Photo Credits: US Naval Institute
The BridgeGap Working Paper Series showcases cutting-edge research that bridges critical gaps in our understanding of corruption, its regulation, and the real-world impact of anti-corruption policies. Our latest publication, Working Paper 25-03, “Impact of Sanctions on Infiltration of Russia in Europe: The Kremlin’s Malign Influence Through Strategic Corruption” by BridgeGap members Tihomira Kostova, Marius Köppen, Todor Galev, Tsvetomir Nikolov (Center for the Study of Democracy), and Paige Maylath (Princeton University offers a timely perspective on strategic corruption.
This paper examines the phenomenon of strategic corruption – the deliberate use of corrupt practices by foreign governments to achieve long-term geopolitical objectives – and its implications for democratic resilience and global governance. Unlike conventional corruption, which is typically confined to personal gain or administrative inefficiency, strategic corruption operates as a foreign policy tool that embeds malign influence across political, economic, and social institutions. By exploiting systemic vulnerabilities, transnational networks, and legal loopholes, it undermines sovereignty, weakens institutional capacity, and facilitates sanctions evasion.
Through three case studies of the Kremlin’s influence in Europe, the analysis illustrates how strategic corruption functions in practice. This analysis delves into its mechanisms and implications with a particular focus on its role in facilitating evasion of international sanctions through state capture and reshaping political and economic landscapes in targeted nations. The first two cases – Nord Stream II and Turk Stream – demonstrate how domestically embedded networks and opaque transnational structures enable the advancement of Russia’s geopolitical energy agenda. The third case highlights adaptive mechanisms for circumventing sanctions on Russian oil exports, revealing the role of private and public intermediaries in sustaining malign activities. Together, these cases underscore the clandestine nature of strategic corruption, which relies on corporate enablers, legal service providers, shell companies, and compromised officials to mask control and obscure financial flows.
Drawing on existing scholarship and empirical evidence, the paper identifies five defining characteristics of strategic corruption: (1) pursuit of geopolitical objectives, (2) direct involvement of foreign state actors, (3) reliance on transnational enabler networks, (4) transformative and systemic influence, and (5) deliberate obfuscation of resources and control. By unpacking these dimensions, the study provides a conceptual framework for understanding how strategic corruption destabilizes democratic institutions and highlights the urgent need for coordinated policy responses to mitigate its long-term impact.
The BridgeGap Working Paper Series provides a platform for the early dissemination of research findings, fostering discussion among colleagues both within and outside the project. Managed by Utrecht University, each paper undergoes a review process conducted by researchers from the BridgeGap consortium.
We welcome comments and suggestions on the series. Please direct all correspondence to the series editor, Joras Ferwerda, Associate Professor at the Utrecht University School of Economics.