St. Petersburg (Russia): priorities of economic development

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Committee for Economic Development, Industrial Policy and Trade The Government of Saint-Petersburg


Saint-Petersburg is the most attractive city for living in Russia (according to the world rating of cities published by British research service EIU (Economist Intelligence Unit) Saint-Petersburg is an attractive city for conducting business, living, studying, and for spending holidays. It is the most cosmopolitan, safe and tolerant city in Russia. The city offers highly developed business, cultural and night life. Saint-Petersburg is in the list of the most beautiful European cities. Its historical centre, palaces and park ensembles have been included in the list of the objects protected as the world heritage by UNESCO. The city of the white nights, on an abundance of waters and bridges it is an attractive tourist centre which is highly appreciated by guests from all over the world.

Saint-Petersburg is a world-known cultural centre with 7,783 sites of cultural interest. There are over 180 museums and 135 galleries in the city. In the annual schedule of events there are 900 forums and exhibitions, 260 festivals, competitions.

34

islands

230 bridges

187 churches


Over 1000 preschool facilities Over 700 schools, incl. grammar schools, lyceums

 458 000 students in 96 higher educational institutions  64 000 high and middle school students  Every 10th citizen is a student

5700 sports venues:

15900 Shopping centres, malls

7052 Restaurants, cafes, bars

663 Hotels

gyms, pools, stadiums


Leading Russian scientific and educational centre (10 % of HIGHER EDUCATION institutions in Russia)

Second largest European city and fourth in population

City with stable economic position, steady GRP growth and high investment activity

One of the largest centres of tourism in Europe (over 5 million tourists annually)

Leading Russian industrial centre

Saint-Petersburg City of peer possibilities with transparent legislation for doing business Centre of attraction for qualified personnel (40% of economically active population with higher education)

Largest Russian sea port - over 20 % of Russian sea cargo turnover

Advanced mechanisms of investment activity support (volume of international investment has grown in 8,5 times since 2003; it is 6,8% of total investment volume in Russia)

Centre of modern innovative industry: 17,3% of the Russian high technology sector


(Estimation)

Saint-Petersburg GRP, bln USD 56,83

47,62

44,78 13,65

2003

19,37

2004

23,8

2005

55,78

72,12

64,21

Average monthly income of residents is 966 USD (1,3 times increases an average index in Russia)

30,55

2006

2007

2008

2009

2010

2011

2012 (Estimation)

Population and economically active population, thsd people Level of unemployment is one of the lowest in Russia (4,1 times below an average index)

4580,6

2644,9

2006

2709,3

2007

2703,8

2008

2717,8

2009

2660,5

2010

Economically active population

4971,78

4925

4880

4582

4568

4561,2

2690

2676,9

2011

2012

Population 32656 25734

Export/import, mln USD

17839

Export, mln.USD

23643 12931

Import, mln.USD

24524

20685

5795 2747

2003

6915 3993

2004

9170 4885

2005

20577

17786 13437

11817

2009

2010

6904

2006

2007

2008

2011


The key trade partners of Saint-Petersburg in 2011 (% of foreign trade turnover)

USA (4,2%)

Saint-Petersburg among the most industrially developed Russian regions with high potential to diversify economy (as estimated by the leading international rating agencies: Standard and Poor's, Fitch, Moody’s)

Finland (5,2%) Holland (8,2%) Germany (8,7%) CIS (4,5%) China (14,4%) Italy(4,1%) Japan (4,6%)

Foreign investment volume, mln USD Long-term international credit ratings

7000

6284

6000

Standard&Poor’s

5928

5255

ВВВ (stab.)

6120 5522 5231

5000

Moody’s Investors Service FitchRatings

ВAA 1 (stab.) ВВВ (stab.)

4000 3000 2000

Long-term national credit ratings

1000

696

1417

985

Volume of foreign investment has increased in 8,5 times since 2003

0

FitchRatings

ААА (stab.)

2003

2004

2005

2006

2007

2008

2009

2010

2011


 Automotive cluster

 Pharmaceutical and medical industry  Power mechanical engineering

 Housing and public utilities  Shipbuilding  Radiology  IT-cluster


Output, thsd vehicles per year

Volume of investment, mln.USD

Number of employees

September 2010

150

650

2400

June 2009

50

200

1500

December 2007

50

133

600

November 2008

60

303

1300

November 2010

6,5

15

600

2nd half 2012

45

50

Opening date

Company name

Saint-Petersburg

Forecast: New privileges for cars industrial assemblers:

By 2018 output of Saint-Petersburg automotive cluster will be extended to 1 million cars annually

Low customs rates for importing faulty parts and accessories will be provided to international automotive companies reached 60% of localization level within 6 years of agreement date.


 43 shipbuilding companies with over 50 000 experts  Shipbuilding produces 50% of all defence industry output in Saint-Petersburg

 Production range: tankers (displacement of 70 thousand tons), gas carriers (capacity of 80 and 175 thousand m3), ice-resistant fixed platforms, ice-breakers (60 MW), floating nuclear heat and power plants  Annual income: 1,2 bln USD The United shipbuilding corporation OJSC

 Metal working output: up to 120 thousand tons of steel per year  Main investors: the United Shipbuilding Corporation OJSC, Admiralty Shipyards OJSC  Volume of investment: over 1,1 bln USD  Number of employees: 6500  Tax liabilities to Saint-Petersburg budget: over 0.11 bln USD annually

Admiralty shipyards OJSC

 Project schedule: 8 years


5 higher educational institutions training experts in information technology: - National Research University of Information Technologies, Mechanics and Optics

- Saint-Petersburg State University - Saint-Petersburg State University of Telecommunications

- Saint-Petersburg State University of Aerospace Instrumentation

- Saint-Petersburg State Polytechnical University

- Saint-Petersburg State Electrotechnical University

City IT-projects: - R&D centre

- centre of excellence

- office in Saint-Petersburg

- R&D centre - agreement for cooperation Saint-Petersburg

is the key element contributing to the Saint-Petersburg IT cluster development: 750 mln euro: total amount of investment to the project 45 hectares: Technopark area 14 000 workplaces in IT sphere will be created in Technopark 320 000 sq. m: total area of buildings 60% of areas will be occupied with anchor residents 30-35% of area: landscape gardening By 2015 construction will have been completed


«Novo-Orlovskoe» SEZ Section area is 110 hectares

Universities: - Institute of Technology - Chemical and Pharmaceutical Academy - Pavlov Medical University

- Polytechnical University

«Pushkinskaya» Industrial zone area is 18,2 hectares volume of investment in developing infrastructure is 13,6 mln euro

Laboratory:

Manufacture:

«Noidorf» SEZ Section area is 18,9 hectares R&D institutions: - Research Institute of Experimental Medicine - Research Institute of Influenza

- Research Institute of Especially Pure Biological Products


«Noidorf» SEZ Section Area: 18,9 hectares Laboratory facilities: Biocad, Vertex, Geropharm Manufacturing: Biocad Set up: Business incubator, R&D facilities: Sep. 2011: Biocad Dec. 2011: PharmHolding

SEZ “Novo-Orlovskoe"

Ring Road

City centre

SEZ “Noidorf" «Novo-Orlovskoe» SEZ Section Area: 110 hectares. Manufacturing: Immuno-Gem, Pharmasyntez, Vital Development, Novartis, Vertex Range of projects: laboratories, Manufacturing and R&D facilities Pushkinskaya Industrial zone Area: 18,2 hectares Volume of investment in developing infrastructure is 13,6 mln euro Manufacturing: Geropharm, PharmHolding, Samson-Med, Neon

15 investment projects have started in 2010-2012 with a total amount of investment over 707 mln euro

Ring Road Airport

IZ “Pushkinskaya"


Federal legislation provides tax privileges and customs preferences to residents of special economic zones

Payment immunity for technological plug-in to power supply networks

Infrastructure (Full land engineering)

Free Preferential

customs

rent

area

rates

Possibility of redemption of land plots on construction completing

Tax privileges Reduction of investor expenses up to 30% 34%

Till 2026

Till 2018

In the Russian Federation

20% 15,5%

14%

18%

Profit tax

For 5 years period

For 5 years period 0%

Insurance payments

In SEZ

For 5 years period

VAT

2,2%

0%

Wealth tax

1,5%

0%

Real estate tax

For 5 years period

0% Transportation tax



Welcome to Saint-Petersburg!

The Government of Saint-Petersburg Committee for Economic Development, Industrial Policy and Trade


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