Investments

St. Petersburg is one of the most investment attractive Russian regions from the point of view of non-oil and gas economic sectors. Today the city can offer:

• Diverse transport and logistics opportunities of the Northwest largest transport hub included into the two international transport corridors and equipped by up-to-date capacities for cargo processing and storage
• Well-developed international business relations mostly made by high technology products
• A significant territorial potential and reasonable city planning policy through to 2025
• City government’s support of investment projects in the priority sectors – housing and public utilities and road building, high technology industries, housing and commercial construction, tourism, as well as image projects
• High-skilled personnel and government programs of target personnel training
• Reliable power supply for industrial businesses and organizations
• Unique environment of the “open city” which means rich culture and historic heritage, developed tourism infrastructure, good transport system for all intraurban territories, high quality living standards and acceptable ecology

St.Peterburg’s law “Of government support of investment activity in St. Petersburg” defines the basic principles of the city’s investment policy:

• Goodwill toward the investor
• Presumption of the goodwill of investors
• Balance of public and private interests
• Openness and access for all investors to information necessary for carrying out investment activity
• Clear and simple investment processes in St. Petersburg
• Equal rights of investors and unified public procedures
• Objectivity and economic common sense in decision-making
• Consistency of decisions made
• Mutual responsibility of St. Petersburg and investors

State support of investment activity on the territory of St. Petersburg is carried out in the following forms:

• Investors are guaranteed by the city of St. Petersburg that the money attracted by the investor to engage in investment activity will be returned based on the amount of funds intended for this purpose every year in the St. Petersburg budget
• Investors receive tax privileges within the limits of those sums contributed to the St. Petersburg budget in accordance with active legislation
• Banks and credit institutions providing investment loans for engaging in investment activities receive tax privileges for enterprises and organizations within the limits of those sums contributed to the St. Petersburg budget in accordance with active legislation
• Investors receive privileges when leasing St. Petersburg real estate property with the goal of carrying out investment activity using the leased property
• Investors receive deferments and extensions for periods of no more than 5 years on payments for use of real estate owned by the city of St. Petersburg, and rights to these real estate objects based on investment conditions according to procedures established by St. Petersburg administration
• Investors receive support based on St. Petersburg budget resources
• St. Petersburg participates in developing, providing expert opinions on and carrying out city investment programs, as well as individual investment projects

In order to attract private investment into its economy, St. Petersburg actively participates in public-private partnerships. The law “Of St. Petersburg’s participation in public-private partnerships” establishes order and terms of transferring St. Petersburg’s property or rights for some activity to a private investor. In the terms of public-private partnerships St. Petersburg can give an investor land areas, other movable or immovable property which belongs to the city, or some exclusive rights. The law envisages that St. Petersburg can participate in public-private partnerships in the following fields:

• Transport infrastructure
• Housing and public utilities including engineer communications and waste recycling systems
• Power supply
• Communications
• Healthcare
• Education
• Culture and social service
• Tourism, recreation and sport

Current investment attractiveness ratings of St. Petersburg are as follows:

• According to the national rating agency Expert RA, St. Petersburg in 2008-2009 ranked the fourth in the investment risk rating. The city is also one of the investment potential leaders: Moscow, St. Petersburg, Moscow region. Expert RA gave St. Petersburg the following ratings: 1B regional investment rating (high potential - moderate risk), A+ business climate rating (positive business environment, rapid business growth).
• In October 2005, the international rating agency Moody’s upped Russia’s rating in foreign and national exchange liabilities for one point – from Baa2 to Baa3. The rating is stable.
• In 2008 the international rating agency Fitch Ratings upped long-term ratings of St. Petersburg in foreign and national exchange liabilities from BBB- to BBB. The rating is stable.
• In 2007 the agency Standard & Poor’s confirmed long-term credit rating of St. Petersburg BBB-. The rating is positive.