The Saami National museum happened to be closed on Monday, but I was not upset. This museum claimed to be one of the best world museums of Saami history. The one thing I did want to see was the stone with pictographs, allegedly found not long ago, but even still there is no guarantee I missed anything; it may not have even been an authentic piece of Saami Culture. Already, I had enough materials to make accurate conclusions.

Saami ancestors have quite possibly reached more goals than we used to think. They have reached harmony in mutual relations with nature while it is unachievable for us. The nature of the North gave Saami everything they required. Nature dressed them and provided them with food and drink. Saami found happiness in dialogue with nature for their spiritual needs. The Kola Saami lived in harmony with nature. They have been a part of nature. Elderly Saami are less appreciative of the benefits of the modern civilization and are more in tune with the way of life conducted by their ancestors of centuries and even the millennium ago.

The Saami ethnic group never had a written language, never had even a tiny state or any kind of government helping to guard and protect their own people and land. They followed natural needs by hunting wild animals and reindeers, fishing, picking berries, and by living in caves, digging holes and chums. Deerskins were their clothes, and food was everything and anything that could safely be digested. They didn’t need anything. They were happiest people on the Earth, not leaving behind signs of their culture except seyds, several legends and stories, and art of communication with nature. Labyrinths and pictographs are the only real remainders of other civilizations that existed before Saami or were brought by travelers from other part of world. They lived on the edge of civilizations.

The Kola Saami during pagan times idolized animals and birds, stones (seyds), trees, and Earth, but a special place in Saami folklore certainly belonged to a deer-more precisely, a person-deer called Mjandash. This deer Mjandash could voluntarily become a person. One of legends tells of Mjandash’s marriage to a woman named Matryonoj who happened to be a Saami. Another legend is about their children becoming deer and having to leave the tundra following their father.

We also took a tour to my hostess childhood house. Many local houses were relocated in times of centralization to Lovozero. When her family moved to Revdas’ high rising building, she sold this house. Now, somebody occupied the house with the same utilities still in the backyard. It was interesting to compare housing for newcomers and people who lived in this area for thousands years. A modern time and past existed alongside with each other. Housing is still a major problem for Lovozero. Many promises were made and are as of yet still unrealized, and problems did not disappear.

Next, we observed the hotel. It was a nice, homey, warm, small place with rooms awaiting guests, and it had a definite inviting energy. It had an exotic exterior, and the interior was completely different from others I have seen and stayed in before, designed with a folk taste with intention to please tourists. The atmosphere or energy was incredibly warm. It was worth the visit just to see the architecture and interior of this remarkable building. I felt a future tourist industry could be grown up here with improved infrastructure and locals making efforts to learn how to entertainment and please tourists. I thought that now is the time to expand marketing on a national and international level. The right investors from neighboring countries with a similar ethnic background could be found if the right marketing plan can be offered. Everything is possible.

At the end of our travels, we stopped at the local grocery store. It was a small shop located in a corner of one of the five store apartment buildings. On the display were the same products as in a large city, but more of a selection than in Revda. We tried to find a local meal, but all products (including sausage, cheese, and pirogues) were brought in from Murmansk. However, we did find a local bakery baking a very tasty white bread. Later, I found out that local deer meal production plants are working only for export to the Sweden and other countries. Quite like in old Soviet time, this is somewhat of a foolish paradox.

To my surprise, in the daytime of the weekday, many people were wandering on streets. I forgot to mention the high unemployment, not only in the Saami community, but in others as well. More than sixty percent of all eligible working population is now unemployed. Also, alcohol is a great treat for existence of Kola Saami because the bio-system of their bodies in the Pole Arctic is different from those of Westerners.

The Russianism of Kola Saami is almost finished, and it’s only a matter of time before their existence on Kola Peninsula falls into serious question. However, everything is possible, and the miracle of the resurrection of Saami traditions, their way of life, and their language could be possible. History has examples. © Rachel Madorsky

With the advent of online dating these days, it has also become a trend for some Western men to seek wives from other parts of the world, especially those who prefer other cultures. In fact, a lot of Western men are looking for Russian wives, and the internet can be a good medium to help you date Russian women.

Of course, there is a difference between Russian women and the women in the west, if you are wondering what makes them greatly desired by men in the western world as their wives. From the culture, Russian women tend to be a lot more family oriented and home and family are important to them than their careers. Of course, they also take good care about themselves and they make it certain to look their best.

For western men who want to marry women who is fine with staying at home and taking care of the family, they usually find Russian women. These women are known to be love family life However, although many Russian women are willing to do this, it is important to understand that not all of them prefer this, especially with women who have promising careers in Russia.

Despite that, there are a lot of traits that you would love in them, and if you want to date Russian women, here are a few things that might help you build a good relationship with them, even if you start communicating with them online.

– Learn everything you can about Russian women and their traits. Of course, if you want to date women in Russia, you also have to make sure you have a background knowledge about them. This will help you understand them better and of course, their culture as well. Cultural differences is one of the things that you have to keep in mind dating and marrying women from cultures as giving respect to their culture is very important for them as well.

– Respect is of course a universal language. Even if you communicate online, it is important to always keep in mind to show them respect and treat them like any other woman would like to be treated.

– Start online. Online dating is where you can meet a lot of Russian women to be your wife. It will also be a lot easier than directly going to Russia and finding your luck there. However, it is important as well to think about safety when you do online dating. There are also unscrupulous individuals online who take advantage of others online, so make sure you are in a secured dating website and be cautious as well in dealing with other people online especially when it comes to giving money to the other party.

– Be sure to meet the woman. One thing that you can do is to meet her in Russia and not bring her to your country especially if it is your first meeting. Visiting her in her place would help you check out her real situation and would help you meet the real woman you are talking online.

Western men do not have to visit Russia to meet beautiful Russian women. There are lovely, intelligent, and exciting Russian women online right now in Russian chat rooms waiting to meet men from the West. Today’s technology allows men and women to meet, develop a relationship, and even propose online. Isn’t it time you learned more about this unique approach to dating?

Getting Started

The first step is the hardest, say experienced chat room users. Once you introduce yourself to a Russian lady online you will get over your ‘nervousness’ and begin to enjoy the process. Begin by taking that first step – introduce yourself to several women in Russian chat rooms in English. This is the start in finding your perfect match.

Developing a Relationship

As you get to know the Russian women you have contacted a real relationship will normally begin to develop with one of the ladies. This is the one you want to focus on and you must gently tell the other women goodbye.

Now it is time to focus on ‘the one’. You will spend time every day sending each other e-messages and having conversations in Russian chat rooms. These conversations are your best time to get to know the lady. Take full advantage of the opportunity before you.

Chatting is the perfect time to share your interests, your occupation, your family, your likes, and your dislikes. It is a wonderful way to learn about the person you chatting with in Russia. Remember, as the relationship develops you will both be experiencing new and unusual customs – East meets West – and Russian chat rooms in English can prepare you for them and explain Western traditions to Russian ladies.

Dating During the Christmas Season

With the holiday season arriving it is the perfect time to develop relationships in Russian chat rooms. Romance is in the air in Russia this time of the year. For many years during the Soviet regime Russians did not celebrate Christmas. Now they celebrate with verve.

Western Christmas is celebrated on December 25 while Russian Christmas is celebrated around January 7. This opens the door for extensive conversations and makes this time of the year one of the easiest to meet Russian women online.

Russian ladies are steeped in heritage and tradition. Conversations can center around what the holidays mean to them and how they are celebrated in their home. This will easily allow you to tell how the holiday is celebrated in the West.

Keep in Mind

When beginning a cyber-relationship with a Russian woman remember to be open and honest. Also, remember the differences in cultures can lead to confusion. Do not write anything in a chat box that might be taken the wrong way. It is a great idea if both the man and the woman are talking at the same time so they can clear up any misunderstandings.

As with any other internet communications, once you put something out there it stays out there for good. Be polite and respectful and enjoy the beginnings of beautiful relationship.

Nowadays it is trendy to compare doing business with military strategy: from Sun Tzu to Klausewitz, the book world has lately seen a wave of titles dedicated to the works and teachings of talented military men of the past. While I don’t think that doing business in Russia is exactly akin to a battle, there are still some lessons a foreign investor can pull from Russian military strategy to better understand his/her partners and find success in his ventures on Russian soil.

In Russian military history there are two men, who stand out for their successful strategies. They are Generalissimo Alexander Suvorov, who miraculously saved his troops by leading them through a snowy Alpine pass in late 18th century, and field marshal Mikhail Kutuzov, who saved Russia from Napoleon by most controversial means. While both men were talented Russian generals of their time, the two used information differently and followed very different strategies.

Suvorov is known for his surprise attacks and refusal to allow his troops to retreat. Feeble and fragile from birth, he trained his body and mind by hardships of the soldier’s life. He became known for his spirit, strong will and comprehensive knowledge of military science. However, Suvorov left conventional knowledge in the dust by again and again breaking all the rules – and winning. He fought on behalf of Catherine the Great, beating the Turkish Army in the Russo-Turkish wars and winning against the Prussian army.

In 1799, Suvorov was called out of retirement by Emperor Paul I to lead the Russian and Austrian armies in coming to the aid of Italy when French troops invaded. When he found himself in an Alpine valley surrounded by enemy troops on all sides, he did not do the expected and surrender in proper fashion. Rather, he turned on his heels and led his small contingent of men up through a snowy and treacherous mountain pass, complete with their cannons, horses and armaments. Not only did he save his embattled army, but he was also able to inflict serious blows to the French troops attacking them from above. Upon his descent from the Alps, Italians proclaimed him their new hero.

Suvorov put his principles on paper in his book, “The Science of Winning,” among them:

“To surprise is to win.”

“Fire rarely but rightly.”

“Win not by quantity, but mastery.”

In contrast, Kutuzov won the war with Napoleon by allowing the enemy to take Moscow and retreating to the depth of Russia where the harsh Russian winter and partisan war aided him to a crushing victory. He faced enormous pressure with Napoleon’s army sitting on his doorstep right outside of the capital. He had just lost thousands of soldiers in the devastating draw at Borodino and he thought engaging Napoleon again would risk the rest of the Russian army and the nation. Thus he made the boldest move imaginable: he sacrificed the jewel, Moscow. Its citizens burned down their own city in advance of Napoleon’s entry, and Napoleon was forced to continue on in pursuit of the Russian army as winter fell. Cash-strapped, outnumbered, and out-armed, Kutuzov used his creativity and the most basic of resources: the Russian winter. Napoleon eventually retreated after losing his army and Kutuzov returned a hero.

You will find some of these principles reflected in how Russians act in the business world. Often they are impulsive and trust their instincts. They will surprise you by going for a long-shot business deal on a hunch, and against all odds, actually making it work. They might sacrifice the one aspect of the company they’d said all along was essential, in order to pursue another venture. Strapped by limited resources, they might find an out-of-the-box shoestring solution that’s better than the most elaborate one Western money could buy. Just as Russian nature went against conventional, conservative Western European-dominated military science in the 18th century, it will also at times be contrary to the sensibilities of Western businesspeople. I would encourage you to pause before leaping to shake sense into your Russian partner when he proposes something you weren’t prepared for. You might have struck a goldmine: you might just be working with a Suvorov or a Kutuzov.

Read more about doing business in Russia in my new book — “Riding the Russian Technology Boom” — at: http://www.russia.futuretext.com

In mid-April, Ukrainian President Petro Poroshenko submitted a bill to the legislature, aiming to take away the citizenship of Ukrainians who vote in foreign elections, or who otherwise 'fulfill the duties that foreign citizenship puts on [them]'. The bill has been widely criticized for the fact that it only serves to alienate the millions of Ukrainians with foreign citizenship – many of what are the nation's chief supporters overseas – while it fails to achieve its stated purpose of affecting Ukrainians in Russian-run elections in Crimea.

It is firstly important to note that it is not strange for Poroshenko's bill to insist that Ukrainians living in the occupied regions of Crimea and the so-called Luhansk and Donetsk People's Republiks should remain Ukrainian citizens (even if it has been justified on this basis) . Even where Ukrainians have adopted alternate citizenship enthusiastically and voluntarily, it would only legitimize the Russian invasion to say it has created new states with real citizens, or that it has successfully made some Ukrainian citizens (and territories) Russian. In reality, the citizenship issue in eastern Ukraine is a driving historical force behind nationality law and, indeed, the war in the country today.

Ukraine's approach to dual citizenship is already one of the strictest in the world, with dual citizenship being outright 'not recognized', and in 2014, the legislature even considered a bill to criminalise it. The direct causes of this are derived from the end of the Soviet Union, but more broadly they are founded in Ukraine's historical struggle to ensure its territorial integrity, and even to be recognized as a separate nation.

Along with Belarus and Russia, Ukraine was historically a part of the medieval kingdom of Kyivan Rus', a fact which Russia has used to justify control over Ukraine for centuries. This problem magnified when, after the fall of the Soviet Union, millions of Russian-speaking people found themselves living outside the new Russian Federation, predominately in Ukraine, Belarus, and the Baltics. The historian, Serhii Plokhy, discusses in his book Lost Kingdom how the new Russian Federation struggled to develop a clear definition of Russian nationalism, in light of the fact that many ethnic Russians lived beyond the borders of the state. Attempts to expand Russian nationalism to ethnic Russians in Crimea and Eastern Ukraine was prevented by Ukraine's prohibition on dual citizenship. By refusing to allow Ukrainians to be both Ukrainian and Russian, the Ukrainian government was defeated to defeat Russia's claims to Ukrainian territory.

Many Russian writers and politicians considered this to be a sign of Ukrainian chauvinism. Even Russian nationalists like Alexander Solzhenitsyn, opposed to the Soviet Union, were outraged by how the territories were redrawn. In 1994 he described Ukraine's ownership of Crimea as an acceptance 'of false Leninist borders', alluding to the fact that Ukraine was gifted Crimea by Khrushchev in 1954. He accuses Ukraine of having 'set upon false imperial path', and in the same book, The Russian Question, suggests that the best solution for the titular question is a 'single union of Eastern Slavs'. That is to say, Ukraine, Belarus, and Russia bought to be united into a single nation. This fails to recognize the distinctness of Ukrainian culture from Russian culture, and one notes that the prior examples of such unity, the Soviet Union and the Russian Empire, had always put Russia in a dominant position. Solzhenitsyn, like many others, was a Russian nationalist, but he believed that the Russian nation extended far beyond the borders of the Russian state.

Today we have seen that the Russian annexation of Crimea was justified on the basis of the nationality question that Ukraine foresaw at the end of the Soviet Union. But the fact that Russian speakers in Crimea were not basically Russian citizens was not enough to stop Vladimir Putin from asserting Russia's claim over the territory on the basis that the people who live there are 'Russians'. Herein Putin's application of Article 1 of the UN Charter to Crimea, an argument that the annexation is in service to peoples' right to self-determination. According to Putin, the people in Crimea and most of eastern Ukraine are Russians, no matter where the present borders lie, and no matter what country they are citizens of.

That said, this background offers some explanation as to why the Ukrainian government is so unusually concerned about dual citizenship. Whether Poroshenko's latest bill is good or bad is beyond the scope of this article, but it is better understood when placed within the context of Ukraine's historical struggle for sovereignty.

The early 1990s saw drastic changes in global politics, trade, and geography in Europe and parts of Asia. With the dissolution of the Soviet Union, numerous independent states became recognized, and many would form an association of sorts to promote trade and financial support with each other and outside nations. The Commonwealth of Independent States, formed for the purpose of maintaining friendly relations among former Soviet territories, sought to create free trade boundaries with member nations, though this agreement was never officially ratified. Only recently have CIS nations consented to a formal trade agreement which will impact all members involved, in particular the Ukraine, which also seeks a relationship with the European Union.

CISFTA Member Nations

Officially, only eight nations within the Commonwealth of Independent States are involved in the current free trade agreement:

• Russia – Within the CIS, the Ukraine and Belarus are Russia’s major trade partners. Known for its mining and agricultural industries, Russia exports iron ore and precious metals, as well as various machinery.
• Ukraine – Ukraine is a major producer of coke and coal, and exports a good percentage of their petroleum and chemical output to Russia, the United States, and Germany.
• Belarus – Largely industrial, Belarus relies on trade relations with Russia and the Netherlands as they export vehicles and machinery.
• Kazakhstan – A smaller economy within the CIS, Kazakhstan produces on average 65-70 million tons of oil and gas condensate annually.
• Kyrgyzstan – Kyrgyzstan encountered difficulties economically following the dissolution of the Soviet Union, but continue to grow slowly. Main exports include precious metals and hydropower.
• Tajikistan – Turkey and Russia are major exports partners and benefit from Tajikstan’s production of aluminum and cotton, among other agricultural crops.
• Moldova – Moldova has struggled post-dissolution to establish a foothold in global trade beyond Russian borders, but has managed to export food and textiles to Turkey, Romania, and Germany.
• Armenia – Metals and mineral mining are prime industries in Armenia. Russia, Bulgaria, and Germany are among their top trading partners.

Current Issues Within CISFTA

Foremost in the media regarding the CISFTA agreement is Ukraine’s role and the effect, if any, it will have on relations with the European Union. While Ukraine’s involvement in CISFTA should not negatively impact the deep and comprehensive free trade agreement with the EU, it should be noted that both treaties are important to the country. According to OdessaTalk, the bulk of Ukraine’s trade, little over forty percent, is concentrated within the CIS borders. Trade with European Union members holds just under thirty percent, but could have the potential to grow. Should this potential be realized, one may find other member nations of CISFTA taking advantage of such a relationship.

Compatibility of CIS nations with the procedures of non-member nations is key in forging successful trade relationships beyond the old Soviet borders. It is worth watching Ukraine closely to see if others in CISFTA follow suit.

As we watch the dangerous developments in Crimea and now in the rest of Ukraine, we have to ask ourselves whether we misjudged Vladimir Putin when he took office in 1999 as a competent, rational actor who, though deeply mired in KGB’s grim Soviet history, had a realistic view of the world and accepted Russia’s 20th century failures, and especially its fall from superpower status in 1989. Back in those days Putin chose wise advisers, including the liberal economist Alexei Kudrin and the political junkie Vladislav Surkov. But now a new Putin has seemingly emerged who has only one advisor, himself.

Perhaps spending too much time alone in the gaudy and majestic Kremlin Palace has kindled some sort of messianism in Putin as he has held supreme power in Russia now these fifteen years, for he seems to be zigzagging more and more toward a megalomaniacal zeal to restore Russia to world empire status. This is scary not least of all because post-USSR Russia still maintains a huge nuclear stockpile.

Putin has famously suggested that the collapse of the Soviet Empire was the worst thing that happened in the Twentieth Century (and what about the Nazis?), but he seemed realistic enough to accept that he couldn’t reestablish Russia as the superpower it once was when it was known as the USSR. Now that is in doubt.

Today’s new Putin is a man who decided, unilaterally it seems and without much support from anyone else in Moscow, to annex Crimea. What was he thinking? A rational analysis suggests that Russia already wielded enormous influence in Crimea and the entire Black Sea region without having to support it with cash outlays that modern Russia can ill afford. Before annexation, Russia had already earmarked $1.7 billion for Crimea. Now Crimea will become a sinkhold for billions more that Russia should be spending closer to Moscow. And yet Putin proceeded without consulting such clearheaded advisors as Foreign Minister Sergei Lavrov or his Minister of Defense, Sergei Shoigu. They were simply ordered to implement a policy that Putin articulated entirely on his own.

The old Putin was a kind of “chief decider” in the mold of George W. Bush, an arbiter who exercised pragmatism in brokering a consensus among the thousands of competing interests whom he must manage and lead. The new Putin is increasingly the imperial Czar of Russia, an autocrat who makes decisions without consulting anyone, simply announcing them as a fait accompli.

Putin now routinely refers to the “Russian Civilization” rather than the “Russian People.” This suggests that he views Russia as something apart from the rest of the world, about as connected to Europe and Asia as Mars. The idea of a Russian Civilization harkens back to the days of Peter the Great and an expansionist Russia that viewed itself as superior to Asia and to Europe, and which tacitly gave permission to absorb its neighbors by force.

The pragmatic Putin of the early 2000s, who worked with European and American leaders to achieve political fixes, has been replaced by a dogmatic Putin who apparently believes that Russia is in grave danger, a Russia he must defend from chaos and darkness.

“Russia did not begin in 1917 or even in 1991,” Putin recently stated in 2012. “Rather, Russia has a continuous history spanning over one thousand years and we must rely on it to find inner strength.”

What is most startling about Vladimir Putin’s political biography is that, with the passage of time, most leaders evolve from the idealism of their first days in office to a kind of hard-nosed pragmatism that puts aside grand ideological themes in favor of practical political fixes that keep the trains running on time. In Putin we have seen the reverse: the pragmatic KGB intelligence analyst has become the leader of destiny, a visionary, the man who will save Russia and restore her glory (whether Czarist or Soviet is not yet clear).

What was it Lord Acton said about absolute power corrupting? There is a reason Americans insist that their presidents remain in office for a maximum of eight years, with an insistence also on a referendum by the entire nation after only four years.

Vladimir Putin has been the undisputed dictator of Russia now for a decade and a half. And he has become, it seems, a legend in his own mind. Watch out! Trouble ahead.

Applying for a visa is usually a complicated and confusing matter; this article will explain a few points regarding bank statements and other supporting documents you may need to provide to obtain a visa for Russia.

Supporting documents for a Russian visa may vary greatly. It depends on your nationality, whether or not you hold a UK residence permit, and also on the type of employment you are involved in.

The process is quite straightforward when applying for a Russian visa if you hold the British passport. All you are required to submit for a tourist visa for Russia, for example, is the completed and signed visa application form, one photo, valid passport with two blank pages and tourist voucher.

If you hold an EU passport and reside in the UK you have to prove that you have been a UK resident for longer than 3 months. This is one of the criteria which must be observed to obtain a Russian visa. One of the ways to confirm your residency is to get a residence card from the Home Office. If you do not have time to arrange this, there are two other ways of working this out. The first one is your employment letter. You can provide a letter that confirms that you have been working and living in the UK for at least three months before you make a visa application. The second one is for those who are self employed and cannot provide a company letter. This is when you need your bank statement for the last three months, showing your full name and your current UK address. If you do not receive original bank statements by post, you will either have to order them in any branch of your bank or ask your bank for a letter which states your full name and UK address. You will need to enclose print outs for three months which you can either get in your bank or print off yourself if you do online banking.

The same rule applies to a visa application when the applicant is a full time student in the UK and holds a Tier 4 visa. If you are a student and do not have a UK bank account, you can provide a letter from your school as a confirmation of your resident status in the UK. Just one piece of proof is enough – you can bring either a university letter or three month bank statements.

If you stayed in the United Kingdom for less than three months, or you can’t prove that you have lived here for longer than three months, you will have to apply for a Russian visa in your home country.

Now there may arise a question: can you provide an overdrawn bank statement? The answer would be positive if you are employed, but if you are self employed, you are supposed to show at least 100 pounds for each day of your stay in Russia on your bank account.

Three major trends fueled Russian telecom development in 2006: (a) liberalization of the long-distance telecom market and introduction of new operator interconnection regulations, (b) broadband Internet access as the new leading market segment, and (c) the upcoming issuance of third-generation (3G) licenses amid 100 percent mobile-sector penetration and value-added services (VAS)-sector growth.

In 2007, there will be increasing competition in the long-distance market segment. Fixed-line operators will further diversify their services, particularly among broadband and convergent services. Other leading market sectors are digital subscriber line technology, Internet protocol television (IPTV) solutions, next-generation network equipment, and passive optical network technology. The mobile sector will feature increasing competition for subscriber loyalty, offering heavy VAS content (mobile television and interactive games) as operators deploy 3G networks. Cable television, broadcasting, and satellite operators will enrich content and expand their offerings to subscribers.

Market Overview

Russia’s steady macroeconomic performance (6.8 percent gross domestic product growth in 2006) increased government and corporate spending on information and communication technology (ICT) infrastructure and services, and growing regional consumer spending increased telecom-sector growth. In 2006, the Russian telecom-sector revenues reached $29.6 billion, a 26 percent growth over 2005, as reported by iKS-Consulting. The mobile communications sector grew 34 percent and exceeded $10.5 billion. However, broadband access showed the largest growth of more than 42 percent.

In 2006, according to the Russian Ministry of Information Technologies and Communications (MITC), the total ICT market exceeded $40 billion. Local capital investments totaled $5.6 billion, a 7.1 percent growth over 2005, while foreign investments totaled $4.1 billion, a 19.5 percent annual growth. The Russian Web user base reached 25 million, and revenues from Internet access and data transmission services reached $2.1 billion, or 24 percent growth, compared with $1.7 billion in 2005.

Liberalization of the Long-Distance Market

January 2006 began with a historic event. Rostelecom, the national carrier and dominant player on the long-distance telecom market, awoke to a new competitive reality–the market was liberalized. Actually, more than 20 new operators received licenses to provide long-distance and international communication services. Analysts estimated the Russian long-distance telephony market size at $1.9 billion to $2.1 billion in 2006.

The challenges for new players remain high. Owning a license for long-distance services is not a panacea. A new operator must have a nationwide network and an agreement with regional operators for the last mile connection. Moreover, new interconnection regulations divided operators into three major levels: local, zonal, and long-distance. Long-distance operators now must connect to end-users only through regional operators (local level) and pay interconnection fees for every call.

The first contender, Multiregional TransitTelecom (MTT), began providing services in 2006 and was expected to challenge Rostelecom’s position. However, with its modernized network, good pricing, and improving customer service, Rostelecom did not yield much ground to MTT in 2006, and the MTT subscriber base reached only 2 million (4 percent). Nevertheless, MTT expects to capture 15 percent of the market share by 2008. With more than 40 million subscribers, Rostelecom gained 60 percent of the market, while the smaller operators, including Internet protocol providers and grey-market operators, fought for the rest.

In January 2007, Golden Telecom (GT), one of the largest alternative telecom operators, launched services. With a strong regional network, developed corporate market segment, and significant distribution network of 30,000 points, GT plans price services at 10 percent less than Rostelecom. GT remains upbeat, expecting to grab some 20 percent of the market share by 2008 and estimating that the market will exceed $4 billion.

Fixed-Telephony Sector: Broadband Access Boom

The boom of the Russian fixed-telecom market was rather predictable. Russian regions outside the more mature St. Petersburg and Moscow markets demonstrated increasing consumer and corporate spending confidence as broadband Internet usage skyrocketed. No wonder the broadband access market has become the leader of the information technology sector. MITC believes that the data transmission market will grow from $1.18 billion in 2005 to $2.8 billion in 2008.

Moreover, the emerging IPTV market is also flexing its muscles. More than 20 Russian operators joined MTU-Intel and other market leaders in providing video services. According to iKS-Consulting, there were about 150,000 IPTV subscribers in Russia in 2006, and by 2010, that number may reach 1.4 million.

Thanks to the interconnection and the “Calling Party Pays” (CPP) regulations ratified in 2006, Russian fixed operators received a significant financial boost. Long-distance and mobile operators reported that just in the third quarter of 2006 fixed operators earned some $14 million. Finally, fixed operators shouldered alternative operators in their traditional spheres of influence, Internet access, and cable television market sectors, offering a whole range of new competitive services.

Russia’s incumbent telecom operator, SvyazInvest Holding, will probably not be privatized until 2009. Security and military agencies blocked this move in 2006, citing national security reasons. Analysts believe that because of the upcoming presidential election, the decision on privatization will be postponed further. However, SvyazInvest’s interregional companies showed some good results, appeasing investors in 2006. The results were reached through an effective cut in operational costs and personnel, as well as through the installation of new enterprise resource-planning solutions to improve enterprise management. At the end of 2006, Comstar UTS, Sistema Telecom’s major fixed telecom asset, purchased 25 percent of SvyazInvest shares from its owners, Leonard Blavatnik and Viktor Vekselberg, for $1.3 billion.

In 2006, some 7,000 WiFi hotspots operated in Russia. J’son & Partners predicts that the number will exceed 9,400 in 2007, growing exponentially in the next five years. Most prominent, however, is the GoldenWiFi network launched by Golden Telecom that added 6,700 hotspots, making it the largest WiFi network in Europe.

Mobile Sector Saturates

In 2006, the Russian mobile market became the third largest in the world by number of subscribers and revenue, after China and the United States. Mobile penetration exceeded 100 percent because some 152 million subscribers (Russia’s population is 145 million) used mobile services in 2006. Major mobile operators faced saturation and increased spending on marketing and development of VAS services.

The introduction of the CPP regulations helped Russia’s leading mobile operators to soften the gradual fall in average revenue per user. Anticipating a drop in mobile calls, operators quickly moved to ruble-based tariffs, raising average tariffs by 5 to 10 percent. Operators also secured reimbursements of $0.03 per minute by fixed operators, which resulted in a 5 to 10 percent net profit to major operators.

Leading mobile operators, MTS, Vimpelcom, and MegaFon held 85 percent of the Russian mobile market, while the share of regional operators reached 15 percent (22 million subscribers, 3 percent growth). Tele2, SMARTS, SibirTelecom, and UralSvyazInform demonstrated the most dynamic results.

3G Comes to Russia

3G mobile telephony technology finally arrived in Russia. At the end of 2006, the Russian State Committee on Radio Frequencies approved the allocation of 3 × 15 MHz in 1935-1980 MHz and 2125-2170 MHz frequencies, and 3 × 5 MHz in 2010-2025 MHz frequencies for 3G development. This frequency capacity is sufficient to issue three nationwide licenses. The licenses will cost around $100,000 and will be issued for a period of 25 years. Operators are expected to “clear” the frequency and to invest millions of dollars into equipment and network construction.

In April 2007, the tender commission will announce winners according to a scoring system for each operator. The scoring system will use major criteria, such as network presence in each Russian region and the amount of potential investment in new networks. According to analysts, Russian mobile operators will first launch 3G zones in about 20 Russian regions. Although the mobile content market has resurged from its unexpected slump in 2005, the “heavy” content services have not yet emerged as mainstream. In emerging markets such as Russia, where mobile penetration is uneven and customer preferences are based on purchasing power, it is hard to predict the exact start of 3G.

The Russian telecom market is closely following world leaders in ITC development and expects continued growth. Further information on this dynamic industry, including doing business in the Russian ICT sector, can be found in Andrey Gidaspov’s first book, Riding the Russian Technology Boom, which will be published by Futuretext in April 2007 (www.russiantechboom.com).

Andrey N. Gidaspov is a former BISNIS Moscow representative. He currently heads GidaByte (www.gidabyte.com), a telecom business-consulting firm in Hong Kong.

Lynn Visson’s “Wedded Strangers” identifies differences in work ethic between Russians and Americans:

“Americans, with a work ethic, grew up knowing they would have to work hard to get a job. For Russians, under the Soviet system, the government found them a job or they got a job through personal contacts.”

“Under the Soviet system, the idea was to get away with as little work as possible, as there were no pay raises. There was no real threat of getting fired either. Working hard just led to more work.”

“For women in the Soviet Union, the workplace was a place to gossip, sell each other clothes, and exchange tips on where to get consumer goods.”

“To Russians, Americans are time obsessed. To Americans, time is money. To Russians, relationships are more important than time.”

Lynn Visson’s “Wedded Strangers” talks about further distinctions between Russians and Americans:

“The worst thing a Russian can say about you is that you are dry. Meaning that you are cold and logical. Outpourings of emotion in private life are balanced by extreme restraint in public life.”

Russians smile when there is something to smile about – for example, when they are with their family and friends and the vodka is flowing.

Russians have what is best described as a dry sense of humor. They make jokes that are very sharp or witty. They can be also be very sarcastic. They make humorous comments that require intelligence and a keen understanding of a situation to be funny.

The Russian delivers his joke or funny story with a serious expression on his face, while everyone else bursts into laughter. If he laughs with the others, it spoils the joke.

Lynn talks about different perceptions of time:

“Being late is part of the Russian makeup. Being late was a way of showing contempt for the system and of asserting self. To Russians, appointments are guidelines.”

“Americans do one thing at a time. They value short-term relationships and take deadlines seriously. Russians do a variety of things at one time, they value long term relationships, and they are flexible about appointments.”