Investing in Russia and finding Russian business partners has always been tricky. It takes deep thought and a lot of evidence and math to decide whether a business deal is worth the shot given the many risks involved in international deals. Will the company do better by partnering up or doing business with a Russian counterparty?  Every single detail must be considered in order to avoid business fraud, especially when the deal involves companies and individuals from high-risk countries for fraud such as Russia.

The tough economic conditions that the pandemic measures have left many businesses with limited resources for investigation and due diligence. However, it is under these exact circumstances that reliable evidence is most needed. Business owners are starting to think more about innovation, growth and survival, but due diligence and risk management cannot be left behind. A due diligence investigation in Russia can often seem expensive and hard work, but skipping it leaves companies particularly vulnerable to fraud and scam, with many owners and managers unaware of the risks their businesses face.

One of the biggest problems is that there are still companies out there that lack of a proper protocol to verify potential business partners. Russian private investigators say that with the global turmoil that the Covid-19 has caused, thousands of companies have had to close business, sell, partner up and reinvent themselves. Never had the entire world’s business scenario changed so much, in so little time. And while everyone needs to catch up and recover, the first to seize the opportunity in the the mess are scammers!

Fortunately, more companies and business people are getting serious about private investigation tools like due diligence and employment background checks in Russia to reduce the risks. Conducting a thorough private investigation is not to be considered an emergency measure used in times of crisis, it is a critical step for new deals.

Savvy investors and business owners have learned that anticipating where a business may experience problems is key to risk mitigation, and in order to be one step ahead they need relevant and timely information. Having the right information and evidence about a potential business partner in Russia or the Ukraine helps an organization or investor seize opportunities and protect their assets, increasing the odds for success.

How to get started with Due Diligence?

In a first stage, it is important to verify the individuals involved in the deal, check how their own businesses are doing, verify if there are any past incidents that may affect the deal or that may suggest that this is not the right person to start a business with.  Company ownership and registration records need to be verified with Russian authorities, as well as their legal standing in terms of criminal and court record cases that may affect the business deal. Partnerships and business deals are not only based on trust and a contract, but they should also be based on facts and evidence in order to make a wise decision.

Companies who run into issues with a partner, more often than not, had warning signs that provided clues to these developing problems.  According to due diligence experts from Russia PI, many of the problems encountered between partners were foreseeable before committing to the deal, but the lack of due diligence kept the parties from finding it out on time. In a bad business deal, issues will arise once the deal is closed and the money is in. The time and effort invested will be lost.  Proper due diligence is everything.

Get professional help to conduct due diligence by working with a reputable investigation firm. Legitimate and reputable businesses will appreciate the due diligence process as they can also benefit from it. Contact us if you are looking into an investment or business opportunity in Russia, we´ll help you find the evidence you need!

C. Wright
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