1. Start of the Russian National Anthem till everybody is quite (not play it the whole way but stopping it after approx. 45 seconds)

2. Russia Presentation in Comparative International Management
1st Semester 2005/2006
Prof. Dr. Antonio Robalo
Tell the audience what the presentation is about.

3. Team Ewa Augustyniak (Poland) Inga Astrauskaite (Lithuania)
Peter Pavlic (Slovenia)
Simon Borghardt (Germany)

4. Overview Introduction History Geography Curiosities Stereotypes
Hofstede
Behavior
Business
Negotiating
Conclusion
Tell the audience what the presentation is about and in what order we will present it.

5. Introduction 9000 km from East to West and 5000 from North to South
Ural mountains divide Russia into a European and Asian part
Population of about 143 million (3/4 live in the European part)
Moscow is the capital and the largest city
Russian is offical language but many others in component parts
President is Vladimir Putin
Tell the points of the introduction and add some more information to it.
European/Asian part: Russia has its roots in the European part of Russia. Most of the people live there.
Second largest city is St. Petersburg
Because of its huge size there is not only one language but many more, especially next to the many territorial borders
Putin is the most powerful person in Russia

6. History of Russia Founded in the 12th century
Emerged from over 200 years of Mogol domination
New Romanov Dynasty in the 17th century, policy of expansion from Siberia to the Pacific
Peter I: hegemony was extendet to the Baltic Sea; renamed the country Russian Empire
Defeats of the Russian Army in
World War I led to rioting and to
the overthrow in 1917 of the
imperial household
Tell the audience about the History of Russia.
Since the 13th century Russia expanded its terrritory step by step.
Huge losses in the 2 World Wars. The Russian people suffered enormously due to cold winters and cruel Germans.

7. History of Russia
Communist seized power soon after under Lenin and formed the USSR
Rule of Stalin ( ) strengthened Russian dominance of the Soviet Union under the costs of millions of lives
Gorbachev ( ) introduced glasnost (openess) and perestroika (restructuring) in an attempt to modernize Communism
Initiatives released forces
that in 1991 splintered the
USSR into 15 independent
states
Continue with History:
Formation of a communist state unter Lenin.
Dictatorship under Stalin and start of the Cold War against USA
Under Gorbachev Russia slowly opened themselves to the West. Western values and lifestyles found their way to the USSR
Creation of 15 independent states went (USSR lost lots of its inhabitants); still close ties between Russia and the independent states

8. History of Russia
Russia struggles in its efforts to build a democratic political system and market economy to replace the strict social, economic and political controls of the Communist period
Progress on the economic front
Recentralization of powers under Putin and erosion of democratic institutions
Guerilla conflict still going on
between Russia and Chechnya
Continue with history:
Replacement of the communist state; introduction of a market economy and a democratic political system
Russia is a country of big economic growth in the last few years
Really bad situation in Chechnya where the Russian Army is fighting against Guerillas

9. Geography
Northern Asia (that part west of the Urals is included with Europe), bordering the Arctic Ocean, between Europe and the North Pacific Ocean
Stretches across much of the north of the supercontinent of Eurasia
Great variety of landscapes and
climates
Most of the land consists of
large plains known as Siberia
Extensive coastline of
over 37,000 km
Most of the land in Russia is without any people

10. Geography
Largest country in the world in terms of area (1.8 times the size of the US); despite its size, much of the country lacks proper soils and climates (either too cold or too dry) for agriculture
Not easy to agriculture because of its extreme climates; lots of food has to be imported
Tell something about the map

11. Curiosities in Russia
Russians are impressed with size and number, and much that they do is on a grand scale
Things seldom go as planned with Russians. They often say, "In principle, it can be done," but in practice, it may be another matter
Russians admire Americans as people, and generally bear no harm toward them
Belief and pride in Russia as a great power with a special mission in the world
Mocow is even more expensive to do business than New York or Tokyo
Great scale in military size, sculptures, buildings etc.
Russians promise more than they can actually do.
Curious that Russians admire Americans because of the past of the Cold War etc.
Hard to belief that Moscow is more expensive than New York. But when you go to rural parts of the country living costs are very cheap

12. Stereotypes about Russia
Way of life is very simple
Russians love to eat rye bread with herring and drink vodka
Fashion for fur coats and hats is at all times high
Cold winters are impossible to survive
University professors have to sell matryoshkas to foreigners, and former teachers work as security guards
Average salary is $150 per month
President Putin is still loved by all the nation
Just tell the audience about some stereotypes:
Only a few examples but they show what people in other parts of the world think about the Russians.
Russians often get their wages/salaries in envelopes at the end of the month  this way they avoid paying too many taxes!
Stereotypes are NOT true!

13. Stereotypes about Russia
Playing balalaika and drinking vodka is their only entertainment
Teenagers are keen fans of the band TaTu and dream of fleeing the country as soon as they are 18
Few dozen people who managed to make some money on the oil fields now live in exile
Russia will soon go
back to communism
Go on telling about stereotypes:
Russians love their country (will not flee out of Russia)
There is a middle class in Russia that is getting bigger and bigger in Russia within the last years
Many believe that Russia is not a stable democracy and it will go back to communism; false: most Russians favour the modern times over communism!

14. „A typical Russian” 18.01.2001, Population Poll
Open – ended question: What in your opinion are the traits of a typical Russian? How would you characterise the typical Russain?
General Opinion(% of those surveyed in Russia)
Positive characteristics
Moral qualities
Kind, sympathetic, always ready to help, all-forgiving 26

15. The World's Attitude Towards Russia: Friends and Foes
, Population Poll
Nation-wide home interviews conducted October in 100 residencies in 44 regions. A sample size of 1500 respondents. Additional polls of the Moscow population, with a sample of 600 respondents. The margin of error does not exceed 3,6%.
WHAT DO YOU THINK IS THE GENERAL ATTITUDE TOWARDS RUSSIA IN THE WORLD: IS IT GOOD OR BAD?

16. Dimensions of cultures
How Hofstede evaluates
Russia?

17. Index Scores of Russia
As we can see in this graph Russia’s index values are quite extreme.
UAI and PDI are extremely (95 and 93) high while ID and MAS indexes are quite low (39 and 36).
We will tray to explain why these particular index scores were given for Russia and
what factors could influence specific characteristics of Russian culture.
In comparison with Hofstede’s indexes we will look over other researches indexes which
sometimes are different from Hofstede’s scores. We will present Globe’s and
Noumor’s scores as well, in order to be make these indexes more objective.
In each slide we also located specific quotations of famous Russians which helps to represent each dimension.

18. High Uncertainty Avoidance
„Will it be any better??
No, it had already been better.”
(Russian Finance Minister, asked by an investor about the economic future of Russia)
Results according to:
- Hofstede
Globe
Noumov
In this slide you can see Russian Finance Minister words, said when he was asked by
an investor about economic future of Russia, during financial crisis in 1998, which fully represents High UAI
What is interesting that one of the researchers (Noumov) gave much lower UAI (68) than Hofstede and Globe, so on one hand maybe we shouldn’t create the stereotype that Russians extremely try to avoid uncertainty. On the other hand, we should keep in mind that Noumov is Russian and is a little bit subjective, just tries to present “better” results of his own culture. We assume so, because his index scores usually are different compared with Hoftede’s and Globe’s.

19. High Uncertainty Avoidance
Low tolerance for uncertainty and ambiguity
Rule-oriented society, which institutes a lot of laws, rules, regulations, and controls
Time is money
Emotional need to be busy
Suppresession of deviant ideas and behaviour, resistance to innovations
Motivation by security and esteem of belongingness
Belief in experts and specialization
Very high UAI indicates that Russia has a low tolerance for uncertainty and ambiguity.
Russian society is rule-oriented and institutes a lot of laws, rules, regulations, and controls.
Other very typical attitudes of Russians are as follow….
Factors which could predetermine high UAI
In the last decades Russian society has lost their confidence in terms of what the future will bring
A lot of memories about the great Russian empire are still alive in Russians conscious, they do not want
to admit that they are not the kings of the world anymore.
Most of the values thanks to which people felt secure are no longer respected usually,
so only the rules can protect them against continuous recession.
We presume that

20. Large Power Distance
“Subordinate should always look foolish and flimsy.
In order not to shame with their wisdom the superior”
(Decree of Tsar Peter I)
Results according to:
- Hofstede
Globe
Noumov 40
A Large Power Distance ranking indicates that inequalities of power and wealth have been allowed to grow within the Russian society. Russians are more likely to follow a caste system that does not allow significant upward mobility of its citizens. This can be illustrated by the words of Tsar Peter I, who said that…..
Differences in various researches rankings appears again . Noumov gives very low PDI for Russia and it’s very strange because……(next slide)

21. Large Power Distance
Prevailing religions and philosophical systems stress hierarchy and stratification
Prevailing political ideologies stress and practice power struggle
Hierarchy in organizations reflects the existential inequality between higher- ups and lower-downs
Subordinates expect to be told what to do, superior unavailable
Powerful people try to look as impressive as possible
Centralization is popular
These following characteristics are widely accepted in Russian society, so maybe some mistakes were made in Noumov’s research

22. Factors of Large Power Distance
Geographical condition
Small number of the social stratum
Small number of people with higher education
Lack of advanced technology
State politics
Main factor which caused such a high PDI are geographical condition, a small number of the social stratum, and also the small number of people with higher education, lack of advanced technology. But the main reason is the state politics.

23. Low Individualism “My adress is not a house and the street.
My adress is the USSR.”
(Words in a famous Russian song)
Results according to:
- Hofstede
- Globe
- Noumov
A Low Individualism ranking typifies Russian society of collectivist nature with close ties between individuals. Russian culture reinforces extended families and collectives, where everyone takes responsibility for fellow members of their group.
These words of famous words represents incredible collectivism of Russian people, and what is the most surprising they really think so, it is not only the words of the song!
Researches index scores for this dimension are more or less the same so we can rely upon them

24. Low Individualism
Ideologies of equality prevail over ideologies of individual freedom
Collective interests prevail over individual interests
Opinions are predetermined by group membership
Laws and rights differ by group
Press controlled by the state
Hiring and promotion decisions take
employees' ingroup into account
Dominant role of the state in the economic system
We suppose that these features were determined by political and economical situation.
Communism, socialism.
The political and economical situation in Russia across centuries Was one of the main causes why Russians have a strong feeling of collectivism.
The social confines didn’t allow to develop a high level of individuals freedom
The economic reform (in XIX and the beginning of XX century) have contributed to a slowly process of destroying the collective culture.
Though we can notice substantial penchant for individual rivalry, a large distance to the authorities, and rather low social responsibility. But on the other hand one can also come across a very specific and very pecular survival networks as mobs

25. Low Masculinity “How many divisions does the Pope lead?
(Joseph Stalin, at Postdam conference)
Results according to:
- Hofstede
Globe
Noumov
A Low Masculinity ranking indicates that Russia has a low level of differentiation and discrimination between genders - females are treated equally to males in all aspects of the society.
This time the index scores are quite similar, and this time Noumov’s ranking seems to be closer to the truth.
We were slightly astonished by such a low masculinity index because given by Hofstede.
if we would remind the past of Russia, it really has more masculine features -
This type of culture was represented in the society by the role of Tsar.
Masculine culture was defined by values
Boldness
Courage
Male leadership
military expansion
In XVIII and XIX century western cultures began to influence Russian culture, through that process Russian culture have gained specific feminine features. Communism has also contributed to the fact that currently Russian culture can be identified with feminine characteristic.
Communist party identifies all the feminine elements of the culture.
On one hand years of wars required autocratic behavior.
On the other hand – communism officially promoted social welfare policy, so maybe the results of Noumov’s research is really closer to the truth,
because Russia has both masculine and feminine characteristics nowadays.

26. Low Masculinity
Dominant values in society are caring for others and preservation
People and warm relationships are important
Work in order to live
Stress on equality, solidarity and quality of work life
Managers use intuition and strive for consensus
Resolution of conflicts by compromise and negotiation.

27. Russia’s position in Gesteland classification
Features of Russian culture:
Relationship-oriented
Formal
Fluid-time , polychronic
Expressive
Russia’s position in Gesteland classification
Characteristics of Russian culture
- Relationship-oriented – though quite specific; in contrast to typical Relationship – oriented countries Russians are open and honest
- Formal – very hierarchical culture, conservative dress code, welcome and farewell ritual, but most important value is very specific egalitarianism – “urawniłowka” – specific as Russians feel deeply touched when the others have more than they do
- Fluid-time culture, Polychronic – rather strange approach to time - you should 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.
- Expressive – though it is rather variable – at the first meeting Russians are usually calm and restrained. But later they may be recognized as very short – tempered people.

28. General business rule
"In Russia daily work conditions can be compared to a jungle where you really don't know what can fall on your head in the next minute."
"In Russia daily work conditions can be compared to a Jungle where you really don't know what can fall on your head in the next minute."
According to one of Human Resources managers

29. Behaviour Women Comrade!!! – Never!!!
Connections, influences (gifts, money)
Personal relations
Women
Scepticism, friends
Be feminine
Advantage
Relaxing (lunch, theater etc.)
Never call Russians with the word “Comrade”!
You can make your business easier with connections or influences. If you do not have any, usually gifts and money will bring both, so as respect! Being a woman doing business in Russia you need to know few important rules:
You will be treated with scepticism. On your business card with education and make your position immediately
Let the men open the door, move your chair etc
Advantages:
Your mistakes will not be treated as strict as male`s mistakes
You can invite a Russian businessman to lunch and YOU pay the bill

30. Business Shaking hands, hugs, kissing
Formal & Conservative (Men, Women)
Punctuality
Business cards (Plenty!!!)
A handshake is always appropriate without gloves, regardless of the relationship. Public physical contact is common such as hugs, backslapping, kisses on the cheeks.
You should wear a dark well-tailored suit. Women should wear a dark conservative business dress, particularly skirts. Lively colours tell them that you are unreliable and lazy.
Being a foreigner in Russia it is very important to be punctual. Your Russian business partner probably would be late. When he/she gets there you must not show any attitude because of it, and do not expect apology for being late. Men should always wear their jacket during the discussion of business. It is also considered to be rude, if you are standing with your hands in your pocket..
Business cards are handed out liberally in Russia and are always exchanged at business meetings. The ceremony of presenting and receiving business cards is important. They have to be written on both sides. One side should be in English and other in Russian.

31. Informal Meetings Theater
Casual dressing at home dinners (dacha) & gifts
Small talk (English, Russian, current events, music, art…)
Sauna
Very important are informal meetings.
They can happen in theatre or in your partner`s home. When you are attending the theatre, it is appropriate to check your coat and other belongings at the front door of the entrance.
If you're invited for dinner, you should always bring some gifts. They should be small and modest. When going to a dinner the best way to make an impression is to bring some gifts for their children. Don't make other plans for later in the evening. You are expected to spend time socializing after the meal. Russians are great hosts. They will often put more food on the table than can be eaten to indicate there is an abundance of food (whether there is or not). They will start with toast.
Toasts, which are sometimes lengthy and occasionally humorous, are common. The host starts and the guests reply. Do not drink until the first toast has been offered. After a toast, most Russians like to clink their glasses together. Do not do so if you are drinking something non-alcoholic. Do not turn down offers of food or drink. Given Russian hospitality, this can be difficult, but to decline such offers is considered rude. Guests who leave food on their plates honour their host. It means they have eaten well. An invitation to a Russian dacha (country home) is a great honor. The most important thing to remember is to know your limits with alcohol. During this informal meetings, Russians like to talk about current events, art, culture, history... Most of the Russians know to speak English, but if you know Russian you will make friends in a moment.
You should not turn down an invitation to sauna. Sauna plays a very peculiar role while doing business life in Russia. In the times of the USSR sauna was a place were all the contracts were reached. Men trust each other more when they are naked.

32. Legal situation Fiscal obscurities Legal issues
Difficult dealings with the Russian public authorities
!!! Be careful !!! some licences – especially for export are hard to obtain
Enterprises operating in Russia used to encounter the same problems:
- fiscal obscurities,
- legal issues
- difficult dealings with the Russian public authorities.
New laws and regulations have only added to the complications.
!!!Be careful!!! some licences - especially for export - are hard to obtain.
Doing business in Russia today is not like it was in the earliest, post–Cold War times. Nonetheless, precautions necessary in other countries, such as conducting due diligence, should be implemented.
Many enterprises working in Russia for a period of years encountered similar problems : fiscal obscurities, legal issues, and dealing with the Russian public authorities may be obstacles when doing business.
Complicated concession prcedures of Russian public authorities are to be simplified by the current government. But because of uncertainty in the political environment, it is unclear whether the current ministry will remain in charge of implementing those regulations in future. The same applies to fiscal issues. Despite recent attempts to simplify aspects of the tax system, businesses face a complex array of federal, regional and local taxes.
Besides certain licences, especially for export, are hard to obtain. As with other eastern European countries, many public agencies are demotivated or not interested, but even here a certain amount of corruption may exist. That is why it is adviced to hire trustworthy and internationally experienced specialists like attorneys and chartered certified accountants.

33. How to prepare to the negotiations?
Financial situation must be examined
Study the hierarchial structure of the company
Mutual friends wanted
Professional interpreter necessary
How to prepare to the negotiations??
- It is really difficult to examine the financial situation of the company in Russia, though one have to try to gain as much information about the opposite side of negotiations as possible. What can be seen from the outside may be deceptive. Many Russian companies are trying to create the image of well prospering firm, even when it is on the brink of bankruptcy.
- One should also gain the knowledge about the hierarchical structure of the Russian company in order to negotiate with decision-maker of the company. In case of private firm it is usually the owner or the chairman of the board, in case of public/state-owned companies - it is usually convergent with the financial source.
- It is advisable that the sides of negotiation have mutual friend. Such references may concern both the company itself and the leader of the negotiating team.If someone trusted says to a Russian businessman that he can talk to a particular person – that’s half the battle
- A professional interpreter is usually essential. Language inaccuracies are very possible to happen. The business terminology should be simplified, especially because some terms might be something brand new for Russians. Though on the other hand the presence of the interpreter may be an obstacle to establish more personal relationship.

34. How to select the appropriate negotiation team?
Status of the team members of great importance
Same idea of every raised issue
Clear leader
Desired features of group members - patient, highly tolerant and resistant to provocations
“uniform front”
Business ethics essential
How to select the appropriate negotiation team??
- Russia is a very hierarchical country, that is why the status of the team members is of great importance. The hierarchical structure in Russian business practices means that the decision makers higher up have authority over their subordinates. However, the nature of the collective good often encourages a flexible and democratic work ethos. Showing respect for seniority and recognising the hierarchical structure is vital for establishing and maintaining strong business relationships.
- The group should have the same idea of every raised issue, and at the same time it ought to have a clear leader, who is responsible for making decisions.It should not be a junior/middle-rank manager, as Russians prefer to talk to someone who is an authority. Otherwise the negotiations will be viewed by them as insignificant or evn insulting.
- The team members should be rather patient, highly tolerant and resistant to provocations – patience is a key to a successful nagotiation with Russians. (Which will be explained a bit later.)
- A negotiation team should present a “uniform front” while negotiating with Russians. That is why it is important to make sure that all of the members understand and fully agree upon what they are trying to achieve.
- The negotiation team should know the business ethics and the limits to what is permissible, as while negotiating with Russians they may encounter some unethical proposals...

35. First meeting A formality
Opportunity to get to know each other well and to outline the proposal at most
Calm and formal
Be self-confident, patient and simultaneously create the atmosphere of warmth  
First meeting
- The first meeting is usually a formality, and it is treated as an opportunity to get to know each other well and to outline the proposal at most. Any crucial decisions should not be taken. Russians aplly „win-to-win” strategy only while negotiating with friends, otherwise they rather use „win-to-lose” strategy, and as „losing” is equal to „losing face” in Russia one should not count on a success in negotiations by the first meeting with a Russian partner.
- A first encounter is usually calm and formal, whereas subsequent meetings can be lively and spirited - occasional emotional outbursts are not uncommon. The US way of communicating - relaxed, with a sense of humour - is not really appropriate.   
- Being sell-confident, patient and simultaneously creating the atmosphere of warmth - is the best strategy for the first meeting. The fist meeting is a time to build trust and friendship. Usually one should spend a lot of time establishing a personal relationship before getting down to business.

36. Negotiation rules (1) Serious matter and should be treated accordingly
Personal relationships are very important in Russia
Visualisation
Make sure they understand what you are offering!
Problems with agreeing to compromises
Negotiation rules
- Negotiations are a serious matter and should be treated accordingly, though personal relationships are very important in Russia. In many cases, the success of a venture does not depend on official petitions or applications but on relationships. Russian negotiators generally do not expect any help from bureaucracy. Most Russians are suspicious of public authorities and red tape and will be mistrustful of any changes to contracts
- Russians are visualisers – the presented offer and presentation of the company should be vivid. All brochures should be translated into Russian and should contain the logo of the company for which it was printed, what stresses the individuality of the proposal.
- Make sure they understand what you are offering. Russians hardly ask any questions. Therefore in order to be well understood one should try to explain everyting as properly as possible.
- Russians have problems with agreeing to compromises – that is why you should make sure that your initial offer is created in such a way that in the end you can make more concessions than Russians will do. The head of the negotiating team tends to dominate
negotiations and is willing to make any concessions only if he can expect you to make concessions in return.

37. Negotiation rules (2) Write down all the results
General impression is what counts the most
Patience is crucial
Direct talk is welcomed
Exclusivity
When a deal is struck is often sealed off with a glass of vodka – do not refuse
Negotiation rules
- Russians are trying to renegotiate the contract even when it has been already signed, as the Russian business culture does not belong to exact/strict culture. Even when something has been agreed it may be revisited by your negotiation partner. "Contract constancy„ does not always apply. So all the interim results of the negotiation should be written down, as minutes, even if the final agreement is far off. Verbal consent cannot be depended on.
- The general impression is what counts the most, strong empirical evidence and data based on facts are important but there are not the most important.
- Patience - On every stage of negotiation Russians try to demonstrate their power. One should be always prepared for strong words, dissatisfaction outburst, expressing indignations. Leaving the negotiation room is widely used practice. Negotiations are demanding and may become emotionally charged. You may find your Russian negotiator banging his or her fist on the table or leaving the room. Accept such tactics with patience and calmness. They are designed to put you off your stride. Russian negotiating teams are often made up of experienced managers whose style can be like a game of chess, with moves planned in advance. That may be why your Russian counterpart is unlikely to show much enthusiasm. for new ideas or sudden changes in direction. The disposition to make compromises may be seen as a sign of weakness. And that can mean that negotiations come to a standstill. If so, remain patient and keep some stamina in reserve. Frequently, although the Russian team may consist of many members, it will present a single opinion.
- Russians like direct talk. It is good to underline the profitability factor at an early stage of the meeting but remember they consider too much compromise as a sign of weakness. Often the final deal is not final and you may strike a better bargain by holding out a bit more.
- Creating the feeling of exclusivity is valuable. Russians prefer exclusiveness in business relations. One should rather leave unsaid the fact of talking with other companies, as it might be viewed as lack of respect to a Russian partner
- When a deal is struck, it is often sealed off with a glass of vodka, better not to refuse

38. Specific negotiation tactics with Russian business partners (1)
Find out who is who?
Describe complex subjects as clearly as possible
Be prepared for a long negotiation
Distinguish between your behaviour inside and outside the negotiations
Specific negotiation tactics with Russian business partners
1. clarify the authority of your counterpart. Is he or she allowed to make a deal or supposed merely to gather information? Will he or she make way after the first round for someone else to sign the contract? Because organisations still tend to be hierarchical, decisions can often be made only by the chief executive or a director. That could delay negotiations.
2. Your business partner is likely to be well informed and professional about technical issues. But there may be a high demand for training in such areas as marketing and sales. It is therefore a good idea to describe complex subjects as clearly as possible. Simple tools such as flip charts and whiteboards can help. The chief concepts under discussion should be summarised on one or two pages so as to minimise any conceptual misunderstanding during the negotiation. Remember that an agenda is always helpful to structure negotiations.
3. Do not forget that negotiations in Russia can take a long time. Negotiations can be protracted. However, your partners will take all the time they need to consider the information - Russians believe you can never gather enough information about a prospective deal.
4. Distinguish between your behaviour inside and outside the negotiations. Impatience, toughness and emotion during the negotiations should be met with calmness, patience and consistency. Outside the negotiating process you can show affection and personal sympathy

39. Specific negotiation tactics with Russian business partners (2)
Use “white-black” method
“lack of competencies” method should not be applied
Even if you have strong arguments, do not overemphasise them
Specific negotiation tactics with Russian business partners
- Most of the conducted negotiations should be based on the “white-black” method – “We picked you, to do business with you, as we believe you are the best”. Respect is of great importance in Russia.
- One should not apply “lack of competencies” method. When foreign negotiators state for the strategic reason that they do not have authority to make some decisions, Russians are likely to sever the negotiations, as they don’t feel like talking to unauthorized people mediators.
- Even if you have strong arguments, do not overemphasise them. Russian business people are proud and want to be shown respect.

40. Conclusion
Many new things are happening politically, but "whatever happens, and whatever restructuring of the Soviet society, Russia is, and is going to remain a country very different from our own. We should not look for this difference to be overcome in any short space of time."
by George Kennan (American)

41. References

42. References
Sergey Frank “Doing business with the Bear”; Business Watch; January – February 2003
Sergey Frank “A market emerging from a country in turmoil: Good personal relationships are needed to survive Russian chaos”; Financial Times, Feb 19, 2001
Sergey Frank “Executives in from the cold: Many Russians from the state companies have kept old Habits” Financial Times; Mar 13, 2001  

43. Thank you for your attention! -
If you have any questions or suggestions please do not hesitate to tell us!
Song: “Back to the USSR” to end