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8752623 
Journal Article 
Challenges of the national industrial development and policy of mineral mining companies in the Arctic Region of the Russian Federation 
Selin, VS; Larichkin, FD; Tsukerman, VA; Goryachevskaya, ES 
2016 
10 
25-30 
Russian 
In focus are the challenges and priorities of industrial development in Russia and the policy of the mining companies in the Arctic Region of the Russian Federation. The feature of the Russian Arctic industry is its extreme corporatization, which is typical of the primary industries on the global level as well. Up to 80 % of production belongs to the largest companies of the petroleum industry (Gazprom, Rosneft, etc.), metallurgy (Severstal, Norilsk Nickel, etc.) and the chemical industry (FosAgro, EuroChem, etc.). This article describes the tendencies of the corporate economy of the mineral companies developing northern and arctic areas. It is shown that economic growth of Russia may be influenced by the change in the global political situation owing to the Ukrainian crisis and the related sanctions. The western sanctions can and should be a powerful stimulus for the domestic industry towards import substitution. In this regard, a key challenge seems to be the transition from the commodity-dependent economy to the innovation-based commercial and industrial life. Raw materials companies in the Russian Arctic Region will in the medium terms demonstrate high capitalization stability, with some fluctuations depending on the production costs on the global market. It is found that the reduction of the company value after 2009-2010 crisis has only impacted Gazprom, which is conditioned by instability of "Ukrainian" transit of gas and in view of considerable investment of the North and South Streams pipe installation. Despite the international sanctions, securities of Norilsk Nickel and FosAgro exhibit positive dynamics. It is concluded that sanctions imposed in 2014 and in the first three months of 2015 have promoted no reduction in capitalization of the mentioned companies. The authors believe that industrial and investment policy of the mining and raw materials companies in the Artcic should rest upon long-term sustainable regional partnership of the corporations, and the implementation of the corporate projects may be a "locomotive" for advancement in the machine engineering and allied industries. Cost reduction in the production is ensured by approval and implementation of multistage programs that modern strategic management assumes as real options. This approach enables flexibility, continuity and consistency of technological, organizational and economic activities, as well as swift transition to more efficient programs with allowance for alteration of the external or internal conditions. The article emphasizes that development of raw materials, which are one of the crucial advantages of Russia, should be coupled with the innovation-based progression in the framework of the national industrial policy. This study has been supported by the Russian Science Foundation under the grant for "MBO Approach to Integrated Development in the Arctic Region of the Russian Federation," Project No. 14-38-00009. Peter the Great Saint-Petersburg Polytechnic University. 
Assets; Company; Industrial policy; Industrialization; Innovative development; Mining industry; Partnership; Raw materials; Russian arctic region