regional language you can learn before you travel, the better. But

since 88 languages exist within Russia and the old Soviet states,

it is not always wise to count on a translator from home. Artemenko,

who herself knows seven languages, suggests that an interpreter be

established in each city or region you intend to visit. While the

small business may not have the capital, even a middle size firm may

profitably seek a consultant’s guidance.

Co-speaker Tumanyan agrees that language is a major separating point,

but argues that the entire culture should be studied before

formulating

travel plans, let alone business deals. In addition to holding its

own set of general customs, each nation’s business community operates

within its own culture.

For the past 25 years, Tumanyan has developed a expertise in several

global business cultures. After immigrating to the U.S. from Moldavia,

where she studied German, Tumanyan studied at the Texas University

Latin American Institute and became a teacher of Russian. Since then

she has worked for Hoffman International, easing the corporate path

in such areas as China, Latin America, the Baltics, and Russia.

demanding a letter of credit before any negotiations can begin.

"Frankly,"

says Artemenko, "you are just not going to get it." Russian

capitalism is barely a decade old. Established credit records seldom

exist — and when they do, they may be scrawled on hand written

ledgers. Virtually every other nation negotiating with new Russian

companies offers substantial financing. Americans, once legally denied

this tool, can now employ the financing lever to win contracts.

belief is required," says Tumanyan. "In America, laws are

designed to push trade forward. In Russia, they are made to halt the

flow of business and examine it at every step."

For example, five years ago Russia faced an onslaught of new goods

and a cash drain of $20 million a day. To halt this, the government

installed restrictions, forbidding any currency from leaving the

country

for more than 90 days before the goods were delivered. The fact that

you may need that cash for goods which take 180 days to produce or

procure is incidental. Yet, as always, there are little instruments

such as the "passport of the deal" allowing an exception,

or the creatively conceived "comfort letter," which lands

you within the legal zone. Doing business is a matter of learning

how to negotiate these loopholes.

up trying to explain, train, and cajole," warns Tumanyan. Covering

the complexities and benefits of a three-year T-bill can take easily

an hour and a half. Convincing people to ship in cost-saving partial

containers, delving in the exactitudes of Russian or American banking

forms — everything takes an enormous amount of time. In addition,

the old Soviet states operate on a system of trust. Winning this trust

must be done day in and day out; but once won, your dealings further

on are assured.

goods, but it needs them delivered its way. For example, under

Communism,

the Soviets dealt only with major manufacturers in large lots. This

attitude retains. If you are a distributor, who is supplying only

100 units to a given dealer, you may have to break down this small

lot reticence by including a full accessories inventory and warranty

and service commitment.

not the ruble — is the preferred currency in Russia. Yet too many

off-site managers have endured losses in this, and other currencies,

by depending on the Western system of long-distance cash collection.

In Russia, out of sight leads to out of pocket. Managers who continue

to present themselves on site, overseeing production and sales, will

discover that businesses and local banks respond, albeit slowly.

However,

managers who show up American-style, exacting payment schedules, will

very likely be disappointed.

Russia holds a somewhat unique position in the global economy. In

one sense, it is a new democracy with an emerging capitalism. But

unlike others in this category, it is massive in area, unrivaled in

resources, and has enormous purchasing power in the hands of both

its government and its individuals. As Tumanyan puts it: "America

and Russia are closer souls than either one thinks. We are sisters.

We learn from them — they learn from us."

— Bart Jackson

Corrections or additions?

— the web site for U.S. 1 Newspaper in Princeton, New Jersey.