What happened with the Russian mafia?

The collapse of the Soviet Union in the early 1990s was a pivotal moment for the rise of the Russian mafia. As the Soviet state transitioned from a centralized economy to privatization, crime lords and former Soviet officials rapidly acquired wealth and power. They capitalized on the situation by buying up state assets through a voucher system, using their ill-gotten gains in dollars and euros to amass significant portions of newly privatized companies 1.

The result was the emergence of Russian oligarchs who controlled major industries such as energy and metals. Figures like Oleg Deripaska rose to prominence, often through violent means during events like the "Aluminum Wars," which were marked by intense and deadly competition 1. The inequality and corruption deeply affected Russian society, creating a wealth gap where the richest citizens became exponentially wealthier than the average person 2.

The Russian mafia also had substantial influence outside Russia, as illustrated by stories of individuals narrowly escaping their clutches while conducting business in regions like Vladivostok 3. This mafia-state interconnectedness extends to cybercrime, where operatives from Russian intelligence agencies may double as cybercriminals, using their skills to conduct cyber thefts 4.

Experts describe Russia as a "Mafia state," where high-level corruption and criminality are rampant, with even Western businesses struggling to comprehend the extent of the corruption they face when dealing with Russian enterprises 5. Overall, the Russian mafia's influence is far-reaching, impacting both domestic and international arenas significantly.