Reborn in Tokyo: From Heiress to Global Tycoon

Chapter 370 The City on the Crack

Sobchak spoke first.

"Mr. Saionji, first of all, I must say that your humanitarian donation in Moscow has deeply warmed the hearts of Leningrad." He spoke slowly, leaving natural pauses between each sentence to allow the translator to follow. "Especially the medical supplies; for many organizations, this was a timely act of kindness. We will never forget the Saionji family's generosity."

Shuichi smiled. "We're honored to be of even a little help."

Sobchak nodded and continued.

"I have always been very fond of Japanese culture. When I was young, I read Kawabata Yasunari's 'Snow Country,' which is a truly beautiful work."

He smiled, as if sharing a personal memory.

"Back in college, a few of us classmates passed around a Russian translation. The translation wasn't very good, but the sentiment was still moving."

"Mr. Kawabata is indeed a master," Shuichi replied.

"Leningrad is Russia's window to Europe," Sobchak naturally changed the subject. "Peter the Great built this city so that Russia could see the outside world."

He paused briefly, his gaze sweeping across the snow-covered garden outside the window.

"Now I think this window should also face Asia."

Xiuyi, holding his teacup, did not interrupt.

"Leningrad is a city with world-class cultural heritage." He picked up his teacup, took a sip, and said, "The Winter Palace, the Mariinsky Theatre, the university, the Academy of Sciences, and the city itself. They all need maintenance and new ways to continue to exist."

He put the teacup down.

"Frankly speaking, the central government's funding is no longer sufficient to meet the needs of this city."

He looked at Shuichi.

"We need to learn to find our own partners."

His gaze shifted briefly between Shuichi and Satsuki.

"If you have any interest in Leningrad's port, food supply chain, or urban infrastructure during your vacation, we would be very happy to provide information and arrange a visit."

Sobchak spoke very politely.

He was essentially inviting a friend to visit his home, and then conveniently mentioned that the roof needed repairs, the fireplace needed fuel, the storage room needed reorganization, and the homeowner didn't have enough money at the moment.

Xiuyi naturally understood.

He smiled gently.

"Leningrad is indeed a fascinating city. Our visit this time is primarily driven by personal interest," he said. "However, as a businessperson, I would naturally be interested in learning about your city's development plans if given the opportunity."

This statement contains neither a promise nor a refusal.

Sobchak clearly accepted this respite. He didn't press the issue further, but instead naturally steered the conversation towards the young people around him.

"Comrade Chubais knows more about the specifics of the city's economy than I do," he said. "He is in charge of some work on economic reform and is an expert in this area."

Chubais bowed slightly.

His Japanese was poor, and he wasn't in a hurry to use English either. Instead, he spoke directly in Russian, with Sobchak personally translating for him—this in itself was a gesture.

The fact that a de facto city leader of Leningrad was willing to act as an interpreter for a young economist during a private meeting shows that he not only valued the person but also wanted him to be valued by his guests.

Chubais did not engage in any further pleasantries.

He waited for Sobchak to finish speaking before cutting straight to the point.

"Lord Saionji, Miss Saionji."

"Leningrad has many large state-owned enterprises. Shipbuilding, machinery, electronics, military industry, food processing, and all sorts of other industries."

"They belong to the state on paper, but in practice no one is really responsible for them."

Sobchak translated this sentence into Japanese.

Chubais continued:

"The losses of these state-owned enterprises were borne by the central government, orders were allocated by departments, and prices were determined by planning."

"Therefore, the problem now is not whether these companies have value; due to the economic system implemented in our country, they have no price."

He paused for a moment.

"And without prices, no one is responsible for their survival."

It paused for another beat.

"To address this problem, we are exploring a solution—to give assets a price, and let the price determine the flow of resources."

He did not say "privatization".

This word is too dangerous right now; it can provoke many people and turn the conversation from a technical issue into a political stance.

But he has already revealed the most important thing before privatization.

price.

Let assets have prices, let prices determine the flow of resources, and let the flow of resources redefine responsibility. As for who ultimately gets these assets, that's just the next step.

Satsuki sat beside Shuichi, her expression unchanged. A reserved smile still played on her lips, like a dutiful daughter listening to her father's friend explain economics.

Chubais's gaze lingered on Satsuki's face for less than a second.

Sobchak tactfully changed the subject.

"Of course, these are all technical matters." His smile softened again. "It's just a greeting today."

He stood up and straightened his scarf.

"There will be a small reception at the Winter Palace tomorrow. Several friends from the university and the municipal government will be there. If His Excellency Saionji and your daughter are interested, they are welcome to attend in a private capacity."

Xiu glanced at Satsuki.

Satsuki placed the picture book on her lap, her eyes crinkling slightly.

"Father, we came to Leningrad to see the Winter Palace."

Xiu smiled. "Then I'll gladly accept your offer."

Sobchak nodded in satisfaction, shook hands with Xiu Yi, and took his leave.

When he turned to Satsuki, his tone was more serious than when he entered.

"Miss Saionji, Leningrad is pleased to welcome you."

"Thank you." Satsuki bowed slightly. "Leningrad is more beautiful than I imagined."

……

The living room fell silent again, and the firewood in the fireplace crackled softly.

Xiuyi picked up his teacup and took a sip.

"This person is smarter than the one in Moscow."

Satsuki raised her eyes.

Shuichi looked out the window; the shadows of the plaster sculptures in the garden were stretched long by the afternoon light.

"He also knew that Moscow couldn't give him anything."

Satsuki sat up a little straighter on the sofa, put the picture book on the coffee table, and turned to face Shuichi.

"Father saw it all during his two weeks in Moscow," she said softly. "The Academy's funding has stopped, the factory equipment is outdated, and the hotels can still maintain a respectable facade, but behind that facade lies surveillance, shortages, and inertia. The system is still holding on, but it's already empty inside."

This time, Satsuki didn't go to be the "riddler." Seeing that Satsuki was getting serious, Shuichi put down his teacup, sat up straight, and looked at Satsuki.

"What we can get here is divided into three levels."

She held up one finger.

"First, talent."

"There are many top-notch researchers and engineers in the Academy of Sciences, universities, design bureaus, and factories."

"The problem is that they are now trapped in a system that cannot provide them with equipment, funding, and a future."

"Not everyone is suitable to take away, and not everyone is willing to leave, but as long as salaries cannot be paid, the laboratory cannot be maintained, and the equipment cannot be updated, they will definitely look for other ways."

"Germans, Americans, Israelis, they'll all be coming. We certainly can't eat all of them, but we can't arrive too late either."

Satsuki looked at Shuichi, who was rubbing his chin and looking at the picture book on the coffee table.

"Father, talent is not a one-time transaction. A researcher brings not only his mind, but also his students, his collaborators, and his papers."

"He knew which laboratories were still valuable, which design bureaus had run out of funding, and which people were still loyal on the surface but were already preparing to leave."

Her voice was very soft.

"Once we catch the first batch of people, the rest of the list will come on its own."

The living room fell silent for a moment.

Xiuyi picked up the teacup, but didn't drink it.

"And the second one?"

Satsuki lowered her second finger.

"Second, ports and trade routes."

She looked out the window. The snow in the garden was thick, and the distant riverbank was covered in white, like a boundary that had not yet been written in ink.

"Leningrad is one of the most important gateways to the Baltic Sea. It connects not only the city itself, but also railways, warehouses, shipyards, food supplies, foreign trade departments, and the entire industrial system to the northwest. In the past, all of these things operated according to plan; prices were not determined by the market, and the flow of goods was not determined by merchants."

"But once foreign trade permits are loosened, or local governments are able to circumvent some of the central government's restrictions, ports will no longer be just ports."

She looked away.

"It will become a gateway to hard currency."

Xiu frowned slightly upon hearing this.

"You want to control the port?"

"You can't say it like that, and you can't do it like that."

Satsuki answered quickly.

"Foreign oligarchs directly controlling Soviet ports is too conspicuous and too dangerous. What we need to control are the parts of the ports that are indispensable for foreign trade."

She went on to explain each point one by one.

"The Russian side can retain the port's flag and name, and even allow locals to hold all public positions. But if they want to sell their goods to Japan, to Asia, and to markets that require stable payments, they must go through a reliable external system."

Xiu Yi remained silent for a moment.

"Saionji Trading Co., Ltd. can provide this system."

"Yes."

Satsuki nodded.

"Food can be imported from here, machinery can be brought in from here, and timber, oil, metals, fertilizer raw materials, and seafood can all be repriced here."

"On the surface, we are just facilitating trade for Leningrad. In reality, we are determining in advance one thing—what format should be used for goods from this land to become money on the international market in the future."

She looked at Shuichi.

"Whoever provides the format can leave their mark on every transaction."

Shuichi didn't say anything.

He understood.

A transaction only happens once, but a conduit allows every transaction to pass through your hands.

Satsuki lowered her third finger.

"Third, energy and basic resources."

This time, she spoke even more slowly.

"Leningrad itself is neither an energy-producing region nor the location of Far Eastern resources. What Sobchak can directly talk about today are the port, urban infrastructure, cultural heritage, food supply, and enterprise reform. But the real importance of these things lies not in their intrinsic value."

"What is it about?"

Xiu asked.

"The point is that they will be among the first assets to be reinterpreted."

Satsuki said.

"In the past, state-owned enterprises couldn't be sold, ports couldn't be sold, urban infrastructure couldn't be sold, and even the talent of the Academy of Sciences couldn't be sold. But now, they'll give every action a new name."

"Sales will be described as collaborations. Privatization will be described as reforms. Transfers of state assets will be described as the introduction of external capital to maintain operations. Changes in control will be described as joint ventures. Foreign investment in some functions of a port can also be described as warehousing, equipment, management, and trade services."

"Father, this is where the real value lies. They first rewrite what was previously untradeable into projects that can be cooperated on; then they turn these projects into contracts that can be stamped, paid for, and delivered."

Xiu Yi whispered:

"Is that contract reliable in a situation like this?"

"Unreliable".

Satsuki said it almost definitively.

"The Slavs' credibility is probably even lower than that of Americans."

"Therefore we cannot look at the contracts alone. Many of the contracts in the Soviet Union today are more like a record of political relations."

"The person who stamps the seal today may be out of office tomorrow; a license that is valid today may be reinterpreted by the new republican government next year; the window for foreign trade today may fall into the hands of another faction the year after."

She leaned forward slightly.

What we need to look at is a path.

Shuichi also leaned forward slightly.

Satsuki continued:

"Who proposed the project, who holds the seal, who is responsible for its execution, who controls the goods, who controls the port, where the payment is received, and who bears the cost of backing out if problems arise."

"Only when all these people are included in the structure can a contract be more than just a piece of paper."

She paused for a moment.

"The Saionji family cannot become the masters of Russia. That is neither realistic nor safe."

"In the future, a group of people will emerge here who own mines, oil fields, banks, media outlets, and factories. They will take the most important things from the Soviet legacy. Only when those things are in their hands will they have local political protection."

Shuichi's gaze deepened.

"You want to support them?"

"It won't work."

Satsuki gently shook her head.

"Supporting them means they will obey us, but that's an illusion."

"Those who truly gain access to resources will ultimately act in their own interests. When they are weak, they may listen to you to some extent, but once they become powerful, the first thing they often do is to get rid of those who once helped them."

Her fingers tapped on the picture book.

"Therefore, our goal cannot be to control them."

"What we need to do is to make their path to the international market pass through the gates of Saionji."

Shuichi did not respond immediately.

Satsuki continued:

"Let the Russians fight over the mines, oil fields, and factories; that's their internal game. We need to avoid the very center of the table and reach out somewhere else."

She looked at Shuichi.

"No matter what they end up with, if they want to turn those things into real money, they need a ship, credit, buyers, a contract format, and a stable settlement channel. Saionji can prepare these things in advance."

Her finger paused in mid-air for a moment.

"This is the rule."

The only sound in the living room was the faint gurgling of water from the heating pipes.

Xiuyi slowly put down his teacup.

"The rules you're talking about aren't about how they divide it."

"no."

Satsuki answered.

"Those are the Russian rules. We can't make them, and we shouldn't try to."

"What we need to establish are the rules for how they sell their assets to the world after they've divided them up, how they raise funds, how they get recognized by banks, and how they reassure foreign buyers to make payments."

She lowered her eyes slightly.

"Assets may belong to someone, but their price is not necessarily determined by that person."

Upon hearing this, Xiu finally smiled.

"This doesn't sound like a vacation."

"It's a vacation."

Satsuki also smiled slightly.

"My father loves the Winter Palace, I love art, and the Saionji family has a deep respect for Russian culture."

"I was just 'doing some work' on the side while on vacation."

"Work-life balance is important; isn't making money a way to relax?"

She paused for a moment, then her tone calmed down again.

"But we must be clear to ourselves that Leningrad is not the end."

"This can be considered a model. If we can first establish a path for cooperation between local governments, state-owned enterprises, foreign trade organizations, and foreign investment, then this can be a valuable example."

"Then a similar path will appear in the Far East, and a similar path will appear in Sakhalin. Timber, minerals, seafood, oil and gas will all be revalued along a similar path."

She looked at Shuichi.

"By the time everyone realizes these things are valuable, the price will no longer be what it is now."

Xiu Yi asked:

"So you're not in a rush to discuss terms this time?"

"No rush."

Satsuki said.

"The fact that Sobchak took the initiative to come to us shows that he needs us no less than we need him."

"If we rush things now, it will make us seem like we're only interested in taking advantage, and it will also make him wary."

"We need to get into his circle first, to know who's in charge, who can sign, whose signature is valid, and who's just standing on the stage talking."

She paused.

"And who will betray whom in the future?"

Xiu looked at her for a while.

"You've thought very far ahead."

Satsuki sighed softly.

"Thinking far ahead...?"

She turned her head to look out the window.

"This city... or rather this country, is already standing on the edge of a crack."

"We just saw where the crack would go earlier than they did."

The snow is still falling outside the window.

The garden sculptures in the distance were gradually covered by white, and the faces of the old era were being buried by the new snow.

The room was well-heated, the tea was warm, and the furniture provided by the Soviets was still neatly arranged, as if the house, the island, and the city still belonged to a complete and vast country.

"Work and vacation can be done at the same time," she concluded. "I really want to see the paintings at the Winter Palace tomorrow. But meeting the people I need to meet at the reception won't interfere with anything."

Xiu nodded slightly and didn't ask any more questions.

He stood up, as if he had finally put the conversation aside for the time being.

"Then let's go see the Winter Palace tomorrow."

Satsuki smiled.

"Yes, Father."