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German–Soviet Credit Agreement (1939)
The German–Soviet Credit Agreement (also referred to as the German–Soviet Trade and Credit Agreement) 〔Documents on German Foreign Policy, 1918-1945. Series D (1937-1945) Washington, D.C.: U.S. Gov. Printing Office, 1949-64 vol. v. VI The last months of peace, March-Aug. 1939.--v. VII The last days of peace, Aug. 9-Sept. 3, 1939 , signed on August 19, 1939〕 was an economic arrangement between the Soviet Union and Nazi Germany whereby Soviet Union received an acceptance credit of 200 million Reichsmark. over 7 years with an effective interest rate of 4.5 percent. The credit line was to be used during the next two years for purchase of capital goods (factory equipment, installations, machinery and machine tools, ships, vehicles, and other means of transport) in Germany and was to be paid off by means of Soviet material shipment from 1946 onwards. The economic agreement was the first step toward improvement in relations between the Soviet Union and Germany. The next day after the Credit Agreement, the Soviet Union went to war against Japan, in a successful four-week military campaign in the Far East.〔Timothy Snyder, ''Bloodlands'', 2010〕 The Nazi-Soviet Pact was signed four days after the Credit Agreement. The 1939 German–Soviet Commercial Agreement renewed declined Nazi–Soviet economic relations and was adjusted and expanded with the larger German–Soviet Commercial Agreement in February 1940 and January 1941 German–Soviet Border and Commercial Agreement. German shipments to the Soviets became tardy and failed to provide all that was promised the closer the date of Barbarossa came. The Soviets fulfilled their obligations to the letter right up until the invasion, wanting to avoid provoking Germany. All these agreements were terminated when Germany invaded the Soviet Union in June 1941, in violation of the treaties between the two countries. Soviet trade with Germany in the pre-invasion period ended up providing the Germans with many of the resources they needed for their invasion of the Soviet Union.
==Background==
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