Page 59 - Countertrade
P. 59
The counter trade chain was often very long with five or six parties
involved. Under these circumstances calculating profit was extremely
difficult. It required the determination of initial manufacturing costs, the
estimation of expected profit and the calculation of the changes in the rate
of exchange of the rouble. As a consequence of this process the profit
levels fluctuated and the real profit was always less than the calculated
profit on which tax was paid. This was a consequence of the accounting
system’s inability to cope with the quantity and complexity of information.
PROFIT (Roubles)
1990 650,000
1995 7 billion 770 million
On average business to a value of three billion roubles was carried out by
counter trade. In 1994 this represented 68% of profit.
