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Putevoditel-Eng_Layout 1 28.01.2015 15:17 Page 1 2 26 - Governor of the Leningrad Region - PwC Russia’s Managing Partner - Economic Development Agency of Leningrad - Chairman of the Leningrad Region Legislative Region: «one-stop-shop» investor support Assembly - Agency for Strategic Initiatives to Promote - Ombudsperson for Entrepreneurs' Rights New Projects in the Leningrad Region 28 10 - General statistics and performance - Manufacturing - Statistics - Mining - Ratings - Power, gas and water production - Cluster policy and distribution - Competitive advantages - Investment strategy 32 - State support - Medical, Pharmaceutical and Radiation Tech- - Investment law nology Cluster - Investment sites. Integrated regional - Shipbuilding Cluster information system - Construction Materials Cluster - Industrial parks - Agricultural Cluster - Public private partnerships - Automotive and Auto Components Cluster - Organisations and associations - Forestry Cluster - Oil&Gas, Chemical and Petrochemical Cluster - Military Industrial Cluster 62 Leningrad region the territory of successful investments PwC 1 Putevoditel-Eng_Layout 1 28.01.2015 15:17 Page 2 2 Leningrad region the territory of successful investments PwC Putevoditel-Eng_Layout 1 28.01.2015 15:17 Page 3 The Leningrad Region is rightfully considered to be one cial and economic actors. We need to create the condi- of the most attractive areas in Russia for investors. The re- tions for developing a «new» economy based on high- gion's economy is among north-western Russia's top perform- tech industries. To this end, a network of private and ers in terms of gross regional product. We are committed public industrial parks has been built in the Leningrad Re- not only to maintaining this leading position, but also trans- gion to cultivate business. Furthermore, industrial enter- forming the region into the most favourable for business. prises receive subsidies in order to upgrade their produc- Today, the Leningrad Region has a law in place to sup- tion facilities and buy new equipment. They also enjoy port investors through tax benefits. Furthermore, a Re- tax breaks. gional Investment Standard has been implemented while This guide outlines regional laws, development priori- a new front office is now successfully assisting investors ties and the investment policy of the Leningrad Region. I hope in all phases of various projects, from searching for land that it will assist you in setting up and developing your plots for production facilities to making sure that projects business in the region. reach their design capacities. We are open for joint projects with all interested par- The political and economic environment both inside ties and very eager to develop business here. Welcome to and outside of Russia has presented new demands for so- the territory of successful investments! Alexander Drozdenko Governor of the Leningrad Region Leningrad region the territory of successful investments PwC 3 Putevoditel-Eng_Layout 1 28.01.2015 15:17 Page 4 4 Leningrad region the territory of successful investments PwC Putevoditel-Eng_Layout 1 28.01.2015 15:17 Page 5 The Leningrad Region today presents a vivid example Top priority objectives for the region today include fur- of a dynamic and rapidly growing economy. The availabil- ther improvement of living standards and setting attractive ity of a rich natural resources base and a highly qualified terms for the development of new investment projects. labour pool, easy access to both Russian and European mar- The Leningrad Region Government's efforts to improve kets, and robust production and technological potential conditions for investors, such as investment support based are some of the key factors helping to promote the Le- on a «one-stop-shop» principle, contribute to creating the ningrad Region as a highly industrialised territory that is best possible climate for doing business. home to all types of manufacturing activity. In addition to a simplified procedure for obtaining tax The Leningrad Region is unique in terms of its geograph- breaks, another advantage of doing business in the region ical location. Access to the Baltic Sea, geographic proxim- is the availability of operational industrial parks and clusters. ity to Western Europe, availability of practically all means of transport and brisk development of ports and logistic hubs This guide presents the most interesting and helpful make the region one of the largest transportation hubs in information about the economic situation in the region, north-western Russia and an important link in Russian and its prospects for development, specific matters related to global transportation infrastructure. establishing and operating a business, and government A notable advantage of the region is its natural inte- support for investors. gration with the second most important city of the Russian We strongly believe that this publication will be helpful Federation, St Petersburg, which makes it one of the largest to both existing and potential investors. Furthermore, we consumer markets in Russia and also contributes to the wish the Leningrad Region Government new successes and development of both the local and nationwide economy. achievements in its efforts to make the region prosper! David Gray Managing Partner, PwC Russia Leningrad region the territory of successful investments PwC 5 Putevoditel-Eng_Layout 1 28.01.2015 15:17 Page 6 6 Leningrad region the territory of successful investments PwC Putevoditel-Eng_Layout 1 28.01.2015 15:17 Page 7 Our region consistently ranks among the leading Russ- In addition, the region is now functioning and devel- ian territories in terms of social and economic development. oping under Region Law No. 113 «On Government Support We believe that the main job of our deputies is keeping for Organisations Investing in the Leningrad Region and on this performance at a high level through continual im- Amending Certain Legal Acts of the Leningrad Region». provements to regional legislation. The law sets out new regulations in this regard, taking in- For over 15 years now, the fundamental law of the to account today's economic realities. Leningrad Region with respect to government support for Lawmakers pay special attention to enhancing the re- the economy has been Region Law No. 24-oz «On Govern- gion's investment attractiveness and are eager to pass ment Support of Investment Activity in the Leningrad Re- laws aimed at offering additional tax benefits to investors. gion». One of the first and forward-looking regional laws The economic achievements of the Leningrad Region in the Russian Federation, this legislation has given strong were possible thanks to the effective teamwork of the impetus to the local economy and set a good example for legislative and executive authorities. I am sure that close co- other regions. As a result, the improved investment cli- operation with the business community will help us deal mate has attracted dozens of large well-known companies with major challenges while also enhancing our region as to the region. place to prosper and live comfortably. Sergey Bebenin Chairman of the Leningrad Region Legislative Assembly Leningrad region the territory of successful investments PwC 7 Putevoditel-Eng_Layout 1 28.01.2015 15:17 Page 8 8 Leningrad region the territory of successful investments PwC Putevoditel-Eng_Layout 1 28.01.2015 15:17 Page 9 The Leningrad Region is one of the best places in Rus- At the same time, I believe that the key factor in se- sia for developing and operating a business. Its favourable lecting a region for investment is not its resources, but location combined with extensive scientific and techno- the quality of work carried out by the regional team. The logical capabilities, developed market infrastructure and Leningrad Region Government is committed to creating a profitable and comfortable environment for investors. professional and skilled people makes it possible to set up production for any industry. The office of Ombudsperson for Entrepreneurs' Rights has been established in the region to ensure safe business Inflow of investment to the local economy has in- operations, as well as facilitate efficient feedback be- creased mainly due to the stable legal environment, recog- tween government and business. The well-being of busi- nition of guaranteed equal rights and terms for investors ness generally depends on each individual entrepreneur's and professional support in organising and developing confidence and success. My goal is to ensure this confi- businesses. dence and sense of safety among entrepreneurs. Elena Ruleva Ombudsperson for Entrepreneurs' Rights in the Leningrad Region Leningrad region the territory of successful investments PwC 9 Putevoditel-Eng_Layout 1 28.01.2015 15:17 Page 10 INVESTMENT CLIMATE OF THE LENINGRAD REGION Putevoditel-Eng_Layout 1 28.01.2015 15:17 Page 11 The Leningrad Region offers favourable conditions for The region's investment profile is as follows – out attracting investment. The period between 2009 to 2014 of total capital investments in large and medium-sized or- saw high levels of investment. Many major projects have ganisations in January-June 2014: been implemented in the region, including strategic ini- • RUB 23.4 billion (44.5%) went to manufacturing; tiatives with extended investment periods. • RUB 14.5 billion (27.6%) – to transport and commu- Total fixed capital investments from all sources came nication development; to RUB 235.4 billion in 2013 and RUB 64.9 billion in Jan- •
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