Russia Country Profile
Land Administration
Individual Corruption
According to Transparency International's Global Corruption Barometer 2010, a considerable amount of Russian households point to the interaction with land authorities as an area where bribes are often demanded. Moreover, households perceive land matters to be distorted by grand and political corruption, according to Transparency International's Global Corruption Barometer 2009.
Business Corruption
The Bertelsmann Foundation 2010 reports that although the legal provisions related to the acquisition of property are practical; they are not, however, consistently implemented nor adequately safeguarded by law, especially against state intervention. For example, in 'strategic sectors' such as the oil industry, the state seems to systematically reduce the share of private owners through administrative pressures, which leads either to confiscations or to negotiated sales. In turn, such an environment could potentially fuel corruption.
Similarly, according to the US Department of State 2011, although transparency in land matters and respect for property rights are gradually improving, they still remain key concerns for foreign investors and companies. Accordingly, while the government has taken important steps to improve the legal framework for property protection, effective enforcement remains a challenge.
Political Corruption
According to CEFIR 2007, an increase in procedural transparency for both the purchasing and leasing of land has encouraged a significant decrease in the incidents of bribe pressure on the part of bureaucrats during these procedures.
According to Freedom House 2011, state takeovers of key industries, coupled with large tax penalties imposed on select companies, have illustrated the precarious nature of property rights in the country, especially when political interests are involved.
According to Transparency International's Global Corruption Report 2009, the Moscow City district prosecutor, Vladimir Samoilov, as well as several other top prosecutors were found to have falsified cases against private companies and illegally confiscated their property; the value of the property was estimated to be as much as USD 22 million.
Frequency
The World Bank & IFC: Doing Business 2012:
- It takes an average of 5 procedures and 42 days at a cost of 0.3% of the property value to register property and secure property rights.
World Economic Forum: The Global Competitiveness Report 2011-2012:
- Business executives give the protection of property rights in Russia, including financial assets, a score of 2.8 on a 7-point scale (1 'very weak' and 7 'very strong').
Transparency International: Global Corruption Barometer 2010:
- More than 20% of the households surveyed reported to have paid a bribe to land services in 2009.
Transparency International: Global Corruption Barometer 2009:
- 16% of the households surveyed reported to have paid a bribe to land services in 2008.
- 50% of households consider grand or political corruption in land matters to be a 'very serious problem'.
- 46% of respondents consider bribes to land authorities to obtain favourable decisions a 'very serious problem' in Russia.
CEFIR: Monitoring of the Administrative Barriers to Small Business Development in Russia 2007:
- 80% of companies surveyed that bought the premises from the government spent an average of approximately 1.5 months on the procedure.
- The remaining 20% of companies surveyed spent around six months on the procedure.





