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Russia’s Raiders

Posted by Matt in June 7th, 2008

Companies are paying public officials to raid the offices of business rivals and subject them to criminal investigations

It seemed like any other workday at Togliatti Azot, a giant chemical factory in Russia’s Samara region, on the Volga River 600 miles east of Moscow. Engineers were on their morning rounds, and union representatives had just finished a talk about financial support for newlyweds. Then around 11 a.m., dozens of men dressed in camouflage and toting automatic weapons charged into the administration building. “We thought it was a terrorist attack,” Sergei Korushev, the plant’s deputy director, says of the September, 2005, raid.

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BP: Roughed Up in Russia

In 2003, when BP (BP) teamed up with Russian tycoons to create the multibillion-dollar joint venture TNK-BP, President Vladimir Putin hosted a glitzy reception to toast the landmark deal. But now the welcome mat appears to be wearing thin. In recent months, BP’s Russian operations have become the target of sustained pressure from the authorities, from visa difficulties to police raids.

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Video: Russia - Cracking corruption

Russia - Cracking corruption

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Map for Moscow, Russia

[Countries link to CIA Factbook. States link to Wikipedia.]


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