Russian Federation

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Hello everybody! My name is Stercho Ekaterina My course paper will be about and now I want to tell you some main ideas of these theme The Russian Federation stretches across Eurasia from Eastern Europe to the Pacific coast. After the collapse of the Soviet Union, Russia became the largest country in the world in terms of territory. geographical russia federation mentality

The population of the Russian Federation is approximately 143 million. The largest city in the Russia is Moscow, with a population of approximately 11.9 million, followed by St. Petersburg, with a population of approximately 5 million. The Russian Federation is a federal republic consisting of 83 constituent entities. There are six categories of federal constituent entity which, while subtly different in classification, are constitutionally defined as equal members of the federation. The 21 republics (corresponding to the homelands of various ethnic groups) enjoy a certain degree of regional autonomy. The federation is further divided into 46 oblasts (regions), one autonomous oblast (autonomous region) and 9 territories in which 4 autonomous autonomous districts, also delineated for various ethnic groups) are located.

Russian Business Structure

Russia has emerged from a decade of post-Soviet chaos and disintegration to reassert itself as a major player on the world stage - both politically and economically. President Putin and his successor President Medvedev have restored public confidence in the country and vast oil and gas reserves have resulted in growing political and economic influence. Russia cannot be ignored - it needs to be understood. As an enormous geographic area, it is dangerous to ever generalise about Russia but certain universal truths do, however, typify the Russian approach to business and life in general.

Firstly, it is always worth bearing in mind that for centuries (long before the advent of the Soviet system), the state has always been seen as an organ of oppression and repression. Laws and statutes are therefore seen as the 'enemy' and to be avoided and evaded at all costs. Contracts are valid only if supported by a close personal friendship and taxes are left unpaid on both a corporate and personal level.

Secondly, the only things that can be relied upon are close personal relationships within the business environment. Networking and extended interpersonal allegiances are essential to successful business and the importance of resource allocation to ensure the development of good quality relationships should not be underestimated.

Thirdly, the legal status of many things in Russia is very dubious. Who actually owns what assets? The laws are being rewritten constantly and are, in any case, often unenforceable without the right level of political influence. Thus, most agreements have to be made on a trust basis - a strong element of which has to be clearly identifiable self-interest. The legal basis of any arrangement will probably mean very little once the relationship breaks down.

Business Culture of the Russian Mentality

Russian management style has some features that could be or not in day-to-day business practice. Company structures reflect the traditional Russian mentality. Russian companies tend to be driven by one strong central figure who will make strategic decisions with little or no consultation with anyone other than a handful of close trusted advisors. The image of Russian businessman in the early 1990ies was far from positive. Nowadays the profile of Russian businessman is transformed to more stable, reliable but we still recommend to learn more about your partners before doing business with them. Russians strict hierarchy and prefer to work in a team. Russian executives prefer to meet with people of similar rank and position. More often than not, meetings with them are fairly informal and attendants are treated like equals.Formal meetings are serious occasions and should not be treated lightly. Smaller, more informal meetings often occur behind closed doors where senior management might canvas opinion or seek other opinions. Don't waste time trying to get decisions out of middle and junior managers - go straight to the top if possible. Most of the contracts are built on trust and interpersonal relations and return part of the cost as senior level sometimes wants.

Russians see negotiations as win-lose. They do not believe in win-win scenarios and view compromise as weakness. They will continue negotiating until you offer concessions. Russians even may lose their temper, walk out of the meeting, or threaten to terminate the relationship in an attempt to coerce you to change your position. When it comes to sealing a deal, Russians prefer to put things in writing and will insist on having everything signed by hand.

If you attend a meeting with a traditional Russian business, the same level of people should be represented on each side of the table. The handshake is used both on meeting and taking leave, primarily among men. Russians that are not present senior level tend to dress as well as their salaries will allow sometimes they prefer counterfeiting of famous luxury brands. Men would tend to wear either a dark suit or jacket and trousers with a tie and women mainly wear business suits or blouses and skirts.

Doing business, conducting meetings, making decisions, negotiating and getting to know each other is increasingly being done at dinner. If your Russian counterpart decides to invite you out do not refuse the request as it would be rude. Remember Russians do like a drop or two of alcohol. Refusing to drink is unacceptable unless you give a plausible excuse, such as explaining that health or religious reasons prevent you from imbibing.

In Russia the final business negotiations are always held in the office.

In Russian business culture respecting seniority is essential.

* In business meetings one should not do very much small talk, but rather go straight to the point. Still, it should be remembered that in Russian business culture personal and informal relationships are very important.

* The Russian company structure is very hieratical, and the people at the leading positions of companies make the final decisions.

* Even though the Russian party of negotiation may come to the meetings a few minutes late, to the other party it is the best to arrive in time.

* It is good to prepare oneself for long business negotiations as in Russia they may be lengthy.

* A contract is considered binding only after it has been signed on paper. It is also wise to show the contract to a specialist of Russian law before signing it.

* Praising someone in public is considered as suspicious.

* Small talk subjects that are often discussed before starting a negotiation may include personal matters, like family etc. Also Russian art, music, dance and literature are very good subjects.

* Also Russian business dress etiquette is formal and stylish.

In the conclusion I want to advise you to learn some main rules of business communications and try to use them in your life.

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