Enjoying ad-free content?
Since July 1, 2024, we have disabled all ads to improve your reading experience.
This commitment costs us $10,000 a month. Your support can help us fill the gap.
Support us
Our journalism is banned in Russia. We need your help to keep providing you with the truth.

Financial Crime At $158Bln

The Central Bank and the Interior Ministry have calculated the total illegal turnover in the financial sector during 2011 to be 5 trillion rubles ($158 billion), about 10 percent of Russia's annual gross domestic product.

According to research carried out by the Interior Ministry, there were 56,700 crimes committed between January and November 2011 that had an impact on the financial or credit industries.

The figures were confirmed last week by police colonel Oleg Borisov, head of the Interior Ministry department responsible for financial sector economic crime, Interfax reported.

A total of 653 cases of money laundering were registered in the first 11 months of 2011 with the amount of illegally-earned money caught in the process of being legalized amounting to 1.2 billion rubles between January and September. Of this figure, 33.4 percent was the result of fraud, 32.4 percent from drug trafficking and sales, 9.6 percent from illegal credit and 6.2 percent from smuggling.

Borisov also highlighted the growing problem of bankruptcies precipitated by criminal elements seeking to make a profit on the collapse of a business. More than 500 such crimes were detected in 2011.

He gave the example of one individual accused of criminally bankrupting an oil and chemical company in the Omsk region. The suspect, "intentionally transferred assets to firms under his control that led to the bankruptcy [of the original company]," Borisov said. "As a result the company's creditors had 7 billion rubles worth of damage inflicted on them."

… we have a small favor to ask. As you may have heard, The Moscow Times, an independent news source for over 30 years, has been unjustly branded as a "foreign agent" by the Russian government. This blatant attempt to silence our voice is a direct assault on the integrity of journalism and the values we hold dear.

We, the journalists of The Moscow Times, refuse to be silenced. Our commitment to providing accurate and unbiased reporting on Russia remains unshaken. But we need your help to continue our critical mission.

Your support, no matter how small, makes a world of difference. If you can, please support us monthly starting from just $2. It's quick to set up, and you can be confident that you're making a significant impact every month by supporting open, independent journalism. Thank you.

paiment methods
Not ready to support today?
Remind me later.

Read more