Moscow, a city undergoing a complete metamorphosis

Reported by Cécile Balavoine. Photos by Ludovic Maisant.

Gone are the days of bling-bling Moscow, when magnums of champagne, high heels and oversized watches were the hallmarks of the social life. These days, it seems, it's not so much about the new rich as it is about the new young. the advent of a middle class whose standard of living is steadily improving. The collapse of the rouble, which hit Russia during the winter of 2014-2015 - in two years, the Russian currency lost more than 30 % of its value, before recovering since the end of 2016 -, has barely dented this slow process.

Because the machine of progress is on the move. Muscovites continue to consume, albeit in a different way. Value for money is now under the microscope, and shopping centres catering for an intermediate clientele are springing up all over the city. On the other hand, the small food stalls that were once a symbol of Moscow are closing down one after the other for health reasons. The higher authorities are regulating and ensuring that Muscovites reclaim their city.

However, with interest rates still high, people are investing less and less in property. So people are renovating and embellishing their homes. Interestingly, France has become Russia's largest foreign employerThis is thanks in particular to the presence of the big names in supermarkets such as Auchan and DIY stores such as Castorama and Leroy-Merlin, which are posting record sales volumes. "Overall, it can be said that the crises of 1998 and 2008 have had a fairly positive impact on Moscow, as they have profoundly altered the economy and consumption patterns."explains Pavel Chinsky, Director of the Franco-Russian Chamber of Commerce and Industry.

A political decision-making centre and an economic powerhouse, Russia's eternal capital - despite Peter the Great and his beloved city of St Petersburg - Moscow still desires greatness. Today, it is being renovated and embellished, making its traffic flow more smoothly and densifying its urban transport network. And while there are still pockets of poverty in Russia, the capital stands in stark contrast to the rest of the country, with a fairly even standard of living.

Moscow is on the move. It is evolving, and even more so since the arrival at the end of 2010 of the new mayor at the head of the city, Sergei Sobyanin, a close associate of Vladimir Putin. This has had the effect of simplifying the complex balance between federal and municipal power. For a long time, Moscow was a megalopolis hostile to pedestrians, with wide, impassable avenues, but thanks to a policy of major works, similar to that of Greater Paris, it is gradually taking on a human scale. The difference is that here, decisions are implemented almost instantaneously. There's no need to bother with various approvals...

Last March, in the presence of the Russian president, the mayor announced that the 'Khrushchevki', 5,200 blocks of flats built in a hurry in the 1950s, were to be demolished to make way for brand new housing, and that hundreds of thousands of residents would have to be rehoused in a project estimated to cost around fifty billion euros.

Among the projects that have begun and will continue until 2018, while Russia to host the Football World Cup this summerSome of these have already been inaugurated: cycle lanes, a Velib' system, burying the power cables that used to disfigure the urban landscape, narrowing traffic lanes, building wider pavements, planting trees along major thoroughfares and creating pedestrianised streets, all as part of a gigantic project costing nearly €2 billion called "Ma rue".

Moscow is a terribly congested city, but it is also trying to discourage its residents from using their cars thanks to this urban network, while at the same time making life more comfortable for them. One of the major events in this context was the launch in September 2016 of a second circular line: Moscow Central Ring. 54 km long, it serves 31 stations and will eventually provide 17 connections with a metro line and ten others with the rail system. At present, 21 stations are operational, while the others still require some finishing work.

"It's a new concept in the Russian mind, but it's also a sign that Moscow is rapidly catching up with other European capitals, to the point of being ahead of them."continues the director of the chamber of commerce. However, while in Western Europe the changes are first and foremost designed to improve the well-being of the public, in Europe the changes are more complex, the interests of the State still often have the upper hand in Russia. Ironically, it is said that the Duma, the lower house of parliament, is not a place for discussion...

Bobo cafés at Gorky's

Be that as it may, the capital is aligning itself with international criteria. And so it is, more and more of the world's leading architects are invited to take part in the profound changes taking place in the city. Opposite the legendary Baltschug Hotel, New York architects Diller Scofidio + Renfro have redesigned Zaryadye Park. Embellished with a futuristic footbridge overlooking the Kremlin and the Moskva River, it was inaugurated on 9 September to mark Moscow's 870th anniversary. Not far from there, Gorki Park, a symbol of the Soviet era, is now home to hip cafés, coworking spaces and rock concerts. It's also where you'll find the Garage, a contemporary art museum housed in a former kolkhoz canteen that has been completely redesigned by Dutch architectural star Rem Koolhaas. "Moscow is really becoming a top-class European megalopolis"concludes Pavel Chinsky.

Things are certainly changing, but the country has not yet reached a level of maturity that would allow it to distinguish itself through cutting-edge sectors. Russia remains a cash economylargely irrigated by hydrocarbons. "Moreover, despite the high concentration of the service sector, Moscow only accounts for 25 % of Russia's GDP, a relatively low percentage compared with other European capitals.says Pierric Bonnard, Director of the Business France Russia Office. This can be explained by an economy that is heavily dependent on the raw materials market, which by its very nature is far from the capital."Moreover, if major urban projects have not been curbed by the recent crisis, it is because of the way in which these infrastructures are financed. Rather than relying on tax revenues, the State and the municipality are calling on the oligarchs and major companies whose profits are linked to the Russian subsoil to change the face of Moscow, and on the double.

However, there has been a real desire to diversify the economy in recent years. Promoting innovation is a priorityThe Skolkovo cluster, launched in 2009 under the presidency of Dmitri Medvedev, is undergoing serious development. "Skolkovo aims to become Russia's new Silicon Valley"explains Pierric Bonnard. Over the past three years, things have accelerated, and the site located some sixty kilometres west of Moscow is now aiming to attract key players in the global economy, particularly in the digital sector. At the outset, this project was less a start-up incubator than a state foundation designed to prevent the flight of young Russian talent versed in innovation.

Private funding has recently been sought so that Skolkovo can compete with large-scale ecosystems such as those on the west coast of the United States or in Israel. The site should offer two million square metres of office and residential space by 2020, and accommodate a total of 35,000 people, residents and employees combined. Already, the Skolkovo Innovation Center is home to more than 300 companies that generate nearly a billion dollars a year. To attract new talent, tax incentives have been set up and cooperation agreements have been signed, notably with China. The aim of these initiatives is to ensure the presence of international start-ups on the site, but also to enable young Russian start-ups to establish themselves and expand abroad.

Generally speaking, service activities are continuing to develop in Moscow, especially as labour regulations are not the strictest. Banks and department stores close late at night and remain open on Sundays and public holidays. What's more, a multitude of small businesses is born. "The Russians understood that the customer was king and that if they wanted to do business, they had to abide by this rule."concludes Pierric Bonnard. Penalised by the collapse in oil prices and the sanctions imposed as a result of the Ukraine crisis, Russian growth is picking up again, with the IMF expecting GDP to grow by 1.4% in 2017. Thanks to a young population accustomed to globalisation and increasingly proficient in English, the future looks bright for Moscow and Russia.