The Council for Mutual Economic Assistance, known as Comecon, was set up at a Moscow economic conference on 5-8 January 1949 and announced on 25 January. The founding members were the Soviet Union, Bulgaria, Czechoslovakia, Hungary, Poland and Romania; Albania joined in February 1949 and East Germany in 1950. Wikipedia describes it as the Eastern Bloc’s response to the Marshall Plan. By the late 1980s it had ten full members: the Soviet Union, six East European states, and Mongolia (from 1962), Cuba (1972) and Vietnam (1978). Albania stopped taking part in 1961 and formally withdrew in 1987.
A charter modelled on the 1957 Treaty of Rome was adopted in 1959. The Council coordinated trade and planning among the members from its Moscow headquarters. Joint projects included the Druzhba oil pipeline, and an International Bank for Economic Cooperation, founded in 1963, managed the transferable rouble, a currency for settling accounts among members.
The revolutions of 1989 did not formally end Comecon. East Germany’s membership ended in 1990, and from 1 January 1991 members traded with one another in hard currency. The final council session, in Budapest on 28 June 1991, agreed to dissolve the Council within 90 days. No body took over its seat or membership. The Commonwealth of Independent States was founded on 8 December 1991 and the Eurasian Economic Union treaty entered into force on 1 January 2015; both have different members. The International Investment Bank, founded under Comecon in 1970, stopped operating after the USSR dissolved and was revived by Russia in 2019 as a separate institution.
Worth remembering
- The Druzhba oil pipeline was built under a Comecon decision taken in Prague on 18 December 1958; Czechoslovakia received its first oil in 1962 and the whole line was operating by October 1964.
- Cuba, a full member from July 1972, received oil in exchange for sugar on terms Wikipedia describes as highly favourable to Cuba.
- The Moscow headquarters was sold in 1991 and 1992 and later housed the Moscow city government.
Gallery
Further reading
Sources
- Founded at a Moscow economic conference 5-8 January 1949, announced 25 January; founding members; Albania 1949 and East Germany 1950; response to the Marshall Plan; 1959 charter modelled on the Treaty of Rome; transferable rouble managed by the International Bank for Economic Cooperation (founded 1963) Wikipedia
- Final council session on 28 June 1991 in Budapest, agreement to dissolve in 90 days; hard-currency trade from 1 January 1991; March 1990 Prague meeting; ten full members in the late 1980s; Moscow headquarters sold 1991-1992 Wikipedia
- At the final session on 28 June 1991 an agreement was reached to dissolve in 90 days; GDR membership 1950-1990; Mongolia joined 1962, Cuba about 1972, Vietnam 1978 Radio Prague International
- Comecon dissolved 28 June 1991 in Budapest LMU Munich, Institute of Contemporary History
- Druzhba pipeline: a Comecon session in Prague decided on it on 18 December 1958; construction from 1960; first oil to Czechoslovakia 1962; whole pipeline operating October 1964 Wikipedia
- International Investment Bank founded under Comecon (agreement 10 July 1970), stopped operating after the USSR dissolved, revived by Russia in 2019 Wikipedia
- Commonwealth of Independent States founded 8 December 1991 Wikipedia
- Eurasian Economic Union treaty signed 29 May 2014, in force 1 January 2015 Wikipedia
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