The decade of transition in the Russian Federation has been accompanied by an unprecedented rise in crime. We investigate the reasons for this increase and for differences in crime rates across Russian regions by analyzing panel data for 70 Russian regions from 1990 to 1998. Using homicide as a proxy for violent crime and larceny as a proxy for property crimes, we find three factors that explain the proliferation of crime during transition: the reduction in the percentage of crimes solved by the police, the increase in alcohol consumption, and the increase in poverty and income. We find that the largest share of violent crime in Russia is associated with aggression within neighborhoods and families rather than connected to Mafia-like structures.