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Sweet Rubles

16 April 2010

Apartment moving

I recently moved from one apartment to another in Moscow, and I would like to contrast the experience here with that in the United States. There were two stages I want to describe: finding the new apartment and moving to it. The former was costly and time consuming, while the latter was quite simple and inexpensive.

Most apartments in Russia are owned by individuals – meaning the apartments in one building are all owned by different people – somewhat like the condominium concept in the States. So when you are looking for an apartment, you cannot simply go to your desired neighborhood seeking “for rent” signs (although there are flyers at bus stops advertising apartments or rooms, but I think this is a bit dodgy). While there are some websites on which owners advertise directly, most people who are offering an apartment use an agency, and thereby if you want to rent an apartment for yourself, you should also use an agency, which usually charges one month’s rent as commission. This means there are four people involved in the transaction: the owner, owner’s agent, renter, and renter’s agent. I spent more than a month rejecting bad offers from my agent, but after I nudged up my target price a bit she finally turned up something nice in the neighborhood I wanted for a reasonable price. Well, reasonable for Moscow, which has sky-high real estate prices; it is among the top six most expensive cities in the world for housing, according to various publications. Prices to buy in Moscow can range from (these are very quick, “back-of-the-envelope” figures) $4000 per sq meter for basic to $10,000-$18,000 per sq m for just fairly nice, depending on quality and location, of course. During the economic crisis, rental and purchase prices in Moscow came down only in the elite housing segment. Prices for apartments in the low to mid-range stayed mostly the same, and continued to rise a bit due to inflation (which has eased to below 10% with the economic crisis).

When signing the lease, one usually has to pay the 1st month’s rent and either the last month’s rent or a security deposit equal to that. Thus, along with the agent commission, you are shelling out three months rent all in one shot. In Russia you usually must make these sorts of payments in cash or by bank transfer (like a wire transfer or EFT); there are no checks or bank drafts. It is a little nerve-wracking to carry around that kind of cash, just in case you find your dream apartment that day and need to sign the papers immediately before someone else snatches it. In my case, after signing the lease agreement, receiving my keys and handing over several thousand dollars in cash, the owners of my apartment asked me if I would prefer to pay the monthly rent in cash or by bank transfer. While making a bank transfer requires a visit to my bank branch, I find it preferable to meeting with them each month to pay in cash (which I did at previous apartments), as I don’t have to set a specific time to do it. There is a branch of my bank (well, the bank through which my company pays my salary, a story for another post) in my neighborhood that is open until 8pm on weekdays and till 5pm on Saturdays.

Once I found my new abode, moving was a breeze. Although I don’t have a lot of stuff, it was more than would fit in a car, so I looked into getting a van or similar. I was ecstatic to discover that I could get a truck with driver and one mover through Gorodskoi Taxi for $60 for two hours (but note that the driver only drives, he does not carry anything, hence I needed at least one mover). I use this taxi company frequently, so I already knew their service quality, and I was able to order the truck and mover through their website. The last time I moved in the States, the truck alone cost more than $60; I drove it myself and imposed upon friends to help me move, something I have done too way many times – my eternal gratitude to Brett, Brian and Dan, who helped me with countless moves (and with an honorable mention Chad and John).

09 April 2010

Is free sauce a right? How about SIM card portability?

My gf was slightly bemused when I lamented that I had been charged for ketchup to go with my fries in a restaurant. I think it is understandable when you order additional sauce that is not part of a menu item, or if you are in a McDonalds or similar, but usually in Russia if you are at a regular restaurant, if you order french fries and ask for ketchup, they just bring you a bottle or a small dish. However, recently I was at Bilingua, a cool artsy-bohemian restaurant/bookstore/live music venue to see some acquaintances' play (a band called Karamadjongi - don't ask me what it means). I ordered juice and french fries. When the fries came, I asked for ketchup, which was promptly brought in an ornate serving dish with handle on a saucer. When the bill came, I was shocked that I had been charged $1.00 for this ketchup! But since the service was excellent - quite unusual in Moscow - and I had ordered very little, I did not complain to the waitress, instead later complaining to my gf, who responded, "That is an American thing, having ketchup with fries, so of course you have to pay extra for it." But this is not the case at other establishments here. Perhaps they charged me for the ketchup because I ordered so little - maybe if I had ordered an entree they would have provided the ketcup for free.

She joked that I was complaining about Russia too much...but I said I often remark on things that I like in Russia that we don't have in the States. For example, I note the relative freedom and low cost of mobile phone coverage. Unlike in the States, in Russia you can buy a SIM card by itself and use it with whatever phone you like. Contracts are not required, you can pay as you go, which most people do. I really like this aspect of Russia - in the States when getting cellular service, it's a big deal, you have to be sure that you want this exact phone, with this type of service, from this specific carrier for 1-2 whole years! What kind of free country are we running there! When I left for Russia I had 3 months left on my cellular contract, so I called them and asked them to cancel the service, but of course I understood that I would need to pay for the remaining three months regardless. They said that I could not cancel it ahead of time, and that they provide service in Russia - for $4 per minute! I asked if they really thought I would spend $4 a minute - I'm moving there, not going there for a couple of days! They again said I could only cancel when the contract ended. My friend Brett had to spend 2 hours getting them to do this, since I was out of the country. I should note that I recently discovered that T-Mobile has a decent pay as you go plan in the States, which is nice for someone like me who is only there for a couple weeks at a time. I had to buy a phone with it, but they offered one for $15, so not a big deal.

Happily in Russia I have a Russian pre-paid SIM that I put in an iPhone (which is not limited to only one provider here) and it costs about $30 a month for basic service. If you want a data plan and internet access, then its about $50. Nice. And I can change phones or providers anytime I want. Although, buying an iPhone costs more than in the States (even more than the US price without an AT&T contract).

So, that is my rant today on some pros and cons of each country. What do you think: Is free sauce or SIM card portability more important? I choose SIM card portability, comrade.

02 April 2010

After the subway bombings

It was an interesting week in Moscow after the subway bombings. It was a bit surreal for me, as up until 2 months ago, for several years every day I rode the subway line (the red, or sokol’nicheskaya line) on which the blasts occurred (and at the time they occurred). From my point of view inside Russia, Foreign Policy magazine published the best take on the aftermath of the story: http://www.foreignpolicy.com/articles/2010/03/30/the_moscow_bombings_dont_matter

With my blog being focused more on the economics of everyday life, I will turn to more prosaic, yet important details. Things returned to normal quite quickly, and it appears that Moscow reacted with amazing efficiency to the tragedy. One victim recalled that there were already ambulances outside the subway when he emerged seeking help (http://www.themoscowtimes.com/news/article/if-i-hadnt-gotten-out-id-be-dead/403099.html ). The city dispatched a multitude of free busses to help transport people diverted from subway, which had sections temporarily shut down; the Moscow metro carries anywhere up to 8 million passengers a day, with the red line carrying over 1 million, making it the 4th busiest line. The subway had resumed full service by evening hours.

Both the federal and city governments announced compensation payments for those injured or to the families of those killed in the attacks. A colleague who braved the commute following the blasts related that he saw the entire range of human reaction that you would see anywhere else in the world, ranging from sympathetic, cynical, hysterical, incredulous and finally merely annoyed at the massive inconvenience of the stalled morning commute.

I think Muscovites’ biggest reaction had to do with taxi drivers: there were accounts that they had charged 2-3 times more than usual to stranded passengers trying to get to work. It was such big news that Patriarch Kirill of the Russian Orthodox Church even publicly condemned the behavior. However, numerous people then came forward with tales of kind drivers ferrying people for free, and many people donated blood to help the victims. As a friend of mine said, these kinds of events bring out both the best and worst in people.

If you would like to speculate about the city’s reaction from automobile traffic, I can give you a recount: A friend who drives to work described the morning commute on Monday as busier than usual, with the evening commute eerily peaceful. Tuesday’s traffic was light all day, and Wednesday brought heavier than normal volumes all day.

25 March 2010

The mystery of friendly employees

Tireless readers of my blog may remember my post from a few years ago when I described a tour of the US Embassy in Moscow and a visit to the "Starbucks" there - the only one in Russia at the time. As it turned out, it was not a real Starbucks, but rather a coffee stand that used Starbucks beans.

Fortunately for me (as a former Seattle resident addicted to espresso drinks), Starbucks has since been sprouting coffee shops in Moscow at rates similar to their expansion elsewhere. They joined an already bustling local coffeeshop market, but differed in the convenient "takeaway" or "to go" cups. Walking down the street with a Starbucks coffee cup elicits incredulous stares from most people, as Russians view sitting down to coffee or tea (and accompanying tasty treats) as a luxurious event to be savored. Unfortunately, while Russians excel at providing all kinds of tea (and perhaps due to this tea preference) coffee in Russian-born coffeeshops is equivalent to instant coffee. As the saying goes, people from Seattle only go to Starbucks when away from home (how I miss Uptown Espresso), and so I rejoiced at the arrival of Starbucks. It tastes just like it does anywhere else, and they have soy milk!

On to the economics: while a tall soy mocha in the States costs around $3.50, the same in Moscow costs more than $6!!! That's right, more than six dollars. And I pay it, gladly. I am not the stereotypical expat that tries to recreate the home country here, but in the case of coffee, I gotta have it. Granted, at these prices, not every day, although my Russian colleagues find it funny that I go there so frequently.
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I must applaud Starbucks for a truly amazing achievement: they have convinced their employees in Moscow to be friendly to the customers! Anyone that has been to Moscow knows that customer service is an unknown concept here (but you can find very friendly service elsewhere in Russia). I should note they were not able match this achievement in North Dakota; my visit to a Starbucks in north Bismarck several years ago was most unpleasant, the employees there were really annoyed to have to deal with these customer-type people that kept interrupting their conversations.

In the coming weeks I hope to unravel the mystery of how Starbucks gets their Russian employees to be friendly. On a side note, in this post I may have offended Moscovites and North Dakotans. Being that I am sort of both, I believe I can get away with it. Anyway, sometimes the truth hurts.

29 July 2006

Bulgarian Customs

I recently spent three weeks in Bulgaria. While it is a popular vacation spot, particularly the Black Sea coast, I was there to get a new visa in order to re-enter Russia. When one changes the type of visa (as I was changing from student to commercial) one must leave the country in order to receive the new visa. My student visa ended June 30, and my commercial invitation would not be ready until the 2nd week of July, so I had to leave Russia for a while. I’m very fortunate to have a good friend in Moscow, Nick, who is from Sofia, and who welcomed me to visit his family, as he is spending the summer there. I had a great time with them.

I also have another Bulgarian friend in Moscow, Peter, who was getting married during this time in his hometown in Bulgaria, called Montana, by the way, honest. His wife, Lena, is Russian; they had already married last year in Russia, but this event was for his family and friends in Bulgaria. I was very honored to be invited to their wedding (and Nick was the best man). Not speaking much Bulgarian, I had some trouble following what was going on, but I will try to describe the wedding customs.

Initially there was some debate how to start the wedding, because usually the groom has to visit the bride’s family and buy her from them. Since the bride’s family was not in attendance, they decided they would invoke another custom, where the bride and groom disappear before the wedding, and everyone is left to wonder where they are, what is going on, and then the best man eventually turns up with them. There was a particular wedding dance that was done when they returned, and was repeated about once every hour (from 5pm to midnight). At the reception there was a small carpet covered with roses that the groom carries the bride over; the best man and maid-of-honor then roll up the carpet and present it to the happy couple. There are of course the toasts and various first dances. The custom of gifts is interesting; later in the reception, the bride and groom visit each table to greet all of the guests, clink glasses, and receive their gifts. The best man, maid-of-honor, and family follow after the couple also greeting the guests and clinking glasses, as well as collecting the gifts as they are passed back by the happy couple. Unlike in America, the happy couple must stay at the reception until the very end.

Aeroflot - not as bad as you heard

I recently flew on Aeroflot for the first time – a round trip. I had heard many horror stories from friends who had flown it, but I found the experience to be quite comfortable. Compared to the airlines in the States, the seats were softer and there was more leg room. The flight crew was polite and helpful, as well as the ticket agents. Also, my dear readers may not believe me, but the takeoffs and landings on both legs of the trip were among the smoothest I’ve ever experienced. When we landed in Sofia for example, I was reading and I thought the bumps I felt were part of the descent through air pockets; however I looked up to find we were on the ground taxiing! The only thing that had me worried was how Russians applaud upon landing. Maybe the smooth flights I experienced were unusual?

09 June 2006

Where the Day Takes You

Living in Moscow and being involved with Rotary can bring unexpected and inconvenient, but also rewarding experiences. My host Rotary club asked my Rotaract club to help with a small group of Rotarians visiting from Greece. Information was sketchy, but there were four people coming for some fundraising dinner, and there was supposedly the son of an ambassador in the group. Further details there were not, we’re getting info from the secretary of a Rotarian who is handling the visit. I volunteered to meet them at the airport, and offer to show them the city, invite them to our Rotaract meeting; simply find out what help they need in Moscow.

On Tuesday mid-day I make my way out to the airport, an hour and a half by subway and bus. Rotary has hired a small van and driver; I am to meet him at the airport and we will attend to our guests. I meet the driver and we wait for the passengers from Athens to exit passport control and customs. We wait for an hour, no one. I call the gal from our Rotaract club who coordinates our international activities, to tell her what happened. She contacts the above-mentioned secretary and finds out that a car from the French embassy has picked up the guests. I am to take the van to the embassy, where they are waiting for me. Fortunately, the driver, Anatoli, and I are getting along quite well, and we have fun chatting as we make our way through famous Moscow traffic jams to get to the embassy. He tells me that he has been instructed to await instructions from the guests, whether they need him or not after the embassy. So I ask him to wait as I go into the embassy, I will call him on his cell phone to give him an update.

Next thing I know I am sitting with these Rotarians from Greece and the wife of the French Ambassador to the Russian Federation in their private section of the embassy drinking very good espresso. It turns out these Rotarians are all French, but live in Greece and have formed a French-speaking club there. Then in walks the Ambassador himself. Quite an exciting thing for this poor kid from North Dakota who is studying international relations. Being a Rotaracter, however, I don’t feel overwhelmed, and am grateful for the timing, as when they asked me what I’m doing in Moscow, I can say I was studying but will soon start work with an investment bank, which doesn’t sound too shabby. Something I couldn’t have said a week ago.

The Rotarians ask me if I have any plans for the evening, they are looking for something to do. I invite them to our Rotaract meeting, and they are very pleased to accept. We have a few hours before the meeting, and they ask if we can see a bit of Moscow, maybe go to Red Square. I reply that this is no problem, I have a van waiting outside.

You just never know where the day will take you.

07 April 2006

Sushi and Martinis

Sushi and martinis are extremely popular in Moscow. Of course, there are restaurants offering just about every cuisine of the world here, but currently, especially among the young professionals, it’s sushi that is the default. Sushi is so ubiquitous that a Russian friend asserted that it can now be considered Russian cuisine.