THE RUSSIAN MAFIA“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.”
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
RECENT TRANSFORMATION: DIGITIZATION• 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 RUSSIAN MAFIA STORIES IN THE NEWS• The Canadiens’ Kostitsyn Brothers Involved In An Investigation Surrounding Organized Crime• Fired Weathermans Hangover Helps Expose Rising Russian Mafia• Russian mafia whistleblower, 44, found dead in UK• Russian Mafia vs. Police Road Rage