Contents General information 4 Business support infrastructure 14 Advantages of investing Economic Development Agency in Leningrad region 5 of Leningrad Region 16 Economy 6 Measures of support for business 18 Investment climate 7 Ongoing projects 26 Industry 8 Success stories 30 Territories of prospective 10 Contacts 34 development Introductory words Leningrad region is one of the largest main anti-crisis measures of support were industrial centers of Russia and holds leading adopted in the region as soon as possible; positions in the Northwestern Federal District the investment team always stays in touch in terms of the economic development. It is with the business and quickly reacts to the proven by the actual figures: the GRP of the changes, which take place. The efforts of the region has been growing by 2.5 times faster region were highly appraised at the federal than the GDP of Russia over the past 6 years. level – Leningrad region took the second A comprehensive activity, targeted at the place in the ranking of regions in terms of the attraction of investment and support of entrepreneurship supporting measures entrepreneurial initiatives, is carried out in during the pandemics, which was prepared Leningrad region, and the achievements of by the Presidential Commissioner for the region in terms of its investment policy Entrepreneurs’ Rights of Russia. are observed not only by the Russian, but The team of Leningrad region is open for also international business community. In dialogue with investors, and one of the key 2020, as the poll of the Russian-German platforms for direct interaction between the Chamber of Commerce showed, Leningrad representatives of Leningrad region and the region was included in top ten regions, which Russian and global community is the are most attractive for the German business, Baltic Regional Investment Forum BRIEF. and top five regions with the best investment The forum focuses on the issues of Dmitry Yalov environment. localization and measures of support for The Government of Leningrad Region investors, export development and Deputy Chairman provides multifaceted assistance to business cooperation ties and it is organized annually of the Government of Leningrad Region – in the current challenging conditions. The in September. Chairman of the Committee for Economic Development and Investment Activity Investor’s guide to Leningrad region 3 General information Murmansk (1,106 km) Borders with the European Union Arkhangelsk (878 km) (Finland and Estonia) Access to the Baltic Sea Lake Helsinki LENINGRAD (through the Gulf of Finland) Ladoga (246 km) REGION Oslo (1,165 км) Tallin Baltic Sea (284 km) Close proximity Stockholm Saint Petersburg to Saint Petersburg (663 km) Moscow (598 km) 4 seaports Minsk (647 km) Berlin (1,593 km) Pulkovo International Airport (located in Saint Petersburg) Paris (2,612 km) Rome (2,814 km) Madrid 83.9 1.9 969.4 (3,884 km) thousand km² million people thousand people total area population human resources Advantages of investing in Leningrad region Favourable geographical location Accessible infrastructure • Shares borders with the European Union • Wide range of available greenfield and brownfield • Located 600 km away from Moscow investment sites (252 available sites) • Direct proximity to Saint Petersburg – one of the • Low cost of electric power supply largest industrial centers and the second largest • Low rental rate for industrial facilities consumer market of Russia • Low rental rate for land plots Efficient measures of support for investors Large transportation and logistics hub • Extensive support infrastructure for investors • Located at the crossroad of international • Package solution for tax benefits transportation corridors • Ports of Leningrad region provide 22% of export and import cargo turnover of the country • The largest port is Ust-Luga (cargo turnover in Access to labor force 2019: 103.8 million tons of cargo – the 1st place among all the Baltic Sea ports) • Ability to hire highly skilled personnel from Saint Petersburg • Low cost of labor force (the average salary in 2019 – 46,387 rubles, which is by 40% less than in Saint Petersburg) Investor’s guide to Leningrad region 5 Economy Structure of gross regional product in 2018 Ratings 38.1% 10.5% 5 place in the ranking of the regions Industry Construction in terms of achievement of high rates of increasing economic (tax) potential 6.7% Ministry of Economic Development 13.1% Real estate of a territory Transport and transactions communications 4.9% Agriculture 13 place in the National Regional 11% Investment Climate Ranking Wholesale 15.7% and retail trade Other 1 place among Russian regions in the nomination “Financial stability” GRP dynamics, RUB billion 14.3% 5 place among Russian regions in the 1,152* GRP growth in nomination “Minimal risk” 1 ,178.5 2013-2019* 963.8 916.4 BB+: long-term credit rating, 849.6 603.2 thousand rubles forecast “Stable” 703.3 678.7 GRP per capita in 2018 2013 2014 2015 2016 2017 2018 2019 *according to estimates 6 Investor’s guide to Leningrad region Investment climate Structure of investments to fixed assets according to the types Investments, billion RUB of economic activity in 2019 511.1 35.6% share of investments in GRP of the region 419.1 45.4% 6.2% 338.6 264.2 Transportation Real estate 225.9 and storage transactions 178.8 18.5 % 3.1% 419.1 Manufacturing Agriculture, industries forestry, hunting, billion RUB 2014 2015 2016 2017 2018 2019 14.1% fishing and fish farming (estimate) Electric power, gas 12.7% and steam; air Other Foreign direct investment, conditioning billion USD 5.8 4.7 5.3 4.8 4.8 3.4 9 place among all the 10 place among entities of the Russian Federation all the entities of the Russian in terms of the amount of attracted Federation in terms of the 2014 2015 2016 2017 2018 2019 foreign direct investment amount of investment Investor’s guide to Leningrad region 7 Industry 50 Population (thousand people) Manufacture of food products, including beverages and tobacco Textile and clothing manufacturing 熅熋 Timber processing and manufacturing Porporozhsky of wooden goods 熉熄 熅熌 Priozersky Lodeynopolsky Pulp and paper production 熅熃熃 Vyborgsky 熆熌熌 Production of coke and Vsevolozhsky oil products 熉熋 Saint Petersburg 熊熃 Chemicals industry Sosnovoborsky 熋熌 Tikhvinsky 熊熆 熄熃熉 Volkhovsky Lomonosovsky Kirovsky Production of rubber 熇熌 and plastic goods 熄熅熋 熉熅 Boksitogorsky 熊熉 Kirishsky Tosnensky Metalworking production Kingiseppsky 熈熅 熅熇熆 Volosovsky Gatchinsky Production of other non-metallic mineral commodities 熇熅 熊熅 Slantsevsky Production of machines Luzhsky and equipment Production of vehicles and equipment Mining ® Production and distribution of electricity Production of electric, electronic and optical equipment 8 Investor’s guide to Leningrad region Industry th The region occupies the 15 place among all subjects of the Russian Federation in terms of the PRIORITY DEVELOPMENT AREAS volume of industrial production OF LENINGRAD REGION: Industry is the base Oil, gas and Construction of the regional 38.1% chemical industry economy Share of industry in GRP complex Automotive Food industry industry 1.3 trillion rubles 42% volume of locally Growth of the total produced and shipped value of export goods in 2019 (2016–2019) Timber industry Mechanical complex engineering Energy complex Shipbuilding 104.6% > 500 > 140 industrial active small, thousand people Metallurgical industry production medium-sized work at enterprises index in 2019 and large industrial enterprises Investor’s guide to Leningrad region 9 Territories of prospective development • Territory of prospective development near Ust-Luga Commercial Seaport • Industrial parks • Territory of advanced social and economic development Pikalevo Territory of prospective development near Ust-Luga Commercial Seaport The seaport of Ust-Luga is located at the border with the European Union, it is the largest port in the Baltic Sea and the second largest port in Russia. Advantages of Ust-Luga port: The territory is considered 160,000 tonnes Availability of free areas for development and deadweight of the ships for further development implementation of investment It is the only Russian port in the Baltic projects in such spheres as: Sea which can accept ships with such deadweight 3.2 nautical miles length of Luzhsky sea channel Chemical industry Which allows bypassing the overloaded transporthub of Saint Petersburg 17.5 meters Oil and gas industry water depth Universality of the port its terminals and factory complexes 131 km transship and process more than to Saint Petersburg 20 categories of cargo Oil and gas processing million tonnes of cargo 103.8 turnover of the port in 2019 Investor’s guide to Leningrad region 11 Industrial parks The information about industrial parks and investment sites industrial parks in Leningrad region is included in the integrated regional information system 30 “Investment Development of Leningrad Region” (map.lenoblinvest.ru). 10 There are more than 250 investment sites with different Already operating engineering infrastructure availability in the data base of the system. 10 Leningrad region provides the following measures of support Under construction for industrial parks*: 10 Planned parks Reduction of corporate income tax to 13.5% (regional part) Reduction of corporate property tax to 0% 27 Private parks Rent reduction for land plots in regional property and unrestricted property: 3 up to 30%: 1–2 years State-owned parks up to 60%: 3–5 years (Pikalevo, Tosno, Nanopark up to 90%: 6–8 years