Financial Crime World

EU Fails to Tackle Russia’s Culture of Corruption

A new briefing by the European Parliament’s Research Service has highlighted the staggering extent of corruption in Russia, with bribery and graft endemic across all levels of society. Despite numerous promises to tackle the issue, the EU has failed to introduce meaningful reforms, ensuring a culture of impunity continues to flourish.

Widespread Corruption in Russia

According to the briefing, corruption is widespread in Russia, with bribes commonplace in sectors such as:

  • Education
  • Healthcare
  • Law enforcement

The National Anti-Corruption Committee estimates that corruption costs the Russian economy up to 25% of its GDP each year.

International Companies and Corruption

International companies have been targeted by US anti-corruption laws, leading some firms to pledge not to pay bribes in Russia. However, despite this, foreign investors remain wary of investing in the country due to concerns over pervasive corruption and lack of transparency.

EU’s Failure to Act on Anti-Corruption

Ben Judah, of the European Council on Foreign Relations, expressed disappointment at the EU’s failure to act on anti-corruption practices and visa bans against Russian officials linked to the death of Sergei Magnitsky. He suggested setting up an EU-Russia anti-corruption dialogue and working harder to prevent proceeds of corruption from being invested in the EU.

Conclusions and Recommendations

The briefing concludes that true progress can only be made by introducing legislation similar to the US Sergei Magnitsky Rule of Law Accountability Act, which targets corrupt officials and their assets. Until then, Russia’s culture of corruption is likely to continue, undermining economic growth and stability.

Further Reading

  • “Recent Anti-Corruption Developments in the Russian Federation” by A. Goel and M.J. Dolan
  • “Russian Corruption: Domestic and International Consequences” by J. Pettengill
  • “Telephone Justice in Russia” by A. Ledeneva