Soviet and Russian Relations with Foreign Corporations: The Case of Gold and Diamonds
Author(s)
Kempton, Daniel R.; Levine, Richard M.
Abstract
Analysis of the gold and diamond markets and mineral policy in the Soviet Union and in post-Soviet Russia shows that while the Soviet Union was a stable player in these markets, the Russian successor state has not been. The gold and diamond market during the Soviet era was an exception to the economic order in that no significant domestic market existed for these commodities; therefore, dealing with multinational cartels was necessary. In the post-Soviet period major changes have taken place that have limited Russia’s production and marketing of minerals and participation in international markets. It is evident, however, that Russia has the potential to be a powerful competitor in global markets.
