Text 3.Western-Russian Cooperation

One of the best examples of actual current Russian cooperation with the west countries, besides the North European GAS Pipeline that is the part of the EU-Russia dialogue, is that of ConocoPhilips and LUKOIL. ConocoPhilips is the third largest US oil and gas company that invested more than $7 billion into Russia in the past year and a half through it partnership with LUKOIL, Gasprom and Rosneft, and hopes to own some 20 percent of LUKOIL by the end of 2008.

Kevin Meyers, president of ConocoPhilips’ exploration and production segment and one of the board directors of LUKOIL revealed to the congress the tricks to doing successful business in Russia by explaining his current business model. The basic model consists of partnering with strong Russian companies, structuring to align interests and sharing knowledge and best practices. “We rely on three P’s”, noted K.Meyers. “Be patient, be polite, be persistent, and recognize that you are in Russia. I have special respect for Russia because it has the long history of successful development of its oil and gas fields, and because it is a highly developed country with a rich history and cultural traditions.” K.Meyers, however did not fail to mention that one of the tricks that lead ConocoPhilips to success is working closely with the Russian government.

Smaller companies, however, are reluctant to talk politics. They prefer not to venture into the Russian expanse alone, but either form partnership with local Russian firms or with the larger companies already established in Russia. “Big company investment brings medium companies with the wave, as there is increasing demand for our products”, says Thomas Teichert, the sales manager at Kachele Vibrastop, a German company that has operated on the Russian market on its own for just two years, selling WallR stators and rotors for progressive cavity pumps, downhole pumps, drilling motors and high pressure surface pumps.

The most foreign investors entering the Russian market believe that the Russian political climate is changing and becoming more positive. But there are other problems, including communication. The companies need bilingual personnel. Вот несколько мнений (цитат) представителей ин компаний.

“The biggest challenge is doing technical talk with people who don’t speak the language”, expounded Antony Armstrong of Anson Ltd., a leading manufacturer of exploration, drilling, stimulation and production equipment. “One way to overcome this challenge is to start offices in Russia with the Russian staff, which can be still rather difficult,” he added.

Francesco Alba, the sales and marketing director of Cannon’s Bono Energia, the main Italian producer of thermal fluid heaters and industrial boilers (жидкостные системы обогрева и промышленные котлы) has two reasons to be in Russia. “As the price of oil for barrel grows, companies have more money to spend, driving up demand for our products. Also, Russia is generally richer with time, and people are learning English”

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