Military industries and those owned by the state, by Nazi party members, and by war criminals were confiscated. These industries amounted to approximately 60% of total industrial production in the Soviet zone. Most heavy industry (constituting 20% of total production) was claimed by the Soviet Union as reparations, and Soviet joint stock companies (German: "Sowjetische Aktiengesellschaften" - SAG) were formed. The remaining confiscated industrial property was nationalized, leaving 40% of total industrial production to private enterprise. The reparations seriously hindered the ability of East Germany to compete with West Germany economically.