In these rapidly changing times, it is difficult to generalize the business customs of this vast country, but the following are some of the most commonly followed customs.
Russian business revolves around a system of unequalled red tape. Stamps, forms and signatures comprise a frustrating maze for western business which often sees no point in the exercise. Patience, long suffering and often the goodwill of Russian partners is the only key to success. Documents carefully notarized in the United States attesting the bank accounts or viability of a company will often be rejected by Russians. American business will be asked for notarization by the American Embassy. Though the Embassy can only notarize that the requestor states the documents are authentic, this is what seems to satisfy Russians.
Russian businesses place a very high value on personal interaction and relationships. Business is rarely conducted on the phone, and decisions are almost exclusively reached in face-to-face negotiations. Such meetings usually begin with an exchange of business cards (it is helpful to have yours also printed in Russian) and progress through serious, seemingly endless speeches accompanied by tea and cookies early in the day or vodka toasts for later meetings. When invited for dinner meetings, the evening can often bevery long and seemingly unproductive, but may be the necessary groundwork for an agreement signed at a later date.
Russians put great stock in personal relations. A hand shake may be more binding for them than the actual signed agreement. Contract sanctity is not a well institutionalized concept in Russia with the signatory or with Russian courts. The Embassy knows of cases where Russian businesses simply abrogated signed contracts when difficulties arose or they deemed the contract no longer advantageous to their side.
Western business persons should be aware, though, that Russians are zero-sum thinkers. Though westerners expect negotiations to result in win-win agreements for both sides, Russians often think that they can only win in a negotiation if the other side loses. To succeed in business, Russians often have to scheme and plot ways to circumvent rules and find loopholes in government regulations. Often Russian businesses allow this approach to spill over into negotiations with private persons and firms.
Military conflict continues in the Chechen Republic, and the Ingush Republic and the North Ossetian Republic also witness frequent armed violence. Political problems continue in the North Caucasus region of Southern Russia and along Russia's border with Azerbaijan and Georgia. These areas should generally be avoided if possible.
A passport and a Russian visa are needed to travel to Russia. This visa must be obtained before leaving the United States and the cost of visas depends on the amount of time allowed for processing. Given a month's notice, a Russian visa theoretically costs $20. When asking for very fast service, a Russian visa can cost 100 dollars or more. Business travellers must have a letter of invitation from a Russian individual or organization which serves as the sponsor.
Visas of short duration are stamped with exit dates which must be strictly observed. Allowing a Russian visa to expire can result in heavy fines and tedious work with the bureaucracy for permission to leave the country. If the visa is for a prolonged stay, then an exit visa must be obtained by the traveler's sponsor after his arrival in Russia.
If travellers stay more than three days in Russia, they must register their visa through their hotel or their sponsor. Failure to do so can result in grave difficulty in leaving the country. Travellers should ensure that their visa is in order before leaving the United States.
Americans can receive assistance from the Russian Embassy, Consular Division, 1825 Phelps Place, NW, Washington, DC, 20008. The Russian Embassy can be reached at (202) 939-8907. Travellers can also receive assistance from the Russian Consulates in New York, San Francisco or Seattle.
Jan 1 New Year's DayIn the event holidays occur on weekends, Russian authorities announce during the week prior to the holiday, if the day will be celebrated on the following Monday.
Jan 7 Orthodox Christmas
Mar 8 International Women's Day
May 1 International Labor Day
May 2 Spring Day
May 9 Victory Day
June 12 Independence Day
Nov 7 Revolution Day
Dec 12 Constitution Day
Moscow has four major airports which ring the city. International flights enter Moscow through Sheremetyevo II and travellers may continue to other Russian cities through any of the other three airports. Travel time to the departure airport can be as much as an hour and a half from Sheremetyevo II, and ample time must be allowed for passport control, customs clearance and baggage retrieval. A new taxi service has been initiated at Sheremetyevo II which is highly recommended. You can pay the set rate and avoid hassles with free lance taxi drivers.
The St. Petersburg airport (Pulkovo) has two terminals: Pulkovo I (domestic flights) and Pulkovo II (international flights). Pulkovo II handles 70 flights per day and is serviced by major European and American carriers, including Delta, Lufthansa, British Airways, KLM and Finnair. The domestic terminal, which is located ten minutes by car from the international terminal, handles flights to all major Russian cities, including several flights daily to Moscow. Both terminals are located relatively close to the city, approximately 40 minutes by car from downtown St. Petersburg. There are taxi dispatchers at the airport to supervise taxi service; in addition, the major hotels as well as the American Express office run limousine services for airport transfers.
Travellers should not expect western standards on Russian airlines. With the breakup of Aeroflot into many small airlines, travel within Russia is often unreliable. Domestic air travelers must often cope with unpredictable schedules and difficult conditions including deterioration of centralized systems of maintenance and quality of service, as well as overloading.
Western travellers will be required to pay a higher rate for their tickets and will generally beseated in the front cabin. This is not "first class". Travellers will find cramped, sometimes unsanitary conditions with very little space for carry on luggage. Though food and beverages are now sometimes served on internal flights, it often pays to bring your own refreshment if you think you will be hungry. As noted above, Transaero is a good alternative to Aeroflot for those cities it serves.
An alternate method of getting around inside Russia is to travel by train. For cities as close as St. Petersburg, travellers can generally ride night trains. Trains generally arrive in the center of the city and save many of the baggage hassles that accrue in air travel. Trains are also far more reliable, since flights are often cancelled for lack of fuel. Unfortunately, increased incidents of theft and other crimes on trains has made this mode less safe -- especially for unaccompanied passengers.
Car travel is not advised except for the cities very close to Moscow. Roads are often in very poor condition and fuel is sometimes very difficult to obtain.
Within Moscow and St. Petersburg the metro system provides an excellent, inexpensive means of transportation. Most major attractions in the city are very close to metro stops. Signs are all written in Russian, so it can be challenging especially if you must change lines at any point. Be sure you can recognize the spelling of all destinations before embarking on a metro adventure.
Marked taxis in Moscow and St. Petersburg are often scarce. Russians simply stand on the side of the street and put out their hand for a ride. It often takes only a minute to find someone willing to drive you. As in other big cities, you are taking a certain risk in using this method, especially if you are alone, or it is after dark. Be sure to negotiate the fee before you get in the car, and never get in a car occupied by more than just the driver.
Pickpocketing and muggings sometimes occur in broad daylight. Americans should exercise particular caution in airports, open markets, near major train and metro stations, and when hailing taxis. Groups of children who beg money sometimes pickpocket and assault tourists. Foreigners' hotel rooms and residences have also been targets, and some victims have been seriously assaulted during robberies.
Extortion and corruption permeate the business environment in Russia. Organized criminal groups target foreign businesses in many Russian cities and demand protection money (under threat of serious violence). Many western companies hire security services, but this has not always been proven effective in avoiding armed extortion attempts.
Many Americans living in Russia travel to the West for virtually all of their medical needs; such travel can be expensive if undertaken under emergency conditions. Travelers should know their insurance coverage and consider supplemental coverage for medical evacuation. Elderly travelers and those with existing health problems may be at particular risk.
In Moscow automatic tellers for American Express credit cards are located at the American Express Office and at the Mezhdunarodnaya (International) Hotel; an automatic teller for Visa cards is located at the Metropol Hotel. Dialog Bank at the Radisson Hotel provides cash advances for Mastercard holders, and cashes personal checks for American Express card holders. The American Express offices in Moscow and St. Petersburg can cash American Express Travelers' checks, and personal checks for card holders. The St. Petersburg American Express Office can provide cardholders with cash advances up to $500. In St. Petersburg Promstroybank, Bank St. Petersburg and Baltiyskiy Bank provide cash advances for all major types of international credit cards and cash traveler's cheques. Western Union has agents in Moscow, St. Petersburg and some other large cities which can disburse money wired from the United States.
All items of historical or cultural value (icons, rugs, old books, antiques, art, etc. may only be taken out of the country with prior written approval of the Ministry of Culture and a payment of 100% duty.
Caviar may be taken out of Russia only with a receipt indicating that it was bought in a store licensed to sell to foreigners. Failure to follow customs regulations may result in temporary or permanent confiscation of the property in question.