The SovRoms were economic enterprises established in Romania following the Communist takeover at the end of World War II, in place until 1954–1956. In theory, SovRoms were joint Romanian-Soviet ventures aimed at generating revenue for reconstruction, and were created on a half-share basis in respect to the two states; however, they were mainly designed as a means to ensure resources for the Soviet side, and generally contributed to draining Romania's resources. The Soviet contribution in creating the SovRoms lay mostly in reselling leftover German equipment to Romania, which was systematically overvalued.
History
Creation, structure, and effects
An agreement between the two countries regarding the establishment of common enterprises was signed in Moscow on May 8, 1945, at a time when Romania found itself in economic isolation. The first SovRom to be created, was Sovrompetrol, which had as its objective the exploitation of petroleum in Prahova County areas and the oil refineries in Ploieşti. By 1947, it was responsible for 37% of oil drilling, some 30% of the total production of crude oil, and over 36% of refined oil, controlling 37% of internal oil supplies and 38% of external ones. Sovrompetrol was followed by Sovromtransport and Tars, and later by Sovrombanc, Sovromlemn, Sovromgaz, Sovromasigurare, Sovromcărbune, Sovromchim, Sovromconstrucţii, Sovrommetal, Sovromtractor, Sovromfilm, Sovrom Utilaj Petrolier and Sovromnaval. Most notoriously, Sovromcuarț, while ostensibly producing quartz, as its name suggested, was in fact engaged in the extraction of uranium ore. Sovromcuarț started operating in 1950 at Băiţa 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. In secrecy, Romania delivered 17,288 tons of uranium ore to the Soviet Union between 1952 and 1960, which was used, at least partly, in the Soviet atomic bomb project. Uranium mining continued until 1961. All ore was shipped outside Romania for processing, initially to Sillamäe in Estonia; the uranium concentrate was then used exclusively by the Soviet Union. By 1952, 85% of Romanian export was directed at the Soviet Union. The total value of goods passed by Romania to the Soviet Union surpassed by far the demanded war reparations, being estimated at around 2 billion dollars. Special circumstances also enhanced the negative effects of SovRoms on Romanian economy: the severe drought and famine outbreaks of 1946, coupled with the severe devaluation of the Romanian leu — culminating in a forced stabilization through monetary reform.
Ending
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. Discussions aimed at winding down the SovRoms began in March 1953. The first measure was taken in 1954 : 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. Payments were completed in 1975. 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; 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. 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. The last two remaining SovRoms, Sovrompetrol and Sovromcuarț, were disbanded in 1956. However, the Romanian government signed an agreement that would replace Sovromcuarț with a new state-owned company which was to carry on the extraction and processing of uranium ore, delivering its entire output to the Soviet Union. This successor company was itself dissolved in 1961. 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. The gesture was used by First SecretaryGheorghe Gheorghiu-Dej, who had previously ensured the SovRom's efficiency, 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.
