Russia experienced one of the largest mass privatization efforts ever undertaken in the history of the world, says Wharton legal studies and business ethics professor Philip M. Nichols. "Virtually everything was at one time controlled by the state. Now that is no longer true. Virtually all assets in Russia have been privatized. However, some of the largest and most valuable assets have been renationalized, or they are privatized in a way that allows the state to continue to control them."

A prime example is the energy conglomerate, Gazprom, Russia's biggest company and one in which the Russian government now holds a controlling stake. Another, very highly publicized example is the state's seizure of the petroleum company Yukos, whose former head, Mikhail Khodorkovsky, was convicted of acquiring the company illegally and is currently in prison...