When in Russia...
Jane Anson
Avoid etiquette errors with our handy guide to the dos, and definitely don't dos, of conducting business in Russia
2008-10-12
In recent years, Russia has adopted flat taxation, has banished inheritance tax, and has cut numerous red tape demands for small businesses. All of this is making it an increasingly attractive place to do business, but there are still a few things to keep in mind.
For one thing, plan ahead. Research who to meet before you arrive, and make appointments well in advance. Don’t plan too many meetings in one day, as they very often start or finish late – and don’t expect the first one to yield any results, as it is usually an opportunity simply to assess your credibility. It is the business dinner where you are most likely to seal any deals – so never turn down an invitation, and remember to hold off eating until the toast has been given!
It's essential that you deal with the key decision-makers, rather than 'gate-keepers' who are often sent to the first meeting, and ensure that you have a contact outside of the negotiations who is an expert in Russian law, which is constantly subject to change in both interpretation and application.
Steven Wray, Region Director Russia/CIS for SCA Personal Care Division, has lived and worked in Moscow for years. ‘Russians are proud of their nation, history and culture; show an interest and you will be well appreciated. Take advice from Russians and locally based foreigners on any deals, activities or partners. You should always be open and appear trustful but you need to be very careful. If you deal with officials and need their approval for contracts, you will probably need to work through a Russian partner who knows how to oil the wheels. And do not believe that what you see in Moscow is representative of the whole of Russia…’
And one last thing. Russia is a drinking culture, and you refuse their hospitality at your peril!
