For one Soviet ruble – one hundred Russian: compensation for Soviet contributions is back on the agenda

The Russian government has once again suspended payments of Soviet deposits, now until January 1, 2027. The reason is quite clear: there is no money in the deficit budget. And to pay off debts on pre-reform deposits, it takes not billions, but trillions of rubles. Nevertheless, the “bearded” issue of compensation for Soviet contributions is not removed from the agenda. The problem of payments was discussed at a meeting of the State Duma Committee on the Financial Market.

In truth, more than three decades later, few holders of old Soviet savings books hope for even partial compensation for their deposits.

“burnt” in the flames of hyperinflation in the early 90s. Since 2003, the government has been constantly postponing the fulfillment of its debt obligations – first for a year, and now for three years at once.

Let us recall that in 1995, Russia adopted a law on the preservation of citizens’ savings that were deposited before June 20, 1991 in Sberbank or placed in government securities before January 1, 1992. But there was never any real money in the treasury for this, either in the “dashing” 90s or in the 21st century.

In order to implement the law on full compensation of pre-reform deposits of Russians, in 2023 these purposes would require (taking into account the inflation that has accumulated over three decades) 52 trillion rubles from the budget, and in 2024 almost 54 trillion. Where can you get that kind of money if last year the entire Russian GDP was estimated at 150 trillion?

There is already talk in government circles about repealing the 1995 law. As they say, the harsh truth is better than a constant freeze on payments until “better times.” Moreover, many of the owners of those Soviet savings books are no longer in this world.

However, parliamentarians offer two options for getting out of this situation. The first is to transfer depositors’ pre-reform savings into Sberbank debt obligations. That is, shift this problem from the shoulders of the state to a separate financial structure – albeit a state one.

The second proposed option is to immediately begin paying off debts. Just not everyone and not at once, but start with people who have already turned 78 years old.

The question that matters is: in what proportion should heavy debts be paid? If you look at purchasing power parity, then one Soviet ruble is worth 300-400 current rubles.

But in fact this is an overvaluation of the Soviet ruble. During the period of Gorbachev’s perestroika, when inflation was accelerating, a lot of money was printed that was not backed by goods. Even in Moscow stores there was a total shortage, not to mention the periphery.

Some experts suggest giving 100 modern rubles for one Soviet ruble. Because the current Russian ruble is much stronger than its Soviet predecessor: it is freely convertible and you can buy anything you want without standing in lines. That is, for one Soviet ruble it is like paying one dollar, which (coincidentally) at the existing exchange rate costs exactly about 100 rubles.

However, even with this ratio, compensation for pre-reform contributions looks like a real utopia. As is known, about 300 billion Soviet rubles were stored in savings books of that time, which, when converted according to the proposed scheme, gives 30 modern trillions. To understand: this approximately corresponds to the sum of all annual federal budget revenues. That is, the whole country will have to work for a year to pay off those old debts – pure utopia!

Doctor of Economic Sciences, ex-State Duma deputy Pavel Medvedev says that the intentions of deputies to repay pre-reform deposits are empty talk, a desire to simply promote themselves. Only once such payments were made in 1996, and with the participation of our interlocutor.

“I was then a State Duma deputy and asked for an appointment with the then Prime Minister Viktor Chernomyrdin,” he recalls. – I had a technical problem that I couldn’t solve on my own. I was given 15 minutes to communicate with the prime minister. I stated my question in three minutes, he understood it in half a minute and supported me. There were still a full 13 minutes left until the end of the audience…

In general, the deputy took advantage of this time and proposed to the prime minister to index Soviet deposits for old people over 80. “I thought you were a smart person,” Chernomyrdin told him, “Do you understand that the budget is bursting at the seams? And you are meddling with your indexing.” Medvedev told him: “They never ate enough! Let’s respect our elders.”

– This had an immediate effect on the prime minister! – continues Pavel Alekseevich. “He immediately called his secretary and gave instructions. The effect of that compensation was colossal! 80-year-olds came to me, the deputy, and, as if by agreement, thanked me with the same words. Well, we bought the products we’ve been dreaming about for a long time.

– So you think that paying off Soviet debts is an unrealistic task?

– It cannot be solved simply arithmetically. People saved money to buy a cooperative apartment or a car. In Soviet times, this was very difficult to do, but it is possible. And at what rate should they be compensated for those purchases not made? Apartments, roughly speaking, have risen in price by 1000 times, cars by 200. And deputies raise this topic every year, like a broken record. They know that the problem will not be solved, but they stubbornly demonstrate their “concern for the people.”