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Green Bay Businessman Details Trip to Moscow SOURCE: The Business News, June 19, 2006 Russian Business Deal Shows Potential for More Scott Bushkie, president and owner of Cornerstone Business Services in Green Bay, recently traveled to Russia to close the sale of a Russian-based railway consulting company, Transolutions, to Amsted Rail of Chicago. Following is an Bushkie's account of what it's like to do business in Russia. Sunday /Monday, May 21-22 The journey: Departed from Green Bay Austin Straubel international Airport at 10:55 a.m. Sunday and arrived in Moscow at 11 a.m. Monday. The Moscow airport was old and dated. It was interesting to see the diversity change as I switched planes for connecting flights. From Green Bay to Cincinnati, everyone looked like Green Bay people for the most part. In Cincinnati and New York, there was a more diverse group of passengers. On the plane to Moscow, there was obviously a large group Russians and business people from many parts of the United States flying over for business. The first thing I noticed in Russia was the traffic near Moscow - it is the worst I have ever seen. It makes Chicago rush hour look fairly tame. We left the airport at 1 p.m. and it was unbelievable. I asked my client Marcus Montenecourt, managing director of Transolutions, if the crazy traffic was normal and he said it was. He said that as the economy has grown over the last few years, the middle class is starting to emerge, resulting in more cars on the streets, along with many people who are driving for the very first time. We went from the airport to Marcus's condo in downtown Moscow, which he calls his "apartment.. even though he owns it. It was very modem - flat screen TVs, "smart house" technology throughout, a laptop in every room, even the refrigerator was hidden behind cabinet doors. His wife, Luba, said that because the kitchen and living room are one, you want to be able to hide everything - there was no clutter and everything was very clean. After this, we went to Marcus's office. It was nice but small by our standards - about 1,000 square feet - but 11-15 people work in it. Two rooms were about 250 square feet each with five employees in each. The desks were pushed together with flat screens on each of them. No one but the owner had their own office and even his has two desks in it. Working so closely actually seemed to act as a positive. They have a culture that is fun and team oriented I did not see any corporate politics and each one respected the other. About half spoke English very well and the other half ranged from speaking fairly well to very limited. Later, I was able to go to a U.S. Chamber of Commerce "Business after Hours" with Marina Vigdorchick of Transolutions. She had worked for the U.S. Embassy for 12 years and knew several people there. To my surprise, it was very similar to a Green Bay after hours events. Many people networking over some appetizers and drinks. It was held at a Thai restaurant and went from 7-9 p.m. They do business much later than we do in America. Because of this, they do not start work until 9 or 10' a.m. A normal work week is 9 a.m.-6 p.m. Monday-Thursday and 9 a.m.-5 p.m. Friday. I met a gentleman from the U.S. whose business was document storage. I also met the top executives. from the Sheraton Hotel and other hotels. U.S. government officials were there, and I even met a woman who was managing a Private Equity Group. Her headquarters were in New York and she said they were on their second fund worth about $150 million, and it was all western money. She said the activity was very strong. Two people told me that Moscow/Russia was in an "economic revolution" and businesses were making a lot of money, and there was a lot of growth. The 20-30 large cranes I saw throughout Moscow documented that. Russians also are more formal in business dress than Americans. As we go more business casual, they are more likely to at least wear a tie if not a full suit for a business meeting etc. Tuesday, May 23 Getting down to business: Tuesday was the day that Transolution's Russian staff met all the presidents and VPs from Chicago-based Amsted Rail. The meeting was held at the Moscow Country Club. We held introduction meetings all morning. For lunch, we enjoyed a large three-course meal. We had a choice between pork or fish. I was going to order fish when they brought one out for someone else. The cooked fish came with its tail, head, bones - everything. I then decided to have the pork. Our meetings wrapped up at 4 p.m. Everyone was invited to play nine holes of golf, but only the Americans played. The Russian staff had no interest even though the cost was covered. I don't think the Russians have embraced the game of golf. This is the only I8-hole championship golf course in Russia. We had dinner reservations at 10 that evening We finished dinner about 1 a.m., and the restaurant still had patrons in it. The restaurant is famous for Russian dishes such as beef stroganoff and rolls, with veal or cabbage inside. Herring is also popular. Chilled vodka was served with dinner, and if you try to empty the glass before it warms, the waitstaff is trained to keep your glass full, and they are good at filling it without you noticing. I guess it is because there are many toasts throughout dinner. Menus are in both English and Russian, which is nice. Wednesday, May 24 Slow day: The only business item on Wednesday was a reception at a hotel to introduce the Amsted team to other local business owners or high level executives such as the president of Chevron for Russia, attorneys, commercial lenders, and the president of the US. Chamber of Commerce, who I talked to at length and who invited me to meet with him on Friday to learn more about the economic landscape of Moscow. Again, the event was formal with everyone wearing at least a tie. There was the typical networking as we would know it, and then three toasts were given thanking people for coming and introducing the Amsted team. etc. People seem cordial here and want to learn more about you and where you come from. Thursday, May 25 Off to work - and a tour: I went to the office about 9 a.m. when most employees stroll in. Again, I saw how they work together on projects and ask each other advice about what they are doing. I think much of this is due to the close proximity. They all seem to work well together and I could see the respect they had for Marcus, my client. After catching up on my e-mails, I had the driver for the company take me to Red Square. It is absolutely beautiful. I actually hired a personal tour guide who was from Britain and spoke both English and Russian. It was interesting he could take me to areas that the general public was not allowed. He took me to see Lenin's body and he told me they spend $10 million every year to keep his body looking good. He has it better dead than most do while living. Friday, May 26 Future dealings? Friday was a big day because my business dealings with my client were mostly wrapped up, and I could do some things on my own, such as go and meet Andrew Somers, the U.S. Chamber of Commerce president for Russia. I was able to meet with him one-on-one for an hour and 20 minutes. We talked about my client, but then it turned to what my company does and how we worked with Transolutions to sell their business. He was interested in our model because he had 800 members, and according to him, no one specialized in the niche we did. I found it hard to believe there was no one who worked with small-to medium-sized companies to help business owners buy or sell companies. He said that activity in Russia, especially in Moscow and St. Petersburg, was at a breakneck pace. He had seen strong growth in his membership and did not see any signs of it slowing. In fact, he had just made the decision to stay in Russia for another three-year term. He offered to do several things to help us break into this market. He gave me several documents detailing past and present economic conditions. The biggest wild card seems not to be the economic future but the political future. And that is why we are lucky to live and work in the United States. In Russia, it could all be taken from you in one day. He said it's not likely, but you just don't know. Russia and my company? It's to soon to tell, but there are opportunities. I mentioned earlier that the traffic is crazy, but I had a hard time understanding why it is illegal to make a left hand turn in Moscow, but it is legal to make a U-turn into on coming traffic. Another observation is that Moscow is one of the most expensive cities in the world. We picked-up one of the buyers from Amsted Rail after he checked out of his hotel to take him to the office before he left for the airport. He was looking at his bill trying to figure what it actually cost him per night. He paid about $800 a night. Saturday, May 27 Time for shopping: I started out hitting a weekend shopping area. At little kiosks, you could buy such things as jewelry, old Russian coins, dolls, war "stuff," and even American-soldier clothing. My client had a meeting with a company it may partner with from the Ukraine, and one thing that stood out to me in this meeting was that he brought a gift to the meeting, a practice which is very common in Russia. It was what appeared to be a very thick book, but when you opened it up it had a very expensive bottle of (what else?) Vodka! My client said they have probably three different levels of gifts depending on how important the person or meeting is. Sunday, May 28 Going home: I woke up and went to the airport. What I thought was a lack of security coming in was made up for on the way out. My bags were searched and I had to show my passport four or five times. When I landed in New York, it was a good feeling. All in all, it was a great trip, I learned a lot about how Russians do business and their culture. Marcus, my client, was a great host. Amsted Rail, the buyer, also did a great job. They brought eight people to Moscow to make sure the Transolutions employees understood who they were and what they were all about. I think the initial transition went well and I feel good that Marcus and his team joined a class act like Amsted. They truly did what they said they were going to do, and that is refreshing in today's fast paced corporate world. It was an unforgettable experience and I probably will go back for either business or pleasure, but there is still no better feeling than getting through that last check point to be officially back in the United States of America. What a great country to live in! |
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