samara Oblast – July 2012; Bashkortostan – August 2012. Kaliningrad Oblast – February 2013 (this bill bans "propaganda of homosexuality" among adults as well as minors).

THE latest polls from the AllRussian Public Opinion Research Centre (VTSIOM) suggest the vast majority of Russians (88 per cent of respondents) support the country's new "anti-propaganda law", and a majority (54 per cent) believe homosexuality should be criminalised. VTSIOM also reported that 94 per cent of respondents had never encountered “gay propaganda”, even though 84 per cent opposed it. Russia's best-known gay-rights campaigner, Nikolay Alexeyev, has filed a hatred incitement suit against the controversial MP Elena Mizulina, one of the deputies behind the law. He has also accused the government of crimes against humanity, fearing the law will reinforce non-acceptance of the lesbian, gay, bisexual and transgender community. Russian journalist Lena Klimova's Facebook initiative Children 404 has called for understanding, tolerance and recognition of LGBT youth in Russia.

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Business

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Trade Incentives for entrepreneurs

Clearing the barriers to profitability for small businesses Maria Shpigel

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THE majority of Russia’s micro and small enterprises operate in the services sector because it’s there that startup costs are relatively low but profit returns can be considerable.

According to the World Bank, there are more than 500 criteria for classifying small businesses.The main law that regulates the boundaries of small business in Russia is the number of employees and revenue: a micro enterprise is a business that earns up to 60 million roubles (about $2 million) or employs up to 15 staff, while enterprises with earnings of under 400 million roubles, or $13.7 million, and up to 100 employees belong to the small-business

Hotels and restaurants make up less than 5 per cent of the small-enterprise sector.

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New national programs to support small business in Russia offer entrepreneurs new incentives in what it is known to be a challenging sector of the economy.

sector. Everything above that is medium or big business. Russia has adopted national programs to support small businesses, so being in that category may offer advantages to an enterprise, chief of which is a special tax regime that facilitates reports and minimises contact with fiscal agencies. However, the small-enterprise status might also introduce some new limitations, experts believe. For example, representatives of micro and small businesses find it harder to get a bank loan or find other sources of financing. Entrepreneurs also complain about heavy taxes, high administrative costs, rampant corruption and services foisted on customers against their will. It is more difficult for small businesses to counteract these phenomena than it is for big businesses, which in Russia have close links with the state. “A government official looks at their job as a source of benefits and extra earni n g s ,” c o m p l a i n s D i n a Krylova, president of the Business Perspective Fund, which protects entrepreneurs. “The last thing they care about is preserving small business, and yet they mean jobs and taxes,” she adds. In more developed countries, en-

trepreneurs are seen as more important than in Russia. But in spite of all this, 10 per cent of Russia’s population are engaged in small business – less than in Europe or the US. In Russia, the most successful small businesses are carrepair shops, dealerships and vendors of other consumer durables – they account for almost a third of the market, according to the Federal State Statistics Service for 2012. Next come real estate and construction operations, which account for a further

30 per cent of small enterprises. The processing industry (including textiles, metal work and electrical equipment producers) makes up nearly 15 per cent; agriculture, hotels and restaurants, transport and communications about 5 per cent. “Russia is short of entrepreneurs in the innovation sphere and in high-tech business,” Krylova says. “There is also a need for entrepreneurs in retail, logis-

tics and after-sale services,” says Anatoly Leirikh, member of the Russian Business Council. Krylova continues: “Besides, these are the areas in which small and mediumsized companies can be as successful as big ones. Something revolutionary and new is needed if consumers are to become interested. “The markets in which small and medium-sized companies work are highly competitive. This goes some way to explaining the lowprofit margins.” Profit-levels vary from region to region, with Moscow usually being ahead of the pack, based on average wages and the profits of individual entrepreneurs in each of Russia’s regions. The average annual income of a public-catering establishment, with a space of up to 50 square metres in Moscow is 3 million roubles (about $100,000); in Yamalo-Nenets Autonomous Area, a similar catering establishment can earn only 1.55 million roubles (about $53,000) a year; in the Belgorod Region, the figure is just 50,000 roubles (about $1700). A beautician or a hairdresser working at home in Belgorod may earn 100,600 roubles a year (about $3500); in Krasnodar, they bring in

330,0 0 0 roubles (about $11,300); and in Moscow 90 0,0 0 0 roubles (about $30,900). However, not all jobs in Moscow are much better paid than in the regions. The incomes of taxi drivers, cooks, sports coaches and caretakers are about the same: no more than 300,000 roubles (about $10,300) a year.

Christian Courbois

Bonnie van der Velde

Luke Jones

Olaf Koens

WESTPOST, st petersburg founder and director

In Your Pocket city guides, moscow founder and publisher

Antal recruiting company, moscow partner

Journalist and writer, moscow

Ten per cent of Russia’s population are engaged in small business - less than in Europe or the US.

SPs and LLCs: the differences The main difference in Russia between being a limited liability company (LLC) and a sole proprietor (SP) is the registration process. To become an SP, documents need to be submitted at the local tax inspectorate and a small duty paid. Foreigners can register as SPs only if they have a work permit and temporary or permanent registration (ie a Russian address). To register as an LLC, authorised capital of at least $340 is required, as well as a written company charter. Another difference between being an LLC and an SP is in liability. In the case of any claims or violations, an SP is personally liable, while an LLC is liable only to the extent of its authorised capital.

QUOTEs

The attitude of Russian bureaucrats needs to be changed: they think they own the country, not that they work for the people. This class always seems to have existed in Russia. A positive is that there's a very hungry and rapidly expanding middle class that has a larger per cent expendable income than in the West.

We would be happy to work closer with the Russian Tourism Committee, but it is hard to come to a mutual understanding. We know what foreigners want when they visit Russia, and would be able to really support the Russian Government to attract more visitors and improve Russia's image abroad.

I've lived in Russia for 11 years now. Why do I live and work here? The answer is simple: there are currently around 300 recruitment agencies in Moscow (London has 15,000). The figures speak for themselves: the European market is long-established, whereas here in Russia there's still so much to do.

I choose to live here because I think Russia is inhabited by great people. At first locals might come across as reserved and a bit unfriendly, but as they get to know you, that changes. If a Russian calls you a friend, it generally means they'll be pretty open with you and eager to help you when you need it.

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Innovation

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Biochemical Congress showcases the talent that is turning the country into an important hub for innovation

Russian science gathers momentum Julia meshavkina special to rbth

FEBS is one of the world's largest forums on natural science, and this year’s congress attracted 3000 delegates from Europe, the US, Canada, China and Japan. This is the second time Russia has hosted FEBS; it was also in Moscow in 1984. Since then, Russia has undergone profound changes, and the field of biology has also seen major developments, including the cloning of mammals, stem-cell transplants and unlocking the human genome. Over the past thirty years, Russia’s scientific sector has faced hardships that alienated it from both cutting-edge research and overseas colleagues. Difficulties included funding cuts, unpaid salaries, the breakdown of established scientific institutions and a brain drain as some of Russia’s top scientists left for the West. Despite these setbacks, Russian biologists are now being recognised for their research and innovation. One example is the Iona Skulachev Project. In 2004, Russian biochemists, led by Vladimir Skulachev, synthesised the SkQ1 compound – an antioxidant which is being touted as an anti-ageing medicine. Another innovation attracting worldwide attention is the development in Russia of a fluorescent protein-production technology, which allows living micro-organisms to be studied on a cellular level. The technology was developed by Sergey Lukyanov, biologist and academic at the prestigious Russian Academy of Sciences. Also gaining international attention has been a molecular nano-transporter – technology capable of delivering medicine into cell nuclei. Developed by scientists at the Russian Institute of Gene Biology, it’s hoped the molecular nano-transporter will improve cancer treatment results. Russia was awarded the opportunity to host this year’s FEBS Congress back in 2011. It was invited to compete for the event when FEBS representatives travelled to the Siberian city of Novosibirsk in 2008 for the Fifth Congress of the Russian Society of Biochemists and Molecular Biologists, where they were impressed with the high level of the presentations they heard. The 38th FEBS Congress gave Russian participants the

A concentration of innovation The Skolkovo Innovation Centre is a new science park outside Moscow. The centre's construction began in 2010, under a decree by then-President Dmitry Medvedev. Skolkovo's mission is to create a favourable environment for the development and commercialisation of new technology solutions. It aims to enable the close co-operation of scientists, engineers, business people and participants in educational projects. The centre comprises five major clusters, each responsible for a distinct area of work. They are IT, biomedical technologies, space technologies and telecommunications, energyefficient technologies and nuclear technologies.

Skolkovo projects Lesnoy Dozor (Forest Watch): Created by Skolkovo resident Ivan Shishalov, this terrestrial remote surveillance system helps prevent forest fires. Cameras and other sensors installed on mobile radio towers detect fire areas with 250metre precision, and alert the duty operator. The system could annually save 1.5 million roubles ($51,500) in fire-fighting expenses. Motorbike helmet with builtin navigation system: Invented by the company Art Business, the helmet comes with a visormounted navigation system, enabling the wearer to keep to their route without taking their eyes off the road. Voiceoperated controls further enhance road safety. The helmet will be marketed around the world at $2,000. Cancer treatment: The pharmaceutical company InErPharm has developed a cancer treatment that introduces chemotherapeutical preparations to erythrocytes. The method is thought to be less toxic and more effective than existing methods of delivering chemotherapy. The invention has been preliminarily tested on 36 patients, but the final conclusion as to its effectiveness will require a clinical trial.

Difficulties included funding cuts, unpaid salaries, the breakdown of established scientific institutions and a brain drain as some top Russian scientists left for the West.

The 38th Congress of the Federation of European Biochemical Societies (FEBS) took place during July in Russia's northern capital, St Petersburg.

The Skolkovo Innovation Centre, near Moscow, has been compared to Silicon Valley.

chance to network and discuss the progress of their research with international colleagues and experts. Aleksandr Gabibov, president of the Russian Society of Biochemists and Molecular Biologists and chairman of the FEBS organising committee, emphasised how important these contacts are. “There were many young scientists at the Congress, and they will be the ones to rebuild Russian science in the future. It’s invaluable for them to have the opportunity to evaluate their work's potential and to gain experience with international discussions at this level.” According to the chairman of the Russian Foundation for Basic Research, Vladislav Panchenko, more than 300 young Russian scientists took part in the Congress thanks to support from the fund. “You could almost say organisers managed to accommodate two events in one because there were twice as many speakers as in previous forums,” Polish professor and Congress consultant Adam Szewczyk said, adding that there were 11 Nobel Prize laureates among the participants: Sidney Altman, Kurt Wuthrich, AdaYonath, Roger Kornberg, Jean-Marie Lehn, Dr Richard Roberts, Susumu Tonegawa, Jules Hoffmann, Robert Huber, Aaron Ciechanover and Jack Szostak. The new Skolkovo Innovation Centre, which supports science and technology research and development, was one of the best-represented Russian institutions at the Congress. Delegates from Skolkovo gave an extensive lecture program and hosted discussions on stem-cell research, the bill on Russian bi-

omedical cellular products and the latest in cancer treatment. At one of the lectures, ProfessorVladimir Zelman, of the University of South California and member of the Russian Academy of Medical Sciences, spoke about a human genome program. Pyotr Fedichev, scientific director of the company Quantum Pharmaceuticals and Skolkovo resident, says without the international contacts made at events such as FEBS and the Skolkovo

It's hoped the molecular nanotransporter will improve cancer treatment results. lecture series, and without the support of large scientific centres, it is difficult for scientists to achieve success. “We would most likely not have achieved today’s results without the involvement of the Skolkovo Centre, which is funding two of our projects,” he said. AdaYonath, Laureate of the Nobel Prize for Chemistry in 2009, thinks that first and foremost it was scientific interest that brought everyone together at FEBS. Talking about Russian scientists, she said: “They have a complex future ahead of them, but a truly absorbing one.” Read more about how to invest in Russia's technoparks http://rbth.asia/48389

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Equality Women are poorly represented in Russian politics, although a handful have reached key positions

Widening gender gap in politics Russia is known for being a patriarchal country, but despite considerable barriers, some women leaders have managed to reach high levels in the political hierarchy.

profile

Elvira Nabiullina where she also went on to do postgraduate studies. From 1992-94, Nabiullina worked at the economic policy directorate of the Russian Union of Industrialists and Entrepreneurs. Her next position was Deputy Minister of Economics. In early 2000 she was appointed Deputy Minister of Economic Development and Trade. In 2003, Nabiullina became president of the Centre for Strategic Development, a nongovernment think-tank and the source of managerial cadre for President Vladimir Putin's administration. Nabiullina was then Minister of Economic Development from 2007 to 2012; in May 2012, she was appointed as a presidential aide.

Yaroslava kiryukhina

NACIONALITY: russian AGE: 49 Expertise: economics

current post: Elvira Nabiullina is the first woman to become head of the Central Bank of Russia. She assumed office on June 24, 2013. career: Nabiullina graduated in economics from the prestigious Moscow State University,

QUOTE

Vladimir Putin

1) Valentina Matvienko, head of Russia's Federation Council. 2) Olga Golodets, Deputy Prime Minister for Social Affairs. 3) Valentina Tereshkova, Member of Parliament and Russia's first female cosmonaut. 4) Alina Kabayeva, Member of Parliament and former Olympic gymnastics gold medal-winner.

says, albeit with a smile, that Putin has sexist attitudes and “is inclined to think a woman’s place is in the kitchen”. According to a 2011 poll from VTSIOM (the All-Russian Centre for the Study of Public Opinion), 14 per cent of respondents thought Russia had too many female politicians, 37 per cent thought their number should be increased, while 33 per cent thought the number should stay the same. Half of the respondents supported the idea of quotas for women politicians, and only 5 per cent strongly opposed the idea. Currently, Russia doesn’t have any prominent political parties that support the rights of women. Following the collapse of the USSR, the Women of Russia Party emerged, and - initially - had some electoral success. The conservative and essentially communist group, which positioned itself as promoting the interests of

women and children, won 8.1 per cent of the vote and 23 seats in the 1993 elections. However, the party is no longer a force in Russian politics and it hasn’t changed its political platform in a decade. Last year, however, the Russian Justice Ministry registered the new For Women of

remained a fringe movement. There have, however, been calls for the implementation of quotas for women politicians and Deputy Elena Mizulina is one prominent MP who promotes the idea. Kryshtanovskaya, however, doesn’t believe in preferential policies for women. She

"As yet, we don't yet have any mechanism to eliminate gender discrimination" – Tatyana Golikova

Russia's first allwomen party won 8.1 percent of the vote and 23 seats in the 1993 elections.

Russia Party, which positions itself as non-feminist but promoting equal gender participation. The party has about 100,000 members and promotes the“restoration of family values”. The Western feminist movement bypassed Soviet women and after the fall of Communism, feminism didn’t get a good rap in Russia and has

says it should be equal for all, and adds somewhat ironically: “Russian men are dying out at rapid pace.” And she has a point: there are 10 million more women (76,275) than men (65,639) in Russia, and the death-rate in 2010 was 8707 women and 17,787 men per 100,000 citizens, according to VTSIOM. In 2011, Russia’s then Min-

ister for Health, Tatyana Golikova, announced at a meeting with the UN High Commissioner Navanethem Pillay that Russia was preparing a gender-equality bill. “Russia doesn’t have any gender-equality legislation to and, as yet, we don’t have any real mechanisms to eliminate gender discrimination,” she said. However, the adoption of the bill was put on hold, and when a similar bill was approved by the State Duma in 2003, it was later blocked by the executive government. Women politicians in Russia, as in many countries, are subject to sexist coverage in the mainstream media and blogosphere. Undermining them by ridiculing or unduly focusing on their appearance and making allegations about their sexual relations with male politicians is common. In Russia, this has seriously undermined the credibility of those targeted.

I don’t know whether the male-female ratio should be defined by the law. It’s important to appoint the most suitable person, based on their personal and professional qualities. However, there's definitely a lack of women politicians in the government.

Irina Khakamada

presidential candidate in 2004 and prominent opposition politician

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russian president

WOMEN make up less than 14 per cent of deputies in the Russian State Duma (61 seats out of 450, following the 2012 national elections), and at the federal level their representation is even lower - at 6 per cent. In 2012, according to the Inter-Parliamentary Union (IPU), Russia was one of the lowest-ranked countries – at 96, along with Swaziland – in terms of women’s participation in politics and decision-making processes, with only 13 female senators out of a total of 163. As well as being limited in number, Russia’s women politicians aren’t portrayed as having a lot of influence, and none of them were listed in the Forbes ranking of “the world’s most powerful women”. Olga Kryshtanovskaya, an expert on the Russian political elite and former member of PresidentVladimir's United Russia party, says the patriarchal nature of Russian society is to blame for the low levels of women’s political participation. She says some high-profile male politicians have only“let in”women politicians who don’t have their own opinions, look good and are essentially puppets. However, Kryshtanovskaya believes strong and independently minded female leaders are starting to emerge in Russia. One recent example is Elvira Nabiullina, Russia’s former Minister for Economics, who, this year, was handpicked by Mr Putin to lead Russia’s Central Bank. Nabiullina is the first woman to head a Group of Eight monetary authority. The Russian Federation has never been ruled by a female prime minister or president, but it’s not out of the question, according to Kryshtanovskaya, who thinks Valentina Matvienko may be a contender. The former governor of Russia’s “second capital”, St Petersburg, Matvienko now chairs the Federation Council – the upper house of the Russian Parliament – having become the third highestranking politician in the country after Putin and Prime Minister Dmitry Medvedev. Matvienko is known for her no-nonsense management style and her loyalty to the Kremlin. Despite being a prominent supporter of Putin and working on his election campaign in 2012, Kryshtanovskaya

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A woman, regardless of her status or qualities, will always be subject to mistrust. For 13 years, I've spent 70 per cent of my time and energy proving that I'm a politician with equal rights to men; I only had 30 per cent left to actually pass laws.

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Society

MOST READ On the hunt for forest treasures http://rbth.asia/47141

Diversity The backgrounds of Australia’s Russian-speaking communities reveal distinct historical circumstances

By the early ’50s, Sydney had two Russian community clubs. But despite being opposite each other on George Street, the clubs didn't mix. KATHERINE TERS RBTH

“FOR 20 years, the two groups didn’t communicate,” says Vladimir Kouzmin, editor of Australia’s longest-running Russian newspaper, Edinenie (“unification”), published since 1950.“Australia’s Russian community was split down Red and White lines, but when the USSR collapsed, there was no reason to call each other Soviet or anti-Soviet, so that problem disappeared.” The 2011 census recorded that 18,278 people born in the Russian Federation lived in Australia; New South Wales had the largest number (6861), followed by Victoria (6068). It also revealed that 74,317 people had Russian ancestry, although Igor Savitsky, president of the RussianAustralian Representative Council, estimates that there are as many as 200,000 Russian-speakers in Australia, not all of whom have Russian ethnicity. The vastly different historical circumstances that prompted Russians to emigrate largely explain the cultural diversity within Australia’s Russian communities. Australia has seen trickles of Russian immigration since

the nineteenth century, but the biggest waves followed World War II and the collapse of the USSR in 1991. Those who migrated from Europe post-war mainly came from displaced persons (DP) camps in Germany, Austria and Italy. Some had been POWs or slave labour under the Nazis, while others fled during the German retreat. White Russian emigres, some of whom had been living in Europe since 1917, were also in the group. The Chifley Government saw this group of refugees as an opportunity to fill postwar labour shortages. With the International Refugee Organisation bearing the transportation costs, 170,000 DPs were brought from Europe to Australia (10,000 of whom were Russian). On arrival, they were taken to migrant camps near Bathhurst, New South Wales, and Bonegilla, Victoria, before being sent for two years’ labour to various public works across the country, including the Snowy Mountains Hydro-Electric Scheme. The second major post-war wave of Russian immigration was from China. Harbin, in the country's north, was established in 1898 to support the Russian construction of the Chinese Eastern Railway. By the ’20s, the city was a vibrant multicultural haven for White Russian emigres who had left after the revolution and ensuing Civil War.

UNIFICATION

Many routes of those who made a home Down Under

Participants in this year's Russian Culture Day in Sydney, which marked writer Alexander Pushkin's birthday. Picture: Edinenie

Harbin became the largest Russian community outside Russia, but after the Chinese Communist revolution in 1949, this stateless group was in a precarious position, and the bulk of them emigrated in the ’50s. In Sydney, they congregated in the western suburbs of Strathfield, Cabramatta and Fairfield, which were cheap and close to Orthodox churches. Not having living through Communist repression, they were more devout than their Soviet cousins. The next Russian immigration wave started in 1971, when the Soviet Government allowed Jews to apply to emigrate to Israel for the purposes of family reunions. Many used Israel as a stepping stone to other destinations. Jewish emigration restarted in 1987 with Glasnost, and the associated liberal reforms, and in 1989, there was a mass exodus.

Major waves of Russian emigration 1880-1905: Jews flee Tsarist Russia to escape anti-Semitism and pogroms. 1905-1917: Tsarist political opponents and those trying to avoid compulsory military service in the World War I leave. 1923-1939: White Russian emigres, pushed east by the Red Army, escape Soviet Russia, mainly via Manchuria. Many leave China following the Japanese invasion in 1931. Post WWII: Russian citizens and Prisoners of War find themselves displaced in Western Europe after WWII. Many remain in displaced persons camps for years before finding countries to migrate to.

Early 1950s: White Russian emigres flee the city of Harbin, in northern China, following Mao's communist revolution in 1949. 1971-81: A Russian-Jewish exodus of the Soviet Union begins, following a regulation that allows Jews to apply to Soviet authorities to migrate to Israel for the purpose of family reunions. Being Jewish is jokingly referred to as "a means of transport", not an identity. Post 1987: Reforms under Gorbachev allow Russian Jews to freely migrate anywhere. Post 1990: A wave of postSoviet economic emigration begins across the states of the former Soviet Union.

The number of Russianspeaking Jews in Australia has been estimated at between 6,000 and 30,000. Most settled in Melbourne (in St Kilda, East St Kilda, Caulfield and Ormond) and in Sydney (in Bondi, Redfern, Waterloo and Surry Hills). Russian-Jews from this wave weren’t readily accepted by the local Jewish community, probably because many were out of touch with Judaic traditions as a result of Soviet religious repression and anti-Semitic policies. The last wave of immigration started when the Soviet Union collapsed. These arrivals were economic migrants: educated professionals with marketable skills and good English. Around 170 Russians leave Russia for Australia every year. rbth.asia/48371

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Russian StYLE CONSUMERS ARE DEVELOPING AN APPRECIATION FOR DRINKS OTHER THAN VODKA AND BEER

'Wine in Russia is seen by the working class as a drink for wimps,' writes Vasily Raskov, wine columnist for the Russian newspaper Kommersant. Irina Ford, Natalya Nemchinova special to RBTH

INDEED, vodka-drinking seems more fitting for a country with such a wild history and chilly climate. But despite being regarded by some as soft, Russia’s wine culture is growing, the domestic wine industry developing and a variety of imported wines are now available. Russians are known for their hard drinking, and according to report The Russian Wine Market in 20112012 by Euroresearch & Consulting, the average alcohol consumption per capita was 90 litres per person. This makes Russia the third heaviest-drinking nation in the world, along with Latvia and Finland. (Only Lithuania and Estonia had higher consumption, at 100 litres a person.) Vodka and beer still dominate Russia’s drinking culture: a 2011 survey by RosBusinessConsulting found 60 per cent of Russians drink beer, 49 per cent drink vodka and only 26 per cent drink wine. On average, Russians supposedly drink only 7.14 litres of wine per capita per year – not much, considering Australians consume about 35 bottles, according to the Australian Bureau of Statistics. Russians tend not to like dry wines, and sweet and semi-sweet wines account for 80 per cent of the wine market, according to Russia’s Union of Viticulturists and Wine Makers. This preference has its roots in Soviet wine-producing techniques. As it became industrialised, the Soviet Union developed programs to meet the needs of the masses for food and drink. Despite having enthusiastic support from Soviet leadership in the ’30s, the USSR had limited land suitable for quality grape cultivation. Also, the cost had to be lowered because Soviet leaders wanted wine to be affordable for every citizen. Scientists were recruited, and frost-resistant, high-yielding

grape varieties were cultivated. This didn’t help quality though: wines made from the new varieties were barely palatable because of high acidity and lack of flavour. To remedy this, grape sugar, flavours and ethanol were added. Pre-1917, only aristocrats drank wine in Russia and wine culture had been nonexistent in the USSR until the ’30s, when the triumphant proletariat were delighted to

Intermediaries, like supermarket chains, bump up consumer prices by as much as 20-30 per cent. Russia has about 70,000 hectares of vineyards. Most of them are in Southern Russia. raise their glasses, toasting Comrade Stalin with this product Europeans would likely have found hard to swallow. To keep costs down, similar production techniques are used today, according to Elena Denisova, Chairman of Chateau le Grand Vostock – a boutique Russian winery. Less than a third of Russian wines are made from local grapes; the rest use cheap imported “wine material” (a Russian term essentially meaning poorly refined grape sugar). Denisova calls this “camouflage for swill”. “The concentrate is mixed with poor, sour, semi-wine at the fermentation stage or with ready-fermented wine material in an attempt to correct its awful taste. Then artificial flavours and colours are added,” she says. Domestic producers cover two-thirds of the Russian wine market. According to statistical agency Rosstat, Russia’s wine market amounted to 485.1 million bottles in 2012, with Russian wines accounting for 63.2 per cent. In the budget sector, domestic wine makers account for more than 90 per cent. Wine in Russia is comparatively expensive. While in-

comes are growing and a middle-class developing, the average monthly income is only about $1200. Seven out of 10 of Russia’s biggest wine producers make wine in litre cartons, costing $3 at most. It’s hard for importers to compete with these prices at the low end, and import duties can push even the cheapest bottles of foreign wine up to about $7. Raskov argues that inflated foreign-wine prices aren’t just because of import duties. He says that“bonuses”to intermediaries, such as supermarket chain managers, bump up consumer prices by as much as 20-30 per cent. With both costs factored in, a bottle that might cost $7 in Europe could be $35 in Russia. The result: higher prices for lower-quality wines. With gross disparities in income, Russia also has a market for top-end wines. It’s possible that the proliferation of resident billionaires in Moscow (the most in any city in the world after London) prompted Australia’s Penfolds brand to unveil its Ampoule Project in Russia, costing $168,000 a bottle. Today Russia has about 70,000 hectares of vineyards. Most of them are in southern Russia, north of the Caucasus Mountains. In 2012, Russia’s first national wine guide was published, reviewing 55 wines from 13 wineries. The top two were Lefkadia Cuvee, from the

mikhail mordasov (3)

GROWTH OF new wine culture drivES demand

Russia’s wine industy has been forecast to grow, driven by increasing domestic consumer demand, consumer buying power, growing wine culture and government help for the sector.

Krasnodar region, and Krasnostop 2010, from the Vedernikov Winery in Rostov – where it’s so cold the vines need to be buried in winter. Russia’s leading sommeliers, who helped produce the guide, suggest the development of a high-quality do-

comment

Barriers to the popularity of Australian wine in Russia Irina Drubachevskaya

Sommelier

WHILE Australian shiraz is wellknown in Russia, and cabernet sauvignon, merlot and chardonnay can readily be found, Russians have limited knowledge or interest in wines from Down Under. The choice of Australian wines in Russian restaurants, for example, is limited; in fact,

New Zealand wines are betterrepresented. Specialist wine retailers offer a better selection of Australian imports, but connoisseurs will often buy direct from exporters who have individual wholesale or retail licences. There are a few reasons why Australian wines aren't betterknown and more popular. When Russian customers choose wine, the most impor-

mestic wine industry in Russia is not far off. There is growing interest through the opening of wine boutiques, clubs and schools. The Russian Wine Market report forecasts the domestic industry will grow, citing developing wine culture, higher

consumer income and government assistance. By 2015, it says, wine volumes produced in Russia will increase by a fifth to 1.23 billion litres (8.67 litres a person) bringing the value of annual production to US$10.98 billion.

tant criteria for them are price, colour and residual sugar content, then country of origin. Less than 30 per cent of buyers pay attention to the wine brand or supplier. Even fewer Russians are interested in the geographic origins of wine (only some famous European names – Bordeaux, Chablis and Chianti – are recognised). In truth, few Russians would even realise whether the names of Australian wines refer to regions, since they have little to no knowledge of Australian geography. Price-wise, $11-13 a bottle is considered affordable; any-

thing below $10, cheap. In other words, wines are relatively expensive in Russia, although this isn't because Russians have a lot to spend. It relates to how business is done in Russia and the heavy-handed regulation of the wine market, the result of which means many imported wines are three to eight times more expensive than in their country of origin. Another factor that isn't helping the popularity of Australian wines is the fact that the most popular wines in Russia are semi-dry and semi-sweet – particularly in reds, and these varieties aren't common in Australia.

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The best wine bars in Moscow

Where honey and cherries meet: Russia's own traditional version of fast-tracked mead

GAVROCHE

Yaroslava Kiryukhina

RBTH

On Friday nights, Gavroche is popular with the hip middleclasses patrons. Some 25 wines are available by the glass and more than 100 by the bottle. A 150ml glass of Hugel Gentil 2010 is about $9, while wines by the bottle

are a bit pricey. Most wines are French, but some Italian names make an appearance. Timura Frunze Ulitsa 11, building 19/8. Nearest metro: Park Kultury. Tel: +7 (499) 558-08-38 www.thewinebar.ru

THE literal translation of medovukha is a moderately sweet alcoholic drink that tastes like honey. This Slavic beverage is similar to mead but faster to make. In Russia, mead was a luxurious product, beyond the reach of peasant farmers because the natural fermentation of honey takes between 15 and 50 years. The Slavs,

however, speeded up the process by heating the mixture. After the invention of distillers in the Middle Ages, the prototype of modern medovukha was born. Russians usually start collecting honey for medovukha on August 14 (the Saviour of the Honey Feast Day) in honour of Russian Prince Bogolyubsky’s defeat of the Volga Bulgarians in 1164.

Cherry medovukha

three days for fermentation to occur.

photoxpress

BONTEMPI

Although Marco Cevretti isn’t in charge of Bontempi’s wine list, he makes this place work: Bontempi always seems to be packed and lively. After 6pm, almost every wine has two prices: higher if you want to drink at a table and

in numbers

26 66 1.1 Per cent of Russian population who regularly drink wine

Per cent of Russia’s wine supplied by domestic producers

Australia’s share (per cent) of wine imports in Russia

lower if you want to leave the bar with the bottle you liked most. You can also bring your own. Nikitsky Boulevard 8/1. Nearest metro: Arbatskaya. Tel: +7 (499) 346 4103 www.barbontempi.ru

GRAND CRU

From South Australia to St Petersburg

Katherine ters rbth

AUSTRALIAN wines are readily available in Russia, at least in Moscow and St Petersburg. The reds are popular – making up two-thirds of our wine exports – with shiraz and associated blends being favourites. Of the whites, chardonnay is popular. The bulk of the wines are in the budget bracket, with three-quarters costing between $2.50 to $4.99 a litre. South Australian wines have the largest share of Australia’s market and popular brands include Jacob’s Creek and Grant Burge. According to Wine Australia, Russian customs statistics for 2010-2011 rank Australia as Russia’s seventh-largest wine importer, with Spain, Italy and France forming the top three. The market is small, making up just 0.5 per cent of Australia’s total wine exports and

1.1 per cent of all imported wine in Russia, according to Austrade figures for the year ending March 2013. Austrade’s Ian Wing says sales of Australian wines in Russia have declined because of the strong dollar and competition from Latin America, South Africa and Europe. Wine Australia’s Aaron Brasher agrees, adding that high duties and market-entry challenges have further hampered Australia’s wineexport opportunities there. Competition between wine importers will only intensify this year because of the recent lifting of a trade embargo on Georgia, which has been in place since 2006. Pre-embargo, the former Soviet republic was Russia’s biggest supplier of imported wine, with a 4.5 per cent share of the market and a 9 per cent share among importers. The first batch of Georgian wine re-entered the Russian market this June, and the Georgian Wine Association forecasts exports will reach 10 million litres this year alone.

• 2 kgs of honey • 1 litre of water • 4-5 kgs of pitted cherries Preparation: – Pour the honey into an enamel pan, cover with water, and boil the mixture, stirring occasionally, skimming off any scum, until it turns to syrup. – Take a big bottle (ideally a 10-litre narrow-neck bottle) and put the cherries into it. – Cool the syrup and pour it into the bottle, covering the cherries.

The Grand Cru chain of wine shops includes two “real wine bars”. The best, which also serves great food, is on Malaya Bronnaya Ulitsa, next to Patriarch’s Ponds, featured in Mikhail Bulgakov’s satire The

Master and Margarita. Spanish chef Adrian Quetglas developed the menu at Grand Cru. Malaya Bronnaya Ulitsa, 22. Nearest metro: Mayakovskaya. Tel: +7 (495) 650-01-18 www.grandcru.ru

– Cover the bottle with a wet cloth, which should be moistened from time to time, and leave it in a warm place for

– When the brew starts to ferment, put the bottle in a cool place and seal the bottleneck with a towel. – Wait for three months, and you'll have a genuine Russian homebrew – although it tastes better when left even longer. Warning: Ensure that the heated honey doesn't come into contact with an open flame because it’s highly inflammable. A cherry medovukha is best drunk at room temperature, to let the full flavour, sweetness and aroma come through. However, in summer it is sometimes served chilled. It’s usually served in a clear glass, on a white tablecloth, to highlight its rich colour.

Borscht, blini, solyanka…

VINTAGE

press photo (4)

While l wouldn't have expected to be able to pick up an Australian shiraz at a corner shop in Russia, these days, you can.

Ingredients:

If you’re looking for reasonable prices, the Vintage bar, tucked away in a courtyard near Mayakovskaya, with its modest interior and good service, is the perfect choice. The owners are regulars in the bar, which is a sign of their commitment. To handle its

low-priced range of wines, Vintage initially removed the “wine by the glass” option, but it’s now available again. Ulitsa Krasina 7/3. Nearest metro: Mayakovskaya. Tel: +7 (499) 766-7244 www.barvintage.ru

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Reforms get A tick

Winning the image battle

Peter Gerendasi

special to rbth

Toma Genole, Katerina Ryzhakova

F iorsh

ussia has not been immune from the strong headwinds that have held back growth in the global economy over the past three years. However, the Russian economy has recovered relatively quickly from the worst impacts of the global financial crisis and has continued to show positive growth since then. There are good reasons to be positive about the prospects for the Russian economy. In this year’s 16th PwC annual Global CEO Survey, 66 per cent of Russian CEOs were very confident regarding revenue growth over the coming year compared with just 36 per cent globally. Russia benefits from a robust national balance sheet and its international reserves are among the highest in the world at $US540 billion as of January 1, according to the Russian Central Bank. National debt, at just over 10 per cent of Russian GDP, is well managed and the country’s accession to the WTO in July, 2012, brought many opportunities for both Russian and international investors. Improving the investment climate is a key priority for the current government and it has set the ambitious goal of raising Russia's position in the World Bank's annual Doing Business ranking from 120th in 2011 to 20th by 2018. This includes a num-

ber of tax and legal reforms aimed at making doing business in Russia easier and more transparent. A specific area of focus has been for businesses in the small and medium enterprises (SME) sector. Recent reforms include support to SMEs in areas such as the provision of government grants for specific projects, interest rate subsidies and tax preferences for qualifying business enterprises. This is usually defi n e d by r e f e r e n c e t o turnover and asset values. There are a number of initiatives the government is considering, such as the provision of zero-interest loans for individual entrepreneurs and two-year tax holidays for newly registered businesses fitting the criteria.

Improving the investment climate is a key priority for the current government in Russia.

A specific area of focus has been for businesses in the small and medium enterprises sector.

The government institute the Agency for Strategic Initiatives is preparing proposals aimed at reducing administrative barriers for SMEs, improving customs and other trade regulations as well as speeding up the process of obtaining construction and other permits in Russia. It is hoped these proposals will be adopted in the near future. While the Russian economy is undergoing significant change, it is good news that the government is focused on raising Russia’s standing in terms of the ease and transparency of doing business. Peter Gerendasi, Partner in charge of PwC Australia's Asia practice, is currently head of the Firm's AustraliaRussia desk.

protagonist in tragic comedy Rossiyskaya Gazeta

dward Snowden’s story started out as a spy thriller, went on to become a farce, and is about to turn into a drama laced with elements of human tragedy. The latter genre is increasingly applicable to the lead character, who, having taken a stand for personal freedom and dignity, clearly was not anticipating what would happen to him.The former US intelligence contractor has es-

sentially become hostage to big-time politics. It turns out he is a nuisance to everybody; nobody (except American justice) wants him, and civil society, in whose name he acted, is either biased or powerless before the supreme interests of the state. Take note, future whistleblowers: an idealist is doomed, and only reliance on external powerful entities who are interested in changing the status quo will help. Incidentally, this is how things used to work: dissidents from either side of the Iron Curtain automatically received support from the other side.

SpeCial to RBTH

or many years, the Russian government hasn’t given enough attention to Russia’s image in the West. At the same time, the image of Russia that’s usually served up by the Western media is mired in old stereotypes. In terms of content, the most popular views of Russia in the West include: 1. “President Vladimir Putin — dictator of a police state.’’ 2. “Any opposition movements are — by definition — democratic and, without a doubt, good for Russia.’’ 3. “Any legal proceedings against members of the opposition are harassment by the authorities — always; and the object being harassed is a model of morality and purity.’’ Because of these simplifications, Western viewers get a picture of Russia that’s not only incomplete, but often inaccurate. For example, Russia’s opposition is depicted as having a single ideological platform that represents a real alternative to Putin’s regime.Those who get their news exclusively from the mass media have no idea that the opposition movement doesn’t have a program that would be supported by a majority of its members, largely because the opposition is so diverse. Delivering information like this is based on two

rules of modern journalism: the simplification, and sometimes the vulgarisation, of information and prioritising national over international information. This has tangible political consequences. During official visits of Western politicians to Russia or Russian official visits to Europe, the agenda always includes talks about: human rights, the situation in Chechnya and the opposition movement. This is because Moscow’s position on these matters is often unknown to the Western public. As a consequence, political, trade and economic cooperation with Russia is limited, since any cooperation with a “dictatorial regime’’ negatively affects the image of Western leaders, reducing their electoral rating. A more effective approach would be for the Kremlin to develop a consistent communication strategy that would create a favourable international image of its head of state and the country as a whole, one that explains the complete story and describes the government's position on key domestic and foreign policy issues. The Russian leadership could keep ignoring Russia's deteriorating image abroad, but if it does, the West will only continue to get exposure to an incomplete picture. Toma Genole is a professor at the Paris Institute of Political Sciences. Katerina Ryzhakova is a communications consultant.

This special report is produced and published by Rossiyskaya Gazeta (Russia), which takes sole responsibility for the contents. Internet address www.rbth.asia Email editorau@rbth.ru Tel +7 (495) 775 3114 fax +7 (495) 988 9213) ADDRESS 24 Pravdy STR, bldg 4, Floor 12, Moscow, Russia, 125 993 evgeny abov editor & publisher Lara McCoy managing editor gleb fedorov editor yaroslava kiryukhina assistant editor katherine ters guest editor (australia) clemson text & design production editors (australia) Andrey Shimarskiy art director Andrey zaitsev head of photo dept milla domogatskaya head of pre-print dEpt Maria Oshepkova layout e-Paper version of this supplement is available at www.rbth.asia To advertise in this supplement contact sales@rbth.ru © copyright 2013, FSFI 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 editorau@rbth.ru with your request. Rbth is not responsible for unsolicited manuscripts and photos.

iorsh

Fyodor Lukyanov

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Yet, apart from the moral aspect, the Snowden case also has a political dimension — primarily one that concerns Russian-American relations. The United States has found itself in an unaccustomed position. Normally, it's the US granting asylum to persecuted “truth seekers” . Now that

the tables have been turned, Americans are listening perplexedly to the same arguments they used to throw at other countries. Fyodor Lukyanov is chairman of the Presidium of the Council on Foreign and Defence Policy.

comments and Letters from readers, guest columns and cartoons labelled “Comments”,“Viewpoint” or appearing on the “Opinion” and “Comment & Analysis” pages of this supplement are selected to represent a broad range of views and do not necessarily represent those of the editors of Russia beyond the headlines or Rossiyskaya Gazeta. Please send letters to the editor to editorau@rbth.ru

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Genres Writers reflect the changing society of a new epoch

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THE ’90s was the first time that the Russian public was able to delve into the wealth of texts that had been banned during the Soviet period – everything from emigre prose to dissident samizdat. Russian writers dissolved in this avalanche of texts, which is why post-Soviet Russian literature didn’t make its real entrance until the onset of the new millennium. When they did, however, Russia saw the emergence of a crop of powerful authors who weren’t afraid of experimenting with genres and topics. In his spot-on classification, literary critic Konstantin Milchin describes seven major new genres in Russian literature following 2000: A person in an extreme situation (in battle or in prison for the most part, implying either aftershocks of the Chechen military campaigns or the high-profile trials of the time, including that of Mikhail Khodorkovsky): The best examples of this genre are One Soldier’s War by Arkady Babchenko and Andrei Gelasimov’s Thirst. The end of an empire: Attempts at interpreting the disintegration of the USSR and, in certain instances, nostalgia for the failed superpower’s erstwhile mightiness - think Mikhail Shishkin’s Maidenhair and Alexander Terekhov’s The Stone Bridge. The new Russian urbanite: There’s an undeniable gulf separating Communist activists of the Soviet lore and the office plankton of today, and Olga Slavnikova’s Light Head is perhaps the best example. The Golden Age: This quest for a utopian time when people in Russia lived a happy and unperturbed life (or so our failing memory tells us) is best epitomised in the Erast Fandorin historical detective series by Boris Akunin. Apocalypse now: Marking a boom of the dystopian and apocalyptic genres (Dmitry Glukhovsky, Metro 2033; Anna Starobinets, The Living,Vladimir Sorokin, Day of the Oprichnik, Olga Slavnikova, 2017). Capital-centrism: Russian literature is very capital-centric: the action of so many

novels takes place in Moscow or St Petersburg. Otherwise, a reader is shown an emphatically provincial town that is terribly remote and exotic, even to Russians. The literature of emotion: Under Soviet rule, emotions were under state control, so post-Perestroika literature had to reacquaint itself with emotion (Mikhail Shishkin’s Letter-Book). To summarise, Russian literature of the 21st century has had its own important agenda, digesting an epoch and painting pictures of a new society and people that build and inhabit it; it tickles readers’ nerves and shocktherapies them with postapocalyptic visions. But while mainstream literature has no problem attracting audiences, intellectual prose is more foreboding. Writer Zakhar Prilepin is of the opinion that the Russian literature of the Noughties is rife with “pre-apocalyptic harbingers”. Prilepin doesn’t stop there; in his words, the younger generation defies all anti-Soviet propaganda as being destructive and Russophobic. Until the October Revolution of 1917, the Russian literary tradition shunned excessive emphasis on the inner worlds of its characters, and

Best-sellers translated into English Victor Pelevin (Buddha's Little Finger, The Sacred Book of the Werewolf) and Vladimir Sorokin (Ice, Day of the Oprichnik, Sugar Kremlin) are the most prominent names in Russian literature from the 1990s. Pelevin continues to present snapshots of Russian society in its various phases and uses vivid images to illustrate the processes going on inside it. Sorokin doesn't restrict himself to aesthetics; he peers boldly into the future of Russian society and prods its most painful problems. Mikhail Shishkin, perhaps Russia's most distinguished contemporary writer, has received a windfall of Russia's

most prestigious literary prizes. He wades easily into the realm of intricate polyphonics and he's not afraid of making inconvenient political statements. His principal works are Maidenhair and Letter Book. Lyudmila Ulitskaya started her literary career relatively late; she didn't publish her first novel until after she turned 50. Her works are deeply humanistic, raising ethical questions: personal, societal and religious. As well as being recognised as a talented novelist, many regard her as a moral compass. Her most famous works are: Daniel Stein, Interpreter; Sonechka; and Medea and Her Children.

Russian readers were flooded with new literature in the turbulent '90s.

would instead raise eternal questions: how to make society more humane, what political course to take to achieve this goal and how to steer Russia onto that course. Traditionally, the government paid heed to the literary community, and reacted appropriately by either tightening or relaxing censorship, depending on the situation. These days, the relations between literature and the powers that be are simultaneously intricate and simple. Prilepin, a member of the banned National Bolshevik Party and the author of one of the most controversial and revolutionary novels of the

Noughties, Sankya, believes that writers and the authorities“live their own separate lives”; you are free to write what you want because the authorities couldn’t care less about your writing. Therefore, if a writer really wants to make a point they have to actually go into politics. Because literature correlates poorly with Russia’s political, economic and social life, several literary figures decided to get directly involved in those areas (examples include Boris Akunin, Lyudmila Ulitskaya, Dmitry Bykov), but they quickly became disillusioned.

AFP/eastnews

Alyona tveritina

Acclaimed contemporary Russian writers and their bestsellers: (1) Boris Akunin's Diamond Chariot, (2) Olga Slavnikova's 2017 and (3) Vladimir Sorokin's Day of the Oprichnik.

getty images/fotobank

During Russia's 'tumultuous ’90s', Russia's writers were intoxicated by new freedoms and the wealth of new literature available to them.

A novel approach to post-Soviet literary freedom

Others, such as Eduard Limonov, yours truly and Sergey Shargunov, continue to participate in political life to the best of our abilities. Prilepin comments: “The only mood expressed by any contemporary piece of fiction published in Russian, if that piece has any relation to social or political [aspects] whatsoever, is the mood that governs the masses, ie a hatred of capitalism and a sense of irony towards [the concept of] democracy.” rbth.asia/48393

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Nizhny Novgorod

across russia Trans-Siberian ROUTE Links Moscow with the Far East and the Sea of Japan

ENGINEERING WONDER OF WORLD'S lONGEST rAILWAY

1 so a stop-off point on river

Closed to foreigners for much of the Soviet era because of the city's military research and production facilities, Nizhny Novgorod (previously known as Gorky) is now a popular tourist destination. It’s al-

cruises, since it sits where the Volga and Oka rivers meet. With more than 600 historic, architectural and cultural monuments, the city has plenty for visitors to see.

dmitry sevastianov rbth

Yekaterinburg

lori/legion media (4)

During the Soviet era, Yekaterinburg (then Sverdlovsk) was a centre of industry. Today, it's better known for being the city where where the last Tsar of Russia and his family met their end at the hands of the Bolsheviks. Yekaterinburg feels like a mixture of Russia’s two biggest cities: it has Moscow's hustle and bustle and the pre-revolutionary architecture, waterways and green spaces of St Petersburg.

Irkutsk

Construction of the TransSiberian line began in the Far East in 1891 and was completed in 1916, creating a corridor through Russia, linking Europe and Asia.

Museum of Contemporary Art (PERMM) and the Museum of the History of Political Repression “Perm-36”. The latter was named after a corrective labour camp in a nearby logging area, which closed only in 1988.

Vladivostok

alex khitrov

European Russians consider Vladivostok the end of the country, but Vladivostok’s residents see it as the beginning – after all, the sun rises in the East. When construction began on the Trans-Siberian, the foundation was laid here. There are countless opportunities to see the varied landscapes of this fishing, shipping and naval city, but the most popular vantage point is from a viewing platform on Orlinaya Hill.

Since the early 19th century, political exiles were sent from European Russia to Siberia, and Irkutsk was their cultural and intellectual centre. Their ornate wooden gingerbread houses remain, with intricate hand-carved detailing. Irkutsk is one of the largest cities in Siberia and the most famous Trans-Siberian stop – primarily because it’s the easiest point from which to access the UNESCO heritagelisted Lake Baikal. Buses and mini-buses leave for the lake from the main railway station.

THE Trans-Siberian Railway is listed by the Guinness Book of Records in three categories: its total length, the number of stations and the time it took to build. At the beginning of the 20th century, the railway provided a reliable transport service linking the European and Asian parts of Russia. There are new plans to continue developing this route as an international transport corridor between Europe and the AsiaPacific. The Trans-Siberian carries up to 100 million tonnes of freight and several million passengers annually. It’s a popular tourist route from May to September, when it’s not too cold. It was originally built in several stages and in six sections. The first – the Ussuriysk Railway (from Vladivostok to Khabarovsk) – is 769km long and was operational six years after the first stone was laid in Vladivostok in 1891. The West Siberian Railway, (the second stage) is 1417km long and runs from Chelyabinsk to the River Ob. It was built in only four years. The third section, from the Ob River to Irkutsk, is 1830km long and is called the Mid-Siberian Railway. It was built in six years – from 1893 to 1899. Building it was significantly more difficult from an engineering point of view, as the as the flat land gave way to mountainous territory. It’s also where the builders and engineers first encountered permafrost. Construction of the 260kmlong Circum-Baikal Railway was postponed because of technical difficulties. In 1900, a train ferry service started on a 73km route across

Lake Baikal: the icebreakers Baikal and Angara, which were brought from Britain, carried trains across the river for five years. In the winter of 1903-4, 45km of rail track were laid straight on the ice. Horses hauled wagons and steam locomotives across the lake. The inefficiency of this system was keenly felt during the Russo-Japanese war. Work on a railway along the shore had begun in 1902 and accelerated in 1903-4. The lake shore between Port Baikal and Kultuk stations was a rocky ridge (81km long), 400 metres above the lake. Fourteen kilometres of retaining walls were built along the route, along with 445 steel bridges, six stone viaducts, 47 rockfall protection galleries and 39 tunnels totalling 7.3km long. Nothing in the world could match this section in terms of cost, scale and the complexity of its construction. Nevertheless, it was built in only two years and was operational a year ahead of schedule. In May 1908, the decision was made to build the last stage of the Trans-Siberian: the Amur Railway, which included the world’s first tunnel constructed through permafrost ground. The 2178km-long Amur Railway came into operation in 1916, during World War I, to complete construction of the entire Trans-Siberian. The railway didn’t just link Siberia and the Far East with the rest of Russia, it created a string of new towns and settlements in the most remote parts of the country.

siberian highlights

Russia to invest $19b in railways The Kremlin is planning to develop the Trans-Siberian into an international transport line linking Europe with the Asia-Pacific region. Alexander Panin The Moscow Times

AN INITIAL plan, approved by the Russian Cabinet last April, envisaged that 560 billion roubles ($19 billion) would be used to increase the capacities of the Trans-Siberian and the Baikal-Amur Mainline (BAM) – a 4324km route running parallel to the Trans-Siberian – by 50 million tonnes per year. Out of this sum, 360 billion roubles ($12 billion) would go to the BAM and 200 billion roubles ($6.7 billion) to the Trans-Siberian. The National Welfare Fund would provide a total of 260 billion roubles ($8.6) and the remainder would come from the Russian Railways investment program. At the St Petersburg Economic Forum in June, President Vladimir Putin said

In Yekaterinburg, visit the Church of All Saints, built on the site of Ipatiev House where the imperial Romanov family were executed in 1918.

Photoshot/Vostock-photo

Nestled on the hilly banks of the Kama River – Europe's fifth-largest – is the industrial city of Perm. Increasingly recognised for its cultural and historical attractions, the city's bestknown museums are the Perm State Art Gallery, the

itar-tass

Perm

Investment will significantly increase logistic capacities

money from the National Welfare Fund would be spent to modernise both railways. Private investors may also be involved.“I know that the interest of private investors in infrastructure projects is very high, especially if the state is ready to provide guarantees, minimise the risks and be a co-investor,” Putin said, without naming particular investors.

In Slyudyanka, on Lake Baikal, see the world's only railway station built entirely of pink and white marble. Try the localdelicacy: smoked omul.

In Khabarovsk, see the impressive “Amur Miracle” – a road and rail bridge across the Amur River that spans 2600 metres.

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Luxury and budget options The most comfortable way to cross Russia is on the Golden Eagle — a five-star train that includes meals and tours at stops. It departs from Moscow four times a year, each trip taking two weeks. The Golden Eagle's stops include Kazan, Yekaterinburg, Novosibirsk, Irkutsk, Lake Baikal, Ulan-Ude, Ulan Bator and Khabarovsk, and it finishes in Vladivostok. Tickets cost $47,480 to $69,800 per person. If that's out of your price range, there's also the Rossiya — a train that leaves Moscow daily and, for a single one-way trip, costs between $475 and $848. Tickets are more expensive if you break up the journey with stops. Train prices in Russia vary depending on the class: spalny vagon (first class) is the most comfortable and consists of a private cabin with two berths; kupe (second class) has cabins with four berths; and platskartny (hard class) is an open dormitory carriage, with 54 berths.

Golden opportunity to take in a historic highlight

William Brumfield rbth

VLADIMIR is believed to have been founded in 1108, when Grand PrinceVladimir Monomakh of Kiev established a fortress and consolidated his hold over nearby Suzdal. Although some now contest the year, the city was growing by the 1160s, when Prince Andrei Bogolyubsky

made Vladimir the centre of his vast domain in northeastern Russia. The town’s political and economic power was reflected in imposing churches of “white stone”(a type of limestone). The earliest is the Cathedral of the Dormition of the Virgin – one of Russia’s greatest architectural monuments. The cathedral (115860) was the first major church Bogolyubsky commissioned in Vladimir. It is in the town citadel, or kremlin, and conformed to a design typical of such structures in Kiev and Novgorod in the same period.

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Just 210 kilometres east of Moscow, in the Golden Ring circuit, the heritage-rich medieval city of Vladimir is the Trans-Siberian's first stop (heading West to East).

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Vladimir’s success story was cut short in December, 1238, when the Mongols laid siege to the city. Later, as the Muscovite state expanded, Vladimir receded to secondary status. But the greatest of its ancient monuments survived and were complemented by additional churches. Vladimir also has large areas dating from the 19th century. With Russia’s economic expansion in the late 19th and early 20th centuries, Vladimir gained many new buildings. Some of the most interesting examples are in the floridly decorated “Russian re-

vival”style, such as the former city duma (council) building a n d t h e l o c a l h i s t o ry museum. New churches also arose, including the Catholic Church of the Rosary, built in 1892 near the Golden Gate. This brick Gothic Revival structure is one ofVladimir’s many houses of worship now restored to active use. Like most Russian cities, Vladimir changed during the 20th century. Nonetheless, its enduring cultural legacy architecture are treasures whose meaning and artistic importance transcend national boundaries.

How to get there from Moscow The city of Vladimir is easy to reach from Moscow. Take an elektrichka (local train) from Kursky train station. They depart three times a day and the trip takes about three hours. Long-distance trains also service Vladimir, leaving from Moscow’s Kursky, Yaroslavsky and Kazansky stations.

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Space Proton-M rocket failures prompt Russian authorities to reduce space program budget

Pragmatism over prestige Russia's Finance Ministry in July announced that the budget for the federal space program for 2013-2020 would be cut by about $19 billion.

in numbers

115

million dollars is Russia's annual rent for Kazakhstan's Baikonur Space Centre, which Russia will lease until 2050.

Andrei Kislyakov special to RBTH

5.3

billion dollars will be spent on the construction of the new Vostochny Space Centre, where the first launch of the new Soyuz-2 carrier is planned for 2015.

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On July 2, this Proton-M rocket failed after lift-off, exploding and crashing near its launch site.

per cent of the world's space launches last year were in Russia, and all of Russia's commercial launches were successful in 2012.

New space launch centre in the east Vostochny Space Centre in Russia's Altai region, 100km from the Chinese border, is expected to gradually replace the Baikonur Space Centre, which Russia has leased from Kazakhstan until 2050, as the main Russian launch site for heavy space carriers. The primary goal of building the new centre is for Russia to have independent and unrestricted access to space. Russia already has two space

launch centres — Plesetsk in the Arkhangelsk region, in the north, and Kapustin Yar in the Astrakhan region, in the south. Neither of the two are suitable for launching heavy space carriers, such as the existing Proton or the new Angara, which is still being developed. Also, Vostochny's location will allow launch trajectories that will avoid other countries and populated areas.

particularly evident in the field of space communications and satellite-based navigation, and NASA has led the way in commercialising the space sector. When the space services market emerged in 1970, its first two specialisations were data digitisation and commu-

nications. In 1991, the leading US and European market players set up the Global Star international space-based communications consortium, which had its own satellite constellation and offered services to commercial users. The USSR, in the mean-

Next year's federal spending on space exploration in Russia is currently pegged at $5.47 billion. But Russia's Ministry for Finance wants the space program's budget cut by more than $220 million, to $5.25 billion.The ministry is also recommending that the Russian Federal Space Agency’s (Roscosmos) 2015 budget of $6.42 billion be reduced to $6.01 billion, and its 2016 budget be capped at $6 billion, instead of the $7.36 billion it was expecting. “The primary factor in these [proposed] reductions … was a recalculation of the dollar-exchange rate applied to the rent being paid for the use of Baikonur [Cosmodrome],” read the ministry's vague explanation. To understand what's going on in Russia's space sector today, it helps to look at the history of global space exploration. As soon as humanity's dream of the first space flight was realised, it became clear that space exploration could take one of the two possible routes. Countries could go down the road of “breakthrough’’ launches and imageboosting programs whose scientific and economic value was next to zero. Or they could be more pragmatic, rationalising space priorities based on the defence/security and/or economic needs of the day. In time, profitability came to dictate what goals should and shouldn’t be pursued in the space sector.This has been

time, was still going down the road of “glorious space achievements’’. According to Lieutenant-General Georgy Lysenkov, former deputy commander of the Soviet Defence Ministry’s space units: “Our leadership never spared a cent when it came to space exploration. With defence

projects in particular, if you even hinted that the budgets were excessive, you’d lose your job.’’ Times have, of course, changed. Roscosmos privatised the space sector in the early 1990s, setting up a series of joint ventures with EU and US partners. The START

I disarmament treaty of 1991 allowed Russia to convert its Soviet-era SS-19 intercontinental ballistic missiles into Strela and Rockot commercial-launch vehicles. Nevertheless, the Russian government’s love of flashy displays isn’t giving in to sensible pragmatism when it comes to space exploration. One example is the Glonass satellite-based navigation system — a necessity for Russia’s economy perhaps, but the Glonass program mandated that every vehicle in Russia have a Glonass receiver on board, even though civilians won’t really benefit, in the short-term, from using Glonass over the US GPS Navstar system. As a consequence, the Glonass system, which is needed by the Russian army, emergency relief units and other government agencies, has been failing for years to reach its full operational capacity of 24 serviceable satellites in orbit. Its ongoing failures prompted the Finance Ministry in August 2012 to freeze the program's budget at its 2011 level of 19.3 billion roubles ($646 million). It would be quite difficult to argue with Ivan Moiseyev, head of Russia's Space Policy Institute, who points out that the country’s space ambitions should be measured against its financial capabilities: “We want too much — a new launch vehicle, a new piloted spacecraft, a new spaceport, a lunar base — but the sector's productivity is appallingly low. It would make more sense if we invested in modernisation and improvements to production effectiveness.’’ The best precondition for a revival of the Russian space industry would be the development of new space-vehicle designs based on advanced technology – even though for some this might signal a serious departure from the grandiose fantasies of the past.

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Image Romanovs held in greater esteem as time passes

Political Analyst

THE first, in the early 1990s, followed the perestroika (restructuring) period. At that time, the fate that befell Nicholas, his children and servants was interpreted as a harbinger for subsequent Soviet repression and merciless violence, from which no-one – not even children – were protected. During this phase, there was little interest in Nicholas II’s rule or in his politics. And his long-standing image, as a melancholy and politically weak man, wasn’t challenged. But by the mid-’90s, under the influence of the emigre Russian Orthodox Church outside of Russia, a reverence for the last emperor as a saint started to re-emerge in some parts of Russia, even though the Moscow Patriarchate at the time still officially opposed canonisation. At this time, there was also a lack of clarity surrounding the supposed remains of the royal family. The remains that were excavated in 1971 by the Ryabov-Avdonin group were challenged by part of the church and by historians of

The royal family became an important symbol of the conservative opposition. A reverence for the last emperor as a saint started to re-emerge in some parts of Russia. moved into the background. Nicholas, and his family, became an important symbol of the conservative opposition and represented the sacred Russian power protecting the people and faith from a global plot by a godless Western civilisation. At this time, Nicholas’s political career was reinterpreted within the framework of a global fight for the preservation of the only correct Christianity: the“belief of the Third

rbth.asia/48375

The Romanovs were executed in Yekaterinburg (Sverdlovsk) in 1918. Controversy over their remains and the significance of Tsar Nicholas II’s role are the subject of ongoing debate.

timeline

Landmark years for royal family 1894 • Tsar Nicholas II marries German princess Alix of Hesse and by Rhine (who becomes Alexandra Feodorovna). The couple initially live at the Anichkov Palace near St Petersburg. 1901 • By this year, Nicholas and Alexandra have four girls: Olga, Tatiana, Maria and Anastasia. The long-awaited heir Alexei isn't born until 1904.

Tsar Nicholas II was known for his weak political leadership.

Pivotal Killers of Russia's last imperial family became key figures in new regime

Royal executioners proud of their role

Yan Shenkman

rbth culture editor

DIFFERENT historical accounts have claimed that between eight and 11 individuals took part in the execution. What is known is that the group was led by two men: Yakov Yurovsky and Mikhail Medvedev-Kudrin. Both later wrote memoirs, which described in detail the night of the execution. Both were proud of their roles in Russian history, held important jobs and remained respected members of Soviet society until their deaths.

Ya k o v M i k h a i l o v i c h Yurovsky (1878-1938) served as the superintendent of Ipatiev House in Sverdlovsk, where the royal family had been held by the Soviet government before their deaths. He led the firing squad and claimed he fired the bullet that killed the Tsar. Yurovsky was a jeweller by profession, and on the night of the killing he was determined to find the Tsar’s diamonds. In this he succeeded; after the bodies of the family were searched, eight kilos of jewellery was found sewn into their clothes. Yurovsky later handed it all to the superintendent of the Kremlin. Yurovsky later served as chairman of the Urals Regional Emergency Committee (the

Event Celebrating Romanov dynasty

Tsarist-style grand ball The social life of the aristocracy of 18th and 19thcentury Russia revolved around high-society balls. Katherine ters rbth lori/legion media

Nearly a century after the execution of Tsar Nicholas II and his family, it's still not known how many were involved in the murder.

1981 • The Russian Orthodox Church Outside of Russia canonises Russia's last imperial family. The Russian Orthodox Church does the same in 2000.

The Church of All Saints, built on the site of the execution

forerunner of the Soviet NKVD and then KGB), head of the gold directorate at the State Reserve, and head of the Polytechnic Museum in Moscow. These were all senior positions in the strategically important early years of Soviet government. Yurovsky died at the Kremlin hospital, which was off limits to all but the most senior government officials.

Some of the Tsar's executioners stayed friends for the rest of their lives. Yurovsky, Medvedev and Shaya Goloshchekin (also part of the shooting squad) sometimes chatted about their shared crime over tea. rbth.asia/47877

ST VLADIMIR’S Grand Ball has been an annual highlight of the Russian-Australian community calendar for more than 20 years. The ball this year will be held on September 14 at Melbourne’s Regent Theatre. In honour of the 400th anniversary of the Romanov Dynasty, the evening will have a tsarist theme, with guests dressing in period costume, in the tradition of the great balls of Imperial Russia. Organised by the Russian Ethnic Representative Council of Victoria (RERC), the event aims to promote Russian culture and heritage and

press photo

Alexander Morozov

Rome”.The royal family was still a focus for discussion in the media in the ’90s because in 1993 Yeltsin formed a commission to launch a new investigation into the demise of the Romanovs. The commission operated for five years. Arguments and controversy were largely silenced by a government ceremonial burial in 1998. Although, even after that, some people challenged the official story, even after a government verdict. There is still controversy about the remains of the Romanovs today. Only this year Patriarch Kirill issued a statement that new information about the remains had come to light. However, in recent years the alleged site of the royal family’s first burial site has become a pilgrimage destination (Ganina Yama). even though some still consider the actual burial place to be at Porosenkin Log. ForYeltsin, Nicholas II’s fate had personal meaning because Yeltsin had been an official in Yekaterinburg (Sverdlovsk) when the decision was made to destroy the building (Ipatiev House) in which the royal family had been executed.

the time. However, in the second half of the ’90s, Nicholas II’s image began to change. After 1996, the position of the liberals in Russia was wavering. Yeltsin’s second presidential term was accompanied by deep division in Russian society. Hopes for a rapid integration with the West after Communism’s dissolution soon

getty images/fotobank

Since the collapse of the Communist system in Russia, the image of the last emperor, Nicholas II, has gone through three distinct phases.

getty images/fotobank

Tsar’s role in history provokes plenty of debate a century on

bring the Russian community and its business partners together. Last year, the ball attracted about 300 guests, coming from as far afield as Darwin, Coffs Harbour and Tasmania. This year, patrons are expected from Perth, Brisbane and Adelaide. For details, visit tsarball.rerc.org.au

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Football Clubs find deep pockets

With the Premier League championship kicking off last month, RBTH looks at the results of the big money invested in Russian football. ILYA ZUBKO

ROSSIYSKAYA GAZETA SPORT EDITOR

The combined value of the Russian Football Premier League players stands at €1.247 billion ($A1.855b), according to the football database transfermarkt.de. When it comes to paying big dollars for new players, Russian clubs are second only to the top five European football nations: England, Spain, Italy, Germany and France. However, only two Russian teams have tasted success in Europe, with PFC CSKA Moscow and FC Zenit St Petersburg winning the secondtier UEFA Cup in 2005 and 2008 respectively. Despite coming out on top in the past three Russian championships, the two clubs would be ambitious to hope for a Champions League win any time soon. CSKA’s top achievement to date was reaching the Champions League quarterfinals in 2010, while Zenit only man-

aged to qualify from the group this past season – far from the best possible result for clubs whose combined annual budgets amount to at least €200 million ($A297m). What stands out about Russian football in the past few years is the enormous amount of money being pumped into it. The leading clubs, which have secured themselves deep-pocketed owners and sponsors, can afford spending on a par with Bayern or Barcelona. Two clubs’ affluence eclipses that of even FC Spartak Moscow (sponsored by the oil giant Lukoil), FC Dynamo Moscow (owned by one of Russia’s largest banks, VTB) and FC Lokomotiv Moscow (bankrolled by the stateowned transport monopoly Russian Railways). These are FC Zenit of St Petersburg and FC Anzhi Makhachkala, hailing from Russia's southern republic of Dagestan. Sponsored by the gas empire Gazprom, Zenit spent €100 million in just one day on Brazilian striker Givanildo Vieira de Souza (better known as Hulk) and the Belgian midfielder Axel Witsel. Hulk's €60 million ($A89m)

REUTERS (3)

Russian football: big money for little return From left to right: Anzhi, which has seen more money invested into it than any other Russian football club; the Russian national football team at the European Championships; and coach Guus Hiddink, who spent years coaching in Russia.

1 2

MOST EXPENSIVE PLAYERS

Hulk (FC Zenit): €60 million ($A89m). The Brazilian striker became a star in Portugal, but then chose a Russian club. Axel Witsel (FC Zenit): €40 million($A59m). Selling him for an astronomical sum helped Witsel's previous club, RCS Anderlecht, cement their financial stability for years to come. Willian Borges da Silva (FC Anzhi): €35 million ($A52m). FC Shakhtar refused to sell him for anything less than the current contract sum. Anzhi was the only bidder willing to match the challenge.

transfer fee was a Russian record, irritating many Zenit fans. For many Petersburgers, a monthly wage of €1000 euros is considered decent. Billionaire Suleyman Kerimov is trying his best to match Gazprom. Having purchased little-known FC Anzhi, he invested tens of millions of euros in buying international players such as Spaniard Roberto Carlos da Silva Rocha (first as the team’s captain and then as caretaker-coach) and Cameroonian striker Samuel Eto’o, and promptly turned the club into one of the strongest teams, on paper at least, in the Russian championship. However, the investment has not translated into success, and despite enlisting, paying handsomely, then dumping former Socceroos'

Wilkshire stands alone in Russia Luke Wilkshire is the first and — so far — only Australian footballer playing the Russian Premier League. He has Guus Hiddink to thank for having achieved this level; it was the Dutchman who took the then little-known Bristol City player to the 2006 World Cup. Having performed successfully in that

tournament, Wilkshire went on to play with FC Twente (Netherlands), before finding himself with Dynamo Moscow in 2008. Wilkshire has never achieved start-status, but he does play consistently. He survived a string of Dynamo coaches and remains one of the club's most important players.

coach Guus Hiddink, Anzhi failed to qualify for the Champions League. Earlier this month, Kerimov decided to sell Anzhi's key players and dramatically slash the club's funding, it seems, because it had failed to achieve any kind of success. Few are surprised; football

in Russia remains primarily a plaything for tycoons and major corporations. Owning a football club is a status symbol, with fans’ interests coming last. rbth.asia/48391

• SUBMARINE ANCHORED IN ST. PETERSBURG • TOPOL-M PREPARES FOR LAUNCH • SNAP DRILL IN THE EASTERN MILITARY DISTRICT. BEST MOMENTS

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