Women are usually the first to be laid off from atrophying state enterprises and 65 percent of Russia's unemployed are women. Discrimination against people from the Caucasus is prevalent in work and housing. There are no de jure restrictions on women and minorities in terms of business activity, but cultural factors and ethnic discrimination are serious barriers. Russia has the rudiments of a primitive market system, but there are serious problems with rule of law and enforcement. Bankruptcy laws are no applied.
Taxation is unpredictable and capricious.
Many government decisions effecting business are taken by executive fiat. The judicial system is poorly developed and corrupt. Authority and jurisdiction between various government levels and agencies are too often unclear or duplicated. Corruption is prevalent and much crime is tied to commercial activity. Bankers and other business leaders have been assassinated, and 8,000 gangs are known to operate in Russia involving racketeering, kickbacks and protection.