“If it was not for the mafia there would not be an economy.

They are a major driving force behind what goes on in Russia.”

THE RUSSIAN MAFIA

RUSSIAN MAFIA ROOTS

• Tsars (pre 1917)

• Suppression of people, serfdom thrives

• Gulags (prison camps) create notoriously loyal thieving ‘brotherhoods’ called ‘Vory’

• Communism (1920-1991)

• Leaders make the general public poorer

• Vory organize into Bratva, offer protection, arms, drugs and prostitutes

RUSSIAN MAFIA ROOTS

• 1991-today

• Bratva expands

• Bigger and more organized

• Expands into world wide organization

• 8,000 groups, 200 with world wide influence

• Now has over 300,000 members

• Currently one of the best organized crime syndicates with a military influence

REASONS FOR SUCCESS

• Government support and collusion

• Loyalty to the Brotherhood (Bratva)

• No defined shape with sectors that are dispensable

• Continuous innovation in business

• Many business outlets

• Support of legal experts

ECONOMIC INFLUENCES

• 10% Territory (including old Russian States)

• 25% Economy (US$ 450B)

• 40% State-Owned Corporation (influence on policy making & justice system)

• 80% Banks (taken out of the EU’s white list)

IMPACT OF ECONOMIC INFLUENCES

• Channeling billions of dollars out of the economy

• Bypassing legal procedures

• stealing tax revenues needed to sustain an economy

• robbing the country of aid

• discouraging foreign investors and domestic businesses from starting up

• Expansion of cybercrime in the international market.

• Lack of proper cyber laws.

• No jobs for Young IT Engineers.

• Ease of entry and difficult to be caught.

• Doubling of cybercrime in 2011 from 2010.

RECENT TRANSFORMATION: DIGITIZATION

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