Griffiths Welcomes Boost to UK/Russia Nuclear Non-Proliferation Programme

Memorandum of Understanding being signed with Russia today

A multi-million pound DTI programme to help former nuclear weapons workers in Russia find new jobs is receiving a boost today with the signing of a Memorandum of Understanding between the DTI and the Russian Federal Atomic Energy Agency (RosAtom).

The UK-Russia Closed Nuclear Cities Partnership programme (CNCP) is working with six of Russia's Closed Nuclear Cities, cities created in the Cold War to develop the Russian nuclear weapons programme. Due to restructuring and downsizing, they are facing many thousands of job losses. CNCP has already approved grant projects that will create around 350 new jobs in four of the cities and there is the potential to create thousands more jobs, directly and indirectly.

The multi-year CNCP programme, with a spend of around ?3 million per year, is part of the UK's contribution to a 20 billion pledge by G8 countries designed to counter proliferation of nuclear material, nuclear safety and ecological concerns in the former Soviet Union. It aims to limit the spread of weapons of mass destruction by supporting the long-term economic viability of the cities and promoting alternative employment opportunities.

Trade and Industry Minister Nigel Griffiths said:

"The signing of this document represents a further step in the development of DTI's partnership with RosAtom. It demonstrates our mutual interest in making the Closed Cities programme a success, provides a new mechanism for cooperation and reinforces our commitment to implement innovative projects and activities that support job creation and sustainable economic development."

Since 2002, CNCP has been providing:

• grant aid to help create lasting employment in civil sector commercial activities;
  
• training;
  
• commercial partnerships; and
  
• support for local economic development.

Ten projects have received grant investments and more than 20 other activities to promote entrepreneurship and business development have taken place or are underway, to the tune of ?2.3 million. A further 25 additional grant projects and activities are currently under consideration.

Projects include:

• Funding eight business plan and market research projects in Seversk. Using one of these supported business plans, the Siberian Chemical Kombinat has attracted more than ?10 million of loans for the construction of a Nitrogen Tri-fluoride Plant and has reached a preliminary distribution agreement with the US company TRION. It is expected that up to 300 jobs will be created in the new plant. Nitrogen tri-fluoride is used in the production of microprocessors, integrated circuits and displays.
  
  
• A grant to Raster Technology, one of Russia's leading producers of cutting templates used for paper and cardboard packaging production. This will allow the company to establish new production in the Closed Nuclear City of Snezhinsk, hire highly skilled engineers from the All Russian Scientific and Research Institute for Technical Physics (VNIITF) and expand its business into the Urals.
  
  
• Hosting a Technology Roadshow which demonstrated Russian capabilities and a number of technologies at three UK locations. Representatives from five Closed Nuclear Cities took part. As a result, negotiations on one joint venture involving a UK partner have entered the final stages.
  
  
• Arranging for computer software designers from three cities to participate in this year's European Games Network Event. With outsourcing of software programming gaining popularity among UK companies in order to maintain their competitive edge, the CNCP is working to promote Russian technical capabilities and to develop some long-term commercial partnerships. The Russian participants developed a network of contacts which are being further explored for commercial potential.
  
  
• Discussing with the International Institute of Management (LINK) the establishment of distance learning programmes in the Closed Nuclear Cities of Ozersk, Snezhinsk and Zheleznogorsk. LINK is the recognized provider in Russia of The Open University's (UK) courses and is acknowledged as one of the leading providers of business education in Russia.
  
  
• Organising training courses in business and contract negotiations at De Montfort University. Another session will be held in 2005. The goal of the training is to enable managers from the Closed Nuclear Cities to engage in more effective negotiations, as well as contract development and execution with international business partners.
  
  
• Opening a Business Development Agency in Seversk next year. The BDA will offer a range of different services to support small business development and promote a favourable climate for entrepreneurial activities.