The People
Russia has had a long history of totalitarianism, which has
resulted in a rather fatalistic approach to living. The desire to work
individually under personal initiative was suppressed by the Czarist and
Communist states. With the advent of perestroika (restructuring), the
Soviet/Communist value system has been scrapped, but the pace of reform has
been slow and many are finding it very difficult to adapt to the Western values
of individualism and profit maximization. Older Russians are generally quite
pessimistic and don't have much faith in a better life in the future. Younger urban
Russians have adopted a more Western outlook on life.
Relationships & Communication
- Even though it may sound a bit stiff it is commonplace when doing business in Russia to introduce yourself using only your surname. Before meeting your Russian counterpart ensure you find out if there are any titles they use as these are extremely important and should be used. If you are visiting Russia it is appropriate to refer to your counterpart by either "gaspodin" (a courtesy title similar to "Mr.") or "gaspazhah" (similar to "Mrs." or "Miss") plus his or her surname. On the whole Russians have three names. The first name is the given name while the last name is the father's family name. The middle name is a version of the father's first name, known as a patronymic; for a man, it ends with the suffixes "vich" or "ovich" meaning 'son of.' For a woman, the patronymic is also the father's first name but with suffixes "a" or "ova" added, which means 'daughter of.'
- Russians are transactional and do not need to establish long-standing personal relationships before they do business with people.
- It is still a good idea to develop a network of people who you know and trust. The Russian word "svyasi" means connections and refers to having friends in high places, which is often required to cut through red tape.
- Patience is essential.
- It is best to err on the side of formality when you first make contact.
- Sincerity is crucial as it is required to build trust, and trust is needed to build a relationship.
- Most Russians do not trust people who are 'all business'.
- An indication that you have successfully developed a personal relationship is being asked for a favor by that person.
Business Meeting Etiquette
- Appointments are necessary and should be made as far in advance as possible.
- It often takes roughly 6 weeks to arrange a meeting with a government official.
- Confirm the meeting when you arrive in the country and again a day or two in advance.
- The first week of May has several public holidays so it is best avoided.
- You should arrive punctually for meetings. Russians appreciate punctuality. Business meetings generally begin on time.
- Typical Russian schedules are constantly changing and everything takes longer than expected, so be prepared to be kept waiting.
- Meetings can be cancelled on short notice.
- The first meeting is often a vehicle to determine if you and the company you represent are credible and worthy of consideration for future business dealings.
- Representatives of the Russian company or government body are usually seated on one side of a table at meetings with guests on the other side.
- Initial greetings may come across as cool. Do not expect friendly smiles.
- Use the time effectively to demonstrate what differentiates your company from the competition.
- Expect a long period of socializing and getting-to-know-you conversation before business is discussed. Have all printed material available in both English and Russian.
- Russians expect long and detailed presentations that include a history of the subject and a review of existing precedents.
- Meetings are frequently interrupted. It is common for several side conversations that have nothing to do with the topic of the meeting to be carried on during the meeting.
- At the end of the meeting, expect to sign a 'protokol', which is a summary of what was discussed.
Business Negotiating
- Meetings and negotiations are slow. Russians do not like being rushed.
- It is a good idea to include technical experts on your negotiating team.
- Pitches or presentations should be simple and straightforward. Generally Russians are not impressed by foreigners doing business in Russia who use special visuals, flashy PowerPoint presentations and the like. These do not sway decisions. The most critical element is demonstrating your knowledge, professionalism and expertise.
- Russians usually negotiate technical issues very competently, directly and clearly but, being newcomers to capitalism, often do not fully understand Western business practices and objectives. You may have to explain the reasoning behind some of your demands.
- Hierarchy is important to Russians. They respect age, rank and position. The most senior person reaches decisions.
- Russian executives prefer to meet with people of similar rank and position.
- The highest-ranking person will sit opposite the most important foreign businessman. The others will be more casually arranged, but generally you will not be addressed directly by someone who outranks you.
- Russians see negotiations as win-lose. They do not believe in win-win scenarios.
- Under Communism there were no incentives for bureaucrats to perform well or to even be pleasant toward clients; this meant that the usual answer to any question was "No." This practice is still found in Russian society today, but "No" is usually not the final word on an issue. One has to bargain and be persistent to get what he or she wants.
- Have written materials available in both English and Russian.
- Russians view compromise as weakness. They will continue negotiating until you offer concessions.
- Russians find it difficult to admit mistakes, especially publicly. They also find it difficult to risk offending someone by making requests or assertions.
- Russians may lose their temper, walk out of the meeting, or threaten to terminate the relationship in an attempt to coerce you to change your position.
- Russians often use time as a tactic, especially if they know that you have a deadline. Be cautious about letting your business colleagues know that you are under time pressure or they will delay even more.
- As a foreigner, you should realize that "Final Offers" are often not actually the end of the negotiations, and that often times the outcome will be more beneficial and attractive if you can hold out.
- Nothing is final until the contract is signed. Even then, Russians will modify a contract to suit their purposes.
- Do not use high-pressure sales tactics as they will work against you.
Body Language
- Russians are a very demonstrative people, and public physical contact is common. Hugs, backslapping, kisses on the cheeks and other expansive gestures are common among friends or acquaintances and between members of the same sex.
- Russians stand close when talking.
- Putting your thumb through your index and middle fingers or making the "OK" sign are considered very rude gestures in Russia.
- Do not stand with your hands in your pockets. This is considered rude.
- A handshake is always appropriate (but not obligatory) when greeting or leaving, regardless of the relationship. Remove your gloves before shaking hands. Don't shake hands over a threshold (Russian folk belief holds that this action will lead to an argument).
- Shake hands firmly and maintain eye contact when doing so.
Dress Etiquette
- A "serious" businessperson is expected to look formal and conservative. Wearing very light or bright colors might make you appear lazy or unreliable to a Russian.
- Men should wear business suits and ties.
- Men often do not take off their jackets in negotiations.
- Women should wear subdued colored business suits with skirts that cover the knees.
- Shoes should be highly polished.
Business Cards
- Business cards are handed
out liberally in Russia and are always exchanged at business meetings. The
ceremony of presenting and receiving business cards is important. Don't
treat it lightly.
- Business cards are exchanged after the initial introductions without formal ritual.
- Most people at a meeting will line up their cards at the table in order to remember the names and seating arrangements. This is not required or ritualized, as in some Asian countries.
- Have one side of your business card translated into Russian using Cyrillic text.
- Include advanced university degrees on your business card.
- Your card should clearly state the year your company was founded and your title.
- Hand your business card so the Russian side is readable to the recipient.
- If someone does not have a business card, note their pertinent information.
Dining and Entertainment
- When dining in a restaurant, arrive on time.
- Russians are great hosts and love entertaining guests in their homes. They will often put more food on the table than can be eaten to indicate there is an abundance of food (whether there is or not). Guests who leave food on their plates honor their host. It means they have eaten well.
- If you're invited for dinner, don't make other plans for later in the evening. You are expected to spend time socializing after the meal.
- An invitation to a Russian dacha (country home) is a great honor.
- Do not turn down offers of food or drink. Given Russian hospitality, this can be difficult, but to decline such offers is considered rude.
- At formal functions, guests do not usually start eating until the host has begun. At such functions, no one should leave until the guest of honor has left. If you are the guest of honor, do not stay too late.
- Know your limits when drinking alcohol in Russia. Drinking is often an all-or-nothing affair -- moderation is not understood.
- Toasts, which are sometimes lengthy and occasionally humorous, are common. The host starts and the guests reply. Do not drink until the first toast has been offered.
- After a toast, most Russians like to clink their glasses together. Do not do so if you are drinking something non-alcoholic.
Helpful Hints
- Russians are very proud of their culture and enjoy opportunities to talk about their music, art, literature and dance. Knowledge about art, music and some Russian history is appreciated.
- Learn Russian! Learning the language is of incalculable value, and is the best way to win friends for yourself, your company and your country. If that simply isn't possible, try to learn at least a few phrases in Russian. It doesn't have to be perfect; Russians greatly appreciate any attempt by foreigners to speak their language.
- Never refer to a Russian as "Comrade."
- Do not expect to find smoke-free areas anywhere. A standard joke among foreign businesspeople in Russia is that Russian buildings have two sections: "smoking" and "chain-smoking."
- To some extent, Moscow has already outgrown many of the rituals of Russian business—nights of vodka drinking, handshake deals, trips to the banya, days of getting-to-know-you time. But the farther out you go into the regional centers (which are growing in importance), the more of such hazing you can expect. This doesn't mean you can dress more casually; on the contrary, people have more to prove in the regions and will take extra care to display their fancy European trappings.
Sources and Additional
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