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BUSINESS MEETINGS IN RUSSIA: HOW TO PLAN AND WHAT TO EXPECTBISNIS Bulletin, November 2002
by Ellen S. House
When planning a business trip to Russia,
preparing for meetings with Russian companies or officials, and attending the
meetings themselves, there are several key issues to keep in mind. Standard
operating procedures in Russia and Russian business conduct (particularly in
the regions) regarding and during meetings can differ from inÊ the United States. Which officials or
companies you meet and how you conduct meetings will influence the fulfillment
of your goals. It is important to be aware of some norms and expectations of
Russian companies in order to have productive meetings and begin to
successfully build relationships with your Russian counterparts.
Planning for Business Meetings in Russia
Conduct research on the region/city you plan to
visit, seeking advice from someone who is knowledgable about that specific
place in order to plan which companies, organizations, and officials to meet.
If the purpose of your trip is to further build on a relationship with a
potential partner that was already established by long distance, the Russian
company will probably assist you with arrangements and logistical details
(e.g., recommend a good hotel, assist with transport, etc.). If you do not have
a partner with whom some prior communications were established, it is a good
idea to contact a business association or other organization that can help
recommend people to meet and set up appointments, hire a driver and
interpreter, suggest a hotel, and provide information on local industry and
companies (see Resources box). More tips:
Remember
that Russian companies tend to be sensitive about issues of hierarchy and
status. Be aware of whom you expect to meet with at a Russian company/agency
versus who will attend from your company. A sales associate should not expect
to meet with the company CEO or high-level person.
Allot
at least an hour for each meeting. Meetings, particularly first meetings, with
Russian companies should not be rushed. It is considered impolite to try to
leave after 20Ð30 minutes for another appointment. If this is a first meeting,
you may need at least a half hour to get acquainted before real talks can
begin. Nonetheless, it is important to bring something concrete and interesting
to the table, even at a first meeting. Moreover, the first meeting should be
used to strive to understand the goals and motivation of the Russian
counterpart in order to consider the fit with your proposal/plans and whether
to adapt or abandon the relationship.
Bring
information about your company/organization to share, preferably in Russian. In
the regions, usually only big companies have English-speaking staff, and
materials in English may simply be tossed aside. If available, bring a
print-out of your company's profile from Dun & Bradstreet. It is especially
helpful for your company's credibility when you discuss a large trade deal, and
it may encourage more transparency on the part of your partner. At a minimum,
bring catalogs and brochures about your company's products and services. If
possible, bring samples, but be aware of possible customs implications. Bring a
price list and be prepared to discuss your company's competitiveness vis-ˆ-vis
Western European and (particularly in eastern Russia) Asian
producers/suppliers.
If
setting up or confirming appointments by long distance, do not rely solely on
email. Even if a Russian company (particularly in the regions) has email, it
does not necessarily check it every day or have someone who can read and reply
in English. It is a good idea to follow your email up with a fax.
Gift
giving (of small items) is common in Russian business meetings. Be prepared by
bringing items with your company logo or other small tokens to reciprocate.
If
you are not a Russian speaker (or if you have limited Russian ability), address
the issue of language capabilities and the need for an interpreter in advance.
If the people you are meeting with offer to provide an interpreter, still
consider that you may feel more comfortable bringing your own.
Logistics for Business Meetings in Russia
Request
meetings at least two weeks in advance, particularly if expecting to meet with
officers of a company or high-level officials. Always reconfirm meetings a day
in advance.
Leave
a buffer time (at least 30 minutes) between meetings to make sure that you are
not late for the next meeting in case your current meeting runs long.
If
a business lunch or dinner is planned, expect at least two hours for the meal
alone. (Also, expect that there may be vodka. For many regional companies,
drinking a toast is still an important symbolic gesture.)
Expect
traffic and other delays (particularly in big cities) and prepare accordingly.
If you have limited time and want to achieve a lot, you might want to consider
getting a location to hold meetings (hotel lobby, business center, etc.) and
trying to get companies to come to you.
Be
punctual but expect tardiness. However, do not take it personally if you are
kept waiting, particularly if it is by a high-level company or government
official.
Meeting with Local/Regional Officials
Consider planning meetings with local/regional
officials and representatives of local chambers of commerce and other business
associations. There is significantly more interaction between the private and
public sectors in Russia than in the United States. Business in Russia is not
so much conducted on a one-on-one basis as on a community level. Regional/city
economic development or investment promotion offices, local trade and
professional associations, and chambers of commerce are aware of business
doings of local companies and often to some extent involved. Particularly if
you are considering establishing a joint venture or representative office, it
is considered a courtesy (and can be useful) to contact relevant local
officials and let them know you are seeking to do business in town and would
like their endorsement and support. Moreover, developing good relationships
with local officials can be useful for referral purposes and for completion of
administrative needs that may arise, such as registration of a branch office or
representative, certification of goods or equipment, or customs clearance.
When
planning meetings with officials, do not feel the need to try to meet with the
highest-level officials possible. Middle and lower level officials,
particularly those with a mastery of English, may prove to be more interested
in your activities and more useful to fulfilling your goals.
Plan
meetings with local officials carefully, keeping in mind that meetings with the
"right" officials can have a key impact on your project/business development.
In some regions, there is competition between regional and municipal
officialsÑit is important to explore for the existence of such dynamics and
factor them into your relationship building strategy. Your potential Russian
partner might be a good adviser on the necessity of meetings with local
officials and which ones to meet.
During the Meetings
If
you are going to a production facility, expect to be given a tour of the works.
At a food processing facility, expect to be given samples of the wares to taste
on the spot.
It
is always best to wear business attire to show respect and seriousness, even if
involved in the often-casual IT sector.
During
your first or first set of meetings with a potential business partner, the
Russian company will be feeling you out on a personal as well as a professional
level. Do not be surprised or offended if you are asked nonbusiness-related
questions.
Even
if you view the meeting as simply a sales call, be cognizant that many Russian
companies consider even a sale a type of partnership rather than simply a
financial transaction, and they may want to spend time getting to know and
trust you rather than just viewing your products and signing a contract.
Therefore, even a sale may take a few meetings, rather than a single one. Also,
be flexible and ready to listen to the Russian companies' needs. Do not expect
a written contract or sales agreement at the first meeting.
If it is your first time in a region or city, expect a tour or a monologue about
the area's highlights and achievements, economic and otherwise.
Please note that it is difficult to make generalizations about today's Russia as it is in a period of
transition, particularly with respect to business. It is important to be
observant so you can adjust your pace and style to that of your interlocutor.
RESOURCES IN RUSSIA
American Chamber of Commerce (Amcham) Russia
Tel: +7 (095) 961-2141, Fax: 961-2142
Email: amchamru@amcham.ru
Website: www.amcham.ru
Russian Far East (office in Yuzhno-Sakhalinsk)
Kregg Halstead, Coordinator, Tel: +7 (4242) 72-71-24
Email: fareastri@hotmail.com
Website: www.ri.sakhalin.ru
American Business Center - Yuzhno-Sakhalinsk, Russia
Jeff Valkar, Director, Tel/fax: +7 (4242) 72-71-24
Email: abcsakh@fraec.org
Website: www.fraec.org/abc.html
A list of Russian regional administration contacts is available on BISNIS Online at www.bisnis.doc.gov/bisnis/country/020115RusRegionalContacts.xls.htm.
This report is provided courtesy of the Business Information Service for the Newly Independent States (BISNIS)
