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Norwegian business centre in Murmansk in jeopardy

Murmansk, the largest city in the world north of the Arctic Circle.

Winds are changing for state support to investments in Russia’s Arctic capital. Government reduces funding to Siva and more than hints that Norway’s industrial park in Murmansk will be terminated.

Location

Siva is the government’s national instrument for developing strong clusters of regional and local industry through ownership in infrastructure and innovation centres. 

The 15 years old Siva centre in Murmansk is likely to shut down parts of its operation within months. The employees are informed that doors might be closed.

In its State Budget for 2015, the Norwegian government suggests to reduce the overall funding to Siva by NOK 8,5 million (€1 million) and attaches the following comment:

“The reduction will most likely harm the operations in Northwest-Russia and the company’s own work on facilitating for network activities between innovation communities.” 

Located behind a barbed-wire fence near the entrance to the fishery harbour in the outskirts of the city, the Siva industrial park offers offices for rent for Norwegian companies entering the Russian market in the north.

“Siva’s activities, regardless of where, are dimensioned according to real Norwegian needs. The current situation calls for a reduction in anticipation of the new Norwegian business foray in Northwest-Russia,“ says Geir Reiersen, Vice President International at Siva to BarentsObserver. 

Director of Communications with Siva, Roy Strømnes, says nothing has been finally decided yet, but underscores that Siva, as a state owned company, has to take into consideration that the Government so clearly says the activity in northern Russia will be reduced. 

“Siva has initiated dialogue with the owner about which consequences this may have for Siva’s further involvement in Murmansk,” says Roy Strømnes in an e-mail to BarentsObserver. Siva is owned by Norwegian Ministry of Trade and Fishery.

Reiersen, however, underlines that this does not mean that Siva will close down all its operation in Murmansk. “Reductions can harm some of the program activity,” he says.

Siva still owns the Polar Star Innovation centre and Technopark Nor together with Innovation Norway. 

Linda Randal, Director of Innovation Norway’s Finnmark office doesn’t want to comment on the case. 

“No comments” is also the answer from Norway’s Consul on Commercial Affairs Kristin Høiby and Consul General Ole-Andreas Lindeman in Murmansk. 

Høiby and Lindeman coordinate a group of different stakeholders named “Team Norway” aimed at exchanging information and taking advantage of the different experiences from key business players, state structures and regional financial instruments for Norwegians in the Murmansk Region. 

Head of the Foreign Investors Business Association (FIBA) in Murmansk, Ulrich Kreuzenbeck, is more than willing to comment on the possible shut-down of Siva’s operations in Murmansk.

“Siva is very important for Norwegian business in Russia. They advise newcomers on how to navigate the bureaucracy; they rent out offices and facilitate for sharing experiences among Norwegian companies in Murmansk,” says Ulrich Kreuzenbeck to BarentsObserver.

He is afraid a closure of Siva deeply will harm Norwegian businesses in the Russian north.

Geir Reiersen says it is not yet clear how much of the activity in Murmansk that will remain. “A final decision will be taken by the Board of Siva after the State Budget is formally approved,” he says.