Cross- cultural Communication This page intentionally left blank

The Russian negotiating style
Churchill described Russia as: ‘A riddle wrapped in a mystery inside an 
enigma.’ To some extent, this remains true. Russia has a business culture 
that differs from the Western pattern and is, in some respects, more Asian in 
its origin than European, though since the collapse of communism and the 
Soviet Empire, it has been increasingly exposed to Western business influ-
ence. However, many of Russia’s differences are rooted in its historical past 
and the wide diversity of its peoples. Although Russia has espoused some 
of the aspects of the market economy, central government and residual 
bureaucracy still retain a major influence on Russia’s business practices.
‘Dusha’ or ‘soul’ still remains central to everyday behaviour, which means 
that personal relationships and mutual trust form a strong basis for success-
ful business. However, in recent years, renewed national confidence and the 
economic strength of Russia’s energy resources have given the Russians an 
increased economic advantage and have contributed to a tough negotiating 
stance that aims to gain concessions. This is particularly apparent in the 
negotiations over the exploitation of natural resources such as oil and gas 
reserves.
The Russian Federation remains a relatively collectivist rather than an 
individualist culture and this is still reflected in current business practices. 
There is a generally relaxed attitude towards time, although it is on balance 
more monochronic than polychronic, and a few minutes’ delay or lateness 
is of relatively little importance. Business cards are essential, usually with 
one side in English and the other in Russian. Small talk and shared experi-
ences, which normally involve talking about the family, personal matters 
and sport, are customary before getting down to business and are much 
appreciated. Gifts are exchanged and usually represent the status of the 
company and the importance of the impending business.
There is a definite hierarchical structure in Russian business practices, 
with the result that actual decision making is often made at a high level. 
Showing respect for seniority and acknowledging this hierarchical structure 

---

The Effect of Culture on International Negotiations 179
is vital for establishing and maintaining strong business relationships. Much 
value is placed on written documents, including memoranda of understand-
ing, technical specifications and contracts. Presentations are well prepared 
and negotiating positions are carefully planned and orchestrated.
Russians favour good eye contact. They prefer to have a degree of 
informality in negotiations which aims to produce a relaxed atmosphere. 
Physical contact during business meetings, such as a hand on the arm, is 
taken as a positive sign. There is no word for ‘privacy’ in Russian, so Russians 
do not require so much social space. However, their communication style 
can at times appear rather blunt and direct. They have respect for counter-