Direct Trade

As of January 1, 1990, over 23 ministries and departments of Russia as well as more than 13.000 major individual and amalgamated factories were granted the right to direct participation in export-import transactions on the markets of capitalist and developing countries. These ministries, departments and factories have their own foreign trade firms often transferred to them from the appropriate foreign economic associations of the Ministry of Foreign Economic Relations. They are operating on a profit or loss basis.

The Ministry of Foreign Economic Relations retains its functions of trading in most important raw materials and foodstuffs, as well as in a number of goods of national importance. In addition to organizing the construction of industrial installations abroad, the Ministry is in charge of supervising the construction in Russia of enterprises with foreign firms involved.

Also, the Ministry renders tactical, informative and consultancy services to all participants in developing foreign economic activities direct, guides and coordinates common credit and price policy on the foreign market and ensures the balanced development of Russian foreign economic ties.

These production associations thai are yet without the right to enter foreign markets direct may export and import products on the basis of contractual relations with the foreign economic associations of the Ministry.

Provision is made for the development of new forms of economic relations with foreign firms.