Decoding the Russian Enigma
Posted on Mon, Aug 09, 2010
Photo credit: A. Nowitz
posted by Lyudmila Bloch, Business Etiquette Expert
"I cannot forecast to you the action of Russia. It is a riddle, wrapped in a mystery, inside an enigma; but perhaps there is a key…" said Winston Churchill in 1939.
And this live enigma continues to puzzle and mystify even those who once lived over there. Doing business in Russia is a huge challenge because the rules of engagement change constantly, and without warning.
So what do you need to know before you go?
Business etiquette in Russia is dictated by people with money and power, so in order to survive, one needs to have plenty of ingenuity and killer business instincts every step of the way. Resourceful Russians will bend the rules as much as they can, and exploit their opponents’ weaknesses to achieve their goal. Don’t expect a “win-win” business solution: the winner takes it all.
Knowing the Russian language is a great advantage, because understanding subtle linguistic nuances might help you detect early signs of distrust or hidden agendas revealed in conversation. Hiring your own interpreter, who can represent your interests and accurately judge a situation, is another solution. Never accept a free interpreter from your business opponent, and don’t assume that your Russian business colleagues do not speak English. Many are fluent, and graduated from prestigious Western schools but want to use a translator in order to better understand your intentions and private comments during business negotiations.
Being introduced as a trusted colleague or friend can lead to successful business ventures provided that there is plenty of financial support and you offer products and/or services they want to purchase.
Russians don’t easily yield, and expect their foreign business partners to make first moves and offers. The terms of a deal are never written in stone and may, or may not, change in one way or another overnight. So don’t give in easily, and engage in a thorough exploration before making any commitments. Being agreeable and forthcoming is likely to be perceived as weakness or naiveté.
Understanding Russian corporate hierarchy is critical because the wealthy and powerful also tend to be extremely arrogant and self-obsessed. (Most executives are men, and equal opportunity is not a subject for discussion.) They’re apt to mercilessly prejudge you based on their own set of business values, often very different from criteria commonly applied in the West.
Each successful negotiation can culminate in a dinner, an invitation to a “dacha” (a summer place), or a night out at a fancy club or yacht. Restaurants, hotels, and nightclubs are exuberantly expensive, so make sure to inquire in advance as to who, where, what, and how much! Russian businesspeople tend to be big snobs and want to be seen with the “right people” at exclusive hangouts for the elite. Their favorite expression is “veep” (VIP), a powerful or famous person who arrives with an entourage, like Naomi Campbell and her new beau, Vladislav Doronin, a leading real estate developer in Moscow. Campbell, 40, met the Russian tycoon at the Cannes Film Festival, in 2008, shortly after her outburst on a British Airways flight that led to her arrest, according to the UK’s Mail Online paper. Ms. Campbell is now residing in Moscow and trying to solve her own puzzle in connection to Charles Taylor, a former African dictator who is currently on trial for his unspeakable war crimes. Stay tuned for Business Culture in Russia Part 2.
To read more about N. Campbell's testimony during Taylor's trial, click on this link.
http://www.thisislondon.co.uk/standard/article-23863642-naomi-campbell-to-be-asked-about-blood-diamond-at-liberian-leaders-war-crimes-trial.do