The Socialist Republic of Romania is a country located in the eastern Balkans. It is led by General-Secretary Ana Pauker, a reformist Trotskyist which has found much common ground with his Soviet equivalent, Nikita Khrushchev. Traditionally the leader of the South European Pact, Romania has lost influence in this group to its larger neighbours (namely Yugoslavia and Turkey). However, amongst the Balkan countries it shines due to its level of development and quality of life (largely financed by its very developed petrochemical industry, especially after the Black Sand War). Despite being a major petroleum producer and refiner, Romania has not entered the "resource trap", using much of their surplus budget to finance the creation of new conventional or high-tech industries, or investing across the communist world.