This presentation was given by Eugene Pyatenko on June 18th, 2012 as a part of the Business Law & Order Event Series.

1. Contract: The writing which contains the Agreement of the
Parties, with the terms and conditions of their obligations to do, or
not do a particular thing . . .
The “Culture” of the Deal
Presented by
Eugene W. Pyatenko
Evans & Luptak, P.L.C.

2.  Successful consummation of any venture – business or otherwise in
today’s global community (with its varied socio-economic issues)
requires a competitive and cultural understanding of, and integration
with the chosen market or opportunity.
 Effectiveness of the process (and resultant sustained profitability)
will be directly related to an understanding of “local” and/or
market culture
 Bridging language barriers is just a beginning (this does not mean
Non-English; it may also be “industry-speak”).
 Each market and opportunity also contains its own cultural nuances
and a spectrum of business concepts. Building a model which is
mutually satisfactory to all interested parties is critical to success
of any venture.

3.  Every aspect of a project will have a cultural overtone:
Licensing
Scope
Motivations of the parties
Structure
Local employment
Regulatory environment
The principles are universal in their application. In order to navigate
the gauntlet of regulation, politics, competition and bureaucracy,
cultural fluency is essential.
 In international ventures, a great “interpreter” may only be the
the beginning. The Former Soviet Union (“FSU”) presents a prime
example . . . “Westerners” ofter reference the fifteen (15) unique
Republics/State of the FSU and each of their varied autonomous
regions as “Russia” – often a project ending mistake.

5. Republics of the Soviet Union Independent nations
1. Armenian SSR Armenia
2. Azerbaijan SSR Azerbaijan
3. Byelorussian SSR Belarus
4. Estonian SSR Estonia
5. Georgian SSR Georgia
6. Kazakh SSR Kazakhstan
7. Kyrgyz SSR Kyrgyzstan
8. Latvian SSR Latvia
9. Lithuanian SSR Lithuania
10. Moldavian SSR Moldova
11. Russian SFSR Russia
12. Tajik SSR Tajikistan
13. Turkmen SSR Turkmenistan
14. Ukrainian SSR Ukraine
15. Uzbek SSR Uzbekistan

6. Before the fall of the FSU (early 1990’s) the “USSR” covered an area approximately twice
The size of the United States and was filled with a diverse assemblage of people belonging
To a variety of different cultures and who practiced almost every known religion on earth
While speaking a myriad of languages, including:
Armenia: Armenian/Russian
oKurdish minority
Azerbaijan: Russian with script changed from Cyrillic to Latin
oKurdish minority
Belarus: Russian / Belorussian
Chechnya: (A post soviet independent nation): Russian / Chechen
Georgia: Transliterations from Georgian script, instead of Russian Cyrillic
oAbkhazia. Autonomous republic, now de facto independent
oKurdish Minority
oSouth Ossetia, autonomous area, unsettled status
Kazakhstan: Russian / Kazakh
oKazakh dialect-speaking minority of Karakalpakia (Uzbekistan)
Kyrgyzstan: Russian / Kyrgyz
Moldova: Script changed from Cyrillic to Latin
oGagauz minority; Russian / Romanian / Gagauz
oUkrainian minority in Transdniestr region

7.  Russia: Russian . . .plus
o Abaza – in Karachay-Cherkessia
o Adygea – autonomous republic in the Caucasus
o Adyge – (Circasian)
o Altay – autonomous republic; formerly, Gorno Altay
o Avar – in Dagestan republic
o Balkar – (Karachay-Balkar, Turkic language,) in Kabardino-Balkaria and Transliteration scheme
o Bashkir – in Bashkortostan autonomous republic and Chelyabinsk region
o Buryatia – Autonomous republic in south-central Siberia and Transliteration scheme
o Chechnya – listed as an independent nation
o Cherkess – (Circasian) in Karachay-Cherkessia
o Chukchi – Minority of easternmost Siberia
o Chuvashia – Autonomous republic and Transliteration scheme
o Circasians – Adygea, Cherkess in Karachay-Cherkessia and Kabardian in Kabardino-Balkaria
o Dagestan – autonomous republic in northern Caucasus. Avar, Hunzib & Lezgin languages
o Erzya language in Mordovia Republic
o Eskimos in Siberia – Asiatic Eskimo or Siberian Yupik language
o Estonian minority in Petserimaa region
o Evenki minority in Siberia
o Finnish in Ingria, and Karelia
o Hunzib – north-east Caucasian language in Dagestan

8. o Ingria – Izhorian or Ingrian; Votic; Ingrian Finns
o Ingushetia – Republic in the Northern Caucasus and Transliteration scheme
o Kabardino-Balkaria. Republic in the Northern Caucasus; Kabardian (Circasian; with Transliteration scheme) and Balkar
o Kaliningrad region – old German names + Lithuanian minority
o Kalmykia – Autonomous republic only buddhist nation in Europe and Transliteration scheme
o Karachay-Balkar – two dialects of same Turkic language spoken in Karachay-Cherkessia and Kabardino-Balkaria
o Karachay-Cherkessia – Republic in the Northern Caucasus – Several languages and Transliteration scheme for Karachay
o Karelia – Autonomous Republic – Russian-Finnish-Karelian
o Khakassia – Autonomous republic in Siberia and Transliteration scheme
o Khanti – Ugric people of Siberia
o Komi Republic (Zyryan) and Komi-Permyak and Transliteration scheme
o Koryak in Kamtchatka peninsula, Siberia
o Lezgin in Dagestan republic
o Lithuanian in Kaliningrad region
o Mansi – Ugrian language of Siberia
o Mari-El republic – Russian-Mari
o Moksha language in Mordovia Republic
o Mordovia Republic – Mordvin languages Erzya and Moksha
o Nenets – Uralic people living in the northern frontier of Europe and Sberia

9. o Nganasan – Uralic-Samoyedic people of Siberia
o Noghay in Karachay-Cherkessia and Transliteration scheme
o North Ossetia – autonomous republic of the Caucasus – Ossetian and Ingush
o Ossetian in North Ossetia and Transliteration scheme
o Sami (lappish) minority
o Selkup – Uralic people of Siberia
o Tatarstan – Republic within Russia – Russian –Tatar
o Tofalar – Turkic language of the Sayan mountains of Siberia
o Tuva – Autonomous republic in south Siberia and Transliteration scheme
o Udmurtia Republic – Russian-Udmurt
o Ukrainian in Kuban and Rostov regions
o Uralic nations – multiple applications of dialects
o Vepse – Finnic language in Karelia and St. Petersburg region
o Votic – Language close to Estonian in Ingria
o Yakutia Republic (Sakha). Russian-Yakut with multiple dialects

10. Russian minorities abroad:
o in Estonia
o in Alaska
Tajikistan – Russian / Tajik and Transliteration scheme
Turkmenistan – Russian / Turkmen (with Transliteration/Latinisation scheme)
o Turkmen minority in Uzbekistan
o Kurdish minority
Ukraine – Russian / Ukrainian and Transliteration scheme
o Crimea – Russian / Ukrainian / Crimean Tatar
o German names for old settlements in southern Ukaine
o Hungarian minority in Transcarpathia
o Karaim – Jewish minority with a Turkic language
o Polish minority
o Romanian minority in northern Bukovian – Russian/Ukrainian/Romanian
o Ruthenia region – Rusyn / Hutsul
o Ukrainian abroad in Moldavia (Transnistria region)
o Ukrainian abroad in Poland
o Ukrainian abroad in Russia (Kuban and Rostov regions)
o Ukrainian abroad in Slovakia
Uzbekistan – Russian / Uzbek and Transliteration scheme
oKarakalpak minority – Russian / Uzbek / Karakalpak (Kazakh dialect)
oTurkmen minority
Yiddish placenames in several states

11.  In all, in excess of 124 unique regional languages and dialects, each with its own
cultural underpinnings and concepts of “business” – a characteristic which continues today.
 Understanding and Implementation takes patience and time
 The need to “understand” historical and cultural underpinnings is essential to successful
navigation of the particular market. Transplanted business models often fail
 Unlike many “western” style transactions which focus on the implementation phases
of a project (documentation, terms and conditions of the relationship, etc.), Global success generally
requires a period of “courtship: with a focus on the learning process of cultural nuances of the
parties, the market and “getting to know your partner(s). Friendship, Trust, and then the Deal
and the willingness to take the time to listen, learn and apply are the keys to success

12. Anatomy of a Deal – “Western” Model
The Deal
Friendship Trust

13. Anatomy of a Deal – “Socio-Cultural” Model
(Non-Western)
The Deal
Trust
Friendship