The Decline of the Rule of Law in Russia: From Telephone Justice to Asset Seizures

The rule of law has significantly declined in Russia recently, particularly following the February 2022 full-scale invasion of Ukraine. At a workshop, hosted at the Arctic University of Norway, we explored the growing dominance of informal governance, the erosion of judicial independence, and the broader implications for civil freedoms and property rights in Russia. I summarised the critical takeaways below.

Emergence of Informal Practices

After February 2022, governance in Russia has increasingly relied on informal mechanisms, where state ideology and political priorities shape legal interpretations and enforcement. Unofficial directives and "recommendations" are often treated as binding, bypassing formal legal systems.

This trend reflects a broader shift: formal laws are catching up with real-life practices rather than guiding them. Administrative pressures and economic coercion have replaced adherence to codified legal norms, signalling a troubling decline in governance transparency.

A Dual Legal System

Russia's legal framework operates in two distinct realms: normative state and prerogative state.

Within the normative state realm: formal governance applies to non-political contexts, such as civil or contractual disputes. Within the prerogative state realm: politicized matters prioritize informal rules, reflecting state interests over constitutional or international law.

This duality creates uncertainty and fosters selective enforcement, where laws are arbitrarily applied to achieve political objectives.

In politically charged cases, informal rules often trump constitutional provisions and international treaties. This reversal undermines the principles of equality before the law and the independence of the judiciary, reducing courts to enforcers of state ideology.

Impacts on Governance and Society

After the full-scale invasion of Ukraine in February 2022, courts are increasingly seen as biased instruments of the state, eroding public trust in their impartiality. Russia's disregard for international law—exemplified by its invasion of Ukraine and violations of conventions like the Chicago and Cape Town agreements—has led to widespread condemnation and further isolation.

Russia's standing in various international rankings devoted to the rule of law has dramatically deteriorated as seem in the figure below.

Overall, the duality between formal and informal rules creates unpredictability, deterring foreign investment and destabilizing economic operations.

Case Studies: Freedom of Speech and Property Rights

To illustrate how informal rules work in practice, I explored in more detail two case studies. First, the prosecution of Alexei Gorinov, a municipal deputy, for his anti-war statements. It clearly demonstrated the suppression of free speech and judicial independence. In practice, harsh penalties foster societal fear and self-censorship.

Second, I examined expropriation of foreign property in Russia using Danone and Carlsberg as case studies. In both cases, foreign subsidiaries were seized under "temporary management", showcasing the state's willingness to disregard private property rights. These actions deter foreign investors, politicize business operations, and deepen legal unpredictability.

Mechanisms of Enforcement of Informal Rules

Informal governance in Russia dominates through administrative pressure, economic threats, and direct interference. Courts selectively enforce laws to align with state priorities, often formalizing informal practices retroactively. This approach has prioritized loyalty over justice, making private property and civil liberties casualties of Russia's war against Ukraine.

Domestically, the decline of the rule of law weakens protections for property rights and civil liberties, fostering a climate of fear. Internationally, Russia's violations of global legal norms erode its diplomatic credibility and economic stability. The dual-state system—where informal practices prevail in politicized matters—further compounds governance challenges.

In fact, in many politicized cases the hierarchy of "sources" of law essentially functions in the reverse order with oral instructions prevailing over written law, and international law at the very bottom of the hierarchy contrary to provisions of the Russian Constitution.

The erosion of the rule of law in Russia is a cautionary tale of how state ideology can undermine civil freedoms and private property rights. It is hard to see how this decline with the rule of law can be reversed in the absence of broader political changes in Russia.

You can watch the full presentation here.

The presentation slides are available here: The Decline of the Rule of Law in Russia: From Telephone Justice to Asset Seizures. 

Author:
  
Professor Yarik Kryvoi, Senior Fellow in International Economic Law and Director of the Investment Treaty Forum