STATISTICS

IVAN BRIZOV
RIBR
MARKET: Rosneft, targeted by the US sanctions, is now being traded at 4.3 times than its annual prots
The Ukraine crisis has led to a fall in shares of Russian
companies, making them more attractive to investors.
Undervalued companies: Wait for the tide to turn
R
ussian companies have traditionally
been undervalued by the market, and
the current crisis in Ukraine, combined
with US and EU sanctions, have led to a
further fall in prices. One way to determine
the fair price of a company is considered as
the ratio of its market capitalisation to its
annual profits (PE ratio) this factor acts as
an indicator of how much the company is
undervalued by the market. Thus, the secu-
rities included on the main Russian index,
the MICEX, are being traded at an average of
five times their annual profits. In Turkey, this
indicator is 9.4, in Poland 12.5, while in Brazil
it is 13.1 Russian companies, on an average,
are, therefore, valued at 2.5 times less than
companies in Brazil.
At the same time, in some Russian com-
panies, the ratio of market capitalisation
ECONOMY: Moscow looks at Oregon model, Ministry of Economic Development has rmed up a blueprint for SEZ
Russia plans to create SEZ,
offshore tax haven in Crimea
The Russian government has set a record low rate for value-added tax (VAT) in Crimea and is offering a host of
incentives to attract both Russian and foreign investors to convert the peninsula into an economic dynamo.
A
mid the raging crisis in Ukraine, Russia
is planning to make Crimea a special
economic zone and a civilized off-
shore which will become a hub for invest-
ment. Unveiling the plan, Russias Minister
for Crimean Affairs Oleg Savelyev said the
government is planning a liberal model of
development of the peninsula, and the crea-
tion of a civilized offshore. He said the new
model will provide maximum delegation of
federal powers to local authorities and help
minimise costs, which will allow making
deals according to the British law.
Since early May, the Crimea State Council
has established new rates on value-added
taxes: 4 percent for regular wares and 2 per-
cent for socially important ones, including
foodstuff, childrens goods, and medicines.
The NDS (VAT) is 18 percent throughout
Russia. The lowering of the NDS is unprece-
dented for Russia. Such low taxes only occur
in offshore zones.
According to Investcafe analyst Mikhail
Kuzmin, such a decision seems a logical step
to attract additional investments into the
region. The Russian authorities will try to
create maximum relief to get business onto
the territory of Crimea, says the expert. The
new tax rate is set through the beginning of
2015. However, it may be extended in the
future. If this measure results in positive
results and stimulates investment activity,
then the given NDS rates for the Crimea will
be retained after the end of the transition
period, says Victor Demidov, the Head
of the Department of Legal Consulting at
Finexpertiza.
The VAT is a federal tax, but in the case
ALEXEY LOSSAN
RIBR
of Crimea, an exception has been made:
the Russian federal legislation will start to
function on the island only at the start of the
New Year. This tax zone will be interesting,
first of all, for the enterprises operating in the
Crimea, as well as for Russian and foreign in-
vestors provided the tensions surrounding
Ukraine are lowered, says the UFS IC expert
Vasiliy Ukharsky.
In other countries, the lowering of taxes
has worked. For instance, the income tax
was eliminated in the American state of
Oregon, which helped transform this region
into an attractive destination for shopping,
e-commerce, and the development of new
designs by major clothing brands.
The Russian authorities have somewhat
similar plans for Crimea. The Ministry of
Economic Development has worked out a
plan for creating a special economic zone on
the peninsula. If a company puts 150 million
rubles ($4.2 million) into the economy of
the region over a period of three years, then
it will be relieved of all taxes except for the
10 percent tax on profit. However, this pro-
gramme is still being finalised by the Russian
government.
THE OUTSIDERS INSIGHT
In its approach to the situation in
Ukraine, the Indian leadership has
consistently underlined its com-
mitment to the principle of a states
territorial integrity. However, if India
had always followed this principle,
the independent state of Bangladesh
would not exist on the world map to-
day. As the events in Ukraine become
more terrible and tragic, I get a feel-
ing of dj vu more and more often.
Judge for yourself.
A country in which the division of
East and West can clearly be seen;
not only is the population of these
parts simply unable to get along
with each other within a single state,
but also feels an absolute rejection
of principles which one part of the
population is trying to impose on the
other. When the Eastern population
begins to demand respect for their
legitimate rights and interests, the
government, representing the interests
of the West, unleashes a bloody mas-
sacre and genocide against its own
people.
Which country are we referring
to? Ukraine in 2014? Yes, but not just
Ukraine. Remember that the same
thing happened over 40 years ago,
much closer to the borders of India,
which now takes a rather balanced
position in relation to Ukraine, but for
some reason still cannot openly admit
who is right . The duality of Indias po-
sition can be partly understood.
But lets acknowledge that, for
example, the Indo-Pakistani dispute
over Kashmir has no parallels with the
current situation around Ukraine. The
referendum in the Crimea was held
with the legitimate authorities being in
full control of its territory, and nobody
How unshakable is
territorial integrity?
BORIS VOLKHONSKY
Foreign policy analyst
The authors blog
in.rbth.com/blogs/ the_
outsiders_insight
prevented the citizens from making
their choice. And the voting showed
that 97 percent of the population was
in favour of reunification with Russia.
None of this is possible in todays
Kashmir; there is no need to talk about
a referendum in a territory controlled
by at least three administrations. And,
of course, one cannot expect such a
clear voting outcome.
Heres another parallel with re-
spect to what is happening today in
the south-east of Ukraine. Its about
the 1971 events in Bangladesh (East
Pakistan at the time), the same strug-
gle of the Eastern population for its
vital national interests and the same
attempt by the central government to
crush protests by force.
If during that time, nobody in the
world had stood up for the rights of
East Pakistanis, this would have led
to greater scale of genocide, a com-
plete infringement of the rights of the
Bengali population, and a relegation of
Bengalis living in East Pakistan to the
level of second-class people who do
not have any rights to their language,
culture, or identity.
In 1971, India had no doubt about
how to act in this situation. As soon as
the Indian troops, who entered East
Pakistan and saved hundreds of thou-
sands, the national liberation struggle
of the Bengalis was a success, and the
independent state of Bangladesh ap-
peared on the world map.
Of course, today it is not so easy
for India to take a similar position in
relation to the Ukraine crisis. Firstly,
Ukraine is far away. Secondly, India
itself is at a crossroads, and the coun-
trys leaders have to think more about
their own political future in the country
rather than about some actions in the
international arena. Finally, over the
decades that have passed since the
events in Bangladesh, Indias foreign
policy has evolved towards the West.
However, today the West is an active
supporter of pogroms in Kievs Maidan;
it contributed to the rise to power of
Nazis in Ukraine, encouraging geno-
cide of the Ukrainian people, perpe-
trated by illegitimate authorities of that
country. In these circumstances, there
is hope that the current (or future)
Indian leadership will still remember
that the territorial value is not immune
when it comes to people survival.
There is still hope that following the
example of India in 1971, Russia will
not have to send troops to Ukraine
to protect the civilian population.
However, if the Nazis consolidated
in Kiev continue to pursue a policy of
genocide of their own people, Russia
will have to take adequate measures.
Then I would very much like to see
India, while assessing the situation, re-
call Bangladesh rather than Kashmir.
Crimea is poised to create ideal conditions for attracting more business and investment.
Ruble/Rupee dollar rates
Stock Market Index
Major stock markets
ranked by P/E
Poll: Will Russias isolation
impact its fortunes?
Poll: Will Russia become
a great power?
Business Report
THE ECONOMIC TIMES IN ASSOCIATION WITH ROSSIYSKAYA GAZETA, RUSSIA
RUSSIA&INDIA
WEDNESDAY MAY 14, 2014 in.rbth.com
to profits may exceed that of their foreign
counterparts several times. For example, the
capitalisation of Norilsk Nickel, the worlds
largest producer of nickel, is 41.7 times great-
er than its annual profits, a record for the
Russian market. According to the investment
holding company Finam, the most underval-
ued Russian company is Transneft, engaged
in the construction and operation of pipe-
lines. The second most undervalued com-
pany is Gazprom, which provides 40 percent
of gas deliveries to the European Union. This
company is worth $83.7 billion, which is
just 2.7 times its annual profits. The shares
of Gazprom are the most popular securities
among foreigners investing in Russia. Lukoil
comes third, followed by Surgutneftegas
the most closed Russian oil company.
Finally, closing the Top-5 list of the most
undervalued companies, is the state-owned
Rosneft, which is now worth only $66.87
billion and is being traded at 4.3 times its
annual profits. It has been hit hard by the US
sanctions as its president, former deputy
prime minister Igor Sechin, was placed on
the US black list. However, as they noted in
Finam, once the sanctions issue disappears
and investors return to the Russian market,
then most likely they will turn their attention
to Rosneft.
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WEDNESDAY MAY 14, 2014
IN ASSOCIATION WITH ROSSIYSKAYA GAZETA, RUSSIA
NEWS
Russia is planning to put a manned
colony on the Moon in 2030, and is
racing to dispatch the rst robotic
rovers to explore the lunar surface two
years from now, says a report by Iz-
vestia. A draft government programme
outlines a three-step process, which
includes sending a robotic craft to the
Moon in 2016 and manned missions to
orbit the Earths satellite by 2028.
Russia will propose to its traditional
partners to establish a single common
credit rating agency that will compete
with the Big Three Standard &
Poors, Moodys and Fitch. According
to sources from the RBC-Daily news-
paper, a new agency could be estab-
lished through a partnership between
the Russian rating agency RusRating
and Chinas Dagong Global. The US
agency, Egan-Jones Ratings, could
help them. Dagong Global has already
held talks with RusRating in Beijing at
a meeting within the framework of the
BRICS: the company has proposed to
start negotiations to establish a new
international credit rating agency to
be based in one of the BRICS nations.
The rst reactor of the Russian-built
Kudankulam Nuclear Power Plant
(KNPP) reached 90 percent of its oper-
ating capacity on May 5, sources told
RIR. The reactor generated 900 MW
and it is likely that the plant will attain
maximum capacity soon. Russia will
help build units 3 and 4 of KNPP, with
a capacity of 1,000 MW each. Rosatom
head Sergei Kiriyenko said the techni-
cal parameters of units 3 and 4 have
been appproved. RIBR
India is likely to save around $360
million in synthetic butyl rubber
imports once Siburs joint venture with
Reliance Industries (Reliance Sibur
Elastomers) starts production by the
end of next year, Evgeny Griva, chief
executive of Sibur Petrochemical India
said. He added that Indias current im-
ports were estimated at 60,000 tonnes
per annum as against the plants
capacity of 100,000 tonnes. RIBR
Russia plans to set
up a manned colony
in Moon by 2030
BRICS countries
to set up common
credit rating agency
Kudankulam Unit
I reaches 90% of
operating capacity
SiburJV: India likely
to be self-reliant in
butyl rubber soon
ECONOMY: Western sanctions over Ukraine will only bolster Putins position as it will lead to consolidation of the elite, says aide
Putin may
target US,
European
oil giants
Russia may rethink the presence of Western
companies in crucial sectors of its economy.
R
ussian President Vladimir Putin
has cautioned that Moscow will
rethink the presence of the US
and the EU in strategic sectors of the
Russian economy if the West contin-
ued further sanctions and restrictions
over the Ukraine crisis.
The Russian government has al-
ready proposed some measures in
response, but I believe that they will
not be necessary, said Putin after a
Supreme Eurasian Economic Council
session in Minsk. [If ] this will contin-
ue, we will, of course have to rethink
all aspects of Western involvement in
key sectors of the Russian economy,
including the energy sector, he said.
We really do not want to resort to re-
taliatory measures, and I hope that it
will not be necessary, he added.
IGOR ROZIN
RIBR
Russian President Vladimir Putin has made it clear that if Western sanctions continued, Moscow will have to strike back.
In response to the first package
of sanctions by the US, Russia had
imposed a travel ban on some clos-
est advisers of US President Barack
Obama.
The ongoing Western projects in
Russia include virtually all the leading
oil and gas companies as partners,
including British BP, the British-Dutch
Royal Dutch Shell, Norwegian Statoil,
and Italian Eni. In late March, after the
beginning of the sanctions campaign,
Frances Total has been negotiating
with LUKOIL on the joint development
of Russian oil fields. The American
Exxon Mobil has shown very serious
interest in Russia, having enjoyed a
long and productive collaboration
with Rosneft. Ironically, Igor Sechin,
the chief of Rosneft, was one of the
first to land on the US sanctions list.
Putin has said that heightened ten-
sions in Ukraine have actually been
A
s its relations with Western
Europe and the United States
deteriorate, Moscow looks set to
step up its military and economic co-
operation with its southern partners.
Recently, the final conference on the
joint Russian-Indian naval counterter-
rorism exercise Indra-2014 was held
in Vladivostok. The manoeuvres will
be held in the Sea of Japan in mid-July.
Four ships of the Indian Navy will par-
ticipate in them along with the Russian
Pacific Fleet (PF) ships.
These exercises are associated not
only with counterterrorism objectives,
but also with the interests of joint
economic projects in the region, say
military and diplomatic sources.
A joint maritime defence is sup-
posed to be worked out as well as the
holding of firing as part of the manoeu-
vres. The relevance of such actions can
be attributed to Indias participation in
the Sakhalin-1 project for the develop-
ment of oil and gas field (the share of
Indias state-owned ONGC is 20 per-
cent), as well as the planned shipment
of natural resources from the Arctic.
India and Russia are also involved
in a joint development of phosphate
deposits on the Kola Peninsula and
potassium-magnesium salts in the
Perm region, with a cumulative invest-
Indra-2014 exercises linked
with joint economic projects
VLADIMIR MUKHIN
NEZAVISMAYA GAZETA
caused by the inability to establish a
dialogue between Kiev and Ukraines
southeastern regions. The authorities
in Kiev prefer to shift the responsibility
for what happens to Russia.
In an interview with Vzglyad online
newspaper, Yaakov Kedmi, a political
scientist and former Israeli intelli-
gence officer, said that he is sceptical
that Russia can be influenced through
sanctions and threats. The depend-
ence of the Russian defence on the US
is minimal. Russias Defense industry
will not suffer, nor will the space pro-
gramme. However, the European and
ment of $2.5 billion. It is possible that
in the near future, caravans of Indian
ships and tankers with these and other
natural resources will pass through
the Northern Sea Route, La Perouse
Strait and through the Sea of Japan to
the trading ports in the Indian Ocean,
and such caravans should, of course,
be protected against pirates and other
intruders. Thats why, according to the
head of the Russian delegation, 1st
Rank Captain Sergey Sinko, the Indian
side attaches great importance to
these exercises, which have a great po-
tential. He believes that all the issues
brought up at the Indra-2014 confer-
ence are agreed upon and approved.
This is not the first time that Indian
INDUSTRY: Kamaz CEO says India could become second leading market for its trucks; China, Latin America also priority regions
GEOPOLITICS: The Ukraine crisis nudges Russia to explore new gas pipelines to India, stakes in Trebs and Titov oil elds likely
KAMAZ parts ways with Indian partner, eyes Asia market
Russias truck maker Kamaz is upbeat about its
expansion plan for India and Asian countries.
R
ussian truck manufacturer
KAMAZ has parted ways with
its Indian partner, Vectra Group,
with whom it created a joint venture,
Kamaz Vectra Motors Limited, in
February 2010. The Russian company
bought shares from the Indian partner
VIKTOR KUZMIN
RIBR
turers revenue could exceed $12 bil-
lion in the next 3-4 years, he said.
According to Afanasiev, India could
become a base for the expansion of
Russian trucks in Asia. While what is
made at the Indian plant will be sold
in India, the markets of third world
countries have not been ruled out
for the future. Investcafe analyst Igor
Arnautov projects that, in the next 3
to 5 years, Kamaz intends to increase
sales to 8,000-10,000 trucks per year,
and to increase the Indian plants sales
to 2,000 trucks per year.
in December 2013 and wrested full
control of the plant with a design ca-
pacity of 5,000 trucks per year.
Analyst Narek Avakian of AForex has
suggested that disputes with Vectra
Group about the results of implement-
ed projects and the slow penetration
into the Indian market were principal
reasons for the split. Prior to the acqui-
sition of the shares, the groups share
opportunity to work with partners in
supplying automotive parts to Russia,
said the CEO. We have identified three
strategic directions: India, the coun-
tries of Latin America, and China.
Avakian believes that, in the next
3-5 years, the Indian market could be-
come second in Asia. India is currently
third, as the number two spot is held
by Japan. I estimate the global mar-
ket for heavy-duty trucks to be worth
about $120 billion of which Kamazs
share could reach around 5-7 percent,
and, therefore, the Russian manufac-
Navy is participating in the exercises in
the Far East in collaboration with the
Russian Navy. Such joint manoeuvres
were held in the Sea of Japan on April
24-26, 2007. At that time, five Indian
Navy ships under the command of
Commander of the Eastern Fleet of
the Indian Navy Rear Admiral Robert
Dhowan arrived in Vladivostok.
Tensions between Russia and the
Western countries, caused by the
events in Ukraine, forced Moscow to
intensify the process of diversification
of oil and gas, Lieutenant-General
Yuri Netkachev, a military expert, said.
Now there is talk of a possible con-
struction of a pipeline to India through
China. Although, in my opinion, it is
more profitable to carry oil tankers
from Sakhalin, and from the Arctic, es-
pecially because our joint naval groups
will be able to ensure the security
of such transportation in the future.
India is our strategic partner and its
military presence in the maritime
American programmes will certainly
suffer, given that they have a much
greater dependence on Russia, said
Kedmi. Obama can say whatever he
likes. Washington doesnt have the
resources to make Russia back down
in Ukraine. Washington should have
never provoked the conflict to create
the illusion of a global Ukraine and the
EU, said the Israeli political scientist.
Sanctions will only strengthen
Putins position, presidential aide
Andrei Belousov said. We are mobi-
lising more now and our colleagues
do not understand this. They do not
Read more
in.rbth.com/politics
Read more
indrus.in/world
economic zone in the Far East and the
Arctic will strengthen security in these
regions, Netkachev added.
Sergey Lunev, professor at the
Department of Oriental Studies at
MGIMO, feels that India would like
to take an active part in the develop-
ment of polar riches. In December
2010, AFK Sistema and ONGC signed
a framework cooperation agreement.
Indias participation is now being
considered in the development of
Trebs and Titov oil fields in the Nenets
Autonomous District (their reserves
are estimated at 78.9 million tonnes
and 63.4 million tonnes respectively).
Russian President Vladimir Putin could
sign agreements on these fields when
he eventually visits India for the 2014
Indo-Russian annual summit.
understand that through their sanc-
tions over the past 10-15 years, they
have achieved the consolidation of
the elite. Apparently, our psychol-
ogy is structured in such a way that we
need a strong negative external force
to compel us to unite and consoli-
date. The heavier the sanctions, the
stronger the bonds among the elite,
said the presidential aide.
of Kamaz Vectra Motors Limiteds net
loss was a little over $5 million. Now,
according to KAMAZ spokesman Oleg
Afanasiev, KAMAZs stake in the Indian
market is less than 1 percent.
In a recent interview with the
newspaper Vedomosti, KAMAZs CEO
Sergey Kogoghin talked about the auto
giants Indian experiment. The vehi-
cle, which is produced there, has 80
percent localisation. There had been a
joint venture there, but now it is com-
pletely our asset. Having localised the
vehicle there, we immediately got the
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WEDNESDAY MAY 14, 2014
IN ASSOCIATION WITH ROSSIYSKAYA GAZETA, RUSSIA
BRANDING: High quality of education and lower fees are key factors for foreign students
Creating Delhi-Moscow education bridge
India and Russia are set to ink a pact for mutual
recognition of higher education diplomas.
I
ndia and Russia are poised to sign
a deal on the mutual recognition
of higher education diplomas, a
crucial step that is expected to lead to
an upswing in educational and student
exchanges. The text of the agreement
is ready and practically approved,
Sergey Karmalito, Senior Counselor
at the Russian Embassy in New Delhi,
SERGEY IVANOV
RIBR
told RIBR.
Striking an upbeat note, Prof. Dr.
A. Najeerul Ameen, President, All-
India Foreign Medical Graduates
Association, said such an agreement
will lead to a five-fold increase of
Indian students coming to Russia for
higher education.
Just a couple of years ago, 145,900
foreign students were studying in
Russia. Today, that figure is rising.
Many students say they come to
Russia for the high-quality, inexpensive
education. These are future engineers,
doctors and teachers. Most of them
subsequently return home, but around
35 percent stay back.
This year, the government has al-
located more than $1 billion to raise
the profile of a Russian education.
Alexander Klimov, the deputy minister
of education and science, said the
money will go toward developing in-
ternational ties with institutes of higher
education, attracting foreign instruc-
tors and supporting foreign students.
The heads of universities are opti-
mistic that more students be heading
to Russia provided the country creates
the right conditions.
When they come to Russia, stu-
dents are looking for similar conditions
necessary infrastructure, campuses,
and food. The very idea of a campus, a
place for communal living, academic
cooperation, socialising and relaxing,
is attractive to young people and is
a powerful factor in drawing foreign
students, who simply dont imagine
a university without a campus, said
Vladimir Filippov, the rector of the
Peoples Friendship University of
Russia, which is home to a large num-
ber of international students.
TRENDS: Students hail from 147 countries
The unied exams puzzle
The Unified State Exam (USE), which seeks to curb corruption in college
admissions, arouses mixed feelings among students and teachers.
T
he introduction of a college ad-
missions system based on the
Unified State Examination (USE)
has ignited a public debate that refuses
to die. Whereas previously each univer-
sity was effectively free to determine
its own intake, including the disciplines
that students were required to pass
(orally or in writing), now the system
resembles many of its foreign counter-
parts. After passing their final exams,
school-leavers apply directly to the
universities of their choice and then
take part in a general selection process
based on their USE results. Only fed-
eral universities of Russia and some
specialised and leading institutes are
permitted to set their own entrance ex-
aminations (alongside the USE), which
may take a variety of forms, including
IAN VASLAVSKY
RIBR
written tests, exams and creative com-
petitions.
Since its inception in 2001, the
USE has generated a massive public
debate. The discussion reached a
fever pitch in 2008 when the USE
spread to all regions of Russia and an
overwhelming majority of high school
graduates began to take the exam.
The USE is backed by the govern-
ment, as well as some college heads
and lecturers. They argue that the
exam helps reduce corruption in
the university entrance system and
evaluates students knowledge and
skills more objectively than traditional
formats. Since the exam uses a wider
points scale (100 instead of 5), it is
possible to identify the best students.
Besides, the USE allows school-leavers
to enter universities located far from
where they live, since they are not
required to attend in person, but can
mail their results instead. In fact, the
exam is able to detect talented ap-
plicants in the regions who previously
would have been unable to sit for
entrance exams in the major cities.
The submission of documents is much
easier now as the results can be sent
to several universities at once, without
having to take entrance exams in many
different institutes.
The backers of the USE argue that its
key advantage is that it allows compari-
sons to be drawn between the quality
USE has provided an
opportunity for talented
students from regions to
enter prestigious institutions
without patronage.
PFUR continues
to enjoy global
reputation: Rector
Vladimir Filippov, rector of PFUR, talks about
the evolution of the university as a global brand.
What has changed in the way the Peoples
Friendship University of Russia (PFUR)
prepares its graduates as compared with
the Soviet period?
In Soviet times, 30-40 years ago,
higher education in all countries was
quite elite. Over the past 20 years,
higher education worldwide has
moved into the category of mass
education. PFUR was established
in 1960 as the Patrice Lumumba
Peoples Friendship University to
provide higher and professional edu-
cation for students from developing
countries. Its first class, comprising
students from 47 countries, gradu-
ated in 1965. Today it is considered
one of Russias leading institutes of
higher education with more than
29,000 students. Russian degrees in
engineering, physics, mathematics
and medical science continue to en-
joy recognition in the world because
in Russia we have state standards of
higher education. This is a guarantee
that specific subjects will be learned
and an exact number of academic
hours will be allocated to teach these
subjects.
Do you have enough staff to ensure
compliance with these standards?
We had a big problem with person-
nel in humanities, especially in the
1990s. As far as the scientific disci-
plines (mathematics, physics and
chemistry) are concerned, we had
some cushion. We, fortunately, had
enough qualified teachers in the sci-
entific and engineering disciplines.
To what extent is PFUR connected with the
real needs of society?
MUNZER HALLUM
RIBR
Students from 147 countries are
studying at PFUR this year. As the rec-
tor, I cant take into consideration the
needs of 147 countries. I have to give
fundamental knowledge to these
students, to enable PUFR graduates,
on their return to their homelands, to
work in public service industries, at
universities or in business.
What is the percentage of Russian citizens
among the students?
In the Soviet era, PFURs student
body was 70 percent foreigners and
30 percent Soviet citizens. Currently,
the situation is the opposite: we have
70 percent Russians and 30 percent
foreigners. Thirty percent of the
Russians attend for free, thanks to the
state budget and 70 percent of them
pay tuition and fees. This is a sign of
public demand for a good education,
in particular for a good knowledge of
foreign languages. We have foreseen
the needs and set a goal for ourselves:
each person to graduate from PFUR
should know at least two foreign lan-
guages.
Are any courses taught in foreign lan-
guages?
We have masters programmes in
English and Spanish. We have some
groups that are taught only in English
from the first academic year to the last
one, even in the medical faculty.
How are students admitted to PFUR?
There is a special commission under
the Ministry of Education and Science
of Russia that reviews the case of every
foreigner applying for admission as a
student for a free state-funded place.
The requirement for admission is a
score of at least 70 percent from the
results of the school curriculum.
ANASTASIA MALTSEVA
RIBR
Research shows that medicine, law and finance
are the most coveted careers for Russian youth.
Money, prestige and stability:
Mantras for popular professions
S
table career and incomes
this is the reigning mantra for
Russian parents who want
their children to pursue prestigious,
stable professions and specialist oc-
cupations.
The research conducted by so-
ciologists at the National Research
University Higher School of
Economics (NRU- HSE) also reveals
that creative professions are consid-
ered unsuitable because of the lack
of financial stability and difficulty in
finding future work.
According to the HSE research, the
professions considered most desir-
able for their children by Russian
parents include: lawyer (24 percent),
doctor (21 percent), economist and
accountant (19 percent), entrepre-
neur, military serviceperson, pro-
grammer and systems administrator
(14 percent), engineer (13 percent),
architect and designer (10 percent),
and translator (9 percent).
Very few (3 percent) of those sur-
veyed want to see their children rep-
resented in the creative professions
as performers, writers, or artists. Only
6 and 7 percent want to see them as
politicians, sportsmen, journalists,
and skilled workers.
In mass consciousness the profes-
sions of lawyer and economist are
associated with a stable income
and career opportunities, explains
Konstantin Fursov, a researcher at the
NRU HSE and the head of the research
project, titled Monitoring the innova-
tive behavior of the population.
And being a doctor has always been
considered prestigious work although
it has only now gained popularity
among the parents of matriculates.
With the development of private
medicine and voluntary health insur-
ance, doctors incomes have started
to increase. Against this backdrop, the
countrys authorities have increased
the number of funded positions in
Russian universities in the areas of
medicine, engineering and technol-
ogy, and natural sciences.
According to data provided by the
Russian Ministry of Education, in 2013
the total matriculation in the areas
of economics and management had
reduced to 19.8 percent.
The data also shows that a quar-
ter of upper classmen are oriented
toward the opinion of their parents
when it comes to selecting a profes-
sion and one in five make their deci-
sion about the future by relying on
information published in internet
resources.
An employment recruitment portal
analysed the preferences of upper-
classmen and discovered that they
choose a profession based on two
key parameters: income and the pos-
sibility of quickly and easily building a
career. The prestige of the profession,
social status, self-realisation, and the
opportunity to help others is impor-
tant for only one in ten matriculates.
Thats why there are not many takers
for courses in humanities.
SYSTEM: The USE, say its advocates, evaluates students knowledge more objectively
of education in different schools and
regions. The computerised checks of
the results save time and money as
they do not need hired verifiers.
Overall, the tougher requirements
of the USE, argue its advocates, are
leading to a higher standard of educa-
tion, better qualified teachers, and
improved educational literature. From
an international perspective, the exam
is similar to the final examinations sys-
tem in other developed countries (the
U.S., Israel, and others), which could
eventually lead to the recognition of
Russian school certificates abroad.
One of the most prominent adher-
ents of the exam is the rector of the
Higher School of Economics, Yaroslav
Kuzminov. Representatives of the
Ministry of Education and Science also
make frequent statement in support
of it.
Those negatively inclined include
students, parents, lecturers, and some
school teachers. Celebrities like Writer
Andrei Maximov and satirist Mikhail
Zadornov are among the most vocal
opponents of USE. The sceptics point
out that students tend to score lower
in the USE than they do in internal
school tests and in traditional exams.
The transition under the USE from a full
examination to a test-based system
is also criticised for disregarding the
ability to formulate a correct answer.
There have also been instances when
computerised checks of the USE er-
roneously marked correct answers as
incorrect.
The debate can go on endlessly, but
not many will contest that the USE has
led to a significant decline in corrup-
tion in the school graduation and col-
lege admissions procedures. Another
positive spin-off is that more talented
students from the Russian regions are
now able to enter prestigious institu-
tions without patronage.

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TOURISM: Kremlin museums are a mine of rare treasures like Imperial Crown, the Orlov Diamond, Coronation Trousseau and Monomakhs Cap
Get a feel of undying glory and grandeur
of royal regalia, crown jewels of Russia
A visit to the Moscow Kremlin opens a new window to the vanished world of Russias royal magnificence.
T
he royal regalia of Russias mon-
archs are kept in the Moscow
Kremlin the ancient capital of
the grand princes and czars. The most
famous item is the golden Cap of
Monomakh, also known as the ancient
Russian crown.
Monomakhs Cap
Monomakhs Cap is a conical, gold-
en headpiece, adorned with precious
stones and trimmed with sable fur.
The story goes that the golden skull-
cap was presented by the Tatar Uzbek
Khan to the Prince of Moscow, Ivan I
Kalita, in the 14th century.
The prince was a loyal ally and vas-
sal of the Tatar Mongols, who had
conquered ancient Russia a century
before his rule. A little over a century
later, Ivan Kalitas descendant, Ivan III,
defeated the Tatars and became an
independent monarch. After the fall of
Byzantium, the czardom of Muscovy
was left as the last remaining Orthodox
kingdom.
The Monomakhs Cap was used to
crown Russias monarchs. The last czar
to be crowned with Monomakhs Cap
was Ivan V, the elder brother of the
great reformer and first emperor, Peter
the Great. Ivan and Peter were jointly
crowned in one ceremony, with a copy
of Monomakhs Cap being made for
the younger of the two.
After this, the czars took the title of
emperors, and the ancient crown was
not used again until 2002, when a copy
of the crown was made for Russian
President Vladimir Putins 50th birth-
day and given to him as a gift.
Coronation Trousseau
Russian Emperor Peter the Great
died in 1725, without leaving a male
heir. Instead, Peter left two daughters
born out of wedlock Elizabeth and
Anna. After Peters death, the rule
passed first to his widow, Catherine I;
next, to his grandson; and, finally, to
his niece. In 1741, Elizabeth seized the
throne in a palace coup one of many
to occur in the 18th century.
When the new czaritsa was
crowned, a special coronation trous-
seau was sewn of smooth silver bro-
cade embroidered with gold. It is kept
today in the Armory Chamber of the
Moscow Kremlin. The dress was made
in Russia it was important to show
that the empress was not as fond of
foreigners as her predecessors had
been. The trousseau was cut according
to the fashion of the day: gigantic, as
SEMYON KVASHA
RIBR
From left to right: Coronation Trousseau of Empress Elizabeth. Monomakhs Cap (Coronation regalia of the czars). The Imperial Crown of Russia.
Maharajas gems
dazzle Russians
The Russian emperors regalia have
an Indian connection. It is not
accidental. The Russian tsars and
emperors regalia are kept in the
Moscow Kremlin, and plenty of them
are decorated with legendary gems
that came a long way from India,
says Ekaterina Shcherbina, curator of
the exhibition entitled India: Jewel-
lery that conquered the world at the
Museums of the Moscow Kremlin.
Besides, the organisers of the exhibi-
tion have been lately in cooperation
with European jewellers such as
Cartier, and, according to Ekaterina,
there is an evident Indian trace
in their works. The jewellery of the
Indian maharajas have always been a
symbol of exorbitant luxury and gran-
deur for Europe. Ekaterina opines that
compared to Europe the Russian at-
titude towards gems is more Oriental.
People admire the natural beauty of
gems, and not the rened preciseness
of their facets. Among Ekaterinas
favourite exhibits are a small jade
Taviz pendant incrusted with gems
(Victoria and Albert Museum collec-
tion, London), a golden Vanki bracelet
with a hammered design (Barbier-
Mueller collection, Geneva), a golden
hookah with incredible enamel setting
(Khalili museum collection, London),
an earring with a diamond ower, bell
pendant and pearl string (Al-Sabakh
collection, Kuweit). The exhibition
is attracting an unending stream of
visitors. In the Russian society Indian
culture is very popular, and a chance
to see the true masterpieces of the
jewellery with their own eyes makes
many people happy, says Ekaterina.
The curator says that she has learnt
a lot about India while preparing the
exhibition and that she would love to
visit outstanding Indian cities like Del-
hi, Mumbai, Hyderabad and Madurai.
Tracing the Majestic Design Kremlin factle:
Past and present
Originally, the word kremlin
means fortress. The most famous
kremlins are in Moscow, Kazan and
Astrakhan.
Moscow Kremlin was built in the
14th century. With the exception of
two centuries when St Petersburg
was the capital, Moscow Kremlin
has always been the seat of the
government. Currently, Kremlin
is the residence of President of
Russia.
Moscow Kremlin was an inaugu-
ration place and dynastic necropolis
of Russian tsars.
Moscow Kremlin consists of
renowned museums.
WEDNESDAY MAY 14, 2014
IN ASSOCIATION WITH ROSSIYSKAYA GAZETA, RUSSIA
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At the beginning of the summer on the embankments of the Moscow River the best
historical clubs of the world will showcase the reconstruction of the early XXth century.
These include The Victorian Military Society of 1837-1914 and the Great War Society
(England), Association du Poilu de la Marne (France), 33rd Division (USA), Deutsches
Rotes Kreuz (Germany) and Front-Line Eesti (Estonia).
THE FOURTH INTERNATIONAL HISTORICAL FESTIVAL TIMES & EPOCHS (AGES), WHICH IS DEDICATED TO THE
ONE HUNDREDTH ANNIVERSARY OF WORLD WAR I, WILL TAKE PLACE AT THE KOLOMENSKOYE HISTORICAL
AND ARCHITECTURAL MUSEUM AND RESERVE ON JUNE 7AND 8
In 2014, in honour of the 100thanniversary of the First World War the theme of the festival will
be the beginning of the twentieth century the era of the First World War and of the revolutions.
You will be able to see the rst Russian cinematography, to take part in the work of the rst
underground printing of ce and to try outts from various XIX-XX century fashion ateliers. You can
also try and win over the local strongmen in national Russian combat tournaments, to buy vintage
items in antique shops and to walk between the camps of the European army, becoming a witness
to the famous battles of the First World War.
This event will be held with the assistance of the Moscow Committee
for Tourism and the Hotel Industry and the City tourist portal
travel2moscow.com
WAR GAMES
Fans of military history will have the opportunity to see the ancient battle of
armoured cars, to touch models of combat airplanes and eld guns and to
even be trained by experienced gunners. The highlight of the festival will
be the reconstruction of one of the key battles of World War I - the Brusilov
Ofensive.
THE RUSSIAN SPIRIT
Those who came to Moscow to witness the true Russian spirit will be able to
visit a real street gipsy circus with a trained bear, acrobats and jugglers.
Rejoice, there is free admission to the festival.
RUSSIAN
COLOURS
THE ARRIVAL
OF THE ROYAL
ROMANOV FAMILY
RECONSTRUCTION,
GYPSY MUSICIANS,
STREET CIRCUS AND
THEATRE, COW AND
GEESE TRADE, AS WELL
AS CHASTOOSHKI
SINGING
PEACE
Fashion shows with
dresses from the
beginning of the
20th century, a retro
car exhibition, street
cinema, picnic a la
russe
and retro music band
concerts
WAR
Strikeball
shooting-range, great
military operation
reconstructions, war
nurse courses and a
huge artillery
exhibition
PEACE
Holiday guests will be able
to see real power miracles of
one of the most mysterious
scientists of the XXth
century Nikola Tesla. By
the way, some believe that it
was his experiments, which
contributed to the emergence
of the so-called Tunguska
explosion in Siberia, better
known in the country as the
Tunguska event.
wide as a persons height.
Elizabeth was considered one of the
most beautiful women of her era, and
she adored dresses. When she died
20 years after being crowned, she left
15,000 dresses, a chest of stockings,
an empty royal treasury, an unfinished
Winter Palace (the future building of
the State Hermitage) and colossal
debts.
Imperial Crown of Russia
The Imperial Crown of Russia, also
known as the Great Imperial Crown,
was used by the Emperors of Russia
until the monarchys abolition in 1917.
The Great Imperial Crown was first
used in a coronation by Catherine II,
and was last used at the coronation of
Nicholas II. It survived the subsequent
revolution and a temporary sojourn in
Ireland, and is currently on display in
the Moscow Kremlin Armoury State
Diamond Fund. The crown is adorned
with 4936 diamonds arranged in
splendid patterns across its entire sur-
face. Bordering the edges of the mi-
tre are a number of fine, large white
pearls. It is also decorated with one of
the seven historic stones of the Russian
Diamond Collection: a large precious
red spinel weighing 398.72 carats.
The Orlov Diamond
The Armory at the Moscow Kremlin
is home to Catherine the Greats impe-
rial scepter, which is set with a huge,
green-tinted diamond, with 180 facets
and a weight of 189.6 carats. This
legendary diamond was discovered in
India at the end of the 17th century.
At the end of the 18th century, it was
bought by the Armenian jeweler and
banker Ivan Lazarev, who was in the
service of the Russian government. In
turn, the diamond was purchased from
Lazarev by Count Orlov.
Alexei Orlov was one of Catherines
favourites and a patron of the sciences.
He presented the diamond as a gift
to the empress, and she ordered it to
be set in her coronation scepter and
named in honor of the count.
Turban crown. Lucknow, the late XIXh
century.The Khalili Collection, London.
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