The specifics of shadow economy in Russia

Abstract

Subject. The article investigates the shadow economy phenomenon in Russia. Objectives. The purpose is to determine the role of shadow economy in the reproduction process, identify its specifics in Russia. Methods. The study rests on general scientific methods (scientific abstraction, the unity of historical and logical, analysis and synthesis, induction and deduction, methods of comparison and analogy), special cognition methods (monetary techniques), and systems and integrated approaches. Official statistics data, statutory instruments, works of leading researchers on shadow economy expansion serve as the information base of the paper. Results. We present a retrospective analysis of shadow economic activities in Russia, identify the specifics of shadow relations in the Russian economy, appealing to political, institutional, and socio-cultural changes in the Russian society. We also highlight factors that played a key role in a particular period. The paper provides a detailed description of the modern period of development and assesses the influence of external shocks on the shadow economy. Conclusions. The current period is characterized by the digitalization of shadow relations, shift of corruption to the highest levels of power, persistence of capital outflow, increased penalties for shadow activities. The findings may be useful for introducing the mechanisms to combat money laundering.