Brock, Gregory (2000). The ZATO archipelago revisited - Is the federal government loosening its grip? A research note. Europe-Asia Studies, 52(7)
In the literature, the closed cities of Russia or ZATO have been described both in terms of their geographical location and public finance. The system of closed cities can be seen as a fiscal archipelago weakening Russia’s ability to become a true federation. This note examines how the closed cities fared during the 1998 crisis, using very recent 1998 annual budget data combined with earlier 1996 data to reveal a public finance crisis within cities containing some of Russia’s most sensitive production plants. In addition, new data reveal that regions where the cities are located to interact fiscally with the closed cities but only in the area of road maintenance.