Russia: Corruption ‘price list’

Corruption in Russia is neither a new development nor a surprising one. However, now even President Putin as well as his likely successor Medvedev mentioned the corruption problem in recent public speeches. Of course it is a bit awkward for Putin to admit that corruption has been flourishing during his term in office, so it might be a rather tactical move to support his successor… and might even lay the ground for some politically motivated arrests later this year…

Coming back to the topic of corruption: According to the Eurasia Daily Monitor, two Russian research institutes, namely the Institute for Public Projects (INOP) and the Institute for Comparative Social Research (CESSI)  published a study called “The Nature and Structure of Corruption in Russia” which also contains a very interesting (and expensive!) ‘price list’ for all sorts of bribes:

According to the list, a place on a party list for a State Duma election cost $2 million-$5 million while getting legislation introduced in the Duma for consideration costs $250,000. For a state monopoly to win a “goszakaz,” or state purchase order, it must pay 20% of the order’s total value; for it to participate in a national project, it must pay 30-40% of the project’s total value; for it to get a line item in the federal budget, it must pay three percent of the project’s total value.

A large private company must pay $1 million-$5 million to get a license, prevent a license it has from getting revoked or get a competitor’s license revoked. For a large private company to win a “goszakaz,” it must pay a third of the order’s total value. For a small business to ensure that a transaction is carried out, it must pay a third of the transaction’s value; in order to get “help” from officials, a small business must pay 10% of its total profits. Getting customs duties reduced costs 30-50% of the sum on which the duties were assessed; getting tax arrears written off costs anywhere from $1000 to 30-50% of the sum of the arrears.

To get the Central Bank to begin examining documents costs a bank $500,000, while winning the right to transfer federal budget funds costs a bank five percent of the sum of the transfer. To win a case in a civil court or an arbitration court costs 10% of the awarded damages. To win a grant costs a charitable foundation 20-30% of the value of the grant. Finally, according to the INOP-CESSI study, to get a television “talking head” to criticize an official costs $20,000 a month.

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