Billions of dollars have poured into this Russian port city to host a three-day summit of Asia-Pacific leaders - including the Prime Minister, Julia Gillard - only for much of the money to be squandered by local gangsters and mafia.
Russia's reputation for heavy-handed central control and being run by criminal syndicates has been borne out by spending around the Asia Pacific Economic Co-operation forum.
A giant bridge opened last month to span the straits separating Vladivostok from distant Russky Island, once home to a sensitive Soviet naval base, after a personal directive from the President, Vladimir Putin, to stage the talks on the island.
The leaders' agenda focuses on trade ties across the 21
member economies but Vladivostok is struggling to shake off a reputation as the
wild east of Russia.
More than 450 billion roubles ($13 billion) have flooded
into the city from the central authorities since it was designated as APEC host
to construct venues and accommodation for the meetings this weekend - an amount
estimated to be 60 times larger than the total finances of Vladivostok only
three years ago.
The cash influx has resulted in charges of corruption and
complaints most of the money has returned to cronies in Moscow, with jobs to
cheap, migrant workers.
Until recently, the mayor and local governor were
henchmen of a crime lord - the former governor Sergei Darkin was tangled in
several scandals until he was finally sacked in February in what appeared an
attempt to clean up the reputation of the city before the summit.
The former mayor Vladimir Nikolaev, a convicted criminal
nicknamed ''Winnie the Pooh'', amassed a $120 million fortune and was
implicated in rape, extortion and attempted murder cases.
The cable stay bridge - billed as the largest of its type
in the world - was constructed by a Russian firm with no experience building
over the ocean after rival foreign companies were in effect excluded from
bidding.
The entire APEC venue will become a university campus
after the summit.
Mr Putin is determined to show Russia as a Pacific power
during the summit, especially in the competitive oil and gas sectors, the
mainstay of the Russian economy.
Yesterday he took to the air in an ultralight aircraft to
lead a flock of migrating cranes in one of his common outdoor publicity stunts
to soften his image.
The APEC summit is Russia's first major international
meeting since his return to the presidency, cemented in March after widely
criticised elections.
The 59-year-old Mr Putin has also faced protests over his
rule, now potentially extending until the mid-2020s.
The punk rock band Pussy Riot became world famous after
being handed a three-year sentence for ''hooliganism'' after they criticised Mr
Putin during a performance at a Moscow cathedral.
Vladivostok has struggled as an outpost of Russian
empire, with promises it will become a ''socialist San Francisco'' or a ''St
Petersburg of the east'' but descended near to lawlessness after the collapse
of communism.
Criminal gangs skimmed profit from thousands of cars
imported from Japan and the population has fallen by nearly 100,000 people in
the past two decades.