SOUTH TO SOCHI (2014 OLYMPIC SITE), KROSNADOR (ND?

), AND CRIMEA (HISTORY REMEMBERED)

We traveled south from Moscow to SOCHI on the southern border of Russia, a stones throw from Georgia. As the sight of the 2014 Winter Olympics, construction is 24/7 and trafc is squeezed among cement trucks and heavy equipment. In summer, SOCHI is a popular black sea beach destination with rather crowded stone beaches but little competition for Latin America, or even Turkey, so we headed 45 miles north to the village mountain resort of KROSNAYA PLAYA where the 2014 ski events will take place. We highly recommend you take this trip in 2015 when the the dust literally settles - by then it may be the next Vail.

The overnight train took us to KROSNODAR in the thick of the agricultural region, familiar to many North Dakotans doing business there, like RDO/ACT. We felt as though we had been transplanted back into North Dakota if it hadnt been for the Babushkas selling salted cod, svetnicki & cigars on the train. The trains are great, with private sleeping cars, and aggressive train conductors awakening you at your stop -- I guarantee you wont miss your stop as they nearly knock the door down and ash lights in your face. Given their history, and my sleepy state at 3:15 am, I was wondering if perhaps I was being led to the gulag?

We had a great day with RDO/ACT staff in Krosnodar. Theyve built an impressive farm equipment dealership/partnership and grand farm that grows and processes popcorn (among other things) sold all over the former soviet republic. Ryan Offut and Andrey Ribalkin are partners in the business and have built an impressive team who sell, service, and operate in 11 locations. Many thanks to Olga, Alex, and Alex, of RDO/ACT above, for
their hospitality.

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

Both Andrey and Ryan credit each other for the success of their business, but its a clear case of 2 heads are better than one: American prot/loss capitalism head meets savvy russian relationship mind. Both know how to survive and operate in a very tough business environment where corruption, sudden tariffs, manufacturer margin squeeze, and transportation issues exist and persist. Not to mention the complicated purchase of land in Russia which is still owned by individuals who own a few acres each. The owners know they own an acre in a certain region, but there are no exact locations -- akin to owning an apartment within a block but you have no apartment number. This is a case study extraordinaire that most would not survive, yet the RDO/ACT staff seem to take it in stride. Andrey, Partner and Director of RDO/ACT (below) also credits his key to success to the relationships he has built since his university days in 1991 when Russia collapsed. He learned his capitalism the hard way.... standing in bread lines outlasting most who couldnt withstand the daily 4+ hour wait. As a result he sold his vodka and cigarette rations for outrageous prices. The later in the evening it became, the higher the price people would pay for vodka. This was an early scalping venture that turned into an entrepreneurial business as he bought & sold rations and outwaited everyone. His father at the time was the director of a scientic institute, who was told at Perestroika that he must now operate independently and nd a way to pay peoples salaries. Growing up under communism, how is one to understand, comprehend, and be responsible for an organization in a prot/loss setting? Hello? Im supposed to do what? A few years after graduation Andrey who graduated with an ag econ background was asked to take over an unprotable farm owned by an American in the mid 90s. He found RDO to come and service his broken John Deere equipment and that started his quest for a dealership in a land that didnt have one. Today, RDO/ACT holds 80% marketshare in their space, run a protable business, and have a model farm to showcase their machinery. At the end of our interview at 8:00 pm Andrey was off to a supplier daughters birthday party and there were several North Dakotans landing for a 3 day eld day on their farm. We sense he never stops. CROSSED THE SEA TO CRIMEA - YALTA! With an incredible ride on an overnight ferry/bus from Krosnodar to the Crimea (including FOUR passport stops plus another FOUR document checkpoints that took FOUR @#!! HOURS!!! of a 12 hour journey!) I was too sleepy to view the payoffs but many in the former soviet republics talk openly about this as a way of life. They believe corruption feeds an underground economy and in some ways makes life more efcient -e.g. -- its faster and cheaper to pay the ofcial than face the wait and higher rate at city hall. For example, trafc cops supposedly have quotas and the trafc minister has likely paid a hefty sum to secure his job. If he doesnt make his quota, hes red, and the Deputy Minister up the ladder is paid again by someone who will eagerly pay upwards of ($20,000+) to take the former trafc ministers place. One might stop you not only for speeding, but to check your car, and ne you for things like an improper rst aid kit. This story repeats itself in a number of industries.

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

After 12 hours on the ferry/bus we happily awakened to the green cyprus hills of YALTA, sun pouring down to the black sea, sailboats shimmering in the port, castles on the hill. Yalta exudes un place de past grandeur as the former playground of the Czars. Known for its healing waters and pleasant climate with numerous sanitoriums (spas), we noticed more beer than water consumed for healing . Accompanied with sausage...beer is a popular breakfast item. I imagined a prior life on the broad boardwalk, as if inside a Monet painting, women strolling with parasols and oversized hats, grand picnics by the sea, hunting parties in the hills. In reality I saw women sporting undersized bikinis, a grand McDonalds by the sea, and all-terrain vehicles heading for the hills. Oh well.

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

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

It was here in Yalta that Czar Nicholas and Alexandra (re)built Livadia Palace high on a hill with stunning views of the Black Sea and Crimean Forest. Livadia later became the sight of the famous February, 1945 Yalta Conference, where FDR, Stalin, and Churchill decided the fate of Europe for a millenia to come. Most of Central Europe was ceded to Stalin (who had 2 million troops already installed there). Stalin promised free and fair elections, and in return for control, Russia would enter the war with Japan. FDR died two months later, and Truman dropped the bomb, ending WWII. The historic meeting place is in exact replica, along with the life of Nicholas and Alexandra and the Romonov family that ruled Russia for 400 years. The richest royal family in the world at the time, original belongings and photos reveal a grand and exclusive lifestyle that likely contributed to the familys unfortunate fate. They say Nicholas was sophisticated, spoke 5 languages, a patron of the arts, strong in character but weak in war and oblivious to the enlightenment and industrial movement in Europe. This aristocratic isolationism paved the way for Lenin to lead the Bolshevik revolution. As we travel through these former soviet bloc countries we hear rst hand horrid stories of soviet occupation, ethnic cleansing, and survival, that lasted until 1990.

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

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

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