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In North Caucasus, a Bumpy Revitalization Course Slalom for Russia as It Seeks to Invest in North Caucasus
(about 9 hours later)
ARKHYZ, Russia — Just over the mountains from where Russia’s Olympic dream played out this month to a worldwide audience, Aleksei Grebennikov, a copper miner, glided down the bunny slope of a brand-new ski resort on the Abishira-Akhuba mountain ridge.ARKHYZ, Russia — Just over the mountains from where Russia’s Olympic dream played out this month to a worldwide audience, Aleksei Grebennikov, a copper miner, glided down the bunny slope of a brand-new ski resort on the Abishira-Akhuba mountain ridge.
As he stopped at the base for a cup of black tea, Mr. Grebennikov stood with his back to the concrete frames of buildings that will soon be transformed into hotels and restaurants. They are the modest beginnings of Russia’s next huge-scale investment in this region, a $15 billion project to put a European-style ski area in each of the seven republics of the North Causasus. As he stopped at the base for a cup of black tea, Mr. Grebennikov stood with his back to the concrete frames of buildings that will soon be transformed into hotels and restaurants. They are the modest beginnings of Russia’s next huge-scale investment in this region, a $15 billion project to put a European-style ski area in each of the seven republics of the North Caucasus.
The goal, perhaps quixotic, is to lure Russian tourists and foreign investors to a region better known for sheltering Islamic militants than skiers.The goal, perhaps quixotic, is to lure Russian tourists and foreign investors to a region better known for sheltering Islamic militants than skiers.
Neglected for decades, the North Caucasus republics have endured a relentless separatist insurgency and an equally disruptive counterterrorism campaign that killed more than 500 people last year, bringing much of the region’s economy to a standstill.Neglected for decades, the North Caucasus republics have endured a relentless separatist insurgency and an equally disruptive counterterrorism campaign that killed more than 500 people last year, bringing much of the region’s economy to a standstill.
In its search for a solution to the insurgency, Russia has often used a heavy hand, carrying out almost daily counterterrorism raids and courting strongmen like Ramzan Kadyrov in Chechnya to extend its will. In its search for a solution to the insurgency, Russia has often used a heavy hand, carrying out almost daily counterterrorism raids and courting strongmen like Ramzan A. Kadyrov in Chechnya to extend its will.
But the development of an enormous infrastructure for winter sports, particularly at a time when the popularity of alpine skiing is in decline in much of the world, is a new and risky strategy to use soft power to break the cycle of poverty and violence.But the development of an enormous infrastructure for winter sports, particularly at a time when the popularity of alpine skiing is in decline in much of the world, is a new and risky strategy to use soft power to break the cycle of poverty and violence.
In a report released last month, the International Crisis Group said the project “could become a true locomotive for development.” But, citing recent attacks — including one in 2011 on Europe’s highest peak, Mount Elbrus, in which three skiers were killed and a cable car derailed — the authors added, “The security situation in some republics at present is simply too volatile to permit tourism.”In a report released last month, the International Crisis Group said the project “could become a true locomotive for development.” But, citing recent attacks — including one in 2011 on Europe’s highest peak, Mount Elbrus, in which three skiers were killed and a cable car derailed — the authors added, “The security situation in some republics at present is simply too volatile to permit tourism.”
Russian officials, however, argue that the time is ripe.Russian officials, however, argue that the time is ripe.
“The stars had to align,” said Sergey V. Vereshchagin, chairman of Northern Caucasus Resorts, in an interview at the company’s headquarters in a Moscow high-rise. “You need the resources. Decisions need to be made on the very highest levels of the federal government. And you needed a fairly calm situation in the territory.”“The stars had to align,” said Sergey V. Vereshchagin, chairman of Northern Caucasus Resorts, in an interview at the company’s headquarters in a Moscow high-rise. “You need the resources. Decisions need to be made on the very highest levels of the federal government. And you needed a fairly calm situation in the territory.”
It doesn’t hurt that the resort is in Karachayevo-Cherkessia, one of the safest republics in the North Caucasus. It does not hurt that the resort is in Karachayevo-Cherkesiya, one of the safest republics in the North Caucasus.
In December, the company opened a small portion of its resort just outside the dilapidated village of Arkhyz as a “test site,” advertising a bunny slope, a chair lift and a gondola imported from France, along with plans to install another gondola and open seven ski runs next season. A Russian magnate who won a large government contract for the Olympic Games in Sochi and will help coordinate preparations for the 2018 World Cup has built two modern, though hardly luxurious, hotels — called Romantik-1 and Romantik-2 — along the slopes. In December, the company opened a small portion of its resort just outside the dilapidated village of Arkhyz as a test site, advertising a bunny slope, a chairlift and a gondola imported from France, along with plans to install another gondola and open seven ski runs next season. A Russian magnate who won a large government contract for the Games in Sochi and will help coordinate preparations for the 2018 World Cup has built two modern, though hardly luxurious, hotels — called Romantik-1 and Romantik-2 — along the slopes.
Some of the seven trails have already been cut through the evergreen trees that dot the mountain ridge, but were closed last month because of light snowfall and exposed rocks. High above the tree line and the dropoff point for the gondola, the top of the mountain ridge beckoned with a thick cover of fresh powder snow. But it will remain painfully out of reach until, and unless, the second gondola is installed. Some of the seven trails have already been cut through the evergreens that dot the mountain ridge, but they were closed last month because of light snowfall and exposed rocks. High above the tree line and the drop-off point for the gondola, the top of the mountain ridge beckoned with a thick cover of fresh powder. But it will remain painfully out of reach until, and unless, the second gondola is installed.
For now, said Pavel Vedentsov, a 25-year-old transplant from St. Petersburg who manages the mountain staff and ski patrol, skiers will have to content themselves with a single trail for beginners that closes at 5 p.m. For now, said Pavel Vedentsov, a 25-year-old transplant from St. Petersburg who manages the mountain staff members and ski patrol, skiers will have to content themselves with a single trail for beginners that closes at 5 p.m.
“There isn’t much to do at night,” Mr. Vedentsov added thoughtfully. The bars have not yet been built. “There isn’t much to do at night,” Mr. Vedentsov said. The bars have not yet been built.
The resort has low prices to attract local residents: A day pass costs $30 and ski equipment rentals are just $14.The resort has low prices to attract local residents: A day pass costs $30 and ski equipment rentals are just $14.
Asked about the risk of terrorism in the region, Mr. Vereshchagin conceded that it was a concern but said the danger had been exaggerated. In more violent republics like Dagestan and Chechnya, he said, the company would provide transport from regional airports directly to the resorts. Asked about the risk of terrorism in the region, Mr. Vereshchagin conceded that it was a concern but said the danger had been exaggerated. In more violent republics like Dagestan and Chechnya, he said, the company would provide transportation from regional airports directly to the resorts.
Aleksandr Khloponin, the presidential envoy for the North Caucasus, told the editor of a Russian news site in an interview that Russian tourists were not easily intimidated.Aleksandr Khloponin, the presidential envoy for the North Caucasus, told the editor of a Russian news site in an interview that Russian tourists were not easily intimidated.
“Is it less dangerous in Egypt?” he asked, naming a popular destination for Russian vacationers. “Or in Libya, or on the Moroccan coast? Nothing will scare away one of our tourists.”“Is it less dangerous in Egypt?” he asked, naming a popular destination for Russian vacationers. “Or in Libya, or on the Moroccan coast? Nothing will scare away one of our tourists.”
Gregory Shvedov, editor of The Caucasian Knot, a regional online news agency, said in an interview that he was skeptical of the returns the Northern Caucasus Resorts would bring to local communities. Gregory Shvedov, editor of The Caucasian Knot, a regional online news agency, said in an interview that he was skeptical of the returns Northern Caucasus Resorts would bring to local communities.
“If it is all owned by the state, by huge companies based in Moscow, then I don’t see the benefit in this,” Mr. Shvedov said.“If it is all owned by the state, by huge companies based in Moscow, then I don’t see the benefit in this,” Mr. Shvedov said.
He emphasized that increasing minority ownership and integrating small, local businesses into the plan could create thousands of jobs in a new tourism industry. “But are they doing all of this?” he said. “We don’t see it.”He emphasized that increasing minority ownership and integrating small, local businesses into the plan could create thousands of jobs in a new tourism industry. “But are they doing all of this?” he said. “We don’t see it.”
Neither, it seems, do residents. While the government money started flowing three years ago, they say they have seen little, if any, trickle-down effect.Neither, it seems, do residents. While the government money started flowing three years ago, they say they have seen little, if any, trickle-down effect.
On a recent day in Arkhyz, just five miles from the resort, women were selling hand-picked teas and luminescent honeys flavored with mint and barberry, but customers were few and far between. On a recent day in Arkhyz, just five miles from the resort, women were selling handpicked teas and luminescent honeys flavored with mint and barberry, but customers were few and far between.
“Just look how great things here are now,” said Shamshiyat Batasheva, 53, who was offering hand-knit socks for sale. “Does it seem like people are working?”“Just look how great things here are now,” said Shamshiyat Batasheva, 53, who was offering hand-knit socks for sale. “Does it seem like people are working?”
Residents complained that the workers at the resort had been brought in from outside the region. “Wherever that money is going, it isn’t coming to us,” Ms. Batasheva said. “We can count on that.”Residents complained that the workers at the resort had been brought in from outside the region. “Wherever that money is going, it isn’t coming to us,” Ms. Batasheva said. “We can count on that.”