The financial-industrial groups have acquired dominant position in the Russian industry in terms of the number of employees and the production of output in Russia over the past 10 years. As many scholars pointed out, these rapid growths of FIGs result ...

The financial-industrial groups have acquired dominant position in the Russian industry in terms of the number of employees and the production of output in Russia over the past 10 years. As many scholars pointed out, these rapid growths of FIGs resulted mainly both from Soviet-era industrial institutional legacies and from the difficult economic transition process.
But the real question is: What kind of role do FIGs play both in the reconstruction of Russian industrial organization and in the revitalizing Russian industry. As Juliet Johnson properly pointed out, “are FIGs transitional phenomena in Russia, giant dinosaurs destined for extinction?”
Through this analysis, it seems that FIGs have a positive effect, at least, on the Russian industry facing transitional difficulties. Moreover, after Putin took power in 2000, calling for “strong state”, he emphasized government’s role in stabilizing and developing Russian economy. Thus for the short-run, the influence and position of FIGs in Russian industrial organization will be strengthened in Russia which has now a number of difficult economic problems.
However, for the long-run, the future of FIGs will be uncertain. As already shown in above analysis, most FIGs lacked formal structure in terms of an ambiguous management structure and the lack of clear governance structure. Moreover, there are still a number of conflicts between FIG legislations and other legislations. All of these phenomena will force FIGs to be operated in inefficient ways and finally to go away.