Doing business in St. Petersburg 2012

Doing business in St. Petersburg
St. Petersburg Government - Committee for External Relations 1
St. Petersburg Foundation for SME Development

Doing business
in St. Petersburg
Guide for investors, exporters and start-ups
The current publication was developed by St. Petersburg Foundation for SME Development by the
order of the St. Petersburg Government - Committee for External Relations in collaboration with the
following international legal, certification, real estate and human resources firms: Baker & McKenzie,
SGS Group, Adecco, Jones Lang LaSalle.

© 2012 St. Petersburg Government - Committee for External Relations. St. Petersburg Foundation
for SME Development. All rights reserved. International copyright.
Any use of materials of this publication is possible only after written agreement of St. Petersburg
Foundation for SME Development and relevant contributing firms.
Online version is available at: www.kvs.spb.ru and www.doingbusiness.ru

2 St. Petersburg Government - Committee for External Relations

Table of contents
1. The city ....................................................................................................................... 6
1.1. Geography ............................................................................................................................. 6
1.2. Public holidays and business hours ....................................................................................... 7
1.3. Population ............................................................................................................................. 7
1.4. Political system...................................................................................................................... 8
1.5. Economy .............................................................................................................................. 11
1.6. Foreign trade ....................................................................................................................... 13
1.7. Foreign investment ............................................................................................................. 15
1.8. International cooperation ................................................................................................... 16
1.9. Culture ................................................................................................................................. 17
1.10. Science and education ........................................................................................................ 18
1.11. Transport infrastructure...................................................................................................... 19
2. Key industry sectors .................................................................................................. 20
2.1. Overview of St. Petersburg’s industry ................................................................................. 20
2.2. Transport machinery and equipment ................................................................................. 23
2.3. Electrical and optical equipment ........................................................................................ 26
2.4. Food and beverage production ........................................................................................... 30
3. Key business clusters ................................................................................................ 34
3.1. Automotive cluster .............................................................................................................. 34
3.2. Software and information technology services .................................................................. 37
3.3. Pharmaceutical cluster ........................................................................................................ 48
3.4. Shipbuilding cluster ............................................................................................................. 57
4. Business solutions..................................................................................................... 62
4.1. Headquarters ...................................................................................................................... 63
4.2. Research & Development ................................................................................................... 65
4.3. Production сenter ............................................................................................................... 68
4.4. Distribution сenter .............................................................................................................. 75
4.5. Test market ......................................................................................................................... 77
5. Doing business .......................................................................................................... 79
5.1. Russian Judicial System ....................................................................................................... 79
5.2. Promoting Foreign Investment in Russia ............................................................................ 85
5.3. Establishing a Legal Presence .............................................................................................. 89
5.4. Competition Protection Law ............................................................................................... 96
5.5. Corporate Compliance ...................................................................................................... 105
5.6. Taxation ............................................................................................................................. 109
5.7. Customs ............................................................................................................................. 130
5.8. Currency Regulations ........................................................................................................ 143
5.9. Employment ...................................................................................................................... 146
5.10. Property Rights .................................................................................................................. 153
5.11. Privatization ...................................................................................................................... 165
5.12. Language Policy ................................................................................................................. 167
5.13. Civil Legislation .................................................................................................................. 169
5.14. Intellectual Property ......................................................................................................... 171
5.15. Product conformity assurance in Russia ........................................................................... 175
5.16. Banking .............................................................................................................................. 181


6. Costs of doing business ........................................................................................... 187
6.1. Costs of starting a company .............................................................................................. 187
6.2. Human resources .............................................................................................................. 189
6.3. Office, retail and warehouse market ................................................................................ 195
6.4. Communication ................................................................................................................. 201
6.5. Utilities .............................................................................................................................. 202
7. Contacts of business support infrastructure ............................................................ 204
7.1. Overview of the business support infrastructure in St. Petersburg................................. 204
7.2. Authorities......................................................................................................................... 204
7.3. Investment support ........................................................................................................... 207
7.4. SME business cooperation support................................................................................... 209
7.5. SME support ...................................................................................................................... 211
7.6. Financial support ............................................................................................................... 213
7.7. Techno parks and business incubators ............................................................................. 215
7.8. Educational programs and internships ............................................................................. 217
7.9. Chambers of commerce and industry ............................................................................... 218
7.10. Business associations ........................................................................................................ 218
7.11. Audit, tax and consulting firms ......................................................................................... 219
7.12. Banks ................................................................................................................................. 220
7.13. Certification and testing .................................................................................................... 220
7.14. Exhibitions ......................................................................................................................... 221
7.15. Law firms ........................................................................................................................... 221
7.16. Real estate ......................................................................................................................... 222
7.17. Recruitment....................................................................................................................... 222
7.18. Transport and logistics ...................................................................................................... 223
8. Authors and contributors ........................................................................................ 224


Welcome to St. Petersburg
I would like to welcome you to St. Petersburg, one of the largest centers
of international cooperation in Russia and Europe. The city is a member
of leading international and regional organizations and has bilateral
cooperation agreements with 89 foreign cities and 27 foreign regions.
Every year St. Petersburg hosts more than 200 international events,
including the world’s famous St. Petersburg International Economic
Forum.
St. Petersburg has always been and remains an attractive location for
foreign investors due to an established and effectively operating system
aimed at supporting investment activity. In 2011 foreign trade turnover
reached 53.2 billion US dollars. St. Petersburg has trade relations with
187 countries, including such major trade partners as China, Germany,
Netherlands, Finland, Japan and USA. 1,192 large and medium-sized
companies with participation of foreign capital operate in the city. The
city has successfully implemented a number of large-scale international
projects, including the construction of car manufacturing plants of the
world car giants. Some of the actively developing clusters with
participation of international companies include pharmaceutical cluster
and information technologies cluster.
St. Petersburg welcomes you and is ready for cooperation!
Alexander Prokhorenko
Member of St. Petersburg Government
Chairman - Committee for External Relations

Welcome to St. Petersburg, the city of enormous business opportunities
and development potential. St. Petersburg is one of the largest
economic, transport, academic, cultural and tourism centers in Russia as
well as a growing economy with a thriving private sector and an
attractive business environment.
Favorable economic and geographical location in the European part of
Russia, developed infrastructure, extensive scientific, research and
educational potential, highly skilled workforce as well as broad market
and competitive operating costs facilitate the development of efficient,
safe and stable business. During the recent years many international
companies, including Coca-Cola, Pepsi, Gillett, Wrigley, British American
Tobacco, Bosch Siemens and many others, have already implemented
investment projects in St. Petersburg. All of them considered the city as
an ideal location for their business needs, whether it is an R&D center,
test market, production center or distribution hub.
We welcome you to St. Petersburg and will be glad to see you among
our partners and clients!
Maxim Balanev
Executive director - St. Petersburg Foundation for SME Development
Regional coordinator - Enterprise Europe Network, Gate2Rubin
Consortium – Russia, Module A Branch - St. Petersburg


1. The city
1.1. Geography

Coordinates: Latitude: 59° 57' North
Longitude: 30° 19' East
Area: 1,439 sq.km.
Climate: Maritime, with warm damp summers and moderately cold long winters
Average temperature: July: + 25 C
January: - 2 C
Time: MSK ( UTC+4)
Dialing codes: International country code: + 7 (Russia)
Area code: 812


1.2. Public holidays and business hours
Official holidays:  January 1-5 - New Year holidays
 January 7 - Russian Orthodox Christmas
 February 23 - Armed Forces Day
 March 8 - Women’s Day
 May 1 - International Labor Day
 May 9 - Victory Day
 June 12 - Day of Russia
 November 4 - National Unity Day
Business hours:  Offices: Mondays through Fridays - 9.00-18.00 (9 a.m. till 6 p.m.),
lunch break – 13.00-14.00 (1 p.m. till 2 p.m.)
 Banks: Mondays through Fridays - 9.00-18.00 (9 a.m. till 6 p.m.)
 Stores: Mondays through Saturdays - 10.00-19.00 (10 a.m. till 7
p.m.), most stores are also open on Sundays
 Restaurants: Mondays through Sundays – 12.00-23.00 (12 p.m. till 11
p.m.), many restaurants and cafes are open 24 hours

1.3. Population
Population 4,953,200 people
(01.01.2012):
Economically active 2,677,000 people
population (2011):
Unemployment rate 0.5%
(to % of economically
active population, 2011):
Population density 3,288.3 per sq. km.
(2010):
Gender ratio  male: 44.9%
(2011):  female: 55.1%
Population age Male and female (0-15) Male (16-59); Male
composition: female (16-54) (60 and above);
(2010): female
(55 and above)
12.9% 61.6% 25.5%
Median age  Total: 41.3 years
(2010):  Male: 38.2 years
 Female: 43.9 years
Birth rate 11.6
(per 1,000 people, 2011):
Death rate 12.5
(per 1,000 people, 2011):
Official language: Russian


1.4. Political system
City day: May 27. The city was founded on May 27, 1703
City name:  Conventional long form: Saint-Petersburg
 Conventional short form: St. Petersburg
 Local long form: Sankt-Peterburg | Санкт-Петербург
 Local short form: С.-Петербург | Петербург
 Former names: St.-Petersburg (1703-1914), Petrograd (1914-1924),
Leningrad (1924-1991), St.-Petersburg (1991- till present)

Administrative division: While the city is divided into 18 districts (rayons), each district is divided
into municipal formations. At the moment there are 111 municipal
formations (munitsipalnye obrazovaniya).

1. Admiralteysky District 10. Kurortny District
2. Vasileostrovsky District 11. Moskovsky District
3. Vyborgsky District 12. Nevsky District
4. Kalininsky District 13. Petrogradsky District
5. Kirovsky District 14. Petrodvortsovy District
6. Kolpinsky District 15. Primorsky District
7. Krasnogvardeysky District 16. Pavlovsky and Pushkinsky Districts
8. Krasnoselsky District 17. Frunzensky District
9. Kronshtadsky District 18. Central District


Political system:

Source: Business Support Structure in St. Petersburg

Executive branch: The City Administration (www.gov.spb.ru) is the superior executive body
of St. Petersburg headed by the Governor. The St. Petersburg
Administration is formed of the Governor, the Government, the
Governor's Chancellery, the city committees and the subordinate
administrative-territorial departments of the Administration.
Legislative branch: The Legislative Assembly of St. Petersburg (www.assembly.spb.ru) is the
standing effective supreme and sole legislative (representative) body of
the state authority in St. Petersburg.
Judicial branch: Charter Court of St. Petersburg (www.spbustavsud.ru), Judges of the
Peace of St. Petersburg (www.mirsud.spb.ru), City Court of St. Petersburg
(http://sankt-peterburgsky.spb.sudrf.ru), Arbitration court of St.
Petersburg and Leningrad region (www.spb.arbitr.ru) and Leningrad
Military Circuit Tribunal (http://leningradskyovs.spb.sudrf.ru).
Suffrage: 18 years of age; universal


Symbols
of St. Petersburg:

Coat of arms Flag
Diplomatic 55 consular offices are accredited in St. Petersburg, including:
representations:  34 consulates,
 1 embassy office,
 3 honorary consuls general,
 19 honorary consuls.


1.5. Economy
GRP of
St. Petersburg
(billion roubles): 2,137.9
1,917.4
1,673.7
1,431.8 1,473.3
1,119.7
825.1
666.4

2005 2006 2007 2008 2009 2010 2011E 2012E

Source: Committee for Economic Development, Industrial Policy and Trade

GRP per capita
in St. Petersburg
(thousand roubles): 428.9
389.2
343
310.6 321.5
245
180.3
145.2

2005 2006 2007 2008 2009 2010 2011E 2012E


GRP sectoral
composition 19% Industrial production
29%
(2012E):
Other

7% Real estate

Transport, communications,
tourism
10% Construction

17% Wholesale and retail trade
18%



City budget
(billion roubles): 404
355.8 322.2 358.6 399.5
339.1 315.6 347
278.1
259.3
186.2
179.9
120.3 129.9

2005 2006 2007 2008 2009 2010 2011

Revenues Expenditures


City debt Total: 8,520.7 million roubles, including
(01.01.2012): Share of internal debt: 100%
Share of external debt: 0%
Credit ratings : Long-term credit international scale ratings in foreign currency:
 Standard&Poor’s – BBВ (May 2012), forecast – stable
 Moody’s Investors Service – Baa1 (May 2011), forecast – stable
 FitchRatings – BBВ (January 2012), forecast – stable
Long-term credit national scale ratings:
 Moody's Interfax – Aaa.ru (July 2005)
 FitchRatings – AAA(rus) (January 2012), forecast – stable
Leading industries: Machinery, vehicle and equipment manufacturing, electronic and optical
equipment, food, including beverages and tobacco; metallurgy and
metalworking; chemical production.

Priority sectors/clusters: Automotive, pharmaceutical, shipbuilding, power plant engineering,
information technology, radiology, electronic engineering.


1.6. Foreign trade
Foreign trade turnover 32,656
(million USD):
25,734
23,643 24,524
20,685 20,577
17,786 17,839
14,177
12,658 13,437
11,817
10,116

4,914

2005 2006 2007 2008 2009 2010 2011
Export Import

Source: Territorial branch of the Federal State Statistic Service (Petrostat);
Northwestern Customs Directorate, Federal Customs Service

Main trade partners
(2011): Ukraine 2.8%
South Korea 3.7%
UK 3.9%
Italy 4.1%
USA 4.2%
Japan 4.6%
Finland 5.2%
Netherlands 8.2%
Germany 8.7%
China 14.4%

Source: Northwestern Customs Directorate, Federal Customs Service

Currency (code): Russian rouble (RUB)

Exchange rates:  RUB per EUR – 40.38 (2012)1, 40.28 (2011), 38.2 (2010), 43.35 (2009),
36.68 (2008), 34.63 (2007), 34.06 (2006)
 RUB per USD – 31.69 (2012)1,27.9 (2011), 31.45 (2010), 30.91 (2009),
23.67 (2008), 26.04 (2007), 27.08 (2006)
Source: Central Bank of the Russian Federation, Ministry of Finance of the Russian
Federation

Fiscal period: calendar year

1
Official exchange rate as of November 16, 2012 (www.cbr.ru).


1.6.1. Export

Export volume (2011): 20.6 billion USD (170% to the previous year)
Largest exporters JSC Gazprom Neft, CJSC PNT-GSM, CJSC British American Tobacco-Spb,
(2011): JSC Nevsky Mazut, JSC Transoil
Export structure (2011): 2%
9% 3%
Food products

7%
Mineral products
2%

Chemical products, natural
2% rubber
Timber, pulp and paper
products
75% Metal and metal products

Machinery, equipment,
vehicles
Other


1.6.2. Import

Import volume (2011): 32.6 billion USD (133,6% to the previous year)
Largest importers LLC Nissan Manufacturing Rus, LLC Hyudai Motor Manufacturing Rus,
(2011): LLC General Motors Auto , LLC Petro, LLC Toyota Motor Manufacturing
Russia
Import structure (2011):
Machinery, equipment,
6%
vehicles
23% Metals and metal products

Mineral products

Timber, pulp and paper
43% products
Chemical products, natural
rubber
Textiles, textile goods,
6% footwear
Food products
11%
7%
3% Other
1%



1.7. Foreign investment
Volume of foreign
6,284 6,121
investment 5,928
(million USD): 5,525
5,255 5,231

1,171 1,417
1,160 881 696 985
706

1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

Source: Territorial branch of the Federal State Statistic Service (Petrostat)

Structure of foreign
investments
(million USD, 2011): 1,074 Foreign direct
(18%) investment (FDI)
211
(3%) Foreign portfolio
investment (FPI)
Other foreign
investment
4,836
(79%)


Foreign investment by
5% Manufacturing
sector of the economy 12%
(2011):
Wholesale and
5%
retail trade

6% Transporation and
communication
72%
Real estate

Other



Major investors 4%
(2011): 3.5% UK
3.8% 17% South Korea
5% Cyprus
4.3% China
Germany
Austria
4.6% 9.5% Kazakhstan
Switzerland

4.9% Sweden
Belgium

5.1% 9.3% Finland
Kyrgyzstan
6.8% 8.8% Belarus


1.8. International cooperation
Bilateral cooperation  with 89 foreign cities and 27 foreign regions
documents:  with 41 regions and 3 cities in Russia
Participation in  The Union of Baltic Cities
international and  The Conference of the Major Cities of the Baltic Sea "Baltic
regional organizations: Metropolis”
 The Organizations for Sub-regional Cooperation of the Baltic Sea
Countries
 The Tourism Commission of the Baltic Sea Countries
Cooperation with  The Council of the Baltic Sea Countries
intergovernmental  The Nordic Council of Ministers
organizations:  The Forum Regions of the Coast of Europe
 The Baltic Development Forum
 The Association of Chambers of Commerce and Industry in the Baltic
region
Membership in  Associate member of the Association of European cities
international "EUROCITIES"
associations:  Member of the International Congress and Convention Association


1.9. Culture
Cultural sites: 8,464 cultural sites located in the city, including 4,213 sites of federal
significance
UNESCO World Cultural Historic Center of St. Petersburg and Related Group of Monuments
Heritage List:
Museums: 182 museums , including:
 41 (with branches) museums and local reserve museums;
 24 (with branches) museums of federal jurisdiction;
 31 departmental museums;
 86 other museums.
Libraries: 1,103 libraries, including:
 2 libraries under federal jurisdiction;
 1 library of the Academy of Sciences of Russia ;
 196 local libraries;
 904 libraries of institutions and organizations.
Theatres: 82 theatres, including:
 24 local theaters;
 5 theaters under federal jurisdiction ;
 3 theatres of regional subordination operating in the city;
 50 non-state theaters.
Concert organizations: 17 concert organizations, including:
 15 local concert organizations;
 2 concert organizations under federal jurisdiction.
Cultural and leisure 52 cultural and leisure institutions, including:
institutions:  26 local cultural and leisure institutions;
 26 cultural and leisure institutions under the supervision of other
agencies.
Educational 71 educational institutions, including:
institutions:  7 local secondary vocational schools;
 63 music and art schools, local art schools;
 1 music school under federal jurisdiction.
Parks: 5 parks, including:
 4 recreation and entertainment parks in the city network;
 1 Zoo.
Cinemas: 46 cinemas, including:
 8 cinemas of the city network ( 6 - for children);
 38 cinemas of non-state network.


1.10. Science and education
Scientific organizations: 350 scientific organizations, including:
 more than 70 organizations of the Russian Academy of Sciences and
other state academies,
 more than 250 governmental organizations involved in research and
development,
 10 state research centers.
Scientific personnel 165,000 employees of research institutions and Universities, including:
potential:  more than 9,000 Doctors of Science,
 more than 26,000 Candidates of Science.
State educational 1,909 educational institutions, including:
institutions:  1,054 preschool educational institutions,
 690 general educational institutions,
 58 institutions of supplementary education for children,
 18 children's homes,
 36 beginners' vocational schools,
 12 institutions of secondary professional education,
 1 academy of postgraduate pedagogical education.
Number of school 368,390 school children, including 187,791 school children enrolled in in
children: preschool educational institutions
Higher and vocational  45 civil public institutions of higher education;
education institutions:  6 branches of civil institutions of higher education;
 43 private higher educational institutions;
 45 public educational institutions of secondary vocational education;
 30 state civil institutions of higher education offering training in
secondary vocational education;
 5 non-governmental educational institutions of secondary vocational
education.
Number of students: 493.1 thousand people, including:
 400.9 thousand students enrolled in state and private civil
institutions of higher education programs of higher education,
 61,600 students enrolled in secondary vocational education.
Teaching staff: 73,425 people working in educational institutions, including:
 30,000 - in higher educational institutions,
 5,100 - in educational institutions of secondary vocational education.


1.11. Transport infrastructure
Urban passenger  Metro (5 lines);
transport:  Ground electric transport (40 tram routes and 44 trolleybus routes);
 Buses (677 bus routes);
 Commuter rail transport (80 stations of the suburban passenger line);
 Passenger taxis.
Annual traffic of the About 2 billion trips (5 million trips a day):
urban passenger  Metro - 41%;
transport:  Coaches - 40%;
 Ground electric transport - 16%;
 Commuter rail transport - 3%.
Transportation  12 radii of railroads;
complex:  15 highways;
 sea and river ports;
 Airport;
 5 railway stations.
Large Port of Ranks 1st among the ports of the Russian Federation and the Baltic Sea in
St. Petersburg: container trans-shipment and 3d in Russia in terms of total cargo volume
(60 mln. tons in 2011).
Marine Passenger  Commissioned in 2011
Terminal:  Port facilities include 7 berths and 4 stations
 214 cruise ships and 113 ferries with about half a million passengers
(2011)
Rail transportation:  Mainly represented by "October Railways", a branch of OJSC "Russian
Railways"
 2d in volume of rail freight in Russia (following Moscow)
 Includes 10 rail lines and connects Russia to Finland and Estonia
Air transport:  Pulkovo Airport is one of the largest airports in Russia and ranks 3d in
passenger traffic (9.6 mln by end of 2011)
 New terminal scheduled for completion in 2013 will increase the
Airport’s capacity to up to 14 million people
Urban water passenger  20 stopping piers
transportation:  4 city routes commissioned in 2010


2. Key industry sectors
2.1. Overview of St. Petersburg’s industry
2.1.1. Structure and main indicators
St. Petersburg is one of the largest industrial centers in Russia. The city ranks second in the volume of
manufacturing shipments, thus providing 8% 0f the total production volume in the country.
St. Petersburg’s industrial complex represents the basis of the regional economic growth, accounting
for the major source of budget.
Efficient operation of the industrial complex significantly affects the development of other sectors of
the economy, including transportation, construction, communication, trade and provides real
opportunities for the solution of socio-economic goals of the city.
Industrial complex of the city is represented by almost all industries. 730 large and medium enterprises,
a number of which represent the leading industrial enterprises of the Russian Federation, constitute the
basis of the city’s industrial complex. More than 21 thousand small enterprises, including
microenterprises, also contribute to the development of the local economy.
Number of large and medium-sized enterprises, 2011
Manufacturing (total) 676
Electronic equipment, electronic and optical equipment 148
Machinery and equipment 96
Food, including beverages and tobacco 84
Metallurgy and metal products 65
Pulp and paper, publishing and polygraphic products 62
Motor vehicles and equipment 47
Non-metallic mineral products 44
Chemical products 37
Rubber and plastics 24
Textiles and clothing 17
Timber processing and timber products 14
Leather, leather and footwear products 6
Petroleum coke and petroleum products 5
Other 27
Electricity, gas and water production and distribution 54
Mineral resources extraction 2

Source: Committee for Economic Development, Industrial Policy and Trade, 2012

In 2011 industrial production growth of St. Petersburg (113.8%) significantly exceeded the similar
indices of the Russian Federation and Northwestern Federal District.
In 2011 the industry shipments of St. Petersburg’s enterprises constituted 1,966 billion roubles which
represents 135% to the level of 2010. Manufacturing enterprises determine operation of the local
industry. Such enterprises account for more than 90% of the total volume of industrial products


produced in St. Petersburg (1,827 billion roubles). Machinery (138%) enterprises contributed the most
to the growth of production volumes.2
Structure of the volume of industry shipments, 2011

Mineral resources
extraction
0.4%

Manufacturing
93%

Electricity, gas and
water production
and distribution
6.6%

2.1.2. Profitability
In 2011 industrial complex accounted for 349.8 billion roubles in profit, including 327.1 billion roubles
from manufacturing industries. The share of profitable enterprises within the total number of
manufacturing enterprises constituted 81.2% (79.6% in 2010). The most significant growth in profit in
comparison with the previous year is reported in the production of motor vehicles and equipment (2.6
times). In 2011 a high level of profitability remained in the production of food, beverages and tobacco
(19.8%) as well as machinery and equipment (15.1%).3
Profitability of manufacturing enterprises, 2011

Russian Federation 13.2%

St. Petersburg 14.8%


2.1.3. Budget receipts
In 2011 the tax revenues from industrial enterprises constituted 161 billion roubles (more than 36% of
the total amount), including 149 billion roubles received from manufacturing enterprises. Food

2
Committee for Economic Development, Industrial Policy and Trade, Government of St. Petersburg
3
3


production, including beverages and tobacco, motor vehicle and other types of equipment production
accounted for approximately 80% of all budget receipts from the manufacturing sector.4
Dynamics of receipts into the budget of the Russian Federation from St. Petersburg's industry,
2010-2011

160.9
160

149.2
Industry in total
billion roubles

Including manufacturing
124.8

116.1

100
2010 2011


4

2.2. Transport machinery and equipment
2.2.1. General overview
Major production sectors include power plant engineering, handling machinery, household appliances
manufacturing, mining and construction equipment manufacturing.
Characteristics of transport machinery and equipment industry, 2011
Number of large and medium-sized enterprises, units 96
Volume of shipped products, 70
bln RUB
Number of employees, 34.2
thousand people

2.2.2. Industry in numbers
The products of power plant engineering, including steam, hydraulic and gas turbines, turbo and hydro
generators and nuclear power plants equipment, represent a considerable share of transport machinery
and equipment industry of the city. OJSC Silovye Mashiny, which unites the Leningrad Metal Plant,
Electrosila, Turbine Blades Plant, accounts for the major share of production. These enterprises are the
leading Russian manufacturers of equipment for hydraulic, thermal, gas-fired and nuclear power plants.
OJSC Silovye Mashiny is ranked 4th in the world in terms of the volume of installed equipment and is
listed among the five world’s leading energy companies. The company accounts for 80% of the energy
equipment market in Russia and CIS. Currently, the company is engaged in construction of a new
energy machinery plant organized on a principle of integrated complex, one of the largest investment
projects in St. Petersburg.
Another leading enterprise, OJSC Izhorskie Plants, is a Russian leader in engineering, manufacturing,
sales and servicing of nuclear power plant equipment and machinery. The company also manufactures
equipment for storage and transportation of used nuclear fuel.
During the recent years St. Petersburg’s energy machinery enterprises supplied equipment for
hydraulic, thermal and nuclear power plants in China, India, Vietnam, Iran, Mexico and Chili.

2.2.3. Companies
Power plant engineering
Electrosila
Established more than hundred years ago, today Electrosila is the largest
manufacturer of generators in Russia. The plant manufactured more than
2.7 thousand turbine-generators and more than hydro-generators. It is the
first plant in the world to manufacture hydro-generators with the capacity
of more than 200 MW. Electrosila supplies its products in more than 57
countries in Europe, Asia, South and North America, Africa.


Leningrad Metal Plant
Established in 1857, Leningrad Metal Plant is one of the oldest enterprises
of the city. The plant has manufactured more than 2.7 thousand steam
turbines and more than 780 hydraulic turbines. Today, the plant is the
largest Russian energy machinery enterprise engaged in design,
manufacturing and servicing of steam, hydraulic and gas turbines of various
capacities. In 2000 the plant was incorporated in OJSC Silovye Mashiny.

Nevsky Zavod
JSC Nevsky zavod (NZL) is one of the leading companies in Russia engaged
in design and manufacturing of power engineering equipment, including
gas and steam turbines, centrifugal and axial compressors, blowers. NZL® is
the registered trade mark which belongs to the plant since 1965. The
products of Nevsky Zavod are famous in 30 countries of the world. The
largest customers abroad are National Iranian Gas Company, iron and steel
plants in India, China, Egypt, Turkey, Hungary, Poland, Rumania, chemical
plants in Bulgaria, China.

Silovye Mashiny (Power Machines)
OJSC Power Machines is the leading Russian manufacturer and supplier of
end-to-end products and solutions for the power-plant industry, including
engineering, production, supply, assembly, service and equipment
upgrades for thermal, nuclear, hydraulic and gas-turbine power plants. The
company has manufactured equipment with a combined capacity of
300,000 MW, which is installed and is successfully operating in 57 countries
across the world. Established in 2000, OJSC Power Machines unites
engineering, production and intellectual resources of Russia’s largest
enterprises, including the ones located in St. Petersburg - Leningrad Metal
Plant, Electrosila, Turbine Blades Plant, Polzunov Power Engineering
Research and Design Institute.

Turbine Blades Plant
Turbine Blades Plant is the major enterprise in Russia specialized in
production of blades for steam and gas turbines. The plant started its
production in 1964 and since then has been providing turbine blades for all
types of power units in the CIS and in about 20 countries abroad. The plant
is a permanent partner of the Leningrad Metal Plant.

Handling equipment
Otis Elevator Company
The world's largest manufacturer of vertical transportation systems has
three manufacturing plants in Russia, including the one operating in St.
Petersburg since 1994. Otis St. Petersburg was established in 1991 to meet
the elevator need for new construction as well as for the replacement
market. With 470 employees, Otis St. Petersburg is the only company that
manufactures European standard elevators in Russia. Since the opening of
the production line, St. Petersburg’s plant has shipped more than 3,000
elevator units to CIS countries and other Russian regions.


Household appliances
Bosch and Siemens
The largest manufacturer of home appliances in Europe and one of the
leading home appliances companies in the world opened its manufacturing
plant in St. Petersburg in 2007. Today, two full cycle manufacturing lines
with the capacity of 500 thousand two-compartment refrigerators per year
manufacture more than 20 refrigerator models with A+ Energy Efficiency
Class. In 2007 the company laid the foundations for a washing machine
factory with the capacity of 350,000 machines per year, which is due to be
launched in 2012.
Mining and construction equipment
IZ-Karteks
The company, which is a part of JSC United Heavy Machinery Plants,
specializes in engineering, manufacturing, supply and servicing of mining
equipment. IZ-Karteks manufactures high-performance equipment used in
all stages of mineral surface extraction and processing, including rock
drilling machines, mine excavators, crushing and grinding equipment.


2.3. Electrical and optical equipment
Major production sectors include production of electric machines and electrical equipment, electronics,
radio, television and communication systems, medical devices, measurement, control, management
and testing instruments, optical equipment, photo and cine equipment.
Characteristics of electrical and optical industry, 2011
Number of large and medium-sized enterprises, units 148
Volume of shipped products, 133.1
bln RUB
Number of employees, 57.4
thousand people

Production of electrical products, electronics and instrumentation is one of the key industrial sectors of
St. Petersburg. St. Petersburg’s enterprises produce almost the entire range of electrical products,
including welding equipment, batteries, wiring products, electro gas high-voltage equipment, electro
porcelain, power and fiber optic cables and other equipment.
The consumers of electrical products manufactured by St. Petersburg’s leading enterprises, such as
CJSC REP Holding and OJSC Electroapparat, include almost all types of mining and manufacturing
industries, including oil and gas, shipbuilding, metallurgy, military-industrial sector, agriculture and
others. The long-term partners include OJSC Gazprom, OJSC Russian Railways, CJSC AvtoVAZ as well
as Russian and international oil and energy companies.
The products of electronic instrument companies located in St. Petersburg include aircraft avionics,
equipment for professional radio and television stations, telephone and telecommunications systems
of closed and open communications, radar and instrumentation safety for air passenger transport, and
cell component bases. The leading businesses in this area include OJSC HK Leninets, OJSC Svetlana,
OJSC SPE Radar MMS, OJSC Research Institute 'Vektor', JSC Russian Institute of Radio navigation and
Time, OJSC Inteltech, OJSC Avangard.
The leading companies producing electrical, electronic and power equipment include OJSC New Era,
CJSC NIIEFA-Energo, and CJSC NPF System Service. These companies design and manufacture high-
tech transformer substations, complete switchgear, power units, automation and control, main
switchboards, power semiconductor converter systems used by OJSC Gazprom, OJSC Russian Railways
as well as other leading oil companies in Russia.


2.3.3. Companies
Electric machines and electrical equipment
Efremov scientific research institute of electrophysical apparatus
(NIIEFA)
NIIEFA is the leading scientific, design and research, production center of
Russia in electrophysical equipment and installations for research in
plasma physics, nuclear physics, elementary particle physics, health care,
radiation and energy technologies, nondestructive inspection. More than
2,000 of NIIEFA facilities were designed as inventions. Units designed in
NIIEFA are successfully operated in many scientific research and industrial
organizations of Russia, CIS countries, Bulgaria, Hungary, Germany,
Egypt, India, China, Cuba, USA, Finland, France, Japan, Korea.

NE
NE Open Joint Stock Company is a modern industrial enterprise
specialized in producing a wide range of low-voltage & medium-voltage
electrical equipment for marine and industrial application. NE was
established in 1993 on the basis of apparatus manufacturing of the
Leningrad state enterprise «ERA». Today, NE manufactures electrical
equipment for almost all branches of industry, including power
engineering, nuclear industry, oil & gas industry, offshore projects,
shipbuilding, ore mining & metallurgy, communal services, construction,
transport system, chemical industry.

Electronics, radio, television and communication systems
INTELTECH
INTELTECH is one of the leading Russian companies in the fields of
scientific research, development and production of telecommunication
and automatic control systems. Today, the company is a well-known
provider of hardware and software systems for automatic control and
data exchange, digital networks for secured telephone communication
and protected telecommunication systems for government, civil and
military departments of the Russian Federation.

Leninets Holding Company
Leninets holding company is a leading Russian developer and
manufacturer of avionics, navigation equipment and high precision target
systems. The company is specialized in development and manufacturing
of on-board avionics, navigation equipment, high precision arms guidance
systems for heavy aircraft and target-seeking equipment for air-to-
surface rockets. Leninets holding company includes a number of
enterprises engaged in R&D, design and experimental, project and
construction activities as well as warranty services.


Radar MMS
Research and scientific enterprise Radar MMS, established in 1950, is a
leader in development of intelligence guidance systems. The company is
engaged in a full cycle of R&D and manufacturing activities, including
R&D, testing, manufacturing, distribution and maintenance.

Russian Institute of Radionavigation and Time (RIRT)
RIRT is the leading organization engaged in development of systems and
coordinate-time support. The systems developed by the Institute are used
to determine the current time and mestopo-proposal objects in sea-
surface of the Earth, the world's oceans and inland waters, airspace as
well as solve problems in astrophysics, geodesy and geodynamics.

Svetlana
JSC Svetlana is one of the leaders of electronic industry in Russia. The
history of the enterprise dates back to 1889. Today, Svetlana involves a
parent company and subsidiaries specialized in output of specific
production lines. The enterprise has the strongest positions in
development and production of power electrovacuum devices, klystrons
and x-ray tubes. Svetlana-microelectronics is one of the major Russian
design centers for sophisticated microprocessors with original
architecture and standard instruction sets and information and control
systems. Svetlana – Electrondevice is the only enterprise that develops
and produces protective microwave devices and discrete phase shifters as
well as vacuum and semiconductor microwave devices mainly for radar
engineering. Svetlana-SED-SPb is a leading enterprise of Russia in field of
development and production of power transmitting, modulator, regulator
and receiving tubes.
Scientific and Research Institute Vektor
Scientific and Research Institute Vektor is engaged in development and
manufacturing of electronic equipment used in the following application
areas: EM waves propagation physics, radio reception at communication
complexes, monitoring of electromagnetic radiation, acoustic monitoring,
testing of radioelectronic equipment and many others.
Medical devices, measurement, control, management and testing instruments, optical equipment,
photo and cine equipment
NPO Impuls
NPO Impuls is one of the main Russian organizations engaged in
development of state-of-the-art automated control systems for Russian
armed forces and strategic rocket forces.

Tekhpribor
Founded in 1942, JSC Tekhpribor is one of the oldest air instrument-
making companies. The company focuses on development, production,
certification and technical operation of various airborne equipment for
all airplanes and helicopters manufactured in Russia and CIS.


Electron
Electron is one of the leaders in the Russian market of X-ray and
diagnostic equipment as well as programming solutions for healthcare.
The company’s product line of digital X-ray diagnostic equipment
includes chest examination devices, two workplace X-ray devices,
multipurpose X-ray diagnostic complexes, including remotely operated
complexes, interventional radiology devices.

LOMO
Founded in 1914, LOMO is a leading Russian and international company
as well as the largest Russian company involved in production and sales
of optic-mechanical and optic-electronical devices. LOMO manufactures
a wide range of products, including microscopes, endoscopes, spotting
scopes - telescopes and night vision devices and cameras.


2.4. Food and beverage production
Food complex in St. Petersburg is represented by 11 major industries, which include more than 80 large
and medium as well as 180 small enterprises. Brewing and tobacco manufacturing are the two most
developed sectors of the local food industry.
High investment activity of St. Petersburg’s enterprises is one of the major factors accounting for the
successful development of food industry in the city. Increased automation and production
improvements allowed companies to significantly diversify the assortment of produced food products
and improve their consumer appeal. Continuous renewal of assortment is one of the characteristics of
the food industry in St. Petersburg. St. Petersburg’s enterprises develop at least 100 new sorts of
various bakery and pastry products, including bread and rolls, dried bread and biscuits, pies and
cookies. Assortment of the produced bakery products totals more than 400 items which makes it the
most diversified assortment present in Russia.

In 2011 the volume of food industry shipments, including beverage and tobacco, constituted 12% of the
total manufacturing industry in St. Petersburg.
Structure of industry shipments, 2011 Investment in fixed assets by industry, 2011

4% 3%

8%

81% 10%

50%

12%
7%

12% 13%

Food manufacturing, including beverargres and tobacco Other manufacturing industries
Food manufacturing, including beverages and tobacco
Other manufacturing industries Motor vehicle and equipment manufacturing
Other manufacturing industries
Machinery and equipment
Electric power, gas and water production Metallurgy and metal product manufacturing
Electronic and optical equipment


As of 2011, food and beverage industry employs 11% of the total number of employees occupied in the
St. Petersburg industrial complex. Food industry, including beverage and tobacco, is the most
profitable industrial sector in St. Petersburg (19.8%), which is attributable to high production indices of
tobacco (34.9%), alcohol (25.8%) and beer (24.8%) producing enterprises. Approximately 13% of all
investment into industrial sector accounts for food manufacturing, including beverages and tobacco.


2.4.3. Companies
Bakery
Hlebny Dom
JSC Hlebny Dom has operating at the Russian market for more than 70
years and is one of the largest baking enterprises in Russia. The company
became a part of the Fazer Group in 1997. It is represented by 4
production sites in St. Petersburg as well as one in Moscow. Hlebny Dom
produces bakery and confectionery products, long term storage foods as
well as frozen and flaky dough products.

Karavay
JSC Karavay was established in St. Petersburg more than 80 years ago.
Today, it is a modern fully-equipped bakery which produces more than
170 items of fancy and bakery products. Karavay is one of the leaders of
baking industry in St. Petersburg. It currently possesses 4 baking plants.

Beverage production
Carlsberg Group
Baltic Beverages Holding, a leader at the Russian beer market which
manages Baltika, became a part of the Carlsberg Group in 2008. Carlsberg
currently owns 89.01% of Baltika stock. Today, Baltika Brewery, founded
in 1990, is the largest brewery in Eastern Europe and the second-largest
brewery in Europe after Heineken Brewery.

Coca-Cola Company
Coca-Cola’s plant, opened in St. Petersburg in 1995, produces Coca-Cola
products for more than 13 million customers in St. Petersburg and
Northwestern Russia. It employs more than 1,000 people, while creating
up to 200 additional seasonal workplaces during the peak seasons.

Heineken
Heineken has been operating in Russia since 2002 when it acquired the
Bravo plant in St. Petersburg. St. Petersburg’s Heineken brewery also
produces and distributes Budweiser beer, having signed a licensing
agreement with Bud’s brand owner Anheuser-Busch.

Pepsi Bottling Group, Inc. (PBG)
PepsiCo drinks are produced by Pepsi Bottling Group at its four plants in
Russia. One of the top global FMCG companies in Russia opened its St.
Petersburg’s plant in 1992. PBG produces and distributes all PepsiCo
products, including carbonated soft drinks, water, snacks, juices, teas.

Russian Standard Company
A leading Russian premium vodka producer opened its distillery in St.
Petersburg in 2006. Total investments into the facility amounted to 60
million dollars. The distillery produces 3.6 million dekaliters of vodka
annually. A 30,000 square meter facility handles the production of the
company's entire vodka portfolio, including Russian Standard Original,
Russian Standard Platinum and Imperia.


Candy

Chupa Chups S.A.
The Spanish candy maker launched its St. Petersburg’s production facility
in 1991. Neva Chupa Chups produces Chupa Chups caramel lollipop
candies of various flavors and colors not only for the Russian market but
also for export to CIS countries. St. Petersburg’s factory has the capacity
of making up to 200 million 200-gram rolls per year.

Confectionery factory named after N.K. Krupskaya
The history of the Confectionery factory began in 1938. In 2006 the
factory was acquired by the Norwegian Concern Orkla which is one of the
leading suppliers of branded consumer goods to Nordic food retailers as
well as Central and Eastern Europe and Russia. Today, the factory is a
modern industrial complex with capacity to produce more than 20
thousand tons of confectionery products per year. It produces more than
130 confectionery products, including chocolate of different sorts,
diabetic products, chocolate semi-finished products for food industry.
Chewing gum
Wm. Wrigley Jr. Company
The world’s largest maker of chewing gum has been operating a 70 million
dollar plant in St. Petersburg since 1999. Wrigley is planning to expand its
St. Petersburg plant with an investment of 100 million dollars. The
company also announced that it might build a second factory in Russia
and acquire local producers to tap its growth at the Russian market.
Dairy
Petmol dairy plant, Unimilk
Petmol dairy plant launched the production of dairy products in 1934. In
2003 LLC Unimilk became the main shareholder of the company. Today,
Unimilk is one of the leading manufacturers of dairy products in Russia
and CIS. Established in 2002, the company employs more than 14
thousand people and unites 28 enterprises in Russia, Ukraine and Belarus
specialized in the production of dairy products and baby food.

Baltic Milk, Wimm-Bill-Dann
Baltic Milk Dairy Factory was launched in 1987. The factory became a part
of the Wimm-Bill-Dann production and trade group in 2000. Will-Bill-
Dann is the leader at the Russian market of dairy products and baby food
as well as one of the leading producers at the soft drinks market in Russia
and CIS. The company operates more than 35 processing plants in Russia,
Ukraine and Central Asia and employs more than 18 thousand people.
Tobacco
British American Tobacco (BAT)
BAT’s plant in St. Petersburg operates 13 production lines producing five
premium brands. It provides about 25% of BAT’s production volume in
Russia. The company completed the construction of new production
facilities at its plant in St. Petersburg in 2007 with the total investment of
110 million dollars, thus increasing St. Petersburg plant’s production
capacity to 40 billion cigarettes a year.


Japan Tobacco International (JTI) Petro
JTI Petro's cigarette making facility in St. Petersburg is the company’s
biggest worldwide plant with the total of 400 million dollars invested. The
brand portfolio includes over 30 brand names, both international and
local. It supplies the firm's Russian and Ukrainian plants with main
tobacco components used for cigarette production.

Philip Morris International (PMI)
Philip Morris Inc. officially opened its third Russian cigarette factory in St.
Petersburg in 2000. The total investment of 335 million dollars made this
project the company’s largest cigarette plant in Europe. The plant, which
employs 750 workers and operates 15 conveyer belts, produces the
Marlboro, Parliament, Virginia Slims, L&M, Chesterfield and Bond Street
brands. In 2002 the company began construction of a new processing line
and a warehouse with the total investment estimated at 240 million
dollars.


3. Key business clusters
3.1. Automotive cluster
Automotive industry and automotive parts manufacturing play an important role in St. Petersburg’s
transport machinery complex. The city locates production facilities of the world’s leading car
manufacturers, including Nissan, Toyota, General Motors, Hyundai and Scania.
Leading car manufacturing plants in St. Petersburg, 2011
Brand name Opening Production Volume of Employees Model range
volume, investment
th.units/year
Toyota 2007 25 133 mln USD 600 Toyota Camry
General Motors 2008 60 303 mln USD 1,300 Chevrolet Cruze, Opel
Astra
Nissan 2009 50 200 mln USD 1,500 Teana, X-trail, Murano
Hyundai 2010 120 650 mln USD 2,400 Solaris, Kia Rio

Scania 2010 6.5 10 mln Euro 600 all types of trucks


Development of automotive cluster is one of the prerequisites of successful development of
automotive industry. St. Petersburg has one of the fastest-growing and promising automotive clusters,
which makes the city a leading center of Russian car manufacturing industry. During the first stage of
cluster development from 2005 to 2010 Nissan, Toyota, General Motors, Hyundai, Scania built their car
assembling facilities in the city. With the total area of allocated land lots of 686.3 hectares and more
than 6 thousand workplaces created, the volume of investment into the construction of new car
manufacturing facilities constituted 1.3 billion dollars. The total volume of budget spendings directed
towards the implementation of investment projects constituted 6.6 billion roubles.
The first quarter of 2012 saw significant growth in the volume of motor vehicles and equipment
production (123.2% to the first quarter of 2011) which is attributable to increase in car volumes
manufactured at all car manufacturing plants located in St. Petersburg. Hyundai Motor Manufacturing
Rus showed the largest production growth rates. Total volume of car manufacturing reached 182.2
thousand units during the first quarter of 2012 which is 2.7 times larger than the corresponding period
in 2011.
Volume of car manufacturing in St. Petersburg, thousand units, 2011

1st Q 2012 182.2
2011 259
2010 69.4
2009 19.9
2008 47.5



3.1.3. Companies
Light motor vehicles
General Motors
General Motors opened its automobile factory in St. Petersburg in 2008.
Global car making giant became the second foreign carmaker to open a
factory in St. Petersburg. Investment in the project totalled 300 million
dollars with up to 1,700 jobs created, followed by the opening of a second
production line in 2010.

Hyundai Motor Company
Hyundai officially launched its full-cycle manufacturing plant in St.
Petersburg in 2010. St. Petersburg’s plant is Hyundai’s sixth production
facility outside its home market of South Korea. The facility is expected to
roll out 105,000 vehicles in its first year of operation with the rise to
150,000 in 2012. Hyundai plans to create 5,300 jobs by 2012 in St.
Petersburg together with eleven parts suppliers from Korea.

Nissan
Nissan Manufacturing Rus was established in St. Petersburg in 2009. The
plant currently represents approximately a 150 million euro investment
with the total volume of 28,500 units since the start of production. The
plant currently employs 2,000 employees.

Toyota Motor Corporation
Toyota became the first Japanese carmaker to start production in Russia
with its car assembly plant opened in St. Petersburg in 2007. The plant,
with an annual output capacity of about 50,000 vehicles, initially built
20,000 Camry sedans per year while gradually expanding its production
since then.
Trucks
Scania
Scania opened its industrial facility for assembling and bodyworking
trucks for the Russian market in St. Petersburg in late 2010. This Russian
facility is Scania’s sixth delivery center. From the new Delivery Center in
St. Petersburg, Scania supplies complete trucks that are adapted to the
requirements and operating conditions that apply in Russia. St.
Petersburg’s facility has a technical assembly capacity of about 5,000
truck chassis and 1,500 superstructures per year. It employs about 70
employees.

Yarovit Motors
Yarovit is a Russian manufacturer of cargo trucks, dump trucks, bolster
trucks and concrete mixers. Yarovit’s manufacturing facility was set up in
St. Petersburg in 2003. In 2012 ë-Auto, a joint venture of Yarovit and the
Onexim investment group, are planning to start the production of a
hybrid electric car yo-mobile.


Components suppliers
Magna International
A global automotive supplier currently operates five production sites in
Russia, three of which are located in the St. Petersburg region since 2010.
The Cosym stamping and assembly plant in Shushary has 170 employees
and produces body, chassis and energy-management systems for OEM
customers such as Hyundai, General Motors, Nissan and Volkswagen. The
Cosym assembly and sequencing plant in Kamenka is a Hyundai-
dedicated production site that employs 50 employees. Magna announced
the opening of a Magna Exteriors and Interiors facility in Kolpino which
has approximately 25 employees producing exterior and interior
components for OEM customers, including Ford and Nissan.

3.1.4. Supporting institutions
3.1.4.1. Associations
 St. Petersburg Association of Manufactures of Automotive Components (SPbAPAC)
St. Petersburg Association of Manufactures of Automotive Components is the largest professional
association of automotive components manufacturers in Russia which functions on the principle of
a cluster. At present the association unties more than 60 enterprises which manufacture over 1,500
products. Active participation in regional, interregional and international exhibitions and
conferences as well as support of the Government of St. Petersburg and the Union of Industrialists
and Entrepreneurs makes the association one of the key players at automotive and automotive
components market of the Russian Federation.


3.2. Software and information technology services
St. Petersburg is an absolute Russian leader in attracting international investments into IT-related R&D.
Dozens of global vendors have already established R&D centers in the city.
Every year over 4,500 IT specialists graduate Universities and enter IT market, thus creating an
important pool of talents available for IT-related R&D and commercial software development. St.
Petersburg’s Universities have been ranked high in the ACM International Programming Collegiate
Contests, the most prestigious world championship in software development among Universities.
Within the last 13 years St. Petersburg’s Universities earned 6 Absolute Champion titles and numerous
medals.
Availability of engineers in other high-tech R&D and application areas alongside with software
community provides an exclusive opportunity for finding breakthrough solutions on the edge of
different sciences and technologies. Creativity and managerial skills of local engineers have been
successfully transferred into global successes of local IT businesses in both software development
services and software products.

St. Petersburg’s domestic IT market has the capacity of more than 100 billion roubles (3.5 billion US
dollars, as of 2011) and accounts for about 14% of the Russian market. Approximately 16% of all income
from software development business in Russia is generated by St. Petersburg-based providers. The
study conducted in 2012 estimates over 300 software companies operating in St. Petersburg with the
total number of employees about 17,000 software developers.
St. Petersburg’s companies account for 20% of the Russian export of software and IT related services.
As of 2011, the city received about 750 million US dollars from IT export which is represented mainly by
software products and software development services. St. Petersburg-based companies are mainly
oriented to the US and Canada markets (50%), Germany (40%), Scandinavia (30%), and other Western
European countries (38%).5
Structure of St. Petersburg’s IT export, 2011

33%
40% Services from R&D international
centers to mother companies

Software products

Customized software
development and other services
27%

5
St. Petersburg Software and Information Technology Services Industry: industry overview, catalogue of export
oriented companies & promising start-ups, Enterprise Europe Network - Russia, Module A Regional Center – St.
Petersburg (2012)


Doing business in St. Petersburg 2012

Doing business in St. Petersburg 2012

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