russia india report

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A virtual guide can fix your world A story about a succesful software developer P.08 Home of global elite Vladimir Filippov, rec- tor of PFUR, is upbeat about attracting Indian youth Kudankulam is safe. Don't worry The first unit of nuclear plant to start by 2011-end P.02 Distributed with BANGALORE MUMBAI NEW DELHI WEDNESDAY, SEPTEMBER 28, 2011 A Report from The Tmes of India. In association with Rossiyskaya Gazeta Russia India REPORT ...Marching towards a common future 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 head- ing the ruling coalition and boasts of many women minis- ters and chief ministers, the only Russian female politician in the national arena isValen- tina Matvienko, former gover- nor of St Petersburg, who was elected recently as the Speak- er of the Federation Council (the upper house of parlia- ment). Making it in a man's world 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. 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 “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 down- town Kazan, Nikiforov is ex- uberant about his eGov pro- gramme, which allows access to 25 types of government ser- vices, including paying taxes, scheduling weddings and ob- VERONIKA DORMAN RIR Ben Aris BUSINESS NEW EUROPE Region Blending IT and modernisation Politics It's still a long journey, but Matvienko's rise shows the way CONTINUED ON PAGE 4 CONTINUED ON PAGE 3 READ MORE ON PAGES 2 taining a passport via the In- ternet.“We lose hundreds of millions of man hours a year on bureaucracy,”said Nikifo- rov. In June, users of the eGov programme completed a mil- lion 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 of- fered the contract for develop- ing eGov to pricey foreign software engineers, but chose locals instead,” says Nikiforov. “80% of the system was devel- oped right here, and now all these companies are market- ing their products in other parts of Russia.” in The Economic Times Every second Wednesday BUSINESS REPORT October 12 www.indrus.in Valentina Matvienko, former governor of St. Petersburg and newly-elected speaker of Rus- sia's upper house of parliament, addressing a press conference. A scene from 'Bollywood love story.' OLGA PETROVA RIR Russians are savouring a fortnight-long treat of Indian culture that's bringing them closer to the spirit of India. Incredible India casts a spell Friendship Bollywood songs and dance, Tagore, Indian art enthrall Russians Hip and energetic beats of Bollywood music and dance, rhythms of Gujarati folk songs, poetry of Tagore, im- mortal works of Indian art. The fortnight-long festival of India opened in Moscow on September 17 with a power- packed performance of 'Bol- lywood love story,' that blends a medley of traditional Indian dance forms andWestern hip- 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 The rise and rise of BRICS OPINION P.07 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 won- der that is India. Indian Ambassador to Russia Ajai Malhotra hoped that the festival would enjoy height- ened 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 be- come a tradition to be ob- served every year” . EMBASSY OF INDIA NIYAZ KARIM ITAR-TASS FROM PERSONAL ARCHIVES PHOTOXPRESS PHOTOXPRESS

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Page 1: Russia India report

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

Home of global elite Vladimir Filippov, rec-tor of PFUR, is upbeat about attracting Indian youth

Kudankulam is safe. Don't worryThe first unit of nuclear plant to start by 2011-endP.02

Distributed with

BANGALORE ● MUMBAI ● NEw DELhI ● WeDnesDAy, sePTeMBeR 28, 2011

A Report from The Tmes of India. In association with Rossiyskaya Gazeta

RussiaIndia

REPORT

...Marching towards a common future

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 head-ing the ruling coalition and boasts of many women minis-ters and chief ministers, the only Russian female politician in the national arena is Valen-tina Matvienko, former gover-nor of St Petersburg, who was elected recently as the Speak-er of the Federation Council (the upper house of parlia-ment).

Making it in a man's worldTatarstan is setting an example for the rest of Russia by blending entrepreneurship with government support to create technoparks that are transforming people's lives.

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

“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 down-town Kazan, Nikiforov is ex-uberant about his eGov pro-gramme, which allows access to 25 types of government ser-vices, including paying taxes, scheduling weddings and ob-

veRonIKA DoRMAnRIR

Ben ArisBUsINEss NEw EUROPE

Region Blending IT and modernisation Politics It's still a long journey, but Matvienko's rise shows the way

conTInueD on PAGE 4

conTInueD on PAGE 3

ReAD MoRe on PAGEs 2

taining a passport via the In-ternet. “We lose hundreds of millions of man hours a year on bureaucracy,” said Nikifo-rov. In June, users of the eGov programme completed a mil-lion 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 of-fered the contract for develop-ing eGov to pricey foreign software engineers, but chose locals instead,” says Nikiforov. “80% of the system was devel-oped right here, and now all these companies are market-ing their products in other parts of Russia.”

in The Economic Times Every second WednesdayBUSINESS REPORT

October 12

www.indrus.in

valentina Matvienko, former governor of st. Petersburg and newly-elected speaker of Rus-sia's upper house of parliament, addressing a press conference.

A scene from 'Bollywood love story.'

olGA PeTRovARIR

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

Incredible India casts a spell Friendship Bollywood songs and dance, Tagore, Indian art enthrall Russians

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

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

The rise and rise of BRICs

oPInIon

P.07

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 won-der that is India. Indian Ambassador to Russia Ajai Malhotra hoped that the festival would enjoy height-ened 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 be-come a tradition to be ob-served every year”.

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Page 2: Russia India report

bookmarks02 Russia india RepoRtin association with rossiyskaya gazeta, russia tHe times of india wednesday_sePtember 28_2011

rosatom.ru State atomic energy corporation ROSA-TOMroe.ru JSC Rosoboronexport websiteoilandgaseurasia.com Oil and gas industry newscooperation

in briefpharmadr. reddy’s mulling to buy Pahrma factory in russia

defencestealth frigate for indian navy begins sea trials

Dr. Reddy’s Laboratories, which has been operating in Russia since 1992, is set to expand its over-the-counter drugs portfolio and is con-templating purchasing a pro-duction plant from a Russian pharmaceuticals manufactur-er. Another Indian company, Aurobindo Pharma, had an-nounced a joint venture with Diod, a Russian firm, shortly before.

Sea trials of the India Navy's first of the three advanced stealth frigates in the Bal-tic Sea started last week. 'Teg', the frigate of the Proj-ect 11356, also known as Tal-war Class, is first of the three frigates ordered by the Indi-an Navy in 2006 under a $1.5 billion deal with Russia. The two other warships of the same class -- the 'Tarkash'

defencevikramaditya ready for delivery by december 2012

President of United Ship-building Corporation Roman Trotsenko has announced De-cember 2012 to be the com-pletion 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 de-livered to the customer in December 2012.”

Last week, the Indian Navy’s joint staff delegation led by Rear Admiral Nadela Nirad-zhan Kumar, chief of the ship-building and procurement de-partment, undertook a com-prehensive inspection of the work on Vikramaditya aircraft carrier at Sevmash shipyard. Kumar expressed satisfaction with the progress in modernis-ing the aircraft carrier and found the ship to be more than 85% ready. rir

Recently, the Ministry for In-dustry and Trade adopted a special-purpose programme under which the local market share of domestically manufac-tured drugs should reach 50% by 2020. And the Ministry for Health and Social Development has recently banned over-the-counter sales of codeine-con-taining medicines, which will become prescription-only from June 1 next year. rir

(Quiver) and the 'Trikand' (Bow) -- are at various stages of construction at the "Yantar" naval shipyard in Russia's Bal-tic exclave of Kaliningrad. The Teg is expected to be deliv-ered to the Indian Navy in the beginning of 2012 to be fol-lowed by the 'Tarkash' in the same year and the "Trikand" in 2013, according to 'Yantar' shipbuilder. itar-tass

'hot testing' sets the stage for launching kudankulam i

Amid growing concerns in Tamil Nadu about the safety of two nuclear reactors being built by Russia, the hot test-ing was done on the first unit of Kudankulam with techni-cal support of Atomstroyex-port, a Russian company en-trusted with carrying out phase 1 of the plant. At the IAEA General Conference held in Vienna recently, Sergei Kiriyenko, head of Rosatom, the Russian atomic corpora-tion, 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, Kiri-yenko discussed the results of hot testing with Dr. Srikumar Banerjee, secretary of the De-partment of Atomic Energy, and officials of the NPCIL who attended the conference. “Hot testing is the key opera-tion at the adjustment proce-dure stage. It is used to test the operating capability and de-sign specification compliance

of the reactor unit equipment and safety systems, as well as auxiliary engineering sys-tems,” say Atomstroyexport officials. At the same time, the plant’s operation team learns to control the systems and equipment under normal op-erating 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 criti-cality. “In connection with the events at the Japanese Fuku-shima 1 power plant, the NPCIL has performed addi-tional studies of the Kudanku-lam phase 1 design to ensure it conforms to the safety require-ments,” a source within the Russian delegation to the IAEA conference told RIR.

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 distin-guished by an abundance of instrumentation systems in the power generating units, al-lowing the plant’s personnel to mount a pre-emptive response at the first sign of trouble, be-fore abnormalities develop in equipment operation but symptoms of maladjustment might appear.Another fundamental feature of the design is the combina-tion of active safety systems with new technical solutions based on passive protection principles. Such measures, al-ready 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, manu-facturing and operating pre-vious-generation atomic power plants with WWER re-actors. Kiriyenko said that the plant is located in a possible tsuna-mi zone and must meet special requirements. Due consider-ation was also given to the unique features of the tropical ocean environment.

the kudankulam project takes into account every peculiarity of the region and is absolutely safe, says atomstroyexport.

'We like Indians' outlook towards life' 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 In-dian sage-poet Rabindranath Tagore will be the highlight of the event. The Jawaharlal Nehru Cultural Centre of the

Celebrating the India-Russia friendship down the ages, the lobbies in the Russian Acade-my 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-

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

Website of the Embassy of the Russian Federation in India

www.rusembassy.inSubscribe to our freemonthly e-paperwww.indrus.in/subscribe

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-

alexandr yemelyanenkovRiR

russia's atomic chief is confident that the first unit at kudankulam will be started by year-end and assures highest safety standards.

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

a short list of safety solutions

1. Dual containment and pro-tective shieldings.2. System for passive heat re-moval from the reactor vessel.3. Reactor core meltdown trap.4. Passive system for fast high-pressure boron injection.5. Additional vessels ensuring prolonged passive feed of bo-rated water into the reactor.6. Closed technical water in-take structure – essentially a breakwat.

“Atomstroy made some con-cessions and shared exhaus-tive information on the safety principles for the AES 92 proj-ect (Nuclear Power Plant 92 project). It is fully compliant with the requirements of pres-ent-day regulatory documents

continued from Page 1

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03bookmarks Russia india RepoRt

in association with rossiyskaya gazeta, russia tHe times of india wednesday_sePtember 28_2011 Politics

en.rian.ru RIA Novosti news agency themoscowtimes.com Daily English newspaperrussiaprofile.org Provides in-depth analysis on busi-ness, politics and current affairs in Russia

[email protected] www.indrus.in/letters

The smart power of the SCONursultan Nazarbayev

Arrested developmentEugene Ivanov

Find more at

indrus.in

needed: a female President by 2018“She is the only one with real political stature and a vision. She is an extremely experi-enced and effective manager,” says Olga Kryshtanovskaya of the Institute of Sociology at the Russian Academy of Sci-ences. There are currently two types of women in politics: those who have been installed there by a man who wants to look at a pretty doll and those who have got into it by sheer talent. Matvienko falls into the second category. When elections became free and the Soviet quotas were abolished in the early nineties, women disappeared from the political scene. They no longer presented themselves as can-didates, says Kryshtanovska-ya. A patriarchal mentality, now devoid of Communist voluntarism, has become the norm. Today, the social and political system has a traditional view of gender relations, exacer-bated by a growing obsession, at state level, with a potential demographic disaster, and the urgency of making babies to prevent it. It is becoming more difficult to be a working moth-er. Nurseries and pre-schools are diminishing in numbers, while those that remain are not always free. New family

laws tend to push women to-wards staying at home, and a macho mindset only serves to compound the problem. Irina Khakamada, a presiden-tial candidate in 2004 and an iconic female politician in the post-Soviet era, has retired from state affairs with a disil-lusioned view of women’s po-tential in politics. “A woman, regardless of her status or the qualities she possesses, shall always be subjected to mis-trust,” she says. “For 13 years, I spent 70 pc of my time and energy proving I am a politi-cian with equal rights. I only had 30 pc left to actually pass laws,” she told Ekho Moskvy radio station.She is, however, fiercely op-posed to quotas which dis-criminate positively for women, as she feels they do not constitute real progress. “We must reform minds and the environment,” she says. In a political system based more on cronyism than on democ-racy, the charisma and talent of a man are less important than his allegiances to those in power. Women struggle when it comes to making an impres-sion. “Politicians in Russia can be completely uninteresting and yet be leaders,” says Khakamada. “But a woman goes against the current. She must work hard to be noticed.

Svetlana Zhurova. Although she does sit on family, educa-tion, culture, physical educa-tion, and youth committees, she is also Vice-Speaker of the Duma and a member of the Russian Olympic Committee. She says there is a need for her female colleagues to partici-pate more actively in major decisions. “At first, it was said she was yet another sporting minx who would make up the num-bers. But she has proved she has real political skills,” says Kryshtanovskaya. Kryshtanovskaya, a sociolo-gist, 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 presi-dent of the “Otlichnitsy” (“First in the Class”), a new NGO, which has declared its mission to get a woman elect-ed president in 2018. As a trial run, why not support Valentina Matvienko's candi-dacy in 2012? The fight will be inevitably difficult. A recent survey by VCIOM says a quar-ter of Russians believe that there are plenty of women in politics already. In the same breath, it also reveals that Matvienko would lose a presi-dential candidacy contest sim-ply because of her sex.

She must be extraordinary.” Women account for 12 pc of deputies in the Duma. Howev-er, they tend to be relegated to promoting laws on family, ed-ucation, 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 pro-fessionals,” says Kryshtanovs-kaya. Nonetheless, some stand out from the crowd, like the Olym-pic speed skating champion

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

continued from Page 1

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

making it in a man's world

anna redyukhinaRIR

Politicians are sprucing up their online image and fighting off trolls as the election campaign moves to the worldwide web.

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

the Young Russia Movement. “In the nineties, it was fash-ionable to hire PR managers and press secretaries to com-municate with the public,” he says. “In 2011, politicians have to conduct direct communica-tion with voters via the inter-net.” 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-govern-ment specialist, advises clients

and social networking sites are the least regulated areas. The Russian government is working hard to enforce Rus-sian law on the internet, says Ilya Ponomarev, co-chairman of the Information Policy, Communication and Technol-ogy Committee. A bill is ex-pected to be finalised soon.But Gudkov, whose blog is ex-tremely 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.

net-gain: gudkov's blog-or-ganised rally was a success.

Blogosphere turns into a playground for political power elections No PR activity as net-savvy politicians take charge and speak directly to voters on social networks

to monitor closely their online presence and watch out for “trolls”, who create fake pro-files with the aim of discredit-ing public figures. Says Valery Sidorenko, an internet PR consultant: “The blogosphere is one of the favourite play-grounds of ‘black PR’ [negative PR used to discredit a rival] in Russian politics.” Spam tech-nologies such as bots, mailings and fake bloggers were all used in black PR campaigns.LiveJournal is the most popu-lar 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 Rus-sia 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 Presi-dent Dmitry Medvedev, were unreachable.Many observers stress that regulation should be the next step in online politics – blogs

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

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Page 4: Russia India report

bookmarks04 Russia india RepoRtin 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 websiteregion

Pay taxes or set uP weddings, it revolution is here

A piOneeR in cReATing TechnOpARks TO dRive TRAnsfORmATiOn,

RegiOn hAs big plAns: iT villAge OuTside kAzAn, new AiRpORT

tatarstan

IT currently accounts for 3.5% of Tatarstan’s economy, but Nikiforov says the republic is aiming for 7-10%, like its peers in the developed world, by 2016. “The tools we have for these e_SEmD technoparks, venture funds and universi-ties are nothing individually,” says Nikiforov. “They are a part of a single ecosystem we must develop systematical-ly.”Agrees Sergei Yushko, general director of a neighboring technopark called Idea, “We’ve existed for seven years and a day hasn’t gone by that I haven’t felt the complete backing of local authorities.” Idea was founded on the ter-ritory of an abandoned de-fence plant in 2004 with the aim of creating jobs in high-tech sectors of the economy. By providing two key services to local start-ups — cheap rent and sound business ad-vice, the technopark “gradu-ated” enough firms within three years to become self-sustaining; by 2007, its com-panies were paying enough taxes into the local budget to repay the start-up capital. “For the last four years, we’ve been independent of the re-

gional budget, and this is im-portant,” said Yushko. “Our experience proves tech-noparks are a viable model for economic development in Russia,” says he. Yushko explains that most of the companies at Idea provide engineering services, software design or Web design. After three years, graduates of Idea have the option of leaving the technopark altogether by get-

ting bank loans independent-ly to acquire office space, or they can move into its busi-ness park, where rent is no longer subsidized. There, neighbours will include the local R&D branches of inter-national behemoths such as GE, Honeywell and Siemens. “The foreign companies come first and foremost for the qual-ified personnel,” says Yushko. “I’m a believer in the unpopu-lar notion that we don’t need factories in Russia,” says Yush-ko. “Production will be moved to where you have cheap la-

bour, like China. Our advan-tage is people and their ideas.”That’s a key challenge to high-tech companies in Tatarstan. “We want to build an ‘IT vil-lage’ outside Kazan based on the Skolkovo model in Mos-cow,” says Nikiforov, referring to Russia’s equivalent of Sili-con Valley located in a village near the capital. “By our esti-mates, we’ll need to house

20,000 IT specialists there to get this sector of the economy as large as we want it. Tatar-stan currently has 5,000 such specialists. We’ll have to at-tract 15,000 from other re-gions of Russia.”In another part of Kazan, an industrial park called Kh-imgrad became the first such project in Russia to be inter-nationally certified by repre-sentatives of Ernst & Young and Knight Frank. Khimgrad focuses on polymer and chem-ical production and, unlike the technoparks, it plans to

tap underdeveloped raw ma-terials in Tatarstan. “We pro-duce a plethora of polymers in Tatarstan, but these are typi-cally exported and then re-imported with much added value,” says the park’s manag-er, Airat Gizzatullin. “At Kh-imgrad, we’re just focused on modernising the local econo-my and establishing efficient supply chains.”Khimgrad offers fu l ly equipped facilities, business solutions and tax breaks to in-vestors both Russian and for-eign willing to set up produc-tion. “Only a complete ecosystem can structurally change Russia’s economy on the scale that our country’s leadership talks about,” says Nikiforov. “That’s what we’re trying to do in Tatarstan, and we began earlier than other regions.” But a lot of work remains to be done. “When we asked in-vestors five years ago what we needed to do for them to come, they said, ‘Build a new air-port!’ It was a funny response, but carried a lot of truth.” Today, a sign hangs over the shoddy building that services both domestic and interna-tional flights to Kazan: “New terminal to be completed in 4th quarter of 2011.”

in June, users of the egov programme completed a million transactions, marking a four-fold increase.

we want to build an iT village outside kazan based on the skolkovo model, says iT minister nikiforov.

kazan kremlin, the majestic historic citadel of tatarstan, was built on the banks of the volga river in the 16th century.

" To develop the region and become the lead-ers, we should chatter

less and work more.”

the quote

TATARsTAn pResidenT

Rustam minnikhanov

innovation: setting new standardsTatarstan is a pioneer in creat-ing its own innovation system. The law “On Innovative Activi-ties in the Republic of Tatar-stan” passed last year deter-mines the forms and methods for government regulation of innovation processes. This year, the Republic of Tatarstan adopted an Innovation Memo-randum for 2011-2013, which outlines guidelines for this sec-tor. In 2010, the share of inno-vative goods and services in-creased to 18% of GDP, which is 1.5-2 times higher than in

Russia as a whole. Tatarstan has the largest industrial pro-duction special economic zone in Russia, called alabuga. It is a custom-free area that pro-motes the development of business. The gem of Tatar-stan’s burgeoning innovative infrastructure is the khimgrad techno-city, which offers a friendly environment for small and medium-sized private en-terprises. The main areas are petrochemistry and coopera-tion with other innovative in-dustries.

investments and ratingOver the past several years, Tatarstan has had one of the lowest levels of risk among Russia’s regions from the per-spective of foreign investors. The Fitch agency puts Tatar-stan at the third place among

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.

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tida.tatarstan.ru/eng Tatarstan's investment devel-opment agencywww.invest.tatar.ru/en/ Investment portal of the republic of Tatarstan

$35

3.5 %

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

of Tatarstan’s regional econ-omy is based in informa-tion technology. The republic hopes to increase that amount to between 7% and 10% in the next 5 years.

in figures

alexander vostrovrIr

the exhibit at international investors' forum showcased diverse opportunities in tatarstan, which has morphed into one of russia's most successful regions.

Innovation, legal reforms turn region into a magnet for foreign investment

All eyes were on the two-sto-rey exhibit of Tatarstan at the International Investment Forum in the Russian Black Sea resort city of Sochi. Dis-playing a medley of opportu-nities in diverse sectors rang-ing from electronics and auto to retail and IT, Tatarstan was recognised as the most suc-cessful regions at the forum. The man behind the show was Tatarstan’s President Rustam Minnikhanov. A ‘Fifty best in-novation ideas,’ contest was held which helped evolve cri-teria for selecting the most promising and successful business projects.At the 150 metre exhibit, the region’s investment projects were arranged in themed sec-tions: Electronic Tatarstan (showing e-government sys-tems and the Electronic Retail Information System of the Re-public of Tatarstan (ETIS[J1]), a petrochemical cluster, con-struction and transport, agri-culture, IT technology, the Al-abuga SEZ, nanotechnology, and stands for the 2013 Uni-versiade 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 Direc-tor of EVO-RU creative ser-vices, who were in charge of

the exposition lay out. “People have got used to seeing Mos-cow 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 com-puterized 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 Zeleno-dolsk, where the vessel was built. The vessel maintains its stability even if two compart-ments 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 opportuni-ties during the Venture Fair in Kazan, which was aimed at at-tracting investors to the re-gion’s innovative technologi-cal companies and inducing them to invest in science-in-tensive small and medium-sized businesses. The fair was also helpful in paving the way for large-scale negotiations with foreign guests, hosting, as

it did, 62 companies from Can-ada, Britain, the Russian re-publics, regions and cities: Ta-tarstan, Moscow, Novosibirsk and Tomsk, which offered their ideas and business plans to representatives from more than 50 foreign and domestic venture funds. The fair gener-ated $225 million investment

proposals and attracted more than 1500 participants. Tatarstan has also upgraded the legal framework, a key concern for any foreign inves-tor eyeing the Russian market. The law ‘On Investment in the Republic of Tatarstan,” was passed last year. The Innova-tion Memorandum for 2011-2013 has been also signed. These initiatives have bol-

tatarstan: in a nutshellThe republic, whose capital is Kazan, is situated on the East European Plain at the conflu-ence 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 nation-alities live in Tatarstan, Tatars and Russians being the most numerous. The official lan-guages are Tatar and Russian.

stered the republic’s reputa-tion among investors and at-tracted some interesting and economically viable start-up projects. During the Sochi-2011 Forum, Vneshekonom-bank (Bank for Foreign Eco-nomic 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 manufactur-ing cars and commercial vehi-cles. The foreign partner will own a 50% stake and will con-tribute its plant in Vsevolo-zhsk and distribution network in Russia to the authorised capital. In the Elabuga special economic zone, the produc-tion of commercial Ford Tran-sit vehicles and engines will use existing capacities pro-ducing Fiat Ducato vans and a plant with an annual capac-ity for producing 180,000 en-gines will be built from the scratch.

in January 2011, kamaz team became the gold winner of the dakar rally for the tenth time over the past 15 years.

the economy: a hub of oil, auto industries

Trucks, helicopters for IndiaThe region is one of the most economically developed re-publics in Russia. Tatarstan to-day boasts oil production, oil and gas chemistry industries, car-manufacturing and aviation industries, power generation and IT. The oil and gas indus-try is the main source of bud-get revenues. The republic pro-duces 32 million metric tonnes of oil a year (6.5% of the total Russian output). Its proven oil reserves exceed 1 billion met-ric 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 (syn-thetic rubber and polymers) and Kazanorgsintez (the lead-ing producer of polyethylene in Russia, with a market share of more than 40%) are world-class companies. The repub-

lic has a highly developed au-tomotive industry. Tatarstan’s visiting card is the KAMAZ au-to giant, Russia’s biggest mo-tor corporation. KAMAZ is al-ready well known in India due to a JV with the Indian compa-ny Kamaz Vectra Motors Lim-ited. The JV plans to produce 1250 trucks for India in 2012. India also knows famous Rus-sian Mi-17 helicopters. They are produced in the Kazan Heli-copter Plant, the world-famous producer of the Mi-8/Mi-17 family of helicopters. Mi heli-copters account for 17% of the turbo-shaft engine helicopter market. Russia and India re-cently signed a major contract to supply Mi-17 helicopters to India. KAMAZ, together with the Kazan Helicopter Plant, is engaged in the Tupolev in-novative project programme, which includes eco-friendly road vehicles and helicopters.

rustam Minnikhanov focuses on attracting investors to the region's innovative tech companies.

a 145, the “new star” of rus-sian ship-building industry, is umatched in speed, manoeu-vrability, safety and comfort.

chemicals and petrochemicals are major focal points of growth for the growing economy of tatarstan.

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Page 6: Russia India report

bookmarks06 Russia india RepoRtin association with rossiyskaya gazeta, russia tHe times of india wednesday_sePtember 28_2011

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

Euro crisis cEmEnts Brics of a nEw world

manish chandSpeCiALLy FoR RiR

the BRICS’ big moment is finally here. In a dramat-ic reversal of fortunes,

Europe, which had vigorous-ly 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 re-serves, the world’s biggest emerging economies – China, Brazil, India and Russia - may well prove to be Europe's sav-iours. It’s, however, not clear what form this rescue package will take with reports of dif-ferences among BRICS coun-tries about the risks of a sup-port package for PIGS (Portugal, Ireland, Italy, Greece and Spain) countries which have plunged the Euro-pean 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 in-ternational scene.Against this backdrop, finance ministers and central bank governors of the BRICS na-tions met in Washington re-cently and asked the G20 na-tions 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 sover-eign debt crisis of some coun-tries becomes another finan-cial crisis,” warned Brazil's Finance Minister Guido Man-tega. Keeping this in mind, the BRICS ministers called for the World Bank to mobilize more resources to increase their as-sistance to developing coun-tries. 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 specu-lation about the BRICS coun-tries trying for a grand bar-gain with the developed countries in return for the bailout. For example, will India and Brazil demand a

permanent seat in the UN Se-curity Council for rescuing the euro zone? Or will China seek a greater role for itself in Bret-ton 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 in-ternational 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 econom-ic 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 group-ing united by the overarching design to shape a post-crisis economic architecture and a greater say for emerging econ-omies in global decision-mak-ing institutions that has long been the preserve of the triad of the United States, Europe and Japan. The BRIC turned into BRICS when South Afri-ca, 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 inter-national order and the reform of Bretton Woods institutions have been key themes that res-onated through all the three summits held in Yekaterinburg (2009), Brasilia (2010) and

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

meetings of foreign ministers, senior security officials, trade ministers and health minis-ters.When O’Neill coined the term BRIC in 2011, he did not real-ize that the change would hap-pen 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 Moscow-based investment bank Re-naissance Capital, predicts more and more big "south-south" business deals will be struck in developing nations. “The traditional financial cen-ters and Western economic model are losing their pre-em-

inence," Jennings told inves-tors in Moscow in June. "There is a gravitational shift of busi-ness, capital and ideas toward emerging market economies. Fast-growing economies, in-cluding Russia, are becoming the leaders of the new eco-nomic order."The diplomatic pecking order, too, has changed with BRICS being often compared to a par-allel 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 Secu-rity Council as permanent and non-permanent members.“By strengthening the eco-nomic framework of the mul-tipolar world, BRIC countries are objectively contributing to creating conditions for strengthening international security,” says Russian Presi-dent Dmitry Medvedev. When the Copenhangen climate change negotiations were floundering in December 2009, U.S. President Barack Obama went into a huddle with lead-ers of BASIC countries com-prising 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 glob-al financial meltdown.

Manish Chand is Senior Edi-tor with IANS and a New Del-hi-based writer on interna-tional affairs.

all articles appearing on page 6 do not necessarily reflect the opinions and views of the editors of rossiyskaya gazeta and russia india report.

limiting china: fact and fiction

andrei Volodin

SpeCiALLy FoR RiR

uS Secretary of Defence Leon Panetta recently voiced apprehensions

about the ongoing global re-alignment and promised to re-strict the influence of China in the international system, and also that of Russia, Bra-zil and other countries.How can the US prevent the global realignment in the post-American world as the geo-economical and the geopoliti-cal 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 de-fence system, a move that could be seen as a bid to coun-ter China. Enforcing politico-military hegemony with “fu-turistic” types of armament like the global anti-ballistic missile system raises several questions. Wouldn’t such “de-fence initiatives” trigger ac-celerated and large-scale de-velopment of strategic offensive systems, including high-tech ones? Wouldn’t the West receive a response in the form of building up regular-type armaments both by “out-casts” and relatively law-abid-ing countries? What shall one do about the non-prolifera-tion 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 in-ternal opposition, “violating” human rights), but also China (attitude of the state to dissi-dents, “brutal” style of govern-ing Tibet and the Xinjiang Uygur Autonomous Region).It is useless to reproach west-ern partners for double stan-dards. Russia should be guid-ed by the following three principles in its policy in a step-by-step way. Firstly: it should seriously study ideas and practices of political de-mocracy, including the scru-pulous holding of elections at all levels. Secondly, Russia needs to pay more attention to the models of political repre-sentation in countries like India and Brazil, which are

known for impressive experi-ence in democratic gover-nance. 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” de-veloped 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 “grav-itational 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. Inter-nal problems will, therefore, dominate in the development

of China in the foreseeable fu-ture. Secondly, it is doubtful that Beijing is striving for the global hegemony not least be-cause negative examples of Britain and America (and the Soviet Union, according to some Chinese) trying to wield global domination do not in-spire 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 “Drag-on” at its own discretion, and this will be completely sup-ported by Russia.

Andrei Volodin is Senior Re-searcher at the Institute of World Economy and Interna-tional Relations in Moscow.

Russia is ready to support better ties between the great “elephant” and the great “Dragon”.

With over 4 trillion in reserves, BRiCS economies may prove to be europe's potential saviours.

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Page 7: Russia India report

07bookmarks Russia india RepoRt

in association with rossiyskaya gazeta, russia tHe times of india sePtember 28_2011 education

www.rudn.ru/en Peoples’ Friendship University of-ficial websiteen.russia.edu.ru Find answers to many questions about education for foreigners in Russia

daria trosnikovaRiR

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.

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. Rus-sian education guarantees fairly high quality. Different Russian universities have their strong areas.

what are the advantages of en-rolling 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 guaran-teed quality of education, but also a high quality of life. We have a wonderful polyclinic, our own department of police, dozens of cafeterias and res-taurants. Secondly, people must think about their ca-reers. Upon graduating, our students have friends in 50 countries around the world, if

not more. These friendships prove useful outside the uni-versity as well. In time, they become truly prominent fig-ures — 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.

PFur educates the world elite...Here are some specific exam-ples: a graduate of PFUR is now a minister in Canada

where she heads a committee for indigenous people of the North. In Chad, the prime minister from 2008 to 2010 was a PFUR graduate Yous-souf 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.

does PFur have many students from india?Right now, we have fewer In-

dian students than in the past. But even so, PFUR has a sub-stantial Indian chapter, around 60 students. Of course, it is far smaller than our Chi-nese chapter, some 600 stu-dents.

what has changed in the last 20 years? why are there fewer stu-dents 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 stu-dents from 109 countries. Now, it has 5,200 students from 140 countries. Twenty years ago, there were no stu-dents from Europe. We rede-signed the system so as to in-c re a s e t h e n u m b e r o f countries represented at PFUR. As a result, certain chapters have shrunk.

is knowledge of russian re-quired 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 Rus-sian, and want to study in Eng-lish. 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

breeding ground for global eliteinterview vLadimir FiLiPPov

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

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 set-tled in, they begin their stud-ies.

how many foreign languages do you know?Two. English and French. I have two degrees in transla-tion. Incidentally, languages are one of the advantages of PFUR. For example, our Fran-cophone students, who of course know French, are re-quired to study English and may study Russian as well. The current Prime Minister of Ka-zakhstan, PFUR graduate Karim Massimov, knows Ka-zakh, Russian, English, Arabic and Chinese. He speaks them all fluently.

what professions do your indi-an 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 num-ber of countries in Latin America. We educate their fu-ture specialists in the oil and gas industry. Most students from India apply to our Facul-ty 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 devel-oped in India, while Russia gives you the best education in mathematics. Russian stu-dents are still the main win-ners at international Olympi-ads 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 stu-dents 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.

vladimir Filippov

age: 60

civiL status: married, has a son and

daughter

rector of PFur (1993-1998 and since 2005) and an ac-ademician of the russian academy of education. born in 1951, he was russian minis-ter of education from 1998 to 2004. an expert in differen-tial equations and functional analysis, he has modernised education in russia by de-ploying the western model. he is the author of more than 120 published scholarly ar-ticles.

biograPhy

PFur: where leaders and future Pms are bornHome to around 30,000 stu-dents, PFUR is currently No. 4 of Russia’s more than 1,100 universities. Found-ed in 1960, it was renamed Peoples’ Friendship Univer-sity of Russia in 1992. With more than 12,000 students enrolled, PFUR employs over 1,600 professors and instruc-tors, including over 200 doc-tors of science and some 800 candidates of science (Ph.D.s) and more than 60 academi-cians. At PFUR, one can get a degree in one’s chosen ar-ea of expertise as well as in one or two foreign languages and, possibly, a second area of expertise. All PFUR stu-dents (foreign and Russian) get degrees in translation

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

major corporations, business-es, scientific and education-al centers. They have gone on to become prime minis-ters and presidents of coun-tries in Asia, Africa and Latin America.

most students from india apply to our Faculty of medicine, some to engineering.

graduates of other universi-ties, 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 Rus-sian is a big plus in the job market.

how do foreign students apply to PFur?On the PFUR website, appli-cants will find a list of the nec-essary documents that must be sent to us in the regular mail. We review those docu-ments and if the applicant’s grades are on an average not less than 60% of the maxi-mum score, he or she is auto-matically accepted to PFUR. We meet our students at the airport ourselves, around the clock. There is also a special medical center dedicated to

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Page 8: Russia India report

BOOKMARKS08 RUSSIA INDIA REPORTIN ASSOCIATION WITH ROSSIYSKAYA GAZETA, RUSSIA THE TIMES OF INDIA WEDNESDAY_SEPTEMBER 28_2011

www.cortona3d.com The Georgy Pachikov com-pany's profile eng.cnews.ru Find more information about Russian IT industryTechnology

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Born in 1953 in Tbilisi, Geor-gia, Georgy Pachikov studied economic cybernetics in Mos-cow. He opened the first USSR computer club in 1986, with his brother and iconic chess play-er Garry Kasparov. In 1989, the brothers founded ParaGraph, which the US giant Silicon Graphics bought for $57 mil-lion in 1997. His current com-pany, ParallelGraphics, cooper-ates with Siemens PLM, among others. 2010 revenues: $6 mn.

BIOGRAPHY

OCCUPATION: SOFTWARE DEVELOPER

AGE: 58

On Georgy Pachikov’s screen, there appears a large white museum hall. A racecar, a large backhoe on wheels and an air-plane engine are on the plat-forms. 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 ar-moured 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 insert-ed 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 en-thusiastically.Pachikov is the founder and president of ParallelGraphics, a software company, which develops user guides – ani-mated 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 ma-chine change the world? Well, ask the 58-year-old Pachikov. Looking at him sitting in an

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

ALEXEI KNELTSRIR

3D virtual guides will simplify lives...

FIRST PERSON GEORGY PACHIKOVFOUNDER AND CEO,PARALLELGRAPHICS LTD.

Asian café in downtown Mos-cow, 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 broth-er Stepan, both software engi-neers, founded the ParaGraph company. “Back then, we were the � rst in the world to simu-late the everyday on a comput-er, long before Second Life,” Pachikov says proudly. They developed a virtual environ-ment 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 ava-tars behind and limited their activity to chatting – interper-sonal communication was still the most important,” says Pa-chikov. At that point, nobody really

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 res-idence in 1999, his washing machine broke. Together with a colleague, he takes the ma-chine apart, “down to the last screw”. When they reassem-bled the machine again and turned it on, it worked, but there were � ve screws left.“We had no idea where to begin: the user manual was in French and there was no trans-lation. And even though we are both engineers, we were at a complete loss,” recalls Pa-chikov. The washing machine gives the programmer a brilliant idea: “An animated repair manual in 3D that explains each individual step sequen-tially, translated into multiple languages – that would be the saving grace for all techni-cians!”That same year, he founded

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

site direction: a Russian in-vents something and only afterwards worries about what to do with it and where to � nd the market for it.” Pa-chikov, on the other hand, knows which target audience he’s puzzling over. After a two-year development phase, Par-allelGraphics introduces Cor-tona3D, a software programme that converts technical de-scriptions of individual tasks into three-dimensional ani-mation.Pachikov’s first large client was the US aircraft company Boeing, in 2001. “Boeing main-tains a design center in Mos-cow where the boys scan the Russian market for innova-tions and new talent,” he ex-plains. After his presentation, “the boys” offered him an ex-clusive � ve-year contract.The collaboration is very suc-cessful. “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 air-craft, ParallelGraphics creat-ed all the technical documen-tation. And in 2011, Pachikov signed a deal with Siemens. His virtual preparation of

technical products is integrat-ed into the electronics giant’s Team Center programme package.The applications in industry are huge, says Pachikov: “Be-cause 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 dur-ing the development phase.Even beyond business, Cor-tona3D can also be used for training in technical schools. “In the future, every auto me-chanic, every electrician will have the individual steps read-ily 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 click-er, disassembles and reassem-bles it virtually, lets the tur-bines spin. “Imagine a virtual museum where every technical device ever invented by man is col-lected. And you can walk through and operate each one, take it apart and reassemble it.” How does that work!

Cortona3D: When technical illustrations learn to walkCortona3D is a software pro-gramme that automates the development process of tech-nical documentation. Appli-cations are almost limitless: from Foucault's Pendulum to a hydropower station, select-ed technical mechanisms can be simulated. The files can be integrated into the repair and maintenance manual as a vid-eo sequence that shows each task step-by-step.

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