SAINT-PETERSBURG:INVESTMENT - INDUSTRIAL POTENTIAL

GOVERNMENT OF SAINT-PETERSBURG

Committee for Industrial policy and innovations

… A CITY OF UNESCO WORLD HERITAGE STATUS

… ONE OF THE MOST VISITED CITIES IN EUROPE: OVER 7 MLN. TOURISTS ANNUALLY

… 2nd LARGEST IN EUROPE BY CITY AREA, 4th LARGEST BY POPULATION

… A CONNECTION HUB BETWEEN RUSSIA AND EUROPE

… THE LARGEST SEA PORT IN RUSSIA

SAINT PETERSBURG IS…

WHY SAINT PETERSBURG IS ATTRACTIVE FOR BUSINESS?

• High education potential, qualified labor1• Growing industrial potential2• Developed innovation infrastructure3• Positive experience of foreign investors4

ECONOMIC DEVELOPMENT

4

SAINT PETERSBURG GRP CITY’S TURNOVER STRUCTURE IN 2013

Saint Petersburg foreign trade turnover

2010 2011 2012 2013 (forecast)

55.970.5 75.3 81.2

2010 2011 2012 20130

102030405060

36.3

53.2 56.5 54

$ bln

37%

5%5%

34%

9%8%

Industrial productionElectricity, gas and water productionConstructionWholesale and retail tradeTransport and telecommReal estate operations

HIGHLY QUALIFIED LABOR

EDUCATION POTENTIAL:• 82 universities.• each 10th citizen is a student.• over 90 tsd. graduates annually.• 13 Nobel laureates live in Saint Petersburg.• over 40% of city’s population are highly

educated

LABOR POTENTIAL:

• 2.95 mln. people – economically active population (January-August 2013).

• unemployment rate of 0.4% is one of the lowest in the world.

Pri-mary pro-fes-

sional educa-

tion16.3%

Sec-ondary

gen-eral

educa-tion

16.1%

Secondary professional education

22.8%

Higher pro-

fes-sional edu-catio

n43.9%

LEADING ECONOMY CLUSTERS

IT-CLUSTER

AUTOMOBILE

POWER MECHANICAL ENGINEERING

PHARMACEUTICALS & HEALTHCARE SHIPBUILDING

RADIO ELECTRONICS

AUTOMOBILE CLUSTER

• more then 1 bn $Total investments:

• Up to 400 tsd.Annual car production:

• 60-70%Annual production growth:

• > then 8000 employeeLabor resources:

• car components manufacturersCluster demands:

PHARMACEUTICAL AND HEALTHCARE

•including 100 production companies.150 companies

•over $1 bln.Total investments

•St.Petersburg State Chemical Pharmaceutical academy, St.Petersburg State Medical university, St.Petersburg State Medical academy, 5 research institutions.

Labor resources

•R&D suppliers, new GMP pharmaceuticals producers.Cluster demands:

POWER MECHANICAL ENGINEERING

Over 20,000 employees.

Over 300,000 MW of installed capacity in 57 countries.

The fourth place in the world by the volume of equipment

installed.

The largest design and engineering centre in the field of

power plant engineering in Russia.

Power machines

DEVELOPED INNOVATION INFRASTRUCTURE

10

scientific and educational

potencial

Developed industrial sector

Management system

Technological infrastructure

Financial infrastructure

High demand for innovations

INNOVATIVE COMPETITIVENESS OF THE REGION

INGRIA IT-PARK

KEY ELEMENT OF THE SAINT PETERSBURG IT CLUSTER 750 mln. euro

• Total investments into the project

68%

• Private investments

>200

• Planned residents

320 000 sq.m

• Total area of buildings

2017-2018

• End of construction works

Priority spheres:

SPECIAL ECONOMIC ZONE

ICT Pharmaceuticals Energy Instrumentation

Tax benefits• profits

tax, VAT, property tax, etc.

Preferential rent

rates

Infra structure

• Full land engineering

Free customs

zone

Possibility to buy-out the

land plot

Neudorf

Novoorlovskaya

SEZ benefits and advantages

Total area:

• 129.4 ha

Number of residents:

• 32

Investments by residents in

2013:

• $67.2 mln

TAX BENEFITS FOR INVESTORS

Law of St. Petersburg № 81-11

«On tax benefits»

Profits tax = 13,5 %

Property tax = 0

Investments over 50 mln rubles in

high-tech products

Investments more than 800

mln rubles

FOREIGN INVESTMENTS

TOTAL ANNUAL INVESTMENTSKEY FOREIGN INVESTORS

2013

2010 2011 2012 2013

5,26,1

10,813.4

Luxembourgh

Germany

Ireland

Kazakhstan

South Korea

Virgin Islands

Sweden

Cyprus

Austria

3180.112471240.31199.1

812.8767.8743.5728.7

469.4

14

$ bn.

$ mln.

CITY AGENCY FOR INDUSTRIAL INVESTMENTS

Agency provides free services for industrial investors:• Selection of an appropriate land plot within industrial zones of Saint Petersburg.• Providing all the necessary information on the land plot.• Support in preparation of the necessary documentation for state auctioning

regarding the selected land plot.• Solving organizational issues on project design and construction stages.

Attraction of investors into industrial zones of Saint

Petersburg.

Information support of investors planning to realize

projects within industrial zones of Saint Petersburg.

Over 8 years of successful work with Russian and foreign

investors.

PERSPECTIVE INDUSTRIAL ZONES

industrial zones cover over 13.6 per cent of the

total city area.

15 land plots in city’s property are offered to industrial investors in

2014.

30 land plots in city’s property will be offered to

industrial investors in 2014-2015.

Karelia ~ 400 км

Moscow ~

700 км Belarus ~ 527 км

Estonia ~ 300 км

Finland ~ 200 км

CHINESE COMPANIES IN ST PETERSBURG

Baltic Pearl

China (695)

Germany (2120)

Finland (1163)Great Britain (1860)

Luxembourg (4959)Netherlands (2475) Cyprus (3301)

Key investors in St Petersburg ($ mln)

COMPANIES LOCATED IN ST.PETERSBURG

WELCOME TO SAINT PETERSBURG!