Expert:
The rise of Stalin’s popularity in today’s Russia is an illusion, says Mikhail Vinogradov, who heads the Petersburg Politics Foundation. From the 1930s to the 1950s, the state propaganda machine worked diligently to foster an image of the great and irreproachable “leader and teacher.” Stalin’s name was immortalised in poetry, streets were named after him and his statues were everywhere. In other words, the Stalinisation campaign was orchestrated from above and the people eventually got used to the idea.

Indeed, among certain people in Russia, positive feelings toward Stalin outweigh negative emotions. A public opinion poll conducted in December 2009 by VCIOM showed that 26% of respondents respected Stalin (down slightly from 27% in 2001); 28% were indifferent (up from 13%), and 13% disliked Stalin (vs. 18% in 2001). The same poll revealed there is no demand for such a leader today, with only 29% prepared to welcome one (down from 42% in 2005) and 58% voicing the opposite opinion (52% in 2005). Another opinion poll, conducted by the Levada Centre in March 2010, also dispels the myth of Stalin’s rising popularity. Asked about their attitude to a new Stalin monument to mark the 65th anniversary of victory in World War II, 24% gave a positive reply (down from 29% in February 2005) and 36% responded in the negative (vs. 37%); 28% said they were indifferent (unchanged from 2005). This data does not suggest that Stalin enjoys a high popularity rating.

For a certain group of Russians, positive feelings about Stalin reflect their nostalgia for a strong country, Vinogradov believes. This explains why Stalin’s popularity grew markedly in the 1990s, particularly in the aftermath of the 1998 default, a trend that could be seen up to 2004. Another reason, he suggests, is that many people do not see much in Russia’s 20th century history to be proud of, apart from the victory in World War II and the first manned space flight. Stalin is a real symbol of victory to many people, particularly for elderly voters.

If we examine the way this issue is treated by our heads of state, we will see that little sympathy is shown for Stalin, to say nothing of any aggressive campaigning to re-establish his cult. “The memory of our national tragedies is just as sacred as the memory of our victories,” President Dmitry Medvedev said in December 2009. “No economic achievements… nothing can take priority over human life. Repression cannot be justified,” he stressed. At the same time, the president said that “Stalin’s crimes cannot dwarf the greatness of our people, who won the Great Patriotic War and made Russia a powerful industrial country, raising our industry, science and culture to a new level.” As we can see, the positive and the negative go together.

When Prime Minister Vladimir Putin was asked about his feelings on Stalin in December 2009, he said: “If I say that I like Stalin, some people will be disappointed; if I say that I don’t like him, others will be offended. One thing can be said for certain: the country changed radically from 1924 to 1953.” Putin’s United Russia party considers the fact that regional authorities dropped their plans to place Stalin posters in central streets on Victory Day as a major achievement. Does this look like a cult? Moscow Mayor Yuri Luzhkov did not allow Stalin’s statue to be re-installed in one of the city’s central metro stations.

Supporters of the idea that re-Stalinisation is underway often accuse the authorities of using underhanded methods to achieve their goal, such as blessing history textbooks portraying Stalin as a hero. Indeed, there was one such scandal in Russia, but the number of government-recommended textbooks reaches more than a hundred. In addition, lessons on the GULAG system – an key issue for anti-Stalinists – are part of the school programme.

On the other hand, top officials cannot afford to make one-sided estimates of Stalin, given his strong popularity among elderly voters – and Russia’s voters are getting older, with pensioners already accounting for about one-third of the total. In addition, elderly people are much more active than average voters: while the average turnout hovers around 40%, the Levada Centre calculates that the number reaches 80% for elderly voters in regional elections and 60% in national polls. In this situation, Russian politicians face a dilemma: criticising Stalin will alienate pensioners, while praising him will irritate liberals, thus boosting the chances of the Communists in elections.

A: Indeed, among certain people in Russia, positive feelings toward Stalin outweigh negative emotions. A public opinion poll conducted in ... Click to expand

Expert:
Hostile takeovers in whatever form, take place all over the world. The methods vary depending on the situation in a particular country, the level of bankruptcy legislation, as well as political and financial pressure from conflicting parties. For example, in the Hollywood movie Pretty Woman, starring Richard Gere and Julia Roberts, the main character was a typical corporate raider involved in the business of acquiring and breaking up companies, who was lobbying in Congress to block a deal planned by his rivals, while his lawyer offered to pull the plug on the opponent cash by simply making a phone call.

In the 1990s and early 2000s, asset takeovers were just as common in Russia and the picture of masked men occupying corporate buildings became a regular feature in news reports. The situation has changed a lot since then. Hostile takeovers do take place, but they are done in a much more civilised manner, says Philipp Stivelberg, Senior Partner at Incor Alliance Law Office. Instead of masked invasions, raiders now focus on loopholes in legislation, in what is known as green mail. Naturally, more sophisticated raiding methods lead to more sophisticated defenses. The owners of companies have learned how to better defend their assets and legislation has changed significantly, making corporate raids much less effective. The crisis has played a part, too, bankrupting weak businesses without external pressure. When juicy assets can be bought for a song, why spend more to bankrupt inefficient businesses?

The number of ways to protect businesses against corporate raids has increased as well, beyond simply relying on ties with officials, Russian lawyers say. Raiders have diversified their methods, resorting to pressure through law-enforcement bodies, arbitration and libel in the media, Mr. Stivelberg explains. Business owners should keep this in mind when developing their defense strategy. By taking this approach, Mr. Stivelberg’s law firm saved Bazalt CJSC (one of AvtoVAZ’s component suppliers) from a hostile takeover last year. “A group of people approached the company’s administration, suggesting that they step down and sell their stock. The offer was declined and the problems began,” Stivelberg said. Using trumped-up charges against the company’s chief, law-enforcement officers seized nearly all of Bazalt’s financial documents. At the same time, the raiders were buying shares from employees and registering them with an alternative registrar. This was used as a pretext to open a criminal case against the company's management, accusing them of breaching share acquisition rules. Finally, the raiders registered a company with the same name, which intentionally disrupted all its contracts – a perfect tool for spoiling a company’s image in the media. All of these problems were resolved using solely legal means, such as complaints to law-enforcement bodies, court cases and explanatory work with the media.

Though Russia’s arbitration law is still in the making, many important loopholes have already been closed. In particular, the Federal Financial Markets Service has stepped up its control over general shareholders’ meetings in limited liability companies. A typical scheme used by unscrupulous raiders is to disrupt a shareholder meeting (the absence of the holder of a certain number of shares means the absence of a quorum), after which they schedule another meeting and work to prevent the owner’s representative from attending, even to the point of physical detention. These second meetings are then used to pass the resolutions needed for a takeover. Earlier, such cases could only be challenged in court, but now all that is needed is a complaint to the Federal Financial Markets Service, Stivelberg says. New rules about independent shareholder registers also work against the raiders: this was one of their favourite methods, as professional registrars normally shun shady business. Now, there is a property qualification for register maintenance: 100 million roubles in equity. Reporting rules to the Federal Financial Markets Service have also been tightened, with fines introduced for non-disclosure of information set at up to one million roubles. Administrative responsibility for concocting fake registers has also been strengthened, including a fine of up to one million roubles and disqualification of the registrar involved.

Important amendments have also been made to Russian bankruptcy law, according to Maxim Kosarev, who heads Kosarev & Partners law firm, which represents foreign investors in Russia. Earlier, a bankruptcy case initiated by one lender could easily be joined by others, thus putting the debtor in a more difficult position, as all of the plaintiffs had to be paid to stop the case. Now, the claims of each lender are considered in separate bankruptcy cases, making it easier for the defendant to pay his debts to the plaintiff and move on. This means greater stability, as such companies can conduct their affairs without court-appointed trustees, who are authorised to veto transactions. These trustees often act in the interests of hawkish lenders, instead of caring about the company’s business.

With Russia’s arbitration law just taking shape, the asset protection system currently relies, in addition to legal means, on artificial schemes devised by lawyers to complicate the bankruptcy process, Mr. Kosarev said. “My foreign partners could not understand why I suggested having two related companies file lawsuits against each other,” he recalls. The answer was simple: the company had been attacked by raiders and risked losing all its assets. In this situation, lawyers proposed a clever trick: the company sold its assets to a related firm, after which it sued this firm and seized the sold property. Under Russian law, such seizures can only be lifted by parties to the case. In the end, the fake lawsuit saved the company from bankruptcy. Cases of this kind can often drag on for years as friendly seizures do not prevent owners from operating or leasing their assets.

A: In the 1990s and early 2000s, asset takeovers were just as common in Russia and the picture of masked ... Click to expand

Expert:
If you have any suggestions, ideas and projects related to the Innovation Center, please, send them to the following e-mail: idea@renova-group.ru

You can find more info here:

http://www.renova.ru/html_eng/

A: You can find more info here:
http://www.renova.ru/html_eng/ ... Click to expand

Expert:
Christian festival, or Easter, will be celebrated next Sunday, on 4th April 2010. In Russian it is called "Paskha".

A: ... Click to expand

Expert:
Karina Zheguleva

Like some of the old cities of Europe (Paris, Vienna), Moscow has a so-called radial-circle structure, established earlier in its history. The main routes which spread out like rays from the city centre into the surrounding region are linked by three “circles”. The biggest “circle” – the Moscow Ring Road (MRR) – frames Moscow and is the city’s administrative boundary. It is 109 km in length. Actually, in some places Moscow has grown to the point where it extends beyond the MRR.

A little further in is the Third Transport Circle (TTC, 36 km). Closer to the centre of the city the main roads are linked by the Garden Circle (15.6 km).

We could also mention the Boulevard Circle, which links 10 boulevards in the central part of the city. Despite its name, this is not a full circle, since it is restricted by the Moscow River to the south. The deepest “circle”, which links the transport arteries of the megacity, is located underground. This the Metro’s Circle line. It is 19.3 km in length and it roughly follows the route of the Garden Circle.

Moscow’s radial-circle structure dates back to the very founding of the city. Moscow was a major hub for trade and industry, where several major trade routes intersected. Moreover, today’s central circles (the Garden Circle and the Boulevard Circle) are based on the city’s defensive walls that existed at various times in the past.

“The main advantage of the TTC and the MRR is the absence of traffic lights,” says Alexei Yazykov, head of the development department at the VTM-Dorproyekt company. “It’s like travelling on an autobahn. They don’t have controlled pedestrian crossings, and thanks to the multi-level flyovers there are no junctions with other roads. All this allows uninterrupted movement along the whole length of the highway. Inside the Third Transport Circle traffic is allowed to travel at up to 80 km per hour, but on the MRR the speed limit is 100 km per hour. Unfortunately these speed advantages can only be fully experienced in the evening or at night. In the daytime Moscow is at a standstill. This is particularly noticeable at peak times: from 7 to 10 in the morning and from 6 to 9 in the evening. The traffic jams on the ‘circles’ are spontaneous and often unpredictable (with something of the principle of ‘Russian roulette’ about them). You might be able to travel, say, 10 km on one of the Moscow ‘circles’ in 5 minutes. The next day, however, it could take you as much as 2 hours to cover this distance. So you should allow some extra time just in case, and use the traffic jam monitoring systems that are available on the Russian internet.”

Predictable time exists on only one of the Moscow “circles”: you can do the complete journey round the Metro’s Circle line in 30 minutes.

“One characteristic of radial-circle planning (as opposed to the grid system) is that in some parts of the city there is no alternative to travelling on the surface ‘circles’,” warns Alexei Yazykov. “For example, there is the Rizhsky overpass section of the TTC, which passes over the Rizhsky station, which is a major railway hub, and links the Sokolniki district with the Prospekt Mira highway. In other words, when a traffic jam builds up, there is simply nowhere drivers can go: there’s a railway beneath them and not a single alternative road. If you decide in advance to avoid the jam, you’ll have to take a detour which is 3 to 4 times longer than the sector in question.”

Yet another circle – the Fourth Circle – and also a second underground Metro circle are to be built by 2025 to ease the traffic in Moscow.

A: Like some of the old cities of Europe (Paris, Vienna), Moscow has a so-called radial-circle structure, established earlier in ... Click to expand

Expert:
Karina Zheguleva, Russia Now:

In Russia’s greatest megacity, Moscow, it is possible to drink water from the tap. This is the authoritative statement made by Mosvodokanal, the state body that monitors the drinking water here. “In any country the drinking water that comes through the water distribution system to the consumer undergoes monitoring in relation to three normative indices: microbiological (the absence of bacteria, viruses and parasites), chemical (saline strength, absence of radiation, etc) and organoleptic (colour, taste, smell),” says Olga Blagova, chief specialist in the chief technologist’s department of the Moscow state unitary enterprise “Mosvodokanal”, which manages the city’s water supply. “Moscow’s water scores highly against these indices: our water is of high quality and has a good taste, and by some criteria it is even better than that of western countries. Moscow’s water has a low percentage of heavy metals – for example, our norm for cadmium is 1 microgram per litre, as distinct from foreign countries, where cadmium is allowed to be present at a rate of 5 micrograms per litre. Another example: in every megacity in the world water is disinfected with chlorine. The chlorine is not harmful in itself, and there are standards for the by-products which appear in water during chlorination. One such by-product is chloroform. Russia’s norm for chloroform content is one of the world’s lowest, at 60 micrograms per litre. For comparison, in Britain it is 100 micrograms per litre, the overall European norm according to the EU directive is 100 micrograms per litre, and the World Health Organization regards as much as 200 micrograms per litre as the norm.”

“There is a unique megacity in Russia, where the generally accepted practice of chlorinating water with liquid chlorine has been rejected, and that is Saint Petersburg,” says Ella Kutova, chief editor of the news and analysis internet publication Aqua Expert. “All the drinking water here is disinfected with ultraviolet radiation and ozonation. Sodium hypochlorite is used for disinfecting the water, instead of liquid chlorine, which can be dangerous to use. Many regions in our country are trying to learn from Petersburg’s experience. Nowadays it is possible to drink mains water without first boiling it in the majority of major cities in our country. However, even in Saint Petersburg, which is so fortunate in the quality of its water, a higher level of iron content is evident in the water in old blocks of flats. This occurs because the pipes that bring the water to the flats are worn out. The same situation is observed in the centre of Moscow, and in any other city where it is many years since mains water became an accessible benefit of civilisation. Residents of old blocks of flats are recommended to filter their water.” Mosvodokanal, however, takes an extremely guarded view of filters. “It has become fashionable now to install filters in flats and offices when there is no need,” says concerned Olga Blagova. “The filter manufacturers do not give any precise, professional technical information about what the filter is removing from the water or how often the cartridge must be changed. They all write something like this: it purifies water of heavy metals (but there aren’t any in Moscow’s water) and infectious organisms (but it doesn’t contain them either). However, germs can easily appear and multiply in the filter itself, for example if they use activated carbon. People also install filters to soften the water. Why? For the sake of their kitchen equipment? Moscow’s water is of average hardness, and all this filter does is remove the salt from your water, that is, it takes out the useful calcium and magnesium salts. Drinking demineralised water is actually dangerous for your health. The ultrafiltration, ion-exchange, nano and reverse osmosis filters that are currently fashionable are not necessary for Moscow’s water.” If you have doubts about the quality of water in your tap, you can always have it examined in special laboratories, which can be found in large numbers in major cities. Only after you’ve done that you need to think about whether you need a filter.

Installing drinking water coolers in flats and offices is also bowing to fashion. “In principle, I see no great difference in quality between mains water in the capital and the water in the majority of marks of recyclable (multi-use) cooler bottles,” says Ella Kutova. “The main drawback to cooler water both in Russia and abroad is badly cleaned recyclable bottles. Cooler water can be safe if two conditions are observed: only use water in non-recyclable (single use) bottles, and carry out regular disinfection maintenance of the cooler itself.”

We’ve dealt with water, but as far as the air in the buildings in our megacities is concerned, experts reckon that it is much dirtier than the air on the street. Why is this, and what can we do?

“The air in our buildings is literally ‘loaded’ with the water vapour, carbon dioxide and other elements which are released in the course of human activity. You can add to these formaldehyde, styrene, toluene, lead and other harmful substances given off by office or home furniture, wallpaper and equipment,” explains Jérome Antoine Bonhomme, Director of Aereco’s non-commercial representative office in the Russian Federation. “In Russia there is effectively no monitoring of the concentration of harmful substances in the air in buildings, unlike, for example, Japan, where all these ‘VOC’ (volatile organic components) emissions are studied in detail so that norms can be established. The principle that operates in Russia’s megacities is ‘You’ll have to fend for yourself.’ How can we do that? The air conditioners that are so popular do not provide a systematic solution to the problem, because they do not improve the quality of the air or reduce its toxicity, but simply alter its temperature. Moreover, if they are not correctly installed and operated, using them can sometimes entail a risk of illness, for example ‘Legionnaires’ disease’. Rooms are unfortunately only occasionally ventilated, and moreover when you open a window you lose soundproofing. I regard systematic ventilation as the most effective means of improving the air in the buildings of a megacity. It ensures the required level of air renewal, removing toxic air from the buildings and bringing in a fresh flow of oxygen-rich air. Modern mechanical ventilation devices are much easier to fit to windows and roller shutters in flats and offices than air conditioners, they work silently, and they cost from 1,500 roubles (US$50). Extractor ventilating devices can also be fitted to air ducts without difficulty, and depending on their ‘insides’ they can cost in the order of 3,000 roubles (US$100).” These devices are easy to operate, and only need to have the dust wiped off them with a damp cloth.

Incidentally, dust in buildings is one of the main enemies of those who live there. “The main thing is that toxic substances such as phenol and formaldehyde, allergens and pathogenic micro-organisms accumulate on dust, so it is simply essential to remove it systematically,” says Sergei Krivozertsev, an expert with the EcoStandard company. “Excessive dryness in the air promotes the formation of dust, so it is useful to get a humidifier. Air humidity should be about 50–60%. Apart from humidifiers there are many devices that help to improve the quality of air in buildings (purifiers, ionisers, etc), but you have to approach the question of which one you choose carefully, and not just get anything. If the air in the building is not dry but on the contrary is too humid, it may contain mould fungi spores, which are one of the most powerful allergens. In this case you will have to get an air cleaner with an ultraviolet filter. If you experience discomfort after a prolonged stay in a building, try getting the air analysed so that you can select the appropriate corrective devices.”

Residents in megacities run up against another unpleasant factor – electromagnetic radiation. Its sources are power cables, switchboard rooms and also power stations. How can the effect of the radiation be reduced? “When choosing a place to live, pay attention to where the power transformer in your apartment block is located, and choose a flat as far from it as possible: apart from harmful electromagnetic radiation, which you cannot feel, you will be constantly disturbed by its noise. In new building projects the transformers are located in a separate room in the middle of the block, while in blocks from the Stalin period one of the ground-floor flats is converted into a transformer room. Also find out where the switch panel in your flat is located, and under no circumstances have the head of a bed or a children’s room next to it (within three metres). Another source of electromagnetic radiation is power cables. Look at the outside of your building – the cables should not be next to your windows. They usually run between the ground floor and first floor, so try to avoid living next to them,” recommends Sergei Krivozertsev.

A: In Russia’s greatest megacity, Moscow, it is possible to drink water from the tap. This is the authoritative statement ... Click to expand

Expert:
Karina Zheguleva

“The entire procedure for opening a representative office of a foreign legal entity in Russia can be divided into two stages,” says Ksenia Kononova, a lawyer with Padva&Epshtein Legal Bureau. “The first stage is to create a representative office in Russia. The second stage is to legitimise its activities, ensuring recognition from the relevant authorities. The first stage is governed by your country’s national laws and foundation documents, including the resolution to open a representative office in Russia, regulations defining the procedure and conditions for its activities, the election of governing bodies of the representative office and a definition of their powers. All this information is required for registering with the Russian tax authorities.

The second stage (legitimisation of the representative office) is governed by the regulations and legislation of the Russian Federation. Let us take a closer look now.

The key business of the second stage is to register a foreign entity with a tax agency in the area where the representative office is located. If your company plans to do business in Russia through its representative office for more than 30 calendar days in a year (continuously or in total), it has to receive an individual taxpayer number and a tax registration reason code (KPP). The following documents must be submitted to a local tax agency:

- application for registration;

- legalised extract from a commercial register or a certificate of incorporation, or any other similar document with information about the body which registered the foreign entity, its registration number, date and place of registration. Entities that do not require special registration (entry into a trade register etc.) shall submit legalised copies of their foundation documents or other documents containing information about their right to conduct business activities;

- a certificate from a national tax agency in a country where such company is registered, in free form, about the registration of such entity as a taxpayer in its country, including the taxpayer code (or a similar code);

- a resolution by an authorised body of a foreign entity to open a representative office in the Russian Federation, or, in the absence of such resolution, the copy of a contract authorising its activities in the Russian Federation;

- a power of attorney issued by a foreign entity to the head (manager) of the representative office.

Documents made in a foreign language shall be submitted together with notarised Russian translations.

The period of tax registration shall not exceed 30 days from the date on which the representative office began operations in Russia. Registration shall be carried out within 5 business days following submission of all required documents. The registration procedure ends with the issue of a Certificate according to the established form and specifying the taxpayer code (INN) and the tax registration reason code (KPP).”

There are certain aspects in terms of tax registration that you should be aware of. For example, if you plan to open several representative offices in different areas, you have to register with each tax authority in the respective areas where each representative office is located. The same refers to tax registration for real estate and transport vehicles (including those classified as real estate).

Once you registered your representative office, you have to register with state non-budgetary funds as the payers of compulsory social insurance premiums. After that you can open a settlement account in a bank and start operations.

What are potential problems? “Customers apply for our help in the registration of representative offices mostly because of bureaucratic difficulties, such as technical errors made by tax officials, which take long to rectify, or unjustified refusals to carry out tax registration in the absence of grounds specified by the legislation, and other cases,” explains Kononova. “You can avoid such difficulties with your registration if you have qualified and full legal support of respective entities specialising in the field.”

“The registration of a representative office of a foreign entity in Russia is a troublesome and lengthy procedure, which can take several weeks to several months,” confirms Jérome Antoine Bonhomme, Director of Aereco’s non-commercial representative office in Russia: “We used the services of the Russian Chamber of Commerce and Industry, which saved us a lot of time and frayed nerves. In fact, the Chamber of Commerce and Industry acted as our agent in this procedure. All we had to do was to provide the required documents, and the rest was done by the Chamber independently and in a timely fashion.”

A: “The entire procedure for opening a representative office of a foreign legal entity in Russia can be divided into ... Click to expand

Expert:
Karina Zheguleva, Russia Now:

If you decide to start a business in Russia, you have to register. “If you are serious about opening a business in Russia, you first have to decide whether you will act as an individual entrepreneur or a legal entity,” explains Alexander Slivko, Chairman of the Group “Your Partner in Law.” «Business registration is regulated by federal law, and businesses should be registered with the tax authorities in the same area where your office will be located (for legal entities) or where your residence is registered if you are a foreign national (for individual entrepreneurs).”

“Even if a person is already registered as an individual entrepreneur in his or her native country, it is necessary to register in Russia, too,” adds Andrei Shubin, head of the Center for the Assessment and Analysis of Business Problems with the OPORA RUSSIA non-profit business group. “If you already registered as a legal entity abroad and want to open a representative office in Russia, you have to submit an additional document – an extract from the register of foreign legal entities in the country of origin (or any other similar document confirming the legal status of your company). To open a representative office in Russia, a foreign legal entity needs a special permit from the Chamber of Trade and Industry of the Russian Federation. Registration is done by the State Registration Chamber.”

Let us go into further detail and compare the status of a legal entity with that of an individual entrepreneur. If you are a for-profit organization, you should be familiar with the forms of incorporation under Russian law. These include the ZAO (closed joint-stock company), OAO (open joint stock company), and OOO (limited liability company), to most common types of companies.

“In Russia, the most popular form of incorporation is a limited liability company (Russian acronym is OOO): the creation of a limited liability company does not necessarily lead to a securities issue, and such companies are easier to manage, which differentiates them from joint stock companies,” says Alexander Slivko. “This form of incorporation is most popular with small and mid-sized businesses. It is similar to the LLC in the US, the PLC in Britain, and the GmbH in Germany.”

“In Denmark, it is Anpurtsselskab (ApS),” continues Olga Sidorova, senior lawyer at law firm Padva & Epshtein. “The principal difference between an individual entrepreneur and an OOO is the level of financial liability. A shareholder in an OOO also bears the risk of business losses, but liability is limited by the value of the share in the company. Given that the minimum value of the authorised capital for OOOs is set at 10,000 roubles (340 US dollars), the maximum liability of an OOO shareholder (for example, if he/she is the only shareholder) will not rise above this amount. As for individual entrepreneurs, their liability often extends to the value of all their personal assets, which makes this form of entrepreneurship much riskier.”

You should also be aware that you may choose the name for a legal entity to be registered, but if you are an individual entrepreneur, you can only register using your own name.

However, if you don’t fear the legal risk potentially resulting from errors on the part of your employees, or if you don’t expect daily cash operations, you can register as an individual entrepreneur. This type of structure has the advantage that it is much easier to close. “A foreigner operating in Russia as an individual entrepreneur or a legal entity can hope for state support offered to small businesses,” Andrei Shubin noted. “Such support includes grants, subsidised loans, information and consultative support etc. You can get further details from the Federal Law “On the development of small and mid-sized businesses in the Russian Federation”, as well as the Federal Programme for the Support of Small and Mid-Sized Businesses.

What other guarantees and help with project implementation are available for foreign businesspeople operating in Russia? “Russia is a member of the Multilateral Investment Guarantee Agency (MIGA),” says Olga Sidorova. “The flow of foreign investment is beneficial for our country, and it is regulated at the international level. On the national level, there is the law “On foreign investment in the Russian Federation”, which offers a broad range of guarantees for foreign investors, such as the right to transfer business profits abroad (upon payment of taxes), customs benefits, protection against unfavourable changes in Russian legislation, guarantees of ownership of real estate purchased in Russia, the right to recover damages caused by illegal actions of Russian government agencies, etc.”

What kind of business can be done in Russia? Our experts recommend service sector businesses, preferably those not subject to licensing, such as consulting, auditing, legal services, IT services, and software development. If you choose to open a business that requires licensing, bear in mind that getting a license could take a lot of time and effort.

What documents are needed for business registration? To register as an individual entrepreneur, you need an application for state registration; a copy of your ID; a copy of your birth certificate; a copy of a document confirming your right to reside in Russia temporarily or permanently; a document confirming your residential address; and a receipt for payment of the registration fee (400 roubles, or 15 US dollars).

The same documents are needed to register an OOO, plus a resolution to create an OOO, foundation documents (Articles of Association and a Memorandum of Association if there are two or more founders), and a receipt for payment of registration fees (currently 2,000 roubles, or 70 US dollars).

A: If you decide to start a business in Russia, you have to register. “If you are serious about opening ... Click to expand

Expert:
Karina Zheguleva, Russia Now:

The most vivid idea of the sweep and exuberance of Russian merry-making is probably conveyed by Maslenitsa (roughly equivalent to Shrovetide) at the end of winter. Maslenitsa (sometimes called Pancake Week) is an old Slavic feast to see winter out and welcome the long-awaited spring. “The rituals during Maslenitsa are supposed to hasten the arrival of warm weather while ensuring a good crop and prosperity,” says Grigory Antyufeyev, chairman of the Moscow City Tourism Committee.

Just like the European carnival, Maslenitsa is celebrated in the last week before Lent (in 2010 that falls from February 8 till 14). The feast also has a second religious meaning – purification after a bout of merry-making. The main symbol of Maslenitsa is a round, hot, nicely browned pancake that represents the sun. According to legend, eating a pancake imparts some of the power and warmth of the sun. All the rituals and games that take place during the festive week are imbued with mystical symbolism. “Many of the customs are in one way or another connected with procreation (family and marriage), soil fertility (customs connected with farming), i.e. with the natural elements, that is why the holiday is so emotionally charged,” says Olga Klyuchnikova, managing secretary of the Russian Folklore Union. The traditional entertainment during Maslenitsa is sledging downhill, riding in a sleigh festooned with bells, singing, square dancing, masquerading, fistfights, storming snow fortresses, fairground attractions (tug-of-war, pole-climbing, attractions, etc) and of course eating pancakes. Pancakes are eaten with a dizzying variety of goodies: caviar, fish, sour cream, honey and lots of other delicacies as well.

Street parties are held throughout Russia. In Moscow alone more than 200 parties are held in various parts of the city, including the Izmailovo Kremlin, the National Exhibition Centre, Sokolniki, Kolomenskoye and Tsaritsyno parks, and Gorky Park. The centre of festivities is Vasilyevsky Spusk in Red Square. The festivities there last throughout the week. The place will be lined with rows of cafes serving pancakes, tea, mead, souvenir stalls and numerous attractions. You will see colourful and incredibly spirited performances by folklore groups, which play out magical original rituals accompanied by songs, dancing, bells and folk instruments. These parties make you want to dance, and we guarantee that you will be among the dancers. Children get a large share of attention during the holiday: special treats and souvenirs are prepared for them, and games and contests are staged in which everyone can take part, one does not even have to know Russian. Most amusements are introduced by folklore characters.

If you want “a shot of adrenaline” visit the Izmailovo Kremlin on 13February where the Russian Folklore Union will stage a fistfight. “This is a serious pastime for real men. The young men taking part in these events warm up throughout the day, vying with each other in agility and strength. They try to knock each other down with heavy bags sitting astride a log; have duels between piggyback pairs and wrestle. In the meantime, the women sing special songs reserved for fistfights. The climax of the event is when two opposing teams standing shoulder to shoulder clash,” says Olga Klyuchnikova. “Before the battle, the opponents tease each other with taunts and mockery until the “ataman” gives the command and the battle begins. The aim is to break the opponent’s chain of fighters. In terms of emotion, the spectacle makes the Spanish corrida pale in comparison with its spontaneity (though following strict safety rules). Powerful, involving a lot of participants and singing women, the show is imbued with a sense of unity that ends in everybody fraternising. The opponents hug each other, and pass around a vessel with a beer-like drink preparing for the final day of Maslenitsa, “Forgiveness Sunday”.

On that day a procession will march through the centre of Moscow with a band, women drummers, clowns on stilts, circus people and acrobats, people in fancy dress, and representatives of carnivals and folklore groups,” says Grigory Antyufeyev. “The theatrical performance will symbolise cleansing after some hard merry-making. A person enters the New Year with new strength and clean thoughts (until the next Maslenitsa). By tradition, on the last day fireworks are staged and an effigy, a huge doll stuffed with straw and rags, is burnt. The festival ends with a rousing concert. At the very end, luminescent spheres symbolising the start of Lent are released into the Moscow sky to the ringing of bells.”

A: The most vivid idea of the sweep and exuberance of Russian merry-making is probably conveyed by Maslenitsa (roughly equivalent ... Click to expand

Expert:
Olga Senina, Russia Now:

Don’t be afraid of the cold. You are not going to Chukotka or Yakutia where temperatures drop to -50 degrees centigrade in winter. Cold snaps when the temperature drops to -20 or even -30 are possible in Moscow, but they don’t last. The average temperature is seldom below minus 5-10 degrees.

Get some warm clothes and enjoy walks in snow-covered lanes, throwing snowballs or sledging down an icy hill. You don’t have to leave the city to enjoy all this: every year both grown-ups and children alike slide down the slopes under the Kremlin walls in the Aleksandrovsky Gardens. A visit to the Kremlin is sure to be as interesting for kids as for their parents, says Tatyana Ignatova, a nanny with 10 years experience. After the visit, I guarantee that your kids will spend the next week playing at the Tsar Cannon and acting out scenes of royal life in the Golden Palace.

You will be in Moscow shortly before the New Year, which is a more popular holiday in Russia than Christmas. Russia’s version of Santa Claus is Father Frost. He brings children gifts, although he does not put them in stockings by the mantelpiece. He leaves them under a decorated Christmas tree. Theatrical New Year shows in front of Christmas trees are usually held from 25 December through 10 January. The main Christmas Tree Party is held at the Kremlin. This event is not to be missed if your children have a smattering of Russian. If you think that a fairy tale in a strange language would be boring for your kids, in spite of the colourful costumes and music, try Kuzminky Park, which is the Moscow residence of Father Frost. He stays there when he comes for the New Year party from his permanent residence, which is at Veliky Ustyug.

Another permanent fixture of a Moscow New Year celebration is The Nutcracker ballet at the Bolshoi Theatre, a beautiful tale for children and adults. It is certainly worth seeing. The only potential problem is that if you choose to take your three-year old to this ballet, you should remember that it runs for 2 hours and 15 minutes, with a break. If your child cannot sit still for such a long time, he may get bored. Perhaps having one parent take the elder kid to see the ballet is a better idea. The same advice holds for the visit to the Natalya Sats Children’s Theatre, which is recommended for children aged 7 and up. In contrast, the animal theatre called Grandpa Durov’s Corner will be enjoyed by anyone from the age of 18 months. Knowledge of Russian is not necessary, and performing animals in colourful costumes make for an exciting show. The same of course is true of the Circus: choose a programme in advance. Lovers of cats should visit Yuri Kuklachev’s Cat Theatre, which won the World’s Most Original Theatre Cup in Paris. Don’t forget the Moscow Zoo, which is worth visiting even in winter. Don’t miss the Exotarium, where rare and endangered species of sea fish and animals are on display.

If you prefer watching animals in a natural setting, take a trip to Vorobyovy Gory. Children will have a chance to feed white swans at the Andreyev Ponds. If the birds are hungry, they will stick their heads in your pockets searching for food: don’t make them do that, don’t be stingy. At the Losiny Ostrov Park, the game preserve of the Russian tsars, you can see spotted boar and deer, have tea from a samovar and ride on horseback. There are also three interactive areas where you can stroke elks and feed them carrots, make the acquaintance of some bears who have appeared in children’s films, and listen to birds singing.

A: Don’t be afraid of the cold. You are not going to Chukotka or Yakutia where temperatures drop to -50 ... Click to expand