ST. PETERSBURG

City Passport

St. Petersburg is located at the eastern head of the Gulf of Finland (an arm of the ). The geographical coordinates of the city center are 59°57' North and 30°19' East. Situated at the junction of the sea, river and land-based routes, St. Petersburg is ’s gateway to Europe, its strategic center closest to the countries of the European Community.

Inland waters occupy about 10% of the city area.

The total area of the city (together with areas under municipal jurisdiction) is 1439 km2.

The city population is 4.568,00 people (the estimate of Petrostat as of 1.01.2008). St. Petersburg is the second largest city of the Russian Federation (after Moscow).

St. Petersburg is the administrative center of the Northwest Federal district. It has significant natural resource potential, highly developed industry, dense transportation network, and links the

1 Russian Federation with the outside world via the sea ports in the Baltic Sea and the Arctic Ocean.

The city is the seat of:

 Constitutional Court of the Russian Federation;  territorial offices of federal ministries and agencies;  representative offices of 26 constituent entities and 3 cities of the Russian Federation;  52 consulates of foreign countries;  representative offices of international organizations: the Inter-Parliamentary Assembly of Member Nations of the Commonwealth of Independent States, the Information Office of the Nordic Council of Ministers, representative offices of international foundations and unions, UN organizations;  branch offices of international cultural institutions: the German Goethe Institute, the French Institute, the British Council, the Institute of Finland, the Dutch Institute, the Danish Institute of Culture, the Israeli Cultural Center, the Italian Institute of Culture;  representative offices of Stockholm and ;  chambers of industry and commerce and business centers of foreign countries.

Culture

St. Petersburg has a great historical and cultural heritage which ensures social stability and harmony in inter-ethnic and inter-confessional relations, enhances creative potential, spiritual evolution of individuals and the society as a whole.

Culture makes an important contribution into the economic renaissance of the city, creating new jobs, attracting investment, developing new sectors – cultural tourism and artistic crafts.

St. Petersburg is a cultural center of world importance with 7783 sites of cultural heritage in it, which amounts to almost 10% of all monuments protected by the state in the territory of Russia. An impressive system of arts and humanities centers operates in the city: museums, theaters, libraries, art galleries and concert halls. The Hermitage, the Mariinsky Opera and Ballet Theater, the Russian National Library, the Russian Museum, the Peter-and-Paul Fortress, the Maly Drama Theatre, the St. Isaac’s Cathedral place St. Petersburg among the top ten cities of the world most attractive for visiting.

UNESCO has included the historic downtown part of St. Petersburg in the World Heritage List.

Culture is the strategic potential of St. Petersburg integration into the Russian and world economy as of a multi-functional city of European standards.

Cultural heritage sites

St. Petersburg is a major cultural center of worldwide and national importance, where unique objects of cultural and historic heritage are concentrated:

 7783 cultural heritage sites in St. Petersburg;  over 80% of historic landmarks belonging to the 18th and 19th centuries are originals;  St. Petersburg ranks the eighth in the list of the most popular and attractive travel destinations in the world (reported by UNESCO);

2  St. Petersburg, as an area with 36 integrated sites bringing together some 4,000 of outstanding architectural, historical and cultural landmarks, is included in the UNESCO World Heritage List.

The following cultural institutions function in St. Petersburg:

Museums

 Museums and conservation areas of the municipal system: 44;  Federal museums: 25 (with branches);  Departmental museums: 20;  Other museums: 65. Total: 154

Libraries

 Federal libraries – 1;  District libraries – 188;  Libraries of the Trade Union system – 42;  Departmental libraries 34. Total: 265

Theaters

 Municipal theaters – 27;  Federal theaters – 6;  Theaters sponsored by the regional administration located in the city – 4.  Private theaters – 25. Total: 62

Concert production organizations

 Municipal concert production organizations – 14;  Federal concert production organizations: -- 2. Total: 16

Culture and leisure institutions  Municipal culture and leisure institutions -- 28  Departmental culture and leisure institutions – 27 Total: 55

Educational institutions  Municipal secondary professional educational institutions – 5;  Music and artistic schools and schools of art – 64. Total: 69 Parks  Municipal parks of culture and leisure – 5;

Movie theaters  Municipal movie theaters – 16, including 9 for children;  Cinema associations – 2;

3

Statistics of events in the cultural life of St. Petersburg in 2006 – 2007.

Events 2006 2007 Exhibitions 866 940 - of contemporary art 609 626 - from museum collections 257 314 New productions 128 130 Art festivals 249 259

Science

St. Petersburg is a major center of scientific research and education in Russia (accounting for more than 11% of the total scientific and educational potential of the country).

Brief description of the scientific potential of St. Petersburg

St. Petersburg is a major center of academic, applied and university science which has capacity to generate important achievements in science and technology in the most diverse areas: hydrogen power engineering, microsystems, nano- and biotechnologies, new materials and other critical areas of research. The scientific potential of the city has the following distinctive characteristics:

 availability of unique scientific schools, high-skilled researchers, engineers, technicians and production workers capable to maintain development of research and technologies and to participate in prestigious international projects;  capacity to combine perspective directions of fundamental and target-oriented researches and development focused on particular results;  capacity to support highly dynamical production process, which manifests in continuous renewal of the component production (items under research, development, and in production; technologies, circuitry and structural design, information flows etc.).

The city innovation organizations use virtually all available form of funding of the innovation processes: federal and regional programs, foreign grants, venture financing, and funds of industrial facilities.

About 92 thousand researchers work in the city: of those, 8.8 thousand are Doctors of Sciences, 25.7 are Candidates of Sciences, and 14.2 thousand are aspirants and doctorates.

Spheres of science and innovation activities in St. Petersburg are represented by:

 453 scientific institutions including 65 state academic scientific institutions, of which 41 belong to in the system of the Russian Academy of Sciences; 14 scientific

4 institutions of the Russian Academy of Agricultural Sciences; 4 scientific organizations of the Russian Academy of Medical Sciences; 2 research institutions of the Russian Academy of Arts; 2 research institutions of the Russian Academy of Education; 1 research institution of the Russian Academy of Education; 1 research institution of the Russian Academy of Natural Sciences; 1 research institution of the Russian Academy of architecture and construction;  405 branch research institutions including 148 state research institutions and 257 research institutions in the business sector;  111 university institutions;  13 innovation and technological parks;  9 centers of joint exploitation of unique equipment.

The list of major research and development institutions of St. Petersburg is shown in Appendix 1.

Major directions of research, scientific - technological and innovation activities, pilot projects, testing and training of personnel in priority areas were established by the Russian Federation Government Verdict №449 as of 23.07.2005 “On Assignment of the Technology Park Status of the Russian Federation to the City of Petershof” for the Petershof Science and Technology Park (Naukograd) of the Russian Federation in correspondence with the priority directions of the science, technological and techniques development of the Russian Federation

Information on the structural development of the Russian Federation Naukograd in Petershof is shown in Appendix 2.

Brief information on St. Petersburg higher educational institutions and secondary vocational schools

The system of higher professional education comprises:

 48 public civil universities and colleges;  18 military academies, universities and colleges;  45 private universities and colleges;

450 thousand students receive training in public and private universities and colleges.

The faculty of universities and colleges of St. Petersburg numbers about 30,3 thousand people, among them 4,900 doctors of science, 15,5 thousand candidates of science.

About 18 thousand students from abroad are undergoing training in the system of higher professional education.

The list of public universities and colleges is shown in Appendix 3.

Public colleges and schools of secondary vocational education have:

 81,000 students;  Faculty of 5,100, including 27 doctors of science, 322 candidates of science.

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Education

The system of public education in St. Petersburg is a full-scale and multi-faceted territorial- industrial network of 2024 educational institutions (as of 01.01.2008).

The system of public education in St. Petersburg is represented by an extensive network of pre- school, elementary, basic and secondary educational institutions, and of primary, secondary vocational and post-graduate schools for children and adults. The system is characterized by a high degree of diversity of educational services and the high level accessibility of those in a metropolis.

Educational institutions of St. Petersburg under the supervision of the St. Petersburg Educational Committee

Number of Types of educational institutions (EI) institutions 1. Pre-school educational institutions 1023 1.1.Departmental and non-state 13 2. Institutions of general education 731 2.1.Schools of general education including: 639 2.1.1. Gymnasia 70 2.1.2. Lyceums 38 2.1.3. Specialized secondary schools 135 2.2. Special (correcting) educational institutions for children with limited abilities 36 2.3. Boarding schools of general education 13 2.4. Special (correcting) boarding schools 22 2.5. Educational centers and evening (part-time) schools of general education 19 2.6. Special schools for children with deviant behavior 2 3. Orphanages 27 4. Educational institutions of complementary education for children 102 5. Educational institutions of elementary vocational education 61 6. Educational institutions of secondary vocational education 16 7. Inter-school educational complexes 18 8. Science and technology centers 19 9. Information centers 3 10. Psychological/pedagogical and medical/social centers 19 11. Special educational institutions (DC Inspection, Basic Safety Centers, 5 School catering facilities)

About 345 thousand children study in high schools and 160 thousand in the pre-school institutes of St. Petersburg. More than 72 thousand pedagogues teach at the educational institutions of St. Petersburg.

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Number of Population

Number of population (as of the end of the year, thousands people)

4624

4630

4620

4600 4610 4600

4581 4590 4571 4568 4580 4570

4560

4550

4540 2003 2004 2005 2006 2007

Workforce potential

The number of economically active population in 2007 was 2,707 million people (by Petrostat estimate).

Market Infrastructure

The city is home to:  St. Petersburg Currency Exchange;  St. Petersburg Commodity Exchange;  St. Petersburg Stock Exchange;  St. Petersburg Futures Exchange;  St. Petersburg Oils Exchange.

As of the end of 2007, the following institutions were operating in St. Petersburg:

 41 banks and lending agencies;  136 branches of financial establishments from other regions;  71 insurance companies (98,4% of them privately owned);  About 350 branches of insurance companies (100% private).

7 As of the end of 2007, by expert evaluation, there were in the city:

 about 3 million square meters of office space, including 590,000 square meters of A and B class office space (more than 170,000 sq m were commissioned in 2007);  520 thousand sq m of A and B class storage areas;  3.2 million sq m of commercial areas;

2.7 million sq m of commercial space.

Gross Regional Product

Gross regional product (billion rubles) (in current prices)

1089,7 1200

1000 811,7 666,4 800 542,4

600 409,6

400

200

0 2003 2004 2005 2006 2007 (estimate)

Branch structure of the gross regional product in St. Petersburgу in by types of economical activities Share in the Sectors of the economy total GRP, % (estimate) Wholesale and retail sale, auto transport repair works, motorcycles, common 24,8 use items, individual means Processing industries 22,3 Transport and communications 12,8 Real estate transactions 12,1

Construction 6,8 Health care, recreation and social security 5,1 Electrical power, gas and water production and distribution 3,6 State management and military security provision, mandatory social 3,5 provision Other communal, social and individual services provision 3,4 Education 3,4 Other sectors 2,2 8

Transport infrastructure

Public passenger transport

Transportation of passengers by the public passenger transport system in St. Petersburg is carried out by:

 underground (subway),  overland electric transport,  buses,  commuter trains,  taxicabs.

The annual passenger traffic in the public passenger transport system of St. Petersburg exceeds 2 billion runs (on an average, 5.5 million passenger-runs per day):  subway – 41%,  municipal buses – 15%,  overland electric transport – 23%,  private commercial buses – 15%,  commuter trains – 6%.

St. Petersburg internal passenger transportation system consists of:

 4 subway lines (their combined length is 103.7 km, there are 61 stations with 68 entrance halls and 6 interchange stations);  40 streetcar lines;  42 trolley bus lines;  340 municipal bus lines;  391 privately-run commercial bus lines;  railroad lines (about 100 stations within St. Petersburg city borders).

The transportation flow in 2007 amounted to:  25.3 billion passenger-kilometers on public overland transport (privately run lines not taken into account);  195.6 million car-kilometers in the subway system.

Two programs of municipal public transport development were adopted in St. Petersburg for the period up to 2020:

1. A set of program measures on stabilization and development of the overhead public passenger transport system of St. Petersburg up to 2015 (Government of St. Petersburg Verdict №65 as of 26.12.2002). 2. The concept of subway (underground) and other high-speed out-of-street transport in St. Petersburg for the period until 2020 (Government of St. Petersburg Verdict №20 as of 25.04.2002).

In accordance with the concept, construction of new subway stations and lines is carried out in St. Petersburg, as well as design work on a new kind of high-speed municipal public transport – the overhead express train.

9 The city government is interested in attracting private equity into the municipal public transportation system.

System of the traffic management

As of the end of 2007, in St. Petersburg were registered:  1,284.6 thousand passenger cars;  121,7 thousand trucks.

The vehicle-to-population ratio in St. Petersburg is 275 automobiles per 1 000 population. Automated traffic management systems are under implementation in St. Petersburg. Presently, there are 1 040 traffic lights installed in St. Petersburg; 183 of those are incorporated in the automated traffic management system. In order to improve the traffic management system in St. Petersburg the Government of St. Petersburg adopted resolution №432 as of 23.03.2004, “On implementation of an integrated traffic plan in St. Petersburg”.

The traffic-logistics complex (TLC) of St. Petersburg

St. Petersburg's unique geographical location on the Baltic Sea coast and its immediate proximity to the countries of the European Union and the largest ports of Europe involved in transoceanic shipping make it an ideal gateway to Russia, through which a significant part of Russian export and import cargo is shipped.

The transport complex of the city embraces sea, river, rail, motor, air and pipeline transportation. St. Petersburg is the major transport hub of Russia:  12 railway lines;  15 major highways;  a sea and a river ports;  1 airport;  5 railway stations.

The total length of the backbone transportation network of the St. Petersburg TLC (highways, thoroughfares together with railways and public waterways, and subway lines) is about 6,000 km.

The city accommodates:  two Euro-Asian transportation corridors: North – South and Transsib,  Pan-European transport corridor 9.

The St. Petersburg TLC supports both domestic inter-regional transportation links and links between Russia and Europe, Russia and Asia (the bulk of Asian exports gets to the central Russia via Europe and the Greater Port of St. Petersburg), and provides with a part of Europe - Asia and Europe - Asia - America transit cargo services.

St. Petersburg provides for:  cargo transportation of about 20% of the total amount of Russian export / import and transit;  cargo transportation of about 275 million tons by the St. Petersburg TLC per year,  about 43% of the total cargo traffic account for the export / import cargo transportation.

10 Availability of the largest Baltic Sea port and the second cargo throughput sea port of Russia, the leader in handling dry and containerized cargo, a well-developed railway and highway network, a system of air communications, the Volga – Baltic Waterway, and pipeline transportation make St. Petersburg a major transportation hub of the country.

The Greater Port of St. Petersburg

The Greater Port of St. Petersburg plays the key role in the international overseas cargo traffic of the Russian Federation; it is the leader in transshipment of dry, containerized and reefer cargo among the sea ports of Russia.

The port is connected to the sea by the Sea Channel of 27 nautical miles. The navigation is non- stop year round. The total area of the territories is over 400 ha. The port has 115 piers with total length of 18.7 km capable to accept vessels with drawing up to 11 meters. Guarantee berthing of vessels is up to 260 m in length and 40m in width. The port has extensive infrastructure available.

The Greater Port of St. Petersburg is instrumental in maintaining foreign trade relations with countries on all continents:  51% of all overseas cargo transportation imported to Russia;  13% of all exported cargo shipped out of it.

The Greater Port attracts export and import cargoes not only from the constituent entities of the Russian Federation adjacent to St. Petersburg, but also from many other regions of Russia very distant from the city – the Central, Urals, Volga, and Siberian Federal districts

Trends of the Transport and Logistic Services Market Development in St. Petersburg

N Indexes 2000 2007

Cargo transportation load, mln tons, 1 216,2 277,6 including:

Cargo turnover at the Greater Port of St. 1.1 32,1 59,6 Petersburg, mln tons

Auto transport cargo transportation load, mln 1.2 79,1 108 tons

Railway transport cargo transportation load, 1.3 93,1 110 mln tons

Air transport cargo transportation load, mln 1.4 0,019 0,01 tons

2 Passenger transportation load 326,7 385,4

11 Maritime transport passenger transportation 2.1 0,1 0,3 load, mln people

Amount of passenger transportation by auto 2.2 119* 187* transport, mln people

Amount of passenger transportation by railway 2.3 205** 192** transport, mln people.

Amount of passenger transportation by air, mln 2.4 2,6 6,1 people

3 Total floor space of storage facilities, mln sq m 4,9 6,3 * - transportation of big and medium enterprises without consideration of the in-city transportation ** - total for the Oktyabrskaya Railway, including suburb transportation

Airport

The Pulkovo airport is located 15 km south from the center of St. Petersburg:  the total area of the airport is about 1,500 hectares;  the runways are equipped for aircraft of all types;  the total area of the cargo terminal is 60,000 sq m;  two air terminals, Pulkovo-1 (domestic flights and flights to CIS countries) and Pulkovo- 2 (international flights), have capacity of 2,500 and 1,200 passengers per hour correspondingly.

The Major Investment Projects of the St. Petersburg TLC Development

It is necessary to direct the major bulk of investments on implementing high-tech infrastructure projects:  development of the Greater Port capacities of handling high-tech cargo (container, refrigerated and ro/ro cargo);  expansion of motor highways and railways near the Greater Port area;  construction of outside ports to service the growing port freight flows, in the first place, container and refrigerated cargo;  construction of high-speed motorways – the Ring Road, the Western High-Speed Diameter, a new belt road to connect the sea port area with the western section of the Ring Road and the Kola Federal highway; organization of a road network with uninterrupted traffic to complement the network of city highways;  establishing terminal and logistics centers and distribution centers;  transformation of the Pulkovo airport into a hub providing with convenient connections between international and domestic flights covering the world major economic zones;

Communications

As of 01.01.2008, communication network connections in St. Petersburg are provided to (by Petrostat data):  2.65 million of land-line telephones,  about 9 million of mobile phones.

12 By expert estimates, St. Petersburg has:  about 100 of public Internet access points, with  approx. 45,000 people using them monthly.

About 2.5 million Internet users are accounted for in the city. More than 650,000 personal computers are used in St. Petersburg households.

Industrial complex More than 700 of major and medium enterprises make the basis of the St. Petersburg industry; a part of them belong to the group of the leading enterprises of Russia. Besides that, as of the end of 2007, more than 15 thousand smaller enterprises produced industrial production in the city.

Competitive Products of the St. Petersburg Industrial Complex Enterprises Products of power engineering companies:  steam turbines;  gas turbines;  water turbines;  nuclear power station reactors;  thermo- and hydroelectric power station generators.

Products of companies.

Products of aircraft, aerospace, radio-electronic industry:  aircraft engines;  onboard radio-electronic systems for aviation (avionics) and for shipboard use;  high-speed data transfer devices;  high capacity TV and radio transmitters;  components, X-ray tubes.

Products of food industry (including beverages and tobacco):  confectionery;  baked goods;  liquor;  tobacco goods.

Shipbuilding industry

Presently, the shipbuilding industry occupies leading positions in St. Petersburg’s economy as its backbone industry which places major orders with mechanical engineering, instrumentation, electronic and other manufacturing factories of Russia. The share of shipbuilding enterprises exceeds 60% in the total product output of St. Petersburg defense enterprises; amount of export orders in the ’ production plans makes 80-90% in average. The competitive edge of St. Petersburg in shipbuilding is ensured by operation of 57 companies, including 27 manufacturing enterprises, 30 R&D organizations (40% of the total capacity of the industry and 85% of the related R&D potential of Russia). The industrial companies’ results are generally determined by the output of shipyards. Among the latter are: FSUE (about 20% of the total production capacity), OJSC the Northern (18%), OJSC Baltiysky Zavod (15%), OJSC Almaz Shipbuilding Company (ca. 11%). These enterprises build not only , submarines or gunboats, but also vessels

13 for merchant marine: huge tankers, rescue ships, cargo and passenger ferries and vessels of other classes. Production achievements of the shipyards are largely dependent on their cooperation with St. Petersburg shipbuilding design and R&D organizations. The most widely known of them are FSUE CDB ME Rubin, FSUE SPMD Bureau Malachite, FSUE CMDB Almaz, FSUE Severnoye PKB, FSUE Krylov Shipbuilding Research Institute, FSUE CSRI Elektropribor. Designers of different types of naval ships in demand by the Russian and foreign navies, they often produce high-tech commercial and civil destination designs. Pursuant to the President of the Russian Federation Decree No. 394 as of 21.03.2007, an Open Joint Stock Company Obyedinennaya Sudostroitelnaya Korporatsiya (United Shipbuilding Corporation) was established with the purpose to restructure the national shipbuilding industry.

The St. Petersburg subsidiary of this corporation will be set up as an Open Joint Stock Company Western Shipbuilding Center, bringing together FSUE Admiralteiskiye Verfi (Admiralty Shipyards), OJSC (Northern Shipyard), and FSUE Sredne-Nevsky Sudostroitelny Zavod (Mid-Neva Shipbuilding Plant).

In the result of this of the reforms undertaken:

 the basic production assets of shipbuilding companies will be renewed due to retooling and modernization, which will make it possible to increase the output of competitive products;  innovative activities at the companies of the industry will grow, and market-oriented business structures of new generation will be formed in the shipbuilding industry, with a higher R&D potential;  input of St. Petersburg shipbuilders in the growth of the Gross Regional Product will increase, due to higher growth rates of the shipbuilding products output and expansion of high-technology exports.

The list of major processing companies of St. Petersburg industrial complex is shown in Appendix 4.

Permanent investment

Permanent investment index (in % of previous year) 138,8

112,5 109,7 121,1 140 111 110,9 110,7 113,7 104,5 120 84,2 100 80 60 40 20

0 2003 2004 2005 2006 2007

St. Petersburg Russian Federation

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Foreign economic activities

 Foreign trade turnover of St. Petersburg in 2007 was USD 38.5 billion (6.6% of the RF foreign trade turnover).  St. Petersburg was trading with 180 countries (including 10 CIS countries).  Export amounted to USD 17.8 billion (5.1% of the all-Russia export).  Import amounted to USD 20.7 billion (10.3 % of the all-Russia import).  Major trade partners in 2007 were: the Netherlands, China, Germany, Italy, Finland and the USA.  More than 786 large and medium enterprises with foreign participation operate in St. Petersburg.  St. Petersburg business information centers were opened abroad: in Finland, Germany, Estonia, Armenia, etc.

St. Petersburg has cooperation agreements with:  84 foreign cities,  more than 10 foreign regions.

St. Petersburg representatives take part in the work of international regional organizations:  The Union of the Baltic Cities;  The Baltic Metropolis Network (BaltMet), a forum of the major Baltic Sea cities;  Organization of sub-regional cooperation of the Baltic Sea States;  The Baltic Sea Tourism Commission.

The city cooperates with inter-governmental organizations:  The Council of the Baltic Sea States and the Nordic Council of Ministers;  Forum of Coastal Regions of Europe,  The Baltic Development Forum,  The Baltic Sea Chambers of Commerce Association. The city is also an associate member of EUROCITIES network of major European cities, and a member of the International Association of Congress Centers.

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Foreign investment

Foreign investment in St. Petersburg economics (US $ million)

6284 7000

5255 6000

5000

4000

3000 1417 985 2000 696

1000

0 2003 2004 2005 2006 2007

Major foreign companies investing in the St. Petersburg economy

In compliance with the resolution of the St. Petersburg Government №837 as of 21.06.2005, “On the approval of the list of strategic investment projects in St. Petersburg and the list of strategic investors in St. Petersburg,” the following foreign corporations or their subsidiaries registered in St. Petersburg are recognized as strategic investors in St. Petersburg:

 Shanghai Overseas Investment Joint Stock Company (China);  Toyota Motor Corporation (Japan);  ООО General Motors Auto (US);  Nissan Motor Co., Ltd. (Japan).

Major international companies operating in St. Petersburg:

 OTIS – an elevator machinery manufacturing plant  British American Tobacco – a tobacco factory  JTI (descending of RJ Reynolds) – a tobacco factory  Coca-Cola – Coca-Cola bottlers  Lucent Technologies – a telecommunications equipment factory  Wrigley – a chewing gum factory  Gillette – a safety razor factory  Kraft Jacobs – a coffee processing factory  Scania – a bus manufacturing factory  KNAUF Gypsum St. Petersburg – a factory producing gypsum  Pepsi-Cola – Pepsi-Cola bottlers  Elcoteq – an electronic components factory  Alcan packaging – tobacco packaging manufacturers  Stockman – trade center construction

16  Bosh und Siemens – white goods factory  Toyota – a car factory  Shanghai investment company – residential area construction  General Motors – a car factory  Flextronics International Gmbh – high tech industry enterprise  Foxconn – construction of an assembling plant of high tech production including computer hardware  Suzuki - a car factory  Hyundai – a car factory

Investment attractive sectors of St. Petersburg economy:

 Manufacturing industry, including high tech electronic industry and cars and car parts manufacturing;  Research and development, innovation and promotional activities;  Transport infrastructure development;  Municipal economy system development, along with the utility system for residential and non-residential housing and sites in St. Petersburg;  Power supply facility development, along with the systems of power transfer and distribution;  Communications and telecommunications;  Medical, preventive care and other activities in the health care system;  Activities in education, upbringing, culture and social services;  Tourism, recreation and sports, including the hotel infrastructure development.

List of investment proposals:

 Construction of the Western High-Speed Diameter highway.  Construction of the Orlovsky tunnel under the Neva River in St. Petersburg in view of further development of the Volga-Baltic Waterway.  Construction of the new type of passenger transportation Overhead Express in St. Petersburg.  Construction of the Marine Passenger Terminal (MPT) on the Basil Island.  Land rising in the western part of the Basil Island.  Development of hotel infrastructure in St. Petersburg.  Construction of the multifunctional complex for residential, social, public and business purposes in the seaside areas of the south-western part of St. Petersburg («The Baltic Pearl»).  Reconstruction of the New Holland Island.  Redevelopment of the land of Moskovskaya-Tovarnaya station.  Construction of the campus for the St. Petersburg University Higher School of Management.  Construction of a commercial center at the address: 26-38 Ligovsky pr.  Development of the Pulkovo airport and adjacent territories.  Development and implementation of the program aimed at application of resource-saving technologies, in particular, in housing construction (use of alternative power sources etc.).  Construction of South-Western cogeneration plant.  Development of the Apraksin Dvor area.  Development of the golf clubs in St. Petersburg.

17 St. Petersburg legislation in the investment area:

 The Law of St. Petersburg № 282–43 of 17.06.2004 “On the procedure for transferring the real estate in the ownership of St. Petersburg for development and reconstruction.”  The Law of St. Petersburg № 568–71 as of 16.07.2001 “On the state support of investment activities in the territory of St. Petersburg.”  The Law of St. Petersburg № 185-36 as of 30.07.1998 “On the state support of investment in the residential construction in St. Petersburg.”  The Law of St. Petersburg № 81-11 as of 12.07.2002 “On the investment tax privileges” (with the amendments as of July 16, 2007)  The Law of St. Petersburg № 316-28 as of 12.07.2002 “On the investment tax credit” (with the amendments as of July 20, 2006)  Resolution of the St. Petersburg Government № 1385 of 17.08.2004 “On the state guarantees of the Government of St. Petersburg.”  The Law of St. Petersburg as of December 20, 2006 “On the participant of St. Petersburg in the state-private partnerships” (with the amendments as of April 10, 2008)  Resolution of the St. Petersburg Government № 216 of 01.03.2005 “On the St. Petersburg strategic investment projects.”  Order of the St. Petersburg Municipal Property Management Committee № 235 as of 05.07.2005 “On the Approval of the pro forma investment contracts and lease contracts of a land slot for completion of construction/reconstruction of a real estate object, lease contract for a land plot under inc conditions” (with the amendments as of October 3, 2007)  The Order of the Municipal Property Management Committee № 235-r of 05.07.2005 “On the approval of pro forma investment contracts and land lease contracts intended for completion of construction / reconstruction of real estate, and real estate lease contracts against investment.”  Order of the Municipal Property Management Committee № 16-r as of 22.1.2008 “On the approval of pro forma contracts of lease of non-residential property” (with the amendments as of March 5, 2008)

Investment ratings of St. Petersburg by the scale of the major international rating agencies

Standard&Poor’s Date of rating change Март 2007 Rating (forecast) BBВ (positive) Moody’s Investors Service Date of rating change Октябрь 2005 Rating (forecast) Baa2 (stable) Aaa.Ru FitchRatings Date of rating change Май 2008 Rating (forecast) BBВ (stable)

By the 2006-2007 results, the Expert PA Rating Agency assigned to St. Petersburg the first place in the principal nomination “For the minimal investment risk” for the third time in a row.

18 More information on St. Petersburg, the structure of executive power in the city, the city legislation can be found at the St. Petersburg Government Web site: www.gov.spb.ru

Implementation of the St. Petersburg Government policy of developing external relations and interregional cooperation of St. Petersburg is entrusted to the Committee for External Relations of St. Petersburg.

Web site of the Committee for External Relations of St. Petersburg: www.kvs.spb.ru E-mail: [email protected]

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Appendix 1 List of the major research institutions of St. Petersburg

Telephone St. Petersburg № Organization Address area code +7(812) Leningrad Optic-Mechanical Amalgamation 2 Chugunnaya ul.., St. Petersburg 1. 194044 tel.292-52-42

Federal State Unitary Enterprise - Central Scientific and Research 30 Malaya Posadskaya ul., tel.232-59-15, 2. Institute (CSRI) ELEKTROPRIBOR (State Research Center of tel.499-78-01, the Russian Federation) St. Petersburg 197046 fax 232-33-76 Federal State Unitary Enterprise Avrora Corporation-Science & 15 Karbysheva ul., St. Petersburg tel.297-18-50, 3. Production 194021 fax 324-63-61, fax 297-81-42 The State Unitary Enterprise Krylov Shipbuilding Research 4 Moskovskoye hwy, St. Petersburg tel.723-66-06, 4. Institute 196158 fax 727-96-32 Ioffe Physico-Technical Institute of the Russian Academy of 26 Politekhnicheskaya ul., Sciences tel.297-93-72, 5. fax 297-10-17 St. Petersburg 194021 Central Research Institute of Structural Materials Prometey 49 Shpalernaya ul., St. Petersburg tel.274-16-19, 6. 191015 fax 710-37-56 Federal State Unitary Enterprise Central Research Institute of 7 Promyshlennaya ul., St. Petersburg tel.786-04-01, 7. Shipbuilding Technology 198095 fax 786-04-59 The State Scientific Center of Russia – Central R&D Institute for 21 Tikhoretsky pr., St. Petersburg tel.552-01-10, 8. Robotics and Technical Cybernetics 194064 fax 556-36-92 FSUE Central Naval Design Bureau Almaz 50 Varshavskaya ul., St. Petersburg tel.373-83-00, 9. 196128 tel.369-59-25 I.P. Pavlov Institute of Physiology of the Russian Academy of 6 nab. Makarova, St. Petersburg tel.328-11-01, 10. Sciences 199034 tel.328-13-01, fax 328-05-01 V.L. Komarov Institute of Botany of the Russian Academy of 2 ul. Professora Popova, St. Petersburg tel.234-12-37, 11. Sciences 197376 fax 234-45-12 I.M. Sechenov Institute of Evolutionary Physiology and 44 M. Thorez pr., St. Petersburg tel.552-79-01, 12. Biochemistry of the Russian Academy of Sciences 124223 fax 552-30-12 The Institute of macromolecular compounds of the Russian 31 Bolshoi Pr., St. Petersburg 199004 tel.323-74-07, 13. Academy of Sciences fax 328-68-69 The Institute of Russian Literature (Pushkin House) 4 nab. Makarova, St. Petersburg tel.328-19-01, 14. 199034 fax 328-11-40 St. Petersburg Department of Steklov Institute of Mathematics 27 nab. R. Fontanki, St. Petersburg tel.312-40-58, 15. 191023 fax 310-53-77 The Innovation Technologies Center of the Saint-Petersburg State 16 Birzhevaya l., V.O., St. Petersburg tel.305-08-45, 16. University of Information Technologies, Mechanics and Optics 199034 fax 305-08-69 Network center for shared access to unique equipment of the St. 2 22nd line, V.O., St. Petersburg 199106 17. Petersburg State G.V. Plekhanov Mining Institute (Technical t\fax 328-82-07 University) Innovation & technology center for industrial and domestic waste 3 22nd line, V.O., St. Petersburg 199106 tel.331-02-50, 18. disposal of NPK Mekhanobr-tekhnika tel.331-02-48, fax 327-75-15 Innovation & technology center North-Western regional 18 Dvortsovaya nab., St. Petersburg innovation center of science-intensive technologies ARTES of 191186 t\fax 571-65-26 19. the Institute of Electric Physics and Electric Power Engineering of the Russian Academy of Sciences 4 Tikhoretsky Ave., St. Petersburg The Institute of Cytology of the RAS, State Institution t/f 247-18-29 20. 194064,

20 Appendix 2

Information on the Russian Federation Naukograd (Technical Park) development in Peterhof

In accordance with the order of the Governor of St. Petersburg V. Matvienko, development of the social and engineering structure of the Russian Federation Naukograd in Petershof in 2007-2010 is funded from the budget of St. Petersburg and the innovation structure is funded from the federal budget. In 2006-2007, the following projects have been accomplished under the frames of implementation of the Russian Federation Government Verdict №449 as of 23.07.2005: 1. in the social infrastructure development: 1.1 Design and construction documentation for construction of the multi-functional sports complex in the area of the 23rd district of Petershof; 1.2 School of fine art restorers. 2. in the engineering infrastructure development: 2.1 Design and construction documentation for construction of the Petershof video surveying system. 3. in the innovation infrastructure: 3.1 Design and exploration work were carried out and design and estimate documentation developed for construction of the innovation and engineering complex; 3.2 The Petershof Naukograd mains fiber-optic cable and the SCS of the telecommunication system were laid and the educational institutions of the area were connected to it. 3.3 Telecommunication portal “The Petershof Naukograd” was established; 3.4 The Technology Transfer Center was established.

Construction of the administrative-exhibition building of the innovation and engineering complex with the budget 185.410,5 million rubles is scheduled for the year 2008 in accordance with resolution of the Supervisory Board as of December 28, 2007 in the Direction III “Development and support of the Innovation Structure” (address: St. Petersburg, Petrodvorets, Gostilitskaya Str., plot №2 – to the south-west from the street crossing with the Pervogo Maya Str.)

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Appendix 3 List of the major higher school institutions of St. Petersburg № Higher educational institution Address Federal Agency of Education 1. St. Petersburg State Forestry Academy 5 Institutsky per., St. Petersburg tel.550-06-90, 194018 tel.550-08-96, fax 550-08-15 2. St. Petersburg State Arts-Industrial Academy 13 Solyanoi Pereulok, St. Petersburg tel.273-38-04, 191028 fax 272-84-46 3.State Polar Academy 79 Voronezhskaya ul., St. Petersburg tel.766-35-09, 192007 fax 712-84-50 4.St. Petersburg State University of service and economy 55/1 ul. Sedova, St. Petersburg 193171 t\fax 560-39-41 5.St. Petersburg State University 7/9 Universitetskaya Nab., St. tel.328-97-01, Petersburg 199034 tel.327-74-71, fax 325-87-36, fax 328-04-02, fax 328-94-85 6.St. Petersburg State Polytechnic University 29 Politekhnicheskaya Ul., St. tel.297-16-16, Petersburg 195251 fax 552-78-82, fax 552-60-80 7.St. Petersburg State Electro-Technical University (LETI) 5 Ul. Professora Popova, St. tel.234-46-51, Petersburg 197376 tel.346-44-87, fax 346-44-87 8. St. Petersburg State Marine Technical University 3 Lotsmanskaya ul., St. Petersburg tel.714-07-61, 190008 fax 713-81-09 9.Baltiisky State D.F. Ustinov Technical University (Voenmekh) 1/23 1th Krasnoarmeiskaya Ul., St. tel.316-23-94, Petersburg 198005 tel.316-23-47, fax 316-24-09 10.St. Petersburg Mining Institute (Tekhnichesky Universitet) 2 21st Liniya, Vasilievsky Island, St. tel.321-14-84, Petersburg 199026 fax 327-73-59 11.St. Petersburg State University of Information Technologies, 14 Sablinskaya ul., St. Petersburg tel.233-89-29, Mechanics and Optics 197101 tel.232-00-89, fax 232-23-07 12.St. Petersburg State Technical University (Tekhnologichesky 26 Moskovsky pr., St. Petersburg tel.710-13-56, Institute) 198013 fax 712-77-91, fax 710-62-85 13.St. Petersburg State University of Economics and Finance 21 Sadovaya ul., St. Petersburg 191023 tel.310-38-23, fax 710-56-74 14.Russian State Hertzen Pedagogical University 48 Nab. Reki Moiki, St. Petersburg tel.717-60-88, 191186 fax 312-11-95 15.St. Petersburg State Architectural-Construction University 4 2nd Krasnoarmeiskaya Ul., St. tel.316-99-65, Petersburg 198005 tel.316-32-61, fax 316-58-72 16.St. Petersburg State Aerospace Instrumentation University 67 Bolshaya Morskaya Ul., St. tel.571-15-22, Petersburg 190000 tel.315-77-78, fax 494-70-18 17.St. Petersburg State Technological University of Plant Polymers 4 Ivana Chernykh ul., St. Petersburg tel.786-57-44, 198095 fax 786-86-00 18.St. Petersburg State University of Technology and Design 18 Bolshaya Morskaya Ul., St. tel.315-75-25, Petersburg 191065 tel.571-97-55, fax 315-74-65 19.St. Petersburg State University of Engineering and Economy 27 ul. Marata, St. Petersburg 191002 tel.718-50-03, fax 712-06-07 20. St. Petersburg State University of Low Temperature and Food 9 Lomonosova ul., St. Petersburg t\fax 315-36-17 technologies 191002 21.Russian State Hydro-meteorological University 98 Malookhtinsky Pr., St. Petersburg tel.444-41-63, 195196 fax 444-60-90 22.North-Western State Technical University of Distant Learning 5 Millionnaya ul., St. Petersburg tel.710-62-62, 191065 fax 717-60-76 23.St. Petersburg State Institute of Machine-building 14 Polyustrovsky pr., St. Petersburg tel.540-01-54, 195108 fax 540-15-59 24.St. Petersburg State Institute of Trade and Economy 50 Novorossiyskaya ul., St. Petersburg tel.297-78-06, 194018 fax 297-43-42 25.Higher School of Folk Arts 2 “A” Griboyedov canal nab., St. tel.323-10-52 Petersburg 22 Federal Agency of health care and social development of the Russian Federation 26.I.P. Pavlov St. Petersburg State Medical University 6/8 Ul. Lva Tolstovo, St. Petersburg tel.234-08-21, 197089 fax 234-08-97, fax 234-01-25 27.St. Petersburg State Pediatric Medical Academy 2 Litovskaya ul., St. Petersburg tel.245-06-46, 194100 fax 245-40-85 28.St. Petersburg State I.A. Mechnikov Medical Academy 47 Piskarevsky Pr., St. Petersburg tel.543-50-14, 195067 fax 543-96-09

29.St. Petersburg State Chemical & Pharmaceutical Academy 14 professora Popova ul., St. tel.234-57-29, Petersburg 197376 fax 234-60-44 Federal Agency of communications 30.St. Petersburg State Professor Bonch-Bruyevich 61 Nab. Reki Moiki, St. Petersburg tel.315-01-18, Telecommunications University 191065 fax 315-32-27 Federal Agency of Railway Transport 31. St. Petersburg State Railway University 9 Moskovsky pr., St. Petersburg tel.310-25-21, 190031 fax 315-26-21 Ministry of Agriculture of the Russian Federation 32. St. Petersburg State Agricultural University 2 Peterburgskoe hwy, Pushkin, St. tel.470-04-22, Petersburg 189620 fax 465-05-05 33. St. Petersburg State Veterinary Academy 112 Moskovsky pr., St. Petersburg t\fax 388-36-31, 196084 fax 387-11-76 Federal Agency of air transport 34. St. Petersburg State University of Civil Aviation 38 Pilotov ul., Aviagorodok, St. tel.704-15-19, Petersburg 196210 fax 704-15-17, fax 704-15-18, fax 704-18-32 Federal Agency of culture and cinematography 35. St. Petersburg State Academy of Theater Arts 34 Mokhovaya ul., St. Petersburg tel.273-15-81, 191028 fax 272-17-89 36. Russian A.Ya. Vaganova Ballet Academy 2 ul. Zodchevo Rossi, St. Petersburg tel.312-17-02, 191011 fax 717-43-17 37. St. Petersburg State University of Culture and Arts 2/4 Dvortsovaya nab., St. Petersburg tel.314-11-21, 191065 fax 312-33-53 38. St. Petersburg State University of Cinema and Television 13 ul. Pravdy, St. Petersburg 191126 tel.315-72-85, fax 315-76-93, fax 315-01-72 St. Petersburg State N.A. Rimsky-Korsakov Conservatoire 3 Teatralnaya pl., St. Petersburg tel.312-21-29, 190000 tel.717-63-89, fax 312-91-04 Ministry of economic development and trade of the Russian Federation 40. St. Petersburg branch of the state university – Higher School of 16 ul. Soyuza Pechatnikov, St. tel.714-19-64, Economy Petersburg 190008 fax 714-30-23 Federal Customs Service 41. St. Petersburg V.B. Bobkov branch of the Russian Customs 22 ul. Sofiyskaya, St. Petersburg tel.269-03-63, Academy 192241 fax 706-13-73 Federal Agency of physical training, sports and tourism 42. St. Petersburg State P.F. Lesgaft University of Physical Culture 35 ul. Dekabristov, St. Petersburg t\fax 714-10-84 190121 Federal Agency of sea and river transport 43. State S.O. Makarov Marine Academy 15a Kosaya Liniya, St. Petersburg tel.322-19-34, 199026 fax 322-78-07 44. St. Petersburg State University of Water Communications 5/7 Dvinskaya ul., St. Petersburg tel.251-12-21, 198035 fax 251-01-14 Committee on the Sciences ad Higher Education 45. St. Petersburg State Institute of Psychology and Social Work 55 6th liniya, V.O., St. Petersburg tel.323-07-84, 199178 fax 323-07-70 Russian Academy of Arts 46. St. Petersburg State I.Ye. Repin Academic Institute of Painting, 17 Universitetskaya Nab., St. tel.323-61-89, Sculpture and Architecture Petersburg 199034 fax 323-65-48 Federal Agency of Education 47. North-Western Academy of Public Service 57 Sredny pr., V.O., St. Petersburg tel.326-01-39, 199004 fax 323-34-57 Leningrad Oblast Government 48. Leningrad State A.S. Pushkin University 10 Peterburg hwy, St. Petersburg tel.466-65-58, 196605 fax 466-49-99

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Appendix 4

List of Major Industrial Companies of St. Petersburg

Telephone Fax St. Petersburg St. Petersburg E-mail, Name Products Mailing address area code area code Web site +7(812) +7(812) 1. FSUE Admiralty Shipyards ships for the Navy 203 nab. r. Fontanki, St. Petersburg 714–88–81 571-13-71 [email protected] tankers 190121 www.admship.ru submarines 2. ОАО Baltiysky Zavod ships for merchant marine 16 Kosaya liniya, St. Petersburg, 324-93-75 327-71-90 [email protected] icebreakers 199106 www.bz.ru 3. FSUE Severnaya Verf (Northern Shipyard) ships for the Navy 6 Korabelnaya ul., St. Petersburg, 324-29-00 324-29-99 dept440@ ships for merchant marine 198096 nordsy.spb.ru www.nordsy.spb.ru 4. Branch of ОАО Power Machinery Leningrad Metal steam turbines 18 Sverdlovskaya nab., St. 326-70-01 326-70-00 [email protected] Factory in St. Petersburg gas turbine plants Petersburg, 195009 www.power-m.ru gas turbines water turbines 5. Branch of ОАО Power Machinery Electrosila in St. large-size electric machinery 139 Moskovsky pr., St. Petersburg, 388-31-72 388-18-14 [email protected] Petersburg generators for steam, gas and 196105 387-93-45 www.power-m.ru water turbines paint and varnish products of plastic

24 Telephone Fax St. Petersburg St. Petersburg E-mail, Name Products Mailing address area code area code Web site +7(812) +7(812) 6. ОАО Electropult factory low-voltage switchgears; 7 Electropultovtsev ul., St. 322-23-23 329-75-85 [email protected] factory–assembled Petersburg, 195030 www.sevcable.ru transformer substations; medium-voltage switchgears, single-end service assembled chambers; low-voltage panels, panels, power distribution panels; automated control systems, remote-control panels; EP-series automatic circuit breakers 7. ОАО Sevkabel rolled copper 40 Kozhevennaya liniya, V.O. St. 527-66-38 527-74-12 [email protected] power cables for permanent Petersburg, 199106 www.electropultel.ru laying, voltage 1 kV and higher products of plastic 8. ОАО Kirov plant tractors 47 pr. Stachek, St. Petersburg, 783-60-01 784-35-46 [email protected] metal products 198097 www.kzavod.ru agricultural machinery 9. ОАО MZ Arsenal space satellites 1-3 Komsomola ul., St. Petersburg, 542-79-00 542-71-27 arsenal@ artillery guns and launchers 195009 mzarsenal.spb.ru compressor stations mzarsenal.spb.ru 10. ОАО rolling mills equipment 1 Lenina pr., -1, St. 322-81-02 460-89-86 izhora@ special oil and gas processing Petersburg, 196651 omzglobal.com equipment www.omz.ru 11. ОАО KhK Leninets onboard radio-electronic 212 Moskovsky pr., St. Petersburg, 378–36–79 373-22-13 [email protected] equipment for aircraft 196066 www.leninetz-btel.ru homing devices for high- accuracy weapons radio-electronic devices 25 Telephone Fax St. Petersburg St. Petersburg E-mail, Name Products Mailing address area code area code Web site +7(812) +7(812) 12. ОАО Svetlana electronic components 27 Engelsa pr., St. Petersburg, 554-03-70 554-03-70 Svetlana.spb@ X-ray tubes 194156 ctinetel.ru radio-electronic devices www.svetlanajsc.ru 13. ОАО Khlebny dom bakery 18А Smolenskaya ul., St. 493-83-00 493-83-13 reception@ Petersburg, 196084 hlebnydom.ru www.hlebnydom.ru 14. ZAO British American Tobacco St. Petersburg tobacco goods 38 3-ya Konnaya Lakhta ul., 326-36-00 326-36-01 [email protected] St. Petersburg, 197229 www.batrussia.ru

15. ZAO N.K. Krupskaya Confectionery confectionery (chocolates) 21 Sotsialisticheskaya ul., St. 329-13-62 329-13-74 www.krupskaya.com Petersburg, 191119 th 16. ОАО Baltika Brewery beer 3 6 Verkhniy per., St. Petersburg, 329-91-00 329-91-48 [email protected] soft drinks 194292 www.baltika.ru mineral water 17. ООО Heineken Brewery beer 24 Telmana ul., St. Petersburg, 326-85-85 326-85-88 www.heineken.com 193230 th 18. ОАО Parnas-M sausage 4 8 Verkhniy per., St. Petersburg, 718-64-40 598-51-37 www.parnas.spb.ru meat products 194292 canned meat 19. ОАО Leningrad S.M. Kirov Mill and Bakery flour 45 Obukhovskoi Oborony pr. St. 567-11-40 567-11-45 direktor@ cereals Petersburg 193019 lkhp.mill.ru baked products www.mill.ru 20. ZAO Petro tobacco goods 71 Peterhof hwy, St. Petersburg, 332-38-00 332-40-46 www.jti.com 198206

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