Pskov slide package for a foreign investor
Elias Kallio December 2019 Contents
1. General information 3
2. Regional economy 10
3. Prosperity and consumption 20
4. External economic relations 25
5. Additional information 29
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.
2 1. General information a) Basic facts
Area: 55 300 km2
Largest towns: (population 2019) Pskov 210 116 Velikiye Luki 90 549 Ostrov 20 482 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: Pskovstat 2019 3 1. General information b) Administrative division
District Population (2019) District Population (2019) Bezhanitsy 9 834 Pechory 19 376 Dedovichi 11 697 Plyussa 7 266 Dno 10 971 Porhov 16 947 Gdov 11 976 Pskov 41 093 Krasnogorodsk 6 692 Pskov (city) 210 116 Kunya 8 779 Pushkinskiye Gory 7 837 Loknya 7 757 Pustoshka 7 899 Nevel 23 308 Pytalovo 10 682 Novorzhev 7 849 Sebezh 18 833 Novosokolniki 12 580 Strugi Krasnye 10 129 Opochka 15 990 Usvyaty 4 932 Ostrov 28 691 Velikie Luki 20 551 Palkino 7 317 Velikie Luki (city) 90 549
Source: Pskovstat 2019 4 1. General information c) Geographical facts
Borders with: Latvia 214 km Estonia 270 km Belarus 305 km Distance from Pskov to some capitals: Riga 270 km Tallinn 350 km Minsk 480 km Moscow 689 km Helsinki 700 km Kiev 780 km Warsaw 800 km Stockholm 860 km Berlin 1 200 km Brussels 1 740 km
5 1. General information d) Transport infrastructure
Motorways Railway routes Moscow – Riga Moscow – Riga St. Petersburg – Kiev – Odessa St. Petersburg – Odessa St. Petersburg – Vilnius St. Petersburg – Vilnius – Kaliningrad St. Petersburg – Riga St. Petersburg – Riga St. Petersburg – Lviv 2005 2010 2017 Length of roads (km) 10 891 14 552 23 466 Length of railways (km) 1 092 1 092 1 089 Cargo traffic on railways (tons) 2 609 3 832 3 799 Cargo traffic on roads (tons) 792 1 455 1 265 Passenger traffic on railways (million people) 4.7 2.3 0.7 Passenger traffic on roads (million people) 119.6 69.5 50.6
Source: Pskovstat 2019 6 1. General information e) Population
Structure of population in 2019 70+ 70,155 2008 2013 2018 65-69 42,835 Population (thousand) 700 662 637 60-64 49,697 Population change (%) -7.7 -5.4 -3.8 55-59 49,531 50-54 40,373 Share of urban population in total 69.2 70.3 70.9 45-49 41,273 population size (%) 40-44 43,026 Economically active population 35-39 45,298 366.9 350.9 319.0 (thousand) 30-34 48,046 25-29 39,926 52.5 53.1 50.1 Economically active population (%) 20-24 31,577 Number of unemployed (thousand) 23.8 24.4 18.2 15-19 28,966 10-14 31,272 Unemployment, ILO definition (%) 6.5 7.0 5.7 5-9 34,506 0-4 33,170 • Population is decreasing and getting older, as a 0 10000 20000 30000 40000 50000 60000 70000 80000 consequence the dependency ratio is getting worse.
Source: Rosstat 2019, Pskovstat 2019 7 1. General information f) Population
Migration balance • Most of the migration 2500 movement takes place inside 2000 Russia or inside post-Soviet territory. 1339 1500 1223
827 1000 716 500 177 0 2016 2017 2018 -500 -548 -597 -1000 -698 -1162 -1161 -1500 -1375
-2000 -1859
-2500 Total migration Inside Russia Foreign countries (total) CIS-countries
Source: Pskovstat 2019 8 1. General information g) The unemployment rate % (ILO definition)
8% • Unemployment in the Pskov 7.0% 6.9% region is a larger problem than in 7% 6.5% 6.7% 6.5% Russia on average.
5.7% • Compared to the average of the 6% 5.5% 5.6% 5.5% 5.2% 5.2% North-West Federal district, 5% 4.8% where Pskov is located, the situation is even worse. 4.7% 4.6% 4% 4.3% 4.1% 4.2% • One of the reasons why people 3.9% are moving from the Pskov 3% region is employment and higher 2% living standards elsewhere, for example in St. Petersburg. 1%
0% 2013 2014 2015 2016 2017 2018 Pskov North-West Federal district Russia
Source: Rosstat 2019 9 2. Regional economy a) Regional GDP per capita
10,000 € 600,000 ₽ 2017 65.94 8,904 € Average annual 9,000 € 8,731 € exchange rate 2016 74.14 7,952 € 500,000 ₽ 8,000 € 7,738 € EUR to RUB 2015 68.07 2014 50.95 7,000 € 6,598 € 6,367 € 400,000 ₽ 2013 42.34 6,000 € 2012 39.93 5,000 € 300,000 ₽ 4,055 € 4,110 € Share of the North-West Federal District 4,000 € 3,717 € 3,596 € in 2017 3,063 € 3,047 € 200,000 ₽ 3,000 € Pskov region 1.85% 2,000 € 100,000 ₽ 1,000 € 0 € 0 ₽ 2012 2013 2014 2015 2016 2017 Pskov EUR Russia average EUR Pskov RUB Russia average RUB
North-West Federal District 98.15% 10 Source: Rosstat, Statista 2019 2. Regional economy b) Development of regional GDP per capita in current prices
25% 21.5% 20% 18.0% 15% 10.1% 10.8% 8.8% 10% 7.5% 8.1% 7.5% 8.4% 8.1% 5.1% 5.0% 5% 1.3% 2.0% 0% 2013 2014 2015 -0.5% 2016 2017 -5% -3.5% -10% change from previous year previous change from -9.6% - -10.7% -15%% -20% -17.6%-17.0% Pskov EUR Russia average EUR Pskov RUB Russia average RUB • Because of Ruble’s devaluation the GDP development in RUB and EUR is radically different. • The GDP measured in EUR describes the development of real GDP and purchasing power more adequately.
Source: Rosstat, Statista 2019 11 2. Regional economy c) Structure of regional GDP by economic activity in 2017
Manufacturing Others 29% industries 17%
Retail trade and wholesale 16%
Construction 7%
Agriculture, hunting Transport and and fishing 11% communications 10% Government, military and social security 10%
Source: Pskovstat 2019 12 2. Regional economy d) Distribution of companies by ownership and economic activity
2010 2015 2016 2017 2018 Distribution of companies by economic activity in 2018 State-owned 783 625 616 602 556 Wholesale and Municipal-owned 1 295 888 853 823 811 Others retail trade 31% 28% Privately-owned 11 860 12 977 12 621 12 696 12 074 Religious and public 895 839 837 839 766 organizations Others 1 151 1 053 869 871 811 Total 15 984 16 448 15 796 15 831 15 017 Real estate Construction • The share of private companies has grown 7% 11% substantially in the last 10 years. Transport and storage Manufacturing Agriculture, 7% industries hunting and 9% fishing 8%
Source: Pskovstat 2019 13 2. Regional economy e) Largest* companies of the Pskov region
Food industry: Fuel, chemical and petrochemical industry: Machine-building and • Pskovpischeprom ZAO • ERT OOO Metal processing industry: • Pskovskij molochnij kombinat ZAO • Nordiks-Balt OOO • Avtospezoborudovanie OAO • Pskovskij hladokombinat OAO • Autoelektroarmatura OAO • Pskovskij Hlebokombinat OAO Electricity industry: • Zavod Tochlit ZAO • Torgovaya firma vodniyi mir OOO • ZETO ZAO • Magnitnoye Mashinostroyenie OOO • Pskovskij kabelnij zavod OAO • OKZ Holding OOO Wood industry: • Ekvajer OOO • Poliplast OOO • Alta ZAO • Bytovka-Pskov OOO • Pskovgeokabel OOO • Domlessteroj OOO Light and textile industry: • Pskovskaya lodochnaya verf ZAO • Pskov-Polimer OOO Power industry: • Pskovskaya Shvejnaya fabrika slavyanka ZAO • PAO MRSK Severo-Zapada’s subsidiary Pskovenergo
Information subject to changes Source: Administration of Pskov 2019 14 *According to the Administration of the Pskov region. 2. Regional economy f) Growth of socio-economic indicators in 2017
7.1% Retail trade turnover 6.6% 5.3%
1.7% Real income 4.1% 2.9%
4.7% Nominal income 8.9% 6.6%
Production of processing 4.3% 5.3%
industries 2.5%
growth from previous year previous from growth
- % 28.3% Investment in fixed capital 9.2% 8.7%
0% 5% 10% 15% 20% 25% 30% Pskov North-West Federal district Russia
Source: Fedstat, Rosstat 2019 15 2. Regional economy g) Development of investment in fixed capital (million EUR)
Average annual 500 2.0% exchange rate 1.9% EUR to RUB 450 1.8% 1.8% 2018 74.04 400 1.6% 1.5% 2017 65.94 350 1.4% 1.3% 2016 74.14 300 1.2% 1.1% 1.1% 2015 68.07 250 1.0% 475 2014 50.95 200 406 0.8% 2013 42.34 150 312 0.6% 264
263 year previous change from 216 - 100 0.4% % 50 0.2% 0 0.0% 2013 2014 2015 2016 2017 2018 Pskov North-West Federal district
Source: Fedstat, Statista 2019 16 2. Regional economy h) Development of retail trade (million EUR)
3000 Average annual exchange rate EUR to RUB 2500 2,382 2,299 2,250 2018 74.04 2,085 2,027 2000 2017 65.94
1,617 2016 74.14 1,515 1,437 1,493 1500 1,342 2015 68.07 2010 40.26 1000
500
0 2010 2015 2016 2017 2018 Pskov Kaliningrad The population of Pskov region in 2018 was about 637 000 and Kaliningrad region about Source: Fedstat, Statista 2019 17 1 000 000. 2. Regional economy i) Development of industrial production (% from previous year)
Industrial production 7% 2015 2016 2017 2018 6.5 % Industrial production 2.6 4.2 6.5 1.4 6% Mining 11.2 5.5 9.1 12.4 5% Manufacturing industries 3.8 5.3 4.3 2.3 4.2 % 4% Electricity, gas and steam -17.3 -14.1 22.2 -25.8 Water and waste disposal -1.8 6.6 42.7 -0.2 3% 2.6 %
2%
change from previous year previous change from 1.4 % - % 1%
0% 2015 2016 2017 2018
Source: Pskovstat 2019 18 2. Regional economy j) Investment potential ranking of the Pskov region among 85* Russian regions
2017 2018 Ranking of investment potential 67 68 Labor potential 68 71 Consumption potential 70 70 Production potential 71 72 Financial potential 71 71 Institutional potential 63 57 Innovation potential 71 73 Infrastructure potential 20 17 Natural resource potential 76 76 Tourism potential 33 33 Ranking of investment risk 59 64
*The international community does not recognize Crimea Source: RAEX 2019 19 and the City of Sevastopol as a part of Russia. 3. Prosperity and consumption a) Average income and minimum subsistence level, €/month 800 € 712 € 700 € 640 € Average annual 594 € 600 € 587 € exchange rate EUR to RUB 500 € 496 € 500 € 467 € 2018 74.04 410 € 2017 65.94 400 € 354 € 363 € 315 € 300 € 2016 74.14 300 € 2015 68.07 200 € 2014 50.95 170 € 161 € 160 € 100 € 151 € 142 € 143 € 2013 42.34
- € 2013 2014 2015 2016 2017 2018 Russia Pskov Minimum subsistence level Pskov • The substantially lower wages than the Russian average are partly the reason for people to move to other regions.
Source: Fedstat, Statista, Rosstat 2019 20 3. Prosperity and consumption b) Growth of the real money income %
15%
10.3% 10% 8.5% 8.9%
4.8% 5.0% 5% 4.1% 2.9% 2.9% 1.2% 1.3% 1.7% 0.6% 0.8% 0.8% 0% 2013 2014 2015 2016 2017 2018 -1.8% -5%
-8.3% -10% -9.0%
-12.2% -15% Russia Nort-West Federal district Pskov
Source: Fedstat 2019 21 3. Prosperity and consumption c) Cost of the basket containing minimum set of food products (€/month)
80 € 73 € 70 € 68 € 68 € 70 € 66 € 66 € 64 € 62 € 62 € 61 € 60 € Average annual 58 € 58 € 60 € 56 € 57 € exchange rate 54 € 53 € 50 € EUR to RUB 50 € 2018 74.04 40 € 2017 65.94 30 € 2016 74.14 20 € 2015 68.07
10 € 2014 50.95
- € 2013 42.34 2013 2014 2015 2016 2017 2018 Pskov Russia Nort-West Federal district • The minimum set of food is a standard, defined by the Federal State Statistic Service.
Source: Fedstat, Statista 2019 22 3. Prosperity and consumption d) Consumer price index
16% 14.2% 14% 13.0% 13.1% 12.5% 12.0% 12% 11.4%
10%
8% 7.2% 6.5% 6.6% 6% 5.4% 5.1% 5.1% 4.9%
4.3% 4.1% change from previous year previous change from - 4% 3.1% % 2.4% 2.6% 2%
0% 2013 2014 2015 2016 2017 2018 Pskov Russia North-West Federal district
Source: Fedstat 2019 23 3. Prosperity and consumption e) Other indicators
450 Number of cars per 1 000 persons 35 Average apartment size per person
393 400 382 30 30 376 30 29 350 25 25 305 25 24 300 289 294
250 20
200 15
150 meters Square 10 100
50 5
0 0 2015 2016 2017 2015 2016 2017 Pskov Russia Pskov Russia
Source: Rosstat, Pskovstat 2019 24 4. External economic relations a) Development of foreign trade of goods (million USD)
600 530 500
400 373 360
309 300 283
208 214 203 200 159 157 123 100 70 62 56 59 48
0 2015 2016 2017 2018 Total export Export to CIS-countries Total import Import to CIS-countries
Source: Pskovstat 2019 25 4. External economic relations b) Foreign trade export in 2018
Export by country Export structure
Others 13% Others 13% Hong Kong 2% Metals 55% Finland 2% Animal products 7% Kazakhstan 3%
Latvia 7% Machinery, equipment and vehicles 10%
Estonia 8% Belarus 66%
Wood and wood products 15%
• Total export is 283 million USD.
Source: Rustat based on data from Russian customs 2019 26 4. External economic relations c) Foreign trade import in 2018
Import by country Import structure
Belarus 15% Machinery, Others 38% equipment and Others 32% vehicles 29%
Germany 13%
China 12%
Books, paper and Food, beverages paperboard 7% and tobacco 16% Austria 5% Plastics and rubber Hungary 6% Latvia 11% 8% Metals 8%
• Total import is 309 million USD.
Source: Rustat based on data from Russian customs 2019 27 4. External economic relations d) Visitors in hotels and other accommodation services
350000
300000 26,961 25,841 30,367 250000
200000 16,572 150000 266,163 249,837 252,537 100000 168,755
50000
0 2015 2016 2017 2018 Russian citizens Foreign Citizens
28 5. Additional information
Chamber of Commerce and Industry of the Pskov region https://pskov.tpprf.ru/en/ Investment opportunities of Pskov region http://invest.pskov.ru/en/about-region North-West Federal District of the Russian Federation http://szfo.gov.ru/district/PSK/ Pskov region official site http://www.pskov.ru/ Pskov regional tourist site http://www.tourism.pskov.ru/
Information subject to changes
29