Foreign businesses expected major opportunities when communism ended in the Soviet Union. Instead, they have encountered extortion, fraud, and embezzlement on a sophisticated and unprecedented scale. Lack of accurate and timely information about crime and other matters is also a major problem. However, the marked increase in the incidence of extortion in Russia which became noticeable during the era of perestroika has grown into a business tool for organized crime in a developing economy in a society without a strong tradition of the rule of law. Another major business threat to manufacturers and distributors in Russia comes in the form of losses due to counterfeit consumer goods. Kidnapping of foreign business people is not currently a widespread problem, but it is likely to increase in future years. Nevertheless, most foreign business people surveyed believe that foreigners can avoid most potentially dangerous situations if they maintain proper levels of awareness. The increase in organized crime groups has also resulted in a sharp increase in auto theft. Some of the organized crime groups have their roots in a criminal tradition that existed in Russia and the Republics under Communism. Photographs