Page 58 - Countertrade

met all its needs for raw materials and created a reserve for 1995. This
allowed it to plan for normal working in the first quarter of 1995.

Seventy to eighty per cent of the payment for its raw materials was made
by counter trade. This trade was negotiated by value. Agreement was
fixed on prices and on specific products and a contract drawn up. For
example, the Natalinsk Glass Factory (NGF) which supplies the Revda
enterprise had spare capacity. Their market was all of the Russian
federation where they had 30 large and 50 small customers. This had
shrunk to five large and 40 small customers. Lack demand for its output
meant a shortage of money for NGF. Revda took over 50 per cent of
NGF’f output. In turn, NGF took fuel, raw materials and stock for its shop
from Revda. NGF itself gave products in place of 40 per cent of wages
due. If such counter trade had stopped both parties would have suffered.
The flexibility of the system allows the parties to benefit.