Government of Saint Petersburg Committee for Industrial Policy and Innovations of Saint Petersburg

INDUSTRY AND INNOVATIONS OF SAINT PETERSBURG

2016 Industry and Innovations of St. Petersburg Contents

I. Introduction ...... 2

II. Key fi gures of the St. Petersburg industry development in 2015 ...... 3 Structure of the St. Petersburg industrial complex ...... 3 Production (volume, dynamics, structure) ...... 4 Labor and wages ...... 6 Financial results of enterprises activities ...... 8 Investments ...... 9 Innovations ...... 10 Payments into the budget system ...... 12

III. Main manufacturing industries of St. Petersburg ...... 14 Vehicles and equipment production ...... 14 Electrical, electronic and optical equipment production ...... 22 Machinery and equipment production ...... 31 Food products, including beverages, and tobacco ...... 37 Metallurgical production and production of fi nished metal products ...... 42 Chemical production ...... 45 Production of other non-metallic mineral products ...... 50 Textile and garment production ...... 51 Production of rubber and plastic products ...... 53

IV. Implementation of the industrial and innovation policy of St. Petersburg ...... 55

V. Contact information ...... 89

VI. Appendix. Support measures for the enterprises of St. Petersburg ...... 93

2016 2 Introduction INTRODUCTION

St. Petersburg is one of the largest industrial centres of Russia. By the volume of shipped goods and services of manufacturing enterprises, the city is on the second place among other regions, providing almost 8% of the total production countrywide. The industry is the foundation of the St. Petersburg economy and the major source of the budget revenues.

FACTS AND FIGURES The share of industry in key figures of the St. Petersburg economy in 2015, in %

Gross Regional Product 24% - Organizations Turnover the share of industry in the St. Petersburg GRP Revenues from the tax payments and fees into the consolidated budget of the RF

Average number of workers

*GRP data for 2014

Industrial complex functioning has a direct influence on the development of other economic sectors such as transport, construction, communications, trade, and to a great extent determines real opportunities for solving key St. Petersburg socio-economic tasks.

Industry 39%

Construction Budget Transport, communications Product supply Product

Trade

Public Health Service

Committee for Industrial Policy and Innovations of St. Petersburg Industry and Innovations of St. Petersburg 3 KEY FIGURES OF THE ST. PETERSBURG INDUSTRY DEVELOPMENT IN 2015

Structure of the St. Petersburg FACTS AND FIGURES Industrial Complex

Nearly all types of production activities are presented more than 740 in the St. Petersburg industrial complex. The basis of the St. Petersburg industry is formed by more than 740 large large and medium-sized and medium-sized enterprises, some of which are among enterprises the leading Russian companies. More than 24 thousand small enterprises, including micro enterprises, are engaged in the economic activities in the sphere of the industrial production.

The number of large and medium-sized enterprises more than 24 thousand (By economic activity) small enterprises

Manufacturing industries 691 Food products, including beverages, and tobacco 82 Textile and garment production 14 Leather, leather products and footwear production 7 Wood processing and wood products production 10 Pulp and paper industry, publishing and printing activities 49 Petroleum products production 4 Chemical production 44 Rubber and plastic products production 27 Other non-metallic mineral products production 42 Metallurgical production and production of finished metal products 73 Machinery and equipment production 108 Electrical, electronic and optical equipment production 145 Vehicles and equipment production 56 Other industries 30 Production and distribution of electrical energy, gas and water 47 Mining 7

2016 4 Key figures of the St. Petersburg Industry development in 2015

ЦИФРЫ И ФАКТЫ Production (volume, dynamics, structure)

FACTS AND FIGURES In 2015 St. Petersburg companies shipped industrial products for a total amount of 2.3 trillion rubles, including 2.1 trillion rubles accounted for the share of manufacturing industries.

Structure of the shipped volume in the St. Petersburg industry in 2015 2.3 trillion rubles - (% of total within industry)

the volume of industrial Engineering complex (28.1%) products shipped Machinery and equipment production (5.0%) to customers in 2015 Electrical, electronic and optical equipment production (8.9%)

Vehicles and equipment production (14.2%)

Food products, including beverages, and tobacco (13.3%) Metallurgical production and fi nished metal 53% - products production (6.4%) the share of high-tech and medium technology I. Manufacturing industries II. Production and distribution of electrical energy, gas and water (high-level) branches III. Mining of the manufacturing industries In the structure of the manufacturing industries (excluding petroleum products), almost 53% are high-tech and medium of St. Petersburg technology (high-level) activities.

Increase in volume of engineering products in 2011–2015, as a % to 2010

250 the Russian Federation St. Petersburg

203.1 192.0 200 180.9 11% - 175.0 163.6 157.5 138.1 154.8 the share 150 144.9 128.8

of St. Petersburg Percentage

in the total volume 100 of engineering products

in Russia 50 2011 2012 2013 2014 2015

St. Petersburg is one of the leaders in production of engineering products among other regions of Russia, providing nearly 11% of the total output of engineering products countrywide.

Committee for Industrial Policy and Innovations of St. Petersburg Industry and Innovations of St. Petersburg 5

Increase in volume of shipped products in the manufacturing industries of St. Petersburg in 2015, in % to 2014

Manufacturing industries (Excluding petroleum products - 110.2%)

Metallurgical production 131.9 and production of finished metal products

Chemical production 125.2

Pulp and paper industry, 120.6 publishing and printing activities

Machinery and equipment production 120.4

Food products, including beverages, 118.2 and tobacco

Production of rubber and plastic products 112.7

Electrical, electronic and optical 107.8 equipment production

Vehicles and equipment production 100.4

The share of St. Petersburg in the total output volume in the North-West Federal District by types of products

St. Petersburg other regions of the North-West Federal District

Gas turbines 100 Communication equipment 100 Radar equipment, radio navigation and radio remote control 100 Specialized electrical machinery and devices 99 1 Pharmaceutical products 98 2 Flour 94 6 Beer 88 12 Polymer-based paints and varnishes 87 13 Parts and accessories for vehicles and engines 82 18 Passenger cars 74 26 Prefabricated reinforced concrete structures of walls and partitions 70 30 Confectionery products 61 39 Non-alcoholic beverages 60 40 Medical products, including surgical equipment, orthopedic appliances and their components 58 42

050100 Percentage

2016 6 Key figures of the St. Petersburg Industry development in 2015 Labor and Wages

The average number of workers in the St. Petersburg industrial complex in 2015 was 341 thousand people, including those involved in the manufacturing industries – 299 thousand people. More than 40% of industrial workers are engaged in engineering complex (vehicles, various types of machinery and equipment FACTS AND FIGURES production).

Structure of the number of industry workers in St. Petersburg in 2015, in %

341 thousand people 20% are employed in the St. Petersburg industry 12% 12%

3% 12% 4%

4%

9% 4%

9% 11%

• Electrical, electronic and optical equipment production

• Machinery and equipment production

• Textile and garment production

• Pulp and paper industry, publishing and printing activities

• Chemical production

• Production of other non-metallic mineral products

• Other industries

• Food products, including beverages, and tobacco

• Metallurgical production and production of fi nished metal products

• Vehicles and equipment production

• Production and distribution of electrical energy, gas and water

Committee for Industrial Policy and Innovations of St. Petersburg Industry and Innovations of St. Petersburg 7

In 2015, the average salary per month in the industrial complex of St. Petersburg increased by almost 9% compared to 2014 and amounted to 47.6 thousand rubles. The level of wages in all major sectors in the industry of St. Petersburg is significantly higher than the national average.

The average salary per month in 2015 for the main sectors in the industry, thousand rubles FACTS AND FIGURES

31.8 Manufacturing sector overall 47.2

Vehicles and equipment production 36.1 60.8 47.6 thousand rubles - Food products, including beverages, 26.8 is the average wage and tobacco 50.3 in the industry in 2015 Electrical, electronic and 36.6 optical equipment production 49.1 +9% compared to 2014

Machinery and equipment production 32.2 46.6

Production and distribution of electrical 36.9 energy, gas and water 48.9

0 102030405060 Percentage the Russian Federation St. Petersburg

2016 8 Key figures of the St. Petersburg Industry development in 2015 Financial Results of Enterprises Activities

The total profi t earned by the St. Petersburg industrial enterprises FACTS AND FIGURES in 2015 increased by 15.2% compared to the previous year and amounted to 199.7 billion rubles.

The profit growth - on the main activities 80.4% of the St. Petersburg industry the share of profitable enterprises in 2015, in % to 2014 in the industry of St. Petersburg 170.1 180 159.6

134.2 128.5 115.8 120 105.4 Percentage 60

0 123456

1 Metallurgical production and production of finished metal products

2 Vehicles and equipment production

3 Electrical, electronic and optical equipment production

4 Production of rubber and plastic products

5 Chemical production

6 Food products, including beverages, and tobacco

The highest profi t growth rate is achieved in the metallurgical production and production of fi nished metal products (1.7 times), in vehicles and equipment production (by 1.6 times), in electrical, electronic and optical equipment production (34.2%).

Committee for Industrial Policy and Innovations of St. Petersburg Industry and Innovations of St. Petersburg 9 Investments

The volume of capital expenditures in the industry of St. Petersburg was 99.7 billion rubles in 2015, 29% of the total investment citywide. FACTS AND FIGURES Among the main industrial sectors, the highest capital expenditures growth, compared to 2014, was achieved in the production of vehicles and equipment – 116.8%; investments in pulp and paper production, publishing and printing also significantly increased (122.9%). Structure of capital expenditures 29% - in the St. Petersburg industry the share of industry in 2015, in % in the total volume of capital expenditures in St. Petersburg

1 Food products, including beverages, and tobacco 2 Metallurgical production and production of finished metal products 3 Machinery and equipment production 4 Chemical production 5 Electrical, electronic and optical equipment production 6 Vehicles and equipment production 7 Other production 8 Production and distribution of electrical energy, gas and water

About half of all investment in the industry is directed to the engineering complex and food products, including beverages, and tobacco production.

2016 10 Key figures of the St. Petersburg Industry development in 2015 Innovations

The level of innovation activity in the industry of St. Petersburg (the share of enterprises engaged in the technological innovation) is higher than the national average in the Russian Federation: FACTS AND FIGURES 14.5% and 9.7% respectively (as of 2014).

The level of innovation activity in the industry in 2014, in %

14.5 14.5% - 18 is the level of innovation 9.7 activity in the industry 12 of St. Petersburg 3HUFHQWDJH 6

0 7KH5XVVLDQ)HGHUDWLRQ 6W3HWHUVEXUJ

Innovation activity in St. Petersburg manufacturing enterprises by core activities in 2014, in %

Manufacturing industries (14.4%)

Vehicles and equipment production 23.4

Electrical, electronic and optical equipment production 23.2

Chemical production 18.4

Machinery and equipment production 16.1

Metallurgical production and production of finished metal products 13.6

Food products, including beverages, 11.8 and tobacco

0 10 20 30 Percentage

Committee for Industrial Policy and Innovations of St. Petersburg Industry and Innovations of St. Petersburg 11

Expenditure on technological innovation in the industrial complex of St. Petersburg compared to the previous year, has grown by 5.9 billion rubles and amounted to 21.1 billion rubles. In the structure of innovation products volume, produced by enterprises engaged in technological innovations, 81% is the share of engineering.

The structure of volume of innovation products made by St. Petersburg enterprises engaged in technological innovations, in 2014, in %

6% 5% 7% 4% 4%

74%

Chemical production Metallurgical production and production of fi nished metal products Food products, including beverages, and tobacco Electrical equipment, electronic and optical equipment production Other manufacturing establishments Vehicles and equipment production

The share of innovation products in the total output by the St. Petersburg engineering sectors in 2014, in % (for enterprises engaged in technological innovation)

Vehicles and equipment production 60.7%

Electrical, electronic and optical equipment 26.0% production

Machinery and equipment production 3.9%

2016 12 Key figures of the St. Petersburg Industry development in 2015 Payments into FACTS AND FIGURES the budget system

The industrial complex contribution into the formation of the budget revenues, as compared to other sectors of the economy of the city, is the largest. 39% - In 2015, from the industrial enterprises of St. Petersburg the share of the industry the Russian Federation budget system received almost 285 billion in the structure of the RF rubles of tax payments and levies (39% of the total amount budget revenues from citywide), from which about 281 billion rubles were provided St. Petersburg by the manufacturing enterprises.

Dynamics of tax payments and levies from the industry of St. Petersburg into 98.6% - the RF budget system in 2014-2015 the share 300 of the manufacturing 284.9 enterprises in the total revenues from the industry 252.9 280.8

250

244.9 Billion rubles

200

150 2014 2015

The RF budget system revenues from industry of St. Petersburg total

Including from manufacturing industries

Over 80% of tax revenues and payments from the industry are payments from enterprises, which produce food products, including beverages, and tobacco, vehicles, various types of machinery and equipment.

Committee for Industrial Policy and Innovations of St. Petersburg Industry and Innovations of St. Petersburg 13

The largest taxpayers in the manufacturing sector of St. Petersburg in 2015 (by payments into the budget of St. Petersburg)

Baltica Breweries LLC «Heineken Breweries» FACTS AND FIGURES JSC «Admiralty Shipyards» Izhora Pipe Mill Petro, LLC CJSC «BIOCAD» OJSC «Power machines» Company «British American TOBAKKO-SPB» 280.8 billion rubles - JSC «Plant «Sparkling wines» Baltic Shipyard ltd. budget revenues from Russian Standard Vodka St. Petersburg industry «KRASNY OCTIABR» ST.-PETERSBURG OJSC tax payments and levies FSUE «Goznak» in 2015 LLC «Nissan Manufacturing RUS» JSC SP «Severnaya verf» ST PETERSBURG FL OOO «Wrigley» (FACTORY) NEVSKAYA COSMETIKA OJSC Saint-Petersburg Aviation Repair Company, JSC Branch of OOO «Toyota Motor» in Saint-Petersburg CJSC «PETERSBURG PRODUCTS INTERNATIONAL ZAO» JSC «PG «Ladoga» JSC «ZRTO»

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2016 14 Main Industrial Enterprises in St. Petersburg MAIN INDUSTRIAL ENTERPRISES IN ST. PETERSBURG

Vehicles and equipment production

Brief description of the type of activity

2015 Number of large and medium-sized organizations, units 56 Shipped volume, billion rubles 326.9 Number of workers, thousand people 42.2

Main activities ●Shipbuilding ● Aircraft including spacecraft production ● Automobile construction ● Production of railway rolling stock

Shipbuilding

Leading enterprises: JSC «Admiralty Shipyards» Construction of the shipyard – the first industrial enterprise of St. Petersburg – started in 1704. During more than three centuries of activity, the company has built about 3 thousand ships and vessels of various classes and purposes. Many of them are unique and don’t have analogues in the world shipbuilding. Today JSC «Admiralty Shipyards» is the base of the shipbuilding industry, the centre of non-nuclear submarine building in Russia. It is a modern high-tech diversified enterprise with the equipment from the world leading engineering and machine tool manufacturers. The company’s production facilities, which include 2 open staples, 5 covered berths and 2 floating docks, allow to build modern vessels with deadweight up to 70 thousand tonnes.

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In addition to the main production halls (hull plating, assembling and welding, slipway) the enterprise includes: engineering and pipeline production; protective insulation products production hall; wood production; production of ship metal furniture and consumer goods; electroplating production hall; transportation and warehousing. Presently, the company production capacities are fully utilized – the shipyard is successfully implementing a number of contracts for domestic and overseas customers. Four series of submarines for foreign Navy and for the Navy of Russia are under construction. The construction of submarines of the fourth generation of Project 677 (Harmony) – Kronstadt and Sevastopol is resumed. The enterprise has a universal quality management system that meets the requirements of international standards.

JSC SP «Severnaya verf» One of the leading Russian shipyard enterprises, founded in 1912 (the original name Putilovskaya shipyard). During one century, the company has built around 600 surface ships and commercial vessels. The main activities of the company are: ● serial production of surface warships: corvette, frigate, destroyer, special purpose ships and support ships for the Russian Navy; ● repair and modernization of surface warships for the Russian Navy; ● construction, repair and modernization of surface warships for foreign Navy; ● commercial shipbuilding for the domestic and foreign markets. Today, the orders portfolio of the enterprise includes series of frigates and corvettes and ships of various purposes. The shipyard has a modern hull plating, hull processing, hull assembly and tube processing production. Has a unique in North-West Russia covered heated berth with four stocks, which allows to construct regardless of weather conditions. At the end of 2015 the laying of a new modern shipbuilding complex took place, which should be built in the plant in four stages.

Almaz Shipbuilding Company The company with a long tradition was founded in 1933 as the Leningrad Shipyard of the country’s Maritime Border Guard. Today the Almaz Shipbuilding Company specializes in construction of high-speed vessels and boats to protect maritime borders, large and small ships, multi-purpose hovercraft vessels, ships and civilian boats and yachts. During the entire history of the enterprise more than a thousand boats and ships of various purposes have been built and delivered to the customers.

2016 16 Main Industrial Enterprises in St. Petersburg

Close cooperation with leading design offices allows the company to implement in the production advanced scientific and technological developments. The technical base of the enterprise makes it possible to carry out a full shipbuilding cycle onsite until the descent of the ship to the water, to carry out all kinds of repairs and upgrades. The accumulated experience in construction of the newest samples of marine technology and modern equipment allow the company to build vessels that meet the strictest quality and reliability criteria. New promising enterprise’s activity direction is the construction of high-speed, passenger and cargo ferries.

JSC «Sredne-Nevsky shipyard» Modern high-tech enterprise which specializes in the construction of ships and vessels of various purposes, including mine countermeasures ships, missile boats (corvettes), patrol ships, working boats and passenger crafts. Today the plant is a composite shipbuilding leader in Russia and the country's only enterprise, which has mastered the construction of ships and vessels from 4 types of materials: composite materials, shipbuilding steel, aluminum and magnesium alloys and low-magnetic steel. The company has mastered modern technology of production of hulls made of composite materials by vacuum infusion. Enterprise’s own design bureau widely uses information technologies and computer-aided design and technological preparation of production in the entire cycle of order fulfillment. A pilot plant for testing hull structures manufacturing technology of polymeric materials was created on the plant, which allows to produce competitive products, that are in steady demand on the global and domestic markets. Currently, the production facilities of JSC «Sredne-Nevsky shipyard» implement innovative projects of construction of a series of fundamentally new anti-mine defense ships for the Russian Navy and offshore trawlers. The enterprise applies its best technologies in the construction of civil courts. The company is completing the construction of the Russia's only long-term carbon-fiber passenger catamaran.

Baltic Shipyard ltd. Baltic Shipyard ltd., founded in 1856, is one of the leading Russian shipyards. It specializes in the construction of surface ships of the 1st rank, ice-class vessels with nuclear and diesel-electric power unit (icebreakers, multipurpose vessels, procurers, vessels technical support offshore), floating nuclear power units, floating sea water conversion ships. The company has manufacturing facilities and modern equipment for the construction of vessels and ships of a full cycle, has two stocks and a covered berth.

Committee for Industrial Policy and Innovations of St. Petersburg Industry and Innovations of St. Petersburg 17

The largest stock in Russia 350 meters long provides the enterprise an opportunity to build vessels with deadweight up to 100 thousand tonnes. Developed metallurgical and engineering production allows the company to produce their own components for ships and vessels. The nomenclature of the plant engineering includes heat transfer equipment for nuclear power plants, launchers, boilers, and equipment for marine engineering: screws, shafts, ship fittings and much more. During the period of the enterprise operation, around 600 boats and ships were built, including the nuclear-powered icebreakers and nuclear missile cruisers, space communications ships and special purpose vessels. Today on the stocks of the Baltic Shipyard ltd. the world's largest diesel-electric icebreaker Viktor Chernomyrdin, the head of the universal nuclear icebreaker Arktika, the world's only floating nuclear power unit Akademik Lomonosov are being built.

JSC «Concern «Oceanpribor» The leading company in development and delivery of sonar weaponry for the Russian Navy and for export, and of various support systems for the sectors of the Russian economy. The integrated structure of the JSC «Concern «Oceanpribor» includes parent company, located in St. Petersburg, as well as subsidiaries (3 research institutes and 5 plants) in various regions of Russia, which possess all the technologies what ensures the creation of modern sonar technology, including research, development, manufacturing, testing and maintenance. JSC «Concern «Oceanpribor» offers for domestic and foreign markets: ● research, development, supply and maintenance of all types of sonar weapons for ships and submarines, stationary systems of underwater lighting; ● equipment of research and fishing fleet by search and examination tools, means of positioning and telemetry; ● supply of components for sonar systems: hydrophones, radiators, screens, fairings; ● sonar systems software; ● all kinds of sonar equipment testing. During its existence, the company created more than 170 types of sonar systems and stations of various purposes. A number of units of these technologies are successfully exported. Technical equipment of the enterprises of the Concern is constantly upgraded. The unique and the biggest in Europe experimental testing basin is used for the processing of hydroacoustic antennas – the main element of sonar complexes and systems, also for this purpose the Ladoga testing site, equipped with special floating laboratories, is used.

2016 18 Main Industrial Enterprises in St. Petersburg

JSC «Concern AVRORA Scientific and Production Association» It is one of the biggest developers and suppliers of systems and devices for control of maritime equipment and marine infrastructure, production, technological and energy facilities, transport objects and port facilities, automated process control systems in the sphere of extraction, processing and transportation of oil and gas. JSC «Concern AVRORA Scientific and Production Association» is a unique complex that provides research, designing, manufacturing, testing and automatic systems operational support. The main types of products manufactured by the enterprises of the Concern: uninterruptible power supply units, static converters, electric drives, special purpose equipment, small-sized panel stations, panel monitors, keyboards, trackballs, and automation systems for marine vessels. The Concern own test centre is equipped with the modern equipment and special measuring equipment of the new generation, which allows the company to carry out climatic, mechanical, ergonomic and other tests. The company has set up a service centre, which provides warrant y and post-warranty maintenance of the systems and complexes in operation. The representative offices of the Concern successfully operate in India and Vietnam.

Aircraft including spacecraft production

Leading enterprises: JSC «KLIMOV» The leading Russian developer and manufacturer of full cycle gas turbine engines. The enterprise reached world fame through the creation of power units for helicopters Mi and Ka, combat aircrafts and civil aircrafts, tanks, as well as the development and production of turboshaft engines, helicopter gearboxes of various modifi cations, aircraft gear boxes and a number of liquid rocket engines. The company is actively developing its activities in development and production of digital automatic control systems and motor control. Currently, JSC «KLIMOV» implements a large-scale investment project Petersburg Motors. In 2015, the reconstruction of the existing research and production and bench base took place; also the new technological equipment was purchased.

Committee for Industrial Policy and Innovations of St. Petersburg Industry and Innovations of St. Petersburg 19

Modernization of the enterprise helped to implement the task of organizing cooperation and to start serial production of aircraft turboshaft engine VK-2500 in the Russian Federation . JSC «KLIMOV», in accordance with the new requirements of aviation regulations, received a certificate of IAC AR Type for the new domestic turboshaft engine of its own design which will be installed on the latest domestic Mi-38 helicopter. Innovative products manufactured by JSC «KLIMOV» are a successful example of import substitution in the field of aviation engine construction.

«KRASNY OCTIABR» ST.-PETERSBURG OJSC

Specializes in manufacturing, repair and maintenance of power units for Mi and Ka helicopters, aircraft gear boxes, gas turbine engines, generation systems and turbine starters for the MiG and Su aircrafts. The department of two-wheeled motor vehicles produces four-stroke engines, two-wheel tractors Neva, motor tillers Neva and other consumer goods. The company carries out a full cycle of production – from design and prototype production to series production, has the full technological cycle of engineering production, applies the strictest quality criteria using reliable methods of control. The quality management system complies with the international standards, which allows «KRASNY OCTIABR» ST.-PETERSBURG OJSC to solve the tasks of creation of new technologies and improvement of already existing products. The company’s products are used in more than 80 countries.

OJSC «Machine building plant «Arsenal»

OJSC «Machine building plant «Arsenal» is one of the oldest Russian enterprises which dates back to the early XVIII century. Currently, the plant «Arsenal» is a modern defense-industrial enterprise, producing the newest military equipment and items of general civil engineering. The main areas of the enterprise activity: ● production of space hardware; ● p r o d u c t i o n o f a r t i l l e r y s y s t e m s a n d l a u n c h e r s f o r t h e N a v y ; ● production of civil engineering items: compressor equipment, equipment for water treatment plants, extrusion equipment for the food and chemical industries. High-tech products of machine building OJSC «Machine building plant «Arsenal» are in stable demand both in Russia and abroad.

2016 20 Main Industrial Enterprises in St. Petersburg

Automobile construction

Leading enterprises: Branch of OOO «Toyota Motor» in Saint-Petersburg

Plant establishment 2007

Output capacity 100 thousand cars per year Toyota Camry, Vehicle line Toyota RAV 4 (from august 2016)

The Branch of OOO «Toyota Motor» in Saint-Petersburg is the first plant for the production of automobiles built in the city. Plant production processes: stamping of body parts, welding, production of plastic parts, painting and assembly. The Russian company is in constant exchange of experience with Toyota factories producing automobiles around the world – from the UK to Japan. Special attention is paid to the quality control system. At the end of 2015 production capacity doubled from 50 to 100 thousand cars per year. Automobiles Toyota Camry, produced on the Toyota plant in St. Petersburg, are delivered to the markets of Russia, Kazakhstan and Belarus. In August 2016, the company will begin production of the second model – the automobile Toyota RAV 4.

LLC «Nissan Manufacturing RUS»

Plant establishment 2009

Output capacity 100 thousand cars per year Nissan Qashqai, Nissan X-Trail, Vehicle line Nissan Murano, Nissan Pathfi nder

Nissan company has been operating in Russia since 2004. The plant in St. Petersburg was opened in 2009. In 2014, the company completed the project aimed at increasing the production capacity, including the expansion of existing and construction of two new production buildings, that allowed to double the production capacity of the plant in St. Petersburg – up to 100 thousand cars per year. To d ay, t h e p r o du c t i o n f ac i l i t i e s i n c l u d e t h e b o d y s h o p a n d p a i nt shop, assembly, plastic products production, metal stamping. Nissan plant in St. Petersburg is developing its automotive components suppliers network which allowed to increase the level of production localization to 68%. In 2015, the Nissan plant in St. Petersburg produced more than 34.6 thousand cars.

Committee for Industrial Policy and Innovations of St. Petersburg Industry and Innovations of St. Petersburg 21

Hyundai Motor Manufacturing Rus, LLC

Plant establishment 2010

Output capacity 240 thousand cars per year Hyundai Solaris, Kia Rio, Vehicle line Hyundai Creta

Hyundai Motor Manufacturing Rus, LLC is the Russian plant of Hyundai Motor Company. It is one of the largest automobile plants in the country, mass production of cars began in early 2011. The plant was the first industrial enterprise among the Russian automakers operating in full production cycle mode, from panel stamping to car assembly. The company is equipped with modern high-tech equipment, that ensures a high level of automation of production processes – more than 80% in stamping shops, welding and painting shops, it is the highest among the Petersburg automakers. In close proximity to the plant buildings of the company Hyundai there is a fleet of component suppliers, which made it possible to raise the level of localization of production to 47%. In October 2015 the Russian Hyundai plant produced the millionth car.

Production of railway rolling stock

Leading enterprises: OJSC «Oktyabrsky railway electric car repair works» The company is the leading enterprise of transport machine building in St. Petersburg, it is a part of the largest in Russia transport engineering company – CJSC Transmashholding. It performs all types of repairs and modernization of passenger coaches and electric trains, repair and manufacture of the subway cars, overhaul of trams and rail buses. Customers of the company are the Russian Railways: Oktyabrskaya, Moskovskaya, Severnaya, Gorkovskaya, Iuzhno-Uralskaya, Zapadno-Sibirskaya, Privolzhskaya, Kuibyshevskaya. The plant is on the third place among the Russian rolling stock manufacturers for subways. At the moment, OJSC «Oktyabrsky railway electric car repair works» is working on a major contract on production of the new subway cars for the State Unitary Enterprise Moscow Metro and SUE St. Petersburg Metropoliten. The company is implementing an investment project «Organization of production of urban electric rail transport and subway cars», within which a fullscale manufacturing facility will be built, with an opportunity to produce modern products for the needs of urban electric transport – trams and subway cars, with a capacity of 200 units per year.

2016 22 Main Industrial Enterprises in St. Petersburg Electrical, electronic and optical equipment production

Brief description of type of activity

2015

Number of large and medium-sized organizations, units 145

Shipping volume, billion rubles 203.1

Number of workers, thousand people 67.3

Main activities ● Electric machines and equipmen t production ● Manufacturing electronic components, radio, television and communications equipmen t production ● Manufacturing of medical products; measurement, monitoring, management and testing equipment, optical devices, photographic and film equipment

Electric machines and equipment production

Leading enterprises: NIIEFA-ENERGO, LLC It is one of the leading Russian companies producing electrical equipment for railway and urban electric transport. The company was founded in 2000 on the base of one of the units of FSUE Scientific Research Institute of Electrophysical Apparatus of D.V.Efremov (NIIEFA), which is a part of the Rosatom structure. The company is equipped with the most modern equipment that allows to carry out scientific research, to design equipment and its components, to design power supply facilities, produce electrical equipment with voltage up to 35 kV and automated control systems of power supply facilities. The company carries out installation, commissioning works and maintenance. Complete delivery of high quality equipment of any complexity «turnkey» is the basic principle of NIIEFA-ENERGO, LLC.

Committee for Industrial Policy and Innovations of St. Petersburg Industry and Innovations of St. Petersburg 23

ZVEZDA-ENERGETIKA, JSC The company was established in 2001 and today it is one of t he leader s in t he mar ket of indust r ial p ower engineering of Russia and the CIS. Since 2001 the company has produced more than 2000 power modules with total electrical capacity of about 1500 MW and thermal capacity of 207 MW. The geography of JSC ZVEZDA-ENERGETIKA's activity covers almost all regions of Russia. The company collaborates with the leading domestic and foreign manufacturers of power equipment and its components. The enterprise has a complete set of required certificates for its products and licenses for all kinds of works (services) performed, it is entered in the register of suppliers of PJSC Gazprom. The company has its own manufacturing facility, a representative office in Moscow and service centres in Surgut, Ukhta and Khabarovsk. The innovative technologies, years of experience and highly professional staff ensure the enterprise’s success in the production of power stations. In March 2016 ZVEZDA-ENERGETIKA, JSC launched a new production of high-power generating units, which will enable the company to avoid purchases of import products and start the full cycle production of power plants and ship installations. JSC «NE» (JSC Novaya ERA) The modern production company JSC «NE» for more than 20 years have been specializing in the production of a wide range of power distribution devices of low and medium voltage for marine and general industrial applications. The equipment produced by the enterprise, is designed for nearly all sectors of the economy: energy, nuclear power, oil and gas, shipbuilding, mining and offshore facilities, metallurgy, utilities, construction and transport. JSC «NE» has its own European level industrial complex. Constantly updated and modernized technological and industrial base of the enterprise ensures the development and production of high quality electrical equipment. The company has considerable experience in development work. Development and introduction of new types of electrical equipment are carried out. JSC «Electrotyaga» The company is a producer of various purposes lead-acid accumulator batteries and batteries based on them. The product range includes batteries for submarines and subsea vehicles, armored vehicles and railway transport. The company produces a number of emergency backup batteries in a wide range of capacities, has the ability to develop and produce new batteries based on the customer requirements.

2016 24 Main Industrial Enterprises in St. Petersburg

The structure of the JSC «Electrotyaga» includes centre of science and technology, which can perform the full range of activities within the research and development works. The company supplies its products to both domestic and foreign consumers. In 2012 JSC «Electrotyaga» became part of the OJSC Concern «Sea Underwater Weapon – Gidropribor».

Manufacturing of electronic components, radio, television and communication equipment

Leading enterprises: JSC «ZASLON» It is the modern scientific and technological centre of development and production of high-tech products, which find application in various fields. Unique technical solutions protected by patents and inventions are used in the JSC «ZASLON» developments (previous name – OJSC STC Zavod Leninets). Currently the company is working in the following areas: ● development, production and modernization of the radar and navigation equipment; ● development, production and modernization of avionics systems for aircraft and helicopters; ● development, manufacture and repair of general-purpose ground maintenance; ● development and manufacture of marine HVAC equipment; ● development and production of blocks of digital computing systems. Each of the areas has a wide range of applications, which allows the company to compete successfully in various fields of technology. Scientific and industrial base of the enterprise is constantly developing. The modernization of the manufactured products is carried out in the shortest time according to the needs of a particular customer. JSC «SVETLANA» The company was founded more than 125 years ago and is the founder of the Russian electronics industry. JSC «SVETLANA» is a part of the holding company OJSC Russian Electronics of the State Corporation Russian Technologies. The main directions of scientific and production activities of the enterprise are design and manufacture of the active cell component base for the radio industry (serial and mass producti on). JSC «SVETLANA» today is a diversified holding in which production activities are carried out by subsidiaries, specializing in the production of certain types of products, in each of which development and production

Committee for Industrial Policy and Innovations of St. Petersburg Industry and Innovations of St. Petersburg 25 of products is carried out on a complete cycle of works «research – development – production – realization». More than 20% of production is exported. The company has registered more than 100 intellectual property units. The continuity of the innovation process ensures the required level of competitiveness. JSC «Radar mms» Its history dates back to 1950. The company is currently one of the leaders in the field of production of avionics, navigation and monitoring systems, special equipment using microwave radiation and digital technology, precision instrumentation and complex software. It develops and manufactures microelectronics and microsystems using nanotechnology, meteorological systems, unmanned aerial vehicles. The company's products comply with the requirements of the ISO standards. The company carries out a full cycle of scientific and production activity: research, development, testing, production, supply, operational support. The company conducts research and development in close cooperation with the leading scientific and educational institutions of the country. JSC «Radar mms» has its own testing facilities which fully meet the needs of the enterprise in the development, testing and release of products for special and civil purposes. JSC «SRI (Scientific Research Institute) «Vektor» Scientific Research Institute «Vector» is the oldest Russian radio engineering company, founded in 1908. It develops and manufactures equipment in the following fields of radio engineering and electronics: ● EM wave propagation physics with taking into account the impact of different natural and artificial geophysical factors; ● radio reception in communications centres, hardware integration for mobile and fixed communication points; ● monitoring of electromagnetic emission, direction finding location of its source, signal processing by fixed, mobile, sea, aerospace and portable equipment; ● acoustic monitoring; ● testing of radio electronic devices within the entire frequency range; ● application of electronic instruments for economic and technical monitoring, medical diagnostics, etc. Developed hardware can be used for the following purposes: search of distress moving objects equipped with signal emitters; statistical data collection concerning the loading of individual sections of frequency bands; communications security controls, compliance with regulations and communication protocols.

2016 26 Main Industrial Enterprises in St. Petersburg

OJSC «RIRT» (Russian Institute of Radionavigation and Time)

Leading Russian research and production centre for creation of coordinate-time support systems of unified time, radio navigation and surveying systems. The Government of the Russian Federation has designated the Institute as the basic developer of the global navigation s ystem GLONASS regarding the creation of terrestrial and orbital hardware of spacecraft location and flight path control. OJSC «RIRT»'s designs, develops and manufactures: ●electronic components and OEM-modules GLONASS / GPS / SBAS; ● navigation equipment GLONASS / GPS for maritime and inland navigation; ● professional geodetic equipment; ● personal navigation tools; ● navigation equipment GLONASS / GPS for the use in vehicles monitoring systems; ● systems and means of synchronization and universal time; ● master clock systems for enterprises, transportation systems, municipalities and territories and others. The Institute has modern technologies of design, electronic document management and tracking of developments at all stages of the product life cycle. It has a modern scientific and production base, a unique bench equipment.

JSC «Avangard»

The leading Russian company in the field of development o f i n n o v a t i v e t e c h n o l o g i e s o f p r o d u c t i o n f o r t h e r a d i o e l e c t r o n ics and microsystems products was founded in 1948. Among the innovative developments for special applications there is a wide range of sensors, transducers, angle gauges, converters for various applications, automated equipment and systems. Produced units are used in the military, aviation and space technologies. The main activity of the enterprise in the market of civil products is devices and integrated security systems, including: ● household and industrial gas analyzers and gas safety systems; ● structural safety systems; ● RFID systems based on SAW technology; ● vandal-proof all-weather emergency communication terminals «citizen – police» to ensure public safety.

Committee for Industrial Policy and Innovations of St. Petersburg Industry and Innovations of St. Petersburg 27

In 2012 and 2015 JSC «Avangard» was awarded the title of winner of the competition for the Prize of the Government of St. Petersburg for quality in the category «Industrial enterprises». JSC «Avangard» is the parent company of the St. Petersburg electronics cluster, uniting more than 160 enterprises of the city.

Morion, Inc.

One of the world leaders in the development and serial production of piezoelectronic instruments for frequency stabilization and selection: crystal oscillators, filters and resonators for telecommunication, control and navigation systems and equipment, control and measurement instruments, digital television, search and rescue satellites. Morion, Inc. is equipped with modern high-performance equipment and high-precision measurement equipment, possesses advanced world-class technologies. Thanks to the highly qualified staff, modern equipment, effective quality management system and application of advanced technological processes, the company successfully supplies products to customers not only in Russia but also abroad.

PJSC «INTELTECH»

One of the leading Russian enterprises in the sphere of research, development and production of automatic systems, soft/hardware means of communications and control. Complex use of multi-service equipment, manufactured by the enterprise, provides customers an opportunity to implement a flexible strategy of development and modernization of private networks based on the principles of convergence and to step-by-step introduce the new network and information services. The manufactured equipment uses the latest hardware and software platforms, has high reliability and safety, compact size and low power consumption. Design solutions allow the customer to use the equipment in the desired range of external conditions. The company has test facilities for all kinds of technologies developed, what provides integrated debugging of the equipment and maintenance of its operation at customer sites. Technical Policy of PJSC «INTELTECH» is the application of the cutting-edge information and communication technologies in the innovative solutions products.

2016 28 Main Industrial Enterprises in St. Petersburg

Manufacturing of medical products, measurement, control, management and test equipment; optical instruments, photo and film equipment

Leading enterprises: NIPK Electron Co.

NIPK Electron Co. has been developing and manufacturing medical diagnostic equipment since 1989, being a developer of integrated and software solutions for healthcare within various medical specializations. It supplies products to all regions of Russia and the CIS, as well as to over 30 other countries. It is a full-cycled enterprise, which performs a market demand analyses, scientific and technological developments, engineering and design work and IT-development, production (the company’s capacity allows it to produce about 2000 units of equipment per year), sales, education and maintenance. The company’s product portfolio includes the equipment for x-ray diagnostics, x-ray surgery, nuclear medicine and CT scanning. In the information support of public health NIPK Electron Co. acts as a developer and industry integrator that has all necessary resources and competencies to solve the automation tasks of various complexity – from a single health-care institution to a network of public health facilities of the entire region.

«LOMO» PLC

One of the largest Russian companies producing optical, optical-mechanical and optoelectronic devices and systems. The company has a scientific and technological potential, skilled human resources and the unique technology of production which allows the development and serial production of goods for the entire optical range (from UV to IR). At present «LOMO» PLC has a commanding lead in a number of areas connected with high-technology optical instrument manufacture: microscopy, endoscopy, thermal imaging systems, optoelectronic surveillance systems of different purposes, ground-based and space-telescopic arrays, eye-safe laser systems as well as in a number of dedicated uses. Committee for Industrial Policy and Innovations of St. Petersburg Industry and Innovations of St. Petersburg 29

PJSC «Techpribor»

The enterprise is a leading manufacturer of the fuel metering equipment. It develops, produces, provides warranty repair and technical support for the delivered equipment. PJSC «Techpribor» supplies on-board fuel metering equipment of own development and manufacture to all planes and helicopters produced in Russia and the CIS countries. At present the enterprise develops and produces equipment in five sectors: ● on-board control, fuel management and balance systems, including the systems for the aircrafts of the fifth generation; ● air-borne equipment of vibration control aero-engines and main reduction gearboxes of helicopters; ● on-board systems of control and diagnostics of the aircraft engines; ● airborne control and recording systems of aeronautical information; ●control and diagnostic equipment for the gas and oil industry. The products of PJSC «Techpribor» are certified and comply with national and international standards.

JSC «SPA (Scientific Production Association) «Impuls»

One of the main developers of automatic control systems for the Armed Forces of the Russian Federation. The enterprise has created several generations of automated control systems and information computing geographically distributed systems that provide fail-safe control of military facilities. The developments of the enterprise were used in international and national programmes and projects: «Apollo-Soyuz Test Project», «Kosmotras», «Mir», «Energia-Buran», «Yarus», «Topol-M». Main activities: ● automated control systems for geographically distributed objects of the Ministry of Defence of the Russian Federation of various functions and locating method; ● systems of guaranteed delivery of the information to the objects in the emergencies; ● information and settlement systems for the automation of the joint work of geographically distributed organizations, services and departments in collecting, transmitting, saving, processing and providing of information; ● a range of technical means to withhold the information and simulation protection system for various purposes; ● a range of technical means for data transmission to provide a stable connection through communication channels of various types (wire, satellite, radio). All activities of JSC «SPA «Impuls» are licensed and certified.

2016 30 Main Industrial Enterprises in St. Petersburg

JSC «RRI «Electronstandart» (Russian Research Institute) A head organization in standartization of the defense goods in electronic component base (ECB). Main activities of the institute include: ● qualification, certification and screening tests of ECB of the domestic and foreign production on compliance with the requirements of national and international standards; ● study of reliability and durability of ECB and radio electronic equipment (REE) in different types of external influences; ● the examination and analyses of ECB and REE failures using modern physical and technical methods and means; ● certification of the quality management system of different organizations to comply with requirements of national and international standards; ● elaboration of regulatory and technical documentation and setting up a fund of regulation documents for ECB; ● maintaining an industry standardization system as well as preparation of all necessary guidance documents; ● development and review of state military and national standards in optimization of the regulatory and technical support of the creation and use of electronic component base for acquisition of REE. The organization owns a research and testing laboratory for electronic modules, a methodology for product identification and identifying of counterfeit was developed. An automated management system was integrated which covers the full cycle of testing.

Committee for Industrial Policy and Innovations of St. Petersburg Industry and Innovations of St. Petersburg 31 Machinery and equipment production

Brief description of the type of activity

2015 Number of large and medium-sized organizations, units 108

Shipped volume, billion rubles 115.1

Number of workers, thousand people 40.4

Main activities ● Power-plant engineering ● Production of carrying and lifting equipment ● Production of home appliances ● Production of machinery and equipment for mining and construction ● Production of pipeline fittings ● Production of tractors for agriculture Power-plant engineering Leading enterprises: OJSC «Power machines» A global power-plant engineering company is among the top ten world leaders in the industry in terms of installed equipment. The history of the company is in consolidation of the leading enterprises of Russian power-plant engineering industry, such as LMZ, Electrosila, ZTL. The company boasts a wide experience and expertise in engineering-design, manufacturing and supply of equipment sets for thermal, nuclear and hydro power plants. It is one of the largest manufacturers of turbine, generator and boiler equipment for power stations of all types and sizes. The equipment made by OJSC «Power machines» has been installed in 57 countries worldwide. The company has produced over 2150 steam turbines, 2700 turbine generators, 790 hydraulic turbines, 600 hydrogenerators. At present OJSC «Power machines» is pursuing projects for nuclear, hydraulic, thermal stations of Russia as well as other countries: Europe, Latin America, India, Vietnam, China and others. To enable manufacture of the innovative equipment OJSC «Power machines» has built and commissioned a modern high-tech manufacturing facility for production of power machines equipment of 500 MW and higher, including low-speed turbine

2016 32 Main Industrial Enterprises in St. Petersburg

generator sets for nuclear power plants of 1200 MW and higher, with a potential product line expansion up to 1800 MW. The unique experience and innovative advancements of OJSC «Power machines» allow the company to produce world-class equipment and generate progressive technical solutions considering the individual requirements of customers. The current key tasks of OJSC «Power machines» are technical re-equipment and development of the production base, acquisition of new technologies, introduction of advanced business and management processes, development and improvement of new competitive goods, their further market promotion.

JSC «REP Holding» A leading Russian power holding that carries out engineering, manufacturing and package supplying of power-generating and electrical equipment for gas, oil, metallurgical and chemical industry, for power and integrated power grid. The holding consists of industrial, science and technology, service organizations among which are such major St. Petersburg industrial enterprises as CJSC Nevsky Zavod and JSC Zavod Electropult, as well as a project organization CJSC Institute of Power and Electrical Engineering. Enterprises that form the holding have full production cycle, they develop, manufacture and introduce advanced energy efficient turbo-compressor machinery, innovative systems of control, distribution and conversion of electric power, provide engineering services, carry out design works for construction, reconstruction and re-equipment of complex industrial facilities. Due to the recent upgrade and the transfer of western technologies today the holding is a key Russian manufacturer of gas - pumping and gas tur bine equipment for major infrastr uc ture projects of the country, the leader in the segment of industrial gas turbines production and the only one in Russia manufacturer of stationary gas turbine units rated at 32 MW. The high quality of goods and services of JSC «REP Holding» is confirmed by a united integrated quality and environmental management system. Delivering the innovative products to the energy facilities, metallurgical plants and fuel and energy enterprises as well as applied in reconstruction of objects and new construction of main gas pipelines systems, JSC «REP Holding» is being an essential production unit in the strategic modernization programme in the Russian petroleum and energy sector.

PJSC «ZVEZDA» The largest Russia’s manufacturer of multipurpose lightweight compact high speed diesel engines and reduction gears. The engines of PJSC «ZVEZDA» are widely used in military and civil shipbuilding: on high-speed ships and boats

Committee for Industrial Policy and Innovations of St. Petersburg Industry and Innovations of St. Petersburg 33 of the Russian Navy and the Border Guard Service of the Federal Security Service of Russia, on speed passenger hydrofoils and other projects. Since 2002 the enterprise has been the major Russian design engineer and manufacturer of heavy reverse reduction gears for main power units of the Russian Navy. At present PJSC «ZVEZDA» provides the most modern series of escort vessels, intelligence ships, landing crafts and other ships of the Russian Navy under construction with engines and gears. Under the Federal Target Programme «National Technology Base» the enterprise has developed a product line of 400-1710 KW diesel engines for various in dust r i e s – ship buil ding, di st r ibute d g ene r at i o n, r ail way t r an sport production and construction engineering. The most advanced engineering solutions of international diesel production have b een considered in the new generation engines family, which ensures their reliability, efficiency and high ecological performance. PJSC «ZVEZDA» has been implementing an investment project on modernization of reduction gear production and creation of the unique Russian Centre for Reduction Gear Production to provide the defence industry and civil shipbuilding of the Russian Federation with a wide range of gear units with transmitted power of up to 50000 hp.

Production of carrying and lifting equipment

Leading enterprise: Sankt-Peterburgskiy branch of OOO «OTIS Lift» The elevators manufactured at the factory are intended for both residential buildings and commercial constructions. The workshops of the factory are equipped with the state-of-the-art precision machinery. The enterprise has six production lines and a testing tower for the operational testing of the elevators. In 2015 the factory started production of a new production line of machine-roomless elevators. The GeN2 Premier MRL System is certified in accordance with regulatory standards of energy efficiency ISO 25745-2, introduced in 2015. The enterprise has implemented the international system of internal quality management which includes efficient management, ongoing audit of the production process and goods, regular feedback from customers. About 20% of the products are exported to the countries of the CIS and to Mongolia. In 2016 the enterprise plans to start exporting its elevators into Europe.

2016 34 Main Industrial Enterprises in St. Petersburg

Production of home appliances

Leading enterprise: OOO «BSH Bytowije Pribory»

The Russian subsidiary manufacturing enterprise of BSH Hausgeraete GmbH concern is specializing in production of home appliances under the trademarks of Bosch and Siemens. A production and logistics complex was built in the company’s own site located in the «Neudorf-Strelna» SEZ. It consists of two fully integrated manufacturers: production of refrigerators with the capacity of 500 thousand units per year and washing machines with the capacity of 450 thousand units per year. The enterprise produces freestanding refrigerators with bottom freezers and narrow washing machines with drum capacity of up to 7 kg under the trademarks of Bosch and Siemens which are in a steady consumers demand. The home appliances manufactured by the enterprise are delivered to consumers all over Russia, as well as to some European and Asian countries.

Production of machinery and equipment for mining and construction

Leading enterprise: IZ-KARTEX named after P.G.Korobkov Ltd.

The largest manufacturer and supplier of electric mining shovels in Russia and the CIS. The enterprise is a part of OJSC United Heavy Machinery Plants (OMZ) The main activities of IZ-KARTEX named after P.G.Korobkov Ltd. include: ● engineering, manufacturing, supply and service of electric caterpillar mining shovels;

Committee for Industrial Policy and Innovations of St. Petersburg Industry and Innovations of St. Petersburg 35

● engineering, manufacturing, supply and service of rotary roller-bit drilling rigs; ● manufacturing and supply of spare parts and component parts for mining equipment; ● manufacturing of metalwork and the equipment for construction projects, power engineering, metallurgy, mining and general engineering. The engineering of new shovels and upgrading of the standard mining machinery is being performed using a 3-D computer designing. The combination of advanced computer technologies and high-strength materials and steel in the production maintain the high reliability and durability of all components and mining machinery in whole.

Production of pipeline fittings

Leading enterprise: CJSC «Zavod «Znamya Truda»

The enterprise is one of the largest manufacturers of the piping valves in Russia and belongs to the defence-industrial department of the «Ego-Holding» holding company. CJSC «Zavod «Znamya Truda» has a significant experience in development and implementation of complex technical projects. The enterprise is continuously engaged with creating of new unique designs of fittings to meet the specific requirements of the customers, first of all, of nuclear-power engineering, as well as standard fittings for thermal power engineering, chemical, petroleum and gas industries, providing safety of operation and environmental security. New products developed by the enterprise are tested in the in-house laboratories, equipped with required test bench installations. Pipeline fittings manufactured by the enterprise are in demand in almost all branches of industry and supplied to different regions of Russia, the CIS and foreign countries. The plant supplies the most up-to-date nuclear and thermal power engineering facilities, which is an evidence of a high status of the enterprise among the leading pipeline fittings manufacturers.

2016 36 Main Industrial Enterprises in St. Petersburg

Production of tractors for agriculture

Leading enterprise: JSC Peterburgsky Traktorny Zavod One of the largest producers of agricultural machinery in Russia, the only one in the country manufacturer of powerful ‘energy-saturated’ agricultural wheel-tractors under the brand ‘Kirovets’. The plant is a subsidiary of OJSC Kirovsky Zavod. Main activities of JSC Peterburgsky Traktorny Zavod are: design, development, production, assembling and maintenance of agricultural tractors, road and forestry machinery as well as of their detachable equipment. The plant performs mass production of 11 modifications of agricultural tractors ‘Kirovets’ of the series K-744P and K-9000 with engines of 300-450 hp and more than 20 types of road machinery and special vehicles manufactured on the base of industrial tractors ‘Kirovets’. JSC Peterburgsky Traktorny Zavod is a full cycle production company. The enterprise is equipped with high-technology machinery, automated flow lines, mechanical appliances, belt systems. Capacity of the plant allows the production of about 1500 tractors annually. All manufactured machinery is provided with a warranty service and after-sale support through a broad network of representative offices and dealer centres in Russia ɉɟɬɟɪɛɭɪɝɫɤɢɣ and the CIS. тракторный завод The on-site production engineering consultancy and development department allows the enterprise to create new models of equipment, test them, as well as to produce some small batch devices. The products of the enterprise are supplied both to the home m a r k e t a n d a r e e x p o r t e d t o t h e c o u n t r i e s o f t h e C I S , t o t h e c o u ntries of Eastern and Western Europe.

Committee for Industrial Policy and Innovations of St. Petersburg Industry and Innovations of St. Petersburg 37 Food products, including beverages, and tobacco

Brief description of the type of activity

2015

Number of large and medium-sized organizations, units 82

Shipped volume, billion rubles 305.6

Number of workers, thousand people 29.3

Main activities ● Production of bakery and confectionery goods ● Dairy production ● Flour-and-cereals industry ● Beverage industry

Production of bakery and confectionery goods

Leading enterprises: Fazer LLC The largest manufacturer of bakery and confectionery goods, one of the most successful enterprises in the Russian baking industry. The production of bakery goods is performed with the brands of «Khlebny dom» (House of bread) and Fazer. The company has got three production sites in St. Petersburg: «Smolenskaya», «Murinskaya», «Neva». The enterprise is equipped with ultra-modern production lines and unique processing equipment both for the production of mass consumer bread and manufacturing of bread in small batches. The company is constantly optimizing its product portfolio to meet the consumers demand. In 2015 according to the results of a competition that took place in St. Petersburg as a part of the International Forum «Nutrition and Lifestyle as a Pledge of Human Health», Fazer LLC won the first prize (gold medal) for its bread «Normandsky» and the third prize (bronze medal) for the bread «Polezny ovyos» (Healthy oats).

2016 38 Main Industrial Enterprises in St. Petersburg

OJSC KARAVAY At the present time OJSC KARAVAY is one of the leading manufacturers of bakery and confectionery goods in Russia. The company has got four production sites in St. Petersburg: OJSC Kushelevsky Khlebozavod, OJSC Zarya, CJSC Firm Nevskaya Sushka and OJSC Karavay. 200 products are manufactured under the trademark Karavay, including traditional types of bread and long loaves, functional bakery products with healthy additives, buns, confectionery goods, ring-shaped rolls and crackers, rusks and frozen goods. OJSC KARAVAY is the main manufacturer of so called social bread (some fixed price grades), active member of the bakery community to promote healthy rye bread. Production sites of the KARAVAY concern were certified for the quality management on conformity to the international standard ISO 22000:2005.

«The group of companies «Darnitsa» LLC «The group of companies «Darnitsa» LLC – is a modern Russian production holding company, one of the major bakery manufacturers in St. Petersburg. The holding consists of three bread-baking plants: a branch of LLC GC Darnitsa in the town of Pushkin, CJSC Okhtinskoe, OJSC Sestroretskiy Khlebozavod. Each of production sites has its specifics regarding the range of products, applied equipment and technologies, as well as its own history, wealth of experience and traditions, accumulated over several decades. GC Darnitsa produces bakery, buns, confectionery and ring-shaped rolls under the trademarks of «Darnitsa» and «Aladushkin». The company is focused in the preservation of traditions and the development of the bread baking technologies in Russia. The use of modern technical solutions, ensuring the highest safety standards of production and process quality control, regular work on improving the flavor and health proper ties of goods – are the main priorities of the enterprise. The plants belonging to the GC Darnitsa aim at fostering continuous development – new production lines are launched, the output volume is increased, new high-quality types of bakery goods for different purposes are developed.

Committee for Industrial Policy and Innovations of St. Petersburg Industry and Innovations of St. Petersburg 39

Dairy production

Leading enterprises:

Group of Companies Danone in Russia Branch Dairy plant PETMOL

Dairy plant Petmol is one of largest milk processors in Russia. Since 2012 it has been a part of the Group of companies Danone in Russia. The plant boasts the up-to-date processing, production and packaging equipment which allows to process up to a thousand tonnes of milk per day. The specialization of the plant is a wide range of whole milk products. Among its goods are such popular brands as «Prostokvashino», Danone, «Petmol», «Smeshariki», «Biobalance» and others. Petmol is the largest Russia’s manufacturer of dairy products for infants under the brand of «Tyoma». The products of the plant are made from the high quality raw materials of the best dairy farms in Leningrad region, distributed to all regions of Russia, as well as to the CIS countries. The quality management and food safety management systems have been developed and implemented.

JSC Saint-Petersburg dairy Plant «Piskarevsky»

The plant is one of the leaders in manufacturing dairy and cottage cheese products in St. Petersburg. The latest technologies and modern equipment allow to produce dairy and cottage cheese products of high quality and irreproachable taste. The production spectrum numbers more than 60 products. All of them are made only from fresh cow milk, with no preservatives, have a thorough sanitary examination. Main volume of milk is delivered to the plant from the farms of Leningrad region. The plant produces and sells milk and dairy products on the market of St. Petersburg and the North-West Federal Region. The cultured milk products are represented with a wide range of goods: cream, kefir, sour cream, fermented baked milk, yogurts. The company puts an emphasis on innovations and long-term development.

2016 40 Main Industrial Enterprises in St. Petersburg

Flour-and-cereals industry

Leading enterprises: JSC «Leningrad flour and feed milling plant named after S.M.Kirov» The plant specializes in two main areas of activity: flour and cereals milling (the «Kirov’s Mill» branch) and animal feed milling (the «Feed Mill named after Kirov» branch). The Kirov’s Mill (Melnitsa Kirova) is a modern state-of-the-art milling plant which can process up to 1650 tonnes of grain per day. It produces the flour of high quality being the leading flour milling enterprise of the Russian Federation. Main production range includes different types of wheat bread flour, rye bread flour, as well as bran, cereal and grain. Special types of flour are also manufactured to have ideally balanced characteristics for making certain products, including individual customer orders of bakers, confectioners, pasta and frozen food makers. The product range of the enterprise meets high standards of the Russian and international markets, which is confirmed by the ISO 22000:2005 certificate. The Kirov’s Mill supplies goods to 24 countries of the Mid East, Southeast Asia and Africa. Feed Mill named after Kirov is one of the largest combined feed manufacturers in Russia. It produces ready-made feeds (mixed and unmixed) for the livestock and poultry. The mill makes over 248 thousand tonnes of feeds per annum being the selling leader of fodder in the North-West Federal District. OJSC LFFMP named after S.M.Kirov was honoured by the Government of St. Petersburg with the quality award in 2014 and 2015 «For the quality of goods, works and services».

JSC «St. Petersburg Milling Plant» The plant performs commercial milling and produces wheat and cereals flour of different grades and types, flour mixes, semolina, various flakes and porridges. It is one of the major manufacturers of the ALADUSHKIN Group holding company. Wheat and grain flour under the trademarks of «Predportovaya», «Aladushkin», «Kudesnitsa» is in high demand with consumers, baking mixes and professional market flour ensure the highest quality of bakery products manufactured by the partner enterprises. Full reconstruction of the mill shop took place in 2014, which doubled production capacity of oats and grain cereals. The new equipment of the mill shop allows production of goods with innovative quality and characteristics – oats cereals with retained natural bran and grain germ.

Committee for Industrial Policy and Innovations of St. Petersburg Industry and Innovations of St. Petersburg 41

Cereals and flakes under the trademark of «Yasno solnyshko» (Bright sun) produced by the enterprise, are well known not only in all Russian regions but in more than 15 countries of the CIS and overseas. High quality of the production is constantly confirmed by international certificates as well the victories in national product quality competitions. The company’s goal is to restore the traditions, to revert the culture of production and consumption of natural high quality products, without any artificial additives, unhealthy food colorants or preservatives.

Beverage industry

Leading enterprises: Baltika Breweries Baltica Breweries is a part of the brewing company the Carlsberg Group, the leader of the Russian brewing market since 1996. The state-of-the-art equipment and advanced technologies allow the production of the highest quality goods. The company owns 8 breweries and t wo malt-houses in Russia. Baltika Breweries produces more than 40 brands of beer and 10 brands of other beverages. The total production capacity of all the plants is about 40 billion hl per annum. For many years the Baltica company has been the major exporter of Russian beer and the supplier to over 75 countries. The share of company’s products is over 48% of all Russian export of beer.

LLC «Heineken Breweries» One of the largest breweries in the world, the Heineken company has been on the Russian market since 2002. 30 brands are currently produced at the company’s enterprises in Russia. Among them are such trademarks as: Heineken, Amstel, Kruovice, Zlaty Bazant, Tri Medvedya (Three bears), Okhota (Hunting), Edelweiss, Guinness, Bochkaryov and others. There is a subsidiary of the company in St. Petersburg – The Heineken Brewery. The capacity of the brewery is over 5 billion hl of beer per annum. One of the basic ideas of the company is preservation of the brewing traditions. High quality requirements are applied to the entire production and sales process. The quality management systems have been developed, implemented and maintained in the company according to the national and international standards.

2016 42 Main Industrial Enterprises in St. Petersburg Metallurgical production and production of finished metal products

Brief description of the type of activity

2015

Number of large and medium-sized organizations, units 73

Shipped volume, billion rubles 146.7

Number of workers, thousand people 29.8

Main activities ●Metallurgy

ɂɀɈɊɋɄɂɃ ● Production of finished metal products ɌɊɍȻɇɕɃ ɁȺȼɈȾ Metallurgy

Leading enterprises:

Izhora Pipe Mill A leading Russian manufacturer of large diameter pipes for the oil and gas industries. The enterprise is a part of PJSC Severstal. The major product of Izhora Pipe Mill are straight seam electric welded pipes with external and internal coatings. The enterprise can produce pipes with an external diameter between 610 and 1420 mm, the thickness of pipe wall up to 40 mm and the length of up to 18.3 m, providing an opportunity to increase the pipelines construction and reduce the number of welded connections by 1.5 times. The plant supplies pipes for the major Russian and international gas and oil pipelines. The key customers of the enterprise are PJSC Gasprom, OJSC AK Transneft and other oil and gas companies. In 2015 the plant supplied to its consumers the total of about 550 thousand tonnes of large diameter pipes. One the biggest competitive advantages of the enterprise is a continuous production process.

Committee for Industrial Policy and Innovations of St. Petersburg Industry and Innovations of St. Petersburg 43

Petrostal Metallurgical Plant The plant has a history of more than 200 years and currently is a subsidiary of the oldest metallurgical and machinery plants in Russia – JSC Kirovsky Zavod. Petrostal Metallurgical Plant is a metallurgical enterprise with a full cycle that supplies flat rolled steel for Russian and international machinery producers, construction and transport. Among its customers are the largest plants in Russia: AvtoVAZ, KAMAZ, GAZ and others. Almost the half of the plant’s products are exported. The in-house equipment, repair and laboratory facilities provid es the enterprise with the possibility to manufacture and supply any batches of rolled section steel, including low-tonnage ones. Improvement of the production process, upgrading and expansion of the equipment and continuous professional development of workers and specialists allow the enterprise to meet all the quality requirements of national and international consumers. The quality management system, laboratory facilities and main products are certified by the leading Russian and foreign certification centres on compliance with international requirements.

CJSC «INTERCOS-IV» The plant belongs to the Group of companies OJSC Magnitogorsk Iron and Steel Works. The main activities of CJSC «INTERCOS-IV» include production, upgrade and repair of die tooling, delivery of molded parts, blanks, metal plates, tapes and bands for the automakers and manufacturers of home appliances, delivery of rolled metal products manufactured by OJSC Magnitogorsk Iron and Steel Works, tool production. The molded parts equipment of CJSC «INTERCOS-IV» is able to manufacture a wide range of small and mid-sized components with various methods of forging: from production of small pieces (fixing units for the lowered ceilings, furniture and packing joint fasteners, mufflers) to car body parts. The test laboratory of the enterprise is equipped with modern machinery and up-to-date measuring facilities, which provides the opportunity to carry out the testing of the advanced technical level. The customers of CJSC «INTERCOS-IV» include almost main carmakers of Russia, as well as such world leaders of automotive industry as Volkswagen, Ford, Renault, Nissan, Toyota. The company also supplies its products to the major home appliances manufacturers, including Rolsen, Electrolux, B/S/H. The quality management system, laboratory facilities and main products of the company are certified by the leading Russian and foreign certification centres on compliance with international requirements.

2016 44 Main Industrial Enterprises in St. Petersburg

Production of finished metal products

Leading enterprise: Izhorskiye Zavody JSC One of the oldest industrial enterprises in Russia, established in 1722. Today it is the largest machine manufacturing enterprise that is engaged in engineering and production of the equipment for nuclear power, oil and gas industry, petrochemical industry. One of the strategic activities of the enterprise is engineering and production of the equipment for nuclear power engineering. More than sixty sets of reactor equipment for VVER-440 and VVER-1000 have been in operation at the nuclear power stations in Russia, Ukraine, Bulgaria, Slovakia, Finland, China, India and others. The wealth of experience and well-proven technologies o f v e s s e l s a n d p i p e l i n e s f o r n u c l e a r p o w e r e n g i n e e r i n g (t h a t h a ve to work in high-pressures, low temperatures, with cyclic, exter nal and thermal loads) are being used by the plant when designing and manufacturing of the miscellaneous equipment and overall weight and dimension characteristics for the chemical and gas processing. Izhorskiye Zavody's main activities include engineering and manufacture of oil processing equipment: hydrocracking reactors, hydraulic cleaning, hydroaromatisation, etc. with diameter of up to 6 m, length of up to 80 m and weight of up to 2 thousand tonnes. Among the largest customers of Izhorskiye Zavody JSC are PJSC Gazprom, OJSC NK Rosneft, OJSC NK Lukoil. The quality management system that complies with the requirements of the international standard ISO 9001:2008 was implemented at the enterprise.

Committee for Industrial Policy and Innovations of St. Petersburg Industry and Innovations of St. Petersburg 45 Chemical production

Brief description of the type of activity

2015 Number of large and medium-sized organizations, units 44

Shipped volume, billion rubles 64.2

Number of workers, thousand people 14.5

Main activities ● Manufacturing of pharmaceutical goods ● Production of cosmetics and detergents ● Production of paints and vanishes

Manufacturing of pharmaceutical goods

Leading enterprises: «Scientific Technological Pharmaceutical Firm «POLYSAN» Ltd One of the largest Russian drug manufacturers with strong research facilities and in-house manufacture of products. It produces four drugs: Cyclopheron (antiviral, immunocorrecting, antiflammatory preparation), Reamberin (endogenous and exogenous intoxication of various etiology), Cytoflavin (treatment of brain disorders, restoration of brain circulation) and Remaxol (hepatoprotective activity). The enterprise constantly carries out some clinical studies and pure bio-medical researches within its own scientific inter ests. Among the most outstanding achievements of the company are two awards from the government of the RF for development of the medicines Cyclopheron (2004) and Cytoflavin (2010). The company is an active participant of the Federal Target Programme «Development of Pharmaceutical and Medical Industry prior to 2020 and further perspective» in import substitution, increase of export capacity, development of Russian pharmaceutical market. In 2015 «Scientific Technological Pharmaceutical Firm «POLYSAN» Ltd, was among ten fastest growing technology companies according to the Fourth national rating TechUspekh-2015. Preparations manufactured by POLYSAN are supplied to all regions of Russia, as well as to the countries of the CIS, Southeast Asia, Latin America and Mongolia.

2016 46 Main Industrial Enterprises in St. Petersburg

JSC «WERTEKS» This pharmaceutical company has been successful on the market for more than 10 years, manufacturing drug products, cosmetics, biologically active dietary supplements and medical products. The product range includes over 200 products, 140 of which are pharmaceuticals, most of them are on the list of vital and most important drugs. The company produces medicinal preparations that are used in cardiology, neurology, psychiatry, allergology, dermatology, gynaecology, as well as up-to-date pluripotential antibacterial medical products, nonsteroidal anti-inflammatory drugs, etc. In December 2015 JSC «WERTEKS» was awarded with honorary diploma in the category «Import Substitution» of the industrial competition «Made in St. Petersburg» under the auspices of the Government of St. Petersburg. The company’s production capacity allows it to have a full cycle product processing from the design to the packaging of goods manufactured in different presentations. In 2015 at the special economic zone of St.Petersburg «Novoorlovskoye» the company completed the construction of an innovative industrial centre that complies with the latest international and national standards of manufacturing, quality control and safe storage of pharmaceutical products. The rated capacity of the plant is over 100 million units per year.

GEROPHARM, Ltd Group of companies GEROPHARM is among the leading Russian pharmaceutical manufacturers. The company develops and produces Russian innovative medicines for neurology, ophthalmology and endocrinology. The product portfolio of GEROPHARM, Ltd includes over 10 original drugs, including Cortexin, Recognan (neuroprotector), Retinalamin (ophtalmological medicine), Rinsulin (genetically engineered human insulins), Levetinol (treatment of various forms of epilepsy), Memantinol (treatment of presenile dementia). The company invests in technological development and creation of modern pharmaceutical infrastructure. In 2014 it opened new biotech laboratory units in GEROPHARM, Ltd research and development centre located at the Neudorf, a special economic zone of St. Petersburg, to promote the development of biological products. The company is currently developing special drugs for treatment of diabetes, nootropic, ophthalmological and urological medicines – in total more than 15 medical products.

Committee for Industrial Policy and Innovations of St. Petersburg Industry and Innovations of St. Petersburg 47

GEROPHARM, Ltd is a participant of the Federal Target Programme «Development of Pharmaceutical and Medical Industry prior to 2020 and further perspective».

JSC «MEDPOLYMER» JSC «MEDPOLYMER» is one of the leaders on the national market of infusion solutions and health care products. It is the largest manufacturer of medical infusions in the North-West of Russia. The present production capacity is over 36 billion pcs per annum. The enterprises manufactures such infusions as sodium chloride, glucose, Ringer’s solution, Ringer acetate solution, Reoplyglucin, Hemostabil – an antishock infusion solution, Volemcor – a HES plasma expander. The medical products manufactured by JSC «MEDPOLYMER» are used in transfusion medicine, anesthesiology, surgery, urology and gastroenterology. The enterprise carries out scientific R&D activities to develop new chemical and pharmaceutical technologies, as well as PN solutions that contain the most advanced types of amino acids and colloidal solutions based on HES-130. The innovative technologies of health industry are used in the process of manufacturing. JSC «MEDPOLYMER» is a socially significant company as the polymer delivery of infusion solutions is in high demand in all national health institutions.

JSC «Pharmproject» JSC «Pharmproject» is a pharmaceutical company, specializing in solid and semi-solid dosage forms of medical products. The enterprise produces medicines included into the list of vital and most important drugs, such as Pancreatine (digestive enzyme), Pyracetame (nootropic drug), Pentoxifylline (vasodilating agent), Rybavirinum (antiviral agent), Vinpocetine (cerebral vasodilating agent), Fluconazole (antifungal medication), Glimepiride (antihyperglycemic agent). Since 2012 the company has become a manufacturer of semi-solid medical products (suppositories): Chlorhexedine (an anticeptic), Paracetamol (an analgetic, antipyretic agent), Ketoprophenum (nonsteroidal anti-inflammatory drug). Altogether there are more than 20 drugs in the product portfolio of the company.

JSC «Pharmaceutical Factory of Saint Petersburg» The history of the factory traces back to 1935. Today the company sees its strategic development in the sphere of manufacturing of drugs for treatment of asthma and chronic obstructive pulmonary disorders.

2016 48 Main Industrial Enterprises in St. Petersburg

The enterprise collaborates with large national and international healthcare and pharmaceutical companies and R&D centres. As a result of such cooperation advanced medical products and innovative pharmaceutical technologies are being developed. At present the Pharmaceutical Factory of St.Petersburg is a Russian centre of advanced competencies in the sphere of the respiratory drug delivery. The experts of the factory have developed the original one-of-a-kind respiratory delivery device – inhaler Lunghaler that brings ultra low doses of the active substance into a blister tape. The clinical studies were completed in 2015 and metered dose inhalers «Fenipra», «Fenisper», «Ipraspir» and «Kromospir» will be put on the market next year. As a participant of the Federal Target Programme «Development of Pharmaceutical and Medical Industry prior to 2020 and further perspective» the factory elaborates a technology platform to develop and manufacture national vital drugs for respiratory diseases. The range of products manufactured by the enterprise includes more than 100 items. They are high-performance modern drugs (aerosols, liquid, solid and semi-solid dosage forms), as well as a wide range of beauty products.

CJSC «BIOCAD» Biotechnology company CJSC «BIOCAD» is a Russian innovative company that has integrated a world class R&D centre, ultra modern pharmaceutical and biotechnological production with preclinical and international clinical drug trials which meet all modern standards. CJSC «BIOCAD» is a drug developer and manufacturer of a full cycle – from a molecule search to mass production and marketing support. The company’s activities are focused on the development of original and generic drugs in such therapeutic areas as urology, gynaecology, dermatoneurology, oncology, hematology, autoimmune and infectious diseases. The enterprise develops drugs in its own R&D centres, one of which is located at the «Neudorf» platform in the Special economic zone of St. Petersburg. In 2015 the company set up a new R&D centre for the development of new substances to treat oncological diseases and hepatitis C. It consists of eight modern laboratories equipped in compliance with all international standards of chemical pharmaceutics, including the innovative facilities the most portion of which is one-of-a-kind not only in Russia but in the entire Eastern Europe. Production process of the company is carried out in compliance with European management level and good manufacturing practice for the pharmaceutical enterprises

Committee for Industrial Policy and Innovations of St. Petersburg Industry and Innovations of St. Petersburg 49

(GMP) and meets the standards of the International Council for Harmonisation of Technical Requirements for Pharmaceuticals for Human Use (ICH). In 2015 CJSC «BIOCAD» signed 11 new international five-year agreements for the supply of medicines. The company has its representative offices in the USA, Brazil, China, India, Singapore and others.

Production of cosmetics and detergents

Leading enterprises: NEVSKAYA COSMETIKA OJSC It is one of the three most successful cosmetics manufacturers on the Russian market. The range of products includes over 50 types of cosmetic products made of natural components. The company has on-going research development, applying of new ingredients and improving products quality and visual appearance. The in-house R&D laboratory facilities control the ingoing materials and finished products with the help of up-to-date analytical methods. The enterprise manufactures products that are not only of high-quality but available for various strata of population.

JSC «AIST» The enterprise is one of the leading manufacturers of household chemistry in Russia. The major products are top-quality laundry detergents, bleachers, washing and cleaning products, lye soap. The enterprise has economic and technical potential for manufacturing household chemicals at the highest level. The product processing includes environmentally pure components. A continuous control of quality standards conformity of the products ensures the highest credibility of the enterprise on the household chemistry market. There is an in-house R&D laboratory dealing with creation and development of new products. As a result every year JSC «AIST» has new competitive products in its assortment. The new products are developed on the basis of the advanced international experience, in close cooperation with the world leaders of chemical raw materials for household products.

2016 50 Main Industrial Enterprises in St. Petersburg Production of other non-metallic mineral products

Brief description of the type of activity

2015 Number of large and medium-sized organizations, units 42 Shipped volume, billion rubles 37.0 Number of workers, thousand people 13.2

Main activities ● Production from concrete, plaster and cement ● Production of bituminous mixtures

Production from concrete, plaster and cement Leading enterprises: KNAUF gyps Kolpino The enterprise is the most important supplier of KNAUF construction systems and their separate items in the North-West of Russia. KNAUF gypsum boards manufactured by the enterprise meet the high quality standards of the international KNAUF group. The latest developments of the KNAUF company were introduced on the production line launched at the enterprise, allowing to reduce the amount of waste during production and to improve the product quality. The company also manufactures dry mortars (plaster, spackling and installation mixtures), gypsum partition blocks, metal sections for KNAUF construction systems. LSR. Reinforced concrete – North-West The leading manufacturer of reinforced concrete products for residential, industrial, road and utilities construction in the North-West Federal District (the former name of the enterprise – OJSC PO Barrikada). The company has three industrial sites, one of which is in St. Petersburg, other two are in the Leningrad region. The product range includes more than 5000 items. The manufacturing capacity of the enterprise allows it to supply the market not only with standard reinforced concrete products (wall rings for wells, road panels, airfield smooth plates, etc.), but to produce customizable goods. Committee for Industrial Policy and Innovations of St. Petersburg Industry and Innovations of St. Petersburg 51 Textile and garment production

Brief description of the type of activity

2015 Number of large and medium-sized organizations, units 14 Shipped volume, billion rubles 27.8 Number of workers, thousand people 10.1

Main activities ● Production of clothes ● Production of textiles

Production of clothes Leading enterprise: BTC group JSC The largest Russian holding in consumer goods industry which specializes in development and production of hi-tech clothes, footwear, personal protective equipment for various branches of the economy. The company has its own state-of-the-art manufacturing facilities, including the enterprises in St. Petersburg, Leningrad Region and other areas of Russia and countries of the CIS. All production sites are upgraded according to the modern national and international standards. The clothes manufacturing has three main areas: ● uniform and Special clothing; ● military Uniform for the Ministry of Defence of the RF and other security structures; ● classic Menswear and School Uniform. The company has implemented new technological concepts in the production of special clothing: ● work uniform with multifunctional protection; ● signal clothing with high visibility; ● multi-layer clothing system; ● membrane technologies. At present BTC group JSC implements large scale projects including the ones aimed at import substitution of the textile industry. The owned assets and resources, the smooth-running operation of the flow sheet and up-to-date equipment allow BTC group JSC to carry out most of the operation of the production chain – from the material release to the production and delivery of finished products to the customer.

2016 52 Main Industrial Enterprises in St. Petersburg

Production of textiles

Leading enterprises: JSC «THREAD-SPINNING ENTERPRISE named after KIROV» One of the oldest textile enterprises in Russia was founded in 1833. Today JSC TSE named after S.M. Kirov is the largest integrated factory not only in Russia but also in Europe. It manufactures sewing, knitting and embroidery threads and yarn. Its share accounts for more than 60% of the sewing threads produced in Russia. High level of technology and unique equipment allow the enterprise to produce a wide range of cotton and mixed yarn. In order to have a non-waste production the factory has organized the manufacturing of non-core products, including mattresses, blankets, pillows, hosiery and ropes. The clients of JSC «THREAD-SPINNING ENTERPRISE named after KIROV» are more than 1000 enterprises of various branches of the consumer goods industry, over 30 large distributors, thousands of selling units. 13 official sales offices operate in the regions of Russia and the CIS. The enterprise implemented the quality management system that was certified for the conformity to the ISO 9001:2008 international standard. As a result the factory’s product credibility had a significant increase on the international market. In 2015 on International exhibition (competition) «All-Russia Brand (III millennium) XXI century quality mark» 23 products of the Mill were awarded with seven platinum quality marks and 4 products with a gold quality mark.

LLC «Avangard» The enterprise specializes in manufacturing of non-woven materials and made of them products, being Russia’s leader in production of wet wipes. Produces wet wipes, as well as dry non-woven products for cosmetic and medical sector. The enterprise is equipped with high quality European facilities, modern technologies of industrial process control and up-to-date system of quality management. Under the import substitution programme the enterprise launched four production lines for manufacturing of the spunlac e type non-woven material which had previously been imported. Production lines give the possibility to manufacture the fabric of different structure which is further used for home and contract manufacturing of wet wipes, as well as finished goods used in cosmetology, medicine and industry.

Committee for Industrial Policy and Innovations of St. Petersburg Industry and Innovations of St. Petersburg 53 Production of rubber and plastic products

Brief description of the type of activity

2015

Number of large and medium-sized organizations, units 27

Shipped volume, billion rubles 23.6

Number of workers, thousand people 9.8

Main activities ● Production of plastic products ● Production of rubber products

Production of plastic products

Leading enterprises: «ICAPLAST».Co.Ltd Leading plastic pipes manufacturer in the North-West of Russia. The plant produces pressure polyethylene pipes with a diameter of 20-1200 mm, polyethylene gas-pipes with a diameter of 20-630 mm, PP corrugated pipes with a diameter of 160-630 mm, plastic assembly wells and any plastic fittings for water supply systems, which allows to carry out a complete object equipment. The range of products is over 10 thousand items. The production capacity of the plant is over 30 thousand tonnes per year. «ICAPLAST».Co.Ltd uses the raw materials of the leading manufacturers for the production. The high quality of the manufactured pipes and fittings is guaranteed by an advanced integrated production management system and strict technology compliance. In-home laboratory facilities allow the enterprise to control the quality of raw materials and the conformity of finished products with specifications.

2016 54 Main Industrial Enterprises in St. Petersburg

PETERPIPE LTD One of the leading Russian enterprises for the production of pre-insulated pipes with a diameter of 32 mm to 1420 mm, and shaped objects in polyurethane foam insulation for the construction of heat networks. The products of the enterprise are used in major construction works and reconstruction of heating systems and hot water supply networks, designed for use in major and local networks of heating pipelines and are in high demand in the construction and reconstruction of oil and gas pipelines. PETERPIPE LTD has a full range of process equipment in accordance with the requirements for the manufacturers producing foam insulation. To ensure a reliable quality control system the factory has set up two laboratories: ● laboratory of non-destructive testing of welds provides a visual measurement and ultrasonic testing of welds; ● testing laboratory conducts all kinds of products testing to comply with the requirements of the regulatory documentation. In 2015 PETERPIPE LTD was awarded a diploma in the nomination «The Industrial Enterprises» for the 2nd place in the competition «For the Quality of Works and Services». The company successfully meets its objectives related to the import substitution of the raw materials. The products of the company are supplied to various regions Russia, Tatarstan and the Republic of Belarus.

Committee for Industrial Policy and Innovations of St. Petersburg Industry and Innovations of St. Petersburg 55 IMPLEMENTATION OF THE INDUSTRIAL AND INNOVATION POLICY OF ST. PETERSBURG

Legal and economic framework, the objectives and principles of the implementation of the St. Petersburg industrial policy are determined by the Law of St. Petersburg Law of St. Petersburg «On the fundamentals of St. Petersburg industrial policy», № 221-47 dated 13.05.2009 developed with the participation of public organizations «On fundamentals of industrial and industrial enterprises of the city. policy of St. Petersburg» Main objectives of the industrial policy of St. Petersburg are to provide innovative development and improving of industrial competitiveness of St. Petersburg. The State Programme Implementing measures in the field of industrial of St. Petersburg «Development policy of St. Petersburg contributes to the achievement of industry, innovation activity of targets defined by the President’s decree № 596 dated and agro-industrial complex 07.05.2012 «On the long-term national economic in St. Petersburg» in the years policy» including the establishment of high performance 2015–2020 workplaces, increase in workforce productivity in production (Resolution of the Government sector, increasing the proportion of high technological of St. Petersburg and knowledge-intensive industries in gross regional product. № 495 dated 23.06.2014) In accordance with the Strategy of economic and social development of St. Petersburg, the State Programme of St. Petersburg «Development of industry, innovation activity and agro-industrial complex in St. Petersburg» in the years 2015–2020 was approved up to the year 2030 and is being The Plan of measures implemented. to promote import substitution Measures aimed at stimulating of the investment in St. Petersburg in the years activity in industry are also provided for by the State 2015–2017 (Decree of the Government Programme of St. Petersburg «Economic development of St. Petersburg and the knowledge economy in St. Petersburg» in the years № 3-rp dated 23.01.2015) 2015–2020 and the State Programme of St. Petersburg «Economic and social development of St. Petersburg territories» in the years 2015–2020. Additional measures aimed at creating conditions for the modernization of production and competitive The Programme of priority growth of industrial enterprises products are being measures to ensure the sustainable economic implemented in accordance with the Plan of measures development and social stability to promote import substitution in St. Petersburg in the years in St. Petersburg in year 2015–2017 and the Programme of priority measures to ensure 2015 and years 2016-2017 the sustainable economic development and social stability (Decree of the Government in St. Petersburg in year 2015 and years 2016–2017. of St. Petersburg Measures aimed at modernization and innovative № 10-rp dated 12.02.2015) development of the industry of St. Petersburg, are implemented as part of current legislation in the following areas.

2016 56 Implementation of the Industrial and Innovation Policy of St. Petersburg Promotion FACTS AND FIGURES of technological re-equipment and modernization more than of enterprises, improving energy efficiency in industry 211.3 million rubles - subsidies To support the technological re-equipment for the purchase and modernization of production of the industrial sector of equipment, of St. Petersburg stakeholders, carrying out the purchase management systems of technical equipment on lease, financial support from certification and carrying the city budget in the form of subsidies is provided. As a measure of stimulating the processes of import out energy audit substitution in 2015 special conditions were established and (or) purchase for granting subsidies for the industrial enterprises, purchasing of energy efficient on lease technological equipment manufactured in Russia. equipment in 2015 The maximum size of costs to be reimbursed from the budget of St. Petersburg, in this case, increased to 80%. Stakeholders in the field of industry of St. Petersburg, implementing activities and programes on energy saving and increasing energy efficiency, are provided with subsidies f r o m t h e b u d g et o f S t . Pete r s b u r g t o r e i m b u r s e p a r t o f ex p e n s e s related to the energy audit and (or) purchase of energy efficient equipment. Introduction of modern quality management systems improve the efficiency and competitiveness of manufacturing. For these purposes part of costs, related to certification of management systems for compliance with national and international standards, are compensated for industrial enterprises from the city budget. These measures of state support contribute to updating the technological base in the industry, introduction of modern 85 million rubles - management methods at the enterprises and create conditions the total bonus pool to increase productivity and improve production efficiency. for prizes in the sphere In order to encourage industrial enterprises for their of industry in 2015 achievements in the implementation of measures to improve productivity and the development of industrial production, St. Petersburg Government Prizes «For increase in labor productivity in industrial enterprises in St. Petersburg» and «For the creation of high-tech workplaces» have been approved. St. Petersburg Government Prizes in the industrial sector in 2015 were awarded to: JSC «GOZ Obukhov plant», JSC «Radar mms», JSC Peterburgsky Traktorny Zavod, JSC «Admiralty Shipyards», OJSC «Power machines» – ZTL, LMZ, Electrosila, Energomachexport.

Committee for Industrial Policy and Innovations of St. Petersburg Industry and Innovations of St. Petersburg 57

Attracting investments in industrial production The basic principles of the investment activity of the city, forms of state support, rights and duties of investors are defined by the Law of St. Petersburg «On the state support of investment Law of St. Petersburg activity on the territory of St. Petersburg». № 185-36 dated 30.07.1998 State support to the investor may be provided in the following «On the state support forms: of investment activity ● guarantees of St. Petersburg on loans taken for investment on the territory projects; of St. Petersburg» ● tax incentives; ● real estate lease incentives; ● deferrals and installment payments for the provision of real estate that are in St. Petersburg property; ● support of investors with the use of St. Petersburg funds.

Tax incentives Law of St. Petersburg for manufacturing enterprises № 81-11 dated 14.07.1995 in the amounts payable «On tax incentives» to the budget of St. Petersburg

Corporate income tax:

The tax rate, taking into account incentives: 13.5% Conditions of granting privileges: ● Implementation of investments in the amount of 15 billion rubles (inclusive) or more in a period of not more than 5 years in a row beginning with 01 Jan 2012. For organizations regardless of the type of economic activity carried out. Wages of employees – more than 3 times the amount of minimum wage established by the regional agreement on minimum wages in St. Petersburg. The period of tax incentives – 7 tax periods in a row. ● Implementation of investments in the amount of 800 million rubles (inclusive) or more for no more than 3 years in a row, in the period from 01 Jan 2010 to 31 Dec 2016. For investors, implementing production activities established by regulation. Wages of employees – more than 3 times the amount of minimum wage established by the regional agreement on minimum wages in St. Petersburg. The period of tax incentives – 5 tax periods in a row.

2016 58 Implementation of the Industrial and Innovation Policy of St. Petersburg

● Implementation of investments in the amount of 800 million rubles (inclusive) or more for no more than 3 years in a row, in the period from 01 Jan 2015. For organizations, the place of the state registration of which is St. Petersburg, regardless of the type of economic activity carried out. Wages of employees – more than 3 times the amount of minimum wage established by the regional agreement on minimum wages in St. Petersburg. The period of tax incentives – 5 tax periods in a row. ● Implementation of investments in the amount of 50 million rubles (inclusive) or more for no more than 3 years in a row, in the period from 01 Jan 2010 to 31 Dec 2016. For organizations that are engaged in software development, production of medical equipment and electronic engineering. Wages of employees – more than 3 times the amount of minimum wage established by the regional agreement on minimum wages in St. Petersburg. The period of tax incentives – 5 tax periods in a row. ● Average number of employees in organizations exceeds 100 people. For organizations, the place of the state registration of which is St. Petersburg. Average monthly wages of employees is 12 times the minimum wage established in St. Petersburg. The period of tax incentives – 1 tax period. ● The organization is a resident of a special economic zone, located on the territory of St. Petersburg (hereinafter – SEZ). Privileges are given for the entire period of existence of SEZ.

The tax rate, taking into account incentives: 15.5% Conditions of granting privileges: ● Implementation of investments in the amount of 300 million rubles (inclusive) or more for no more than 1 year, in the period from 01 Jan 2015. For organizations, the place of the state registration of which is St. Petersburg. Wages of employees – more than 3 times the amount of minimum wage established by the regional agreement on minimum wages in St. Petersburg. The period of tax incentives – 3 tax periods in a row.

The tax rate, taking into account incentives: 16.5% Conditions of granting privileges: ● Average number of employees in organizations exceeds 400 people. For organizations, the place of the state registration of which is St. Petersburg. Average monthly wages of employees is 7 times the minimum wage established in St. Petersburg. The period of tax incentives – 1 tax period.

Committee for Industrial Policy and Innovations of St. Petersburg Industry and Innovations of St. Petersburg 59

Corporate Property Tax:

The tax rate, taking into account incentives: 0% Conditions of granting privileges: ● Implementation of investments in the amount of 800 million rubles (inclusive) or more for no more than 3 years in a row, in the period from 01 Jan 2010 to 31 Dec 2016. Wages of employees – more than 3 times the amount of minimum wage established by the regional agreement on minimum wages in St. Petersburg. The period of tax incentives – 5 tax periods. ● Implementation of investments in immovable property items in the amount of not less than 300 million rubles for no more than 3 years in a row, starting from 01 Jan 2015. Wages of employees – more than 3 times the amount of minimum wage established by the regional agreement on minimum wages in St. Petersburg. The period of tax incentives – 2 tax periods. ● Organizations involved by a federal executive body authorized to carry out functions for management of SEZ to perform its functions on creating objects of real estate in the SEZ boundaries. With respect to property which is on the central asset register of a resident organization of the SEZ is used and located in the SEZ. The period of tax incentives – within 10 years from the month following after month of registration of the said property. The tax rate, taking into account incentives: tax rate reduced for 2.2% of the investment amount Conditions of granting privileges: ● Implementation of the investment in items of movable property, included in Section OKOF «Machinery and equipment» or «vehicles» (except passenger cars) for the sum of 50 million rubles for less than 1 of any calendar year starting from 01.01.2015. The period of tax incentives – 1 tax period.

Land tax:

The tax rate, taking into account incentives: 0% Conditions of granting privileges: ● Implementation of the investments in immovable property, located on the plot of land for which the exemption is claimed, in the amount of 100 million rubles within less than any 3 calendar years in row starting from 01.01.2015. The area occupied by the objects of immovable property, shall be not less than 30% of the total land area. The period of tax incentives – 2 tax periods. ● With respect to land located in the SEZ and belonging to the organization, which is a resident of the SEZ. The period of tax incentives – 5 years from the month of appearance of property rights for each plot.

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Transport tax

The tax rate, taking into account incentives: 0% Conditions of granting privileges: ● The organization is a resident of the SEZ. The period of tax incentives – 5 years from the moment of registration of the vehicle, with the exception of water and air vehicles. ● With respect to vehicles that use natural gas as a motor fuel. Wages of employees – more than 3 times the amount of minimum wage established by the regional agreement on minimum wages in St. Petersburg.

The Federal law № 488-FZ St. Petersburg Industry dated 31 Dec 2014 «On Industrial Policy Development Fund in the Russian Federation» In accordance with the Federal law «On Industrial Policy in the Russian Federation» and in order to organize and implement regional innovation programes and projects aimed at supporting development of industry and innovation in St. Petersburg, Government of St. Petersburg established a nonprofit unitary organization «St. Petersburg Industry Development Fund» (hereinafter – the Fund). The Fund offers preferential terms for financing projects aimed at developing new high-technology products, technical re-equipment and creating competitive manufacturing of civilian products based on the best available technologies. FACTS AND FIGURES In order to implement industrial and technological projects the Fund on a competitive basis provides targeted loans at the rate of 5% per annum up to 5 years in the amount of from 50 to 100 million rubles, which should be provided with liquid collateral.

Assistance in attracting 1.0 billion rubles - the budget of federal funding to implement of St. Petersburg investment projects Industry Development Fund in 2016 In order to attract federal funding for implementation of investment projects, the Committee for Industrial Policy and Innovations of St. Petersburg provides assistance to companies and organizations in St. Petersburg in obtaining state support in the following areas: 1. Provision of organizations with targeted easy loans according to four funding programes: «Development projects», «Consortium projects», «Programme of machine substitution» and «Leasing projects» (Industry Development Fund). 2. Funding a part of expenses for organizations implementing new complex investment projects in priority areas of civilian industry in the framework of the State Programme of the Russian Federation «The development of industry and increase its of competitiveness» (Ministry of Industry and Trade of the Russian Federation):

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- for loans obtained in the Russian banking institutions; - for carrying out research and development activities. 3. Support of investment projects implemented on the territory of the Russian Federation on the basis of project finance (Ministry of Economic Development of the Russian Federation): - preferential bank loans from commercial banks. 4. Provision of subsidies for compensating a part of expenses of organizations within the sub-programs of the State Programme of the Russian Federation «Development of electronic and radio-electronic industry in the years 2013-2025» (Ministry of Industry and Trade of the Russian Federation): - to create scientific and technical basis for the development of basic technologies for the production of the priority electronic components and radioelectronic equipment; - for interest payment on loans obtained in the Russian bank institutions for the implementation of infrastructure projects of electronic industry, including clusters in the field of electronics.

Implementation of Investment Projects in the St. Petersburg Industry Concern PVO «Almaz-Antey» is completing implementation of the strategic investment project on creation North-West Regional Centre of Concern PVO «Almaz-Antey» on the basis of JSC «GOZ Obukhov plant» (hereinafter – SZRTS) – modern innovative production and technology cluster including research, production, laboratory and testing facilities for the development and production of high-technology products for special purposes, as well as civilian production. A strategic investment project of JSC «KLIMOV» on the transfer of production facilities, reconstruction and technical re-equipment of research and production base for the production of aviation gas turbine engines implemented w i t h i n t h e f r a m e w o r k o f t h e d e v e l o p m e n t s t r a t e g y o f t h e a v i a t i o n industry of the Russian Federation, is in the final stage. OJSC «Power machines» is implementing an investment project involving taking out branches of the company from the city’s historic centre: LMZ, Electrosila, ZTL and the construction of a modern plant for the production of power equipment on three plots of land located in non-residential areas «Metallostroy» and «Izhora Plants». One of the projects is being implemented jointly with the company Toshiba Corporation. A plant for the production of transformers and the first start-up complex for the production of energy equipment have already been built on the new sites. Innovation center Bourevestnik is building a research and production complex for the development and production of X-ray equipment for the needs of the diamond industry and research of the structure and composition of the substance.

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JSC «ELCUS» is planning to finish the investment project on construction of a new science and industrial centre for electronic units for aeronautics, aviation and navy fleet in 2016. NTC-Energia started constructing facilities within the investment project and creation of product range of hi-voltage frequency-regulated drives and soft starters. The first phase of construction of the factory on manufacturing and servicing brake systems for modern speed trains has been launched. The project is implemented by the collaborative partnership of KnorrBremse 1520 established by a subsidiary of Russian Railways «Federal Freight Company» and the German KnorrBremse. OJSC «Oktyabrsky railway electric car repair works» is implementing an investment project «Protection of city rail electric transport and subway cars». The project includes construction on the factory territory of the facilities that will be able to manufacture modern produce for electric transport – trams and subway cars with capacity of 200 units per year. The Branch of OOO «Toyota Motor» in St. Petersburg in the end of 2015 doubled the factory output – from 50 to 100 thousand cars per year. In 2016 a new model production – Toyota RAV4, will be commissioned. In the end of 2015 Hyundai Motor Manufacturing Rus, LLC was one of the first to prepare and send for review to the Ministry of Industry and Trade of Russian Federation their declaration on signing a special investment contract. The contract suggests significant financial investment into modernization and retrofitting of the works, as well as into assimilation of new models release and creation of additional employment. «MERA-Stal» LLC is implementing their strategic investment project on constructing metallurgic plant for steel bars and roll steel in the territory of Izhorskiye Zavody JSC. The works will use state-of-the-art technological solutions in metallurgy provided by DANIELI company, an Italian commercial partner of the investor. Plant’s estimated capacity is 350 thousand tonnes of high quality roll bars a year. Neva metal posuda JSC has opened in St. Petersburg a plant for the production of high-quality non-stick cookware. Before opening of the plant the manufacture was located in the rented premises. The technical equipment of the new plant will allow the company to increase the production capacity by 40 % due to the reduction of fixed costs and the cost of production. «Scientific Technological Pharmaceutical Firm «POLYSAN» Ltd began to implement a large investment p r o j e c t o n a t o t a l r e c o n s t r u c t i o n o f m e d i c i n e p l a n t . T h e p r o j e c t includes – modernization of the current production, product differentiation (also for the purpose of substitution of the imported analogues), setting up a new production of solid dosage form medicines, starting a fully-functioning

Committee for Industrial Policy and Innovations of St. Petersburg Industry and Innovations of St. Petersburg 63 research and development centre in order to elaborate new original drugs. LLC «GROTEX» continues to implement an investment project on plant for liquid drugs production. In 2015 the project was recognized as a strategic investment project of St. Petersburg. The company is planning to build the second and third phases in 2016-2018. JSC «WERTEKS» commissioned a first phase of innovational manufacturing facilities with capacity of about 70 million packs of officinal medical products a year. The second phase of the plant is being designed. CJSC «BIOCAD» commissioned a new laboratory and manufacturing facility, including 8 scientific research laboratories. The complex will develop medical products of chemical nature and substances for their production. Most of the products are unmatched innovative products. The company is designing the second phase of the facility. LLC Novartis Neva finished construction of the Russia’s first full cycle pharmaceutical production plant. The factory’s capacity will be 1.5 billion pills a year. The factory is planned to produce innovational pharmaceutical products and high-quality modern generics (altogether over 40 medicine titles). CJSC Raduga Production which is the part of the pharmaceutical group ROSTA started contract manufacturing of TANAKAN medicinal product in order to allocate company IPSEN production on the territory of Russian Federation. The planned production capacity will be about 120 million pills a year. «CYTOMED» J.S. Co has finished construction of the first phase of innovation manufacturing plant. The planned output for the first phase is 5.8 million packs a year. The second phase of the plant is being designed at the moment – it will develop original medicines, develop technologies for designing own original molecules. The construction of Vital Development Corporation OJSC has been finished where the production of test-systems for biochemical and ELISA analysis, laboratory equipment and biochemical automated analyzers will be located. GEROPHARM, Ltd is constructing the technological facility for the production of a substance for injection drugs. The plant will produce drugs to treat diseases of the central nervous system. The annual production capacity will amount to 5 tonnes of substances, 500 million pieces of solid dosage form medicine and 10 million pieces of pre-filled syringes with the opportunity to increase to 20 million units. LLC «Inmed» is implementing an investment project on developing a technology for manufacturing composite non-woven materials from biopolymers aimed for the production of topical hemostatic dressing. «ORION MEDIK» CJSC is constructing the first phase of the medical equipment plant where development of innovational medical equipment will be continued.

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A Finnish company LLC «TEKNOS» put into commission a paint and varnish manufacturing plant. The production capacity of the new plant is 10 million liters of liquid paints and 2 thousand tonnes of powder coatings per year. Furniture Industry Technopark has commissioned a furniture and woodworking production facility. «Agropolis Severo-Zapad» is implementing a project for constructing a wholesale distribution centre Agropolis. The centre is planned to ensure fast delivery of agricultural produce «from the field to the counter», and to cut down the storage costs of the factories. LLC Tandem-Istan-Saint-Petersburg is realizing a project on construction of Romb, a wholesale distribution centre. The feature of the new wholesale distribution centre is that it is located on several sites in different parts of the city, including the sea fishing port of St. Petersburg, which will allow to use the sites for products distribution with the maximum efficiency.

FACTS AND FIGURES Integrated preparation of the manufacturing facilities zones The most important condition for the development more than 50 of production is the preparation of new areas for construction industrial zones of industrial facilities. The territories categorized as industrial lands amount in St. Petersburg to 13149 hectares, which comes to 13% of the total area of St. Petersburg. The legal status of the industrial zones of St. Petersburg is confirmed in the General Plan and Land Use and Development Rules of St. Petersburg. The territory of 9 thousand hectares within the city’s industrial zones is listed under specialized zones. They are intended to unit manufacturing facilities according to their industry attributes, similar needs of resources provision, the pipeline organization, cargo handling and packaging of related industries. As part of the activities for the industrial zones investment d e v e l o p m e n t a n i n t e g r a t e d a p p r o a c h t o t h e a r e a s d e v e l o p m e n t is applied. In this approach the city takes on a commitment for city planning and land use engineering for production sites. The major infrastructure projects for complex engineering and transport preparation of industrial sites of Rybatskoye and Rzhevka industrial zones have been launched. At present, the documentation on the 13 areas, located within the boundaries of the production zones, with a total area of 4.5 thousand hectares is being developed and approved. Development planning and land surveying projects for the non-residential zones of Kamenka, Pontonnaya, Neva and Rybatskoye are being designed.

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Assistance in the human resources support for St. Petersburg manufacturing industry The city budget of St. Petersburg provides subsidies in order to provide employees with necessary qualifications for the city’s industrial facilities working on students’ education, expert requalification and additional training. In 2012–2015 around five thousand people have been educated within the programme of industry development, FACTS AND FIGURES including special educational programme developed together w i t h t h e c o r p o r a t e c u s t o m e r s . O v e r 4 0 p r o f e s s i o n a l a n d a d d i t i o n al educational facilities have been providing training. In 2015 the need in workers of various specializations for implementation investment projects for industrial facilities of St. Petersburg has been monitored. 15 million rubles - Four educational programme for requalification, additional subsidies for training, training and training to prepare skilled paraprofessionals requalification in the area of synthesis of pharmaceutical substances have and additional training been developed according to a specialization «Chemical technology of organic substances». of St. Petersburg St. Petersburg cluster development centre for purposes industry in 2015 of plants in the Cluster of Pharmaceutical and Medical Industries, radiation technologies has developed an integrated education programme for experts requalification and advanced training in the pharmaceutical, biotechnologies and medical equipment manufacturing spheres. The programme is comprised of 12 modules structured as 7 educational programme. In 2015, based on these educational programme a training was organized for inspection of medicinal production for the factories of the cluster along with internship on the site of JSC «Pharmproject». There is on-going development of resource centre the main objective of which is to ensure educational facilities networking in terms of integration processes in the vocational education system. This allows to provide resources for training, be more flexible to labor market changes and quickly customize the training programme for employers. The resource centres operating on the basis of professional educational organizations include: ● Resource Microelectronics Centre (St. Petersburg Technical College of Management and Commerce); ● Energy and Ecology Resource Centre (Motor Transport and Electromechanical College); ● Centre for training and requalification of personnel in the field of radio electronics (Polytechnic College of Municipal Economy); ● Industry resource centre of the Cluster of tool making Industry (Petrovsky College); ● Resource Centre Construction Technology Park (College of Construction Industry and Urban Development).

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T h e P a r t n e r s o f t h e r e s o u r c e c e n t r e s a r e t h e U n i o n o f I n d u s t r i a lists and Entrepreneurs of St. Petersburg, Russian Association of Machine Tool Industry Stankoinstrument, as well as a number of large industrial and scientific companies – JSC «SVETLANA», JSC «GOZ Obukhov plant», JSC SP «Severnaya verf», JSC «Admiralty Shipyards», OJSC «RIRT» (Russian Institute of Radionavigation and Time), LLC Nissan Manufacturing RUS, JSC «Kirovsky zavod», «Armalit» JSC and others.

Support and development of business activity in St. Petersburg Support for small and medium businesses in St. Petersburg The State Programme is performed under St. Petersburg state programme «Development of St. Petersburg business activity and consumer market in St. Petersburg» «Development of business in the years 2015-2020. activity and consumer Programme activities are aimed at improving business market in St. Petersburg» environment in St. Petersburg and also at providing eased in the years 2015-2020 (Resolution of the Government access to financial resources for subjects of small and medium of St. Petersburg businesses, improving their domestic and international market № 554 dated 30.06.2014) standing and development of their talent pool. In 2015 financial support in subsidies was provided to eight special programme. Three of these programme were implemented for the first time. The most in demand programmes among entrepreneurs are special programmes «Fixed assets acquisition on leasing» and «Crediting financing for small and medium businesses by commercial banks». Special programmes of «Training and improving qualification» and «Involving youth in businesses activities» that are aimed at development of talent pool for small and medium businesses in St. Petersburg are being successfully implemented. A special educational programme «Training and improving qualification» includes courses for CEOs of small and medium businesses in St. Petersburg. A special programme of «Involving youth into business activities» is implemented in two phases under the brand «Business – for me!» May 2015 had seen a forum called «Business – for me!» which included a competition of business projects from participants of the 1st rounds of the projects. The results of the year in the programme were summed up in the end of the year at a Congress of young entrepreneurs. The winners of the regional round of the competition «Young entrepreneur of Russia – Young entrepreneur of St. Petersburg» were determined and the exposition of young entrepreneurs’ achievements was held. 2.5 thousand people between the ages of 14 and 30 years old became the participants of the training courses for potential entrepreneurs in 2015, 70 new subjects of youth businesses were opened.

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The main elements of the infrastructure of small and medium business which form efficient interaction system of the government authority and St. Petersburg business community are: Small and Medium Business Credit Assistance Fund The fund has been created for development in St. Petersburg of the SME credit system, guarantees and sureties system for loans of the small and medium businesses based on credit agreements, loan and leasing agreements. Support provided by Small and Medium Business Credit Assistance Fund: ● granting micro-loans up to 1 million rubles for up to 2 years at an annual rate of 5% without additional commissions; ● providing the Fund’s surety for credit agreements at an annual rate of 1% from amount of the surety. SPB GBU Centre for Development and Entrepreneurship Support The main aim of the Centre is providing centralized state services for legal entities and private entrepreneurs upon different directions of business regulation, including – c onsulting on special state support programme and general issues on conducting business, assisting in industrial cooperation and promoting of products in the external markets. Regional Integrated Centre – St. Petersburg The Centre specializes in promoting the internationalization of business and the support of the international scientific and technological cooperation. Areas of activity: involvement of small and medium businesses in the process of prices internationalization; facilitating small and medium enterprises in entering to the international and inter-regional markets for goods, services and technologies; promoting the competitiveness and efficiency of export-oriented small and medium-sized businesses. The First St. Petersburg Business Incubator Its main aim is providing friendly environment for development of the starting business. The base service of the business incubator is leasing office and business facilities (conference-halls, meeting rooms, study classes) with concession. More over, the residents of the business incubator are offered a free set of services for business development such as legal and book-keeping services, IT and PR support, advertising, training, consulting, organization of participation in trade fairs, forums and other special eventsand integrated infrastructure service. The state policy on development and support for the small business in St. Petersburg is implemented by Public Council on Small Business Development under the auspices of the Governor of St. Petersburg. The main task of the Council

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is interaction of small businesses associations in order to harmonize positions on priority development directions for small business in the city. The annual forum for Small and Medium Businesses of St. Petersburg attended by the Governor and the government agency of St. Petersburg facilitates constructive dialogue between the power and the business. Demand stimulation, promoting products in commodity markets

St. Petersburg Import-Substitution and Localization Centre In order to promote commodities in the domestic and international markets St. Petersburg Import-Substitution and Localization Centre (ISLC) was opened in the exhibition complex Lenexpo in September of 2015. The centre is an effective platform for the development and promotion of high-tech projects, production of import-substituting products, including those for public use. FACTS AND FIGURES The main activities of the ISLC include organization of exhibitions for customers and suppliers, ensuring their effective cooperation on technical and marketing issues of the planned procurement and information and analytical support for import On 01.05.2016 substitution. registered The ISLC hosts themed week involving organizations and public in the Database: authorities, both from St. Petersburg, and other Russian regions. One of the important activities of the ISLC is interaction with public corporations in order to increase the share 550 companies; of import-substituting production deliveries by attracting small and medium-sized industrial enterprises. The business calendar of the ISLC includes periodic business contacts markets. This type of communication between over 34 thousand t h e c o m p a n i e s i s t h e m o s t e f f e c t i v e t o o l f o r p r o m o t i n g c o m m o d i ties manufactured commodity and finding potential suppliers. items; Among the main activities of the information and analytical unit of the ISLC – is the creation and optimization of impor t substitution base, which houses product catalog, based of the St. Petersburg business data on produced domestic and purchased imported over 33 thousand goods. The main objective of the database creation is establishing purchased commodity of the connection between the customers and domestic items m anu f ac ture r s, w hi c h m ay p r ov i de c o mp et it i ve p r o duc t s to re p lac e the imported ones. In March 2016 the ISLC saw commissioning of the Export Support Centre – the first project of such scale in Russia which is being implemented at the regional level. The centre was created to support the St. Petersburg companies intending to promote their products on international markets. Among its residents are more than 50 companies.

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The centre is a platform for international and interregional cooperation where the companies of St. Petersburg present products manufactured for export. The exposition includes the work of the permanent branch stands of the following industries: mechanical engineering and metal products, pharmaceutical and medical industry, consumer goods industry, food industry, electrical equipment, IT-technologies and electronics. Moreover, the companies whose scope of business activities corresponds to the subjects of business events held by the ISLC can use the exhibition rotary stands to demonstrate their products. The centre provides a range of services including: advice o n t a x a n d c u s t o m s m a t t e r s , d r a f t i n g a n d t r a n s l a t i o n o f d o c u m e n ts, PR- support, interacting with sales representatives of countries and regions interested in establishing and strengthening trade relations with St. Petersburg. Congress and Exhibition Activity In order to facilitate the promotion of products made by St. Petersburg manufacturers on the domestic and foreign markets with the support of the Government of St. Petersburg there are expositions of achievements of the city’s enterprises, business events (round tables, contacts exchange, conferences, workshops), visits of official delegations, presentations of the city of St. Petersburg during congresses and exhibitions. Industrial enterprises are granted subsidies from the municipal budget for the reimbursement of costs related to the participation in international exhibitions and fairs. Every year St. Petersburg becomes the venue for a number of major congress and exhibition events. FACTS AND FIGURES Since 1997 the city has hosted the St. Petersburg International Economic Forum which is attended by the world government leaders, international exper ts, heads of major Russian and foreign companies. In 2015 the thematic focus of the exposition in St. Petersburg was defined as: «St. Petersburg in the centre of the development of the Russian Arctic». The models of advanced products that billion rubles - are used to solve problems for the integrated development 40 of the Arctic territories, navigation simulator for testing skills a portfolio of ship handling at low temperatures and (or) ice cover, etc. were of the documents, signed presented at the exposition and business area of St. Petersburg. by the Government 22 agreements on cooperation of St. Petersburg were of St. Petersburg signed at the Forum, including those with Toyota Motor, Ltd., during the St. Petersburg PJSC Gazprom Neft, the Federal Autonomous Establishment International Economic ‘Russian Foundation for Technological Development’, GC Rostec, ExpoForum – International, LLC. Forum in 2015 Every year St. Petersburg hosts, together with St. Petersburg International Innovation Forum, the International Forum «Russian Industrialist» which provides the enterprises with a platform to present the latest developments and supports their promotion on international and regional markets. A total of 328 companies from 12 Russian regions and 14 countries of the world participated in the Forum in 2015.

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The Forum’s exhibition and events were visited by more than 11 thousand specialists. In 2015, the «Russian Industrialist» brought together the expositions of industrial enterprises of St. Petersburg, Moscow, Penza, Kemerovo, Novosibirsk, Yekaterinburg, Yamalo-Nenets Autonomous District, as well as of Leningrad, Moscow, Pskov, Kaluga and Tomsk regions of Russia. The best innovative energy FACTS AND FIGURES projects of Switzerland and the collective exposition of the Czech enterprises were presented at the Forum. The Holding Company Leninist, «LOMO» PLC, PJSC «ZVEZDA», Avangard, Positron J.S.K., The Laser Centre, Irlen Engineering, ITA-Petersburg, The Novosibirsk Tool Factory, The Baltic Engineering more than Company, The Sverdlovsk Tool Plant, Compressormash and others showed their new developments and modern equipment. conferences, The industrial potential of St. Petersburg as of the largest 40 modern, competitive and innovative industrial centre round tables, seminars was presented in the framework of the Collective Exposition and presentations of the nine Clusters where participated more than 100 enterprises. held in the framework The presentation of the unique Machine Tool Research of business programme and Production Complex took place which is planned to be built of the Forum «Russian in a special economic zone of St. Petersburg and launched in 2019. Industrialist» An agreement on cooperation between the St. Petersburg Cluster for the «Development of Information Technologies, Radioelectronics, Instrumentation, Communications and Telecommunications» and the St. Petersburg «Cluster of Innovation Development in the Energy and Industry» was also signed during the Forum. In 2015 St. Petersburg hosted the VII International Maritime Defence Show (IMDS – 2015) where 423 companies had their expositions, 40 of them are foreign companies from 28 countries. During the IMDS four scientific conferences and 20 congress and business and social events (round tables, seminars, presentations of products and companies, press conferences, etc.) were organized and held. In total, the IMDS- 2015 was attended by 46 official delegations from 39 countries (altogether over 43 thousand experts). They represented almost all the countries engaged in the production and maintenance of the marine equipment.

Attracting businesses to participate in international programmes, cross-border cooperation In order to encourage organizations to participate in international programmes and programmes of cross-border cooperation, including the promotion of new foreign markets, the conference «International programmes and cross-border cooperation programmes: opportunities for organizations in St. Petersburg» was held. The conference was attended by over 250 representatives of organizations in St. Petersburg, including industrial, scientific and (or) sci-tech enterprises and the establishments of higher education of St. Petersburg.

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Interaction with development institutions in order to attract financing for innovation and modernization projects

JSC RUSNANO

JSC RUSNANO carries out financing of promising projects in the sphere of nanotechnology. Projects being close to the entry into market are in priority. The main tasks and directions of cooperation between St. Petersburg and JSC RUSNANO are defined in the cooperation Agreement between St. Petersburg and GK «Rosnanotech». The main areas of cooperation include: ● search, selection and financing in accordance with an established procedure of innovative projects in the field of nanotechnology; ● development and implementation of mutual programmes and plans in the sphere of nanotechnologies and nanoindustry; ● carrying out activities to promote nanotechnology products into the markets. Nowadays JSC RUSNANO has approved the financing of 8 projects implemented on the territory of St. Petersburg including:

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LED Microsensor Infrared LEDs and optical sensors – extension NT LLC of the existing production of semiconductor optical devises working in the middle infrared range CJSC Scientific Technical equipment for molecular beam epitaxy and technical and planar processing – expansion of serial production equipment of high-vacuum technological equipment SemiTEq. Development of customer-oriented technological processes VIRIAL Ltd Durable products made of nanostructured ceramics and metalloceramics – creation of the series production of durable products made of nanostructured ceramics and metalloceramics: slide bearings, sealing rings, axial cutting tool and removable polyhedral plates Optosense LLC Explosive gas sensors – production of unique sensors for industrial safety systems which allow to determine the concentration of hydrocarbons even in small doses and at very low power consumption CJSC Optogan Led lighting systems – creation of a vertically integrated LEDs and LED lighting systems production on the basis of own technologies including unique technology of semiconductor chips based on gallium nitride RST-Invent LLC The system of Radio Frequency Identification (RFID) – creation of production of domestic-owned corpse running RFID mark on the metal and RFID-inlays / stickers of high sensitivity for passive systems of Radio Frequency Identification (RFID) Terwingo LLC Wire – the creation in Russia of the production of cutting wire based on the technology of plasma surface modification PJSC Gazprom Modernization and development of the catalyst Neft business PJSC «Gazprom Neft»

The total budget of the projects is about 27 billion rubles including the investments of JSC RUSNANO – 12.2 billion rubles.

Development Fund of the Centre for development and commercialization of advanced technologies (The SKOLKOVO Foundation) The project of creation of the innovation centre «SKOLKOVO» is being implemented to support research works, develop and commercialize their results. 146 organizations of St. Petersburg implementing projects in the following main areas of cooperation have received the status of the project participant for creation and providing the functioning of the innovative centre «SKOLKOVO»: ● efficiency and conservation; ● nuclear technologies; ● extraterrestrial technologies and telecommunications; ● biomedical technologies; ● strategic computer technologies and software.

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The companies which have received the status of a participant may have a chance to get a grant for the implementation of innovative projects. Grantees are about 40 organizations of St. Petersburg including seven organizations which received the grants in 2015. In order to create conditions for research development, development and commercialization of research activities results the Agreement on mutual cooperation between St. Petersburg and non-commercial organization Development Fund of the Centre for development and commercialization of advanced technologies (The SKOLKOVO Foundation) was signed.

Industry Development Fund of the Russian Federation In order to attract financing of innovative and modernization projects implemented in St. Petersburg within St. Petersburg International Economic Forum Agreement on the strategic partnership and cooperation between the Government of St. Petersburg and Federal State Autonomous Institution «Russian Foundation of Technological Development» (hereinafter – the Industry Development Fund) was signed. The agreement includes cooperation in the following areas: ● implementation of regional research and development; ● increase of funding of technological and industrial projects aimed at development and implementation of advanced technologies (including core industry technologies); ● support of high-tech exports; ● development of the best available technologies and import substitution within the integrated economic development of St. Petersburg. The Industry Development Fund provides loans to subjects of industrial activities on attractive terms and on a competitive basis for the implementation of projects aimed at introducing of advanced technologies, creation of new products or the organization import-substituting industries. In 2015 St. Petersburg enterprises and organizations received loan approvals from the Industry Development Fund for a total amount of 2 billion rubles.

The Fund for Assistance to Small Innovative Enterprises The Innovation Assistance Fund implements the programmes on the creation of new companies and development of the existing high-tech ones, commercialization of results of scientific and technical activities, attracting investment to innovative small business and job-creating. The Fund provides financing of projects on the basis of agreements (contracts), also grants for individuals and legal entities, for the projects the results of which have the prospect

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of commercialization and are realized by subjects of small innovative entrepreneurship. In 2015 enterprises and organizations of St. Petersburg received 877 million rubles for the implementation of 119 projects based on programme of the Innovation Assistance Fund.

Stimulation of innovative activities of organizations of St. Petersburg FACTS AND FIGURES Financial support of enterprises and organizations In order to stimulate the innovative activities for the subjects of industrial, scientific and (or) scientific-technical activities 10.0 million rubles - of St. Petersburg, the city budget provides financial subsidies for research support to enterprises and organizations of St. Petersburg for reimbursement of a part of the costs connected with scientific and development works researches, the production of test samples. in 2015 To encourage enterprises to create original domestic developments and protection of results of intellectual activity and means of individualization, including those focusing on import substitution and localization production, subjects of industrial, 2.0 million rubles - scientific and (or) scientific and technical activities, conducting subsidies for legal research and (or) scientifically-technical activity on the territory of St. Petersburg, subsidies are provided in order to recover part protection of the results of the costs of legal protection of results of intellectual activity of intellectual activities and means of individualization. In 2015 there were supported and individualization 580 patents including 29 patents obtained by organizations abroad. resources in 2015 St. Petersburg International Innovation Forum One of the largest Russian events in the innovation field is St. Petersburg International Innovation Forum. In 2015 the Forum was held under the motto: «Ahead of tomorrow!». In Congress and business events the representatives of 43 cities of Russia, 384 foreign specialists from 17 countries of the world took part. Congress programme dedicated to the most important issues of innovative development included more than 60 business and presentation activities with the number of participants more than 3.8 thousand people. During the Forum eight major international and interregional agreements were signed. The discussions and round tables were focused on estimation of the latest technological solutions created by Russian innovators, attraction of investments and development of innovative education in Russia and abroad.

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Within the Forum the Business Contacts Exchange worked. For three days of the Exchange work more than 550 business meetings and negotiations with representatives of research and design organizations, investment companies, business and power were organized. The educational and entertainment area for students was organized in the Forum for the first time. It was devoted to the study of professions of the future including robotics, also management, Economics, obtaining skills in team work. Additionally for this target audience thematic workshops, excursions and lectures were conducted. Within the inter national for um of innovative development «Open Innovations» held in Moscow in the period from 28 October till 1 November 2015, the exposition of St. Petersburg witch presentations of 10 high-tech organizations of the city was organized.

The contest «Best Innovative Product» In order to stimulate innovative activities in St. Petersburg and to expand the traditional market requirements and to form the new ones for innovative products of subjects of industrial activity of St. Petersburg annually the competition with the award from the Government of St. Petersburg for the best innovative product is held. Resolution of the Government The award is given in the following categories: of St. Petersburg ● Best innovative product in the sphere of construction № 607 dated 17.07.2014 and housing; «On St. Petersburg ● Best innovative product in the sphere of energy; Government Prize ● Best innovative products in the sphere of industrial for the best innovative purposes; product» ● Best innovative product in the sphere of transport; ● Best innovative product in medical and social sphere. In 2015 the Contest received 43 participant applications. The final stage of the competition with product presentations o f t h e 12 f i n a l i s t s o f t h e c o m p e t i t i o n t o o k p l a c e w i t h i n S t . P e tersburg International Innovation Forum.

The contest «Patent of the year» In order to identify and encourage the most successful and advanced developments, enhance legal awareness of right holders (individuals and legal entities) and develop their practical skills in the sphere of work with the objects of intellectual property the competition «Patent of the year» was held for the first time in 2015. The winner was RESEARCH AND PRODUCTION ASSOCIATION INNOVATEKH LLC (technology of general mechanical rubber products processing).

Regional stage of Russian startup tour 2015 In St. Petersburg, together with the Fund «SKOLKOVO», The Fund for assistance in development of small forms

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o f t h e e n t e r p r i s e s i n s c i e n t i f i c a l l y t e c h n i c a l s p h e r e , F e d e r a l Agency for Youth Affairs, the Association of innovative regions of Russia, Agency of strategic initiatives Committee for Industrial Policy and Innovations of St. Petersburg a regional stage of all-Russian startup tour 2015 was held. The purpose of the event is to identify promising innovative solutions and to help young developers create own development strategies. During the event the contest of innovative projects in the sphere of high technologies and the formation of the region startup communities of young entrepreneurs, investors, students was held. «Novoorlovskoe» The participants presented the innovative projects to the experts of development institutions in four areas in the spheres of innovation development of economy and industry: the informational, biomedical, energy efficiency and new industrial technologies and materials.

«Neudorf» Development of Innovation Infrastructure

St. Petersburg Special Economic Zone of Technology and Innovation Type St. Petersburg continues to actively work on development of Special Economic Zone of Technology and Innovation Type ( h e r e i n a f t e r – S E Z ) , c r e a t e d a c c o r d i n g t o D e c r e e o f t h e G o v e r n m ent of the Russian Federation № 780 dated 21.12.2005. SEZ is located at two platforms: Neudorf at the Petrodvorets FACTS AND FIGURES District and Novoorlovskoe at the Primorsky District of St. Petersburg. The total area of SEZ is 129.3 hectares. For further development of SEZ and due to the increased concern of the investors in projects realization at Novoorlovskoe platform, it is planned to add 52.9 hectares of land to this site. SEZ PLATFORMS SEZ – is a unique environment for active development and innovation business, R&D products development and bringing Neudorf: them to the industrial production with further launch on both Russian and international markets. The focal areas of SEZ are information technologies Area – 18.9 hectares and communications, pharmaceuticals and health technology, energy and precision engineering. The combination of state preferences, skilled staff and growing Novoorlovskoe: needs in high-tech solutions makes the technology and innovation zone attractive for manufacturers of high-tech products. Throughout the implementation of the project well-paid working Area – 110.4 hectares positions are brought into being, an additional opportunity to invest in high-tech industry emerges. The financial support for creating of SEZ social, transport and engineering infrastructure facilities is provided according to the intergovernmental agreement with federal and regional budget funds.

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At present Neudorf SEZ platform is equipped with engineering and transport facilities required for the initial stage of the SEZ platform. A customs station and a business centre were built. Works on the construction of engineering and transport infrastructure facilities are underway at Novoorlovskaya platform. At the Novoorlovskaya SEZ platform a technology transfer centre (hereinafter – TTC) with a business incubator was put into operation in April, 2016, with pilot factories, laboratories, offices, a conference-hall, a R&D centre and a data service unit. The TTC will be one of the key elements in the innovative infrastructure of the city and has to become a link between science and business. In 2015 there were amendments to the Federal law «On special economic zones of the Russian Federation», in accordance t o w h i c h t h e r e s t r i c t i o n s o n t h e n u m b e r o f t h e s i t e s f o r p o t e n t ial SEZ were removed and it became possible to carry-out the industrial production in SEZ of a technology and innovation type. These changes will allow as a support measure for manufacturers to install a regime of SEZ on the already formed territories of the enterprises of St. Petersburg. Today 38 residents are registered in SEZ, among which are high-tech industries: power engineering, instrumentation, pharmaceuticals and health technology, IT and telecommunications. Over 1.8 thousand jobs were created; a total volume of the investments made by SEZ residents in 2006-2015 is more than 16.7 billion rubles. According to the prospective development plan of SEZ within next 10 years the number of SEZ residents will be increased to 55.

Benefits for SEZ Residents FACTS AND FIGURES At the Special Economic Zone of technology and innovation type of St. Petersburg the following benefits are established for the residents: ● tax privileges (premium exemption – 14% instead of 34%, as of 01.04.2016 there are up to 2017), income tax (13.5% instead of 20% into the regional registered in SEZ platforms: budget – for the whole period of SEZ existence), exemption from land tax (for 5 years), exemption from transport at the Neudorf – tax (for 5 years from the moment of the motor vehicle registration, excluding water and air vehicles), property 12 residents tax (for 10 years from the date of the estate tax registration certifi cate); ● utility connections to residents sites; at the Novoorlovskoe – ● possibility of cooperation with research centres (use of their human resources and research facilities); 26 residents ● simplifi ed scheme of providing of a land plot, a possibility to buy the plot after the object was put into operation; ● availability of public infrastructure; ● preferential rental rate in the business centre; ● preferential grid connection (exemption from payment for technological connection to the power lines);

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● preferential customs treatment – tariff arrangement: free customs zone (a customs treatment when foreign products are placed and used inside the area of SEZ without any customs duties and VAT payments, as well as application to such products of any economic prohibitions or restrictions, established by the Russian Federation legislation on state regulation on foreign trade activities; whereas Russian goods are placed and used according to the conditions applied to the export in compliance with the export customs regime with payment of excise duties and without payment of export customs duties). Apart from the direct privileges for SEZ residents there is a number of measures for indirect support – investment consulting, the right to conduct construction of own objects and to conduct technology development activities at the rented area of the business centre at the Neudorf SEZ site, etc.

The Innovation Portal of St. Petersburg Portal «The Innovative St. Petersburg» – is a multipurpose communication platform for all subjects of the regional innovative system, main instrument of interaction and promotion of the city innovative projects. Main goals of the portal: ● information support of the subjects of industrial, scientific and (or) technical activities in St. Petersburg; ● administration of the innovative projects of the companies in St. Petersburg on all stages of their realization; ● providing of information interaction for the companies of innovative infrastructure and public authorities; ● providing of the communications of the participants of innovative activities in St. Petersburg; ● encouraging of the openness of the companies FACTS AND FIGURES of the St. Petersburg innovation infrastructure for population. To stimulate the innovative activity and to create the conditions for the import substitution there is a virtual platform «Subcontracting» at the portal, with the help of which the subjects of industrial activities can find contractors for mutual development of the production. more then On 01.01.2016 112 objects of the innovative infrastructure, over 570 industrial enterprises and 57 institutions of higher education 2000 users were registered at the portal «The Innovative St. Petersburg». are registered on the portal The total number of the users registered on the portal is more than two thousand. On average per day the portal is visited by over 100 users.

The Science Park of St. Petersburg in the sphere of high tech solutions Under the complex programme «Creation in the Russian Federation of the science parks in the sphere of high

Committee for Industrial Policy and Innovations of St. Petersburg Industry and Innovations of St. Petersburg 79 technologies» a certain project on creation in St. Petersburg of a science park in the sphere of high technologies (hereinafter – IT-Park). The main goal of this project – creation of a high quality IT business complex and the advanced development of the city’s infrastructure for the area of 56.4 hectares in Nevsky district of St. Petersburg. Today the works on external engineering infrastructure of the IT-Park have been completed, the designing of the building for the business incubator with a educational centre has been finished, a positive resolution of a state expertise has been received. The works on designing a administrative building for the IT-Park are underway. FACTS AND FIGURES Business Incubator Ingria For the period of designing and construction of the main objects of the IT-Park and to test the model of the functioning of the business incubator, a pilot project of a business incubator Ingria was implemented. The area The residents of the business-incubator as on the beginning of the IT-park is of 2016 were 73 companies, operating in different spheres of the economics, including power engineering and energy efficiency, instrument making, healthcare and biotechnologies. 56.4 hectares Business incubator Ingria offers small innovative companies aimed on the commercialization of the innovative products and developments the support in the following areas: investments, technologies, consulting, education, which are united into special programmes of the accelerated projects development – Residency, Distant Residency. As part of these programmes the following activities are being 73 companies performed: management of the residents’ projects, attraction of investments, marketing, cooperation with mentors, are residents conducting of joint training programme for young professionals, of the IT-park training with experts in the area of recruitment and individual as on 01.01.2016 consultations of the business incubator experts. In each of these directions there is a whole range of instruments which are successfully used in practice. Simultaneously the residents have the access to the starting infrastructure: equipped working places, meeting rooms, affiliate network services, etc. There is a programme on partnership with institutions of the higher education in the business incubator, a special programme for technological projects, international cooperation is developed, the Mentor club was established. Experts of the Mentor club give their recommendations and comments on the IT-projects of the business incubators’ residents, assist in the search for investors to implement those projects. According to the research that was held by UBI Global, an international rating agency, in 2015 the Residence Programme of Ingria business incubator was the sixth in the European rating of business incubators. In 2015 the residents of Ingria obtained 2 international patents and over 70 Russian patents, certificates and know-how.

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The Cluster Development Centre of St. Petersburg The operation of the Cluster Development Centre of St. Petersburg (hereinafter – CDC), formed on the basis of municipal development project OJSC «St. Petersburg Technopark», is aimed at ensuring effective cooperation between the enterprises of the city and scientific institutions, non-profit and non-governmental organizations, public authorities and local government bodies of St. Petersburg and investors to develop mutual cluster projects in St. Petersburg. The main areas of activities of CDC: ● methodical, organizational, consulting, expert-analytical and informational support for St. Petersburg clusters and cluster projects; ● design and implementation of projects on the development of clusters and cluster projects; ● holding exhibitions and communicative events (forums, conferences, seminars, round tables); ● collection and processing of the data on cluster d eve l o p m e n t i n S t . Pe t e r s b u r g a n d t h e R u s s i a n Fe d e r a t i o n; ● support of cluster projects and pilot innovative territorial clusters. Currently the CDC supervises the activities of 9 territorial clusters of St. Petersburg.

The Prototyping Centre In 2015 on the base of OJSC «St. Petersburg Technopark», the Prototyping Centre was created (hereinafter – Centre). The activities of the Centre are aimed to optimize the process of development and production in order to accelerate the introduction of advanced technologies and process equipment for complex decision problems of modernization and technological development of the enterprises of the IT industry and other high-tech industries. At present the Centre provides services in four main areas: ● additive prototyping; ● industrial design; ● prototyping of automatic devices; ● virtual environment. The Centre is equipped with all required material-technical supply and software to assist small and medium-sized businesses in creating layouts, prototypes, pilot models and other low-volume production on the stages from computer designing to manufacturing.

Regional Engineering Centre on Microreactor Synthesis of Active Pharmaceutical Ingredients In 2016 on the base of OJSC «St. Petersburg Technopark» a regional engineering centre on microreactor synthesis

Committee for Industrial Policy and Innovations of St. Petersburg Industry and Innovations of St. Petersburg 81 of active pharmaceutical ingredients is planned to be created (hereinafter – the Engineering Centre). The implementation of the project on creation the Engineering Centre will create technological capacities for highly efficient import substitution and faster growth of pharmaceutical industry.

Support of the Cluster Development in St. Petersburg The cluster approach is taken as a basis of implementation of the St. Petersburg industrial policy. The development of clusters allows to ensure optimization of the domestic enterprises in the production chains, contributing to the growth of import substitution and localization of assembly enterprises, as well as – to increase the competitiveness of domestic goods. Main goals of cluster policy: ● creating conditions for effective organizational development of clusters, including the identification of cluster participants, development of the cluster strategy; ● providing effective support for projects aimed at improving of the competitiveness of cluster members, because of focusing and coordination, taking into account the priorities of clusters development, measures of economic policy: - support of small and medium-sized businesses; - innovative and technological policy; - policy of attracting of investments; - policy on export development; - development of transport and energy infrastructure; - development of industries. The Government of St. Petersburg implements measures to support the development of already formed clusters, as well as the measures to encourage the formation of new cluster groups.

Cluster of Pharmaceutical and Medical Industries, Radiation Technologies The main activity of the cluster is the creation of conditions to implement an accelerated innovative model of the development of the cluster enterprises, including small and medium-sized businesses. Providing such conditions have to increase the production of high technology medical and pharmaceutical goods that can successfully compete with foreign counterparts in the Russian and international markets. There are more than 130 companies in the cluster, many of them being the leaders of the Russian and international markets, having a high potential for innovative development.

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The biggest pharmaceutical companies of the cluster are: CJSC «BIOCAD», «Scientific Technological Pharmaceutical Firm «POLYSAN» Ltd, GEROPHARM, Ltd, JSC «WERTEKS». About 100 items of drugs, diagnostic and laboratory equipment, therapeutic medical equipment, as well as software and databases for medical institutions are being manufactured at the enterprises of the cluster. In 2015 the cluster companies implemented several investment FACTS AND FIGURES projects on construction of new pharmaceutical enterprises. JSC «WERTEKS» put into operation the first stage of the full cycle production on manufacturing of the pharmaceutical products at the Novoorlovskaya SEZ platform. The first stage more than production quantity is scheduled to be about 50 mln packages of finished products per year – of the generics of original products and brand-generics of WERTEKS. 130 companies In June, 2015 the largest international pharmaceutical are the participants company Novartis opened its plant, LLC Novartis Neva, at the Novoorlovskaya SEZ platform. The new enterprise will of the Cluster of the produce approximately 1.5 billion units of goods per year. Pharmaceutical and «CYTOMED» J.S. Co is constructing a medical-biological Medical Industries, research and production centre. The plant is scheduled to be open Radiation Technologies in 2017. The company has 10 patented peptide compositions in its portfolio. Among the main brands – remedies normalizing the immune system functioning, remedies that are used in the therapy of endocrine disorders of various origins, as well as a remedy for the prevention and early treatment of influenza and respiratory viral infections. The following companies are also implementing the projects on creating of pharmaceutical productions: ● JSC RCI SINTEZ; ● Vital Development Corporation OJSC; ● LLC «NEON»; ● Ltd «Samson-Med». In St. Petersburg a unique scientific base has been formed for the research in all fields of pharmacy and medicine, combining the potential of leading educational institutions and scientific organizations such as the St. Petersburg State Chemical Pharmaceutical Academy, St. Petersburg State Pavlov Medical University, St. Petersburg Pharmaceutical Institute and others. The St. Petersburg State Chemical Pharmaceutical Academy is now actively pursuing modernization and in the nearest future plans, in cooperation with the Research Institute of Influenza to create a centre on the development of immuno-biological preparations and vaccines. In order to solve the personnel problems the Interuniversity Research Centre was created unifying the potential of the leading specialized higher institutions. Supported by the Government of St. Petersburg the international partnering – forum «Life Sciences Invest. Partnering Russia» is held annually, aimed at supporting federal initiatives for the development of the pharmaceutical market,

Committee for Industrial Policy and Innovations of St. Petersburg Industry and Innovations of St. Petersburg 83 as one of the key areas of economic development. In 2015, at the plenary session of the forum the prospects of development of pharmaceutical science and education at the present stage of development were discussed, as well as current issues of inter-university cooperation, scientific and personnel support process for the production of innovative drugs, principles of construction and development of communications platforms, educational institutions networks and research organizations. The Agreement was signed at the Forum between the Government of St. Petersburg and the Non-commercial partnership in the development, production and circulation of drugs and medical equipment «Medical and Pharmaceutical Projects of the 21st Century» on the establishment of the industrial cluster «Medical and pharmaceutical cluster of St. Petersburg». The agreement will allow the cluster to receive financial support from the Ministry of Industry and Trade of the Russian Federation. As part of the forum there was organized a presentation exposition, where the domestic pharmaceutical companies – the group of companies GEROPHARM, Ltd, CJSC «BIOCAD», «Scientific Technological Pharmaceutical Firm «POLYSAN» Ltd, LLC «GROTEX» and JSC «Pharmaceutical Factory of Saint Petersburg» – presented a wide range o f p h a r m a c e u t i c a l s a n d m e d i c a l p r o d u c t s , i n c l u d i n g n e w p r o d u c t s and future developments.

St. Petersburg Cluster for the «Development of Information Technologies, Radioelectronics, Instrumentation, Communications and Telecommunications» The cluster is created on the basis of enterprises and organizations of the St. Petersburg Association of enterprises of radio electronics, instrumentation, communications and information telecommunications and non-profit partnership RUSSOFT. The main activities of the cluster: ● carrying out research and development work on various topics of information technology; ● services on implementation of the projects, requiring software development and software engineering; ● production of systems of integrated security and energy efficiency at the facilities of transport, energy, industrial, and housing and utilities infrastructure of the Russian Federation; ● development and production of highly reliable communication systems and information and telecommunications for urban governance; ● development and production of automated systems of energy and resource efficiency of the municipal services of St. Petersburg and the subjects of the Russian Federation;

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● development and production of automated electronic inventory systems, traffic management and transport logistics based on the research vessel «GLONASS» for St. Petersburg and the regions of the Russian Federation; ● development and production of automated security systems FACTS AND FIGURES for the urban economy of St. Petersburg and the Russian Federation. The radio-electronic cluster sector consists of 95 organizations, among which the leading positions are occupied by such companies as: LLC «Avangard», more than JSC «SVETLANA», JSC «Zavod im. Kozitsky», JSC «SPA «Impuls», JSC «Radar mms», JSC «Masshtab», 160 companies JSC «SRI «Vektor». Also, the cluster consists of higher education institutions and colleges of St. Petersburg which are participants provide education of highly qualified specialists for the cluster of the St. Petersburg companies. cluster As part of the programme on the development for the «Development of innovative territorial cluster «Development of information of Information technology, electronics, instrumentation, communications, Technologies, and information and telecommunications St. Petersburg» for 2015 and the planning period of 2016-2017 the cluster Radioelectronics, enterprises have implemented a number of pilot projects Instrumentation, in St. Petersburg and other regions of Russia: Communications ● a comprehensive system of environment monitoring and Telecommunications» and video surveillance in Krasnoselsky district of St. Petersburg; ● a system of monitoring and control for domestic waste; ● a system of dynamic control of the technical state of the turbines and hydroelectric protective structures; ● a monitoring system for underground fresh water supplies; ● control of the dynamic state and satellite monitoring of landslides using GIS «Glonass»; ● a monitoring system for dynamic condition of specifically critical objects. In 2015, a pilot project was started to improve the security on the territory of a particular area of the city «Safe intelligent city – Kronstadt». The project involves the creation of an integrated information system of the city of Kronstadt by 2017. The project has the five following main components of an integrated system: a technological security, environmental security, transport security, public safety, energy efficiency and resource conservation. The project aims to increase the quality of life of the citizens, to improve the social climate, the development of innovative technologies and to increase the investment attractiveness of the city.

Territorial Industrial-Innovation Cluster «St. Petersburg Composite Cluster» The purpose of this cluster creation – is to increase the competitiveness of the cluster members

Committee for Industrial Policy and Innovations of St. Petersburg Industry and Innovations of St. Petersburg 85 a n d b y t h e e n d o f 2 0 2 0 t o t a k e l e a d i n g p o s i t i o n s i n S t . P e t e r s b urg on the market of composite products and technologies, providing major industries (shipbuilding, power engineering, transport engineering), housing and communal services, construction, transport infrastructure with modern high-tech composite products. The largest enterprises of the cluster are: Krylov State Research Center, LLC «Plastic processing plant named after «Komsomolskaya Pravda», JSC «Sredne-Nevsky shipyard». The main products of the cluster are: ● light and optical instruments and equipment of lightweight structures with improved performance characteristics; ● nanostructured composite coating – technology of metal protection; ● construction of industrial facilities of various types. Transport Machine-Building Industrial-Innovation Cluster «Subway and Railway Equipment» The cluster specializes in the supply of products and provision of services for the subway and railway companies. The largest industrial enterprise in the cluster is Svetlana-Optoelectronics JSC. The main products and services of the cluster: ● bogies for subway cars and their components; ● spare parts for serial and new models of the subway rolling stock; ● spare parts for escalators; ● design and manufacture of interiors and exteriors of the vehicles; ● energy-saving LED products. Ongoing projects: ● manufacturing and supply of spare parts of rolling stock and escalators for the State Unitary Enterprise «St. Petersburg Metropoliten»; ● production of the station doors for the open type subway stations of the SUE «St. Petersburg Metroploiten»; ● manufacturing of the permanent magnet DC motor. Cluster of the St. Petersburg Tool-Making Industry The aim of the cluster members consolidation is ensuring of the life cycle for the machine building industry «Research and Advanced Development – Launching into manufacture – Mass production», as well as the active participation in creating a modern market of innovative high-tech equipment and technology services for the leading sectors of the economy and industry of the Russian Federation.

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The cluster specializes in the design and manufacture of machine-tool equipment, providing engineering and marketing services. The largest enterprises of the cluster are: Kirov-Instrument Ltd, OJSC Kirovsky Zavod, Kirov-Stankomash Company. Cluster implements an educational project on creation of a special department «Automation of production processes in the machine tool industry» in the Institute of Metallurgy, Mechanical Engineering and Transport of the St. Petersburg State Polytechnic University of Peter the Great. The special department is created for professional adaptation of students, developing their special skills required in future to work effectively for the companies of St. Petersburg, primarily those included in the «Cluster of the St. Petersburg Tool-Making Industry» and «St. Petersburg Composite Cluster». It is also planned that the department will hold joint research and development works aimed at the development of innovative projects. «Clean Technologies for the Urban Environment Cluster» The purpose of the cluster – a consolidation of the enterprises operating in the industrial and manufacturing products with the use of clean technologies in the production and supply chains in order to create environmentally friendly and safe urban environment on the territory of St. Petersburg. The Cluster has implemented the project «Improving the energy efficiency of standardized blocks of flats of mass 137 Series», in order to: ● improve the energy efficiency of the housing stock of St. Petersburg through the introduction of highly energy-efficient technologies and measures; ● promote energy-saving among the population. High Technologies and Engineering Cluster High Technologies and Engineering Cluster – is a non-commercial partnership of high-tech research and production, engineering and IT-companies, research institutions, universities, as well as a number of public organizations in the sphere of engineering and high technologies development. The main objective of the cluster is the consolidation of its members to assist the development of engineering and high-tech at the industrial enterprises of St. Petersburg through the integration of engineering and hi-tech companies and establishing of a dialogue between the business community, the authorities, non-governmental organizations and other participants of economic relations. The largest industrial enterprise of the cluster is JSC «TELROS».

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Cluster of Innovation Development in Power Engineering and Industry The purpose of the cluster – the implementation of projects for the introduction of innovative and import-substituting equipment in the fuel and energy complex of St. Petersburg, as well as improving the competitiveness of cluster members. The largest industrial enterprise of the cluster is NPF RAKURS, OOO. The main services of the cluster are the development and implementation of: ● transformer monitoring system; ● process control systems; ● transformer control system; ● energy-saving equipment for public catering. Jewelry Cluster The main goal of the cluster participants consolidation is to create the conditions for securing the leading position of the jewelr y industr y of St. Petersburg in the Russian Federation, the development of international cooperation. Main activities and products of the cluster: the production of «gold weight»; manufacture of jewelry with precious stones and diamonds; Orthodox jewelry art; silver plate; stone-cutting products; home furnishings; badges and coins. The largest industrial enterprise of the cluster is the JSC «Kast». In 2016 a project launching is planned to create a Technopark of the St. Petersburg Jewelry Cluster, which will increase the volume of production, to ensure the security of the cluster’s organizations.

Interaction of public authorities of St. Petersburg with organizations in formulating and implementing of industrial policy

The essential condition for the effective industrial policy is a co-ordination of operations of public authorities, businesses and public organizations. For these purposes, according to the Law of St. Petersburg «On the fundamentals of industrial policy of St. Petersburg» a permanent advisory body has been established – St. Petersburg Industrial Council, which is headed by the Governor of St. Petersburg. The Council consists of the representatives of legislative and executive authorities of St. Petersburg, non-profit

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organizations, representing the interests of industrial enterprises. The main activities of the Council include: ● p u b l i c e x a m i n a t i o n o f d r a f t l a w s o f S t . P e t e r s b u r g i n t h e f i e l d of industrial policy and projects of St. Petersburg industry development programmes; ● recommendations to the the executive authorities of St. Petersburg in determining of the industrial policy priorities. Organizational and technical support of the Council activities is provided by the Committee for Industrial Policy and Innovations of St. Petersburg. The activities of the Public Council under the Committee for Industrial Policy and Innovations of St. Petersburg facilitates the effective and constructive dialogue between representatives of civil society with the executive authorities to create favorable conditions for industrial development, innovations, the formation of the investment policy of the city. In order to promptly solve the problems arising at enterprises, there was established a special Main office to work with industrial enterprises which have a significant impact on the economy of St. Petersburg. Pursuant to the Decree of the President of the Russian Federation № 31 dated 23.01.2015 «On additional measures to combat the illegal turnover of industrial products» in St. Petersburg a Commission to counter illegal turnover of industrial products was created. In November 2015 a special Expert Board was formed under the Commission, consisting of the representatives of the leading companies and public organizations of industrial enterprises of St. Petersburg.

Committee for Industrial Policy and Innovations of St. Petersburg Industry and Innovations of St. Petersburg 89 CONTACT INFORMATION

Committee for Industrial Policy and Innovations of St. Petersburg NOTES

16 Voznesensky pr., St. Petersburg, 190000 576-0019 fax 576-0012

Chairman of the Committee 576-0002 Maxim S. MEIXIN fax 570-3622

First Deputy Chairman of the Committee Mikhail V. PENZIEV 576-0373

Deputy Chairman of the Committee Alexei V. VASILYEV 576-2537

Deputy Chairman of the Committee Sergey A. TAL’NISHNIKH 576-0916

Committee for the Development of Business and Consumer Market of St. Petersburg

16 Voznesensky pr., St. Petersburg, 190000 570-0070 fax 570-0071

Chairman of the Committee 576-3636 Elguiz I. KACHAEV 576-3853 fax 576-0023

St. Petersburg State Official Institution «Directorate for support of industrial projects» 88-90 A Griboedov Canal Embankment, St. Petersburg, 190068 Alternative Director 320-5016 Alexander D. VEKSLER fax 320-5015

St. Petersburg State Institution «Centre for Business Development and Support» Businessman’s Home, 46/5 Mayakovskaya str., St. Petersburg, 191014 Director 985-5009 Daniil V. STARKOVSKY fax 372-5270

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NOTES St. Petersburg Non-Commercial Organizations St. Petersburg Union of Industrialists and Entrepreneurs 1 Smolny proezd, Letter B, St. Petersburg, 191060

President 576-7661 Anatoly A. TURCHAK fax 576-7176

First Vice-president, General Director of the Executive Directorate Mikhail A. LOBIN 576-7010

St. Petersburg Industrial Enterprises Association 68 Malookhtinsky pr., office 303, St. Petersburg, 195112

444-9514 President tel/fax Valery A. RADCHENKO 323-1102 fax 444-9513

St. Petersburg Association of radio-electronics, instrument-engineering, means of communication and info telecommunications enterprises 72 Kondratyevsky pr., St. Petersburg, 195271

President 540-1550 Valery A.SHUBAREV fax 545-3785

545-0570 General Director (extension. Mikhail M. SKATCHKOV 83-19) т/ф 545-3785

St. Petersburg Chamber of Commerce and Industry 46-48 Tchaikovsky str., St. Petersburg, 191123

President 273-4896 Vladimir I. KATENEV fax 272-8612

St. Petersburg Union of Entrepreneurs 16 Stachek pr., St, Petersburg, 198095

President 252-4350 Roman K. PASTUKHOV fax 252-3950

Committee for Industrial Policy and Innovations of St. Petersburg Industry and Innovations of St. Petersburg 91

Public Council on Small Business Development under NOTES the auspices of the Governor of St. Petersburg 46/5 Mayakovskaya str., St. Petersburg, 191014

Chairman Elena O. Tsereteli 331-5813

St. Petersburg Union of Food Industry Enterprises 43 Vyborgskaya embankment, St. Petersburg, 194044

President 309-7070 Grigory P. ZABROVSKY fax 746-7003

Vice-President, Executive Director 777-7980 Igor F. PODLIPENTSEV

St. Petersburg Association of Bakers 8 Aerodromnaya str., St. Petersburg, 197348

President Alexader S. ZORIN 7 (921) 301-7757

Executive Director Alexander V. MOREV 7 (921) 301-7757

All-Russian Non-Governmental Organization of Small and Medium-Sized Businesses «OPORA RUSSIA» IZ Parnas, 2 First Verkhniy per., St. Petersburg, 194292

Vice-President, Chairman Dmitry N. IVANOV 592-8158 fax 592-8913

The Folk Art Crafts Association of St. Petersburg and Leningrad region 12 Chelieva str., St. Petersburg, 193230

Chairman of the Board Vadim P. SAVCHENKO 952-0671

2016 92 Contact information

NOTES St. Petersburg and Leningrad region Association of Shipbuilders 7 Promyushlennaya str., St. Petersburg, 198095

Vice-President Leonid G. GRABOVETS 786-1172

Public Organization Inter-Regional Association of St. Petersburg and Leningrad Region Trade Unions – The Leningrad Federation of Trade Unions 4 Ploschad Truda, St.Petersburg, 190098

Chairman 571-1375 Vladimir G. DERBIN fax 571-4401

U-form Non-profit Organization Fund for Industrial Development of St. Petersburg 26-28 Borovaya str., Letter A, St. Petersburg, 191119

Director Eugene Z. SHAPIRO 703-5049

Fund for Small and Medium Business Credit Assistance 2, Rimskogo-Korsakova pr., St. Petersburg, 190068

Executive Director Alexandra F. PITKYANEN tel/fax 640-4614

Fund for Venture Investment Development Assistance for Small Science and Technology Enterprises of St. Petersburg 16 Voznessensky pr., St. Petersburg, 190000

Executive Director Riffad A. ISLYAEV 640-9645

St. Petersburg Fund for Small and Medium Business Development 14 Izmailovsky pr., Office 316, St. Petersburg, 190005

General Director 325-8416 Sergey A. BALANEV fax 712-6607

St. Petersburg Business-Angels Organization 44 Dostoevskogo str., Building E, St. Petersburg, 191119

Chairman of the Partnership Luisa L. ALEXANDROVA 600-2187

Committee for Industrial Policy and Innovations of St. Petersburg SUPPORT MEASURES FOR THE ENTERPRISES OF ST. PETERSBURG

SUPPORT MEASURES FOR ENTERPRISES AT REGIONAL LEVEL Subsidies to the enterprises of St. Petersburg

Ser. N Subsidy Subsidiaries Subsidy limit 1 Acquisition of technological Large and medium-sized enterprises, registered Max 10 million RUB equipment in leasing on the territory of St. Petersburg and performing activities (80% – is given to Russian equipment, related to the manufacturing industry 50% to the imported equipment – from the total amount of the documented expenses made for the period from 21.11.2014 to 20.11.2016)

2 Conducting energy inspection and Large and medium-sized enterprises, registered Max 4 million RUB purchasing energy conservation on the territory of St. Petersburg and performing activities of them: max 1 million RUB is given to equipment equipment within the framework related to the manufacturing industry inspection and max 3 million RUB – to purchase of implementing energy-effi ciency of equipment measures and energy effi ciency (50% from the total amount of the documented expenses made improvement for the period from 01.01.2012 to 24.11.2016)

3 QMS certifi cation according to national Large and medium-sized enterprises, registered Max 400 thousand RUB and international standards on the territory of St. Petersburg and performing industrial (60% from the total amount of the documented expenses made activities for the period from 21.11.2014 to 20.11.2016)

4 Training, retraining and personnel Large and medium-sized enterprises, registered Max 2 million RUB development on the territory of St. Petersburg and performing industrial (80% from the total amount of the documented expenses made activities for the period from 02.12.2014 to 01.12.2016)

5 Participation in international Large and medium-sized enterprises, registered Max 750 thousand RUB exhibitions and fairs on the territory of St. Petersburg and conducting (expenses made for the period from 21.11.2014 to 20.11.2016) the following economic activities: Manufacturing, Research and Development in the fi eld of natural and engineering sciences.

93 Ser. N Subsidy Subsidiaries Subsidy limit 6 Conducting researches Large, medium-sized and small enterprises, registered Max 3 million RUB and (or) development work on the territory of St. Petersburg and performing (50% from the total amount industrial activities of the documented expenses made for the period from 01.01.2013 to 20.11.2016)

7 Legal protection of intellectual Large, medium-sized and small enterprises, registered Max 400 thousand RUB property and brand identity on the territory of St. Petersburg and conducting the following (50% from the total amount of the documented economic activities: expenses made for the period Mining Operation; from 01.01.2014 to 20.11.2016) Manufacturing; Production and Distribution of Electricity, Gas and Water; Research and Development in the fi eld of: – natural and engineering sciences; – social and human sciences

Subsidies to AIC enterprises of St. Petersburg

Ser. N Subsidy Subsidiaries Subsidy limit 1 For interest payment of short-term Legal entities, registered and operating on the territory Max 27.4 million RUB loans obtained in the Russian credit of St. Petersburg, legal entities which separate of them not more than 8.5 million rubles institutions Related to the production subdivisions are registered and operate on the territory from the budget of St. Petersburg (selling) of commodities, conducting of St. Petersburg, referring to agricultural commodity (for loan agreements operations, providing services producers, peasant (farm) enterprises, organizations carrying concluded in the period in the fi eld of agroindustrial complex out primary and (or) subsequent (industrial) processing from 01.01.2014 to 31.10.2016) in St. Petersburg of agricultural products Decree of the Committee for Industrial Policy and Innovations of St. Petersburg № 41-r dated 12.04.2016

94 Awards and Contests of the Government of St. Petersburg

Ser. N Awards and contests Subsidiaries Prize Fund 1 The award for increasing Large and medium-sized manufacturing enterprises, 35 million RUB the manufacturing productivity operating on the territory of St. Petersburg and registered at industrial enterprises as legal entity not later than 01.01.2012 1 prize – 20 million RUB in St. Petersburg 2 prize – 10 million RUB 3 prize – 5 million RUB 2 The award for creating high-tech Large and medium-sized manufacturing enterprises, 50 million RUB work places operating on the territory of St. Petersburg and registered as legal entity not later than 01.01.2012 1 prize – 25 million RUB 2 prize – 15 million RUB 3 prize – 10 million RUB 3 Contest «The Best Innovative Organizations, registered on the territory of St. Petersburg 6.25 million RUB Product» and realizing manufacture and implementing innovative products 4 nominations

Subsidies for small and medium-sized businesses of St. Petersburg

Ser. N Subsidy Subsidiaries Subsidy limit 1 Premises and equipment purchase Small and medium-sized businesses, registered Max 5 million RUB on lease and operating on the territory of St. Petersburg (50% from the total amount of the documented expenses made not earlier than 01.01.2010)

2 Subsidies for the costs of small and Small and medium-sized businesses, registered Max 350 thousand RUB medium-sized businesses conducting and operating on the territory of St. Petersburg (50% from the total amount of the documented expenses the activities in the fi eld of arts and made for the period from 01.01.2014 crafts to 31.12.2015)

3 Lending by commercial banks Small and medium-sized businesses, registered Max 700 thousand RUB of small and medium-sized and operating on the territory of St. Petersburg (90% from the expenses made businesses for current servicing according to the credit agreements made with the Russian credit institutions on or after 01.01.2012)

95 Ser. N Subsidy Subsidiaries Subsidy limit 4 Social entrepreneurship support Small and medium-sized businesses, registered Max 700 thousand RUB and operating on the territory of St. Petersburg (50% from the total amount of the documented expenses made not earlier than 01.01.2014)

5 Subsidizing part of lease rents of small Small and medium-sized businesses, registered Max 500 thousand RUB and medium-sized businesses, and operating on the territory of St. Petersburg (50% from the total amount of the documented expenses realizing manufacture in the fi eld made for the period from 01.01.2014 of light industry to 30.12.2015)

6 Certifi cation Small and medium-sized businesses, registered Max 350 thousand RUB and operating on the territory of St. Petersburg (50% from the total amount of the documented expenses made as of from 01.01.2011)

7 Exhibition and trade fair activities Small and medium-sized businesses, registered Max 350 thousand RUB and operating on the territory of St. Petersburg (50% from the total amount of the documented expenses made as of from 01.01.2014)

SUPPORT MEASURES FOR ENTERPRISES AT FEDERAL LEVEL

Ser. N Types of support To whom it may concern Subsidy limit 1 Target loans Loans are given on a repayable basis and under (Fund for Industry Development) co-fi nancing agreement. The applicant must provide at the rate of 5% per annum security for the loan amount and interest for the entire for the period from 5 to 7 years period (guarantee, bail). The Fund loans are given according to 4 programmes: • «Development projects», 50–500 million RUB • «Consortia projects», (depending on a project type) • «The programme of machine tools replacement»,

• «Leasing projects» 5–250 million RUB

96 Ser. N Types of support To whom it may concern Subsidy limit 2 Subsidizing part of expenses on R&D Enterprises implementing complex investment projects 50–570 million RUB with a total value from 100 million rubles to 2 billion rubles, (the maximum amount of subsidy is determined Regulation of the Government providing R&D in priority areas of civilian industry by Ministry of Industry and Trade of the Russian of the RF № 1312 dated 30.12.2013 Federation during the preparation of the competition for each technological direction of the a subsidy provided)

3 Subsidizing complex investment Enterprises which investment projects are For loans projects (compensation of the added to the list of complex investment projects in the currency of the Russian Federation – not more than expenses for current servicing in accordance with the priorities of civil industry 0.7 size the CBR key refinancing rate, eff ective of the loans given in 2014-2016 and is kept by Ministry of Industry and Trade on the date of the last payment of interest on the loan; for a period of not less than 5 years) of the Russian Federation in foreign currency – not more than the value, calculated on the loan, based Regulation of the Government on the rate of 4% per annum of the RF № 3 dated 03.01.2014

4 Support of investment projects Enterprises implementing the project on the basis Preferential bank lending carried out in the RF on the basis of project fi nancing, with a production site in the RF, from commercial banks of project fi nancing in one or more of the priority sectors of the economy ( selected in the prescribed manner) with a size (agriculture, manufacturing, municipal housing, transport of the interest rate of not more than the level sector, communications, manufacturing and distribution of «CBR interest rate for refi nancing loans of electricity, gas, water) to commercial banks + 2.5% per annum

Regulation of the Government The full cost of the project is not less than 1 billion rubles Provision of state guarantees of the RF and not more than 20 billion rubles for the indicated loans (in the volume of up to 25 % of the loan value) № 1044 dated 11.10.2014 Financing through borrowed funds: no more than 80% of the total cost of the investment project

97 Ser. N Subsidies To whom it may concern Subsidy limit 5 Subsidies for the part of creating Russian organizations which have passed the competitive 200–400 million RUB technological advance selection to have the right to get subsidies for complex (depending on the priority production areas: in development of basic production projects, implementation period of which does not exceed telecommunications equipment, computer technologies of electronic 5 years facilities, special technological equipment, components and electronic intelligent management systems) equipment of high priority.

Regulation of the Government of the RF № 109 dated 17.02.2016

6 Subsidies for the part of expenses Enterprises implementing a project on the basis of project For loans for current servicing of the loans fi nancing and having a manufacturing site on the territory in the currency of the Russian Federation – not more obtained in the Russian credit of the RF. than 0.7 size the CBR key refinancing rate, eff ective institutions for implementing projects A project implemented in a prioritized economic sector on the date of the last payment of interest on the loan; to create the industry infrastructure, (agriculture, manufacturing, residential construction, in foreign currency – not more than the value, including clusters in the fi eld of radio transport, communications,) production and distribution calculated on the loan, based on the rate electronics of power, gas, water). The full value makes up min 1 billion of 4% per annum and max 20 billion RUB. Leveraged fi nancing is provided Regulation of the Government for max 80% of the full value of the RF № 110 dated 17.02.2016

98 The edition was prepared by the Committee for Industrial Policy and Innovations of Saint Petersburg using the information of Petrostat and the Saint Petersburg Department of the Federal Tax Service

тел. + 7 812 576 00 02 факс + 7 812 576 00 12 e-mail: [email protected] www.cppi.gov.spb.ru