Russia has witnessed rapid economic growth over the past several years. Following the global financial crisis and a decline in foreign direct investment, the Russian government has come forward with a massive economic stimulus package, but companies continue to report that they are faced with a complex business environment and a high volume of demands for bribes. Thus, the Association of Russian Attorneys for Human Rights reports that corruption generates an amount equivalent to 50% of Russia's GDP. Since President Medvedev took office in 2008, the fight against corruption has increasingly come to involve also higher-level officials and political figures. In the December 2011 parliamentary elections, Putin's United Russia won with less than 50% of the vote, while the Communist Party came second. International observers from the OSCE noted numerous violations of electoral law, including ballot stuffing. Following the results of the election, tens of thousands of protesters demonstrated in Russian cities against alleged ballot-rigging in parliamentary elections and demanded a re-run, as reported in a December 2011 article by BBC News. A large number of protesters was arrested and jailed in the aftermath of the election.

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Positive developments in relation to corruption and investment:

• In December 2008, the Duma passed a package of anti-corruption legislation, including a more simplified Criminal Code to make it easier to bring corrupt judges to account.
• In 2008, the State Duma passed a bill intended to reduce the multitude of inspections and red tape that companies are subjected to. The bill seeks to further limit the number and total duration of planned state inspections of a company, as well as ban law enforcement agencies from carrying out tax inspections without a request from tax authorities and from confiscating documents without providing companies with stamped photocopies.
• In April 2010, the President approved an Anti-Corruption Strategy 2010-2011, which includes a paragraph on criminalising foreign bribery.
• During 2010, an income and asset declaration requirement has been enforced for judges, the government has instituted a mandatory anti-corruption training for public officials, while a 2011 bill debating Article 20 of the United Nations Convention Against Corruption on 'illicit enrichment' of public officials has been delayed.

Risks of corruption:

• Large companies cite corruption as a major obstacle to doing business in Russia. Problems include the non-transparent and inconsistent application of laws and regulations, and the weak enforcement of laws and court decisions.
• In the area of licensing and permits, companies complain of multiple inspections, many of which are arbitrary, and red tape, both contributing to a high prevalence of corruption in this sector.
• The public procurement sector remains among the most corrupt sectors in Russia, with corruption in government tenders reportedly costing the government around USD 32 billion or 20% of government expenditure.