Eastern Siberia and the Russian Far East have traditionally been seen as a vast storehouse of natural resource wealth to be developed for the benefit of the Russian Federation. This article investigates the social and ecological problems that face potentially rich but sparsely populated regions. The article is based on numerous field trips to the two regions between 2001 and 2007. We find that processes aimed at mitigating the negative impacts of resource utilization are weak and that the federal government takes too much tax gained from resource development from the locations where the resources are exploited. Consequently, local authorities cannot fund adequate social and environmental protection measures.