How to work with your Russian partners
Russia is an increasingly important trade partner for India. In the financial year 2023/2024, trade between the two countries almost doubled and reached a record-breaking $66 billion. In this article, we look at the business processes and rules of communication that are particular to the Russian business sphere and shed light on the best ways to do business with a Russian.
First contact: putting business first
Business practices in India and Russia differ significantly, says Olga Kulikova, Business Ambassador to India for Business Russia, an association of entrepreneurs. While it is common in India to ask your business partners about their personal life first and discuss business next, Russian entrepreneurs don’t spend much time on small talk.
Kulikova advises against asking your Russian counterparts personal questions in the early stages of a business relationship. "Russians don’t tend to mix business and friendship, so questions about someone’s personal life may be seen as invasive," she explains.
Business persons from Russia may look very reserved at first, but as one breaks the conversation, one realises very quickly that they are rather outgoing, friendly and candid people, says Lydia Kulik, Head of India Studies at the SKOLKOVO School of Management. “These are their common features with the people from India. There are really hardly any subjects that you cannot discuss with a Russian person. Often a conversation ranges across many topics about business, politics as well as personal life”, she comments.
The experts advise that topics such as income and prosperity, political or religious views, personal relationships and health are best avoided.
Addressing your Russian partners
When addressing each other, Russians don’t add "Mr", "Mrs", or "Miss" before a surname or use titles such as "Doctor" or "Professor", as is the case in many other countries. Kulikova’s advice is to address your Russian partners formally until you establish closer ties. For men, this means using the formal gospodin followed by their last name, and for women — gospozha, also followed by their last name. If you don’t know a person’s last name, you can use their first name and patronymic.
In Russia, besides first and last names, people have a patronymic based on their father’s first name. For example, Ivan Sergeyevich Petrov, where Ivan is the first name, Sergeyevich is the patronymic, and Petrov is the last name.
As your relationships evolve, you can switch to a first name only basis.
Negotiation do's and don'ts
Russians in business consider it very important to be precise and deliver on their commitments. Consequently, Russians tend to arrive at meetings on time. If they are running late, they will inform those they are meeting and apologise. Being late by more than 15 minutes may be regarded as disrespectful.
While it’s not common to hear a direct "no" in India, it is perfectly acceptable in Russia to refuse something to a partner.
"Indian entrepreneurs should treat a refusal from their Russian partners with understanding and respect. Russians tend to give their straightforward and honest opinion, so a "no" doesn’t necessarily mean that they aren’t interested in cooperating. They may simply have other priorities or considerations," Kulikova explains. Should you receive a refusal, the expert recommends that you thank your Russian partners for their time and express your willingness to cooperate in the future.
Sammy Manoj Kotwani, President of the Indian Business Alliance, highlights that as a rule, Russians value formality and respect for hierarchy in their business interactions. Hence, he warns his Indian colleagues against behaving too casually or informally. "Be prepared to discuss the details in depth and back your arguments with facts and data. Russians tend to value a structured and analytical approach," he stresses.
The expert also recommends that you maintain good eye contact, behave confidently and calmly, and avoid being too emotional. "Dress conservatively, opting for business attire and formal clothing, which will be considered a sign of professionalism," he adds.
Kulikova suggests that Indian entrepreneurs allocate more time for business negotiations with their Russian partners than they would usually. "Russians tend to take a more orderly and deliberate approach to business negotiations than their Indian counterparts," she explains.
Overall Russian business persons, in Lydia Kulik’s experience, are rather practice-oriented and they may speed things up when they see real opportunities. Usually it is the Indian side that prefers to take things a little slower and not jump into the business dealings straight away. It is really up to prospective business partners if they want to speak business or, in case there is lack of comfort in the relationship, to take it to a personal level first. “In recent years many Russian entrepreneurs have acquired somewhat transactional approach to business dealings under the influence of the Western business tradition, but fundamentally their approach is similar to that in India, it is deeply connected and personal”, she says.
Usually Indian business persons are tough negotiators who are also in no rush to sign the deal if it is not in their interest, adds expert. “If pricing becomes the stumbling block, smoothness of paperwork, regularity and long term nature of the business as well as future prospects of trade gain higher importance and become crucial for both Russian and Indian side”, she explains.
Money matters: is it okay to negotiate on price?
In Kulikova’s opinion, a fundamental distinction between business negotiations in Russia and India is that in India, it is common to negotiate a price in an open and straightforward manner, while in Russia, price negotiations may be more subtle and indirect. Often, additional bonuses or large discounts will factor into the discussion.
According to Kulikova, Indian entrepreneurs should not be afraid to discuss discounts or bonuses. "Just be prepared for negotiations to take longer than you expect," she cautions.
"The Indian entrepreneur may ask directly for a 10% discount, while their Russian counterpart will be more subtle. For example: "We know our price is higher than what our competitors are offering, but we are providing a higher quality service." Also, Russians may be more willing to discuss indirect forms of compensation, such as long-term contracts, exclusive rights, or joint ventures," says Kulikova.
Who pays for business lunch
In Russia, a business lunch is usually paid for by the inviting party. However, if the person who initiated the meeting says nothing about it, Olga Kulikova suggests that Indian entrepreneurs can politely suggest splitting the bill. For example, you might say: "Shall we share the bill?" or "Wouldn’t it be fair to split the bill?"
Maintaining business relationships
As is the case in India, Russians conduct business using messaging apps in addition to email. Business chats are usually created either in WhatsApp or Telegram for more efficient discussion. Sammy Manoj Kotwani recommends that you find out what communication channels your Russian partners prefer. As a rule, confidential business matters should be discussed on more secure corporate messaging platforms rather than in consumer apps.
"Establish clear protocols for using messaging apps to ensure consistent, professional communication," Kotwani says.
One important tradition is giving gifts to your partners. "Acknowledging national holidays and congratulating your Russian partners can be a nice gesture. A simple email or greeting card expressing your best wishes and appreciation for the partnership can significantly improve your relationship. You could also consider sending a small, appropriate gift," suggests Sammy Manoj Kotwani.
Russians’ favourite holiday is New Year, which is celebrated on December 31st. People usually start exchanging season’s greetings the week before. This is a traditional time to give presents to your partners, but they shouldn’t be so expensive as to be perceived as a leverage tool. Russians in business will often give each other presents sporting corporate logos (e.g. a clock) and alcohol. But an Indian partner could also give gifts reflecting their national identity, which will be accepted with interest and gratitude.
Russians also celebrate Defender of the Fatherland Day (February 23rd), when it is customary to congratulate men, and International Women's Day (March 8th). Men usually receive small gifts, while women get flowers.
There are two other national holidays — Russia Day (June 12th) and National Unity Day (November 4th) — that are both bank holidays, but normally no gifts are involved.
Conclusions
Indians in business will find it easiest to establish a relationship with Russian companies based in bigger cities, such as Moscow, St Petersburg, Yekaterinburg, or Novosibirsk. Kulikova observes that these cities have a more international business climate and people there are used to working with overseas partners. Companies from Russia’s more remote regions can be harder to deal with because of the language barrier and cultural differences. But finding common ground is generally much easier than you might think. Russian entrepreneurs are conscious that their international colleagues may not be aware of the local etiquette and will be understanding if certain rules are not observed — especially when they are keen to collaborate.