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SovRom

January 01, 1970

The SovRoms (plural of SovRom) were economic enterprises established in Romania following the communist takeover at the end of World War II, in place until 1954–1956 (when they were dissolved by the Romanian authorities).

In theory, SovRoms were joint Romanian-Soviet ventures aimed at generating revenue for reconstruction,[1] and were created on a half-share basis in respect to the two states;[2] however, they were mainly designed as a means to ensure resources for the Soviet side, and generally contributed to draining Romania's resources (in addition to the war reparations demanded by the armistice convention of 1944 and the Paris Peace Treaties,[3] which had been set at 300 million United States dollars[4]—see Romania during World War II). The Soviet contribution in creating the SovRoms lay mostly in reselling leftover German equipment to Romania, which was systematically overvalued.[5]

History edit

Creation, structure, and effects edit

 
A nominal 1,000 lei Sovrompetrol stock certificate, Bucharest, 1946

An agreement between the two countries regarding the establishment of common enterprises was signed in Moscow on May 8, 1945,[6] at a time when Romania found itself in economic isolation.[7]

The first SovRom to be created (on July 17, 1945), was Sovrompetrol, which had as its objective the exploitation of petroleum in Prahova County areas and the oil refineries in Ploiești.[8] By 1947, it was responsible for 37% of oil drilling,[7] some 30% of the total production of crude oil, and over 36% of refined oil,[7] controlling 37% of internal oil supplies and 38% of external ones.[7]

Sovrompetrol was followed by Sovromtransport and Tars (transportation), and later by Sovrombanc (banking and commercial monopoly), Sovromlemn (wood processing), Sovromgaz (natural gas), Sovromasigurare (insurance), Sovromcărbune (coal exploitation in the Jiu Valley and other areas), Sovromchim (chemical industry), Sovromconstrucţii (construction materials), Sovrommetal (iron mining — around Reșița), Sovromtractor (future Tractorul [ro], in Brașov), Sovromfilm (importing Soviet cinema productions), Sovrom Utilaj Petrolier (producing oil refining equipment) and Sovromnaval (shipbuilding in Constanța, Giurgiu, and Brăila).

Most notoriously, Sovromcuarț (or Sovromquarțit, Sovrom Kvartit), while ostensibly producing quartz, as its name suggested,[9] was in fact engaged in the mining of uranium ore.[10] Sovromcuarț started operating in 1950 at the Băița mine in Bihor County, with a workforce of 15,000 political prisoners. After most of them died of radiation poisoning, they were replaced by local villagers, who did not know what they were mining.[11] Another facility operated by this SovRom was the Ciudanovița uranium mine in Caraș-Severin County, which employed around 10,000 people in the early 1950s.[12][13] In secrecy,[14] Romania delivered 17,288 tons of uranium ore to the Soviet Union between 1952 and 1960,[15] which was used, at least partly, in the Soviet atomic bomb project.[16] Uranium mining continued until 1961.[17] All ore was shipped outside Romania for processing, initially to Sillamäe in Estonia; the uranium concentrate was then used exclusively by the Soviet Union.[17]

By 1952, 85% of Romanian export was directed at the Soviet Union.[18] The total value of goods[specify] passed by Romania to the Soviet Union surpassed by far the demanded war reparations, being estimated at 2 billion dollars.[19]

Special circumstances also enhanced the negative effects of SovRoms on Romanian economy: the severe drought and famine outbreaks of 1946,[20] coupled with the severe devaluation of the leu — culminating in a forced stabilization through monetary reform (1947).[21]

Ending edit

The SovRoms' end, evidence of the relative emancipation of the Romanian Workers' Party from Soviet control, ran parallel to the De-Stalinization process; it was approved by Nikita Khrushchev and carried out by Miron Constantinescu (head of the Planning Board).[22]

Discussions aimed at winding down the SovRoms began in March 1953.[23] The first measure was taken in 1954 (through accords signed in March and September):[7] Soviet shares in 12 of the 16 enterprises were taken over by the Romanian state, in exchange for a sum to be paid in installments of merchandise exports (in 1959, the debt was set at over 35 billion lei).[24] Payments were completed in 1975.[24] The initial sum at which the Soviet side estimated its contribution was 9.6 billion lei, in contrast to the 2.9 billion lei at which it had been valued by Romanian sources;[25] discussions on the matter reduced the sum to a total of 5.3 billion lei, which was construed by the two sides not as a corrected result, but as a concession owing to past irregularities in SovRom activities.[25] At the same time, the Soviet Union announced that it gave up interests in formerly German-owned enterprises and equipment on Romanian soil, for which Romania paid 1.5 billion lei as compensation (deducted from the total 5.3 billion).[25]

The last two remaining SovRoms, Sovrompetrol and Sovromcuarț, were disbanded in 1956.[26] However, the Romanian government signed an agreement that would replace Sovromcuarț with a new state-owned company which was to carry on the mining and processing of uranium ore, delivering its entire output to the Soviet Union.[27] This successor company was itself dissolved in 1961.[17] Soviet investment in Sovromcuarț was evaluated to a debt of 413 million rubles, which were to be paid by Romania over a 10-year period (starting with 1961).[28]

The gesture was used by First Secretary Gheorghe Gheorghiu-Dej, who had previously ensured the SovRom's efficiency,[29] as a means to gain popularity with Romanian citizens and, in parallel, to advertise the fact that Romania had developed the majority of Marxian requirements for Socialism after completing nationalization.[30]

See also edit

Notes edit

  1. ^ Cioroianu, p.68, 70
  2. ^ Rîjnoveanu, p.1
  3. ^ Cioroianu, p.68, 71, 73; Rîjnoveanu, p.1
  4. ^ Cioroianu, p.73
  5. ^ Alexandrescu, p.40-41
  6. ^ Alexandrescu, p.39; Rîjnoveanu, p.1
  7. ^ a b c d e Alexandrescu, p.39
  8. ^ Cioroianu, p.68
  9. ^ Alexandrescu, p.39-40; Cioroianu, p.69-70
  10. ^ Banu, p.28-29; Cioroianu, p.70
  11. ^ Khrushchev, p. 720
  12. ^ Guță, Daniel (April 18, 2023). "Dosarele X din orașul-fantomă al uraniului. Experiența paranormală trăită de un român în adâncuri". Adevărul (in Romanian). Retrieved March 7, 2024.
  13. ^ Balint, Mario (August 24, 2016). "Epopeea uraniului bănățean de la exportul în URSS, în farfurie" (in Romanian). Radio România Actualități. Retrieved March 7, 2024.
  14. ^ Banu, p.29; Cioroianu, p.70
  15. ^ Banu, p.30
  16. ^ Cioroianu, p.70
  17. ^ a b c Diehl
  18. ^ Cioroianu, p.372-373
  19. ^ Roper, p.18
  20. ^ Cioroianu, p.71-72
  21. ^ Cioroianu, p.72-74
  22. ^ Cioroianu, p.208
  23. ^ Țiu
  24. ^ a b Alexandrescu, p.40
  25. ^ a b c Alexandrescu, p.41
  26. ^ Banu, p. 31; Rîjnoveanu, p.1
  27. ^ Banu, p. 31; Diehl
  28. ^ Banu, p.29
  29. ^ Roper, p.22
  30. ^ Cioroianu, p.71, 74-76; Rîjnoveanu, p.1

References edit

  • "Soviet-Rumanian Relation in the Light of Recent Events in Hungary and Poland", November 1956, at the Blinken Open Society Archives
  • Ion Alexandrescu, "1945-1956: Din «cleștele» German — în brațele «fratelui» de la răsărit. Societățile mixte sovieto-române (Sovrom)" ("1945-1956: From the German's «Tongs» — into the Eastern «Brother»'s Arms. Mixed Soviet-Romanian Societies (Sovrom)"), in Dosarele Istoriei, 3/1996
  • Florian Banu, "Uraniu românesc pentru «marele frate»" ("Romanian Uranium for the «Big Brother»"), in Dosarele Istoriei, 9/2005
  • Adrian Cioroianu, Pe umerii lui Marx. O introducere în istoria comunismului românesc ("On Marx's Shoulders. An Introduction into the History of Romanian Communism "), Editura Curtea Veche, Bucharest, 2005. ISBN 973-669-175-6
  • Peter Diehl, "Uranium Mining in Europe", Chapter 1, 1995
  • Sergei Khrushchev, Nikita Khrushchev, Memoirs of Nikita Khrushchev, Penn State University Press, University Park, 2004. ISBN 0-271-02332-5
  • Carmen Rîjnoveanu,
  • Stephen D. Roper, Romania: The Unfinished Revolution, Routledge, London, 2000. ISBN 90-5823-027-9
  • (in Romanian) , in Adevărul, September 16, 2011

External links edit

January 01, 1970
sovrom, plural, were, economic, enterprises, established, romania, following, communist, takeover, world, place, until, 1954, 1956, when, they, were, dissolved, romanian, authorities, theory, were, joint, romanian, soviet, ventures, aimed, generating, revenue,. The SovRoms plural of SovRom were economic enterprises established in Romania following the communist takeover at the end of World War II in place until 1954 1956 when they were dissolved by the Romanian authorities In theory SovRoms were joint Romanian Soviet ventures aimed at generating revenue for reconstruction 1 and were created on a half share basis in respect to the two states 2 however they were mainly designed as a means to ensure resources for the Soviet side and generally contributed to draining Romania s resources in addition to the war reparations demanded by the armistice convention of 1944 and the Paris Peace Treaties 3 which had been set at 300 million United States dollars 4 see Romania during World War II The Soviet contribution in creating the SovRoms lay mostly in reselling leftover German equipment to Romania which was systematically overvalued 5 Contents 1 History 1 1 Creation structure and effects 1 2 Ending 2 See also 3 Notes 4 References 5 External linksHistory editCreation structure and effects edit nbsp A nominal 1 000 lei Sovrompetrol stock certificate Bucharest 1946 An agreement between the two countries regarding the establishment of common enterprises was signed in Moscow on May 8 1945 6 at a time when Romania found itself in economic isolation 7 The first SovRom to be created on July 17 1945 was Sovrompetrol which had as its objective the exploitation of petroleum in Prahova County areas and the oil refineries in Ploiești 8 By 1947 it was responsible for 37 of oil drilling 7 some 30 of the total production of crude oil and over 36 of refined oil 7 controlling 37 of internal oil supplies and 38 of external ones 7 Sovrompetrol was followed by Sovromtransport and Tars transportation and later by Sovrombanc banking and commercial monopoly Sovromlemn wood processing Sovromgaz natural gas Sovromasigurare insurance Sovromcărbune coal exploitation in the Jiu Valley and other areas Sovromchim chemical industry Sovromconstrucţii construction materials Sovrommetal iron mining around Reșița Sovromtractor future Tractorul ro in Brașov Sovromfilm importing Soviet cinema productions Sovrom Utilaj Petrolier producing oil refining equipment and Sovromnaval shipbuilding in Constanța Giurgiu and Brăila Most notoriously Sovromcuarț or Sovromquarțit Sovrom Kvartit while ostensibly producing quartz as its name suggested 9 was in fact engaged in the mining of uranium ore 10 Sovromcuarț started operating in 1950 at the Băița mine in Bihor County with a workforce of 15 000 political prisoners After most of them died of radiation poisoning they were replaced by local villagers who did not know what they were mining 11 Another facility operated by this SovRom was the Ciudanovița uranium mine in Caraș Severin County which employed around 10 000 people in the early 1950s 12 13 In secrecy 14 Romania delivered 17 288 tons of uranium ore to the Soviet Union between 1952 and 1960 15 which was used at least partly in the Soviet atomic bomb project 16 Uranium mining continued until 1961 17 All ore was shipped outside Romania for processing initially to Sillamae in Estonia the uranium concentrate was then used exclusively by the Soviet Union 17 By 1952 85 of Romanian export was directed at the Soviet Union 18 The total value of goods specify passed by Romania to the Soviet Union surpassed by far the demanded war reparations being estimated at 2 billion dollars 19 Special circumstances also enhanced the negative effects of SovRoms on Romanian economy the severe drought and famine outbreaks of 1946 20 coupled with the severe devaluation of the leu culminating in a forced stabilization through monetary reform 1947 21 Ending edit The SovRoms end evidence of the relative emancipation of the Romanian Workers Party from Soviet control ran parallel to the De Stalinization process it was approved by Nikita Khrushchev and carried out by Miron Constantinescu head of the Planning Board 22 Discussions aimed at winding down the SovRoms began in March 1953 23 The first measure was taken in 1954 through accords signed in March and September 7 Soviet shares in 12 of the 16 enterprises were taken over by the Romanian state in exchange for a sum to be paid in installments of merchandise exports in 1959 the debt was set at over 35 billion lei 24 Payments were completed in 1975 24 The initial sum at which the Soviet side estimated its contribution was 9 6 billion lei in contrast to the 2 9 billion lei at which it had been valued by Romanian sources 25 discussions on the matter reduced the sum to a total of 5 3 billion lei which was construed by the two sides not as a corrected result but as a concession owing to past irregularities in SovRom activities 25 At the same time the Soviet Union announced that it gave up interests in formerly German owned enterprises and equipment on Romanian soil for which Romania paid 1 5 billion lei as compensation deducted from the total 5 3 billion 25 The last two remaining SovRoms Sovrompetrol and Sovromcuarț were disbanded in 1956 26 However the Romanian government signed an agreement that would replace Sovromcuarț with a new state owned company which was to carry on the mining and processing of uranium ore delivering its entire output to the Soviet Union 27 This successor company was itself dissolved in 1961 17 Soviet investment in Sovromcuarț was evaluated to a debt of 413 million rubles which were to be paid by Romania over a 10 year period starting with 1961 28 The gesture was used by First Secretary Gheorghe Gheorghiu Dej who had previously ensured the SovRom s efficiency 29 as a means to gain popularity with Romanian citizens and in parallel to advertise the fact that Romania had developed the majority of Marxian requirements for Socialism after completing nationalization 30 See also editComeconNotes edit Cioroianu p 68 70 Rijnoveanu p 1 Cioroianu p 68 71 73 Rijnoveanu p 1 Cioroianu p 73 Alexandrescu p 40 41 Alexandrescu p 39 Rijnoveanu p 1 a b c d e Alexandrescu p 39 Cioroianu p 68 Alexandrescu p 39 40 Cioroianu p 69 70 Banu p 28 29 Cioroianu p 70 Khrushchev p 720 Guță Daniel April 18 2023 Dosarele X din orașul fantomă al uraniului Experiența paranormală trăită de un roman in adancuri Adevărul in Romanian Retrieved March 7 2024 Balint Mario August 24 2016 Epopeea uraniului bănățean de la exportul in URSS in farfurie in Romanian Radio Romania Actualități Retrieved March 7 2024 Banu p 29 Cioroianu p 70 Banu p 30 Cioroianu p 70 a b c Diehl Cioroianu p 372 373 Roper p 18 Cioroianu p 71 72 Cioroianu p 72 74 Cioroianu p 208 Țiu a b Alexandrescu p 40 a b c Alexandrescu p 41 Banu p 31 Rijnoveanu p 1 Banu p 31 Diehl Banu p 29 Roper p 22 Cioroianu p 71 74 76 Rijnoveanu p 1References edit Soviet Rumanian Relation in the Light of Recent Events in Hungary and Poland November 1956 at the Blinken Open Society Archives Ion Alexandrescu 1945 1956 Din cleștele German in brațele fratelui de la răsărit Societățile mixte sovieto romane Sovrom 1945 1956 From the German s Tongs into the Eastern Brother s Arms Mixed Soviet Romanian Societies Sovrom in Dosarele Istoriei 3 1996 Florian Banu Uraniu romanesc pentru marele frate Romanian Uranium for the Big Brother in Dosarele Istoriei 9 2005 Adrian Cioroianu Pe umerii lui Marx O introducere in istoria comunismului romanesc On Marx s Shoulders An Introduction into the History of Romanian Communism Editura Curtea Veche Bucharest 2005 ISBN 973 669 175 6 Peter Diehl Uranium Mining in Europe Chapter 1 1995 Sergei Khrushchev Nikita Khrushchev Memoirs of Nikita Khrushchev Penn State University Press University Park 2004 ISBN 0 271 02332 5 Carmen Rijnoveanu Romania s Policy of Autonomy in the Context of the Sino Soviet Conflict in NATO and the Warsaw Pact The Formative Years 1948 1968 2003 Conference comments and papers Czech Republic Military History Institute Militargeschichtliches Forscheungamt Stephen D Roper Romania The Unfinished Revolution Routledge London 2000 ISBN 90 5823 027 9 in Romanian Ilarion Țiu Deputatul Ceaușescu a votat entuziast naționalizarea Deputy Ceaușescu Enthusiastically Voted for Nationalization in Adevărul September 16 2011External links edit in Romanian Grecu Dan Salvate de la coșul de gunoi Rescued from the Garbage Bin SovRoms in postal history Retrieved from https en wikipedia org w index php title SovRom amp oldid 1212491075, wikipedia, wiki, book, books, library,

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