Back in Business

Many, many apologies to all those who have wondered where the hell I’ve been.  After days of trying everything I could think of to no avail, my technical problems suddenly resolved themselves and everything is now back to normal.  I still have no idea what happened.

So, what have I had to say for myself during the outage?  Firstly, I never got round to posting this picture of a section of the market opposite my apartment burning fiercly one night late in December.

Fire at Dom Torgovli Market, Yuzhno-Sakhalinsk

This must have been pretty harsh on the stall owners who would have lost their livelihoods so close to New Year.  Sadly it isn’t very surprising either.  I went into that building a week or so before and, like in most of these types of markets, I saw heaters, freezers, fridges, and other electrical equipment plugged into overloaded multi-sockets which were probably made in China and don’t conform to any kind of standard.  Last year we had a major fire in a similarly arranged marketplace, which turned out to be electrical.  Perhaps the Russian government would be better directing its inspectors’ attention towards genuine electrical and fire hazards rather than forcing only western companies to make sure all employees undergo electrical training in order to operate a kettle or laptop, and sending them on useless “fire safety” courses.

So, 2007 came to an end with a roaring blaze, I bought a seven-foot tree to furnish our living room, and I had some time to reflect on the year gone by.  I feel a little bad about saying this, partly because others’ found the last 12 months rough going and partly because I don’t want to tempt fate, but 2007 was probably the best year of my life.  Everything seemed to go well.  My job and career took off in this wild corner of Russia, and I developed the essential contacts for the future which had escaped me completely in the middle east, not to mention gain an awful lot of experience.  My marriage to Yulia turned out to be lots of fun, both our social lives took on the characteristics of a student freshers’ week, and we managed to get three tropical holidays in the sunshine plus one or two trips to Moscow and St. Petersburg thrown in.  I found that I have some excellent friends in Sakhalin, many of whom I will surely stay in touch with long after they or I have left, and they have made my time here such enormous fun.  I’ve rarely been bored, having found myself joining in on mountain bike rides, hill-walks, snowmobile trips, and – more usually – marathon drinking sessions ending in daylight at 7am.  In summary, if 2008 and every subsequent year can be as good as 2007, I will happily die at 50.  Actually, better make that 60.  Or 70.  Anyway, I feel extremely lucky.  Unfortunately with my not going back to the UK last year I didn’t get to see some exceptionally good friends of mine, plus I haven’t seen any of my family since our wedding day, but this was a price I always knew I’d have to pay.

Anyway, enough of that: here are some pictures taken over the New Year holidays.

New Year Ice Sculptures, Victory Square, Yuzhno-Sakhalinsk

New Year Ice Sculptures, Victory Square, Yuzhno-Sakhalinsk

Victory Square at New Year, Yuzhno-Sakhalinsk

Ice slide, New Year, Yuzhno-Sakhalinsk

Skiers, New Year, Yuzhno-Sakhalinsk

LNG Export Jetty, Prigorodnoye, Sakhalin Island

Mountains, Yuzhno-Sakhalinsk

Mountains, Yuzhno-Sakhalinsk

My latest toy: Arctic Cat ZR 600 EFI. Great fun!!

Mountains, Yuzhno-Sakhalinsk

An extreme sportsman, getting ready for the rush.

View of Yuzhno-Sakhalinsk from the ski-slope at Gornii Vozdukh.  Our apartment is indicated by the yellow arrow.

2008 is already shaping up to start with a bang.  Next week I am due to go to Angarsk, Siberia to look at a pipeline, where yesterday’s temperature was -55C.  Now that should be fun.  I will be spending a day in Irkutsk though, which I’m looking forward to.  The first two weeks of February we are going on holiday to Vietnam, which I’ve heard is warmer than Angarsk.  After that, I am hoping to go to Kazan’ on business, probably spending a few days in Moscow on the way through.  In early March there is a good chance I will have to go to Kazakhstan for a week, then late March is likely to feature a trip to Houston.

As usual, I’ll take my camera along with me and keep you all posted.  Oh, I amost forgot!  There is one more photo which was taken over the holidays, filed under “Don’t Ask”. Continue reading →

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A Dangerous Gamble?

Anyone who has been to Russia will have noticed that the newest, smartest, and often most substantial buildings in the country tend to be casinos.  I used to wonder where people got the money to gamble enough to support half a dozen casinos in a town, before I realised that by skipping on things like meals and other luxuries, it is quite possible to throw most of your wages down a slot.  Yuzhno-Sakhalinsk is no different from the rest of Russia in this regard, and probably features more casinos than other cities because of the large Korean population, who seem to have inherited their love of gambling from their brethren back in the old country.  I had visited a few casinos, not to gamble so much as a rouble, but because some of them operate 24-hours with a restaurant attached – perfect for getting a load of Korean food at 7:00am when you’ve just staggered from a nightclub into blinding daylight. 

Anyway, word on the street, or rather, what my wife heard in a club last night, was that Putin has brought in a new law which will outlaw casinos across Russia, limiting them to only a few cities.  I have no idea whether this is true or not, and if you are interested I suggest you keep an eye on blogs which are much better at covering political announcements eminating from the Kremlin than mine.  But one thing is certain, or so my wife tells me, and that is several of the casinos across the town have been shut down recently.  In yet more unsubstantiated, heard-at-the-smoking-area developments, the only casinos which will be allowed to remain open are those owned by the governor of Sakhalin, thus forcing all business into his arms.

I must stress, I have no idea if this is true or not, and I am idly speculating here without bothering to do any proper research.  But the casinos have closed for some reason, and others remain open for business.  I this is indeed what is going on, I cannot think this will be without consequences.  Russia’s rulers throughout history have reliably complained about the disobedience of the provinces, usually in reference to parts of Siberia, and the remoteness which allows them to ignore many of Moscow’s directives.  In some ways, Sakhalin Island is the same.  Hopelessly remote from Moscow, the residents have an island mentality, resistant to outside interference, especially from spoiled Muscovites who seek to lord it over those toughing it out in the far east.  Okay, I might be exaggerating the extent of this mentality, but it does exist.  Now the type of people who own and operate casinos in Yuzhno-Sakhalinsk are the type of people who own and operate casinos everywhere: not the type of people you’d want to be on the wrong side of.  They have grown pretty rich over the last few years as the island has been booming, and I can’t see them being very impressed with their source of income being shut off and directed elsewhere: be it to favoured cities in mainland Russia, or into the governor’s pockets.

Knocking out one or two of the most shady, wealthy businessmen in a strategicaly important yet remote town in far-eastern Russia might be done without too much noise.  But taking on a dozen of them at once might prove to be a dangerous gamble.  Assuming any of this is true, of course.

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Approaching Economic Realities

Times are changing in Yuzhno-Sakhalinsk, and proof of this comes in the form of something I have never seen before in the town, and a few people I have spoken to on the subject say the same thing: a large banner in the centre of town advertising expatriate housing.  A year or two ago this would have been unheard of, and prices for expatriate housing just seemed to be spiralling eternally upward.  So what’s changed?  Firstly, Exxon have finished their main construction project.  Typically, it takes about 10%-20% of the number of people to operate and maintain a facility than to construct it.  There were also a lot of subcontractors involved in the construction, who have now packed up and left or downsized.  In addition, Exxon completed the construction of their new housing complex, meaning several dozen well-paid expats moved out of their apartments in town.

The process of demobilisation from the island of large numbers of foreign workers which Exxon has started marks the beginning of the end of the boom which Sakhalin has experienced for the last five years.  This process will gather pace and become a flood as the construction phase of the gigantic Sakhalin II project nears completion at the end of 2008.  Our company alone is looking to reduce its workforce on the island from about one thousand to fifty or sixty.  Almost every other contractor and subcontractor will be doing the same, many of whom will leave altogether.  It is highly likely that the number of foreigners working and living in Sakhalin in 2009 will have gone from the tens of thousands at the peak a year ago to just a few thousand.  This cannot fail to have an enormous effect on the local economy.

What is true for rented housing is true for office space.  The lease on our office is due to expire on 31st January 2008, and the landlord called me up last week gleefully telling me he would have to increase the rent if we wanted to renew.  He didn’t want to send me a proposal with the new rates, he said we should meet to discuss it.  No, he couldn’t come to my office, I should come to see him.  In an apartment somewhere.  No thanks, I said.  With that, he started shouting that plenty of other people want the office space and he’ll simply rent it to them.  I doubt it.  It took a morning of looking to find two suitable office spaces, in buildings newer than our current one, and for a cheaper rate.  We are paying well above market rate for out current office, largely because last year we were caught in a vice between workload and the expiry of our lease.  Not so this year.  We are about to take a better, cheaper office, and our current landlord can find some other mug to rent from him at 25% over market rate.  The availability of office space in Yuzhno-Sakhalinsk shot up when Exxon finally moved into their enormous new office building, freeing up whole floors all over the town.  And as the contracting companies downsize or leave, yet more becomes available.  Furthermore, one or two new office blocks have either recently been built or are due to be completed shortly.

Russians have never been too strong on economics ever since they spent 80 years pretending the laws of such didn’t apply to them.  Many of the residents of Yuzhno-Sakhalinsk are probably no better informed now.  The town witnessed an extraordinary boom as the giant oil and gas projects kicked off on the island, and the residents benefitted enormously in the form of salaries several times the national average, rental prices on a par with Moscow, and business opportunities in abundance.  A year or two ago, landlords could demand any price they wished for a property, suppliers of goods and services set out the rules and changed them at will, inviting any company who complained to go elsewhere, and if you were Russian and spoke a smattering of English you could get a well paid job, sit and do nothing, and move to a better job a month or so later.  In itself, none of this was a bad thing for Yuzhno-Sakhalinsk, in fact I think it was a very good thing.  But as any Russian should know, such excess brings with it a nasty hangover, and I don’t think anyone in the town is prepared for it – least of all our office landlord.  The mood amongst the local population is generally that the good times will last forever, and the economic power they had two years ago will last forever.  I can’t figure out if they are in denial, or they are simply blundering along in ignorance.

Take another example.   A year or two ago it was almost impossible to find a decent canditate for any position in a company.  Anyone who was any good at anything was employed already, and their employers made sure they kept them.  Those who did find themselves on the job market usually demonstrated why within a week of starting a new job.  That was then, this is now.  These days, CVs are starting to drop through our door, CVs of people with experience who have worked for foreign companies.  Two years ago, nobody had any experience and you had to take a chance that they’d turn out okay.  Nowadays, people come with experience, history, and a reference.  In the last four months, we have taken on two members of staff who have been demobilised from a construction project, have come with a good reference from their previous employers, and the expectations we had of them have largely been met.  Yuzhno-Sakhalinsk is a small town, and for years many of the local Russians seemed to think that reputation in the job market didn’t matter, as those were the days when being Russian and having a pulse almost guaranteed a job.   Employees used to stomp out of the door waving two fingers at the management, and start afresh in another company right away.  These days, I get phone calls from managers in other companies saying an ex-employee of mine has swung through the door applying for a job, and what did I think?  Some of the local Russians have been extremely smart in adapting to this shift in the balance of power, making sure that they build up a good reputation with an employer who then passes on his or her CV to a friend in another company with the recommendation they take the individual on.  Others are still stuck with the Soviet-like belief that they are entitled to a job under any terms they demand.

And yet another example.  The number of suppliers of goods and services has increased, and competition has entered the marketplace.  Nowadays, companies can demand to be treated like customers and not beggars, and supplier assessments are possible.  Suppliers can now be blacklisted, and are.  Three quotes can be obtained for most purchases, something which was nigh on impossible two years ago.

These patterns are only going to intensify and solidify until Yuzhno-Sakhalinsk becomes a normal market economy, where customers are treated as such and suppliers chase their business.  For many, the economic correction is going to be harsh: salaries will drop, no longer will they be able to depend on $30,000 per year income from renting out their apartment, and they will have to work to keep their jobs.  Any random group of Russians contains at least a few extremely smart and hard working individuals, and these will be the winners of the new reality.  But the days when everyone was a winner in Yuzhno-Sakhalinsk are quickly coming to an end.

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Logos please, and more of them

The first topic of this post could be viewed as a footnote to this post, in which I mourn the lack of a decent supermarket in Yuzhno-Sakhalinsk.  Branded goods have come in for a lot of stick in the past few years, culminating in the book No Logo, the author of which seems to think it would be better if the world’s consumables were not produced by large multinationals and carrying brand names.  Critics of the book normally point to brands as being part of the system which guarantees, or at least attempts to uphold, the quality of a product. 

Yuzhno-Sakhalinsk would be a good place to put the two opposing theories to test.  Putting forth anecdotal evidence from my own experience, I have found that there are a few products in the supermarkets here in addition to the ones you would probably find on the moon, such as Coca-Cola.  When I am hunting through rows of tins and jars bearing the names of mysterious Russian manufacturers such as Favourite Garden or My Family, I am drawn to the few international brands such as Parmalat, Heinz, Nestle, and Green Giant.  Maybe there is a familiarity comfort factor at play here, but to be honest I’d never heard of Parmalat until they fell into financial trouble a few years back, and to my knowledge I’d never bought their products until I came here.  So I’m thinking my preference of goods coming with a label I have heard of and have seen abroad is because I believe these brands carry a stronger guarantee of quality than the brands I have never heard of. 

But that’s just me, and anecdotal evidence doesn’t say much.  What does say a lot is the premium people are prepared to pay for the internationally branded goods, which is usually 30%-50% higher than the locally branded goods.  If these items were to stay on the shelves for weeks, then it would be safe to say that the international brand is not worth premium being charged for it.  But as things are, the internationally branded goods tend to disappear pretty quickly, which is clear evidence that people are willing to pay considerably more for internationally branded goods than products carrying an unfamiliar brand name.  As an experiment, I’d like to see Naomi Klein put in a year in Yuzhno-Sakhalinsk and inspect her shopping basket every time she buys in some groceries.

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Bad Music Turned Loud

Having lived in a few student houses and more recently a couple of Russian apartments, I have noticed that the following relationship holds true:

The volume of the music being played by a neighbour is inversely proportional to the quality of the music. 

The same probably applies to people in cars. 

I spent a summer living with a student who liked to play his music stupidly loud through a monster set of speakers.  All you could hear was thumping bass, but the entire audio range of the music itself was utter shite.  Another neighbour in a student hall of residence used to do the same thing, the purpose for which could only have been the equivalent of a child leaping up and down in the company of adults shouting “Look at me! Look at me! Look at me!”

I am convinced that those who play music stupidly loud in apartments or houses are those who fail to get positive attention by the normal method of not being a complete prick.  Or they are simply retarded.  In the case of my neighbours in the apartment above where I currently live, I am certain it’s the latter.  They turn their music up most of the day to the point that the speakers distort.  And true to the relationship described above, the music is shockingly bad: Russian teenie-pop and cheesy crooners from fifteen years ago.  They have a small child, whose crying is often drowned out by the music, that I am guessing is the thickest, most illiterate brat in his class in both reading and speaking.  As for listening, I’d be surprised if he could hear his own thoughts.  I’ve not heard about any psycopathic serial killers originating from Yuzhno-Sakhalinsk before, but there is always a first and this kid is a prime candidate.  Hopefully he’ll start with his parents, before turning the axe on the stereo.

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The Last of the Summer Whine

Nothing changes in Russia, or so it seems.  But when change does occur, it happens quickly.  Three weeks ago, the temperature in the mornings on the way to work was about 12 or 13 degrees Celcius.  Two weeks ago it was about 8 or 9.  Last week it was 4 or 5.  This week it is between 1 and 3 degrees when I start my car in the morning.  The trees, which two weeks ago were a deep, dark green have started changing to all manner or reds, yellows, and oranges.  The trees, like the people, know what is coming, and are powerless to stop it.  The summer is definitely over, autumn is well established, and winter is on its way.

I have now been in Sakhalin for over a year, and I can enter the ranks of those who bore newcomers to death with tales beginning “Last winter…” and “When I first arrived…”.  Anyway, ahem, when I first arrived it was autumn and we had to wait until early November before the authorities switched on the district heating that everyone relies upon to keep warm.  This year, the authorities have excelled themselves and on 1st October the heating came on across the whole town.  What’s more, the power cuts and water shut-offs which plagued us so much last autumn have barely occurred.  Everyone is thinking it, some are whispering it, but nobody dares say out it loud lest they tempt fate, but: Yuzhno-Sakhalinsk is getting modern!!  The authorities are getting their act together!!  Not so drainage wise.  Last week we had a few days of torrential rain, and the streets filled with puddles upon which Sakhalin Energy’s environmental team carried out feasibility studies to examine the option of relocating pacific grey whales distressed by their pipelines in the Sea of Okhotsk.

Pausing for a second, I seem to have been rambling somewhat.  Where was I?  That’s right, the approaching winter.  It is noticeably colder this autumn than last, and everyone has become an amateur meteorologist by confidentally predicting that this winter will be a harsh one.  I’m saying the same thing, but really I haven’t got a clue.  All I know is that I now see everyone wearing increasingly heavy jackets on the streets in the mornings and evenings (midday is still warmed by a very bright sun), and I am glad our heating is on.

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Inevitability

The scene: Andrei, a Russian friend, and I watching a local band in one of the shoddy clubs in Yuzhno-Sakhalinsk.

Me:  This fella’s a brilliant singer.

Andrei:  Yeah, but he likes to smoke crack.

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A Live Band in Yuzhno-Sakhalinsk

This evening my wife was on duty in the hotel in which she works, so rather than sit at home alone I did what I had been meaning to do for months: go to the Chameleon Bar, and check out the amateur bands that play there every Monday evening.

My wife had rung up in advance and gleened that the band plays from 8pm until 10pm.  I arrived at 7:45pm, and found the door locked.  So I hung around outside, trying the door periodically, to no avail.  Every now and then some youths would turn up, bang on the door, and a greasy looking chap would speak to them and let them in.  I thought this was some sort of VIP entrance thing which a newcomer like me wasn’t entitled to.  Only when it got to 8:15pm was I sufficiently pissed off to bang on the door and demand entrance, at which point I discovered the place had been open all along.  Only in Russia does a club attract customers by locking the front door.

Unsurprisingly, the club was full of students, ranging in age between what looked like 12 and 18.  Or maybe I’m just getting old.  The students reminded me of those I attended university with in 1996, wearing unwashed trousers six sizes too big, shirts my old man would have been embarrassed to wear in the 1960s, and plimsoles which looked as though they’d been left rotting outside for an English winter before the owner deemed them cool enough to wear.  In trying so hard to look different, they ended up all looking the same.  One bloke even had on a lumberjack shirt, the kind not seen outside the backwoods of Canada since the 1980s.  And even he looked more fashionable than the fella with the German army shirt.  Several of them had backpacks, which identified them immediately as students no matter which city we were in.  A word of warning to those who wish to avoid being duffed up by drunkards: never wear a backpack with both straps unless you are wearing Scarpa boots and a Helly Hansen shirt, or your backpack is a military bergen.  Two of the students on the table next to me were struggling with some English homework, and feeling generous, I spent ten seconds inserting ten missing words in ten blank spaces to allow them enough free time to enjoy the band.

Which was awful.  The lead guitarist, of which there were three, struggled for half an hour to fix this complicated computerised pedal contraption which – when it was working – emitted various sounds which guitars were not meant to make.  I was reminded of a comment made some years back by a good friend of mine who was an excellent guitarist that if you need a load of electronic gear to make your guitar sound good, then your guitar is shite.  When they finally got going, they turned out to be a teenage metal band along the lines of…I don’t know, I don’t know any teenage metal bands.  Usually I switch off when I hear them come on the radio.  At a guess, someone like Feeder or McFly.  I knew they were in trouble when it transpired that their bass guitarist was the most tuneful out of the lot.  That said, they did possess one element essential for rock and roll success: a drummer who looked as if he would blow his brains out as soon as stardom had been achieved.  Unfortunately, this chap looked crazy enough to do it on his second night playing as a pub band.  They did get better towards the end, or maybe it was the three pints of vodka and orange I’d drunk for student prices which inspired this improvement.  Appropriately enough, the band was called Headache.

So all in all, a disappointing evening.  But I have heard some pretty decent bands show up at the Chameleon Bar, and I reckon it’s worth visiting again.

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