Russian Businessmen Jittery Over Foreign Deals

29 January 2007

MOSCOW: According to preliminary findings of a PricewaterhouseCoopers poll of 1,084 chief executive officers in fifty countries, Russians are the most jittery when it comes to business dealings with other nations. They cite foreign political influences and cultural clashes as their main concerns.

Fears that "cultural conflicts" could impede cross-border mergers and acquisitions were expressed by 67% of Russian business executives compared with just 45% of their counterparts worldwide.

Moreover, 33% of Russian executives worry that foreign governments might block their attempted acquisitions, while just 17% of the global sample share such fears.

Andrei Kuznetsov, head of the international relations department at the Russian Union of Industrialists & Entrepreneurs, explains that Russian companies "don't have much experience with expanding abroad. The process is just beginning to gain momentum."

Officially accorded 'market economy' status by the US Department of Commerce in 2002, Russia is no longer the "sleeping giant" of the immediate post-Soviet era and has just entered its ninth consecutive year of economic growth.

Data sourced from Moscow Times; additional content by WARC staff