Abstract: This paper aims to present and analyze the involvement of Yugoslav companies in the construction of the Urengoy-Pomary-Uzhgorod export gas pipeline using the source material from the Diplomatic Archives of the Ministry of Foreign Affairs. This involvement occurred in a specific international context characterized by American sanctions imposed on the Soviet Union following the conclusion of the “Deal of the Century“ related to the export of natural gas from the Soviet Union to Western European countries. Furthermore, this article explores the Soviet building industry's crisis during economic stagnation and the rise of abandoned construction sites, known as dolgostroj, using the Yugoslav instance as an example.
Keywords: Yugoslavia, Soviet Union, “Deal of the Century“, sanctions, natural gas, gas pipeline, energy cooperation
Summary
The aim of this paper is to present the participation of Yugoslav companies in the construction of the Urengoy-Pomary-Uzhgorod gas pipeline, also known as the “Deal of the Century”, representing the largest industrial agreement between the Soviet Union and Western European states. This agreement constituted a kind of energy integration of the European continent. Yugoslavia welcomed the agreement’s conclusion, considering the Soviet Union its major trading partner, and sought to participate in the energy integration process, offering the services of its companies in the Soviet market for energy construction. Yugoslavia’s involvement in the project was directly tied to resolving the problem of securing long-term natural gas imports. This issue was successfully addressed, given that the total import of natural gas in 1985 amounted to 3.06 billion cubic meters, with 97% coming from the Soviet Union. On the other hand, the question of alleged Soviet intentions to use Yugoslavia as a channel to bypass sanctions remained unresolved. Some Soviet inclinations are hinted at in letters received from the Yugoslav embassy, especially regarding financial issues. Embassy officials concluded that the Soviet side had lost interest in further engagement with Yugoslav firms due to political and economic needs to reduce the impact of economic sanctions and meet contractual obligations to West Germany. When it became apparent that the sanctions would be unsuccessful, the decisive factor in future partner selection would be solely the price. Based on this data alone, it is challenging to draw a definite conclusion, especially considering that the sanctions were ineffective and soon lifted. For this reason, it cannot be stated with certainty that the Soviet Union attempted to bypass American sanctions through Yugoslavia. However, this assumption opens the possibility for further exploration of this aspect of Soviet-Yugoslav relations. Finally, the article describes the construction process of compressor stations, highlighting all the problems encountered by Yugoslav enterprises and depicting workers’ daily activities. Additionally, this construction site description serves as evidence of a much larger Soviet phenomenon from the 1980s - the emergence of dolgostroj, abandoned and unfinished construction projects reflecting the decline of the Soviet construction industry as a consequence of economic stagnation during the 1980s.