international magazine
07-08 / 2010

The view from China Oil policy and breakup of the Soviet Union

In 1970s, after the USSR has become the world leading supplier of oil, grains and food products, it has gained a deep integration into the international trading system. More than half of the foreign currencies entering the state budget of the USSR was provided by exports of crude oil; in 1980s, more than half of the expenses in foreign currencies were devoted to import of grains and food products. This is why the state of the Soviet economy depended directly upon the fluctuations of the world prices for oil and grains, as well as on the condition and dynamics of the global demand.