Since the collapse of Communism and the dawn of Capitalism, the Russian people have been troubled with innumerable obstacles. There are more than 3,000 gangs known generally as the Russian Mafia. They have proven to be a significant force in delaying the reform process (Goldman 58). The new Russian Mafia has involved

themselves in every imaginable kind of criminal activity from drug trafficking and money laundering to protectionism, which penetrates into every area of society. Under the laws of the Soviet Union, the regulations were strong and external. Now the external regulators have

“Biz in Russia.” Puget Sound Business Journal. 7 March 1995: 18. “Comrade Godfather; In Russia, the Mafia Seizes the Commanding Heights of the Economy.” The Washington Post 12 Feb. 1995: C2. “Crime in Russia.” Current Digest of the Post-Soviet Press 15 Feb. 1995: 14. “Fifty-two Percent Believe Mafia is Running the Country.” Current Digest of the Post-Soviet Press 8 Oct. 1997: 11 Goldman, Minton. Russia, The Eurasian Republics, and Central/Eastern Europe. Connecticut: McGraw-Hill, 1999. 58-60. Gustatfson, Thane, and Daniel Yergin. Russia 2010: And What It Means For the World. New York: Random House, 1993. 105-106. Holmes, Charles. “In Russia, Repression Gives Way to Corruption.” The Atlanta Journal and Constitution 7 Sept. 1997: B1. Lloyd, John. “The Russian Devolution.” New York Times 15 Aug 1999: A8. Remnick, David. Resurrection. New York: Random House, 1998. 108- 110, 196-199. Sukhova, Suctlana. “Head of Russian Internal Affairs Ministry Believes The Russian Mafia is a Myth.” Current Digest of the Post-Soviet Press 9 Dec. 1998: 20. Tanner, Adam. “Russia’s Notorious Mafia Spreads Tentacles of Crime Around the World.” Christian Science Monitor 11 Jan. 1995: C2. “The Russian Mafia Means Business.” Economist 4 July1998: 60.

The Russian mafia is involved in every aspect of Russian life. They provide a code of conduct for business not yet provided by the professional elite or the government. The mafia has a detrimental effect on the Russian economy. It not only creates massive inflation, it deters companies from other countries from investing in the Russian economy. Foreign investors operating at the retail level where hard cash is a fundamental part of business are particularly susceptible. They are not excluded from the gangster’s tactics of “offering” protectionism (Fifty-two Percent Believe 11). In some cases, the mafia has succeeded in expelling the foreign owner. Specifically this has happened to a Canadian-owned wholesale electronic good franchise, and Italian merchant of leather goods, and an Estee Lauder shop (Washington Post C2). Russia has taken several steps to stop crime such as protectionism and the Russian mafia.

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