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Specific of lobbying activity in the Russian Federation

• The importance of geopolitical aims for business decision making within the state
• The crucial formal and informal influence of the state leaders
• The key is the executive power influence. Lobbying in legislative power bodies is of minor importance
• The power tandem continues the process of responsibilities redistribution. Under initial allocation foreign policy and manpower went to Dmitry Medvedev while economic and energy policies went to Vladimir Putin. Mutual non-conflict expansion of the duumvirs into the area of each other responsibility occurs currently
• The rise of federal government influence
• Resource and ideological competition of groups exists inside the government. The phenomenon of strong Deputy Prime Ministers ( Sechin , Sobyanin , Kudrin , Shuvalov , Zubkov )
• The rise of law enforcement structures leads to a rise of business risks
• Judicial and juridical corporations as a potential resource of Medvedev support
• Party bureaucracy, in the first place in United Russia party, is slightly strengthened. «Iron triangles» (officials, business and deputies) emerge in concrete sectors
• The rise of Russian Orthodox Church influence
• Situation in regions is changing. Political parties influence is rising because now they can nominate candidates for governor position. Decline of the institution President’s authorized representatives influence

Geopolitical lobbying of Russia

5 directions:

• Military and political security (stop NATO expansion to the East, cancellation of the American Missile Defense System installation in Eastern Europe, new architecture of common European security, creation of collective rapid reaction force under The Collective Security Treaty Organization)
• Energy diversity (Nord Stream and South Stream, reorientation of gas delivery to Asian markets, creation of liquefied gas industry, Russia’s proposals for the Energy Agreement)
• Buy up of assets and technologies abroad (Loyalty and help during autumn 2009 was provided for big business to no small degree because they spent money on buying assets abroad). Big deal with the EU – resources in exchange for technologies.
• The post-Soviet space restructuring (Eurasian « matryoshka » - customs union with Belarus and Kazakhstan, joint WTO entry). Cancellation of the definite stake on concrete post-Soviet states politicians practice. Transition to the regime of support tender (Ukraine, Moldova)
• Positive abroad image of the Russian Federation.

Mechanisms:

• Suggestion of positive initiatives (security, energy)
• Creation of tactical state and corporate alliances
• Personal contacts between Russian leaders and leaders of allied states
• Involvement of retired politicians
• Work with the expert society

Lobbyi ng in Russia

Strategic state goals influencing decision making process:

• Saving the stability of political system. Tandem decision making as a result of pressure groups struggle
• Saving the social stability. Refusal of policy turnarounds that can provoke social protests
• Economy modernization policy
• Gradual refusal of the chaebol model – stack on state corporations as an engines of development
• Focus on arrangement with private business, reduction of state intervention

Situational factor – the rise of optimistic assessments towards crisis.

The main subject of lobbying struggle:

• Not for government support but for keeping outlets and government order
• For changing game rules in concrete markets
• For promoting protectionist policy (come into conflict with WTO entry)

GR activity specific:

• Lack of legislative regulations of lobbyism
• Overrated corruption component
• Possibility of proactive influence on executive power decisions through participation in creating economic sectors strategies, target programs etc.

New technologies:

• Participation in advisory bodies under the auspices of ministries and agencies
• Industry associations
• Work with the expert society
• Forming broad coalitions of support
• Grass roots – power attends to the Russian people position more and more
• Media campaigns efficiency is rising
• Oil industry
• Metallurgy
• Banks
• Insurance
• Car industry

Typical mistakes of foreign companies going into lobbying in the Russian market:

• Lack of GR sense of direction (analysis of aims that are on the agenda of the concrete agency or official, analysis of decision making criteria, potential allies and conflicts).
• Placing monitoring in the centre of attention.
• Scarcity of attention to reputation risks and risks from law enforcement structures.
• In case of working with Russian partner - giving him total control over GR functions (the TNK-BP situation).
• Kremlin relations
• Glossy booklets
• Grand strategy making