Russian business culture The only things that can be relied upon are close personal relationships within the business environment

Russia is a fragmented society, undergoing a radical period of change and readjustment. The old order has been swept away, leaving a political and economic void. It is, therefore, true to say that things in Russia change on a day-to-day basis and that, in such a disparate country, what is true for one region might be untrue in the next. Certain universal truths do, however, typify the Russian approach to business and life in general. Firstly, it is always worth bearing in mind that for centuries (long before the advent of the Soviet system), the state has always been seen as an organ of oppression and repression. Laws and statutes are therefore seen as the 'enemy' and to be avoided and evaded at all costs. Contracts are valid only if supported by a close personal friendship and taxes are left unpaid on both a corporate and personal level. Secondly, the only things that can be relied upon are close personal relationships within the business environment. Networking and extended interpersonal allegiances are essential to successful business and the importance of resource allocation to ensure the development of good quality relationships should not be underestimated. Thirdly, the legal status of many Russian companies is very dubious, being incorporated under the old laws of the Soviet Union which no longer have validity. Who actually owns the assets of an organisation? The laws are being rewritten constantly and are, in any case, virtually unenforceable. Thus, most agreements have to be made on a trust basis - a strong element of which has to be clearly identifiable self-interest. The legal basis of any arrangement will probably mean very little once the relationship breaks down.

Russian Meetings

As might be expected in a country where managers are autocratic in style, meetings are often for the purpose of information dissemination, rather than for the open debate of current business issues. Formal meetings are often held to ratify decisions which have been made elsewhere and to give clear instruction on key tasks to be performed. Any open debate on the issues in hand will have been undertaken elsewhere in either one-to-one meetings or in smaller groups. It is in these 'background' meetings where much of the real debate is undertaken. Without access to these meetings, it can be very difficult to influence the flow of events and it is only through cultivating very close relationships that an outsider will ever be invited into these inner cabals.

Russian Dress Code

Russians tend to dress as well as their salaries will allow. Men would tend to wear either a dark suit or jacket and trousers with a tie and women mainly wear business suits or blouses and skirts. It is important, for westerners to look smart and appear to be expensively dressed as this enhances credibility. From the safety standpoint, it is probably not advisable to wear very expensive watches or jewellery. Russian Communication Styles

As with many other cultures (Mediterranean and Middle Eastern, for example) much more emphasis is placed upon the spoken than the written word. People believe things when they have heard them from someone with whom they have a trusting relationship. Therefore, it is often much more efficient to hold face-to-face meetings at which issues can be fully explained, rather than sending information in a written format only. There tends to be very little visual or verbal feedback during meetings in Russia. People listen silently and with little obvious body language being displayed. This does not, however, mean that the listener is disinterested or does not understand - it is merely a cultural characteristic which Russians share with, amongst others, the Finns and the Japanese. Russians will tend to wait and think before responding to a point made to them - do not be impatient. Allow the Russians the time and space needed to take part fully in the conversation.