INDIVIDUAL ASSIGNMENT

Cross Cultural Management and Negotiation - IBC201

CULTURE AND NEGOTIATION

OF RUSSIA

Lecturer: Bùi Thị Thu Huyền

Name: Lê Trường Giang

Student ID: HS160105
Class: IB1607
Course: IBC201
Date: Spring 2022 - 15 Mar 2022

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TABLE OF CONTENTS

I. Significant events have affected Russia today………………………………………..3

1. Causes of tension between Russia and Ukraine………………………………………..3

2. Effects of the war on Russia……………………………………………………………3

II. The characteristics of Russia’s business culture………………………………........4

1. Business Mentality……………………………………………………………………..4

2. Business Meeting and Meal……………………………………………………………4

III. Negotiations……………………………………………………………………….5

1. How we will negotiate in Russia………………………………………………………….....5

2. What tactics will be most effective to use…………………………………………………...6

3. Recommended negotiation strategies………………………………………………………..6

IV. Recommendations………………………………………………………………………7

V. Conclusion………………………………………………………………………………...7

VI. References………………………………………………………………………………..8

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I. Significant events have affected Russia

The recent war between Russia and Ukraine has affected the economy and many other aspects

of Russia. After the defeat of the hostilities, the Russian army suffered quite heavy losses on the

part of the military forces. This is a prominent issue that is of concern to the world and affects not

only Russia but also the world's economy.

1. Causes of tension between Russia and Ukraine

The main current tension in relations between Russia and Ukraine, as well as between Russia

and the US and the West, is mainly related to Ukraine's desire to join NATO, while NATO remains

open to the possibility that this organisation can admit Ukraine to NATO right time.

According to NATO Secretary General Jens Stoltenberg as well as many leaders of the United

States and the West, Ukraine is an independent country and has the right to decide whether to apply

to join any economic, political, military or diplomatic organisation. in line with Ukraine's national

interests. NATO Secretary General J. Stoltenberg also said that Ukraine has applied to join NATO

since 2008 and NATO is considering, has not yet admitted Ukraine, but has never rejected its

proposal.

Ukraine is the largest, second most influential country after Russia among countries in the

post-Soviet space. Ukraine is the largest, second most influential country after Russia among

countries in the post - Soviet space. Therefore, if Ukraine joins NATO and the European Union

successfully, it will lead to a new wave of "separatism", separating from Russia's influence from the

rest of the countries in the post - Soviet space. . And if this happens, it could drastically affect

Russia's security, economic interests and standing, even causing Russia to disintegrate or collapse

from within.

2. Effects of the war on Russia

The fact that the war between Russia and Ukraine severely affected the economy of Russia, a

typical event was that the Russian stock market dropped by 50% immediately after a few days the

decision of war was declared.

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 Russia's war on Ukraine has caused Russia to suffer penalties from major organisations in the

world such as WTO, WHO, EU, etc.

II. The characteristics of Russia’s business culture

1. Business Mentality:

In Russia the type of business you are dealing with can usually range from a new-style
entrepreneur to an old-school Soviet bureaucrat.

It is difficult to do business in Russia without the help from a local “connection”. To help with
this, small gifts are often a good idea when doing business in Russia. Presents symbolising the
stature of your company and the importance of the impending business deal, preferably an item
characteristic of your local area or one that displays the company logo.

Patience is important with Russians, negotiations can often be slow. As the Russian proverb
states, do not ‘hurry to reply’, but ‘hurry to listen’.

Avoid hard selling techniques and any sort of conflict or confrontation.

Russians don’t usually make an immediate decision in a meeting; usually a certain amount of

deliberation is done in private afterwards.

2. Business Meeting and Meal

Dress in formal, more conservative office clothes – for both men and women.

There is a keen appreciation of punctuality, be on time if not early if you are meeting with

Russians.

The act of handing out business cards is quite a common and important action in Russia. On

your business cards, always print one side in your language and the other in Russian.

At dinner in Russia, people don’t usually do something before the host does, for example

beginning to eat or getting up from the dinner table.

It is often appropriate to bring a small gift when attending a family’s home for dinner.

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 Drinking and toasting at gatherings is an important and common act. Going out for a drink

when invited is highly recommended as it shows interest in strengthening the relationship and

promoting good will.

As an international manager, in order to be successful in the Russian economic market, it is

your responsibility to find and learn all Russian culture before you enter the economic market of

Russia. More specifically, the important information that you need to know is the rules of conduct

in the business culture of the Russian people. If you are an international manager and you

understand Russian culture and apply it to all your dealings and negotiations in Russia, you will be

able to attract the sympathy of the Russian Federation. partner side. In addition, this helps your

negotiations go more smoothly and achieve the right plans that you and the company set in the

Russian market.

III. Negotiations

With my experience who has been in Gazprom - the best energy company of Russia for the

past 2 years, I have learned some experience in negotiating with Russian businesses:

1. How we will negotiate in Russia

The first thing that you must prepare when negotiating with Russia or any other country is to

prepare documents and information about the partner in advance. Negotiators need to have a

thorough understanding of the Russian country, people and business culture of Russia and the

business that is about to cooperate. When preparing documents, it is best to prepare documents in

both English and Russian. In addition, negotiators must also prepare in advance about the

negotiation space and negotiating team. This shows the Russian partner that the negotiator values

this cooperation with his business and the professionalism of the negotiator.

The Russians attach great importance to equality in business positions, so the negotiating team

must be on par with the Russian negotiating team in terms of age, position and number. The

negotiating party with Russia needs to bring an interpreter knowledgeable in Russian, and the

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negotiating team needs technical experts and other support people to avoid falling behind with the

Russian counterpart.

The first meeting is very important because the Russians will consider and evaluate whether to

continue a long-term cooperation with you. For Russians, it is not necessary to establish a

relationship in advance because they do not take this seriously. Sincerity will be a factor in building

trust with Russian partners. In case of disagreement, it should be noted that Russians are very

people-oriented.

Some things to keep in mind when negotiating with the Russians:

Russians usually talk while standing about 2-3 feet away.

Address Russians by their first name followed by the father's name. Before calling Russians by

their first name, you should wait until they offer it. Introductions are accompanied by handshakes.

The exchange of business cards is essential when meeting someone for the first time. You should

use business cards with 1 side in English and 1 side in Russian.

When presenting the business card, make sure the Russian counterpart is facing you. Smile and

make eye contact when accepting a partner's card, then look at the card for a few minutes.

2. What tactics will be most effective to use

* Location:

For negotiations in Russia, choosing the right space will contribute to creating a positive

atmosphere for negotiations. Russians have their own concept of colours and numbers. It is best to

choose a place that is decorated with red, green or blue as the main colour because they believe

these are colours that bring luck and success. Besides, you should choose related numbers such as

number 3, number 7, or number 12. Never use black, white and number 13 because the Russians

consider this to bring misfortune and pain.

* Time:

Negotiators should have a plan to prepare before the negotiation takes place and must notify

your client as soon as possible because they are still cooperating and negotiating with many other

parties. One thing that negotiators in Russia should avoid is the first week of May because in

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Russia this is a time of many important ceremonies. The effective use and arrangement of time is a

way for the negotiator to demonstrate his difference from the opponent in the eyes of the Russian

counterpart.

3. Recommended negotiation strategies

In negotiations with Russia or any other similar country with Russia, negotiators should choose

the strategy of integrative negotiations because negotiators always aim to integrate benefits, create

value and invest in agreements in Vietnam. both sides. For a country with great potential and many

developed enterprises like Russia, a strategy of integrative negotiations towards long-term

cooperation is essential. This is the most useful tactic in business negotiations with Russia.

IV. Recommandation

Russia is a country with many strengths in mineral exploitation, especially oil and gas - an

essential commodity of the whole world, besides Russia is also a leading country in military

matters. When negotiating with Russia, in order to help the negotiation process go smoothly and

come to success, negotiators need to have a clear understanding of all that is related to businesses

and people of Russia. Once understanding the business and the country, the negotiator will come up

with appropriate negotiation strategies to help the negotiation come to a great success, avoiding

conflicts between the two sides and worse. caused a trade war between the two countries.

V. Conclusion

When negotiating in any international transaction in general and with Russia in particular,

negotiators need to learn very clearly about the culture and people of that country and the corporate

culture of those people. in this country. This makes the negotiation process more convenient and is

also a prerequisite that any negotiator needs to prioritise.

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VI. References

- Was it inevitable? A short history of Russia's war on ukraine | Keith Gessen. The Guardian.

Retrieved March 12, 2022, from

https://www.theguardian.com/world/2022/mar/11/was-it-inevitable-a-short-history-of-russias-war-on-u

kraine

- Business culture and etiquette in Russia. Today Translations. (2019, March 28). Retrieved March 12,

2022, from

https://www.todaytranslations.com/consultancy-services/business-culture-and-etiquette/doing-business

-in-russia/

- Đàm phán kinh doanh quốc tế với Nga. Retrieved March 12, 2022, from

https://123docz.net//document/2449954-dam-phan-kinh-doanh-quoc-te-voi-nga.htm