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The Soviet Union used POWs as a sort of human war-indemnity (i.e. slave labour). Thus, Axis prisoners were kept after the armistice and forced to rebuild what the Axis troops had destroyed in the Soviet Union, mainly infrastructure and industry. As these projects were completed, prisoners were set free and sent home, with the last major projects (railways in the Ukraine, as it was) completed in 1955. This also coincided with the recreation of a German state (but the POWs were from all Axis countries, not just Germany) The Soviet Union regarded this as perfectly fair. Germany was herself not in a position to pay any indemnities covering the losses of the USSR, and Western Allies were highly unwilling to create a second Versailles treaty (i.e. they refused to force Germany to pay huge indemnities). The US actually made an effort to get these POWs out, by offering financial replacement for their labour. But the Soviets refused.

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Q: Why were Germans POWs kept imprisoned by the Soviets until 1955?
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