SOVIET ECONOMIC ASSISTANCE TO THE COMMUNIST LDC'S, 1981-84

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP85T01058R000507950001-0
• Release Decision: RIPPUB
• Original Classification: C
• Document Page Count: 15
• Document Creation Date: December 22, 2016
• Document Release Date: November 24, 2009
• Sequence Number: 1
• Publication Date: August 27, 1985
• Content Type: REPORT

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SONA/NIG/EP/FT
27 August 1985
Soviet Econanic Assistance to the Carminist U)C's, 1981-84
Soviet econanic assistance to Camrunist IDCs VIM)--in the form of
trade subsidies and econanic aid--leveled off at between $6.4-$6.8 billion
during the past four years, ending the pattern of dramatic growth which began
during. the mid-1970s (See Table 1). * As in the past, Cuba received the
lion's share --an estimated $4.5 billion annually during 1981-84--or roughly
two-thirds the total. Vietnam and Mongolia received the next largest amounts,
getting sane $1 billion and $800 million respectively each year, while Soviet
assistance to North Korea--which had topped $250 million in 1980--fell to only
$55 million in 1984. In addition to this assistance, Nbscow has provided the
CLDCs--primarily Cuba--with another $3.2 billion in hard currency aid since
1980 to help with foreign exchange shortages. Overall, Moscow's approach to
the CLUCs during the past four years has been to supply than with sufficient
econanic assistance and hard currency support to maintain econanic stability.
In return, the Soviet have continued to reap major political and strategic
benefits, and--to a lesser extent--econanic gains as well.
Trade Subsidies
Roughly 50 percent of Soviet econamic assistance to the CRC's during
1981-84 was in the form of price subsidies, most of which went to Cuba. Since
1974, the USSR has granted concessionary prices on its oil exports and paid
premiums on its imports of sugar and nickel. As with its sales to Eastern
* The countries designated Communist LDC's are Cuba, Vietnam, STAT
Mongolia, North Korea, Laos, and Cambodia.
SOV M85-10171
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 1976
1977
1978
1979
1980
1981
1982
1983
1984
Total
2.5
3.4
4.2
4.7
5.6
6.8
6.8
6.4
6.7
a
Trade Subsidies
1.5
2.2
2.8
3.0
3.3
3.5
3.8
3.2
3.6
Econanic Aid
1.0
1.2
1.4
1.7
2.3
3.3
3.0
3.2
3.1
This table is confidential
a Excludes price subsidies on camnodities other than sugar, petroleum, and nickel.
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Table 1
USSR: Sunnary of Econa ni c Assistance to CIDC' s
(Billions US)
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WNEIDENT IAL
Europe and the other CLDC's, Moscow charged Cuba oil prices based
on the world average of the preceding five years. As a result of
steeply-rising world oil prices in 1979 and 1980, the value of
the Cuban oil subsidy increased markedly, peaking at $1.7 billion
in 1981. With the fall in world oil prices since 1982, however,
the charged by the Soviets has increased almost to the world
price and this subsidy has nearly disappeared. Soviet oil price
subsidies to other CLDCs also have been sharply reduced and in
some cases eliminated (See Table 2).
Prices for imports of Cuban sugar and nickel also are set
annually, but unlike the price for oil they are not tied to world
prices and are set solely at the discretion of Moscow. In recent
years, Moscow has sharply increased the price it pays for Cuban
sugar, apparently to compensate Cuba for rising oil prices.
Thus, from 1981-84, the subsidy on sugar increased from $1.4
.billion to over $3.4 bilk
than
n
the oil subsidy.
_ w w
o - , i
g
Direct Economic Aid 25X1
Direct economic aid, in the form of credits to either
finance Soviet development projects or cover trade imbalances,
has comprised the other half of Soviet economic assistance since
1980. * Unlike t' '
e
subsidies, however--where Cuba received
virtually the entire amount--Cuba, Vietnam, and Mongolia each
received about a 30 percent share of Soviet economic aid in 1984.
Grants and technical services are also included under this
category. There is littl
e direct information on the amount of
this support, but, with the possible exception of Vietnam and
Cuba
the amounts
t
,
ex
ended are probably small.
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USSR:
Estimated Economic Assistance to Camyunist LDCs
(Million US $)
1976 1977
1978 1979
1980
1981
1982
1983 1984
Cuba
Total
1,569 2,270
2,946
3,178
3,463
4,558
4,666
4,260
4,620
Econanic aid
a
185 230
320
460
830
1,415
975
1,070
1000
Trade
a
- -
245
912
481
500
460
Development aid
150 195
285
420
540
453
444
520
490
Technical services
35 35
35
40
45
50
50
50
50
Trade subsidies
1,384 2,040
2,626
2,718
2,633
3,143
3,691
3,190
3,620
Sugar
989 1,638
2,427
2,324
1,165
1,366
2,580
2,740
3,420
Petroleum
374 378
164
381
1,480
1,657
1,006
345
- 100
Nickel
21 24
35
13
-12
120
105
105
100
Vietnsn
Total
350 410
470
770
935
1,120
1,000
1,040
1,040
Economic aid
b
305 290
335
570
580
900
950
1,025
1,040
Trade
b
168 121
122
280
282
633
637
673
687
Develognent aid
57 74
103
175
178
142
188
227
228
Grants
d
50 50
50
50
50
50
50
50
50
Technical services
30 45
60
65
70
75
75
75
75
Oil subsidies
45 120
135
200
355
220
50
15
-
Mngolia
Total
490 620
690
685
835
830
885
885
785
Economic aid
b
445 575
660
640
770
765
865
880
785
Trade
b
114 167
162
175
218
247
188
240
202
Development aid
331 408
498
465
552
503
662
625
568
Technical services
-
-
-
-
15
15
15
15
Oil subsidies
45 45
30
45
65
65
20
5
-
North Korea
Trade and
65 45
35
76
260
145
130
40
55
Development aide
35 15
15
30
75
65
70
25
45
Oil subsidies
30 30
20
45
185
80
60
15
10
Laos and Cambodia
Development aidb
15
30 20
35
60
130
160
185
164
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