Larichkin FD, doctor of economics
Director of the Institute of economic problems KSC

Murmansk Region has a large and unique in composition and quality of raw natural resource potential.

The variety of natural resources, cross-border situation, developed an industrial complex and the transport network with major sea ports in the Barents and White Seas define an important strategic and geopolitical importance of the region not only in Russia but also globally. 

Regional economy is largely based on the use of natural resources. The mineral commodity and biological (fish) resources played primary role, which made it the industrial specialization of the export-oriented mining, metallurgical and fish systems. Significant amounts of all non-ferrous metals (nickel, copper, cobalt, platinoids, aluminum), iron ore, apatite and nepheline concentrates produced in the area. Much of them are exported, which positively affected the economy of the region.

However the trend in 2000-2001 is clearly evident slowdown in the economic development area that was largely due to the deterioration of the raw material base.

The structure of industrial production at that times a dominant position is a still non-ferrous metal although its share in the structure of sales has declined by almost 10% by 2000. Approximately the same decrease in the percentage of sales was noted in the fishing industry, out of 2-nd place in the structure industrial area that it occupied in 1991.

The most significant growth (more than 3 times) the percentage of sales observed in the structure of the electricity sector mainly due to an increase in tariffs, which are still in the area lower than in other regions of the North West. Chemical industry and metallurgy progressively developed in the field.

Traditionally, high positive balance of foreign trade balance of the area is increasing due to growth in export shipments and the relative stability of imports, exchange rate of import cover, which in 1995 - 2.8 in 2000. - 5.6, reached in 2005 - 7.5. It should be noted positive tendency of growth of imports of machinery and equipment and reducing food imports, the need for a greater extent by domestic suppliers.

The dynamics of investment in fixed assets in the general area roughly equivalent to the national indicators. It may be noted the stabilization of the volume of investment in the area since 2001 in the amount of about 50% of the level in 1991. The most significant foreign investment is in 2000 however the absolute size of foreign investments to the extent of the Murmansk region is extremely low and is a few percent in total capital investment.

The current state of the economy and social sphere, the standard of living of the population of the region does not match the capabilities of resource potential industrial complex area. The decline of industrial production, low income and social security of the population leads to decrease in the population as a natural attrition as well, especially the migration outflow; negatively affects the prospects of economic development.

Summing up, it is possible to formulate the main problems and trends of economic development of Murmansk region 
In modern conditions the main factor determining the possibility of development and growth of regional economy, is the competitiveness of individual industries or facilities management and the creation of conditions conducive to the realization of the benefits available to the region as a whole.

One of the factors influencing sustainable competitive advantages the region and its businesses is the creation of competitive clusters, i.e. groups of interconnected companies and institutions to use the region as a unique sinter environment, improves the performance of each party and its sustainability within the modern economic network of multilevel structures.

The absence until now in the Murmansk region own fuel sources especially high-performance oil and natural gas significantly restricts inhibits the development of many industries in the economy generally. Therefore, the decision to establish a non-profit organization «Association of Oil and Gas «Murmanshelf » for the development of the Shtokman gas condensate project and other fields on the Arctic shelf may be regarded as a significant event and the initial phase of the formation of industrial clusters that can enhance the competitive advantages of the region, provide new and powerful impetus to economic development area.

The main effects arising from the formation of clusters: 

1. Reducing transaction costs 
2. Ability to provide a competitive advantage 
3. Potential long-term mutually beneficial business relationship. 
4. Winnings are based on the theory of production of financial management.

It is necessary to take into account the positive effects of development of oil and gas resources of the Arctic shelf to the economy of the Murmansk region as well as possible risks and negative consequences. Very valuable is the max possible use of the Norwegian experience in solving similar problems in the Russian specifics. Multiversion complexity of problems and solutions requires scientific support and teamwork of all association members.

With the successful implementation of projects Murmansk region could become an engine of growth, contributing to the time of competitive local industrial clusters based on the use of fuel and energy co shelf of the Barents Sea.

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