WORK ON THE DEVELOPMENT OF CHESS HAS A SOCIAL ORIENTATION

VLADIMIR PALIKHATA, businessman and head of the Legacy Square Capital fund, was elected to the presidency of Moscow Chess Federation in April 2012. In his interview to Kommersant Daily he told of the role of chess in his life, as well as of the working principles of his business.

— What led you to Moscow Chess Federation (MCF)?

— It was spontaneous: Kirsan Ilyumzhinov voiced such a possibility, and on reflexion, I accepted. I still needed to get the support of the chess-players of Moscow in the election though. Then again, I considered rationally my wishes and my abilities and proposed the program of development of chess in the capital that was supported by the great majority.

— Why didn’t you refuse, why didn’t you say: «No, thank you. That’s an exciting proposition, but I’m busy with a lot of other things»?

— The most important thing in life is the balance. I devote a lot of time to business: my working day starts at nine in the morning and ends around two in the morning. It’s important to balance different sides of life, to have a certain outlet that would permit to redirect your thoughts to something else, equally important. Chess and MCF projects make my life less stress-filled, and I really like it. Besides, the work on the development of chess has a social focus. The game, for instance, teaches to think, to consider and then act. That’s an importang skill for our children, admit it. Also, it’s a perfect hobby for retired people that allows them to adjust to their age and the corresponding problems and to stay sharp. And, as I know from my own experience, it’s a perfect hobby for any thinking person with a pressurized lifestyle. And there are a good few of them now.

— Does the mechanism of decision-making in business resemble the mechanism of choosing a move in chess?

— Certainly, there’s some resemblance. The variability in choosing the course of actions. Sometimes actions in business are part of a long-term strategic plan aimed, so to speak, at improving your position. And sometimes the situation calls for urgent and firm measures.

— All of it must be much in demand for the work of your Legacy Square Capital fund with the specialization in working with distressed assets. Is the fund’s specialization profile a specific trend of a down economy?

— The fund’s experts have been working in the Russian and world markets for over 15 years. But you are right, the work with distressed assets is the most perspective in this particular period. In the conditions of global instability of the world economy, the task of the fund is to make a profit for the investors by working with distressed assets. We are performing it successfully. Also, this work leads to the recovery of the economy of the whole country due to the improvement of the financial situation of enterprises, as well as the preservation of jobs. Since the fund works in cooperation with the banks and asset holders and, to a great extent, gives a new lease of life to the businesses.

— And what was the immediate reason for the creation of the Legacy Square Capital fund?

— The situation in the Russian economy and particular difficulties in the banks' work with the indebted companies that couldn’t fulfill their debt service obligations (especially those credited in foreign currency). The situation was dramatized by the outflow of the western capital from the Russian Federation. Although, on the whole, the fund has no geographic and industrial limitations. Usually we focus on the companies-owners of well-known brands that are unable to fulfill their obligations due to difficult economic situation. The standard criteria of «admission» to the project are: pre-bankruptcy situation, differences between the owners, the shareholders, and the obligatory presence of cash flow.

— Do many Russian businesspeople now show such a serious interest in chess as you?

— The name of Andrey Vasilievich Filatov who directs successfully the Russian Chess Federation comes to mind at once. The charity fund «Ladoga» of Elena Petrovna and Gennady Nikolayevich Timchenko is doing a remarkable job in the regions with the program «Chess at Schools».

— In Soviet years, Moscow was the indisputable capital of the world chess, but after the breakup of the USSR it los this status. Not so many tournaments were being held here compared to earlier times. Is it coming back now?

— I must disagree, as I know the approximate statistics on chess tournaments of different rankings in Moscow. Over a thousand of those is held per year, and I’m only referring to official competitions. We hold one of the biggest world festivals — Moscow Open. This year, around 1.8 thousand of sportspeople from 42 countries of the world participated in it. The greatest number of grandmasters, trainers, judges live here. Lastly, together with the Department of Education of Moscow we are working a lot with the schools of the capital. The goal is the integration of chess into the formal education system. On the whole, according to the research, approximately 10% of the residents of Moscow play chess. Not necessarily on professional level, but in company, in the park, at home with the children, but they do play… One of the projects, by the way, is called «Chess on the Boulevards», we are implementing it in cooperation with the Center of Physical Education and Sports of the Central Administrative District. It’s when on the weekends in the warm season, the tournaments are held on different boulevards of Moscow, where any resident of Moscow can come and play. That’s an excellent event, by the way!

— Two Russian grandmasters are taking part in the Candidate Tournament. But we must admit that in recent years our home chess-players have given ground a bit. Russia hasn’t had the champion’s title for almost ten years, and it’s a long time. In your opinion, what are our prospects of winning it back? Are there real talents with champion potential among the representatives of the young generation, including the residents of Moscow?

— Certainly. On the whole, I hold the perspectives of the Russians in this tournament in high estimation. Both Sergey Karjakin and Pyotr Svidler are able indeed to win the right to play a chess match with the world champion. And they do have champion potential, which they have proved more than once by winning in the most serious competitions. Our prospects are excellent as well. For instance, the reigning world chess champion among juniors is the resident of Moscow Mikhail Antipov.

— What can chess give to the country?

— You yourself know very well the specific nature of the times we live in. Now we’ll need all the instruments that evolve the brain, the ability to think consistently. Chess, undoubtedly, is one of them.

Interviewed by Aleksandr Petrov