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| Executive Travel: Moscow |
Traveling Wisely
12/01/2005
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American expatriates, émigrés from the former Soviet Union and Hollywood
producers have grown rich selling movie tickets and books based on tall tales
about the Russian mafia and the crony capitalism that emerged as communism fell.
While Russian crime statistics are unreliable—even for the capital city of Moscow—security
consultants say the current landscape bears little resemblance to the violent
chaos in these Western depictions.
Experts at security firm Kroll
International say Russians are eager to establish amicable relationships with
Western partners—Americans in particular. For them, successful partnerships are
a sign of having arrived on the international business scene. Consequently, the
chances of running up against extortionists and criminal syndicates have fallen
off dramatically since foreign investors began flooding into Russia. Today,
protecting yourself in Russia means choosing associates who treat partners
well—by paying suppliers on time, for example—and who can deal with minor
bureaucratic corruption.
“Physical security is not the issue it was 10 years
ago,” notes Chris Morgan-Jones, Kroll’s managing director of Business
Intelligence Practice. Present-day Russia, he says, looks more like a developed
market. “There’s much less overt criminal influence over the economy.”
Legitimate commercial activity has relegated criminals to more traditional
lines such as prostitution, drug smuggling and gun running. They shy away from
foreigners, especially the businesspeople, because the Russian political
establishment has put a premium on stable ties with Western businesses.
“Russians have gotten wise to the fact that confrontation isn’t the most
profitable course of action,” Morgan-Jones adds.
In addition to security
specialists, Morgan-Jones’ staff includes lawyers, accountants and equity
analysts. “In this day and age, you need people who understand business as well
as security,” he says. They spend most of their time investigating prospective
business partners for Westerners who seek to enter the Russian market. Former
journalists and diplomats on Kroll’s team search public records to spot red
flags such as credit problems and legal disputes. They often augment their
searches by interviewing suppliers, regulators, employees and even competitors.
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