[Deb Palmieri on Russia Table of Contents]

The following article was published in the Russian Commerce News, May-June 1999. The Russian Commerce News is the official publication of The Russian-American Chamber of Commerce®.

Top Ten Survival Tips

There have been so many profound changes and developments in Russia the past several months, it's hard to keep track of them, not to mention assimilate and understand them. But it's fair to say that in talking with Russians and the Americans who do business with them, people are generally unfazed. Life goes on. Strangely, there can almost be found a sense of normalcy within instability, as contradictory as that sounds. There is one thing for certain that recent developments underscore: You think you know Russia, but you don't. Standard predictors or methods of analysis are simply non-functional in their explanatory power of recent events.

Russia is in the midst of a critical period of change and flux domestically and one in which volatility characterizes the international environment, both financially and politically. As such, it is especially important for companies to distill the massive amount of information that comes out daily on Russia, from Russian and foreign sources, in order to create sound business knowledge. Take the right tactical and operational steps today and plan strategically for tomorrow to survive and thrive in Russia's unsteady environment. What steps can you take?

  1. Crisis control. As the chair of our Chamber, Colin Reeve said, "Don't worry about the crisis and what you can't control, do what you can to control the impact of the crisis on your operation. Exert what control you have effectively and find every more creative ways to grow revenue."

  2. Assess your risk factors astutely. Risk factors change constantly. Stay on top of them and focus on determining how the macro and micro political situation can impact you specifically.

  3. Shore up vulnerable areas. Be clear what types of risks can undermine your operation and strengthen weak or vulnerable areas.

  4. Keep political risk in perspective. Don't overestimate (or underestimate) political risks. High Russian governmental turnover gives people the jitters and creates anxiety, but remember that while the cast of characters is shifting constantly at the top, there is relative stability at the mid and lower levels of ministries, entities and institutions that you deal with, providing more continuity than you would think.

  5. Value personal relationships. Your personal ties with the Russians you deal with are of paramount importance. Nurture and pay attention to them and increase your interpersonal contact and goodwill efforts.

  6. Remain optimistic and undaunted. Don't waiver on your belief in the strength of Russia's people and ability to persevere. Don't forget that you view the glass half full, not half empty.

  7. Breathe a sigh of relief. Be glad that the Russian economy is showing modest signs of a slow recovery and that the war in Kosovo appears to be winding down.

  8. Remember that Russians value you. Foreign direct investors are wanted and valued, no mater who you talk to or which political factions may prevail.

  9. Stay grounded. Test your resolve in your belief that joint cooperation is good for the U.S. and good for Russia. Your staying power will mean a lot in the long-run.

  10. Don't forget about the big picture. History is important. It shows us that all nations have up and down cycles. What goes down, comes up. It's next to impossible, therefore, that the Russian economy won't eventually recover and that political tensions and risks won't eventually subside.

Savor your moments in Russia; you'll miss them someday.

Deborah Anne Palmieri
Russian Commerce News, May-June 1999

Copyright 1999 The Russian-American Chamber of Commerce®