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the uncertainty that this entails. Thus, the volatility of the price of natural resources and its effects
on the town represent the resource curse and impact on the opportunities for Kirovsk’s economic
diversification. Hence, despite the lack of ‘psychological’ objections to diversification among the
town’s leadership and the town-constituting enterprise, the economic consequences of the resource
curse make the sustainability of Kirovsk’s economic diversification somewhat uncertain.
In Kirovsk there were no clear expectations among the town’s representatives that the Russian state
would paternalistically subsidize the construction of tourism infrastructure in the town. However,
according to Popova (personal communication, June 9, 2012) it would be impossible to construct
large tourism infrastructure without investments by the regional government and the Russian state.
Therefore, Kirovsk’s Russian Lapland project also expected investment funded by the regional
budget. However, there were expectations that OJSC Apatit would be a significant driver of
economic diversification, which demonstrates the dependence of the community on this resource
enterprise.
Revda as a Resource Community
Lovozerskii GOK (later LGOK) is the only major enterprise in Revda. LGOK mainly produces
loparite concentrate and other rare earth metals, which are needed in various high technology
processes and are strategically important for Russian industry and national security (KIPMMGP
Revda 2010: 7, 11–12; Popov 2011). Thus, the well-being of Revda and its residents depends on the
fate of LGOK’s mine (Shirmer 2008; “Zamestitel’ predsedatelya…” 2011). LGOK’s economic and
financial situation and consequently its impact on the well-being of Revda was the object of most
concern among the single-industry towns of the Murmansk region (Gorbunov, personal
communication, June 19, 2012). The problems of LGOK began with perestroika and escalated with
the ending of state procurement orders for the company (Shirmer 2008; A. Mamedov, The Head of
the municipal administration of Revda, personal communication in Revda, June 18, 2012). The
collapse of the Soviet Union led to the privatization of the enterprise and its decline was accelerated
with a ruined vertical production chain as factories, which had utilized further the concentrate from
Revda were left to the former Soviet republics and were unable or reluctant to continue their cooperation with LGOK (V. Kolokol’tsev, CEO of Lovozerskii GOK, personal communication in
Revda, June 18, 2012; Mamedov, personal communication, June 18, 2012).
The strategic importance of LGOK’s production (KIPMMGP Revda 2010: 7) has inspired an image
within the company of its own importance. This self-image of its own strategic importance
combined with LGOK’s long-lasting post-Soviet economic problems has created strong paternalistic
expectations amongst the workers of the firm and the local administration that the public
authorities, the regional government, and indeed the Russian state will subsidize the firm (“Pyat’
mesyatsev gornyaki…” 2006; “Zamestitel’ predsedatelya…” 2011). Moreover, the head of the
municipal administration of Revda Alovsat Mamedov (personal communication, J [