The illicit financialisation of Russian foreign policy: mapping the practices that facilitate Russia’s illicit financial flows
May 2022
Research Paper 03
Dr Catherine Owen, University of Exeter
Dr Tena Prelec, University of Oxford/University of Rijeka
Dr Tom Mayne, Chatham House/ University of Oxford
SOC ACE Project: Illicit finance and Russian foreign policy: new dynamics and linkages
PUBLICATION SUMMARY
This paper categorises the practices used by Russian Kremlin-connected actors to advance Russian illicit financial flows (IFF) and depicts them, as well as their relationships to one another and to IFF in a novel framework. It argues that conclusively identifying and tracing IFF in authoritarian environments is very difficult due to the politicised nature of authoritarian legal systems and the inevitable data gaps. Our framework seeks to remedy these challenges by mapping malign practices, enacted by Russian actors in collaboration with elite overseas partners to create conditions friendly to Russian IFF, across three vectors:
political activities, which blur formal and informal means of diplomacy and political influencing to promote Russia-friendly candidates and political parties;
media activities, which blur truth and falsehood by constructing and disseminating narratives painting Russia and pro-Russia actors in a positive light; and
political violence, which blurs legitimate and illegitimate use of force to secure investment projects, destabilise regions and undermine or eliminate opposition.
We argue that the deployment of these practices is deeply connected to Russian foreign policy objectives, which are built in part on informal and patronal relationships with domestic elites. Thus, the principal actors in Russian foreign policy-making and -doing are not state institutions but elites, intermediaries, private companies, and organised crime groups.
