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Author Topic: Business in Moscow  (Read 1969 times)

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Offline sashathecat

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Business in Moscow
« on: February 09, 2014, 04:46:27 PM »
Several nights ago my wife and a group of friends decided go out on the town. We were over at a friends house gearing up with a few drinks beforehand and I bump into an acquaintance whom I had not seen in some time. He is a national kickboxing champion from Tajikistan and an interesting fellow so we begin talking. While chatting, one of our mutual friends mentions that this acquaintance had just returned from Moscow. A bit curious as to all things FSU these days I ask him how it was. He smirked and proceeded to tell me about his business venture while living in Moscow.

Apparently he decided to delve into the sports betting business in Moscow. He secured a location and finances to back the operation. The landlord was good enough to lease him a space on the first floor of a building in which there were currently several other sports betting operations in place. Business was starting to pickup a bit as everyone had to walk past his location in order to go up to the third floor. Something was missing though and he had just the idea. All the other operations would make you wait seven days for larger payouts. He put up a sign that said all payouts were immediate. You win 100k, you get paid that same day. Now the money really started to roll in. Business was good, apparently a little too good. He began to receive a series of visitors asking for their portions and in the end the FSB kindly asked him to leave the country...

Offline PBRstreetg

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Re: Business in Moscow
« Reply #1 on: February 09, 2014, 06:02:52 PM »
друг
Разрушить всегда легче, чем построить. Обидеть проще,чем простить. И врать всегда удобней , чем поверить. А оттолкнуть намного проще, чем любить

Offline Danchik

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Re: Business in Moscow
« Reply #2 on: February 10, 2014, 02:13:45 AM »
Several nights ago my wife and a group of friends decided go out on the town. We were over at a friends house gearing up with a few drinks beforehand and I bump into an acquaintance whom I had not seen in some time. He is a national kickboxing champion from Tajikistan and an interesting fellow so we begin talking. While chatting, one of our mutual friends mentions that this acquaintance had just returned from Moscow. A bit curious as to all things FSU these days I ask him how it was. He smirked and proceeded to tell me about his business venture while living in Moscow.

Apparently he decided to delve into the sports betting business in Moscow. He secured a location and finances to back the operation. The landlord was good enough to lease him a space on the first floor of a building in which there were currently several other sports betting operations in place. Business was starting to pickup a bit as everyone had to walk past his location in order to go up to the third floor. Something was missing though and he had just the idea. All the other operations would make you wait seven days for larger payouts. He put up a sign that said all payouts were immediate. You win 100k, you get paid that same day. Now the money really started to roll in. Business was good, apparently a little too good. He began to receive a series of visitors asking for their portions and in the end the FSB kindly asked him to leave the country...
I'm sure his nationality played a part in some of the things that transpired. Nevertheless, the first rule of thumb in small business 101 in Russia is "don't become too big", unless of course you're connected. 

To be honest, it doesn't matter much if he is Tajik or not, as it happens to everyday Russians as well. It didn't help that he is Tajik though.

If you want to have a successful small business you have to operate with an outside address, which is why IT start ups are the most common, or remain out of the "limelight" financially so your business doesn't get "taxed' to death, taken over by a connected local, or you're just plain thrown out like your friend. Unfortunately, the small business climate in Moscow/Russia still operates this way.

I have mentioned many times that Russia needs to be much friendlier to the small businessman if it wants to improve diversification and not rely primarily on petrol dollars. The powers that be continually to give lip service to this sector regarding the changes that are coming. I, along with thousands of Russians, am still waiting.
When it is dark enough, men see the stars.


Offline Net_Lenka

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Re: Business in Moscow
« Reply #3 on: February 10, 2014, 04:25:03 AM »
yeah  :-\ the most needed thing in Russia is tadjik with his half-legal  sport-betting - such a "business" which always draws criminals like a magnet
A huge problem with small businessmen is they all want quick money ( as thay could not affort to invest and just wait when they retunrs if ever) So in many case they  pick up such useless ( if not to say more) thing like that
- А Вы кто такой будете?
-Тьфу на Вас
-А фамилия Ваша как?  -Тьфу на Вас еще раз .. а фамилия моя слишком известная, чтобы я её называл

Online andrewfi

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Re: Business in Moscow
« Reply #4 on: February 10, 2014, 06:48:42 AM »
I wonder what happened to the 100,000,000 rubles that were required for the licence application to run a legal betting business?

Did your friend of a friend seem rich enough to manage such a sum?

I read that after the law requiring the €3,000,000 in net assets there would be only 8 companies able to operate legally in Russia in the sport betting niche - the bar to entry having been raised so high.

So, just how friendly does Russian bureaucracy have to be to illegal business operators?
...everything ends always well; if it’s still bad, then it’s not the end!

Offline sashathecat

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Re: Business in Moscow
« Reply #5 on: February 10, 2014, 11:29:16 AM »
I wonder what happened to the 100,000,000 rubles that were required for the licence application to run a legal betting business?

Did your friend of a friend seem rich enough to manage such a sum?

I have known him for some time and am under the impression he is from a somewhat well off family, but I am not sure of the exact details of his business venture other than what was told to me briefly that evening. I would wager they did not have one myself.

Online andrewfi

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Re: Business in Moscow
« Reply #6 on: February 10, 2014, 12:26:59 PM »
I reckon from what you were told and what I found out in a couple of minutes that the biz was at least a tad shady. That's OK. No problem there but on the other hand it is a little hard to condemn the authorities for closing the business down. :)

...everything ends always well; if it’s still bad, then it’s not the end!

Offline Slumba

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Re: Business in Moscow
« Reply #7 on: February 10, 2014, 12:37:20 PM »
I reckon from what you were told and what I found out in a couple of minutes that the biz was at least a tad shady. That's OK. No problem there but on the other hand it is a little hard to condemn the authorities for closing the business down. :)

Not sure that it was "the authorities" in terms of people from the government... but certainly the "street" version of the authorities...
Anchors Rewoven

Online andrewfi

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Re: Business in Moscow
« Reply #8 on: February 10, 2014, 12:50:37 PM »
Yes, those famous street villains the FSB?  :'(

It is probably true that other businesses in the same building are still trading, for now; but for how long?

The rules about gambling were introduced for good reasons and are being enforced more and more strictly. It sounds like this guy and his partners put themselves into the firing line by trading as they did.

 
Quote
He began to receive a series of visitors asking for their portions and in the end the FSB kindly asked him to leave the country

...everything ends always well; if it’s still bad, then it’s not the end!

Offline Danchik

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Re: Business in Moscow
« Reply #9 on: February 15, 2014, 10:45:49 PM »
I reckon from what you were told and what I found out in a couple of minutes that the biz was at least a tad shady. That's OK. No problem there but on the other hand it is a little hard to condemn the authorities for closing the business down. :)

Not sure that it was "the authorities" in terms of people from the government... but certainly the "street" version of the authorities...
"Street" authorities have turned into "the authorities" these days, but it's not just the FSB. Matter of fact, I'd be surprised if it was the FSB at all. Most likely some government tax authority guy shaking him down, or someone from another agency outside the FSB like the Police. The FSB were just there to make sure he left or escort him out of the country :).

The laws are there in case a business doesn't "comply" with the extra "tariff" imposed. IOW, you might need 3M to fund the business, but if you're paying your "new" fee the authorities will look the other way about having the 3M. Many gambling operations still work this way.

Poker/gambling "speakeasies" are all over the place and illegal by law (:). The authorities even bust up the places to make a good showing to the press and the community, only to give the money back to the operators a week later and it's business as usual. Don't think the laws here work like in the West.

There are many Tajik businesses operating around Moscow and doing quite well. Many operate under bogus licensing or by some other illegal means, but because "the authorities" are getting nice kick backs, they're not only allowed to operate, but they're also protected from the masses (nationalists, for example).

Sasha's friend must have refused to play the game. Had he cooperated with the guy holding his hand out to be greased, he'd most likely still be in business as long as he wasn't too successful.
When it is dark enough, men see the stars.

Offline ECR844

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Re: Business in Moscow
« Reply #10 on: February 15, 2014, 11:41:40 PM »
Here success and ability to get things done has nothing to do with your wealth. It's about who you know (who your friends are and the quality of those friendships) and your connections, the money and business success come along with those other things. If you lack the 'friends-connections' then you'll be driven out of business or into poverty.

Offline sashathecat

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Re: Business in Moscow
« Reply #11 on: February 16, 2014, 09:39:29 AM »
I reckon from what you were told and what I found out in a couple of minutes that the biz was at least a tad shady. That's OK. No problem there but on the other hand it is a little hard to condemn the authorities for closing the business down. :)

Not sure that it was "the authorities" in terms of people from the government... but certainly the "street" version of the authorities...
"Street" authorities have turned into "the authorities" these days, but it's not just the FSB. Matter of fact, I'd be surprised if it was the FSB at all. Most likely some government tax authority guy shaking him down, or someone from another agency outside the FSB like the Police. The FSB were just there to make sure he left or escort him out of the country :).


Sasha's friend must have refused to play the game. Had he cooperated with the guy holding his hand out to be greased, he'd most likely still be in business as long as he wasn't too successful.

The way I look at it is the "FSB" or whomever they might have been may have even done him a favor before he got in over his head. And yes, he said they began to refuse payments to people which caused the end result.


 

 

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