#Putin's #Russia: #Corruption is forcing Russia’s best and brightest to flee the country - #Newsweek

At the heart of the problem is an unholy alliance between Russian law enforcement and the criminal world—a combination that over the last decade has created “an alloy of almost unbreakable force,” says lawyer Vladimir Pastukhov. Instead of enforcing the law, a large chunk of Russia’s police, secret police, and government bureaucrats spend their energies on looking out for vulnerable businesses that can be targeted for a corporate raid, Russian style. Unlike the Wall Street version, a Russian hostile takeover almost invariably involves a violent raid by armed and masked police using a warrant issued on flimsy charges, followed by the confiscation of company documents, computers, and archives with a view to stealing the business and intimidating its lawful owners. The pattern was established in 2003 when the Kremlin dismembered Russia’s biggest oil company, Yukos, and jailed its head, Mikhail Khodorkovsky, and a slew of executives and lawyers based on dubious evidence. “Russian bureaucrats figured, if Putin can do it, so can we,” says a lawyer connected to Yukos who is contractually forbidden from speaking to the press.



