More than ten years after the break-up of the Soviet economy, Russia, which continues to undergo long-term change, still represents a very complex business environment. Subsidiaries of multinational companies (MNCs) operating in this environment can adapt successfully only by means of organizational learning. Learning processes should materialize as the mutual exchange of knowledge between expatriates and local employees. However, learning is complicated in a cross-cultural setting. This study examines barriers to learning and discusses management tools to enhance learning, using comprehensive case study data. In-depth personal interviews were conducted with 35 expatriate managers and 36 Russian employees working at 22 different subsidiaries of MNCs in Moscow and the Moscow Region. (C) 2003 Elsevier Inc. All rights reserved.