Alexander Danilov, country manager for DHL in Russia, represents a new breed of managers in this country: Russians replacing expatriates at the head of multinationals because they know their nation best.

Danilov took the position of DHL country manager a little over a month ago. The announcement of his appointment generated a flurry of reports in the media, with the effect that DHL's move signaled what is likely to become a trend among multinationals operating in Russia.

"We are now seeing more Russian nationals at the top or in the upper echelons of multinational companies," said Felix Kugel, Eastern Europe sales and marketing director of Manpower, the international human resources company.

"There are fewer expats being brought in because Russians are cheaper to employ and, more importantly, have proved adept over the last five to seven years at learning business skills. Indeed, they are very fast learners."

Local knowledge is important for DHL because the company often deals with government organizations, Danilov said. His understanding of customs officials and the culture of government ministries is likely to help the company become more efficient.

"It means that it takes us less time to find flexible solutions for international companies having to deal with state organizations in Russia, which is the type of service that is appreciated by global clients," he said.

U.S.-based DHL had already built up a strong corporate knowledge of Russia before Danilov took the helm, having dominated the market since launching operations in the Soviet Union in 1984.

Despite fierce competition from both foreign and domestic companies over the last five years, DHL controls more than 50 percent of the courier service market in Russia. And, in a bid to shore up that position, the company is expanding rapidly throughout the regions in expectation that the economy is likely to pick up during the second half of next year.

"We are optimistic that after the presidential elections there will be positive developments in economic policy as well as political stability," Danilov said. "That is why DHL is here, because we are hoping for the better."

Across the entire former Soviet Union, DHL employs more than 1,000 people, and only four of these are expatriates - the general director, financial director, operations director and IT director.

The company services 250 cities in Russia via 20 branches and more than 60 agencies. In the past three months, DHL has opened company-controlled stations in three more cities and a further five agencies operating under the DHL logo. The eight new outlets cover cities in Central Russia, Siberia and the Urals.

Danilov says his brief is to further improve DHL's sales efficiency, ensuring the right products and options for its customers.

The evolution of the Russian express delivery market is similar to that of the United States and Europe 30 years ago, Danilov said.

The new country manager said movement of documents was initially the firm's priority, then parcels took precedence, followed by today's more complex services.

"This means being able to pick up products in the United States and Europe and deliver them, customs cleared, anywhere in Russia, allowing large multinational companies to significantly reduce warehouse time with their products," Danilov said.

"We are working hard to develop door-to-door and business-to-business services anywhere in Russia, something that there is increasing demand for," he added.

Danilov said the company has the most diversified network in Russia, putting it in a strong position to achieve this goal.

He said the fact that DHL has already been operating in Russia for 15 years and maintains a predominant position in the Russian market means that it needs to have the necessary systems in place for when the economy improves.

The new country manager well knows the Russian adage that says that a man who patrols a few meters of the border is likely to be a rich man.

But he responded diplomatically about the present day situation on Russia's borders.

"Well, we look at it less as a problem than an opportunity," he said. "Certainly customs regulations in Russia differ a lot from the West.

"And I say 'an opportunity' because rather than crying about the problem, we are trying to change the situation."

DHL is working with the Association of Express Carriers (ACED) in trying to simplify the bureaucratic procedures surrounding customs, making it easier for express carriers to cross borders.

"There is a long way to go before we get to a situation on the borders similar to Western Europe," Danilov said. "I would say that today we are at the beginning of that process."