Gorbachev Bans Republics’ Trade Deals
President Mikhail S. Gorbachev virtually banned the Soviet republics and individual enterprises from direct trading with one another and foreign partners, ruling Friday that their first duty was to supply the centralized Soviet state.
In a decree, Gorbachev banned all individual deals for 1991 that could damage existing economic ties and said enterprises should immediately sign contracts for supplying the state.
Gorbachev’s decree was aimed at restoring order to a deteriorating economy. Production is slumping and worsening distribution links are leading to a critical shortage of basic goods.
Most of the 15 republics, eager to benefit from their own resources, have signed contracts with each other instead of agreeing to sell goods to the state at low prices.
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