Successful cooperation with Russian business partners Negotiations with Russians

Preparation

You should know your negotiating partner well. This requires a little research. This is the basis of all negotiating skills around the world and applies particularly to Russia. The usual rules of the game that apply in Western Europe or America are sometimes suspended here. Check the position of your negotiating partner and the profile of the company they represent. Do not take anything literally. It is important to realistically assess promises, competencies and decision-making powers. A Western managing director I know once negotiated with a partner whose business card showed nothing more than his name and that of his company. In fact, he was the most important man in the team, even if his companions had much more “flowery” titles. However, the following always applies – Russian business partners negotiate the Russian way. So don’t always believe all promises, but put them into perspective. In other words, be prepared for what they can realistically offer you. Then you can work together successfully without experiencing disappointment.

The first encounter

Do not expect accurate punctuality. This is not unusual, but it is just as common to be rather generous with time. In Moscow and other large cities, delays can always be attributed to traffic. That may well be true. Or not. This may sound extreme, but it also applies to meetings between Western business partners and the “Western etiquette” is restricted here depending on the situation.

It is also advisable to always confirm appointments at short notice, especially if you are dealing with high-ranking Russian negotiating partners.

Be sure to emphasize the importance of mutual relationships at the first meeting. However, don’t be too open at the beginning. That could send the wrong signal. It is better to invest some time in building up the relationship, as this creates trust and respect and a good basis for further business cooperation.

Russian negotiating style

As already described, many Russian negotiating partners tend to have a win-lose attitude, especially if they come from the older generation. Compromise is often interpreted as weakness. So make sure you have a suitable strategy. If possible, act from a position of strength. And bear in mind that Russians tend to think in the short term. A long-term and stable partnership can only develop after establishing trusting and successful business relationships. Initial proposals are often unacceptable. This has to do with strategy, not with what is actually being sought. You are expected to make concessions and exceptions. So never reveal your cards at the first trick.

It is also important who you are dealing with during negotiations. This is primarily a generational issue:

The older generation tends to negotiate conservatively. Negotiations therefore tend to be tough, but also sometimes emotional. Furthermore, these negotiating partners generally have poor foreign language skills and are not familiar with modern corporate management.

The younger generation, on the other hand, has already “embraced capitalism”. They are more flexible, pragmatic and rational. Language skills and management methods are familiar. What has already been emphasized in the “Preparation” section applies – familiarize yourself with who you are negotiating with and prepare yourself for the various negotiation situations.

Documentation

It is advantageous to take minutes after each round of negotiations, which should be countersigned by the partners. This may not always be possible, but it is definitely an advantage. These minutes should be brought to the next round. However – be prepared for agreements that have already been discussed to be called into question again. This procedure is essential when teams change in order to be able to understand the status of things.

The role of interpreters

You must be able to rely on your interpreter. Not only must they translate the conversation into another language, they must also ensure understanding in unclear situations. It is also important that they are familiar with the business world, or even better, the industry. A university-educated professor who can interpret Goethe will not help you. So check how good an interpreter is and especially whether you can trust them. Once you have established a relationship of trust, stick to it, even if it costs a little more.

Critical points

Russians generally expect better conditions from acquaintances in terms of price, payment methods and contract design. So be prepared for this and determine in advance how far you can really go. You should base your opening offer on this.

Also be prepared for the fact that Russians are easily offended if you ask for references or proof of quality. Explain the rules of the game in your country to promote understanding. And it is best to find out about your negotiating partner beforehand. This is the most elegant method for business relations in Russia, which can save a lot of time and create a good atmosphere.

Russian negotiating tactics

You are often confronted with unrealistic offers at the beginning. Don’t give up too quickly, negotiations go through a process that can sometimes take time, but then bears all the more lasting fruit. Always negotiate from a position of strength and remain firm. This will earn you respect. And above all – take your time. Negotiations usually go on for several rounds.

It is not uncommon for Russian negotiating partners to provoke delays in order to achieve concessions. Plan for these possible delays, do not give up lightly and stay cool. Giving in at the wrong moment will be interpreted as weakness and can lead to the talks dragging on in order to gain further advantages.

Efficient negotiation tactics

Make an effort to build a personal relationship and defend your position. No deal is better than a bad deal. Therefore, be patient and allow enough time. Take the Russian mentality into account and be prepared for the fact that talks may take an unexpected turn. Then stick to your line and don’t get confused.

Last but not least

If you take the suggestions outlined here into account, you will be spared some potential surprises and you will have a good start to building your business relationships. It would be even better to rehearse the “real thing” in a special negotiation training course and thus develop your ability to act in real or exemplary situations in a targeted manner in order to put your business cooperation on a solid footing right from the start. An investment that pays off handsomely.