The paper demolishes an old myth which the Soviet Union created after 1945. The myth is associated with the victory of USSR against Germany and its allies in Europe during the Second World War. According to the Soviet Union, the “Great Patriotic War” of 1941-1945, was won because of Stalin leadership and due to the efficient economic industrial mobilization which the Communist GOSPLAN Central Economic Committee imposed on the economy. The Soviet era argument compares the victory of 1945 with the defeat of capitalist Russia in 1917, and claims that the communist organization of the war economy has been very successful compared to the poor organization of capitalist Russia of 1914-1917 period. The reality is different. The USSR was both heavier industrialized and armed compared to the Empire of the Czar in 1914. However the USSR suffered more defeats, human and material losses as well as catastrophes compared to those of the Russian Empire. And these developments occurred as the country enjoyed greater military and economic aid from the US and Great Britain compared to what was granted to Czarist Russia during 1914- 1917. The biggest paradox however is associated with the post-war settlements. The humiliating defeat which the Czarist Empire suffered in World War I -and was sealed with the Treaty of Brest Litovsk signed by Lenin- was never implemented since the Western Allies with the victory of 1918 simply abolished the Treaty. Thus the defeat of 1917 practically did not have a negative outcome. The 1945 victory generated the huge expansion of Soviet sphere of power in Eastern Europe but the cost of victory was so high that the final outcome can be considered as a pyrrhic victory.