The Ambiguous Effects of Russian Corporate Governance Abuses of the 1990s

An expert on Russian business analyzes the role of "informal corporate governance practices," that is, practices that are not entirely compatible with the formal rules of corporate governance. These include share dilution, asset stripping, transfer pricing, limiting shareholders' voting rights, and "bankruptcy to order" in Russia's corporate development during the 1990s. Taking Yukos Oil Company, Siberian (Russian) Aluminum, and Noril'sk Nikel' as case studies, the author examines the effect of ICGPs in the Russian economy of the 1990s. Analysis of these case studies is used to understand the complexities involved in post-Soviet enterprise restructuring and the fostering of Russia's corporate sector.