Business in Russia

Russian history is a fascinating and turbulent tale, not unlike the vast frozen landscape that makes up the country. From 1922 until 1991, Russia was under Communist rule and thus heavily secluded from the social and economic practices of the United States and other parts of the Democratic world. During the Soviet era, Russian business was owned and operated by the State, and the business practices were not only different from the West, but from those practiced in Russia today. Since 1991, Russia has been reformed as a Federation, changing their governmental and economic structure to account for extreme poverty and human welfare that the people of Russia experienced under the Iron Curtain. Russian business and economy are now geared more toward dealing with the world market and rebuilding severed ties with the West.

Key Values

Russian culture is distinct, yet varied, like most countries, but there are a few universal values that are apparent in the Russian business world: Collectivism, egalitarianism, and dusha (or soul).

Collectivism

Russian collectivism goes back further than the Communist rule of the 20^th century. Cultural anthropologists believe that Russia’s strong communal bond comes from the large amount of cooperation that must be demonstrated to survive in such a cold climate. This togetherness is in sharp contrast with the competitive nature of Westerners.

Egalitarianism

Egalitarianism is an important social philosophy that strives for equal treatment of people through all avenues, may they be pay benefits or social standing. In the business realm, this translates to equal opportunity, reciprocity, and mutual advantages. Business deals in Russia focus on the shared benefits of the deal and do not believe in Western practice of the “upper hand”, instead, they believe that business partners should be “co-equals.”

Dusha

The Russian concept of “dusha” or “soul” is important to Russian social behavior in general. Dusha is based around idea of mutual understanding and emotion. This is the biggest opposition to Western social and business practices of competitive domination. Instead, Russian business relationships based around the concept of dusha, are formed around mutual understanding and emotion.

Business Practices

The hierarchy of Russian business is not unlike those of the West. The higher up is in charge of the subordinates; however when it comes to decision-making, the collective good is most often at the top of this list. This does not mean that the hierarchy is ignored, there is still a strong recognition of the power structure and the respect of the hierarchy is central for smooth business operations.

Personal space is not important in Russia; it is said that there is no word for “privacy” in the Russian language. Bodily contact in a business meeting is often a good sign.