Doing business in Russia? First pick the right roof
In Russia, whoever you are, you need a patron, someone who will promote and look after your interests and keep the bureaucracy and the bad guys off your back, in return for loyalty, business favours, partnership profits, etc.. Any foreign company seeking to do business in Russia needs such a patron, whom Russians call the ‘roof’, or krisha. It’s usually legitimate, and the financial arrangements can take many forms. McDonald’s has the Moscow City Corporation as their roof. Aer Rianta (the Irish duty free retail operator) has Aeroflot.
An article on The Spectator business blog was my first introduction to this concept, which I confirmed with my brother, who’s done several stints in Russia. He added that the need for a roof is less important for major companies these days, but it’s probably still a good idea for smaller players. Unfortunately, a roof can also be a local gang demanding payoffs. Make sure you pick the right roof.
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May 21st, 2008 at 9:10 am
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