Although labor codes prohibit compulsory labor, there are persistent allegations that some military conscripts were forced to work or, in some cases, sold into servitude. The North Koreans pay Russia to operate logging camps in Siberia that use prison labor, including North Korean prisoners of conscience. A Business Foreign and domestic legal entities may establish, purchase and dispose of businesses in Russia, but the process is complicated and far from transparent. Nevertheless, a significant proportion of the population has entered into business. Lack of regulation, licensing, and clear procedures, have led to the formation of shady banks, investment funds, and financial companies that have defrauded the public.
Private commerce is barred from areas related to national security.
Private and state enterprises are entitled to equal treatment, but private firms operate at a competitive disadvantage. The government has introduced auction tenders for official procurements. An established and transparent set of regulations regarding bidding is lacking. Roughly 85 percent of wholesale and retail prices have been liberalized as of 1992. However, energy prices continue to be controlled at the wholesale level.