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Due to the merging and acquisition of numerous territories in Asia and Europe between the 12th and the 19th century, Russia is the largest country in the world. It covers more than one-eighth of the earth's inhabited land area, spans nine time zones and incorporates climate zones ranging from the Arctic north to the generally temperate south.
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Russia Today
Following the Russian Revolution, the Soviet era saw some important technological achievements, such as the world's first spacecraft and the first astronaut. After the fall of the Soviet Union in 1991, Russia shifted its post-Soviet democratic ambitions in favour of a centralised semi-authoritarian state that seeks justification through economic strengths. Thanks to vast natural resources Russia is one of the largest producers of oil and natural gas in the world. If you wish to benefit from Russia’s economic growth and intend to do business there, it is advisable to be confident with Russian social and business culture.
Russian Culture – Key Concepts and Values
Collectivism – Throughout its notable history, Russia has assumed a strong communal spirit that is still reflected in Russian business practices today. Russia’s severe climatic conditions have also meant that co-operation and collaboration, rather than competition, have been vital for survival. This sense of togetherness is one of the traits that distinguish Russians from many Westerners. Russian collectivism dates back to the peasant farmers who lived in agricultural villages known as ‘mirs’ or ‘obschina’ and worked together in an organised and self-managed community.
Egalitarianism – An important concept related to the village milieu is ‘egalitarianism’, the social philosophy that supports the removal of inequity and promotes an equal distribution of benefits. In Russian business terms, this equates to important strategies of equality, reciprocity and mutual advantage. Russians are very status conscious and believe in co-equals. A ‘deal’ is often thought of from the perspective of equally shared benefit.
Dusha – The term ‘dusha’ is often used in Russian literature and philosophy. It can best be translated with ‘soul’ and represents feelings, emotions and one’s mood and inner life. A person’s ‘dusha’ defines their identity and behaviour and remains present in everyday Russian life. As a result when building effective business relationships with Russians you will find that mutual liking and emotion will form a strong basis.
Doing Business in Russia
Russia is a vast and diverse nation that after several decades of communism continues to evolve politically and economically. With the world’s largest resource of raw materials, oil and gas, revenues heavily support Russia’s economy. The government is currently trying to reduce this dependency by building up its high technology sectors and Russia’s economic growth is only now leading to the emergence of a middle class. Reduced unemployment, a lower rate of inflation and Russia’s accession to the World Trade Organisation in 2012 will result in fewer trade barriers and a more open market. This, along with an improvement in the country's financial position, has raised business and investor confidence in Russia's economic prospects. However, in order to conduct business effectively in Russia, there are a number of important issues to take into consideration both before and during your time there.
Russia business Part 1 - Working in Russia: Working practices in Russia
Structure and hierarchy in Russian companies
Working relationships in Russia
Russia business Part 2 - Doing business in Russia: Business practices in Russia
Russian business etiquette (Do's and Don'ts)
DO shake hands firmly when greeting and leaving your Russian partners and make direct eye contact.
DO partake in small talk which normally involves talk of family and personal matters, before dealing with business.
DO take a gift that symbolises the stature of your company and the importance of the impending business deal, preferably an item characteristic of your local area or one that displays the company logo.
DON'T be afraid to show some emotion, the Russians won’t!
DON'T as the Russian proverb states ‘hurry to reply’, but ‘hurry to listen’.
DON'T praise or reward anyone in public as it may be viewed with suspicion or cause envy and jealousy. Remember the collective rules over the individual.
Russian Culture Quiz - true or false
1. It is considered good luck to shake hands over the threshold of the doorstep.
2. When taking flowers as a gift, you must only take an odd number.
3. If you leave something behind in Russia it means you’re coming back.
4. In business negotiations Russians view compromise as a sign of weakness.
5. In Russia, the ‘OK’ symbol with the thumb and forefinger touching in a circle means ‘everything is fine’.
Russian Culture Quiz - Answers
1. False. It is considered bad luck to shake hands over a threshold and should be done either inside or outside.
2. True. Even numbers of flowers are only given at funerals and are a sign of bad luck.
3. True. This is a Russian superstition that is still present today.
4. True.
5. False. The western sign for ‘OK’ is considered rude in Russia.
Russia Today
Following the Russian Revolution, the Soviet era saw some important technological achievements, such as the world's first spacecraft and the first astronaut. After the fall of the Soviet Union in 1991, Russia shifted its post-Soviet democratic ambitions in favour of a centralised semi-authoritarian state that seeks justification through economic strengths. Thanks to vast natural resources Russia is one of the largest producers of oil and natural gas in the world. If you wish to benefit from Russia’s economic growth and intend to do business there, it is advisable to be confident with Russian social and business culture.
Russian Culture – Key Concepts and Values
Collectivism – Throughout its notable history, Russia has assumed a strong communal spirit that is still reflected in Russian business practices today. Russia’s severe climatic conditions have also meant that co-operation and collaboration, rather than competition, have been vital for survival. This sense of togetherness is one of the traits that distinguish Russians from many Westerners. Russian collectivism dates back to the peasant farmers who lived in agricultural villages known as ‘mirs’ or ‘obschina’ and worked together in an organised and self-managed community.
Egalitarianism – An important concept related to the village milieu is ‘egalitarianism’, the social philosophy that supports the removal of inequity and promotes an equal distribution of benefits. In Russian business terms, this equates to important strategies of equality, reciprocity and mutual advantage. Russians are very status conscious and believe in co-equals. A ‘deal’ is often thought of from the perspective of equally shared benefit.
Dusha – The term ‘dusha’ is often used in Russian literature and philosophy. It can best be translated with ‘soul’ and represents feelings, emotions and one’s mood and inner life. A person’s ‘dusha’ defines their identity and behaviour and remains present in everyday Russian life. As a result when building effective business relationships with Russians you will find that mutual liking and emotion will form a strong basis.
Doing Business in Russia
Russia is a vast and diverse nation that after several decades of communism continues to evolve politically and economically. With the world’s largest resource of raw materials, oil and gas, revenues heavily support Russia’s economy. The government is currently trying to reduce this dependency by building up its high technology sectors and Russia’s economic growth is only now leading to the emergence of a middle class. Reduced unemployment, a lower rate of inflation and Russia’s accession to the World Trade Organisation in 2012 will result in fewer trade barriers and a more open market. This, along with an improvement in the country's financial position, has raised business and investor confidence in Russia's economic prospects. However, in order to conduct business effectively in Russia, there are a number of important issues to take into consideration both before and during your time there.
Russia business Part 1 - Working in Russia: Working practices in Russia
Structure and hierarchy in Russian companies
Working relationships in Russia
Russia business Part 2 - Doing business in Russia: Business practices in Russia
Russian business etiquette (Do's and Don'ts)
DO shake hands firmly when greeting and leaving your Russian partners and make direct eye contact.
DO partake in small talk which normally involves talk of family and personal matters, before dealing with business.
DO take a gift that symbolises the stature of your company and the importance of the impending business deal, preferably an item characteristic of your local area or one that displays the company logo.
DON'T be afraid to show some emotion, the Russians won’t!
DON'T as the Russian proverb states ‘hurry to reply’, but ‘hurry to listen’.
DON'T praise or reward anyone in public as it may be viewed with suspicion or cause envy and jealousy. Remember the collective rules over the individual.
Russian Culture Quiz - true or false
1. It is considered good luck to shake hands over the threshold of the doorstep.
2. When taking flowers as a gift, you must only take an odd number.
3. If you leave something behind in Russia it means you’re coming back.
4. In business negotiations Russians view compromise as a sign of weakness.
5. In Russia, the ‘OK’ symbol with the thumb and forefinger touching in a circle means ‘everything is fine’.
Russian Culture Quiz - Answers
1. False. It is considered bad luck to shake hands over a threshold and should be done either inside or outside.
2. True. Even numbers of flowers are only given at funerals and are a sign of bad luck.
3. True. This is a Russian superstition that is still present today.
4. True.
5. False. The western sign for ‘OK’ is considered rude in Russia.
