USSR Seizure of Reparations from 1945

End of WW2

USSR lost about 20 million lives.

USSR suffered widespread damage to industrial infrastucture.

USSR steel output of 1945 was half that of the late 1930s.

Stalin demanded reparations to help rebuild Soviet economy.

Allied Agreements

Set sum of reparations at $20 billion

Disagreed about time frame and means of repayment

Each power could take reparations from their own zone.

USSR could take extra 10% from Western zones in exchange for delivering Soviet food to them.

USSR's Reparations

Dismantling factories and transport infrastructure, payment from production and contributions for the cost of Soviet occupation.

'Trophy Brigade' seized gold, silver, art, furniture and clothes.

1500 industrial plants, half of East German railway tracks were taken to the USSR.

End of reparations

Damage to equipment, so USSR brought German experts or left it in Germany and appropriated manufactured products.

Stripping of resources from Soviet zones shows Stalin did not expect the division to be permanent.

Had detrimental effect on Soviet economy. Goodwill from Germans for liberating them from the Reich, but was replaced with hostility over falling living standards

1953, USSR announced end of reparations from 1st January 1954.