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After the disintegration of USSR, serious aberrations in the system of recruitment and admission of students in institutions located in Russia and CIS countries were reported by the Indian Embassies at Moscow & Almaty in the early part of the year 1994. Various private agencies with dubious antecedents mushroomed and sponsored medical candidates for commercial gains. A perceptible decline in the standards of medical education in these countries was also noticed. In the backdrop of communications received from the Indian Embassies, the Government of India was concerned that if the situation is allowed to continue, a large number of Indian students would end up in medical institutions with doubtful standards. Government of India sought the comments of MCI as to whether the recognition of these institutions could be continued in view of the communications received from the Indian Embassies at Moscow & Almaty. MCI sent its comments to the Central Government on 1.11.1994 recommending de-recognition of all medical degrees of the erstwhile USSR included in the Second Schedule of the Act.

In the year 1996, the Counsellor (Education) in the Embassy of India at Moscow brought to the notice of MCI and the Ministry of Human Resource Development that the Russian Ministry of Health had continued to give admission to students sponsored through private agencies in India. He also reported that there was a decline in the academic standards of Russian educational institutions and manifest erosion of ethics which made it impossible to be sure that undeserving students would not complete their medical education from these institutions. The calibre of the Indian students studying there had also sharply deteriorated. The Counsellor further informed that though earlier, Indian students were known for their high academic performance, unfortunately that was not the case any more.