Business and Politics in the Russian Regions

By the end of Putin's first term in office, Russia's regional authorities and representatives of large corporations had established effective non-institutional relationships. In response to these dynamics, the Kremlin launched a range of policy initiatives aimed at formalizing the political dialogue between the two sides and making their unofficial interactions less mutually beneficial. With the exception of changes that took place in the regional electoral systems, such policies have been predominantly borrowed from well-functioning Western models. However, it is clear that the political style and the context within which such ideas have been implemented have subverted the initial intentions and led to the emergence of alternative, and at times more sophisticated, forms of relational informality. The relationship between business and the Russian state continues to evolve, and depends on the intangible factors of culture and style as much as on institutional structures and rules.