(FORTUNE Magazine) – Xenophobia has made a comeback in Soviet political debate, even as the Kremlin pushes a plan to at least double the price of many consumer goods. Once loquacious foreigners have grown tight-lipped, fearful of making bad times worse. Rumors abound of potential deals with foreign partners left unsigned. Two major Western companies that launched joint ventures with much fanfare at the height of glasnost are said to be quietly negotiating their way out of the U.S.S.R. Much of the confusion is due to the new Soviet Prime Minister, Valentin Pavlov. He blasted the West in the newspaper Trud, calling foreign business people with Soviet partners ''petty speculators'' and accusing foreign banks of trying to destabilize the Soviet Union by dumping rubles on the Soviet market. This followed KGB Chairman Vladimir Kryuchkov's claim that foreign businessmen were trying to sabotage the economy by selling defective products for the hard currency the Soviets need. The KGB is now hassling Soviet entrepreneurs, including Artyem Tarasov. He closed down his import-export business in protest. How serious is all this? Says one Western businessman: ''For now, it is just rhetoric, but it could have an effect on trade. They don't have to nationalize foreigners' property. They can erect all kinds of barriers, like delays in granting import-export licenses.'' The proposed price increases, which represent another attempt by the government to cut the budget deficit by ending subsidies, add more uncertainty. Soviet troops moved into hundreds of cities before the proposals were announced. A Western diplomat's advice to foreign investors: ''If you're not in already, you shouldn't think about coming in now. If you're here already, good luck.''