Post on 09-Apr-2018
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Overview & Business Culture.
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One Minute History of RussiaOne Minute History of Russia
Before 1991 - Russia was a communist centrally planned economy.
In December 1991 - The Soviet Union ceased to exist, and the RussianFederation was born, communism was abolished.
1992- 1999 - Radical market reform under Boris Yeltsin, state assets wereprivatized, foreign trade opened up, economy tanked.
2000-2008 - Oil boom and Ruble devaluation of 1998 fuel economicrecovery, President Vladimir Putin lead stabilization effort, renationalizedsome companies, took away some freedoms.
March 2008 Now - Putins protg Dmitri Medvedev, is elected as the newPresident, Putin becomes prime minister.
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Key facts about RussiaKey facts about Russia
Area - 17 million sq km,1.8 times the size of US.
CapitalMoscow.
Population - 140.3 million. Major language - Russian
Life expectancy - 62 years (men), 74 years (women)
Ethnic Groups:Russian, Tatar, Ukrainian.
PurchasingPower Parity (PPP)- $2.088 trillion.
GDP composition
Agriculture 7%, Industry 37%, Services:
56%.
GDPgrowth rate - 8.1% p.a .
GNIper capita: US $9,370.
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Russian GDP GrowthRussian GDP Growth
GDP growth in Russia in the last ten years (1999-
2008)
(6,0)
(4,0)
(2,0)
-
2,0
4,0
6,0
8,0
10,0
12,0
1 2 3 4 5 6 7 8 9 10Annualgrowth,
%
% change
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Rubles vs. DollarsRubles vs. Dollars
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Russian Booming RegionsRussian Booming Regions Moscow Financial Capital
St.PetersburgTransportation and Industrial hub
Sochi 2012 Olympics, $15-20 Billion of FederalInvestment
WesternSiberiaOil, Gas, Timber
SouthernSiberiaMetals, Timber, Construction,
Infrastructure Far EastTimber, Oil, Pipelines, Fishing
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RUSSIAN BUSINESSRUSSIAN BUSINESS
CULTURECULTURE
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Doing business in Russia? YES, butDoing business in Russia? YES, but
neither simple, nor easyneither simple, nor easy
Fierce competition to gain control over rich
resourcesSelection of the Russian partner (especially
in the region)
Normally long-term projects worthy ofdevelopment
Building trust withRussian staff is critical
Special marketing strategy
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First Name orTitle?First Name orTitle?
Very intimate friends or relations - refer to
one another by the first name.
Ensure that you learn the titles of everyoneyou plan to encounter
Russians have three names: the first name
is a given name, the last name is the father'sfamily name, the middle name is a version
of the father's first name.
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GENDERASPECTSGENDERASPECTS
Women usually do not hold high positions in the
Russian Business culture.
There are more women in business education
then in business.
Foreign businesswomen sometimes face
adversity from the male-dominated Russianbusiness culture.
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MEALS AND BUSINESS ETIQUETTEMEALS AND BUSINESS ETIQUETTE
The business breakfast is not a part ofRussianbusiness culture.
Business dining is getting more and more popular-is
generally taken as a time for sealing a deal. The center seats are reserved for the most senior
officials.
Begin eating only after somebody says a toast.
Toasting is a very important part of dining. Russians use the continental style ofholding
utensils.
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SOME GENERAL FEATURESSOME GENERAL FEATURES
The handshake is common.
Eye contact is very important, must be maintained
as long as the individual is addressing you.
Smoking in public places is still a commonoccurrence, although some restrictions are slowly
imposed.
Wearing your coat and/or winter boots in theatres,
office buildings, universities or similar publicspaces is considered unacceptable.
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ATTITUDETOWARDS FOREIGNATTITUDETOWARDS FOREIGN
PARTNERSPARTNERS
The first meeting is usually just a formality-a time to
assess the credibility of you and your company.
Russians can sometimes place a great deal of
confidence in your professional competence and
experience; very high expectations and demands.
Russian business people are open-minded to new
ideas, especially from western business culture Russian negotiators could make minor concessions
and ask for major ones in return.
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BUSINESS DRESS CODEBUSINESS DRESS CODE
Old Russian proverb--One meets you depending
on how you're dressed and says good bye
depending onhow wise you seem to be
Russian businesspeople pay a lot of attention to
how they are dressed. Russian people in general
probably spend more money from their family
budget on clothing then any other nation in the
world.
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Structure and hierarchy inStructure and hierarchy in
Russian companies
Russian companies
The hierarchical structure in Russianbusiness practices means that thedecision makers higher up have
authority over their subordinates.However, the nature of the collectivegood often encourages a flexible anddemocratic work ethos.
Showing respect for seniority andrecognizing the hierarchical structureis vital for establishing andmaintaining strong business
relationships.
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Working relationships in RussiaWorking relationships in Russia
Personalandinformal contact is acentral part in doing business inRussia.
Physical contact during business
meetings (a simple hand on the armor even embracing) is a positive sign.The notion of social space is close inRussia.
Insituations of conflict - to avoidtaking an official stance andremember that Russians are 'peopleorientated' and will respond to amore personalapproach.
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Working in RussiaWorking in Russia
The Russians attitude to time means that a fewminutes delay on their part is of little importance.However, they will expect you to be punctual.
Faxesand emails are the best way to communicate in
Russia, as the post can often be unreliable. It iscustomary before making a trip to Russia to inform theprospective company of your intended businessproposals and objectives.
Paperworkand putting pen to paper is an essentialpart of all working practices in Russia. In general, theyhave little faith in unsigned documents.
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Business practices inBusiness practices in
RussiaRussia Business cards are essential. If possible,
ensure that one side is printed in Russian and
one side in English. Presentations should be straightforward and
comprehensible.
Although many principal concerns arediscussed in an informal environment, finalnegotiations will be conducted in the office.
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Making appointmentsMaking appointments
Persistence and patience are essential. Once yourappointment is scheduled, do everything you can toavoid cancellation.
Don't schedule your trip to Russia near the end ofJuly or during the month ofAugust- this is the time
of year many people take their vacations.
The Russian day begins early, but it can be difficultto foresee when all other daily activities will beginand end. Schedules are constantly subject to change,
often at the last minute. Allow plenty of time for each appointment.
Business day is usually 9:00 am to 6:00 pm Mondaythrough Friday and some Saturday mornings.
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ConversationConversation
Visitors should try to speak in a calm, moderate, tone ofvoice at all times.
YourRussian colleagues will be delighted if you makethe effort to speak even a few sentences of their
language. Russians are sometimes very careful about what they
say, speaking metaphorically, symbolically, and perhapseven cryptically.
Bringing up the subject ofRussian culture and history isappreciated.
Compliments - with caution, they may cause a feeling ofmisplaced obligation. (admiring a decorative object,
yourhosts may insist that you take it).
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GIFTSGIFTS
Russians take pleasure in giving and receiving
gifts . Russians spend a lot of money on gifts .
Gifts for children are usually opened in private,
gifts for adults are generally opened in the
presence of others.
Gifts are expected for social events, especially as
thank-yous Bringing a bouquet of flowers for women.
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SOME Do'sand Don'tsSOME Do'sand Don'ts
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D O sD O s DO shake hands firmly when greeting and leaving your
partners and make direct eye contact. DO partake in small talk that involves talk of family and
personal matters, before dealing with business.
DO make a gift that symbolizes the stature of your
company, preferably an item characteristic of your localarea or one that displays the company logo.
Knock before entering an office
Close the door behind you, when leaving an office
Supply beverages and snacks during business meetings
Go out and have a drink with your counterparts, it is agood way to break the ice.
Bring small gifts for the children of a home you visit
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Don'tsDon'ts
DON'T be afraid to show some emotion, theRussians won't!
DON'T as the Russian proverb states 'hurry toreply', but 'hurry to listen'.
DON'T praise or reward anyone in public as itmay be viewed with suspicion or cause envyand jealousy. Remember the collective rules
over the individual.Wear lavish clothing or jewelry.
Use a restaurant as a place for doing business--it's for celebration
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