The dissertation, for the first time in historiography, presents the research on the
financial policy of the Russian occupation regime in Galicia and Bukovina during the First
World War by its main constituents: monetary and price policy, tax and customs policy
and budget policy. The organization and activities of the financial administration created
by the Russian occupation authorities in the captured territories were considered. It was
proved that the restoration of strategic industries (oil and oil refineries, salt factories, coal
mines) under the economic control of the Financial Affairs Department was aimed at using
available natural resources and production capacities to meet the needs of the Russian
army and obtaining profits to the state treasury of the occupying country.
It was figured out that the policy in the sphere of money circulation was ineffective
and was not accompanied by the perception of Russian money by the local population.
Difficulties in money circulation stimulated the formation of a critical state of local
finance. In search of financial resources magistrates forced to use a special method of
releasing urban bonds. There was a lack of a complete banking system in the occupied
territories. Most of the banks, especially those that were based on Austrian state or foreign
capital, were removed from the territory of Galicia and Bukovina. Other financial
institutions, mostly local banks, savings banks, credit societies, partially restored their
activities.
It was proved that the pricing policy was discriminatory in relation to the occupied
territories. As a result of the comparative analysis of all types of prices that simultaneously
functioned in the occupied territories (fixed prices, procurement prices, requisition and
reference prices), it was established that the low level of procurement prices for which
compulsory purchasing of agricultural products was carried out for the needs of the
Russian army, confirmed the predatory nature of the pricing policy of the occupation
authorities in relation to the local population and producers of Galicia and Bukovina. The
rigid policy of requisitioning food and fodder alongside with massive robbery led some
regions to complete poverty and hunger. Setting the tax on essential products in cities and
counties resulted in the spread of speculation and active formation of the shadow food
market. It was noted that local self-government authorities (magistrates and gmina
authorities) played an important role in preventing famine in territories occupied by
Russian troops and hindering price rises.
In the field of customs and tax policy, there was a delay in the creation of customs and
financial authorities by Russian officials, which led to a disorder of taxation and abuses at
all levels of the civilian occupation authorities. The emphasis was placed on the fact that
the taxation of the local population of the occupied territories by the state and local taxes
should not have been carried out taking into account the requirements of international law
(IV Hague Convention of 18.10.1907 "On the laws and customs of the war on land"). That
is, the taxes should have been handled by the tax legislation adopted by the Austro-
Hungarian government. On the one hand, that legislative restriction did not allow the
occupation authorities to fully extend Russian tax legislation to the territory of Galicia and
Bukovina, and, on the other hand, the complexity of understanding of Austrian law, the
lack of lists of taxpayers and tax accounting documents for property taxes did not allow
calculating the tax before payment in a legitimate way. This led to a chaotic and
disproportionate collection of taxes and the introduction of a hybrid taxation system in the
35
occupied territory of Galicia and Bukovina, which combined elements of the Austrian and
Russian tax systems.
