The Russian government is afraid of political and social destabilization in one-industry towns, which are badly hit by the crisis. The heirs of Soviet planned economy, they were built around purely political considerations. Because equipment is obsolete and these huge facilities are barely profitable, there are mass layoffs. The administration is looking for wages to diversify their economies, allocating nearly RUB 344 billion (about €7.3 billion) to fund measures to support ‘monotowns’ in the 2014 budget.
In December, a single executive body answering to the Ministry of Economic Affairs was commissioned to solve this problem and monitor these towns. It is supposed to give a report twice a year, following a risk assessment exercise regarding explosion risks, made up of 7 criteria (rise in unemployment, pay cuts, economic slowdown and so on). This ranking isn’t published. However, according to the indicator developed by “Kommersant” – the economic daily – on January 20, the most vulnerable...
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