Seversk and CNCP are Working to Solve the Same Problems

One of the largest enterprises of the Russian nuclear complex, the Siberian Chemical Kombinat (SCK), is located in Seversk, which itself is the biggest of the Rosatom Closed Cities. It is also the city where the first CNCP economic development project was implemented, with the establishment of the Business Development Agency (BDA). In the following interview, the then Head of the Seversk Closed City Administration, Anatoliy Abramov, a regular and active participant in CNCP events, talks to us about the activities of the Programme in Seversk and about the role of the Seversk BDA. Mr. Abramov has since moved to a senior position in Tomsk City Administration but remains in close contact with CNCP.

Anatoliy, how do you assess the results of the CNCP Programme?

CNCP activities are focused on developing small and medium businesses, creating new jobs and generating additional tax revenue. The educational activities of the Programme are also very important. The most important factor in any system which aims to promote development is people. Besides funding and new ideas and projects, trained managers and qualified specialists, who are capable of carrying through planned tasks and have a modern approach, are needed. CNCP training activities, especially in combination with meetings, and the exploration of real examples of business development, demonstrated for example through visits to UK enterprises, make a valuable contribution to developing the understanding that is needed.

The main reason for the success of CNCP is well organized and methodical work based on a systematic approach which involves the participation of high level British experts.

Among the most important results of the Programme are the change that it has helped to bring about in ourselves, the way that attitudes have changed, and the increasing level of CNCP activities. It took time to evaluate what was needed and to start real projects. Today, with the shutdown of the last two SCK nuclear reactors and the long timescale for the construction of the new Seversk Nuclear Power Station, we are more than ever interested in cooperating with CNCP and look forward to its further fruitful development.

Which of the Partnership’s priorities are the most successful and necessary?

The most successful work here in Seversk has involved three types of activity: grant support, assistance in economic development, and training. Commercial relations with British and other foreign companies, unfortunately, have not developed. This was because of constraints imposed by the Federal legislation on Closed Cities and state unitary enterprises, by the direction taken by Rosatom in its reform measures and to the system which applies in the Siberian Chemical Kombinat. Narrow sectoral corporate interests and the lack of skills needed for working in market conditions have also played their part. For example, a promising project to set up a joint enterprise of SCK and a British company to produce highly accurate measurement and calibration equipment was never implemented.

Recently the situation has changed for the better. Rosatom has been reorganized into a state corporation, the organizational and legal form of SCK has been changed from a state unitary enterprise to a joint stock company, and Rosatom has adopted a policy of giving nuclear sector enterprises greater freedom and of requiring them to participate in market relations more actively.

How did the idea of creating a business development agency in the City arise?

The concept was initiated from both the British and Russian sides and ended up being recognised as a necessity. First, with diversification and staff reductions at the city’s main enterprise we needed to create alternative jobs in the civil sector of the economy, and to do this to develop entrepreneurship. Second, other Rosatom Closed Cities had experience of creating International Development Centres. We were also given an opportunity to study experience in British cities and regions during study tours to the UK organized by CNCP. We have tried to take the most successful features of this experience and enrich them with elements which are currently important for us.

How important was the project to create BDA-Seversk and was its timing appropriate?

It is no secret that, as in most of the Rosatom Closed Cities, from 2004 to 2005 when the BDA was being established, Seversk was facing a very unfavourable economic and social situation. Funding of a number of enterprises declined, which led to job losses. The liquidation and reorganization of municipal enterprises carried out in response to legislation led to a further loss of jobs.

Staff reductions at the city’s main enterprise, SCK, were anticipated : 1,500 by 2010 and 3,500 after 2010. In such conditions two main tasks need to be carried out: ensuring employment and, at the same time, promoting the social and economic development of the City. These tasks corresponded to the objectives of the CNCP Programme and the Agency was planned as a tool to accomplish them.

What specific tasks does the BDA help with?

The BDA provides the creation of new opportunities for former staff of the nuclear weapons complex. It provides assistance in creating jobs in the civil sector of the economy, services in support of the development of entrepreneurship and development of the city’s innovation potential. It also works to attract investment, and helps to increase tax revenues through the creation of new businesses and the extension of existing ones. The BDA addresses a whole range of issues relating to social and economic development, which are of great importance for us.

How do you evaluate the results of the work of the BDA?

As productive and of high quality: of course, since it was first created it has taken time for the Agency to develop and to expand its functions. Since 2006, activities have been developing rapidly. At present 12 investment projects are being funded through CNCP, significant investments for small and medium business are being attracted to the City, new enterprises and jobs are being created, and a large number of services are being provided on an on-going basis to businesses.

The Agency has won a tender to manage the City’s Business Incubator and has the official status of a Business Support Centre of the Tomsk oblast, which was also won on the basis of a tender.

What plans for the future?

In the long-term, we see BDA as managing company for the Technopark zone and foresee its developing further in all its areas of competence.
In general, we have set a task for the next 2 years of creating a business support and development structure which will be equipped with all necessary elements: BDA, business-incubator, technopark zone, commercialization office, a youth business incubator in the Seversk State Academy of Technologies and an innovation and technology centre.
I am confident that entrepreneurship will develop in the Closed City of Seversk and that the BDA will play a key role in this process.

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