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Political and Economic Transition in Russia pp 153–169Cite as

Palgrave Macmillan

Organizational Forms of Raiding: Client, Organizer, and Executor

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Abstract

This chapter considers organizational and institutional forms of predatory raiding in Russia and analyzes the business of hostile takeovers. Predatory raiding in Russia is a specific business, connected to other related businesses and state structures. In addition to banks and financial-industrial groups, there are firms that specialize in raiding. Organizational forms of raiding demonstrate the division of functions and include the structural chain that consists of the client, organizer, and executor. In this chain, predatory raiders can occupy any position in this chain or simply play a role of sub-contractors in a hostile takeover. Predatory raiders take over enterprises to own them or to sell them. Due to the violent nature and storming of enterprises by predatory raiders, modern history of Russian raiding movement may be labeled as the chronicles of ancient sieges or the war of high fences.

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Notes

  1. 1.

    Reiderstvo kak sotsial’no-ekonomicheskij i politicheskij fenomen sovremennoj Rossii: otchet o kachestvennom sotsiologicheskom issledovanii. Issledovanie “Tsentra politicheskih tehnologij” pod rukovodstvom Bunina. Moskva, 2008. [Raiding as a socioeconomic and political phenomenon of the modern Russia: A report on the qualitative sociological investigation. An investigation conducted by the Center of Political Technologies led by Bunin]. Moscow, May 2008. Retrieved June 12, 2009, from http://www.politcom.ru/; http://www.compromat.ru/main/mix1/raiderycpt.htm

  2. 2.

    FNS vvela v internete servis dlia zashchity kompanij ot reiderov [The Federal Tax Services office (FNS ) introduced an internet service intended to protect companies from raiders]. Newsru.com , March 26, 2007. Retrieved May 9, 2009, from http://www.newsru.com/finance/26mar2007/fns_raiders.html

  3. 3.

    State Duma is the Lower Chamber of the Russian Parliament.

  4. 4.

    Reiderstvo kak sotsial’no-ekonomicheskij i politicheskij fenomen sovremennoj Rossii: otchet o kachestvennom sotsiologicheskom issledovanii. Issledovanie “Tsentra politicheskih tehnologij” pod rukovodstvom Bunina. Moskva, 2008. [Raiding as a socioeconomic and political phenomenon of the modern Russia: A report on the qualitative sociological investigation. An investigation conducted by the Center of Political Technologies led by Bunin]. Moscow, May 2008. Retrieved June 12, 2009, from http://www.politcom.ru/; http://www.compromat.ru/main/mix1/raiderycpt.htm

  5. 5.

    Yuri Luzhkov: “Malyj biznes vo mnogom obespechivaet zhiznedeyatel’nost’ finansovoj sistemy stolitsy” [Yuriy Luzhkov: “Small business to a large extent maintains the proper functioning of the financial system of the capital]. Moskovskij Komsomolets, September 2, 2007. Retrieved May 9, 2009, from http://www.mk.ru/daily/83784.html

  6. 6.

    Sila est’ – zakona ne nado [If there is force, there is no need for law]. MBnews.ru, December 11, 2008. Retrieved July 22, 2009, from http://www.notheft.ru/sila-est-zakona-ne-nado

  7. 7.

    D’yakonov, Pavel. (2009). V Rossii vynesen pervy prigovor professional’noj kompanii reiderov [First court sentence is handed to a raiding company in Russia]. Peterburg-Pyatyj kanal, May 21, 2009. Retrieved July 22, 2009, from http://www.notheft.ru/v-rossii-vynesen-pervyj-prigovor-professionalnoj-kompanii-rejderov

  8. 8.

    Predator-Prey Relationships. NESCI. Retrieved June 12, 2017, from http://necsi.edu/projects/evolution/co-evolution/pred-prey/co-evolution_predator.html

  9. 9.

    See video report: Police fights with local community members near a new construction site in Moscow. August 17, 2007. Retrieved July 29, 2009, from http://www.youtube.com/watch?v=dbzwbHpyWXM&NR=1

  10. 10.

    See video report on the exodus of the besieged from the fortress. The construction workers leave the site after being stormed by the police special forces. Retrieved from http://www.youtube.com/watch?v=dMegGDrGE5w&feature=related

  11. 11.

    See video report: Raider is the robber in law: Hostile takeover of a plant in Ural. Svobodnaya pressa, Retrieved July 29, 2009, from http://www.svpressa.ru/issue/video.php?id=876

  12. 12.

    D’yakonov, Pavel. (2009). V Rossii vynesen pervy prigovor professional’noj kompanii reiderov [First court sentence is handed to a raiding company in Russia]. Peterburg-Pyatyj kanal, May 21, 2009. Retrieved July 22, 2009, from http://www.notheft.ru/v-rossii-vynesen-pervyj-prigovor-professionalnoj-kompanii-rejderov

  13. 13.

    See video report from the scene: The last defense line. Retrieved July 29, 2009, from http://www.youtube.com/watch?v=adlR_ra3V4c

  14. 14.

    See video footage of a group of people taking over the headquarters of Volgogradenergosbyt energy public utility company in Volgograd, Russia in August 2011. Police, investigators with a search warrant, representatives of both directors, and armed private security personnel are all present on the site. This appears to be a classical “koshmarit’ biznes” spectacle merged with raiding. Reiderskij zakhvat Volgogradenergosbyta [Hostile takeover of Volgogradenergosbyt]. YouTube, August 17, 2011. Retrieved May 14, 2018, from https://www.youtube.com/watch?v=YuvwQuqI5FY

  15. 15.

    See video footage of a group of people storming the expanded clay plant in Ul’yanovsk, Russia in April 2012. The new managers try to convince workers to leave, saying it was a shortened work day. Reiderskij zakhvat keramzitovogo zavoda. g. Ul’yanovsk [Hostile takeover of expanded clay plant in Ul’yanovsk]. YouTube, April 4, 2012. Retrieved May 14, 2018, from https://www.youtube.com/watch?v=S1fg1JZnSfM

  16. 16.

    See video footage of a group of people storming a technical oil plant in Ufa, Bashkortostan Republic, Russia, in August 2015. Na zavode v Bashkirii proizoshel vooruzhennyj konflikt [Armed conflict took place on a plant on Bashkiriya]. YouTube, August 24, 2015. Retrieved May 14, 2018, from https://www.youtube.com/watch?v=Wc7edxfdCvE

  17. 17.

    See video footage of a group of stormtroopers blocking employees from entering Uralmostostroj bridge construction company, paper plant Natur Papir, and Holiday Inn Chelyabinsk Hotel, in Chelyabinskaya oblast, Russia, in August 2015. Reiderskie zakhvaty v Chelyabinskoj oblasti [Hostile takeovers in Chelyabinskaya oblast]. YouTube, August 29, 2015. Retrieved May 14, 2018, from https://www.youtube.com/watch?v=rs8D2kMh3cU

  18. 18.

    See video footage of a group of people storming Ufalejskij metallurgy machine-building plant in Verkhy Ufalei, Russia, in March 2015. Ufalejskij zavod metallurgicheskogo mashinostroeniya podvergsya atake reiderov [Ufalejskij metallurgy machine-building plant was attacked by raiders]. YouTube, March 4, 2015. Retrieved May 14, 2018, from https://www.youtube.com/watch?v=r-F81XIOy4w

  19. 19.

    See video footage of a group of people storming plant “Bazalt” in Russia. October 21, 2008. Retrieved July 29, 2009, from: http://rutube.ru/tracks/1153651.html?related=1&v=69e294f54d6067aac904bfbb67202f0a

  20. 20.

    See video report: Court. Raiding. 3 Kanal. June 8, 2009. Retrieved July 29, 2009, from http://www.youtube.com/watch?v=VyvwC5VehQs

  21. 21.

    See video footage of hostile takeovers. Retrieved from http://www.youtube.com/watch?v=tejzH0UMzzE

  22. 22.

    See video footage of a group of stormtroopers detained by police in Moscow for attempted hostile takeover in October 2013. Police confiscated eight traumatic pistols, knives, clubs, portable radio stations, bulletproof vests and so on. Ataka reiderov [Raiding attack]. YouTube, October 3, 2013. Retrieved May 14, 2018, from https://www.youtube.com/watch?v=TMS7013W4qA

  23. 23.

    Donskov, Nikolay. (2006). Zachem na kombinate golovorezy?: v Peterburge “spor khozyajstvuyushchikh sub’ektov” razreshaet chechenskij spetsnaz [Why are there guerillas in the meat processing plant?: In Petersburg, a dispute between two firms is being resolved by the Chechen special military forces]. Novaya gazeta, 72, September 21, 2006. Retrieved June 23, 2009, from http://2006.novayagazeta.ru/nomer/2006/72n/n72n-s03.shtml

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  1. University of Wisconsin–Madison, Madison, WI, USA

    Ararat L. Osipian

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  1. Ararat L. Osipian
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Osipian, A.L. (2019). Organizational Forms of Raiding: Client, Organizer, and Executor. In: Political and Economic Transition in Russia. Palgrave Macmillan, Cham. https://doi.org/10.1007/978-3-030-03831-1_8

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