Chapter 220 He Has a Human Touch: 20% of Shares Pledged
Indeed, Wang Xiao felt particularly sorry for the leaders of the Kuznetsk Steel Plant.
The three of them were so engrossed in their display of brotherly affection that the official in charge of receiving them was just standing there waiting.
After finally waiting for them to finish, they quickly got to the point and introduced the situation of the steel plant.
Kugang is a large and established factory with tens of thousands of employees. Its main products are pig iron, steel billets, steel bars, as well as steel for railway tracks, bridge construction, and shipbuilding.
The most famous of them all is the railway track.
Undoubtedly, the decline of the Soviet Union's military industry in its later years and insufficient state investment in infrastructure have made life difficult for Kustan Steel.
When the Soviet Union collapsed, the domino effect made the entire country's steel industry realize what it meant to decline day by day.
Kustan Steel's current production capacity has declined significantly compared to the Soviet era.
The factory's biggest worry right now is how to come up with a large amount of rubles to meet the needs of the eager workers, engineers, technicians, and other employees on payday each month.
The group followed the factory leaders on a tour of the factory's main workshops, listening to them recount the factory's problems in detail.
It's getting cold, and the workers don't have enough money to buy warm clothes and shoes for themselves and their families, nor can they afford vegetables and meat. Life is very difficult for them. Could the government help guarantee the factory so they can get another loan from the bank and have a decent New Year?
Major General Punonin's official identity is that of a tax police officer, so he has no right to speak.
As a competent government official, Yura spoke in a very standard bureaucratic tone. Every word he uttered was tinged with genuine concern, full of deep affection, but ultimately just empty rhetoric that offered no real substance.
So in the end, even the leaders of Kugang Steel got tired of nagging him anymore.
Wang Xiao suspected that this was exactly what Yura's purpose was.
By the time the tour ended, it was already dark in Novokuznetsk.
Or to be more specific, it never gets light here.
A young female employee of Kuznetsk Steel, who accompanied them on the tour, was one of the few girls here who was willing to talk a lot. She told Wang Xiao in a serious tone that she had never seen the blue sky of Novokuznetsk since she graduated and started working at Kuznetsk Steel.
“They all say the factory is going to close down,” the girl sighed. “Maybe it’s for the best, so I can leave here. The thought of my future children living here for the rest of their lives makes me feel like the future is as hopeless as the sky.”
Wang Xiao asked her with concern, "So where are you planning to go after you leave?"
The girl with short hair looked confused: "I don't know, maybe Moscow, maybe St. Petersburg. Who knows? There should be more opportunities in big cities."
Who really knows?
Big cities offer more opportunities, but also fiercer competition.
The capital city is vast, and living there is not easy. This seems to be a common phenomenon in any era and any country.
After the tour, Yura offered Ivanov a cigarette and asked for a heart-to-heart talk between brothers.
They went out.
Wang Xiao was left standing next to a bonsai holly tree, breathing in the oxygen to comfort himself.
When Major General Punonin walked up to her, she rolled her eyes inwardly, thinking how idle these men were.
So Ivanov was their darling, their shared beloved, and they were all afraid she would steal him away, so they had to talk to her separately.
As a result, Major General Punonin's first words were: "Miss Wang, what are your thoughts on Russia's industrial reforms?"
Wang Xiao turned around and went straight to the point: "Just say what you want to say, there's no need to make small talk."
What's your opinion on Russia's industrial reforms? She hadn't even taken the civil service exam before she time-traveled.
Did they wear that and travel all the way to Russia to attend a civil service interview?
“No.” Major General Punonin shook his head slightly and said seriously, “This is exactly what I want to discuss with you.”
“OK!” Wang Xiao nodded. “I’ve discussed this issue with Ivanov. We believe that Russia should learn from the Soviet Union’s first and second Five-Year Plans of the 1920s and 30s: first accumulate funds, then introduce advanced equipment and technology, and then revitalize industry.”
"Even if the West is unwilling to repeat the same mistakes by then, it doesn't matter if it creates a powerful enemy or competitor for itself."
"Russia can attract talent with its technology by offering high salaries to engineers."
Major General Punonin is quite tall, nearly two meters.
So when he stood next to Wang Xiao, the shadow cast by the light could almost completely cover Wang Xiao.
This made Wang Xiao feel uncomfortable.
The bodyguards accompanying her also noticed this, and Lyuba, Xiao Gao, and Xiao Zhao instinctively stepped forward to block him.
Wang Xiao shook her head slightly, signaling to the bodyguards with her eyes to calm down. She then stepped aside and returned to the spotlight.
Major General Punonin seemed to curl the corners of his mouth slightly, yet his face remained unchanged, his tone still relatively gentle: "No, Miss Wang, what I want to hear is your opinion, not the consensus reached after your discussion."
Wang Xiao shook his head: "I don't know what you want to hear, but there's one thing I suspect you've been wrong about all along. That is, the industry owned by the Soviet Union, or the entire industrial system owned by the COMECON member states, is not the same as Russia's industry."
"During the Soviet era, shoes, hats, clothing, and daily necessities from Eastern European countries, grains and meats from Vietnam and Mongolia, and sugar from Cuba filled the industrial gaps and even the voids in the Soviet Union."
"The Council for Mutual Economic Assistance (COMECON) has been dissolved, and the Soviet Union no longer exists, so those industrial products that never belonged to Russia have naturally disappeared."
"It is unrealistic for you to want to return to the state of abundant industrial and agricultural products before the mid-1980s."
"Because Russia's geographical and demographic conditions do not allow it."
"So now that the government has abandoned shock therapy and restarted economic reforms, let's maintain the existing advantageous industries. For example, the steel industry. Even if domestic demand is reduced now, as long as the national fiscal situation improves, there will always be investment in infrastructure, whether it's building railways, bridges, or new buildings, it will be used eventually."
Major General Punonin listened quietly, and only after she finished speaking did he ask, "Do you mean that Russia should no longer develop industrial projects that it doesn't currently have or that are unsustainable?"
Wang Xiao couldn't help but admire this person's keenness; he really knew how to grasp key information from other people's words.
“Yes and no.” She nodded and then shook her head. “Because I don’t know exactly what industries Russia currently has. I think Russia can give up all industrial products that can be easily bought with money, that is, light industrial products.”
Punonin continued to press, "Is it because our own production costs are too high?"
“That’s only part of the reason,” Wang Xiao said earnestly. “Another reason is that when Russia can make a lot of money by selling oil and gas, are Russians still willing to work hard in factories doing those labor-intensive industries?”
She shook her head. "My answer is no. Because if it were me, I wouldn't want to either. There's an old Chinese saying: 'Those who live near mountains live off the mountains, those who live near water live off the water.' Only by maximizing our advantages can we live a better life. Really, this is your good fortune. The demographic dividend isn't exactly a wonderful thing. With a large population, limited land, and scarce resources, we can only rely on the demographic dividend. But you have a small population, abundant land, and rich resources, so your people are valuable. Isn't that a wonderful thing?"
Major General Punonin looked at her: "So, what's your advice to Russian industry?"
Wang Xiao smiled and said, "I've already said it: maintain your strengths and give up the parts you're not good at."
What do you want her to say?
In her opinion, does nobody have any expectations for Russian industry?
How could she possibly praise the industrial development of a country where, before she transmigrated, the tines of the plastic forks used to make instant noodles were stuck together, making it impossible to pick up the noodles?
Goldman Sachs economists once predicted Russia's economic trajectory, saying it was destined to be a consumer nation, and would only be able to make money by operating as the world's gas station, then use that money to buy things from industrialized countries.
The words were quite harsh.
However, Russia's development over the next 20 years proved this prediction true.
Therefore, Wang Xiao, out of a sense of kinship, earnestly suggests: "What Russia should really be doing now is cracking down on the mafia and stabilizing social order, rather than letting the environment continue to deteriorate. Because Russia doesn't need to unleash its productive forces. Stability is what Russia needs. Only with stability can the government fairly distribute the money earned from exporting raw materials to its citizens. This is also the way to quickly improve the economic situation of the people, raise their quality of life, and regain their trust in the government."
Major General Punonin took out a cigar, held the trimmed cigar in his hand, and narrowed his eyes slightly: "You don't recommend that we learn from China's reform and opening up?"
Wang Xiao was getting a little impatient. She wasn't a scholar or a politician, and she had no intention of peddling her views: "Of course, the two countries have different national conditions. In China, the ratio of worker to peasant population is 2:8, while in Russia it's the opposite. Simply copying China's reform plan won't work in Russia."
Major General Punonin fell silent again.
Just as Wang Xiao was considering leaving, he suddenly took half a step to the side, his tall figure once again looming over most of Wang Xiao: "So, Miss Wang, are you interested in cooperating with me?"
This question is truly nonsensical and utterly absurd.
Wang Xiao refused without hesitation: "No, Ivanov is very good."
This time, she didn't move her position, but instead raised her head, letting her face be reflected in the light. "He has a human touch, a human touch that we all like."
"Hey!" Ivanov walked into the lounge, his eyes a little red, as if he had been crying. He looked at the two people in the room with a hint of surprise. "What are you two talking about?"
Wang Xiao smiled and walked towards him: "He's trying to steal your boyfriend."
"Hey!" Ivanov roared angrily, glaring at Major General Punonin and warning, "Vlamikil."
Major General Punonin gave a helpless look: "She was just joking. Miss Wang is a humorous lady."
Wang Xiao shook his head: "I'm not joking, I refused. Because he doesn't fit my aesthetic standards, in my opinion, he's not handsome."
Ivanov immediately struck what he thought was his signature charming pose: "Your Majesty, I knew I was the handsome man you had in mind."
Wang Xiao laughed heartily: "Of course! How did the talks go? How much of the share did you get?"
“A maximum of 29%, with the state holding 20%, and the remaining 51% of the steel plant's shares distributed to employees in the form of stock. Then, a board of directors is elected through a shareholders' meeting, and the steel plant is managed by a general manager appointed by the chairman.” Ivanov chewed his gum.
He had just smoked outside and wanted his breath to smell better.
See, he is such a good person who is always considerate of the feelings of those around him.
Therefore, he is always surrounded by people who are willing to help him and take him along.
Wang Xiao smiled and asked him for a piece of chewing gum, then started chewing it herself.
She didn't like the air here; she wished the air smelled better.
"Should we take it on?" In front of Vladimir, he directly asked Wang Xiao's opinion. "Setting up a new production line is difficult for Kugang. Perhaps we can consider switching to the steel pipe plant."
God, please forgive him for changing his mind at the last minute.
In fact, he was a complete novice in the steel industry. He only learned from his conversation with Yura that the steel pipe factory that made the oil pipelines was actually owned by someone else.
“Okay,” Wang Xiao nodded, “but we don’t need to give up on Kugang.”
Ivanov raised an eyebrow, slightly suspicious: "Why? You've found a sales channel? Do you have connections in China's railway department that allow you to import steel rails?"
He knew that China Fortune Land Development Co., Ltd. was controlling the development of the real estate market.
However, infrastructure includes not only real estate but also transportation.
Whether it's building roads or bridges, it requires a huge investment.
China's economy is developing rapidly, and there is an old Chinese saying: "To get rich, build roads first."
Wang Xiao didn't give a definite answer, nor did she make a definitive statement. She simply said, "Let's see."
Actually, she wasn't looking at domestic railway construction.
The reason is very simple: any outsider can see at a glance that the market is very profitable, and invisible barriers have long been established.
If you're not one of our own, you can't get in at all.
How lucrative is road construction? Just look at how many officials and businessmen have fallen from grace in this area every year, and you'll have a good idea.
Wang Xiao doesn't have the connections in this area right now, so it's too difficult for him to get at someone's dinner table.
What she really values is international steel prices.
Why? Because the economies of developed Western countries, represented by the United States, have recovered.
The death of the Soviet Union was like a whale fall that brought life to all things. It could be said that it single-handedly pulled the Western world out of the financial crisis.
With the recovery of the US and European economies that had reaped the wealth of the Soviet Union, the demand for steel will increase, the number of buyers will increase, and the selling price will inevitably rise accordingly.
This is precisely why she is confident that Kugang Steel will maintain production in the short term.
But Wang Xiao doesn't plan to reveal his hand right now.
She chewed her gum and smiled at Yura as she entered the room: "I remember there's a story about the Tower of Babel in the Bible. Humans built the Tower of Babel to reach heaven. To stop this plan, God divided humanity into different races, each speaking a different language, so that they couldn't communicate and couldn't complete this great plan. Why are you afraid of me? Is it because you fear that if humanity united, we could reach heaven, and you're afraid that we won't live up to your expectations and will hate each other?"
Yura instinctively retorted, "What do you know about the Bible?"
Wang Xiao smiled and said, "I just don't understand why God would prevent humans from going to heaven? Are humans not worthy of a good life and only fit to suffer?"
Yura became agitated and called out to her friend, "Ivanov, listen to what she's spouting! Good heavens! She's so stubborn!"
Wang Xiao is a kind person. She is not religious and no longer provokes believers, only smiling in a half-smile.
Ivanov raised his hand and said, "Alright, it's too late, we should go. Goodbye, my friends."
Even after they left, Wang Xiao could still hear Yura's incessant complaints: "Look, Vlamikil, I told you Ivanov was completely under her spell."
What did Major General Punonin say?
Perhaps his voice was too low to be heard; or perhaps he said nothing at all.
Anyway, Wang Xiao didn't hear anything.
She didn't stop walking for even a moment.
Once in the car, Ivanov frowned and asked, "What exactly did Vladimir tell you? Hmm, he's not the type to pursue girlfriends."
In this context, "girlfriend" is defined as "mistress" because Vladimir had a happy family, a loving husband and wife, and two children.
Wang Xiao slightly turned her head towards Liu Ba.
The female bodyguard immediately got to the point: "Major General Punonin asked Miss Wang if she wanted to cooperate with him?"
Ivanov nearly jumped out of the car in a panic, as if his pants were on fire: "Hey! This guy! Wang, don't fall for his tricks, he's trying to sow discord!"
Wang Xiao nodded: "I know, that's why I rejected him."
She sighed, "Ivanov, the more I interact with your friends, the more adorable I find you."
Ivanov was not appeased; instead, he curled his lip and said, "Is this just choosing the best among the worst?"
“No.” Wang Xiao patted his hand, turned her head, and looked at him seriously. “You were originally a general, and they made your brilliance shine even brighter.”
Ivanov finally broke into a wide smile, even covering his face with his hands and chuckling.
After laughing, he seemed to suddenly remember something, then turned his head and looked at Wang Xiao with a puzzled expression: "Wang, tell me, why did God stop the Tower of Babel project?"
Wang Xiao asked in surprise, "You're asking me? I haven't even read the Bible."
But he insisted, "Your Majesty, you must know the answer."
"I don't know," Wang Xiao said helplessly. "Let me put it this way, first of all, I want to emphasize that I respect everyone's beliefs and have absolutely no intention of offending anyone."
The Russians on the train laughed because they were all going to church.
She sighed: "Actually, I don't quite understand how Communist Party members in the Soviet era could believe in both Communism and God. It's contradictory, the two are contradictory. I reiterate that I don't understand religion, and I ask for your forgiveness if I have said anything offensive."
“It’s disappointment,” Lyuba explained. “It’s more about the disappointment that comes from the discrepancy between propaganda and reality. So, everyone abandoned communism and returned to God’s embrace.”
"That's the paradox," Wang Xiao finally blurted out after holding it in for so long. "If there's a wonderful place where the people who live there enjoy the best of everything—the food, the drinks, the clothes, the things they use, and so on—but they don't allow anyone else to enter, what do we call that place?"
Xiao Gao listened intently, subconsciously guessing: "A special supply store?"
Ha! He only realized after arriving in Moscow that the Soviet Union really did have underground special supply stores; it was a completely different world.
Wang Xiao nodded and then shook his head: "Special supply stores are like that, isn't Heaven the same? Privileged individuals cut off the path for ordinary people to rise, and even God prevents humanity from uniting to build the Tower of Babel to heaven."
She shook her head again, this time with a larger shake. "So I really can't understand why someone who hates privilege so much that they give up communism would choose God? Sometimes, I even have some very presumptuous thoughts. Is it that people who hate privilege don't hate privilege itself? In fact, they accept privilege and think it's right and reasonable. They just hate that they're not the ones who enjoy privilege."
Throughout history, apart from left-wing authors, who in literary and artistic works hasn't sung praises to privileged individuals in various guises?
Only with strong market demand can there be a continuous supply.
Ivanov rubbed his face hard again, murmuring softly, "God, Your Majesty, you must be suffering a lot. After all, I am so ridiculous and contradictory."
“No, it’s adorable.” Wang Xiao shook his head. “Isn’t the charm of life precisely its multifaceted complexity, its perpetual contradictions?”
Ivanov grinned and smiled silently.
After a long silence, he suddenly spoke up: "I want to prepare New Year's gifts for everyone. Well, maybe it won't be enough before New Year's Day, but I should be able to supply them by Christmas."
This might sound a bit odd at first, but it's perfectly normal in Russia. That's because Russia celebrates Orthodox Christmas on January 7th.
Wang Xiao nodded without any objection: "Okay, let's see what everyone needs specifically, and once we've compiled the list, we'll start preparing the goods."
The assistant quickly got to work: "What's the budget?"
Ivanov hesitated for a moment and did not speak.
Wang Xiao asked curiously, "What's wrong?"
He has always been generous, and even though Kugang has more than 30,000 employees, he would not make things difficult for them.
Ivanov frowned slightly: "Yura said that the government can mortgage 20% of the shares to us in exchange for a loan."
Wang Xiao instinctively said, "Loan? We're not a bank."
After she said it, her eyes widened. "They want us to open a bank?"
Ivanov nodded: "That's right."
Wang Xiao was so angry he almost laughed: "Don't Russia have enough banks? What, are you afraid they'll only accept deposits and refuse to lend to the government? Now Moscow is going to retaliate?"
To put it bluntly, given the current state of the ruble, even though it seems to have stabilized for a few months now, who dares to believe that its exchange rate can remain stable?
The key to stabilizing currency and prices lies in controlling the government's fiscal deficit.
Can the Moscow government do it? No.
If it could, it wouldn't be in such a hurry to ask Xinfu Group for a loan.
The government then lent 100 billion rubles, and suddenly, the ruble plummeted to rock bottom. Who can the banks complain to?
Yes, yes, yes, you can definitely make money working in a bank.
It seems that the famous Russian seven oligarchs are mostly bankers.
In Russia, the way to make money in banking is very simple: predict the exchange rate and trend of the ruble and the dollar, then resell them and find ways to transfer wealth outside of Russia.
If it really came down to doing this, Wang Xiao, though not knowledgeable in finance, was certainly capable of it.
Because she knew the overall trend was downward, and the bottom seemed to be the 1998 financial crisis.
After the crisis, the Russian president resigned before his second term even ended, handing over his successor to the government.
However, she wasn't very interested in working in the banking industry.
Ivanov sighed: "I suspect the government isn't waiting for the ruble to plummet before repaying the loan; they never intended to repay it at all. On the surface, they certainly have a concrete plan regarding how to repay. But in reality, in the end, the 20% stake will most likely be compensation for not being able to repay the loan."
Wang Xiao touched his nose: "Then we resell these 20% of the shares to another company at a low price, and that's how we launder the shares."
Ivanov remained silent, clearly also considering whether or not to join the fray.
He and Wang Xiao agreed that doing business in Russia required close ties with the government; however, neither of them wanted to get too involved with the government.
However, the current government is a highly centralized system, unlike typical presidential systems.
According to the current new constitution of the Russian Federation, the president has the power to decide everything. Although there are upper and lower (Duma) parliaments, the president has the power to dissolve them.
The only thing the parliament can do is impeach the president when he commits a crime.
At the same time, the president is also the supreme commander of the military.
If Ivanov refuses to approach the government, it means they will be ousted.
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