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Engaging with the State: How Foreign Companies Can Build an Effective GR Strategy in Russia

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Eduard Voytenko, CEO and Managing Partner of Baikal Lobridge, spoke with World Geostrategic Insights about the evolution of Government Relations and lobbying in Russia and across Eurasia. He noted that GR has grown far beyond communication with public authorities. Today, it is a strategic business function that helps companies manage regulatory risks, support business development, and adapt to a changing institutional environment.

In the past, GR was often viewed as a way to respond to individual regulatory initiatives. Today, it is an ongoing process of understanding how government priorities are shaped and how those priorities ultimately become the rules that businesses operate under.

GR Is Becoming a Strategic Business Function

Over the past year, Government Relations has become an increasingly important part of strategic management for companies operating in Russia. GR helps companies not only build effective relationships with government but also protect investments, manage regulatory risks, and adapt to changing rules.

Demand for GR professionals continues to grow alongside the expanding role of the state in the economy. Government is taking a more active role in shaping industries and setting development priorities, while increasingly relying on expertise from the business community. In this environment, lobbyists and GR specialists create value by bringing practical solutions to policymakers rather than simply raising concerns.

What Modern GR Looks Like

Modern Government Relations is built around two closely connected areas: analytics and communications.

The analytical function includes monitoring legislation and government initiatives, assessing regulatory, political and administrative risks, and developing response scenarios.

The communications function focuses on engagement through institutional platforms, including industry associations, expert councils, working groups under government bodies, and other established channels for dialogue between business and the state. Much of the industry's policy agenda is shaped through these platforms.

Russia's Distinct Model

Government Relations and lobbying in Russia developed alongside the country's transition to a market economy and were influenced by international practice. As a result, many of the approaches used by Russian GR professionals are familiar to European and American businesses.

At the same time, Russia's system has its own distinctive features. While parliamentary lobbying plays a major role in many Western countries, decision-making in Russia is driven primarily by the executive branch. That is why companies need to build consistent relationships with relevant ministries, federal services, and government agencies throughout every stage of the policymaking process.

Government Relations and lobbying in Russia are also more closely tied to national policy priorities than in many Western jurisdictions. Companies are expected not only to advance their own interests but also to demonstrate how their proposals support the country's broader economic and public policy objectives.

A Well-Established Institution Without a Separate Law

Although Russia does not have a dedicated lobbying law, Government Relations and lobbying are already well-established in practice.

Business-government interaction is governed by a broad legal framework covering legislative procedures, business associations, public consultations, anti-corruption compliance, access to information, and engagement with public authorities.

At the same time, the absence of dedicated legislation continues to influence how the profession is perceived and how many companies organize their GR activities. For example, separate GR budgets are still far from universal, even though the function itself has long become part of standard corporate practice.

Ethics as the Foundation

Ethics is the cornerstone of Government Relations. It is what distinguishes legitimate representation of business interests from corruption or informal influence.

GR professionals are expected to work in accordance with the principles of legality, integrity, professional responsibility, and respect for public institutions.

Transparency is equally important. While companies cannot always disclose every aspect of their business strategy, engagement with government should remain clear and institutional. The more transparent and professional this dialogue is, the greater the trust in Government Relations among government, business, and society.

Artificial Intelligence in Government Relations

Artificial intelligence is already being used in Government Relations to monitor legislation, process information, and support analytical work. However, given the complexity of the regulatory environment and the high cost of mistakes, strategic decisions still depend on human expertise.

AI is making GR teams more efficient by automating regulatory monitoring, analysing large volumes of information, and identifying potential risks more quickly. At the same time, interpreting policy developments and making strategic decisions still requires a deep understanding of the institutional environment and the ability to balance the interests of different stakeholders. That is why demand continues to grow for professionals who combine legal knowledge, analytical expertise, and strong communication skills.

Foreign Business and Government Dialogue

Despite geopolitical tensions, dialogue between international businesses and the Russian authorities continues. Many foreign companies remain active in the Russian market, continue to invest, and maintain working relationships with regulators. The government itself has put mechanisms in place to keep these channels of communication open.

For international businesses, the key message is straightforward: do not step away from the dialogue.

Government Relations remains one of the most important tools for managing uncertainty. Experienced GR professionals help companies protect their investments while guiding them through Russia's complex system of public administration.

In times of uncertainty, it may be tempting to adopt a wait-and-see approach. In practice, however, open dialogue, a transparent explanation of a company's position, and a willingness to discuss difficult issues help reduce risks and reach mutually acceptable solutions.

Read the full interview on the World Geostrategic Insights website.
2026-07-13 16:09