Soviet-Norwegian Economic Relations in the First Years After the Second World War: From Cooperation to Confrontation

Abstract

The article analyzes Soviet-Norwegian economic relations after the World War II. All this is considered in the context of such international events of 1948—1949 as accepting Marshall Plan aid and Norway’s entry into the NATO alliance. After the liberation of Norway in 1945 the Norwegian economy came under severe inflationary pressure. That happened as a result of the increase in money supply and the reduction of domestic production and imports. In this case, trade with the Soviet Union could have been a good alternative for the development of the Norwegian economy. The previous conditions of pre-war arrangements between Norway and the USSR continued to operate and after the war. All trade between the two countries had been settled in Norwegian kroner with the provision of the possibility of offsetting the delivery of products. Norway understood perfectly well necessity of foreign policy balancing act by striving to maintain good neighbourly relations with The Soviet Union. That promoted enhanced trade relations between both countries. Although the bulk of the Norwegian trade was with the USA and the United Kingdom. This only accelerated the depleting currency reserves of country The Norwegian nation found itself in deep financial embarrassment. So, the Norwegian Government had accepted invitation to the conference in Paris which met from July to September 1947 to discuss the details of Marshall Aid. Such a decision contributed to the further to a cooling of relations between the Norway and the USSR and declining trade between the countries.