The Government of Saint-Petersburg Fiveysky Sergey The first deputy of the chairman of the Committee for Economic Development, Industrial Policy and Trade.

The Government of Saint-PetersburgFiveysky SergeyThe first deputy of the chairman of the Committee for Economic Development,Industrial Policy and Trade

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Saint Petersburg•Population – 4.6 million p.•Human resources – 3 million p.•Territory – 1439 km²•Area of industrial zones is 240 km²

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Investor Appeal

In November 2006 Saint-Petersburg was awarded first places in the following nominations upon appraisal of the Russian-biggest independent rating agency “Expert RA”: • “For Minimal Investment Risk in 2005/06” • “For High Effectiveness of Regional Administration”

Moody's

Moody's Interfax Rating Agency

Standard & Poor's

FITCH agency

Fitch Ratings

Baa2 (stable) Aaa (rus)BBB-

(positive)BBB-

(positive)ВBB- (stable)

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St. Petersburg’s Gross Regional Product

8.2

25.2

36.1

43.0

0

5

10

15

20

25

30

35

40

45

2000 2005 2006(estimation)

2007(estimation)

bln.USD

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Measurement units

1/2 year 2007

In % as compared to year 2006

Turnover of entities bln.USD 63,8 136,8

Turnover of retail commerce bln.USD 9,7 118,3

Amount of paid services to the public bln.USD 4,3 107,2

Amount of services of public carriersbln.USD 3,5 116,6

Amount of communication services bln.USD 1,9 123,7

Commissioning of residential houses thousand

sq.m. 1,13 132,5

Amount of fixed-capital investments bln.USD 4,3 121,7

Socioeconomic Indicators in 1st half of the year 2007

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St. Petersburg’s Industry

32%

11%10%

3%

34%

9%

1%Food industryMachine building and metal processingElectrical power industryMetallurgyIndustry of construction materialsLight industryOther

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Transport Logistics

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Major Infrastructure Projects Underway in St. Petersburg

«Orlovsky Tunnel»

Project timeline: 2005–2010

«Elevated Express Railway»

Project timeline:2005–2010

«Sea Passenger Terminal»

Project timeline: 2004-2009

«Western Meridian

Speedway»Project timeline:

2005–2011

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Culture

The historical centre of St. Petersburgis included by UNESCO in the List of the world heritage.

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Technological Innovation Centers in St. Petersburg

“High Technologies in Medicine”

“Aerokosmicheskiy”

“Baltiyskiy”

GOI (State Optical Institute) named after S.I.Vavilov

Fund “TVN”

“Artes”

“New Materials and Technologies”

CJSC “Innovations of Leningrad Institutes

and Enterprises”

Center of the Regional Fund for Scientific and Technical

Development of Saint-Petersburg

City Coordination Center

Technopark of LTA

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Special Economic Zone in St. Petersburg

St. Petersburg

«Novo-Orlovskoe»

«Neudorf»

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Main Investment Projects in Industry

Bosch-Siemens

JTI

Elcoteq

Toyota

Severstal

Baltika

Pepsi-Cola

Coca-Cola

Wrigley

General Motors

Nissan

Sea port

BAT

Suzuki

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Toyota Car Factory

Project timeline:2005 – 2007

Investment:USD 150 million

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General Motors Car Factory

Project timeline:2006 - 2008

Investment:USD 300 million

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Nissan Car FactoryProject timeline:

2006–2008

Investment:USD 200 million

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Suzuki Car Factory

Project timeline:2007–2009

Investment:USD 115 million

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Saint-Petersburg Government Incentives for Investments in the City

• Guarantees of the City Administration

• Saint-Petersburg makes investments in territory infrastructure pre-development

• Tax incentives for the investors• Individual maintenance of

investment projects• Special regimen for businesses

in special economic areas

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1159 1171881 695 985

1417

5300

0

1000

2000

3000

4000

5000

6000

mln.USD

2000 2001 2002 2003 2004 2005 2006 year

Total volume foreign investment

Investment in 2000 – 2006

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Why St. Petersburg?• Political and Economical Stability,

City of Growing Economy• Potential sales market is 10 mln.

people of the North-Western region• High investment ratings: the city

scored a BBB- rating (from Standard & Poor’s rating agency) and Ba2 (from Moody’s rating agency)

• Tourist center of the North-Western Europe

• Russian-highest concentration of technical and engineering universities

• Geographic location: located in European part of Russia, has sea port, railroad connection to all Russia, developed road network• Developed industrial center• Possesses developed information and communication infrastructure• Offers different types of governmental support of investment activities (guarantees, tax incentives)

Fiveysky SergeyThe first deputy of the chairman of the Committee for Economic Development, Industrial Policy and Trade

Tel.: +7 (812) 570 37 47 16, Voznesenskiy Av., Fax: +7 (812) 314 41 66 St. Petersburg, s.fiveysky@cedipt.spb.ru190000 Russia www.cedipt.spb.ru