This document provides information about negotiating with Russians. It outlines 12 variables of Russian negotiation: 1) Russians emphasize knowing their negotiating partners well. 2) Negotiator selection is based on experience, seniority, and technical knowledge. 3) Interpreters are often needed since many Russians do not speak English fluently. 4) Russians see compromise as weakness and will continue negotiating until concessions are made. Establishing trust is important, and Russians prefer to discuss general principles before specifics.
3. 12 VARIABLES OF RUSSIAN
NEGOTIATION
SUBMITTED BY
a. SAIFULLAH MALIK
b. IBRAHEEM ANSER
c. HUSSAIN UD DIN
4. RUSSIA (PROFILE)
i. Country-federation & Semi
Presidential Republic
ii. Capital-Moscow
iii. Population-143,030,106
iv. President - Vladimir Putin
v. Prime Minister-
vi. Currency-Ruble (RUB)
vii. Religion-Orthodox, Christianity ,Islam,
Buddhism & Judaism
5. RUSSIA (PROFILE)
viii.Legislature - Federal Assembly
ix. Upper house - Federation Council
x. Lower house - State Duma
xi. Largest water resource- lake Baikal
xiv.Economy – 10th largest
xv. Political stability –bolster economic
growth
6. 1 # BASIC CONCEPT OF
NEGOTIATION PROCESS
i. Great emphasis on knowing their
partners.
ii. Other party must be serious in
negotiation.
iii. Do not give timelines for delivery
iv. Strong resistance they will back off.
v. Win-lose
7. 2 # NEGOTIATOR SELECTION
CRITERIA
i. Criteria for selecting the negotiation
team include negotiating experience,
senioriorty, political affiliation ethnic
ties, technical knowledge and personal
attributes.
8. 3 # SIGNIFICANCE OF TYPE
OF ISSUES
i. Russian are generally not fluent in
English.
ii. Normally services of interpreter are
needed.
iii. Meeting schedule to be finalized at
least 2 to 3 weeks in advanced.
9. 4 # CONCERN OF PROTOCOL
i. Russian view compromise as a weakness and
will continue to negotiate until you offer
concessions.
ii. Russian may lose their temper, walk out of
the meeting or threaten to terminate the
relationship in an attempt to coerce you to
change your position.
iii.Being late by more than 10-15 min without
having a valid plausible excuse is considered
an offense.
10. 5 # COMPLEXITY OF
LANGUAGE
i. Russian is the official language, the
number of minority languages also
exist. Not many business people speak
English fluently.
ii. It may be necessary to have an
interpreter. Ask beforehand whether
an interpreter should be present at a
meeting. However, keep in mind that
even some interpreters may not speak
and understand English properly.
11. 6 # NATURE OF PERSUASIVE
ARGUMENTS
In Russia the primary approach to
negotiating is to employ is distributive
and contingency bargaining.
Russian are highly skilled negotiator,
But the majority of business people in
the country have only limited
experience in the field.
12. 7 # ROLE OF INDIVIDUAL
INSPIRATION
The emphasis negotiators place on their
individual goals and needs for
recognition may also vary.
In some cases the position of a
negotiator may reflect personnel goals
to a greater extent than corporate
goals.
13. 8 # BASES OF TRUST
Russians like to establish on general
principles first. The first meeting is
normally approached more as a
formality.
They try to establish the credibility of
negotiator in this meeting. Once the
trust is established than the Russian go
for serious negotiating.
14. 9 # RISK TAKING
PROPENSITY
i. Negotiators can be perceived as either
cautious (low risk takers) or
adventurous (high risk takers).
ii. If a negotiator selects a solution that
has lower rewards but higher
probability of success, He or she is not
a risk taker. If the negotiator chooses
higher rewards but a lower probability
of success then he or she is
adventurous and a risk taker.
15. 10 # VALUE OF TIME
▪Negotiations with Russians could be
very slow and protracted.
▪The delay indicates that they are
evaluating alternatives or that they are
not interested in doing business with
you.
16. 11 # INTERNAL DECISION
MAKING SYSTEM
▪Russians expect to work within clearly
established line of authority.
▪Decision makers are usually senior
executive, who consider the best
interest of the group or the
organization.
17. 12 #FORM OF SATISFACTORY
ARGUMENT
i. Russian may insist on having a protocol
(minutes of meeting) signed by both parties
at the end of the meeting. Its serves to
record what was discussed, is not a contract
and should not be mistaken for final
argument. Written contract should be clear
and concise without too many detailed
terms and conditions.
ii. The Russian may request that the detailed
of the contract may be kept secret.