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Ukraine makes a Prime choice in its new PM

By doublethinker

On March 11, 2011 The Ukrainian Parliament appointed Mykola Azarov as its new Prime Minister. This followed a hastily assembled coalition, and even more hastily law amendment pushed through this week by Yanukovych to allow a coalition to be formed by individual MPs, as opposed to bloc factions. The new coalition comprises the Party of Regions, Communist Party, the Lytvyn Block and several MP of BYuT and NU-NS factions; a total of 235 MPs representing a shade more than 50%. It is highly possible however, that the new law will be disputed in Ukraine’s Constitutional Court which could yet derail Yanukovych’s best laid plans.
Russian-born Azarov is considered one of the most influential figures in the Party of Regions and a close ally of Yanukovich; serving as finance minister and first deputy prime minister in his premierships from 2002-2005 and 2006-2007. During his time he undertook tax reforms, bringing the variable tax rate on personal income down to a uniform flat rate, and was credited with calming investors’ concerns of a financial meltdown following warnings of a crisis by then President Kuchma.
A trained geologist, Azarov previously held scientific and managerial positions at scientific and research institutions specializing in geology and mining both in Russia and in Ukraine.
He is a strong supporter of tight state control of the economy and is thought to be a safe (and conservative) pair of hands with the country’s purse strings. We can expect his operating style to be characterized by pragmatism and caution. In policy terms, we could expect to see potential increases in protectionist measures in favour of local Ukrainian industry and exports, stricter taxation discipline but with a focus on new technologies and modernization.
His experience of steering Ukraine through choppy economic waters must surely have a positive influence on a country which is still some way from clearing the recession. It is hoped that his pragmatic and conciliatory approach will encourage the IMF to resume the funding promise it suspended in 2009 following a number of breached promises.
At 62 years old and a trusted long-term ally of Yanukovych, Azarov is unlikely to pose any serious competitive challenge to the new President which should mark an end to the in-fighting which ultimately destroyed the previous administration.

This post was written by our Ukrainian colleague Dr. Oleksandr Sakharenko, Government Relations Manager at Grayling Ukraine

See our Ukrainian blog at http://insightukraine.mmdblogs.com or follow @grayling_ua on Twitter.

Becoming Grayling

By doublethinker

It is official: Mmd is now Grayling. After the merger of three leading consulting companies: Grayling, Trimedia and Mmd, we have become the world’s second biggest independent communications firm with 900 staff in 70 offices in 40 countries.

You can check out our new website at http://www.grayling.com/ or watch this small funny video that we have produced to celebrate this major change.

from Mmd to Grayling from Grayling_ru on Vimeo.

So don’t worry when next time you call us, someone will answer “Grayling, may I help you?” or if you receive an email from someone you know from Mmd from a @grayling.com address.
But what’s really important is that we are now a truly global company, capable of talking locally to your stakeholders and audiences, while maintaining a global view of your business. We are a different company now, and we will work hard to offer you a different kind of thinking for a different kind of world.

Zeitgeist: Russia in the beginning of the XXI century

By Pavel Melnikov

During the last 18 years Russia has come a long way from iron curtain that finally fell to reveal a strong leader with an iron hand. The long and winding road from Fulton to Munich was even longer.

In terms of foreign policy, Russia will continue to promote the concept of a multi-polar world with 20 key countries and 4 key centers of power, Russia being one of them, along with the US, the EU and China. Related to this, it is the Russian mindset that the one polar world proved its instability during the global economic crisis, meaning that a strategic game of chess to positioning and align is now on the agenda for many of the G8 and G20.

Moreover, with President Obama in charge, the much needed ‘restart’ of the Russian-American relationship actually seems to be underway: Russia has finally succeeded in being taken seriously as an equal international partner. Together with the other three international centers of power, Russia’s role in contributing towards global economic stability has been recognized, though crucially, the interests of other global authorities in Russia’s policies will no doubt be balanced against the country’s own key focus on its national and domestic interests. In other words, to rephrase Lord Palmerston: Russia does not have permanent friends and allies, rather permanent national interests.

Russias choices are not exactly a la carte, but rather two set menusIn terms of national and domestic policy in Russia, in contrast to foreign policy and the fresh start seen in this sphere, Russia is maintaining its long term position. The senior Russian leadership must still answer the age old question as to whether the human being lives for the state, or whether the state is established for the human being. This is of course the struggle between the competing Soviet ideology and that of modernization and the increasing struggle between the Russian political elite to push Russia along one of these divergent roads. Though as this clash of ideology continues, it is important to remember the threats and pitfalls posed by the continuation of a soviet mentality within the Russian state.

The conservative soviet scenario will inevitably pull Russia backwards into the third world by maintaining a number of institutional limitations: an economy based on the raw materials; overbearing corruption; a fundamental lack of trust within society; violation of citizen rights by the political and economic elite; weak and malfunctioning legislative and representative bodies; and a dependant court system that capitulates to weak state bodies, with key decisions being based on informal and non-transparent motives. Furthermore, a monopolized state economy and mass media will result in an overwhelmingly suppressed civil society.

These systematic flaws and issues are based upon the lack of opportunity for citizens, and in turn state institutions, to scrutinize and hold government to account as a means of balancing the interests and rights of the elite against everyday Russian citizens. The lack of an effective checks and balance system has and will lead to instability in long term. Furthermore, a lack of competition both in the economic and political spheres must be readdressed as an urgent necessity.

In the words of Chekhov: each and every citizen must take responsibility for oneself and one’s life and squeeze the slave out of ourselves drop by drop to establish equal partnership relations with the state.
Russia must undergo sweeping institutional reform to achieve its full potential and establish the highly competitive and aggressive state the country is capable of. However, the civil liberties and self-respect of citizens (as cherished by developed Western nations) must be an absolute prerequisite within such the reformed model. Only once this transformation is underway can Russia begin to challenge the long list of issues and threats the country faces in the XXI century.


A new office. Guess where?

By archie

Until now the map of our regional coverage in CEE looked like this:


There has always been a niggling gap in our regional map, but we have fixed that this week, with the launch of our office in Minsk. It will operate under the new Grayling brand and will be the first office of any global PR network to open in Belarus. We bring Mmd’s wealth of experience of working in CIS and Eastern Europe in  fields like Public Affairs, Government Relations  and PR aboard this new venture. The office in Minsk will enable us to offer our consultancy and services to both international companies willing to enter or develop their presence in Belarus market and local companies seeking foreign investment or expansion.
Belarus has recently been gradually opening up its economy to foreign trade and investment to become an integral part of the European market (and likely an important one with its population of 10 million people), so it is only natural that Grayling is the ‘first in’ international PR consultancy there, just as we (as Mmd) were in many other CEE and CIS countries before.
Grayling Belarus will operate as a 70/30 joint venture between Grayling and BTH Investments (UK), a corporate advisory company working across CEE and CIS. Vladimir Melnikov, Deputy General Director of Grayling in the CIS and Dmitry Marinovsky, the agency’s chief consultant will lead Grayling’s day-to-day operations in Belarus.

Who framed president Medvedev?

By archie

Yesterday the Russian president grasped Russian bloggers’ attention by publicly tasking the Government to look into the proposals of one Maxim Kalashnikov; regarding the development of innovation in Russia. Now, Dmitry Medvedev has already earned a reputation for being web-savvy: he has launched a video blog on his official website, then a blog on Livejournal and has often been praised for being the first Russian president who actually ‘gets it’ (‘it’ being new media). However, the kind of responsiveness to the blogosphere he demonstrated yesterday actually rather plays against the President. IMHO, it makes him look like an obscure, wishful thinker at worst; or as a blind ruler, oblivious to his people’s needs at best (or is it the other way round?).

So what happened exactly?

Act 1: a visionary makes a move
Maxim Kalashnikov (a pseudonym of Vladimir Kucherenko) is a futurologist, columnist, blogger, who identifies his political views as ‘a fascist who respects Stalin’, he is author of numerous books and ‘projects’. Ahem… ‘a visionary’ would perhaps be the most polite way to describe his qualification. On September 15th he has published a kind of open letter to the President on his blog, proposing a project for an “innovation city” outside Moscow, deploying the technologies and implementing innovations, such as the “Yunitsky’s string transport”; “Zheleznov’s digital communications network” (description looks very much like your average triple-play service, but “Russian” and 8x times cheaper than what’s available in the market); “bio-agroecopolis” (mystery); “cement free constructions” (mystery) etc. - all these, says Kalashnikov, are as yet “unmatched in the West” (this is normally a euphemism for “early prototypes of something, not likely to actually work ever, and that nobody really needs in the real world”).

(more)

Mmd gets a new name, joins a bigger family

By doublethinker

Today our parent company Huntsworth has announced its plan to merge Mmd, Trimedia and Grayling consultancies into one global firm. When the merger is complete we will all operate as Grayling and will be part of the World’s 3rd biggest independent PR network (i.e. not owned by an advertising group).

This merger is a part of Huntsworth’s bigger plan to structure all of its business so that it is more competitive on the global stage. Grayling was picked as the new name due to its existing global presence, and as much as we are sorry to lose the name we are all so accustomed too, we are also very excited with the range of opportunities that this merger opens for us, both on a corporate and on an individual level.

More news is surely to follow as we embark on the rebranding and integration process, that, in due course, will turn Mmd into Grayling (we plan to switch to Grayling name by January 2010).

About us:


Grayling is an international public relations, public affairs, investor relations and event management consultancy, formed after the merger of three firms: Grayling, Mmd & Trimedia. We have started this blog to share our observations on the current business and political developments in Russia.

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