The breakup of the Soviet Union left the country floundering in many ways, especially economically, and the existing Russian version of organized crime moved in and added to its repertoire as it took over businesses, intimidated merchants, and solidified its bad reputation. The Russian version of the Mafia is called the Mafiya, and its success as a crime organization has posed a threat to the new Russia and its transition to a market-oriented economy.

             Russian critics of the transformation of Russia point to a number of current problems they attribute to capitalism, such as rampant organized crime, official corruption, inability to pay members of the armed forces, a high unemployment rate, and high prices for certain goods. Many of these problems might have developed in any case. At the same time, in spite of these problems, it would seem that the move to a capitalist economy is not likely to change unless the masses become even more disenchanted with the system than they are now. The communists tried to appeal to voter discontent in the recent election and failed. The people may decry aspects of the new market economy, but they are still dedicated both to reform and to stability. Continuing down the road to reform is seen as a way of maintaining stability, and any change in direction is seen as dangerous. Capitalism in some form is best for the future of Russia, for this is the only way to cure the ailing economic structure that Communism produced and that led directly to the disintegration of the former Soviet empire. .

             One of the last laws passed by the Supreme Soviet of the Soviet Union before there was a radical restructuring to curtail federal authority in the USSR was a new statute on crimes. This was the Fundamental Principles of Criminal Legislation adopted in 1991, and it represented the culmination of efforts at criminal law reform started in the early days of perestroika.