Pskov slide package for a foreign investor

Kirsi Ahlman May 2008

www.tse.fi/pei Contents

1. General information 3

2. Regional economy 9

3. Prosperity and consumption 17

4. External economic relations 22

5. Additional information 25

The information in this document is compiled and edited from a variety of sources. The Pan•European Institute assumes no responsibility for the completeness or accuracy of the information.

www.tse.fi/pei 1. General information a) Geographical facts

Area: 55 300 km2

Administrative : Palkino Gory Krasniye Pushkinskiye Pustoshka Kunya Loknya Strugi Usvyaty (city) Ostrov Velikiye Luki

Source: Pskov region official site http://www.pskov.ru

www.tse.fi/pei 1. General information b) Geographical facts

Borders with: 270 km 214 km 305 km

Distance from Pskov to some capitals: 689 km Kiev 780 km Minsk 480 km 270 km 350 km Warsaw 800 km 860 km Helsinki 700 km 1200 km Brussels 1740 km

Source: Pskov region official site http://www.pskov.ru

www.tse.fi/pei 1. General information c) Basic facts

Largest cities: (population) Pskov 200 100 Velikiye Luky 103 400 Ostrov 24 500

Main industrial output: Meat, milk, linens, clothes, construction materials, motors, cables, high•voltage machines and insulators

Natural resources: Forests, clay, molding sand, gravel, peat, lime, water

Source: Pskov region official site http://www.pskov.ru

www.tse.fi/pei 1. General information d) Transport infrastructure

Motorways: Moscow –Riga St.Petersburg –Kiev –Odessa St.Petersburg – St.Petersburg –Riga

Railway routes: Moscow –Riga St.Petersburg –Odessa St.Petersburg –Vilnius – St.Petersburg –Riga St.Petersburg –Lvov

Source: Pskov region official site http://www.pskov.ru

www.tse.fi/pei 1. General information e) Population

1995 2000 2005

Population (1000) 826 782 725

Population growth • 0,4 • 1,4 • 1,6 (%) Share of urban 64,6 65,6 67,2 population in total population size (%) Economically active 59,0 61,3 64,8 population (%)

Source: Rosstat 2006

www.tse.fi/pei 1. General information f) The unemployment rate %

16

14

12

10 Pskov

8 North•West 6 Russia 4

2

0 1998 2000 2002 2004 2006

Source: Rosstat 2006 & 2008

www.tse.fi/pei 2. Regional economy a) The share of gross•regional product

2,3 %

Pskov District 97,7 % North•West Russia

Source: Homepage of North•Western Federation District 2008 http://www.szfo.ru/section/87/pskowskaya_oblasty.html

www.tse.fi/pei 2. Regional economy b) Gross regional product in 2004

28 % 26 %

Industry Agriculture Construction Transport 4 % Communication Trade commerce 16 %

19 % 7 %

Source: Rosstat 2006

www.tse.fi/pei 2. Regional economy c) Structure of production in 2006

Manufacturing 35,4 % industry Production of e le ctricity, ga s, 24,8 % water 9,9 % 9,0 % Mining industry 20,9 %

Food Electric equipment Machinery Other non•metallic mineral product Other

Source: Homepage of North•Western Federation District 2008 http://www.szfo.ru/section/87/pskowskaya_oblasty.html

www.tse.fi/pei 2. Regional economy d) Largest enterprises

Food industry: • Intrafleks LLC • Prokhovsky OJSC • Pskov Bakery Complex OJSC • Pskov City Milk Plant OJSC • Velikiye Luki Meat Processing Factory OJSC

Wood industry: • Pskov Door Factory’LLC • Samolukovo’SUE • Sebezh RAV TEKHNIKA´LLC

Power industry:

• Pskovenergo OJSC Information subject to changes

www.tse.fi/pei 2. Regional economy d) Largest enterprises

Chemical industry: • Plastprom Plant LLC • Pskov Polymer LLC

Construction materials industry: • Drevpogonazh LLC • Euro•Ceramics LLC • ZHBI•2 CJSC

Light industry: • Reebok • Siluet • Slavyanka CJSC

Information subject to changes

www.tse.fi/pei 2. Regional economy d) Largest enterprises

Machine•building and Metal processing industry: • Auto•Electro•Armature OJSC • Krasny Luch • Pskov Cable Plant OJSC • Pskov Electric Machine Building Plant OJSC • Pskovelektrosvar CJSC • Velikiye Luki Locomotive Repair Plant CJSC • Velikiye Luki Transneftemash Plant of the Upper Volga Oil•Trunk Pipelines OJSC • VELMASH•Service LLC • Tochlit CJSC

Information subject to changes Source: Pskov region official site http://www.pskov.ru

www.tse.fi/pei 2. Regional economy e) Growth of socio•economic indicators in 2006 %

Retail trade turnover

Real money income

North•West Manufacturing index of Russia industrial production Pskov

Investments in fixed assets

C ommissioning of residential houses

0 10 20

Source: Homepage of North•Western Federation District 2008 http://www.szfo.ru/section/87/pskowskaya_oblasty.html

www.tse.fi/pei 2. Regional economy f) Development of investment in fixed capital, in billion USD

12

10

8

6

4

2

0 2001 2003 2005 2007

Source: Rosstat 2006 & 2008

www.tse.fi/pei 3. Prosperity and consumption a) Cash income in 2006, RUR

12000

10000

8000

6000

4000

2000

0 Pskov North•West Russia Russia

www.tse.fi/pei 3. Prosperity and consumption b) Growth of the real money income %

18

16 14

12 Pskov 10 North•West 8 Russia 6 Russia 4

2 0 2003 2005 2007

Source: Rosstat 2005 & 2008

www.tse.fi/pei 3. Prosperity and consumption c) Cost of fixed set of consumer goods and services in 2007

RUR As % of Change in medium value% cost Russian

Pskov 5404 89 17,5

North•West 6428 106 17,4 Russia

Russia 6068 100 16,1

Source: Rosstat 2008

www.tse.fi/pei 3. Prosperity and consumption d) Cost of minimum set of food in 2007

RUR As % of Change in medium• value% cost Russian

Pskov 1771 98 27,7

North•West 1935 107 22,7 Russia

Russia 1802 100 22,3

Source: Rosstat 2008

www.tse.fi/pei 3. Prosperity and consumption e) Consumer price index 2007

Consumer price index %

Pskov 12,5

North•West Russia 12,6

Russia 11,9

Source: Rosstat 2008

www.tse.fi/pei 4. External economic relations a) Development of foreign investment in 1000 USD

2003 2005 2007

Total foreign 6226 11496 32749 investment

Direct 4996 10805 n/a investment

Portfolio • • n/a investment

Other 1230 691 n/a investment

Source: Rosstat 2006 & 2008

www.tse.fi/pei 4. External economic relations b) Foreign trade export in million USD

400

350

300

250 Pskov with CIS 200 Pskov with non• 150 CIS 100

50

0 2003 2004 2005

Source: Rosstat 2005 & 2006

www.tse.fi/pei 4. External economic relation c) Foreign trade import in million USD

350

300

250

200 Pskov with CIS

150 Pskov with non• CIS 100

50

0 2003 2004 2005

Source: Rosstat 2005 & 2006

www.tse.fi/pei 5. Additional information

Chamber of Commerce and Industry of the Pskov region

http://www.cci.pskov.ru/eng/index.html

Investment opportunities of Pskov region

http://en.is.pskov.ru/

North•West Federal District of the Russian Federation

http://www.szfo.ru/section/87/pskowskaya_oblasty.html

Pskov region official site

http://www.pskov.ru/

Pskov regional tourist site

http://www.tourism.pskov.ru/

Information subject to changes

www.tse.fi/pei