Notebook

Big Screen

Kodak’s Western-style movie theater, Kino Mir, which opened last year in Moscow, is bringing in big profits as young Muscovites flock to the movies, drawn in by the theater’s state-of-the-art sound and projection systems and its central location (near Pushkin Square). This year, ticket sales could top $2 mn, putting Kino Mir among the top three grossing single-screen theaters in the world. Meanwhile, most Russian movie theaters are struggling to keep afloat and have to rent out space to other businesses in order to survive.

Korean Oasis in Vladivostok

Vladivostok’s first-ever five-star hotel has opened its doors. Yet, with regular hot water cut off and electricity problems and bumpy roads in the city, the 12-story hotel built by the South Korean firm Hyundai is hardly located in an oasis of capitalism. City authorities contributed a 1.2 hectare plot to the project (30% of the venture), while the South Korean concern put up $96 mn and will own 70% of the venture. The hotel features 125 rooms with prices ranging from $220 to $1,000 a night (for a presidential suite). The South Koreans believe they will receive a full return on their investment within 8 years.

Hermitage Aquarium

St. Petersburg’s Hermi-tage museum is launching a $300 mn joint project with a French company to install 14 floating piers on the Neva river with underwater space for commercial use. The first three piers will be built adjacent to the Winter Palace, where the museum is housed, and will hold exhibition halls, restaurants and upscale shops. The Hermitage will gain a total of 300 square meters and plans to use the space for concerts, exhibitions and information and commercial services.

The other piers, which will extend up to 215 meters above water level, will contain space for floating hotels and business centers. The project, which is being carried out by the company River Space Holding, is to be completed in five years.  River Space Holding is leasing the piers for 10 years and will pay the city $60,000 a year. The company announced that the World Bank is serving as guarantor for the funding, which is being largely supplied by private investors  and companies.

Moscow Tea Party Imminent?

Owing to increased import duties on tea announced by the Russian State Customs Committee, the price of every packet of tea sold in Russia will increase by a few thousand rubles and Russian tea consumption is expected to drop by 7 to 12 percent. However, the Russian Tea Association is not taking this decision lying down. The head of the association, Igor Lisinenko, said that 95% of Russians drink tea, and he intends to fight to make sure that the interests of tea drinkers are protected by the government.

Metro Halts Construction

The cash-strapped Moscow metro suffered a fresh setback when Yury Koshelev, head of the Mosmetrostroy firm, which is in charge of the construction project, said all construction work on Moscow’s metro lines would stop because the Finance Ministry had slashed the project’s budget by  three-fourths.  He also announced that some stations are in danger of collapse if construction work is left unfinished.

Double-headed Eagle has Landed

After eleven years of repair, the State Historical Museum is finally open to visitors. Among the external renovations is a double-headed eagle, replacing the red star atop the museum’s tower. Muscovites speculate that this could signify the beginning of the end for the Kremlin’s red stars, which have been the subject of much controversy since the collapse of the Soviet Union.      

Russians Getting Richer? Some recent statistics show that life for the average Russian is looking up. The average monthly income in Russia totalled R894,00 per capita during the first six months of 1997, which is 14.3% higher than in December 1996 (the official minimum survival level is set at R410,800 a month). In Moscow, every fourth family owns a car. Most importantly, this summer approximately 6% of adult Russians (5-6 mn people) expressed an intention to spend their vacation abroad (including the Baltics). With an average travel package costing $450-$600, this means that Russians may have accumulated some $3 bn for traveling expenses.

Duma Clamps

Down on Foreign Residents

The State Duma has passed legislation pertaining to the legal status of foreign citizens in the Russian Federation. The law, which was prepared by Vladimir Zhirinovsky’s Liberal Democratic Party, would bar subjects of foreign governments from voting in Russian elections, being elected to government office or serving in the Russian military. The legislation would also give Russian border guards the right to refuse entry to foreign citizens who “appear sick.” Currently, about 700,000 foreigners live illegally in Russia, and only 10,000 to 12,000 of them have requested refugee status. The law would also control the entry of foreign workers into Russia. In order to become law, the bill must first be signed by President Boris Yeltsin.

Another Birthday Present

for Moscow

Moscow’s largest  railway station, Kazansky vokzal, which services rail routes to the south and southeast of Moscow, has been renovated just one month before Moscow’s 850th anniversary. As a result of the renovation, an extra 25,000 square meters of space were added to the station, and new waiting halls and lobbies have been constructed. Consequently, the station will see its passenger turnover double – making it the largest in Europe. New, state-of-the-art equipment demanded an enormous amount of investment, and the Moscow city government made a concession to the Federal Railway Ministry by exempting the railway station from tax payments to the city budget.

Yeltsin to Chop Three 0’s

President Boris Yeltsin has announced that the Russian Central Bank will institute currency reform starting next year. Changes include cutting three zeros off the ruble’s face value, the introduction of a new ruble note and, the reintroduction of the kopek(!). These reforms come in the wake of a steady ruble and stable prices on basic goods. Yeltsin assured Russians in a television address that “nobody is going to lose anything as a result of the reform.” The new ruble note, which is practically identical to the old one in design, will be worth about 17 cents.