Cold War (1985–1991) reduced some strategic arms unilaterally. Fundamental to the dissolution of the Soviet Union, the Gorbachev policy initiatives of Restructuring ("Perestroika") and Openness ("Glasnost") had ripple effects throughout the Soviet world, including eventually making it impossible to reassert central control over Warsaw Pact member states without resorting to military force. On June 12, 1987, Reagan challenged Gorbachev to go further with his reforms and democratization by tearing down the Berlin Wall. In a speech at the Brandenburg Gate next to the wall, Reagan stated: While the aging communist European leaders kept their states in the grip of "normalization", Gorbachev's reformist policies
Foreign trade of the Soviet Union from these countries was resold to the West for hard currency. In the late 1980s, the Soviet Union attempted to increase its exports of nonmilitary goods to these countries. In May 1986, the Soviet Union and Iraq agreed to increase Soviet nonmilitary equipment sales, and in August 1986 an attempt was made to revive Iraqi gas sales. When Mikhail Gorbachev delivered his report on the CPSU's economic policy on June 12, 1985, he noted that growth in exports, particularly machinery and equipment, was slow because the poor quality of Soviet goods prohibited them from being competitive on the world market.