By Tom Blackwell, Senior Vice President and Managing Director, Moscow, The PBN Company

There are always risks involved in speaking to the media, and in times of crisis these risks may appear magnified. But the fact is that it is even riskier to try to shut out the media, as there are great opportunities arising from constructive engagement.

In common with investors and analysts, the media have revised their expectations in light of the ongoing uncertainty and rapid changes in the market. In a sense, journalists are now less demanding of companies – they know not to expect hard numbers or concrete forecasts – but they do have a wealth of material drawn from the global financial situation and are looking for examples and evidence to support their market assessments.

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By Tom Blackwell, Senior Vice President and Managing Director, Moscow, The PBN Company

In Russia expectations of openness and disclosure have changed dramatically over the past six months. Half a year ago, it was unacceptable for a company not to present a clear vision of future development and performance. Now, not only is a lack of clarity acceptable, it is seen as almost preferable. Why?

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By Tom Blackwell, Senior Vice President and Managing Director, Moscow, The PBN Company

Like the shaking of a kaleidoscope, the financial crisis has up-ended the already complex relationship between Government and business in Russia: the pieces have been thrown in the air, and no one is quite sure what pattern will emerge.  In recent years, as Russia’s economy has become increasingly politicized, relationships with government have become king - but the financial crisis and the era of massive bailouts have dramatically raised the stakes, shaking the pattern of relations.

Established relations between businesses and the government are being broken and new relationships are being crystallized. In some cases, the relations have turned 180 degrees. 12 months ago the Russian Government was looking to business groups to step up with investment for major projects, most notably the development of Sochi for the 2014 Winter Olympics. Now those same businesses are receiving vast state loans.

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By Tom Blackwell, Senior Vice President and Managing Director, Moscow, The PBN Company

The companies that survive the current crisis will be those that are lean and nimble, able to adapt quickly, and capable of managing risk and zeroing in on opportunities.  When it comes to communications, it’s important to implement the same kind of approach.

In the current climate, it is helpful to think about communications in terms of the relationships that are most critical to a company and to its business development - be it relationships with government, regulators, investors, bankers, media, or employees.  Over the next few days, I will be taking a closer look at communicating with each of these different stakeholder groups in the current conditions.

One thing is clear: relationships are either built, cemented or destroyed in times of crisis.  In bad and unpredictable times, relationships are not a luxury, and the punishment for poor or inadequate communication tends to come swiftly and brutally.

By Jed Holmes, Senior Policy Analyst, The PBN Company

Plunging Restaurant Receipts Inspire “Anti-Crisis Menus”

According to Vladimir Malyshkov, head of Moscow’s consumer market and services department, the economic crisis has caused a 25-30% drop in revenues for high-end restaurants in the Russian capital, with both average receipt totals and visitation dropping, RIA Novosti reported.

At the same time, he said that turnover at mid-range and economy dining establishments revenues are holding steady or even increasing.  In particular fast food establishments, from street piroshki vendors to Western franchises, are reporting higher revenues.  For example, McDonald’s flagship restaurant on Pushkin Square had the highest sales total for the franchise worldwide, according to a Moscow Times report.

Malyshkov pointed out that some restaurants have created “anti-crisis menus”, offering business lunch options for as little as 100 rubles, or a little under $3. According to the city government’s statistics, restaurant prices have declined on average 15-20%. Read more »

by Peter B. Necarsulmer, Chairman & CEO, The PBN Company

The key to emerging from a recession this deep and this broad is the restoration of confidence.  Building confidence is ultimately about building trust.  Trust in our government, in our business leaders and in the fundamentals of our economy and economic future.

Right now that trust has been shaken badly. Perhaps in Russia even more so than in other countries.

That’s because it came so suddenly and at the very moment when the public’s confidence in Russia was sky high.  Among rich and poor alike, there was widespread belief that the type of economic displacement experienced in 1998 could never happen again, and certainly not under Prime Minister Putin’s watch.

What started out as a financial crisis and turned into an all-out economic crisis has now becoming a massive crisis of confidence. Read more »