Soviet Joint Ventures: Keeping an Eye on the Goalposts

Since January 1987, there have been many amendments to the Soviet Joint Venture Law. This proliferation of amendments has caused some confusion. For example, in the past 3 years, the provisions of the law regarding the approval process have been amended twice, with both amendments having the effect of substantially facilitating the process. Even though there has been significant decentralization, central authorities have retained relatively strong control over the formation of joint ventures in so far as joint ventures must be registered with the USSR Ministry of Finance in order to become legal entities. The December 1988 decree amended the following: 1. labor relations, 2. auditing of financial activities, 3. better financial considerations for joint ventures in the Far East, and 4. payment of housing for foreign staff workers in rubles.