US Ambassador to the Russian Federation, Alexander Vershbow, bids farewell to Moscow.

This morning, at a breakfast held by the American Chamber of Commerce at the Marriott Grand Hotel in Moscow, approximately 100 chamber members were greeted with their “last lecture” by Ambassador Vershbow, as he so eloquently put it himself. He was given a crystal egg from Andrew Somers, President of the American Chamber of Commerce in Moscow, as a parting gift from the Chamber.

I had the pleasure of attending this breakfast as a guest in the city. My home is Palo Alto, California, and I have returned to Russia on a brief trip to survey the landscape. It has been nearly five years since I last visited Russia, and 8 since I lived here. In the mid-90’s, I had the opportunity to experience the dramatic economic changes that a new free-market economy brought. During those times, the rapid changes were not as visible to one who lived amidst them. However, to a returning guest, first in 2000, then in 2005, the changes are dramatic. Most visible, of course, is the explosion of construction in the capital which has so changed the surface of the city to be almost completely unrecognizable.

I listened intently to the words of Ambassador Vershbow, hoping to glean some new insights into the political and economic environment that now exists in Putin’s Russia. I must admit, there was nothing all that new as Ambassador Vershbow diplomatically addressed the key issues affecting the business community: staggering bureaucracy, pervasive corruption, lack of government restraints, as defined as terrorism by tax authorities, and the emergence of a new class of state oligarchs. These ever present obstacles, unless addressed effectively by Putin’s government, will continue to create road blocks to investment.

Ambassador Vershbow applauded those in the room for their continual determination and efforts to make business successful and strive to create an ethical civil society, fighting for equal treatment. One man at my table works in the entertainment industry, producing music CDs for both American and Russian artists. The continual piratization and lack of government intervention to stop it, remains a serious headache. Russian musicians cannot make a living off their CDs and must continually give concerts in order to make a living. This dampens their creative and progressive musical futures as they do not have time to invest in developing new work. He’s been in Moscow for 10 years and feels that the situation has gotten much worse in terms of corruption.

However, not all feel that way. There is always continual optimism in Russia, a common personality characteristic for most individuals doing business here. It seems the city is progressing and developing at a much saner pace than the 90’s, where now, real inroads are being made to create solid infrastructure for the future.

I bought a cell phone and registered a number for only $65 and I can buy a prepaid card from almost any kiosk in town at reasonable rates. An internet card for dial-up from home can be found in any kiosk as well, and for $10 you get 20 hours and can access the internet from any phone line in the city with you own laptop. Of course, you would be hard pressed to find a public pay phone anywhere. The other side to that, is that all the cell phone numbers I had in my database from 2000, no longer belong to the individuals who registered them before.

I have another 12 days left to visit, explore, and connect to a city with a history for me that goes back 17 years. It has been challenging, as I find people move quicker here than in Silicon Valley. Russia is a fascinating country that many choose to explore. Perhaps as Ambassador Vershbow and his wife finish their time here in Russia and move on to another post, I will be yet another American, returning to Russia to continue the web of relations that exist between Russia and America today.