Soviet Occupation Of Austria: What's The Truth?

Following World War II, Austria was jointly occupied by the United Kingdom, the Soviet Union, the United States, and France. The Soviet Union's occupation of Austria lasted from 1945 to 1955, during which time the country was divided into four zones, with Vienna shared collectively by the occupying forces. The Soviets exploited Austria for economic gain, expropriating over 450 businesses and placing almost all Austrian oil fields under Soviet administration. The Soviets also engaged in looting and pillaging, and committed acts of sexual violence against women. In 1955, the Austrian State Treaty was signed, granting Austria independence and ending the decade-long occupation.

The Soviet Union's economic exploitation of Austria

In the immediate aftermath of World War II, Austria was divided into four occupation zones, with the Soviet Union controlling the eastern part of the country, including Vienna. The Soviets exploited Austrian resources and industries to rebuild their own war-ravaged country. They expropriated and controlled over 400 formerly independent Austrian and German-owned businesses, consolidating them into a conglomerate called the USIA (Administration for Soviet Property in Austria). The USIA controlled a significant portion of key industries such as glass, steel, oil, and transportation, giving the Soviets substantial influence over the Austrian economy.

The Soviets also took advantage of the Potsdam Agreement, which allowed for the confiscation of "German external assets" in Austria. They dismantled and shipped industrial equipment valued at around $500 million to the Soviet Union as war reparations. This included the seizure of Austrian oil fields, which were a valuable economic asset for the country.

The Soviet occupation had a negative impact on Austrian businesses and the overall economy. Austrian companies that fell under Soviet control suffered from a lack of investment and general neglect, with many unable to compete with similar firms in western Austria. By 1955, most of the companies under Soviet control were close to bankruptcy or heavily indebted to the Soviet Military Bank. Additionally, the presence of the USIA created unfair competition for non-USIA Austrian businesses, as the USIA was exempt from Austrian tariffs and disregarded Austrian taxation.

The Soviet economic exploitation also contributed to social and political instability in Austria. The Communist Party of Austria, which was aligned with the Soviet Union, faced a significant loss of political support in the 1945 elections, receiving only 5% of the vote. This led to a more critical Soviet attitude towards the Austrian government and increased propaganda efforts in the country.

Overall, the Soviet Union's economic exploitation of Austria had far-reaching consequences, shaping the country's political, social, and economic landscape during the early post-World War II period.

The Austrian State Treaty

In the aftermath of World War II, Austria was divided into four occupation zones and jointly occupied by the United Kingdom, the Soviet Union, the United States, and France. Vienna, the capital, was similarly subdivided, with the central district being collectively administered by the Allied Control Council. This occupation lasted from 1945 until 1955, with the final troops departing on October 25, 1955.

The breakthrough in negotiations came in February 1955, following the death of Joseph Stalin in 1953 and the subsequent warming of relations known as the Khrushchev Thaw. The Soviet Union, under the leadership of Nikita Khrushchev, pursued a more flexible policy of "peaceful coexistence," which facilitated the final negotiations. The Austrian State Treaty was signed by all four occupying powers on May 15, 1955, and officially came into force on July 27, 1955.

As per the terms of the treaty, Austria was established as a free, sovereign, and democratic state. It included provisions for Soviet oilfield concessions, property rights of oil refineries in Eastern Austria, and the transfer of assets of the Danube Shipping Company to the USSR. Additionally, the treaty expressly detailed the minority rights of the Slovene and Croat minorities. It forbade any political union with Germany, as had occurred in 1938, and prohibited Nazi and fascist organizations.

The Soviet Union's political domination of Austria

The Soviet Union's political influence began with the installation of a provisional federal government under Dr Karl Renner, a Social Democrat. Austrian communists, under the leadership of exiled comrades, controlled crucial ministries within Renner's government, including the interior and education ministries. This gave them significant influence over the police and propaganda. However, the Soviet Union's political grip on Austria began to weaken as early as 1946, when the first free national elections were held, and the Communist Party received only 5.42% of the vote.

The Soviet Union's primary interest in Austria seemed to be economic exploitation. They expropriated over 450 formerly German-owned businesses and placed almost all Austrian oil fields under their administration. The Soviet holding company, USIA, controlled about 10% of the Austrian workforce at its peak and included formerly independent Austrian companies, factories once owned by German corporations, and former SS enterprises. The USIA aimed to be self-sufficient and traded primarily with Eastern Europe, taking advantage of its exemption from Austrian tariffs and foreign trade regulations.

Despite the Soviet Union's economic grip on Austria, there was a strong anti-Soviet sentiment among Austrians, and the country was never fully incorporated into the Soviet sphere of influence. The Soviet occupation was deeply unpopular, and eastern Vienna lost about 11% of its population as people fled the Soviet zone.

In 1955, the Soviet Union agreed to the Austrian State Treaty, which granted Austria its independence and neutrality. This treaty ended the Soviet Union's political domination of Austria, and all occupying forces withdrew from the country.

The Soviet Union's military presence in Austria

The Soviet occupation of Austria lasted from 1945 to 1955, during which time the country was subjected to economic exploitation and political interference. The Soviets expropriated and controlled hundreds of Austrian factories and businesses, particularly in the oil industry, and engaged in systematic looting and pillaging. The Soviet presence was deeply unpopular, and eastern Vienna lost about 11% of its population as people fled the Soviet zone.

The Soviets also interfered in Austrian politics, installing a provisional federal government under Dr Karl Renner, in which Austrian communists controlled crucial ministries. However, the communists' influence waned after they performed poorly in the 1945 elections, receiving only about 5% of the vote. The Soviets' attempts to exert political control through the Austrian Communist Party (KPÖ) failed, and by 1955, the majority of the companies they controlled were close to bankruptcy.

The Soviet military presence in Austria ended in 1955 with the signing of the Austrian State Treaty, which granted Austria its independence and neutrality. The last occupation troops left the country in October of that year.

The Soviet Union's propaganda in Austria

• Portraying Austria as a Victim: The Soviet Union portrayed Austria as the first victim of Nazi Germany, as declared in the Moscow Declaration of 1943. This narrative was repeated in directives to Soviet soldiers and used to justify their presence in Austria. It aimed to differentiate Austrians from Germans and gain sympathy among the Austrian population.
• Denouncing Nazi Crimes: Soviet propaganda highlighted the atrocities committed by Nazi Germany during the war, particularly on the Eastern Front. This served to justify the Soviet Union's actions and present themselves as liberators of Austria from Nazi rule.
• Encouraging Collaboration: The Soviets encouraged Austrians to collaborate with the occupying forces and the Communist Party of Austria (KPÖ). They emphasised the benefits of cooperation and attempted to foster goodwill by respecting local traditions and appointing local mayors based on the advice of locals.
• Propaganda through Media and Culture: The Soviets utilised various media channels, such as newspapers, radio, and films, to spread their propaganda messages. They also promoted Soviet culture and values through art, literature, and performing arts.
• Control of Education: The Soviets sought to shape the minds of Austrian children and youth by controlling the education system. They established organisations like the Young Pioneers to indoctrinate children with communist values and create a "New Soviet Man."
• Portraying the Soviet Union as Peaceful: The Soviets portrayed themselves as a peaceful nation seeking to liberate Austria from Nazi rule. They emphasised their commitment to freedom and independence for Austria, which appealed to Austrians' desire for self-determination.
• Promoting the Communist Party of Austria (KPÖ): The Soviets supported and promoted the KPÖ, especially during the initial stages of the occupation. They aimed to increase the party's influence and popularity among Austrians, positioning it as a potential governing force.
• Exploitation of War Crimes: The Soviets exploited instances of war crimes committed by Nazi Germany, such as the enslavement of Soviet POWs and civilians. They used these crimes to justify their actions and portray themselves as avengers and protectors.
• Portraying the Soviet Union as Superior: The Soviets emphasised their economic and military power, portraying the Soviet Union as a superior alternative to capitalism and fascism. They highlighted the achievements of the Soviet system, such as space exploration and scientific advancements.
• Utilising Personal Connections: The Soviets leveraged personal connections with Austrian politicians, such as Karl Renner, to gain influence and shape political decisions. They also used propaganda to promote specific individuals, like Renner, who were favourable to their interests.

Frequently asked questions