11.03.2008 - Source: US Department of State

Corruption is widespread problem in Russia and studies have found that it increased in past year ("Country Report on Human Rights Practices 2007") [ID 22626]

For further cases, please see the report.

"Corruption is a widespread problem in Russia and studies have found that it increased in the past year. The World Bank's worldwide governance indicators reflected that corruption was a severe problem. (…)

From January to October, according to Deputy Foreign Minister Alexander Yakovenko, more than 37,000 corruption crimes, including bribery and corrupt business practices, were detected by the Ministry of Internal Affairs. From January to November, there were 11,119 cases of bribery of government and municipal officials alone, a six percent increase from the same period of last year. Of these cases 9,127 persons faced criminal investigations and 5,288 were sentenced, a 10.3 percent increase from the same period in 2006. The INDEM foundation estimates that millions of corruption-related offences were committed every year and cost the country $300 billion (approximately 7.36 trillion rubles), almost equal to the country's entire federal budget.

Some high-level officials were charged with corruption this year, but most anticorruption campaigns were limited in scope and focused on lower-level officials. Allegations of corruption were also used as a political tactic, which made it more difficult to determine the actual extent of corruption.

In this year's highest-profile corruption case, Deputy Finance Minister Sergey Storchak was arrested on suspicion of preparing to embezzle $43 million (more than 1 billion rubles) from the state budget. The case, which some observers charged may be politically motivated, remained delayed at year's end; in the meantime, Storchak was considered a flight risk and remained in detention in Moscow."

Document(s): Open document

06.2007 - Source: Freedom House

Government has made little effort to launch real anticorruption campaign; while Kremlin cracks down on media and civil society, clout of bureaucracy has been growing in environment of reduced accountability ("Nations in Transit 2007") [ID 20450]

For more detailed information please see the full report

"The Russian government has made little effort to launch a real anticorruption campaign. There have been a few crackdowns in the law enforcement agencies, but the amount of work needed is extensive. In a handful of cases, brave individuals have made a difference, such as Andrei Kozlov, Russia’s top bank regulator, who was assassinated in September for his efforts to shut down banks involved in money laundering. While the Kremlin cracks down on the media and civil society, the clout of the bureaucracy has been growing in an environment of reduced accountability. At the same time, an ever increasing share of the budget is being classified.

Owing to little real effort to improve accountability, which is not possible given the crackdown on the media and civil society, Russia’s rating for corruption remains at 6.00."

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14.11.2006 - Source: UK Home Office

Corruption widespread in society and extensive in executive and legislative branches of government in 2005; difficult to determine actual extent of corruption ("Operational Guidance Note: Russian Federation") [ID 17975]

"Corruption was widespread throughout society in 2005, and was extensive in the executive and legislative branches of government. Manifestations included bribery of officials, misuse of budgetary resources, theft of government property, extortion, and official collusion in criminal acts. Many public institutions remained weak. The media lacked a strong tradition of investigative journalism, although a number of journalists throughout the country reported on corruption cases, sometimes resulting in prosecution of the alleged offenders. In general, however, citizens lacked a broad range of outlets to voice their views concerning corruption or to lodge complaints about its existence.

President Putin and senior government officials frequently addressed corruption in public statements, and many jurisdictions throughout the country established local anti-corruption committees. Various initiatives were undertaken at the federal level, with indeterminate results. Most anti-corruption campaigns tended to be limited in scope and focused mainly on lower level officials. Allegations of corruption were also used as a political tactic, which made it more difficult to determine the actual extent of corruption."

Document(s): Open document

09.11.2006 - Source: Guardian

Scale of backhanders close to state's entire revenues; police discover 28,000 graft cases in 8 months ("Corrupt bureaucrats cost Russia £125bn a year, prosecutor says") [ID 17527]

Document(s): Open document

07.2006 - Source: Freedom House

Russia's rating for corruption drops to 6.0 owing to increased role of state in economy, ongoing attacks on potential oversight bodies and failure to adopt administrative reforms ("Nations in Transit 2006") [ID 15813]

"Several independent research groups found that corruption increased in Russia in 2005. The basic problem is that current policies hand more power to state agencies while limiting the ability of social groups and the media to provide real oversight. This trend was most evident in the lucrative energy sector, where the Russian state secured majority ownership of the natural gas monopoly Gazprom and brought 30 percent of oil production under direct state ownership, creating numerous opportunities for corruption. Abuse of funds is also rife in Russia's policy toward the North Caucasus, adding to the troubles of this region. Russia's rating for corruption drops to 6.0 owing to the increased role of the state in the economy, ongoing attacks on potential oversight bodies, and the failure to adopt administrative reforms that would reduce the power of bureaucrats in the country.
(…)
Russia is taking some steps to deal with its corruption problem, though these are likely to have little impact. In spring 2005, Prime Minister Mikhail Fradkov launched a program to double the nominal salaries of federal officials working outside of Moscow by 2008 in order to attract better talent to these jobs. Salaries for federal officials working in the regions increased by 27.6 percent in nominal terms over the first six months of 2005, but they are still lower on average than the salaries of their local counterparts, earning 8,839 rubles (US$316) per month versus 14,791 (US$530). Despite these efforts, bureaucrats’ salaries are peanuts compared with their ability to make money from business; therefore, the scope for corruption remains enormous.After many years in which plans for administrative reform were successively proposed and then abandoned, on November 1 Fradkov signed the latest administrative reform blueprint and an implementation plan for the next three years. The goal is to overhaul the civil service with clear regulations and state service delivery standards. However, this plan will not be implemented anytime soon, since 2006 is devoted to the "theoretical" preparation of the reform. Similarly, Russia is working on ratifying the UN Anticorruption Convention. This means reintroducing the confiscation of property into Russian law, a provision required by international standards but one that worries many rights advocates for fear it will be used by the authorities to take property arbitrarily."

Document(s): Open document

08.03.2006 - Source: US Department of State

Police corruption was widespread and with few crackdowns on illegal police activity ("Country Report on Human Rights Practices 2005") [#46144], [ID 11955]

"The national police force, which falls under the MVD, is organized on the federal, regional, and local levels. Although regulations and national laws prohibit corrupt activities, corruption was widespread and with few crackdowns on illegal police activity. The government reportedly addressed only a fraction of the crimes that federal forces committed against civilians in Chechnya. Although government agencies, such as the MVD, have continued to educate officers about safeguarding human rights during law enforcement activities through training provided by foreign governments, the security forces remained largely unreformed."

Document(s): Open document

08.03.2006 - Source: US Department of State

According to many credible reports, police arbitrarily imposed fines on unregistered persons in excess of legal requirements and/or demanded bribes from them; corruption in the registration process in local police precincts remained a problem ("Country Report on Human Rights Practices 2005") [#46144], [ID 11956]

"All adults are issued internal passports, which they must carry while travelling internally, and they are expected to register with the local authorities within a specified time of their arrival at their new location. The authorities often refused to provide governmental services to individuals without internal passports or the proper registration. A government decree enacted in December 2004 extended the grace period for registration given to an individual arriving in a new location from 3 to 90 days; however, immediately following the law's announcement, the Moscow police chief ordered the police to continue its document checks on the streets to verify document authenticity. Darker skinned persons from the Caucasus or Central Asia were often singled out for document checks. There were many credible reports that police arbitrarily imposed fines on unregistered persons in excess of legal requirements and/or demanded bribes from them. The new law does not affect foreigners, who are still required to register within three business days of their arrival in a locality.
Although the law gives citizens the right to choose their place of residence freely, many regional governments continued to restrict this right through residential registration rules that closely resembled the Soviet-era "propiska" (pass) regulations. Citizens must register to live and work in a specific area within seven days of moving there. Citizens changing residence within the country, as well as persons with a legal claim to citizenship who decide to move to the country from other former Soviet republics, often faced great difficulties or simply were not permitted to register in some cities. Corruption in the registration process in local police precincts remained a problem. There were frequent reports of police demanding bribes when processing registration applications and during spot checks for registration documentation. The fees for permanent and temporary registration remained low. Moscow's registration requirement – which some police reportedly used to extort money – remained in force at year's end. In 2004 Krasnodar Kray authorities enacted a law that extended the definition of "illegal migrant" to include Russian citizens as well as foreign citizens and stateless persons."

Document(s): Open document

08.03.2006 - Source: US Department of State

Corruption was widespread throughout society and was extensive in the executive and legislative branches of government ("Country Report on Human Rights Practices 2005") [#46144], [ID 11957]

"The country is still to complete the transition from a former communist state to a modern democratic society based fully on the rule of law and a free market economy. Corruption was widespread throughout society, a conclusion supported by domestic opinion surveys, and was extensive in the executive and legislative branches of government. Manifestations included bribery of officials, misuse of budgetary resources, theft of government property, extortion, and official collusion in criminal acts. International organizations gave the country poor marks on corruption issues. Many public institutions remained weak. The media lacked a strong tradition of investigative journalism, although a number of journalists throughout the country reported on corruption cases, sometimes resulting in prosecution of the alleged offenders. In general, however, citizens lacked a broad range of outlets to voice their views concerning corruption or to lodge complaints about its existence.

President Putin and senior government officials frequently addressed the issue in public statements, and many jurisdictions throughout the country established local anticorruption committees. Various initiatives were undertaken at the federal level, with indeterminate results. Most anticorruption campaigns tended to be limited in scope and focused mainly on lower level officials. Allegations of corruption were also used as a political tactic, which made it more difficult to determine the actual extent of corruption. No new major corruption convictions occurred during the year. However, there was a widely publicized allegation of major corruption in October involving the videotaped handover of $1 million (28.5 million rubles) to a federal tax inspector by an official with the Central Bank. Both individuals were charged and remained in detention, but the case had not yet reached court. In June a senior auditing official in the Ministry of Industry and Energy was arrested and indicted for allegedly accepting a bribe; the official was still awaiting trial."

Document(s): Open document

24.02.2006 - Source: Radio Free Europe/Radio Liberty

Putin criticised interior ministry for corruption and inability to stop criminality; practice of officials not officially registering many crimes ("Russia: Fight Against Corruption Starts With Interior Ministry") [#45066], [ID 11958]

Document(s): Open document

31.01.2006 - Source: ReliefWeb

Corruption and organized crime are pervasive problems, an estimated 26% of Northern Caucasus' economic activity in organized crime sector ("The crisis in Chechnya and the Northern Caucasus at a glance - 31 Jan 2006 (International Rescue Committee)") [#43304], [ID 11959]

"Russian authorities themselves - including President Putin - have highlighted corruption as a pervasive problem in public life in the Northern Caucasus. Governmental, social and commercial life remain hobbled by graft, bribery, kidnapping, extortion and other criminal activity. Basic public services -- such as health -- which are supposed to be free are in fact rendered inaccessible to poor households because bribes and 'private' fees are required. Governments throughout the region are widely perceived to be corrupt and unresponsive. Reports by the Russian government's own envoy to the region estimate that 26% of the Northern Caucasus' economic activity is in the organized crime sector (twice the Russian average)."

Document(s): Open document

08.2005 - Source: Freedom House

Pervasive corruption in the government and business world ("Freedom in the World 2005") [#41473], [ID 11930]

"Corruption throughout the government and business world is pervasive. Tough legislation to combat money laundering entered into force in 2002, leading the Financial Action Task Force of the Organization for Economic Cooperation and Development to remove Russia from its list of noncooperating countries. However, the ongoing trial of Yukos chairman Mikhail Khodorkovsky and his associates, as well as new tax assessments and pressures on other Russian magnates, coming on the heels of the persecution and prosecution of former media owners Vladimir Gusinsky and Boris Berezovsky, reaffirms the view held by many independent Russian analysts that Putin’s anticorruption efforts are selectively applied and have often targeted critics and potential political adversaries. Russia was ranked 90 out of 145 countries surveyed in the 2004 Transparency International Corruption Perceptions Index. […]
Widespread corruption remains a serious obstacle to an effective market economy and is an impediment to genuine equality of opportunity. According to a 2002 report by the Moscow-based INDEM Foundation, Russians spend an estimated $37 billion annually on bribes and kickbacks, ranging from small payments to traffic police to large kickbacks by companies to obtain lucrative state contracts. Members of the old Soviet elite have used insider information to gain control of key industrial and business enterprises."

Document(s): Open document

08.2005 - Source: Freedom House

The judiciary suffers from corruption, inadequate funding, and a lack of qualified personnel ("Freedom in the World 2005") [#41473], [ID 11960]

"The judiciary suffers from corruption, inadequate funding, and a lack of qualified personnel. After the judicial reforms of 2002, the government has made progress in implementing due process and holding timely trials. Since January 2003, Russia’s reformed criminal procedure code has provided for jury trials throughout the country, but the legislature has voted to postpone introducing jury trials in certain areas by up to four years because of financial and technical difficulties. The new code also gives the right to issue arrest and search warrants to the courts instead of prosecutors, and it abolishes in absentia trials. After the Belsan attack, Putin declared his intention to establish full control over an office in the Supreme Court that supervises the hiring and removal of judges. Human Rights Watch called the proposal “another erosion of the independence of the judiciary.”"

Document(s): Open document

22.07.2005 - Source: Radio Free Europe/Radio Liberty

According to new study on corruption, Russians spend 10 times more in bribes today than they did four years ago ("Russia: Bribery Thriving Under Putin, According To New Report") [#34474], [ID 11932]

Document(s): Open document

03.06.2005 - Source: Council of Europe - Parliamentary Assembly

Anti-corruption measures, but so far little results ("Honouring of obligations and commitments by the Russian Federation [Doc. 10568]") [#32710], [ID 11938]

"230. It has been acknowledged by the highest authorities in the country, including President Putin, that corruption is one of the worst scourges affecting Russian society134. According to an opinion poll carried out by TI Russia between January 2002 and January 2003, 75 per cent of respondents consider the law enforcement agencies to be dishonest. A recent opinion poll carried out by the Public Opinion Foundation in October 2004, also showed that two thirds of respondents described judges as "corrupt, on the take, always willing to be bribed".

231. According to a study that was carried out by Transparency International135 in the summer of 2002 in 40 regions, the southern part of Russia is seen as more corrupt than the north. Corruption is perceived as a serious problem in the agricultural regions known as the southern belt – stretching from the Rostov oblast to the Volga region. In contrast, northern regions such as Arkhangelsk, Karelia and Yaroslavl oblast tend to be seen as less corrupt. This distinction may reflect the developmental and cultural differences between the more modern, Europeanised regions of northern Russia and the more traditional regions of southern Russia; the stronger family and clan structures that flourish in the Caucasus may facilitate corruption. The eastern part of Russia – such as Khabarovsk Kray and Primorski Kray – is perceived as more corrupt than the west. However, the western area known as the capital region – St Petersburg, Moscow city and Moscow oblast – was assessed as one of the most corrupt regions. Thirdly, counter to popular expectations, the degree of corruption in areas that are rich in natural resources – such as Tyumen oblast and Bashkortostan – was viewed as below average.

232. Nothing much has happened since draft 'anti-corruption policy fundamentals' were submitted to parliament in June 2002 and August 2002 when President Putin signed a decree designed to improve the ethics and integrity of the state bureaucracy. According to the decree, civil servants will be expected to observe the law, serve the public efficiently, avoid conflicts of interest, and remain politically neutral. A number of commentators were sceptical of the effectiveness of this measure and demanded tougher action to prosecute senior officials136 on corruption charges. A presidential anticorruption Council was created in late 2003 but to date it has met only once. On 21 May 2004, the Deputy Prosecutor General proposed amendments to the Code of Criminal procedure with a view to simplify the current complicated procedures for the lifting of immunity of judges, parliamentarians and other high officials. His suggestion to reverse the burden of proof as to the legal origin of such persons' income raised an outcry and it seems was not adopted.

233. Corruption, organised crime, and money laundering represent a major challenge to democracy and the rule of law, without which there can be no respect for fundamental human rights. Responses to this challenge must be comprehensive, based on political commitment and sound legislation, and encompass law enforcement, prevention, and public participation. We welcome the decision of the Russian state Duma of April 2004 to set up an anti-corruption Commission, comprising fifteen Deputies and a number of experts, including the Russian representative of Transparency International. This Commission is tasked with elaborating comprehensive draft legislation to fight corruption and will also scrutinise draft legislation in other fields to identify possible risks of corruption. We strongly urge the Russian Federation to ratify as soon as possible the Council of Europe civil and criminal conventions on corruption, as international cooperation and assistance is a pre-requisite for success."

Document(s): Open document

20.04.2005 - Source: Council of Europe - Commissioner for Human Rights

Corruption undermining the judiciary ("Report by Mr. Alvaro Gil-Robles, Commissioner for Human Rights, on his visit to the Russian Federation, 15-30 July 2004 and 19-20 September 2004 [CommDH(2005) 2]") [#32581], [ID 11961]

For a documentation of individual cases please refer to the original document

"49. Lastly, I should like to refer to a delicate issue that is often raised in Russian society, and which was frequently brought to my attention during my visit. Many of those with whom I spoke referred to the problems of corruption undermining the judiciary. […] The work undertaken since 1996 by the Council of Europe, and notably by the GRECO, shows the importance of formulating common responses to this problem. I would not wish to enter into a domestic debate on issue as delicate corruption. I note, however, that combating corruption is one of the main concerns of several leading politicians. The Head of State, for instance, has referred to the problem on several occasions in his speeches. I can only reiterate my calls for the firmest possible measures to combat this scourge, so that the Russian courts at last inspire confidence among the country‘ s citizens."

Document(s): Open document

12.08.2003 - Source: International Relations and Security Network

Corruption ("Russian Regional Report (Vol. 8, No. 14, 12 August 2003)") [#15908], [ID 11943]

"At the end of July, a commission set up by the Procurator General's office brought to a conclusion a
nine-month scandal involving a conflict between Oblast Procurator Aleksandr Babichev
and his first deputy Vasilii Izotov. The commission determined that Izotov's accusations
of corruption and abuse of office by his boss were baseless and instead accused him of
corruption.
On numerous occasions, the local press wrote about Izotov's magnificent
mansion, something he could not possibly buy with his procurator's salary, and about a
series of scandals, which he had been involved in (see for example, Kurskaya Pravda, 22
July). Babichev's predecessor, now working as a deputy governor, had also attempted to
fire Izotov. In November 2002, relations between Babichev and Izotov deteriorated to the
point where they could no longer work toget her and Izotov sent his accusations to the
procurator general.
In his report, Izotov claimed that Babichev had attempted to illegally bankrupt the
Mikhailov Mining and Processing Combine, the largest enterprise in the region, hoping to
make a personal pr ofit. He also charged that the procurator had illegally received housing
in Kursk and that he had used budget funds improperly. Additionally, Izotov charged that
the prosecutor had not conducted public tenders in remodeling the procurator's raion
offices and had purchased cars without seeking competitive bids (Izvestiya , 25 July).
In April 2003 the procurator general abolished Izotov's job and the commission
launched its investigation. Indicating their unhappiness with Izotov, the Moscow officials
offered him an opportunity to take a new position in Siberia. Izotov turned down these
opportunities and instead went on sick leave. Russian law prohibits firing someone on
sick leave.
The commission cleared Babichev of all charges and then filed numerous
accusations against Izotov. The commission claimed that he had refused to pay workers
the 35,000 rubles he owed them for working on his house, used a stolen car for official
business, and put pressure on the court and investigators in exchange for construction
materials (provided by the latter). The Muscovites also accused Izotov of filing an illegal
case against Kursk Mayor Sergei Maltsev for buying an expensive car for the mayor's
office.
Despite the extensive evidence of wrongdoing, Izotov's only punishment will be
that he will be forced to go on pension as soon as he returns from sick leave. The
procurator general made this decision and it naturally casts doubt on the sincerity of his
efforts to fight corruption. - Sergei Sarychev in Kursk"

Document(s): Open document