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Issue link: http://digital.canadawide.com/i/296829
may 2014 BCBusiness 27 istock P R E S E N T I N G Q U E E N O F H E A RT S R E C E P T I O N K I N G O F H E A RT S M E D I A e a s T e r n e u r o P e Doing Business in Russia Opportunities can be found for those willing to run against the tide of sanctions by Jacob Parry e ven before Russia became a pariah state thanks to its imperialist intentions, it was no picnic for Canadian companies wanting to do business there. A burdensome regulatory regime, widespread corruption and shoddy infrastruc- ture have hampered investment since the country opened up in the mid-1990s, warns the U.S. Department of Commerce in its com- mercial guide for doing business in Russia. Nevertheless, Rus- sia's growing consumer class and recent acces- sion to the WTO suggest opportunities for those willing to buck the tide of international censure. For companies still intent on capitalizing on Russian opportunities, here are a few tips. Cold, Flat and Empty The country east of Moscow—extending for another eight time zones—is cold, sparsely populated and inter- mittently blanketed by boreal forests and tundra, not unlike most of Canada. "When it comes to what the Russians need, Canada has something to offer," says John Sloan, Canada's former ambassador to Mos- cow. He explains that because we have experi- ence adapting to similar challenges of climate, distance and infrastruc- ture, a lot of the equip- ment and technology developed in Canada is well suited to Russia. Trust but Verify Canadians should be prepared for the quirks of Russian culture, and a long-term relationship with their Russian part- ner. Investors should be ready to make multiple visits, spend time on the ground and invest in local legal advisers and personnel. "Regardless of who your partner is, you're going to have to do what the Russians call 'trust but verify,'" says Lou Naumovski, a Moscow-based direc- tor with Kinross Gold Corp. "Trust that you are speaking the same language and that your terms are clear, but you still have to verify whether the expecta- tions of each other are appropriate." "Russians are proud people," says Tatiana Domilovskaya, director of the Canadian Eurasia Russia Business As- sociation. Defaulting to stereotypes will do your interests more harm than good. "Be patient, be understanding and do your homework," she advises. • ToP Five B.c. exPorTs To russia Medical equipment $3.4 million Circuit boards $5.8 million Pork $8.9 million Mining machinery $33.2 million Frozen fish $24.4 million source: b.c. stats MOSCOW RULES Forget stereotypes when dealing with Russia's proud people. p25-29-Intel_may.indd 27 2014-04-09 3:12 PM