This chapter aims to answer two questions: first, what is the role of the Soviet Far East in Soviet foreign trade relations; and second, what is the role of foreign trade in promoting the regional development of the Soviet Far East. Since the decline in world oil prices in late 1985 there has been a change in the dynamics of Soviet foreign trade. The following discussion of the role of Japanese trade in Far Eastern development gives greatest attention to compensation agreements, because these have significantly influenced the pattern of regional development, but also considers resource exports and border trade. Statistics on Soviet diamond exports are difficult to obtain since the Soviet foreign trade yearbooks do not report information on many non-ferrous metals and minerals. In the more general context of Soviet foreign trade, the mining of gold and diamonds are the most important export-oriented activities.