Since the collapse of the Soviet Union in 1991, Russian Organized Crime (ROC) groups have become increasingly involved in drug trafficking worldwide, to include trafficking in cocaine and Ecstasy.1 For definition purposes, ROC is an umbrella term, which includes ethnic groups from the 15 members of the New Independent States (NIS); some groups identified as ROC may in fact be Ukrainian or Lithuanian, while others may include criminals from more than one country.2 These groups are involved in a wide variety of crimes, including drug trafficking, fraud, bribery, contract murder, trafficking in women and prostitution, money laundering, weapons trafficking, and extortion. They control banks, casinos, and nightclubs in Russia. Drug trafficking is just one of many illicit activities, not their primary criminal activity.
One remaining legacy of the former Soviet Union is the existence of powerful criminal groups. These groups are deeply entrenched in the Russian culture. During the Soviet era, they ran the black market and supplied every conceivable item that the legitimate state economy could not. Also during this era, most Russians tolerated and, in many cases, embraced these organized crime (OC) groups.
There are probably hundreds of criminal gangs in Russia that have exported their criminal activities to the United States and most of the rest of the world. Arrest statistics and investigations show that most of the Russians involved in international drug trafficking have emigrated to other countries, taking their criminal expertise with them. The majority of ROC groups involved in drug trafficking are found in the Baltic States (Estonia, Latvia, Lithuania), where they traffic in a variety of drugs, and in the Nordic countries of Finland and Sweden, where they traffic mainly in amphetamine. ROC groups cooperate with OC groups from other countries, such as the Vilnius Brigade in Lithuania, and Colombian cocaine trafficking organizations that transport cocaine to Russia and Europe. ROC groups also allow other trafficking groups to sell their drugs in Russia for a percentage of the profit. For example, Nigerian groups operating in Russia traffic in South American cocaine and Southeast and Southwest Asian heroin.
The organizational structure of ROC groups ranges from those with a defined leadership and subordinate roles to those that are small and loosely structured, with no set hierarchy. The number of members also varies from organization to organization. The most established groups are headed by individuals called Vory-v-zakones or “thieves-in-law.” These leaders, wielding authoritarian control, assign specific members duties, such as oversight of illicit financial activities, security, etc.
ROC groups have found a niche as transporters of cocaine from South America to Europe and, to a lesser extent, the United States. Almost all of the cocaine smuggled by ROC groups is destined for Western Europe; these groups sometimes transit Russia en route to Europe. The U.S. Drug Enforcement Administration (DEA) Moscow Country Office has conducted or cooperated with investigations of metric-ton quantities of cocaine being smuggled to Russia and ultimately destined for Europe. A continuing decline in the availability of cocaine in Russia is due both to its relative high cost (between US$120 and US$150 per gram), compared to other drugs in the country, and the near collapse of the Russian economy in August 1998.
Russian cocaine traffickers have increasingly become close associates of Colombian cocaine trafficking organizations in South America. Colombian traffickers sell multikilogram and multihundred-kilogram quantities of cocaine to ROC groups, who assume the risk of transporting the drug on maritime vessels to Europe. ROC groups and Colombian traffickers also coordinate the transportation of kilogram-quantities of cocaine on commercial flights from South America through Russia to Western Europe. Some cocaine from South America transits the United States en route to Russia. For example, on May 8, 2000, U.S. Customs Service Inspectors at the Miami International Airport seized approximately 20 kilograms of cocaine from a package sent from Medellin, Colombia. The cocaine was destined for Moscow.
A typical method Russian
traffickers use to transport cocaine is by secreting it in automobiles
or machine tools. The cocaine is then smuggled from South America
through the United States to Russia and Europe. For example, a Russian
group in California smuggled 26 kilograms of cocaine in a car that was
shipped to Moscow through Belgium. In another instance, 64.5 kilograms
of cocaine were smuggled inside a machine tool that traveled from
South America through Miami, Florida to Moscow. Russian citizens
smuggle an average of from 50 to 60 kilograms of cocaine per shipment
through Russia to Europe.
The largest seizure of cocaine in Russia, to date, took place in February 1993, when authorities seized approximately 1 metric ton of cocaine near the Russia–Finland border. The cocaine, concealed in a shipment of canned meat and potatoes, was packed within the canned goods. The shipment, which originated in Colombia, was transported in Finland to the Russian border by truck. Intelligence indicated that the cocaine was destined for Western Europe. In this venture, Colombian, Georgian, and Israeli traffickers combined their resources into one large drug shipment.
In August 1997, Russian authorities seized 200 kilograms of
cocaine in Bratsk, Siberia. The cocaine was shipped by container from
Puerto Cabella, Venezuela, to St. Petersburg, Russia. From there, the
container was loaded onto a train traveling to Bratsk. The drug was
concealed in cans of pineapple; each can contained nearly 200 grams of
cocaine. Several local OC figures in Bratsk were arrested, including a
regional crime boss.
Ethnic groups from the NIS play active roles in drug trafficking in Russia. Between January and September 2000, 182,000 drug crimes were committed in Russia (a 12-percent increase from the same period in 1999)—8,500 by criminal groups from Russia and the NIS (a 17-percent increase from the same period in 1999). Russia’s State Customs Committee indicates that criminal groups from Eastern Europe also are involved in drug trafficking. Statistics on the growth of OC groups in Russia are skewed because the Russian Government defines any group of criminals as an OC group. At the beginning of 2000, more than 10,000 OC groups with over 60,000 members were reported to be operating in Russia. Between January and September 2000, Russian police officials identified 89 drug distribution groups—28 of which had international contacts.
In Russia, criminal groups connected with the drug trade are relatively disorganized in nature. However, organizations trafficking in cocaine have tended to have a more sophisticated international network in place, developing contacts directly with organizations in cocaine source countries, such as Colombia and Peru. Ethnic Russian criminal groups control most wholesale drug trafficking activities and distribution in Russia, with active participation of members of other ethnic groups from other NIS and other countries. Small-time drug dealers who tend to operate alone or in small groups are responsible for retail drug trafficking and distribution in Russian cities. They often consume illicit drugs themselves. This is the case in Moscow, where most distribution groups are small, local, and loosely knit associations of street dealers.
In Russia, control over various types of drugs is divided among different groups who establish proprietary niches in order to avoid disputes. Afghans, Tajiks, and other Central Asians mainly smuggle Afghan heroin through Kazakhstan into European Russia and western Siberia. Nigerians and other Africans traffic mostly in Southeast and Southwest Asian heroin. Vietnamese and Chinese traffickers smuggle Southeast Asian heroin, opium, and ephedrine into eastern Siberia, whose inhabitants manufacture methamphetamine for personal use. Russians are responsible for smuggling South American cocaine into and through Russia, while Ukrainians traffic in cannabis products from other NIS countries.
Prior to the events of September 11, 2001, heroin was increasingly being smuggled into Russia from Afghanistan via Tajikistan. This caused a significant drop in black market prices in Russia between 1999 and 2000. Heroin prices dropped from an average of US$70 per gram in 1999, to US$10 per gram in 2000. Eighty percent of the heroin seized in Russia in 2000 came from Afghanistan. The United Nations Office of Drug Control and Crime Prevention estimated that the amount of heroin smuggled into Russia from Afghanistan in 2000 more than doubled from 1999. More than half of the heroin seized was destined for other locations, probably Western Europe. The situation since September 2001 remains fluid and unsettled, yet trafficking through the region appears to be ongoing.
Afghan heroin transported into Russia has been most often controlled by Afghans, Tajiks, or West Africans, and overseen by the territorial ROC groups. Heroin is showing the most dramatic increase in popularity as a drug of abuse, alarming members of Russia’s legislative body, the Duma; the police; and customs officials. Between January and September 2000, 655.5 kilograms of heroin were seized in Russia; an increase from 279.1 kilograms from the same period in 1999.
The head of Russia’s State Customs Committee stated in March 2000 that the flow of Afghan heroin transiting Tajikistan had become the number-one challenge for Russian customs officials. During the first 9 months of 2001, along the Afghanistan-Tajikistan border, 3 metric tons of opium, and 3.6 metric tons of heroin were seized by Russian authorities. This represents an almost 50-percent increase over the same peroid in 2000. Russian authorities have documented an increase in the use of Tajikistan and in the number of Tajik citizens smuggling heroin to various cities in Russia. The country’s biggest cities, Moscow and St. Petersburg, have been most affected by this flow of heroin. Nigerian traffickers have recruited Russian citizens to transport Afghan heroin from Pakistan and Burma-produced heroin from Thailand to Russia. Russia also continues to be a transit point for Afghan heroin being smuggled through Central Asia to major Western European population centers.
The Solntsevo group, based in Moscow, is currently the most significant and powerful ROC group in Russia. This group reportedly has up to 4,000 members and operates worldwide. Solntsevo operations have been noted throughout Europe, the United States, and recently in South America. This group reportedly works with Colombian traffickers to supply cocaine to Russia for domestic consumption and to transport the drug through the country to European markets. The group has also smuggled Afghan heroin through Russia to Europe.
Another significant ROC group is the Izmailovo group, which is also based in Moscow. It operates throughout Russia and Europe and recently has been involved in drug trafficking in South America. The group has two co-leaders and approximately 1,000 members. It is organized into two wings (one for each leader), each possessing several brigades. This group reportedly is involved in the trafficking of women, extortion, money laundering, and drug trafficking.
National political figures and the media portray St. Petersburg as the “crime capital of Russia,” and compare it to Chicago in the 1920s and 1930s. Whether this is accurate or not is debatable, but the fact that powerful ROC groups are deeply imbedded in St. Petersburg’s political and business life is indisputable. ROC existed during the Communist era, but has really flourished over the past 10 years. ROC permeates economic activity in the region, and these syndicates are at the forefront of criminal activity. Over the last few years, the nature of the syndicates’ activities has evolved. The principal criminal organizations have taken over legitimate businesses, invested in others, and “legalized” many of their activities.
In 2000, as a result of an enforcement operation against a ROC group in St. Petersburg, three drug traffickers were arrested. The criminals, having international criminal ties, had long been supplying synthetic drugs to night entertainment establishments in the city. Authorities seized 2,500 Ecstasy tablets and 330 grams of amphetamine.
ROC in St. Petersburg is dominated by three principal crime groups: the Tambov, Kazan, and Malyshev groups. Another significant but smaller group is the ethnic Chechen gang. The Tambov and Malyshev groups do not appear to be involved in drug trafficking. The Kazan group, a composite of small gangs from Kazan city, began its operations in St. Petersburg at the end of the 1980s. It is active in the timber, banking, and fuel industries. It is also reputed to be active in traditional OC enterprises such as gambling, prostitution, and drug trafficking. The Chechen group is organized along ethnic lines and has strong ties to Chechnya, a republic within Russia. This group capitalizes on political unrest and lawlessness in the region. It is involved in smuggling contraband, such as weapons and drugs, into St. Petersburg.
Merchant vessels and crews left idle after the collapse of the Soviet Union, along with continued economic woes of Russia and other states of the former Soviet Union, provide a fertile ground for traffickers to buy vessels and recruit smuggling crews. For example, Russian and Ukrainian sailors have been used to transport cocaine shipments from South America to the United States and Europe. These sailors have crewed vessels containing metric-ton quantities of cocaine. The following seizures illustrate the involvement of Russians and the use of Ukrainian crews aboard merchant vessels smuggling cocaine:
ROC groups continue to grow in the Baltic States of Estonia, Latvia, and Lithuania. Estonian police officials continue to identify ROC groups as the most significant trafficking groups operating in Estonia. Many of the individuals with reported connections to ROC are ethnic Russians who remained in Estonia following its independence from the former Soviet Union.
ROC groups in Estonia are involved in the importation and distribution of hashish from Ukraine and Central Asia, and opium poppy straw from Ukraine, Lithuania, and Latvia. The poppy straw is converted by addicts into an injectable acetylated opium solution, known as “Polish kompot” or “liquid heroin.”
Estonian authorities have identified the newest organized group of traffickers as an ethnic Azerbaijani group smuggling large quantities of high-purity (over 90 percent pure) white Afghan heroin across the border from St. Petersburg, Russia, to Estonia. Distribution is made in conjunction with traditional ROC groups. Estonian officials report that Ecstasy from the Netherlands, Poland, Lithuania, and local sources is becoming more available in the larger cities of Estonia, especially in Tallinn, the capital.3 Police report that dealers appear to be young ethnic Estonians who have connections with Estonian traffickers known to be operating in other parts of Europe.
In Latvia, authorities are realistic about the continuing influence of criminals with ties to ROC groups. Nordic counterparts suspect that Latvian companies are being used as fronts by ROC groups to smuggle drugs into Latvia. Latvian police identify members of crime groups in the NIS as the most active network of smugglers. These groups include ethnic Russians, Azerbaijanis, and Latvians, connected to outside traffickers, such as Dutch nationals who provide hashish, and a very broad category the Latvians refer to as “gypsies.” Latvian traffickers transport hashish from Ukraine, Central Asia, and the Netherlands to Latvia. Latvian officials state that many Azerbaijani nationals have been involved in the transportation of hashish and marijuana from Afghanistan and Central Asia to Latvia. These officials also indicate that these nationals have smuggled high-purity Afghan heroin from St. Petersburg into the country. Latvian authorities reported an increase in overdose deaths from Afghan heroin in 2000.
Small seizures of cocaine continue to be made in Latvia, indicating the increased availability of cocaine there. Cocaine arrests appear to be concentrated among the younger members of ethnic ROC groups, who are known for trafficking drugs into the country.
There are several large ethnic ROC groups operating in Lithuania. Authorities identify these groups as the most significant trafficking groups in Lithuania. While a large percentage of these individuals are ethnic Lithuanians, they are closely allied with ROC groups. Authorities report on the continuing difficulties they experience with ethnic Russian criminals, who are allied with Lithuanian OC groups. Chief among these groups is the Vilnius Brigade, which is involved in a broad spectrum of illicit activity that includes drug trafficking. ROC groups are also heavily involved in the movement and distribution of poppy straw from Ukraine, southern Poland, Latvia, and local sources, and amphetamine from Poland and possibly Ukraine.
There is at least one possible instance of a ROC group attempting to smuggle cocaine from South America to Lithuania. On February 9, 2000, a Lithuanian woman was arrested in possession of 6 kilograms of cocaine at the airport in La Paz, Bolivia. Because she could not by herself possess the financial resources to obtain such a significant quantity of cocaine, Lithuanian authorities believe the woman was recruited as a courier by members of a ROC group.
Authorities in Belarus continue to express concerns about increased activity of ROC groups in the country. The common border with Russia and the shared Russian language enable ROC groups to operate easily in Belarus. Russian groups are the major drug traffickers in the country. Authorities believe Belarus is primarily a transit point for Afghan-produced heroin from Central Asia transiting Russia and Ukraine en route to Western Europe.
Drug trafficking activities in Moldova are primarily conducted by smaller domestic crime groups operating independently of each other. However, the Ministry of Interior notes with concern the number of Russian and Ukrainian organizations making inroads into the Moldovan drug market. Other traditional groups operating in Moldova include groups from Kazakhstan and Georgia.
While not necessarily members of ROC groups, Russians, Ukrainians, and citizens of the NIS have been recruited by Nigerian traffickers to transport heroin from Thailand and Pakistan to other countries. For example, on July 10, 2000, a Russian woman, recruited by a Nigerian trafficker, was arrested in Moscow in possession of 550 grams of heroin after a flight from Bangkok, Thailand.
In Finland, authorities regard criminals with ties to ROC as the most serious drug trafficking threat in the country. These officials identify an increasing number of arrested individuals with connections to ROC groups. These groups are responsible for the trafficking of amphetamine from the Baltic States, as well as the distribution of hashish from Ukraine and probably Central Asia, and heroin from Afghanistan.
Finnish officials report that ethnic Russian criminals have bought Afghan heroin from an ethnic Azerbaijani group in the St. Petersburg area of Russia and have smuggled it into Finland. Russian counterparts report that the Azerbaijani group smuggled the heroin from Afghanistan through Russia and other NIS countries to the Baltic States and Finland.
Finnish authorities believe that individuals from the Baltic States, particularly from Estonia, have made significant inroads into the Finnish drug distribution market for hashish, heroin, and amphetamine. Authorities express their concern over the increasing number of Estonian citizens involved in smuggling drugs, particularly amphetamine, from the Baltic States to Finland, and Afghan heroin, probably via the Baltic States. Lithuanian nationals are also increasingly involved in this traffic.
Finnish authorities remain concerned about the transshipment of drugs, especially amphetamine, smuggled from the Baltic States, in particular Estonia, to Finland. A large percentage of amphetamine is smuggled into Finland on the ferry system connecting Finland to the Baltic States, especially on the daily ferry from Estonia and the thrice-weekly ferry from Riga, Latvia. For example, in July 2000, a Lithuanian citizen was arrested in a vehicle with 10 kilograms of amphetamine on a ferry in Helsinki, Finland, which arrives daily from Tallinn, Estonia. Some amphetamine remains in Finland for local consumption, but a large portion transits Finland en route to Sweden.
Police authorities in Sweden report that immigrants from the Baltic States and elsewhere in the NIS continue to be a major concern. These groups are most often involved with the smuggling of amphetamine into Sweden from Poland and possibly Ukraine. Ethnic Russians and citizens from the Baltic States use the Baltic ferry connection to smuggle amphetamine into the country, most often secreted inside passenger vehicles or trucks. Swedish authorities believe that there are significant facilities in the Baltic States producing amphetamine for transport to Sweden.
In the Czech Republic, authorities state that Russian-speaking criminal groups have made some inroads into drug trafficking, although their principal criminal activity is concentrated on prostitution and alcohol and cigarette smuggling.
While Turkish and Albanian traffickers continue to dominate the heroin trade, an alarming trend has been noticed. It appears that Russian-speaking crime syndicates are making working agreements with ethnic Albanian traffickers. Often, members of these groups are seen in bars talking and socializing with one another. Czech customs officials report that white heroin from Thailand is controlled by these Russian groups. Authorities also note that while “crack” cocaine is not a problem in the Czech Republic, when they do find crack, Russian-speaking individuals are usually involved in its distribution.
Russian-speaking groups are increasingly involved in the trafficking of psychotropic drugs. Russian, Ukrainian, and Dagestan* groups have been identified not only as heroin distributors, but also as methamphetamine traffickers. Pervitin, known as “Kristall,” is a stimulant made from ephedrine and produced in a number of small clandestine laboratories. This product is sold primarily on the Czech market, but is also smuggled to Germany and Canada. Czech Kristall can yield from 150- to 200-percent profit for the seller in Germany. The purity of Kristall has increased, which may be the result of Russian-speaking traffickers and other groups being involved in its manufacture.
In Poland, Russian drug traffickers appear to have substantial influence. Russian heroin traffickers were noted for the first time in the Slovak Republic in 1999. They are smuggling unusually high-purity heroin of unspecified origin into the country. Slovak authorities indicate that Russian traffickers became more active in heroin trafficking in 2000.
The Brigades from the Solntsevo and Izmailovo ROC groups operate in Italy, mainly in Lombardy. These groups are involved in drug trafficking and money laundering. According to Greek authorities, Greece is experiencing an increase in ROC activities. Over 100,000 Russians reportedly live in Athens, with more living in Thessaloniki, in northern Greece. ROC groups in Greece are involved in criminal activities such as, drug trafficking, prostitution, and money laundering.
ROC groups initially entered the U.S. drug trade by effectively marketing drug paraphernalia, particularly in the northeastern United States. While ROC groups smuggle limited quantities of cocaine and heroin into the United States, they are major suppliers of steroids and Ecstasy. ROC groups play a significant role in the importation of steroids from Eastern Europe into Canada, New York, and other areas of the United States.
Israeli and Russian Ecstasy trafficking organizations are among the main suppliers of Ecstasy in the United States at this time. According to the Israeli National Police, Israeli and Russian traffickers are typically in their mid-20s, making them younger than most violators associated with criminal groups. These individuals are well educated, extremely mobile, and multilingual. These organizations are involved in the transport of Ecstasy from the Netherlands and Belgium to the United States.
ROC groups occasionally purchase cocaine in the United States for export to the European drug market. They also transport cocaine from South America to Europe and Russia, sometimes transiting the United States, particularly Florida. They obtain Southwest Asian heroin in Europe for export to the United States. The price differential between cocaine and heroin enables these groups to reap significant profits from this practice, since cocaine is more expensive in Europe and heroin costs more in the United States. ROC groups also launder drug proceeds, using U.S. financial institutions, as well as investing in the U.S. real estate market, particularly in South Florida and New York.
Although ROC groups are significant sources for steroids and Ecstasy, they are not, overall, major players in the U.S. drug trade at this time. Other groups, including Colombians and Mexicans, remain the primary suppliers of cocaine, marijuana, and heroin to the United States. Dominicans are also involved in cocaine and heroin trafficking, while Mexican groups are major suppliers of methamphetamine to the U.S. market.
ROC groups operate throughout Canada, principally in Toronto, Ontario, and are involved in a broad range of criminal activities, including drug trafficking. These activities historically have included the smuggling of Colombian cocaine to Canada for local distribution and for onward transport to Eastern Europe and Russia, and the smuggling of steroids from the NIS to Canada for local consumption and onward transport to the United States. ROC is a priority for Canadian law enforcement authorities, particularly the Royal Canadian Mounted Police.
Since the mid-1990s, the DEA Moscow Country Office has seen the impact of drug trafficking by Russians rise worldwide, largely due to increased immigration. This highlights the mobility of Russian criminals to countries where drug trafficking is more profitable. However, this movement appears to be more significant because Russian criminals had not been observed outside of Russia prior to the fall of the Soviet Union.
ROC groups will likely increase cooperation with other ethnic groups such as Colombian cocaine traffickers and Israeli organizations involved in the production and smuggling of Ecstasy into the United States. Recognizing that cocaine trafficking in Western Europe is a lucrative business, they will continue to smuggle cocaine to markets there, in conjunction with Colombian organizations.
ROC groups are not major drug traffickers in the United States at this time. However, as the influence and role of these groups evolve, their drug trafficking connections will increasingly cross international and ethnic boundaries. Through these global connections, they will be able to facilitate drug shipments from drug source countries to consumer populations in Western Europe and the United States.
It is very likely that ROC groups with interregional and international links will intensify their criminal activities. Officials at the highest levels of the Russian Government have expressed fear that ROC activities will soon threaten the security of Russian society.
1The Department of Justice defines organized crime as a “self-perpetuating, structured, and disciplined association of individuals or groups, combined together for the purpose of obtaining monetary or commercial gains or profits, wholly or in part, by illegal means, while protecting their activities through a pattern of graft and corruption.” Organized crime groups often have an ethnic base for their membership, involving two or more persons, and they commit or threaten to commit acts of violence or other intimidating acts such as, extortion.
2The NIS are countries of the former Soviet Union: Armenia, Azerbaijan, Belarus, Estonia, Georgia, Kazakhstan, Kyrgyzstan, Latvia, Lithuania, Moldova, Russia, Tajikistan, Turkmenistan, Ukraine, and Uzbekistan.
3As it is increasingly common for amphetamine derivatives to be compressed into tablets and sold as Ecstasy, INTERPOL uses the term Ecstasy for all tablets and capsules predominantly containing one or more psychotropic active agents derived from B-phenethylamine group or combinations of them.
4The Nordic Countries include Denmark, Finland, Iceland, Norway, and Sweden.
*Dagestan is a republic within Russia.
This report was prepared by the Europe/Asia/Africa Strategic Unit of the Office of International Intelligence. This report reflects information received prior to October 2001. Comments and requests for copies are welcome and may be directed to the Intelligence Production Unit, Intelligence Division, DEA Headquarters, at (202) 307-8726.
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