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Business

Technology Cinema pioneered the 3D project; now pay TV cashes in

A dazzling new dimension in armchair entertainment

NEWS IN BRIEF

Strengthening rouble faces the scrapheap

Russia’s fi rst deputy prime minister, Igor Shuvalov, says that Russia may scrap the rouble and introduce a common currency with Be- larus and Kazakhstan as the nations broaden their alliance and seek to reduce their dependence on the dollar, reports The Moscow

Times.

The newspaper report quot- ed Shuvalov as saying that he wouldn’t rule out a tran- sition to a common curren- cy union with these coun- tries.

In the meantime, on March 24 the Central Bank of Rus- sia was forced to ease its trading band for the 12th time in three weeks, after the rouble strengthened against the dollar to the highest level in almost two months on the back of climbing oil prices, writes

The Moscow Times.

The newspaper says that the rouble added 0.7pc against the dollar to leave one US dollar worth 29.6 roubles in Moscow trad- ing.

Russo-British trade still booming after 455 years

Trade between Russia and Britain has been booming in recent years and the recent crisis has proved to be little more than a hiccup in the nations’ commercial ties. In the fi ve years prior to the crisis, mutual trade had in- creased almost fourfold; in 2008, trading volume reached $22.5bn, of which $15bn was Russian exports to Britain. Russia’s deputy economic development minister An- drei Slepnev says that rela- tions with Britain have been “spotty”, but not with regard to trade: when the crisis hit, commercial activity be- tween Russia and the UK fell less than that with other countries.

Russia and Britain have

From A W

onderland to Ty Story 3D

vatar to Alice in o

and beyond, it’s been the the cinema story of the year. Now Russian television is adding depth to its output.

ALEXANDRA PROKOPENKO

ITAR TASS: SPECIAL TO RUSSIA NOW

In February 2010, Rus- sia’s General Satellite and Platforma HD and Ko- rea’s Samsung Electronics announced the launch in Russia of a joint 3D broad- cast. “Along with America’s DirecTV and Britain’s SkyUK, the Russian project is a pioneer in developing 3D television,” said Nikolai Gy- ubbenet, general director of Platforma HD, a leading pay- TV company. The average Russian watches far more television than his or her western European or American counterpart, ac- cording to Russia’s Cable TV Association. Growth in per-

sonal incomes combined with scepticism about state- controlled channels, has made pay TV increasingly popular. “Various statistics indicate that the volume of the pay-TV market in 2009 exceeded $1bn,” added Mr Gyubbenet. By early 2009, the number of users of pay TV had topped 19 million (14pc of Russia’s pop- ulation), according to iKS- Consulting. In Moscow, almost every third family now owns an HD television, and the cost of HDTV televisions drops every year. Today, most televi- sion sets sold in Russia have the HD format. And it would seem that interest in HDTV has not been dented by the severity of the recent fi nan- cial crisis. Production of 3D television equipment has started in the Kaliningrad region. Accord- ing to deputy prime minister Sergei Ivanov, who recently

In Russia, the HDTV market is far from sat- urated, while the bat- tles for 3D subscribers haven’t even begun

visited the plant, the cost of the 3D television, receiver and glasses is still fairly high. “But as the economy devel- ops, and people’s interest in quality grows, this market will expand,” said Ivanov. “In Russia, the HDTV market is far from saturated, while the battles for 3D subscribers haven’t even begun,” said Maxim Savvatin, an analyst at iKS-Consulting. “They will take place on the fi eld of content, where the choice in 3D will be even smaller than in HD, and over access to service.” Mr Gyubbenet thinks that, at fi rst, demand for 3D will be from those interested in tech- nical innovations and status

buyers. “The potential mar- ket is estimated at 200,000 to 300,000 sets,” said Vyacheslav Yefimov, director of the fi- nance and investment de- partment at Incor Alliance. How quickly the new tech- nology becomes widespread will also depend on content. Giants such as Sony, Pixar and Disney have stated that they are interested in 3D, and experts estimate that by 2013 the 3D market will total $15.5bn. Technologies for making an existing picture 3D are ex- pensive, but it is possible to rent the equipment and soft- ware. Russian suppliers of content appear ready to get involved in the new market after satellite technologies passed the 3D test last year. Then, British subscription channel Sky broadcast a Keane concert live in 3D, while in France, the Mozart opera Don Giovanni was broadcast in spacialised

sound and 3D video-images from the Rennes Opera. Today, a number of Russian companies are participating successfully in international projects connected with 3D.

Mr Ivanov recently an- nounced that in April a gala ballet performance, featur- ing Maya Plisetskaya, will be broadcast throughout Eu- rope in 3D.

Dogs in space – a 3D odyssey

vatar on

Following the popularity of James Cameron’s A

Russian screens, the country’s own Centre of National Film (one of the largest film studios during Soviet times) has pro- duced the first modern Russian animation in 3D.

Belka and Strelka is based on

the true story of two dogs who were sent into space in 1960: the release of the cartoon marks the 50th anniversary of their flight. During the early stages of the Soviet space pro- gramme, the animals were sent into space to test life-support systems aboard spacecraft.

been trading for more then 455 years, apart from a brief two-year break following the 1917 Russian revolution, and this year marks the 90th birthday of the Soviet Trade Delegation in Great Britain which stepped smoothly into the imperial shoes. “Britain is a major partner of Russia in terms of servic- es, the fourth largest inves- tor in Russia, and the 11th largest trading partner among foreign countries,” says Mr Slepnev. “Now the crisis is coming to an end and there is potential for growth beyond the pre-cri- sis level.”

See the full article at

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PUBLIC DOMAIN

03

The real Belka and Strelka re- turned safely to earth, and Strelka later gave birth to puppies. One of the puppies was sent to Caroline Kennedy (daughter of then US President John F Kennedy) as a gift by Soviet leader Nikita Khrush- chev.

In the cartoon, Belka performs in the circus and dreams of fame and fortune, while Strelka is a homeless dog dreaming of one day finding her father. Today, both dogs (now stuffed) are on display at the recently renovated Cosmonaut Museum in Moscow.

Etching of navigator and explorer Richard Chancellor, the first Englishman to establish official relations with Russia

Mobile phones and internet to be introduced on domestic fl ights

Sustainability Can a remote Siberian town become a leader in renewable energy?

Closed city opens to nuclear opportunity

Zelenogorsk, a remote centre of nuclear technology, is a closed city with big ambitions. A French multinational has arrived with new technology and an eye toward renewable energy.

ARTEM ZAGORODNOV

RUSSIA NOW

A Soviet-era nuclear plant in a closed city in Siberia is making a bid to become a player in the future of sus- tainable energy. Since 1995, Zelenogorsk, a former closed city, has proc- essed fuel for the nuclear reac- tors that supply many Ameri- cans with their electricity. Now it hopes that embrac- ing a French company with

new technology could lead to a more signifi cant role. During the Cold War, such cit- ies, usually built around a sin- gle factory focusing on de- fence production, could not be found on any map, yet existed by the dozen across the former USSR.

In a striking departure from this model, French multina- tional Areva has recently opened a commercial facility in Zelenogorsk for the conver- sion and storage of depleted uranium, the fi rst of its kind in Russia, and Areva’s first ex- port of its technology. Zelenogorsk’s central square is still dominated by a statue of Lenin and looks no differ- ent from any other well-kept provincial Russian city. Yet elements of Zelenogorsk

Phenomenon of closed cities

In Soviet times, Zelenogorsk was called Krasnoyarsk-45, which was in fact the address of the post office in the re- gional capital Krasnoyarsk, some 120 miles away. Zelenogorsk was founded in the mid-Fifties as a facitilty for en- riching uranium. The location was chosen ran- domly – but deliberately far away from any national borders – and the engineers who de- signed it were sworn to secrecy for the rest of their lives. Although isolated from the out- side world, the residents of such closed cities enjoyed lifestyles,

and consumer goods, well above the Soviet average. Following the collapse of the USSR, then president Boris Yeltsin allowed the cities to re- vert to their historical names, but demand dropped for their services. Zelenogorsk was able to survive the turbulent Nineties by devel- oping its own brand of home appliances. Today, the number of closed cit- ies officially existing in Russia is listed as 42. They are adminis- tered either by the defence min- istry, the atomic energy agency or the space agency.

remain clearly frozen in time: one is struck by the absence of foreigners and the spacious- ness of downtown streets. In the Yolka (Fir Tree) restaurant, Eighties music hums quietly while the waiters look as if they’ve come straight out of a Soviet fi lm. The drop in uranium enrich- ment during perestroika led to an almost 30pc drop in pro- duction in such cities as Zele- nogorsk, forcing residents to seek other means of subsist- ence. To survive the drop in production, Zelenogorsk switched to consumer goods production, developing its own brand of home applianc- es.

Uranium enrichment

The Zelenogorsk Electro- chemical Plant was designed as a critical link in the proc- ess of nuclear power produc- tion. Once uranium is mined out of the ground, it under- goes a refining process fol- lowed by fl uorination that re- sults in conversion to a gase- ous state. This gas, UF6, is then transported to facilities like the plant in Zelenogorsk, where it is enriched by in- creasing the percentage of the isotope U-235 compared to the major isotope U-238. Zelenogorsk’s technology is state of the art for uranium en- richment and uses a large bank of centrifuges spinning at more than 1,500 revolutions per second to separate U-235 from U-238. After enrichment, it is stored in gas cylinders and eventually converted into an oxide powder and shipped to

Despite changing times, a statue of Lenin still dominates Zelenogorsk’s central square

nuclear power plants. These highly technical centri- fuge units keep Zelenogorsk a closed city to this day. While nuclear reactors require low- enriched uranium, nuclear weapons require highly en- riched uranium. The same centrifuge facilities in Zele- nogorsk have been used to downgrade the highly en- riched uranium into low-en- riched uranium for use in the United States civil nuclear in- dustry. Since 1995, this urani- um has been supplied to make fuel for their fl eet of nuclear reactors, which generate 20pc of America’s electricity. Avera CEO Michael McMur- phy opened the new facility for the conversion and storage of depleted uranium tails,

mainly U-238, left over from the enrichment process. This new technology will allow the U-238 to be safely stored in large quantities for extended periods of time.

“When economic and techno- logical opportunities dictate, it could be used for a variety of purposes in the future,” said Mr McMurphy.

A closed cycle of energy

This resource could be one of the keys to sustainable – and renewable – nuclear energy. According to experts at the In- ternational Atomic Energy Agency, U-238 is a fertile ma- terial and, in the blanket of fast reactors, it can capture excess neutrons, which con- vert the uranium to plutoni-

um. The plutonium can be re- cycled in fast reactors, thus closing the nuclear fuel cycle. The result would be more en- ergy value, and thus more sus- tainability, than is currently the case. According to Randy Beatty, group leader of the Interna- tional Project on Innovative Nuclear Reactors and Fuel Cycles at the IAEA, “Such technology is at least several decades in the future. “Such a reactor and the fuel cycle facilities would have to be operated remotely due to the high levels of radiation from the fi ssion products in a fast reactor.” Zelenogorsk and Avera hope to be first in line when the technology is ready.

Russian air companies will soon join Air France, Rya- nair, Qantas and Emirates in allowing passengers to use communication devices during fl ight. International and long-distance telephone operator MTT, which also holds a virtual operator li- cence, has signed a contract with Sibir Airline, Russia’s second biggest air carrier. MTT, together with Sibir, is holding a tender to procure equipment that will make it possible to use mobile phones and surf the net in flight without affecting flight safety, said MTT spokesperson, Irina Koles- nikova. Aeroflot, Russia’s leading

airline, is in the process of choosing a future partner from among the “big three” mobile phone operators in Russia – Beeline, MegaFon and MTS – says Oleg Mikhailov, adviser to Aero- fl ot’s director-general. The airlines and mobile phone operators are still un- sure about the scale of in- vestments required to pro- vide the entire Russian fl eet with in-fl ight mobile com- munication equipment. As- sessments vary between £135,000 and £340,000 per plane. The cost of the servic- es will match international standards and it will cost around £3.50 per minute of

conversation. IRINA SUKHOVA

GLOBAL

RUSSIA BUSINESS CALENDAR

WEALTH MANAGEMENT & PRIVATE BANKING: RUSSIA & CIS

APRIL 13-14, MARRIOTT GRAND HOTEL, MOSCOW

The global crisis has certainly affected the private banking in- dustry, but at the same time there are now many new oppor- tunities, especially in the emerging private banking markets, such as Russia and neighbouring countries. Such opportuni- ties, as well as the challenges of developing a private banking and wealth management business in these areas, will be dis- cussed at this conference.

› www.adamsmithconferences.com

RUSSIAN PHARMACEUTICAL FORUM

MAY 19-21 CORINTHIA HOTEL, ST PETERSBURG

Experts and CEOs in the Russian pharmaceutical sector share their thoughts on the current market and future develop- ments. Topics for discussion include, reform and regulatory is- sues, strategic planning, pricing and distribution.

› www.adamsmithconferences.com

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Global Calendar

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NIKOLAY KOROLEV

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