CONCESSIONS OF THE 1920s – THE FIRST ATTEMPT
 TO ESTABLISH ECONOMIC RELATIONS WITH THE WEST

Abstract

The article analyzes the use of concessions to attract foreign capital and technology in an almost complete economic blockade because of the revolution and civil war, as well as the fact that the revolution in other foreign countries has not
 occured. The article indicates particular regulations in the procedure for the infusion of foreign concessions into Soviet Russia. In addition, the paper points out how this
 process gradually developed, as well as what problems arose for western investors in the course of investing their capital in the country. The author shows particular industries that mostly used foreign capital, names donor countries, and provides statistical data on the number of applications for the opening of concessional filed by foreign investors. The paper provides examples of specific concessions. The author draws attention
 to the careful selection of concessionaires, states the principles of concessions’ operation in terms of planned and command economy. The original literature of the 1920s is used in the article. The aticle defines the concessions’ place and
 role in the Russian economy. The author points out that the questions arising between the Soviet power
 and foreign investors concern price policy and employed workers’ compensation that, however, was not typical of all concessions. Moreover, the article provides statistical data concerning the number of contracts concluded in the main sectors of
 the economy and the benefit it brought to the economy, as well as the number of citizens of Soviet Russia involved in the economic activities of foreign concessions.
 The author makes a conclusion that the state policy of concessions was a forced measure aimed at improving the state economic development by attracting foreign capital and technology.