By Rachel Ehrenfeld and Alyssa A. Lappen
Washington Times | June 9, 2006

Confronted with criticism over its increasingly restrictive policies, lack of economic freedom and growing corruption, Russian Economics Minister German Gref boasts that direct foreign investment in Russia grew 100 percent in the first quarter of 2006.

But jubilant investors should beware. A recent report from the Council on Foreign Relations on “Russia’s Wrong Direction” warns “that anyone can become vulnerable when the state bureaucracy, either at the president’s direction or merely with his support, decides to seize private assets.” U.S. doubts regarding Russia’s accession to the World Trade Organization reflect those concerns.

To make Russia’s opaque markets more palatable, Russia is now paying millions to the New York-based PR firm Ketchum. Considering Russia’s level of corruption, the PR firm faces a daunting task.

An October 2005 survey by the Russian think-tank Indem found such a large increase in the volume of business-related bribes that their total exceeded twice Russia’s federal budget. Russian corruption is symptomatic of problems, including “a neutered parliament, subservient (and sometimes intimidated) media and a suborned judiciary,” says Indem’s Georgy Satarov. Continue reading “Russia after dark” →

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