Irresponsible and ineffective power
Natural resources orientation
Shadow nature of the economy
Imperfect legislation
Acceptance of corruption by civil society

HIGH-LEVEL AND PETTY CORRUPTION ARE COMMON,
ESPECIALLY IN THE JUDICIAL SYSTEM AND PUBLIC
PROCUREMENT. THE BUSINESS ENVIRONMENT SUFFERS
FROM INCONSISTENT APPLICATION OF LAWS AND A LACK OF
TRANSPARENCY AND ACCOUNTABILITY IN THE PUBLIC
ADMINISTRATION. RUSSIA’S REGULATORY INEFFICIENCY
SUBSTANTIALLY INCREASES THE COST OF DOING BUSINESS
AND HAS A NEGATIVE EFFECT ON MARKET COMPETITION.
Police
Public procurement
Land administration
Judicial system
Land administration
Tax administration
Natural resources

As Figure 2 shows, raw levels of reported corruption are sizeable and have been stable over time. Other survey evidence on bribery in general indicates that about 15-25% of Russians report having had to give a bribe in the last year.

1) DMITRY ZAKHARCHENKO
IN SEPTEMBER, POLICE DETAINED COLONEL DMITRY
ZAKHARCHENKO, A SENIOR OFFICER OF THE INTERIOR MINISTRY’S
MAIN DIRECTORATE FOR ECONOMIC SECURITY AND COUNTERING
CORRUPTION, ON CHARGES OF BRIBERY, OBSTRUCTION OF
JUSTICE AND ABUSE OF POWER. A SEARCH CONDUCTED IN A
MOSCOW APARTMENT THAT BELONGED TO ZAKHARCHENKO’S
SISTER RESULTED IN DISCOVERY OF OVER 122$MLN IN RUBLES
AND FOREIGN CURRENCIES.

2) ALEKSEY ULYUKAEV
FORMER ECONOMY MINISTER ALEKSEY
ULYUKAYEV WAS DETAINED IN NOVEMBER 2016
ON CHARGES OF RECEIVING A $2 MILLION BRIBE
IN RETURN FOR HIS MINISTRY’S SUPPORT FOR A
DEAL THAT WOULD ALLOW STATE OIL COMPANY
ROSNEFT TO PURCHASE THE GOVERNMENT’S
STAKE IN ANOTHER RUSSIAN OIL GIANT,
BASHNEFT.

3) NIKITA BELYKH
IN JUNE 2016, THEN-GOVERNOR OF THE NORTH RUSSIAN
KIROV REGION, NIKITA BELYKH, WAS DETAINED IN THE
PROCESS OF ALLEGEDLY RECEIVING A €400,000 (OVER
$440,000) CASH BRIBE IN A MOSCOW RESTAURANT.
INVESTIGATORS SUSPECT THE BRIBE WAS MEANT AS
PAYMENT FOR INCLUDING TWO LOCAL COMPANIES – A SKI
FACTORY AND A FOREST MANAGEMENT FIRM – IN A
FEDERAL INVESTMENT PROGRAM AS PRIORITY PROJECTS.

4) ALEXANDER KHOROSHAVIN
ANOTHER FORMER RUSSIAN GOVERNOR WHO FACES
CORRUPTION CHARGES IS THE EX-HEAD OF THE FAR EASTERN
REGION OF SAKHALIN, ALEKSANDR KHOROSHAVIN. HE WAS
DETAINED AT HIS WORKPLACE IN MARCH 2015, ALONG WITH
SEVERAL AIDES, AND URGENTLY TRANSPORTED TO MOSCOW
FOR INVESTIGATION. SEARCHES OF KHOROSHAVIN’S HOMES
AND APARTMENTS YIELDED AROUND $17 MILLION IN CASH
(IN VARIOUS CURRENCIES), A LOT OF EXPENSIVE JEWELRY,
AND A COLLECTION OF WATCHES WORTH OVER $10 MILLION.

5) VYACHESLAV GAYZER
ON TUESDAY, A COURT IN MOSCOW IS
SCHEDULED TO BEGIN HEARINGS INTO THE CASE
OF THE FORMER HEAD OF THE NORTH RUSSIAN
REPUBLIC OF KOMI, VYACHESLAV GAYZER AND 13
OTHER FORMER OFFICIALS FROM THIS REGION.
CHARGES AGAINST SUSPECTS INCLUDE BRIBERY,
MONEY LAUNDERING, EMBEZZLEMENT AND
ORGANIZING A CRIMINAL GROUP.