How to Do Business in Russia

Since the collapse of the Soviet Union in 1990, many Western corporations have scrambled to take advantage of Russia's economic rebirth. While doing business in Russia makes good financial sense, you will need to be prepared for competition in the markets, as well as the high cost of establishing a corporate presence in this part of the world.

Instructions

Difficulty: Moderately Challenging

Things You’ll Need:

• Passport
• Business travel visas

1. Be punctual and appear at all of your business meetings on time when you do business in Russia. Your Russian counterpart may be late on purpose, which is considered a test of your commitment to doing business in Russia. Ignore the fact that he is late, and proceed with the meeting without comment.
2. Wear proper business attire when attending a business meeting in Russia. Both men and women are expected to wear dark business suits with conservative ties. Never remove the jacket of your suit while you are in the middle of negotiating with Russian business people, since it can be interpreted as a lack of respect.
3. Avoid putting your hands in your pockets when you do business in Russia. This is considered downright rude if done during a business meeting.
4. Expect an unwillingness to compromise when dealing with Russian business people. Being able to stand your ground during business negotiations is considered an important virtue, and you may find your counterpart unwilling to negotiate on even the smallest points. Flexibility on your part will be the key to success while doing business in Russia.
5. Have a steady supply of business cards when you do business in Russia. Trading business cards with a Russian business person is almost a ritual, and it is considered a mandatory part of conducting business. You will not be taken seriously in Russia without a professional business card.
6. Obtain business travel visas, in addition to passports, for you and any business associates who will be traveling to Russia. These visas can be purchased through the website of the Russian Consulate (see Resources below). You may also need a letter of recommendation from your Russian business partners before you are allowed to enter the country.

Tips & Warnings

• Be prepared for the high cost of living in Russia, which is a result of the economic boom and rapid expansion of capitalism. Moscow and St. Petersburg are very expensive cities in terms of taxes, real estate, consumer goods and business licenses and permits.