russia - geography, economic reforms and business culture

Russia

GeographyEconomic ReformsBusiness Etiquettes

Parth MajmudarMumbai

• Located in Northern Eurasia (Northern Hemisphere)

• Area- total: 17,075,200 sq km land: 16,995,800 sq km water: 79,400 sq km

• Population : 143 million (as of 2012)

en.wikipedia.org

Climate data for Russia (records)

Month Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Year

Record high °C

(°F)22.2(72)

23.8(74.8)

30.3(86.5)

34.0(93.2)

37.7(99.9)

43.2(109.8)

45.4(113.7)

43.5(110.3)

41.5(106.7)

33.7(92.7)

29.1(84.4)

25.0(77)

45.4(113.7)

Record low °C

(°F)−71.2

(−96.2)−64.4

(−83.9)−60.6

(−77.1)−46.4

(−51.5)−28.9(−20)

−9.7(14.5)

−9.3(15.3)

−17.1(1.2)

−25.3(−13.5)

−47.6(−53.7)

−58.5(−73.3)

−62.8(−81)

−71.2(−96.2)

Source: Pogoda.ru.net[125]

Topography

• Most of Russia consists of plains, steppe to the south and forested to the north with tundra along the northern coast• Mountain ranges are found along the southern borders (Caucasus,

Altai, Verkhoyansk, Kamchatka Peninsula)• Extensive coastline of 37000 kms• Thousands of rivers ( Volga, Ob, Amur, Lena) and fresh water lake

(Lake Baikal)• Second only to Brazil in volume of water renewable resources• World’s largest forest reserves

Natural resources:oil, natural gas, coal, and many strategic minerals,

timber

Natural hazards:• Permafrost - Siberia • Volcanic activity - Kuril Islands• Volcanoes and earthquakes - Kamchatka Peninsula • Spring floods - Siberia and parts of European Russia

Current issues:• Air pollution• Deforestation• Soil erosion• Groundwater contamination from toxic waste

en.wikipedia.org

Airways: 1,216 airportsRailways: 87,157 kmRoadways: 982,000 kmWaterways: 102,000 km ( Coastline of 37000 kms)

Ports & Terminals:• Kaliningrad• Kavkaz • Nakhodka • Novorossiysk• Primorsk • Saint Petersburg • Vostochnyy

Modes of Transport

Source- www.cia.gov

Important Cities

• Moscow• Labinsk• Pskov• St. Petersburg• Vladivostok• Irkutsk

Started in 1990

Goals:• Macroeconomic stability • Restructure the country's economic framework• Open the market for the foreign investors

Economic Reforms

Source- http://finance.mapsofworld.com/economy-reform/russia/

Reforms Undertaken:• Minimized Government's expenditure • Planned government's budget deficit • Improved the tax system(Profit tax)• Decrease inflation• Land reform and judicial reform• Credit Expansion• Reduction of subsidy and increasing the revenue • 24 SEZs

Economy

Source- http://finance.mapsofworld.com/economy-reform/russia/

GDP : $2.229 trillion (2012est.) (8th largest by nominal GDP)

GDP - real growth rate: 3.8% (2010 est.)

GDP - per capita (PPP): $15,900 (2010 est.)

Unemployment rate: 7.6% (2010 est.)

GDP - composition by sector: Agriculture: 4.2%Industry: 33.8%Services: 62% (2010 est.)

Industrial production growth rate: 8.3% (2012 est.)

Exports: $376.7 billion (2012 est.)

Exports - commodities:petroleum and petroleum products, natural gas, metals, wood and wood products, chemicals

Imports: $237.3 billion (2012 est.)

Imports - commodities:machinery, vehicles, pharmaceutical products, plastic, semi-finished metal products, meat, fruits and nuts, optical and medical instruments, iron, steel

Economy

Source – www.cia.gov

Oil – production : 10.12 million bbl/day (2010 est.)

Natural gas - production: 583.6 billion cu m (2009)

Exchange rates:Russian rubles (RUB) per US dollar – 33.35 (2010)

Economy

Source – www.cia.gov

Russian Economy Comparison with India

Source : The Hofstede Centre

Cultural Dimensions

• Formal and conservative

• Men - business suits

• Women - should wear subdued coloured business suits with skirts that cover the knees

•  Shoes should be polished

• Men often do not take off their jackets in negotiations

• Do not stand with your hands in your pockets. This is considered rude

Appearance

Source - www.cyborlink.com/besite/russia.htmwww.kwintessential.co.uk

• Russians are transactional

• It is still a good idea to develop a network of people who you know and trust

• Patience is essential

• Sincerity is crucial as it is required to build trust, and trust is needed to build a relationship

• Most Russians do not trust people who are 'all business'

Relationships and Communication

Source - www.cyborlink.com/besite/russia.htmwww.kwintessential.co.uk

• Appointments are necessary

• Punctually for meetings

• Schedules are constantly changing

• Meetings can be cancelled on short notice

• Meetings are frequently interrupted.

• At the end of the meeting, expect to sign a ‘protokol', which is a summary of what was discussed.

Business Meeting Etiquette

Source - www.cyborlink.com/besite/russia.htmwww.kwintessential.co.uk

• Do not like being rushed

• Hierarchy is important

• Compromise as weakness

• Negotiating until you offer concessions

• Lose their temper

• Nothing is final until the contract is signed. Even then, Russians will modify a contract to suit their purposes

Working Practice and Negotiations

Source - www.cyborlink.com/besite/russia.htmwww.kwintessential.co.uk

• Exchanged after the initial introductions  

• Have one side of your business card translated into Russian using Cyrillic text

• Include advanced university degrees on your business card. 

• Hand your business card so the Russian side is readable to the recipient. 

Business Cards

Source - www.cyborlink.com/besite/russia.htmwww.kwintessential.co.uk

Thank You