Russia American Business John S.)

Russia American Business

John S.)

Comparing Russia & American Business Customs

Russia, since the fall of communism, is a vastly growing economic nation. Rich in resources, there are numerous business opportunities, and thus it is imperative for Americans doing business in Russia to have an understanding of the customs to help aid cross-cultural business. Russia is an enigma to much of the outside world, but to do business, the cultural differences must be overcome and Americans need to be aware of Russian expectations of professionalism, possible corruption, and difficult Russian negotiation techniques.

Russia has been in contract with the United States for hundreds of years and relations have varied greatly over that time span, most notably as the two countries shifted from allies in World War II to enemies during the Cold War. Since the fall of the Soviet Union, according to the United States Embassy, relations with Russia improved in June of 1992 with the signing of the Charter for American-Russian Partnership and Friendship (2007). It was during this time that Russia underwent stress as it shifted from socialism to capitalism and it endured a crisis, and although it has recovered, it is still highly dependent on foreign resources (State.gov, Economy Sect.)

Russian culture is deeply rooted with a long history. The Orthodox Church is an important element of Russia's cultural history but has taken on less significance in recent years because of years of forced atheism as the Soviet Union (Schultze, 2000).

Russians enjoy going out in their free time, weather permitting. They also value their freedom as laws are enforced fairly relaxed and people feel free to do what they like (Schultze, 2000). Generally speaking, Russia is a culture in adjustment as the new forces of capitalism have collided with a rich Slavic culture and many years as Soviet country. Furthermore, there is widespread corruption that spreads into the business sector.

Russian - American business relations in recent years are characterized by the 2001 agreement between President Bush and President Putin in which both countries decided their "determination to foster a new dynamic in American-Russian economic interaction" (the White House, 2001). Both nations are now set on a course of increased trade with a group of elite business men attending a summit in Washington DC in 2005 as a major step in the constantly improving business relations between the United States and Russia (Russian Embassy, 2007). The United States and Russia are thus important business partners as American investment in Russia has increased to $6.3 billion in 2005 (Russian Embassy, 2007). Furthermore, Presidents of both countries have "expressed their support of the initiative by Russian and U.S. business communities to launch the Russian-American Business Dialogue as a permanent communication channel between the business circles and the government agencies of the two countries involved" (Russian Embassy, 2007).

With this increased Russian - American business cooperation within the past 15 years, an understanding of the cultural business practices between the two countries is necessary. Business in Russia is conducted in a professional manner, much like the United States (Wilson, 1996). There are formal greetings and a formal title is necessary. It is recommended for Americans doing business in Russia to learn the Russian titles for Mr. And Mrs. And to have an understanding of the fact that Russians have three names as opposed to two in America (the third being the middle patronymic) (Wilson, 1996). Relations between Americans and Russians in business are new, however many Russians speak English, yet writing documents in the Russian language is necessary. Furthermore, negotiations with Russians are a much more intense affair than in America as Russians are tough and try to wear down through lengthy negotiations. "Russians view compromise as a sign of weakness," and thus stick to their beliefs and may lose their temper, make threats, or walk out of business meetings- actions which will appear unprofessional as American norms (Wilson, 1996). This is a custom in Russian business relations, but something that may be new to Americans. Russians may engage in theatrical behavior as well.

Americans doing business in Russia have to be aware of the Russian tough minded tendency and not show weakness that could lead to weaker business fortunes. Doing business with Americans is important to Russians, yet Russians are not willing to compromise as much as Americans are, as Americans believe compromise to often be essential while Russians consider it a weakness. Also, the Russian business system tends to be much more corrupt than the American system and American have to be aware of this as a possible hurdle to encounter that they are not used to. But it is part of the Russian way of doing business. And it is imperative for Americans to act strong and be professional and to show up in time even if it is no guarantee that their Russian business counterpart will. Lastly, Americans must follow the strict (for foreigners) registration policies to travel to and do business in Russia.