Business Corruption in Russia

Corruption significantly impedes business in Russia, and petty corruption is common. Corruption is especially prevalent 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. Companies face challenges when dealing with licences and permits, although recent legislative changes have reduced red tape and bureaucratic procedures. The Russian Federal Anti-Corruption Law requires companies to actively implement anti-corruption compliance programs. Russian law requires all public servants to declare their income, sources of funds and acquisitions of property. Facilitation payments are prohibited, and gifts and other benefits are limited by law. Effective judicial enforcement of anti-corruption legislation remains an issue, for courts themselves are often politicised and corrupt.

October 2015
GAN Integrity Solutions

Russia Compliance Guide