“…To this end, institutions were strengthened, money surrogates were outlawed, and the fiscal and judicial system overhauled in an attempt to reduce corruption, enforce property rights and increase tax revenues (Abdelal, 2010). Putin also remodeled the state's relationship with the oligarchs, forcing some into exile and others into prison (Puffer & McCarthy, 2007) and took some strategically important industries -including defense, oil, and gas -back into state ownership (Vahtra, Liuhto, & Lorentz, 2007). As a result, business-state relations moved first from "state capture" to "elite exchange" in which firms receive favorable treatment in return for providing benefits to state agents (Frye, 2002;Rutland, 2001), and subsequently to business capture (Yakovlev, 2006).…”