First-timers also follow a similar pattern, according to veterans like Tacoma's Rusty Williams. There is the initial stage of excitement and sense of comradeship with former enemies. They are treated like royalty, complete with long-winded vodka toasts to international friendship. But once both sides start trying to complete deals, plans often fall apart. Business in Russia is not for newcomers.
Deals can fall apart for any reason imaginable with both sides at fault.
Often neither side understands the other or they clash over basic business assumptions and understandings. Many deals fail because the Russian partner may have no money. A key factor is that American businesses underestimate the cost of projects in the region. There is enough success, and the potential in natural resources and future markets is so great, that many still believe a boom is only a matter of time. Others have become enamored of the Russian people, who genuinely like Americans.