I. Summary Russia experienced a marked increase in narcotics cases in 1997. Organized crime elements are finding their way into the international drug trade, primarily in areas such as distribution and money laundering. Lack of effective regulation in the banking, financial and commercial sectors provide favorable conditions for money laundering, but there is insufficient information to determine how much of the money illicitly filtering through the system is derived from narcotics trafficking.
Limited resources hamper government drug control efforts.
Russia is a party to the 1988 UN Drug Convention. Status of Country Greater openness since the break-up of the Soviet Union has made Russia a prime conduit for illicit drugs, largely destined for western European markets. Russia is also a minor producer of illicit amphetamines, cannabis and opium poppy, mostly supplying domestic consumption. For the domestic market, illicit drugs primarily come from the country's immediate neighbors in the form of cannabis, opium and opium derivatives. Asian heroin and South American cocaine, however, are also part of the problem.