This paper studies a new phenomenon, the ‘top to bottom’ corruption networks of organized crime, law enforcement and Government officials in Russia. We examine the Soviet roots of corruption and its transformation during transitional period. By focusing on contemporary Russian corruption networks this paper explores the complex of state-run oligarchic structure with established rates, well organized inter-institutional groups incorporated by common ideas of extracting profits. The danger is in the existence of extensive and stable corruption networks, which not only profit by their illegal activities between Organized Crime groups and Law Enforcements, but invest in further corrupt developments to control the government. We argue that corruption in Russia, for a long time, has been imbedded in the system of social relations and, by the majority of citizens, was not considered to be a crime. Presenting arguments against existing simplified understanding of corruption, this study elucidates corruption networks as an expansion of Organized Crime in all spheres of post-totalitarian Russia. It also shows that a magic circle of corruption closely intertwines with the inefficiency of power and the inefficiency of rule of law.