Stolenfromreddit wrote

State capitalism is not a new form of economy nor is it a transitional form between capitalism and socialism: it is pure capitalism, and appeared along with all the other forms of monopoly in the period of the victory of the bourgeoisie over the feudal powers. On the other hand, the capital-state relation lies at the basis of the bourgeois economy in all of its stages.

In short;

  • Capitalists existed in Russia. Both social and actual individuals. The state took the form of a capitalist and also the collective farms and peasants with their private plots. Markets existed, even free markets, including a black market. There were even "soviet millionaires". Private property was enshrined by law in the collective farms.

  • Capital ran Russia. The law of value made itself felt by the shifting changes in prices and wages and on what was produced. Profit existed, in fact, it was made into a legal requirement for state firms to make a profit. Speculation existed in the countryside with their markets.

  • Labour was alienated, there was a constant drive to push down wages and make labour more productive (along capitalist lines, of course). Relative freedom was only awarded due to the need for labour in the process of industrialisation. Still, unemployment was wide spread.

  • Russia was not tending towards or transitioning to socialism/communism only to be thwarted at the last minute by "revisionists" and "capitalist roaders".