Entwined Interests: Unveiling Systemic Corruption in Russia and Governmental Power Play
Corruption in Russia is a deeply ingrained issue that pervades various sectors, including education, healthcare, public administration, law enforcement, and particularly the real estate sector, involving high-level government officials. This corruption has historical roots and has evolved over time, becoming an integral part of the modern institutional structure of the country.
A notable aspect of Russian corruption involves the complex interplay between government officials and the business sector. Post-Soviet Russia witnessed the emergence of a unique form of corruption where government and business merged. This resulted in a significant portion of the boards of directors of state-owned companies being comprised of government officials, often ministers and their deputies. For example, the Federal Antimonopoly Service of the Russian Federation revealed that the combined contribution of state-owned enterprises (SOEs) to Russia’s GDP in 2018 reached 60%, with the 20 largest SOEs contributing 97% of the total dividends received by the federal budget. In many instances, private companies were covertly controlled by state officials through proxies or relatives, who actively lobbied for their interests. The state’s dominance in Russia’s economy is evident and profound, as seen in the early 2000s when the state began consolidating strategic assets into state holding groups managed by newly established state corporations.
In Russia, corruption is not just limited to a few corrupt individuals but is systemic, affecting many layers of society and the state. The corruption mechanism operates in a top-down manner, with political and business success largely dependent on one’s relationship with the President. This model of corruption has normalized the blending of civil service with business interests, often involving the appropriation of state property and land.
Furthermore, corruption in Russia is characterized by its extensive nature, impacting sectors like healthcare, education, housing, communal services, and law enforcement. Among these, law enforcement agencies, healthcare, and education are frequently cited as being highly susceptible to corruption. For instance, independent experts from RBC magazine named law enforcement agencies, including the State Traffic Safety Inspectorate, as the most corrupt sphere in Russia, followed by healthcare, education, housing and communal services, and social security services. Additionally, the real estate sector, particularly in land distribution and land relations, is heavily affected. Government contracts, issuance of permits and certificates, and construction are also areas of significant corrupt activity. In a telling example, bribery has become institutionalized, with students paying teachers for better grades, patients paying doctors for supposedly free state healthcare, and families paying off draft boards to keep their sons out of military service.
The fight against corruption in Russia faces numerous challenges. While there have been some efforts to combat corruption, including anti-corruption campaigns and legislative changes, the systemic nature of the issue means that these efforts often fall short of addressing the underlying problems.
Corruption remains central to business and politics in Russia. This is exemplified by routine practices such as drivers negotiating bribes with traffic police, or businesses being paralyzed by corrupt tax police, as reported by RFE/RL. It is observed that in recent years, corruption in Russia has evolved into a business, with corrupt practices being an indispensable mechanism for maintaining the power structure, integrating into the “power vertical” through which the government operates.
