Abstract. This article explores the transitional period in the history of the Institute of World Economics and Politics (1928–1930). This period was marked by the arrival of Evgenii Varga, a respected economist, one of the founders of the Hungarian Communist Party, and a prominent Comintern figure, as director of the Institute. The author traces Professor Varga’s life, the formation of his political convictions, and his views on capitalism in the first quarter of the 20th century. The article explains Stalin’s interest in Varga, who would become his personal consultant on global economic issues. It was Stalin who, in late 1927, initiated Varga’s appointment as director of the Institute of World Economics and Politics, which had been established in 1925 to provide expert services to the Comintern and the top leadership of the USSR. During 1928–1930, two directors succeeded each other, combining their positions with other government responsibilities. Leadership instability, the lack of a unified scientific strategy, and a shortage of qualified personnel reduced the Institute’s effectiveness. This was precisely the conclusion Evgenii Varga reached upon assuming the post of director. The first two and a half years of his leadership at the Institute were spent taking stock of the state of affairs, studying the work of each staff member, and searching for new recruits. At the same time, Varga pondered promising research directions for the Institute’s research team. Overall, 1928–1930 can be defined as a transitional period in the history of the Institute of World Economics and Politics.