Please Note: Blog posts are not selected, edited or screened by Seeking Alpha editors.

CHARTIS MOSCOW - Fall of the Soviet Union

|Includes: BCIS, Brown & Brown Insurance (BRO), IAUGF
 Fall of the Soviet Union

The real breakthrough for criminal organizations began when in 1988 Soviet Union legalised private entrepreneurship, allowing free trade. However the new law, said nothing about regulations and security of market economy. As crude markets started forming, the most notorious being the Rizhsky market next to the Rizhsky Railway Station in Moscow, former street hooligans, notably the Lyubery, turned to racket. As the Soviet Union headed for its collapse, so too did the economy and resulted in a social decay. Desperate for money, many former government workers turned to crime, others joined the former Soviet citizens who moved overseas, and the Russian Mafia became a natural extension of this trend. Former KGB agents, sportsmen and veterans of the Afghan and First and Second Chechen Wars, now finding themselves out-of-work but with experience in areas which could prove useful in crime, joined the increasing crime wave.[6] Widespread corruption, poverty and distrust of authorities only contributed to the rise of organized crime. Contract killings, bombings and kidnappings reached an all-time high with many gangland murders taking place, a substantial number remaining unsolved. By the mid-1990s it was believed that the Jewish born "Don" Semion Mogilevich had become the "boss of all bosses" and "one of the most dangerous men in the world" of most Russian Mafia syndicates in the world.[7][8][9] By 1993 almost all banks in Russia were owned by the mafia, and 80% of businesses were paying protection money. In that year, 1400 people were murdered in Moscow, crime members killed businessmen who would not pay money to them, also reporters, politicians, bank owners and other opposed to them. The new criminal class of Russia took on a more Westernized and businesslike approach to organized crime as the more code-of-honor based Vory faded into extinction