Criminal Corporate Raiding in Russia
Thomas Firestone

I. Introduction
The illegal takeover of businesses, commonly known in Russian as "reidersrvo" (raiding), has become a major threat to domestic and foreign investors in Russia. "Reiderstvo" differs greatly from U.S. hostile takeover practice in that it relies on criminal methods such as fraud, blackmail, obstruction of justice, and actual and threatened physical violence. At the same time, though, "reidcrstvo" is not just simple thuggery. In contrast to more primitive criminals. Russian "reidcri" rely on court orders, resolutions of shareholders and boards of directors, lawsuits, bankruptcy proceedings, and other ostensibly "legal" means as a cover for their criminal activity. "Reiderstvo" is also more ambitious than classic protection schemes in that it seeks not just a portion of the target business' profits but the entire business itself. Finally, because raiding typically involves the use of documents such as corporate resolutions and judicial orders as covers for threats of physical violence, it is more sophisticated and can be much more difficult to investigate and prosecute than straightforward extortion schemes. In short, it is a new and sophisticated form of organized crime.1