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Advances in Economics, Business and Management Research, volume 181 Proceedings of the 3rd International Conference Spatial Development of Territories (SDT 2020) The Role of Citi-forming Industrial Enterprises in the Development of Innovative and Investment Attractiveness of Russian Regions (on the Example of Stary Oskol, Belgorod Region and the «OEMKINVEST ltd») Elena Chizhova Irina Rozdolskaya Department of the Theory and Science Methodology, Economics Department of Marketing and Management and Management Institute Belgorod University of Cooperation, Belgorod State Technological University Economics & Law named after V.G. Shukhov Belgorod, Russia Belgorod, Russia [email protected] [email protected] Sergey Chizhov VeraTuaeva Department of Economics and Production Organization, Department of Construction Management and Real Estate, Economics and Management Institute Belgorod State Construction Engineering Institute Technological University Belgorod State Technological University named after V.G. Shukhov named after V.G. Shukhov Belgorod, Russia Belgorod, Russia [email protected] [email protected] Abstract—The article considers the role of single-industry towns and city-forming enterprises in the formation of the I. INTRODUCTION investment attractiveness of the region. It is shown that from an In Russia, as in other countries of the world, there is a epoch of industrialisation we’ve got a problem of settlements of problem of single-industry town (monotown). Single- the various size having monoindustrial structure. But monocities of the Belgorod region which basic manufacture is industry town is characterized by the systemic unity of its the extraction of iron ore, have kept the specialisation and socio-economic organization and the functioning of the city- investment appeal. The city of Stary Oskol having single- forming enterprise [1]. Until the present in most Russian industry town enterprise concerns such cities as Oskol electro- regions, large industrial enterprises located on their territory metallurgical industrial complex. Its role in region development remain the most important source of regional investment is the main problem of the article. Models of influence of the potential formation, many of which play the role of city- Oskol electrometallurgical plant as a city-forming enterprise on forming. The definition of a city-forming enterprise: «the the socio-economic development of the Belgorod region such as functioning of one of the organizations (one of the branches public-private partnership and corporate responsibility are of a legal entity in a municipality or several organizations) investigated too. These models are equally used by «OEMKINVEST LTD». The special attention is given to the that carry out the same type of main economic activity on the issues of inter-municipal cooperation of Stary Oskol and the territory of a municipality or whose activities are carried out nearby located Gubkin (also a monocity) which is represented a as part of a single production and technological process» [2]. territorially-economic complex on extraction and processing of iron ore and domination of «OEMKINVEST LTD». It is In world practice, some experience has already been considered that «OEMKINVEST LTD» supports the budget of gained in solving problems related to the maintenance or the Belgorod region and makes innovative-investment support development of territories with city-forming enterprises. to a development of Stary Oskol. Certain models, mechanisms, forms of support or conditions of destruction have been developed. Keywords--region, single-industry town, socio-economic development, inter-municipal cooperation, public-private In Russia, the issue with city-forming enterprises partnership, corporate responsibility, city-forming enterprise, theoretically, and practically arose later compared to Europe inter-municipal cooperation. and the USA due to the peculiarities of its development. The 21st century forced government bodies to see and turn to city- Copyright © 2021 The Authors. Published by Atlantis Press International B.V. This is an open access article distributed under the CC BY-NC 4.0 license -http://creativecommons.org/licenses/by-nc/4.0/. 93 Advances in Economics, Business and Management Research, volume 181 forming enterprises, develop programs, create funds, look for industries, production complexes and individual enterprises financing opportunities, and sources of investment. in the socio-economic development of the regions remains The program for the development of single-industry insufficiently studied. towns in Russia was launched in 2014. The state has started The purpose of the article is to consider the mechanisms a number of tools, or more precisely, channels for financing of influence of the city-forming metallurgical enterprise on activities for the development of single-industry towns. the socio-economic development of the region. 1. To solve the problem of single-industry towns, a The tasks arising from the goal: to explore the social targeted program «Integrated Development of Single- possibilities of single-industry towns of the Belgorod region; Industry Towns» was developed and adopted at the state models of interaction of the city-forming enterprise with the level. According to the passport of the priority program regional and municipal authorities, aimed at the formation of «Integrated Development of Single-Industry Towns,» the investment attractiveness. main goal is «to reduce the dependence of single-industry towns on the work of city-forming enterprises. The program II. METHODOLOGY is designed until December 2025» [3]. The authors used general scientific methods of scientific 2. The Fund for the Development of Single-Industry knowledge in their study: analysis, synthesis, induction, Towns, established by Vnesheconombank, was organized. abstraction, a system-structural approach, a methodology of The main task of this Fund is to invest in the formation of institutional and strategic analysis, as well as special methods new managerial competencies and improve the quality of - comparative-historical and regulatory-legal, were based on human capital of the administrative facilities of the tectological (organizational) methodology of A.A. municipalities. In addition, the Fund should invest in the Bogdanov. development of the infrastructure of these territories. This will create favorable conditions for attracting business investors and increase the investment attractiveness of the III. RESULTS AND DISCUSSION territory. Monocities Development Fund identified the top ten most The functions of the monotowns Development Fund successful single-industry towns in Russia, which included include monitoring the state of the economy and social sphere the city of Gubkin, Belgorod Region, with an industrial of monotowns. A list of single-industry towns of Russia was specialization in «iron ore mining and processing». Iron ore compiled, divided into three groups according to the level of continues to be a strategic resource of the country, the need their socio-economic development. For the Belgorod region, for its production does not decrease, and the mining territory the issue of single-industry towns and city-forming characterizing the quality of ore is the famous Kursk enterprises is relevant. magnetic anomaly. Thus, Gubkin has no «classic» problems The key objective of the above-mentioned support as a single-industry town. The single-industry town, located measures is to strengthen investment partnership 21 km (26 km along the highway, travel time - 21 minute by mechanisms. car) from Gubkin, Stary Oskol, whose largest enterprise is Belgorod region is a storage of minerals that are mined «OEMKINVEST LTD», which is engaged in the processing and processed on an industrial scale, including by city- of enriched iron ore, also contributes to the reduction of forming enterprises. The basis for the socio-economic problems. In fact, «OEMKINVEST LTD» is a city-forming development of the Belgorod region is the industrial enterprise in the city of Stary Oskol, but the city has never complex, in the structure of which the gornometallurgical been included in the list of single-industry towns, having on component, located mainly in the cities of Gubkin and Stary its territory smaller enterprises of diversified production. Oskol, has a significant share. The basis for the socio- Given the territorial proximity and good transport economic development of the Belgorod region is the communication, the cities of Gubkin and Stary Oskol, despite industrial complex, in the structure of which the their municipal autonomy, are an industrial agglomeration, gornometallurgical component, located mainly in the cities of which allows, among other factors, the city of Gubkin, which Gubkin and Stary Oskol, has a significant share. Leading belongs to single-industry towns, to be included in the enterprises of the mining and metallurgical complex: AO category of successful. In this case, the «expediency «Lebedinsky GOK» (Gubkin), AO «KMAruda Combine» principle» of A. Bogdanov is implemented, when the activity (Gubkin) AO «Stoilensky GOK» (Stary Oskol), AO «Oskol of one subject and the activity of another, uniting, jointly Electrometallurgical Plant». According to the methodology contribute to achieving the goal [4]. of Monocities Development Fund, Gubkin is one of the Thus, from the point of view of a single-industry town and single-industry towns, Stary Oskol is not. But the Oskol city-forming enterprises, from the