Public Procurement in Russia: State Patronage, Corruption and Tax Evasion in the Construction Industry

This study examines public procurement in Russia’s construction sector, highlighting its deep entrenchment in corruption and state patronage. Based on 50 interviews with 27 business and state officials, we find that authorities enable corruption and tax evasion for self-enrichment and power consolidation. Contrary to claims that digitalisation curbs corruption in public procurement, we argue that state patronage sustains a cycle of illegal practices. A weak judiciary reinforces corruption, increasing state intervention, eroding public trust, and lowering tax compliance. As a result, corruption remains socially accepted, making meaningful reform unlikely.