Soviet Energy and Eastern Europe: The Role of Joint Ventures.
ARMY MILITARY PERSONNEL CENTER ALEXANDRIA VA
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Rapidly growing energy demands among the nations of the Council for Mutual Economic Assistance CMEA is placing ever greater demands on the increasingly problematic Soviet energy supply. This situation together with the constantly rising world oil and gas prices, the Soviet desire to export oil and gas for hard currency, and the low prices paid by CMEA members may make East Europe, which is critically dependent on Soviet energy, an economic burden to the Soviet Union. The geopolitical and economic costs of reducing this burden poses a dilemma for the Soviet Union. This paper examines the role of joint ventures in Soviet relationships with Eastern Europe. Formed as a byproduct of the CMEA Comprehensive Plan, it appears that joint ventures may reduce the opportunity cost to the Soviet Union of maintaining energy flows to East Europe. At the same time joint ventures may facilitate Soviet regional development plans. Author
- Administration and Management
- Economics and Cost Analysis