Cold War ( 1985 – 91 ) The Cold War period of 1985 – 1991 began with the rise of Mikhail Gorbachev as leader of the Soviet Union . Gorbachev was a revolutionary leader for the USSR , as he was the first to promote liberalization of the political landscape ( Glasnost ) and capitalist elements into the economy ( Perestroika ) ; prior to this , the USSR had been strictly prohibiting liberal reform and maintained an inefficient centralized economy . The USSR , facing massive economic difficulties , was also greatly interested in reducing the costly arms race with the U . S . President Ronald Reagan , although peaceful confrontation and arms buildups throughout much of his term prevented the USSR from cutting back its military spending as much as it might have liked . Regardless , the USSR began to crumble as liberal reforms proved difficult to handle and capitalist changes to the centralized economy were badly transitioned and caused major problems . After a series of revolutions in Soviet Bloc states , and a failed coup by conservative elements opposed to the ongoing reforms , the Soviet Union collapsed in 1991 . Thaw in relations . After the deaths of three successive elderly Soviet leaders since 1982 , the Soviet Politburo elected Gorbachev Communist Party General Secretary in March 1985 , marking the rise of a new generation of leadership . Under Gorbachev , relatively young reform - oriented technocrats , who had begun their careers in the heyday of " de - Stalinization " under reformist leader Nikita Khrushchev , rapidly consolidated power , providing new momentum for political and economic liberalization , and the impetus for cultivating warmer relations and trade with the West . On the Western front , President Reagan ' s administration had taken a hard line against the Soviet Union . Under the Reagan Doctrine , the Reagan administration began providing military support to anti - communist armed movements in Afghanistan , Angola , Nicaragua and elsewhere . The Reagan administration also persuaded the Saudi Arabian oil companies to increase oil production . This led to a three - times drop in the prices of oil , and oil was the main source of Soviet export revenues . Following the USSR ' s previous large military buildup , President Reagan ordered an enormous peacetime defense buildup of the United States Military ; the Soviets did not respond to this by building up their military because the military expenses , in combination with collectivized agriculture in the nation , and inefficient planned manufacturing , would cause a heavy burden for the Soviet economy . It was already stagnant and in a poor state prior to the tenure of Mikhail Gorbachev who , despite significant attempts at reform , was unable to revitalise the economy . In 1985 , Reagan and Gorbachev held their first of four " summit " meetings , this one in Geneva , Switzerland . After discussing policy , facts , etc . , Reagan invited Gorbachev to go with him to a small house near the beach . The two leaders spoke in that house well over their time limit , but came out with the news that they had planned two more ( soon three more ) summits . The second summit took place the following year , in 1986 on October 11 , in Reykjavík , Iceland . The meeting was held to pursue discussions about scaling back their intermediate - range ballistic missile arsenals in Europe . The talks came close to achieving an overall breakthrough on nuclear arms control , but ended in failure due to Reagan ' s proposed Strategic Defense Initiative and Gorbachev ' s proposed cancellation of it . Nonetheless , cooperation continued to increase and , where it failed , Gorbachev reduced some strategic arms unilaterally . Other major Gorbachev policy initiatives , 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 in the Soviet Union exposed how a once revolutionary Communist Party had become moribund at the very center of the system . The growing public disapproval of the Soviet war in Afghanistan , and the socio - political effects of the Chernobyl accident in Ukraine increased public support for these policies . By the spring of 1989 , the USSR had not only experienced lively media debate , but had also held its first multi - candidate elections . For the first time in recent history , the force of liberalization was spreading from West to East . Revolt spreads through Communist Europe . Grassroots organizations , such as Poland ' s Solidarity movement , rapidly gained ground with strong popular bases . In 1989 , the Communist governments in Poland and Hungary became the first to negotiate the organizing of competitive elections . In Czechoslovakia and East Germany , mass protests unseated entrenched Communist leaders . The Communist regimes in Bulgaria and also crumbled , in the latter case as the result of a violent uprising . Attitudes had changed enough that US Secretary of State James Baker suggested that the American government would not be opposed to Soviet intervention in Romania , on behalf of the opposition , to prevent bloodshed . The tidal wave of change culminated with the fall of the Berlin Wall in November 1989 , which symbolized the collapse of European Communist governments and graphically ended the Iron Curtain divide of Europe . The collapse of the European governments with Gorbachev ' s tacit consent inadvertently encouraged several Soviet republics to seek greater independence from Moscow ' s rule . Agitation for independence in the Baltic states led to first Lithuania , and then Estonia and Latvia , declaring their independence . Disaffection in the other republics was met by promises of greater decentralization . More open elections led to the election of candidates opposed to Communist Party rule . In an attempt to halt the rapid changes to the system , a group of Soviet hard - liners represented by Vice - President Gennady Yanayev launched a coup overthrowing Gorbachev in August 1991 . Russian President Boris Yeltsin rallied the people and much of the army against the coup and the effort collapsed . Although restored to power , Gorbachev ' s authority had been irreparably undermined . In September , the Baltic states were granted independence . On December 1 , Ukraine withdrew from the USSR . On December 31 , 1991 the USSR officially dissolved , breaking up into fifteen separate nations . Legacy . Russia and the other Soviet successor states have faced a chaotic and harsh transition from a command economy to free market capitalism following the dissolution of the Soviet Union . A large percentage of the population currently lives in poverty . GDP growth also declined , and life expectancy dropped sharply . Living conditions have also declined in other parts of the former ' Eastern bloc ' . In addition , the poverty and desperation of the Russians , Ukrainians and allies of post – Cold War have led to the sale of many advanced Cold War - developed weapons systems , especially very capable modern upgraded versions , around the globe . World - class tanks ( T - 80 / T - 84 ) , jet fighters ( MiG - 29 and Su - 27 / 30 / 33 ) , surface - to - air missile systems ( S - 300P , S - 300V , 9K332 and Igla ) and others have been placed on the market in order to obtain some much - needed cash . This poses a possible problem for western powers in coming decades as they increasingly find hostile countries equipped with weapons which were designed by the Soviets to defeat them . The post – Cold War era saw a period of unprecedented prosperity in the West , especially in the United States , and a wave of democratization throughout Latin America , Africa , and Central , South - East and Eastern Europe . Sociologist Immanuel Wallerstein expresses a less triumphalist view , arguing that the end of the Cold War is a prelude to the breakdown of " Pax Americana " . In his essay " " Pax Americana " is Over , " Wallerstein argues , " The collapse of communism in effect signified the collapse of liberalism , removing the only ideological justification behind US hegemony , a justification tacitly supported by liberalism ' s ostensible ideological opponent . " Some historians , including Professor of history John Lewis Gaddis argues that Reagan combined a policy of militancy and operational pragmatism to bring about the most significant improvement in Soviet - American relations since the end of World War II . This bloc , known as the ' Reagan Victory School ' constitute a different historiographical perspective to the end of the Cold War . The space exploration has petered out in both the United States and Russia without the competitive pressure of the space race . Military decorations have become more common , as they were created , and bestowed , by the major powers during the near 50 years of undeclared hostilities .