Russia's Nonpayment Problem in 1990's

Payment Relations between Government and Enterprises

Abstract

One of the most serious socio-economic problems in Russia has been a problem of nonpayment since 1992. The nonpayment between the government and enterprises endangered normal economic functioning in the country because the government as well as enterprises has accumulated overdue claims each other. Therefore, the pseud-settlement mechanism was formulated for facilitating daily socio-economic life, the example of which represents the triangle (non-) payment relation in providing housing utility services. Though both local government and natural monopolies haven't paid full each other, they can support the daily life of people in the region through utilizing various non-monetary means.