Crimea: South to Sochi - 2014 Winter Olympics Site

7/27/2019 Crimea: South to Sochi - 2014 Winter Olympics Site

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We traveled south from Moscow to SOCHI on the southernborder of Russia, a stones throw from Georgia. As the sight ofthe 2014 Winter Olympics, construction is 24/7 and traffic issqueezed among cement trucks and heavy equipment. Insummer, SOCHI is a popular black sea beach destination withrather crowded stone beaches but little competition for Latin

America, or even Turkey, so we headed 45 miles north to thevillage mountain resort of KROSNAYA PLAYA where the 2014ski events will take place. We highly recommend you take thistrip in 2015 when the the dust literallysettles - by then it may bethe next Vail.

Theovernight train took us to KROSNODARin the thickof the agricultural region, familiar to many NorthDakotans doing business there, like RDO/ACT. We feltas though we had been transplanted back into NorthDakota if it hadnt been for the Babushkas selling

salted cod, svetnicki & cigars on the train. The trainsare great, with private sleeping cars, and aggressivetrain conductors awakening you at your stop -- Iguarantee you wont miss your stop as they nearlyknock the door down and flash lights in your face.Given their history, and my sleepy state at 3:15 am, Iwas wondering if perhaps I was being led to the gulag?

We had a great day with RDO/ACT staff inKrosnodar. Theyve built an impressive farm

equipment dealership/partnership and grand farmthat grows and processes popcorn (among otherthings) sold all over the former soviet republic.Ryan Offut and Andrey Ribalkin are partners inthe business and have built an impressive teamwho sell, service, and operate in 11 locations. Manythanks to Olga, Alex, and Alex, of RDO/ACT above, fortheir hospitality.

SOUTH TO SOCHI (2014 OLYMPIC SITE), KROSNADOR (ND?), AND CRIMEA (HISTORY REMEMBERED)


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Both Andrey and Ryan credit each other for the success of their business, but its a clear case of 2 heads arebetter than one: American profit/loss capitalism head meets savvy russian relationship mind. Both know how tosurvive and operate in a very tough business environment where corruption, sudden tariffs, manufacturermargin squeeze, and transportation issues exist and persist. Not to mention the complicated purchase of landin Russia which is still owned by individuals who own a few acres each. The owners know they own an acre ina certain region, but there are no exact locations -- akin to owning an apartment within a block but you have noapartment number. This is a case study extraordinaire that most would not survive, yet the RDO/ACT staffseem to take it in stride. Andrey, Partner and Director of RDO/ACT (below) also credits his key to success tothe relationships he has built since hisuniversity days in 1991 when Russiacollapsed. He learned his capitalism thehard way.... standing in bread linesoutlasting most who couldnt withstand thedaily 4+ hour wait. As a result he sold hisvodka and cigarette rations for outrageousprices. The later in the evening it became,the higher the price people would pay forvodka. This was an early scalping venturethat turned into an entrepreneurial business ashe bought & sold rations and outwaited

everyone. His father at the time was thedirector of a scientific institute, who was told atPerestroika that he must now operateindependently and find a way to pay peoplessalaries. Growing up under communism, howis one to understand, comprehend, and beresponsible for an organization in a profit/loss setting? Hello? Im supposed to do what? A few years aftergraduation Andrey who graduated with an ag econ background was asked to take over an unprofitable farmowned by an American in the mid 90 s. He found RDO to come and service his broken John Deere equipmentand that started his quest for a dealership in a land that didn t have one. Today, RDO/ACT holds 80%marketshare in their space, run a profitable business, and have a model farm to showcase their machinery. Atthe end of our interview at 8:00 pm Andrey was off to a supplier daughters birthday party and there wereseveral North Dakotans landing for a 3 day field day on

their farm. We sense he never stops.

CROSSED THE SEA TO CRIMEA - YALTA!With an incredible ride on an overnight ferry/bus fromKrosnodar to the Crimea (including FOUR passportstops plus another FOUR document checkpoints thattook FOUR @#!! HOURS!!! of a 12 hour journey!) Iwas too sleepy to view the payoffs but many in theformer soviet republics talk openly about this as a wayof life. They believe corruption feeds an undergroundeconomy and in some ways makes life more efficient --e.g. -- its faster and cheaper to pay the official thanface the wait and higher rate at city hall. For example,traffic cops supposedly have quotas and the traffic

minister has likely paid a hefty sum to secure his job. Ifhe doesnt make his quota, hes fired, and the DeputyMinister up the ladder is paid again by someone whowill eagerly pay upwards of ($20,000+) to take theformer traffic ministers place. One might stop you notonly for speeding, but to check your car, and fine youfor things like an improper first aid kit. This storyrepeats itself in a number of industries.



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After 12 hours on the ferry/bus we happily awakened tothe green cyprus hills of YALTA, sun pouring down tothe black sea, sailboats shimmering in the port, castleson the hill. Yalta exudes un place de past grandeurasthe former playground of the Czars. Known for itshealing waters and pleasant climate with numeroussanitoriums(spas), we noticed more beer than waterconsumed for healing . Accompanied withsausage...beer is a popular breakfast item. I imagineda prior life on the broad boardwalk, as if inside a Monetpainting, women strolling with parasols and oversizedhats, grand picnics by the sea, hunting parties in thehills. In reality I saw women sporting undersizedbikinis, a grand McDonalds by the sea, and all-terrainvehicles heading for the hills. Oh well.

Despite kich modernities, the palace tours with hikes around the grounds were a real treat. Witness thestunning 1838 Alupka-Verontsov palace with grand entrance via sea and 200 acres of brilliantly plannedirrigation, gardens, fountains. The Verontsovs were the Kennedys of their day, with massive wineries stilloperating in Yalta, diplomatic ties to Britain, and brilliant military careers.



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It was here in Yalta that CzarNicholas and Alexandra (re)builtLivadia Palace high on a hill withstunning views of the Black Seaand Crimean Forest. Livadia laterbecame the sight of the famousFebruary, 1945 Yalta Conference,where FDR, Stalin, and Churchilldecided the fate of Europe for amillenia to come. Most of CentralEurope was ceded to Stalin (whohad 2 million troops alreadyinstalled there). Stalin promisedfree and fair elections, and inreturn for control, Russia wouldenter the war with Japan. FDR diedtwo months later, and Trumandropped the bomb, ending WWII.The historic meeting place is inexact replica, along with the life of

Nicholas and Alexandra and theRomonov family that ruled Russiafor 400 years. The richest royalfamily in the world at the time,original belongings and photosreveal a grand and exclusivelifestyle that likely contributed to thefamilys unfortunate fate. They sayNicholas was sophisticated, spoke5 languages, a patron of the arts,strong in character but weak in warand oblivious to the enlightenmentand industrial movement in Europe.

This aristocratic isolationismpaved the way for Lenin to lead theBolshevik revolution. As we travelthrough these former soviet bloccountries we hear first hand horridstories of soviet occupation, ethniccleansing, and survival, that lasteduntil 1990.

Below was our place de grandeur in Yalta - Villa Elena - we feltrich for days - until we paid the bill.



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SPECIAL THANKS TO HOWARD DAHL, CLYDEVOLLMERS AND ALL AT AMITY AND RCT UNIVERSITY FOR THEIR HOSPITALITY IN MOSCOW, GREATTIPS ON RUSSIA, AND THE GREAT WORK THEY HAVE DONE TO BUILD A FAITH-BASED BUSINESSUNIVERSITY IN RUSSIA! WHAT A TREMENDOUS FEAT!


Crimea: South to Sochi - 2014 Winter Olympics Site

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