Starting, Developing and Running a Business in the FSU

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I heard shake down was 20 to 30%.
Guess it depends on where and who you are dealing with.
One I know is 100 gr a day, regardless of the take.

Its literally like the old NYC and Chicago etc etc shakedown insurance "protection" rackets - you pay "insurance" - or else -  something you do not want to happen then happens to the business or worse you!

If IKEA can have problems anyone can and often does.

[NS1]

I heard shake down was 20 to 30%.
Guess it depends on where and who you are dealing with.
One I know is 100 gr a day, regardless of the take.

Its literally like the old NYC and Chicago etc etc shakedown insurance "protection" rackets - you pay "insurance" - or else -  something you do not want to happen then happens to the business or worse you!

If IKEA can have problems anyone can and often does.

Yes thats pretty much what I was told, when there and asking. If it is real small and not big money then maybe you can fly under radar.
But almost anything that does well will be noticed and you will have a visit.

Also if you do well don't be to flashy only speeds up the process.

[cufflinks]

I heard shake down was 20 to 30%.
Guess it depends on where and who you are dealing with.
One I know is 100 gr a day, regardless of the take.

Its literally like the old NYC and Chicago etc etc shakedown insurance "protection" rackets - you pay "insurance" - or else -  something you do not want to happen then happens to the business or worse you!

If IKEA can have problems anyone can and often does.

Yes thats pretty much what I was told, when there and asking. If it is real small and not big money then maybe you can fly under radar.
But almost anything that does well will be noticed and you will have a visit.

Also if you do well don't be to flashy only speeds up the process.

My personal experience is that whatever is written into a contract and the more effort put into a dual English Russian contract with detailed dual translation and the more reviews thereof the more likely the contract will be ignored and broken with complete bold faced lies I hate to say on the RU side ...  however we are quoting some business now that has been informal for several years where a list is sent (formal name incoterms "EXW" or exworks") the list is priced and bid - the equipment needed over there is purchased in advance and aggregated here in the USA and shipped a container at a time.  Nothing gets purchased or shipped that is NOT paid for in advance and responsibility for the goods passes to the Buyer at time of manufacture and prepaid when ordered "exworks" versus FOB CFR DAP or other incoterms:

http://en.wikipedia.org/wiki/Incoterms 

See great chart of Buyers and Sellers responsibilities meaning when they buyer pays in the process and then owns the goods being purchased, manufactured aggregated for export and shipped.

There are a lot of RU commodities fantasy deals floating around the internet and on Alibaba and Tradekey - I have helped a successful ex/im trader with a few and NONE have come to fruition until he stumbeled into these accidental EXW deals that are now growing and becoming more formalized.  The real RU business folks know this and never ask for "terms".

If not EXW terms I now walk away and black list the entire chain of people that might be involved... one extremely reputable firm I deal with with more ISO and Nuclear Power Plant manufacturing certifications than even I knew existed and who's wife is an experienced international business attorney to Global 500 companies has recently told me that anything being shipped overseas to anywhere must be paid for in advance because with margins slimmer than ever one major shipment lost or stolen due to a fraudulent buyer can be a company killing event.

Fraudulent exporters and buyers are running rampant on Alibaba Tradekey and the internet in General - I probably receive 50 "Order" emails a month requesting I sell some list of tech gear for overeseas shipment that I never advertised with a strange gmail account and that always ask if I will accept credit cards and ship overseas. Now if no full address phone Name Title email and skype and a Real Building at the address given on Google Earth with a real street view to confirm the Business - they get clicked as spam - only place I have had any luck networking with real people has been on LinkedIn and very few real Russian or Chinese Businessmen on LinkedIn that do not already have offices here in the USA.

Just my personal real experience over the past decade or so.