“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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