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TheSovRoms (plural ofSovRom) were economic enterprises established inRomania following thecommunist takeover at the end ofWorld 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 thewar reparations demanded by the armistice convention of 1944 and theParis Peace Treaties,[3] which had been set at 300 millionUnited States dollars[4]—seeRomania during World War II). The Soviet contribution in creating the SovRoms lay mostly in reselling leftoverGerman equipment to Romania, which was systematically overvalued.[5]
An agreement between the two countries regarding the establishment of common enterprises was signed inMoscow on8 May 1945,[6] at a time when Romania found itself in economic isolation.[7]
The first SovRom to be created (on 17 July 1945), wasSovrompetrol, which had as its objective the exploitation ofpetroleum inPrahova County areas and theoil refineries inPloiești.[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 bySovromtransport andTars (transportation), and later bySovrombanc (banking and commercialmonopoly),Sovromlemn (wood processing),Sovromgaz (natural gas),Sovromasigurare (insurance),Sovromcărbune (coal exploitation in theJiu Valley and other areas),Sovromchim (chemical industry),Sovromconstrucții (construction materials),Sovrommetal (iron mining — aroundReșița),Sovromtractor (futureTractorul [ro], inBrașov),Sovromfilm (importingSoviet cinema productions),Sovrom Utilaj Petrolier (producingoil refining equipment) andSovromnaval (shipbuilding inConstanța,Giurgiu, andBrăila).
Most notoriously,Sovromcuarț (orSovromquarțit,Sovrom Kvartit), while ostensibly producingquartz, as its name suggested,[9] was in fact engaged in the mining of uranium ore.[10]Sovromcuarț started operating in 1950 at theBăița mine inBihor County, with a workforce of 15,000political prisoners. After most of them died ofradiation 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 inCaraș-Severin County, which employed around 10,000 people in the early 1950s.[12][13] In secrecy,[14] Romania delivered 17,288 tons ofuranium ore to the Soviet Union between 1952 and 1960,[15] which was used, at least partly, in theSoviet atomic bomb project.[16] Uranium mining continued until 1961.[17] All ore was shipped outside Romania for processing, initially toSillamäe inEstonia; the uranium concentrate was then used exclusively by theSoviet 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 onRomanian economy: the severedrought andfamine outbreaks of 1946,[20] coupled with the severedevaluation of theleu — culminating in a forcedstabilization throughmonetary reform (1947).[21]
The SovRoms' end, evidence of the relative emancipation of theRomanian Workers' Party from Soviet control, ran parallel to thede-Stalinization process; it was approved byNikita Khrushchev and carried out byMiron Constantinescu (head of thePlanning 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 billionlei).[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 andSovromcuarț, were disbanded in 1956.[26] However, the Romanian government signed an agreement that would replaceSovromcuarț 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 inSovromcuarț 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 byFirst SecretaryGheorghe 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 idea that Romania had the sufficient “requirements” for socialism after completingnationalization.[30]