USSR supplied clandestine cash to Congress party: CIA

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NEW DELHI: The Soviets supplied clandestine money to the Congress and individual politicians, with up to 40% of Indira Gandhi’s parliamentarians receiving political contributions from Moscow, a recently declassified CIA says, mirroring similar assertions in highly classified KGB records leaked in 2005.

The CIA report dated December 1985, on the prevailing Soviet influence in India, is heavily redacted but says that Moscow was deeply involved in the Indian political process through covert contributions to parties and individuals.

“As many as 40% Congress MPs in Mrs Gandhi’s last government had received Soviet political contributions,” the report titled “The Soviets in India” reads, adding that “the Soviet embassy maintains a large reserve of rupees for various uses — including clandestine payments to Congress politicians.”

The CIA report was similar to claims in a 2005 book by former KGB operative Vasili Mitrokhin who smuggled thousands of secret documents out from the Soviet Union. The documents claimed that Indira Gandhi was sent money in suitcases for the Congress party and the KGB had funded election campaigns of former defence minister VK Krishna Menon, besides four other Union ministers in the 1970s.

The CIA documents accessed by ET allege Soviets provided kickbacks to the Congress party through arrangements with Indian businessmen. It also named the CPI and CPM as major benefactors of Soviet funding. “Soviet funding reaches the two Communist parties, the CPI and CPM through a combination of kickback schemes, normal business transactions and direct cash payments,” the report said.

Acknowledging that not all politicians accessed to the financial inducements, the heavily censored CIA report refers to individuals who allegedly cut deals with the Soviets, including a `highly ambitious and capable” politician who `had been a possible challenger to Mrs Gandhi”.

The CIA’s assessment then was that the funding by the KGB gave ready access to many leaders and helped Moscow influence Indian policies. In the leaked KGB papers revealed by Mitrokhin too, India is described as a model of the KGBs infiltration in third world governments, with scores of sources across the government.

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USSR supplied clandestine cash to Congress party: CIA
 
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Reactions: R!cK and Angel Eyes
Indira Gandhi was directly in alliance with USSR and was natural for USSR to give funds. CIA gave funds to sponsor Janata Party in 1975, on the other hand. That was history of India
 
Indira Gandhi was directly in alliance with USSR and was natural for USSR to give funds. CIA gave funds to sponsor Janata Party in 1975, on the other hand. That was history of India
Shastri was assassinated by USSR just to ensure that Indira takes over as PM of India.
 
Shastri was assassinated by USSR just to ensure that Indira takes over as PM of India.
Yes, that is true. Before Shastri came, Nehru was close to CIA. USSR wanted to get to India and hence got a deal with Indira. USA retaliated after 1974 nuclear blast to show Indira that she has no hold over the people and USA still has control by funding Janata Party.

This was Indian history
 

The Breakup of the Soviet Union: A Major Historical Transition​

The Soviet Union officially dissolved on 26 December 1991, ending a country that had existed since 1922. As a result, 15 independent countries emerged, changing the political and economic landscape of Europe and Central Asia.

The transition did not happen overnight. Over the following years, governments, institutions, businesses, and citizens adapted to new political systems and economic policies. Historians continue to study this period because of its lasting influence on world affairs.

Changes in Government​

With the end of the Soviet Union, the former republics became independent nations. Each country had to establish its own government, constitution, legal system, foreign policy, and public institutions. Responsibilities that had previously been handled by the central Soviet government were transferred to the new national governments.

As these countries developed their own systems, the pace and direction of change differed from one nation to another.

Economic Transition​

The Soviet economy had been centrally planned, with the government controlling production, prices, and the distribution of goods. After the breakup, many countries began introducing market-based economic reforms.

This transition created several challenges. Supply chains were disrupted, many state-owned businesses were restructured or privatized, and new financial and regulatory systems had to be developed. In several regions, inflation rose sharply, reducing the purchasing power of many households.

Everyday Life​

The economic changes also affected daily life. During the early 1990s, shortages of everyday goods were reported in many areas. Basic items such as bread, milk, cooking oil, sugar, and soap were sometimes difficult to obtain, and long queues at shops became common.

The availability of products varied by location, while imported goods were often expensive or limited. Public services and distribution networks were also adjusting to new administrative systems, which affected the supply of goods in some regions.

Foreign businesses, international organizations, and diplomatic missions operating in the region also adapted to changing laws, customs procedures, and business regulations introduced by the newly independent countries.

Moving Toward Market Economies​

Many of the former Soviet republics introduced reforms aimed at building market economies. These included privatizing state-owned enterprises, allowing private businesses to operate, reforming banking systems, and opening their economies to international trade and investment.

The results differed across countries. Some adapted more quickly, while others experienced longer periods of economic adjustment before recovery began.

Global Impact​

The breakup of the Soviet Union marked the end of the Cold War and changed international relations. It influenced global politics, security, trade, and diplomacy, with effects that continue to shape international affairs today.

The transition is also studied as an example of the opportunities and challenges involved in changing both political institutions and economic systems at the same time.

Looking Back​

More than three decades later, the breakup of the Soviet Union remains an important chapter in modern history. It led to the creation of new independent nations and significant political and economic reforms, while also presenting considerable challenges during the transition. Understanding this period provides valuable insight into the development of the former Soviet republics and their place in the world today.

References​