Page 50 - Countertrade

Prior to 1990, as with all other enterprises in the VOS system, the Revdan
enterprise operated in stable and predictable environment: all VOS
enterprises were accommodated within an overall government plan and
were guaranteed raw materials supplies and market outlets.

The VOS enterprises suffered from the collapse of the industrial base of
the Commonwealth of Independent States (CIS). The Revdan Enterprise
suffered an 80 per cent fall in demand for its products. Ivan’s approach to
this problem was to introduce new products based on new technologies.
His objective was to employ 50 per cent visually disabled and 50 per cent
able-bodied people. Some of the new technologies could not be staffed
by the visually disabled. This led him to make another decision: he created
new enterprises which were legal entities and which, mostly, employed
only the able-bodied.

These enterprises were set up to produce:

1 • plastic moulds

2 • painting

3 • galvanic coatings

4 • arts paintings

5 • stone processing

The new enterprises would be taxed under the general taxation rules. It
was therefore his policy that they should not record a profit but should
show only sufficient revenue to cover their wage and other costs. Any
profits would be attributed to the Revdan enterprise.