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BUSINESS MAP BUSINESS MAP OF RUSSIA OF RUSSIA Regional Supplement to the Newspaper «Ekomika i Vremya» 2010 For investors, enterpreneurs, and wide audience of readers Saint Petersburg: People, Resources, Opportunities Partner of the edition: Chamber of Commerce & Industry of St.Petersburg

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Transcript of dk11

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BUSINESS MAPBUSINESS MAPOF RUSSIAOF RUSSIA

Regional Supplement to the Newspaper «Ekomika i Vremya» 2010

For investors, enterpreneurs, and wide audience of readers

Saint Petersburg:People, Resources,Opportunities

Partner of the edition: Chamber of Commerce &Industry of St.Petersburg

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Saint Petersburg: People, Resources, Opportunities 3

From the Publisher

For

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People«If an investor wants to do business in Russia, it is better to start in St.Petersburg»Interview with Valentina Matvienko, Governor of St.Petersburg 4–5Petersburgers 6–7Statistics: age, education, family, job, income, and expenses

Resources

Finances 8–9Dynamics of the city budget under the infl uence of the fi nancial recession,

the priority direction of public fi nancing

Industry 10–11Current industry structure and plans for its modernization,

locomotives of economic growth

Transport 12–15Development of transport infrastructure, activities of major enterprises of the industry:

railways, waterways, airways; cargo handling

Economic Map 16–17Location of the largest enterprises of the city, zones of economic development,

major highways, major construction projects

Real Estate 18–21A review of the situation with residential, commercial, and offi ce real estate

Opportunities Innovations 22–23How the Complex Program on Implementing the Innovation Policy works in St.Petersburg

Tourism 24–25Hospitality Industry: Eyes on the client. Th e development of business tourism as a strategic goal of St.Petersburg Government

Th e recession enforced 26–27the busi ness «to open the eyes»Interview with Vladimir Katenev,

President of St.Petersburg Chamber of Commerce and Industry

Top 100 28–31

«BUSINESS MAP OF RUSSIA» Regional Supplement to the Newspaper «Ekomika i Vremya». 10 000 printed copies. Printed at ООО «ТК «Deviz». Address: Offi ce 4Н, 60 litera А, 17-ya Liniya V.O., St.Petersburg, 199178 Russia. Signed for printing 11.06.2010. Order № 2185. Handed over: deadline 21.00, actually 21.00. Newspaper «Ekomika i Vremya» is registered by North-Western Regional Offi ce at RF State Committee on Mass Media. Registered number П3300

Dear readers:Here is a new issue of «Business Map of Rus-sia» — a regional supplement to the news-paper «Ekonomika I Vremya [Economics and Time]». During the three years since the fi rst release of this edition, «Business Map» has gained a recognition of our loyal readers and those who are acquainted with the edition via the forums, exhibitions, and conferences, where it is also distributed on a regular basis. Recently, this project was bestowed a high-est public award — on March 25, 2010, the Chamber of Commerce of Russia and the Russian Union of Journalists proclaimed the «Business Map» the best regional edition of the country at the contest «Th e Economic Revival of Russia». When we started this project, the economic weather was favourable to business, and we were pleased to observe a trend of economic growth. Th en the reces-sion in many industries came, and we had to refl ect the stages of decline. Th is is natural for an edition, based on an objective analysis of the situation over extensive statistical data. Today the economy is starting to recover from recession, and in the next issue of «Business Map of Russia», devoted to St.Petersburg, a lot of data is given, witnessing this trend. But the problem of choosing the road for further development still is topical for our country that has been focused on their raw material wealth for too many years. In this sense, the example of St.Petersburg that traditionally remains a national fashion-maker in many spheres of life, is very important for Russia. Th e city is striving to gain a leading position in the modern sectors of economy and to become competitive on world markets, using its scientifi c and industrial potential. It is not about a separate companies: the goal is to put the entire megalopolis among the cities most liveable and favourable for business in the world. And this task of great complexity might be the idea uniting all Petersburgers. In this sense, the example of St.Petersburg that traditionally remains a national fashion-maker in many spheres of life, is very impor-tant for Russia. Th e city is striving to gain a leading position in the modern sectors of economy and to become competitive on world markets, using its scientifi c and industrial potential. It is not about a separate compa-nies: the goal is to put the entire megalopolis among the cities most liveable and favourable for business in the world. And this task of great complexity might be the idea uniting all Petersburgers.Th e global recession and its impact raised the question about the goals of the economic development once again, and very pointedly too. Th e economic model that considers the people as auxiliary material in the business plans, with the entrepreneurs and the state relaying their problems to the population, will always be doomed to instability. Th is is-sue will be distributed among the participants of St.Petersburg International Econo mic Forum. Largely thanks to the forums, our city became a ground of heated debates and important forecasts concerning the global economy. We hope that this forum will also demonstrate it, and reading will give food for serious estimations and conclusions of those who are willing to cooperate with St.Petersburg and Russia. We are grateful to the Chamber of Commerce & Industry of St.Petersburg, our partner in producing this issue. Hopefully, the Business Map will be helpful for you.Alexander Evseev, Editor-in-Chief, «Ekonomika i Vremya», General Manager, Publishing Company «RIAL»

Table of Contents

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4 Businness Map of Russia

People

— Which is the impact of the recession

on the living standards of Petersburgers?

What measures managed to keep the

political stability and social optimism of the

citizens?

— Th e global economic recession, of course, did not left our city sside and touched virtually all sectors of industry and municipal economy. But it can be said that Petersburg sustained the recession with greater ease than other regions of the Russian Federation. Th is happened for two reasons. First, over the previous years, we have accumulated the rich potential of economic and social development that has become a kind of safety cushion. Second, the government of the city took the anti-crisis measures in due time, which helped minimize the impact of the recession and stabilize the situation. Today the recession is on the wane, and, looking back, we can say to ourselves that all the steps we have taken were right ones. And life was even more optimistic than the most pessimistic scenarios.

Th is is evidenced by the dynamics of industry, small- and medium-scale businesses. Th is is confi rmed by increasing tax payments to the city budget, including personal income taxes and property taxes. Alignment of the situation and even moving forward are confi rmed by the growth of energy consumption.

Last year we had to adjust the budget, giving up some plans and projects. Th at said, the city had discharged and continues to discharge its social obligations. Today, the increasing incomes of the city allowed us to recalculate the budget anew, toward the less strain. Actually, we got the budget that we had in our «fat» years

— in 2007.Most importantly, the budget of 2010

provided extra assignments for the housing for veterans, the development of housing and communal services, health care and education.

«If an investor wants to do business in Russia, it is better to start in St.Petersburg»

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Today, the economic recession is on the wane in St.Petersburg, and, looking back, we can say to ourselves that all steps we have taken were right ones. And the life was more optimistic than the most pessimistic scenarios

In mid-2010, the economy of St.Petersburg with more and more confi dence shows the signs of moving forward, which indicate that the diffi culties caused by the global recession are overcome. The city withstood its pressure due to the measures taken by the government and business in due time. Now, there is every reason to go back to stable development, says Governor Valentina Matvienko.

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Saint Petersburg: People, Resources, Opportunities 5

Peoplefour companies are the heart of St.Petersburg automobile cluster — a completely new industry for St.Petersburg.

Th e next step is creation of other promising clusters, designed to become the locomotives of the St.Petersburg industry. Electronics manufacturing will be dealt by a high-tech cluster. Th is year we have opened a factory on the joint production of computers, Foxconn and Hewlett-Packard, which will be the basis of electronic cluster.

We are also creating a cluster of the furniture-making industry, and the domestic companies are ready to invest into its development. A pharmaceutical cluster that would produce the newest medications much demanded in the country and the city has great prospects too.

I would add that we continue to build a sea passenger terminal and major transport projects with the private investment involved. By the end of 2010, the investor will be determined to continue construction of the Western High Speed Diameter on terms of public-private partnership — a modern highway that will provide a reliable communication link between the north and south of the city. Its fi rst section, already built, has already helped to bring goods from the port to the federal highway, bypassing the historical city center

Traditionally, by the days of the Economic Forum a pavilion of St.Petersburg will be deployed at the exhibition complex «LenExpo», which will provide all the information about the life of the city, its needs and opportunities, the development of all sectors of the economy. Th e forum participants will be able to get fi rst-hand information about the projects that we are going to implement with our partners before all.

— One of the themes, which is currently

being discussed in Russia at the highest level,

is modernization. What are investing in this

concept the authorities of Petersburg?

— Our city is a largest industrial center of Russia. Our industry contributes a quarter of the gross regional product, and employs a third of the economically proactive population of the city. We realize that the modernization of the industry, bringing it into innovative rails reciprocates the fundamental interests of St.Petersburg and Petersburgers.

We are implementing a program of modernization of industry in St.Petersburg, adopted, by the way, one of the fi rst in Russia. Within the framework of this program, the enterprises receive fi nancial support — subsidies from the city budget to pay the interest on loans granted for the purchase of technological equipment. We assist in training and retraining of the personnel, in certifying the management systems as of compliance with national and international standards. Th e program includes the measures to promote the products of our enterprises in the Russian and foreign markets. Of course, we are interested in that, so to say, ceteris paribus, the St.Petersburg enterprises happen to be successful bidders and holders of the state order more often. Th is guarantees the full load of production capacities, employment, and tax revenues to the budget.

We have concluded a cooperation agreement with the corporation Rosnano that arrived to St.Petersburg seriously and permanently. We are already interacting with it by a number of joint investment projects to develop industries based on nanotechnology.

In the modernization of industry we stake, among all, to small-scale business that has been always distinguished by its mobility. Th erefore, promising innovative production often originates from the business incubators and research centers. We have launched

In particular, we are completing the second stage of starting complex of cancer hospital in Pesochnaya, and fi nishing the repair of the children’s hospital named after Rauchfuss

Th e city requirements are growing. Th e fi nancial group of the city government is facing a clear objective: to fi nd new, additional opportunities to replenish the treasury.

— What is the role the 14th International

Economic Forum plays to improve the

investment attractiveness of Russia and

St.Petersburg?.

— I have said it more than once: if an investor wants to start their business in Russia, it is better to start in St.Petersburg. And holding such large-scale international events as the St.Petersburg Economic Forum, of course, increases the confi dence of foreign investors to our city and our country.

I have said it more than once: if an investor wants to start their business in Russia, it is better to start in St.Petersburg. And holding such large-scale international events as the St.Petersburg Economic Forum, of course, increases the confi dence of foreign investors to our city and our country.

In addition, in the days of the forum, many cities make presentations of their projects and opportunities. Th us, they are able to directly demonstrate the capabilities of their regions.

— Which measures are taken by the autho-

rities of the city to build in St.Petersburg

comfortable business envi ron ment, to at-

tract Russian and foreign investors?

St.Petersburg is known for a very favourable investment climate. Th is is not just my opinion — it is the estimaion of the reputable international rating agencies. We are doing everything to ensure that the investors who came to our city would have all working conditions. It is not by chance that many world-famous companies choose St.Petersburg as a site for their business

St.Petersburg has a number of competitive advantages. It is the largest port on the Baltic Sea, the intersection of maritime and aerial routes and railways, connecting Russia and Europe. Petersburg initially had considerable technical, educational, and scientifi c potential. But the investors are choosing our city not only for those reasons, but also because we have created a comprehensible, transparent, and equal for all «rules of the game» that remained unchanged for years. Th ere is also a stable social situation in St.Petersburg, which is very important for investors. To avoid procrastination with the documents, we keep to the principle of «single window». And the largest strategic projects, vital for the city, are monitored in a «manual mode».

Today, we have deployed two sites of special economic zone of technology-innovative type, and created a technopark. Residents of special economic zone, a tax heaven where the preferential tax treatment is applied, are dozens of companies — both domestic and foreign.

Here are some fi gures. Th e volume of foreign investment in the economy of St.Petersburg in 2009, despite all the diffi culties associated with the economic recession, stayed at the level of 2008 — about $5.5 billion. Th is makes 7% of all foreign investment in Russia. Over the past year we have increased the share of direct investment in the city’s economy — up to 25% of all investments. It speaks volumes about the dynamic pace of development of the real sector of the economy.

Today, we have a large number of foreign brands presented. Th is includes such world-famous companies like Bosch, Siemens, British American Tobacco, Technopolis, Scania, Toyota, Nissan, General Motors, Hyundai. Th e last

17 programs to support small businesses, such as the program «Lease of fi xed assets» and the program «Outsourcing». And to support the small innovative enterprises, we have established «Regional Venture Fund for Investments into Small Enterprises in Scientifi c and Engineering Sphere».

— St.Petersburg is one of the most attractive

cities in the world for the business tourism

and educational tourism. Is there any the

program to strengthen the opportunities of

tourism and recreation in the city?

— Th e importance of continued development of hospitality industry in St.Petersburg is due to its signifi cant contribution to the city’s economy and the positive multiplicative eff ect it has on other sectors of the economy.

In 2005, the city government adopted a program of promotion of St.Petersburg as a tourist center. Its goal is to make our city one of the 5 biggest tourist centers of Europe, annually visited by, at a minimum, 5 million tourists. St.Petersburg has closely approached this target — 4,8 million visitors were received in 2009.

Against the weakening of tourist activities in Russia and in the world, the incoming fl ow of tourists in St.Petersburg rests at the same level, and we consider this a great success.

Positive impact on growth of the tourists infl ux was ensured by St.Petersburg steps taken to develop appropriate infrastructure.

We are building the only dedicated passenger terminal in Russia. Its passenger throughput in the future will exceed 1.5 million people a year. On April 21, 2010, a ferry line St.Petersburg–Helsinki was launched. Th is is especially important for St.Petersburg, as the ferry is designed for year-round operation able to smooth out the problems of seasonality in the St.Petersburg incoming tourism

A steady growth of the number of tourists arriving into the port was made possible thanks to the federal law passed by a motion of St Petersburg, that provided the possibility of visa-free entry and 72-hour sojourn in the Russian Federation for foreign citizens coming into our country within tourist groups via the ferry.

Th e eff orts to increase tourism fl ows must be combined with creating the comfortable conditions for tourist accommodation. Th erefore, the program of development of hotel infrastructure is actively working in St.Petersburg. St.Petersburg is Russia’s leader by the number of hotels represented in the online reservation systems — about 300 hotels against 150 in Moscow.

In 2010, the implementation of the current program of tourism development is completed. To ensure continuity and consistency in the development of tourism, a new program is being elaborated for the period until 2016, because under current conditions the competition for tourists is getting tough and requires considerable eff ort to attract them. Th is is not only promotion, but also the necessary condition for providing a tourist-oriented product competitive as of its price.

Largely thanks to the Economic Forum and other major international events, Petersburg not only improves its own investment attractiveness, but certainly makes the investment climate in Russia more favourable

partner of the edition: Chamber of Commerce & Industry of St.Petersburg

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6 Businness Map of Russia

People

The conclusion about the quality of education in St.Petersburg is self-suggesting. Th e average resident of the city on the Neva (according to statistics, about 42 years of age) is an educated

family person — no less than a high school graduate. 49% of Petersburgers either have a high school diploma or are going to gain it...

Th ose with vocational secondary education are numerous, too — up to 30%. Hence, the portrait of a Petersburger as an intelligent and educated individual, accustomed in Russian society, is not far from reality. Among the residents of the northern capital, only 13% are workers (humanitarians make almost 11%), but

they more often than not have a good education and consider themselves as high-skilled — not without reason.

And if in any public area of the country (including steam baths and beaches) you hear an ardent dispute about the characters of the novel «Th e Master and Margarita» or about the subtleties of English poetry of the XIX century, you should know: it is certainly held by the inhabitants of the second-largest megalopolis of Russia...

Queuing for marriageTh e number of the residents of the city on the Neva River is gradually growing: the curve of birth rate is getting higher, and the mortality rate is gradually reduced. Demographic indicators of St.Petersburg are similar to the All-Russian, but in some categories the inhabitants of the northern capital are, as always, peculiar.

Th roughout the country, the trend is as follows: the number of registered marriages decreases. For example, 8.9 people in thousand entered into marriage in Russia in 2007; in 2008, there were 8.3 of them, while in 2009, and earlier in this year this index fell to a level of 6.6. However, the Petersburgers make it clear that they are as easy to fi nd the bonds of marriage, as to get rid of them — it’s no problem. Th us,

Petersburgers: Th e Culture of LivingNearly 10% of the average monthly expenditure of a Peters burger goes on organizing their own leisure and culture, while the education costs them only 1,1% — almost two times less than in the whole country (1.9%). Our education most probably is both better and cheaper than in the rest of Russia...

the marriage rate level in St.Petersburg is 5.8% higher than in the rest of the North-West, and above 9% higher than the average over Russia. However, in their readiness to divorce the people from the northern capital also give odds to other regions. While the number of divorces in the country is only 4.4 (per thousand people), in St.Petersburg it is 5.2. In this, Petersburgers overcome the Muscovites, who have lower divorce rates (4.2).

Like the residents of other European capitals, Petersburgers are in no hurry to give birth to a child. According to the Federal State Statistics Service, only each tenth family can boast of a child under 16 years; only one out of twenty families has two teenage children, and three children in a family are very uncommon.

Recently, there have been noticeable improvements in the mortality and birth rate. Yes, the average Petersburger still lives a little over 60 years, but over the past 3 years the mortality decreased from 15.4 (per thousand people) to 14.4, while the birth rate, by contrast, increased from 8.8 to 11.6. However, the natural population loss is still evident: the fi rst 4 months of 2010 it was –2.8, although in the past year it was equal to –3.9.

Th e dymanics of the situation shows that for the fi rst time in recent years the number of St.Petersburg residents become greater than ever before. Th is is partly explained by the fact that the life in St.Petersburg is very attractive for immigrants: the people who come are twice as many as the people who leave. And the northern capital is getting not only a temporary shelter for guest workers, but also a real home for emigrants from the Russian «remote».

Employment and unemployment Th e level of unemployment in Petersburg is the lowest in the Russian North-West. Moreover, unemployment continues to decline, and as of the end of April 2010 it takes only 1% of the economically active population. Even by the method of calculation of the International Labour Organization (ILO), it is 3.9%, while in the North-Western Federal District — 7%, and throughout Russia— 8.5%.

According to St.Petersburg Committee on Labour and Employment, by the beginning of May there were more than 52,600 vacancies in the city, whereas 27,300 people were registered as unemployed. Over the past six months, this number decreased by about 6%. Given that the average dole barely exceeded RUR 3,740 as of April of 2010, and the offi cial minimum of a wage in the region (OMW) was RUR 6,600 in January (in September, it will be raised to RUR TE

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Petersburgers, on average, earn considerably more than their neighbours in the North-Western Federal District. But they spend much more, too. And, unlike the residents of Vologda or Pskov, they can aff ord it...

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Saint Petersburg: People, Resources, Opportunities 7

People6,890), it’s better to work — it is much more profi table.

Th e experts have concluded that the situation on the labour market of St.Petersburg continues to improve. Th e tension slackens: at the end of April there were only 1.21 of the unemployed applicants per a job position, while in March this fi gure was 1.27. And it is no coincidence, since only in April, the Bank of Employment Services received information on more than 16,800 vacancies. A year earlier, only 37% of applicants got a job within 4 months, and now — over 65%.

Th is spring, analysts began talking about the real signs of recovery from the recession. Petersburg-based company began to recruit the personnel again, and the human resources managers resumed the usage of an almost forgotten word «defi cit».

For a better lifePetersburgers, on average, earn considerably more than their neighbours in the North-Western Federal District. But they spend much more, too. And, unlike the residents of Vologda or Pskov, they can aff ord it: the percentage of «the poor» with incomes below the subsistence level (MSL), in St.Petersburg is lower.

First, a Petersburger spends on food less (in percentage). While the inhabitants of the surrounding regions and republics in 2009 spend on foodstuff up to 30% of consumer expenses (in the northern territories — up to 40%), in St.Petersburg it is only about 25%.

Second, Petersburgers often prefer a cafe instead of cooking at home. When the average Russian citizen spends on meals outside the home around 3% of the costs (and the residents of Pskov — only 1%), a Petersburger is ready to endow the public catering with up to 5% of monthly expenditures. In terms of expenses for the hotels, cafes, and restaurants the Petersburgers noticeably bypass even the Muscovites (5,2% of total expenditure against 2,3%).

Th ird, a resident of the northern capital likes to chat over the phone and spends on the holidays abroad more money than a neighbour in the federal district.

In terms of wealth, Petersburgers should not be much resenting. A TV set (nowadays, mostly plasma or LCD), mobile phones (children included), a fridge and a washing machine, a desktop PC or a notebook are the immanent attributes of life of most families. More than half of them have a car (mostly of a foreign brand).

Th e main problem of life in St.Petersburg still is owning a home: purchase of an apartment is a dream of many, but to bring it into life is unrealistic for the majority of people. Th erefore, the problem of «communal apartments» that are still abundant in the central districts of the city, remains urgent.

Prospects of the development«We are coming out of the recession and we have very good production growth — 104.7%», said Governor Valentina Matvienko during a meeting with the president in St.Petersburg, in late May. «Th e output of car production alone has increased by 3.2 times. Incomes are growing and a consequence is a stable social environment in the city».

Th e recession will be a recession, but most of the strategic plans do not suff er. In 2011, the average nominal wage in the city is going to exceed RUR 36,000, and the oldage pension — RUR 8,900. According to the plans, the number of births should be 12 per thousand people, and the average life expectancy of a city dweller will grow. Which is only left is to bring the plans into reality…

Statistics

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Population of the NWFD

RF Subject People

Republic of Karelia 687500

Komi Republic 958544

Arkhangelsk Region 1262036

Nenetskiy AD 42023

Vologda Region 1218241

Kaliningrad Region 937360

Leningrad Region 1631894

Murmansk Region 842452

Novgorod Region 645986

Pskov Region 696392

St.Petersburg 4581854

Source: RosStat

Unemployment rate in the NWFD (April 2010, following the ILO method)

RF Subject %

Republic of Karelia 10.9

Komi Republic 10.4

Arkhangelsk Region 8.2

Nenetskiy AD 8.0

Vologda Region 9.0

Kaliningrad Region 10.0

Leningrad Region 5.5

Murmansk Region 10.0

Novgorod Region 6.3

Pskov Region 10.1

St.Petersburg 3.9

Source: RosStat

Disposable resources (RUR per month, averaged per a family member, III quarter of 2009)

RF Subject RUR

Republic of Karelia 11822.50

Komi Republic 18443.30

Arkhangelsk Region 12939.70

Nenetskiy AD 20615.70

Vologda Region 12614.60

Kaliningrad Region 9033.60

Leningrad Region 10629.60

Murmansk Region 17166.90

Novgorod Region 8691.70

Pskov Region 8867.90

St.Petersburg 17646.10

Source: RosStat

Natural alteration of population in the NWFD(January-April of 2010)

RF Subject Growth / Loss, %

Republic of Karelia ↓ –4.6

Komi Republic ↓ –0.7

Arkhangelsk Region ↓ –2.8

Nenetskiy AD ↑ +5.1

Vologda Region ↓ –4.9

Kaliningrad Region ↓ –4.1

Leningrad Region ↓ –7.9

Murmansk Region ↓ –0.3

Novgorod Region ↓ –10.0

Pskov Region ↓ –12.3

St.Petersburg ↓ –2.8

Source: RosStatт

partner of the edition: Chamber of Commerce & Industry of St.Petersburg

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8 Businness Map of Russia

Resources: Finances

The municipal «till» for 2010, according to Governor Valentina Matvienko, managed to balance social costs and allocations for the development. In 2010, the revenues of the city were

projected to increase by 6%, as compared with 2009, to amount to RUR 309 billion; the expenses remained approximately at the level of 2009 and amounted to RUR 324 billion. Th us, the defi cit was planned at RUR 15 billion. Th e city was going to pay it back through the borrowed funds (RUR 19 billion).

Formation of budget revenues-2010 was certainly aff ected by the global recession. Th e planners found it diffi cult to accurately predict the actual income level by the end of this year. «In 2010, the discrepancy between the anticipated receipt (of taxes and non-tax payments) and the data of Federal Taxation Service is 10%», said Eduard Batanov, Head of the Committee for Finances at St.Petersburg Administration.

Federal Center worsened the situation by relaying the costs for a number of social articles onto the regions. It concerns fi nancing the summer holidays for children, ensuring equidistant access to public transportation (applying fl at-rate fare at social and commercial transportation vehicles), fi nancing the aid for veterans and rehabilitation of persons with disabilities.

And yet, despite the shrinking of the revenue base, the social share of the city budget was not cut short.

Th e education sphere has received the greatest share — RUR 60.7 billion. For the needs of public health, the amount of RUR 54.2 was assigned. It was planned to fi nance a number of special programs, in particular, it was promised to multiply the assignments for prophylactics of HIV-disease by 5.2, and for purchase of the equipment for new medical facilities – by 2.2.

Th e article «national economy expenditures» is assigned RUR 58 billion, including RUR 27 billion for a targeted investment program. It is planned to buy buses for RUR 2.2 billion (15 times

more than in 2009). Th e costs of introducing the electronic payments in transport is increased by 2,2 times, the maintenance of underground has got 33% more, while the major road maintenance

— by 24%. Th e funds of supporting program for

entrepreneurs will be 14% more than the those of previous year.

St.Petersburg is going to pay more attention to small-scale businesses. It is proposed to estimate the performance of heads of administrations of the districts by the number of vacancies originating from small business

Housing and social policy are also considered the main expenditure articles. St.Petersburg, in contrast to many regions, planned double-indexed wages of public sector employees in 2010, despite the recession.

However, the governor urged the offi cials to tighten their belts. In the 2010, it is aimed to reduce the staff and raise salaries in the executive authority branch.

Addressed investment program for 2010 is kept at the level of last year (RUR 79 billion). Th ese funds are expected to focus on objects of high degree of readiness. For the social housing, it is planned to invest RUR 9.5 billion.

Th e deputies of the city parliament approved the following parameters of the fi nal budget for 2010: income — RUR 318.5 billion, Expenses — RUR 336.7 billion, Defi cit — RUR 18.2 billion. But the upper limit of debt was doubled, from RUR 11.3 billion up to RUR 22.62 billion. Control and Audit Chamber of the city issued a positive conclusion about the budget of St.Petersburg in 2010. According to Vladimir Lopatnikov, its head, the city government even underestimated the revenue side.

Back to the previous plansIn the fi rst quarter of 2010, the downward trend of earnings was replaced by their growth. Th us, the arrival of revenue tax increased 1.9 times as compared with the last year.

However, there was a fall, against the planned fi gures, regaring the excise taxes and personal income taxex.

As of expenditures, the budget was above the traditional value for the beginning of the year, their share in total expenditure amounted up to 16% (in 2008 — 13,4%, in 2007 — 15,7%).

In late May, the budget-2010 was subjected to a revision again. Th e forecast on receipt of income tax increased by RUR 4.7 billion. Th e additional funds from the budget of Russian Federation also increased — by RUR 6.3 billion. Th e forecast for business and other income-generating activities was refi ned.

As a result, the revenues rose by RUR 10.6 billion — up to RUR 329.1 billion, while the expenses rose by RUR 42.1 billion — up to RUR 378.8 billion.

Th e budget defi cit in this edition was equal to RUR 49.7 billion. Most received an additional Utilities — RUR 11.2 billion (+20%), Road-building — RUR 8.8 billion (+30%), Social policy — RUR 7.8 billion (+21%), Health care — RUR 4 billion (+7%), Education — RUR 6.9 billion (+11%), AIP — RUR 12,5 billion. Sources of budget fi nancing increased by RUR 31.5 billion through the use of residual funds received in 2009, but unspent as of the beginning of 2010.

It can be argued that the budget of St.Petersburg begins to approach those parameters that were laid there in the pre-recession period.

Th e budget of St.Petersburg for 2009 was planned implying the positive tendencies formed by the middle of 2008. For further three-year period, it was 2009 when it was expected to obtain the highest income (+30% as compared with 2008). Th e global fi nancial recession adjusted these expectations severely. But in the second half of last year the situation in the city’s economy began to stabilize. Th e budget of 2010, however frugal, still left an opportunity to raise assignments for development and social needs.

Th e City Budget Has Withstoodthe Raid of Recession

St.Petersburg authorities staked on large taxpayers, which was subjected to hard trial in the fi rst half of 2009. Th e share of the related tax payments amounted to about 7% of the total, whereas in previous years, it reached 20–25%

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Expenditures of consolidated budget of St.Petersburg

Year RUR billion

2003 78.3

2004 94.0

2005 136.2

2006 186.1

2007 269.2

2008 355.0

2009 322.3

2010 378.8

Revenues of consolidated budget of St.Petersburg

Year RUR billion

2003 77.2

2004 95.3

2005 142.7

2006 218.1

2007 237.1

2008 339.1

2009 315.6

2010 329.1

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10 Businness Map of Russia

Resources: Industry

According to Anatoliy Turchak, President of Petersburg Union of Industrialists and Entrepreneurs, the economy of St.Petersburg does have such industries. «Th e power of

the northern capital industry is its traditions, multiplied by advanced technologies», he believes.

Hard outcomesWhat is the industry for St.Petersburg? Its backbone. Th e base of its welfare.

Th e core of the industry is made up of about 700 large and medium-scale enterprises; some of them belong to the biggest in Russia. Apart from that, the economic activities in the fi eld of industrial production is carried out by more than 17,000 small companies. Th is sector of the city economy is employing almost one fi fth of the working population, and creates a quarter of GNP. Th e industry brings into the budget «pocket» 28% of all tax revenues.

In 2009, the industry had hard times indeed. However, thanks to the joint eff orts of business and the authorities, the orders of defense industry, for example, managed to increase by 1.86 times (up to RUR 67 billion). And while the index of industrial production (IIP) for St.Petersburg declined to 79.9% in 2009 (the level of 2008), the city industry shipped products worth RUR 879 billion (96.2%), whereas the average for Russia was 90%.

Anti-crisis industrial strategy proved to be correct. According to PetroStat data, in January–April of 2010 IIP of St.Petersburg reached 104.7%.

Search for «Locomotives»Th e lessons of the recession were not lost: now it is clear that the industry of Petersburg needs dramatic changes.

«If you implement the industrial policy as before, based on the principle 'each sister gets

Th e Locomotivesof Economic GrowthAre Speeding upDespite the fact that St.Petersburg industry, even in a recession year of 2009, showed better results than in the whole country, the experts unanimously say about the necessity to single out the «locomotives» within its structure that could give the economy a new momentum.

her earrings', it comes to a deadlock», said Anatoly Turchak. «Without a proper defi nition of points of growth, the industry is unlikely to move forward at a pace that we need».

Currently, the «foodstuff s» certainly dominate among the goods shipped from St.Petersburg, making up over 21% of the total volume. Another leaders are the coke and oil production (13,8%), production of electrical, electronic, and optical equipment (12,1%), metallurgical industry and manufacturing the fabricated metalware (10%), and the production of vehicles (7,6 %) and chemicals (7%).

However, the representatives of both the business and the authorities are certain that the priorities in the industry should be somewhat diff erent. In what exactly?

According to Anatoliy Turchak, in this sector there must be at least three. What he considers as a «locomotive», able to pull ahead the whole economy of the city, are the power and nuclear engineering, shipbuilding, and radio electronics. «In these industries, there are science, human resources, and technologies that can compete on the world market», he said. «In Electronics, for example, despite all the complications and pressure from foreign companies, the backbone enterprises managed to survive. Th ey are able to produce competitive products of diff erent kinds, including the components, without which the production of complex radio-electronic devices is impossible».

Vladimir Aleksandrov, Director General of JSC «Admiralty Shipyards», confi rms this view. «Th e volume of product output only at our plant could reach a value of RUR 25 billion in 2010', he states. «And about the same development dynamics is observed at other shipyards of St.Petersburg».

Th e authorities has a slightly diff erent view on the problem. Of course, Mikhail Oseevskiy, Vice-Governor of St.Petersburg, agrees that «without a powerful modern competitive industry, the choice of the path of innovative development in Russia is impossible». In his opinion, in Petersburg, where the main contribution to GNP is made just by the industry, we must try to save as much as possible of the best of what is already here, while developing the new industries that have a long-term potential. «Th is is, fi rst and foremost, the motor-car construction», he said. «Currently, we have chosen for themselves the production of pharmaceuticals as one of the priorities, as well as the production of everything related to health care in general. 75% of our demand is covered TE

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Production of personal computers at the Foxconn and Hewlett Packard factory in Shushary

Currently, the «foodstuff s» certainly dominate among the goods shipped from St.Petersburg, making up over 21%of the total volume. But in the future the situation should change drastically

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Saint Petersburg: People, Resources, Opportunities 11

Resources: Industry

Statisticsby import, so there are tremendous prospects of growth for domestic production».

Peeping into the futureBy initiative of Industry Council, with the participation of leading scientists, a roadmap is being developed of St.Petersburg industry for the period until 2025.

«Earlier, in the draft plan for the development of St.Petersburg until 2025 the current situation of the whole industry was described in one sentence», says Mikhail Lobin, Vice-President of CSE Petersburg. «But it is clear that without marking out the growth points capable of pulling ahead all the production in general, we can not do».

Th is is a huge amount of work, during which the situation will be evaluated in diff erent sectors, scientifi c schools, technological capabilities, availability of human resources, etc. According to Michael Lobin, «based on such analysis, we have to determine the datum points to focus on and to invest maximum fi nancial, technological, and human resources into their development».

Th e experience in contemporary conditions has shown that the strategy for the allocation of datum sectors in the industry works. Th e local automotive industry, for example, quickly recovered after the crisis, showing enviable growth rates. As Governor Valentina Matvienko stated during a recent meeting with Prime Minister Vladimir Putin, the car production increased by 3.2 times.

Mutually benefi cial cooperation with other regions and countries becomes a typical feature

of the future of St.Petersburg industry. In particular, during the visit of the delegation from Belarus it was agreed to develop cooperation in such high-tech fi eld as the development and manufacture of modular laser technological complexes. As stressed by Vice-Governor Mikhail Oseevsky, the project is being discussed of creating in 2011 an innovative Russo-Belarusian center of automotive electronics on the basis of JSC «NPP Radar MMS».

Th e result of the overall industrial strategy makes its impact not only in the growing production volumes and increasing profi ts of enterprises in St.Petersburg. «Largely due to the stability in the industry, the incomes of the people are growing and, consequently, a stable social situation is formed in the city», Valentina Matvienko observes.

And if the development of production goes ahead, being properly prioritized, the stability will certainly be strengthening.

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Shares of RF subjects of NWFD in the total volume of industrial products shipped from the District in 2009

RF Subject Share (%)

Republic of Karelia 2.9

Komi Republic 9.7

Arkhangelsk Region 8.7

Nenetskiy AD n/a

Vologda Region 10.5

Kaliningrad Region 7.1

Leningrad Region 15.0

Murmansk Region 5.3

Novgorod Region 3.7

Pskov Region 1.5

St.Petersburg 35.6

Source: RosStat

Structure of investments into fi xed assets in St.Petersburg industry in 2009, %1 Production of foodstuff s, beverages,

and tobacco

2 Pulp and paper production, printing and polygraphy

3 Chemical production

4 Production of other non-metallic mineral products

5 Metallurgical production

6 Machinery and equipment production, petroleum products

7 Production of electrical, electronic, and optical equipment

8 Production of vehicles and transport equipment

9 Other manufacturing

10 Ore mining

11 Production and distribution of electricity, gas, and water

Source: КЭРППиТ StPb

Structure of taxes and levies coming into RF budget system from the industry of St.Petersburgin 2009, %1 Production of foodstuff s, beverages, and

tobacco

2 Pulp and paper production, printing and polygraphy

3 Chemical production

4 Production of other non-metallic mineral products

5 Metallurgical production

6 Machinery and equipment production

7 Production of electrical, electronic, and optical equipment

8 Production of vehicles and transport equipment

9 Other manufacturing

Source: КЭРППиТ StPb

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Th e foundation of the strategy to develop the St.Petersburg industry until 2025 should be a roadmap, which is currently being elaborated with the assistance of scientists, government, and businesses

partner of the edition: Chamber of Commerce & Industry of St.Petersburg

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12 Businness Map of Russia

Resources: Transport

High-speed train «Sapsan» arrives to the Moskovkiy Railway Terminal of St.Petersburg

In 2009, St.Petersburg put into operation a number of major road facilities, both of city-wide and federal importance. Th e southern sector of the Western High Speed Diameter (WHSD) was opened, and Outer Ring Road (ORR)

was widened to get eight lanes along its entire length. Besides, introducing the new road sections and construction and renovation of several facilities provided reliable tran-s portation link between St.Petersburg and Pushkin, and a long-awaited transport interchange between the Sofi yskaya Street and the Outer Ring Road was completed.

Certainly, the recession has made its amend ments to the plans to develop the road sector. Th e reduction of budget revenues forced to revise a number of expenditure articles of road construction. But now the industry is beginning to revive.

Among the major projects in 2010, there is a new tunnel under the Liteyny Bridge, which is scheduled to fi nish in December. Soon, a tender will be announced on building another facility of this kind — under Sampsonievsky Bridge. Th us, a speedway from the will-be Orlovskiy Tunnel to the Primorskiy Prospekt can be formed by the end of 2011.

High-Speed Projectsfor the InvestorsTh e state of transport infrastructure has a direct impact, according to St.Petersburg Governor Valentina Matvienko, not only upon the well-being of all sectors of the economy, but also upon the investment attractiveness and image of the city. Th erefore, the authorities did not hampered its development even in the situation of recession

Stevedoring acceleratedSt.Petersburg is the naval capital of Russia and the largest terminal complex at the Baltic Sea. Th e turnover of the Big Port of St.Petersburg in the I quarter of 2010, according to the Seaport Administration, rose to 11.2 million tonnes (+16% as compared with the same period of 2009). In recent years, the dynamics of cargo turnover of the port demonstrated a steady growth of handling the containerized cargo, which is the same as with the Russian and with global trends. For 4 months in 2010, the stevedores have handled 550,500 TEU (an equivalent to a 20-foot container), which is 44.1% more than in the corresponding period of 2009).

Th e main share came from the companies that have modern equipment for trans-shipment of the containers. Th ey can be called the drivers of growth. Among them, there is JSC «First Container Terminal (FCT), where the trans-shipment for the fi rst 4 months of 2010 amounted to 352,700 TEU (+31%). In Public JSC Petrolesport, the trans-shipment of containers has increased by 2.54 times — up to 132,990 TEU. One of the reasons for high rates of growth is the extension of direct voyages St.Petersburg–South America provided by Maersk company, which should have partly replaced the feeder lines in this direction. A good dynamics is shown also by the two other stevedores who specialize in containers trans-shipment and ro-

ro cargo — Public JSC «Moby Dick» and Public JSC «Rusmarine forwarding».

Th e cargo turnover of ferrous metals in the port grew up by over 15%, and of scrap metal — more than 2,5 times. Th e demand for metals has began to grow in Europe and North America, which causes all the major Russian steel mills to increase production.

In order to reduce the load of freight transport on the road network of the city, in October 2008 the fi rst section of WHSD was opened, which directly connects III and IV areas of the port with the Outer Ring Road and farther — with the network of federal roads. Ensuring the full access of «Petrolesport» and I and II areas of Big Port to WHSD is expected in late 2010 — early 2011.

How to see the steam-vessels off …A new passenger terminal «Marine Facade», which will be fully operational in 2011, has become the pride of St.Petersburg. Its quays already has moored large seagoing liners and ferries. Th rough the navigation season of 2010, «Marine Facade» plans to serve about 450,000 tourists.

According to the strategy of development of transport complex, approved by the Government of St.Petersburg, passenger water transport in 2015 should increase to 1.5 million people, and by 2030 — to 2.8 million Th e passengers arrive in St.Petersburg, not only by sea but also by the river ships. A special feature of river traffi c in 2010 was that the authorities of St.Petersburg reinforced the measures to ensure the safety of vessels at the rivers and canals of the city that are not included in the system of inland waterways of Russia. In particular, as reported by the Committee on Transport and Transit Policy, the traffi c lights have been installed at 11 bridges, as well as 6 surveillance TV cameras TE

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Saint Petersburg: People, Resources, Opportunities 13

Resources: Transport

Statistics

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to monitor the observing of traffi c rules by the waterway users. Partially implemented is a subsystem of locating the ships based on satellite communications system GLONASS, with the data output at the dispatch center of GU «Water Traffi c Management». It is installed in addition to the AIS, without which the passenger vessels operating on small rivers and canals of St.Petersburg are prohibited to access the federal inland waterways.

In the future, the city plans to construct and reconstruct 19 objects of city infrastructure for river transport, as 44 km of the Volga-Baltic Waterway passes through the territory of St.Petersburg. Every day thousands of tourists travel to Valaam, Kizhi, and Moscow. As explained by Nikolay Asaul, Chairman of St.Petersburg Committee on Transport and Transit Policy, the new facilities for river transport are to be created at the «Marine Facade», at the complex of protective structures against fl ooding, and in Nevskiy District, where the River Terminal is located.

Steel projectsSt.Petersburg keeps close partnership with OAO RzhD (Russian Railways). A number of projects for reconstruction of railway facilities have been jointly carried out. Among them, there are the stations Saint-Petersburg — Moskovskiy-Cargo and St.Petersburg — Varshavskiy, from where the entire railway infrastructure has been relocated to the new grounds.

Today it is time to begin creating the railway bypass around St.Petersburg. In addition to the traffi c «relief», the bypass will improve the environmental situation and eliminate the risks associated with the transit of dangerous freight through the city.

In May, RZhD reported that high-speed trains «Sapsan» have carried out almost a thousand

trips from the beginning of their operation, and on May 20 the 500 thousandth passenger used the Sapsan service. Given the high demand for high-speed travel, from April 5, RZhD increased the number of round trips Moscow–St.

Petersburg–Moscow from three to fi ve in each direction, and from April 23 — to six.

Th e volume of investments allocated by RZhD for Oktyabrskaya Railway (ORW) steadily grew until 2008. And the growth was signifi cant. In 2004, the development of infrastructure has been assigned RUR 13.4 billion, in 2005 — RUR 16.2 billion, in 2006 — RUR 20.4 billion, in 2007 — RUR 29.4 billion. Investment program for 2008, before the recession, was supposed to master RUR 55.3 billion and in 2009 — RUR 50.9 billion. However, the recession has made its amendments. In 2008, investments amounted to RUR 48.4 billion, and in 2009 — RUR 37.6 billion.

Making such a decision was not easy. However, the railway people did not abandon the strategically important projects and introduction of innovative methods of cargo delivery, which allowed the company to put signifi cant pressure on competitors in the fi eld of passenger transportation, remaining in strong position as a carrier.

Volume of investment program of OZdD, RUR billion

2009 3.6

2010 39.2

Source: ОЖД

Cargo turnover of Big Port of St.Petersburg, I quarter of 2010

Q1 of 2010, million tons 11.2

Q1 of 2010 against Q1 of 2009 ↑ +16%

Source: АМП СПб

Passenger fl ow of airport Pulkovo, I quarter of 2010

Q1 of 2010, million people 1.52

Q1 of 2010 against Q1 of 2009 ↑ +29%

Source:Committee on Transport and TransitPolicy of St.Petersburg

Planned passenger transportation by waterways in 2010 and 2015, million people

2010 1.0

2015 1.5

Source: dtat provided by the companies

St.Petersburg takes its pride in a new passenger terminal «Marine Facade» that will be fully operational in 2011. During the navigation season of 2010, «Marine Facade» plans to serve about 450,000 tourists

partner of the edition: Chamber of Commerce & Industry of St.Petersburg

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14 Businness Map of Russia

Resources: TransportAmong the most capital-intensive projects,

there is the reconstruction of the railway access to the port of Ust-Luga, which, as expected, is going to ensure the trans-shipment of 36,0 million tons of cargo in 2010.

Also, the modernization of 150 km of railways has not been set aside, thus improving the speed of trains and reducing the operating costs. Th e program of updating the rolling stock and locomotive fl eet has been duly implemented. Purchased are Diesel and electric locomotives of a new generation, more powerful and maneuverable.

Th e investment program for 2010 assigns RUR 39.2 billion for Oktyabrskaya Railway, which is 4% more than in the previous year. Th e growth of investment, as stressed by Victor Stepov, Head

of ORW, is associated with the recovery of the economy after the recession and the increase in freight traffi c via the railways.

Pulkovo spreads its wingsAirport Petersburg is increasing the passenger fl ow in 2010. In January–March of 2010, 1.52 million people passed Pulkovo (+29% against the same period of 2009).

Improving the indicators of the airport was also due to the fact that in 2010 the list of carriers expanded considerably. Today, along with STC «Russia», Aerofl ot, Lufthansa, S7 (Siberia), UTair, Jordan, Transaero, Air, Sky Express, and Uzbekistan Airways work in Pulkovo. In 2010, certain companies made lucrative off ers concerning the prices on fl ight tickets at international air routes, which played in favour of overall result.

A new terminal for aircrafts in St.Petersburg is only planned to be built by the end of 2013. But the Pulkovo airport still has the resources to manage the increasing passenger traffi c. With the assistance of German company Fraport, Consortium Air Gates of the Northern Capital has been developed a relevant program. Th is is about optimizing the inspection zone, increasing the number of employees at the check-in desks, equipping an additional

checkpoint at Pulkovo-2, organizing the regular shuttle delivery between the Pulkovo 1 and Pulkovo-2 terminals, and installing extra elevators for people with disabilities.

Besides, the replacement of displays and signs is already in progress, intended to improve the navigation of the passengers around the terminal area.

Th is program also includes the measures to modernize the airfi eld infrastructure to expedite the incoming fl ights, as well as preparation and technical inspection of aircraft prior to departure. For this purpose, it is planned to borrow 716 million euros for 15 years.

To facilitate the access to the city, it is decided to arrange a line of «Above-Ground Express» from Moskovskiy Railway Terminal to the airport. Th e Committee on Investments and Strategic Projects has already chosen the winner of the contest of designers claiming to fulfi ll the project. It is the company «Petersburg Roads» that has promised to fulfi ll the city order for RUR 298 million.

As per the terms of the contest, a light railway vehicle should be ready by the end of 2010. Th e route is planned to be opened by the completion of the fi rst stage of Pulkovo airport reconstruction in 2013.

It is expected that the authorities of St.Petersburg will lease the aerial gateway of the city to a business for 30 years, with the requirement, as explained Igor Levitin, Transport Minister, to invest €1.2 billion into the reconstruction of the airport. Obviously, the recession has not hindered the development of transportation infrastructure in St.Petersburg.

Th e authorities of St.Petersburg plan to hand over the airport «Pulkovo» to a business for 30 years, with the requirement to invest €1.2 billion into its reconstruction without involving the city budget

Western High Speed Diameter and the ring road junction in the area Dachnoe–Predportovaya

Page 15: dk11

A Guide to МВА

Marina Mikhaylovna Volkova

Head of the MBA Program of IMBK BSTU «VoenMech»,St.Petersburg,Head of International Educational Programs Dept. of IMBK BSTU «VoenMech»,PhD in Economics, Associated Professor

— What are the interesting trends, in your opinion, that have appeared on the market of business education recently?

— Recently, the demand for business education has much enlivened, in particular, for a well-known brand — MBA diploma, not only in Moscow but in St.Petersburg. The value of this diploma and knowledge of MBA is understood not only by the managers, oriented to a successful career, but also employers. The number of employers who prefer MBA graduates is getting greater.

Our program has such a licence.

— Are there any specifi c requirements that you want from the students when they join the program?

— Along with conventional requirements — higher education, managerial experience, and basic knowledge of English language — each

would-be students of the IMBK BSTU «VoenMech» is interviewed, with the purpose to estimate the level of motivation and working experience of the applicant.

— Please tell us a little about the specifi city of your program. Who makes its target audience?

— Our program is aimed at managers of production companies, not only Russian but also foreign ones, since in addition to Russian diploma, we offer an international diploma and High School of Business at Regional University of Bodo (Norway), with which we cooperate with more than 15 years. The MBA curriculum of IMBK BSTU «VoenMech» is based on Russian and international requirements, including the business practice in Norway, which includes visits to Norwegian companies that are selected by the preferences of the

students; lectures, classes and fulfi ll a training project with the obligatory presentation at the Norwegian High School of Business of Bodo.

Our target audience is made of high-educated top managers and managers of middle level, who wish to acquire knowledge on production management and to update their knowledge, and most importantly, to get a push towards a successful career in management.

— What would you recommend to pay attention for when choosing an MBA program? What criteria are the most important?

— When choosing an MBA program, the availability of a licence should be taken into account, and check not just how long a business school or university has been on the market, but when they fi rst made an enlistment for MBA program. A good program

is not only shaped by the curriculum and advertising campaign, but also by the experience with the audience, which allows for continuous improvement of the educational process in accordance with the changing realities of business. During the activity of our MBA programs, we constantly adjust the contents and forms of employment and training, taking into account the feedback from students. I recommend to talk with students and graduates of the program and peruse the list of companies and positions they hold. Apart from the cost of the program and its specialization, an important criterion of choice is a convenient location and schedule of the lessons.

Page 16: dk11

16 Businness Map of Russia

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Saint Petersburg: People, Resources, Opportunities 17

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Page 18: dk11

18 Businness Map of Russia

Resources: Real Estate

Construction works at a residential area Slavyanka

If you watch the macro-ecomical indicators, they are not encouraging. Russia’s mortgage market in 2009 shrank by 4.3 times, as compared with 2008. Moreover, 100 of 130 thousand mortgage loans were issued by Sberbank,

and another 10 thousand — by VTB. Th e rest falls on two dozen banks, working in conjunction with the Agency for Housing Mortgage Lending (AHML). Low activity of most commercial banks suggests that they do not believe in a quick revival of the real estate market. Sberbank has to work with mortgages because it is so ordered, and certain other banks — simply because they have got the unsold apartments as mortgages.

In 2009, the main share of mortgage loans fell on Moscow, where the picture this year was not especially better. In St.Petersburg, in I quarter of 2010 nearly a thousand of mortgage loans was issued amounting to RUR 1 billion vs 700 credits for the same period of 2009. However, the experts suspect that a signifi cant portion of this thousand are refi nancing an old mortgage, which the statistics takes for new loans. In 2010, the demand for housing lease remains low, and the consequence is low rents.

Th e optimists live in hopeExperts-optimists base their assessments on indirect parameters, because they believe that during the recession, the mood of investors

Th e Realty Market Awaits the ProgressDuring the spring conferences and fairs of 2010, the forecasts for the St.Petersburg construction market given by the experts were polar opposites. Some of them said that the volume of Newbuilding and apartment prices will continue to grow in summer, while others predicted a decline. What actually happens?

(rather than the actual performance of the economy) is of crucial importance. So the optimists expect the recovery of the construction market in summer of 2010.

Before all, this forecast is based on certainty that the construction cost of houses in 2012–2013 is going to signifi cantly increase. And prices for apartments will increase in proportion to at least 30–40% to the current level. In other words, the near-term conditions stipulate not only returning the prices to pre-recession level, but exceeding it by 10–20%.

Another factor in favor of the optimists is the springtime «thaw» in the market of building materials. However, not every manufacturer has noticed it. Th e production volume of bricks, tiles, and several other articles continued to fall. However, the cement market in the I quarter of 2010 increased by 3.6% against the same period of 2009. 26 leading local manufacturers of concrete shipped 740,000 cubic meters of mortar in the I quarter of 2010 — thus, the increase was 4.2%. Yet in April, manufacturers of concrete accelerated by 45%, as compared with this month of 2009. By this reason, some players hurried to call April a point of withdrawal from the recession for construction industry. However, as the experts assure us, the market trend of redistribution should not be ignored, as the orders on mortar left the small producers in favor of large companies. Th erefore, the overall

growth in the segment of concrete actually was less signifi cant. Experts estimate that the growth could be between 20–26% by 2009.

In addition, the spring rose orders from large suppliers, because they are able to fulfi ll the terms of government clients — in particular, to ship the goods by installment. Th e share of government clients in the total amount of new housing has risen sharply: more than half of the housing launched in St.Petersburg for the fi rst four months of 2010 (825,000 sq. meters) was paid for from the budget (homes for veterans and military offi cers). Moreover, these buildings were fi nished in a rush to meet the deadline just in April of 2010. Another 83,000 sq. meters were added in April in form of several objects of the project «Baltic Pearl», where the works were kept barely warm during the recession. If the state will further act as a customer, then, according to the City Committee for Construction, the industry would be able to increase the output several times during the year or even two, without experiencing shortage of facilities.

Total demand at primary real estate market has been remained listless for 5 months in 2010, while the number of visits to the real estate agencies has grown by 26% as compared with the same period of 2009. Th at said, the average price level remained unchanged. Fluctuations in the exposition of real estate did not exceed 1%. According to the major agencies, 90% of buyers of economy-class housing are residents of St.Petersburg, while the vast majority of those who purchase business-class and «elite» housing are Muscovites.

Th e trade diversifi esIn the segment of commercial real estate, only one object was launched in St.Petersburg in the I quarter of 2010, through which the total amount of high-quality commercial real estate reached TE

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Page 20: dk11

20 Businness Map of Russia

Resources: Real Estate3.06 million sq. meters. Th e most demanded are objects ranging from 3 to 40 thousand sq. meters. In the market, according to ARIN data, the tendency is kept to place the entertainment, sports, and leisure facilities in the buildings of larger area. In other words, the diversifi cation of retail space continues due to its being underloaded against the intended purpose, which allows for keeping the occupancy rates of large objects high enough. In the majority of shopping centers the occupancy level is also quite high — about 90%

Th e possibility of further stabilization of the market is indicated by the trend of increasing rental rates kept in the I quarter of 2010, which emerged since the autumn of 2009. However, because of the recession the malls often waive a system of regular indexation of rental rates. Th is process is unstable and selective. In the new shopping centers, accommodation is off ered at a discount for the fi rst 2 years, but the owners of some existing shopping centers are ready to review contracts and lower rates for a year. Emerging are the examples when the «anchor» operators are exempt from rent payments and pay for utilities only.

According to ARIN forecasts, the launch of no more than 9 trade centers is expected in 2010, with a total trading area of about 250,000 sq. meters, which is not going to dramatically alter the overall situation in the market. Th us, at the end of 2010 the total retail space in St.Petersburg could reach 3.3 million sq. meters.

Migratory merchantsTh e market of business centers in the I quarter of 2010 increased to 1.9 million sq. meters (+2% as compared with the same period of 2009). However, the volume of introduced offi ce space as a whole was 51% lower for the fi rst three months than the same period of 2009,

and as compared with pre-recession period, introducing the new areas have been halved. In fact, only a part of the pre-existing objects was fi nished.

In order to reduce the operation costs, the tenants migrate between business centers of A and B+ class, and B and C class. As a result, the occupancy rate in A class has decreased to 67% (at the end of 2009 — 75%). Th e highest vacancy rate is observed in the offi ce centers, built a year or a year and a half ago. Th e occupancy of C class remained at 87%.

In May, for the fi rst time during the whole recession period, the demand for quality business centers somewhat grew, which slightly aroused the rental rates in Class A. Th e experts explain such favorable changed referring to the positive dynamics of investments in offi ce real estate: in the I quarter of 2010 they amounted to $ 265 million. Th e forecast on II quarter is about $ 370 million, which gives hope of stabilizing the market in the future.

It seems that the real estate market of St.Petersburg has adapted to the recession. And this is its claim on further stabilization. Th e main thing is to keep the demand. Also, the investors do not let us down. Th e building industry of the city has a large margin of safety.

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Komi Republic 376

Arkhangelsk Region 400

Nenetskiy AD 121

Vologda Region 831

Kaliningrad Region 1065

Leningrad Region 1419

Murmansk Region 91

Novgorod Region 343

Pskov Region 227

St.Petersburg 6316

Source: RosStat

Construction in NWFD in 2008, volume of works performed, RUR billion

Republic of Karelia 9.8

Komi Republic 41.7

Arkhangelsk Region 27.0

Nenetskiy AD 12.8

Vologda Region 37.9

Kaliningrad Region 24.2

Leningrad Region 76.3

Murmansk Region 16.5

Novgorod Region 12.6

Pskov Region 9.3

St.Petersburg 365.2

Source: RosStat

Page 21: dk11

Resources: Real Estate

ID «Pronto-Petersburg» is one of the key players among the St.Petersburg media that works as a Real Estate Exchange, where buyers and sellers can fi nd each other. You publish a free ads spaper «Iz Ruk v Ruki [From Hand to Hand]», and the magazine Apartments and Rooms. From Hand to Hand», photocatalogue «Real Estate. From Hand to Hand». Presumably, the chief editor of these products is well-versed in current trends, real estate market, and has a sense of perspective

— keeping the fi nger on the pulse.

— Как Вы оцениваете состояние рынка не-

движимости сегодня?

— Obviously, the real estate segment has suff ered huge losses due to the economic recession, and the recovery that is observed in the markets of primary, secondary, and commercial realty and residential complexes unevenly. Our editions let us know that many people and companies are now seeking to sell the real estate at their disposal to cope with the shortage of money assets. A large amount of supply, lack of demand due to shortage of free fi nancial resources and high cost of mortgages — these are the main features of the real estate market today. We also cannot leave unmentioned the poor quality of housing construction, faced by the consumers.

— Has the recession changed, in any way,

the priorities on the real estate market of

St.Petersburg?

— Th e changes, of course, have appeared. But the new long-term trend of development has not yet manifested itself. Speaking about the changes, we can not ignore the fact that in the light of overall economic decline, some problems of residential construction are getting particularly sensitive, for example, the protection of the rights of shareholders. I have to say that in St.Petersburg, only 34 construction companies are operating under 214FZ governing the participatory real estate construction. Th is is a small fraction of the total number of construction companies of the city. Th e consequence is the opacity of the rules of the game on the market of new residential construction and distrust of the end users of a participatory construction. At the same time, the ready housing and housing of the secondary market are more expensive, but then the buyers can watch for deception on the part of sellers and intermediaries. Real estate agencies do not always work by transparent schemes, and not all of them control their realtors on due level. As a result, there is such a phenomenon as «black brokers», while the

Helping «Hands» for the real estate market, or Anti-crisis help for the law-obedient

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people looking for an apartment to buy feel insecure and distrust even the companies with extensive experience and solid reputation. Th e presence of three professional associations of realtors in the city, unfortunately, does not solve the problem. Th is is further confi rmation that the real estate market has no consolidated long-term development goals.

— How it is possible to conunteract the

existing problems?

— Everyone must act in accordance with their abilities. Given the market situation, our publishing house that implemented the concept of socially responsible business even when it was a rare exception from the general mass rather than a fashion trend, that has a long history, an impeccable reputation, and credibility of consumers to our products, decided to support the construction companies and real estate agencies that, like we, strove for transparency and honest work and complying with the letter of the law. In June, our publishing house is going to off er to the most worthy and reliable market players a project «Exclusive Summer», which, as we hope, will help boost the sales of residential objects in St.Petersburg. Given that the market for sale of real estate is subject to seasonal fl uctuations, we implement this project in summer, a low season for the sales.

— Why such a grandiose name — «Exclusive

Summer»?

— Th e adjective «exclusive» in the title of the project is due to two things: exclusive 40% discount on advertising by this project in our editions for the companies that are going to take this off er, and exclusiveness of the objects

and discounts that the advertisers will off er.

— Why do you think this package will be in

demand?

— Everything changes — political and economic models of the society, the attitude to historical events, and our preferences, but the need for personal and business contacts is not subject to revision over time. «Iz Ruk v Ruki» was created to assist in search for those contacts. In our case, unlike all competitors, we off er to our advertisers the audience not only of St.Petersburg and Leningrad Region, but also of whole Russia and CIS countries, and over the Internet — the whole world. Our printed editions and Internet resources, complementing each other, helped to create an integrated system for the ad and information exchange that knows no analogues on the Russian market.

— What is this integrated system?

— «Iz Ruk v Ruki» is the world-largest free ads paper in the segment of classifi eds. It is published in 92 cities of Russia, Ukraine, Belarus, and Kazakhstan. Its weekly circulation is 2 million copies, with the readership of 4.8 million people a week. Our success has been gained due to a considerate approach to everyone whom the free ads paper «Iz Ruk v Ruki» could help. Of course, all that makes us very attractive to advertisers — it is no secret that today, a signifi cant number of properties in Petersburg is purchased by the residents of other regions of Russia and foreigners. A vivid illustration of our strong position is the fact that when a user types the string «free ads paper» in a search fi eld of Yandex, the search engine straight away suggests the most demanded option «Iz Ruk v Ruki», since this request is the most often that the users post the leading search engine of Runet. Th erefore, the word «popularity» in relation to the free ads paper «Iz Ruk v Ruki» can be understood literally: popular — because it is for people, popular — because it is used by many.

Saint Petersburg: People, Resources, Opportunities 21

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22 Businness Map of Russia

Opportunities: Innovations

St.Petersburg has accepted, and since 2008, has been operating in accordance with a Complex Program for Implementing the Innovation Policy.

Th e fi rst block of the program defi nes the priority areas, in which the support of innovative companies from the city budget. Th ese are training and retraining of the personnel, creating the innovation infrastructure, implementing the cluster policy, improving the regulatory framework, facilitating the implementation of innovative products for export, increasing the demand, promoting the innovations, and assisting businesses to participate in the federal target programs.

Th e second block is implemented under co-fi nancing a number of major infrastructure projects from the federal and city budget. Among these, there are creating a special economic zone of technology-innovative type in the offi ces of «Neudorf» and «Novoorlovskaya», and Technopark «Ingria». Th e course of implementing the program is regularly examined by the city government.

For the activities mentioned in the Complex Program, the amount of RUR 1.6 billion was assigned in 2009. Much of these funds wasspent

Innovation Strategy: Th e Best Is a Friend of the GoodTh e global recession has transformed the accustomed thinking of Russia’s elite, traditionally oriented to maximizing the rents from natural resources of the country. A sharp drop in the global demand for energy commodities enforced switching the attention onto the innovative incentives for the development. St.Petersburg demonstrates exactness in reaching the relevant goals

in the course of engineering works on preparing the areas on both sites of the special economic zone and technopark.

Th e great begins from the smallTechnopark «Ingria» represents the targeted «nurturing» of small innovative enterprises, which is new for Petersburg. A business incubator with the same name is already successfully operating, where 25 young entrepreneurs are gaining experience. Not only are they mastering the basics of business, but also selling their ideas to the investors. E.g., during the last year they have managed to attract RUR 10.2 million for implementing their projects.

As explained by Elena Kayurova, Development Director of «Technopark St.Petersburg», «Ingria» expects the presence of as much as 80 residents by the end of 2010. Simultaneously, the cooperation with foreign investors is widening. Eight foreign companies have already expressed their consent to participate in considering the projects of starting-up entrepreneurs.

In early 2010, the main site of business-incubator «Ingria», for one and a half years providing its residents with a variety of business services, was supplemented by a new unit in the St.Petersburg State University of Information Technologies, Mechanics, and Optics. «Ingria-

ITMO» is a pilot project within the framework of «Ingria» program on cooperation with the universities of St.Petersburg «I2U», which aims to interact with the leading St.Petersburg universities, research centers, and organizations dealing in R & D. Th e purpose of the program «I2U» is the development of enterprising activity of the society by attracting talented young people into high-tech business. Today, «Ingria-ITMO» hosts a part of the residents and holds special events. In particular, in the mid-May of 2010 the IV International Forum «From Science to Business» was held, at this time devoted to the formation and activities of innovation zones around the institutions of higher education.

From the ideas to products Th e gap between the high level of scientifi c and theoretical training in the leading universities of Russia and a low degree of implementation of their ideas is one of the major problems in the innovation sphere. Speaking at the briefi ng «Innovative IT Business in Russia: Facts and Trends», Alexander Semenov, CEO of «KORUS Consulting», one of the largest IT companies in St.Petersburg, has admitted that the primary role of the IT industry in Russia is servicing the foreign software. Th e share of national software products competitive on the Russian domestic and international markets is extremely low. In Russia, no more than 10 IT companies have an annual turnover of more than $ 100 million.

Among the best, Alexander Semenov mentioned Petersburg group of companies «Transas» that started from the scratch 20 years ago and managed to dominate the world markets of commercial maritime simulators (with the share of 45%), integrated navigation systems of electronic geolocation (35%), and shore-based traffi c control systems for vessels (20%). «Transas» is also the leader in the development TE

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The latest model of marine navigation simulator, designed at the St.Petersburg group of companies «Transas»

Page 23: dk11

Saint Petersburg: People, Resources, Opportunities 23

Opportunities: Innovationsof the whole spectrum of navigation equipment and simulators for aviation and multi-purpose unmanned systems. Th e company has also become one of the main ideologists of all the world's marine and aviation electronics, and the largest supplier of end-products in the world and the Russian market.

«From the very beginning, we considered how to build a business on technological innovation, how to organize a system of marketing and sales», said Dmitry Semenov, General Director of ZAO «Transas Technologies». «We realized that we had to join the market not with the product already on off er, but with the product that should be there».

And today, «Transas» has offi ces or agents in over 110 countries worldwide, while the annual turnover of the group reached $250 million in 2009

Valentin Makarov, President of NP RUSSOSOFT, a structure that unites more than 65 companies — software developers, believes that the number of such enterprises in St.Petersburg could be much greater, should the city adopt a large-scale program to support high-tech exports and implement the concept of the IT cluster.

Claster-maniaIn 2010, as part of the Complex Program for Implementing the Innovation Policy in St.Petersburg, eff orts will focus on building clusters. Th us, according to Evgeny Elin, Chairman of the Committee for Economic Policy, Trade and Industry, the fi nancing for the development of clusters will be increased by 15 times, up to RUR 118 million. In 2010, under the cluster development, grants will be provided to reimburse the expenses concerning the purchase of industrial and technological equipment for the centers of shared access; a

center prototyping and industrial design will also be set up, rendering the services to the enterprises belonging to Petersburg clusters

Such attention of the city government to implementing the state regulation of economic activity, which is now in fashion in whole world, has caused a boost of cluster initiatives in St.Petersburg. Th e existing cluster of automotive component manufacturers is complemented with Innovation Technology cluster for engineering and metalworking.

In February 2010, the city government approved the concept of development of the pharmaceutical cluster, and immediately announced the formation of a cluster of innovative companies dealing in energy saving.

Th e boost of the initiatives on creating new clusters, originating from both government and the business, still continues, which demonstrates a desire to learn an eff ective way to use the budget and private funds in the innovation sphere.

Statistics

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Volume of software export of Russia, $ billion

2005 0.97

2006 1.45

2007 2.20

2008 2.65

2009 2.60

Source: NP RUSSOFT

Shares of addressed venture investments in Russia, 2008 %

IT 49.4

mobile technologies 9.3

new materials 7.6

equipment 7.5

power industry 7.3

engineering 5.7

petrochemicals 3.8

nanotechnologies 3.6

other 5.8

Source: www.nanonewsnet.ru

Share of science-intensive civil products in the world trade (%)

USA 36

Germany 17

China 6

Russia 0,5

Source: RAS

partner of the edition: Chamber of Commerce & Industry of St.Petersburg

Th e attention of city government to imlementing the state regulation of economic activity, which is now in fashion in whole world, has caused a boost of cluster initiatives in St.Petersburg

Page 24: dk11

24 Businness Map of Russia

Opportunities: Tourism

It is approximately estimated that the business travel market in Russia is gradually expanding: its turnover is up to $ 2 billion a year. And although during the past year and a half, it «dropped» by 25–30%, in the long term

(until 2020), the volume could grow to 5 times. And St.Petersburg is quite capable to compete for a signifi cant chunk of this money «pie».

Petersburg accent According to the company «Center of Evaluation and Consulting of St.Petersburg», the local area of rooms suitable for business meetings is over 43,000 sq. meters (over 80 sites). About a third of them are small rooms (up to 50 sq. meters), while the halls of 1,000 sq. meters make up only 1% of the premises.

An important characteristic of business tourism market of St.Petersburg is that the 3 categories of rooms are in demand of the customers. Th ese are conference rooms, located in business centers and hotels (ranging from 50 to 200 sq. meters), modern grounds of 300–500 sq. meters of size, and large congress halls with the capacity of over 1,000 people.

In addition, the local market is characterized by a noticeable seasonality. Th e average occupancy rate of rooms is still 20–40% only, but in the «high» season (May–August), it reaches 80%.

Hospitality Industry: Eyes on the ClientStabilizing the economy and reviving the business travels give Petersburg a chance to compete on a par with global giants: right now, the northern capital of Russia is able to host international events of various levels of organizational complexity.

Th e development of business tourism is one of the strategic objectives of St.Petersburg Government. Its potential is estimated as very high. Given the simultaneous development of tourism infrastructure (airport, seaport, the emergence of new hotels), the growth of the demand for large conference area (above thousands of square meters) is expected.

Given this, St.Petersburg intends to implement several projects in the near future. And if this can be done, by 2020 the area of specialized facilities will be about 97,000 sq. meters (40,000 seats). And the experts consider the most benefi cial the occupancy area of multifunctional complexes, where the main functions are accommodating an exhibition, hotel, or offi ce.

It is expected that large complexes will appear in the central part of the city, where there is a reconstruction of the entire zone («New Holland», «Apraksin Yard»), in the districts located close to Strelna («Baltic Pearl»), as well as near the airport.

According to Aleksey Chichkanov, Head of the Committee on Investments and Strategic Projects (CISP) at the city government, it will have 2–3 years to bring to a new level the abilities of St.Petersburg with regard to organization of business meetings. And as a result, it is going attract to the northern capital the people of high solvent category.

Th e largest and most advances complex for business meetings is «LenExpo». In the future, the complexes may appear at Technopark in Novo-Orlovsky SEZ and the University of Communications, in Strelna and Vsevolozhsk. However, the closest to the implementation is the project of exhibition center Gazprom, which will be located near Pulkovo.

Enough for each and allIn 2004, in St.Petersburg there were only 7,000 hotel beds. However, after the start of the program «555», nine major hotels were put into operation in St.Petersburg already in 2006, another nine — in 2007, and 3 more big hotels — in 2008. Hundreds of mini-hotels emerged in the city.

According to CISP, by the end of 2009, in St.Petersburg there were more than 620 accommodation facilities with overall capacity of almost PAX 27,000 (120 of them were the hotels). 80 of them have more than 50 rooms (totally, about 17,000 rooms). Th e total PAX number in the hospitality sector of St.Petersburg (including the capacity of mini-hotels) is 56,000.

In 2009, despite the objective economic diffi culties, the city on the Neva riversides opened a number of new hotels. Among the most signifi cant new facilities, there are Congress Hotel Holiday Inn St.Petersburg-Moskovskye Vorota (557 rooms, 3*), M-Hotel (54 rooms, 3*), Grand Peterhof Spa Hotel (37 rooms), and hotel Terijoki (48 rooms, Zelenogorsk). Besides, Moscow Hotel was incremented by 90 rooms at once, while Corinthia St.Petersburg — by 107 rooms. At the end of the year, Reval Hotel Sonya was opened — a new large (173 rooms) hotel of level 4*, built to a unifi ed design concept in the center of the northern capital.

According to Maris Properties, right now, there are about 5 hotel rooms per 1,000 residents TE

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Fragment of a scale model of multifunctional residential micro-district «Baltic Pearl»

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Saint Petersburg: People, Resources, Opportunities 25

Opportunities: Tourismof the northern Russian capital; if the due pace of constructing the hotel estate is going to be kept, in 7–10 years the average European level may well be achieved.

Th e largest share of the St.Petersburg hotels falls on the hotels of category 3* (43% of the total). Th ese are followed by accommodation objects of economy class (32%), 4* (14%), and 5* (10%)

A sign of the times also became a rapidly growing interest of St.Petersburg accommodation facilities to participate in global and online reservation systems.

According to the company Nota Bena, by 2010 it was possible to book a room at 233 Saint Petersburg hotels, representing 32% of the total number of all bookable hotels of Russia (for comparison, in Moscow — only 20%).

Currently, there are over 30 hotels in St.Petersburg at a construction stage, totalling 6,000 rooms. Th e city may appear Several hotels of Deluxe categories also could appear, which could be arranged in historical buildings. Investments in such projects as «Th e House with Lions» on St. Isaac's Square (it is going to house Four Seasons Hotel Lion Palace St.Petersburg) are promising.

Attract by the eventsWhat is needed for running the business meetings? Hotels, conference rooms, and meeting rooms — of course. But the transportation service, and excursion program, and lots of other services are also necessary.

Recently Petersburg started to proactively shape the program of events. Among them, there are the City Birthday and «Scarlet Sails», and a number of festivals, which are held at the highest level.

According to Sergey Korneev, Vice-President of the RST, «a well-organized holiday is an excellent reason to attract tourists not only in

high, but in any other season». Perhaps not by chance in 2010, during the celebration of the city birthday, one of the largest traditional business activities took place in St.Petersburg — International Banking Congress.

And the level of the events held in the city at the Neva River is going to be raised all the time.

At a scheduled meeting of the Baltic Governors Club, Valentina Matvienko make the motion to «ring up» the North-West, by implementing the

idea of «Silver Ring» — a project similar to the «Golden Ring». «Let’s get together and build it», she suggested to the colleagues. «St.Petersburg will be an anchor city, but Pskov, and Novgorod, and Karelia, and other regions shouldbe included into it. We must think together over its ideology. I am sure that our ring would have no less tourists travelling around than the Golden one».

Statistics

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Right now, there are about 5 hotel rooms per 1,000 residents of St.Petersburg. If the pace is going to be kept, in 7–10 years the European level will be reached

Hotels mappingonto the districts (2009, %)

District %

Central 45.8

Admiralteyskiy 9.7

Petrogradskiy 8.2

Vasileostrovskiy 5.2

Kurortny 4.2

Moskovskiy 4.2

Pushkinskiy 3.5

Vyborgskiy 2.7

Kirovskiy 2.5

Krasnogvardeyskiy 2.5

Frunzenskiy 2.5

Other districts — less than 2 %

hares of hotel operators in the structure of PAX St. Petersburg (%)

Hotel %

Rezidor SAS 37.5

Sokotel 15.0

InterContinental Hotels Gr. 9.5

Accor 7.7

Rocco Forte 7.1

Corinthia 6.6

Mariott 5.5

Orient Express 5.1

Kempinski 3.4

Best Western 2.6

Source: Becar Realty Group

partner of the edition: Chamber of Commerce & Industry of St.Petersburg

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26 Businness Map of Russia

Opportunities

— Which is the role of business associations in

overcoming the hard times in the economy?

Has the tandem of Chambers of Commerce

and Industry of RF and St.Petersburg

managed to convey the opinion of the

business community to the government and

infl uence the decision-making policy for the

economy getting out of the recession?

— Regardless of the «economic weather», we see our role in the development of St.Petersburg economy and in providing full support to the business community. In October of 2008, a commission was created at the Chamber to counteract the economic recession in the city. We did a targeted job, through the working groups and committee meetings, and all this time addressed the urging industry issues. In 2009, only on our site more than 50 public events took place — conferences, seminars, or round tables, that, one way or another, discussed the issues of recession. Among them, there were an «anti-crisis» meeting of the Council of St.Petersburg CCI, a joint meeting of the Committee on Financial Markets and Credit Organizations and the Committee for Support and Development of Small-scale Businesses at the St.Petersburg CCI (involving also the Committee on Finance of the City), a roundtable on «St.Petersburg Regional Commodities Clearing Center and the St.Petersburg Chamber of Commerce: Supporting the Business during the Recession», negotiations with foreign business delegations, and many other meetings.

If we talk about «sore points», these are is still the administrative barriers and dozens of endorsements needed that the entrepreneurs face, and the interaction between business monopolies. Besides, the interest rates on loans remain extremely high. Recently, at my request, my colleagues monitored the banks of St.Petersburg, to clarify the terms under which one can get a loan. Th e results were upsetting.

«Th e recession forced the business to „open the eyes wide“ and seek the new opportunities»

During the recession, the role of public associations such as CCI is increasing: the business is in particular need of consultation, of fi nding reliable, «transparent» partners, and of special events, including those attended by the representatives of authorities

At the verge of XIV St.Petersburg International Economic Forum, Vladimir Katenev, President of St.Petersburg Chamber of Commerce and Industry, shared his thoughts on the role of NGOs in the development of national and regional economy.

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Saint Petersburg: People, Resources, Opportunities 27

OpportunitiesSberbank has proven to be the most merciful as of the interest rate – when lending up to a million roubles, they take 19% per annum. Th is is one of the few banks that give a loan at no charge. All other banks charge a commission of 2% to 3%. When in Europe 2–3% is a yearly rate, we have to pay it for a one-time operation.

As a result, the eff ective interest rate ranges from 19% to 29% per annum. Plus — monthly commission charged by some banks. Ultimately, the cost of credit may reach 40% per annum, which is impossible for low-scale businesses with small turnover and assets

As to the positive moments, in 2009 entrepreneurs were granted the Federal Law No 294-FZ «On protection of rights of legal persons and individual entrepreneurs...» that defi ned the new «rules of the game» for supervision bodies. Many of the articles of the law indeed give the reliable protection for small-scale business. For example, the General Prosecutor's Offi ce has not approved about 50% of unscheduled inspections because of the absence of grounds for an inspection or an audit without notifi cation.

Th is law has made one more gift for the business: the registration of certain types of activities now needs a notice fi ling only. By the end of 2009, this right was exploited by approx. 10,000 employers across the country, while St.Petersburg got into the top fi ve by the number of applications fi led in the Federal Service. In 2010, the task is to make the notifi cation procedure for registration of entrepreneurs a rule, while the endorsement should be an exception.

Besides, in 2009, the funding for the business support programs was quadruplicated. 65 regions of Russia launched the program of «grants to starting-up entrepreneurs». In 2010, the federal government is going to continue eliminating the administrative barriers.

Also planned is adoption of a new federal law on licensing. Th e licenses of entrepreneurs who operate without a breach will be renewed automatically. Th e work will be continued to reduce the pressure on entrepreneurs by the tax authorities.

— How does work the interaction between

the CCI and other business structures

and St.Petersburg authorities? Are there

examples that the new laws or amendments

to existing acts that regulate the economic

activity have been made by the initiative of

business?

— Th e Chambers of Commerce, public and business associations, and industry associations seek to eff ectively cooperate with

the authorities. We work closely with regional and federal governmental bodies, participate in the sessions of St.Petersburg Government, and invite the offi cials to our events; we off er the law-making initiatives and prepare the resolutions on the urgent issues of business development.

According to Article 12 of Chapter 3 of the Articles of St.Petersburg CCI, the Chamber has the right to participate in drafting the laws of St.Petersburg and the normative acts of executive power of St.Petersburg. During 2009,

Chambers of Commerce and Industry of Russia and St.Petersburg actively participated in legislative activities: they provided expert assessments on the laws, most important for the economy and business, participated in the expert advice of the relevant committees at the State Duma, and suggested the amendments to the laws.

As a result, due to the participation of the RF and St.Petersburg CCI, 15 federal laws were accepted in 2009, including anti-crisis package and taxation laws, as well as laws aimed at encouraging the innovations.

— Has St.Petersburg managed to use

the foreign experience of organizing

the economic activity? Which role plays

St.Petersburg CCI in this dialogue with

colleagues from other countries?

— We work directly with leading foreign chambers of commerce. Among our partners, there are over 90 chambers of the national and regional level in Europe, Asia and the U.S., with whom we have signed 107 agreements on cooperation.

Department of External Relations of St.Petersburg Chamber of Commerce is coordinating our international activities. We study the international experience of business, share the information and reciprocate the visits with foreign and Russian Chambers of Commerce, and estimate the prospects of diff erent regions and countries.

In 2009, we received a large number of foreign delegations, and ran over 70 events with foreign partners. Business people from other countries need to enter new markets too, and seek reliable customers, partners, suppliers, and distributors abroad.

Th e recession has raised the chances of fi nding partners abroad, and literally forced the entrepreneurs of all countries «to open the eyes wide» and search for new opportunities.

We do not just run business seminars, business meetings, industry conferences, and forums for foreign partners. St.Petersburg CCI announces all the activities on the corporate

website, holds the mailing of information materials, and provides the advice on foreign trade for Russian and foreign businesspeople. Along with St.Petersburg Administration, we regularly organize business missions abroad.

— Which are the main areas of focusing the

collective eff orts of St.Petersburg CCI?

— We intend to more actively engage the new companies into our membership, as well as continue working with current members of the Chamber.

In 2011, St.Petersburg CCI is celebrating its 90th anniversary. Th e wide-ranging activities of the anniversary year will be held with the vivid participation of business communities of St.Petersburg, Russia, and other countries, and

will further promote the role of the country’s oldest chamber in the exploration of Russian business space. Currently, the preparatory work is in progress, and the organizing committee for the celebration of the 90th anniversary is being formed.

Th e plans of the Chamber include the development of all areas to support entrepreneurs, assisting the authorities to attract investment into the economy of St.Petersburg, expanding contacts with foreign partners, implementing special programs to support small and medium-scale businesses, improving the quality of services rendered, and socio-oriented activities.

DIRECTORY

«SOCIALLY RESPONSIBLE

BUSINESS OF RUSSIA.

THE EXPERIENCE

OF THE BEST COMPANIES»

SPECIAL PROJECT

OF PUBLISHING HOUSE «RIAL»

AND THE NEWSPAPER «EKONOMIKA I VREMYA»

DISTRIBUTED AMONG THE MEMBERS

OF CHAMBERS OF COMMERCE AND

INDUSTRY OF RUSSIAN FEDERATION

Our experience shows that, despite the era of Internet and the advanced ways of information exchange, most eff ective forms of cooperation with foreign partners remain b2b-presentations and personal negotiations

partner of the edition: Chamber of Commerce & Industry of St.Petersburg

Page 28: dk11

28 Businness Map of Russia

TOP 100NAME ACTIVITY ADDRESS PHONE NUMBERS TAKINGS, RUR 000

1 OOO «Kompozitsiya — Upravlenie Aktivami»

Investments in securities 69-71 litera А, Marata ul. 191119 St.Petersburg (812) 326-1305 ext. 1841; (812) 326-1905; (812) 326-1305

790281050

2 ОАО «GazProm Neft» Wholesale of fuel 5 litera А Galernaya ul., 190000 St.Petersburg (812) 449-3091; (495) 777-3112 584497934

3 OOO «LUKOIL-St.Petersburg TRADE» Wholesale of solid fuel 15 Grodnenskiy per., 191014 St.Petersburg (812) 449-8679; (812) 449-8679 397143779

4 Upravlenie Kapitalom (OOO) Investments in securities 69-71 litera А Marata ul., 191119 St.Petersburg (812) 908-3115 139644223

5 ОАО «SIBUR HOLDING» Production of petroleum derivatives 5 litera А Galernaya ul., 190000 St.Petersburg (812) 325-1187; (812) 377-7777 131947624

6 ZAO «LenRos Invest» Investments in securities 69-71 litera А Marata ul., 191119 St.Petersburg (812) 326-1305; (812) 326-1205 112111000

7 OOO «Finansovoe Agentstvo» Investments in securities 69-71 litera А Marata ul., 191119 St.Petersburg (812) 326-1305 109914295

8 ZAO «FEDERATSIYA» Wholesale of glassware and ceramics Offi ce 14, 42 Borovaya ul., 192007 St.Petersburg (812) 291-2153; (812) 511-8093; (812) 515-1251; (812) 542-8914

100851320

9 OOO «AFI» Investments in securities 69-71 litera А Marata ul., 191119 St.Petersburg (812) 326-1305 98763848

10 OOO Finance Group «Web-invest» Investments in securities 69-71 litera А Marata ul., 191119 St.Petersburg (812) 326-1305; (812) 326-1350 98221648

11 ОАО ««Baltika Brewery» Production of beer 6, 3-y Verkhniy per., 194292 St.Petersburg (812) 329-9101; (812) 329-9108; (812) 329-9110; (812) 598-8623

92343230

12 ОАО «RosTeleCom» Telephone communications 15 Dostoevskogo ul., 191002 St.Petersburg (812) 764-0927; (495) 787-2849 63201652

13 OOO «Lenta» Other retail via non-dedicated shops 112 Savushkina ul., 197374 St.Petersburg (812) 322-0722 53163428

14 OOO «O'KEY» Retail of non-frozen foodstuff s, including beverages and tobacco, via non-dedicated shops

65-1 litera А Zanevskiy pr., 195213 St.Petersburg (812) 723-1054; (812) 118-4498; (812) 703-7103

51574042

15 OOO «AgroTorg» Retail of non-frozen foodstuff s, including beverages and tobacco, via non-dedicated shops

90/92 Nevskiy pr., 191025 St.Petersburg (812) 723-1069; (812) 295-4356; (812) 327-3912; (812) 123-2221

50828505

16 OOO «GazProm TransGaz St.Petersburg» Gas pipelining 3 Varshavskaya ul., 196128 St.Petersburg (812) 324-4201; (812) 324-4252; (812) 324-4255; (812) 389-2201

47162873

17 KIT Finans IB (OOO) Investments in securities 69-71 litera А Marata ul., 191119 St.Petersburg (812) 326-1305 41928488

18 OOO «TransOil» Servicing the cargo transportation 18 А Petrogradskaya nab., 197046 St.Petersburg (812) 996-1007; (812) 332-2200 40920197

19 ZAO «PETERBURGREGIONGAZ» Wholesale of other liquid and gaseous fuel 20-22 litera А Galernaya ul., 190000 St.Petersburg (812) 740-5573; (812) 324-5190 3948555320 ОАО «SIBUR-RUSSKIE SHINY» Wholesale of car spare parts, units, and accessories 5, litera А Galernaya ul., 190000 St.Petersburg (812) 633-3219; (812) 633-3225 39292398

21 ОАО «Ilim Group» Production of pulp, groundwood fi ber, paper, and cardboard

17 Marata ul., 191025 St.Petersburg (812) 718-6040 37920433

22 ОАО «AK «TRANSAERO» Providing the scheduled aerial passenger transportation

48 litera АLiteyny pr., 191014 St.Petersburg (812) 327-8450; (495) 937-8469 37404745

23 ОАО «PETERBURGSKAYA SBYTOVAYA KOMPANIA»

Distribution of electric power 11 Mikhaylova ul., 195009 St.Petersburg (812) 303-9711; (812) 336-6936 35343473

24 ОАО «TGK-1» Production of electrical energy by thermal power plants

1 Marsovo Pole, 191186 St.Petersburg (812) 318-3167; (812) 318-3919; (812) 318-3339; (812) 494-3654

31127227

25 FGUP «Goznak» Production of paper and cardboard 3 litera В Petropavlovskaya Krepost, 197046 St.Petersburg (812) 324-1408 29250354

26 ZAO «ITZ» Production of steel pipes and fi ttings 1 Lenina pr., Kolpino, 196651 St.Petersburg (812) 267-9036; (812) 267-9357; (812) 482-9548; (812) 481-8575

28992508

27 ОАО «Silovye Mashiny» Production of steam turbines 3 litera А Vatutina ul., 195009 St.Petersburg (812) 346-7039; (812) 388-3172 27540707

28 GTK «ROSSIYA» Providing the scheduled aerial passenger transportation

18-4 Pilotov ul., 196210 St.Petersburg (812) 704-3302; (812) 704-3523 26771363

29 OOO «Web-invest.ru» Investments in securities 69-71 litera А Marata ul., 191119 St.Petersburg (812) 324-6675; (812) 326-1305; (812) 176-7864

26191441

30 ZAO «ADEKTA-KAPITAL» Other wholesale 15 litera З Chapaeva ul., 197101 St.Petersburg (812) 327-9024 24768151

31 ОАО «SZT» Telephone communications 14/26 Gorokhovaya ul., 191186 St.Petersburg (812) 312-5861; (812) 312-9453; (812) 315-4105; (812) 315-7397; (812) 315-8025; (812) 595-4576

24499896

Rating of the major enterprises of St.Petersburg*

* Net takings due to sale of goods, products, works, and services (less VAT, excises, and similar mandatory payments) (line 010 of Form № 2 of the balance sheet) (RUR 000). Source: RosStat

Page 29: dk11

Saint Petersburg: People, Resources, Opportunities 29

TOP 100NAME ACTIVITY ADDRESS PHONE NUMBERS TAKINGS, RUR 000

32 OOO «LUKOIL-Severo-ZapadNefteProduct»

Wholesale of motor fuel, including gasoline for aircrafts

74 litera А Sinopskaya nab., 191124 St.Petersburg (812) 275-2768; (812) 346-8080 24457182

33 OOO «Petro» Production of tobacco articles 71 Petergofskoe shosse, 198206 St.Petersburg (812) 329-3800; (812) 329-3808; (812) 329-4020; (812) 329-3591

24053300

34 OOO «Offi ce computer systems» Wholesale of computers and peripherals 68 litera Д B. Sampsonievskiy pr., 194100 St.Petersburg (812) 324-2860; (812) 380-0303; (812) 320-1816; (812) 324-2560

23705634

35 ОАО «SIBUR-MINUDOBRENIYA» Production of fertilizers and nitrates 5 litera А Galernaya ul., 190000 St.Petersburg (812) 777-5500; (495) 777-5500 21787246

36 OOO «RusAgro» Other wholesale Offi ce 6Н litera К37 63 Nepokorennykh pr., 195067 St.Petersburg

(812) 726-8937; (812) 461-7515; (812) 543-6162

21731199

37 ОАО «MetroStroy» Consulting on commercial activity and management 52 А Zagorodny pr., 190013 St.Petersburg (812) 234-4161; (812) 235-5601; (812) 316-6803

20862962

38 ОАО «LENENERGO» Production of electrical energy by thermal power plants

1 Konstitutsii pl., 196247 St.Petersburg (812) 595-8613; (812) 494-3254; (812) 494-3171; (812) 219-3380; (812) 219-3171; (812) 318-3246

20827799

39 OOO «BALTTRANSSERVIS» Railway transportation 115 Metallistov pr., 195197 St.Petersburg (812) 233-8992; (812) 325-5010; (812) 326-6510; (812) 326-5028

19832808

40 OAO «LGSS» General construction works on pipelines, communication lines, and electric power supply lines

30 Pulkobskoe shosse, 196158 St.Petersburg (812) 444-2555; (812) 444-7648; (812) 147-2502; (812) 747-2502

19607900

41 OOO «G M Avto» Production of cars 2 Avtozavodskaya ul., Shushary, 196626 St.Petersburg (812) 336-7325; (812) 332-5014; (812) 332-5015

19366538

42 OOO «PTK-TERMINAL» Wholesale of motor fuel, including gasoline for aircrafts

125 Piskarevskiy pr., 195273 St.Petersburg (812) 249-0249; (812) 538-6778; (812) 545-4644; (812) 545-4657

19245814

43 OOO «LUKOIL - BUNKER» Wholesale of fuel 5 litera А Fokina ul., 194044 St.Petersburg (812) 718-6899; (812) 346-8517; (812) 346-85-2; (812) 346-8510

19140761

44 ZAO «Multon» Production of fruit and vegetable juices 14 Sofi yskaya ul., 192236 St.Petersburg (812) 766-9203; (812) 123-1418; (812) 103-4401; (812) 103-4401

17802051

45 OOO «OPKh» Production of beer 24 litera А Telmana ul., 193230 St.Petersburg (812) 326-8585; (812) 388-6086 16863810

46 GUP «VodoKanal St.Petersburg» Water distribution 42 Kavalergardskaya ul., 191015 St.Petersburg (812) 274-1090; (812) 274-1093; (812) 326-5222; (812) 326-5229; (812) 326-5252; (812) 466-6238

16720485

47 ZAO «BK «Adekta» Stock brokerage 15 litera З Chapaeva ul., 197101 St.Petersburg (812) 327-9383; (812) 327-9024 15552926

48 OOO «AS «ROSSI» General construction works Apt. 20, 22 Galernaya ul., 190000 St.Petersburg (812) 312-0198 15268225

49 ОАО «SevZapElectoSetStroy» General construction works on trunking pipelines, communcation lines, and electric power supply lines

111-3 Nevskiy pr., 191036 St.Petersburg (812) 277-7836; (812) 277-7938; (812) 431-9997

14937867

50 ZAO «Russkaya Rybnaya Kompania» Non-dedicated wholesale of foodstuff s, including beverages

65 Dnepropetrovskaya ul., 192007 St.Petersburg (812) 611-1016 14222224

51 ZAO «DIXI-PETERBURG» Retail of foodstuff s, including beverages and tobacco articles via dedicated shops

10/7 litera А, 3-ya Krasnoarmeyskaya ul., 190005 St.Petersburg (812) 718-3761; (812) 118-7601; (812) 118-7613; (812) 118-7612

14025702

52 GUP «TEK SPb» Production of steam and how water (thermal energy) by boiler-houses

12 Malaya Morskaya ul., 190000 St.Petersburg (812) 312-3765; (812) 312-5866 13680821

53 ОАО «MostoOtryad №19» General construction works on bridges, above-ground roads, tunnels, and underground roads

77 А Lenina pr., Krasnoe Selo, 198320 St.Petersburg (812) 732-1927; (812) 132-4545; (812) 141-1927; (812) 141-3131; (812) 326-4331; (812) 326-4371

13367121

54 OOO «KIT FINANS» Brokerage 69-71 А Marata ul., 191119 St.Petersburg (812) 326-1305 13022602

55 ОАО «AK TRANSNEFTEPRODUKT» Petroleum pipelining 14-1 Kollontay ul., 193318 St.Petersburg (495) 915-9055; (812) 719-2710 12755145

56 ZAO «BAT-SPb» Production of tobacco articles 38, 3-ya Konnaya Lakhta, 197229 St.Petersburg (812) 326-3600 12264508

57 OOO «PRODIMPORT» Wholesale of meat, poultry, and derivatives and preserves of meat and poultry

91 Sofi yskaya ul., 192289 St.Petersburg (812) 571-0087; (812) 340-2860; (812) 572-1965

12219433

partner of the edition: Chamber of Commerce & Industry of St.Petersburg

Page 30: dk11

30 Businness Map of Russia

TОP 100NAME ACTIVITY ADDRESS PHONE NUMBERS TAKINGS, RUR 000

58 OOO «Neste Sankt-Peterburg» Retail of motor fuel 32-А Pulkovskoe shosse, 196158 St.Petersburg (812) 718-4141; (812) 295-5449; (812) 295-9284; (812) 295-9832

11736570

59 GUP «Peterburgskiy Metropoliten » Activity of underground lines 28 Moskovskiy pr., 190013 St.Petersburg (812) 259-7975; (812) 301-9659; (812) 301-9899; (812) 316-3257; (812) 301-9700; (812) 251-6668

11551060

60 ZAO «GENEZIS» Wholesale of pharnaceuticals and medications, medical equipment, and prthopedic articles

8 Tipanova ul., 196135 St.Petersburg (812) 291-8457; (812) 315-1433; (812) 329-5699; (812) 371-8457

11467746

61 OOO «NKK» Wholesale of computers and peripherals Offi ce 91, 3A, 3-y Rybatskiy proezd, 192177 St.Petersburg (812) 951-0356 11273887

62 ZAO «GazPromNeft — Severo-Zapad» Wholesale of motor fuel, including gasoline for aircfafts

10 Sovetskiy pr., Sestroretsk, 197706 St.Petersburg (812) 346-2702; (812) 346-2782; (812) 356-9200; (812) 449-3081; (812) 441-3081

11230870

63 OOO «GazPromNeft MARIN BUNKER» Wholesale of fuel 16-2 Dvinskaya ul., 198035 St.Petersburg (812) 449-3091; (812) 449-4973 11009087

64 ОАО IK «OFTs» Brokerage 69 Chaykovskogo ul., 191123 St.Petersburg (812) 710-5826; (812) 571-0011; (812) 315-4918; (812) 314-9454

10826609

65 OOO «MAKSIDOM» Other retail via non-dedicated shops 12 Favorskogo ul., 195220 St.Petersburg (812) 535-4998; (812) 535-5444; (812) 535-5453; (812) 535-3501; (812) 324-5544

10735615

66 OOO «ORIMI TRADE» Wholesale of coff ee, tea, cocoa, and spices 21 Gzhatskaya ul., 195220 St.Petersburg (812) 327-1093; (812) 542-7023; (812) 542-7810

10595402

67 ZAO «VAD» General construction works on roads, railways, and landing lanes of airfi elds

Offi ce 14 Н, 22/13 litera А Tikhoretskiy pr., 194064 St.Petersburg

(812) 245-7941; (812) 394-2444; (812) 967-2583; (812) 967-2587; (812) 321-6271; (812) 312-6271

10412722

68 OOO «LAVERNA» Wholesale of sanitary equipment

19 Mechnikova ul., 195271 St.Petersburg (812) 327-4302; (812) 543-4998; (812) 545-1442; (812) 543-1609; (812) 329-1474

10390932

69 OOO «Trend» Investments in securities 69-71 litera А Marata ul., 191119 St.Petersburg (812) 326-1320; (812) 314-4477; (812) 326-1305

10312356

70 ZAO «LMS-TELEKOM» Other activity on electric communications Offi ce С 437, 151 Leninskiy pr., 196247 St.Petersburg (812) 329-1988 10192945

71 OOO «KEY» Retail ofcomputers, software, and peripherals 8 Marata ul., 191025 St.Petersburg (812) 713-5535; (812) 113-5764; (812) 279-8707; (812) 325-3216; (812) 347-5020

9357054

72 OOO «ZARYA» Wholesale of meat and poultry, including sub-products

91 Sofi yskaya ul., 192289 St.Petersburg (812) 271-7100; (812) 164-3433; (812) 252-2441; (812) 224-1788; (812) 764-3432; (812) 764-3433

9331435

73 OOO «MIRATORG SPB» Other wholesale 104-38, litera А,Б Oktyabrskaya nab., 193079 St.Petersburg (812) 326-2480; (812) 326-2493 9212216

74 ZAO «SevKabel» Other wholesale 31-2, Elizarova pr., 192148 St.Petersburg (812) 265-1060; (812) 567-0688; (812) 567-2948; (812) 567-5049; (812) 365-1060

9038204

75 OOO «ILIM EKSIM» Wholesale of other industrial chemicals 11 litera А Tyushina ul., 191119 St.Petersburg (812) 718-6098; (812) 460-2765; (812) 466-6606; (812) 332-2727

8976510

76 ОАО «TsKB MT «Rubin» R & D in natural sciences and engineering 90 Marata ul., 191119 St.Petersburg (812) 713-3102; (812) 113-5132; (812) 133-5132; (812) 210-1626; (812) 713-5132

8948296

77 ZAO «Business Computer Center» Wholesale of offi ce equipment 20 Kantemirovskaya ul., 194100 St.Petersburg (812) 245-7838; (812) 245-9093; (812) 327-4343; (812) 327-4444; (812) 295-9093

8883927

78 ZAO «SovEx» Wholesale of other liquid and gaseous fuel 35 Pilotov ul., 196210 St.Petersburg (812) 704-2728; (812) 104-3637; (812) 704-3637; (812) 327-2852

8838042

79 OOO «VETKA» Investments in property 17/5 Zheleznovodskaya ul., 199155 St.Petersburg (812) 324-7106; (812) 183-1456; (812) 184-1101; (812) 784-1101; (812) 334-0103; (812) 655-5635

8659792

80 OOO «NIK» Construction works on bridges, above-ground roads, tunnels, and underground roads

111/3 Nevskiy pr., 191036 St.Petersburg (812) 431-9813 8590592

81 ZAO «PO «Vozrozhdenie» General construction works on roads, railways, and landing lanes of airfi elds

4 А Mikhaylovskiy per., 198095 St.Petersburg (812) 252-2935; (812) 252-3062; (812) 326-8526; (812) 326-8538; (812) 326-8522; (812) 326-8889

8551651

82 ОАО «Khlebny Dom» Production of bread and pastry of short-term storage 18 А Smolenskaya ul., 196084 St.Petersburg (812) 292-1674; (812) 292-7611; (812) 316-1674; (812) 316-7611; (812) 118-8301; (812) 718-8358

8428601

83 ZAO «YuIT Lentech» General construction works on buildings 54 litera А Primorskiy pr., 197374 St.Petersburg (812) 430-5002; (812) 336-3767 8097200

84 ZAO «VtorCherMet» Recycling of waste and non-ferrous metal scrap 4 Khimicheskiy per., 198095 St.Petersburg (812) 252-1074; (812) 252-2166; (812) 252-7831; (812) 320-0756; (812) 252-5547; (134) 320-0440; (812) 320-0440

8040654

85 OOO «Inchkeyp Olimp» Retail of vehicles Apt. 433, 15 litera А , Ispolkomovskaya ul., 191167 St.Petersburg (812) 326-4007 8000357

86 ZAO «StroyMaster» Other retail via dedicated shops 15 Utkin pr., 195112 St.Petersburg (812) 326-3268 7645257

87 OOO «VALIO» Wholesale of dairy products 31, 18-ya Liniya V.O., 199178 St.Petersburg (812) 274-4347; (812) 327-7887; (812) 325-8303; (812) 332-1221

7529264

88 OOO «GPK «RUBEZH» Wholesale of meat and poultry, including sub-products

91 Sofi yskaya ul., 192289 St.Petersburg (812) 703-7574; (812) 773-8545; (812) 773-7574

7394735

89 ZAO «METALLURGICAL ZAVOD «PETROSTAL»

Production of sorted steel roll stock, hot-rolled and hammered

47 Stachek pr., 198097 St.Petersburg (812) 783-6442; (812) 183-8221; (812) 183-8372; (812) 183-8691; (812) 102-0220; (812) 783-8691

7329152

90 OOO «TD InterTorg» Other retail via non-dedicated shops Offi ce 9, 35-1 litera А, Ushinskogo ul., 195267 St.Petersburg (812) 703-1788; (812) 622-1090 7326010

91 ZAO «Imperia-Farma» Wholesale of pharmaceuticals and medications

Offi ce 20-Н, 34 litera Б, Shpalernaya ul., 191123 St.Petersburg (812) 272-7996; (812) 279-1996; (812) 279-2235; (812) 279-2296; (812) 346-5939

7318174

92 OOO «Faeton-Aero» Retail of motor fule 5/11 Krasnogo Kursanta ul., 197198 St.Petersburg (812) 225-2811; (812) 225-6291; (812) 230-3172; (812) 327-1593

7140948

93 ZAO «RUST Inc.» Wholesale of alcohol beverages, except for beer 52 litera А Pulkovskoe shosse, Shushary, 196140 St.Petersburg (812) 449-8040 6885710

94 ZAO «DSK «BLOK» General construction works on buildings 5, 3-y Verkhniy per., 194292 St.Petersburg (812) 301-5665; (812) 598-5232; (812) 598-5801

6882560

95 OOO «SMZ-SpetsStal» Production of semi-products (blank parts) for re-rolling

Izhorskiy Zavod, Kolpino, 196651 St.Petersburg (812) 322-8867; (812) 322-8346; (812) 322-8014; (812) 322-8521

6786589

96 ZAO «PKT» Transport container handling 5-3 Mezhevoy kanal, 198035 St.Petersburg (812) 714-9830; (812) 183-7313; (812) 184-0769; (812) 183-7340; (812) 783-7313

6593398

97 ZAO «RENEISSANCE CONSTRUCTION» General construction works on buildings 26 litera А Shatelena ul., 194021 St.Petersburg (812) 247-0986; (812) 552-6609; (812) 552-7532; (812) 140-6370; (812) 740-6370

6552982

98 OOO «EuroSet SPb» Retail of TV- and radio equipment 36/40 litera Ж Sredniy pr., 199004 St.Petersburg (812) 449-0980 6454289

99 OOO «KOMPANIA «ELITA» Wholesale of other building materials 37 litera А Sedova ul., 192148 St.Petersburg (812) 702-4240 6400097

100 OOO «TNK-VR Severnaya Stolitsa» Wholesale of fuel 98-1 Toreza pr., 194017 St.Petersburg (812) 703-9554; (812) 929-7481; (812) 332-0220

6332365

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Saint Petersburg: People, Resources, Opportunities 31

Regional supplement to the newspaper «Ekomika i Vremya»BUSINESS MAPBUSINESS MAP

OF RUSSIAOF RUSSIAMurmansk Region

+ English version

The next issue of«Business Map of Russia»will be devoted to Murmansk Region

distribution:«XXII International Forum «Russian Industrialist» September 17–20, 2010

II International Arctic Econimic Forum September 28 — October 1, 2010

media-kit → http://ev.spb.ru

editorial offi ce: +7 (812) 327-0305sales dept.: +7 (812) 327-8234 [email protected]

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