Pskov Slide Package for a Foreign Investor
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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.