Europe’s most populous city has been a city of boom and bust throughout its turbulent history and Moscow (Moskva) is now enjoying a time of unprecedented growth.

In 2006, Forbes magazine ranked Moscow as having the highest number of billionaires in the world - second only to Manhattan. Thirty-three of Russia’s 36 billionaires live in the city. Much of this wealth has come from the country’s rich natural resources - World Bank figures suggest that 25% of Russia’s GDP comes from oil and gas.

Although there is great wealth Moscow’s average salary is still only US$1,100 and poverty becomes more obvious just a short distance from the city centre. Low utility costs and income tax keep down the cost of living for locals. But in 2006, Moscow was named the world’s most expensive city for expatriates, finally beating Tokyo to the top spot, thanks to the stable Russian rouble as well as increasing property prices within the city.

The influx of petrodollars has transformed the city for everyone, rich or poor, at a breathtaking pace. Changes have happened within the last decade that may develop over a generation in most other industrialized cities. But after many years of communism and the uncertain economic times of the 1990s, Moscow was a city ripe for change.

Located in the centre of the East-European plain, the majority of it occupying the valley of the Moskva River, Moscow is the spiritual, political and economic capital of the world’s largest country. In recent years it has become as much a magnet for multinational corporations as it has migrants from the former Soviet Republics such as Azerbaijan, Georgia and Kazakhstan.

For the larger part of eight centuries, the Kremlin, at the very heart of Moscow, has been the seat of power for the grand princes, tsars and, most recently, presidents, as well as an important religious site. For Westerners, the adjacent Red Square, especially the bulbous, multicoloured domes of St Basil’s Cathedral, have been an image synonymous with the Soviet Union and Russian state.

Surrounding this centre, Stalin’s so-called Seven Sisters (gothic-looking Socialist Realist skyscrapers) humble the individual. But the pre-revolutionary city is still there for all to see in beautiful neo-classical ‘wedding cake’ houses and concert halls, such as the Bolshoi Theatre. Most surprisingly of all, there are the underground palaces of the Metro system, the largest and probably the most efficient in the world.

Nowadays, the posturing Soviet military driving their tanks through Red Square for the October Revolution Parades have been replaced by the posing of wealthy Muscovites with their shiny new Mercedes Benz. The impressive Stalinist buildings along Tverskaya ulitsa, the main drag leading up to Red Square, now house glitzy Western franchises.

The well-heeled new Muscovites may have greeted capitalism with open arms but after the many years of Communist-imposed atheism, many in the Russian capital have enthusiastically embraced their once-banned Orthodox faith. This is reflected in the restoration of old churches, the rapid construction of new ones and the decision to give the remains of Russia’s last tsar, Nicholas II, a Christian burial.

After the uncertainty of the Yeltsin era, President Vladimir Putin brought an economic and political stability that made him popular with ordinary Russian people. Under his leadership, wages, living standards and pensions all increased.

But after eight years in office Putin was constitutionally obliged to step down in 2008. He was succeeded in May 2008 by Dmitry Medvedev, his preferred candidate in the March 2008 elections.

Despite its dazzling wealth, glitzy shops and conspicuous consumerism, in many ways, Moscow now bears more resemblance to its Soviet-era incarnation and is certainly less free than it was under Yeltsin. Security was tightened severely after tragedies such as the theatre siege in 2002, the suicide bombings a year later and the metro bombing and aircraft hijacks in 2004.

In practice this means a heavy police presence on main streets and at public gatherings, and also private security guards and gates at theatres, bars and shops. Police have the power to ask to see ID and those without the right documents and stamps can be fined - tourists are no exception.

A great deal of Russia’s mineral resources is owned by the state. The wealth generated by these is enabling the government to flex its weight on the international stage by shutting off its gas supply to Europe and reining in the operations of foreign firms such as BP’s explorations in Sakhalin - actions that were unthinkable a few years ago.

Although ties between the west and Russia warmed, particularly after the 9/11 attacks, the investigation into the poisoning of Alexander Litvinenko may be a watershed that ushers in a cooler period of diplomatic differences.

One aspect of the city remains constant and that is the harshness of the Moscow winter. Despite the bitter cold, there is nothing so beautiful as seeing St Basil’s Cathedral in the falling snow. In contrast, summer temperatures over 30°C (86°F) are not unusual.

© 2006 Columbus Travel Publishing Ltd. Disclaimer

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