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Doing business in St. Petersburg2   Enterprise Europe Network - Russia, Module A Regional Center – St. Petersburg | www.do...
Doing business in St. PetersburgEnterprise Europe Network - Russia, Module A Regional Center – St. Petersburg | www.doingb...
Doing businessin St. PetersburgGuide for exporters, investors and start-upsCurrent publication was developed by and under ...
Table of contentsWelcome to St. Petersburg ..................................................................................
6.   SME support ............................................................................................................
Welcome to St. PetersburgI would like to welcome you to St. Petersburg - the city ofenormous business opportunities and de...
1. The city1.1.       GeographyCoordinates:                   Latitude: 59° 57 North                               Longitu...
1.2.       Public holidays and business hoursOfficial holidays:                 January 1-5 - New Year holidays          ...
1.4.        Political systemCity day:                     May 27. The city was founded on May 27, 1703City name:          ...
Political system:                              Source: Business Support Structure in St. PetersburgExecutive branch:      ...
Symbolsof St. Petersburg:                              Coat of arms                               FlagDiplomatic          ...
1.5.        EconomyGRP ofSt. Petersburg                                                                                   ...
City budget(billion roubles):                                                                                   399.5     ...
1.6.       Foreign tradeForeign trade turnover(million USD):                                                              ...
1.6.1.      ExportExport volume (2010):           11,817 million USD (12.1% decline in comparison with 2009)Largest export...
1.7.      Foreign investmentsVolume of foreign                                                                            ...
Major countries(million USD, 2010):                                                                                  Franc...
2. Key business sectors2.1.        Overview of St. Petersburg’s industry2.1.1.      Structure and main indicatorsSt. Peter...
In 2010 the industry shipments of St. Petersburg’s enterprises constituted 1,461 billion roubles whichrepresents 124% to t...
enterprises. Food production, including beverages and tobacco, motor vehicle and other types ofequipment production accoun...
2.2.         Automotive industry2.2.1.       General overviewAutomotive industry and automotive parts manufacturing play a...
2.2.3.    CompaniesLight motor vehicles                            General Motors                            General Motor...
Components suppliers                              Magna International                              A global automotive sup...
2.3.        Food and beverage production2.3.1.      General overviewFood complex in St. Petersburg is represented by 11 ma...
As of 2010, food industry, including beverage and tobacco, is the most profitable industrial sector inSt. Petersburg (26%)...
Russian Standard Company                           A leading Russian premium vodka producer opened its distillery in St.  ...
Tobacco                              British American Tobacco (BAT)                              BAT’s plant in St. Peters...
scientific research and introduces the best research practices aimed at technological, economic    and social development ...
2.4.           Information and communication technology (ICT)2.4.1.         General overviewInformation and communication ...
2.4.3.    CompaniesSuppliers of software development services                           Astrosoft                         ...
Digital Design                           Headquartered in St. Petersburg, Digital Design is an IT consultancy which       ...
PROMPT                          PROMT is a leading Russian developer of linguistic IT solutions for business              ...
EMC                           Opened in 2007, EMC R&D center in St. Petersburg is an important part of                    ...
SOLVO                           SOLVO Ltd. is a St. Petersburg based leading vendor of high-end logistics                 ...
    St. Petersburg Department of Steklov Institute of Mathematics, Russian Academy of     Sciences (RAS)     The Institut...
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Get in-depth information about the city's economy, clusters, business solutions as well as details of doing business in St. Petersburg by reading fully-fledged English language guide designed specially for exporters and importers, investors and start-ups.

This publication was developed by Enterprise Europe Network (EEN) - St. Petersburg in collaboration of professional legal, human resources, certification, research and real estate firms with the aim of providing start-ups, potential exporters and investors with the relevant information on starting and running business in St. Petersburg.

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  1. 1. a
  2. 2. Doing business in St. Petersburg2 Enterprise Europe Network - Russia, Module A Regional Center – St. Petersburg | www.doingbusiness.ru
  3. 3. Doing business in St. PetersburgEnterprise Europe Network - Russia, Module A Regional Center – St. Petersburg | www.doingbusiness.ru 3
  4. 4. Doing businessin St. PetersburgGuide for exporters, investors and start-upsCurrent publication was developed by and under supervision of the Enterprise Europe Network -Russia, Gate2Rubin Consortium, Module A Regional Center – St. Petersburg operated by St.Petersburg Foundation for SME Development with the assistance of the relevant legal, humanresources, certification, research and real estate firms.© 2012 The Enterprise Europe Network - Russia, Gate2Rubin Consortium, Module A RegionalCenter – St. Petersburg operated by St. Petersburg Foundation for SME Development. All rightsreserved. International copyright.Any use of materials of this publication is possible only after written agreement of St. PetersburgFoundation for SME Development and relevant contributing firms. Doing business in St. Petersburg4 Enterprise Europe Network - Russia, Module A Regional Center – St. Petersburg | www.doingbusiness.ru
  5. 5. Table of contentsWelcome to St. Petersburg ............................................................................................... 71. The city ...................................................................................................................... 8 1.1. Geography ............................................................................................................................. 8 1.2. Public holidays and business hours ....................................................................................... 9 1.3. Population ............................................................................................................................. 9 1.4. Political system .................................................................................................................... 10 1.5. Economy .............................................................................................................................. 13 1.6. Foreign trade ....................................................................................................................... 15 1.7. Foreign investments ............................................................................................................ 172. Key business sectors................................................................................................. 19 2.1. Overview of St. Petersburg’s industry ................................................................................. 19 2.2. Automotive industry ........................................................................................................... 22 2.3. Food and beverage production ........................................................................................... 25 2.4. Information and communication technology (ICT) ............................................................. 30 2.5. Pharmaceutical industry...................................................................................................... 37 2.6. Shipbuilding industry ........................................................................................................... 42 2.7. Transport and logistics ........................................................................................................ 463. Business solutions .................................................................................................... 55 3.1. Headquarters....................................................................................................................... 56 3.2. Research & Development.................................................................................................... 58 3.3. Production сenter................................................................................................................ 61 3.4. Distribution сenter .............................................................................................................. 68 3.5. Test market ......................................................................................................................... 704. Doing business ......................................................................................................... 72 4.1. Establishing a legal presence............................................................................................... 72 4.2. Foreign investments ............................................................................................................ 80 4.3. Taxation ............................................................................................................................... 85 4.4. Contracts ............................................................................................................................. 92 4.5. Employment ........................................................................................................................ 95 4.6. Product conformity assurance in Russia ........................................................................... 102 4.7. Intellectual property rights and franchising ...................................................................... 108 4.8. Special economic zones (“SEZ”) in St. Petersburg............................................................. 114 4.9. Public private partnerships and infrastructure development........................................... 116 4.10. Obtaining rights to state-owned land in St. Petersburg .................................................... 120 4.11. Buyout of land plots in St. Petersburg............................................................................... 129 4.12. Regulatory issues. Antimonopoly compliance .................................................................. 1335. Costs of doing business ...........................................................................................142 5.1. Costs of starting a company .............................................................................................. 142 5.2. Human resources .............................................................................................................. 144 5.3. Office, retail and warehouse market ................................................................................ 148 5.4. Communication ................................................................................................................. 154 5.5. Utilities .............................................................................................................................. 155 Doing business in St. Petersburg Enterprise Europe Network - Russia, Module A Regional Center – St. Petersburg | www.doingbusiness.ru 5
  6. 6. 6. SME support ...........................................................................................................157 6.1. Overview ........................................................................................................................... 157 6.2. Definition of SME – EU vs. Russia ...................................................................................... 157 6.3. Statistics ............................................................................................................................ 158 6.4. SME support and development programs ........................................................................ 1607. Contacts of the business support infrastructure .......................................................164 7.1. Overview of the business support infrastructure in St. Petersburg ................................. 164 7.2. Authorities ......................................................................................................................... 164 7.3. Investment support ........................................................................................................... 166 7.4. SME business cooperation support ................................................................................... 167 7.5. SME support ...................................................................................................................... 168 7.6. Financial support ............................................................................................................... 170 7.7. Techno parks and business incubators ............................................................................. 172 7.8. Educational programs and internships ............................................................................. 174 7.9. Chambers of commerce and industry ............................................................................... 175 7.10. Business associations ........................................................................................................ 175 7.11. Audit, tax and consulting firms ......................................................................................... 176 7.12. Banks ................................................................................................................................. 177 7.13. Certification and testing .................................................................................................... 177 7.14. Exhibitions ......................................................................................................................... 178 7.15. Law firms ........................................................................................................................... 178 7.16. Real estate ......................................................................................................................... 179 7.17. Recruitment....................................................................................................................... 179 7.18. Transport and logistics ...................................................................................................... 1808. Authors and contributors ........................................................................................182 Doing business in St. Petersburg6 Enterprise Europe Network - Russia, Module A Regional Center – St. Petersburg | www.doingbusiness.ru
  7. 7. Welcome to St. PetersburgI would like to welcome you to St. Petersburg - the city ofenormous business opportunities and development potential. Itis the second largest economic, transport, academic, cultural,and tourism center in Russia as well as a growing economy witha thriving private sector and an attractive businessenvironment.Whether you want to start your business or invest in Russia, St.Petersburg is the best place to do it. Favorable economic andgeographical location in the European part of Russia,developed infrastructure, extensive scientific, research andeducational potential, highly skilled workforce as well as broadmarket and competitive operating costs facilitate thedevelopment of efficient, safe and stable business.St. Petersburg is an attractive location for business and tradewhich has an established and effectively operating systemaimed at supporting investment activity in the city. TheGovernment of St. Petersburg takes every measure to make St.Petersburg a business-friendly environment by reducingadministrative barriers and simplifying the procedures required for business and investmentactivities, including issuance of building permits and registration of property rights.During the recent years many international companies have already implemented investmentprojects in St. Petersburg, including such leading companies as Coca-Cola, Pepsi, Gillett, Wrigley,British American Tobacco, Bosch Siemens, General Motors, Hyundai and many others. All of themconsidered St. Petersburg an ideal location for their business needs, whether it is an R&D center,test market, production center or distribution hub. Foreign businesses can benefit from governmentinvestment incentives aimed at boosting the local economy.This publication was developed by Enterprise Europe Network (EEN) - St. Petersburg incollaboration of professional legal, human resources, certification, research and real estate firmswith the aim of providing start-ups, potential exporters and investors with the relevant informationon starting and running business in St. Petersburg.The EEN branch in St. Petersburg focuses on providing business support to Russian companies andprovides free services to foreign companies to foster small business cooperation. In 2011 EnterpriseEurope Network (EEN) - St. Petersburg processed about 200 foreign requests and providedinformation on about 1,000 potential partners from St. Petersburg.Exporters, investors and businesses are also encouraged to use a special online tool – portal “Doingbusiness in St. Petersburg” (www.doingbusiness.ru) which contains extensive interactiveinformation in English on advantages and key issues of pursuing business in St. Petersburg as well asa regularly updated database of cooperation profiles and export products from St. Petersburg.Deputy chairmanCommittee for Economic Development,Industrial Policy and Trade Kirill SoloveychikGovernment of St. Petersburg Doing business in St. Petersburg Enterprise Europe Network - Russia, Module A Regional Center – St. Petersburg | www.doingbusiness.ru 7
  8. 8. 1. The city1.1. GeographyCoordinates: Latitude: 59° 57 North Longitude: 30° 19 EastArea: 1,439 sq.km.Climate: Maritime, with warm damp summers and moderately cold long wintersAverage temperature: July: + 25 C January: - 2 CTime: MSK ( UTC+4)Dialing codes: International country code: + 7 (Russia) Area code: 812 Doing business in St. Petersburg8 Enterprise Europe Network - Russia, Module A Regional Center – St. Petersburg | www.doingbusiness.ru
  9. 9. 1.2. Public holidays and business hoursOfficial 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 DayBusiness 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 hours1.3. PopulationPopulation 4,868,500 people(2011):Labor force (2010): 2,660,500 peopleUnemployment rate 0.6%(2010):Population density 3,288.3 per sq. km.(2010):Gender ratio male: 44.8%(2011): female: 55.2%Population age Male and female (0-15) Male (16-59); Malecomposition: female (16-54) (60 and above);(2010): female (55 and above) 12.9% 61.6% 25.5%Median age Total: 41.3 years Male: 38.2 years(2010): Female: 43.9 yearsBirth rate 12.1(per 1,000 people, 2010):Death rate 14.2(per 1,000 people, 2010):Ethnic groups Russian (84.7%), Ukrainian (1.9%), Belarus (1.17%), unspecified (7.89%)(2002 Census):Official language: Russian Doing business in St. Petersburg Enterprise Europe Network - Russia, Module A Regional Center – St. Petersburg | www.doingbusiness.ru 9
  10. 10. 1.4. Political systemCity day: May 27. The city was founded on May 27, 1703City 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 Doing business in St. Petersburg10 Enterprise Europe Network - Russia, Module A Regional Center – St. Petersburg | www.doingbusiness.ru
  11. 11. Political system: Source: Business Support Structure in St. PetersburgExecutive 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 Governors 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, City Court of St. Petersburg (www.gs.courts.spb.ru), Arbitration court of St. Petersburg and Leningrad region (www.spb.arbitr.ru) and Leningrad Military Circuit Tribunal (www.lvo.courts.spb.ru).Suffrage: 18 years of age; universal Doing business in St. Petersburg Enterprise Europe Network - Russia, Module A Regional Center – St. Petersburg | www.doingbusiness.ru 11
  12. 12. Symbolsof St. Petersburg: Coat of arms FlagDiplomatic 55 consular offices, including 34 consulates, 1 embassy office, 3 honoraryrepresentations: consuls general, and 19 honorary consuls are accredited in St. Petersburg. Doing business in St. Petersburg12 Enterprise Europe Network - Russia, Module A Regional Center – St. Petersburg | www.doingbusiness.ru
  13. 13. 1.5. EconomyGRP ofSt. Petersburg 1,901.9(billion roubles): 1,642.1 1,431.8 1,473.3 1,119.7 825.1 666.4 2005 2006 2007 2008 2009 2010 2011 (estimate) (forecast) Source: Committee for Economic Development, Industrial Policy and TradeGRP per capitain St. Petersburg(roubles): 389,595 341,683 310,567 320,914 245,023 180,315 145,174 2005 2006 2007 2008 2009 2010 2011 (estimate) Source: Federal State Statistics Service; Committee for Economic Development, Industrial Policy and TradeGRP sectoralcomposition Industrial production(2010): Other 19% 24% Real estate 7% Transport and 21% 10% communications Construction 18% Wholesale and retail trade Source: Committee for Economic Development, Industrial Policy and Trade Doing business in St. Petersburg Enterprise Europe Network - Russia, Module A Regional Center – St. Petersburg | www.doingbusiness.ru 13
  14. 14. City budget(billion roubles): 399.5 339.1 315.6 347 358.6 404 278.1 355.8 322.2 259.3 179.9 120.3 186.2 129.9 2005 2006 2007 2008 2009 2010 2011 Revenues Expenditures Source: Committee for Economic Development, Industrial Policy and TradeCity debt Total: 6,614.2 million roubles, including(01.01.2011): Internal: 6,614.2 roubles External: 0 roublesCredit ratings : Long-term credit international scale ratings in foreign currency:  Standard&Poor’s – BBВ (December 2009), forecast – stable  Moody’s Investors Service – Baa1 (May 2011), forecast – stable  FitchRatings – BBВ (September 2011), forecast – positive Long-term credit national scale ratings:  Moodys Interfax – Aaa.ru (July 2005)  FitchRatings – AAA(rus) (September 2011), forecast – stableLeading 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. Doing business in St. Petersburg14 Enterprise Europe Network - Russia, Module A Regional Center – St. Petersburg | www.doingbusiness.ru
  15. 15. 1.6. Foreign tradeForeign trade turnover(million USD): 25,734 23,643 24,524 20,685 17,786 17,839 14,177 12,658 13,437 11,817 10,116 4,914 2005 2006 2007 2008 2009 2010 Export Import Source: Territorial branch of the Federal State Statistic Service (Petrostat)Main trade partners(2010): Czech Republic 2.1% France 2.3% South Korea 2.4% Brazil 2.4% UK 2.5% Japan 3.1% Turkey 3.4% USA 3.7% CIS 4.2% Italy 4.3% Finland 4.7% Netherlands 8.6% Germany 9.1% China 17.5% Source: Territorial branch of the Federal State Statistic Service (Petrostat)Currency (code): Russian rouble (RUB)Exchange rates: RUB per EUR – 41.66 (November 2011), 40.3 (2010), 43.4 (2009), 41.40 (2008), 35.90 (2007), 34.70 (2006) RUB per USD – 30.29 (November 2011), 30.48 (2010), 30.24 (2009), 29.38 (2008), 24.55 (2007), 26.33 (2006) Source: Bank of Russia, Ministry of Finance of the Russian FederationFiscal period: calendar year Doing business in St. Petersburg Enterprise Europe Network - Russia, Module A Regional Center – St. Petersburg | www.doingbusiness.ru 15
  16. 16. 1.6.1. ExportExport volume (2010): 11,817 million USD (12.1% decline in comparison with 2009)Largest exporters JSC Gazprom Neft, JSC Admiralty Shipyards, LLC Novatek Severo-Zapad,(2010): CJSC PNT-GSM, VneshtorgbankExport structure (2010): 3% 4% Food products, agricultural raw materials Mineral products 15% Chemical products, natural rubber Leather and fur products 8% 0,2% Timber, pulp and paper products 65% Textile goods and 3% footwear Metal and metal products 0,4% 2% Machinery, equipment, vehicles Other Source: Territorial branch of the Federal State Statistic Service (Petrostat)1.6.2. ImportImport volume (2010): 24,524 million USD (37.8% increase in comparison with 2009)Largest importers LLC Nissan Manufacturing Rus, LLC General Motors Auto , LLC Petro,(2010): Northwestern branch of JSC MegaFon, branch of CJSC Russian Fish CompanyImport structure (2010): 7% Machinery, equipment, vehicles Metals and metal products Mineral products Timber, pulp and paper 36% products 27% Chemical products, natural rubber Textiles, textile goods, footwear 0.4% Leather and fur products 7% 12% Food products, agricultural 7% raw materials 1% Other 3% Source: Territorial branch of the Federal State Statistic Service (Petrostat) Doing business in St. Petersburg16 Enterprise Europe Network - Russia, Module A Regional Center – St. Petersburg | www.doingbusiness.ru
  17. 17. 1.7. Foreign investmentsVolume of foreign 6,284investments 5,928(million USD): 5,525 5,255 5,231 1,160 1,417 1,171 881 985 706 696 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 Source: Territorial branch of the Federal State Statistic Service (Petrostat)Structure of foreign 4investments (0.1%) 538(million USD, 2010): (10.3%) Foreign direct investment (FDI) Foreign portfolio investment (FPI) 4,689 (89.6%) Other foreign investment Source: Territorial branch of the Federal State Statistic Service (Petrostat)Foreign investments by Constructionsector of the economy (71)(million USD, 2010): Wholesale and Motor vehicles and equipment retail trade (766) (181) Manufacturing (4,764) Food, including beverages and Other (35) tobacco (550) Real estate (181) Source: Territorial branch of the Federal State Statistic Service (Petrostat) Doing business in St. Petersburg Enterprise Europe Network - Russia, Module A Regional Center – St. Petersburg | www.doingbusiness.ru 17
  18. 18. Major countries(million USD, 2010): France Belarus 18% South Korea 2.5% Belgium 2.9% 34.3% Kazakhstan 3.8% Cyprus 4.1% Sweden 4.4% 11.6% 8.4% Switzerland 10.2% Germany Other Source: Territorial branch of the Federal State Statistic Service (Petrostat) Doing business in St. Petersburg18 Enterprise Europe Network - Russia, Module A Regional Center – St. Petersburg | www.doingbusiness.ru
  19. 19. 2. Key business sectors2.1. Overview of St. Petersburg’s industry2.1.1. Structure and main indicatorsSt. Petersburg’s industrial complex represents the basis of the regional economic growth,accounting for the major source of budget.In the conditions of the global financial crisis, St. Petersburg’s industrial sectors showcased sufficientresilience and fast recovery following the recession. Initially sharp decline in economic growth wasrelatively quickly followed by renewed economic growth.Today, St. Petersburg’s industry, which employs approximately the fifth of the working population,accounts for 27% of the gross regional product and 36% of the total amount of tax revenues.Efficient operation of the industrial complex significantly affects the development of other sectorsof the economy, including transportation, construction, communication, trade and provides realopportunities for the solution of socio-economic goals of the city.Industrial complex of the city is represented by almost all industries. 700 large and mediumenterprises, a number of which represent the leading industrial enterprises of the RussianFederation, constitute the basis of the city’s industrial complex. More than 18 thousand smallenterprises, including microenterprises, also contribute to the development of the local economy.Large and medium enterprises, 2010Manufacturing (total) 675Electronic equipment, electronic and optical equipment 148Machinery and equipment 91Food, including beverages and tobacco 86Metallurgy and metal products 66Pulp and paper, publishing and polygraphic products 62Motor vehicles and equipment 48Non-metallic mineral products 47Chemical products 39Rubber and plastics 20Textiles and clothing 19Timber processing and timber products 14Leather, leather and footwear products 7Petroleum coke and petroleum products 3Other 25Electricity, gas and water production and distribution 50Mineral resources extraction 2Source: Committee for Economic Development, Industrial Policy and Trade, 2011In 2010 the volume of industrial production increased by 8.9%. This fact is attributed to thesignificant increase in the volumes of production of motor vehicles and equipment (2.4 timesincrease), metallurgy and metal products (26% increase), chemical products (24% increase). Doing business in St. Petersburg Enterprise Europe Network - Russia, Module A Regional Center – St. Petersburg | www.doingbusiness.ru 19
  20. 20. In 2010 the industry shipments of St. Petersburg’s enterprises constituted 1,461 billion roubles whichrepresents 124% to the level of 2009. Manufacturing enterprises determine operation of the localindustry. Such enterprises account for more than 90% of the total volume of industrial productsproduced in St. Petersburg (1,343 billion roubles). Machinery (144%), metallurgy and metal products(124%) and chemical products (126%) manufacturing enterprises contributed the most to thegrowth of production volumes in 2010.Structure of the volume of industry shipments, 2010 Mineral resources extraction 0.4% Manufacturing 91.9% Electricity, gas and water production and distribution 7.7%Source: Committee for Economic Development, Industrial Policy and Trade, 20112.1.2. ProfitabilityIn 2010 industrial complex accounted for 251 billion roubles in profit, including 228 billion roublesfrom manufacturing industries. While the share of profitable enterprises within the total number ofmanufacturing enterprises constituted 80% (77% in 2009), the volume of profit in the industrialcomplex increased by 37% in comparison with 2009. The most significant growth in profit incomparison with the previous year is reported in the production of motor vehicles and equipment(1.7 times) as well as metallurgy and metal products (1.6 times). In 2010 a high level of profitabilityremained in the production of food, beverages and tobacco (26%), chemical products (22%),machinery and equipment (17%).Profitability of manufacturing enterprises, 2010 Russian Federation 14.3% St. Petersburg 16.7%Source: Committee for Economic Development, Industrial Policy and Trade, 20112.1.3. Budget receiptsIndustrial complex accounts for major budget revenues in comparison with other sectors of the city’seconomy. In 2010 the tax revenues from industrial enterprises constituted 125 billion roubles (morethan 36% of the total amount), including 116 billion roubles received from manufacturing Doing business in St. Petersburg20 Enterprise Europe Network - Russia, Module A Regional Center – St. Petersburg | www.doingbusiness.ru
  21. 21. enterprises. Food production, including beverages and tobacco, motor vehicle and other types ofequipment production accounted for more than 85% of all budget receipts from the manufacturingsector.Structure of receipts into the budget of the Russian Federation from St. Petersburgsmanufacturing enterprises, 2010 2% 5% 2% 7% Food, including beverages Tobacco 8% 28% Chemical production Electronic and optical equipment Machinery and equipment 8% Metallurgy and metal products Motor vehicles and equipment 37% Non-metallic mineral products 3% OtherSource: Committee for Economic Development, Industrial Policy and Trade, 2011 Doing business in St. Petersburg Enterprise Europe Network - Russia, Module A Regional Center – St. Petersburg | www.doingbusiness.ru 21
  22. 22. 2.2. Automotive industry2.2.1. General overviewAutomotive industry and automotive parts manufacturing play an important role in St. Petersburg’stransport machinery complex. The city locates production facilities of the world’s leading carmanufacturers, including Nissan, Toyota, General Motors, Hyundai and Scania.Leading car manufacturing plants in St. Petersburg, 2011Brand name Opening Production Volume of Employees Model range volume, investment th.units/yearToyota 2007 50 133 mln USD 600 Toyota CamryGeneral Motors 2008 60 303 mln USD 1,300 Chevrolet Cruze, Chevrolet Captiva, Opel Astra, Opel AntaraNissan 2009 50 200 mln USD 1,500 Teana, X-trail, MuranoHyundai 2010 150 650 mln USD 2,400 SolarisScania 2010 6,5 10 mln Euro 600 all types of trucksSource: Committee for Economic Development, Industrial Policy and Trade2.2.2. Industry in numbersDevelopment of automotive clusters is one of the prerequisites of successful development ofautomotive industry. St. Petersburg has one of the fastest-growing and promising automotiveclusters, 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 landlots of 686.3 hectares and more than 6 thousand workplaces created, the volume of investment intothe construction of new car manufacturing facilities constituted 1.3 billion dollars. The total volumeof budget spendings directed towards the implementation of investment projects constituted 6.6billion roubles.Volume of car manufacturing in St. Petersburg, thousand units, 20112011F 225 2010 69.4 2009 19.9 2008 47.5Source: Committee for Economic Development, Industrial Policy and Trade Doing business in St. Petersburg22 Enterprise Europe Network - Russia, Module A Regional Center – St. Petersburg | www.doingbusiness.ru
  23. 23. 2.2.3. CompaniesLight 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, will start the production of a hybrid electric car yo-mobile. Doing business in St. Petersburg Enterprise Europe Network - Russia, Module A Regional Center – St. Petersburg | www.doingbusiness.ru 23
  24. 24. 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.2.2.4. Supporting institutions2.2.4.1. 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. Doing business in St. Petersburg24 Enterprise Europe Network - Russia, Module A Regional Center – St. Petersburg | www.doingbusiness.ru
  25. 25. 2.3. Food and beverage production2.3.1. General overviewFood complex in St. Petersburg is represented by 11 major industries, which include more than 80large and medium as well as 180 small enterprises. Brewing and tobacco manufacturing are the twomost developed sectors of the local food industry.High investment activity of St. Petersburg’s enterprises is one of the major factors accounting forthe successful development of food industry in the city. Increased automation and productionimprovements allowed companies to significantly diversify the assortment of produced foodproducts and improve their consumer appeal. Continuous renewal of assortment is one of thecharacteristics of the food industry in St. Petersburg. St. Petersburg’s enterprises develop at least100 new sorts of various bakery and pastry products, including bread and rolls, dried bread andbiscuits, pies and cookies. Assortment of the produced bakery products totals more than 400 itemswhich makes it the most diversified assortment present in Russia.2.3.2. Industry in numbersIn 2010 the volume of food industry shipments, including beverage and tobacco, constituted 14.6%of the total manufacturing industry in St. Petersburg. The shares of tobacco and confectioneryproduction industries in St. Petersburg represent more than 50% in the total Northwestern FederalDistrict output volume.Structure of industry shipments, 2010 Investment in fixed assets by industry, 2010 21% 77% 15% 49% 11% 8% 7% 12% Other manufacturing industries Electric power, gas and water production Motor vehicle and equipment manufacturing Food manufacturing, including beverages and tobacco Food manufacturing, including beverages and tobacco Metallurgy and metal product manufacturing Electric power, gas and water production Other industriesSource: Committee for Economic Development, Industrial Policy and Trade, 2011As of 2010, the food and beverage industry employs more than 11% of the total number of employeesoccupied in the St. Petersburg industrial complex and pays higher wages than any other industry in St.Petersburg (35.4 thousand roubles). Doing business in St. Petersburg Enterprise Europe Network - Russia, Module A Regional Center – St. Petersburg | www.doingbusiness.ru 25
  26. 26. As of 2010, food industry, including beverage and tobacco, is the most profitable industrial sector inSt. Petersburg (26%), followed by chemical (22%) and machinery and equipment production (17%).These industries account for more than 85% of all revenue receipts from the local manufacturingsector. More than 10% of all investment into industrial sector accounts for the production food,beverages and tobacco.12.3.3. CompaniesBakery 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.1 Committee for Economic Development, Industrial Policy and Trade Doing business in St. Petersburg26 Enterprise Europe Network - Russia, Module A Regional Center – St. Petersburg | www.doingbusiness.ru
  27. 27. 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 companys 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 St. Petersburg dairy plant Petmol 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. Doing business in St. Petersburg Enterprise Europe Network - Russia, Module A Regional Center – St. Petersburg | www.doingbusiness.ru 27
  28. 28. 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 Petros 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 firms 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.2.3.4. Supporting institutions2.3.4.1. Universities St. Petersburg Institute of Management and Food Technology St. Petersburg Institute of Management and Food Technology is an institute of continuing professional education and professional development, international information, scientific research, analysis, exchange of experience, which has been operating for more than 43 years. Every year more than 3 thousand specialists from bread and baking pasta, yeast, brewery and other food industry enterprises undergo training, career and professional development at the Institute. St. Petersburg State University of Refrigeration and Food Engineering With more than 6 thousand students enrolled, St. Petersburg State University of Refrigeration and Food Engineering is the leading higher educational institution in refrigeration engineering and food processing in Northwest Russia. The University has educated more than 25 thousand engineers who continue to actively contribute to the development of refrigerating and cryogenic engineering, technology and equipment for food processing. The University is actively involved in research, scientific and innovative activities. Technopark has been operating on the basis of the University since 2000. It unites the University engineering departments as well as business structures and small innovative enterprises. During the period of 5 years Technopark carried out more than 300 projects, which have been implemented at the largest food enterprises across Russia.2.3.4.2. Research Institutions All-Russia Scientific and Research Institute of Fats All-Russia Scientific and Research Institute of Fats is the largest scientific and research center in Russia specialized in oil and fact industry. The institute carries out fundamental and applied Doing business in St. Petersburg28 Enterprise Europe Network - Russia, Module A Regional Center – St. Petersburg | www.doingbusiness.ru
  29. 29. scientific research and introduces the best research practices aimed at technological, economic and social development of agro-industrial complex. The institute carries out research of vegetable oil production and processing, vegetable food protein as well as margarine and mayonnaise production, etc. State Scientific Research Institute of Baking Industry, St. Petersburg branch State Scientific Research Institute of Baking Industry is the leading scientific center of bread and baking pasta industry in the Russian Federation and CIS. St. Petersburg branch specializes in the field of developing new technologies for baking. The priority research areas are the development and improvement of biotechnological processes and assortment of rye, rye and wheat bread as well as pastry.2.3.4.3. Professional associations St. Petersburg Union of Food Enterprises The Union is a non-profit organization established in 2005 by baking, meat processing, dairy, oil and fat, confectionery, alcohol and other food industry enterprises. The organization aims to coordinate business activities of its members and actively participate in the effective state regulation in the sphere of food industry. Doing business in St. Petersburg Enterprise Europe Network - Russia, Module A Regional Center – St. Petersburg | www.doingbusiness.ru 29
  30. 30. 2.4. Information and communication technology (ICT)2.4.1. General overviewInformation and communication technology (ICT) sector is one of the most rapidly growing sectorsof the Russian economy. 60% of all Russian IT companies are based in St. Petersburg, including 49centers of leading international and Russian ICT companies. The development ICT cluster is apriority policy implemented by the Government of St. Petersburg. Availability of a developed ITinfrastructure, including a technopark, business incubator, modern research and scientificinstitutions, as well as highly qualified IT-personnel facilitate the development of St. Petersburg as aRussian leader in information and communication technology.2.4.2. Industry in numbersToday, ICT cluster is one of the youngest and most competitive sectors of innovation policyimplemented in St. Petersburg. The cluster represents not only an independent sector but also atrigger facilitating effective development of other sectors of the regional economy. As of 2009, thesector’s annual turnover constituted not less than 3.5 billion dollars. The amount of peopleemployed only in software development constitutes more than 36 thousand employees with almost100% of them possessing higher education degrees.Most of the companies and institutions comprising ICT cluster have the highest competitivenessrating, including Reksoft, Exigen Services, PROMT, Speech Technology Center, Spb Software,SPEEREO, Solvo and others.2Russian cities by number of head offices and remote development centers of IT companies, 2010Ranking City Number of offices1 Moscow 672 St. Petersburg 493 Moscow region 104-5 Novosibirsk 84-5 Voronezh 76 Rostov-on-Don 77 Tomsk 68-9 Yekaterunburg 58-9 Veliky Novgorod 48-9 Kazan 410-12 Nizhniy Novgorod 3 thSource: Russian software developing industry and software exports, 7 annual review, Russian Software DevelopersAssociation (RUSSOFT), 20102 Russian Software Developers Association (RUSSOFT) Doing business in St. Petersburg30 Enterprise Europe Network - Russia, Module A Regional Center – St. Petersburg | www.doingbusiness.ru
  31. 31. 2.4.3. CompaniesSuppliers of software development services Astrosoft Astrosoft is a premium level IT-services supplier with more than 10-year expertise in implementing projects all over Europe. The company is headquartered in St. Petersburg and provides a wide range of services in software development and integration, consulting and training. The key service areas include business applications development, business solutions development, business in Russia for start-up solutions, embedded systems development, legacy system re-architecture. Arcadia Arcadia is an innovative offshore software development based in St. Petersburg. The company provides a wide range of software development outsourcing services to customers worldwide. Today, Arcadia unites team of more than 170 software professionals with over 18 years of experience in custom development of business applications. AT Software AT Software is a leading software and hardware development company in Russia/CIS with customers in Europe, USA and Russia. AT Software was formed in 2008 as the result of merger of two leading Russian software development companies - Lanit-Tercom (St. Petersburg) and Artezio (Moscow). Today, its primary areas of expertise include telecommunications, industrial electronics, healthcare, banking and finance as well as education. The company offers a wide range of services, including software and/or hardware development outsourcing/offshoring (ODC), managed product development, enterprise services (custom applications development, audit, testing, customization, re-engineering, integration), IT consulting and research, IT staffing and out-staffing. DataArt DataArt is a custom software development company that provides advanced solutions for financial services, healthcare, hospitality and other industries. Founded in 1997, DataArt’s services include application development, quality assurance, team completion, reengineering and R&D. The company has been consistently named one of the top or fastest growing IT outsourcing providers worldwide by BusinessWeek. Headquartered in New York, DataArt runs R&D centers in Russia, including the center in St. Petersburg, Ukraine and maintains offices in London, UK. DevExperts DevExperts is a provider of professional software systems for on-line brokerage, exchange, and financial activities mostly on stock, options, and Forex markets. The company is specialized in the development, implementation, and support of financial systems intended to handle complex business activities, including a full set of advanced tools to meet both a traders and a brokers requirements. DevExperts is based in St. Petersburg and provides its services operating in the US, Great Britain, Russia, Japan as well as other countries. Doing business in St. Petersburg Enterprise Europe Network - Russia, Module A Regional Center – St. Petersburg | www.doingbusiness.ru 31
  32. 32. Digital Design Headquartered in St. Petersburg, Digital Design is an IT consultancy which offers a full range of IT services to clients in Russia and all over the world. The company’s services include customs software development, corporate portals, software plus services enabling, application maintenance and legacy migration, enterprise application integration, data warehousing and analysis, nearshore development center, rail fleet management system. Founded in 1992, the company has become one of the largest IT services providers in Russia. Exigen Services Exigen Services is an Inc. 5,000 global IT company that provides application outsourcing services. The company has been delivering its services to clients operating in the field of financial services (banking, brokerage and insurance markets), media and entertainment, healthcare, and industries for 17 years. Today, it employs more than 1,700 highly skilled developers and application outsourcing experts within its global delivery network. Headquartered in San Francisco, USA, the company has one of the largest development centers in St. Petersburg. Reksoft Reksoft is a nearshore software engineering services provider established in 1991. The company is headquartered in St. Petersburg and has delivery offices across Europe. Reksoft specializes in supplying software development services, products and solutions to enterprises, ISVs, and system integrators operating in a variety of industries. Reksoft’s major services include software product engineering, enterprise application services, including consulting, custom application development, enterprise application integration, application management, migration and customization, as well as dedicated centers.Software product developers Doctor Web Doctor Web is a developer of highest-grade anti-virus protection Dr.Web®. The company is headquartered in Moscow with the Department of AV- Research and Development located in St. Petersburg. Doctor Web unites the team of more than 230 specialists with over half of them engaged in R&D. Dr. Web’s security products are distributed through its network of partners. Eureca Eureca has been operating at the Russian market since 1990. Today, the company offers a variety of services, including development of complex information systems, development and supply of integrated network solutions, development, production and supply of high-efficient servers and working stations, organization of automated data entry, storage, access and search systems and many others. The company has offices in St. Petersburg, Moscow and Kursk as well as a training center in St. Petersburg. Doing business in St. Petersburg32 Enterprise Europe Network - Russia, Module A Regional Center – St. Petersburg | www.doingbusiness.ru
  33. 33. PROMPT PROMT is a leading Russian developer of linguistic IT solutions for business and private users. The company has been successfully operating at the market of innovative linguistic technologies for 20 years and, today, offers translation systems for twelve languages. PROMT has 4 worldwide offices, including the corporate office in St. Petersburg, and provides its services to more than 10 thousand client companies all over the world. SPB Software SPB Software Inc. is a global company which develops mobile solutions for OEM mobile device manufacturers and mobile carriers as well as smartphone and tablet end users. With dozens of industrial awards and millions of customers worldwide, SPB provides a unique line of popular consumer products, ranging from mobile games to usability and productivity applications, business, communication, and multimedia software for mobile phones. Founded in St. Petersburg in 1999, the company retains its development headquarters in the city and has offices in USA, Brazil, Taiwan, and Thailand. Speech Technology Center Speech Technology Center is a leading provider of cutting-edge voice- based solutions in speech recording, processing and analysis. Founded in 1990, Speech Technology Center has over 20 years of experience in speech technology development. STC provides competitive solutions across a range of fast-growing technology sectors, including multi-channel and hand-held digital recording, noise cancellation, speech enhancement and biometric authentication and identification. STC is also a leading developer of speech recognition and synthesis engines for the Russian language. Speereo Speereo Software UK Ltd. was founded in 1998 and has a head office in London, UK as well as a R&D center in St. Petersburg. The company specializes in the development of its own proprietary speech recognition system as well as mobile and PC solutions based on Speereo Speech Recognition (SSE) Technology.Software development centers of international companies Alcatel-Lucent Alcatel has been operating its R&D center in St. Petersburg since 2005. Its main objectives lie in the development and integration of innovative telecommunications software systems, and adaptation of existing company’s products to the specific requirements of the regional market. The center covers three fields of applications, including fixed, mobile and enterprise networks, and employs 150 specialists trained at the specialist R&D centers in Europe and the US. Doing business in St. Petersburg Enterprise Europe Network - Russia, Module A Regional Center – St. Petersburg | www.doingbusiness.ru 33
  34. 34. EMC Opened in 2007, EMC R&D center in St. Petersburg is an important part of the global EMC R&D investment program. The center focuses on rendering support and continuous development of a wide range of world’s leading software products. St. Petersburg’s center currently employs more than 170 program engineers specialized in data management and data storage systems. HP Labs HP Labs Russia is the newest member of the international HP Labs community, and the third new research lab created by the company in the last five years. Opened in St. Petersburg in 2007, it focuses on information management and development of new technologies linked to the explosion of information access brought about by the World Wide Web. The only Russian HP research lab delivers breakthrough technologies and technology advancements that provide a competitive advantage for HP and create business opportunities that go beyond HPs current strategies. Intel Opened in St. Petersburg in 2004, the Intel R&D center currently employs more than 100 specialists. The center focuses on conducting research and development of innovative software solutions for Internet-related technologies, including Dynamic Runtime Layer (DRL), communication technologies that enhance wireless communication, grid computing to optimize programming environment. St. Petersburg center works in close collaboration with the city universities with the aim of creating a solid academic foundation for information. Oracle Development Following the Sun Microsystems’ acquisition by Oracle in 2009, the Sun Microsystems’ center of high technologies in St. Petersburg has been functioning as Oracle Development LLC.System integrators BCC Group Founded in 1994, today, BCC Group is one of the leading companies providing IT-services and systems integration at the Russian market. The company’s major activities include enterprise management and business consulting, IT-consulting, software integration and installation services, telecom solutions for mobile and fixed communication networks, IT and telecom solutions for production and manufacturing and others. The company has 5 offices in Russia, including the office in St. Petersburg. Nienschanz Nienschanz is one of the largest IT-oriented holdings in Russia and an experienced solution provider. CJSC Nienschanz was founded in St. Petersburg in 1991 and since then has developed into a multi-profile group of companies. The major services include system integration, IT- consulting, fabrication, integrated supplies and service maintenance of computer facilities and peripheral units, integrated supplies of copying- and-duplicating machines, manufacture, integrated supplies, distribution and service maintenance of office furniture. Doing business in St. Petersburg34 Enterprise Europe Network - Russia, Module A Regional Center – St. Petersburg | www.doingbusiness.ru
  35. 35. SOLVO SOLVO Ltd. is a St. Petersburg based leading vendor of high-end logistics automation and control systems. The company provides solutions for automating the entire complex of business and technology processes within warehouses and container terminals. SOLVO offers its customers a wide range of services, including project customization, training and consulting, system implementation and deployment assistance, and technical support.2.4.4. Supporting institutions2.4.4.1. Universities St. Petersburg State Electrotechnical University St. Petersburg State Electrotechnical University is one of the world’s largest education and research centers specializing in radio engineering, electrical engineering, electronics and computer science. The University has a staff of more than 1,000 highly-qualified specialists and scientists, including the Nobel Prize Winner in physics Zhores Alferov. Electrotechnical University is alma mater for over 70 thousand students and over 3 thousand international students. St. Petersburg State Polytechnical University St. Petersburg State Polytechnical University was founded in 1899. It has recently become the National research University, thus recognized as a leading Russian and international center in the field of higher engineering and economics. The University attracts students form 96 countries of the world and provides education programs in the field of engineering, physics, economics, humanities and IT. Today, the University has 20 departments and institutes and 120 R&D labs and offers more than 150 concentrations. St. Petersburg State University Founded in 1724, St. Petersburg State University is the oldest institution of higher education in Russia. The University’s Department of Mathematics and Mechanics together with its comprising scientific institutions is one of the largest mathematical centers in the world. The Department offers 23 concentrations and also includes the Research Institute of Mathematics and Mechanics, a computer center and astronomy observatory. St. Petersburg State University of Information Technologies, Mechanics and Optics The National Research University of Information Technologies, Mechanics and Optics is one of the oldest higher education institutions in Russia. The school has been training specialists in cutting-edge technologies directed to science and technical development for more than 100 years. Today, the University has 10 departments offering 49 concentrations and enrolls more than 9,000 full-time students.2.4.4.2. Research Institutions St. Petersburg Institute for Informatics and Automation, Russian Academy of Sciences (RAS) St. Petersburg Institute for Informatics and Automation of the Russian Academy of Sciences was founded in 1978 and has since then grown into a large scientific research organization which gave rise to a new Center of Ecological Security of the St. Petersburg Scientific Research Center of RAS. Today, the Institute is engaged in fundamental research of informatization of society and information security, information and computer systems and networks, theoretical basics of development of soft- and hardware complexes for information real-time processing, IT for intelligent systems of research automation, control, manufacturing and other fields. Doing business in St. Petersburg Enterprise Europe Network - Russia, Module A Regional Center – St. Petersburg | www.doingbusiness.ru 35
  36. 36.  St. Petersburg Department of Steklov Institute of Mathematics, Russian Academy of Sciences (RAS) The Institute was established in 1940 as a department of the Steklov Institute located in Moscow. Today, it is an independent research institute specializing in fundamental research on theoretical mathematics and mathematical models of theoretical physics, including mathematical logic and theory of algorithms, theory of numbers, geometry and topology, mathematical analysis, theory of probability, mathematical statistics and many other.2.4.4.3. Associations RUSSOFT RUSSOFT is a multinational association of software companies from Russia and Belarus. The association was founded in 1999 and is headquartered in St. Petersburg. Today, RUSSOFT unites more than 70 companies which employ more than 20 thousand highly-qualified programmers and software engineers. The association was created to represent Russian software development companies at the global market, enhance marketing and PR activities of its members, and lobby their interests in their countries governments. RUSSOFT is a part of the Russian Information and Computer Industry Association (APKIT) where it plays a role of Software Development and Export Committee. SPb CIO Club St. Petersburg CIO Club is a professional community uniting IT directors of leading companies of the Northwestern region of the Russian Federation. The organization’s major objectives lie in providing support and strengthening the development of professional community of IT directors. Established in 2004, the Club is at present the largest professional IT community in Russia. Doing business in St. Petersburg36 Enterprise Europe Network - Russia, Module A Regional Center – St. Petersburg | www.doingbusiness.ru

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