U.S. Department of State
1996 International Narcotics Control Strategy Report, March 1997

United States Department of State

Bureau for International Narcotics and Law Enforcement Affairs

RUSSIA

I. Summary

Lack of resources and increased sophistication of both traffickers and producers hamper government drug control efforts. Nevertheless, the Government of Russia (GOR) is making modest gains in bolstering law enforcement activities and developing the legislation and institutions required to counter drug trafficking and abuse. A new criminal code, with penalties for production, sale, possession and transport of narcotics, went into effect January 1, 1997. Meanwhile, new antidrug and money laundering legislation are now pending in the Duma. Russia is a party to the 1988 UN Convention.

II. Status of Country

Health and law enforcement officials report 90,000 registered addicts in 1996, an increase of more than thirty percent since 1995. The Interior Ministry reports that the total number of drug users in hospitals was 217,000 in 1996, an increase of over forty percent from 1995. Officials claim that two million Russians regularly use narcotics, while almost four million are estimated to have tried them. Use of cocaine, heroin, opium, and synthetic drugs was once limited to more wealthy Russians, but is now increasingly popular with all economic groups, particularly among urban youth.

Law enforcement authorities believe that Russian criminal groups control most of the trafficking and distribution in Russia. Ethnic groups from many of the fifteen Newly Independent States play active roles in drug trafficking in Russia. The Russian Ministry of Internal Affairs reports that the various ethnic groups informally have divided up the criminal activity in Russia in order to avoid turf battles. Control over various types of drugs are divided among several groups. The Azerbaijan groups appear to control the synthetic drug market; the Ukrainians control the cannabis market; the Afghans, Pakistanis and citizens of the Central Asian Republics control much of the heroin market; Russians control the cocaine market; and Central Asian gangs control the raw opium market. Although ethnic groups control particular drug niches, they employ Russian citizens in all aspects of distribution and collection.

Chinese ephedrine smugglers also have stepped up their trafficking into Russia, and Nigerian and South American traffickers increasingly use Moscow to route cocaine deliveries to the West, particularly Europe. In addition, significant amounts of synthetic drugs, including ecstasy, make their way into the discos of the major cities. Several seizures in the US of large quantities of amphetamines indicate that there are increasing drug trafficking connections to the US as well.

According to Russian authorities, domestic cultivation of opium poppy continues as does the production of psychotropic drugs. However, the extent of such production is not known. Authorities underscore that the privatization of chemical laboratories may have led to use of such facilities for illicit purposes.

Russia's well-developed chemical industry is also vulnerable to illicit drug operations. The industry exports small quantities of precursor and essential chemicals, primarily acetic anhydride, to industries in Eastern Europe and Finland. The lack of sufficient legislation offers the illicit drug trade increasing opportunities for exploitation.

Money laundering is also of concern in Russia. Although most evidence of money laundering is derived from indirect sources, the lack of regulatory controls or legislation inhibits government efforts to target drug money laundering operations. Russian officials speculate that criminals have taken control of some banks and laundering proceeds from a wide variety of criminal activities, including drugs. Russian officials have worked with the Financial Action Task Force (FATF) and USG agencies to put into place more effective regulations and procedures to combat money laundering. A new criminal code includes specific sanctions for money laundering. The government has submitted a comprehensive draft law on money laundering to the Russian state Duma.

III. Country Actions Against Drugs in 1996

Enforcement Efforts. Despite regular meetings of the Interministerial Committee on Controlling Drug Abuse chaired by the Deputy Prime Minister, efforts to implement the Russian Federal Antidrug Campaign approved in 1995 have been minimal. Sufficient resources have not been allocated to the program which focuses on interdiction and investigative efforts. For instance, although personnel devoted specifically to drug control increased in the Ministry of Interior, the State Customs Committee, and the Federal Border Guards, their efforts have been hampered by the lack of equipment and other resources. Moreover, many of these agencies, as well as the health agencies, are experiencing the loss of some of their most experienced personnel to the private sector where salaries are much higher.

Seizures declined and drug-related crimes increased by almost twenty-five percent to 100,000. The total amount of drugs seized decreased in 1996 to 50 mt, primarily marijuana and poppy straw, according to the Ministry of Interior. Of the total amount, however, the percent of opium, heroin, and cocaine seized was greater in 1996 than in previous years.

The GOR has sought to orchestrate international cooperative meetings, including annual meetings of Interior Ministers of the Black Sea states, and a similar meeting of all the Interior Ministers of the CIS. The GOR is also working closely with the UNDCP and expects to receive assistance from the UN in 1997.

Cultivation and Production. Despite the GOR's continuation of the USSR's ban on opium poppy and cannabis cultivation, Russian authorities assert that opium cultivation continues and that over 1.5 million hectares of cannabis grows wild in the eastern part of the country. There are no official statistics on the extent of opium poppy cultivation. However, the MVD ministry destroyed fifty percent more individually cultivated poppy fields in the first ten months of 1996 than during the same period in 1995. The total acreage of fields identified and destroyed was lower, suggesting that large scale plantations have decreased in the past few years. There was an increase in the destruction of cannabis fields, both wild and cultivated. Law enforcement and health officials believe that the production of psychotropic drugs, particularly in underground chemical laboratories, became more widespread during the year. More than 500 such labs were closed in the first nine months of 1996, up 23 percent from the same period in 1995.

Corruption. A new draft law on corruption was introduced into the Duma in 1996 after a first draft had been rejected the previous year by the Federation Council. While the USG has no reports of high-level government officials involved in the drug trade in 1996, many observers believe that most political parties, either knowingly or unknowingly, receive financial support from organized criminal groups, some of which are believed to be engaged in narcotics trafficking. Interior Minister Kulikov's "clean hands" campaign resulted in the arrests of hundreds of police officials.

Domestic programs. Most demand reduction, prevention, treatment, and public awareness programs in Russia are extremely limited. There are counternarcotics education programs in the schools, begun in the past decade,
but are generally limited to Moscow and a few major cities. A number of non-governmental organizations now sponsor demand reduction programs throughout Russia.

Agreements and Treaties. Russia is a party to the 1988 UN Convention, the 1961 UN Single Convention on Narcotic Drugs as amended by the 1972 Protocol, and the 1971 UN Convention on Psychotropic Substances.

A Memorandum of Understanding on counternarcotics cooperation, signed between the US and the Soviet Union in 1989, remains in force following Russia's succession to the agreement in 1992. In February 1996, a mutual legal assistance agreement (MLAA) between the US and Russia entered into force. The MLAA contains an annex that specifically lists all offenses covered by the executive agreement. Illicit traffic in narcotic drugs and psychotropic substances is covered under #1 in the annex and money laundering is covered under #4 of the annex.

The Federal Border Service concluded a Memorandum of Understanding with the US Coast Guard in 1995 which included agreement to interdict drugs on the high seas. The Border Service also concluded a trilateral agreement in 1995 with Kyrgyzstan and Tajikistan to reinforce trilateral counternarcotics cooperation on the borders with Afghanistan, Pakistan, and Iran. A Customs Union between Russia, Kazakhstan, and Belarus was established in 1995. Russia is a signatory to the 1992 Kiev Treaty on cooperation in interregional drug investigations.

IV. US Policy Initiatives and Programs

In support of these objectives, the US and Russia concluded an agreement to provide drug control assistance, equipment and training to Russian law enforcement institutions and the Ministry of Health, including the latter's efforts to establish drug rehabilitation centers in Russia. Additionally, the USG trained Russian law enforcement and procuracy personnel, with an emphasis on international organized crime, narcotics trafficking and financial crimes, including money laundering. Since 1994, over 1,800 officers or students have been trained in Russia, the US, and at the International Law Enforcement Academy (ILEA) in Budapest. Law enforcement courses included regional drug training, train-the-trainer, and airport interdiction courses by the DEA and US Customs for the Russian MVD, State Customs Committee, and Russian Border Guards. The USG also has increased cooperative efforts on drug cases through a new DEA office in Moscow.

The Road Ahead. The USG will encourage Russia to expand its drug control activities and to establish legislative and institutional antidrug capabilities, particularly those required under the 1988 UN Convention.

The USG plans to continue providing training and other assistance in support of these goals in 1997. Specific initiatives include the continuation of a bilateral initiative in combatting money laundering, begun in 1996; law enforcement training courses; and a drug rehabilitation training program.