Monetization of the past: why the Latvian authorities again started talking about compensation for the "Soviet occupation"

The head of the Ministry of Justice of Latvia, Janis Bordans, said in an interview with LETA that the country was “a donor of money to the USSR”. According to him, the republic allocated 48% of its income to the all-Union budget.

“Despite the harsh past, it also testifies to our strength,” he said. “We were donors of money in the USSR.”

At the same time, Bordans did not specify the extent to which the Latvian SSR received funding from the budget of the Soviet Union.

In addition, the minister said that Latvia intends to develop a methodology for calculating the losses that the republic allegedly incurred while it was part of the USSR.

The creation of the technique will be handled by a commission led by Bordans. According to local media, this year its members plan to analyze the budget expenditures of the Latvian SSR and the Soviet Union from 1946 to 1960, as well as to generalize materials on the liquidation of the prosperous peasantry in the republic.

In addition, the Bordans Commission intends to interview the leaders and specialists of various state structures of the LSSR in order to find out how the planning and organization of the national economy was carried out in the republic, and to establish what political processes were taking place in Latvian society at that time.

Baseless allegations

The Baltic countries regularly demand Russia to compensate for the "Soviet occupation".

In April 2016, a special state commission of Latvia estimated the losses of the country's economy from the “Soviet occupation” at € 185 billion. A year earlier, in the joint declaration of the Ministers of Justice of the three Baltic republics, the total amount of “losses” of the region was estimated at € 300 billion.

• Saeima of Latvia
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In March 2019, the Ministers of Justice of Latvia, Lithuania and Estonia announced during an international conference that they intend to continue to seek appropriate compensation from the Russian Federation.

“All the Baltic countries have done a lot to study, calculate and evaluate the material and moral harm of the occupation. Researchers and experts have been active, and this issue remains a priority on the political agenda. However, in the interests of justice, we have a lot of work to do, ”the press service of the Ministry of Foreign Affairs of the Baltic Republic quoted the head of the Ministry of Justice of Lithuania Elvinas Jankevičius.

According to the minister, the Baltic states “need to try to achieve historical justice and responsibility of the successor of the USSR for the damage caused”.

“In addition, it is important to understand that our history, our suffering, our memory and our desire for justice are not only historical and legal issues. These are European and global issues, ”added Jankevičius.

A meeting of the Baltic Ministers of Justice on a similar issue took place in August 2018. Latvia and Estonia then stated that they would seek compensation from Russia through the UN mechanisms.

The Baltic republics substantiate their demands on Moscow with the supposedly “violent” nature of joining the Soviet Union in 1939-1940. The period from the moment of joining the USSR to the collapse of the Soviet Union in Latvia and Lithuania at the legislative level recognized as "occupation".

At the same time, experts note that such claims are unfounded, as evidenced by historical facts. In particular, in 1939, the Baltic governments entered into agreements with Moscow on defense in the event of Nazi Germany’s aggression. After that, units of the Red Army were stationed in the Baltic states. In 1940, the republics voluntarily joined the Soviet Union, but were soon captured by German troops. The Red Army liberated the Baltic states from the fascist occupation in 1944-1945.

Analysts emphasize that during the Soviet era, the Baltic states received generous subsidies and enjoyed serious privileges in comparison with other Soviet republics. In particular, the average salary there was higher than in the country. In addition, the Soviet government created hundreds of industrial enterprises in the region, built large ports, an extensive network of roads and oil pipelines.

• Riga seaport, 1973
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As the head of the research programs of the Historical Memory Foundation Vladimir Simindey noted, in Soviet times “a balanced economic policy was pursued”, and the Baltic countries were part of a single economic system, all of which were interconnected. Under these conditions, he explained, there could be no one-sided pumping of resources from one region in favor of another.

“To say that the USSR was pulling money from Latvia is categorically wrong. In the postwar years, funds were invested in enterprises that could be most quickly restored or built. The industrialization of the republic continued in the future, ”the expert explained in an interview with RT.

At the same time, Nikolai Mezhevich, the chief researcher at the Institute of Europe of the Russian Academy of Sciences, notes that it is not by chance that Bordans cannot name the amount of the alleged “damage”, but suggests creating some mechanism for calculating it.

“In reality, it is impossible to prove the expenses of the republic in Soviet times. After all, Latvia was part of the USSR, in which the rules of the inter-republican balance were in force, and it is unrealistic to calculate the labor contribution of each republic, ”an RT analyst said.

“Exhausted the potential”

The Russian authorities have repeatedly stated that the claims of the Baltic countries regarding the payment of compensation have no basis.

“Russia does not accept either the allegations of the“ occupation ”of the Baltic states by the Soviet Union, or the absurd,“ legal and historical ”grounds that absolutely have nothing to do with it, which are the essence of the claims against Russia, including the material nature,” Russian Foreign Ministry spokeswoman Maria Zakharova said on August 23, 2018 during a briefing.

According to her, claims against Russia fit "into the general course of complicating bilateral relations." At the same time, Zakharova emphasized that this is being done "for the sake of narrow political interests and contrary to common sense."

His disagreement with the term "Soviet occupation" and the requirements of compensation was also expressed by the press secretary of the President of Russia Dmitry Peskov. He noted that the Baltic countries should not forget about the contribution of the Soviet Union to the development of infrastructure, economic and social spheres of the Baltic states.

As Nikolai Mezhevich noted, after leaving the USSR on a voluntary basis, the Baltic republics “have no legal basis” for reimbursing funds.

“Latvia, Lithuania and Estonia do not have the right to demand any compensation, since they voluntarily left the USSR and thereby interrupted political and economic relations with this state,” the expert said.

According to Mezhevich, the claims of the Baltic countries to Russia to pay compensation is an attempt to get additional income amid the fact that the Baltic States are going through hard times economically and socially.

“In Latvia, the economic situation is quite complicated now. The same applies to other Baltic republics. They practically exhausted the potential that remained with them after the collapse of the USSR and which gave them the opportunity after 1990 to develop and change their economy according to market requirements. The Baltic states have lost all their industrial potential. Agriculture has also been hit in many ways, because the EU is not interested in producing certain categories of goods on its territory, ”the analyst said.

• Zeltini, Latvia
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Mezhevich emphasized that in the situation with the coronavirus pandemic, the economic situation in the Baltic states has become critical and the current ruling class of the Baltic republics “has nothing to offer its people who are suffering from the economic decline”.

“In these conditions, we need a unifying agenda, an external enemy. For this, anti-Russian speeches are being made: thereby, the authorities want to rally the “titular population”, which will then go to vote for the nationalists, ”the expert said.

However, he is confident that Latvia and the other two Baltic republics will not be able to obtain compensation from Russia.

A similar position is held by Vladimir Simindey. According to him, the attempts of the Baltic countries to obtain payments from Russia for the so-called damage from the "Soviet occupation" are "only a ritual activity." It is repeated from year to year when a political need arises for this.

“These political speculations have been going on for years. Special commissions have been around for many years. However, in practice, their activities are completely useless. These unfounded and absurd claims will be predictably ignored, ”the expert concluded.