www.lenoblinvest.ru Contents Foreword by the Governor Tax benefits 14 of Leningrad region 3 Industrial parks 15 General information 4 Territory of advanced social and economic Advantages of investing development Pikalevo 16 in Leningrad region 5 Territory of prospective development near commercial Economy 6 seaport of Ust-Luga 17 Industry 8 Success stories 18 Investors support 10 Contacts 22 Front Office for Investor Relations 12 Foreword by the Governor of Leningrad region Leningrad region strives to be among the We are open for dialogue with potential most successful regions in Russia. In order investors, our rules are simple and clear for to achieve this, the regional government takes business. We maintain transparent conditions for specific steps aimed at attraction of investments successful business established in the region. and support for entrepreneurial initiatives. Since 2013 the Front Office for Investor Relations Our region is one of the leaders of the Administration of Leningrad Region has of Northwestern Federal District in terms been working for comfortable interaction with of economic development and one of the investors and investment projects support largest industrial centres in Russia. Due to its on “one-stop-shop” principle significantly contributing unique geographical location and diversified to improvement of investment attractiveness of the economy the region is progressively increasing region. the volume of shipped industrial products. Due to concerted efforts of the team One of the most important priorities defined of Leningrad region we move forward and make in Socio-Economic Development Strategy the region attractive not only for Russian, but also of Leningrad Region up to 2030 is industrial for foreign investors. And this is proved by the fact leadership. In order to enter top ten most that in 2019 the Ministry of Economic Development industrialized regions in the country, Leningrad of the Russian Federation declared Leningrad region creates industrial parks for localization region the leader among other regions in terms of new enterprises, provides tax benefits and of the quality of its investment policy and efficiency preferences for manufacturers who are ready of its management team. to go forward, construct, expand. Welcome to the territory of successful investments! Alexander Drozdenko Investor’s guide to Leningrad region 3 General information Murmansk (1,106 km) Borders with the European Union (Finland and Estonia) Arkhangelsk (878 km) Access to the Baltic Sea (through the Gulf of Finland) Lake Helsinki LENINGRAD Ladoga (246 km) REGION Oslo (1,165 km) Close proximity Tallinn to Saint Petersburg Baltic Sea (284 km) Stockholm Saint Petersburg (663 km) Moscow 4 seaports (598 km) Minsk (647 km) Berlin Pulkovo International Airport (1,593 km) (located in Saint Petersburg) Paris (2,612 km) 83.9 1.8 971 Rome thousand km² million people thousand people Madrid (2,814 km) total area population human resources (3,884 km) 4 Investor’s guide to Leningrad region Advantages of investing Murmansk (1,106 km) in Leningrad region Arkhangelsk (878 km) Efficient support measures for investors Favourable geographical location The Ministry of Economic Development of the Leningrad region has borders with Saint Petersburg – Russian Federation declared Leningrad region the the second largest city in Russia, with the European Helsinki LENINGRAD (246 km) REGION leader among other regions in terms of the quality Union (Finland, Estonia), is located only 600 km away Oslo of its investment policy and efficiency of its from Moscow – the largest city in Russia (1,165 km) Tallinn management team (284 km) Stockholm Saint Petersburg (663 km) Transport accessibility Second largest market in Russia Moscow (598 km) Leningrad region is the second largest Leningrad region together with Saint Petersburg transport and logistics hub in Russia located is the second largest consumer market in Russia Minsk (647 km) at the intersection of international transport with high purchasing power. The population Berlin corridors which allows carrying out multimodal of Leningrad region together with Saint Petersburg (1,593 km) transportations including marine transportations is 7.2 million people through the largest port in the Baltic Sea – Paris Ust-Luga (2,612 km) Access to skilled labour force Leningrad region is the second largest labour Rome market in Northwest Russia – labour force of the Madrid (2,814 km) (3,884 km) region is about 1 million people Investor’s guide to Leningrad region 5 Economy Structure of gross regional product in 2017 Ratings 36.3% 7.6% 1th place in the ranking of the quality Industry Real estate of investment policy in the regions transactions Ministry of Economic 13.7% Development Transport and 4.7% communications Agriculture 12% 15.4% 12th place in the National Regional Wholesale Other Investment Climate Ranking and retail trade (+8 positions in comparison with 2017) 10.3% Construction 4th place among Russian regions with the lowest investment risk, RAEX (Expert RA) GRP dynamics, RUB billion 56% GRP growth in 1,060* 2013-2018* Standard & Poor’s 965.8 BB+, forecast “Stable”: long-term credit rating 916.4 849.6 535.7 th 703.3 thousand RUB 5 place in the ranking of the regions 678.7 GRP per capita in 2017 in terms of achievement of high rates Ministry of Economic of increasing economic (tax) potential Development 2013 2014 2015 2016 2017 2018 *according to estimates of a territory 6 Investor’s guide to Leningrad region Structure of investments Investments, billion RUB share of investments 44% in GRP of the region 466.9 338.6 45% 9.8% 264.2 Transportation Real estate 253.6 225.9 466.9 and storage transactions billion RUB 178.8 15.1% 4% Manufacturing industries Construction 14.2% 11.9% 2013 2014 2015 2016 2017 2018 Power industry Other Foreign direct investment, billion USD th +26.8% place among all growth of investments 8 5.8 5.3 Russian regions 4.7 in the regional economy 4.1 in comparison with 2017 3.8 3.4 billion USD th 4.1 place among volume of foreign direct 6 all Russian regions investment over 9 months 2013 2014 2015 2016 2017 over 9 months of 2018 of 2018 Investor’s guide to Leningrad region 7 Industry 50 Population (thousand people) Leningrad region is one of the largest industrial centres in Russia Manufacture of food products, including beverages and tobacco Textile and clothing manufacturing Timber processing and manufacturing of wooden goods VYBORG SHIPYARD Pulp and paper production 28 Production of coke and 61 29 3RGSRUR]KVN\ oil products 3ULR]HUVN\ /RGH\QRSROVN\ 200 Chemicals industry 9\ERUJVN\ 399 9VHYROR]KVN\ Production of rubber and plastic goods 68 70 89 Metalworking production 6RVQRYRERUVN\ 7LNKYLQVN\ 106 9RONKRYVN\ /RPRQRVRYVN\ Production of other non-metallic .LURYVN\ 49 mineral commodities 73 62 128 %RNVLWRJRUVN\ 76 .LULVKVN\ Production of machines 7RVQHQVN\ .LQJLVHSSVN\ and equipment 52 9RORVRYVN\ 243 Production of vehicles *DWFKLQVN\ and equipment 42 72 6ODQWVHYVN\ Mining /X]KVN\ Production and distribution of electricity Production of electric, electronic and optical equipment 8 Investor’s guide to Leningrad region th The region occupies the 17 place among all subjects of the Russian Federation in terms of the volume of industrial production PRIORITY DEVELOPMENT AREAS OF LENINGRAD REGION: Industry is the base Share of industry in GRP of the regional 36.3% economy Oil, gas and Construction chemical industry complex 1.2 trillion rubles Growth of the total volume of locally value of export from produced and shipped 2017 to 2018 Automotive Food industry industry goods in 2018 26% Timber industry Mechanical complex engineering Energy complex Shipbuilding 104.9% > 500 > 140 industrial production active small, thousand people Metallurgical industry index in 2018 medium-sized work at enterprises in comparison and large industrial with 2017 enterprises Investor’s guide to Leningrad region 9 Investors support Front Office for Investor Industry Development Fund for Support of Entrepreneurship Relations of the Administration Centre of Leningrad Region and Industry of Leningrad Region, of Leningrad Region Microcredit Company Informational and consulting Support for enterprises in expansion Loans for implementation of projects support concerning of already existing and creation within the programmes: implementation of investment of new production plants by “Development projects” projects means of implementation of joint projects on the basis of industrial Dealing with issues concerning “Component parts” cooperation development of infrastructure and Depending on the sector loan amount provision of communications The main directions of work: is from 20 to 100 million rubles, loan development оf industrial term – from 1% to 5% Search and provision cooperation, creation and of information to investors about development of clusters, export investment sites according support, provision of personnel for to requirements of projects industry 10 Investor’s guide to Leningrad region Investors support Investment portal Information system Investment of Leningrad region Development Industrial parks and social media of Leningrad Region Up-to-date and relevant information Interactive map map.lenoblinvest.ru: Leningrad region supports about economic development establishment and operation available investment sites of the region and measures of industrial parks in order to of government support industrial parks increase the level of localization of production and to develop Investment portal www.lenoblinvest.ru is available