Country Information: Russia

The Russian Mindset Characteristics of Society Lifestyle & Aspirations The Essentials (10 Key Tips) Working with the Russians Making a Good Impression Business Etiquette Business Meeting Culture Motivating Others Effective Presentations Managing Relationships

The Russian Mindset

The older and younger generations have quite different mindsets. The older generation has been conditioned to secrecy, distrust and fear. Personal responsibility, self-worth, motivation and personal security were the greatest casualties of the communist system. The younger generation is more open and relaxed. Core values of Russians include the family, security and stability, loyalty, honour and pride, endurance, patience and mutual support.

Russians believe that Mother Russia has a soul, and that they must take their own path and not copy the West. Russians see themselves as rational and conscious realists. They are also nostalgic and romantic. They joke that it's always the past that is golden, never the future: "There are no good times in Russia, just bad times and worse timesthat's why we are pessimists."
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Characteristics of Society
Russia's population is small relative to its size, and unevenly distributed, with the vast bulk in the European areas and the Ural regions. In inhospitable regions such as the far north and much of Siberia, population density is often less than one person per square kilometre. The country is still going through a tremendous struggle to exchange the values of Communism for those of a free-market economy and democracy. Some observers liken present-day Russia to the American Wild West of the 1870s - fortunes are being made and sometimes lost in the scramble. There has always been an inequality and a struggle for power. There is currently a power struggle between free-market economists and nationalists. Ethnic tensions within Russia are also coming to the fore and threatening to disrupt social stability. Russians have become less sensitive as the moral coordinates of their world have drifted apart. Harshness and casual indifference are stark features of everyday Russian society. Distance as a means of survival (often manifested as self-reliance, stony resolve and strong will) is a characteristic of the Russian people, who have been isolated from the rest of the world for centuries, first by the country's sheer size, second by the creation of 'buffer' communist states between the USSR and the rest of the world (all of which are now independent) and third by the decades of communist rule which closed Russia's doors to outsiders. Russian culture is characterised by two main groupings, the intelligentsia and the working class. An emergent middle classes is beginning to establish itself in the major cities like Moscow and St Petersburg. However many are dissatisfied with their lives today; in a recent survey, 56% of Russians said that Peristroika (which means 'restructuring') was a bad idea. One in two marriages ends in divorce in Russia, although couples often stay under the same roof to save money. Broken homes are far from unusual; many couples never even marry for fear of the cost of divorce. Most families only have one child. Alcoholism affects one in three people. As a result, the population is in rapid and alarming decline.
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Lifestyle & Aspirations

Lifestyles vary enormously between rich and poor Russians, and rural and urban dwellers.

Smoking: A national hobby, indulged in by one in three of the population, despite a recent ban on smoking except in designated areas. Some 300,000 Russians die every year from smokingrelated diseases; more than 40% of teenagers smoke; and 15% of the family budget goes on cigarettes. Drinking vodka and beer: Both a curse and a blessing. Russians love deep conversation, lavish toasts and good vodka, all of which are inherent to their culture, but alcoholism in men has doubled since perestroika and is believed to affect 40% of men now (and 17% of women). Hockey and soccer: Both national passions, both as spectator and participation sports. Sailing: Very much in vogue among the rich. A yacht is a huge status symbol. Indoor sports: City gyms offer all kinds of indoor sports from basketball to rock climbing. Strictly for city dwellers, though. Curling, skiing, snowboarding: All popular in winter. Russia has several ski resorts and numerous opportunities for cross-country skiing. Culture: Access to the arts is improving all the time. Russia has a spectacular history of music, dance, painting and literature and is immensely proud of it. Dacha: Many families have a small wooden chalet in the countryside, to which they retreat for holidays and weekends. This is for many people the only break from everyday life; very few Russians can afford overseas travel. Those who can enjoy sunny destinations like the Mediterranean coast of Turkey, as well as cities like London and New York, where the shopping is good. However, these really only represent a tiny, moneyed section of Russian society.
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The Essentials (10 Key Tips)

1. Friendships are very much based on mutual obligations, with friends bestowing favours on one another. 2. Affinity for the group and collective spirit is strong. When people enter meetings who appear unconnected with your topic of discussions, go with the flow and find a suitable time to bring things back to your agenda. 3. Typically Russian schedules change a lot so be prepared to adjust your timescale expectations accordingly. 4. Russians have developed a strong sense of endurance in difficult situations. It is a quality they respect in others, too. 5. Negotiations can be lengthy - Russians do not like to be rushed to reach decisions. 6. Most decisions are made by consensus, making it difficult for individuals to accept full responsibility easily. You need to explain very clearly where, and why, individual initiative is expected. 7. Hierarchy, rank, titles are very important so make sure you respect the chain of command. 8. Business entertaining is an integral part of building interpersonal trust with visitors. 9. Russin communication style can be emotional, almost poetic at times. Try hard to stay focused on your key messages and show patience when listening to the local anecdotes and 'stories'. 10. Bribery and corrupt practices are often experienced when doing business in Russia. Respect local laws, your nation's laws and your own company's code of conduct.
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Working with the Russians

Russians take duality to greater extremes than other nationalities. They can be emotional and irresponsible and yet haunted by conscience; reckless yet cautious; tolerant yet censorious; independent yet lost without a sense of belonging to a family group or team. There tends to be conformity within a loose hierarchical structure and a tendency to follow a leader rather than the rules. Working with Russians can be both frustrating and rewarding. Getting an appointment can be difficult. Meetings go on for hours (if anybody turns up in the first place) and stray far from their original agenda, negotiations can be protracted and contracts easily broken. Schedules will change constantly, making planning almost impossible. Hours may be spent discussing a problem with no real desire to come up with a solution. Yet once trust is established, Russians can become great friends, demonstrating loyalty and a willingness to bestow favours. They are keen to learn and crave a sense of belonging, so work very well in teams.

Business entertainment is an important part of working in Russia and is embraced wholeheartedly, with long drinking sessions and much toasting with vodka cementing business relationships.
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Making a Good Impression

You will come across as a sympathetic person if you display your own family closeness. In the brutal Russian environment, family was often the only enduring form of security. Intimacy appears to be more pronounced among Russian families than elsewhere in the world. So indicate your human side emotions, hopes and aspirations. Russians also have an intensity about them, with a strong love of the dramatic and the tragic. Business associates often bond in the sauna (the banya). You will also make a good impression if you keep your impatience with the Russian system to yourself. Remember, change takes time. If you start complaining and ranting at someone, they will probably just shut down. Russians have a concept of 'face' similar to Asians, and face must be saved at all times.
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Business Etiquette
The concept of a business relationship without a personal one is alien to Russians, so be prepared to keep in touch and to work to build your relationship. When you first meet Russians, it is best to keep small talk focussed on non-contentious issues, or on sport, something which of course Russia continues to excel at.

Body language Russians are passionate and expressive but not necessarily extrovert. They will shout, hug and kiss in public but will not always sit with their legs stretched out, as if trying to occupy a bigger space. If a Russian touches another person during conversation, it is a sign of confidence. They may enter meetings unsmiling, but can be quickly engaged with a show of understanding and sincerity.

Russians have several popular superstitions which you should be aware of. You should not shake hands through a doorway, light a cigarette from a candle, present someone with an even number of flowers, or whistle indoors. If you get to know your host's children, it is bad luck to kiss them goodbye on the forehead - a farewell reserved for corpses. It is also unlucky to return somewhere to pick up something you've forgotten. Otherwise, European manners are the norm. Keep your hands out of your pocket, use good posture, don't cross your ankle over your knee, and remember that whistling indoors brings bad financial luck. The Russian word nyekulturny means uncultured, bad-mannered. Russian is a language abundant in curses, and there are quite a number of obscene gestures. Both the American "OK" sign (thumb and forefinger touching in a circle) and any shaken fist gesture will be interpreted as vulgar. The "thumbs up" gesture indicates approval. Some common traditions or superstitions include sitting for a minute before leaving a home, knocking three times on wood to avoid bad luck, and spitting three times behind the shoulder to prevent bad news. Business cards Given the lack of telephone books in many areas, business cards are essential, so be sure to bring a good supply. It is also worthwhile to have your card, complete with your title and any university degrees, translated into Russian with Cyrillic text on the reverse side. Make sure that this is the side which is visible when you present it to the recipient. Communication style Russians are usually direct communicators and will speak their minds, but at the same time, have a strong concept of 'face' like Asians do. Face must be saved at all times, even if it is at the expense of the truth. If a Russian starts skipping round a question and failing to give a direct answer, it may be because the answer is 'no' and they are trying to save your face and theirs. The use of the metaphor is a particularly favoured Russian conversational technique. Gift giving Generally speaking, Russians enjoy giving and receiving gifts. Bring an assortment of gifts, so that you will always have something appropriate to give. Cheaper gifts do not have to be wrapped, while more expensive ones should be. Gifts for children are usually opened in private, while gifts for adults are generally opened in the presence of others. If your gift was popular, you will hear many 'thank-yous'.

Avoid giving pencils, pens, notebooks, lighters (unless they are expensive ones), cheap wine or vodka. In Russia, flowers are a gift given almost exclusively for women. The only few exceptions would be male teachers, doctors and visiting celebrities. Acceptable gifts include: wine or other alcohol (not vodka), fine chocolates (when invited to a home), scarce food items, towels, cameras, watches, perfume, cologne or clothing (as a thank-you for an overnight stay). Do not, however, confuse the giving of a genuine gift with the offering of a bribe and pay careful attention to your company's policy and to the laws of your country and of Russia even when giving gifts.
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Business Meeting Culture

Planning a meeting Allow plenty of time to plan a meeting - several weeks if government officials are involved. Be clear about your intentions for the first meeting. If it is merely exploratory, say so as your counterparts may have higher expectations of you. Either way, the purpose of any meeting should be partly to build relationships. Russians expect to meet with someone of similar rank and position. Always be punctual, but do not be surprised if your Russian contacts are not. It is not unusual for a Russian to be one or two hours late for an appointment. Generally, the more important the meeting is for your Russian counterparts, the more punctual they will be. In case you are kept waiting, it's a good idea to bring work or another diversion to fill the time. In other circles, however, being five minutes late is frowned upon. In any case, it will be in your best interests to arrive on time. Be prepared to devote a lot of senior executive time to meetings. Russians are very statusconscious and want to deal with your key decision-makers. Use the most impressive title allowed you by your organisation. Russians must be treated as equals and not 'talked down to'. During the meeting Allow plenty of time for each appointment. Not only may appointments start late, they may last far longer than originally planned. Many times, Russian managers will discuss problems without concrete solutions in hand. This suggests that the Russian state of mind is based more on the idea that the formulation of a problem is considered at least half the battle, whereas in the West the focus is generally on the solution. As a result, meetings can drag on

for hours with no real progress, and may stray far from the agenda. A first meeting is often to establish whether your counterparts consider you a good person or company to work with. Use the time effectively to demonstrate what differentiates your company from the competition. Russians expect long and detailed presentations that include a history of the subject and a review of existing precedents. Meetings are frequently interrupted. It is common for several side conversations that have nothing to do with the topic of the meeting to be carried on during the meeting. In any meeting or conversation, comments are directed by Russians to the highest-ranking person on the opposite team. Subordinates will take direction from the highest-ranking person, even if that person has no responsibility for the task, and even if it contradicts the directive of the person responsible for the task. Russians will attempt to save face in meetings and will avoid topics that may cause embarrassment to them or anybody else. Most Russians do not trust anybody who is 'all business' and some small talk is necessary. You may even find that your Russian counterparts break out the vodka during a meeting to toast the progress of the deal, or the new relationship. It is very bad form to refuse this and you should drink your shot in one go after the toast. After the meeting Do not be surprised if the meeting ends with no action plan or timeline, or indeed a commitment to the next meeting. Your counterparts may ask you to sign a protokol, an agreement of cooperation, which is not a contract to work together, but an expression of mutual interest. It is not legally binding to sign this. A further indication that you have successfully developed a personal relationship is when you are asked for a favour by your new contact. This is an indication of trust, not a request for a bribe, but you should nonetheless pay careful attention to your company policy and the laws of your country and of Russia when considering it.
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Motivating Others
Cynics might say that power, position and an ability to make - and break - the rules are what motivates the typical Russian. The reality for the majority is different. While power is a strong motivator for an ambitious manager, for most it is a sense of belonging and a sense of having

a stake in something. Russia has become the country with the largest employee-ownership in the world. More than two thirds of the 12,000 medium and big Russian enterprises privatised after 1992 are majority-owned by employees. This does not make them rich, but it instils a sense of pride and creates the 'family' feeling typical of Russian teams. Companies perpetuate this feeling by throwing lavish parties for their employees, at which management and shop floor workers mix freely. National holidays, special company anniversaries, birthdays and even project completions are celebrated by parties thrown by some 50% of Russian businesses, according to estimates. Only 8% of Russian companies are thought to ignore corporate hospitality altogether. In addition, Russian employees might expect personal birthday bonuses, medical insurance, residential housing, pensions, meals and sometimes, financial assistance for poor families.
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Effective Presentations
Business presentations should be concrete, visual, factual and full of technical specifications. Avoid language that is over-complex. Be prepared to defend technical aspects and performance standards, particularly of high-tech products. Use of physical analogies and visual description is recommended. Bring all your own equipment - laptop, power leads, projector - and check first if there is a broadband connection. Also bring your own handouts. In smaller companies, you cannot rely on there being things like a photocopier. Be aware that to some Russians, concepts like marketing, customer loyalty and public relations may be alien. Subjects like these were not considered important in Communist times and in some companies, the corporate culture is deeprooted. Audience expectations Russians want to know exactly what they are buying. Consider bringing along a technical specialist as your counterpart may bring one of their own to question you. Have all presentation material available in English and Russian and remember to accommodate an

interpreter in your presentation.

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Managing Relationships
Once a bond has been established with a Russian counterpart, it should be relatively easy to maintain with constant contact, visits and exchange of ideas. Western managers often need reminding, though, of the Russian concept of saving 'face'. Failing to observe this can lead to the breakdown of relationships. It also affects relationships between management and employees, and the way conflict and feedback in the workplace are managed. Direct feedback, for example, is difficult to give and is unlikely to be a two-way process. Western managers can also find it very tough to be in charge suddenly of a Russian team. Teams are close-knit, like family groups, with strong loyalties between the individual members, and foreigners may be viewed with suspicion until bonds have been established. Having said this, Russians are eager to embrace Western business techniques and are keen to learn more about topics including human resources, marketing, customer care and public relations, all things which barely existed just 15 years ago. Customer service is improving and many companies are embracing executive coaching and Western motivation techniques.
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