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Kudankulam is safe. Don't worry The first unit of nuclear plant to start by 2011-end

Vladimir Filippov, rector of PFUR, is upbeat about attracting Indian youth

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A virtual guide can fix your world A story about a succesful software developer P.08

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Politics It's still a long journey, but Matvienko's rise shows the way

Making it in a man's world The new Speaker of Russia's upper House is a woman. But politics remains a man's world. It's still a long way to go before one can see a female Russian president.

Where tech-driven change is mantra Tatarstan is setting an example for the rest of Russia by blending entrepreneurship with government support to create technoparks that are transforming people's lives.

veronika dorman rir

Ben Aris

business new europe

itar-tass

Lenin famously said: "Every cook must learn to govern the state." But in modern Russia, there are hardly any women in politics. Unlike India which has a female politician heading the ruling coalition and boasts of many women ministers and chief ministers, the only Russian female politician in the national arena isValentina Matvienko, former governor of St Petersburg, who was elected recently as the Speaker of the Federation Council (the upper house of parliament).

Region Blending IT and modernisation

Valentina Matvienko, former governor of St. Petersburg and newly-elected speaker of Russia's upper house of parliament, addressing a press conference.

continued on PAGE 3

“Twenty-three percent of all traffic fines in Tatarstan are paid electronically,” says Nikolai Nikiforov, Tatarstan’s dynamic 29-year-old minister of IT and communication. Sitting in his office atop the glitzy glass skyscraper that forms the IT park in downtown Kazan, Nikiforov is exuberant about his eGov programme, which allows access to 25 types of government services, including paying taxes, scheduling weddings and ob-

taining a passport via the Internet.“We lose hundreds of millions of man hours a year on bureaucracy,”said Nikiforov. In June, users of the eGov programme completed a million transactions using the system, a four-fold increase from January. For the 48% of households without Internet access, touchscreen terminals across the city offer easy access to the system. “We could have offered the contract for developing eGov to pricey foreign software engineers, but chose locals instead,”says Nikiforov. “80% of the system was developed right here, and now all these companies are marketing their products in other parts of Russia.” continued on PAGE 4

Opinion

Incredible India casts a spell Russians are savouring a fortnight-long treat of Indian culture that's bringing them closer to the spirit of India. Olga petrova

Hip and energetic beats of Bollywood music and dance, rhythms of Gujarati folk songs, poetry of Tagore, immortal works of Indian art. The fortnight-long festival of India opened in Moscow on September 17 with a powerpacked performance of 'Bollywood love story,' that blends a medley of traditional Indian dance forms and Western hip-

Embassy of India

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A scene from 'Bollywood love story.'

in The Economic Times

BUSINESS REPORT

hop and salsa with panache. Dressed in traditional Indian costumes, visitors flocked to Akademichesky concert hall of the Russian Academy of Sciences to celebrate the wonder that is India. Indian Ambassador to Russia Ajai Malhotra hoped that the festival would enjoy heightened attention among both the artistic community and the public. Visibly impressed by the show, Alexei Shalashov, director of the Department for State Support of Arts and Crafts, announced that“from now on, such culture festivals in Russia and India will become a tradition to be observed every year”.

The rise and rise of BRICS

niyaz karim

Friendship Bollywood songs and dance, Tagore, Indian art enthrall Russians

The festering euro zone crisis is set to hasten the global redistribution of power and the accelerated rise of BRICS, the offspring of the 2008 global financial meltdown. SEE PAGE 6

read more on PAGEs 2

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Energy Reactor fully safety-compliant; first unit by 2011-end, says Rosatom chief

'Hot testing' sets the stage for launching Kudankulam I Russia's atomic chief is confident that the first unit at Kudankulam will be started by year-end and assures highest safety standards. Alexandr Yemelyanenkov

Amid growing concerns in Tamil Nadu about the safety of two nuclear reactors being built by Russia, the hot testing was done on the first unit of Kudankulam with technical support of Atomstroyexport, a Russian company entrusted with carrying out phase 1 of the plant. At the IAEA General Conference held inVienna recently, Sergei Kiriyenko, head of Rosatom, the Russian atomic corporation, said that the first unit of the Kudankulam nuclear power plant was expected to be started before the end of 2011 and the second unit would be commissioned in the first half of next year. Based on the results of hot testing, he also assured adherence to strict safety standards at the nuclear plant. Given the concern engendered by the recent nuclear disaster at Fukushima in Japan, Kiriyenko discussed the results of hot testing with Dr. Srikumar Banerjee, secretary of the Department of Atomic Energy, and officials of the NPCIL who attended the conference. “Hot testing is the key operation at the adjustment procedure stage. It is used to test the operating capability and design specification compliance

press service

rir

The Kudankulam project takes into account every peculiarity of the region and is absolutely safe, says Atomstroyexport.

of the reactor unit equipment and safety systems, as well as auxiliary engineering systems,” say Atomstroyexport officials. At the same time, the plant’s operation team learns to control the systems and equipment under normal operating conditions. After hot testing, and taking its results into consideration, the equipment of unit 1 will be put through another revision: the condition of the first and second reactor coolant loop mechanisms and systems will be assessed.After that, nuclear fuel loading will start, as will preparations for the first criticality. “In connection with the events at the Japanese Fukushima 1 power plant, the NPCIL has performed additional studies of the Kudankulam phase 1 design to ensure it conforms to the safety requirements,” a source within the Russian delegation to the IAEA conference told RIR.

A short list of safety solutions 1. Dual containment and protective shieldings. 2. System for passive heat removal from the reactor vessel. 3. Reactor core meltdown trap. 4. Passive system for fast highpressure boron injection. 5. Additional vessels ensuring prolonged passive feed of borated water into the reactor. 6. Closed technical water intake structure – essentially a breakwat.

“Atomstroy made some concessions and shared exhaustive information on the safety principles for the AES 92 project (Nuclear Power Plant 92 project). It is fully compliant with the requirements of present-day regulatory documents

of the Russian Federation and the IAEA and is certified as compliant with the European Utility Requirements (EUR) Club specifications for atomic power plants built after 2000. The Russian design is distinguished by an abundance of instrumentation systems in the power generating units, allowing the plant’s personnel to mount a pre-emptive response at the first sign of trouble, before abnormalities develop in equipment operation but symptoms of maladjustment might appear. Another fundamental feature of the design is the combination of active safety systems with new technical solutions based on passive protection principles. Such measures, already implemented during construction of the first two units at Kudankulam, bring them exceptionally close to fourth-generation designs in terms of aggregate severe core damage frequency. Atomstroyexport assures that the Kudankulam project takes into account every peculiarity of the region. It uses tested technologies and employs the practices of designing, manufacturing and operating previous-generation atomic power plants with WWER reactors. Kiriyenko said that the plant is located in a possible tsunami zone and must meet special requirements. Due consideration was also given to the unique features of the tropical ocean environment.

'We like Indians' outlook towards life' CONTINUED from PAGE 1

Celebrating the India-Russia friendship down the ages, the lobbies in the Russian Academy of Sciences were bedecked with photos of official visits by leaders, ambassadors and ministers of the two nations. The 'Bollywood love story’ musical was a smashing sell-

out. Based on folk dances from various Indian regions, the show has enthralled Russians. A Russian girl was overheard telling her friend: "What I’ve always liked about Indian mentality is their attitude to things, their bright outlook for the future,”she said. Halar Lok Kala Kendra will stage a performance of Guja-

rati folk dances and music on September 28. Journey across Three Seas art exhibition will showcase canvases dedicated to India by renowned Russian artists.The celebrations of the 150th birth anniversary of Indian sage-poet Rabindranath Tagore will be the highlight of the event. The Jawaharlal Nehru Cultural Centre of the

Indian Embassy in Moscow has prepared an exhibition of Tagore’s literary works. People in St Petersburg and Kazan will also get an opportunity to see some events. The festival has been organised by the Indian Council for Cultural Relations and the Russian Ministry of Culture as part of a cultural agreement.

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rosatom.ru State atomic energy corporation ROSATOM roe.ru JSC Rosoboronexport website oilandgaseurasia.com Oil and gas industry news

in brief pharma Dr. Reddy’s mulling to buy pahrma factory in Russia Dr. Reddy’s Laboratories, which has been operating in Russia since 1992, is set to expand its over-the-counter drugs portfolio and is contemplating purchasing a production plant from a Russian pharmaceuticals manufacturer. Another Indian company, Aurobindo Pharma, had announced a joint venture with Diod, a Russian firm, shortly before.

Recently, the Ministry for Industry and Trade adopted a special-purpose programme under which the local market share of domestically manufactured drugs should reach 50% by 2020. And the Ministry for Health and Social Development has recently banned over-thecounter sales of codeine-containing medicines, which will become prescription-only from June 1 next year. RIR

defence Stealth frigate for Indian Navy begins sea trials Sea trials of the India Navy's first of the three advanced stealth frigates in the Baltic Sea started last week. 'Teg', the frigate of the Project 11356, also known as Talwar Class, is first of the three frigates ordered by the Indian Navy in 2006 under a $1.5 billion deal with Russia. The two other warships of the same class -- the 'Tarkash'

(Quiver) and the 'Trikand' (Bow) -- are at various stages of construction at the "Yantar" naval shipyard in Russia's Baltic exclave of Kaliningrad. The Teg is expected to be delivered to the Indian Navy in the beginning of 2012 to be followed by the 'Tarkash' in the same year and the "Trikand" in 2013, according to 'Yantar' shipbuilder. Itar-Tass

DEfence vikramaditya ready for delivery by december 2012

press service

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President of United Shipbuilding Corporation Roman Trotsenko has announced December 2012 to be the completion date of Vikramaditya aircraft carrier, a key Indian export order. “Today, the work is going ahead on schedule,” Trotsenko said confidently. “The technical problems are resolved. I am sure that the ship will be delivered to the customer in December 2012.”

Last week, the Indian Navy’s joint staff delegation led by Rear Admiral Nadela Niradzhan Kumar, chief of the shipbuilding and procurement department, undertook a comprehensive inspection of the work on Vikramaditya aircraft carrier at Sevmash shipyard. Kumar expressed satisfaction with the progress in modernising the aircraft carrier and found the ship to be more than 85% ready. RIR

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in association with rossiyskaya gazeta, russia THE times of india wednesday_SEPTEMBER 28_2011

03

Needed: A female President by 2018 laws tend to push women towards staying at home, and a “She is the only one with real macho mindset only serves to political stature and a vision. compound the problem. She is an extremely experi- Irina Khakamada, a presidenenced and effective manager,” tial candidate in 2004 and an says Olga Kryshtanovskaya of iconic female politician in the the Institute of Sociology at post-Soviet era, has retired the Russian Academy of Sci- from state affairs with a disilences. There are currently two lusioned view of women’s potypes of women in politics: tential in politics.“A woman, those who have been installed regardless of her status or the there by a man who wants to qualities she possesses, shall look at a pretty doll and those always be subjected to miswho have got into it by sheer trust,” she says.“For 13 years, talent. Matvienko falls into I spent 70 pc of my time and the second category. energy proving I am a politiWhen elections became free cian with equal rights. I only and the Soviet quotas were had 30 pc left to actually pass abolished in the early nineties, laws,”she told Ekho Moskvy women disappeared from the radio station. political scene.They no longer She is, however, fiercely oppresented themselves as can- posed to quotas which disdidates, says Kryshtanovska- criminate positively for ya. A patriarchal mentality, women, as she feels they do now devoid of Communist not constitute real progress. voluntarism, has become the “We must reform minds and norm. the environment,”she says. In Today, the social and political a political system based more system has a traditional view on cronyism than on democof gender relations, exacer- racy, the charisma and talent bated by a growing obsession, of a man are less important at state level, with a potential than his allegiances to those in demographic disaster, and the power. Women struggle when urgency of making babies to it comes to making an impresprevent it. It is becoming more sion.“Politicians in Russia can difficult to be a working moth- be completely uninteresting er. Nurseries and pre-schools and yet be leaders,” says are diminishing in numbers, Khakamada.“But a woman while those that remain are goes against the current. She not always free. New family must work hard to be noticed.

kommersant

Continued from page 1

Valentina Matvienko is now the third most powerful person In Russia.

She must be extraordinary.” Women account for 12 pc of deputies in the Duma. However, they tend to be relegated to promoting laws on family, education, health, sport, and so on.“They are not politicians in the true sense of the word, with an ideology and a broad vision, but rather hired professionals,”says Kryshtanovskaya. Nonetheless, some stand out from the crowd, like the Olympic speed skating champion

Making it in a man's world During the Seventies and Eighties, Valentina Matvienko held various positions in the Leningrad Communist Party. She was elected a deputy of the Supreme Soviet in 1989, when it had been granted real powers during Gorbachev’s perestroika. She later served as the Russian ambassador to

Malta (1991-1995) and Greece (1997-1998). She became the deputy prime minister with special responsibility for welfare till 2003 when, with Prime Minister Vladimir Putin’s support, she was elected governor of St Petersburg. She was recently elected as speaker of the Federation Council.

Svetlana Zhurova. Although she does sit on family, education, culture, physical education, and youth committees, she is alsoVice-Speaker of the Duma and a member of the Russian Olympic Committee. She says there is a need for her female colleagues to participate more actively in major decisions. “At first, it was said she was yet another sporting minx who would make up the numbers. But she has proved she has real political skills,”says Kryshtanovskaya. Kryshtanovskaya, a sociologist, is not only developing theories on the place of women in the corridors of power, but she has also been an active member of the United Russia party since 2009, and president of the “Otlichnitsy” (“First in the Class”), a new NGO, which has declared its mission to get a woman elected president in 2018. As a trial run, why not support Valentina Matvienko's candidacy in 2012? The fight will be inevitably difficult. A recent survey byVCIOM says a quarter of Russians believe that there are plenty of women in politics already. In the same breath, it also reveals that Matvienko would lose a presidential candidacy contest simply because of her sex.

Elections No PR activity as net-savvy politicians take charge and speak directly to voters on social networks

Blogosphere turns into a playground for political power Politicians are sprucing up their online image and fighting off trolls as the election campaign moves to the worldwide web. Anna redyukhina

With the elections just over a couple of months away, Russian politicians have turned social networks and their own websites into virtual soapboxes or town hall meetings. Politicians need to come across as real people, says Maxim Mishchenko, a State Duma deputy and leader of

re at

Find mo

kommersant

rir

Net-gain: Gudkov's blog-organised rally was a success.

theYoung Russia Movement. “In the nineties, it was fashionable to hire PR managers and press secretaries to communicate with the public,” he says.“In 2011, politicians have to conduct direct communication with voters via the internet.”The online audience loses interest if it sees the hand of a brand manager instead of a politician.“You have to write exclusive pieces yourself, give your assessment and provoke comments,” says Moscow City Duma deputy Kirill Schitov. Alyona Popova, an e-government specialist, advises clients

to monitor closely their online presence and watch out for “trolls”,who create fake profiles with the aim of discrediting public figures. SaysValery Sidorenko, an internet PR consultant:“The blogosphere is one of the favourite playgrounds of‘black PR’[negative PR used to discredit a rival] in Russian politics.”Spam technologies such as bots, mailings and fake bloggers were all used in black PR campaigns. LiveJournal is the most popular social network for bloggers in Russia. It has four million subscribers and 20 million

monthly visitors.“There is a scramble to get into the top 10 to 15 pages of LiveJournal,” says Dmitry Gudkov, leader of the youth wing of the Just Russia party.“Phoney bloggers, who did not exist before the elections top the ratings, but they command no public trust.” This spring, LiveJournal was attacked by hackers, and many blogs, including that of President Dmitry Medvedev, were unreachable. Many observers stress that regulation should be the next step in online politics – blogs

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and social networking sites are the least regulated areas. The Russian government is working hard to enforce Russian law on the internet, says Ilya Ponomarev, co-chairman of the Information Policy, Communication and Technology Committee. A bill is expected to be finalised soon. But Gudkov, whose blog is extremely popular, argues that attempts by the government to control what is happening on the internet are doomed.“If the authorities shut down somebody’s blog, it becomes even more popular,”he says.


04

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in association with rossiyskaya gazeta, russia THE times of india wednesday_SEPTEMBER 28_2011

tatarstan.ru/eng Official website of the Republic of Tatarstan president.tatarstan.ru/eng Tatarstan's president website

tatarstan A pioneer in creating technoparks to drive transformation, region has big plans: IT village outside kazan, new airport

Pay taxes or set up weddings, IT revolution is here bour, like China. Our advantage is people and their ideas.” That’s a key challenge to hightech companies in Tatarstan. “We want to build an ‘IT village’ outside Kazan based on the Skolkovo model in Moscow,”says Nikiforov, referring to Russia’s equivalent of SiliconValley located in a village near the capital.“By our estimates, we’ll need to house

We want to build an IT village outside Kazan based on the Skolkovo model, says IT minister Nikiforov. 20,000 IT specialists there to get this sector of the economy as large as we want it. Tatarstan currently has 5,000 such specialists. We’ll have to attract 15,000 from other regions of Russia.” In another part of Kazan, an industrial park called Khimgrad became the first such project in Russia to be internationally certified by representatives of Ernst & Young and Knight Frank. Khimgrad focuses on polymer and chemical production and, unlike the technoparks, it plans to

tap underdeveloped raw materials in Tatarstan.“We produce a plethora of polymers in Tatarstan, but these are typically exported and then reimported with much added value,”says the park’s manag- the quote er, Airat Gizzatullin.“At Khimgrad, we’re just focused on modernising the local economy and establishing efficient supply chains.” K h i m g r a d o ff e r s f u l l y equipped facilities, business solutions and tax breaks to investors both Russian and foreign willing to set up product i o n . “ O n ly a c o m p l e t e ecosystem can structurally change Russia’s economy on Tatarstan President the scale that our country’s To develop the region leadership talks about,” says and become the leadNikiforov.“That’s what we’re ers, we should chatter trying to do in Tatarstan, and we began earlier than other less and work more.” regions.” But a lot of work remains to be done. “When we asked investors five years ago what we needed to do for them to come, they said, ‘Build a new airport!’ It was a funny response, Over the past several years, but carried a lot of truth.” Tatarstan has had one of the Today, a sign hangs over the lowest levels of risk among shoddy building that services Russia’s regions from the perboth domestic and interna- spective of foreign investors. tional flights to Kazan:“New The Fitch agency puts Tatarterminal to be completed in stan at the third place among 4th quarter of 2011.” press service

gional budget, and this is important,” said Yushko. “Our IT currently accounts for 3.5% experience proves techof Tatarstan’s economy, but noparks are a viable model for Nikiforov says the republic is economic development in aiming for 7-10%, like its Russia,”says he. peers in the developed world, Yushko explains that most of by 2016.“The tools we have for the companies at Idea provide these e_SEmD technoparks, engineering services, software venture funds and universi- design or Web design. After ties are nothing individually,” three years, graduates of Idea says Nikiforov. “They are a have the option of leaving the part of a single ecosystem we technopark altogether by getmust develop systematically.” Agrees SergeiYushko, general In June, users of the director of a neighboring eGov programme technopark called Idea, completed a million “We’ve existed for seven years and a day hasn’t gone by that transactions, marking I haven’t felt the complete a four-fold increase. backing of local authorities.” Idea was founded on the ter- ting bank loans independentritory of an abandoned de- ly to acquire office space, or fence plant in 2004 with the they can move into its busiaim of creating jobs in high- ness park, where rent is no tech sectors of the economy. longer subsidized. There, By providing two key services neighbours will include the to local start-ups — cheap local R&D branches of interrent and sound business ad- national behemoths such as vice, the technopark“gradu- GE, Honeywell and Siemens. ated” enough firms within “The foreign companies come three years to become self- first and foremost for the qualsustaining; by 2007, its com- ified personnel,”saysYushko. panies were paying enough “I’m a believer in the unpoputaxes into the local budget to lar notion that we don’t need repay the start-up capital. factories in Russia,”saysYush“For the last four years, we’ve ko.“Production will be moved been independent of the re- to where you have cheap laContinued from page 1

Rustam Minnikhanov

"

Investments and Rating Russian regions after Moscow and St Petersburg. Investments in Tatarstan amount to $4.15 billion. They come from 27 countries, most notably from Turkey, France, Cyprus, USA and Germany.

Tatarstan is a pioneer in creating its own innovation system. The law “On Innovative Activities in the Republic of Tatarstan” passed last year determines the forms and methods for government regulation of innovation processes. This year, the Republic of Tatarstan adopted an Innovation Memorandum for 2011-2013, which outlines guidelines for this sector. In 2010, the share of innovative goods and services increased to 18% of GDP, which is 1.5-2 times higher than in

Russia as a whole. Tatarstan has the largest industrial production special economic zone in Russia, called Alabuga. It is a custom-free area that promotes the development of business. The gem of Tatarstan’s burgeoning innovative infrastructure is the Khimgrad techno-city, which offers a friendly environment for small and medium-sized private enterprises. The main areas are petrochemistry and cooperation with other innovative industries.

lori/legion media

Innovation: Setting new standards

Kazan Kremlin, the majestic historic citadel of Tatarstan, was built on the banks of the Volga river in the 16th century.


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tida.tatarstan.ru/eng Tatarstan's investment development agency www.invest.tatar.ru/en/ Investment portal of the republic of Tatarstan

Russia india report

Region

in association with rossiyskaya gazeta, russia THE times of india wednesday_SEPTEMBER 28_2011

05

In figures

$35

billion was the region's Gross regional product (GRP) in 2010. In five years the republic plans to double it. Industrial output in the region grew by 6% last year.

Chemicals and petrochemicals are major focal points of growth for the growing economy of Tatarstan.

Tatarstan: In a nutshell The republic, whose capital is Kazan, is situated on the East European Plain at the confluence of the two greatest rivers - the Volga and the Kama. The distance from Moscow is 797 km. Covering 68,000 sq. km, the region is roughly the size of such countries as Ireland and Sri Lanka. The population is 3,8 million. Over 70 nationalities live in Tatarstan, Tatars and Russians being the most numerous. The official languages are Tatar and Russian.

The economy: A hub of oil, auto industries

Trucks, helicopters for India The region is one of the most economically developed republics in Russia. Tatarstan today boasts oil production, oil and gas chemistry industries, car-manufacturing and aviation industries, power generation and IT. The oil and gas industry is the main source of budget revenues. The republic produces 32 million metric tonnes of oil a year (6.5% of the total Russian output). Its proven oil reserves exceed 1 billion metric tonnes, plus an estimated 7 billion metric tonnes or more of bitumen oil. Oil is refined at the Nizhnekamsk Refinery, the biggest in the republic (7 million tonnes of oil a year). Nizhnekamskneftekhim (synthetic rubber and polymers) and Kazanorgsintez (the leading producer of polyethylene in Russia, with a market share of more than 40%) are worldclass companies. The repub-

lic has a highly developed automotive industry. Tatarstan’s visiting card is the KAMAZ auto giant, Russia’s biggest motor corporation. KAMAZ is already well known in India due to a JV with the Indian company Kamaz Vectra Motors Limited. The JV plans to produce 1250 trucks for India in 2012. India also knows famous Russian Mi-17 helicopters. They are produced in the Kazan Helicopter Plant, the world-famous producer of the Mi-8/Mi-17 family of helicopters. Mi helicopters account for 17% of the turbo-shaft engine helicopter market. Russia and India recently signed a major contract to supply Mi-17 helicopters to India. KAMAZ, together with the Kazan Helicopter Plant, is engaged in the Tupolev innovative project programme, which includes eco-friendly road vehicles and helicopters.

of Tatarstan’s regional economy is based in information technology. The republic hopes to increase that amount to between 7% and 10% in the next 5 years.

Innovation, legal reforms turn region into a magnet for foreign investment The exhibit at International Investors' Forum showcased diverse opportunities in Tatarstan, which has morphed into one of Russia's most successful regions. alexander vostrov rir

All eyes were on the two-storey exhibit of Tatarstan at the International Investment Forum in the Russian Black Sea resort city of Sochi. Displaying a medley of opportunities in diverse sectors ranging from electronics and auto to retail and IT, Tatarstan was recognised as the most successful regions at the forum. The man behind the show was Tatarstan’s President Rustam Minnikhanov. A ‘Fifty best innovation ideas,’ contest was held which helped evolve criteria for selecting the most promising and successful business projects. At the 150 metre exhibit, the region’s investment projects were arranged in themed sections: Electronic Tatarstan (showing e-government systems and the Electronic Retail Information System of the Republic of Tatarstan (ETIS[J1]), a petrochemical cluster, construction and transport, agriculture, IT technology, the Alabuga SEZ, nanotechnology, and stands for the 2013 Universiade in Kazan. “We just can’t look at this event in any other way; for us it’s a matter of pride,”says Azat Tukhvatullin, General Director of EVO-RU creative services, who were in charge of

the exposition lay out.“People have got used to seeing Moscow and St Petersburg as the centre for everything that is interesting and profitable, and no one pays much attention to the regions anymore. But we really do have things to show off and we want to work with foreign investors,”says he. This year, the star of the show was the high-speed, fully computerized passenger ship, the A 145 motor vessel, exhibited by Tatarstan. It is designed to transport up to 150 passengers and their luggage along the coastline at a speed of about 40 knots (over 70 kilometres an hour), and can cover more than 200 miles without having to refuel. “One of the ship’s most important selling points is safety in every sense of the word,”says Sergei Porodnikov, chief engineer at the Gorky shipbuilding plant in Zelenodolsk, where the vessel was built. The vessel maintains its stability even if two compartments are flooded and it is able to withstand a five-point storm. The ship is primarily intended for use at the Sochi Winter Olympics in 2014. Earlier, Tatarstan showcased many projects and opportunities during theVenture Fair in Kazan, which was aimed at attracting investors to the region’s innovative technological companies and inducing them to invest in science-intensive small and mediumsized businesses. The fair was also helpful in paving the way for large-scale negotiations with foreign guests, hosting, as

it did, 62 companies from Canada, Britain, the Russian republics, regions and cities: Tatarstan, Moscow, Novosibirsk and Tomsk, which offered their ideas and business plans to representatives from more than 50 foreign and domestic venture funds.The fair generated $225 million investment

Rustam Minnikhanov focuses on attracting investors to the region's innovative tech companies. proposals and attracted more than 1500 participants. Tatarstan has also upgraded the legal framework, a key concern for any foreign investor eyeing the Russian market. The law ‘On Investment in the Republic of Tatarstan,” was passed last year. The Innovation Memorandum for 20112013 has been also signed. These initiatives have bol-

stered the republic’s reputation among investors and attracted some interesting and economically viable start-up projects. During the Sochi2011 Forum, Vneshekonombank (Bank for Foreign Economic Activity) signed credit agreements with OOO Ford Sollers Holding, Ford Sollers Elabuga (Tatarstan) and ZAO Ford Motor Company worth 36 billion roubles, which will will finance a joint venture Ford Sollers for manufacturing cars and commercial vehicles. The foreign partner will own a 50% stake and will contribute its plant in Vsevolozhsk and distribution network in Russia to the authorised capital. In the Elabuga special economic zone, the production of commercial Ford Transit vehicles and engines will use existing capacities producing Fiat Ducato vans and a plant with an annual capacity for producing 180,000 engines will be built from the scratch.

reuters/vostock-photo

A 145, the “new star” of Russian ship-building industry, is umatched in speed, manoeuvrability, safety and comfort.

getty images/fotobank

3.5 %

In January 2011, KAMAZ team became the gold winner of the DAKAR rally for the tenth time over the past 15 years.


06

Opinion

Russia india report

bookmarks

in association with rossiyskaya gazeta, russia THE times of india wednesday_SEPTEMBER 28_2011

Euro crisis cements BRICS of a new world

www.cdi.org/russia/johnson Johnson’s Russia List www.russiaprofile.org Analysis of business, economic, political and cultural trends en.fondsk.ru Strategic Culture Foundation magazine

Limiting China: Fact and fiction Andrei Volodin

specially for RIR

Manish Chand

U

specially for rir

niyaz karim

T

he BRICS’ big moment is finally here. In a dramatic reversal of fortunes, Europe, which had vigorously objected to greater voting power for emerging economies in the International Monetary Fund (IMF), now finds itself seeking a bailout from the BRICS to stave off the worst crisis to hit the euro zone. With over $4 trillion in reserves, the world’s biggest emerging economies – China, Brazil, India and Russia - may well prove to be Europe's saviours. It’s, however, not clear what form this rescue package will take with reports of differences among BRICS countries about the risks of a supp o rt p a ck a g e fo r P I G S (Portugal, Ireland, Italy, Greece and Spain) countries which have plunged the European economy into a deadly downward spiral. Be though as it may, the symbolism of the potential BRICS’ bailout is not lost on watchers of the international scene. Against this backdrop, finance ministers and central bank governors of the BRICS nations met in Washington recently and asked the G20 nations to act swiftly to ease the euro zone debt crisis.Warning that the failure to coordinate could lead to a repeat of the 2008 global financial crisis, they said they are considering providing money to the IMF or other global financial bodies to increase their capacity for combating financial crises. “There is a risk that the sovereign debt crisis of some countries becomes another financial crisis,” warned Brazil's Finance Minister Guido Mantega. Keeping this in mind, the BRICS ministers called for the World Bank to mobilize more resources to increase their assistance to developing countries. Most important, they seized the opportunity to ask the IMF to speed up quota and governance reforms. The increased assertiveness of BRICS in the wake of the euro zone crisis has stirred speculation about the BRICS countries trying for a grand bargain with the developed countries in return for the bailout. For example, will India and Brazil demand a

permanent seat in the UN Security Council for rescuing the euro zone? Or will China seek a greater role for itself in Bretton Woods institutions? These questions remain speculation at best, but the very fact that these questions are being posed shows the emergence of BRICS as a formidable global force in a rapidly mutating international order, marked by a tectonic shift of power from the West to the East and from the North to the South. In nearly three years since Russia hosted the first BRIC summit in Yekaterinburg at the peak of the global economic crisis in June 2009, the BRIC, a term coined by Goldman Sachs’ Jim O’ Neill in 2001 to denote the world’s fastest emerging economies, has evolved into a powerful grouping united by the overarching design to shape a post-crisis economic architecture and a greater say for emerging economies in global decision-making institutions that has long been the preserve of the triad of the United States, Europe and Japan. The BRIC turned into BRICS when South Africa, African continent’s largest economy, was included in the grouping at the Sanya summit in China in April 2011. In fact, the creation of a multi-polar, equitable and inclusive international order and the reform of Bretton Woods institutions have been key themes that resonated through all the three summits held inYekaterinburg (2009), Brasilia (2010) and

Sanya (2011). The BRICS countries, which comprise 300 million people or nearly half the world’s humanity and account for 21% f global GDP, are also expanding their quadrilateral cooperation across diverse fields, including trade, security, energy and culture. The action plan entails regular

With over 4 trillion in reserves, BRICS economies may prove to be Europe's potential saviours. meetings of foreign ministers, senior security officials, trade ministers and health ministers. When O’Neill coined the term BRIC in 2011, he did not realize that the change would happen so fast. One decade later, China is the world's number two economic power, while Britain has dropped out of the top five, overtaken by Brazil. The economies of India and Russia are growing fast. South-South business and multilateralism has acquired a new resonance. Stephen Jennings, the CEO of Moscowbased investment bank Renaissance Capital, predicts more and more big "southsouth" business deals will be struck in developing nations. “The traditional financial centers and Western economic model are losing their pre-em-

inence," Jennings told investors in Moscow in June. "There is a gravitational shift of business, capital and ideas toward emerging market economies. Fast-growing economies, including Russia, are becoming the leaders of the new economic order." The diplomatic pecking order, too, has changed with BRICS being often compared to a parallel G7 and it’s unthinkable to do any major global deal without BRICS on board. In a sign of the shape of things to come, all BRICS countries are concurrently on the UN Security Council as permanent and non-permanent members. “By strengthening the economic framework of the multipolar world, BRIC countries are objectively contributing to creating conditions for strengthening international security,”says Russian President Dmitry Medvedev. When the Copenhangen climate change negotiations were floundering in December 2009, U.S. President Barack Obama went into a huddle with leaders of BASIC countries comprising China, India, Brazil and South Africa. And now, the festering euro zone crisis looks set to hasten the global redistribution of power with the accelerated rise of BRICS, the offspring of the 2008 global financial meltdown. Manish Chand is Senior Editor with IANS and a New Delhi-based writer on international affairs.

S Secretary of Defence Leon Panetta recently voiced apprehensions about the ongoing global realignment and promised to restrict the influence of China in the international system, and also that of Russia, Brazil and other countries. How can the US prevent the global realignment in the postAmerican world as the geoeconomical and the geopolitical axis of the world continues to move towards the East? Being realists, the western “elite”can seriously bet on two factors: politico-military and ideological. The US seeks to partner India in creating ballistic missile defence system, a move that could be seen as a bid to counter China. Enforcing politicomilitary hegemony with“futuristic” types of armament like the global anti-ballistic missile system raises several questions. Wouldn’t such“defence initiatives” trigger accelerated and large-scale deve l o p m e n t o f s t r a t e g i c offensive systems, including high-tech ones? Wouldn’t the West receive a response in the form of building up regulartype armaments both by“outcasts”and relatively law-abiding countries? What shall one do about the non-proliferation regime in the conditions when the “Libyan crisis” has become a powerful stimulator of“nuclear nationalism”? Secondly, the US appears to be reviving ideological struggle in international relations.The obsolete Cold War concept is used against not only Russia (“violence”with regard to internal opposition,“violating” human rights), but also China (attitude of the state to dissidents,“brutal”style of governing Tibet and the Xinjiang Uygur Autonomous Region). It is useless to reproach western partners for double standards. Russia should be guided by the following three principles in its policy in a step-by-step way. Firstly: it should seriously study ideas and practices of political democracy, including the scrupulous holding of elections at all levels. Secondly, Russia needs to pay more attention to the models of political representation in countries like India and Brazil, which are

known for impressive experience in democratic governance. Thirdly, Russia should participate in international affairs based on it’s national interests. This is the only way for the country to turn into the “gravitational field” of the global policy and eliminate the“inferiority complex”developed in the 1990s. What kind of role can we see for India in the post-American world? India’s trajectory of high economic growth has turned it into one of the“gravitational fields” of the world politics. However, the China threat factor is playing on the public imagination. But this threat perception does not square with facts. Firstly, there are at least as many internal problems and contradictions in the Celestial Empire as in India: there are at least 100 million Chinese who live below the poverty line. Internal problems will, therefore, dominate in the development

Russia is ready to support better ties between the great “Elephant” and the great “Dragon”. of China in the foreseeable future. Secondly, it is doubtful that Beijing is striving for the global hegemony not least because negative examples of Britain and America (and the Soviet Union, according to some Chinese) trying to wield global domination do not inspire the cautious Chinese in any way. From conversations with my Chinese colleagues, I can say that the idea of the global domination by one country or any bloc of states in the changed global scenario is unviable. Finally, India and China have such giant and complex social systems that it is simply impossible to“edge” them out of the reckoning. Therefore, India should not count on the mythical support from the “Third Force”; the great“Elephant”can develop relations with the great“Dragon”at its own discretion, and this will be completely supported by Russia. Andrei Volodin is Senior Researcher at the Institute of World Economy and International Relations in Moscow.

All articles appearing on page 6 do not necessarily reflect the opinions and views of the editors of Rossiyskaya Gazeta and Russia India Report.


bookmarks

www.rudn.ru/en Peoples’ Friendship University official website en.russia.edu.ru Find answers to many questions about education for foreigners in Russia

Russia india report in association with rossiyskaya gazeta, russia THE times of india SEPTEMBER 28_2011

Education

07

Interview VLADIMIR FILIPPOV

Breeding ground for global elite Rector of Peoples' Friendship University of Russia (PFUR), which Hosts students from around 150 countries, upbeat about attracting India’s budding IT talent, bets on the best not more. These friendships prove useful outside the university as well. In time, they become truly prominent figures — ministers, and prime ministers, and so on. The PFUR connection will be very useful, specially if a PFUR graduate wants to open his/ her own business.

daria trosnikova rir

What competitive advantages do Russian universities have? A state standard of education has existed in Russia since the Soviet times. We did research comparing the subjects taught at 19 universities in the US. Only two subjects were the same: English and History. All the other subjects differed. In Russia, that could not be. Russian education guarantees fairly high quality. Different Russian universities have their strong areas.

PFUR educates the world elite... Here are some specific examples: a graduate of PFUR is now a minister in Canada

Most students from India apply to our Faculty of Medicine, some to Engineering.

What are the advantages of enrolling with PFUR? PFUR is the only university in the world with students from 140 countries. Students want to come here to study because we provide not only a guaranteed quality of education, but also a high quality of life. We have a wonderful polyclinic, our own department of police, dozens of cafeterias and restaurants. Secondly, people must think about their careers. Upon graduating, our students have friends in 50 countries around the world, if

where she heads a committee for indigenous people of the North. In Chad, the prime minister from 2008 to 2010 was a PFUR graduate Youssouf Saleh Abbas, a lawyer. In Latin America, Bharrat Jagdeo is now completing his second term as President of the Co-operative Republic of Guyana: he graduated in 1990 from PFUR with a degree in Economics.

DoesPFURhavemanystudents from India? Right now, we have fewer In-

dian students than in the past. But even so, PFUR has a substantial Indian chapter, around 60 students. Of course, it is far smaller than our Chinese chapter, some 600 students.

Is knowledge of Russian required to study at PFUR? We have developed a unique system, which helps a student to master Russian in a very short period of time. But some students do not want to spend an extra year learning Russian, and want to study in English. In that case, we give them a three-month accelerated course in Russian. So that they can go to the store or, say, meet a Russian girl. But in time, our students realise that unlike

photoxpress

from one (if not two or three) foreign languages. A truly multi-cultural institution, it has hosted students from 158 countries. Today many PFUR graduates have senior posts in government, are heads of

Vladimir Filippov AGE: 60

What has changed in the last 20 years? Why are there fewer students from India? PFUR has begun to broaden its policies. Earlier, there were no students from China at all. In 1993, when I became Rector, PFUR had 3,500 students from 109 countries. Now, it has 5,200 students from 140 countries. Twenty years ago, there were no students from Europe. We redesigned the system so as to increase the number of countries represented at PFUR. As a result, certain chapters have shrunk.

PFUR: Where leaders and future PMs are born Home to around 30,000 students, PFUR is currently No. 4 of Russia’s more than 1,100 universities. Founded in 1960, it was renamed Peoples’ Friendship University of Russia in 1992. With more than 12,000 students enrolled, PFUR employs over 1,600 professors and instructors, including over 200 doctors of science and some 800 candidates of science (Ph.D.s) and more than 60 academicians. At PFUR, one can get a degree in one’s chosen area of expertise as well as in one or two foreign languages and, possibly, a second area of expertise. All PFUR students (foreign and Russian) get degrees in translation

Biography

major corporations, businesses, scientific and educational centers. They have gone on to become prime ministers and presidents of countries in Asia, Africa and Latin America.

CIVIL STATUS: married, has a son and daughter

Rector of PFUR (1993-1998 and since 2005) and an academician of the Russian Academy of Education. Born in 1951, he was Russian Minister of Education from 1998 to 2004. An expert in differential equations and functional analysis, he has modernised education in Russia by deploying the Western model. He is the author of more than 120 published scholarly articles.

photoxpress

PFUR blends high standards of excellence with a high quality of life. It’s a combination that’s hard to match in a globalised world, says Vladimir Filippov.

graduates of other universities, they will know not only English, like everyone, but also Russian. If you don’t know Russian and the Russian mentality, it is hard to work with Russians. In a sense, until you’ve had a glass of vodka with them, your venture will stall, no matter how much money you pour into it. In India, many engineers know English. But only a fraction of those know Russian. So Russian is a big plus in the job market.

How do foreign students apply to PFUR? On the PFUR website, applicants will find a list of the necessary documents that must be sent to us in the regular mail. We review those documents and if the applicant’s grades are on an average not less than 60% of the maximum score, he or she is automatically accepted to PFUR. We meet our students at the airport ourselves, around the clock. There is also a special medical center dedicated to

helping foreign students adapt — to help them get used to the Russian climate more quickly, and to our food.We explain the rules and laws of Russia to them in their native language. After that, when they’ve settled in, they begin their studies.

How many foreign languages do you know? Two. English and French. I have two degrees in translation. Incidentally, languages are one of the advantages of PFUR. For example, our Francophone students, who of course know French, are required to study English and may study Russian as well.The current Prime Minister of Kazakhstan, PFUR graduate Karim Massimov, knows Kazakh, Russian, English,Arabic and Chinese. He speaks them all fluently. What professions do your Indian students favor? Our students tend to choose those professions that are needed in their home coun-

tries. For example, PFUR has an agreement with Angola.We educate their future engineers in the mining industry.We also have agreements with a number of countries in Latin America.We educate their future specialists in the oil and gas industry. Most students from India apply to our Faculty of Medicine. Some apply to our Faculty of Engineering, while others prefer computer science.We hope to have more students in our IT faculty in future. IT is very highly developed in India, while Russia gives you the best education in mathematics. Russian students are still the main winners at international Olympiads in IT. It’s hard to compete with our students. We have a fundamental system; children begin studying math in first grade.

Where do your foreign students live? They all live in dormitories. Some try to rent apartments. But they almost all return to campus where life is more comfortable and the security is much better. Our students also all receive small stipends. The older students usually earn money on the side.We try to find our students jobs around the university. And we help them to find summer jobs elsewhere.


08

RUSSIA INDIA REPORT

Technology

BOOKMARKS

IN ASSOCIATION WITH ROSSIYSKAYA GAZETA, RUSSIA THE TIMES OF INDIA WEDNESDAY_SEPTEMBER 28_2011

www.cortona3d.com The Georgy Pachikov company's profile eng.cnews.ru Find more information about Russian IT industry

FIRST PERSON GEORGY PACHIKOV FOUNDER AND CEO, PARALLELGRAPHICS LTD.

3D virtual guides will simplify lives... RIR

On Georgy Pachikov’s screen, there appears a large white museum hall.A racecar, a large backhoe on wheels and an airplane engine are on the platforms. Everything can be viewed three-dimensionally. Quickly, Pachikov grabs the backhoe on wheels with the mouse pointer and it turns out to be Leonardo da Vinci’s armoured vehicle with cannons and a metal shell. “See, this cog turns here and that simultaneously drives the tower.”After ten seconds, he zooms in on a wood cutting machine: “This is where you horizontally insert the rough wood and the graver is inserted vertically from above here. This button turns the machine on. The longer you press the mouse clicker, the deeper the wood is engraved. Look! Whoosh!” Pachikov says enthusiastically. Pachikov is the founder and president of ParallelGraphics, a software company, which develops user guides – animated repair manuals and technical documentation in 3D.The question he answers is one he's been asking since his childhood: “How does that work?” Can a broken washing machine change the world? Well, ask the 58-year-old Pachikov. Looking at him sitting in an

knew what could be done with 3D graphics. The market was still somewhere in that dreamy land called the future. When Pachikov moved to a new residence in 1999, his washing machine broke.Together with a colleague, he takes the machine apart,“down to the last screw”.When they reassembled the machine again and turned it on, it worked, but there were five screws left. “We had no idea where to begin: the user manual was in French and there was no translation. And even though we are both engineers, we were at a complete loss,” recalls Pachikov. The washing machine gives the programmer a brilliant idea: “An animated repair manual in 3D that explains each individual step sequentially, translated into multiple languages – that would be the saving grace for all technicians!” That same year, he founded

BIOGRAPHY OCCUPATION: SOFTWARE DEVELOPER AGE: 58

Born in 1953 in Tbilisi, Georgia, Georgy Pachikov studied economic cybernetics in Moscow. He opened the first USSR computer club in 1986, with his brother and iconic chess player Garry Kasparov. In 1989, the brothers founded ParaGraph, which the US giant Silicon Graphics bought for $57 million in 1997. His current company, ParallelGraphics, cooperates with Siemens PLM, among others. 2010 revenues: $6 mn.

ParellelGraphics. His team quickly assembled the project documentation. For Russia, they act counter-cyclically.“In this part of the world, innovation processes run in the oppo-

Cortona3D: When technical illustrations learn to walk Cortona3D is a software programme that automates the development process of technical documentation. Applications are almost limitless: from Foucault's Pendulum to a hydropower station, selected technical mechanisms can be simulated. The files can be integrated into the repair and maintenance manual as a video sequence that shows each task step-by-step.

FROM PERSONAL ARCHIVES

ALEXEI KNELTS

Asian café in downtown Moscow, you can hardly guess his age. His T-shirt flaunts a youthful one-liner: “How do you feel today?”And he smiles a lot. In 1989, Georgy and his brother Stepan, both software engineers, founded the ParaGraph company.“Back then, we were the first in the world to simulate the everyday on a computer, long before Second Life,” Pachikov says proudly. They developed a virtual environment in which each user can stroll across the Red Square as their alter ego. “Each avatar has a speech bubble above its head where you can chat.”But despite this mind-bending innovation, success eluded them.“After a while, all users left their avatars behind and limited their activity to chatting – interpersonal communication was still the most important,”says Pachikov. At that point, nobody really

FROM PERSONAL ARCHIVES

Can a broken washing machine change your world? Ask Georgy Pachikov, who has made a big splash with technical guides in 3D format.

site direction: a Russian invents something and only afterwards worries about what to do with it and where to find the market for it.”Pachikov, on the other hand, knows which target audience he’s puzzling over.After a twoyear development phase, ParallelGraphics introduces Cortona3D,a software programme that converts technical descriptions of individual tasks into three-dimensional animation. Pachikov’s first large client was the US aircraft company Boeing, in 2001.“Boeing maintains a design center in Moscow where the boys scan the Russian market for innovations and new talent,” he explains. After his presentation, “the boys”offered him an exclusive five-year contract. The collaboration is very successful.“The day the Boeing contract ended, Airbus was knocking at the door,”laughs a youthful Pachikov. More big names followed, including General Electric, Honda and Siemens. For the Business Jet, the new Japanese small aircraft, ParallelGraphics created all the technical documentation. And in 2011, Pachikov signed a deal with Siemens. His virtual preparation of

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technical products is integrated into the electronics giant’s Team Center programme package. The applications in industry are huge, says Pachikov:“Because of our software, General Electric saved 70% off the cost for technical documentation,” he says. The software also makes it possible to put a product in the market more quickly because it can already illustrate it in its entirety during the development phase. Even beyond business, Cortona3D can also be used for training in technical schools. “In the future, every auto mechanic, every electrician will have the individual steps readily available on their tablet PC and can then implement them,”Pachikov raves. In order to describe his dream, the“Exploratorium”, he opens his computer once more. Now he zooms in on an engine, grabs it with the mouse clicker, disassembles and reassembles it virtually, lets the turbines spin. “Imagine a virtual museum where every technical device ever invented by man is collected. And you can walk through and operate each one, take it apart and reassemble it.”How does that work!

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Russia&India Report #9-2  
Russia&India Report #9-2  

Russia&India Report supplement distributed with Economic Times in India

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