Appendix D: Internal Oil Pricing Policies of the Soviet Union
The Period O War Communism, 1918-21. The Bolshevik victory was f solidified by the occupation of the Winter Palace on the night of 7 November 1917. One day later, on 8 November 1917, the Congress of Soviets adopted the infamous decree of Land and Farming. All land was to be nationalized immediately, and the right to use it transferred to the peasants. No person could hold more land than they alone could cultivate as the hiring of labour was to be forbidden (Nove, 1972). The nationalization of all heavy industry, banks, railroads, merchant marine and shipping operations followed shortly thereafter. The official statement on an internal pricing policy was brief and to the point. All state industrial enterprises were instructed to ‘deliver their products to other state enterprises and institutions on the instructions of the appropriate organs of VSNKh without payment, and in the same way...obtain all the supplies they require’. Railways and the State Merchant Fleet were required to ‘transport gratis the goods of all state enterprises. In making this proposal, the congress expressed the desire to see the final elimination of any influence of money upon the relations of economic units’ (Venediktov, 1957, p. 5 19). The establishment of a ‘moneyless’ system remained a common theme in Party negotiations throughout the period of War Communism. In a best case scenario, production fiom all industries was to be assigned value - a common denominator for State accounting purpose - in terms of labour units. This continued until the economy...
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