Doing Business in Russia..

Business in Russia is best conducted in Russian. Russian-speaking Westerners always make a good impression on Russian partners, but only native Russians are able to understand the small print and body language. Russian partners or staff should be allowed to lead the negotiations. Some aspects of Russian business, taken as a norm by nationals, are likely to drive an average Western businessman to despair or alcoholism (or both!).

Verbal agreements have no meaning. Contracts are generally respected but, if drawn up in a foreign language by the Western partner, are likely to be mutilated to a point where they are become worthless. It pays to hire good Russian lawyer to prepare contracts in Russian. There is no point on insisting on the English Law in a contract. If Russian jurisdiction is not acceptable, the best one can hope for is Arbitration Court in Vienna or Stockholm.

Despite the respect for the written word, business in Russia is firmly based on personal relationships. Contracts are never won on spec but are awarded to those who are perceived as friends. For that reason, a good local partner or a powerful backer is essential.

Price is still the most important element of any offer. Russian buyers may talk about quality, service, training but at the end of the day, he will buy the cheapest. Russian partners never make quick decisions. There are always complications and the law can be interpreted depending on the circumstances. This is why it is best to leave business negotiations to Russians.

Main Russian strategic exports such as oil, gas or timber have long been monopolised and it is generally advisable to stay clear from these sectors. However, Russian industry and science still have much to offer to imaginative traders. It is both exciting and often rewarding to explore dilapidating scientific institutes or factories in the depth of Siberia.. Do not be deterred by shabby half-ruined buildings.

Finally, it has to be said that the black picture of Russian business is exaggerated. The true story is reassuringly a lot better. The great majority of Russian entrepreneurs are eager to conduct their business in honourable manner and would go to great lengths to prove and maintain their integrity. It is a challenging market and you would be well advised to prepare thoroughly, a small amount of time talking to experts as part of a pre-visit briefing is an investment well worth making.

Original article at www.intercultural-training.co.uk