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The analysis of territorial development programs for Priority Social and Economic Development Areas (PSEDA) in monotowns shows that some of them are based on the use of the cluster approach to the industry structuring in a town. However, in addition to the possible advantages of using cluster formation within the regions, it is necessary to assess the problems and limitations of creating municipal clusters. Such industrial clusters, emerging and developing in Priority Social and Economic Development Areas (PSEDA) in single-industry towns (i.e. monotowns), face many problems and obstacles. This article presents the results of the study of these problems. Potential risks, problems and limitations facing cluster formation in monotowns were identified not only on the basis of systematization of the existing research in this area, but also as a result of a survey that was answered by the potential participants of clusters in Kemerovo region. The identified problems, risks and limitations that the development of clusters faces while implementing the programs aimed to build PSEDA in monotowns, have been classified by their sources. These sources are determined by the characteristics and unique features of monotowns themselves. They depend on the individual characteristics of a PSEDA, in particular, the requirements for residents and their investment projects. The sources are also determined by the risks and difficulties that exist in the practice of cluster formation and functioning of

proceedings of the international scientific-practical conference “business cooperation as a resource of sustainable economic development and investment attraction” (ispcbc 2019)

Problems and restrictions facing cluster formation within priority social and economic development areas in monotowns