00:00I can give you the real name of the woman I'm about to introduce.
00:04After watching this video, you will understand why she must remain anonymous.
00:09People like her can be out in the open sharing their beliefs, hopes and fears.
00:15But still Sylvia, we'll call her Sylvia, has agreed to share her story for my project Humans of Russia.
00:21Just so that people in the West can understand what's truly happening in the world's largest country.
00:30Sylvia lives in Moscow and is a highly successful entrepreneur.
00:35Strong, vibrant and elegant, she leaves a lasting impression.
00:40Even in simple home clothes and without a hint of makeup.
00:44Picture a puma, a mountain lioness, golden fur and sparkling blue eyes.
00:50In her 50s, Sylvia is wise and experienced.
00:55She loves beautiful clothes, luxury hotels and the business world,
01:00where millions are at stake and incredible people and opportunities abound.
01:06Sylvia had always dreamed of owning a beauty brand.
01:10And her dream came true in the most unexpected way.
01:14For many years, she worked as a crisis manager, knowing the Moscow elite well.
01:19She had the right connections and, just for fun, helped an unknown chemist named Galina host a skincare workshop.
01:29Galina was passionate about sharing her knowledge on skincare, longevity and health.
01:36More than a hundred people showed up for her workshop and skeptical Moscow ladies listened, entranced.
01:44Sylvia watched this delicate woman on the stage and thought,
01:48Damn, she has such talent, but she'll never make it.
01:54She's from the provinces, no money, no connections, no idea how to promote herself.
02:00What a waste.
02:02In the beginning of 2020s, Russia experienced a boom in online education.
02:08Everyone wanted to learn, grow and focus on their health.
02:13Sylvia decided to open her own beauty school and invited Galina as a teacher.
02:17The business brought in solid profits, around $100,000 per launch.
02:24All this time, Galina worked as a chemical technologist at a factory producing skincare products.
02:31She invested the money from her teaching gigs into developing her own line, just nine products.
02:38One day, she asked Sylvia, could you help me grow my brand?
02:43I'd love to, Sylvia said, but my fee is $28,000 per month.
02:51In Galina's hometown, that amount could buy several apartments.
02:57It was an impossible sum for her.
03:00So Galina offered Sylvia half of her company.
03:04The proposal was both crazy and irresistible.
03:10Sylvia had always dreamed of owning her own beauty brand.
03:14And now it seemed the universe was handling her exactly what she wanted.
03:20Here it is.
03:21Come and take it.
03:23The only catch was that the monthly revenue of Galina's company was a mere $2,300 at the time.
03:31Sylvia agreed on the condition that Galina would continue to develop the product and Sylvia would run the business.
03:40For Sylvia, it was a new challenge, a game she desperately wanted to play.
03:45The ultimate prize was the chance to achieve incredible results and prove herself to the world.
03:51Sylvia got to work, but then the pandemic hit.
03:55Offline retailers stopped ordering products because all the stores closed.
04:00Yet, Sylvia's business grew by 35%.
04:05People started shopping online more and Russia began using local alternatives to Amazon, like Ozone and Wildberries.
04:13Sylvia sourced everything in Europe, from ingredients to bottles, and business was booming.
04:20Her revenue reached half a million dollars a month with 101 products on offer.
04:26The biggest obstacle to growth was the stereotype that quality beauty products could only come from France, Italy or Switzerland.
04:35Could a Russian brand possibly measure up?
04:38Sylvia set out to educate her customers.
04:42Her consultants explained that the ingredients and equipment came from the same suppliers in Germany, Switzerland and Italy.
04:50In fact, even the most luxurious brands sourced from the same places.
04:55The creative beauty product begins with an idea.
04:59What problem it should solve and how.
05:02Then, they find a supplier for their active ingredients and order a small quantity.
05:07Active ingredients are very expensive.
05:10After numerous experiments, the formula is written, tested and sent to a manufacturing lab.
05:17There, chemical technologists replicate the product and if it passes all tests, production begins.
05:23But with the war in Ukraine, everything changed.
05:29On one hand, it became impossible to source ingredients directly from Europe.
05:34On the other, almost all foreign competitors left the market.
05:39To keep the business going, Sylvia had to quickly overhaul the logistics chain.
05:45She now buys from the same suppliers, but channels the products through one of the former Soviet republics.
05:53Yes, it's more expensive.
05:55But the sales volume compensates for it.
05:58Sylvia is against the war and can't wait for it to end.
06:02She and other entrepreneurs in her circle place their hopes on President Trump, hoping he will find a way to
06:10end this nightmare.
06:11Everyone knows things can never go back to the way they were, but the heart longs for normalcy and stability.
06:19Although many Russian companies have seen profits increase, thanks to the exit of competitors and rising prices, the business environment
06:28remains unstable.
06:31Sylvia can't move her capital or production out of Russia, and there are constant rumors that Russian banks might freeze
06:39assets because the government is running out of funds for the war.
06:42What's even more frightening is the possibility of being forced to sell her business to someone backed by the political
06:50police or other Siloviki.
06:53This is why she avoids heavy advertising.
06:55If she spends $100,000 on promotion, she'll immediately come under the radar of Comrade Major.
07:05Better to avoid the risk.
07:08Sylvia keeps a low profile.
07:10She pays her taxes on time and refuses to operate in the black market, as many others do.
07:17But starting January 1st, her company was placed on a list of businesses that must pay an additional revenue tax.
07:25This tax only affects larger companies, which means the government knows exactly how much money she's making.
07:32The government continues to cause Sylvia a headache.
07:35Now they want every bottle to have an individual barcode.
07:40One bottle and one specific barcode.
07:44Who benefits from it?
07:46Who knows?
07:47Manufacturers must comply and consumers have to pay for their added cost.
07:53Sylvia believes that something will change soon.
07:57What exactly?
07:58A default?
07:59A freeze on deposits?
08:00No one knows.
08:02Right now the refinance interest rate in Russia is 21% and deposit interest rates are 24%.
08:10This cannot go on forever because those kinds of returns only happen when you are dealing in drugs.
08:17For many manufacturers, it's more profitable to just put their money in a bank and collect interest without doing anything.
08:25Everyone is focused on the present, reacting to the circumstances as they come.
08:31No one can predict what direction Russian history will take next.
08:35Sylvia loves Russia and hopes she won't have to immigrate.
08:40But for her, it's important to remain a free person.
08:45She wants to be able to hop on a plane to Paris anytime for some oysters.
08:51She doesn't like that she has to travel to another country to get an American visa because the embassy in
08:57Moscow no longer issues them.
08:59But just in case, Sylvia is preparing a backup plan.
09:05She already has ideas on how to expand her business in the US and France.
09:12If you want to hear more stories about real people living in Russia, give this video a like and leave
09:19a comment about what topics you'd like me to cover.
09:22If there's interest, I'll try to find the right contact for you.
09:27In Russia, personal connections are everything.
09:30And I've got them.
09:32By the way, I've also written an exciting, gripping novel about the Bolshevik Revolution of 1917 based on unique memoirs.
09:41The main character of Russian treasures bears a strong resemblance to Sylvia in spirit.
09:47You can find the link in the description below.
09:50I'm going back to wärmint.
09:52All in forever.veysleveysleveysleveysleveysleveysleveysleveysleveysleveysleveysleveys只有
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