St. Petersburg is the largest northern city in the world. St. Petersburg increases the economy volumes, improves the urban environment and increases investment attractiveness each year, while being one of the largest Russian Federation and European megacities.
There is a positive trend in most city's economy sectors due to St. Petersburg Government active support and socio-economic strategy development implementation until 2035 there is a positive trend in most sectors of the economy of the city.
Strategy’s priorities - 2035:
Construction industry, transport and communications companies, manufacturing industries and real estate operations form the main investments share in St. Petersburg economy.
The goods commercial carriage volume by all organizations, engaged in all economic activities types, not related to small businesses, amounted to 9.2 million tons in 2018 and increased by 1.7 times compared to 2017, cargo turnover is 2971.8 million tons km and increased by 41.3%.
3.9 million square meters of housing, 1994 residential buildings for 78 174 apartments were commissioned in St. Petersburg, according to the results of 2018. The current input provided 123.4% of the annual plan.
The investments volume in St. Petersburg companies’ fixed assets amounted to about 747.4 billion rubles and increased by 4.3%, compared to 2017, according to results of 2018. Volume index is 104.3%, compared to 2017.
Over 2 trillion rubles have been invested in St. Petersburg economy over the past three years. The city companies’ turnover increased by 14.6% in 2018 and amounted to 13 458.9 billion rubles. The companies’ turnover is growing in most industries.
The industrial production index in 2018 amounted to 105%. Positive dynamics was revealed in the vehicles and equipment (industrial production index - 132.1%), drinks (industrial production index - 120%), electrical equipment (industrial production index - 116.8%), machinery and equipment production, not included in other groups (industrial production index - 115.7%), clothing (industrial production index - 115.5%) in 2018.
Foreign St. Petersburg trade turnover in 2018 amounted to 49.2 billion US dollars. The trade turnover increased by 10.1%, compared to January-December 2017.
The exports volume will amount to 25 209, 09 million dollars USA, according to St. Petersburg socio-economic development target forecast in 2020. Annual export growth amounted to 106.0% in 2019–2021.
St. Petersburg annual gross regional product growth rate amounted to 103.4% in 2019-2021.
St. Petersburg is one of the Russian Federation’s three largest research and educational centers, ranking the second place between Moscow and Tatarstan.
Highly-qualified specialists in all economy’s sectors is one of the main St. Petersburg’s strategic resources. The modern high-tech industries creation is the development’s priority area.
About 300 scientific companies’ work in the Northern capital, which staff consist of over 186 thousand workers work, including 8 thousand doctors of sciences and over 25 thousand candidates of sciences.
Modern infrastructure to support innovative activities has been created and is actively developing in the city due to the entrepreneurs’, commercial and non-profit organizations’ and St. Petersburg Government’s joint actions result:
St. Petersburg is the only city in Russian Federation, which has more tourists, than residents. St. Petersburg, with a population of 5.38 million people, was visited by 8.2 million guests, in 2018.
3 000 000 World Cultural Monuments are demonstrated in the Hermitage
8 500 cultural sites
< 200 museums
100 international festivals, contests and celebrations per year
St. Petersburg’s tourism sector is one of the most attractive for investors. Since 2017, hotel infrastructure projects with investments of over 1 billion rubles may get «strategic» status, use a reduced rental rate for the construction period, as well as buy land at a discount.
Business and cruise tourism segments are actively developing in addition to traditional cultural tourism. Their growth annually exceeds 12%. St. Petersburg International Economic Forum was visited by 19 thousand participants from 145 countries in 2019.
Petersburg is a dynamically developing city, which provides businesses with ample investment opportunities. Currently, the city has over 30 creative spaces. St. Petersburg creativity index, according to a joint study by the Calvert 22 Foundation and PwC, is 67.22.
The city provides the entrepreneurs with the required successful and safe business conditions.
St. Petersburg Government provides the investors with clear business rules, equal access to land, transport and energy resources. Besides, the investors receive protection from the laws adoption, worsening the investment projects situation (within St. Petersburg Government competence).
St. Petersburg investment support system is operating and constantly improving while administrative barriers are being reduced and procedures for obtaining building permits and registering property rights are being simplified.
St. Petersburg became the first region to introduce public-private partnerships legislation in 2006. Federal legislation in the public–private partnership field is based on St. Petersburg experience.
Currently St. Petersburg takes the first place in public–private partnership development terms in the National Center Rating for Public-Private Partnership. The following assessed factors are considered when compiling the rating: the institutional environment development in the public-private partnerships field, the public-private partnerships legal support, as well as the public-private partnership projects implementation background.
St. Petersburg government cooperates with foreign investors, namely Coca-Cola, Hyundai, Nissan, Pepsi, Procter & Gamble, Siemens, Unilever, Wrigley, etc.
St. Petersburg provides the references system for investors. The current system is regularly updated and improved, given new business community’s and the macroeconomic situation needs.
The most city’s significant projects are provided with the strategic status, which provides the investors with an opportunity to get certain benefits:
St. Petersburg provides the investors with an opportunity to use the tax benefits set. The entrepreneurs may get the following benefits, depending on the industry, staff, investment volume:
Currently «St. Petersburg» special economic zone consists of 43 companies, operating in pharmaceuticals and biotechnology, tools, information technology and telecommunications and microelectronics areas.
«St. Petersburg» special economic zone’s residents get tax and customs benefits. Besides they are entitled to use the simplified procedure for providing land with preferential rents.
«St. Petersburg» special economic zone is located on two sites – «Neudorf» in Strelne (18.9 ha) and «Novoorlovskaya» (163.3 ha) in the Primorsky district of St. Petersburg.