Today's Russian mafia: organization, operations, and influence

¶ … communism," "vodka," may be "Vladimir Putin." But everyone who would be asked about Russia would also say "Russian mafia" who are very cruel and dangerous gangs from Russia and who wouldn't stop behind anything in achieving their dirty plans.

The term and the phenomenon of Russian mafia are pretty young if compared to well-known mafia of Sicily, Italy, Latin American cartels. The first news and rumors about Russian mafia in the United stated appeared in 1980 ies, when a massive immigration of predominantly Russian Jews started from the Soviet Union. Russian mafia had penetrated into the infrastructure of the main business centers of the U.S.A.: New York, Los Angeles, Philadelphia and Boston. They spread their influence over the successful immigrants from Russia, who have to pay for their "protection" or who have to allow mafia representatives participate in running businesses.

If to look on the nature of relations of Russian immigrants and compare them to the nature of Sicilian mafia relations in clans we would find differences. For the first and current generation of Russian mafia there is no concept of "family" or "family business" where all relatives are involved in certain kind of activities. Russian mafia organization looks more like a company or corporation ran by a leader or two, who are usually "thieves in law" or simply much respected criminals who were able to establish the organization. "Thief in law" is a special institution in the complicated hierarchy of criminal Russian environment. They are much respected criminals (mostly thieves) who were imprisoned and who gained a perfect reputation in the circles of prisoners (only criminals) so that they are given special status or "crown" and become "thieves in law" or "crowned thieves." "Thief in law" has to observe a special thief's honor code (do nothing but be involved in criminal activity, thief is not allowed to have family, in order to be independent). By the way nor drug-dealers, nor stolen stuff dealers, nor murders and nor those accused in rape could become "thieves in law." Thief in law has immunity from other thieves, they have to treat him with respect and obey him.

During the regime of communists, organized crime was strictly persecuted by Soviet militia and KGB. Criminals were considered to be "defective" personalities: they could not have leading positions on work, they could not have positions where they were responsible for making decisions and where they were in charge of others; they could not serve in army, and what is the most important they were under very strict supervision of system, and were often imprisoned again for unserious offences. But even during the years of Soviets, USSR had already a reputation of the country where "every tenth was inprisoned and every fifth was watching over." One of the closest societies, which was isolated from the rest of the world by "iron curtain," society with a strong army, military defense system, technologies and authoritarian rule of communist party, still was very poor as the majority lived over the poverty line and their life could be characterized more by "existence" than "living." Crimes and offences were usual things in this society, especially shaken by the years of stagnation and uncontrolled alcoholism.

In 1970 ies the crisis of the socialist system and of dictatorship in the U.S.S.R. was obvious, it was time when the Soviets started the war in Afghanistan, in order to unite the army and not let the country to collapse. But at the same time it was an epoch when something similar to market relations and some kind of business activities inside the country were establishing (mostly illegally, as it was prohibited in the country where the state was the only master of all property and the only employer). Incomes of some population circles began to grow: they were jewelers, dentists, tailors, merchants and those who rent apartments in resort areas. All those people didn't pay taxes to government as there was no concept of business activity in the Socialist society, but still they were dependent, all of them were controlled by organized crime groups headed by "thieves in law." With years, as the crisis and collapse of the Soviet Union was getting more obvious and near, the power of organized crime was growing, while the power of militia and KGB was getting weaker. KGB and militia officers were paid miserable salaries (not more than 300$, at the same time the prices on imported products from Europe and the U.S.A. were enormous: jeans were 100-150$), so they became quickly corrupted and controlled by organized crime groups.

Already in late 1980 ies, during the years of Mikhail Gorbachev reforms (called "perestroika") there appeared first premises for the development of organized crime structure similar to mafia. Corrupted government, ministers, army officers and other bureaucrats noticed a lot of "holes" in Soviet legislature at the same time new opportunities, caused by liberal and market reforms allowed them to use their power in personal interests. Heads of KGB and of defense ministry organized channels for the delivery of weapons from military bases to the leaders of Afghanistan fighting clans who fought against the Soviets. Nearly all channels of weapon and drugs delivery worked in cooperation with local criminal authorities, in order to distract the attention from the officials.

Already during the years of Gorbachev, lots of KGB and militia officers understood that they could spread their spheres of influence over uncontrolling country if they would submit criminals and would allow criminals to "work" under their guidance and monitoring. These were the first attempts to divide the spheres of influence in the country, which often lead to bloody conflicts of different criminal groups. Government was losing the control over affairs inside the country, it was promoting the politics of democratization and liberalization, but in reality jut did nothing and took passive participation in redistribution of power in the country. Everybody was afraid of responsibility and that's why preferred to do nothing but simply observe. No functioning system of taxation, customs, goods exchange and trade regulations caused an unseen export of capital from Soviet Union abroad, caused unseen goods export abroad, which as the result caused hyperinflation and impoverishment of the nationn in some 2-3-year period. Russians and citizens of all former USSR republics lost their savings and were left penniless in the country that was losing its image, it's territories, it's face and trust of its nation. There was nearly none who had control over the situation in the country, but young Russian mafia did. Criminal authorities, who made fortunes and initial capital during the years of Soviet Union and especially during the years of perestroika, felt real power and ambitions to "legalize" both capitals and power in a "new country."

Mafia was getting real power starting from the year of 1993. It was the year when Russian economics was more than depressed and was on the border of default. To solve this problem, in order to fill state's treasury with money and to start paying national debt, government proposed a very risky project of privatization. Everyone was allowed to privatize state's property: factories, plants, mines, oil and gas pipe lines, power plants, state gas and oil extraction companies, nearly everything that was a guarantee of USSR economical and industrial superiority and stability for 70 years. No wonder common citizens were unable to have money; there were three groups of potential owners of state property: foreign investors, successful Russian businessmen who planned to share possession rights still with foreign investors, and there was a third group, represented by shadowed business and criminality. As the result, the biggest state enterprises were privatized by Russian and foreign business, but still the majority of industrial objects appeared to be in the hands of criminal organizations.

In some 2 years economics of former super-power appeared to be in the hands of former criminals and adventurers who got property by bribery. By the words of Russian decedent, Nobel prize winner, writer Alexander Soljenitzin: "Russia has no semblance of democracy and is far from real market reform. Russia's present rulers are hardly better than the Communists. A stable and tight oligarchy of 150-200 people is deciding the fate of the nation. For the past 10 years, leaders have robbed their own people of national wealth, pocketing billions of dollars, impoverishing millions and possibly leading to the death of thousands. Russia's economic chaos is the result of nearly criminal reforms that have created a new class of mafia capitalists."

The changes were so obvious, that Russia had changed greatly in some 5-year period from a country where government had a 100% control over the situation in all spheres of life, to a country where government had only a technical power. According a CIA Director's report to Congress made in 1994 "in a poll in Russia in response to the question "Who controls Russia?" A plurality of 23% responded "The Mafia," 22% responded with "No one," 19% responded "I don't know," and only 14% responded "President Yeltsin." President Yeltsin stated that Russia had developed into "the superpower of crime." FBI Director identified the Russian criminal gangs as "the greatest long-term threat to the security of the United States"

As Russia is a member of world trading community and represents a huge market for different goods, so situation in the country, both in the sphere of politics and economics is a subject of serious and careful attention of major world countries. The problem of high rate of organized crime in Russia is a matter of concern of many countries, and of the U.S. In particular.

According to the reports of FBI: "by 1995 the Russian Mafia had taken control over 70-80% of all Russian commercial enterprises'Russian organized crime is infiltrating practically any type of business activit ... Russian organized crime is predatory, it will feed on the successes of any business, perhaps destroying any chance of legitimate success in the process."

According to the opinion of European and American sociologists, such spread of criminalization is caused by the low morality and absence of religious beliefs in Russian society for more than seventy years. During this period there have grown three generations for whom religion, moral principles and the sense of dignity were nothing more than simple words. After such prolonged period of new morality of atheism, thieving had become a way of life, a part of national mentality. It's not a stereotype it's a well-known and proved fact. The whole system of power in Russia was corrupted: starting from a simple clerk and ending with president Yeltsin. "These are dangerous people, They appear free of conscience and morals " - these are the words of Michael Gorbachev about Yeltsin's administration, said in December, 1996.

According to the article "Mafiocracy in Russia" written by former successful Russian businessman, Alexander Khonanihin,: "The corrupt Russian government also tends to expel any non-corrupt official, because: an official not implicated in the corrupt practices is viewed as potential danger by his corrupt colleagues and superiors, whereas an accomplice in corruption is not likely to testify about the corrupt practices. Immunity from corruption charges is an important consideration for Russian officials: the system once in a while chooses some officials - scapegoats for public prosecution - to ease the public outcry and social tension; an official not implicated in corruption is considered by corrupt Russian government officials as "foreign" and suspicious, in the same way as the Russian drunks would treat a single teetotaller at the table. Such eccentrics are forced out for psychological comfort of the rest, if for nothing else; by replacing a non-corrupt official with a corrupt one, the decision-maker receives a significant bribe and/or ongoing payments from the appointee, who considers these payments to be the "business cost" of the possibility to extract illegal profit. Attempts to become a non-corrupt loner in a completely corrupt government do not occur often in Russia, because: they are doomed; they would endure the official to surviving on his official salary of $100-250/month; in the country, where seventy years of the Communist rule have virtually destroyed all moral and religious restrains and made the thievery somewhat of a national sport, there are not many people willing to try to take extreme hardship of hopeless war with the corrupt practices. Such a war would not be appreciated or believed in by others; most of the Russian bureaucrats had served as officials for the Communist government, for which corruption, as it is well-known, was modus operandi." (from Mafiocracy in Russia)

If one thinks that activity of Russian mafia is limited to the sphere of finance he would be deeply mistaken. Starting from the year of 1993, the year of first ethnical local conflicts on the territory of broken Empire, there appeared a new type of business both for organized crime groups and government: weapon trade. Military officials (starting from officers and ending by generals in the ministry of defense and FSB (federal security service, or reorganized KGB) in Kremlin) were involved in weapon trade with their enemies. Trade schemes were realized by "third persons"- criminals, who delivered weapons from military bases to fighting groups in Caucasus, mainly Chechnya.

It's also important to make a serious note about Chechnya, a dark spot in the history of modern Russian history. I won't touch the nature of war, its character and outcomes. Chechnya had become the mirror of Russia's weak centralized power of Yeltsin's presidency. Since 1992, Moscow had no control over the republic. Chechnya was a realization of a criminal state, where power was in hands of criminal clans who wanted to establish an Islam republic. International airport of Chechnya was not controlled at all, and it was used as buffer zone for drugs (from Turkey, Afghanistan, Iran, and Columbia) and weapon (to Middle East countries). Cocaine and 50% of heroine on Russian drug market came from Chechnya. Kidnapping and slave-trade became a common practice in the country before the 10-year long civil war started. It's hard even to imagine that it took place in the 20th century, in the country that lived peaceful, civilized life. Chechnya remains to be an epicenter of many political, military and economical problems of Russian government, where remote territories are controlled by separatists.

Some facts from Russian official crime statistics:

1994

1995

1996

1997

1998

1999

Number of crimes committed by organized crime groups

18,619

23,820

26,433

28,497

28,688

32,858

Number of organized crime groups members (official statistics)

17,390

20,653

17,927

16,100

16,037

17,557

Number of crimes related to drug-dealing

12,604

11,448

19,982

24,168

31,800

41,121

Number of revealed drug-dens

1992:6600 crimes referred to illegal import of strategic materials. Money confiscated: 760 million rubles (~600 million dollars), 112 million USD. Illegal drugs trade: 50-60 billion rubles (~100 million USD).

1993:4300 violations in financing and banking system; Illegal drugs trade: 170-200 billion rubles (~400 million USD)

1994: confiscated precious metals and stones: 6 kg of platinum, 206 kg of gold, 1500 kg of silver, 225000 carat of diamonds, 1 million USD.

Contraband: 1500 facts; 50 fake firms for illegal export cover; illegal export of strategic materials: 200 million USD.

1995: confiscated 1267 tons of colored metals, 50 tons of drugs

1996: confiscated 1586 tons of colored metals, 43.5 tons or drugs

1997: confiscated 4154 tons of colored metals, 49.6 tons of drugs

For more than 10 years Russia remains to be the leader in slave-trading industry in Europe: every year more than 50,000 girls (age16-27) are exported to Western Europe and Middle East for sex industry.

(from Gilinskiy, Y Organized Crime in Russia: Theory and Practice)

Russian mafia abroad

The most widely discussed case, related to Russian mafia in the U.S.A. was the arrest of the New York's head of Russian criminal clan Vyacheslav Ivankov (known as "Yaponchik" or "Japanese boy"). As writes in the article Mafia invades New York

'When the Russian mafia began to move into the United States it chose Vyacheslav Ivankov, known as Yaponchik or "Little Japanese," to head its New York operation.

He was convicted in November 1997 in a £3.5m ($5.9m) extortion case.

Louis Freeh, head of the Federal Bureau of Investigation (FBI), said: "In 10 or 20 years Ivankov would have been a very, very dangerous criminal leader, not just in the United States but worldwide." The FBI believes his place as head of the Russian mafia in America has already been filled. It will take more than one court case to stop the Russian mafia's worldwide expansion."( from BBC NEWS)

Another well-known criminal figure, Alimjan Taktakhunov (known as "Taiwanchik" or "Taiwan boy") was arrested in 2002 in France. He is considered to have a direct relation to the Olympic figure skating scandal in Salt Lake City. By the opinion of Interpol representatives, Taktakhunov bribed French judges in order to make Russian couple win gold medals. Taktakhunov is known as sports sponsor, and by the means of such venture he wanted to gain the favor of French officials, for getting French citizenship.

Lots of facts witness about the ties of Russian mafia with international criminal groups. They include cooperation in drug dealing, slave-trade, and financial cooperation. It's enough to mention that funeral of one of criminal figures (Misha Tchirik) in Donetsk, Ukraine (100 miles from border with Russia) was attended by more than 200 foreign guests from Sicily, New York, Chicago, San Francisco, Amsterdam, etc.

Conclusion

In the end of 1990 ies it was concluded that organized crime in Russia had become a developed social institution. State machine has lost most of tools and mechanisms of social control. Vacuum that was formed by the weakness of state power was filled by alternative systems of control: organized crime, oligarchy, corrupted bureaucracy. As the number of businessmen who are involved in construction of economical and political system of the country is growing, so criminalization is penetrating into business, economics and politics. Organized crime is no more a confederation of criminals and extortionists; it's a union of bureaucrats and criminalized businessmen.