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Commentary
Foreign Affairs

Russia's Pothole Predicament

Beneath the Pavement, Corruption

Former Researcher, Russia and Eurasia, Kleptocracy Initiative
Former Research Associate, Kleptocracy Initiative
Russian billionaires Boris and Arkady Rotenberg at the 2017 Formula 1 Russian Grand Prix in Sochi, April 30, 2017 (Mikhail Svetlov/Getty Images)
Caption
Russian billionaires Boris and Arkady Rotenberg at the 2017 Formula 1 Russian Grand Prix in Sochi, April 30, 2017 (Mikhail Svetlov/Getty Images)

My grandfather was enamored of his car, a Soviet attempt at an all-wheel-drive offroader. Even though it was 20 years ago, I still remember that going for a drive with him was a special treat: he only wheeled his prized possession out for ritualistic camping and fishing trips. But it wasn鈥檛 just for off-roading that grandad needed his 4x4. The vehicle was necessary to get by on the Russian roads of the 1990s, which were so dilapidated that it was common practice for drivers to meander onto the dirt shoulder, which provided a markedly smoother ride than the massively potholed, uneven 鈥減aved鈥� surface. More than a decade later, after being picked up from Moscow鈥檚 Domodedovo airport, my taxi driver repeated the same maneuver on the capital city鈥檚 highways.

It鈥檚 no secret that Russia is a  in which the state is run for profit by a criminal elite while average citizens shoulder the cost. Road corruption in this setting appears to be a logical revenue stream for all involved鈥攆rom top officials who pilfer from the roads budget, to construction companies cutting corners, to local traffic cops taking bribes for the most minor traffic violations. Such bribes can be anywhere between . And even if bribes can be avoided, one might still have to cover the cost of a new chassis: because of this perfect storm of graft, roads are littered with holes large enough to dislodge wheels from vehicles. 

Roads in Russia have always been inadequate. During the imperial era, strategic highways connected major cities and served primarily postal and military functions. Apart from those, however, dirt roads were the norm. The Soviets, upon inheriting the muddy mess of the country鈥檚 roads, sought to improve the infrastructure through labor conscription for local road improvement; such work was often poorly executed and helped to normalize an amateurish approach to what should be a sophisticated engineering endeavor. For thoroughfares of strategic importance, the Soviets allocated vast state funding, resulting in roads of considerably better quality: unsurprisingly, the route linking Stalin鈥檚 dacha to the Kremlin was  

Even today, the divide between local and strategic roads persists. To be sure, local elite have access to vast road funding. In 2017, Russia spent more than ; the projected estimate for 2020 is upwards of 296.5 billion rubles ($4.9 billion). The officials are left mostly to their own devices when it comes to using that money, though. Tellingly, one senior government official  from 30 miles of road and simply sold it to a company for personal profit. And overall, Rosavtodor, the federal roads agency, is considered one of the most corrupt branches of a deeply corrupt government.

MEET THE ROTENBERGS

Arkady and Boris Rotenberg are the leading businessmen of Russian infrastructure development. The Rotenbergs鈥攍abeled 鈥溾� by Forbes Russia and  by the U.S. government in 2014 for 鈥減rovid[ing] support to Putin鈥檚 pet projects by receiving and executing high price contracts for the Sochi Olympic Games and state-controlled Gazprom鈥濃攁re close to Russian President Vladimir Putin. Their relationship stems from a childhood bond formed while practicing under the same judo master. According to Forbes Russia, last year alone Arkady Rotenberg鈥檚 companies received over  ($9.2 billion) in government contracts.

In 2014, Arkady鈥檚 company, Mostotrest, won a deal for the construction of a 130-mile section of the new M11 motorway, which will run parallel to the existing M1o between Moscow and St. Petersburg. Mostotrest  in the tender process. An internal audit has already discovered that revenue from the tolls  to cover the costs of construction or maintenance. To make up for the deficit, either more funds will need to come out of the state budget, a burden that the taxpayers will shoulder, or the builders will cut costs. There is also a risk that the project will simply not be completed at all.

Meanwhile, the Rotenbergs have been awarded two more prestigious construction projects with highly nationalist overtones. Perhaps the most brazen example is the  construction of a road bridge to the illegally annexed Crimean Peninsula: the project was awarded to Arkady Rotenberg. Although a bridge is not strictly necessary to accommodate transport between the peninsula and Russia, a new link holds highly symbolic value鈥攁 physical connection between mainland Russia and the newly annexed peninsula. 鈥淏esides financial profit,鈥� as Rotenberg himself explained, 鈥淚 also want the project to mean something for future generations.鈥� The bridge is scheduled to be completed by the end of 2018, although only time will tell. 

Given the history of past Rotenberg projects, it is likely that the M11 and other projects will end in vast overruns of budget and schedule. Arkady Rotenberg鈥檚 companies received more than  in contracts for the 2014 Sochi Winter Olympic Games. That sum is equivalent to the  of the previous Winter Olympics in Vancouver.

The situation looks even worse when one examines individual projects. Of the $12 billion earmarked for the Olympic Games鈥攖he final budget was estimated at $51 billion鈥攏early $7 billion went toward a 28-mile stretch of highway known as the Adler鈥揔rasnaya Polyana鈥攖he project was overseen by another close associate of Vladimir Putin, , former head of Russian Railways. According to opposition politician Alexei Navalny鈥檚 Anti-Corruption Fund, Yakunin鈥檚 Russian Railways  to Transinzhstroy, which in turn contracted with Rotenberg鈥檚 Mostotrest. Esquire Russia calculated that the original cost of the road was so exorbitant that it would be comparable to paving it in . Since that article was published in 2014, the cost of the road has increased by $1.8 billion. It is unclear whether the road has yet been completed. 

Russians seem to have grown resigned to the institutionalized corruption that produces their crumbling roads. Campaign groups now present mock awards to regions with the worst roads. Meanwhile, surveys show that contact with Russian traffic police, for example, is a  of corruption. One account describes how officers in Dagestan extorted a truck driver, Aleksandr Chertkov, after pulling him over for no reason whatsoever. According to a , they forced him to 鈥渂reathe into a funnel fashioned out of paper towels. 鈥楾he Breathalyzer shows that you have been drinking,鈥� he was told. 鈥楾he fine is 3,000 rubles.鈥欌� There are hundreds of other anecdotes of police officers extracting bribes from innocent citizens鈥攕o many that the practice has spurred the  in most Russian cars.

IS RESISTANCE FUTILE?

Some Russians have chosen not to simply record encounters with police but also to resist the spread of corruption. In 2015, scores of Russian truck drivers led a multi-day strike against the Platon fee, introduced as a tax to improve roads but widely viewed as a scheme to enrich the elite connected to Putin, particularly Igor Rotenberg, son of Arkady, who managed the company in charge of collecting the tax. In the end, the tax remained, and it was nearly doubled within the first few months of its imposition. It is estimated that Rotenberg will receive  until 2027 from the tax. Meanwhile, public demonstrations have taken a novel form: in Saratov, Russian activists  by painting faces鈥攎ouths, in particular鈥攐f politicians and local officials over the most irksome potholes in town.

For now, Russia鈥檚 officials have chosen to prey upon the state they are supposed to represent. They steal from the roads on which they themselves travel, and then ignore the sorry state of their country by drawing the curtains in their automobiles as they speed through the crumbling infrastructure. To make their journey as quick and painless as possible, they鈥檝e taken to blaring sirens to clear other traffic from their path.

It鈥檚 unlikely that roads will improve any time soon. That would only happen after a serious change in the regime鈥檚 priorities. The current government profits from disorder鈥攊n the case of roads, through repair contracts. Roads have long held symbolic meaning for Russia: they are the thoroughfares linking the federation鈥檚 many regions and nationalities together. Those ties have been tested by years of graft and neglect. To get a sense of how Russia is faring, the West must look past the Kremlin鈥檚 military posturing, and instead observe the daily grind of commuting on Russia鈥檚 roads.