Doing Business with Russia
The Ten Commandments for Doing Business with Russia
The PaulSourcing agency has prepared ten recommendations for doing business with Russia for Czech entrepreneurs interested in business relations with Russia. In 2020, it was supplemented with 4 current tips.
4 recommendations for entering the Russian market during the coronavirus pandemic situation:
- Market research The situation
on the Russian market is diametrically different from what it was ten years ago. There is high competition from all over the world and at the same time enormous pressure is placed on price and business terms. The situation is also made more difficult by the pressure to prioritize domestic production, while these tendencies will clearly increase in the coming years. The topics of “import substitution” and “localization” are still clear priorities of the Russian government. Under these conditions, Czech companies should conduct a detailed preliminary market analysis (competition, prices, import conditions, barriers, etc.) before taking fundamental and often irreversible steps to make sure that they really have a chance to be successful on the market. In this context, direct assistance is offered from both foreign offices of PaulSourcing (ZK Russia).Russia is approximately 200 times larger than the Czechia, so it is good to familiarize yourself with the structure of industry in individual regions. Most companies start in Moscow, or Petersburg, which is undoubtedly correct – it is here that a large number of parent companies of the largest Russian companies are located, a large part of capital is accumulated here, a large part of consumer goods flows through Moscow, and the majority of large importers are located here. However, if a company wants to succeed in engineering, energy, ecology or construction, it need not be afraid of discovering new, more distant regions, because in many cases large industrial holdings and corporations are located there.
- Search for business partners When searching for potential partners, representatives of ZK Rusko focus on a larger number of companies, so that the probability of success is as high as possible. When choosing a suitable partner, ZK Rusko recommends starting cooperation with at least two, you should always take into account that at a more advanced stage of cooperation it may happen that your partner loses interest in cooperation and you will start the selection again, thereby losing a lot of valuable time.
- Ways of communication Due to the current very limited face-to-face communication in Russia, modern communication platforms such as Zoom, WhatsApp, Skype, Viber, etc. are increasingly being used. Russians are quite advanced in this, so don’t be surprised that they will require you to communicate through these platforms and be prepared for it.Today, each region is taking measures to fight the coronavirus individually. That is why it is important, when air connections resume and borders open, to thoroughly inform yourself about the situation in the region you are going to visit before traveling to Russia. It could happen that you will not be allowed into the region of interest, or you will be automatically quarantined.
- Exhibitions and other events Exhibitions, business missions, economic forums, group presentations, etc., i.e. all mass events that PaulSourcing’s foreign offices in Russia planned to implement during the first half of the year, were mostly moved to later dates for well-known reasons. ZK Russia recommends those interested in these events to follow the PaulSourcing website, where up-to-date information on all upcoming activities is available. If you are interested in organizing e.g. a webinar, an online presentation, the use of foreign PaulSourcing websites to distribute information about your company, or other requirements, contact a PaulSourcing representative.
Ten for trading with Russia
- The working language is Russian, English is expanding. Russian, the younger generation in IT, banking and international trade also use English. The existing business sector and junior civil servants are well-travelled, educated and have an overview of the foreign offer. Every Czech entrepreneur should thoroughly prepare for the meeting.
- Personal contact is essential Business in Russia cannot usually be done “from the table”. It is necessary to count on personal contacts with Russian partners.
- Prepare trade offers It is a good idea to have trade offers ready in different delivery parities and in different currencies.
- Don’t be afraid of sharp negotiations on business conditions. Expect sharp negotiations on prices and conditions. It is necessary to calculate with a certain reserve for discounts, unpredictable expenses, etc.
- Read contracts carefully Very detailed and long business contracts can be misleading. Don’t approach things you can’t control. Important agreements must be confirmed in writing, oral agreements do not have the same weight.
- Get help Take advantage of the support of Czech representatives and companies operating on the Russian market, they can help you with initial information from the region. Better leave administrative matters such as company registration, etc. to the experts, again this will save you time, nerves and often considerable funds.
- Have background materials prepared in Russian . Catalogs and prospectuses should be prepared in Russian, or dual version, it is perceived as a manifestation of serious interest in the Russian market. The same applies to business cards, be prepared for the fact that Russian partners often lack business cards.
- Orient yourself in local legislation In contrast to the Czech Republic, in addition to federal laws, there are also local laws in force in Russia, which very often supplement/amend federal laws.
- Describe the goods Delivered goods must be equipped with descriptions, instructions in the Russian language. This obligation is imposed by the Law of the Russian Federation “On Consumer Protection”. Goods without Russian-language descriptions may not be released into free circulation in the territory of the Russian Federation.
- Be patient . Do not put too much pressure on your partners and do not rush, the Russian mentality perceives space and time differently than we do. A certain delay must be expected in business negotiations. Russians perceive time a little differently than the inhabitants of Central Europe. The cause of this is often also traffic problems – which, however, often serve more as an excuse. Do not plan business meetings for the end of the year or for the first half of January, when Russians combine vacation with public holidays. The same applies at the beginning of May, approximately until May 10.
Practical telephone numbers (emergency services, police, firemen, information lines, etc.)
If a citizen of the Czech Republic has health insurance, the assistance service, which he contacts in connection with insurance instructions, will select the appropriate medical facility for treatment or hospitalization. (Note: When calling from the territory of the Russian Federation, instead of the international RF code “007”, the number “8” is dialed. When calling from a landline abroad, the number “8” is dialed and after 4 seconds the number “10” and then the country code is dialed (for the Czech Republic 420), the city code and the number of the called party.)
Important telephone numbers:
• Call the fire brigade: 101
• Call the police: 102
• Rescue service and first aid: 103
• Report a gas leak: 104
• Universal emergency number: 112
• Embassy CR in Moscow consular department: 007 495 276 07 15, voice tree: 007 495 276 07 01
• In the event of an emergency of a citizen of the Czech Republic in the RF, call 007 916 353 26 01, where the citizen will learn how to proceed.
• Consular Department of the Ministry of Foreign Affairs of the Russian Federation – phone: +7 499 244 45 81,
• Group of Russian consuls performing consular service at Sheremetyevo Airport phone: +7 916 261 23 84, +7 915 118 16 14, www.svo.aero; Domodedovo phone: +7 495 971 24 71, +7 916 856 247, +7 916 261 23 59, www.domodedovo.ru; Vnukovo tel.:+7 495 436 40 19, +7 903 211 81 01, www.vnukovo.ru • Main
Administration for Migration Issues of the Ministry of Internal Affairs of the Russian Federation (migration service) Čistyje prudy metro station) questions regarding the registration of foreigners phone: +7 499 230 72 53
questions regarding obtaining a work permit for foreigners phone: +7 499 230 72 53
website: www.mvd.ru www.gosuslugi.ru
Important web links and contacts
The most used Russian search engines: www.yandex.ru, www.rambler.ru
Server of RF state administration bodies: www.gov.ru
RF government server with links to individual departments: www.government.ru, www.government.gov.ru
Ministry of Foreign Affairs of Affairs of the Russian Federation: www.mid.ru
Ministry of Internal Affairs of the Russian Federation: www.mvd.ru
Ministry of Economic Development of the Russian Federation: www.economy.gov.ru
Ministry of Industry and Trade of the Russian Federation: www.minprom.gov.ru
Ministry of Energy of the Russian Federation: www.minenergo. gov.ru
Ministry of Finance of the Russian Federation: www.minfin.ru
Ministry of Transport of the Russian Federation: www.mintrans.ru
Ministry of Agriculture of the Russian Federation (including links to the pages of professional chambers, unions and associations): www.mcx.ru
Federal Service for Veterinary and Phytosanitary Supervision: www.fsvps.ru
Ministry of Health and Social Development of the Russian Federation: www.minzdravsoc.ru
Ministry of Natural Resources and ecology of the Russian Federation: www.mnr.gov.ru
Ministry of Emergency Situations of the Russian Federation: www.mchs.gov.ru
Ministry of Defense of the Russian Federation: www.mil.ru
Ministry of Education of the Russian Federation: www.mon.gov.ru
Ministry of Development of the Far East of the Russian Federation: www.minvostokrazvitia.ru
Official website of the President of the Russian Federation: www.kremlin.ru
Central Bank of the Russian Federation: www.cbr.ru
Delegation of the European Union to the Russian Federation: www.eeas.europa.eu/delegations/russia/index_en.htm
Chamber of Commerce and Industry of the Russian Federation: www.tpprf.ru
Russian Union of Industrialists and Entrepreneurs: www.rspp.ru
Moscow Chamber of Commerce and Industry: www.mostpp.ru
Association of European Businessmen: www.aebrus.ru
Federal Statistical Service (ROSSTAT): www.gks.ru
Tax Administration: www.nalog.ru
Federal Customs Service: www.customs.ru
Federal Antimonopoly Office: www.fas. gov.ru
Federal Service of Technical, Environmental and Nuclear Supervision: www.gosnadzor.ru
Information on Customs and the Customs Union (RF, Belarus, Kazakhstan): www.tks.ru, www.tsouz.ru
Federal Migration Service: www.fmsrf.ru
State Transport Service: www.gai.ru
RF Regions Server: www.regions.ru
Moscow Government Server: www.mos.ru
Moscow Region Government Server: www.mosreg.ru
Information about Russian laws: www.consultant.ru
News sources in the Russian language:
NEWSru news server: www.newsru.com
Meduza news server: www.meduza.io
Daily RBK: www.rbk.ru
Daily Vedomosti: www.vedomosti.ru
Internet TV Rain: www.tvrain.ru
Daily Novaya Gazeta: www.novayagazeta.ru
Daily newspaper Rossijskaja Gazeta: www.rg.ru
Daily newspaper Nězavisimaja Gazeta: www.ng.ru
News sources in English:
Daily newspaper The Moscow Times: www.themoscowtimes.ru
Websites of embassies of the Czech Republic Embassy of the Czech Republic in Moscow: www.mzv. cz/moskva
Consulate General of the Czech Republic in Saint Petersburg: www.mzv.cz/petersburg/cz/index.html
Consulate General of the Czech Republic in Yekaterinburg: www.mzv.cz/yekaterinburg
Tourism: Federal Agency for Tourism: www.russiatourizm.ru
Tourist Information: www.rostur.ru
Statistics: Federal Statistical Service (Rosstat): www.gks.ru
Information about air connections: www.csa.cz www.aeroflot.ru