Peter B. Necarsulmer
Chairman & CEO, The PBN Company
Reprint from an Article in the American Chamber of Commerce Magazine

I'm often asked what's different about lobbying in the West and in Russia, having been a professional lobbyist for more than 20 years both in the United States and in Moscow. My answer surprises most people because it is my experience that there is much more in common than not.

Lobbying in the West is highly regulated and monitored. In Russia, there is no formal system, few applicable laws and no regulation. But the actual process of lobbying is quite similar, especially when it comes to the influence of money.

In both worlds, money plays an inordinate role in lobbying and elections. Jesse Unruh, the famous political leader from California and legend in American politics put it this way more than 30 years ago: "Money is the mother's milk of politics."

This is true in Moscow, just like it is in Washington DC, London or Paris. The distinction is that in the West the role of money is transparent and controlled while in Russia the influence of money is surreptitious and unregulated despite its pervasiveness.

But the use (and misuse) of money to mold government and legislative decisions is not the only way to undertake effective lobbying in Russia.

The professional approach to what's called lobbyism in the Russian lexicon differs greatly from the way the general public and news media understand this term and contrasts with common practice in Russia. Moreover, for those organizations proscribed from spending money in the political process by home country laws and/or internal policies, this alternative method is the only viable option.

Lobbying advances and defends the interests of companies, industries, consumers, political parties, professions and other groups. Legitimate political contributions are part of the profession – but they are only one element. The heart and soul is much more complex and much more strategic.

In any culture, and in Russia especially, professional lobbying starts with establishing relationships and trust between political decision makers and advocates. Fostering good relationships ensures access, communication, mutual understanding and, ideally, the ability to work out differences through compromise. A solid government relationship also means knowing when you and your counterpart must part ways on a particular issue while remaining friendly adversaries. Burning bridges is antithetical to the practice of professional lobbying.

But money and relationships still require the art and science of communications to realize their potential in the process of passing, blocking or amending a governmental decision. Professional lobbying in Russia, as in the West, depends on the power of persuasive arguments. The party that can prove most convincingly and forcefully that their special interest is also in the nation's best interest usually wins.

Strategic communications in lobbying employs many tools. There's direct communications with government officials -- one-on-one, face-to-face meetings always have the most impact. Letters, white papers, briefing packs and emails are also useful as long as these are short, direct and based on compelling and relevant facts. The trick is making sure your materials get into the hands of your target of influence, be it a decision maker or his/her key advisers.

Professional lobbying, especially on contentious issues, involves more even than money, relationships, argumentation and arm twisting. It also requires organizing broad-based alliances for a common policy objective. Forming coalitions and activating credible grassroots support will overcome the influence of money almost any day, even in Russia. Add to that extensive media coverage and public scrutiny and you have the formula for a winning lobbying campaign.

These are the key elements of effective lobbying in Russia. Forging governmental relationships of trust and mutual respect based on policy substance and personal integrity. Matching your business's special interest with Russia's national interest. Developing and delivering persuasive, fact-based arguments. Building coalitions. And, gaining attention for your position in the news media and other public forums. This strategy works in Russia, just like it does in the West.

For foreign companies, applying this approach is particularly important. As "foreigners,” multinationals need to work even harder to prove that their business interest is in fact aligned with Russia's national interest. The best way to demonstrate this is to make sure that Russian businesses, consumers and politicians not only agree with but also publicly embrace your policy objectives.

Lobbying in Russia is at an early stage reflecting the immaturity of the country's governmental decision making process. With notable exceptions, such as AmCham, the Russian Chamber of Commerce and the Union of Industrialists and Entrpreneurs, organized interest groups and associations are only now forming. Anti-corruption and conflict of interest laws are rarely enforced while lobbying and "sunshine in government” regulations are barely on the drafting table.

That being said, lobbying of government, regulatory and legislative officials is a fact of business life here that Russian and international executives need to come to grips with, either on their own ethical and professional terms, or terms defined and too often practiced by others.

Email Peter: peter.necarsulmer@pbnco.com