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Doing business in St. Module A Regional Center – St.Russia. Petersburg Foundation for SME Development. © 2012 The Enterprise Europe Network . Petersburg Guide for exporters. Petersburg operated by St. Petersburg Foundation for SME Development with the assistance of the relevant legal. International copyright. research and real estate firms. Petersburg Foundation for SME Development and relevant contributing firms. investors and start-ups Current publication was developed by and under supervision of the Enterprise Europe Network Russia. certification. human resources.doingbusiness. Module A Regional Center – St. Petersburg Enterprise Europe Network . Petersburg operated by St.ru . All rights reserved. Petersburg | www. Gate2Rubin Consortium. Gate2Rubin Consortium. 4 Doing business in St. Module A Regional Center – St. Any use of materials of this publication is possible only after written agreement of St.Russia.

............... 70 Establishing a legal presence.......10.................................................. 148 Communication .... 3................................................................ 3............. 3.........................Table of contents Welcome to St. 19 Automotive industry .......1.................................................. 15 Foreign investments ......................................................... Petersburg | www........... Petersburg ............................... 129 Regulatory issues.............. Doing business in St......................8.................doingbusiness...........................................5...................................................................... Module A Regional Center – St...................................................................................7..................................................................................................................... 55 3........ 4...................... 7 1......................................................................6..................... 13 Foreign trade ...............................................................................................................3........................................3.................... 80 Taxation ..... Business solutions ...............7..................2............................................................1.......... 5..........................................6.................... 2.................. 4......................... 1.........................................4..................................2.......... 1....................3........................... Petersburg..... 108 Special economic zones (“SEZ”) in St...... 1.........................................................7.... 4...... 56 Research & Development..............................................................................3............................. 22 Food and beverage production ................. 1............................... 5....... 72 Foreign investments ............................................................................................... 17 Overview of St.......... 144 Office............................................................................................ 2....... The city ......................................142 5.. 8 1.........................................12.. 9 Population ................................................... 4.............................................................. Geography ................... Key business sectors....... 133 Costs of starting a company ................................................................9.. 25 Information and communication technology (ICT) ..............5. Petersburg............... 116 Obtaining rights to state-owned land in St..... 42 Transport and logistics ..2................. 4.........................Russia..................... Petersburg ...................4...........................3.................................................................................................................4............................ 4.......................1...................................................2.......................... Costs of doing business . Petersburg’s industry ......................................................................................2.......................................................................................................................................... 4.. 3..................................................................... 10 Economy .............................. 19 2.......... 4...... 5............... 58 Production сenter.......................................... 1...................... 92 Employment ...........5........................... 5........................................... 30 Pharmaceutical industry.............. 142 Human resources ........................................................ 3.......................................................................... 4......11....5... 4... 1.........1.................................................. 5.................................1...................... 2.......................................... 85 Contracts ....................................................................................... Doing business .............................................................................. 68 Test market ............... 72 4................................. Petersburg Enterprise Europe Network .... 2............... 120 Buyout of land plots in St........... 4........... Antimonopoly compliance ................................................................ 154 Utilities ......................................... 61 Distribution сenter ............................................. 155 2...5........... 8 Public holidays and business hours .................................................. 9 Political system ....................... 102 Intellectual property rights and franchising .....................4.............................................................6............................................. 2........................................................ru 5 ............. retail and warehouse market ................ 95 Product conformity assurance in Russia ................................................................................................................................................................................. 2.. 4.............................................................. 114 Public private partnerships and infrastructure development........... 46 Headquarters....................... 37 Shipbuilding industry .4........

................... 170 Techno parks and business incubators .............. 6...........17............................................................. Russia ........................ 174 Chambers of commerce and industry ..... Petersburg Enterprise Europe Network ..................................... 178 Law firms ......................... 179 Transport and logistics ......................................................... Authors and contributors ............................................................................... 164 Authorities ............................................................12.................................................................................... Petersburg | www.......................................................................................ru ..... 164 Investment support ...... 178 Real estate ......... 7............7..........................................................................................2...................................................................... 6................................................................ 7....... 175 Business associations .....182 6 Doing business in St......................................................................... 7............................................ 7............................................ 176 Banks .. 177 Certification and testing ......................................6.. 7.........4....................................................................................1.......... 7...............3. 158 SME support and development programs ................................. 8...doingbusiness........................................................ 7............................ Contacts of the business support infrastructure .......................................................... 7........................... 175 Audit............5.......... 172 Educational programs and internships ........... 7............................9.............................................10...164 7.............................................................16............ 7.......... 7..........1.... 7... 6..............................15...........................................4.................157 6... 179 Recruitment.............2..... 168 Financial support ..... 167 SME support .................................................................................6.................................................... 180 7......18....... tax and consulting firms ......................................................................... Petersburg .......Russia................ 7........... 160 Overview of the business support infrastructure in St....................................................................................................................................................................... Module A Regional Center – St..... 166 SME business cooperation support .......................3....................................... Overview ......8....................... 157 Definition of SME – EU vs...........................................................11........................... 7............ 7................... 157 Statistics ....14.............................................. SME support ................................................................13........ 7................................................................ 177 Exhibitions ...... 7..................

Petersburg a business-friendly environment by reducing administrative barriers and simplifying the procedures required for business and investment activities. extensive scientific. Petersburg focuses on providing business support to Russian companies and provides free services to foreign companies to foster small business cooperation. cultural. Whether you want to start your business or invest in Russia. including issuance of building permits and registration of property rights. highly skilled workforce as well as broad market and competitive operating costs facilitate the development of efficient.ru) which contains extensive interactive information in English on advantages and key issues of pursuing business in St. test market. whether it is an R&D center. Petersburg an ideal location for their business needs. General Motors. developed infrastructure. Petersburg is the best place to do it. Foreign businesses can benefit from government investment incentives aimed at boosting the local economy. academic. production center or distribution hub. St. Petersburg | www. Favorable economic and geographical location in the European part of Russia. Bosch Siemens. All of them considered St. Petersburg Kirill Soloveychik Doing business in St. and tourism center in Russia as well as a growing economy with a thriving private sector and an attractive business environment.the city of enormous business opportunities and development potential. Petersburg. The EEN branch in St. Petersburg” (www. During the recent years many international companies have already implemented investment projects in St. Petersburg. investors and businesses are also encouraged to use a special online tool – portal “Doing business in St. Gillett. In 2011 Enterprise Europe Network (EEN) . Petersburg. British American Tobacco. It is the second largest economic.ru 7 . Deputy chairman Committee for Economic Development. research and educational potential. Petersburg Enterprise Europe Network . Hyundai and many others.Russia. Exporters. safe and stable business. Module A Regional Center – St. St. Petersburg is an attractive location for business and trade which has an established and effectively operating system aimed at supporting investment activity in the city.Welcome to St. The Government of St. Wrigley. research and real estate firms with the aim of providing start-ups. Petersburg. Pepsi. Petersburg processed about 200 foreign requests and provided information on about 1. Petersburg . human resources.doingbusiness. Petersburg as well as a regularly updated database of cooperation profiles and export products from St. Petersburg in collaboration of professional legal.St. Petersburg I would like to welcome you to St. Petersburg takes every measure to make St. This publication was developed by Enterprise Europe Network (EEN) .St. potential exporters and investors with the relevant information on starting and running business in St. transport.000 potential partners from St. including such leading companies as Coca-Cola.doingbusiness. certification. Industrial Policy and Trade Government of St.

ru .1.2 C MSK ( UTC+4) International country code: + 7 (Russia) Area code: 812 8 Doing business in St. Maritime.doingbusiness. Module A Regional Center – St.km.439 sq. Geography Coordinates: Area: Climate: Average temperature: Time: Dialing codes: Latitude: 59° 57' North Longitude: 30° 19' East 1.Russia. with warm damp summers and moderately cold long winters July: + 25 C January: . Petersburg | www. The city 1.1. Petersburg Enterprise Europe Network .

00 (1 p.m. till 11 p.2 years Female: 43.000 people.).Victory Day June 12 .288. till 6 p.00-18.500 people 0.5% 12.2% Male and female (0-15) Population (2011): Labor force (2010): Unemployment rate (2010): Population density (2010): Gender ratio (2011): Population age composition: (2010): Male (16-59).3.m. unspecified (7.New Year holidays January 7 – Russian Orthodox Christmas February 23 . till 2 p.m.m.00 (10 a.00 (9 a.00-23.00-19.3 years Male: 38. till 7 p.Armed Forces Day March 8 . Module A Regional Center – St.17%).m.1.International Labor Day May 9 .m. Public holidays and business hours             January 1-5 .00 (9 a.6% 25.) Banks: Mondays through Fridays .9.). Population 4.7%).National Unity Day Offices: Mondays through Fridays .Russia.m. lunch break – 13. Petersburg | www.868.10.3 per sq.2 Russian (84.2. female (55 and above) 61.8% female: 55.00 (12 p. male: 44. Ukrainian (1.ru 9 .6% 3. km. till 6 p.00-14. Belarus (1.Women’s Day May 1 .1 14.Day of Russia November 4 . most stores are also open on Sundays Restaurants: Mondays through Sundays – 12.660.) Stores: Mondays through Saturdays .). Petersburg Enterprise Europe Network .500 people 2.m.m.9%). 2010): Ethnic groups (2002 Census): Official language: Total: 41.000 people.89%) Russian Doing business in St. many restaurants and cafes are open 24 hours Official holidays: Business hours: 1.00-18.9.9 years 12.m.9% Median age (2010): Birth rate (per 1. female (16-54) Male (60 and above).doingbusiness. 2010): Death rate (per 1.

Krasnoselsky District 9.ru . -Petersburg (1703-1914). Vyborgsky District 4. each district is divided into municipal formations. At the moment there are 111 municipal formations (munitsipalnye obrazovaniya). Petrogradsky District 14. Central District 10 Doing business in St.1.Russia. 1.-Petersburg (1991 till present) City name: Administrative division: While the city is divided into 18 districts (rayons). Kurortny District 11.4. Vasileostrovsky District 3. Krasnogvardeysky District 8. Frunzensky District 18. Petersburg Enterprise Europe Network . Petrodvortsovy District 15. Moskovsky District 12. Admiralteysky District 2. Pavlovsky and Pushkinsky Districts 17. 1703      Conventional long form: Saint-Petersburg Conventional short form: St. St. Kolpinsky District 7. Kronshtadsky District 10. Primorsky District 16. Nevsky District 13. Petersburg | www.-Петербург | Петербург Former names: St. Petrograd (19141924). City day: Political system May 27.doingbusiness. Petersburg Local long form: Sankt-Peterburg | Санкт-Петербург Local short form: С. Kirovsky District 6. Leningrad (1924-1991). Module A Regional Center – St. The city was founded on May 27. Kalininsky District 5.

spb. Petersburg (www. Petersburg and Leningrad region (www.Russia. Petersburg Executive branch: The City Administration (www. Petersburg (www.gov.ru) and Leningrad Military Circuit Tribunal (www. The Legislative Assembly of St. the Governor's Chancellery. Petersburg.spb.lvo. The St. Petersburg. Arbitration court of St.ru) is the standing effective supreme and sole legislative (representative) body of the state authority in St. 18 years of age.ru 11 . universal Legislative branch: Judicial branch: Suffrage: Doing business in St. Module A Regional Center – St.gs. Judges of the Peace of St.ru).spbustavsud.spb.ru).arbitr.doingbusiness. Petersburg | www.assembly. Petersburg Enterprise Europe Network . Petersburg (www.courts.courts.ru).ru) is the superior executive body of St. Petersburg headed by the Governor. the city committees and the subordinate administrative-territorial departments of the Administration. Charter Court of St.spb. Petersburg Administration is formed of the Governor.Political system: Source: Business Support Structure in St. the Government. City Court of St.spb.

doingbusiness. Petersburg | www. 12 Doing business in St. Petersburg. Module A Regional Center – St.ru . Petersburg Enterprise Europe Network . including 34 consulates. and 19 honorary consuls are accredited in St. 3 honorary consuls general. Petersburg: Coat of arms Diplomatic representations: Flag 55 consular offices. 1 embassy office.Russia.Symbols of St.

431.683 389. Economy 1.642.Russia. Industrial Policy and Trade GRP per capita in St.7 666. Module A Regional Center – St.doingbusiness.914 245.4 825.119.9 1.567 320.023 145. Petersburg | www. Industrial Policy and Trade Doing business in St.5.ru 13 .3 GRP of St. Petersburg (roubles): 310.8 1. Industrial Policy and Trade GRP sectoral composition (2010): 19% 7% 10% 18% 21% 24% Industrial production Other Real estate Transport and communications Construction Wholesale and retail trade Source: Committee for Economic Development.1 1.473.315 341. Committee for Economic Development.901.1.595 2005 2006 2007 2008 2009 2010 2011 (estimate) Source: Federal State Statistics Service.174 180.1 1. Petersburg (billion roubles): 2005 2006 2007 2008 2009 2010 2011 (estimate) (forecast) Source: Committee for Economic Development. Petersburg Enterprise Europe Network .

radiology.5 347 315. power plant engineering. food.2011): Credit ratings : Total: 6.9 179. metallurgy and metalworking. information technology. 14 Doing business in St.6 355.2 404 120.614.01.2 roubles External: 0 roubles Long-term credit international scale ratings in foreign currency:      Standard&Poor’s – BBВ (December 2009). electronic engineering.3 2005 2006 2007 2008 2009 2010 2011 Revenues Expenditures Source: Committee for Economic Development.2 million roubles.1 399.614. Petersburg | www. forecast – stable Leading industries: Machinery.doingbusiness. Industrial Policy and Trade City debt (01. Petersburg Enterprise Europe Network . pharmaceutical.1 278. Module A Regional Center – St. including Internal: 6. vehicle and equipment manufacturing.City budget (billion roubles): 339. chemical production.3 129. electronic and optical equipment.ru . forecast – stable Moody’s Investors Service – Baa1 (May 2011). forecast – positive Long-term credit national scale ratings: Moody's Interfax – Aaa. shipbuilding.2 259.Russia.ru (July 2005) FitchRatings – AAA(rus) (September 2011). forecast – stable FitchRatings – BBВ (September 2011).8 322. including beverages and tobacco.9 186. Priority sectors/clusters: Automotive.6 358.

35. Petersburg | www.4% 2.914 25.40 (2008).7% 8.6% 9.6.4% 3.4% 2.658 10.3% 2. 30.24 (2009). Ministry of Finance of the Russian Federation Fiscal period: calendar year Doing business in St.685 17. Petersburg Enterprise Europe Network .4 (2009).1.177 12.2% 4. 41. 40. 24. 26.66 (November 2011).643 20.55 (2007). Foreign trade 23.33 (2006) Source: Bank of Russia.1% 3. 34.Russia.524 17.ru 15 .817 Foreign trade turnover (million USD): 2005 2006 2007 Export 2008 2009 Import 2010 Source: Territorial branch of the Federal State Statistic Service (Petrostat) Main trade partners (2010): Czech Republic France South Korea Brazil UK Japan Turkey USA CIS Italy Finland Netherlands Germany China 2.29 (November 2011).38 (2008).7% 4. 29.116 4. 30. Module A Regional Center – St.786 14.437 11.48 (2010).5% 3.doingbusiness.90 (2007).3% 4.5% Source: Territorial branch of the Federal State Statistic Service (Petrostat) Currency (code): Exchange rates: Russian rouble (RUB) RUB per EUR – 41. 43.1% 17.839 13.3 (2010).1% 2.70 (2006) RUB per USD – 30.734 24.

pulp and paper products Chemical products.2.8% increase in comparison with 2009) LLC Nissan Manufacturing Rus.524 million USD (37. agricultural raw materials Mineral products Export volume (2010): Largest exporters (2010): Export structure (2010): 15% Chemical products. branch of CJSC Russian Fish Company 7% Machinery.817 million USD (12.1. textile goods. vehicles Other 8% 0. Petersburg | www.4% 2% 65% Source: Territorial branch of the Federal State Statistic Service (Petrostat) 1. natural rubber Textiles.4% 7% 7% 12% 1% 3% Source: Territorial branch of the Federal State Statistic Service (Petrostat) 16 Doing business in St.Russia. equipment. LLC General Motors Auto . Module A Regional Center – St.6. Import 24.ru .6. agricultural raw materials Other Import volume (2010): Largest importers (2010): Import structure (2010): 27% 0. Northwestern branch of JSC MegaFon.1. CJSC PNT-GSM.doingbusiness.2% 3% 0. pulp and paper products Textile goods and footwear Metal and metal products Machinery. LLC Novatek Severo-Zapad. LLC Petro. JSC Admiralty Shipyards. vehicles Metals and metal products Mineral products 36% Timber. Vneshtorgbank 3% 4% Food products. equipment. Petersburg Enterprise Europe Network . footwear Leather and fur products Food products.1% decline in comparison with 2009) JSC Gazprom Neft. natural rubber Leather and fur products Timber. Export 11.

2010): Construction (71) Wholesale and retail trade (181) Motor vehicles and equipment (766) Manufacturing (4. including beverages and tobacco (550) Real estate (181) Source: Territorial branch of the Federal State Statistic Service (Petrostat) Doing business in St. Petersburg Enterprise Europe Network .255 5.Russia.1%) Foreign direct investment (FDI) Foreign portfolio investment (FPI) 4.928 5.764) Other (35) Food.284 5. Module A Regional Center – St.689 (89. 2010): 538 (10. Petersburg | www.525 Volume of foreign investments (million USD): 5.6%) Other foreign investment Source: Territorial branch of the Federal State Statistic Service (Petrostat) Foreign investments by sector of the economy (million USD.doingbusiness.160 706 1.1.171 881 696 985 1.3%) 4 (0.ru 17 .417 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 investments (million USD.7.231 1. Foreign investments 6.

Major countries (million USD.5% 2.ru .1% 18% 34. Petersburg Enterprise Europe Network .8% 4.4% 10.3% South Korea Belgium Kazakhstan Cyprus Sweden 4.doingbusiness. Module A Regional Center – St. Petersburg | www.6% Switzerland Germany Other Source: Territorial branch of the Federal State Statistic Service (Petrostat) 18 Doing business in St.2% 11. 2010): France Belarus 2.Russia.9% 3.4% 8.

Overview of St. 2011 675 148 91 86 66 62 48 47 39 20 19 14 7 3 25 50 2 In 2010 the volume of industrial production increased by 8. leather and footwear products Petroleum coke and petroleum products Other Electricity. construction. Industrial Policy and Trade. which employs approximately the fifth of the working population. Large and medium enterprises. publishing and polygraphic products Motor vehicles and equipment Non-metallic mineral products Chemical products Rubber and plastics Textiles and clothing Timber processing and timber products Leather.1. Today. including transportation. Key business sectors 2. Module A Regional Center – St.9%.doingbusiness. a number of which represent the leading industrial enterprises of the Russian Federation. Doing business in St.1. metallurgy and metal products (26% increase). St. Petersburg Enterprise Europe Network .1. Petersburg’s industrial complex represents the basis of the regional economic growth. Initially sharp decline in economic growth was relatively quickly followed by renewed economic growth. Petersburg | www.4 times increase). In the conditions of the global financial crisis. accounts for 27% of the gross regional product and 36% of the total amount of tax revenues. constitute the basis of the city’s industrial complex. 700 large and medium enterprises.ru 19 . Petersburg’s industry Structure and main indicators St. This fact is attributed to the significant increase in the volumes of production of motor vehicles and equipment (2.2. electronic and optical equipment Machinery and equipment Food.Russia. including microenterprises. Petersburg’s industrial sectors showcased sufficient resilience and fast recovery following the recession. St. including beverages and tobacco Metallurgy and metal products Pulp and paper. also contribute to the development of the local economy. trade and provides real opportunities for the solution of socio-economic goals of the city. 2010 Manufacturing (total) Electronic equipment. communication. More than 18 thousand small enterprises. Petersburg’s industry. Industrial complex of the city is represented by almost all industries. chemical products (24% increase). Efficient operation of the industrial complex significantly affects the development of other sectors of the economy. accounting for the major source of budget. 2. gas and water production and distribution Mineral resources extraction Source: Committee for Economic Development.

machinery and equipment (17%). Budget receipts Industrial complex accounts for major budget revenues in comparison with other sectors of the city’s economy. Profitability In 2010 industrial complex accounted for 251 billion roubles in profit.2.7 times) as well as metallurgy and metal products (1.3.Russia. including 228 billion roubles from manufacturing industries. Petersburg Enterprise Europe Network .1.7% Source: Committee for Economic Development.7% Source: Committee for Economic Development.doingbusiness.1. Machinery (144%). Manufacturing enterprises determine operation of the local industry.In 2010 the industry shipments of St. Petersburg 14. Petersburg’s enterprises constituted 1. In 2010 a high level of profitability remained in the production of food. 2010 Russian Federation St. 2010 Mineral resources extraction 0. 2011 2. Industrial Policy and Trade. Such enterprises account for more than 90% of the total volume of industrial products produced in St. While the share of profitable enterprises within the total number of manufacturing enterprises constituted 80% (77% in 2009).461 billion roubles which represents 124% to the level of 2009. the volume of profit in the industrial complex increased by 37% in comparison with 2009.343 billion roubles). Petersburg | www. chemical products (22%). Industrial Policy and Trade.6 times). beverages and tobacco (26%). Structure of the volume of industry shipments.3% 16. including 116 billion roubles received from manufacturing 20 Doing business in St.4% Manufacturing 91. Petersburg (1. The most significant growth in profit in comparison with the previous year is reported in the production of motor vehicles and equipment (1. Profitability of manufacturing enterprises. In 2010 the tax revenues from industrial enterprises constituted 125 billion roubles (more than 36% of the total amount). Module A Regional Center – St. gas and water production and distribution 7. metallurgy and metal products (124%) and chemical products (126%) manufacturing enterprises contributed the most to the growth of production volumes in 2010. 2011 2.ru .9% Electricity.

Structure of receipts into the budget of the Russian Federation from St.enterprises. 2011 Doing business in St. Petersburg | www.Russia.ru 21 . Petersburg's manufacturing enterprises. Module A Regional Center – St. including beverages and tobacco. Food production. motor vehicle and other types of equipment production accounted for more than 85% of all budget receipts from the manufacturing sector.doingbusiness. including beverages Tobacco 8% 28% Chemical production Electronic and optical equipment 8% Machinery and equipment Metallurgy and metal products Motor vehicles and equipment 3% 37% Non-metallic mineral products Other Source: Committee for Economic Development. Petersburg Enterprise Europe Network . 2010 2% 7% 2% 5% Food. Industrial Policy and Trade.

2.2.
2.2.1.

Automotive industry
General overview

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, th.units/year 50 60 Volume of investment 133 mln USD 303 mln USD Employees Model range

Toyota General Motors

2007 2008

600 1,300

Toyota Camry Chevrolet Cruze, Chevrolet Captiva, Opel Astra, Opel Antara Teana, X-trail, Murano Solaris all types of trucks

Nissan Hyundai Scania

2009 2010 2010

50 150 6,5

200 mln USD 650 mln USD 10 mln Euro

1,500 2,400 600

Source: Committee for Economic Development, Industrial Policy and Trade

2.2.2.

Industry in numbers

Development of automotive clusters 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. Volume of car manufacturing in St. Petersburg, thousand units, 2011
2011F 2010 2009 2008 225 69.4

19.9
47.5

Source: Committee for Economic Development, Industrial Policy and Trade

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Doing business in St. Petersburg Enterprise Europe Network - Russia, Module A Regional Center – St. Petersburg | www.doingbusiness.ru

2.2.3.

Companies
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.

Light motor vehicles

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

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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 Hyundaidedicated 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 institutions

2.2.4.1. 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.

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Doing business in St. Petersburg Enterprise Europe Network - Russia, Module A Regional Center – St. Petersburg | www.doingbusiness.ru

including beverages and tobacco Metallurgy and metal product manufacturing Other industries Source: Committee for Economic Development.ru 25 .4 thousand roubles). Food and beverage production General overview Food complex in St. including bread and rolls. constituted 14. including beverages and tobacco Electric power. Petersburg. Continuous renewal of assortment is one of the characteristics of the food industry in St. Petersburg. gas and water production Electric power. Petersburg industrial complex and pays higher wages than any other industry in St. St. 2010 21% 15% 77% 49% 11% 8% 7% 12% Other manufacturing industries Food manufacturing. 2. including beverage and tobacco. Increased automation and production improvements allowed companies to significantly diversify the assortment of produced food products and improve their consumer appeal. Brewing and tobacco manufacturing are the two most developed sectors of the local food industry. Doing business in St. Industrial Policy and Trade. Petersburg (35. Petersburg represent more than 50% in the total Northwestern Federal District output volume. gas and water production Motor vehicle and equipment manufacturing Food manufacturing. Petersburg’s enterprises is one of the major factors accounting for the successful development of food industry in the city.3. Assortment of the produced bakery products totals more than 400 items which makes it the most diversified assortment present in Russia. 2.2. which include more than 80 large and medium as well as 180 small enterprises. Petersburg | www. the food and beverage industry employs more than 11% of the total number of employees occupied in the St. Industry in numbers In 2010 the volume of food industry shipments.1. Petersburg’s enterprises develop at least 100 new sorts of various bakery and pastry products. Structure of industry shipments. 2011 As of 2010. The shares of tobacco and confectionery production industries in St.2. Petersburg Enterprise Europe Network .3.doingbusiness.6% of the total manufacturing industry in St. pies and cookies.Russia. dried bread and biscuits. 2010 Investment in fixed assets by industry. High investment activity of St. Module A Regional Center – St. Petersburg is represented by 11 major industries.3.

food industry. Beverage production Carlsberg Group Baltic Beverages Holding. Petersburg’s Heineken brewery also produces and distributes Budweiser beer. Hlebny Dom produces bakery and confectionery products. Heineken Heineken has been operating in Russia since 2002 when it acquired the Bravo plant in St. Petersburg more than 80 years ago. Inc. More than 10% of all investment into industrial sector accounts for the production food. long term storage foods as well as frozen and flaky dough products. a leader at the Russian beer market which manages Baltika.3. opened in St. Today. it is a modern fully-equipped bakery which produces more than 170 items of fancy and bakery products. Petersburg Enterprise Europe Network . while creating up to 200 additional seasonal workplaces during the peak seasons. The company became a part of the Fazer Group in 1997. 1 Committee for Economic Development. (PBG) PepsiCo drinks are produced by Pepsi Bottling Group at its four plants in Russia. water. St. juices. is the largest brewery in Eastern Europe and the second-largest brewery in Europe after Heineken Brewery. These industries account for more than 85% of all revenue receipts from the local manufacturing sector. became a part of the Carlsberg Group in 2008. Petersburg | www. Bakery Companies 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. is the most profitable industrial sector in St. Petersburg (26%). including beverage and tobacco.000 people. Coca-Cola Company Coca-Cola’s plant. Industrial Policy and Trade Doing business in St. PBG produces and distributes all PepsiCo products. Petersburg as well as one in Moscow. Petersburg. Petersburg in 1995. beverages and tobacco. It employs more than 1.doingbusiness. produces Coca-Cola products for more than 13 million customers in St. Petersburg and Northwestern Russia. Karavay JSC Karavay was established in St.01% of Baltika stock. followed by chemical (22%) and machinery and equipment production (17%). Petersburg’s plant in 1992. It is represented by 4 production sites in St. teas. Karavay is one of the leaders of baking industry in St. It currently possesses 4 baking plants.ru 26 .As of 2010. Module A Regional Center – St. Carlsberg currently owns 89. having signed a licensing agreement with Bud’s brand owner Anheuser-Busch. founded in 1990. Today.1 2. Pepsi Bottling Group.Russia. snacks. including carbonated soft drinks.3. Baltika Brewery. Petersburg. One of the top global FMCG companies in Russia opened its St.

the factory is a modern industrial complex with capacity to produce more than 20 thousand tons of confectionery products per year. 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. The distillery produces 3. chocolate semi-finished products for food industry. Company The world’s largest maker of chewing gum has been operating a 70 million dollar plant in St. The factory became a part of the Wimm-Bill-Dann production and trade group in 2000.K. Petersburg’s production facility in 1991. Chewing gum Wm.Russia. Petersburg plant with an investment of 100 million dollars. The Spanish candy maker launched its St. Wimm-Bill-Dann Baltic Milk Dairy Factory was launched in 1987. Petersburg dairy plant Petmol launched the production of dairy products in 1934. Petersburg since 1999. Unimilk St.ru 27 .Russian Standard Company A leading Russian premium vodka producer opened its distillery in St. Dairy Petmol dairy plant.doingbusiness. A 30. 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. Module A Regional Center – St. Ukraine and Central Asia and employs more than 18 thousand people. Total investments into the facility amounted to 60 million dollars. Baltic Milk. Petersburg Enterprise Europe Network . Candy Chupa Chups S. the company employs more than 14 thousand people and unites 28 enterprises in Russia. Petersburg in 2006.000 square meter facility handles the production of the company's entire vodka portfolio. Wrigley Jr. diabetic products. In 2003 LLC Unimilk became the main shareholder of the company. Ukraine and Belarus specialized in the production of dairy products and baby food. Krupskaya The history of the Confectionery factory began in 1938. The company operates more than 35 processing plants in Russia.A. It produces more than 130 confectionery products. including chocolate of different sorts. Wrigley is planning to expand its St. Petersburg | www.6 million dekaliters of vodka annually. Today. Established in 2002. St. Russian Standard Platinum and Imperia. Petersburg’s factory has the capacity of making up to 200 million 200-gram rolls per year. including Russian Standard Original. Unimilk is one of the leading manufacturers of dairy products in Russia and CIS. Today. 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. Confectionery factory named after N. Doing business in St. Will-BillDann 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 brand portfolio includes over 30 brand names. L&M. technology and equipment for food processing. scientific and innovative activities. Petersburg Enterprise Europe Network .3. Every year more than 3 thousand specialists from bread and baking pasta. St. Petersburg operates 13 production lines producing five premium brands.  Supporting institutions 2. Petersburg Institute of Management and Food Technology St. officially opened its third Russian cigarette factory in St. which have been implemented at the largest food enterprises across Russia. which has been operating for more than 43 years. The University is actively involved in research. Chesterfield and Bond Street brands.4. The plant. Petersburg Institute of Management and Food Technology is an institute of continuing professional education and professional development. Petersburg in 2000.ru 28 .3. Petersburg plant’s production capacity to 40 billion cigarettes a year. Petersburg State University of Refrigeration and Food Engineering With more than 6 thousand students enrolled. Virginia Slims. scientific research. During the period of 5 years Technopark carried out more than 300 projects.4. The total investment of 335 million dollars made this project the company’s largest cigarette plant in Europe.  2. Technopark has been operating on the basis of the University since 2000. career and professional development at the Institute.4.Tobacco British American Tobacco (BAT) BAT’s plant in St. It unites the University engineering departments as well as business structures and small innovative enterprises. 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. thus increasing St. It supplies the firm's Russian and Ukrainian plants with main tobacco components used for cigarette production. exchange of experience. which employs 750 workers and operates 15 conveyer belts.2.1. Philip Morris International (PMI) Philip Morris Inc. Petersburg is the company’s biggest worldwide plant with the total of 400 million dollars invested. Parliament.doingbusiness. 2.3. St. produces the Marlboro. The institute carries out fundamental and applied Doing business in St. brewery and other food industry enterprises undergo training. In 2002 the company began construction of a new processing line and a warehouse with the total investment estimated at 240 million dollars. Petersburg | www. yeast. Petersburg State University of Refrigeration and Food Engineering is the leading higher educational institution in refrigeration engineering and food processing in Northwest Russia. analysis.Russia. It provides about 25% of BAT’s production volume in Russia. Universities St. both international and local. Petersburg in 2007 with the total investment of 110 million dollars. Japan Tobacco International (JTI) Petro JTI Petro's cigarette making facility in St. The company completed the construction of new production facilities at its plant in St. Module A Regional Center – St. The University has educated more than 25 thousand engineers who continue to actively contribute to the development of refrigerating and cryogenic engineering. international information.

Petersburg Enterprise Europe Network . The organization aims to coordinate business activities of its members and actively participate in the effective state regulation in the sphere of food industry.3.4. St.ru 29 . St.doingbusiness. Professional associations  St. Module A Regional Center – St. State Scientific Research Institute of Baking Industry. 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.Russia. alcohol and other food industry enterprises.3. 2. etc. 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. dairy. Petersburg | www. oil and fat. rye and wheat bread as well as pastry. confectionery. 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. Petersburg Union of Food Enterprises The Union is a non-profit organization established in 2005 by baking. meat processing. Doing business in St. scientific research and introduces the best research practices aimed at technological.

The amount of people employed only in software development constitutes more than 36 thousand employees with almost 100% of them possessing higher education degrees. 2010 Ranking 1 2 3 4-5 4-5 6 7 8-9 8-9 8-9 10-12 City Moscow St. Solvo and others. including Reksoft. 2. Petersburg Enterprise Europe Network . As of 2009.2 Russian cities by number of head offices and remote development centers of IT companies. The development ICT cluster is a priority policy implemented by the Government of St. Exigen Services. Petersburg as a Russian leader in information and communication technology. 7 Association (RUSSOFT).2. Petersburg.Russia.1. Most of the companies and institutions comprising ICT cluster have the highest competitiveness rating. Russian Software Developers Source: Russian software developing industry and software exports.4.doingbusiness. the sector’s annual turnover constituted not less than 3. Information and communication technology (ICT) General overview Information and communication technology (ICT) sector is one of the most rapidly growing sectors of the Russian economy. Spb Software. Petersburg.ru 30 .4. Petersburg | www. 60% of all Russian IT companies are based in St. 2. PROMT. SPEEREO. business incubator. 2010 2 Russian Software Developers Association (RUSSOFT) Doing business in St.2. Speech Technology Center. modern research and scientific institutions. Module A Regional Center – St. as well as highly qualified IT-personnel facilitate the development of St.4. The cluster represents not only an independent sector but also a trigger facilitating effective development of other sectors of the regional economy. Industry in numbers Today. including a technopark. Availability of a developed IT infrastructure. including 49 centers of leading international and Russian ICT companies. ICT cluster is one of the youngest and most competitive sectors of innovation policy implemented in St. Petersburg Moscow region Novosibirsk Voronezh Rostov-on-Don Tomsk Yekaterunburg Veliky Novgorod Kazan Nizhniy Novgorod th Number of offices 67 49 10 8 7 7 6 5 4 4 3 annual review. Petersburg.5 billion dollars.

USA and Russia. embedded systems development. Petersburg | www. Today. IT staffing and out-staffing. Petersburg. Petersburg Enterprise Europe Network . Arcadia Arcadia is an innovative offshore software development based in St. The company has been consistently named one of the top or fastest growing IT outsourcing providers worldwide by BusinessWeek. consulting and training. AT Software AT Software is a leading software and hardware development company in Russia/CIS with customers in Europe. hospitality and other industries. enterprise services (custom applications development. AT Software was formed in 2008 as the result of merger of two leading Russian software development companies . its primary areas of expertise include telecommunications.ru 31 .2. The company is specialized in the development. Companies Astrosoft Astrosoft is a premium level IT-services supplier with more than 10-year expertise in implementing projects all over Europe. business in Russia for start-up solutions. Petersburg and provides a wide range of services in software development and integration. exchange.Lanit-Tercom (St. Headquartered in New York. DataArt’s services include application development. Petersburg.Russia. industrial electronics. team completion.4. DataArt DataArt is a custom software development company that provides advanced solutions for financial services. integration). Petersburg and provides its services operating in the US. re-engineering. DevExperts DevExperts is a provider of professional software systems for on-line brokerage.3. reengineering and R&D. Russia. and financial activities mostly on stock. DevExperts is based in St. implementation. banking and finance as well as education. options. Great Britain. and support of financial systems intended to handle complex business activities. Today. and Forex markets. managed product development. DataArt runs R&D centers in Russia. testing. Suppliers of software development services Doing business in St. including the center in St. including a full set of advanced tools to meet both a trader's and a broker's requirements. Petersburg) and Artezio (Moscow). The company is headquartered in St. Module A Regional Center – St. healthcare. customization. quality assurance. UK. including software and/or hardware development outsourcing/offshoring (ODC). The company offers a wide range of services. Japan as well as other countries. Arcadia unites team of more than 170 software professionals with over 18 years of experience in custom development of business applications. legacy system re-architecture. IT consulting and research. Founded in 1997.doingbusiness. business solutions development. The company provides a wide range of software development outsourcing services to customers worldwide. Ukraine and maintains offices in London. The key service areas include business applications development. audit. healthcare.

Digital Design Headquartered in St.Web®. and industries for 17 years. The company is headquartered in St.ru . custom application development.000 global IT company that provides application outsourcing services. 5. Petersburg Enterprise Europe Network . including development of complex information systems. Module A Regional Center – St. 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 has one of the largest development centers in St. Petersburg. healthcare. enterprise application integration. migration and customization. Moscow and Kursk as well as a training center in St. enterprise application integration. as well as dedicated centers.Russia. the company offers a variety of services. organization of automated data entry. Petersburg. Founded in 1992. brokerage and insurance markets). including consulting.700 highly skilled developers and application outsourcing experts within its global delivery network. the company has become one of the largest IT services providers in Russia. Web’s security products are distributed through its network of partners. Petersburg. it employs more than 1. ISVs. and system integrators operating in a variety of industries. data warehousing and analysis. media and entertainment. rail fleet management system. Eureca Eureca has been operating at the Russian market since 1990.doingbusiness. application maintenance and legacy migration. 32 Doing business in St. Today. software plus services enabling. Exigen Services Exigen Services is an Inc. Reksoft’s major services include software product engineering. Doctor Web unites the team of more than 230 specialists with over half of them engaged in R&D. Petersburg | www. corporate portals. Petersburg and has delivery offices across Europe. enterprise application services. The company has offices in St. access and search systems and many others. Reksoft specializes in supplying software development services. Software product developers Doctor Web Doctor Web is a developer of highest-grade anti-virus protection Dr. Petersburg. The company’s services include customs software development. Dr. Petersburg. Reksoft Reksoft is a nearshore software engineering services provider established in 1991. USA. development. The company is headquartered in Moscow with the Department of AVResearch and Development located in St. Headquartered in San Francisco. nearshore development center. The company has been delivering its services to clients operating in the field of financial services (banking. development and supply of integrated network solutions. products and solutions to enterprises. production and supply of high-efficient servers and working stations. Today. application management. storage.

Taiwan. Its main objectives lie in the development and integration of innovative telecommunications software systems. Founded in St. including multi-channel and hand-held digital recording. Petersburg in 1999. including fixed. noise cancellation. Module A Regional Center – St. SPB Software SPB Software Inc. SPB provides a unique line of popular consumer products. mobile and enterprise networks. Software development centers of international companies Alcatel-Lucent Alcatel has been operating its R&D center in St. processing and analysis. including the corporate office in St.ru 33 . speech enhancement and biometric authentication and identification. the company retains its development headquarters in the city and has offices in USA. 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. Petersburg since 2005. communication. and Thailand. Speech Technology Center has over 20 years of experience in speech technology development. today. UK as well as a R&D center in St.Russia. and multimedia software for mobile phones. Doing business in St. and provides its services to more than 10 thousand client companies all over the world. The center covers three fields of applications. and adaptation of existing company’s products to the specific requirements of the regional market. and employs 150 specialists trained at the specialist R&D centers in Europe and the US. PROMT has 4 worldwide offices. is a global company which develops mobile solutions for OEM mobile device manufacturers and mobile carriers as well as smartphone and tablet end users. Brazil. was founded in 1998 and has a head office in London. Petersburg Enterprise Europe Network . Petersburg. With dozens of industrial awards and millions of customers worldwide. ranging from mobile games to usability and productivity applications.PROMPT PROMT is a leading Russian developer of linguistic IT solutions for business and private users. STC provides competitive solutions across a range of fast-growing technology sectors. Petersburg. business. The company has been successfully operating at the market of innovative linguistic technologies for 20 years and.doingbusiness. Founded in 1990. Speech Technology Center Speech Technology Center is a leading provider of cutting-edge voicebased solutions in speech recording. STC is also a leading developer of speech recognition and synthesis engines for the Russian language. Petersburg | www. Speereo Speereo Software UK Ltd. offers translation systems for twelve languages.

communication technologies that enhance wireless communication. integrated supplies. Oracle Development Following the Sun Microsystems’ acquisition by Oracle in 2009.EMC Opened in 2007. BCC Group is one of the leading companies providing IT-services and systems integration at the Russian market. and the third new research lab created by the company in the last five years. software integration and installation services. grid computing to optimize programming environment. Module A Regional Center – St. The company’s major activities include enterprise management and business consulting. including Dynamic Runtime Layer (DRL). 34 Doing business in St. Petersburg has been functioning as Oracle Development LLC. Opened in St. Petersburg is an important part of the global EMC R&D investment program. IT and telecom solutions for production and manufacturing and others. The major services include system integration. including the office in St. CJSC Nienschanz was founded in St. today. IT-consulting. System integrators BCC Group Founded in 1994. Petersburg | www. integrated supplies and service maintenance of computer facilities and peripheral units. Intel Opened in St. St. fabrication. The company has 5 offices in Russia. HP Labs HP Labs Russia is the newest member of the international HP Labs community. ITconsulting. 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 HP's current strategies. EMC R&D center in St. Nienschanz Nienschanz is one of the largest IT-oriented holdings in Russia and an experienced solution provider. Petersburg. Petersburg in 1991 and since then has developed into a multi-profile group of companies.doingbusiness. Petersburg in 2007. the Intel R&D center currently employs more than 100 specialists. manufacture. The center focuses on conducting research and development of innovative software solutions for Internet-related technologies.ru . the Sun Microsystems’ center of high technologies in St. The center focuses on rendering support and continuous development of a wide range of world’s leading software products. Petersburg in 2004. Petersburg’s center currently employs more than 170 program engineers specialized in data management and data storage systems. Petersburg center works in close collaboration with the city universities with the aim of creating a solid academic foundation for information. Petersburg Enterprise Europe Network . distribution and service maintenance of office furniture. it focuses on information management and development of new technologies linked to the explosion of information access brought about by the World Wide Web.Russia. integrated supplies of copyingand-duplicating machines. telecom solutions for mobile and fixed communication networks. St.

Russia. Today. training and consulting. The school has been training specialists in cutting-edge technologies directed to science and technical development for more than 100 years.4.4. system implementation and deployment assistance.4. Petersburg State Polytechnical University St. St.2. Module A Regional Center – St. Petersburg State University Founded in 1724. SOLVO offers its customers a wide range of services. Doing business in St.SOLVO SOLVO Ltd. the University has 20 departments and institutes and 120 R&D labs and offers more than 150 concentrations. electronics and computer science.000 highly-qualified specialists and scientists. IT for intelligent systems of research automation. manufacturing and other fields.    2. Mechanics and Optics is one of the oldest higher education institutions in Russia. including project customization. economics. Petersburg Scientific Research Center of RAS. Russian Academy of Sciences (RAS) St. Petersburg State University is the oldest institution of higher education in Russia.1. Petersburg State Polytechnical University was founded in 1899.4. The University’s Department of Mathematics and Mechanics together with its comprising scientific institutions is one of the largest mathematical centers in the world. physics. a computer center and astronomy observatory. Petersburg based leading vendor of high-end logistics automation and control systems. is a St. Petersburg Enterprise Europe Network .and hardware complexes for information real-time processing.ru 35 . Research Institutions  St. including the Nobel Prize Winner in physics Zhores Alferov. Petersburg Institute for Informatics and Automation. Petersburg State University of Information Technologies. Electrotechnical University is alma mater for over 70 thousand students and over 3 thousand international students. 2. St. humanities and IT. Petersburg State Electrotechnical University St. Mechanics and Optics The National Research University of Information Technologies. Today. The University has a staff of more than 1.  Supporting institutions 2. Petersburg | www. the Institute is engaged in fundamental research of informatization of society and information security. It has recently become the National research University. Today. St. Petersburg State Electrotechnical University is one of the world’s largest education and research centers specializing in radio engineering.000 full-time students. and technical support. the University has 10 departments offering 49 concentrations and enrolls more than 9. electrical engineering.doingbusiness. control. St.4. The University attracts students form 96 countries of the world and provides education programs in the field of engineering. Universities 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. The Department offers 23 concentrations and also includes the Research Institute of Mathematics and Mechanics. information and computer systems and networks. theoretical basics of development of soft. The company provides solutions for automating the entire complex of business and technology processes within warehouses and container terminals. thus recognized as a leading Russian and international center in the field of higher engineering and economics.4.

Russia. Russian Academy of Sciences (RAS) The Institute was established in 1940 as a department of the Steklov Institute located in Moscow. mathematical statistics and many other. RUSSOFT unites more than 70 companies which employ more than 20 thousand highly-qualified programmers and software engineers. geometry and topology. The association was founded in 1999 and is headquartered in St. theory of probability.4. St. Petersburg Enterprise Europe Network . Petersburg | www.3. The association was created to represent Russian software development companies at the global market. Module A Regional Center – St. RUSSOFT is a part of the Russian Information and Computer Industry Association (APKIT) where it plays a role of Software Development and Export Committee. The organization’s major objectives lie in providing support and strengthening the development of professional community of IT directors. the Club is at present the largest professional IT community in Russia. Petersburg Department of Steklov Institute of Mathematics. it is an independent research institute specializing in fundamental research on theoretical mathematics and mathematical models of theoretical physics. 2. including mathematical logic and theory of algorithms.  36 Doing business in St. Petersburg. Established in 2004. Petersburg CIO Club is a professional community uniting IT directors of leading companies of the Northwestern region of the Russian Federation. Today. Today. mathematical analysis. and lobby their interests in their countries' governments.doingbusiness.4.ru . SPb CIO Club St. theory of numbers. enhance marketing and PR activities of its members. Associations  RUSSOFT RUSSOFT is a multinational association of software companies from Russia and Belarus.

35 bln RUB Production site Industrial zone "Pushkin" Industrial zone "Pushkin" Industrial zone "Pushkin" Industrial zone "Pushkin" SEZ "Noidorf" SEZ "Novo-Orlovskoe" SEZ "Novo-Orlovskoe" SEZ "Novo-Orlovskoe" SEZ "Novo-Orlovskoe" SEZ "Noidorf" SEZ "Novo-Orlovskoe" SEZ "Noidorf" SEZ "Novo-Orlovskoe" SEZ "Novo-Orlovskoe" SEZ "Noidorf" Lab complex Source: Committee for Economic Development.3 The effectiveness of the pursued government policies is revealed in the increased interest of international businesses in St. Petersburg constitutes more than 133.9 bln RUB 0. The average per capita consumption of pharmaceuticals in St. which is significantly higher than the average Russian consumption (82.12 billion roubles aimed at constructing new pharmaceutical plants were launched in 2010. Petersburg Enterprise Europe Network . Petersburg as well as the results achieved. Pharmaceutical industry General overview The development of pharmaceutical cluster is one of the priorities of the Government of St. 2010 Company Samson-Med Greopharm Neon Pharm-Holding Biokad Pharmasintez Vertex Immuno-Gem Novartis Investment 1. Petersburg constituted more than 20 billion roubles in 2009. respectively).Russia. This fact represents a significant trigger for development of competitive industry in the region.1 dollars.7 bln RUB 1. Industrial Policy and Trade 3 4 Committee for Economic Development.7 bln RUB 1 bln RUB 0. almost each project involves the construction of research labs for development of new pharmaceuticals.ru 37 .1.5.07 bln RUB 1. Industrial Policy and Trade Doing business in St. 11 projects on the localization of pharmaceutical facilities and creation of modern research infrastructure are being implemented in the framework of the cluster.5 dollars. Industrial Policy and Trade Committee for Economic Development. The total volume of investments constitutes approximately 30 million roubles. Module A Regional Center – St. 2.2.4 Nine investment projects with the volume of total investment of 25.5 bln RUB 2. Petersburg | www. In addition to production operations.6 bln RUB 15. Major pharmaceutical investment projects. The projects are implemented with the participation of the leading research and education centers.5. Petersburg is the most investment-attractive region of the Russian Federation as well as a launch pad for successful implementation of pharma and medical equipment projects.2.3 bln RUB 0. Petersburg. St. 2.5. According to Pharmexpert Market Research Center.doingbusiness. which play a pivotal role in establishment of joint modern research centers and labs. Industry in numbers The volume of pharmaceutical market in St.

viral infections and diabetes. gynecology/urology. Neon Neon aims to launch the production of high quality effective Russian pharmaceuticals to address the demands of the Russian healthcare system. chronic wheezing illnesses as well as biologically active supplements and beauty products. The project will be implemented within 2010-2014 on the territory of 2. The project will be realized within 2010-2014 and will include a complex base for the development of pharmaceutical products to treat bronchial allergy. The project will be implemented on the territory of 5 hectares and will include pilot production lab.8 hectares with the total budget of 1. It envisages the establishment of a high-tech production in accordance with the GMP standards with the annual capacity of 960 million units.Russia.3. 10 production lines for the production of substances. liquid and solid pharmaceuticals with the annual capacity of up to 60 million packages and storage facilities. The project with the total budget of 865 million roubles will be implemented in 2011-2015 on the territory of 4 hectares and will use unique complex technology for deep and complete plasma processing. Module A Regional Center – St. The key pharmaceutical cluster projects in St.5. Companies Biocad Biotechnological company Biocad is planning to construct a new research and pharmaceutical manufacturing plant on the territory of the Noidorf industrial zone within 2010-2017. The project aims to create an import substituting production of more than 40 essential pharmaceuticals in accordance with the GMP standards as well as scientific and research complex on oncology/hematology. Petersburg Enterprise Europe Network .doingbusiness. Gem-standard Gem-standard became the resident of the Novo-Orlovskaya Special Economic Zone (SEZ) in 2011. Petersburg | www.9 hectares within the Pushkinskaya industrial zone.6 hectares with the total investment of 800 million roubles and injection drug manufacturing on the territory of 2. Petersburg: 38 Doing business in St. Both projects will be implemented on the territory of the Pushkinskaya industrial zone within 2010-2014. The project includes the construction of two complexes.3 billion roubles. including suppository manufacturing on the territory of 1. Geropharm Geropharm aims to create a modern high-tech industrial complex in compliance with the GMP standards to produce original Russian as well as generic pharmaceuticals. neurology.2.ru . GalenoPharm The company intends to construct a scientific center for the supply of respiratory pharmaceuticals. The company is planning to construct a research and production complex for the development of innovative blood plasma pharmaceuticals.

gastroenterology and genecology products. Module A Regional Center – St. including cardiology.doingbusiness. Petersburg on June 16. The plant will manufacture therapeutic pharmaceuticals to counter socially significant diseases. The company will localize the production of 5 pharmaceuticals from the list of strategically significant pharmaceuticals.ru 39 . oncologic. cortagen and prostamax. The project is aimed at increasing the availability of essential pharmaceuticals as well as establishment of effective scientific and production base. The plant will manufacture C-peptide. The construction of this facility represents the most significant Novartis investment into Russia to date. Pharm-Holding Pharma-Holding announced its plans to build a science research and production complex in St. Samson-Med Samson-Med intends to construct a bio-substances and pharmaceutical manufacturing facility on the territory of 2. neurology. The project with the total investment of 15. The project with the total budget of 2 billion roubles envisages the development and transfer of pharmaceutical manufacturing technologies for the production of antitumor products to combat oncological diseases. The total budget of the project which will be implemented on the site of 2. Petersburg Enterprise Europe Network . Pharmasyntez Pharmasyntez plans to construct a scientific and manufacturing complex for the development and production of oncology pharmaceuticals on the territory of 4.9 hectares located in the Pushkinskaya industrial zone constitutes 800 million roubles.7 hectares in the Pushkinskaya industrial zone within 2010-2014. Polysan Polysan aims to construct a modern pharmaceutical plant in accordance with the GMP standards within 2010-2012.3 billion roubles will be implemented on the territory of 10 hectares within 2010-2014. including participation in Russian innovative projects. It will include the construction of research complex for the development of new medicines.5 billion roubles envisages organization of a complete technological cycle for the production of active pharmaceutical substances and pharmaceuticals in accordance with the GMP standards. Petersburg | www. The total investment of the project constitutes 2 billion roubles. pulmonology. including cardiovascular. The project with the total budget of 1. ophthalmology. immunologic diseases and diabetes.5 hectares located in the Novo-Orlovskaya Special Economic Zone (SEZ) within 2010-2015.Novartis The world’s leading pharmaceutical company operating in more than 140 countries around the world held a ground breaking ceremony to mark the launch of construction of a pharmaceutical manufacturing plant in St. The plant will produce high quality infusion pharmaceuticals. Doing business in St.5 billion solid peroral pharmaceutical as well as scientific and educational activities. 2011. The new greenfield facility will be located on the territory of the Novo-Orlovskaya Special Economic Zone (SEZ) and will manufacture innovative patented pharmaceuticals and modern high quality generic medicines. Petersburg within 2010-2014. modern production operations organized in accordance with the GMP standards with the annual capacity of 1.Russia.

The Institute specializes in the study of mechanisms of action of potential dangerous chemical and natural substances as well as development of novel antidotes and therapies. including study of new molecules and dosage forms. pharmacoepidemiological and pharmacoeconomic research as well as training of GLP. Petersburg State Institute of Technology is an acknowledged world’s center of chemistry. chemical and biotechnologies.5. translational studies.2. investigation of intracellular processes and intercellular contacts. Petersburg State Chemical-Pharmaceutical Academy St.6 billion roubles will be implemented within 2010-2014 on the territory of the Novo-Orlovskaya Special Economic Zone (SEZ). Module A Regional Center – St.4. The institute is engaged in epidemiologic and etiologic influenza/ARI surveillance improvement. The complex will include research as well as pilot production labs.4. Research Institute of Influenza Research Institute of Influenza is involved in solving fundamental and applied tasks in the field of virology.ru   40 . St. 2. The oldest pharmaceutical institution of higher education in Russia carries out high-tech research projects on the development and study of active pharmaceutical substances of natural and synthetic origin and educates highly qualified specialists in the sphere of molecular biology. The project with the total investment of 1. Petersburg Enterprise Europe Network . Petersburg State Chemical-Pharmaceutical Academy is a leading Russian center in educating high qualified process engineers occupied in industrial production of pharmaceuticals of various origin. St. The Institute possesses a vast range of methods of active pharmaceutical ingredients synthesis as well as pilot production of substances in accordance with the GMP requirements.  Supporting institutions 2. St. Petersburg | www. GSP and evidentiary medicine specialists.5. Research Institutions  Institute of Cytology of the Russian Academy of Sciences (RAS) Institute of Cytology is the leading institution of the Russian Academy of Sciences within the field of modern cell biology. cybernetics and engineering. Petersburg State Polytechnical University St.doingbusiness. It is a major center dedicated to training of personnel for scientific centers and industrial enterprises. Petersburg State Institute of Technology St. Petersburg State Pavlov Medical University One of the leading medical schools in Russia carries out preclinical research. developing healthcare and medical science. nanotechnologies. Universities St.Vertex Vertex aims to construct a new scientific and manufacturing complex for the development and production of innovative pharmaceuticals. The institute is tasked with studying the structural organization and expression of nuclear genome. thus serving a goal of protecting and augmenting human health.4. epidemiology and infectious pathology. Petersburg State Polytechnical University conducts a world top-level bioanalytical research in accordance with the FDA and GLP requirements.5. molecular genetic and Doing business in St. Institute of Toxicology The scientific center focuses on fundamental and applied research in the field of toxicology.1. clinical research. structure and function of cell organelles.    2. The academy participates in TEMPUS program realized by the EU and Russian Federation in the sphere of training of GMP experts. GCP.Russia. pharmaceutical chemistry and pharmacology.

genetic classification of existing and newly emerging viruses. Petersburg Institute of Pharmacy St. private clinic management. strengthen cooperation between Russian and international businesses and research organizations. Life Sciences Park is the largest project in Russia aimed at establishing a complex infrastructure for the development of pharmacy. Petersburg | www. immunology. The main scientific areas include elucidation of mechanisms of therapeutic activity of endogenous mediators for the development of new biopharmaceuticals. biotechnology and medical industry. development of new drug delivery systems for targeted and sustained release of drugs as well as medicine manufacturing. Petersburg State Mechnikov Medical Academy. Module A Regional Center – St. Life Sciences Park in St.   phylogenetic analysis of influenza viruses. product licensing.4.3. provide favorable conditions for the operation of companies engaged in R&D.doingbusiness. St. State Research Institute of Highly Pure Biopreparations The Institute is a biotechnological center specialized in novel therapeutics and diagnostics. 2011 the Government of St. etc. 2. Petersburg Institute of Pharmacy functions on the basis Adaptogen Interregional Center and St.ru 41 . Doing business in St. Petersburg signed the memorandum of intent with Life Science Park STP BP stipulating mutual cooperation in the development of Life Sciences Park in St. biologically active substances and beauty products. The project aims to create comfortable and competitive environment for the innovative development of life sciences in St. Petersburg. specific food products. Petersburg. physiology. studies on molecular mechanisms of viral pathogenesis. Petersburg Enterprise Europe Network . biochemistry. genetics. exploration of new ways for next-generation vaccine production as well as other relevant research areas. diagnostic studies. St. It is occupied in carrying out preclinical studies of new pharmaceuticals.5. mathematical modeling and epidemiological analysis labs. Petersburg On June 18.Russia. Petersburg State Mechnikov Medical Academy The oldest and one of the most prestigious institutions of higher medical education in Russia represents a scientific and research center which includes morphology. nanotechnology-based diagnostic reagents generation.

LPG tankers. Shipbuilding accounts for more than 50% of all products produced by the defense industry complex in St. Today.1. ice-breakers. In September 2010 the Government of St. the region accounts for 72% of the total volume of production within the shipbuilding industry.ru 42 . Module A Regional Center – St. While the development of a modern complex in the Northwestern region of the Russian Federation will benefit not only shipbuilding but also a number of related sectors. Petersburg’s economy.Russia. Petersburg. Petersburg Enterprise Europe Network . Petersburg and Severodvinsk are the only two Russian cities. Industry in numbers The Northwestern region is often referred to as a shipbuilding capital of Russia. dieselelectric submarine 38 billion roubles 35 billion roubles 6. which will be used for Arctic exploration.6.500 people 3. High concentration of industrial and scientific sectors as well as unique port infrastructure stipulates the development of shipbuilding industry and provides new opportunities for pursuing effective forms of cooperation within the city. For centuries the city served as the sea capital of Russia as well as a recognized center for shipbuilding. offshore ice-resistant fixed platforms.5 43 shipbuilding organizations which employ more than 50 thousand specialists are located in St.2. Petersburg Main products tankers. The priority lies in construction of a new shipbuilding complex on the island of Kotlin. High concentration of scientific and industrial shipbuilding potential accounts for more than 80% of R&D and over 70% of all domestic industrial production. Petersburg signed an agreement with the United Shipbuilding Corporation on the establishment of a shipbuilding cluster in the city. 2. Basic information on the shipbuilding complex on the Island of Kotlin. which locate shipbuilding facilities for the production of large-capacity ships and vessels. As a result of the project’s implementation. shipbuilding industry is undergoing major reorganization. floatable nuclear heat and power plants.6 St. 5 6 Ministry of Industry and Trade of the Russian Federation Committee for Economic Development.6. One of the first steps includes establishment of the engineering center on design and production of marine equipment. The region locates about 39% of all Russian shipbuilding enterprises as well as 58% of all personnel occupied in the industry. Industrial Policy and Trade Doing business in St. Petersburg | www. Today. St. Petersburg’s shipbuilding cluster will accommodate 200 shipbuilding enterprises engaged in manufacturing of import substituting equipment and components.6. as well as facilitation of social and economic development of Kronshtadt. Petersburg.5 billion roubles a year 8 years Annual gross receipts Volume of investment Total number of employees City tax revenue Implementation period Source: Committee for Economic Development. Shipbuilding industry General overview Shipbuilding is one of the leading industrial sectors in St.doingbusiness. first rate ships. St. naval science and education. aircraft carriers. Industrial Policy and Trade 2.2. it will facilitate the social and economic development of the city. The project envisages the development of a modern high-tech production.

ru 43 . assemble-welding and mechanical engineering. Petersburg Enterprise Europe Network . patrol boats. manufacturing and modernization of civil and naval vessels of various types.Russia. Today. Petersburg. which unites shipbuilding.doingbusiness.Number of shipbuilding enterprises across the federal districts of the Russian Federation. ALMAZ Almaz Shipbuilding Company has been for many years specializing in manufacturing of high-speed ships and boats. Department of Shipbuilding Industry and Marine Equipment. Petersburg-based shipbuilding enterprises: Admiralty Shipyard Admiralty Shipyard is one of the oldest and largest shipyards located in St. the shipyard is one of the major Russian enterprises engaged in design. 2011 Northwestern Federal District 2% 18% Urals Federal District Central Federal District 39% 15% Southern Federal District Far Eastern Federal District 10% 14% 2% Siberian Federal District Volga Federal District Note: Total number of shipbuilding enterprises in Russia . multi-purpose crafts as well as high-speed motor boats. Founded in 1704 by Peter the Great. including such naval warships as nuclear and diesel-powered submarines and large auxiliaries.6. Petersburg.3. Petersburg | www. The Western Shipbuilding and Repair Center unites the following St. Companies United Shipbuilding Corporation United Shipbuilding Corporation is a government-owned company. Almaz also offers services in production of shipbuilding ways. including the Western Shipbuilding and Repair Center in St. the Northern Shipbuilding and Repair Center in Severodvinsk and the Far Eastern Shipbuilding and Repair Center in Vladivostok. Doing business in St. The major products include hovercrafts. including 113 industrial enterprises and 54 scientific and research organizations Source: Modern state and perspectives of development of Russian shipbuilding industry.167. the corporation has 3 subsidiaries. repair and maintenance subsidiaries located across Russia. 2011 2. metal processing. Ministry of Industry and Trade of the Russian Federation. The shipbuilding enterprises united under the corporation are engaged in both commercial and naval shipbuilding and account for 80% of all shipbuilding projects in Russia. Module A Regional Center – St.

Kronstadt Marine Plant is one of the oldest shipbuilding plants in the world specialized in manufacturing of marine steel vessels with power systems. Petersburg in 1970.Russia. large commercial vessels intended for various types of cargo. 44 Doing business in St. Severnaya Verf (Northern Shipyard) Established in St. manufacture and maintenance of marine vessels.ru .6.6. complex control systems. Petersburg Enterprise Europe Network . including natural and social sciences and humanities. surface ships and submarines. marine electronics and control systems.Baltiysky Zavod (Baltic Plant) Baltiysky Zavod is one of the leading shipbuilding enterprises in Russia. technical equipment for exploration and extraction of oil. naval architecture and ocean engineering.6. Today.4. Founded in St.doingbusiness. processing and transportation as well as other industrial.  Supporting institutions 2. automated control systems of technological processes of oil and gas extraction. automated combat information and control systems. Research Institutions  Avrora Avrora is a scientific and production association established in St. 2. marine engineering. Petersburg more than 150 years ago. gas and other undersea mineral resources. training systems and simulators. The shipyard also develops a wide range of marine propulsion equipment and machinery as well as head exchanges for nuclear power plants. today Severnaya Verf is one of the major shipyards manufacturing both naval and civilian ships. Founded in 1902. It is the only enterprise in Russia which has experience in manufacturing ships and vessels using a three-dimensional mathematical model developed in the specialized shipbuilding system. today the University offers educational programs at 5 departments. medical and technical products.1. development and manufacturing of control systems for industrial. Founded in 1912. transportation and port facilities. Petersburg State Marine Technical University St. the shipyard specializes in manufacturing of ice-breakers and ice-classed vessels. Module A Regional Center – St. technological and power generation objects. including automated control systems of technical facilities. Universities St. the company is engaged in the development and manufacturing of control systems and devices for commercial and naval vessels. the shipyard has since then manufactured more than 500 ships and vessels working for the Russian Navy as well as export contracts. Petersburg | www. Kronstadt Marine Plant Founded in 1858. as well as naval ships. Sredne-Nevskiy Shipyard Sredne-Nevskiy Shipyard is one of the leading shipbuilding enterprises in Russia. non-ferrous and core-mould castings. Petersburg State Marine Technical University is the only institute of higher education in Russia which educates world class marine engineers specialized in design.2. 2.4. Petersburg in 1912 originally only for military shipbuilding. business and management.4.

Doing business in St. Petersburg. Finland. Krylov Shipbuilding Research Institute Krylov Shipbuilding Research Institute is the leading scientific institution of the national shipbuilding industry and has a status of the Russian Federation State Research Centre for naval commercial ships. the Center incorporates research laboratories. structural mechanics. The institute supplies its products not only to the Russian Navy but also foreign companies from China.ru 45 . periscope complex. Japan. water-development facilities and engineering enterprises. design of fishing and fish-processing vessels. Petersburg and a leading center of shipbuilding technologies in Russia. The Center carries out fundamental and exploratory research in the field of creation of modern technologies for shipbuilding and engineering sectors and participates in the development and implementation of large-scale investment projects. design and manufacturing of ship fittings. Today. design and construction divisions engaged in the development and modernization of shipbuilding yards. Petersburg Enterprise Europe Network . including fundamental research as well as product manufacturing. on-shore bases for marine objects. as well as production facilities for manufacturing of designed equipment. Central Scientific and Research Institute Elektropribor is the leading Russian research institute located in St.Russia.doingbusiness. Germany. The Institute carries out a full cycle of work. commercial ship and offshore engineering conceptual design studies. Main products include integrated satellite/inertial navigation systems.   Elektropribor. marine power plants and power generation as well as other marine-related technologies. hydrodynamics. mobile airborne marine gravimeter. Shipbuilding and Ship Repair Technology Center Shipbuilding & Ship Repair Technology Center is one of the major research institutions in St. Petersburg | www. This status comes due to both high qualifications of the staff researchers and experts who have established their own world-recognized schools of learning and a unique complement of experimental facilities combined with innovative in-house research methods and tools. The Institute is engaged in performing naval ship conceptual design studies. Norway and the Republic of Korea. India. Module A Regional Center – St. special-purpose vessels.

1. Another waterway. Central Russia. Petersburg in 2010. Petersburg Transport and logistics complex of St.2. including 7. Petersburg with the Caucasus. 2. Cis-Azov region as well as the Baltic Sea ports. Petersburg Enterprise Europe Network . Petersburg with the European North of the country. oil and gas pipelines.1 Water Transport Inland water transport plays an important role in the transport complex due to the wide continuation of the Neva – Ladoga Lake system. Transport and logistics General overview St. Petersburg’s inland waterways constituted 2. Up to 80% of all inland waterway operations is carried out in cooperation with the Large Port of St.4 thousand people in 2010.1.doingbusiness.2. which handles international freight and passenger operations via all means of transportation. Petersburg.7 million tons in the Volga-Baltic direction and 0.  Cargo operations In 2010 approximately 8 million tons of cargo was shipped on St. connects St. Volga-Baltic Waterway. Volga-Vyatka region. Volga region as well as ports on the Caspian Sea. Industry in numbers 2. High-speed transit operations increased by 15% in 2010. Petersburg Doing business in St. All types of transport infrastructure. Petersburg’s part of the VolgaBaltic Waterway. 2. Petersburg is a major transport hub of Russia.ru 46 .7 Passenger operations Total passenger turnover on St. Union of Industrialists and Entrepreneurs of St. river and sea transport.2. Union of Industrialists and Entrepreneurs of St. the Belomor-Baltic canal provides access to the White Sea. railway network.7. including car roads. Transit to other ports represents approximately 20% of all shipments. are present on the territory of the city. Cis-Ural region.122. The Volga-Don canal connects St.8  7 8 Transport and logistics complex of St. airport.7.2 million tons in the Baltic-Volga direction.7. Petersburg | www. Module A Regional Center – St.7. Approximately 290 thousand people were transported in 2010 in the framework of the water fixed-route taxi program. Petersburg in 2010. While the Svir-Onega Lake system provides access to the Republic of Karelia.Russia.

2. Petersburg 2.St. Union of Industrialists and Entrepreneurs of St.9  Cargo operations In 2010 the volume of cargo turnover at St. Petersburg in December 2010. Petersburg Enterprise Europe Network . Finland).doingbusiness. Petersburg occupy approximately 4 thousand hectares. including 4. Irinovskoe. Petersburg Doing business in St.6 million tons.Helsinki (Finland) . The node includes 5 stations (Baltic. Pavlovsky. the city’s railway hub mainly functions as a sorting center for foreign cargo and companies from other regions directed towards Finland. Vyborg. Moscow Sorting. Petersburg’s railway hub constitutes more than 110 million tons. Vitebsk.Structure of cargo turnover on the VolgaBaltic Waterway. 1 Port Station (New Port).2. Rail Transport St. Petersburg Open City. Malovisherskoe. 4. Petersburg’s railway hub includes 423 km of railroads.21 million people on long-distance direct connections. the Baltic and Baltic Sea ports. Petersburg in 2010. The total number of passengers  9 10 St. Petersburg’s railway hub constituted 108.10 Passenger operations 60. Petersburg . Shushary). 2010 28% 18% 38% 66% 34% Oil products Metal products Timber Fertilizers Construction materials General cargoes Operations along rivers and canals Local transit operations by high-speed fleet Operations along the Neva River with the exit to the Gulf of Finland Source: Transport and logistics complex of St. Committee for Investment and Strategic Projects Transport and logistics complex of St. Petersburg in 2010. Petersburg | www. Today. Petersburg. Module A Regional Center – St. Within the structure of cargo operations transit operations prevail over local cargo shipments. and Sestroretsk). 2010 2% 6% 7% 1% Structure of passenger traffic flow. Ladoga. Luga. Blagoveschensky bridge point.31 million people on long-distance local connections and 52. Railways and stations in St. Gatchina. Moscow. Priozersk. 10 passenger destinations (Oranienbaum.Russia.7.6 million people departed from railway stations located in St. A new high-speed train Allegro was launched on route St. 2 yards (St. Union of Industrialists and Entrepreneurs of St. Petersburg in 2010.15 million people on local connections. Annual cargo turnover of St.ru 47 . Volhovstroevskoe.

15  Dynamics and structure of cargo and passenger turnover at Pulkovo Airport. Union of Industrialists and Entrepreneurs of St.3 thousand tons of cargo operations. Union of Industrialists and Entrepreneurs of St. which includes the construction of a new passenger terminal and other airport infrastructure improvements.2. Petersburg 11 Transport and logistics complex of St. 2010 52. Petersburg Pulkovo St. Petersburg 14 Transport and logistics complex of St. thousand people Regular flights Charters Russian airlines Foreign airlines Source: Transport and logistics complex of St. Petersburg Enterprise Europe Network . The city has adopted a master plan for the development of air transport till 2025. million tons Transit Local connections Local cargo turnover Long-distance connections Source: Transport and logistics complex of St. Union of Industrialists and Entrepreneurs of St. Petersburg 15 Pulkovo Airport. Module A Regional Center – St. 11 Dynamics and structure of cargo and passenger turnover of St.doingbusiness. Union of Industrialists and Entrepreneurs of St. 14 As of 2009. Petersburg 2.Russia. In 2010 Pulkovo Airport handled 25.3.13 Passenger operations In 2010 passenger turnover at Pulkovo Airport constituted 8. 2009 Annual Report 12 48 Doing business in St.610.4 million passengers. which represents a 25% increase in comparison with the previous year. 30-40% of all cargoes shipped by Russian air companies accounts for JSC Rossiya Airlines. The first phase of reconstruction. Petersburg.5 16. Pulkovo Cargo Terminal is one of the five leading cargo terminals in Russia and is the largest cargo terminal in the Northwest Russia. Petersburg stations decreased by 35% within the period of 5 years (20062010) mainly due to the decrease in the number of passengers travelling on local connections.departing from St. 2010 Cargo turnover. Petersburg railway hub. Petersburg in 2010. Union of Industrialists and Entrepreneurs of St. St. It has the annual cargo handling capacity of 30 thousand tons.15 59. is scheduled for completion in 2013. Petersburg in 2010. Petersburg | www.42 Passenger turnover.6 49 8. Petersburg in 2010. which is the fourth busiest airport in Russia.ru . Petersburg in 2010.12  Cargo operations Today.674 6. 85% of all cargo shipments is handled by passenger airplanes.2 7. Air Transport Air transport has been actively developing in St. Pulkovo has been undergoing a major 1 billion euro modernization since 2007. Pulkovo handles regular aircraft operations along 59 international and 46 domestic routes as well as 25 routes to the CIS. 31 international air companies. Petersburg Airport official website 13 Transport and logistics complex of St. The airport handled 9. Petersburg in 2010. 29 Russian air companies and 11 companies from the CIS have regular flight operations from Pulkovo Airport. million people Cargo turnover.7. Petersburg is served by Pulkovo International Airport.7 770 Passenger turnover.767 passengers in 2011 which represents a 14% increase in comparison with 2010. thousand tons 2. The share of foreign air companies and charter flights in the structure of cargo operations has increased.

Petersburg in 2010. while the number of ferry passengers has increased 4 times since 2008. Petersburg. Petersburg constituted 58 million tons which is 15% more than in 2009. Union of Industrialists and Entrepreneurs of St. The water area of the port constitutes approximately 164. Petersburg is the largest port in the Northwest Russia and one of the most important components of St. Passenger traffic in 2010 constituted 604 thousand people. played a major role in the growth of ferry traffic in St. The port has 200 berths with the length of berthing line of 31 kilometers.4. Module A Regional Center – St. Petersburg in 2010.18 16 17 Administration of the Sea Port “Large Port of St. Petersburg’s transport complex. Petersburg. Petersburg. Union of Industrialists and Entrepreneurs of St. Petersburg in 2010. Petersburg Enterprise Europe Network .17 Structure of cargo turnover in the Large Port of St. Petersburg 18 Transport and logistics complex of St. 28 stevedoring companies perform cargo handling operations on the territory of the Large Port of St.Russia. Most of the berths are capable to process different kinds of cargoes as well as accept vessels with a draft of up 11 meters and length of up to 320 meters. Large Port of St. Petersburg – Helsinki ferry line in April 2010 as well as introduction of amendments into the Russian legislation. The opening of St.6 square kilometers. Petersburg The Large Port of St.ru 49 . Petersburg | www.2.16  Cargo operations Cargo turnover of the Large Port of St.doingbusiness. Union of Industrialists and Entrepreneurs of St. Petersburg  Passenger operations Recent years have seen a significant growth in passenger traffic. Petersburg” official website Transport and logistics complex of St.5%. 2010 4% 4% 5% 33% 8% 11% 28% 9% Containers Oil products Mineral fertilizers Ferrous metals Refrigerated cargoes Coal. Petersburg Doing business in St. which allows foreign tourists travelling by ferry to be present on the territory of the Russian Federation visa free for 72 hours.7.2. coke General cargoes Other Source: Transport and logistics complex of St. The number of cruise passengers has increased by 38.

Petersburg | www. Kola (St.Moscow).5 million tons of cargo. Petersburg in 2010. storage and distribution facilities on the territory of St. Petersburg and the surrounding Leningrad region have the highest density of roads with a road network covering approximately 1.21  Cargo operations The year 2010 marked a gradual revival of the physical volume of cargo turnover since the crisis.2. Railroad network which is one of the most efficient and dynamic forms of transport in the region is also connected to the Large Port of St. Module A Regional Center – St. 21 million tons of cargo was transported in connection with the Large Port of St. Petersburg. Petersburg.9 thousand square meters of storage space was constructed. Petersburg Transport and logistics complex of St. including St.300 km. 506 legal and physical entities possess certificates authorizing passenger operations. Petersburg 21 Transport and logistics complex of St. Petersburg in 2010. Petersburg – Pskov. terminal. Scandinavia (St.Ivangorod . Union of Industrialists and Entrepreneurs of St. 2010 Motor park of trucks.7 million tons in 2010. Union of Industrialists and Entrepreneurs of St. thousand units 72.7. Petersburg is a major priority in the development of transport and logistics complex of the city.500 buses.6.7. Union of Industrialists and Entrepreneurs of St. Petersburg . Petersburg has a well-developed road network with major highways and national roads. connecting Northwest Russia with the rest of Russia as well as Nordic and Baltic countries. Petersburg . Petersburg  Passenger operations As of 2010. St. In 2010 the total of 66. St. Inner city passenger operations constituted 430 million people in 2010. Terminal and Storage Facilities Development of logistics. Petersburg and other port complexes in the region. Petersburg in 2010. Narva (St. Petersburg Enterprise Europe Network . which is 23 million tons more than in the previous year.52 million square meters of A and B class facilities.22 19 Transport and logistics complex of St. The volume of operations carried out within the city is significantly higher due to the large number of carriers from other regions operating in the city. including 80% by non-general purpose transport. Petersburg – Vologda and St.2. Petersburg and other regions of the Russian Federation as well as 32 regular international routes operate in St. Petersburg in 2010.19 Structure of motor park of trucks registered in St. Petersburg in 2010. Petersburg transported 12.State border with Estonia) as well as other routes. Petersburg 20 50 Doing business in St.20 2.State border with Finland). Petersburg – Murmansk).4 Physical entities Source: Transport and logistics complex of St. 121 regular routes between St.New Ladoga. Union of Industrialists and Entrepreneurs of St. Petersburg . Their motor car park constitutes more than 7.6 Legal entities 56.doingbusiness. Cargo turnover of terminal and storage facilities constituted 105. The major highways connect the following routes in Russia (St.  Cargo operations In 2010 large and medium-sized organizations registered in St.4 million square meters.Russia.Vyborg .ru . Road Transport St.2.5. including 1. Petersburg . In 2010 the total area of terminal and storage infrastructure constituted 6. Union of Industrialists and Entrepreneurs of St. Petersburg 22 Transport and logistics complex of St. Petersburg.

72 58.3. Petersburg as well as behind its limits in established zones of responsibility of the Russian Federation.Russia. It is the largest port in the North-Western Russia located on the islands of Neva Delta. ship-repair and other yards. Petersburg includes moorings of sea trading. and more than 32% of passenger traffic. Union of Industrialists and Entrepreneurs of St. Administration of Sea Port The Large Port of St.ru 51 .52 B. The Large Port of St. shipping and ship repair services and incorporates 6 subsidiaries. established in 1992.95 billion passengers and 1. fish and river ports. Petersburg Enterprise Europe Network . The North Western Shipping Company is a successor of the North-Western River Shipping Company established in 1923. a passenger port and shipbuilding and ship repairing yards. including pipelines.doingbusiness. million tons.Cargo turnover of terminal and storage facilities. Petersburg | www.05 Source: Transport and logistics complex of St. including a shipping company ”North-Western Fleet”. Petersburg is a state enterprise which provides the organization of trading navigation in the sea port of St. a sea passenger station. Doing business in St. in the Neva Bay in the eastern part of the Gulf of Finland of the Baltic Sea. Water Transport Rail Transport Russian Railways (RZhD) The Russian Railways is a government-owned national rail carrier headquartered in Moscow. Petersburg. Companies North Western Shipping Company The company was established 88 years ago and is one of the largest water transport companies present at the Russian market. and also moorings of Kronstadt. Sea Transport Large Port of St. shipbuilding. Petersburg in 2010.4 15. 2010 Logistics terminals A and B+ class storage facilities 4. The company.7. Petersburg 2. The company has the world’s second largest network with over 86 thousand kilometers of common carrier routes as well as a few hundred kilometers of industrial routes.2 billion tons of cargo across 11 time zones. Gorskaya. is responsible for more than 42% of total Russia’s cargo traffic. Lomonosov. Today. the company provides a variety of cargo and passenger operations. Every year the Russian Railways transports more than 0. a river passenger port. Bronka. Module A Regional Center – St. C and D class storage facilities Port terminals 27. wood. an oil terminal.

The project is implemented within the framework of a public-private partnership between the City of St. It operates 5 bus parks and carries out regular urban. Petersburg Enterprise Europe Network . 8 suburban and 32 intercity routes. improvement of transportation fleet and facilities efficiency. Since the start of its operations.ru . a trolleybus yard and motor transport base and other subsidiary services. Petersburg branch The federal state unitary enterprise Rosmorport aims to contribute to the development of sea transport infrastructure as well as higher competitiveness of Russian seaports. intercity and international passenger bus operations along 11 urban. The enterprise includes 5 tram parks. facilitating sustainable functioning of city electric transport operations. the Marine Facade has become an important feature of the cruise and ferry industry.doingbusiness. development of route network. Petersburg and the seaport of Primorsk as well as implementation of federal target programs of marine transport development. a combined tram and trolleybus park. Petersburg and Marine Façade Company. St. Petersburg.000 companies from Russia. suburban.Russia. Group of companies Sea Port of St Petersburg is the largest group of stevedoring companies in St. The share of the group in the total turnover of the Large Port of St.Marine Facade The Marine Facade is a project of additional expansion of St. it provides a full range of stevedoring services to more than 2. Petersburg. Petersburg on Vasilievsky island at the Neva River’s mouth with the view of creating a new sea passenger port. Sea Port of St. St. Petersburg branch is engaged in maintenance. Rosmorport. Today. Passenger Port of St. Petersburg | www. CIS and foreign countries accepting all types of cargoes. Road transport Gorelektrotrans Gorelektrotrans is a state enterprise engaged in the organization of passenger operations by electric transport. Module A Regional Center – St. Petersburg constitutes approximately 17 %. In 2010 the companies of the group handled over 12. 3 trolleybus parks. including heavylifts and out-of-gauge cargoes. thus turning St. Petersburg in May 2011.1 million tons of cargoes. 52 Doing business in St. providing services in the Large Port of St. Petersburg port and Northwestern Russia. The Russia’s first and only passenger port was constructed and officially transferred into the ownership of St. operations and development of federal property assigned to the branch. Petersburg state enterprise of passenger motor transport and is one of the largest passenger bus carriers in the Northwestern region of Russia. Passazhiravtotrans Passazhiravtotrans is a St. Petersburg into one of the most attractive centers for international tourism.

Doing business in St. bridges and other road facilities. modernization of the domestic passenger terminal. two terminals. the company changed its form of ownership and was transformed into Rossiya Airlines in 2006. Today.4.7. Today.Russia. It aims to increase freight traffic and passenger traffic within the St. including roads. Founded initially as a small transport company. Government of St. Petersburg. Rossiya Airlines is headquartered in St. The company’s bus fleet includes over 2. maximize the city role as an international transport and transit center. Petersburg | www. Petersburg The Committee is engaged in implementing the state policy and managing the development of road and bridge complex and transport infrastructure of St. Infrastructure of the airport includes airfield with two runways. airfields. Government of St.Piteravto Piteravto was founded in 1993 to provide a full range of transportation services to passengers. Russian Airlines Rossiya Airlines is one of the biggest Russian airlines and the leading air carrier in the Northwestern region of the Russian Federation. Rossiya. reconstruction of technical airport facilities as well as development of commercial infrastructure. Government Institutions Committee for St. it gradually grew into the group of companies. 2. the fleet of Rossiya Airlines includes 29 modern liners. the holding includes a managing company. The priority of consortium lies in reconstruction of the airport building and new international passenger terminal. Since April 2010 the operation of the Pulkovo airport is managed by the Northern Capital Gateway in the framework of public-private partnership agreement. Petersburg Transport Infrastructure Development. Petersburg. Formerly known as Pulkovo Airlines. a central transport company with three divisions and three regional transport companies. Air Transport Pulkovo Airport Pulkovo Airport is one of the fastest developing air transport hubs in Russia. hydraulic facilities. Module A Regional Center – St. Petersburg Enterprise Europe Network . fuel-supply complex. increase volume of transport services in export-import operations and improve environment for state and private investments directed towards transport infrastructure development. tunnels. The airport handled more than 9.2 thousand buses of different varieties with over 3 thousand drivers employed. The company is a full member of IATA and is a registered member of the Multilateral Interline Traffic Agreements (MITA).1.4.doingbusiness.ru  53 . elevated road. Petersburg Committee on Transport and Transit Policy is a governmental agency which supervises the development of transport complex in St. airports and other aviation infrastructure and capital development facilities. cargo terminal. parking complex and other infrastructure objects. Committee on Transport and Transit Policy.  Supporting institutions 2.7. Petersburg transport complex. Rossiya works with over 100 Russian and foreign partners which enables the company to take passengers nearly anywhere in the world. Petersburg and operates up to 40% of its flights from Pulkovo Airport.5 million passengers in 2011 which represents a 14% increase in comparison with 2010.

material and technical support as well as other measures aimed at reducing adverse environmental consequences of water transport.ru .Russia. Petersburg Established in 2006. Petersburg in the sphere of urban and suburban transport as well as intercity passenger motor transport. organization of road traffic and coordination of activities of other executive bodies functioning in this area. Petersburg and Leningrad region and abolishing infrastructural restrictions in adjacent territories of the specified subjects of the Russian Federation. Petersburg. Government of St. Marine Board under the Government of St. External Transport Agency St. executive bodies of the Government of St. the Board is an advisory body under the Government of St. Module A Regional Center – St. Petersburg Marine Board under the Government of St. companies and organizations in the field of maritime activities. Petersburg The Transportation Committee is an executive body of state authority tasked with implementing the governmental policy of St. organization of public transportation services by water and air transport. Petersburg State Institution External Transport Agency is a subdivision of the Committee on Transport and Transit Policy tasked with the development and implementation for cargo traffic management measures aimed at improvement of road safety and road capacity.-Petersburg and Leningrad region is an important mechanism established with the view of facilitating coordinated development of transport infrastructure of St. 54 Doing business in St. detention of vehicles subject to state registration. Transport Board under the Government of St.-Petersburg and Leningrad region under the direction of the Minister of transport of the Russian Federation The Coordination council on the development of transport system of St. Petersburg Enterprise Europe Network . Petersburg which is tasked with providing proposals and recommendations for the Governor of St. Petersburg | www. Petersburg and the Government of St. Transportation Committee.doingbusiness. Petersburg was established 2004 with the aim of providing concerted actions by the federal executive bodies.     Coordination council on the development of transport system of St. Petersburg on the issues related to state policy in transport and logistics sphere.

Petersburg an ideal location for Russian headquarters of any international business. Petersburg is an ideal location for the following business needs:  Headquarters Favorable economic and geographical position.ru 55 . Module A Regional Center – St. Petersburg | www. efficient and motived workforce as well as developed infrastructure make St.  Distribution center St. Doing business in St. which possesses all necessary innovative infrastructure and extensive government support to accommodate your R&D activities.Russia.  Production center One of Russia’s most important production centers provides you with developed logistics. Petersburg is an acknowledged scientific and educational center as well as a Russian leader in information technology. innovative and flexible business environment as well as highly efficient and motivated workforce to accommodate your production facilities in the city. Business solutions St. highly educated.  Research & Development center (R&D) St.3.  Test market St. Petersburg Enterprise Europe Network . Petersburg is an ideal test market in the European part of Russia.doingbusiness. Petersburg’s westernmost mainland location in Russia and well-developed transport infrastructure makes it an ideal location for your Russian and European distribution center. which will allow you to assess the demand for your new products and improve your technology and business models.

1. Petersburg is the world’s northernmost city with over one million population. efficient and motived workforce Flexible and highly educated labor market provides excellent conditions for establishing your headquarters in St. A close proximity to Europe.  Developed infrastructure St.3. the ongoing development of a major strategic investment transportation project will determine further development of the city as a major world transport hub.  Highly educated. including the Large Port.Russia. Petersburg among the most attractive regions of the Russian Federation for trade and investment (1A) characterized by high investment potential given minimum risks. By 2013 the totally new Pulkovo Airport will provide fast and efficient connections to major destinations around the world. It is a major European cultural center and an important Russian port on the Baltic Sea. Petersburg is the fourth most populated city in Europe with more than 40% of residents having higher education degrees. residents of the city possess foreign language skills which makes them an ideal workforce for any headquarter located in the city.1. Expert RA Rating Agency Doing business in St. shipbuilding and instrument engineering. thus conveniently suiting the business needs of your headquarter. food and printing industries. Moreover. chemical industry as well as consumer goods. The city boasts a highly developed iron steel and nonferrous metal industry. Module A Regional Center – St. Russian rating agency Expert ranked St. to the national road network. machine tool technology. It is the largest westernmost city of the Russian Federation conveniently located along the shores of the Neva Bay of the Gulf of Finland. Petersburg transport hub. St. Petersburg. developed infrastructure and favorable investment climate make St. Petersburg Enterprise Europe Network .1. Petersburg is also ranked as the most business-friendly city in the Russian Federation (A+) characterized by favorable business climate and excellent conditions for pursuing business in the city.doingbusiness. 23 Investment rating of Russian regions 2010-2011. Petersburg the major link between the Baltic Sea and the rest of Russia through the Volga-Baltic Waterway.23 3. The Western HighSpeed Diameter (WHSD) envisages construction of a motorway which will link passenger and freight transport along the busiest traffic lines and St. St. banks and other businesses. Headquarters St. thus making St. Petersburg an attractive location for Russian headquarters of numerous international corporations. Petersburg has a well-developed infrastructure which connects European part of Russia with the Nordic and Baltic regions. A complex system of river ports is interconnected with the system of seaports. Petersburg is a major trade gateway as well as a financial and industrial center of the Russian Federation specialized in power plant engineering.ru 56 . Petersburg is the second largest city in the Russian Federation. St. Petersburg | www. Destined by the European location and close proximity to the European markets. Advantages  Favorable economic and geographical position St.

X5 Retail Group The largest retail chain in Russia announced its plans to relocate to St. Petersburg in 2007. Transaero The first private company and one of the largest airline companies in Russia operating since 1991 registered to St. located or announced their plans to relocate headquarters to St. Cases The following national and international companies have already registered. Petersburg in 2006. Transneft Russian state-owned company which transports about 93% of all oil produced in Russia and owns the largest oil pipeline system in the world. Petersburg. Petersburg in 2007. has a fully operational head office in St. Petersburg: Gazprom Neft One of the largest oil producing and refining companies in Russia. Sovcomflot Russian state-owned maritime shipping company specialized in petroleum and LNG shipping relocated its headquarters to St.2. Russian Standard One of the leading banking and alcohol beverage groups which holds the stock of Russian Standard Company. Petersburg since December 2011. Petersburg in 2006.1.3. Doing business in St.ru 57 . a backbone financial institution with over 85% of the lender’s securities held by the state. VTB Bank moved its headquartered to St. Module A Regional Center – St. Petersburg in 2005.Russia. which is an oil arm of Gazprom. Petersburg | www. Rostelecom Russia’s national telecommunications operator with the largest domestic backbone network has its de jure headquarters in St. as well as Russian Standard Bank.doingbusiness. VTB Bank VTB Bank is one of the largest banks in Russia. announced its plans to register to St. announced its plans to register to St. a producer and distributor of Russian Standard Vodka. Petersburg Enterprise Europe Network . Petersburg in 2005.

St. Petersburg Enterprise Europe Network . Petersburg Policy Fund. The majority of Russian R&D centers and facilities of international companies are based in St. The city is home to 252 scientific institutes and organizations with more than 170 thousand scientific workers employed. customs and other type of concessions to the companies engaged in the development of high-tech solutions.24 3. Petersburg as a Russian leader in information technology.doingbusiness. Petersburg since 2010. Petersburg State Electrotechnical University (ETU) which along with the National Research Nuclear University functions as the coordinator of educational activities within the National Nanotechnology Network. including St. Petersburg was included in the list of the most innovative regions of the Russian Federation. including 49 centers of leading international and Russian ICT companies.  Extensive government support The Government of St. a flagship event which serves a major platform for economic talks between Russian and CIS leaders as well as the world’s business elite. Simplified customs regime facilitates the development of export/import activities. The zone focuses on rendering tax. Research & Development Due to its unique scientific and educational base. Petersburg is home to more than 100 higher education institutions. modern research and scientific institutions. shipbuilding.ru . thus creating favorable conditions for promoting foreign economic activities.3. The government views the development of the following industrial clusters as a priority in sustaining innovative climate in the city: automotive industry. Petersburg. RBC daily 25 For more information.2. Petersburg plays a major role in the development of nanotechnology industries in Russia.8 Special economic zones (“SEZ”) in St.2. Advantages  Largest scientific and educational center St. Petersburg. business incubator. information and communication technologies. thus making it an ideal location for your R&D activities. Availability of developed IT infrastructure. The city adopted a complex program aimed at developing and supporting a modern competitive regional innovation system. 24 Rating of innovation activity in the Russian Federation in 2011. As a result of innovation activity in 2011 St. Petersburg International Economic Forum (SPIEF). Petersburg.  Innovative special economic zone A special economic zone of technical-implementation type has been functioning in St. St. Petersburg 58 Doing business in St. please see Section 4. Russian Presidential Academy of National Economy and Public Administration. 8% of all Russian students and 15% of all Russian post graduate students pursue their studies in St. including a technopark. Module A Regional Center – St. radiology and power plant engineering. Petersburg | www. pharma and biotechnology. Petersburg applies systematic approach to the development of innovation and technology. Petersburg is a leading scientific and educational center of the Russian Federation which possesses 10% of all intellectual potential of the country. every year the city hosts the St.25  A leader in information technology 60% of all Russian IT companies are based in St.1. St.Russia. as well as highly qualified IT-personnel facilitate the development of St. In addition.

Today. Petersburg since 2005. Petersburg: Alcatel-Lucent Alcatel has been operating its R&D center in St. Petersburg’s center currently employs more than 170 program engineers specialized in data management and data storage systems. Doing business in St. mobile and enterprise networks. EMC Opened in 2007. AstraZeneca AstraZeneca is planning to establish a Predictive Science Center in St. Russia is only the second country outside the US in which Google has two R&D centers. St.Russia.ru 59 . St. products and technological processes. Petersburg division focuses on the development of security software and its adaptation to the needs of Russian users. Cases The following national and international companies have already located their R&D facilities in St. Module A Regional Center – St. The center will employ around 30 specialists who will work in close collaboration with local companies and organizations as part of a related agreement with the St. EMC R&D center in St. Petersburg | www. Petersburg within 2012. Petersburg is an important part of the global EMC R&D investment program. It is the company’s first Predictive Science Center in Russia which will focus on the development of bioinformatics.3. including Moscow and St.2. software and systems to better predict the safety and efficacy of potential new medicines. Petersburg Enterprise Europe Network . Google Google opened its second R&D center in Russia in 2006. and employs 150 specialists trained at the specialist Alcatel R&D centers in Europe and the US. Its main objective lies in the development and integration of innovative telecommunications software systems and adaptation of existing Alcatel products to the specific requirements of the regional market. It employs around 10 software engineers engaged in the development of Chrome Developer Tools as well as improvement of V8 virtual machine. Petersburg and is specializing on mathematic and computer modelling of materials. data analysis methods. Petersburg government.2. The center covers three fields of applications. The center focuses on rendering support and continuous development of a wide range of world’s leading software products. Petersburg.doingbusiness. Corning Corning scientific center was founded in 1996 in St. including fixed.

The Lab plays a key role in the development of innovative high tech solutions for LG Electronics. Microsoft has already been working and launching a number of educational programs in St. CRMdecisions. Petersburg. including webportals.doingbusiness. Petersburg as well as the company’s participation in the development of St. Microsoft In June 17. The center which is to employ 120 specialists will specialize in the development and testing of convergent billing decisions. Module A Regional Center – St. Petersburg in 2004. Petersburg Enterprise Europe Network . Petersburg in 2007.000 dollars. 2011 the Government of St. opened in St. In the future the center plans to carry out research in the field of self-service systems. LG MC Russia R&D Lab LG MC Russia R&D Lab (LGERP). Petersburg in June 2011. Intel Opened in St. HP Labs Russia focus on information management and development of new technologies linked to the explosion of information access brought about by the World Wide Web.Russia. including mobile communications. Petersburg in 1997. grid computing to optimize programming environment. terminals. 60 Doing business in St. pad-computers and communicator applications. The new agreement involves the establishment of Microsoft Information Center within Ingria Technopark located in St. 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 HP's current strategies. The center focuses on conducting research and development of innovative software solutions for Internet-related technologies. LG MC Russia R&D Lab focuses on three major directions. Petersburg and Microsoft signed the cooperation agreement stipulating the development of education and training system for IT specialists and introduction of modern technologies into the public management system. and the third new research lab created by the company in the last five years. Petersburg IT cluster. Sitronics Sitroninics opened its 5th international R&D center in St. communication technologies that enhance wireless communication. digital television and household appliances. Opened in St. including Dynamic Runtime Layer (DRL).ru . is a central LG division in CIS. St.HP Labs HP Labs Russia is the newest member of the international HP Labs community. including highly-productive rating systems for tariffs in real-time mode. Investment into the R&D center operating in telecommunications sector constituted 177. Intel R&D center currently employs more than 100 specialists. Petersburg | www. Petersburg center works in close collaboration with the city universities with the aim of creating a solid academic foundation for information.

 Acknowledged R&D center and test market St. specializing in the production of complex machinery and equipment. St. Excellent framework conditions. Kolpino. instrument manufacture as well as production of electrical generators and turbines. railway. river and sea transport. Module A Regional Center – St. Advantages  Highly qualified and motivated workforce St. which already hosts the production facilities of the world’s largest automakers and automobile parts manufacturers.3. technology implementations and business models. which significantly enhances the value of your production processes as well as end product. The city is home to a number of leading technical universities.3. air. The city’s transport infrastructure with highly developed motor transport network. Petersburg | www. Toyota Motor Corporation. 3. machine tools and machines for printing. Doing business in St.3. including Russia’s main port of foreign trade and sea gate to Europe. Moreover. might serve as a key asset in your decision to locate your production center in the city. Petersburg Enterprise Europe Network . open and fast-adopting market as well as high purchasing power of the population will help you assess the demand and improve your new products as well as research and development efforts. which possesses 10% of all intellectual potential of the country.ru 61 . The fact that 20% of all Russia’s advanced technologies are created in St. Petersburg is Russia’s foremost logistics hub. including St.  Developed logistics Due to the ideal geographical location and scarcity of Russian ports on the Baltic Sea. the city has a number of modern multifunctional logistics complexes and parks (Pulkovo. which can be easily scaled up and down. including Hyundai Motor Company. Petersburg State Electrotechnical University (ETU) which along with the National Research Nuclear University functions as the coordinator of educational activities within the National Nanotechnology Network. Petersburg turned into the Russia’s automobile manufacturing center. During the recent years St. food. Petersburg is Russia’s second most important production center. St. Nissan Motor Company and Scania. processing and customs clearance needs of your business. Petersburg boasts a diverse pool of technical specialists given the city’s reputation as a Russian IT center. paper. automotive and leather industries. General Motors Company.doingbusiness. Production сenter Today. Petersburg indicates a high degree of production process development and automatization. Petersburg is a major scientific and educational center of the Russian Federation. St. Leading industries in this sector include shipbuilding. Petersburg is one of the most innovative regions in Russia and an acknowledged R&D center and test market on the territory of the Russian Federation.  Innovative and flexible business environment The city’s innovative business environment provides production companies with access to a diverse pool of talented specialists who can help you innovate and improve your production processes.Russia. Yanino) suitably located to address storing.1. textile. In addition. the flexibility of existing labor market provides an ideal environment for flexible production.

3.3.2.

Cases

The following international and leading Russian companies have already located their production facilities in St. Petersburg: Bakery Fazer Group Fazer Group started operating on the food catering and services market in Russia in 2006, and has invested 204.78 million dollars in its operations in Russia during the last ten years. Beverage production Carlsberg Group Baltic Beverages Holding, a leader at the Russian beer market which manages Baltika, became 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 opened its plant in St. Petersburg in 1995. The facility 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, Inc. (PBG) 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, and sports and energy drinks. 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.

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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. Car assembly 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. Scania Scania opened its industrial facility for assembling and bodyworking trucks for the Russian market in St. Petersburg in 2010. This facility is Scania’s sixth delivery center. From this new delivery center, Scania supplies complete trucks that are adapted to the requirements and operating conditions that apply in Russia. St. Petersburg’s facility which employs about 70 employees has a technical assembly capacity of about 5,000 truck chassis and 1,500 superstructures per year. 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.

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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. 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 Hyundaidedicated 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. Electronics HP – Foxconn Hewlett-Packard and component maker Foxconn opened a pilot assembly line to make computers in St. Petersburg in 2010. A pilot production line on a rented 10,000-square-meter facility in Shushary produces HP, HP Pro and Compaq models. It currently employs 100 workers, although the staff is expected to grow as production increases. A 32,000-square-meter main facility is expected to cost 50 million dollars and have an annual capacity of 500,000 personal computers. Elevators 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. FMCG P&G P&G opened its Gillette razor manufacturing plant in St. Petersburg in 2000 with an investment of 40 million dollars and 500 people employed. It has soon become one of the major razor manufacturing plants in the world with a capacity of 860 million blades a year. In 2004 the facility was expanded with an investment of 502 million roubles and several Gillette factories’ productions moved to St. Petersburg.

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In 2010 the company launched a new line of washing machines and a second line of refrigerators at its existing plant in Strelna. which is due to be built by 2012. The first line with the capacity of 30 million LEDs per month was launched in fall 2010. by integrating its technical strengths in IT and networks. as well as a production facility at Kolpino. OptoGaN has already invested over 9. and by providing advanced semiconductor solutions through NEC Electronics Corporation. Petersburg in 2007. In 2009. The Strelna factory currently employs 420 people and is to create 100 additional workplaces with the expansion of the production line. personal care and tea products. NEC delivers tailored solutions in the key fields of computer. mayonnaise and tomato paste business. Petersburg Enterprise Europe Network . Petersburg’s plant manufactures Bosch and Siemens cooling appliances.ru 65 .000 machines per year. a public switching system manufacturing facility.Russia. Home 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.5 million euros in new production lines. the company acquired the sauces business of Baltimor Holding. It has also announced about the expansion of its logistics center. Petersburg. Petersburg in 2010.Unilever Unilever has been operating in Russia since 1992 and has 7 manufacturing and production sites. Petersburg. Elcoteq started the production of electronic devices and telecom equipment in St. St. in 1997. LED manufacturing OptoGan Group A vertically integrated European LED & luminaire manufacturer acquired the Russian subsidiary of Elcoteq together with its industrial facility and infrastructure in St. The plant was opened in 1994 and currently focuses on the production of home care. In 2007 the company laid the foundations for a washing machine factory with the capacity of 300. Petersburg | www. accounting for annual turnover of around 70 million euros. networking and electron devices. Doing business in St. Petersburg in 2006.doingbusiness. Module A Regional Center – St. a leading ketchup business in Russia. near St. broadband network and enterprise business solutions established NEC Neva Communications System. including the one located in St. IT NEC Corporation One of the world's leading providers of Internet. The acquisition included ketchup. It was the first high-tech alliance between a Japanese and Russian company.

Petersburg in 2006. as part of 500 million dollar five-year investment into the Russian healthcare infrastructure. With the original investment of 40 million euros. Telecommunication Alcatel-Lucent Alcatel has been operating its R&D center in St.Russia. mobile and enterprise networks. Pipe products Severstal One of the Russia’s largest steel and mining industry companies opened its Izhora Pipe Mill at Kolpino outside St. Petersburg in 2005. Petersburg Enterprise Europe Network . and employs 150 specialists trained at the specialist Alcatel R&D centers in Europe and the US. The plant produces unique products for Russian domestic pipe industry which allow to expedite the process of pipeline construction as well as lower the costs and enhance reliability.5 billion units of both innovative pharmaceuticals and generics per year. and adaptation of existing Alcatel products to the specific requirements of the regional market. Pharmaceuticals Novartis In 2010 Novartis started a construction of a new greenfield pharmaceutical manufacturing plant in St. including fixed. Petersburg plant’s production capacity to 40 billion cigarettes a year. Petersburg city center. the plant’s current capacity constitutes 3 billion units per year. The facility will be constructed in the Novoorlovskaya Special Economic Zone (SEZ) located to the north of the St. The plant with the capacity of 600 thousand tons per year specializes in manufacture of large diameter pipes from strip made by Cherepovets Steel Mill. Petersburg in 2007 with the total investment of 110 million dollars. Tobacco British American Tobacco (BAT) BAT’s plant in St. Petersburg since 2005. Petersburg. The company completed the construction of new production facilities at its plant in St. Once completed and approved for commercial production. Module A Regional Center – St. The center covers three fields of applications. thus increasing St.doingbusiness. Its main objective lies in the development and integration of innovative telecommunications software systems. Petersburg operates 13 production lines producing five premium brands. the facility will produce approximately 1. It provides about 25% of BAT’s production volume in Russia. Petersburg | www. 66 Doing business in St. which is expected in 2014. a tobacco packaging plant started operating under Amcor Tobacco Packaging brand after Amcor acquired Alcan Packaging from Rio Tinto in 2010.Packaging Amcor Tobacco Packaging Originally built by Alcan Packaging in the Krasnoselskaya industrial zone of St.ru .

Russia. The plant. The total investment of 335 million dollars made this project the company’s largest cigarette plant in Europe.doingbusiness. Philip Morris International (PMI) Philip Morris Inc. both international and local. Chesterfield and Bond Street brands. produces the Marlboro. Parliament.ru 67 . Petersburg Enterprise Europe Network . Petersburg | www. Virginia Slims. L&M. Petersburg in 2000. which employs 750 workers and operates 15 conveyer belts. officially opened its third Russian cigarette factory in St.Japan Tobacco International (JTI) JTI's cigarette making facility in St Petersburg is the company’s biggest worldwide plant with the total of 400 million dollars invested. Doing business in St. It supplies the firm's Russian and Ukrainian plants with main tobacco components used for cigarette production. The brand portfolio includes over 30 brand names. In 2002 the company began construction of a new processing line and a warehouse with the total investment estimated at 240 million dollars. Module A Regional Center – St.

4. mainly in St. Petersburg’s westernmost mainland location in Russia as well as well-developed infrastructure and logistics makes it an ideal location for your Russian and European distribution center. which includes the construction of a new passenger terminal and other airport infrastructure improvements. St. The first phase of reconstruction. one of the busiest Russian airports. is scheduled for completion in 2013. Railroad network which is one of the most efficient and dynamic forms of transport in the region is also connected to the Large Port of St. Petersburg your business will be able to directly cover 1.3. Petersburg | www. Petersburg an ideal location for your Russian and European distribution center.610. Advantages Existing transport infrastructure supported by extensive rail and road network. which is a part of the Unified Deep Water System (UDWS) of European Russia.7 million square kilometers of the northern part of European Russia and reach more than 13 million consumers within short-term delivery. Petersburg and the surrounding Leningrad region have the highest density of roads with a road network covering approximately 1. Petersburg. St. Petersburg is served by the Pulkovo International Airport. 26 Pulkovo St. Today’s northwest Russian port infrastructure is concentrated on the eastern end of the Gulf of Finland.1. developed port infrastructure and efficient inland water transportation system make St.26  By land St.300 km. which is the fourth busiest airport in Russia.767 passengers in 2011 which represents a 14% increase in comparison with 2010.4. connecting northwest Russia with the rest of Russia as well as Nordic and Baltic countries. With a distribution center located in St. Petersburg and the Neva River serve a major terminal point for the Volga-Baltic Waterway. 3.doingbusiness. It has the annual cargo handling capacity of 30 thousand tons.Russia. Module A Regional Center – St. Petersburg and other port complexes in the region. Petersburg and northwest Russia. The airport handled 9. Petersburg is an administrative center of the fourth largest federal district in Russia. the Black Sea and onwards to the world oceans.  By sea Sea transport is one of the most important transport modes in St. Petersburg has a well-developed rail and road network with major highways and national roads. providing inland water connection from the Baltic Sea to the Caspian Sea. Pulkovo Cargo Terminal is one of the five leading cargo terminals in Russia and the largest cargo terminal in the Northwest Russia. Petersburg Airport official website Doing business in St. Distribution сenter St. St. Petersburg connected to the Baltic Sea through a channel is Russia’s main port of foreign trade and the country’s main sea gate to Europe. The Large Port of St.ru 68 .  By river Inland water transportation is one of the largest and most unique logistical competitive advantages of St. Pulkovo has been undergoing a major 1 billion euro modernization since 2007.  By air St. Petersburg. Petersburg Enterprise Europe Network .

3.4.2.

Cases

The following international and leading Russian companies have already located their distribution centers in St. Petersburg: LaserPLY American company’s product line includes flat dieboards, rotary dieboards and platforms. The company’s platforms are used in birch core/maple face and back flat dieboards, flat dieboards with a wood and polymer veneer combination, as well as core material for rotary dieboard production. Today, the company operates two international distribution centers, including the one strategically located in St. Petersburg. Lenta One of the Russia’s largest hypermarket chains operating on the market since 1999 opened its 20 thousand square meters distribution center in St. Petersburg in 2007. Total investments into the project constituted 20 million dollars. Distribution warehouse utilizes the latest processing technologies, thus allowing to reduce costs in shelf storage, cross-docking as well as packaging arrangement and dispatching. Onninen The Finnish company provides comprehensive materials’ services, including complex electrical, lighting, heating and plumbing as well as other engineering products and services for contractors, industry, public organizations and technical retailers in nine countries. Onninen officially opened its Russian headquarters and distribution center in St. Petersburg in 2007. The company’s distribution center serves all northwest Russia and has the capacity of 9,000 pallets, including 18,000 products from 200 suppliers. Static Control Components The world's largest manufacturer and global distributor of parts and supplies supporting the laser toner remanufacturing industry is headquartered in Sanford, USA. Static Control operates 20 separate manufacturing plants and operates through the network of global distribution partners. The company’s distribution partner in Russia operates several distribution centers, including the one strategically located in St. Petersburg to ensure fast product delivery all across Russia.

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3.5.

Test market

St. Petersburg’s market is a perfect test market for new products and technologies. It is an ideal test market in the European part of Russia for high-tech companies longing to assess the demand and improve their new products as well as research and development (R&D) efforts, technology implementations and business models.

3.5.1.

Advantages

Excellent framework conditions, open and fast adopting market as well as high purchasing power make St. Petersburg an ideal test market located in the European part of Russia. It will allow you to assess the demand for your new products and improve your technology and business models.  Excellent framework conditions St. Petersburg is conveniently located in the northern part of European Russia, which can be reached from the capital city of Moscow within an hour by plane. It is the second largest city in Russia as well a major European cultural center. Destined by its geopolitical location as well as historical development, St. Petersburg is often described as the most western city of the Russian Federation. It is characterized by homogeneous population, which is highly receptive to new ideas and products.  Open and fast-adopting market St. Petersburg has one of the most advanced information societies in Russia with the most innovative, motivated and critical consumers. Given St. Petersburg’s open, receptive and fastadopting market, the decision to test your business models, technologies or products in St. Petersburg will allow you to effectively improve and adjust your solutions before entering allRussian or European markets.  High purchasing power Given the existing variations in population’s income and buying power across different regions of the Russian Federation, the most well-to-do population is concentrated in Moscow, St. Petersburg and large regional centers. St. Petersburg’s population is characterized by high income and purchasing power, thus facilitating the growth of demand for high quality and innovative products, technologies and solutions.

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Doing business in St. Petersburg Enterprise Europe Network - Russia, Module A Regional Center – St. Petersburg | www.doingbusiness.ru

3.5.2.

Cases

The following international companies chose St. Petersburg as a test market for their products as well as technology and information sharing: AstraZeneca AstraZeneca is planning to establish a Predictive Science Center in St. Petersburg within 2012. It is the company’s first Predictive Science Center in Russia, which will focus on the development of bioinformatics, data analysis methods, software and systems to better predict the safety and efficacy of potential new medicines. The center will employ around 30 specialists who will work in close collaboration with local companies and organizations as part of a related agreement with the St. Petersburg government. Google Google opened its second R&D center in Russian in 2006. Today, Russia is only the second country outside the US in which Google has two R&D centers, including Moscow and St. Petersburg. St. Petersburg division focuses on the development of security software and its adaptation to the needs of Russian users. It employs around 10 software engineers engaged in the development of Chrome Developer Tools as well as improvement of V8 virtual machine. Microsoft On June 17, 2011 the Government of St. Petersburg and Microsoft signed the cooperation agreement stipulating the development of education and training system for IT specialists and introduction of modern technologies into the public management system. Microsoft has already been working and launching a number of educational programs in St. Petersburg. The new agreement involves the establishment of Microsoft Information Center within Ingria Technopark located in St. Petersburg as well as the company’s participation in the development of St. Petersburg’s IT cluster.

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compared to a Russian registered legal entity are as follows:     it has fewer administrative. Instead.4.ru . Therefore. the founding foreign legal entity will bear full liability for the actions and obligations of the representative office or branch. undertake commercial activity. Establishing a representative office and/or a branch of a foreign legal entity A representative office is an officially recognized extension of a foreign legal entity. 72 Doing business in St.RF). any foreign investor should give careful consideration as to which type of corporate form will best fit its investment goals. Doing business 4. In Russia. This may inter alia include the employment of a sales force and conduct of sales activity. who acts on the basis of a power of attorney that is granted by an officer of the founding foreign legal entity. if a foreign legal entity engages in regular commercial activity (such as selling goods or providing services) through a representative office). whilst at the same time meeting all the legal requirements.Civil Code). The advantages of operating through a representative office.doingbusiness. A branch is a subdivision of a foreign legal entity.1. representative offices are officially not allowed to undertake commercial activity under the Civil Code of the Russian Federation (hereinafter . in theory. According to the effective legislation of the Russian Federation (hereinafter . Petersburg | www. Module A Regional Center – St. The representative office or branch must have a manager or head of the office/branch. foreign employees may obtain personal accreditation.1.Russia. and Russian enterprises. and it is possible to benefit from a relevant double tax treaty (if applicable). which may undertake commercial activity and fulfill all or part of the functions of its founding foreign legal entity. which they represent. or establish a Russian registered legal entity. Since a representative office or branch does not have a separate legal identity. a foreign investor may either establish a representative office or branch of a foreign legal entity. Petersburg Enterprise Europe Network . tax and accounting obligations. it will not be subject to profits tax. customs and currency control. it is considered to be a non-resident for currency control purposes. and to gather information about the Russian market. which represents that foreign legal entity’s interests in Russia. unless its activities give rise to a "permanent establishment" for tax purposes (for example. Establishing a legal presence Information for the current chapter was developed and kindly provided by DLA Piper Establishing a legal presence in Russia and choosing the appropriate corporate form to register is one of the most important stages before undertaking business activity in Russia. which confers some practical benefits. Given that a representative office does not. their main purpose is generally to promote commercial relations between the foreign legal entity. The corporate form chosen will influence all activities.1. 4. including financial and tax reporting.

participants or shareholders may however be held liable for the obligations of an LLC or JSC if they had the right to give mandatory instructions to such companies. what will be the registered (legal) address of the company. Petersburg Enterprise Europe Network . Establishing a Russian legal entity (subsidiary) There is no special legal form of legal entity for foreign investment in Russia. there are work permit and visa requirements for a foreign national. Module A Regional Center – St. Joint stock companies may be either of a closed type (i. the submission of the following documents is necessary for registration purposes:      a standard form application (the signature of the person signing the application has to be notarized). This process takes a few months and cannot begin until Doing business in St. or losses to. the founders. LLCs and JSCs are able to engage in all types of commercial activities not prohibited by the laws of the Russian Federation. if the LLC or JSC has only one founder.1. The founders. The latter (OJSC) are designated mainly for large number of shareholders and generally are intended to be utilized for the public placement of shares.4. All Russian legal entities are subject to state registration and are considered as created from the date of the relevant entry in the Unified State Register of Legal Entities. Open Joint Stock Companies). the latter.e. participants or shareholders of LLCs or JSCs are not liable for the obligations of the companies and bear the risk of losses related to company activities only to the extent of the value of their contributions (share value). 15. Petersburg this is an Interdistrict Inspectorate of the Federal Tax Services of the RF No. Closed Joint Stock Companies) or of an open (public) type (i. Generally. trade register and/or certificate of good standing).g.Russia. The Federal Tax Service of the Russian Federation has authority for the state registration of legal entities and for their registration as tax payers in Russia. decide on the management structure of a new company. and confirmation of payment of the state registration fee. the resolution of the sole founder on the establishment of the company the charter of the LLC or JSC. Certain types of activities may be conducted only upon the receipt of a special permission (license). Generally.doingbusiness. All documents from a foreign legal entity must be notarized and apostilled/legalized in the country of execution and any documents supplied in a language other than Russian must be accompanied by a translation which has notarized certification. an extract from the state register.2. Petersburg | www. The following issues have to be taken into account when preparing for the registration of a legal entity:  Russian corporate law does not have national limits on who can be the general director of a company or the member of the board of directors. the protocol of the founders' meeting or. decide on the bank in which the temporary account for the payment of charter capital shall be opened.e. and caused the insolvency of. LLCs and JSCs are liable for their obligations with all of the assets and property belonging to them. confirmation of the legal status of the founder(s) (e. determine the amount of charter capital and how the shares will be split between the founders. In St. In the process of preparation to the registration of a legal entity the founders shall decide upon:      what will be the name of a new company.ru 73 . That said. Typically subsidiaries of foreign companies are established in Russia either in the form of a Limited Liability Company ("LLC") or in the form of a Joint Stock Company ("JSC"). though.

etc.Russia.). In this context. to contribute to the charter capital. the funds allocate registration numbers and issue registration certificates. in order to prevent deadlocks the quantity of the board of directors should be odd. 74 Doing business in St. Board of Directors (optional) . Module A Regional Center – St. Currently. In practice. All transactions in connection with the transfer or pledge of participation interests in LLCs have to be notarized.) which are set out in the LLC Law and the company charter. At least 50 per cent of the charter capital must be paid in by the date of the LLC's registration and the balance must be paid in full within the first year of its operation. registration with these funds is performed automatically: the registration body sends the necessary details to the respective funds and. It is not necessary that these shareholders should be independent. the board of directors cannot consist of one person. in practice it is advisable to visit the non-budgetary funds and obtain the certificates in person (generally it is done by an accountant of a company. if any).1.g. in case it is decided to have the local employee to take this role on a permanent basis. if it is planned to have a foreign executive in the role of general director. Management structure The typical management structure of an LLC includes either three levels.the highest body of an LLC. the package of documents shall be filed with the registration authorities. to maintain confidentiality.000. it is probably best to appoint a local employee as the initial general director while the work permit and visa applications are processed for the permanent general director.1.matters delegated from the General Participants' Meeting. Petersburg | www. to participate in the management. etc.doingbusiness.ru . The legal entity must also be registered with the Russian non-budgetary funds (Social Insurance. based on this information.e.3. to share distributed profits. Information about the participants and their participation interests is recorded in a list of participants maintained by the LLC and in the Unified State Register of Legal Entities. Executive Body .day-to-day management of the LLC. i. Petersburg Enterprise Europe Network . Moreover. 4. to sell their interest.  the company is already registered. Limited Liability Companies The establishment and operation of LLCs is governed by the Civil Code and the Federal Law On Limited Liability Companies dated 8 February 1998 (as amended) ("LLC Law"). Participants have certain obligations (e. The minimum charter capital is RUB 10.g. Despite the fact that this is not directly provided by the law. The registration certificates thereafter shall be sent to the legal address of the company. It may be the companies of the same group. Participants have certain rights (e. However. as described below. 4. the process of state registration usually takes about 5-10 business days.1. but not more than 50. or two levels when no board of directors is created in the company:    General Participants' Meeting . Upon gathering and preparation of all the documents required for registration. Alternatively. Key features of LLCs:        May be established by one or more persons (the "participants"). the sole founder of a Russian legal entity cannot be a one-shareholder company itself. there will be no need to deal with the work permit or visa at all. Under the Russian law. The charter capital is divided into "participation interests". Medical and Pension). the sole founder as such must consist of at least two shareholders. which are set out in the LLC Law and the company charter.3.

but sometimes this may be in conjunction with a collective executive management board (in Russian "правление".1.ru 75 . or "pravlenye"). Alternatively day-to-day management may be delegated to an external commercial organization (management company) or to an external individual manager. alter the amount of the charter capital. Usually. Petersburg | www. or a part thereof.2. appoint a liquidation commission and approve the liquidation balance sheet of the LLC. An LLC charter may provide for the establishment of a Board of Directors. obtain information concerning the activities of the LLC and have access to its accounting and other documents in accordance with the procedures established by the company charter. 4. withdraw from the LLC by selling its participation interest back to the company (if this right is expressly stipulated in the charter). decisions on major and interested party transactions.3. participate in the distribution of profits. approve the annual financial report and distribution of profits. or to require the company to buy-out their participation interests where such right is set out in the LLC Law. Petersburg Enterprise Europe Network . to:        participate in the management of the LLC in accordance with the procedures established by the LLC Law and the company charter.doingbusiness. The Executive Body is responsible for all matters which do not fall within the competence of the General Participants' Meeting (or the Board of Directors if there is one). Doing business in St. Module A Regional Center – St. or whose actions (or lack thereof) substantially hinder the LLC or make its activity impossible27. in which case the general director becomes the chairman of the management board. define the basic goals and directions of the LLC. the day-to-day management of the LLC is carried out by a general director. to delegate to a commercial organization or to an individual entrepreneur the authority reserved to the LLC's Executive Body and approve the conditions of any agreements with such organizations or persons (this is commonly referred to as appointing an "external" management company or manager). and 27 Available to participants who either individually or collectively hold at least a 10 per cent interest in the LLC's charter capital. and reorganize or liquidate the LLC.The General Participants' Meeting has the right to amend the charter. in both cases on a contractual basis. demand the expulsion of any participant who grossly violates his obligations as a participant. Rights of participants The participants in an LLC have the right. The competence of the Board of Directors should be set out in the charter and can include such issues as the determination of the basic goals and directions of the LLC. amongst other rights granted by the LLC Law and any additional rights set forth in the company charter. An LLC charter may also provide for the establishment of an Auditing Commission (or Internal Auditor). in accordance with the procedure established by the LLC Law and the company charter. approve regulations governing the internal activities of the LLC. The creation of the Auditing Commission is mandatory if the LLC has more than 15 (fifteen) participants. sell or transfer their participation interests in the LLC charter capital.Russia. Generally this comprises the day-to-day management of the LLC. the approval of internal regulations and other issues. the appointment of the executive bodies and early termination of their powers. receive a portion of the assets left after settlement with creditors in the event of the liquidation of the company. the establishment of representative offices and branches. assign supplemental rights and duties to the participants in the LLC.

The founders of the JSC must pay in 50 per cent of the JSC charter capital within three months following its state registration. Doing business in St. unlike shares in a JSC.3. Transactions in connection with the transfer or pledge of participation interest in LLCs have to be notarized. Management structure  General Shareholders' Meeting . which include. At least 50 per cent of the charter capital must be paid by the date of the LLC's registration and the balance must be paid in full within the first year of its operation. if there is only one participant in the LLC) and within the time period specified in the LLC Law. Obligations of participants The LLC participants also have various obligations.3. but are subject to the right of pre-emption of the existing participants on the same terms upon which the participation interests are offered to third parties. Module A Regional Center – St. enter into binding shareholders' agreements in which they are able to agree on the exercise of voting rights. 4. the sales of participatory interests and other matters that may be regulated in such agreements. 4. 4. and to keep confidential all information concerning the activities of the LLC.1. Contributions may be in cash or in kind and certain customs benefits may be available for in-kind contributions made by foreign investors. with the balance payable in full within the first year. no registration with the securities regulator is required.1.ru 76 .1. Charter capital The charter capital of an LLC consists of the nominal value of the participation interests of the participants and should be denominated in Russian Roubles. The charter capital may be increased only after the original charter capital has been paid in full. Participation interests A participation interest in an LLC is not considered a security under current Russian legislation and therefore.3. the Federal Law 'On Joint Stock Companies' dated 26 December 1995 (as amended) ("JSC Law") and the Federal Law 'On the Securities Market' dated 22 April 1996 (as amended).3.4. Joint Stock Companies The establishment and operation of a JSC is governed by the Civil Code. Participation interests may be sold to third parties. the following:   to make contributions to the charter capital as specified in the LLC Law and the foundation agreement (or in the decision on the establishment of the LLC.1.4. Key features of JSCs:   Issues shares to raise capital for its activities. Petersburg | www.5. Information on the participants and their participation interests is recorded in the list of participants maintained by the LLC and in the Unified State Register of Legal Entities.Russia. The Federal Tax Service of the Russian Federation has to be informed of any transfer of the participation interest.almost exclusive competence for all matters set out in the JSC Law.1. 4.000. Petersburg Enterprise Europe Network .doingbusiness. amongst other obligations contained within the LLC Law and any additional rights set forth in the company charter.4.1. 4. The initial charter capital may not be less than RUB 10.

Shareholders are freely entitled to dispose of their shares. but compulsory for OJSCs with 50 or more shareholders) . categories (common or preferred) of shares and classes of preferred shares issued and distributed by the JSC. Doing business in St.1. 4.the authority defined in the charter. the amount of the charter capital.e. Executive Body (general director. . Module A Regional Center – St. 4. Shareholders have pre-emptive rights to acquire shares offered for sale by other shareholders to third parties.4. The initial charter capital at the date of this publication is RUB 10.Russia. The most standard Executive Body is a general director. whose authority is outlined in the JSC Law and cannot be substantially altered. The General Shareholders' Meeting is the highest governing body of the JSC. in proportion to their existing shareholding. legal address and type of JSC (i. the rights of the holders of shares of each category. OJSC or CJSC). in which case the general director becomes the chairman of the management board. Most decisions are made by a simple majority vote."правление" or "pravlenye") .1. Shareholders have pre-emptive rights to acquire newly issued shares that are to be privately placed in proportion to their existing shareholding. sometimes in conjunction with a collective executive management board. Alternatively the General Shareholders' Meeting may (by majority vote) choose to delegate the powers of the Executive Body to an external commercial organization (management company) or to an external individual manager.4. Shareholders have no pre-emptive rights to acquire shares offered by other shareholders for sale to third parties. must include the following information:     the name.000. the quantity. Internal Auditing Commission or an Internal Auditor . the charter.doingbusiness.ru 77 . A JSC's foundation document.oversees the JSC's financial and economic activities.000.for day-to-day management. this decision may be taken only pursuant to a proposal from the Board of Directors if the company has a Board of Directors).   Board of Directors (optional for CJSCs and OJSCs with less than 50 shareholders. members of which must be elected by the shareholders. in both cases on a contractual basis (however. Petersburg Enterprise Europe Network . Two types of JSC OJSCs (open joint stock companies):           May have an unlimited number of shareholders. CJSCs (closed joint stock companies): The number of shareholders may not exceed 50 (a CJSC must be transformed into an OJSC within one year should the number exceed 50). Incorporation of a JSC Individuals or legal entities may be founders of a JSC. Shareholders have pre-emptive rights to acquire newly issued shares that are to be privately placed. Shareholders have pre-emptive rights to acquire newly issued shares that are to be publicly placed in proportion to their existing shareholding. Petersburg | www. although for certain key decisions a super-majority of 75 per cent is required.3. or "pravlenye"). The daily management of the JSC is the responsibility of the Executive Body.2. nominal value. however sometimes this will be in conjunction with a collective executive management board (in Russian "правление". Each common share carries one vote at the General Shareholders' Meeting (except for cases of cumulative voting where provided for in the JSC Law). The initial charter capital at the date of this publication is RUB 100.

Choosing between LLC and JSC Historically. which is obligatory upon the establishment of the JSC.4. which is the Federal Service for the Financial Markets of the Russian Federation. Generally.ru .5. The rules on the incorporation of JSCs are generally similar to those described above in connection to LLCs. The charter may include other provisions. However. This is because the procedure for establishing. operating and transferring participation interests in an LLC were simpler than for a JSC.     the structure and competence of the governing bodies of the JSC and their decision making procedures.doingbusiness.1. Petersburg | www. Module A Regional Center – St. provided that they comply with the applicable Russian legislation.4. which may be a benefit or a hindrance depending on the aims of the foreign investor. on a pro rata basis. including a list of issues requiring either unanimous consent or a resolution adopted by a qualified majority of votes.Russia. Both the shareholders of a JSC and the participants of an LLC can enter into binding shareholders' agreements in which they are able to agree on the exercise of voting rights. bonds and issuer's options. A fractional share grants its owner the same rights that are granted by the whole share of the corresponding category or class. Other aspects of the LLC. sales of shares (participatory interests) and other matters. a constituent entity of the Russian Federation or a municipality of the Russian Federation. the LLC has been the preferred form of legal entity for foreign investors looking for the establishment of a wholly owned subsidiary in Russia. and share purchase agreements and pledge agreements connected with participation interests in LLCs must now be notarized in Russia. and other provisions required by law. are that:  Participants (members) of an LLC who either individually or collectively hold at least a 10 per cent interest in the LLC's charter capital may apply to a court seeking the expulsion of another participant. for example LLCs are now obliged to maintain and update a register of participants. To succeed the participant(s) seeking the expulsion must prove that the other 78 Doing business in St. A fractional share can come into existence when it is not possible to acquire the whole share during the consolidation of shares. when a shareholder exercises its pre-emptive right or in the course of acquiring additional shares. 4. information on the existence of any special right of participation in the management of the company (a "golden share") vested in the Russian Federation. Petersburg Enterprise Europe Network .1. the procedure for preparing and holding the General Shareholders' Meeting. however the total value of the preferred shares must not exceed 25 per cent of its charter capital. the 2009 amendments to the LLC Law have imposed greater administrative regulation of LLCs. The only additional requirement in respect of JSCs is the registration of the issuance of the JSC shares with the Federal Service for the Financial Markets of the Russian Federation. information on branches and representative offices. the issuance of securities must be registered with the competent regulatory body. 4. Shares and other types of securities A JSC can issue securities in the form of shares. A JSC can issue common shares and/or several classes of preferred shares.

participants may withdraw from the LLC by selling their participation interest back to the company. Doing business in St. If this right is expressly stipulated in the charter.Russia.ru 79 . and The LLC Law sets forth a significant number of matters which require a unanimous voting decision of all of the LLC participants.  participant substantially hindered the company's operations or materially breached its obligations. Module A Regional Center – St. Petersburg Enterprise Europe Network . This could be a disadvantage for a joint venture partner with a majority participation in the LLC. Petersburg | www.doingbusiness.

Japan. and ensure national defense and state security.4.Russia. for instance. Direct investments carried out by a foreign investor are construed as:  a foreign investor’s acquisition of no less than 10% of the shares in the charter capital of an already existing or newly established commercial organization in the Russian Federation in the 80 Doing business in St. assistance agreements on the encouragement and mutual protection of capital investments have been concluded with the governments of such states as Switzerland.2. Exceptions to this rule may only be established by a legislative procedure and must provide for compensation for losses. Module A Regional Center – St. Priority investment projects When foreign investors make direct investments or implement priority investment projects they may be granted certain concessions and additional guarantees. USA.2.2. such as. morals. Italy. 4. rights and lawful interests of other persons.1. 57FZ dated April 29. may not be seized.3. Federal Law No. Any restrictions on rights of foreign investors may be imposed only by federal laws and only to the extent necessary to protect the fundamentals of the constitutional regime. in which foreign investors participate. Austria.2. Great Britain.2.doingbusiness. health. 1999 “On Foreign Investments in the Russian Federation” (hereinafter the “Law on Foreign Investments”). The legal structure provided for foreign investors in the Russian Federation is identical to the one provided for Russian organizations. foreign investors are entitled to freely use revenues and profits in the Russian Federation and to transfer the same outside Russia.225-FZ dated December 30. Investors may be granted certain extra guarantees under bilateral international agreements concluded by the Russian Federation. Petersburg | www. Besides.160-FZ dated July 9. In accordance with this law. In particular. there are other documents that are also both directly and indirectly aimed at regulating investment-connected relations. Norway. 1995 “On Production Sharing Agreements”. and Finland.ru . Additionally. Foreign investments Information for the current chapter was developed and kindly provided by BEITEN BURKHARDT 4. the Russian Federation is the legal successor to the former USSR under similar agreements concluded with the governments of Germany. Main provisions Foreign investments in the Russian Federation may be carried out in any form not expressly prohibited by legislation of the Russian Federation. Upon payment of taxes and charges stipulated by the Russian Federation legislation. and Federal Law No. and China. Any property belonging to foreign investors or commercial organizations. 2008 "On Procedure of Making Investments in Economic Entities of Strategic Importance for National Defense and State Security". Foreign investors may transfer their rights and obligations to another party on the basis of an agreement. 4. foreign investors are indemnified against losses inflicted by unlawful actions (or omissions) of state or local authorities or officials of such authorities. which determines and guarantees the fundamental rights of foreign investors. France. Petersburg Enterprise Europe Network . Legislative basis The document regulating foreign investments in the Russian Federation is Federal Law No.

The guarantee of protection from negative changes in the Russian Federation legislation is applied to investors and commercial organizations with foreign investments that implement priority investment projects (regardless of the amount of the share of foreign investments in the charter capital) as well as to commercial organizations with the share of foreign investments in charter capital exceeding 25%. Petersburg | www. The investment project is included in the list of priority investment projects to be approved by the Government of the Russian Federation. it should be noted that at the time of drafting this brochure. granting the city's sureties. Petersburg. Module A Regional Center – St. Petersburg. 4. A priority investment project is an investment project that meets all of the following conditions:  The total amount of investments in the project equals no less than 1 billion rubles (or its equivalent in a foreign currency at the exchange rate of the Central Bank of the Russian Federation quoted on the date when the Law on Foreign Investments came into force – approximately EUR 40. but for no longer than seven years as of the date of commencement of the financing of this project by means of foreign investments. etc. Petersburg investment activities are governed by Law of St. However.000). payments to state extra-budgetary funds (with the exception of payments to the Pension Fund of the Russian Federation). widely used in international practice. contribution of funds to the fixed assets of a foreign legal entity’s branch to be established in the Russian Federation.2. acting as a lessor in the Russian Federation with respect to particular types of equipment. Russian tax legislation does not provide protection for investors from negative changes in legislation. Petersburg Enterprise Europe Network . In accordance with Article 9 of the Law on Foreign Investments. of protection from negative changes in legislation of the host country (“grandfather clause”).000. whose customs value amounts to no less than 1 million rubles. tax benefits. 1998 "On State Support of Investment Activities on the Territory of St. The guarantee is valid with respect to the following taxes:    import customs duties (with the exception of customs duties that were imposed as a result of measures aimed at protecting the economic interests of the Russian Federation in terms of foreign trade according to the Russian Federation legislation).ru 81 .000. 185-36 dated July 08. deferred rent rates for lease of the city's property. which makes this guarantee difficult to implement in practice. The respective support measures may include.Russia. Strategic investment projects In St. Petersburg" which establishes the legal framework for state support for investors (including foreign investors) carrying out their activities on the territory of St.4.  The Law on Foreign Investments provides foreign investors with a guarantee. inter alia. Investments in St. federal taxes (with the exception of excise taxes and VAT on commodities produced in the Russian Federation).  form of an economic partnership or a company in accordance with the Russian Federation civil legislation. new federal laws and other legal regulatory acts of the Russian Federation that increase the total tax burden on the activities of an investor and commercial organization with foreign investments or establish a less advantageous regime with respect to foreign investments shall not be applied during the payback period of the project. the list of priority investment projects was not approved. Currently. Petersburg No. Doing business in St.doingbusiness.000). or the share of foreign investments in the charter capital of the commercial organization implementing the project equals no less than 100 million rubles (or its equivalent in a foreign currency at the exchange rate of the Central Bank of the Russian Federation quoted on the date when the Law on Foreign Investments came into force – approximately EUR 4.

5.5. The Central Bank of the Russian Federation is entitled to prohibit an increase in the charter capital or alienation of shares in the charter capital of credit institutions if as a result of such actions the admissible share of foreign capital in the banking system of the Russian Federation is exceeded. They also may not provide obligatory state insurance 82 Doing business in St. may not provide obligatory insurance or life insurance.5.2. in which foreign investors’ share exceeds 49%.2.2. Petersburg | www. Module A Regional Center – St. Petersburg Enterprise Europe Network .doingbusiness. Petersburg. Petersburg. the admissible share of foreign capital in the banking system of the Russian Federation shall be established in accordance with a legislative procedure. Strategic investment projects are implemented on the basis of an agreement entered into between St. energy-conservative. Insurance services sector The basic legal act regulating the insurance services sector is Federal Law No. Petersburg". Strategic Investors and Strategic Partners of St. Petersburg. which establishes certain restrictions on foreign insurance organizations’ activities through their subsidiaries and associated companies on the territory of Russia. 4.2. foreign and local investors in the Russian Federation have equal status subject to certain exceptions. According to Article 6 of the mentioned law.ru . 742-136 dated December 03. Decision on recognition of a strategic investment project is adopted by the Government of St. 1990 “On Banks and Banking Activities” sets forth additional requirements for the foundation and commercial activities of credit institutions with foreign investments and branches of foreign banks in the Russian Federation. Petersburg No. 2008"On Strategic Investment Projects.1. increase of investment attractiveness of St. Petersburg may be recognized as strategic in cases stipulated by the Law of St. 4015-1 dated November 27. The admissible share of foreign capital in the banking system of the Russian Federation is calculated as a ratio of the total amount of stakes belonging to foreign investors in the charter capitals of credit institutions and the amount of stakes belonging to foreign banks to the total amount of capital of all credit institutions registered on the territory of the Russian Federation. Pursuant to Article 18 of the mentioned Federal Law. Petersburg. in other investment projects – 15 billion roubles. resource-saving and other high-efficiency technologies (if the investment project is connected with industrial production). Banking sector Federal Law No. development of an important sector of the national economy in St. to date the federal law that sets forth the share of foreign capital in the banking system of the Russian Federation has not been adopted. In particular. However. For instance. 4.Russia. 395-I dated December 2. the investment project can be recognized as strategic if the following criteria are met:        improvement of socioeconomic and cultural living conditions of citizens of St. Restriction on foreign investors' activities Normally. Petersburg. 4.An investment project to be implemented on the territory of St. Petersburg and respective investor. promotion of development of certain territories of St. 1992 "On Organization of Insurance Business in the Russian Federation". the aggregate amount of investments in development of the production sector or transport and logistics hub of no less than 3 billion roubles. A strategic investment project shall also conform to the following requirements: economic efficiency of the investment project in terms of its payback period and profitability. there are restrictions on investments made by foreign parties in the banking and insurance sectors as well as businesses that are strategically important. subsidiaries of foreign investors (foreign insurance companies) and insurance organizations. use of high-tech.

as well as when making other deals with foreign investors entailing establishment of control over such businesses. foreign citizens. Module A Regional Center – St.3.4. which are strategically important for national defense and state security. Doing business in St. The share (quota) of foreign capital in the charter capitals of all insurance companies registered in Russia may not exceed 25%.5. An insurance organization. which can be consolidated into several groups:   activity connected with nuclear materials or radioactive substances. A business that is strategically important for national defense and state security (hereinafter a "business of strategical importance") is a company established in the Russian Federation in the form of a limited liability company or an additional liability company or a joint stock company. renovation.ru 83 .5. distribution.doingbusiness. Investments in economic entities of strategic importance Federal Law No. is performing its activities in accordance with legislation of the state of incorporation. 4. which is strategically important. or usage of military technology. foreign legal entities. Increase in the capital of an insurance company with funds from foreign investors and their subsidiaries also requires prior permission from the insurance supervisory authority. being a subsidiary of a foreign investor. 2011) and other special territories mentioned in federal laws. Petersburg Enterprise Europe Network . 26 dated January 09. Pursuant to Clause 3 of Article 15 of the Russian Land Code.2. in which foreign investors’ share exceeds 49%. When the indicated maximum allowable shareholding is either reached or exceeded. Article 3 of the Federal Law “On Turnover of Land for Agricultural Purposes” provides for that foreign citizens. 2008 "On Procedure of Making Investments in Economic Entities of Strategic Importance for National Defense and State Security" (hereinafter the "Law On Foreign Investments in Economic Entities of Strategic Importance") establishes the restrictions on foreign investors when purchasing shares in businesses.2. which carries out at least one type of activity.Russia. and has been participating in activities of insurance companies established on the territory of Russia for at least 2 years. has the right to carry out insurance activities in Russia provided that the foreign investor has been an insurance company for at least 15 years. The Law on Foreign Investments in Economic Entities of Strategic Importance outlines forty two types of such activities. stateless persons as well as Russian legal entities. It should be noted that these restrictions do not apply to cases where foreign investors are companies from EU countries. Such entities may only lease land plots of the said categories. in which more than 50 percent of the share capital belongs to foreign citizens. Ownership rights to certain categories of land plots In Russia. 57-FZ dated 29 April. Permission (prior consent) of the insurance supervisory authority is required for transferring shares in the charter capitals of Russian insurance companies to foreign investors and their subsidiaries. the controlling authority supervising the insurance sector stops issuing permits for the performance of insurance activities to subsidiaries of foreign insurance companies and insurance organizations. 4.or issue property insurance related to making deliveries or performing works for state needs or insure property interests of state and municipal organizations. production. foreign legal entities or stateless persons may not hold ownership rights to agricultural land. weapons. ammunition and explosive materials. Petersburg | www. stateless persons and foreign legal entities may not hold ownership rights to land plots located in border territories (the list of respective territories is approved by the Decree of the President of the Russian Federation No. development. foreign investors are not allowed to own certain categories of land plots.

A foreign investor intending to conduct any of the said transactions or establish control over a business of strategical importance must submit to the authorized state body a respective petition for prior consent to such transaction or a petition for consent to establishment of control. activity related to aviation security.Russia. production.) also require prior approval for their execution. The issue of establishing control over an acquisition target is a decisive criterion that determines whether such acquisition shall be subject to the Law on Foreign Investments in Economic Entities of Strategic Importance. executing work influencing hydrometeorological and geophysical processes and phenomena. which develops subsoil plots of federal importance Approval is required if over 50% is acquired (also in certain circumstances if a lesser interest is acquired) Approval is required if 10% or more is acquired (other than in cases when the Russian Federation owns over 50%) State foreign investor Approval is required if over 25% is acquired. while acquisition of over 50% is prohibited It is important to note that other transactions resulting in control of foreign investor over a business of strategical importance (such as agreements on a foreign investor carrying out the functions of a manager of a company. activity connected with the use of infectious disease agents. The consideration of a petition takes approximately three months. mass information activity. 84 Doing business in St. production.doingbusiness. transactions resulting in the possibility to elect more than 50% of the composition of the board of directors (or supervisory board) or to appoint the sole executive authority or more than 50% of the composition of the collective executive body of such a business. Petersburg | www. distribution or technical service of encoded (cryptographic) assets. Module A Regional Center – St. distribution and identification of electronic machinery intended for secret collection of information. surveying and extracting useful substances from subsoil of land plots of federal importance and catching of biological water resources. development. The table below shows the cases when approval of acquisition is required: Investor Private foreign investor Company – acquisition target General enterprise of strategic importance Enterprise. production. development. development. etc. testing and overhaul of aviation technology. Petersburg Enterprise Europe Network . while acquisition of over 50% is prohibited Approval is required if 5% or more is acquired.ru .       space activity.

Module A Regional Center – St.700 - Property tax Transport tax - 2. Petersburg. social insurance contributions. VAT (except for imports) and property tax. VAT.e.ru 85 .3. equals 42 Russian Roubles. excise duties.1.000 0-17.5% (depending on the type of land) Land tax - 0.Russia.5% 28 - RUB 4-1. A taxpayer can apply a particular special tax regime if certain requirements are met.5-200 (depending on the engine power of vehicle) 0. Petersburg | www. Taxation Information for the current chapter was developed and kindly provided by DLA Piper The following table summarizes Russian taxes in general and in St. 4. 1 USD appr. the Tax Code of the Russian Federation envisages special tax regimes pursuant to which a taxpayer is obliged to pay only one specific tax instead of a number of taxes.4.700 (depending on the type of waters) 2. transport tax and land tax is concerned. Special tax regimes in Russia Under the Tax Code of the Russian Federation. As far as property tax. the unified agricultural tax and the tax on imputed income replace profits tax for organizations.doingbusiness.5 per cent from 18 per cent of a regular rate) for any period they consider necessary. Such special tax regimes include a simplified tax system. Petersburg Enterprise Europe Network . he/she is obliged to pay such taxes as corporate profit tax. a unified agricultural tax and a tax on production sharing agreements. Doing business in St. a tax on imputed income.2% RUR 24-1. the authorities are authorized to grant a reduction in the profits tax rate (in the part payable to the regional budget) by 4.004-1. equals 32 Russian Roubles.5 per cent (i.5% At a regional level. land tax.3. Tax To be paid to the federal budget (standard rates) 2% 18% 13% To be paid to the budget of St. transport tax. personal income tax.5% (depending on the type of mineral) RUB 4-1. property tax. the regional authorities also have a right to reduce the tax rates. mineral extraction tax and water tax. In addition. income tax for individual entrepreneurs. The simplified tax.2% RUB 2. Petersburg 18% Total tax rate Profits tax VAT General personal income tax Mineral extraction tax Water tax 20% 18% 13% 0-17.3-1. down to 13. If a taxpayer applies the common tax regime. there are two different tax regimes: a common one and a special one. 28 1 EUR appr.

For the purposes of the unified agricultural tax the term "agricultural producers" denotes organizations.1. Tax on imputed income Tax on imputed income is a federal tax established by the Tax Code and which is in force by the local tax authorities.3. 4.3. etc. As mentioned. Petersburg the tax on imputed income is constituted by the Law of St.4.1. income tax for individual entrepreneurs. 4. catering. agricultural producers are allowed to apply the unified agricultural tax. VAT (except for import) and property tax. taxpayers of unified agricultural tax. Taxpayers are subject to quarterly advance payments.3. Petersburg | www. parties of production sharing agreements.1 of the Tax Code. this tax replaces profits tax for organizations. Petersburg Enterprise Europe Network . The simplified tax system A company and individual entrepreneurs can apply the simplified tax system if the following conditions are met. retail trade. A taxpayer can apply a tax on imputed income if he/she satisfies the following requirements:   less than 25 per cent of company’s capital is owned by other organizations. Module A Regional Center – St.1. veterinary services. whereas the annual final payment is due by 31 March of the following calendar year. Petersburg N299-35 dated 17 June. products resulting from the processing 86 Doing business in St. medical insurance and social insurance for temporary disability or maternity leave.1.Russia. banks and investment funds.ru . Advance tax estimates and annual tax returns are due during the same terms as the corresponding payments. (individual) farms and individual entrepreneurs producing agricultural products on agricultural lands and selling these products. The unified agricultural tax Under article 346. insurance agencies. inter alia:       the company's annual turnover does not exceed a certain threshold (RUB 60 million from 1 January 2010 until 2013). Usually it involves a very immaterial tax base and is advantageous to taxpayers operating on the basis of the imputed income tax system. The tax on imputed income has a rate of 15 per cent and is imposed on the amount of the "imputed revenue" established for each specific type of activity per month adjusted by special coefficients.doingbusiness. Russian legal entities with branches. Russian legal entities with more than 25 per cent of the capital owned by other organizations. transport advertising and passenger and cargo transportation. the average annual staff headcount is less than 100 people. Specific types of business activities mainly performed by small or medium sized legal entities are subject to tax on imputed income.2. or 15 per cent if a taxpayer selects "income less deductible expenses" as the tax base. Such types of business activities include consumer domestic services.3. and the company employs less than 100 people. 2003. Payable imputed income tax could be reduced by deducting insurance contributions for mandatory pension insurance. In St. in particular. Such companies are: foreign legal entities. Some entities may not apply the simplified tax system. The simplified tax rate is:   6 per cent if a taxpayer selects revenue as a tax base. vehicle maintenance. repair and washing.

the following main types of activities qualify for the Concessions29: 29 The full list of qualifying activities is listed under section D "Production and services of the manufacturing industry". 4.thereof. given that the criteria for the application of such incentives can be discretionally set by the regional authorities. down to 13. the regional authorities also have a right to reduce the maximum 2.ru 87 . As the various regions of Russia compete to attract foreign investors. a reduction in the regional part of the profits tax rate from 18% to 13. The Concessions are granted for a period of 5 tax periods in a row starting from the date when the right for the Concessions arose in accordance to the provisions of the Law.5% if the sum of the qualifying Investment equals RUB 800 million or more. 4. the reduction in profits tax can be potentially available to any group of investors (taxpayers). E "Electricity. but also the relevant regional laws. including favorable tax conditions.5 per cent (i. Petersburg Under the Russian tax legislation. services) of these organizations. Petersburg Enterprise Europe Network . Petersburg may be entitled to the following Concessions: 1. a full exemption from property tax (from the maximum tax rate of 2. However. Petersburg.3.Russia.1.5 per cent from 18 per cent of a regular rate) for any period they consider necessary. it is important to examine not only the relevant federal laws.e.2 per cent property tax rate or to provide a full exemption from the property tax at their discretion. when a foreign investor is considering investing in a particular Russian region. (individual) farms and individual entrepreneurs.3. regulations and other legal measures aimed at improving the particular social and economic conditions in their region. Petersburg Law On Tax Concessions No. and 2. Doing business in St. Petersburg | www.doingbusiness. Tax concessions in St.2. Such incentives are generally granted to major investors or entities operating in a particular industry. Petersburg and making capital investments (the "Investment") on the territory of St.2% to 0%) in relation to respective fixed assets. General rules for the application of the Concessions Scope of the Concessions: Under the Law. At a regional level. Income and expenses are calculated in accordance with general profits tax rules. In particular. The unified agricultural tax rate is 6 per cent. gas and water production" and I "Transportation and connection" of the All-Russia Classifier of Economic Activities (although there are some exemptions). Module A Regional Center – St. Types of qualifying investment activities: The Law limits the scope of the Concessions only to manufacturing companies engaged in specific economic sectors to be determined in accordance with the All-Russia Classifier of Economic Activities. In St.2. 1995 (the "Law"). As far as the property tax is concerned. if the portion of proceeds from the sale of the products make up at least 70 per cent of the total proceeds from the sale of the goods (works. The unified agricultural tax is levied on income minus deductible expenses. the authorities have limited powers to grant profits tax incentives and are only authorized to grant a reduction in the profits tax rate (in the part payable to the regional budget) by 4. Thus. a legal entity paying profits tax and property tax to the budget of St. a number of additional tax concessions (the "Concessions") have been introduced by the St. each have passed numerous laws. profits and property tax incentives and exemptions can be inter alia provided through regional legislation. 81-11 dated 14 July.

Water and ice. 88 Doing business in St. Electrical energy. Petersburg | www. Metal products. management of airports. Equipment for the media. Definition of qualifying investment: The Law provides that when determining the required sum of the Investment (i. some particular economic activities are excluded from the qualifying list. Land transport. Clothing and textiles. real estate lease (even if they have met other criteria) is directly restricted.). the sum of the investment made in the respective year must be reduced by the net book value of fixed assets which were used by the taxpayer in St.ru . Water transport.  Additional transport activity (including forwarding. gas / diesel / nuclear / turbines. gas and water production Transportation and communications Food and beverages. Wood pulp.  Communications. Additional transportation services: o Terminals (airport etc. o Activities on the overland services of air transport.). Furniture. Scrap metal. Transportation vehicles. Please find a list of such activities below:  Lease of cargo automobiles / sea / internal waters / air transport with crew. RUB 800 million the "Threshold") only the net investment shall be taken into account. gas. At the same time. Ships and other transportation vehicles. Cars and auto components.. Petersburg but were alienated (written off) during the same year.Russia. o Operation of takeoffs and landings. Others.e. steam and hot water. non-mineral products etc.) activity. o Management of air traffic.Production and services of the manufacturing industry                       Electricity. Electrical energy produced by thermoelectric plants. Chemical products (rubber. Module A Regional Center – St. according to the Law. storage services etc. Air transport. Machinery and equipment. However. Petersburg Enterprise Europe Network .doingbusiness. runways etc. i. Medical equipment. the application of the Concessions by companies engaged in retail trade. Tobacco and tobacco products.e.

2. to the fixed assets which were not previously used on the territory of St. Additional requirements for the application of the Concessions: The Law provides certain additional requirements for the application of the Concessions which include:  A "claw back" rule which stipulates that if the fixed assets subject to the Concessions are alienated (or relocated from St. the Investment must be made: 1. Concessions for the companies engaged in the innovative sector A legal entity that is involved in the manufacturing and selling certain innovative products (that are listed in the Law).ru 89 . Petersburg may be entitled to the following Concessions: 1. modernization.Russia. In this respect. "Actual payment of the investment" requirement The Law also leaves open the question as to whether the investments should be actually paid during the investment period or not.2% to 0%) in relation to the respective fixed assets. the Investment means (a) the acquisition30 of fixed assets and (b) placing those fixed assets into operation. may be entitled to a reduction of the regional part of the profits tax from 18% to 13. The Concessions for the strategic investors (until 2013) The Law also provides that a qualifying legal entity paying profits tax and property tax to the budget of St. 3.3. and 30 Including the acquisition by way of construction. according to the Tax Code the obligations and the rights of the reorganized company (including a right for the concessions) are transferred to the legal successor. for the production of goods (work. Petersburg and which are intended for production purposes (i. Petersburg | www. However.For the purposes of the Law.5% under the following conditions:    it fulfills the above-mentioned conditions for the qualifying investor. in the required Threshold.e.   4. Doing business in St. 2. In order to qualify for the Concessions. Module A Regional Center – St. Petersburg) by the taxpayer before the expiration of a 5 year period (after the right for the Concessions appeared).3. Petersburg Enterprise Europe Network .3. in-kind contribution of fixed assets into the charter capital or obtainment of fixed assets under the lease agreement (if under such agreement the leased fixed assets are accounted at the lessee's accounts). a conservative position would be to make sure that the required sum of the investment has actually been paid during the period of putting the fixed assets into operation. and 4. on the territory of St.2. it makes the Investment in the amount of RUB 50 million or more.2.doingbusiness. 4. services) and/or for management purposes). a full exemption from property tax (from the maximum tax rate of 2. the taxpayer automatically forfeits his right to the Concessions claimed in relation to the alienated assets and must restore and pay to the budget the respective profits tax and property tax. Investment in the form of land is clearly excluded from the qualifying investment. Petersburg. within a period of no longer than three consecutive calendar years starting from 2010. Petersburg and making the Investment to the amount of RUB 3 billion or more on the territory of St. 80% of the total taxable profit must be derived from selling of the said innovation products. Reorganization issues The question of whether the successor has a right for the Concession or not. remains unregulated directly by the Law. reconstruction.

in practice.Russia. These audits are carried out solely on the basis of such tax returns and other documents submitted by a company. Based on the act and on the proceedings.3. such administrative proceedings have been obligatory before the company may go to court. Generally. a company may challenge the decision of the tax authorities through an appellate procedure by filing a petition with the higher tax authority. Tax administration in Russia One of the main purposes of the tax administration reform which has been implemented in the Russian Federation lies in the creation of a more transparent and predictable tax control mechanisms. Petersburg Enterprise Europe Network . Petersburg for one calendar year is less that the said amount of taxes for the year preceding the first year when the Concessions were applied. According to the Russian law. this period may be prolonged for 15 business days. Petersburg | www. If the decision is endorsed by the higher tax authority.3. The claim may be accompanied by an application requesting an injunction from the court which. The Concessions may be provided for a period of 5 years starting from the first month of the calendar year following the year when the qualifying investment was made. According to the Russian law.2. shall disallow the tax authorities from unilaterally withdrawing the amounts equal to the sum of the charges from the bank accounts of the company. Module A Regional Center – St. a reduction in the regional part of the profits tax from 18% to 13. an on-site tax audit covers all taxes. the tax authorities then issue a decision. The duration of an onsite tax audit is limited by law to a maximum of two months. On the one hand.1. Furthermore.3. the Investment of RUB 3 billion or more must be made starting from 2007 within three calendar years. 4. on the other hand. The conditions for the application of the Concessions described in this section slightly differ from the general conditions which were described above.ru 90 . Acquisition of the qualifying fixed assets under the lease agreement is directly restricted. the Law contains the so-called minimum "tax test" rule. Only as of this moment will the decision of the higher tax authority come into force. The above Concession is available for the qualifying investors that meet the above-mentioned criteria until 2013 for a period of 5 years as indicated in the previous paragraph.3. Doing business in St. The Concession may be granted only to the investors performing qualifying types of activities (please see Section "Types of qualifying investment activities": Production and services of the manufacturing industry) above. 4. and On-site tax audits (the review of the three calendar years preceding the period in which the tax audit is being performed). The higher tax authority has to issue its decision within one month from the date of receiving the petition. the audited company is entitled to object to the act in writing and to defend its position at the proceedings held by the tax authorities.5%. the company may challenge the decision by filing a court claim with the relevant State Arbitration Court. this mechanism must protect taxpayers from official pressure. This means that the qualifying investor forfeits his/her right to apply the Concession if the total amount of taxes due to the budget of St. In particular. From 2009. which. Tax audits Russian law provides for two types of tax audits that may be conducted by the tax authorities:   In-house tax audits (the review of tax returns filed by taxpayers). As a result of both in-house tax audits and on-site tax audits the tax authorities are obliged to issue an act reflecting the results of the respective audit. if granted. generally repeats the wording of the act issued by the tax authorities. it must ensure an effective control over the observation of tax legislation by the state.doingbusiness.

Late payment of tax is subject to an interest equal to 1/300 of the effective rate per day of the Central Bank of the Russian Federation.2. The same ruling has also formulated a different concept that if the court has decided.3. Reclassification of transactions for tax purposes The tax authorities have recently changed their focus from reviewing mainly defects in accounting business operations for tax purposes to disregarding the legal form of a contract when making a tax re-assessment.4. Non-payment of a tax as a result of a reduction in the tax base is subject to a fine to the amount of 20 per cent of the unpaid tax. Doing business in St. 53 of 12 October. In such a case.doingbusiness. In its Ruling No.3. are to be deemed void with tax implications arising therefrom regardless of their recognition by courts. Tax penalties The carrying out of business activities without registration with the tax authorities is subject to a fine to the amount of 10 per cent of the respective income. Petersburg Enterprise Europe Network . the Plenum of the High Arbitrazh Court specifically stated that the courts should take into account that transactions not compliant with the law or other legal acts. Late submission of a tax return is subject to a fine equal to 5 per cent of the tax due under such a tax return per calendar month (full or partial). that the taxpayer has accounted for business operations not in accordance with its actual economic meaning. then the court "shall define the scope of the rights and obligations of the taxpayer based on the true economic content of the business transaction". but not less than RUB 40. or  was recorded for tax purposes not in accordance with its actual economic substance ("form over substance principle"). 4. 2006. Module A Regional Center – St. on the basis of evidence submitted by the tax authorities and the taxpayer itself. The fine may be increased by up to 40 per cent if the violation is intentional.3.000. Petersburg | www. as well as sham and fictitious transactions.3.Russia.ru 91 .3. the court can find a tax benefit unjustified and disallow such a benefit received by the taxpayer if the transaction concerned:  is lacking economic substance and legitimate business reasons other than obtaining a tax benefit ("business purpose principle").

Like in many countries. This means that dispatch of goods (rendering of services.  Form of contract According to the Russian Civil Code.doingbusiness. Recommendations for entering into contracts The main criteria for the "reliability" of a signed agreement are its validity and enforceability. Jurisdiction As a general rule. Contracts Information for the current chapter was developed and kindly provided by BEITEN BURKHARDT Reasonable actions on the part of foreign companies in the Russian market can lead them to extremely impressive financial results. in certain cases the choice of jurisdiction is limited.ru . it is possible to distinguish between reputable and solvent partners and doubtful or newly established fly-by-night companies. in particular transfer of rights to real estate. the Land Cadastre.g. protection of consumer rights as well as matters related to establishment and operations of Russian companies. the parties to a contract may select a competent court for considering disputes that may arise in connection with the contract.4. However.. shares and interests in Russian companies. the Baltic States.1. Analyzing counterparties prior to signing contracts When taking a decision on whether to enter into a partnership with a Russian company. Module A Regional Center – St. 4. However. Moreover. Like the choice of the governing law. Thus. the Unified State Register of Rights to Immovable Property and Transactions Therewith. thorough preparation and maximum awareness are a prerequisite for such results. Petersburg Enterprise Europe Network . on the basis of invoices) is not allowed. In particular. information on various organizations can be requested from special information agencies.Russia.4. are enforceable in Russia. foreign counterparties would like the provisions of an agreement to be executed thereby to be governed by the national law. it should be noted that subordination of an agreement to any foreign law cannot preclude possible problems related to subsequent performance of the agreement. there are such treaties with Italy. it is necessary to verify its solvency and reliability.4. Petersburg | www. which reduces counterparty default risks under agreements. such choice of law may adversely affect the validity of the agreement as any terms and conditions contradicting imperative provisions of the Russian law are deemed null and void and cannot be judicially protected or enforced in Russia. Choice of governing law Normally. For example. It should also be mentioned that only court decisions of the countries. 4.4. and the websites of federal courts. Registers of Intellectual Property (Rospatent). Several principal aspects that should be kept in mind when establishing contractual relations with counterparties in Russia are briefly covered below.2. The most simple and fast way to obtain information about a potential partner is to review open official data sources. disputes over rights to immovable property located (registered) in Russia may be settled by a Russian state court only. services and agencies. Furthermore. performance of works) to or by foreign entities without entering into a written contract (e. foreign trade transactions shall be executed in a written form under pain of invalidity. in particular the Unified State Register of Legal Entities. Spain. with which Russia has treaties on mutual recognition and enforcement of court judgments. and certain countries of   92 Doing business in St. a number of issues in Russia are subject to exclusive regulation by the Russian law.

Petersburg and Leningrad Oblast).3.4.  Liability of parties Generally. victims may file a lawsuit for damages against either the seller (importer) or the manufacturer of the product. Aside from the confidentiality. it is important to remember that to be enforceable in Russia foreign international arbitration awards shall be recognized by a Russian state court at the place of location of a debtor (in St. surety and a bank guarantee. when implementing cross border transactions. 1. as well as to consider the requirements of current court practice on the execution of guarantees (including validity periods).4. One type of pledge is mortgage – pledge of land. Currency control In accordance with the Federal Law “On Currency Regulation and Currency Control”. an undeniable advantage of international arbitration is the enforceability of its awards in more than 140 countries. Securing contract performance For the purposes of protecting business interests it is necessary to consider in advance effective means of securing a counterparty's performance of its obligations. Module A Regional Center – St. Petersburg – the Arbitration Court of St. A common method of avoiding such risks is to enter into an arbitration agreement providing that all disputes fall within the jurisdiction of Russian or foreign international arbitration. which documents the creditor must present to the bank along with a claim for payment.ru 93 . Petersburg Enterprise Europe Network . buildings (including buildings under construction) and other real estate. 4. 4. The only basis for a release from liability is a proven fact of improper product use. Bank guarantee: A distinct feature of a bank guarantee is its independence from the main (secured) obligation. A bank guarantee is one of the most reliable means of securing obligations. it entitles the creditor to satisfaction of his/her claims out of the debtor's property being the subject of pledge. Petersburg | www. the grounds for and limits of liability for improper performance of contractual obligations are stipulated by the parties to the contract. Pledge/mortgage: A pledge is one of the most reliable means of security and. In the absence of such treaty. a popular form of securing obligations is a personal surety of company founders – individuals or companies affiliated with the debtor and owning assets. which are not enough for satisfying claims which could arise in the future. At the same time. a pledge lender has the preferential right to satisfaction of its claims in priority over all other creditors of the debtor. 2. including Russia. The most common means of security under the Russian law include pledge/mortgage. Surety: Oftentimes Russian companies have quite modest charter capitals and assets. At their option. liability of the seller (producer) ensues regardless of fault of the seller or the presence of contractual links. in the event the debtor does not fulfill its contractual obligations.the Central and Eastern Europe. residents (Russian citizens and companies incorporated pursuant to the Russian laws) shall comply with special requirements stipulated by the law and normative acts of currency regulation authorities. a judicial act may prove to be useless.4. However. The surety and the debtor bear joint liability for performance of the secured obligation. Moreover. Consequently.doingbusiness. This means that within the period established by the bank guarantee agreement the creditor is entitled to satisfaction of its claims from the guarantor bank even if the secured obligation is invalid (unenforceable). When executing one it is necessary to very precisely formulate. The law establishes considerably strict requirements for mortgage agreements as well as the obligation of state registration.Russia. The most important regulatory acts related to Doing business in St. certain restrictions of "free will" should be born in mind: Russian law does not permit limiting liability given premeditation of the breaching party. 3. For harm caused by a defective product within its established lifespan.

02.doingbusiness. For example. As a general rule. Also. If the above works are performed for more than 90 days. Petersburg Enterprise Europe Network . the foreign company must review other options – e. such provisions are set forth in Subclause 3 of Clause 5 of the Double Taxation Treaties with Germany dated 29.4.g. when determining the contract price including the cost of goods and services without dividing it into respective parts. customs payments shall be charged on the entire contract price. Should a foreign company render services associated with supply.g. this is due to tax consequences – on the one hand.1994.12. residents shall provide authorized Russian banks with special documents when making payments within the framework of foreign trade activities. Any issues related to formation of permanent establishments of foreign companies are regulated by bilateral international double taxation treaties and the Tax Code of the Russian Federation. Pursuant to general rules. service and warranty maintenance as well as post-warranty repairs in Russia. As a work permit is not required foreign citizens performing installation (supervision) works. performance of installation supervision works usually does not require a permit of a member of SRO. 4.1996 and Great Britain dated 15. through which activities in Russia are performed. Pursuant to the general rule. It is necessary to check whether a permit is required with respect to each particular type of works to be performed. In accordance with currency control regulations. Responsibility for violating the currency legislation of the Russian Federation and the acts of the currency regulation authorities is specified in the Administrative Offences Code (KoAP). Module A Regional Center – St. in some cases services rendered by a foreign company in Russia may be subject to VAT (depending on the type of services) and corporate profits tax (if a permanent establishment is formed in accordance with the criteria set forth by legislation). However. an offset of mutual claims) may be prohibited. it should be taken into consideration that in certain cases in order to perform installation works a company may have to obtain a permit to perform construction works and join a self-regulating organization (SRO) registered in Russia. replace the personnel each 90 days.5. on the other hand.05. they usually stay in Russia on the basis of a multi-entry business visa. a permanent establishment of a foreign company is deemed to have formed if representatives of the foreign company perform regular commercial activities in Russia. Petersburg | www.ru . a Russian company being a party to the respective agreement and acting as a tax agent of the foreign company shall calculate and withhold VAT and corporate profit tax on the amount payable to the foreign counterparty as remuneration for its services. some double taxation treaties establish special rules with respect to construction (building areas) and installation works (installation objects). In accordance with the current rules. it should be noted that the aggregate period for a foreign citizen to stay in Russia on the basis of such visa may not exceed 90 days during each period of 180 days. Specific features of supply agreements containing conditions on equipment installation If within the framework of a supply agreement a foreign supplier also undertakes to provide services associated with installation or supervision of installation of the equipment supplied.. In the above cases if a foreign company does not have its own divisions.making payments to foreign recipients are issued by the Bank of Russia. a foreign company shall be mandatorily registered with Russian tax authorities if such activities are performed for more than 30 days during one calendar year. the Netherlands dated 16. some operations (e. First of all. it is recommended that the respective relations in regard to supply and services be formalized by separate agreements. it is necessary to take into consideration a number of aspects of Russian tax and migration legislation as well as provisions on regulation of construction activities.1996. However.Russia. obtain new business visas or respective work permits. Moreover. 94 Doing business in St. the activity of a foreign company that performs construction or installation works on the territory of the Russian Federation is not taxable in Russia if such activity is performed for no longer than 12 months.

persons studying full time and other persons specified by the Labor Code. Employment Information for the current chapter was developed and kindly provided by BEITEN BURKHARDT Labor relations and other relations directly connected therewith are regulated by labor legislation which consists of the Labor Code of the Russian Federation (hereinafter the "Labor Code"). A fixed-term employment agreement may be entered into only in cases stipulated by the Labor Code and other federal laws. other federal laws and laws of the constituent territories of the Russian Federation. Requirements of the Russian labor legislation are also applicable to foreign citizens and foreign company employers participating in relations involving the performance of labor activities in Russia.5. for whom the workplace is preserved. detrimental. By agreement of the parties. Term of an employment agreement Employment agreements may be concluded for an indefinite term (unlimited agreements) or for a fixed term not exceeding 5 years (fixed-term agreements).ru 95 . in transit.Russia. bonuses. connected with travel. employment agreements are concluded for an indefinite term. etc. for the time of performing temporary (up to 2 months) or seasonal work. provision on mandatory social insurance in accordance with legislation.2. 4. date of commencement of work.1. place of employment. Employment agreement An employment agreement is the basic document regulating the relations between the employer and the employee. deputy executives and chief accountants of an organization. Entering into a fixed-term employment agreement in cases not stipulated by the Labor Code or other federal laws is not allowed. and benefits to the employee for working in severe. conditions determining the nature of the work (mobile. etc. for instance: for the time of performing the obligations of an absent employee.4. terms of remuneration of labor (salary.doingbusiness. Given actual admittance of the employee to work.).). as well as by other regulatory legal acts containing labor law regulations. In certain exceptional cases the labor legislation allows the employer to unilaterally change the conditions of an employment agreement (without the employee's consent). 4. persons combining jobs. position (labor function). Petersburg Enterprise Europe Network . for the time of carrying out work beyond the employer's usual activities. It is mandatory that an employment agreement be concluded between the employer and the employee in writing prior to the commencement of work. a fixed-term employment agreement may also be concluded with executives. etc. Generally.5. Petersburg | www. The conditions of an employment agreement may be amended by an agreement of the parties executed in writing. The following conditions must be included into an employment agreement:         information on the employer and the employee. the employer must execute an employment agreement with him/her in writing within 3 business days after the employee was actually admitted to work. Module A Regional Center – St. Doing business in St. possible premiums. compensation. work and holiday time. and dangerous conditions. An employment agreement may also include other conditions not contradicting the effective legislation.5.

e.4.). Leave Each employee shall be granted at least 28 calendar days of paid leave per annum (basic paid leave). young specialists.781 rubles for the year 2012. Working hours In the Russian Federation the normal duration of working hours may not exceed 40 hours per week. Such employees include: pregnant women.5. Salary The amount of the salary shall be specified in the employment agreement and may not be less than the federal minimum wage established for the entire territory of the Russian Federation (4. For executives and their deputies. By agreement between the employee and the employer. In case of parttime work the employee's labor is paid pro rata to the time worked by him/her or the amount of work performed.). 4. part-time work may be established. women with children up to 1. Module A Regional Center – St. or internal documents of the employer may also 96 Doing business in St. 4. the employer must notify the employee of the termination of the employment agreement in writing at least 3 days in advance. persons under 18 years of age. executives of separate structural subdivisions (branches. i. In such case.It must be noted that if neither party has requested termination of a fixed-term employment agreement upon expiration of its term and the employee continues to work after expiration of the employment agreement. Petersburg | www. An employment agreement. the agreement is deemed concluded for an indefinite term. 4. Overtime work shall be compensated for by granting the employee additional days-off or paying the employee at least one and a half times the regular hourly rate for the first 2 hours and at least twice the regular hourly rate for any subsequent hours. representative offices) the maximum probation period is 6 months. The maximum duration of overtime work is 4 hours within 2 consecutive days and 120 hours per year.e. flexible working hours. etc. persons caring for a family member who is ill.5.3. In St.5 years of age. Moreover. Probation may be established for a period of up to 3 months. quarter. one of the parents having a child aged up to 14 years or a disabled child up to 18 years. the employer must state the reasons. 4. etc. Roubles. i. chief accountants and their deputies. under a simplified procedure. Probation may not be established for certain categories of employees specified by the Labor Code (pregnant women.ru . Probation period Russian labor legislation provides for the possibility of establishing probation for an employee in order to verify his/her suitability for the job entrusted. collective agreement.Russia.5.doingbusiness. including: standard working day. record of cumulative hours worked. The Labor Code also allows engaging an employee in overtime work subject to the employee's written consent. The employer must establish a part-time working day for certain categories of employees upon their request. month. Russian labor legislation provides for the possibility to establish various working schedules by the employing company. for which the employee is deemed to have failed to pass probation.5. Petersburg the regional minimum wage is established in the amount of 7.611 rubles on the date of preparation of the brochure) and the regional minimum wage established by regional laws annually.6. various means of distributing work within a certain period (week. During the probation period the employer has the right to terminate the employment agreement with the employee who failed to pass probation. non-standard working day. Petersburg Enterprise Europe Network .5. Salaries must be paid at least every half-month in the currency of the Russian Federation.

The statutory holidays coming for the paid leave period are not included in the number of calendar days of the leave and are not paid. As a general rule. 4. Work on holidays and days-off is prohibited. 2. Dismissing an employee on other grounds is not allowed. the duration of which is not limited by law. The Labor Code provides for the following grounds for termination of employment agreements: 1. leaves are granted to employees in calendar days . Working hours at a secondary job may not exceed 4 hours per day. an employment agreement may not stipulate that the employee is prohibited for the term of the employment agreement from performing work or business activities that compete with the employer’s activities. Such leave shall be granted due to family circumstances or other valid reasons upon the employee’s written application. it is possible if provided for by the conditions of the agreement between the employee and the employer. No employee may also be prohibited from competing with his/her employer following the expiration of the employment agreement. Termination of employment agreements An employment agreement may be terminated only on the grounds stipulated by the Labor Code or other federal laws. Secondary employment. June 12. 3. Petersburg Enterprise Europe Network . and. Termination of an employment agreement by agreement of the parties Any employment agreement – whether concluded for an indefinite term or fixed term – may at any time be terminated by agreement of the parties. Module A Regional Center – St.5. Statutory holidays Russian labor legislation establishes 12 statutory holidays per year. the duration of which shall be agreed by the employee and the employer. The amount of and procedure for paying compensation are determined by mutual consent of the parties. This procedure for terminating labor relations is widely used in practice as it is connected with minimal potential risks for the employer. except for the cases provided by law. Resignation of an employee An employee is entitled to terminate the employment agreement at any time upon his/her own initiative. May 1 and 9. and 5. Such employee must notify the employer of the resignation in writing at least 2 weeks in advance. Prior to expiration of the resignation notification period the employee is entitled to withdraw the letter of resignation at any time. If a holiday falls on a dayoff. February 23. The employee may be granted a short-term unpaid leave. requires the employee’s written consent.8. 2.9.doingbusiness. however.ru 97 .Russia. At least one part of the leave shall not be less than 14 calendar days. In such case dismissal does not occur.provide for granting the employee an additional paid leave.5. January 7. It is permissible to conclude secondary employment agreements with an unlimited number of employers. The labor legislation does not obligate an employer to pay any compensation to an employee. Such work shall be paid at least twice the regular rate. 4. Doing business in St.Upon agreement between the employee and the employer the annual leave may be divided into parts. which are: January 1. 4. In accordance with the Russian legislation. March 8.5. 4.7. and November 4. as a rule. Prohibited competition During the time free from the main work an employee is entitled to perform another regularly paid work for the same employer (internal secondary employment) or for another employer (external secondary employment). the following business day becomes a day-off. Petersburg | www.

4. 4. "chairman of the board". otherwise the agreement will also be deemed prolonged for an indefinite term. to perform the functions of its single-member executive body. in particular. single gross breach of employment duties. Petersburg Enterprise Europe Network . 98 Doing business in St. 3. the employee being sentenced to punishment under a court verdict. the provision regarding the term of the agreement loses effect and the agreement becomes indefinite.10.If upon expiration of the resignation notification period the employment agreement is not terminated and the employee does not insist upon resignation. Termination of labor relations due to circumstances beyond the parties control In some cases an employment agreement is subject to termination due to circumstances beyond control of the employer and the employee. In case of termination of a fixed-term employment agreement due to expiration of its term the employer is obligated to notify the employee thereof in writing three calendar days prior to dismissal. etc. If upon expiration of the term of the employment agreement neither the employee nor the employer has requested termination of the labor relations. Dismissal for reasons associated with the employee's insufficient professional qualifications. reinstatement of the employee that previously performed the respective job duties. as well as compliance with the mandatory procedure and careful execution of all required documents.5. Should any legislative requirements be breached. Module A Regional Center – St.Russia. "general director". The Labor Code contains a relatively broad list of the grounds for dismissal of an employee upon the employer’s initiative. In such case the employee may be reinstated at work and the employer may be obligated to compensate for the emotional distress caused to the employee by the unlawful dismissal.   It is prohibited in all cases to dismiss an employee on the employer's initiative during the employee's temporary incapacity to work or leave. The list of such circumstances is stipulated by the Labor Code and. as well as pregnant women. the dismissal of an employee may be deemed unlawful. including: repeated nonperformance of employment duties resulting in disciplinary sanctions. and other circumstances. disqualification of the employee. Dismissal for production reasons: liquidation of the organization or a separate subdivision thereof. other regulatory legal acts and/or the company foundation documents with the right to manage the company. The term "executive" used in Russian legislation is of general character and when applied to a company of a particular type may be replaced with other terms.doingbusiness. "president". the employment agreement remains valid. presentation by the employee of falsified documents when being hired. for example "director". recognition of the employee as completely incapable of working.ru . Specific features of employment of company executives Company executives are individuals vested by virtue of law. Termination of an employment agreement on the initiative of the employer Dismissal upon the employer's initiative always requires certain substantiation directly stated in the Labor Code. Termination of a fixed-term employment agreement A fixed-term employment agreement terminates upon expiration of the term stated therein. staff reduction. In these cases the employees must be notified at least two months prior to dismissal and paid a severance pay in the amount established by the Labor Code. in particular. The most important of them are:  Dismissal for reasons connected with the employee's conduct. 5. other than in case of liquidation of the organization. includes the employee being called to military service. and other grounds. Petersburg | www.

). Pursuant to the law. damage caused as a result of the employee's criminal offence.Russia. which is established by the foundation documents or the employment agreement. who entered into an employment agreement with the company. Petersburg | www. the employer may not claim lost profits from the employee. o Other grounds agreed upon by the parties in the employment agreement. The damage shall be compensated for in full at the current local market prices. illegal transfer to another job. etc. an employee who has caused losses to an employer shall be held liable within the limits of his/her average monthly salary (limited liability). he/she is paid a compensation in the amount determined by the employment agreement. and relations between them are regulated not only by civil legislation and the company corporate documents but also by labor legislation. Full financial liability means that an employee is obligated to compensate for all losses that he/she has caused to the employer. including lost profit. Petersburg Enterprise Europe Network . Compensation (interest) for delaying payment of salary. legislation also provides for additional grounds. In the absence of wrongful acts (omissions) by the executive.11. delays in obeying a court ruling to reinstate employment and other cases. Russian labor legislation distinguishes between limited and full financial liability of an employee. The compensation shall be paid in the amount equal to the employee's average salary for the entire period of deprivation of the possibility to work. in cases established by Russian legislation.e. The employment agreement with an executive may stipulate a longer probation period: up to 6 months. Doing business in St. Labor Code provides for 4 main cases of financial liability of the employer:  Compensation for damages caused to the employee due to illegal deprivation of the possibility to work. damage caused while inebriated. Along with the general grounds for terminating an employment agreement with a company executive. damage caused as a result of disclosure of a legally protected secret.An executive is considered to be a company employee. Financial liability of employees and employers Financial liability of an employee is limited to the amount of direct actual damages incurred as a result of a wrongful act or omission by the employee. o Bankruptcy of the employing company. for example: o The authorized body of the employing company taking a decision to prematurely terminate the employment agreement with the executive. Module A Regional Center – St. damage caused while not fulfilling employment duties. have secondary employment) only subject to permission of the employer's authorized body (general meeting of participants / shareholders. Due to this. caused to the company by his/her wrongful acts. in particular. Compensation for damages to the employee’s property.ru  99 . board of directors.doingbusiness.5. Federal laws and company foundation documents may extend the above specific features of employment to the members of the company's collective executive body. As a general rule. including a trade secret. An executive bears full material liability for direct actual damage caused to the employer and is obligated to compensate for losses. The employee shall bear full financial liability only in the cases directly stipulated by the Labor Code. Employment of company executives has the following specific features:      An executive is employed on the basis of either an indefinite employment agreement or a fixedterm employment agreement. and other cases.  4. an employment agreement shall be entered into by the executive and the company. malicious damage. An executive may occupy paid positions in other companies (i. including unfair dismissal. even if such losses significantly exceed his/her average monthly salary. but not less than three times the executive's average monthly salary.

in accordance with tax legislation it is employers acting as tax agents that are obligated to calculate. and pay to the budget the personal income tax. Taxation of employees' income Employees' income (salary and other payments under employment agreements) is subject to the personal income tax at the following rate:   13% – for Russian tax residents (i. 4. employees of foreign legal entities performing assembly works.12. foreign employees who have work experience. Employment of other foreign citizens is possible provided that the employer obtained a permit to engage and use foreign employees and the employee obtained a work permit and a work visa.e. skills or achievements in a particular area of activities and are paid salaries of at least 2 million rubles per year. journalists accredited in Russia.5. Compensation for the emotional distress caused to the employee by the employer's unjust actions in the amount determined by the agreement between the employee and the employer or by court. maternity and other cases. Depending on the status of the foreign citizen.  The said procedure does not apply to foreign citizens holding residence permits. employers are obligated to ensure mandatory social insurance for their employees. deduct from the remuneration amount. 4. Remuneration of and other payments to foreign employees. industrial accidents. Insurance contributions are made on the basis of remuneration of and other payments to employees under employment agreements. requires obtaining a work permit and a work visa for the said specialist. Russian legislation establishes the following types of mandatory social insurance:    medical insurance. occupational diseases.Russia.14.doingbusiness. persons staying on the territory of the Russian Federation for more than 183 days per year irrespective of their citizenship) and highly qualified foreign specialists (irrespective of their tax residency). 4.13. and employee’s liability may not be higher than that stipulated by the Labor Code or other federal laws. social security insurance.5.  leave allowances or other sums due to an employee are calculated at the rate of at least 1/300th of the current Central Bank refinancing rate for each day of delay. These permits and the work visa are issued for the period of up to 1 year.e. who 100 Doing business in St. service and guarantee maintenance as well as follow-up service for technical equipment installed in Russia. Module A Regional Center – St. The employment agreement or written agreements attached thereto may provide for the liability of the parties to such agreement(s). Employment of foreign citizens Employers have the right to engage foreign employees provided that respective permitting documents and a special Russian visa are obtained by the employer and the foreign employee.5. Both documents are issued for up to 3 years. which provides for insurance against such cases as temporary incapacity to work. However. i. Although employees are taxpayers of the personal income tax. Social insurance of employees Pursuant to the Labor Code. international organizations. foreign citizens employed by diplomatic missions and consular establishments of foreign countries in the Russian Federation. 30% – for other employees not considered Russian tax residents.ru . Petersburg Enterprise Europe Network . and other categories of foreign citizens specified by the Russian legislation. the following documents shall be obtained:  Employment of highly qualified foreign specialists. pension insurance. such contractual liability of the employer may not be lower. Petersburg | www.

doingbusiness. except for contributions towards insurance against industrial accidents and occupational diseases. Contributions towards mandatory social insurance are paid by employers to the state insurance funds (the Pension Fund of the Russian Federation.Russia.entered Russia on the basis of a visa and are not granted a temporary or permanent residence permit. Petersburg Enterprise Europe Network . Petersburg | www.ru 101 . the Federal Mandatory Medical Insurance Fund) at the rates established by the federal legislation. are not subject to insurance contributions. the Social Security Fund of the Russian Federation. Doing business in St. Module A Regional Center – St.

related business processes.ru . for example. It established new rules of state regulatory requirements for industrial and consumer goods. In December 2009.Russia. Those 47 Technical Regulations would cover over 60% of the goods circulating within the Customs Union. To summarize. 2007 Belarus. the national legal framework in the area of conformity assurance and supervision over product safety has to be gradually replaced by the Customs Union legal framework. Kazakhstan and Russia have established the Customs Union in the framework of the Eurasian Economic Community (EAEC or EurAsEC). three major co-existing conformity assurance regulatory frameworks in Russia are as follows: 102 Doing business in St. What is the acting legal framework for product conformity assurance in Russia? Back in 1993. the first 24 Technical Regulations out of the 47 top-priority Technical Regulations of the Customs Union have been passed. Specific Technical Regulations relate to specific product categories like.6.6. Petersburg Enterprise Europe Network . unified requirements should be adopted towards all significant product categories marketed in the Customs Union. Product conformity assurance in Russia Information for the current chapter was developed and kindly provided by SGS Vostok Limited. industrial safety etc. until new Technical Regulations are adopted. Example of a generic document can be the Technical Regulation on Electromagnetic Compatibility. as well as for consumer services. whereas standards and norms should be used as a supportive base only. which stipulates the obligatory requirements for various goods to be sold and/or consumed in Russia. GOST R certification implies assessment of product conformity against applicable GOST R standards with regard to safety and quality characteristics by an independent properly accredited certification body.12. Apart from mandatory certification another form of conformity assurance has been introduced called “declaration of conformity”. By January 2012. phitosanitary and veterinary aspects. Russian subsidiary of the SGS Group 4. followed by a number of more specific regulatory documents. The first 10 Technical Regulations should come into force in July 2012. As a result.4. the Russian Government enacted legislation obliging to certify a number of consumer and industrial products and introduced the GOST R system of mandatory certification with the intention of protecting health and safety of Russia’s population.1. the remaining top-priority Technical Regulations of the Customs Union should pass according to the agreed schedule. In view of the Agreement signed on October 6. Petersburg | www. As soon as a Technical Regulation of the Customs Union comes into force. The GOST R system has been complemented by other conformity assurance systems relating to sanitary regulations. A Technical Regulation can be either generic or specific. the Agreement on the circulation of products liable to mandatory conformity assurance within the Customs Union was signed. the Technical Regulation on Safety of Toys or the Technical Regulation on Juice Products from Fruits and Vegetables. Module A Regional Center – St. by early 2012. a Technical Regulation (in Russian: Tekhnicheskiy Reglament) has been the primary document. During the period from 2013 to 2015. The Russian Federal Law No. According to this Law. the relevant national requirements are abolished. which concerns a number of industries. However.doingbusiness.2002 introduced dramatic changes to the former conformity assurance system with the objective to harmonize Russian technical barriers to trade with international practices. buildings. the GOST R conformity assurance system has been still valid.184 on Technical Regulating dated on 27. In 2012.

ru 103 .2010. Technical Regulations of the Russian Federation – applied only when there is no relevant Technical Regulation of the Customs Union.318 dated on 18. Petersburg Enterprise Europe Network . The unified document implies either the Certificate of Conformity or the Declaration of Conformity drafted according with the same unified template in Russia.3. Declaration of Conformity and Certificate of Conformity have equal legal status and are valid throughout the whole territory of the Russian Federation. 2009 and since then regularly updated). 982 dated on December 1.2010. and if there are any relevant regulations pertaining to the product category in question. Sometimes.06.299 dated on 28. Belarus and Kazakhstan. How to find out whether the product is liable to mandatory conformity assurance in Russia? Starting from July 1. then the product is not subject to mandatory verification of conformity in Russia.doingbusiness. Petersburg | www.2.6. This list has been updated on a regular basis. Module A Regional Center – St.317 dated on 18. The other documents to refer to are:    the Single list of products liable to sanitary-epidemiological supervision on the customs border and in the customs territory of the Customs Union approved by the Decision of the Customs Union Commission No. one should consult the acting Technical Regulations of the Customs Union and the Russian Federation. What kinds of permissive documents are there in Russia? There are two forms of conformity assurance in Russia: declaration of conformity (by the manufacturer) and certification of conformity (by a properly accredited certification body being independent from the manufacturer). the Single list of products liable to veterinary supervision in the Customs Union approved by the Decision of the Customs Union Commission No. If the product is not included in the Single product lists of the Customs Union. GOST R system – applied only when there are no relevant Russian or Customs Union Technical Regulations. both forms are possible. 2010 the Single list of products liable to mandatory conformity assessment (verification) in the framework of the Customs Union resulting in unified document issuance has been enacted.05. 4. then one should check the scope of the Technical Regulation to find out whether the specific product is liable to mandatory verification of conformity. the List of products liable to quarantine phitosanitary supervision on the customs border and in the customs territory of the Customs Union approved by the Decision of the Customs Union Commission No. there are special requirements from Russian and Customs Union authorities with regard to conformity assurance against veterinary.Russia. then one should consult two national regulatory documents: the Single list of products liable to mandatory certification and the Single list of products whose conformity verification is to be made in the form of a declaration of conformity (both approved by the Decree of the Russian Government No.2010. The appropriate form of conformity assurance is stipulated by regulatory documents applicable to the product in question. In addition.6. Doing business in St. If the product is not mentioned in any of the product lists and any of the acting Technical Regulations either of the Customs Union or the Russian Federation. Besides.06. phitosanitary. sanitary and industrial safety norms.   Technical Regulations of the Customs Union. 4. The following types of approvals are usually required to prove product compliance in Russia:  Declaration of Conformity with Technical Regulations or Certificate of Conformity with Technical Regulations.

all consumer goods. Conformity assurance and licensing information (relevant Mark of Conformity).Russia. Petersburg | www. When the product is liable to sanitary and epidemiological regulations of the Customs Union. Phitosanitary Ceritificate and/or Import Quarantine Permit. What labelling/marking requirements are there in Russia? According to the Russian Law No.doingbusiness.4. When are Russian permissive documents required? Mandatory verification of conformity is conducted before the product has been launched to the Russian market. Placing a product in retail.ru . Customs clearance at the Russian border. Safety requirements. GOST R Declaration of Conformity or GOST R Certificate of Conformity. such as:      Concluding a sales deal. How and where the product is to be used. Russian labelling has to cover the following items:          Name of a product. Approving documents are required at different stages of doing business in Russia. Commissioning of equipment.1992. exported to and distributed in Russia require Russian language labelling and the sale of imported products without consumer information in Russian language is illegal. Certificate of State Registration may be required. 104 Doing business in St.5.6. label.02. such as Technical Passports or Permits to Use. Module A Regional Center – St. For products subject to veterinary and phitosanitary supervision there may be a requirement to obtain Veterinary Certificate. This concerns both locally produced and imported goods. These are issued by a state authority called Rosstandart based on results of tests performed by accredited State Scientific Metrological Centers. 4. Expiration date. Some other documents may be required at the stage of commissioning for industrial equipment. Advertising and PR activities. The main characteristics and description of the product. both food and non-food. Petersburg Enterprise Europe Network . 4. Other information required by the applicable Technical Regulations. if applicable . Country of origin. This information can be contained on a box. or any other appropriate material concerning the product such as technical brochures or manuals. Name and address of manufacturer or any other contact information for consumers. For some measuring instruments the so-called Pattern Approval Certificates need to be obtained.2300-I “About Consumer Rights protection” dated 07.6.

Number of certificates you have to obtain prior to the targeted permissive document.e. verification methods considerably differ from those applied in the Western Europe or the US. Petersburg Enterprise Europe Network . in twice as cold conditions as in Europe. Your previous experience with Russian certification (i. although not checked in the EU. The reason for that partly lies in the Russian specific climate conditions. How long does it take to get certified? The conformity verification process in Russia can take from a few hours up to several months. Its duration depends on the following factors:       The type of certificate you opt for (e. Time spent upon translation of required documents into Russian language.The following marks demonstrate to the consumer the product’s compliance to the applicable mandatory requirements: Mark GOST R Mark of Conformity Symbol Definition The product is compliant with GOST R standards TR Mark of Conformity The product is compliant with Russian Technical Regulations (TR) CU TR Mark of Conformity The product is compliant with Customs Union (CU) Technical Regulations (TR) 4. you are able to speed up the process by means of manipulating the above-mentioned factors. Therefore. there are some discrepancies.6.6. number and complexity of the tests. and foreign manufacturers face similar requirements for operation in their local market.Russia. Which international certificates are accepted in Russia? Many procedures in the conformity assurance system of Russia and the Customs Union were copied from the West (especially the EU).g. Still.e. partly in the historical background (many of the Russian standards have not been re-viewed since the Soviet times). even if your products are well-known throughout the world and recognized as safe in the EU or any other country.ru 105 .doingbusiness. Module A Regional Center – St. obtaining a permissive document for the very first time commonly lasts longer than subsequent similar applications). Petersburg | www. you still have to prove that they comply with Russian/Customs Union Doing business in St. steel pipes might be subject to 100% testing as opposed to 10-20% sampling in Europe. testing of toys includes verification of formaldehyde and phenol content.7. To cite some examples: in Russia. Your ability to quickly collect the internal documents needed for verification. The need to make tests.6. As a result. 4. i. Quite often. verification process for a 3-year validity Certificate of Conformity for serial production normally takes longer than a certificate valid for just one shipment). transformers have to be tested at -40°C temperature.

Therefore. those exporters who wish to keep control over their Russian marketing strategy and preserve their independence from any local partner are recommended to take care of their products’ conformity assurance on their own. including travel costs. Relevant expenses would usually consist of the following elements:        Cost of samples selected for destructive tests. namely which party bears the costs. Exporters should bear in mind that in case the certificate or declaration is issued under the name of their importer. in the long-term such scheme can save both your time and money.requirements in accordance with locally accepted methodology. freight handling and transportation of samples to the testing laboratory. In fact. if you are planning to regularly ship your goods to Russia. For an international company it means that the declaration of conformity can be signed either by their Russian distributor representing the foreign manufacturer on the basis of a formal contract for conformity assurance purposes. a declaration of conformity can be signed only by a Russian legal entity.ru 106 .6. Labor expenses of the certification body (man-days * daily rate) over processing of your inquiry.6. 4. if your company intends to take part in a tender for a project in Russia. Such cost reduction is due to decreasing overheads. You may be offered discounts in case you wish to obtain a relatively large number of certificates or if you are applying for the same service repeatedly. whereas only a limited number of samples will be tested for serial certification since production audit will certify conformity of the rest. How much would it cost to get certified? The cost for conformity verification services is very much dependable on such factors as complexity of a product. complexity of manufacturing process and type of required permissive document. we recommend correlating the type of certificate with anticipated volume of exports and range of exported goods. or by their Russian agent. number of required samples and number of tests. Although it will require higher single payment versus shipment certification.Russia. exporters need to raise issues related to conformity assurance expenses. Cost of product tests in accredited laboratory. 4. Module A Regional Center – St.10.doingbusiness. Petersburg Enterprise Europe Network . the Doing business in St. verification of documents.8. However. the latter will become their exclusive distributor in the Russian market during the whole validity term of the certificate. In some cases. Be prepared that the certification cost might appear not proportional versus cost of the product to be certified. storage. How to make the certification cost-effective? To make the certification process cost-effective. Overheads. Audit expenses. However. availability of an international certificate might facilitate the procedure of obtaining the appropriate Russian approvals. it might be wiser to opt for a serial certificate valid for a few years. or by their subsidiary located in Russia.9. Expenses for packing. Does it matter whether exporter or importer handles product conformity assurance? When negotiating sales contracts with Russian partners. Thus. Petersburg | www. exporter and importer alike are able to carry out certification and obtain proper permissive documents. Translation services.6. issuance of certificate. Therefore. whole product line will have to be sampled and tested in the framework of a shipment certification. 4. procedures and responsibilities. and their range is quite wide.

Only organizations included in this Register (1010 certification bodies and 2114 test laboratories by the end of 2011) are allowed to issue Certificates of Conformity and Declarations of Conformity recognized in three member countries of EurAsEC. Often. There are about 1500 certification bodies and 3550 testing facilities accredited within GOST R system. not counting other certification systems. In July 2010. there is the risk that once the project wins the bid not taking into account real certification cost. Doing business in St.doingbusiness. namely Russia. Whom to address for Russian conformity assurance? Any approving document is to be issued by an accredited body. Otherwise. your certification body might suggest slight modifications of initial design for a machine or industrial unit in order to lower your certification expenses. textile or telecom). consider whether the future partner is experienced in the kinds of approvals you need and able to guide you in the Russian regulatory environment.Russia. While selecting a certification body. It is reflected in their accreditation scope. Only the largest ones provide integrated services assisting in getting a range of approvals in one place. Petersburg Enterprise Europe Network . In some cases. request for the accreditation certificate and for the reference list. Module A Regional Center – St. your anticipated profit will not be sufficient to cover actual expenses. Unprofessional or fraudulent service might cause headache in the future such as arrest of the shipment at the customs border or costly delays in delivery schedule.ru 107 . Belarus and Kazakhstan.g. 4.11. the Single Register of Certification Bodies and Testing Laboratories of the Eurasian Economic Community (EurAsEC) Customs Union was established.advice is to plan ahead and ask preliminary quotation for certification from a professional body so as to include the cost to your bidding. certification bodies focus on a specific type of approvals or on a specific industry (e. Petersburg | www.6.

4. the Paris Convention for the Protection of Industrial Property.Russia. literary. services. goods. the International Convention for the Protection of Performers.2.4. brand). Regulation of intellectual property in Russia The institution of intellectual property in Russia is governed by Part 4 of the Civil Code of the Russian Federation (hereinafter the “Civil Code”).1. which entered into force on January 1. rights related to copyright (performance right. 2008. scientific.1. right to a production secret (know-how). recording right. right to semiconductor topographies. Russia is a party to numerous international treaties on IP rights. the Madrid Agreement on the International Registration of Trademarks. Producers of Phonograms and Broadcasting Organizations (Rome Convention). and utility models).7. and enterprises (corporate name. replacing a multitude of specialized laws and subordinate legislation.7. Types of protected objects Part 4 of the Civil Code uses the following classification of intellectual properties and equivalent means of individualization:         copyright (literary.1. trademark. license agreement (exclusive or non-exclusive license).1. on-air and cable broadcast right. That being said. right to the results of selective breeding.3. Intellectual property rights and franchising Information for the current chapter was developed and kindly provided by BEITEN BURKHARDT 4. including:         the Patent Cooperation Treaty. industrial designs. publisher’s right to a scientific. the Berne Convention for Protection of Literary and Artistic Works (Berne Convention).ru . works. the original right holder loses the right to independently use the object. and artistic works. Transactions with intellectual property A system of agreements for administration of IP rights is unified for all types of protected objects and includes the following types of agreements:   agreement on alienation of the exclusive right. A foreign legal entity or individual may exercise and seek protection for IP rights in Russia. including computer programs and databases).7. Petersburg | www. Module A Regional Center – St. denomination of origin of goods. the Convention for the Protection of Producers of Phonograms against Unauthorized Duplication of their Phonograms (Geneva Convention).doingbusiness.7. General information on the legal regulation of intellectual property 4. Under an agreement on alienation of the exclusive right to intellectual property. the right holder transfers to the acquirer its exclusive right to the respective object. rights to means of individualization of participants of legal entities.1. right to use intellectual properties as part of an integrated process. 108 Doing business in St.7. the Universal Copyright Convention (UCC). or artistic work). the Protocol to the Madrid Agreement. 4. patent right (patents for inventions. Petersburg Enterprise Europe Network . right of a database producer. provided that the relevant legal requirements are satisfied.

License agreements are divided into two types:   ordinary (non-exclusive) license: the licensee is granted the right to use IP. at the end of which the trademark owner may renew the registration an unlimited number of times. The licensee may grant a third party the right to use IP (a sublicense agreement) only with the licensor’s written consent. pictures. the sublicensee may be granted rights to use IP only to the extent of such rights and means of use that are contemplated by the license agreement for the licensee. provided they meet the criteria for registration stipulated by law. A license agreement shall be executed in a written form and. Under a sublicense agreement. The licensee under a license agreement may use respective IP only within those scope of rights and means of use that are stipulated by agreement. The registration of symbols as trademarks in Russia is performed by Rospatent. no one is entitled to use in civil turnover the trademark Doing business in St. Without the owner’s consent. Petersburg | www. Trademarks and service marks Part 4 of the Civil Code defines a trademark as “a symbol serving to individualize the goods of legal entities or individual entrepreneurs” and a service mark as “a symbol serving to individualize the works performed by legal entities or individual entrepreneurs or the services rendered by them”.7. exclusive license: the licensee is granted the right to use the trademark.2. Pursuant to a license agreement. “Rospatent”) under pain of invalidity. Module A Regional Center – St. Trademarks are registered with the use of the International Classification of Goods and Services. a sublicense agreement is subject to the same rules as a license agreement. Petersburg Enterprise Europe Network . for which the trademark has been registered. be registered with Rospatent under pain of invalidity. Patents. The criteria for registration of a symbol as a trademark are: distinctiveness (possibility to identify products (services) among similar ones) and novelty (trademark shall not be identical or confusingly similar to existing means of individualization). and the licensor does not reserve the right to issue licenses to other parties. with or without indication of the territory.Russia. three-dimensional signs and other designations (or combinations thereof). in which use is permitted. In all other respects. The owner of a registered trademark is granted the exclusive right to use it within the Russian Federation. respective agreement shall also be registered with the Federal Service for Intellectual Property. The owner of a trademark acquires the exclusive right to use the trademark only for those goods and services. If intellectual property is subject to state registration.ru 109 . The Civil Code does not provide for the exhaustive list of types of trademarks and allows for the existence of other types of trademarks. in accordance with which the applicant may select the desired classes of goods and services. Trademarks may be represented by words. the owner of the exclusive right to IP (licensor) grants the licensee the right to use such IP within the limits established by the agreement. and Trademarks (hereinafter.Agreement on alienation of the exclusive right shall be executed in a written form. The right to use IP. The initial term of the trademark registration is equal to 10 years. 4. is not deemed to be granted to the licensee. which is not directly specified in the license agreement.doingbusiness. and the licensor reserves the right to issue licenses to other parties. Legal protection of a trademark in the Russian Federation is provided on the basis of its state registration in accordance with the procedure established by law or under international treaties of the Russian Federation. if intellectual property is subject to compulsory state registration.

etc.g.4. objective form of expression of the work.7. but rather it is intended to facilitate proving authorship and time of creation. including scientific and artistic works. the effective term of the producer's exclusive right is renewed. which protects the form of an author's works. onair broadcasting). The exclusive right of a database producer originates as of the completion of its creation and is effective for 15 years. etc.itself or an identical or confusingly similar trademark. in the form of an image.g. Copyright and related rights Scientific. encyclopedias.g. Use of the symbol of copyright protection – “©” – in conjunction with the name of the author and the year of creation of the work is not a condition for granting legal protection. public performance and other similar form). literary. right of withdrawal) are closely related to the author’s identity and. Upon the expiration of a copyright.doingbusiness. copyright protection is granted by virtue of the very fact of creation of the work as of the moment when the work takes on an objective form. in three-dimensional form.7. therefore. etc. Such registration procedure is voluntary and does not give rise to rights to the computer programs or databases. In accordance with the traditions of the countries of continental Europe.).ru . musical works. The key criteria for granting legal protection are as follows:   presence of a creative component in the work. right of authorship. Petersburg Enterprise Europe Network . and artistic works that are the result of creative activity and exist in some objective form are protected in Russia as copyright objects. in the context of which protection is granted to technical achievements and new industrial developments. The rightholder is able to use the symbol ® notifying of that respective trademark is protected on the territory of Russia.3. the copyright object is considered to be in the public domain and may be freely used by all interested parties. folklore works and informative reports on events and facts are not protected as copyright objects. a work is protected by copyright irrespective of its artistic value.Russia. Personal non-property rights (e. and means of expression. copyright protection lasts for the author’s lifetime plus 70 years after his/her death. it is customary in Russian copyright law to divide copyrights into personal non-property and exclusive (property) rights. on the contrary. 110 Doing business in St. public performance of a work. Part 4 of the Civil Code contains an open-ended list of the types of works that are protected by copyright (literary works. Unlike trademarks and properties protected by a patent. Module A Regional Center – St. Programs and databases can be registered with Rospatent. written or oral form (in the form of a public utterance. An exclusive (property) right (e. audio or video recording. Official documents and their official translations. distribution of a work.. 4.). Copyright objects also include computer programs (protected as literary works). Petersburg | www. At the same time. Industrial property Another institution in Russian intellectual property law is patent law.. cannot be transferred to third parties. right of integrity in a work. No additional formalities must be observed to obtain the right to protection. purpose. staging's. 4. e. but it may serve as a notice that the work is protected. With every update of the database. state symbols and marks. As a general rule. anthologies.) and composite works (including databases.. can be alienated by the author in favor of third parties. In contrast to copyright law. derivative works (translations. At the same time. agreements on alienation of the exclusive right to registered programs and databases must also be registered with Rospatent. audiovisual works.

The terms of patents are as follows:    a patent for an invention – 20 years from the date of submission of the application. Module A Regional Center – St. Processes acting on a tangible object with material resources are protected as method-related inventions. In essence. The criteria for registration of a utility model are only novelty and industrial applicability. Industrial designs may be either three-dimensional or flat. A decision to register an invention. Part 4 of the Civil Code identifies inventions. The exclusive right of a patent holder means that third parties are not entitled to use the patented object without the patent holder’s consent. Exclusive rights to a method are complemented by rights to the product directly manufactured by the patented method (indirect protection). and industrial applicability. with right of renewal for 5 years. The exclusive right from a patent issued by Rospatent is valid only within the Russian Federation. Each year. unless proven otherwise. but differs in that the level of invention requirement does not apply to it.Russia. An invention is granted legal protection if it meets the criteria of novelty. industrial design. This category is largely similar to shape trademarks. utility models. level of invention. a substance. An artistic design solution for an industrial or artisanal product that defines its outward appearance is protected as an industrial design. A utility model is a technical solution relating to a device. as well as being a combination of twoand three-dimensional elements.doingbusiness. the patent is canceled. to use the patented object. other solutions contradicting public interests or humane and moral principles. and industrial designs as patentable objects. The following may be patented as inventions relating to a product:     a device.ru 111 . to which the patent has been issued. a microorganism strain. Number of stages of examination and content thereof depends of type of industrial property being registered. a patent for a utility model – 10 years. with the new product being deemed manufactured by the patented method. If the fee has not been paid on time. although it may be reinstated within three years after the Doing business in St. use of human embryos for industrial and commercial purposes. Petersburg | www. or utility model is taken based on an examination of the application. utility models. A technical solution in any area relating to a product or method is protected as an invention. a plant or animal cell culture. and industrial designs is provided on the basis of patents issued by Rospatent. which means that the author of the intellectual property is able to choose between these two types of protection. The effect of a patent is limited in time and space. a utility model is similar to an invention. An industrial design must meet the criteria of novelty and originality. the patent holder must pay the state fee to maintain the patent in force.patent law aims to protect the essence and content of technical industrial solutions. Petersburg Enterprise Europe Network . methods of modifying the genetic continuity of cells of human embryos. with right of renewal for 3 years. a patent for an industrial design – 15 years. The following may not be covered by patent rights:     methods of cloning a human being. A patent certifies the exclusive right of the party. Legal protection of inventions.

the exclusive right of all right holders to the production secret shall lapse. alteration. Petersburg | www.7.6. Production secrets are understood as information of any kind. The law allows for the possibility of several right holders possessing the exclusive right to one and the same production secret. under a franchise agreement (Russian name "commercial concession agreement" [договор коммерческой концессии]) the franchisor (rightholder) grants to the franchisee. that is not freely accessible to third parties by legal means. including information about intellectual properties in the scientific and technical sphere and information on methods of performing professional activities. Petersburg Enterprise Europe Network . Trade secret protection is deemed established after the following measures have been taken by the owner of the information:      compiling a list of the information that constitutes a trade secret. and cancelation of trade secret protection are governed by the Federal Law “On Trade Secrets”.7. Therefore. for a consideration. the exclusive right to a production secret arises for the right holder as of the establishment of trade secret protection. Right to a production secret (know-how) Relationships arising in connection with the creation and use of production secrets are governed by Part 4 of the Civil Code (Chapter 75).98-FZ of July 29. if the obtained information qualifies as information for which trade secret protection has already been implemented. marking tangible media (documents) containing information that constitutes a trade secret with the words “Trade Secret” and the name of the owner of this information. Relationships relating to the establishment. As soon as the respective information is no longer confidential. a set of territorially exclusive rights. if each of the right holders has obtained the information constituting such production secret independently of the others. that has current or potential commercial value by virtue of being unknown to third parties. the articles of Federal Law No. Honesty and independence in obtaining a production secret means that the party that has become a new owner of the production secret obtained the respective information as a result of entirely independent intellectual activities without the knowledge and use of information belonging to other owners of the production secret.ru . The exclusive right to a production secret remains valid as long as the confidentiality of the information constituting such secret is maintained. a party that has started using the patented object during the period between the cancelation of the patent and its reinstatement retains the right to continue using it free of charge. Franchising According to the Civil Code.doingbusiness. 2004 “On Trade Secrets” governing the procedure for establishing trade secret protection remain in force. listing the individuals receiving access to information that constitutes a trade secret and/or the parties to which such information has been disclosed or transferred. Module A Regional Center – St.expiration of the deadline for paying the fee.5. The exclusive right to a production secret may also arise directly at the time of obtaining the information. regulating relationships with regard to the use of information that constitutes a trade secret by employees on the basis of employment contracts and by contracting parties on the basis of civil law contracts. 4. limiting access to the information that constitutes a trade secret by implementing procedures for handling the information and monitoring the compliance with such procedures. and for which the owner of such information has established trade secret protection. In addition.Russia. At the same time. including the right to conduct 112 Doing business in St. 4. The law rules out the necessity of registering a production secret with state authorities.

The franchisor is secondarily liable for defects in goods provided to the franchisee pursuant to the franchise agreement. services) with the use of trademarks or trade names of other holders. such as the right to use a trade name or the right of access to trade secrets. A franchise agreement shall be registered with Rospatent. Equally. Module A Regional Center – St. such agreement may provide for:       obligation of the franchisor not to grant to third parties the same exclusive rights for their use on the franchisee's territory or to refrain from own similar activities in such territory. obligation of the franchisee to distribute goods (perform works. obligation of the franchisee to negotiate places of location of commercial premises used in the course of exercising of exclusive rights as well as their external and internal design.Russia. The parties to a franchise agreement may agree upon restrictions of their rights thereunder. A franchisor and franchisee are jointly and severally liable for defects in goods and services produced under the franchise agreement. once the franchise agreement expires. render services) at prices set by the franchisor as well as obligation of the franchisee not to distribute similar goods (works. A franchise agreement may also apply to other IP rights. obligation of the franchisee not to compete with the franchisor on the territory covered by the franchise agreement. refusal of the franchisee from entering into franchise agreements with regard to similar exclusive rights with the franchisor's competitors. obligation of the franchisee to distribute goods (perform works. each party is able to unilaterally terminate the agreement by sending a written notice at least six months prior to termination. the franchisee has the statutory right of first refusal to renew the agreement for a new term. In the latter case.doingbusiness. even if the franchisor has no direct control over the franchisee's actions. the respective trademark must be valid in Russia when the franchise agreement is submitted for registration. in accordance with current market demands. However. Petersburg | www. As every franchise in Russia involves a trademark. Petersburg Enterprise Europe Network .ru 113 . Provided that the franchisee duly performed its obligations while the franchise agreement was in effect.business using the franchisor's trademark or service mark. A franchise agreement may be concluded for the term agreed by the parties thereto or for an indefinite term. In particular. Doing business in St. no amendment to or early termination of a franchise agreement shall be valid until registration has been performed. Such validity can be based either on Russian trademark registration or on World Intellectual Property Organization trademark registration with Russia as a designated registrant country. which are not subject to the most of restrictions relating to concerted practices established by the said Federal Law. render services) only within the agreed territory. in this case the franchisor may change the terms. It should be noted that franchise agreements in terms of the Federal Law "On Protection of Competition" are deemed to be so-called vertical agreements. on which the agreement is renewed.

Industrial Production Zones ("IPZs"). Petersburg" will benefit from SEZ status until 2025. competition in the relevant market. nanotechnologies and medical studies).4. energy saving. The TIZ resident is entitled to perform innovation activities inside the TIZ only under the conditions envisaged in such agreement.doingbusiness. Petersburg". the investment recoupment period envisaged. Special economic zones (“SEZ”) in St.8. Petersburg In general. thereby encouraging investment in the territory. General requirements for the resident of the TIZ in St. Petersburg" consists of two platforms which are “Noidorf” and “Novo-Orlovsky”. 31 32 Federal Law On Special Economic Zones in the Russian Federation dated 22 July 2005.ru 114 .and nanoelectronics) and St. In addition to the SEZs considered above.ru.1. complex equipment. Doing business in St.1. this term cannot be extended. etc.1. micro. The application should be supported by a business plan.Russia. databases.rosez. There are various types of SEZ in Russia:     High Technology Incubation Zones ("TIZs"). TIZ in St. which benefits from a preferential regime for conducting business on that territory. 4. 4. Petersburg Enterprise Europe Network . A special SEZ Council decides on whether the applicant qualifies as a TIZ resident based on a scoring system that takes into account. SEZs are selected by the Russian Government on a tender basis from proposals submitted by the regional authorities. existing TIZs in Russia are located in the Moscow region (Dubna (nuclear technology. Module A Regional Center – St. Zone of Tourism and Recreation ("ZTR"). The territory of the TIZ "St. The TIZ "St. Petersburg (computer programs. The term for which a territory will benefit from a SEZ status depends upon the type of business activity for which the SEZ status was granted. Petersburg The benefits of the TIZ only apply to foreign investors upon the creation of a Russian subsidiary registered on the territory of the TIZ "St. Petersburg | www. amongst other things. According to the SEZ Law. other legislation has been enacted with respect to specific free economic zones. as only Russian legal entities may make an application to become a TIZ resident. An example of such legislation is the Federal Law On the Special Economic Zone in the Kaliningrad Region of 10 January 2006 and the Federal Law On the Special Economic Zone in the Magadan Region of 31 May. 199932.8. aerospace and civil engineering) and Zelenograd (microelectronics. The qualifying applicant enters into an investment agreement with the Russian ministry. Port Zones ("PZs"). More information on SEZ development can be found at www. Petersburg Information for the current chapter was developed and kindly provided by DLA Piper The SEZ Law31 states that an SEZ is a Russian territory. this may be for up to 20 years for the hightech industry and health and recreation industry or up to 49 years in respect of investment in transport infrastructure. Tomsk (new materials.8. Russian legal entities interested in participating in the TIZ should make an application to obtain the status of a TIZ resident. medicine). the prior expertise of the applicant or its founder in the relevant industry.

The said exemption does not apply in relation to water and air transport vehicles.4. 4. Petersburg. 4.ru 115 . Petersburg enjoy full exemption from property tax in respect to the property located inside the TIZ which is used inside of the TIZ and accounted for on the balance of the TIZ resident. Petersburg Apart from tax incentives St. The TIZ territory in St.3.4. Petersburg. Petersburg supports investors by providing the state guarantees of St. Tax incentives for the TIZ residents in St. Petersburg TIZ residents in St. corporate profits tax and other taxes. raw materials. any exclusions and limitations. The reduced tax rate is applicable during the period when the TIZ "St.1.8. Doing business in St. Petersburg". Module A Regional Center – St. into the territory of the Customs Union free from duties and taxes conditional upon the sufficient processing of the goods. the Government of St. Profits tax rate paid to the budget of St. R&D costs (including those that were not successful) may be deducted in the tax (accounting) period when they were actually incurred without any limitation in size.8. Petersburg is highly attractive for the investors because of the other benefits it may offer to investors.1. The TIZ residents have a right to apply accelerated depreciation in relation to their own fixed assets by setting a multiplier (maximum of 2).e.doingbusiness. 2017 TIZ residents (registered before 2012) are allowed to import their products. Other tax and customs incentives for the TIZ residents in St.5% for the TIZ residents in St. The TIZ residents are exempt from the transport tax for a period of 5 years starting from the date of the transport vehicle registration in St. Kazakhstan and Belarus) that are imported into TIZ are also exempt from export duties. The TIZ residents in St. providing tax deferrals and low land rent rates. Petersburg In addition to the above tax benefits. Specifically. The said customs regime envisages an exemption from customs VAT. customs duties and non-tariff regulation in respect to foreign goods (equipment. Petersburg is reduced from 18% to 13. The TIZ residents in St. land tax. including regional tax laws or any tax laws of the municipal districts during the term of the investment agreement. Other benefits for TIZ residents in St. the TIZ residents also benefit from a low rate of social insurance contribution rates (14% (till 2017) and 28% (starting from 2019) compared to the general rate of 34%). components. The TIZ residents who have built any real estate on the rented land plot have a right to buy the land plot lying under the real estate at discounted rates. Petersburg benefit from a number of tax concessions with regard to property tax. Petersburg" exists (i. Petersburg | www.1.Russia.2. Until the 1st of January. which were manufactured within the TIZ using imported raw materials. till 2025). the customs regime of the free economic zone functions on the territory of TIZ "St. Petersburg. The tax position of TIZ residents cannot be worsened by any Russian tax laws. Petersburg contains all the necessary infrastructure. Goods produced within the Customs Union (Russia. Petersburg Enterprise Europe Network . Petersburg also benefit from an exemption from the land tax for the period of 5 years starting from the registration of the property rights for that land plot.8. Unlike other SEZ residents. construction materials) imported to the territory of the TIZ.

9. 4. St. A series of high-profile PPPs have already been launched in Moscow. Petersburg | www. Legal Framework PPP projects that involve the federal authorities are implemented on the basis of the Federal Law No FZ-115 'On Concession Agreements' of 21 July 2005 as amended ("Concession Law"). 4.2. sea ports. waste treatment (the Waste treatment facility in St. Petersburg in Public Private Partnerships' of 25 December 2006 ("St. Petersburg and other regions of Russia. Petersburg No 627-100 'On the Participation of St. the Russian PPP legislation is still evolving. than is usually expected in Europe. Regional and local PPP projects may also be carried out on the grounds of the Concession Law or special regional laws on PPPs that usually provide more flexibility and comfort to investors. through increasing foreign investment) the authorities need to be prepared to relinquish greater control of the procured public services/infrastructure to the private sector. and various cultural. the lack of experience implies the intention of the public authorities to have a greater control over the PPP projects. In particular. and is considered to be the most effective one.g. the Water Treatment Station in Rostov-on-Don). airports. Petersburg.9. PPPs are aimed at increasing the quality of the public services/infrastructure and efficiency of private gains through the combination of public and private financial and management instruments. together with a series of model concession agreements for different types of infrastructure. tender and selection procedure. Petersburg). the Road interchange between Moscow ring road and High speed motorway "M-1: Belarus" in Moscow). To reap the full benefits of PPP (particularly. the underground. Module A Regional Center – St. Petersburg. public authorities show a constant growth of interest in PPPs. sporting and tourism facilities. Petersburg).g.doingbusiness. the Western High Speed Diameter Motorway and Pulkovo Airport in St. Regional laws on PPPs are adopted in the majority of the regions of Russia. Concession Law The Concession Law applies to thirteen types of infrastructure including. motorways. amongst others. the Law of St. In practice. The Concession Law includes provisions on:     entities involved in the concession granting process. As the need for the improvement of public infrastructure and services in Russia is enormous.4. Within the last few years more and more PPP projects have been launched in the following sectors: water treatment (e. Unlike many European countries where PPP legislation is well established and numerous PPP projects have been successfully implemented. Petersburg Enterprise Europe Network . Petersburg PPP Law") was among the first regional laws on PPP.ru 116 . concession facilities.1."PPP") is a cooperation of a public authority and private investor through a long-term agreement in areas of services traditionally provided by the public sector.Russia. pipelines.9. the Northern Water Treatment Plant in St. communal services. roads. The largest number of projects carried out relate to transport infrastructure (e. and Doing business in St. education (the construction and operation of buildings for educational purposes in the Pushkinskiy district of St. railways. Public private partnerships and infrastructure development Information for the current chapter was developed and kindly provided by DLA Piper A public private partnership (hereinafter . concession agreements.

these relations are to be governed by the detail of the concession agreement itself once concluded. Module A Regional Center – St. Petersburg Enterprise Europe Network . The Law on Concessions does not provide for the possibility for the winner of the tender to negotiate changes in the concession agreement. even if bidders are requested to present as a part of their bids a mark-up of a concession agreement. street lightning and others). which it then owns and operates for a period specified in the contract. Following the expiration of that period the facility is returned to the public body. Usually the tender documentation contains a draft of the concession contract that is supposed to be executed with the winner of the tender. Based on the practical needs of the investors and financing institutions an exception to this rule was introduced with regard to the concessions on social facilities and amenities (such as water and waste treatment plants. concessionaire. certain guarantees for the private entities and public bodies. 33 In a Build-Own-Operate-Transfer ("BOOT") project the private entity carries out the capital investment in construction of the facility.doingbusiness.ru 117 .9. Doing business in St. BOOT33) are not provided for under the Concession Law. but the aforementioned restrictions are a significant hindrance when it comes to structuring the security package and finding lenders. the Concession Law is flexible and does not impose rules on how relations between the public and private bodies will be conducted during the concession period. Security As a general rule the Concession Law provides against the possibility of a concessionaire to pledge rights under the concession agreement or to assign the rights during the construction stage of a concession. the private entity builds/rehabilitates the facility and upon completion transfers the ownership of the facility to the public body. According to the Law on Concessions within 5 days from the date of announcement of the winner of the tender the organizer of the tender provides the winner of the tender with the concession contract that shall be signed by the winner of the tender within a certain time specified in the tender documentation. The concessionaire is entitled to pledge his/her rights under the concession agreement to a lender. energy supply facilities.3. 4. the winner of the tender may be still bound to the published version of the concession contract and exposed to potential liability if unwilling to sign it in its published form with very limited carve-outs. Petersburg | www. Generally. and the grantor of the concession enter into a direct agreement stipulating the rights of each party in case the concessionaire does not meet his/her obligations under the financial or concession agreement. the private entity takes over the operation and maintenance of the facility under a lease back from the public body for the contract period. With reference to the above. the main ones are summarized below:  Ownership of the Facility The Concession Law only relates to the PPP projects constructed as Build-Operate-Transfer ("BOT") and Rehabilitate-Operate-Transfer ("ROT") models. However.Russia. Other PPP models that incorporate the ownership of the real estate object by the private entity (for example. Thereafter. Under these models. the Concession Law contains numerous shortcomings. Negotiation of the contract Concession agreements are granted through the tender procedure which is defined in the tender documentation. The lender. In compliance with the Concession Law the rights under the concession agreement may be pledged only to a single lender (independent of the existence of any other financing parties). who provides financing for the fulfillment of the concessionaire's obligations under the concession agreement.  Alternative security instruments are available in Russia.

Module A Regional Center – St. which is regarded as one of the most advanced in Russia. Build-Own-Operate ("BOO"). the St. Russian policy favors the jurisdiction of the Russian courts for the resolution of contractual disputes. for example through the introduction of toll roads. the authorities usually undertake the obligation to indemnify the investor in case such a risk arises. Petersburg PPP Law was enacted in response to the shortcomings of the Concession Law and is aimed at better facilitating the St. which improve on the Concession Law. tax.4. These provisions usually imply additional obligations on the investor in the course of the implementation of the PPP project.Russia. are as follows. Dispute resolution procedure. There is no legal prohibition to pledge the project's assets.9. In addition to the greater variety of forms of PPP directly stipulated. 118 Doing business in St. Usually the conditions under which the private partner is entitled to pledge/assign its rights under the PPP agreement. Political risk and state intervention. Limitation of possible amendments shall be established in the tender documentation. Petersburg PPP Law. The principal features of the St. negotiations shall be commenced and the PPP agreement signed within 20 days. are stipulated in the project agreement and lenders direct agreement.   4. as well as the rights to the project assets. and the financing organizations. is 6 months.  There is no restriction on the use of PPP models under which the private entity retains ownership of the facility. Petersburg to establish other forms of PPP if required. However. The most common ones that shall be considered by an investor are listed below:       Market volatility and currency risk.4. Petersburg PPP Law The St. Geographical concentration of major projects. or to pledge or assign the rights under the PPP agreement as part of the security package. The St. Petersburg | www. Rehabilitate-Own-Operate-Transfer ("ROOT") and others. Provisions of laws governing budget.5. most international PPP participants would prefer dispute resolution to be conducted through recognized international arbitration institutions. as usually established in the tender documentation. Petersburg PPP Law directly provides for negotiations between the city and the winner of the tender to discuss possible amendments to the draft of the PPP agreement. there are additional issues that differ from project to project. According to the legislation and general practice. for various reasons. and in any case shall not change the provisions of the bid of the winner of the tender. Petersburg PPP Law entitles the Government of St. provided as a part of the tender documentation. Petersburg Enterprise Europe Network . Other Issues/Risks in PPP field Notwithstanding the notable limitations of the Concession Law. Petersburg PPP Law directly establishes 8 forms of PPP. licensing and antimonopoly regulation.9.doingbusiness. Petersburg administration's pipeline of PPP projects. The potentially negative attitude of consumers being charged for services that used to be free. the private partner. St. The risk is usually taken by the investor. In practice the period for negotiations and the execution of the PPP agreement.ru . These conditions underlie negotiations between the public authority. The St. There is greater flexibility for the private entity to negotiate and mark-up the PPP agreement. The law states that in the case where the tender documentation does not provide for a larger period of time. among which are Build-OwnOperate-Transfer ("BOOT").

VEB is a state owned banking institution tasked with promoting Russian infrastructure and in particular. The planned volume of the SIF in 2012 exceeds RUB 65 billion (which is approx. it may be noted that in a number of current projects the public body did opt for internationally recognized arbitration. and the Moscow to St. an investment project must:      be performed through concessions.Russia.1 billion). comply with public sector priorities. energy.ru 119 . With the help of other interested organizations. To qualify for SIF support. The investor. PPP Finance Institutions In November 2005 the regulations on the State Investment Fund ("SIF") were adopted by the Russian government. The maximum amount of investment to be made from the SIF is limited with the amount established in the federal budget for the corresponding year and shall not exceed 75 per cent of the project capital costs for federal projects. with supporting and developing PPP projects. standardize and promote PPP practices in Russia. the two institutions will also consider setting up a unit to help manage the project preparation process for PPPs in infrastructure. signalling another move towards PPP. have a value in excess of RUB 5 billion (which is approx. VEB is currently considered as one of the institutions that will play a key role in the further development of Russian PPPs. the Federal Law No FZ-82 'On the Russian Bank of Development' of 17 May 2007 set rules and principles of the activities of Vnesheconombank ("VEB"). Petersburg | www. In May 2007. The SIF is intended to be one of the federal primary PPP funding sources and to act as a catalyst in attracting private investment. qualifying for SIF support. and breakeven. a move that could be extremely beneficial in attracting investors. The European Bank for Reconstruction and Development and VEB have agreed to explore the possibility of co-financing the projects in certain areas and in February 2008 a memorandum of understanding in this regard was signed. The fund expects to invest in PPP projects such as Pulkovo Airport. energy and municipal services and those with significant environmental and energy efficiency potential. generate social benefits. Petersburg Enterprise Europe Network . In this regard a PPP task force has recently been created within VEB to study. or in the sectors of transport.6 million) for regional and local projects. USD 16. In August 2009. Petersburg toll road. Other investors in the fund include the IFC (USD 100 million).doingbusiness. regional investment project must also be financed from the regional budget to an amount not less than that estimated for the regional/municipal co-financing of investment projects by the Ministry of Regional Development. In addition to the above. 4.6.Also. USD 2. shall prove that the implementation of the project is impossible without SIF investments. Doing business in St. Module A Regional Center – St. and 50 per cent of the project capital costs for regional projects. The priority sectors under the agreed arrangements include transport infrastructure.9. the EBRD (USD 100 million) and the Kazakh development institution Kazyna Capital Management (USD 30 million) as well as private sector investors. or engineering infrastructure. USD 166 million) for federal projects. VEB signed a formal agreement with a private infrastructure fund to become the fund's joint manager and cornerstone investor with a commitment of USD 200 million. and RUB 500 million (which is approx.

o If the land plot is granted without a tender. the person can be granted either ownership or lease rights to the land depending on what has been put up to tender. Petersburg | www.4. Petersburg (hereinafter . Petersburg or the land not delimited between St.doingbusiness. o If the land plot is allocated without a tender then only the lease rights to the land plot can be acquired unless otherwise stipulated by an international agreement ratified by the Russian Federation.the Entity) may acquire the rights to the land (a) owned by the Russian Federation (hereinafter . Petersburg Information for the current chapter was developed and kindly provided by DLA Piper An entity interested in receiving rights to state-owned land in St. if the land plot is allocated without a tender. its formation. the procedure is initiated by the Entity and the land plot is chosen during the prior approval of the allocation of the object as a part of the procedure for the allocation of the land plot. In both the cases when the land plot is granted for lease. is determined on the basis of the valuation report prepared during the procedure of the allocation. the Entity may acquire the long-term lease rights or the title of ownership to the land plot under the building erected.   34 The price or the amount of the lease payment is determined either by choice of the highest bid proposed in closed envelopes or by increasing the initial price or lease payment by announcing the new price (which is not more that 1 to 5 per cent from the previous price) during a tender until only one participant is left who is ready to buy or lease the land plot at the newly announced price. Initiative o The tender is initiated by the authority. The choice of the land plot. Obtaining rights to state-owned land in St. and without a tender. and the preparation of the documentation is done by the competent authorities and no action is required from the Entity before applying for the participation in a tender. after the commissioning of the building and the state registration of the title of ownership to it. 120 Doing business in St.the City land). We would like to draw your attention to the fact that the lease payment in the contracts concluded as a result of the allocation of the land plot without a tender is regarded also as an investment condition.the Federal land) and (b) owned by St. Petersburg and the Russian Federation (hereinafter .10. In practice this means that the lease payment for the whole period of time indicated in the lease agreement should be paid as a full sum even if the construction has been realized earlier than was stated in the contract and therefore the lease period was shorter. Module A Regional Center – St. Determination of the price or the amount of the lease payment o The price or amount of the lease payment in the contracts is concluded as a result of a tender and is the highest price which has been proposed during the conduct of the tender but not less than the initial price. Petersburg Enterprise Europe Network . The choice of the procedure depends on the following principal issues:  Type of rights o Subsequent to the results of a tender.34 o The amount of the lease payment.Russia. The rights to the land plots from the state-owned land can be granted:   at a tender.ru .

 4. A distinctive feature of the competition is the fact that the state sets certain conditions (obligations) on the use of the land plot. o Establishment of the boundaries of the land plot. 1813. Module A Regional Center – St. The Address Plan contains a list of land plots (sites) which shall be put for tender. Petersburg | www.35 Besides. the winner of the competition should not only make the highest bid. This Address Plan must be approved by the Chair of the Construction Committee and the Vice-Governor of St. Doing business in St.808.ru 121 . Petersburg responsible for such matters. Address plan For the purposes of the preparation of documents required for the allocation of the land plot for construction at a tender (without preliminary approval of the place of the property allocation). at least two or more) from investors regarding a specific land plot.Russia.doingbusiness. meaning that the land plot has fixed boundaries. Reconstruction and Adaptation for Modern Use. each year the Investment Department of St. Procedure for adopting a decision on the allocation of the land plot for construction at a tender The land plots available for tender procedures may. The tender may be held in the form of an auction or a competition. but should also undertake the obligations to meet the conditions of the competition. among others.e. Petersburg dated 30 December 2010 (last amended 2 August 2011) No. if the land plot is allocated without a tender. Petersburg when Making Decisions on the Allocation of the Immovable Property for the Construction.1. has undergone State Cadastral Registration in the Real Estate State Cadastre and has been assigned a cadastral number. The preparation of the land plot for tender is carried out by the appropriate state authorities. Establishment of the boundaries and cadastral registration of the land plot o The land plot that is put up to tender is already formed. Petersburg Enterprise Europe Network . Petersburg (during the last month of each calendar year) prepares and provides to the Committee on Construction the Address Plan for the preparation of documents for the tender procedures.10. and the land plots located within the 35 Item 11 article 30 of the Land Code of the Russian Federation. The existence of town-building documentation and other limitations The land plot is granted only at a tender if the drafts of the territory planning and the drafts of the territory survey have been elaborated in regard to the territory where the requested land plot is located. 2. include both the land plots located within the territories for which the drafts of territory planning and drafts of territory survey have already been developed and approved. An auction is a more widespread form of tender. Unlike at auction. the land plot is granted only at a tender in the event there is more than one application (i. approved by the Decree of the Government of St. as well as by the Regulation on the Order of Cooperation of the Executive Authorities of St. Acquisition of ownership or lease rights to the land at a tender The acquisition of the rights to state-owned land at a tender is regulated mainly by the Land Code of the Russian Federation and the Rules on the Organization and Conducting of the Tender on Sales of the Land Owned by the State or Municipals and on the Rights for the Conclusion of the Lease Agreement in Regard to the Same Land approved by the Decree of the Government of the Russian Federation dated 11 November 2002 No. The major steps for the acquisition of a land plot at a tender are the following: 1. and the State Cadastral Registration in the Real Estate State Cadastre are undertaken by the Entity which is a time-consuming procedure.

the Construction Committee shall direct an inquiry to the Department of Rospotrebnadzor for St.territories for which the drafts of the territory planning and territory survey have not been approved yet. For instance. and submit the received response to such an inquiry to the Investment Department of St. Petersburg regarding the land plot and reports are then transferred to the Construction Committee for the purpose of the preparation of the draft Decree of the Government of St. if any. The Investment Department of St. Use and Protection of Cultural Properties (which reviews whether the land plot or real estate on it. as well as the time terms for the issuance of a town-planning map of the land plot.Russia.). o and several other committees of the St.). o the Committee on City Property Management (which reviews encumbrances of the land plot and the properties located on it.). Petersburg | www. Petersburg. o the Committee on Energy (which reviews the technical conditions for connection to utilities.  For the purpose of the preparation of documents regarding the land plots. the Investment Department procures the performance of cadastral works and state cadastral registration of the land plot. if any. The latter issues a report which shall include information on the permitted use of the land plot and functional purpose of the property to be constructed on such a land plot. Upon the receipt of such a notification. are regarded as cultural heritage properties or whether such properties are located within the borders of the protection zone of properties of cultural heritage. Petersburg Enterprise Europe Network . as well as a review of the applicable limitations to construction and other works on such properties).ru . Petersburg of the reports of all the government authorities mentioned above (which shall be prepared by the relevant government authorities within 10-14 business days in accordance with applicable legislation). such inquiries are sent to: o the Committee on Land Resources and Land Development (which reviews factual information about the land plot. its address. Petersburg directs inquiries to a number of government authorities in order to obtain their reports. etc. for which the drafts of territory planning and territory survey have not been approved. total area. Petersburg Government. Module A Regional Center – St. Petersburg on the necessity to obtain information from the Department of Rospotrebnadzor for St. etc. taking into account the applicable town-planning limitations. All of the documents gathered by the Investment Department of St. Petersburg on the allocation of the real estate for construction purposes at tender proceedings. Petersburg on the compliance of the planned use of the targeted land plot with the sanitary rules established by the Federal Law "On sanitary-epidemiological wellbeing of the population". The Investment Department of St. Petersburg of the Decree on the sale of the land plot at tender or sale at tender of the right to execute the lease agreement of the land      122 Doing business in St. Upon the obtainment by the Investment Department of St. Petersburg directs a request to the Committee on Town-Planning and Architecture. as well as requests from the Committee on Town-planning and Architecture issuance of the town-planning map of the land plot. etc. Petersburg. Petersburg to the land plot and real estate located on it. and the evaluation of the market value of the real estate or complex of rights to the real estate. allocation of zones with special regime of treatment on the land plot. the Investment Department of St.doingbusiness. as well as information on the registration of ownership title of St. o the Committee on State Control. data on any real estate objects located on the land plot. Petersburg also directs a notification to the Construction Committee of St. Upon the adoption by the Government of St.

plot for construction purposes, the Construction Committee directs a package of documents required for the organization and performance of the tender to the organizer of the tender. 3. Results of the tender The results of the tender (auction or competition) are formalized in the minutes on the results of the tender which shall be signed by the tender organizer, the auctioneer (when the tender is held in the form of an open auction) and the winner on the date of the tender. 4. Conclusion of a land sale-and-purchase contract or a land-lease contract The signed and effective minutes on the results of the tender serves as the grounds for the conclusion of the land sale-and-purchase contract or the land-lease contract between the winner and the appropriate authority.36 5. State registration of the lease or ownership rights in the Unified State Register of Rights to Immovable Property and Transactions Thereof by the Department of Federal Services on state registration, cadastre and cartography in St. Petersburg.

4.10.2. Acquisition of lease rights to the land without a tender
The procedure for the acquisition of City Land37 is regulated in detailed form under the following major acts:   the Law of St. Petersburg dated 26 May 2004 (last amended 04 July 2011) No. 282-43 “On the procedure of the allocation of immovable properties owned by St. Petersburg for construction and reconstruction” (hereinafter - the St. Petersburg law); the Regulation on the Order of cooperation of the Executive authorities of St. Petersburg when making decisions on the Allocation of Immovable Properties for the Construction, Reconstruction and adaptation for modern use, approved by the Decree of the Government of St. Petersburg dated 30 December 2010 (last amended 2 August 2011) No. 1813 (hereinafter the Decree).

The principal stages for providing land plots from the City land for construction without a tender in accordance with current legislation are the following: 1. The Investor applies to the Construction Committee of St. Petersburg with an application for the allocation of a land plot. 2. If there are no grounds for denial of the application, the Construction Committee of St. Petersburg forwards the application to the Investment Department of St. Petersburg within 5 (five) business days. 3. The Investment Department of St. Petersburg directs inquiries to a number of government authorities in order to obtain their reports on the possibility of the allocation of a land plot. For instance, such inquiries are sent to:   the Committee of Town-Planning and Architecture (which reviews various town-planning limitations, the permitted use of the land plot, functional purpose of the object of planned construction, etc.), the Committee of Land Resources and Land Development (which reviews factual information about the land plot, its address, total area, data on any real estate located on the land plot, allocation of zones with special regime of treatment on the land plot, etc.),

36

In regard to City land it is the local agency of the Committee on City Property Management; and in regard to the Federal land - the appropriate Territorial department of the Federal Agency for State Property Management of St. Petersburg. 37 Although the possibility of allocation of the land plot without tender is established in the Land Code, the procedure can be factually realized only in regard to the City land as soon as there is no competent authority for Federal land. Doing business in St. Petersburg Enterprise Europe Network - Russia, Module A Regional Center – St. Petersburg | www.doingbusiness.ru

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the Committee of City Property Management (which reviews encumbrances of the land plot and the real estate located on it, if any, as well as information on the registration of ownership title of St. Petersburg to the land plot and real estate located on it, etc.), the Committee on State Control, Use and Protection of Cultural Properties (which reviews whether the land plot or the real estate located on it, if any, are regarded as cultural heritage properties or whether such properties are located within the borders of the protection zone of cultural heritage properties, as well as a review of applicable limitations to construction and other works on such properties), the Committee on Energy (which reviews technical conditions for connection to utilities, etc.), and several other committees of St. Petersburg Government.

Upon the obtainment of reports from the abovementioned committees (which shall be prepared by relevant government authorities within 10-14 business days in accordance with applicable legislation), the Investment Department of St. Petersburg directs such reports to the Construction Committee. 4. The Construction Committee, within five business days from the receipt of the abovementioned reports, adopts a decision on the denial of the allocation of the land plot or on preparation of the memorandum to the attention of the Vice-Governor of St. Petersburg on the possibility of the preparation of the draft Decree of St. Petersburg on the allocation of the land plot for construction under investment conditions. 5. The Vice-Governor solicits the approval of the Governor of St. Petersburg. 6. The Governor of St. Petersburg may issue an approval and give orders regarding further action to be implemented by authorized government authorities. In pursuance of such orders the Investment Department of St. Petersburg:   directs an inquiry to the Committee on Land Resources and Land Development for the issuance of the plan of allocation of the land plot on the cadastral map of the territory; sends to the competent authorities of St. Petersburg a notification on the necessity to inform the population on the possible provision of the land plot for construction (this is done in accordance with the requirements of the law of St. Petersburg No. 400-61 dated 5 July 2006 “On the order of organization and conduct of public hearings and informing the population of construction/town-planning activities in St. Petersburg”); directs to the Construction Committee the plan of allocation of the land plot on the cadastral map and notifies about the necessity to obtain information from the Department of Rospotrebnadzor for St. Petersburg. Upon the receipt of such notification the Construction Committee shall direct an inquiry on the ecological conditions of the use of the land plot to the Department of Rospotrebnadzor for St. Petersburg in accordance with the Federal Law “On the sanitary-epidemiological wellbeing of the population”.

7. Upon receipt of the replies to the abovementioned inquiries, the Construction Committee provides for the signing of the Act on the allocation of the land plot by representatives of the Committee on Land Resources and Land Development, the Committee on State Control, the Use and Protection of Cultural Properties and the Committee on Town-planning and Architecture and approves the Act on allocation of the land plot itself. The Act on allocation of the land plot is subject to official publication. The Act is regarded as a decision on the preliminary approval of the place of allocation of the property and serves as the basis for the further adoption of the decision on the provision of the land plot for construction and stays in effect for 3 years. 8. On the basis of the issued Act on the allocation of the land plot, the Investor shall perform the requirements of effective legislation, including cadastral works and state cadastral registration

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Doing business in St. Petersburg Enterprise Europe Network - Russia, Module A Regional Center – St. Petersburg | www.doingbusiness.ru

of the land plot, the evaluation of the market value of the real estate or complex of rights to the real estate and obtainment of reports from a number of Committees of St. Petersburg Government (including the Committee of Land Resources and Land Development, the Committee of City Property Management, the Committee of State Control, the Use and Protection of Cultural Properties, and several others as listed in the Decree of St. Petersburg Government No.1813 dated 30 December 2010). 9. Having fulfilled all the requirements listed in item 7 above, the Investor applies to the Construction Committee for the issuance of a Decree of St. Petersburg on the allocation of the land plot for the construction under investment conditions. 10. Unless there are grounds for denial of the Investor's application, the Construction Committee prepares a draft Decree of St. Petersburg on the allocation of the land plot for construction under investment conditions and refers it to the St. Petersburg Government for enactment. 11. Upon adoption of the Decree on the allocation of the land plot for construction under investment conditions by the St. Petersburg Government, the Construction Committee submits the necessary documents to the Committee of City Property Management for execution with the Investor of the lease agreement under investment conditions. The contract on the land plot lease is concluded for the period of construction. 12. Upon the signing of the lease agreement, the lease rights to the land shall be registered in the Unified State Register of Rights to Immovable Properties and Transactions Thereof by the Department of Federal Service on state registration, cadastre and cartography in St. Petersburg.

4.10.3. Requirements on the location (zoning)
When investor considers to obtain rights to a land plot for the purpose of construction, it is necessary to take into account the applicable zoning requirements which are contained in the following documents:  The Master Plan of St. Petersburg approved by the St. Petersburg Law dated 22 December 2005 No. 728-99 (hereinafter referred to as "the Master Plan"). This determines the directions for the town-planning development of St. Petersburg and bases the arrangement and distribution of the functional zones. The Rules on Land Use and Territory Development in St. Petersburg approved by St. Petersburg Law dated 16 February 2009 No. 29-10 (hereinafter referred to as "the Rules"). These clarify the function of a territory determined by the Master Plan and establish the types of permitted use and the ultimate parameters of the permitted construction/reconstruction for land plots that are located within the boundaries of territorial zones. The drafts of territory planning (hereinafter referred to as "the DTP") and the drafts of territory survey (hereinafter referred to as "the DTS") to be elaborated with regard to the parts of a territory of St. Petersburg and to be approved by the Decree of the St. Petersburg Government. The DTPs determine the density and the parameters of development of territories of quarters, the total area of the sites for capital construction for specified designated purposes, and the characteristics of development of social, transport maintenance and technical-engineering systems required for the development of the territory. The DTSs are elaborated to establish the sizes and boundaries of the built-on and vacant land plots and clarify the design solutions valid in DTPs for specific land plots.

As of today, only a part of the territory of St. Petersburg is covered by the elaborated DTPs and DTSs. When there is no elaborated DTP and DTS in regard to the territory in the frames of which the considered land plot is situated, the DTP separately or together with the DTS is elaborated by the

Doing business in St. Petersburg Enterprise Europe Network - Russia, Module A Regional Center – St. Petersburg | www.doingbusiness.ru

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Petersburg and the regimes of land use within the boundaries of such zones and on amending the St.39 Such requirements are regarded for items of cultural heritage (newly founded cultural heritage properties). The DTP (together with DTS) is developed on the basis of the statement of work received from the Committee of Town-Planning and Architecture. The demolition of items of cultural heritage is prohibited.  2. The information on items of cultural heritage (including the subject of the protection) is contained in the state register: in the federal register with regard to items of cultural heritage of federal meaning. 39 St. Petersburg: 1. For the purpose of the safety for the items of cultural heritage a special order of use for land plots located within the boundaries of such zones has been established (the regime of the zone). St. Petersburg Government. Federal Law No. Petersburg Law N. Petersburg. Petersburg and their regimes are described in the St. In actual practice.Russia. reconstruction and refurbishment in both zones is limited by the height of the buildings. coordination and approval by the Decree of St. 820-7 “On the boundaries of zones for the protection of items of cultural heritage on the territory of St. construction and ground work shall be approved by the Committee on State Control. the Use and Protection of Cultural Properties and the St. Module A Regional Center – St.820-7 “On the boundaries of zones of protection of items of cultural heritage on the territory of St. Petersburg Law No. construction plans shall meet and comply with the requirements stipulated in the effective legislation on the protection of items of cultural heritage.doingbusiness. in the regional register with regard to items of cultural heritage of regional meaning and in the register of newly founded items of cultural heritage with regard to such properties. St. 515. 73-FZ “On items of cultural heritage for the people of the Russian Federation” dated 25 June 2002. and provide the following peculiarities to be taken into account while locating the construction on the territory of the historically formed districts of St.ru . Petersburg Law No. the overall period for the DTP (and DTS) development. Petersburg”. Petersburg Law dated 19 January 2009 No.Entity. Use and Protection of Cultural Properties. their territories and zones for the protection of items of cultural heritage. façade configuration. The boundaries of the protective zone and the zone of regulated development of central regions of St. structure and content of the documentation of territory planning approved by the Order of the Committee of Town-Planning and Architecture of St. 126 Doing business in St. Petersburg Law “On the Master Plan of St. Petersburg Enterprise Europe Network . Petersburg) represent the territories adjacent to the land plots on which the items of cultural heritage are located. In certain cases. The zones for the protection of items of cultural heritage (the protective zone and the zone of regulated development of the central regions of St. all town planning. The above law specifies the following material conditions for land plot use and the limitations within the zones for protecting items of cultural heritage:   new construction is prohibited in the protective zone and limited in the zone of regulated development in the central regions of St. takes from half a year to 8 months.29-10 “On the Rules on Land Use and Territory Development in Saint-Petersburg” dated 16 February 2009. Only the following work may be performed with regard to items of cultural heritage (all of these are intended for the safety of 38 Item 4 of the Instruction on the order of elaboration.38 The development of the DTP (together with DTS) is carried out by a specialized organization under a contract within the time periods agreed on in the contract. Petersburg | www.333-64 “On the defense of items of cultural heritage” dated 12 July 2007. Petersburg Committee on Town-Planning and Architecture. color and other parameters and requires special approval from the Committee on State Control. on average. Petersburg” dated 19 January 2009. Petersburg Government dated 22 May 2006 No. Petersburg Law “On the Master Plan of St. Petersburg and regimes of use of lands within the boundaries of such zones and on amending the St.

42 The normative term for the preparation of the town-planning map is 30 days from the date of application.4. (b) a positive conclusion of the state expertise on the results of survey work and on the design documentation and (c) a construction permit. materials of topographic mapping. 2. Module A Regional Center – St.the items of cultural heritage and cannot lead to changing the features that constitute the subject of the protection of the properties):     repairs. design and construction work done by the united members of such a self-regulated organization. The town-planning map is prepared by the Committee of Town-Planning and Architecture based on the application of the subject filed with the necessary documents (e. which contains significant town-building information such as boundaries of a land plot.Russia. Petersburg dated 11 June 2009 N 96. Each self-regulated organization may issue only the admissions to those works that have been approved as the sphere of activities of the relevant self-regulated organization at the general meeting of the members of the self-regulated organization. We would like to draw your attention to the fact that the work that requires admission of the selfregulated organization includes such works as organization of design documentation preparation (function of a general designer). permitted use etc. Doing business in St. A precise list of the work that requires admissions of the self-regulated organizations is approved by the order of the Ministry of Regional Development of the Russian Federation dated 30 December 2009 No.8 of the Town-Building Code of the Russian Federation. Please note that only in the course of adaptation to modern use reconstruction of the item of cultural heritage is deemed possible.40 The admissions are issued only to the legal entities and entrepreneurs who answer the requirements established by the relevant self-regulated organization and the minimum requirements of the Town-Building Code of the Russian Federation. organization of construction works (function of a general contractor). 624.doingbusiness. Petersburg Enterprise Europe Network . control over the construction process implementation of which is imperative under the town-building legislation. 1. Before starting the construction of a building on a land plot the subject also requires that the following major documents are received: (a) a town-planning map. At the same time the state system of licensing was replaced with a system of admissions that are issued by the self-regulated organizations. restoration. Under the town-building legislation a selfregulated organization is a non-commercial partnership that unites a particular number of legal entities and entrepreneurs fulfilling the survey or design or construction works and has the compensation fund to cover the harm (damages) caused in the result of the defaults of the survey. Fulfilling construction work does not require the obtainment of a license any more as it was required in 2005. 42 The order of the Committee on the Town-Planning and Architecture of St.10. Item 1 of article 44 of the Town-Building Code of the Russian Federation. adaptation to modern use. Construction permit documentation Performance of the construction work on the land plot requires the receipt of certain permit documentation under the town-building legislation so that the safety and the legitimacy of the process is controlled. Petersburg | www. The positive conclusion of the state expertise on the results of the survey work and on the design documentation is given if the elaborated design documentation answers the requirements of 40 41 Item 5 of article 55.ru 127 . A town-planning map41 is the document. cadastral passports of the land plot).g. conservation. 4.

the technical regulations and the requirements to the content of the design documentation.ru . 46 Decree of the Government of the Russian Federation dated 23 May 2009 N 441. Petersburg. Petersburg | www.1 of article 49 of the Town-Building Code of the Russian Federation. The state expertise is conducted by the St. Petersburg. In regard to a technically complicated or unique property the state expertise will be conducted by the Federal State Agency Glavgosexpetisa of the Russian Federation.doingbusiness.47 43 The Decree of the Government of St. Petersburg state autonomous agency "Center of State expertise". 6. 128 Doing business in St. After the receipt of the positive conclusion from the state expertise on the results of the survey work and on the design documentation.44 The term of the state expertise depends on the complexity of the building but should not exceed three months. 45 Item 7 article 49 of the Town-Building Code of the Russian Federation. Petersburg state autonomous agency "Center of State expertise"43 subject to the Service of State Construction Supervision and Expertise of St. Currently. In regard to the technically complicated or unique property .2. item 4. the subject applies for the obtainment of the construction permit attaching all the required documentation in accordance with the TownBuilding code of the Russian Federation. 47 Item 11 article 55 of the Town-Building Code of the Russian Federation. Petersburg dated 23 October 2009 N.1177 On creation of St.1 of the Town-Building Code of the Russian Federation. 44 The order of the Federal agency on construction and housing and communal services dated 16 March 2007 N 64.Russia.the permit will be issued by the Ministry of the Regional Development. Petersburg Enterprise Europe Network .46 The normative term for issuing of the construction permit is 10 days from the date of application. The construction permit is given in the name of the person who enjoys the rights (lease or ownership) to the land plot. The construction permit is issued if the design documentation is in conformity with the townplanning map. the construction permit is granted by the Service of State Construction Supervision and Expertise of St. item 4. Module A Regional Center – St. 45 3.

Russia. if a citizen or a legal entity owns real estate located on a state land. Therefore. 6. which shall be submitted to the Committee for City Property Management with an application on the buyout. Procedure for the buyout of land plots The list of documents.ru 129 . In order to obtain either of the above-mentioned rights to the land plot.11. the documents listed in items 2. citizens and legal entities which own real estate (buildings and constructions) located on state land have an exclusive right to the privatization or lease of the land plots on which such real estate is located. 4. Petersburg Information for the current chapter was developed and kindly provided by DLA Piper According to Article 36 of the Land Code of the Russian Federation. Petersburg | www. has been recently revised and is currently established by the Order of the Ministry of Economic Development of the Russian Federation dated 13 September 2011 No. Petersburg Enterprise Europe Network .doingbusiness. confirming the identity of an applicant. Copy of the document. 475 “On the adoption of the list of documents required for the acquisition of rights to the land plot”. Extract from the Unified State Register of Rights to Real Estate Property and Transactions Therewith regarding the rights to real estate (buildings and constructions) located on the targeted land plot. 3. Copies of documents entitling the Investor to acquire the land plot. 5. 2. the citizen or the legal entity (hereinafter – the Investor) shall apply to an authorized government authority with an application. or 2. In St. 4. in the event the applicant appoints a representative. Extract from the Unified State Register of Rights to Real Estate Property and Transactions Therewith regarding the rights to the targeted land plot. Reference from the applicant. According to clause 2 of the Order of the Ministry of Economic Development of the Russian Federation dated 13 September 2011 No. unless the grounds for the right to acquisition of the land plot are evident from the above-mentioned documents. acquire the land plot on which the real estate is located under ownership. 4. such citizen or legal entity may choose to: 1.4.11. Copy of the document confirming the authority of the representative of an individual or a legal entity. Copy of the certificate of state registration of the individual as an entrepreneur or a copy of the certificate of state registration of a legal entity or an extract from the state register regarding the legal entity or the individual entrepreneur applying for the buyout of land. with an indication of the cadastral numbers and addresses of such real estate. Cadastral passport of the land plot. 8. Module A Regional Center – St. Such documents include the following: 1.475. or notification on the absence of such data in the Unified State Register of Rights to Real Estate Property and Transactions Therewith (or copies of documents confirming rights to the land plot if such rights are considered as existing irrespective their registration at the Unified State Register of Rights mentioned above). containing the list of all buildings and other constructions located on the targeted land plot. 7.1. Petersburg such authority is vested in the Committee for City Property Management. execute a long-term lease agreement of the land plot for 49 years. or notification on the absence of such data in the Unified State Register of Rights to Real Estate Property and Transactions Therewith (or copies of documents confirming rights to such real estate if such rights are considered as existing irrespective their registration at the Unified State Register of Rights mentioned above). 5 and 6 above Doing business in St. Buyout of land plots in St.

the Committee for City Property Management in St. Therefore. This provision comes into force within the following timeline:   from 1 October 2011 (but not earlier than upon expiration of 10 days from the date of the official publication of the Order) – for documents required for the acquisition of rights on federal land (land plots which are currently under federal ownership). Local legislation influencing the procedure of land plots buyout On 31 August 2006 the Decree of the Committee for City Property Management of St. that.262-р “On the order of cooperation of the structural subdivisions of the Committee for City Property Management and Open joint stock company “The Property Fund of St. the application and package of documents submitted by the Investor for buyout of a targeted land plot are accepted by the Department on the disposal of state property of the Committee for City Property Management (hereinafter . the respective documents shall be filed for registration. the competent government authorities shall prepare a draft of the sale and purchase agreement regarding the targeted land plot and provide it to the applicant for review and signing. The Department of the Committee registers submitted applications on the date of their submission and no later than within two business days from the date of registration of the application sends the 130 Doing business in St. According to the Decree.cannot be requested (demanded) from the applicant by the authorities.475. The decree remains effective (as amended) as of the present time.Russia. Petersburg | www. in the event small real estate located on a very large land plot. Please note that the total area of the targeted (for buy-out) land plot shall be balanced with the total area of the real estate located on it. Module A Regional Center – St. was provided for construction purposes. 4. upon signing the sale and purchase agreement regarding the targeted land plot. Petersburg) cannot demand from the applicant to submit any additional documents other than those indicated in the Order No. the government authorities (i. Petersburg Enterprise Europe Network . however. from 1 July 2012 – for documents required for the acquisition of rights on other land plots of state or municipal property. According to Article 8 of the Civil Code of the Russian Federation the rights to the land plot have to be registered in the Unified State Register of Rights to Real Estate and Transactions Therewith.e. Therefore. the respective cadastral works shall be performed by the applicant at its own cost.doingbusiness. the Investor will be able to buy-out not the whole land plot. the applicant has the right to submit these documents together with an application. The Investor will formally obtain his/her ownership title to the land plot only after registration of the transfer of rights at the Unified State Register of Rights to Real Estate and Transactions Therewith. for example. Petersburg No.2. the Committee for City Property Management has one month for the adoption of the decision on provision of the land plot into ownership as per the buyout request of the applicant.the Department of the Committee). Please note that in the event that the cadastral registration of the targeted land plot has not been performed before the submission of an application by the applicant for obtainment of rights to such land plot. According to item 5 of Article 36 of the Land Code of the Russian Federation. Within one month from making a decision on provision of the land plot into ownership. Upon the submission of documents by the applicant.11. and the rights to the land plot will be granted only subject to the completion of such cadastral works and the cadastral registration of the land plot. Petersburg" in the process of the sale of state-owned land plots to the owners of real estate located on such land plots” was adopted.ru . The law provides for the possibility of buy-out of the land plot which is necessary for operation of the real estate located on it. but only a part of the land plot which is required for the operation of the real estate (unless the Investor proves that there are sufficient reasons for a buyout of the whole land plot for further operation of the real estate located on it).

3.the Agency). 2001 No.11. the buyout price shall not exceed the cadastral price of the land plot. The Transfer Order serves as an assignment to the Property Fund of St. In the event that the mechanism for the calculation of the buyout price is not determined. legal entities and entrepreneurs which own real estate located on targeted land plots. Petersburg to conclude the Sale and Purchase agreement of the targeted land plot with the Investor.ru 131 .Russia. there are two categories of potential acquirers of land plots. 4.inquiries regarding the targeted land plot and the real estate located on it to a number of other government authorities. the buyout price for stateowned land shall be determined by the government authorities as follows:    with respect to federal land – by the federal government authorities. including the following:     Committee of State Control. confirmation that a targeted land plot can be disposed of to Investor's ownership. including when real estate was constructed or reconstructed on the land plots. Module A Regional Center – St. Use and Protection of Cultural Properties. citizens and non-commercial organizations. if such real estate was privatized (disposed of from state or municipal property). legal entities which own real estate located on targeted land plots and are acquiring the land plots in the course of re-registration of their right of permanent perpetual use. Upon the execution of the Sale and Purchase agreement of the targeted land plot. the Department of the Committee prepares a Transfer Order on the transfer of the targeted land plot into the Investor's ownership. In any case. with respect to the land owned by the subjects of the Russian Federation – by government authorities of the subject of the Russian Federation. the buyout price shall equal the cadastral price of the land plot. Committee of Land Resources and Land Development. Petersburg. The second category of potential acquirers of land plots includes persons. Petersburg | www. which acquired ownership title to real estate located on the targeted land plots before the Land Code of the RF came into force and for which no special procedure for acquisition of ownership title to the land plots was established by the federal law. which own real estate located on targeted land plots and are not included in the first category. for which different rules for the calculation of the buyout price are established. Doing business in St. Department of the Federal Service for State Registration. and Cartography for St. upon completion of which the Investor formally obtains its ownership title to the land plot. 3. on the territory of which the targeted land plot is located (hereinafter . Cadastre. Buyout price of the targeted land plot According to Article 36 of the Land Code of the Russian Federation. 4. Department (agency) of real estate property of St. Petersburg District. legal entities and entrepreneurs which own real estate located on targeted land plots. 2. Upon gathering of the information from various government authorities. with respect to municipal land – by municipal authorities. The first category of potential acquirers of land plots includes the following: 1. 137-FZ “On entering into force of the Land Code of the Russian Federation”. if such real estate was constructed on targeted land plots instead of destroyed or earlier privatized and currently demolished real estate. the documents are filed for the registration of the transfer of rights to the land plot with the Unified State Register of Rights to Real Estate and Transactions Therewith. Petersburg Enterprise Europe Network .doingbusiness. etc. According to the Federal Law dated 25 October.

Russia. the buyout price for the first category of potential acquirers as described above shall be calculated as follows:  15% of the cadastral value of the land plots – when the land plots are being bought-out by the owners of real estate constructed on such land plots and when such land plots were provided for performance of investment activity in accordance with the laws of St.59-19.  The buyout price for the second category of potential buyers shall be calculated as follows:  10-fold rate of the effective land tax –. Petersburg Enterprise Europe Network .  The St. Petersburg the calculation of the buyout price is regulated by the St. According to the St. Petersburg for the purposes of construction on such land plots of the plants producing cars and/or automobile components. Petersburg. taking into account the rules for the determination of the buyout price established by the Federal Law dated 25 October 2001 No.doingbusiness. Petersburg”. Petersburg or investors implementing strategic projects on the territory of St. Petersburg | www. Petersburg”. 59-19 “On the establishment of the price of the land plots in St. or when such land plots are used for the purposes of allocation of industrial property and at least 70% of the land plot is occupied by such industrial property. or when such land plots are used for the purposes of allocation of industrial property and at least 70% of the land plot is occupied by such industrial property. Petersburg. 137-FZ “On entering into force of the Land Code of the Russian Federation”. Module A Regional Center – St.when the land plots are being bought-out by the owners of real estate constructed on such land plots and when such land plots were provided for performance of investment activity in accordance with the laws of St. Petersburg Law No. Petersburg law dated 15 February 2010 No. Petersburg law loses its effect (becomes inoperative) from 1 January 2012.5% of the cadastral value of the land plots – when the land plots are sold to other owners of real estate located on the land plots. Petersburg Law No. this provision of the St. starting from 1 January 2012 the buyout price for the land plots may change in the event that the local authorities adopt any amendments to the St. No such amendments were adopted as of November 2011. 13-fold rate of the effective land tax – when the land plots are sold to other owners of real estate located on the land plots. theoretically. However. 19.In St. Petersburg law dated 15 February 2010 No. Please note that. it is recommended that Investors monitor this issue further. However. 59-19 “On the establishment of the price of the land plots in St. 132 Doing business in St.ru . 59-19 also provides for a 9-fold rate of effective land tax for calculation of the buyout price for the land plots which were provided to strategic investors of St.

mergers and acquisitions. insurers. Petersburg Enterprise Europe Network . the FAS takes into consideration not only the purchaser and the target.Russia. the founders of a new company must obtain a prior approval of the FAS for the establishment of a new company only if the charter capital of the new company is paid by the contribution of shares.1. or more than 20 per cent of the book value of the main production (fixed) assets and intangible assets of any of its founders. agreements limiting competition.doingbusiness. Certain activities in each of the abovementioned areas require a prior approval or notification of the antimonopoly authorities in order to comply with antimonopoly laws and such requirements have to be taken into account when planning investment activities. unfair competition. Under the auspices of the Federal Antimonopoly Service ("FAS") the Competition Law regulates competition in both the commodities market and the financial services market and includes seven areas of particular interest to foreign investors:        establishment of companies. or more than one-third of the participation interests of the Target (if the Target is an LLC and the charter capital of the newly established company is paid by contribution of a participation interest in the Target). or 48 Meaning an individual or legal entity rendering financial services. (iv) right to appoint CEO. Establishment of companies According to the currently effective legislation. Regulatory issues. investment funds. abuse of a dominant position. are directly or indirectly controlled by the company or are under common control with this company and/or entities directly or indirectly controlled by it. including credit organizations. stock/currency exchange organizations.12. 49 In determining the threshold for asset values and aggregate revenues in the context of mergers and acquisitions.12. The broad term "group of persons" means all persons and/or entities that directly or indirectly control the company.4. Antimonopoly compliance Information for the current chapter was developed and kindly provided by DLA Piper The basic law for antimonopoly regulation in the Russian Federation is the Federal Law “On Protection of Competition” dated 26 July 2006. (v) right to appoint over 50% of the management board and/or the board of directors. Module A Regional Center – St. if the newly established company acquires:    more than 25 per cent of the shares of the Target (if the Target is a JSC and the charter capital of the newly established company is paid by contribution of shares in the Target). "control" means holding of any of the following: (i) over 50% of votes (including combined participation). Doing business in St. (ii) CEO position. etc. and if:  the balance sheet value of the total aggregate assets of the founders (including their respective "groups of persons"49) and the Target (including its groups of persons) exceeds RUB 7 billion. state aid. and selection of a financial organization by subjects of natural monopolies and various states and municipal bodies. 4. participation interests and/or property assets (excluding cash assets) of another legal entity ("Target") (unless such a legal entity is a "financial organization"48).ru 133 . pension funds. (iii) rights to give to a company binding instructions. Petersburg | www. For the purpose of the definition of the group of persons. as amended ("Competition Law"). but also the persons (individuals and legal entities) in their respective "groups of persons".

Acquisitions 4. affiliation or merger must obtain a prior approval of the FAS51 if:    the balance sheet value of the total aggregate assets of the merging entities (including those of their respective groups of persons) exceeds RUB 3 billion. information on which was disclosed within a special procedure. affiliation or merger is going to be performed between the parent company and its subsidiary.doingbusiness. 52 This amount differs depending on the type of the financial organization.  the aggregate revenue earned by the founders (including their respective groups of persons) and the Target (including its groups of persons) from the sale of goods in the past calendar year exceeds RUB 10 billion.Russia. or either of the merging entities (including their respective groups of persons) is included in the FAS Register of dominant entities or legal entities with a Russian market share exceeding 35 per cent. Mergers Entities (except financial organizations) involved in a consolidation. (iii) the consolidation. Consolidations. participation interests and/or property assets of such a financial organization exceeds an amount that is established by the Russian Government. 53 For financial organizations the thresholds in this regard are: the balance sheet value of the total aggregate assets of the financial organization exceeds the amount established by the Government of the Russian Federation.12. Module A Regional Center – St. This amount differs depending on the type of the financial organization. affiliation or merger belong to the same group of persons.3. Petersburg Enterprise Europe Network . participating in the consolidation.3. or the Target is included in the FAS Register of dominant entities or legal entities with a Russian market share exceeding 35 per cent.50 4. (ii) entities.12. affiliation or merger is stipulated by the acts of the President or the Government of the Russian Federation. Acquisition of participation interests in a Russian company (LLC) Preliminary approval of the FAS is required where a purchaser.2. affiliations or mergers of financial organizations will require a prior approval of the FAS if the total value of the entities' assets exceeds the amount established by the Russian Government. Preliminary FAS approval is not necessary if: (i) the consolidation. Petersburg | www. or 50 51 This amount differs depending on the type of financial organization. be it an individual or legal entity and its group of persons.ru . The establishment of a new company whose charter capital is paid by the contribution of shares.52 4. or more than two-thirds (on a first or any further acquisition) of the target LLC's total participatory interests. and if (unless the purchaser is a financial organization):53 the balance sheet value of the total aggregate assets of the purchaser and the target LLC (including their respective groups of persons) exceeds RUB 7 billion and the balance sheet value of the total aggregate assets of the target LLC (including its group of persons) exceeds RUB 250 million. or the aggregate revenue earned by the merging entities (including those of their respective groups of persons) from the sale of goods during the last calendar year exceeds RUB 6 billion. acquires:     more than one-third (on a first acquisition). or more than a half (on a first or any further acquisition).12. participation interests and/or property assets of a financial organization. provided by the Competition Law. 134 Doing business in St.1. will require prior approval of the FAS if the balance sheet value of the total aggregate shares.

acquires rights conferring the ability to determine the commercial behavior of the target company (including as a result of change of indirect control over a Russian target company) or of the right to perform the functions of its executive bodies. structures. and if (unless the Owner is a financial organization):   the aggregate book value of the assets of the purchaser and the Owner (including their respective groups of persons) exceeds RUB 7 billion and the balance sheet value of the total assets of the Owner (together with those of its group of persons) exceeds RUB 250 million.12. or either the purchaser or the target JSC (including their respective groups of persons) is included in the FAS Register of dominant entities or legal entities with a Russian market share exceeding 35 per cent. Acquisition of assets in a Russian company The preliminary approval from the FAS is required where a purchaser. Such persons. be it an individual or legal entity and its group of persons. acquires:      more than 25 per cent (on a first acquisition). or more than 75 per cent (on a first or any further acquisition). Module A Regional Center – St. be it an individual or legal entity and its group of persons.ru 135 .3. entities or Doing business in St.4. of the target JSC's total share interests.12. Petersburg | www.3. Acquisition of shares in a Russian Company (JSC) Preliminary approval from the FAS is required where a purchaser.  4. or the aggregate revenue earned by the purchaser and the Owner (including their respective groups of persons) from the sale of goods in the past calendar year exceeds RUB 10 billion and the balance sheet value of the total assets of the Owner (together with its group of persons) exceeds RUB 250 million. and if (unless the purchaser is a financial organization): the balance sheet value of the total aggregate assets of the purchaser and the target JSC (including their respective groups of persons) exceeds RUB 7 billion and the balance sheet value of the total assets of the target JSC (including its group of persons) exceeds RUB 250 million. Acquisition of rights in a Russian company Preliminary approval from the FAS is required where a purchaser. or the aggregate revenue earned by the purchaser and the target (including their respective groups of persons) from the sale of goods in the past calendar year exceeds RUB 10 billion and the balance sheet value of the total assets of the target JSC (including its group of persons) exceeds RUB 250 million. premises and parts of premises) or intangible assets of an entity. Petersburg Enterprise Europe Network .3. or either the purchaser or the Owner (including their respective groups of persons) is included in the FAS Register of dominant entities or legal entities with a Russian market share exceeding 35 per cent.  4. if the acquired assets account for more than 20 per cent of the book value of the main production (fixed) assets and intangible assets of another legal entity (the Owner).  the aggregate revenue earned by the purchaser and the target (including their respective groups of persons) from the sale of goods in the past calendar year exceeds RUB 10 billion and the balance sheet value of the total aggregate assets of the target LLC (including its group of persons) exceeds RUB 250 million. 4. acquires the right of ownership or the right to use the main production (fixed) assets (except for land plots or non-industrial buildings. be it an individual or legal entity and its group of persons. constructions.12.Russia.2.3. or more than 50 per cent (on a first or any further acquisition).doingbusiness. or either the purchaser or the target LLC (including their respective groups of persons) is included in the FAS Register of dominant entities or legal entities with a Russian market share exceeding 35 per cent. unfinished buildings.

3.Russia. and the parties to the transaction are a parent company and its subsidiary. the FAS supervises those offshore mergers or other transactions involving the acquisition of shares.group of entities involved in the acquisition must receive prior approval from the FAS if (unless the purchaser is a financial organization):   the aggregate book value of the assets of the purchaser and the target (including their respective groups of persons) exceeds RUB 7 billion and the balance sheet value of the total assets of the target (together with those of its group of persons) exceeds RUB 250 million.ru . in exceptional cases it may be permissible to notify the FAS post-completion of such transactions provided that:   the parties to the transaction belong to the same group of persons and information on such group was disclosed under the special procedure. also note that post-completion notification is also required with respect to those transactions in which the aggregate assets and the aggregate revenue of the purchaser and the target company (including their respective groups of persons) is over RUB 400 million and. or the acquisition is stipulated by the acts of the President or the Government of the Russian Federation. Module A Regional Center – St. as a result of which indirect control over a Russian entity changes. participating in the acquisition belong to the same group of persons. the foreign entity acquiring the shares would obtain rights over the Russian entity which would allow it to determine the conditions of the Russian entity's own business activity. provided by the Competition Law. Petersburg Enterprise Europe Network . Petersburg | www.doingbusiness. However. Exemptions from rules on the application for prior approval The Competition Law provides several exemptions from the obligatory rules on obtaining preliminary FAS approval:    the acquisition will be performed between a parent company and its subsidiary. 136 Doing business in St.12.  In practice. the aggregate value of assets of the target company and the companies of its group exceeds RUB 60 million. or the aggregate revenue earned by the purchaser and the target (including their respective groups of persons) from the sale of goods in the past calendar year exceeds RUB 10 billion and the balance sheet value of the total assets of the target (together with its group of persons) exceeds RUB 250 million.12. It is presumed by the FAS that as a result of an indirect change of control of a Russian legal entity.6.3.54 4. Procedures and timing After all the required documents have been submitted. provided by Article 31 of the Competition Law.3. in addition. 4. the FAS has 30 days to review the application or notification. Post-completion notification procedure Any proposed transaction that meets the relevant conditions and thresholds (as described in the preceding paragraphs of this section on "Acquisitions") will generally require a preliminary FAS approval.7.5. Please. information on which has been disclosed within a special procedure. 4. If the FAS believes that the transaction may lead to a restriction of 54 Provided that the prior approval thresholds (as described in the preceding paragraphs of this section on "Acquisitions") are not met.12. or either the purchaser or the target (including their respective groups of persons) is included in the FAS Register of dominant entities or legal entities with a Russian market share exceeding 35 per cent. or the entities.

one of which acquires goods or is the potential acquirer. Any company established. are exempt from all bans under Competition Law applicable to the agreements. in particular as a result of emergence or strengthening of a dominant position. Petersburg | www. either as a new company or as a result of a merger. Vertical agreements are agreements between economic entities not competing with each other. the review period may be extended for additional two months. However. without the requisite prior approval of the FAS can be liquidated or reorganized if it is determined that its establishment has led or may lead to the reduction of competition. an increase or reduction of prices or the manipulation of prices at tenders. the deadline for its submission is 45 days from the completion date of the respective transaction. Doing business in St. while the other supplies goods or is the potential seller. outweigh its negative consequences. these bans do not apply to vertical agreements which are either vertical agreements between economic entities where the market share of each one is less than 20 per cent or vertical agreements in a written form which are commercial concession agreements. restriction of access to the market or the removal from the market of other entities that sell or purchase particular products.3. imposition of contractual terms that are disadvantageous to the other party or do not relate to the subject matter of the contract. In certain cases activities which would prima facie seem to limit competition may be permitted if it can be proved that the positive effects of the action. Petersburg Enterprise Europe Network . in particular as a result of emergence or strengthening of a dominant position. bonus payments or surcharges.doingbusiness. concerted actions or other business activities that lead or may lead to the following:         control or fixing of prices. 4. discontinuance or the reduction of production of goods for which there is a consumer demand if it is possible to produce them on a profitable basis.Russia. including any positive socio-economic effects. etc. These bans are not applicable to agreements if they qualify as "vertical agreements". setting different prices on the same goods without economic or technological justification. contractual ban on selling competing goods).e. Any acquisition made without the requisite prior approval of the FAS shall be declared invalid if it is determined that its establishment has led or may lead to the reduction of competition. discounts. the range of marketable goods or the range of sellers or purchasers.competition.12. during which the FAS places information about the transaction on its official website and invites all interested parties to send their opinions on the transaction. Competition Law enacts only two per se bans applicable to vertical agreements: setting resale prices and exclusivity (i.ru 137 . the division of the market by reference to territories or according to the volume of sales/purchases.8. Such Government Regulations exist for vertical agreements55 and 55 Government Decree “On Cases of Permissibility of Agreements between Business Undertakings” dated 16 July 2009. As for post-completion notification. consolidation or affiliation. Module A Regional Center – St. none of which has a market share in excess of 20 per cent. Competition Law further prohibits other agreements if such agreements lead or may lead to the limitation of competition. This means that vertical agreements between two parties. refusal to enter into a contract with particular sellers or customers without an economic or technological justification. Agreements and concerted actions limiting competition Competition Law prohibits agreements. or if the relevant Government Regulation permits such agreements or business activities.

56 In this context it is worth mentioning that if the parties intended to enter into an agreement have certain doubts as to its compliance with or permissibility under Competition Law they have the right to file the draft of such agreement with the FAS and ask the FAS to give its opinion on whether or not the agreement complies with the Competition Law requirements (Article 35 of the Competition law). one economic entity coordinating its activities with one or more third party economic entities). there is a conclusive presumption of nondominance. In addition. creation of conditions that place one or more business entities in an unequal position as compared to other entities in their ability to access the market for particular goods (i. with several exceptions provided by the Competition Law for entities and financial organizations and oligopoly markets. This filing procedure is possible with respect to specific agreements between specific parties only (i. Petersburg | www. the imposition of contractual terms by one contracting party on another that are either disadvantageous to the other contracting party or do not relate to the subject matter of the contract.ru .e. 58 Activity may be allowed if the dominant entity can prove that the positive effects of a particular activity outweigh its negative consequences. 4.12. For those in a dominant position. For entities with a market share less than 35 per cent. also note that company's officers can be also penalized or even subjected to criminal liability. Competition Law also prohibits so-called "coordination of economic activities"57 amongst economic entities. most notably the relevant entity's market share:    For entities with a market share of more than 50 per cent there is a presumption of market dominance.Russia. the FAS may issue binding prescriptions designed to ensure competition in the market. Module A Regional Center – St. Entities with a market share of between 35 per cent and 50 per cent (inclusive) may be deemed dominant by the FAS on the basis of an investigation into the relevant market. no blanket clearances). 57 "Coordination of economic activities" is understood to be the coordination of actions between economic entities who are not a "group of persons" (i.3. Each company being a party to an anti-competitive agreement can be subject to turnover-based fines varying from 1 per cent to 15 per cent of the party's turnover in the market to which the agreement in question relates. the Competition Law prohibits any of the following activities:       setting and/or support of a monopoly for high or low prices. In addition. in approving agreements. Petersburg Enterprise Europe Network . At the same time the maximum fine to be imposed on the violator cannot exceed 4 per cent of the violator's total turnover on a worldwide basis.for agreements between credit and insurance companies. 2009. discontinuance or reduction of the production of goods for which there is a consumer demand if it is possible to produce them on a profitable basis. group of entities and/or their respective groups of persons enjoy a dominant position involves a complex evaluation of various factors.9. if such coordination may lead to restriction of competition. 138 Doing business in St.e. Please.e. discriminatory conditions).doingbusiness.58 unjustified refusal to enter into a contract with particular customers if it is possible to produce or deliver the relevant goods to such customers. 56 Government Decree “On Cases of Permissibility of Agreements between Credit and Insurance Organizations” dated April 30. Anti-competitive agreements are deemed by Competition Law as the severest violation. withdrawal of goods from circulation if the result of such a withdrawal is a rise in the price of the goods. Abuse of dominant position Determining whether a particular entity.

ensuring defense powers and the security of the state. That is. development of education and science.1996 (as amended). inaccurate or distorted information by a commercial entity. the sale of goods by a commercial entity in contravention of certain intellectual property rights (e.10.58 and violation of pricing rules. development of culture. business customs. any actions of commercial entities aimed at acquiring competitive advantages in commercial activity.11. In accordance with the Competition Law. environmental protection. health care of citizens. reasonableness and fairness.12. Typical activities that would constitute unfair competition for the purposes of Competition Law would include:      the distribution of false. 7-FZ dated 12.doingbusiness. support of small and medium businesses.e. the requirements of good-faith. which may cause losses to or otherwise damage the business reputation of another commercial entity. Petersburg Enterprise Europe Network .01.3.g. the misleading of consumers about the nature. conduct of scientific research. which have caused or may cause losses to other competing legal entities. use or disclosure of such information without relevant consent). 4. method and place of production and quality of a commercial entity's goods. popularization and state protection of the cultural heritage (historical and cultural monuments) of peoples of the Russian Federation. labor protection. Petersburg | www. state (or municipal) preferences consist of granting economic entities certain privileges ensuring that such economic entities have more favorable conditions for their activity by transferring state (or municipal) property and/or civil rights or by granting a material privilege. and the abuse by a commercial entity of certain commercial secrets (i. State preferences State preferences are new to Russian competition legislation and were introduced by the Competition Law.ru 139 . arts and conservation of cultural values. 4. creation of discriminatory conditions. usage. agricultural production. which contradict Competition Law. the receipt. development of physical fitness and sports. or damage their business reputation.12. abuse of trademarks). the incorrect comparison by a commercial entity of goods produced or sold by it against those of another commercial entity. and socially oriented non-commercial organizations in accordance with the Federal Law No.    setting different prices for the same goods where it is not economically or technologically necessary to do so. Unfair competition The Competition Law prohibits unfair competition in Russia. social protection of the population. The Competition Law regulates the procedure of providing state (or municipal) preferences for the following purposes:              ensuring the livelihoods of the population in the Arctic regions and equivalent areas. conservation. and Doing business in St.Russia. Module A Regional Center – St.58 creation of barriers to market entry or market exit for other business entities.3.

3. among other things include the following:     The Third Antimonopoly Package excludes criminal liability for concerted actions. 2011 the President of the Russian Federation signed Federal Law No.12. unless such preferences are directly granted by federal law. Agreements within the group of entities shall not fall under the bans established by antimonopoly legislation (ex. defined by the legislation of the Russian Federation. The main purposes of such debated amendments are as follows:    the development of competition on goods markets. or are granted from the reserve funds for financial security of extraordinary expenses in compliance with budgetary legislation of the Russian Federation or in the amount which does not exceed limits established by the Central Bank of the Russian Federation for settlements in cash in the Russian Federation between legal entities. and other information as provided for by the Competition Law. The amendments to the currently effective Competition Law. In order to provide state (or municipal) preferences. the minimization of legal risks for business. the amendments remain unclear as to who shall make such public declaration and in what form).ru . Recent development of antimonopoly legislation On December 6. Petersburg Enterprise Europe Network . the authority intending to grant the preferences must submit an application to the FAS in order to obtain the FAS approval to the granting of such preferences together with:    a draft act which provides for the granting of the state preferences with an indication of the goals and the amount of the preferences. suggested by the Third Antimonopoly Package. Concerted action shall mean only such actions where each participant has initially been aware of the said action due to public declaration on performance of such actions (however. the perfection of principles of control over activities of monopolies. a list of the beneficiary entity's activities over the two years preceding the date of the FAS application. 2012. 4.Russia. Module A Regional Center – St.12. Petersburg | www. a law of a constituent entity of the Russian Federation or a regulatory act of the local government on the budget. The representatives of antimonopoly authorities are sure that the Third Antimonopoly Package will significantly liberalize current antimonopoly legislation.doingbusiness. other purposes. if such preferences are granted no more frequently than once a year for a certain entity. The Third Antimonopoly Package was officially published and most of the new rules will come into force from January 6. 140 Doing business in St. The FAS shall make a decision on the application within one month from the date it is submitted together with all necessary documents. The new amendments also distinguish the terms "agreement" and "concerted action" and limit the number of agreements currently prohibited by antimonopoly legislation. 401-FZ “On Amendment of the Federal Law “On Protection of Competition” and Other Laws of the Russian Federation” – a so-called “Third Antimonopoly Package”. Article 11 of the current Competition Law) in the event of the control of one entity within the group over another. State (or municipal) preferences shall be granted with the preliminary written approval from the FAS. soften the liability of entities for the violation of antimonopoly laws and reduce a number of bans (prohibitions) established by the current antimonopoly legislation. The FAS may extend the period for its review of the application for a term of up to two months.

ru 141 . Petersburg Enterprise Europe Network .doingbusiness. etc. The new law introduces mitigating circumstances and aggravating circumstances when considering administrative cases in the field of competition/antimonopoly issues. or the right to perform the functions of its executive bodies.Russia. It will bring important changes to the currently effective Competition Law of the Russian Federation and influence business activity on the Russian market.         The bans established by the Competition Law in regard to agreements limiting competition and/or concerted actions shall cover only such agreements and actions which are performed by entities working on the same market (i. A number of amendments are devoted to auctions. Doing business in St. between competitors). The new amendments increase thresholds currently established for preliminary approval of reorganization (merger. performs works in) to Russia.) of legal entities: the balance sheet value of the total aggregate assets of the merging entities (including those of their respective groups of persons) shall exceed RUB 7 billion and the aggregate revenue earned by the merging entities (including those of their respective groups of persons) from the sale of goods during the last calendar year shall exceed RUB 10 billion. the above-mentioned examples refer only to the amendments introduced by the Third Antimonopoly Package. Undoubtedly.e. the preliminary FAS approval may be required. The Third Antimonopoly Package also clarifies the situation related to acquisition of a foreign company which has no legal presence in Russia. Module A Regional Center – St. The new amendments suggest establishing a procedure for the consideration of complaints regarding the violation of the auction procedure and procedure for the execution of agreements as a result of an auction. It is provided to establish administrative liability not only for non-submission of information to antimonopoly authorities as currently provided by the law. The amendments establish fixed administrative fines for abuse of a dominant position. It is also provided to establish the order of the calculation of administrative fines for the said violations on the basis of the value of the item put to auction. this rule shall not apply to activities of monopolies to which turn-over fines shall still be applicable). However. the joint share of which on the goods market does not exceed 20% and the share of each of which does not exceed 8%. the Third Antimonopoly Package provides for a number of sanctions for agreements and concerted actions at auction. in any case there is still a risk that the actions by the said entities may be qualified as coordination. but also for untimely submission of such information to antimonopoly authorities. The amendments also limit the applicability of the bans for concerted actions in connection to such entities. where such third party does not perform any activity on the same goods market as the market on which coordination is being performed. Besides. but supplies goods (renders services. Thus. which did not lead to limitation/elimination of competition (however. if such sales exceed RUB 1 billion within one year preceding the transaction and the acquirer obtains more than 50% of voting shares (participatory interest) in a foreign company or obtains other rights conferring the ability to determine business conduct of a foreign company. The Third Antimonopoly Package also limits the possibility of qualification as coordination of economic activity only to such coordination of entities' activity by a third party. Petersburg | www.

1 Establishing a legal presence Effective January 30. In St. development of a corporate seal. registration of the issuance of shares (for JSCs only) with the securities authorities. Costs of starting a company Overview Starting a business in St.Russia. etc. Petersburg registration is carried out through the Unified Registration Center.1.59 In the preliminary phase. however it is highly recommended to refer to the services provided by consulting. etc. which takes care of state registration and registration for tax purposes. opening of bank accounts.000 RUB Registration time: no more than 5 business days The following costs may be incurred while registering and starting a company in Russia:  Notary services Some documents submitted for registration have to be approved by notary Cost: starting at 200 RUB 59 60 For more information. which registers companies with all required establishments and authorities. branches. constitution documents of the newly established Russian company or business. Russian companies. 5.5. Additional steps are necessary for Russian companies.ru 142 . e. as well as with the State Statistical Committee and three social funds. law or special registration companies to expedite the whole process. 5.1.2. Module A Regional Center – St. Branches and representative offices must be registered with the tax authorities and accredited as well as registered with the State Statistical Committee and three separate social funds. Petersburg Enterprise Europe Network .doingbusiness. Costs of doing business 5. must be registered with several authorities. please see Section 4. which are to be filed with competent authorities (notarized and apostilled corporate documents of a foreign company.1. Petersburg:60   Individual entrepreneur / sole proprietorship State duty: 800 RUB Registration time: no more than 5 business days Legal entity (all types) State duty: 4.g. You can establish a company with your own financial and human resources.). Petersburg | www. 2010 Doing business in St.1. it is required to gather and draft all documents. tax authorities). Costs and duties The following state duties are applied while registering a company through the Unified Registration Center in St. as well as branches and representative offices of foreign companies in Russia. Companies must be registered with the State Registration Authority (currently. Petersburg involves completing a series of legal activities. and representative offices to be fully operational.

Petersburg.3.ru 143 . Module A Regional Center – St.000 RUB 5. Contacts Administration of the Federal Tax Service in St. Russia Tel.r78.ru Doing business in St.1.doingbusiness. 335 14 00 | Fax: +7 812 335 14 02 i784700@r78.Russia.ru www.nalog. Petersburg Unified Registration Center at Interdistrict Tax Inspection #15 10-12 Krasnogo Tekstilschika Street 191124 St.nalog. Petersburg | www.   Stamp In order to run a business all legal entities in Russia are required to have a company stamp Cost: starting at 400 RUB Bank account In order to run a business it is necessary to have a bank account Cost: varies depending on the bank Certification and other issues Certification might be required depending on the nature of your business and products Cost: starting at 2. Petersburg Enterprise Europe Network .: +7 812 335 14 03.

rent and services Public administration.8 Source: Territorial branch of the Federal State Statistic Service 144 Doing business in St. Petersburg | www.5 83. Petersburg Enterprise Europe Network .5.1 104.5 103.9 97.3 73.1 125.4 108.2 97.2.2.5 111.6 122.5 112.2 79. military security. 5.7 141.2 111.6 117.881 28.3 100. Human resources According to the Territorial branch of the Federal State Statistic Service (www.810 29.064 29.9 109. Module A Regional Center – St.775 24.9 105.727 21.0 100.5 100. social insurance Education Health care and social services Other community. In September 2011 real accrued salary calculated with consideration of consumer price index constituted 102.1 113.998 108.7 16.1 110.751 33.5 109.7 Average level 93.0 1.ru).petrostat.4 110.6 110.9 99.989 35.9 109.624 98.1 September 2010 112.ru .5 113.389 26.gks.4 Agriculture Mining Manufacturing Electricity.8 times 118. social and personal services 23.185 51.810 36.Russia.doingbusiness. RUB 27.5 97.642 roubles (as of September 2011). repair of motor vehicles.9 56.1 100.0 107.5% to the level of September 2010. Petersburg constitutes 29. motorcycles and personal and household goods Hotels and restaurants Transport and communication Financial activity Real estate operations. gas and water production and distribution Construction Wholesale and retail trade.3 100.8 89.1.7% to the level of August 2011 and 103.5 116.770 41. Industry Average salaries by industry September 2011.499 In % to August 2011 101. average nominal salary in St.

9% .without specific periodicity.Russia.6% Doing business in St. 60% of the companies reported their intent to re-examine salaries once a year. Petersburg | www. benefits and compensations in St.2.8% 8. Sample characteristics 90 Russian and foreign companies engaged in different business sectors took part in a survey conducted in October-November 2011.twice a year. Type of company 6% Business area Production Industry / B2B FMCG. Module A Regional Center – St. Most of the companies reexamine their salaries in January.2. 30% . CASE analyzed salaries of more than 21 thousand employees. The planned average raise constitutes 8-10%. 5. The average raise constituted 9-10%.2.Petersburg 100-500 employees 40% 46% 14% more than 500 employees 5. Salary.1.2. Petersburg Enterprise Europe Network . Petersburg and other cities in Russia twice a year in spring and fall.2.doingbusiness. Employers provided information on 154 positions of various levels in various professional fields. April or July. Salary raise In 2011 64% of the analyzed companies raised salaries for their employees.5. benefits and compensation survey Information for the current chapter was developed and kindly provided by CASE CASE conducts cross-industry and industry-specific surveys of salaries.2. Pay raise percentage (from September 2010 to October 2011) Salary Total income 6. DCG Services IT – Telecom Retail 34% 33% 49% 28% 17% 12% Russian Foreign 50% 44% Joint Size of company less than 100 employees in St.2.ru 145 . Only 44% of the companies reported their intent to raise salaries in 2012.

374 28.924 32.3. Petersburg | www. 43% intend to increase and 8% .851 35.016 28.559 Average monthly income (salary + bonuses).624 37.4.2. RUB (prior to individual income tax withholding) 26.174 38. 146 Doing business in St. RUB (prior to individual income tax withholding) 25. Approximately 70% of the companies pay yearly bonuses.Russia.5. Module A Regional Center – St.493 24.168 24.148 35.2. Bonuses More than 70% of the companies pay periodic bonuses (monthly.2.615 45. Petersburg Enterprise Europe Network .200 38.to decrease the number of employees. quarterly) based on performance.040 25.806 41.doingbusiness.192 15.083 32.642 Secretary HR specialist Accountant System administrator Advertising & marketing specialist Customer representative Sales assistant Manufacturing line operator Mechanic Warehouse attendant      Average personnel turnover coefficient – 23% Average age of employees (operational personnel) – 35 years Training and development opportunities – 93% Availability of programs for attracting young specialists – 41% Cooperation with Universities – 84% While 49% of the companies are not planning to change the number of employees in 2012.2. Share of bonuses and commissions in employees’ annual income 19% 14% 36% 19% 24% 81% 86% 64% 81% 76% Production Office Salary Sales Middle Top management management Other income 5.942 23.359 42.ru .772 41. Average salaries (as of October 2011) and personnel characteristics Position Average salary.

Petersburg Enterprise Europe Network .Russia.doingbusiness. Petersburg | www. sick leave payments Add.ru 147 .5. compensations and working conditions Financial assistance 84% 54% 33% 46% 46% 62% 79% 97% 70% Meals Sport benefits Add. vacation days Add. insurance VHI Mobile phone* Company car* * for specific group of employees Doing business in St.2. Benefits. Module A Regional Center – St.5.2.

m.2.m of Class A and 1. th. Completions volume 2200 returned to average pre-crisis level.m.5. Petersburg. At the same time Banking & Finance Completions Net absorption sector remains subdued.000 60 sq. The 2004 2005 2006 2007 2008 2009 2010 2011 2012F geographical distribution of new supply in the Class A Class B next two years is split between the central part of the city and Moskovsky district of St.m of office space will be delivered to 800 the market by the end of 2013 not considering 600 delays.502.200 sq.1. although it 2000 was lower than in 2008-2009. owner-occupied construction and 140 lease. 5. 2400 including 523.800 sq. when over 1800 300.m.sq.m. the most active companies in the market were those from Wholesale & Retail 20 industry with 24% share.m.000 sq.080 sq. Recent activity of Construction sector confirms its recovery after the crisis. the city witnessed subdued activity from tenants. whereas in 2010 the annual volume of net absorption was 173.000 sq.Russia. Q1 2007 148 Doing business in St. The volume of completions announced 400 for 2012.1.1.m.m. operating mainly in the B2C segment and leasing street-retail premises. In 2011 net 100 absorption figures for Classes A and B reached 80 about 236. were delivered annually. where over 30% of future supply is announced for delivery. Office.3. Even at the year-end normal spike in 120 tenants’ activity was not observed. 40 Sector wise.1. is only around 200. Module A Regional Center – St. Petersburg exceeded 2 million sq. In 2011 1600 the total volume of completions reached nearly 1400 170. Construction and 0 Mining & Exploration industries with 16% and -20 13% respectively.sq.500 sq.3. Demand Completions and net absorption After the first quarter of 2011. 5. of Class B premises. Future office projects currently 1200 under construction are not numerous.ru Q3 2011 Q3 2007 Q1 2008 Q3 2008 Q1 2009 Q3 2009 Q1 2010 Q3 2010 Q1 2011 .doingbusiness. th. when significant amount of office space was absorbed via purchases.m. however.3. Petersburg | www. Around 1000 320. retail and warehouse market Information for the current chapter was developed and kindly provided by Jones Lang LaSalle 5.000 sq. IT companies were also active on the market in 2011. 200 mainly due to a number of projects announced 0 for delivery in 2011 being delayed.3. Petersburg Enterprise Europe Network .m Office market overview Supply Class A&B stock dynamics In 2011 modern office stock (Classes A and B) in St.

000 sq.3.7 405.7% to 13. Module A Regional Center – St.9 19.m) Completions (thousand sq. Potential tenants remain price-sensitive. Outlook Further market development will be highly dependent on the general economic conditions in the country.m.000 2009 1.7 170.5%.025.6 15.2 175.0 600 2006 821.m/year (excluding VAT and OpEx). Class A Base rent.3.4.7 500 2011 2. Slight growth within 5% for rouble-denominated rents was observed throughout the year. Class B Vacancy rate (R axis) 5. Petersburg | www.m/year) Source: Jones Lang LaSalle.6 111.9 600 2010 1. Prime office rents rose from USD 500 to USD 550 per sq.5 6. the volume of available space was around 270.7 192. 2011 2005 634. Further growth is expected to be uneven due to high volumes of remaining available space.1 5. which limits rental growth.3 5. At the end of 2011.1. which in turn influence demand for office space. The expected higher level of completions will result in sustained vacancy rates. Real rental increase is expected to be at 5-7% with the most popular office properties demonstrating even greater increases.9 25.5.5 550 506.8 128.1.Russia. 2004 Stock at the end of year (thousand sq.doingbusiness. The current elevated level of available space will also limit potential rental growth.0 500 Doing business in St. In 2011 rental rates remained stable with only minor changes explained mainly by currency rate at USD 320400 for Class A and USD 240-320 for Class B office buildings.m) Vacancy rate (%) Prime base rent (USD/sq.9 5.8 900 2008 1. USD/sq.402.08 13. 2004 2005 2006 2007 2008 2009 2010 2011 Base rent.3.6 310. Petersburg Enterprise Europe Network .0 1.m/ year 800 700 600 500 400 300 200 100 0 Market balance and rents Rent and vacancy rate dynamics 30% 25% 20% 15% 10% 5% 0% Since the beginning of the year the average vacancy rate has decreased from 19.825.ru 149 .1 800 2007 997.3 186.713.

Petersburg market for further development as well.) and reached 200. both local and international retailers which are already present in the city. Their expansion is restrained. although previously the estimations of future pipeline were more moderate. of leasable space) near new metro stations.2. sq.2.000 sq.000 sq.5.m.400 sq.6% YoY in real terms. 150 Doing business in St.m. who have already started their activity in Moscow. 5. Petersburg Enterprise Europe Network . Approximately 460. increasing 2. with the largest projects being Leto SEC (79. % YoY At the same time.) and City Mall 2nd phase (30.ru Jun 11 Sep 11 Jun 08 Jun 09 Jun 10 . Demand Retail turnover and income dynamics 80% 60% 40% 20% 0% Mar 08 Mar 09 Mar 10 Mar 11 Sep 08 Sep 09 Sep 10 Dec 07 Dec 09 -20% -40% Dec 10 Real turnover growth in January-October 2011 showed low but positive values. by the lack of quality retail space in popular shopping centers.6% YoY based on the first nine months in 2011.000 sq.000 to 40. including redevelopment of existing outdated retail schemes and concentration of new shopping centers of average size (from 20.3. although a number of retailers.000 sq.000 sq. at 3. that have not entered the Russian market yet.Russia. Real income growth dynamic was quite moderate as well. Those brands.m. are considering St. however. Dec 08 Real income growth.doingbusiness. th.2.). Seven new quality shopping centers were delivered to the market in 2011.m. are opting to wait for the economic situation to become clearer.e. Lower indicators such as these may limit the interest of international newcomers to the market. Annual completions Stock at the beginning of the year Vacancy rate (R axis) Both projects that were frozen in crisis period. Around 200.3. of new quality retail space is planned for delivery in 2012 not considering possible delays. and new retail schemes are once again being actively developed.m.2.6 million sq. whereas larger formats have been focused on actively developed residential zones. In 2011 the average vacancy rate declined from 7% to 6%. % YoY Retail turnover real growth.m.000 sq. The level of completions in 2011 exceeded average retail volumes delivered in 2009-2010 (i. are expanding their presence. Petersburg | www. Retail market overview Supply Shopping center stock 14% 12% 10% 2000 1600 1200 800 400 0 2012F 2013F 8% 6% 4% 2% 0% 2004 2005 2006 2007 2008 2009 2010 2011 In 2011 the quality shopping center stock reached almost 1.m.3. Module A Regional Center – St. The year 2011 was characterized by a number of market trends.m.1. 5. whereas precrisis indicators rarely showed annual growth values below 10%.m. 100. of retail space will be delivered to the market in 20122013.

0 3.Russia. Petersburg | www. supermarkets and hypermarkets.3.0 3. showed growth between 1020% depending on segment.234.0 13.7 7. There will be a limited number of new brands entering market in 2012.380. However. so fixed rate is applied more widely than that based on turnover. prime rents are expected to show a raise during next year. Petersburg Prime rental rates in high quality shopping centers remained at USD 2.4 3.0 1.1 200.000 2005 186.5 2.2.5 201.7 2. as an alternative for fixed rents.3. Rents denominated in USD or EUR often specify a fixed lower limit of the exchange rate. Petersburg Enterprise Europe Network .2 68.5 623. Foreign developers are using LIBOR and HICP indices for rental indexation.doingbusiness.m) Completions (thousand sq.5.6 61.194. remains as an option in leasing contracts.m/year) 117. Roubledenominated rental contracts usually include an annual increase of 5-10%.m/year Budapest Hamburg Warsaw Berlin Prague St. USD/sq.581. As a result. 2011 Doing business in St. entertainment. throughout the year. The rental increase is expected to reach about 5-10% in 2012. Rents Prime base rents. the target turnover rent is rarely achieved. whereas rents for some types of tenants. Outlook The lack of retail turnover growth and instability of the world economy might force retailers to slow down their expansion plans.3. Turnover rent.100 2006 809.0 1.0 2.8 184. such as cafes and restaurants.ru 151 .800 2010 1.m) Vacancy rate (%) Prime base rent (USD/sq.000 per sq.400 2007 101.7 0.6 6. Paris London Moscow 0 500 1000 1500 2000 2500 3000 3500 4000 4500 5.2.000 Source: Jones Lang LaSalle.5 145. Module A Regional Center – St.6 0.4. Competition between brands already operating on the market will continue to strengthen as long as the developers will be considering them as potential occupiers in the situation of lack of new international retailers. 2004 Stock at the end of year (thousand sq.000 2008 1.m.5 2.000 2011 1.000 2009 1.0 2.8 40.3 0.

5.m. some developers resumed work under previously stalled projects or announced new projects for Existing stock Vacancy rate (R axis) 2012-2013. Module A Regional Center – St.Russia.doingbusiness.3.1.m.000 sq. 5% 300 developers are not eager to return to active expansion. The total volume of deals was even higher. The most popular size of a single deal was still 5. quality warehouse stock in St. with the share of H2 deals constituting more than half of the total volume. Petersburg warehouse market were manufacturing. Larger spaces were also in demand.800 sq. 1800 1500 1200 25% 20% 15% 900 10% 600 After the construction boom of 2007-2008.3.m.000 sq. m. Currently.2.3. Warehouse market overview Supply Stock and vacancy rate dynamics By the end of 2011.m.m. th. USD/sq. Petersburg | www.ru 2012F 2004 2005 2006 2007 2008 2009 2010 2011 .76 million sq. Four Class B warehouse projects were delivered to the market with the total leasable area of 43. However. and retail and distribution companies. and as a result the volume of deals in this segment reached more than 30% (62. Petersburg Enterprise Europe Network . This trend is expected to grow in the nearest two years as a number of such projects is in negotiation stage now.000 sq. Petersburg reached 1. including the owner-occupied complex of 19.00010. there is a small number of 0 0% projects under construction. Net absorption reached around 152. from the beginning of 2011. Logistic companies became more active in the end of the year.3. In January-September 2011 the most active occupiers on the St.m/y ear Demand Prime rental rates Demand for new warehouse space in 2011 was comparable with 2010.5. key market players prefer to work on ‘built-to-suit’ projects. One third of all deals closed in 2011 were in a range of 15.3. At the same time. Annual supply was very low.000 sq. m) of all space leased in quality warehouse complexes from the beginning of 2011.sq.m. 160 140 120 100 80 60 40 20 0 2011 2003 2004 2005 2006 2007 2008 2009 2010 152 Doing business in St.3. 5. as there were no speculative warehouse complexes delivered to the market in the previous three quarters of 2011. when half of the existing supply was delivered.000-20.800 sq.

A tangible lack of class A premises is expected as only two warehouse projects with the total leasable area of 50.3 0. This was a result of supply/demand misbalance.8 342.5 125 2007 1. the volume of available space in quality warehouse projects is well below 100.m/year) Source: Jones Lang LaSalle.doingbusiness.m) Vacancy rate (%) Prime base rent (USD/sq.8 4.9 1 150 2008 1.3. rent is expected to grow throughout the next year as long as economic situation remains stable. Module A Regional Center – St. Warehouse demand breakdown by company name 2011 2010 2009 2008 2007 2006 0% 20% 40% 60% 80% 100% Logistic Manufacturing Retail and distribution Other 5. As the volume of available space remains limited.1 22.7 110 2009 1.m/year showing annual growth of 5-10% on average and up to 15% for the most demanded properties.717.644.2 105 2011 1. Occupancy rate in these projects is already close to 50%. 2004 Stock at the end of year (thousand sq.3.m.756. when very low completion level was accompanied by high absorption level throughout 2011.3. Outlook Trends observed during the last year will continue in 2012.3 115 2006 595. 2011 2005 460.3.9 73.m) Completions (thousand sq. In 2011 it went down from 16% in the beginning of the year to 4% in the end of the year.7 485. In 2011 rental rates increased from USD 95-105 to USD 110-120 per sq.5 0. Market balance and rents The vacancy rate has been declining since the beginning of 2010. Vacancy rate will continue to decline due to the limited number of projects planned for delivery to the market.081. Currently.8 135.000 sq.9 430.3 110.Russia.3 90 2010 1.8 16.0 0. Petersburg Enterprise Europe Network .4 120 118. are planned to enter the market.5.511.4.ru 153 .1 132.7 43.m. Rental rates will increase with the same speed as in 2011 showing 5-10% growth per year.000 sq.3. Petersburg | www.2 19. Stable growth of demand resulted in rental increase.1 110 Doing business in St.

Depending on your location. Petersburg. Petersburg run on GSM and CDMA 2000 networks. West call.    61 Detailed information on tariff plans and services can be found on company’s websites. Module A Regional Center – St.5. Petersburg | www. it is possible to obtain a necessary connection type. Doing business in St. major hotels. Providers offer various telephone. Web plus. GSM networks are mostly widely used and cover all parts of the city. You can use the following cards to optimize you international communication costs – Apollo Phone. CDMA 2000 – Skylink.ru 154 . Virtually all forms of technology for Internet connections are available in the city. The largest GSM operators are Beeline.61 Landline communications are available from a number of operators. Metrocom. mobile and internet services. Wi-Max. Master. depending on your location (technical availability) and needs. including dial-up connection. IP calling cards are intended for international. Quality phone coverage is available at affordable prices.4. CDMA offers quality communication as well as high-speed Internet access.doingbusiness. Petersburg. Communication You can easily find all communication channels to suit your business needs in St. Petersburg Enterprise Europe Network . ADSL. MTS. Peterstar. Tele2.Russia. shopping and office centers & restaurants. national and local calls. Arctel. dedicated channels. Phoneclub. Free or paid Wi-Fi hotspots can be accessed at the airport.  Stationary and mobile telephone networks are well developed in St. Most mobile operators in St. Megafon.

66 — * Tariffs (with the exclusion of residential customers tariffs) are indicated exclusive of VAT.80 1. 5.5.ru 155 . Electricity Units RUB/kW per hour RUB/kW per hour RUB/kW per hour Tariffs* 2.5. Source: Tariff Committee of St. Petersburg | www. Tariffs provided for residential customers are valid till June 30. Petersburg” are effective beginning January 1. 2012.34 1. Petersburg Administration.5. Petersburg Administration. 5.3.doingbusiness.70 Technical water — 3. In St. 2012 and ending June 30. Doing business in St. Petersburg the regulating bodies are the Regional Energetics Commission of St.78 18.74 * Tariffs (with the exclusion of residential customers tariffs) are indicated exclusive of VAT.5.207.78 21. Petersburg Enterprise Europe Network .Russia. 2012: Type of customers Customers (that pay for heat generation and transfer) Population 1. Source: Tariff Committee of St. 2012: Grades and zones 1 grade tariff Tariffs varied per day/night zones Night zone Day zone *Inclusive of VAT. 5. Water supply and water discharge The following water tariffs by the State Unitary Enterprise “Vodokanal of St. 2012 and ending December 31.207.5.34 The following heating tariffs are effective beginning January 1. water. heating and gas) for business as well as consumer purposes in Russia are regulated by the state. Module A Regional Center – St. 2012 and ending June 30. Utilities Utility prices (electricity. 2012: Type of customers Population Other Units RUB per cubic meter RUB per cubic meter Tariffs* Drinking water 15. Tariffs provided for residential customers.1.38 Water discharge 15. Petersburg Administration.424.2.71 2.81 The following electricity tariffs are effective beginning January 1. Petersburg Administration. Heating Units RUB per hectocalory RUB per hectocalory Tariffs* Hot water Steam 1. Source: Tariff Committee of St. Petersburg Government and the Tariff Committee of St.

48 28. 5.2012 3.doingbusiness.Russia. Shell and Statoil. Petersburg Administration.5.2012 – 31. Natural gas Natural gas tariffs may vary depending on location. Fuel Gasoline A76 Ai 92 Ai 95 Diesel Units RUB per liter RUB per liter RUB per liter RUB per liter Average retail price* 25.5. Petersburg Enterprise Europe Network . Petersburg. 156 Doing business in St.79 26.60 28. operate in St. Numerous local and international supplies.07 * Inclusive of VAT.5.78 01. The average retail prices of gasoline and diesel fuel in St. Module A Regional Center – St. Industrial Policy and Trade.805.ru .13 * Retail prices (inclusive of VAT) as of December 2011.2012 – 30. Petersburg | www. Tariffs provided for residential customers.5.06. including BP. season. 2012: Units Natural gas RUB per 100 cubic meters Tariffs* 01. Source: Committee for Economic Development. Gasoline and diesel fuel Fuel prices are not regulated by the state.4. The following natural gas tariffs are effective beginning January 1.2012 4.12. volume of consumption and other issues. Source: Tariff Committee of St.375. Petersburg are provided in the following table.01.07.

Russia Small and medium-sized enterprises (SMEs) are non-subsidiary. Definition of SME – EU vs. varies across countries. Petersburg | www. Petersburg is ranked as the leader along the number of key indicators:    #1 region in the number of small businesses (368. In addition to this. stats. In most OECD countries small enterprises are those with less than 50 employees. Petersburg has been and still remains the leader in the development of small businesses among other regions of the Russian Federation. Module A Regional Center – St. St.1. Enterprise and Industry.doingbusiness. 5 employees. independent firms. During the recent years small business has been gaining more weight in the local economy. as in the European Union". Some countries set the limit at 200 employees.64 The federal law #209-FZ “On small and medium business development in the Russian Federation” which defines small.6 mln Micro EU 10 € 2 mln € 2 mln Russia 1-15 RUB 60 mln. In the words of the Organization for Economic Co-operation and Development (OECD) Glossary of Statistical Terms "the most frequent upper limit designating an SME is 250 employees. ≈ € 1. while the United States considers SMEs to include firms with less than 500 employees. According to the National institute for system studies of entrepreneurship. and either: Turnover Or: Balance sheet total EU 250 € 50 mln € 43 mln Russia 101-250 RUB 1 bln ≈ € 24 mln Small EU 50 € 10 mln € 10 mln Russia 15-100 RUB 400 mln ≈ € 9. Small and medium-sized enterprises (SMEs): SME Definition.Russia.63 6. This number.62 As for world rankings. 62 63 As of the beginning of 2011 Committee for Economic Development.oecd. SME support 6.3 times higher than the respective average Russian indicators. St.4 mln - Source: European Commission. small and micro enterprises in Russian and the European Union. These indicators are three times and 1.ru 157 . Industrial Policy and Trade 64 OECD Glossary of Statistical Terms (www. medium-sized and micro enterprises was adopted in 2007. The following table summarizes the differences in definitions of medium-sized. however.org/glossary). while micro-enterprises have at most 10 or.2. Petersburg is ranked 18th in the number of small businesses per 100 thousand residents and 33d in the share of residents employed in small businesses. Petersburg Enterprise Europe Network . which employ less than a given number of employees. Overview St. financial assets are also used to define SMEs. Federal law #209-FZ “On small and medium business development in Russian Federation”. Doing business in St.7) per 100 thousand residents #1 region in the volume of small business turnover (312%) per capita in percentage of the average in the Russian Federation #2 region in the number of residents employed in small businesses (345. in some cases.3 thousand). Medium-sized Indicators Headcount.6.

01.2009 01. repair of motor vehicles and household goods Manufacturing Construction Hotels and restaurants Transportation and communication Other communal.2011 Individual entrepreneurs Companies Source: Committee for Economic Development.8 180.01.7 207 65.doingbusiness.1 162. Industrial Policy and Trade Doing business in St.8 276.01.01. Module A Regional Center – St.2007 01. Industrial Policy and Trade Small businesses by sector of economy (2010): 4% Wholesale and retail trade.9 53.6 94.3.4 76.01.2008 01.01.01. Industrial Policy and Trade Type of small businesses (thousand units): 126.4 189.4 Number of small businesses (thousand units): 261. Statistics 301.9 185.01.4 86. Petersburg Enterprise Europe Network .Russia.4 01.2010 01.2007 01. Petersburg | www.5 227.01.3 01.2010 01.ru 158 .01.2011 Source: Committee for Economic Development. rental & leasing and other services Other Source: Committee for Economic Development.2008 01. social & personal services 20% 4% 45% 9% 8% 3% 8% Real estate.6.2009 01.

Petersburg | www. Industrial Policy and Trade Doing business in St.ru 159 .731 2.253 Trade Other 406 257 01.2011 01.01.098 407 749 857 991 Manufactruring 2.2010 542 1.01. Module A Regional Center – St.01.Turnover of small businesses (billion roubles): 927.Russia.3 2006 2007 2008 2009 2010 Source: Committee for Economic Development. Petersburg Enterprise Europe Network .8 608.4 981.2009 01.2008 Source: Committee for Economic Development. Industrial Policy and Trade Investment in fixed capital of small businesses (million roubles): 01.266 1.401 2.doingbusiness.01.086.7 1.280 1.

City Business Incubator. The total financing of the program amounted to 4.4 thousand roubles.doingbusiness. 879. Module A Regional Center – St.ru 160 .078. Strengthening of market positions.6% of the total volume of all subsidies for small businesses. Leasing of fixed assets.7 million roubles were allocated for the implementation of the activities in 2010. Grid connection subsidies. Financial support. Small business start-up grants. services. During the program implementation period the number of small businesses has increased by almost 70% (from 181 thousand in 2007 to 301 thousand in 2011).7445. The city has managed to significantly reduce the problems of limited financial resources for startups. Information support. Improving information management of authorities. Petersburg branch. Rental subsidies for separate groups of businesses.9 thousand roubles in subsidies. and Enterprise Europe Network . Industrial Policy and Trade Committee for Economic Development. Export subsidies for small businesses manufacturing export products or/and works. Industrial Policy and Trade Doing business in St.66 65 66 Committee for Economic Development. A number of special programs have been implemented since the launch of the program. SME support and development programs Small business development program has been functioning in St.Russia. Petersburg Enterprise Europe Network . Manufacturing enterprises represent a priority target group of the subsidy program.1. Fund for Small Business Credit Assistance. unfavorable credit conditions and complexities of new market entry. including the establishment of the Venture Fund. Petersburg | www. In 2010 manufacturing enterprises were granted 22.4. Development of social partnership. Petersburg since 2008. In 2010 the Action Plan stipulated the implementation of 30 activities. Increasing public significance.St. The following 9 special programs of the Action Plan envisaged direct and indirect subsidizing of parts of expenditures incurred by small businesses:        Business loans from commercial banks for small businesses. which included both direct and indirect support of small businesses.4. Petersburg (2008-2011) The priorities of the Action Plan implemented during the period of 2008-2011 included:        Development of human resources potential. Implementation of the Action Plan aimed at development and support of small business in St. Participation in exhibitions and fairs. thus accounting for 62.6. high rental costs.65 6.

5%.4 billion roubles for the period from 2012 till 2015 with the largest share allocated for the financing of special subsidy programs as well as placement of government contracts with small and medium-sized business. Small and medium-sized business is to increase the number of work places by 7%.doingbusiness. Petersburg Enterprise Europe Network . Petersburg (2008-2011) are presented in the following table. The Program’s budget constitutes around 3.2 bln roubles in credits More than 100 small companies have undergone business incubation period 1. Major problems Limited financial resources Program solution Special programs Special credit assistance program Establishment of the Fund for Small Business Credit Assistance High rental costs Establishment of the First City Business Incubator Buy-back of rental premises Special program .Russia.500 specialists educated and trained Services provided to 800 small businesses Effective dialogue pursued between businesses and authorities Shortage of qualified human resources Complexities linked to new market entry Administrative control issues Source: Committee for Economic Development. Module A Regional Center – St.7 bln roubles which allowed to secure 6. Industrial Policy and Trade Doing business in St.2. Petersburg Results 1 bln roubles in subsidies granted to 3. The Program envisages a 1.St.151 subsidies granted to the amount of 240 mln roubles 859 contracts of guarantee to the amount of 2. Industrial Policy and Trade 6. Petersburg envisages the implementation of the following major goals till 2015:    Increasing the comfort of living Promoting affordability and diversified assortment of products and services provided to the residents of St. services) produced by small and medium-sized businesses in the total GRP volume as well as a 5% increase in tax receipts from small and medium-sized businesses. growth in the number of population employed in small business Changing the sectoral structure of small business Increasing the share of manufacturing and innovative sectors.5% increase in the share of products (works.4. growing small businesses into medium-sized businesses.361 purchase and sale agreements concluded More than 2. thus increasing budget tax receipts. Petersburg | www. Petersburg Establishment of the Public Council on Small Business Development under the auspices of the Governor of St.Regional University of Small Business Establishment of Enterprise Europe Network . and a 10% increase in the share of innovative and manufacturing enterprises. which will allow to increase the share of population employed in this sector by 2.67 67 Committee for Economic Development. The growth in the average salary paid by small and medium-sized businesses is to constitute 10%. Petersburg Increasing self-employment among population Increasing the number of work places.787 small businesses 1.The results of the implementation of the Action Plan aimed at development and support of small businesses in St.ru 161 . Petersburg for 2012-2015 A new Program for small and medium business development in St. Program for small and medium business development in St.

Improved information support - Source: Committee for Economic Development. Improved access to financial resources Types of support Special programs: Leasing of fixed assets Business incubator Business loans from commercial banks for small manufacturing businesses Subsidies for small arts & crafts businesses Grid connection subsidies Small business start-up grants Franchising costs subsidies Increasing the assets of the Fund for Small Business Credit Assistance Increasing the assets of the Fund for Venture Investments Development into Small Scientific and Technology Businesses Special programs: Enter the regional markets Exhibitions and trade fair activities Certification Intellectual rights protection Enterprise Europe Network – St. interregional and international markets 3. Module A Regional Center – St. Petersburg | www. marketing and other business information for SMEs via Internet Development and management of the state information system of St.doingbusiness. Strengthening of SMEs positions at intraregional. Increasing public significance of SMEs 6.Russia. Industrial Policy and Trade 162 Doing business in St. services Improvement of energy efficiency of SMEs production Subsidies: Support of SMEs pursuing innovative activities within a cluster through acquisition of manufacturing and technological equipment Development of the localization. import substitution and subcontracting system Establishment of the regional center for the coordination of export-oriented SMEs Functioning of the Public Council on Small Business Development under the auspices of the Governor of St.ru . systematization and distribution of legal. Development of social partnership 4. Petersburg Export subsidies for small businesses manufacturing export products or/and works. analysis. economic. Petersburg Enterprise Europe Network . Petersburg’s Register of SMEs and business support infrastructure” 2. Development of human resources potential 5.The major activities implemented in the framework of the Program are presented in the following table: Focus of the Program 1. Petersburg “St. Support of business initiatives of socially unprotected groups of population Complex monitoring of SMEs Collection. Petersburg and specialized commissions Special programs: Regional University for Small Business Basics of entrepreneurship for school students Women entrepreneurship support Technological internships Promoting youth entrepreneurship Popularization of entrepreneurship.

Russia Tel. Petersburg. Industrial Policy and Trade 16 Voznesensky prospect 190000 St.ru | www.4.spb-mb.spb. Petersburg | www.ru Doing business in St.3.cedipt.ru 163 .ru | www.ru. Petersburg Enterprise Europe Network . Contacts Committee for Economic Development. Further information Further details are available at the official website of the Program for Small Business Development in St. Petersburg at www.doingbusiness. Module A Regional Center – St.4.spb-mb.Russia. 6.6.: +7 812 576 00 01 | Fax: +7 812 570 35 54 info@cedipt.4.spb.

Consumer Market and Licensing. skills training. Organization and implementation of citywide celebrations.Russia. External Economic Activity. Overview of the business support infrastructure in St. Small and Medium-Sized Entrepreneurship. Petersburg. Regulation of trading activities.: +7 812 576 00 01 | Fax: +7 812 570 35 54 info@cedipt. 7. information. Industrial Policy and Trade is tasked with long-term objectives of development of growing economy with high level of competitiveness and share of human capital.spb. Petersburg. Together with the Finance Committee. Petersburg Business support infrastructure provides extensive opportunities for business development during the economic downturn and support for securing future economic prosperity and growth. 7. Authorities Committee for Economic Development. Support of implementation of investment projects in St. forums and trade fairs. etc. Licensing of certain activities. Petersburg.2. Support of Industry. Agri-Industrial Complex and Economic Security.ru 164 Doing business in St.spb. Contacts of the business support infrastructure 7. Petersburg. Petersburg Enterprise Europe Network . Module A Regional Center – St. Improvement of Public Contracting. The Committee is comprised of the following 6 blocks each formed of specialized departments and units: Economic Planning. consulting. Implementation of cluster policy.1. small and medium-sized businesses in St.cedipt. Committee for Economic Development. Tariff Committee and Labor and Employment Committee. Implementation of innovation policy in St.1. Petersburg. Industrial Policy and Trade The Committee for Economic Development. Russia Tel. Industrial Policy and Trade 16 Voznesensky prospect 190000 St. Tasks         Implementation of socio-economic development program of St. including financial support.7. Petersburg | www. Development of Innovations and Investment Attraction. Development of Industry. Development of Medical and Pharmaceutical Projects. Development and implementation of programs aimed at supporting industry.doingbusiness. Contacts Committee for Economic Development.ru . This section of the guide summarizes the existing support from government to help your business succeed. The Committee is also entrusted with evaluation and coordination of other committees of the Government of St. Industrial Policy and Trade forms the financial and economic sector of the Government. Petersburg as well as district administrations in the above-mentioned areas. advice.2.ru | www.

ru Doing business in St.: +7 812 576 71 13 | Fax: +7 812 576 76 33 kvs@gov. Cooperation with Compatriots Abroad and Regions of the Russian Federation. Petersburg Enterprise Europe Network . Committee for External Relations The Committee for External Relations of the Government of St Petersburg is tasked with implementation of the government policy of St. Petersburg | www.kvs. social sphere. Petersburg Coordination of activities in the development and implementation of international technical assistance and business cooperation programs. Petersburg.spb.doingbusiness. Petersburg government Implementation of the government policy aimed at supporting and developing ethnic cultures. The Committee includes the following specialized divisions and departments: State Protocol Division. Asian. North America and Australia. interregional cooperation of St. Petersburg in the sphere of development of external relations and interregional cooperation.2. languages. Department for Europe. Department for Coordination of State Programs for Interethnic Relations.Russia. Petersburg Organization of work aimed at supporting compatriots residing abroad and using their potential for the development of relations with foreign countries Other issues of foreign relations of St. Tasks       Implementation of the government policy of St. Petersburg in the sphere of the development of external relations of St.ru | www. Petersburg. Russia Tel.spb. Petersburg in compliance with the legislation in force. Petersburg Coordination of activities in the organization of participation of citizens and organizations in interregional and international conferences and other interregional and international events held by the executive agencies of the St. Contacts Committee for External Relations of St. Petersburg Smolny 191060 St. African and Latin American Countries Department. education. culture and health care in St.2.ru 165 . traditions and customs of the communities residing in St. including those related to the development of the city economy.7. Module A Regional Center – St.

doingbusiness. subordinate institutions and other entities participating in projects. Services The Agency renders the following services:   Information and consulting support at all stages of investment projects. Petersburg and improve its competitiveness both on domestic and external markets. The mission of the Agency is to increase the investment potential of St.: +7 812 320 50 16 | Fax: +7 812 320 50 15 gapi@spbgapi. Preparation of documents for obtaining initial permits and town-planning documents for designing and construction.1. Providing information necessary to make decisions on investment. construction and commissioning of facilities.ru 166 Doing business in St. Petersburg. Petersburg investment policy and providing integrated support of investment projects for 7 years. availability of sites and condition of infrastructure facilities. Arrangement and carrying out of meetings with participation of stakeholders and project implementation organizations. Support of investment projects at all stages of design.Russia. conditions for doing business in St. execution of property rights for land plots and real property facilities. The Agency has the status of a duly authorized organization of the St. applicable legislation and forms of state support. resolution of current and extraordinary matters.g. permitting documents) from authorized agencies and organizations. 7. The Agency liases closely and personally with every customer and renders full spectrum of investor support services free of charge. e. Petersburg | www.       Contacts St. Investment support St.ru | www.ru . commissioning of construction/ reconstruction facilities.7. Petersburg. Petersburg Enterprise Europe Network . Petersburg. Petersburg Investment Promotion Agency (St. Selection of land plots most suitable for project implementation. possible partners and project financing sources. Module A Regional Center – St.spbgapi. Coordination of investor interaction with executive agencies of the State Government in St.3. Petersburg Investment Promotion Agency St.3. Petersburg state institution “City Agency for Industrial Investments”) has been working on implementation of St. Petersburg State Institution “City Agency for Industrial Investments”) St. Petersburg Government for attraction of investments into the City. Assistance in obtaining necessary approvals (statements. Petersburg Investment Promotion Agency (St. Russia Tel. Petersburg State Institution “City Agency for Industrial Investments” 88-90 A Griboedov Canal Embankment 190068 St.

Partners. Petersburg 14 Izmaylovsky prospect 190005 St. Services The EEN branch in St. Petersburg on our portal at www.Russia.ru 167 . Module A Regional Center – St. Russia Tel.Russia. Petersburg Foundation for SME Development since 2008.doingbusiness. suppliers or subcontractors in St. Petersburg. Our services to foreign companies are provided free of charge and are aimed at fostering business cooperation:  Events Together with our partners we implement a number of international and national events aimed at developing and promoting international business cooperation. 575 04 80 | Fax: +7 812 712 66 07 info@enterprise-europe-network. Petersburg You can find business offers and products from companies located in St. Petersburg The Enterprise Europe Network (EEN) is a key instrument in the EU's strategy to boost growth and jobs. SME business cooperation support Enterprise Europe Network – Module A Branch – St.ru Doing business in St.ru. Information support Our internet portal “Doing business in St. Petersburg Enterprise Europe Network . Basic partner search In order to find business partners. investors and other parties interested in pursuing trade. investment activities and starting business in St. Petersburg.1. outsourcing.4. Petersburg | www.ru | www. Enterprise Europe Network .doingbusiness.7. business offers and products from St. Module A Regional Center – St. 7. Petersburg and is operated by St. 325 8351. Bringing together 570 business support organizations from 49 countries.4. ENN’s mission lies in helping small businesses make the most of the business opportunities in Russia and the European Union.doingbusiness. Petersburg” is an entry point for international SMEs.ru . Petersburg is co-financed by the Government of the Russian Federation and the Government of St. we help small companies seize the unparalleled business opportunities in the EU Single Market. Petersburg focuses on providing business support to Russian companies. Contacts Enterprise Europe Network – Russia Gate2Rubin Consortium.: +7 812 325 84 16.    Extensive information on our services as well as key business and investment issues is available in English at www. Module A Regional Center – St. Petersburg.doingbusiness. Gate2Rubin Consortium. please contact your local EEN branch and our colleagues will guide you through the partner search process.

417-31-30 Business hours: M-Th 9:30 am to 5.: +7 (812)576-25-89 | Fax: +7 (812)576-25-89 info@crpp.5. acquisition of fixed assets on leasing. CBDS was established in 2010 and is managed by the Committee for Economic Development.1. Services  Do you need to get permit.ru | www.   The Center conducts educational seminars. Petersburg Enterprise Europe Network . The Center provides support to St. Petersburg from January 2012. protection of intellectual property.30 pm. CBDS promotes the creation of R&D-centers in St. Petersburg. Would you like your company to participate in state support programs? CBDS advises SMEs on state support programs. government corporations. energy efficiency. certification.ru Multi-Services Center let.crpp.ru. SME support St. panel discussions. O 10-12 Krasnogo tekstilschika street Tel. Petersburg state institution “Center of Business Development and Support” 16 Voznesenski prospect 190000 St. such as crediting by commercial banks. Petersburg State Institution “Center for Business Development and Support” The Center of Business Development and Support (CBDS) aims to improve the quality and accessibility of state services for juridical entities and individual entrepreneurs.crpp. CBDS contributes to involvement of St. Sa-Sun closed.5. license.ru . federal state unitary enterprises. agreement to develop your business? Make use of the services provided at the Multi-Services Center. Petersburg | www.30 pm. meetings and consultations as well as assists in the organization of fairs and exhibitions. backing the costs caused by product exports.30 am to 4.Russia. Russia Tel.7.Petersburg’s SMEs in the process of creating high-tech products on subcontract basis paving the way for localization of the leading foreign companies.doingbusiness. The Center cooperates with development institutions and St. Extensive information on services and activities is available at www. Fri 9. 168 Doing business in St. as well as in federal programs. Petersburg companies participating in competitions for funding of innovative projects by the programs of innovative development of companies with state participation. Petersburg.: +7 (812) 417-31-31. Further.-Petersburg. Petersburg organizations tasked with ensuring continuous financial and non-financial support for innovative projects. Contacts St. the Center implements the mechanism of import substitution in cooperation with large -scale enterprises of St. Do you have any ideas? Do you want to create or have you already been creating new products and technologies? CBDS facilitates the implementation of measures aimed at stimulating R&D activities and contributes to the development of Technological platforms. Industrial Policy and Trade. Module A Regional Center – St. 7. The Multi-Services Center started to provide various state services for entrepreneurs on the basis of one-stop shop in cooperation with 11 executive authorities of St.

Petersburg and many others.5.7. Public Council regularly holds seminars.doingbusiness. Government and other executive authorities on the most acute problems of small business development. ambitious».osspb.Russia. Russia Tel. Petersburg on the issues pertaining to the realization of government policy in the sphere of small business development and support. Aligning interests of executive authorities and small business associations regarding the issues of implementation of socio-economic development policy of St. Public Council on Small Business Development under the auspices of the Governor of St. «Young. proprietary.ru | www.   Public Council actively carries out analyses of legislative acts regulating business activities. Informing the Governor of St. Petersburg Enterprise Europe Network . A lot of attention is also paid to information support. Petersburg». Petersburg 46/5 Mayakovskogo Street 191014 St. round tables on acute issues for businesses. Public Council unites representatives of the most important public business organizations. Module A Regional Center – St. conferences. St. Developing positive image of small business. 576 26 59. developing business culture and business ethics. Merchant club of St. bold. raising public confidence in businesses. presents TV program «Small business of a big city». Petersburg Chamber of Commerce and Industry.: +7 812 576 25 66.2. Petersburg. city planning and social policy.ru 169 . Public Council publishes periodical «Public Council Newsletter». Petersburg. Petersburg Union of Entrepreneurs. OPORA RUSSIA.ru Doing business in St. St. Services    Rendering assistance to executive authorities in the implementation of government policy in the sphere of small business development and support. Petersburg branch of «Business Russia». «Business lady Petersburger». Petersburg. «Mass media about small business». 576 26 58 | Fax: +7 812 273 58 45 sovet@osspb. Petersburg. St. Contacts Public Council on Small Business Development under the auspices of the Governor of St. Petersburg | www. organizes 4 city competitions – «Best entrepreneur of St. Petersburg Consulting and advisory body under the auspices of the Governor of St. Developing recommendations on protection of rights and interests of small businesses in the course of development and implementation of economic. including the Union of Industrialists and Entrepreneurs of St.

No breaches of previously concluded credit agreements.ru | www.Standard package of documents Means of loan guarantee: . property.ru 170 Doing business in St. 6 months prior to the Fund’s guarantee application Loans to individual entrepreneurs and legal entities to the amount of 50.000-1.Percentage accrues on the actual amount outstanding . Russia Tel.Fund’s commission: 1.: +7 812 576 25 75 | Fax: +7 812 273 49 55 credit-fond@bk.)  Contacts Fund for Small Business Credit Assistance let. 46 Mayakovskogo Street 191014 St.Loans up to 100. Petersburg. etc.Business owner guarantee .Loans over 100.Individual approach to every customer . A.Small and medium-sized businesses . leasing. Module A Regional Center – St.6.Overpayment for 12 months: 5.6.Russia.Credit agreements concluded for at least 3 months .ru . commission free .At least 3 months of business activity prior to the date of application . The Fund carries out two programs aimed at supporting small and medium businesses in St. bank guarantees.Maturity: 3 to 12 months .doingbusiness. Financial support Nonprofit organization “Fund for Small Business Credit Assistance” Nonprofit organization “Fund for Small Business Credit Assistance” was established by the Government of St. Petersburg | www.7.000 roubles: guarantee and collateral (motor vehicles. etc.Repayment any time.credit-fond.75% per annum . loan agreements.Application review period: 3 to 5 days . 7.000 roubles at 10% interest per annum Conditions of the micro finance program: .37 participating banks Eligibility requirements: .000 roubles: business owner guarantee . Petersburg Enterprise Europe Network . Petersburg: Services  Credit guarantee for businesses to the amount of 50% of the total credit amount and up to 12 million roubles Conditions of the credit guarantee program: .000. Petersburg in 2007.5% .1.

including description of risks linked to financing Selection criteria (2): . copyrights.ru | www. Petersburg | www.doingbusiness.Availability of intellectual property rights (patents.Business development plan. Petersburg. Module A Regional Center – St.Russia. Services  Selection of innovative investment projects for small science and technology enterprises engaged in priority areas of science. 910 34 33 | Fax: +7 812 640 96 45 venture-spb@bk.Strong business team capable of developing a company in conditions of fast growth and limited resources .: +7 812 640 96 45. Petersburg” The Fund for Venture Investment Development Assistance for Small Science and Technology Enterprises of St. technology and engineering in Russia The Fund carries out the selection of innovative projects for investment from two sources – (1) Closed-End Mutual Fund for High-Risk (Venture) Investments “Regional Venture Fund for Investment in Small Science and Technology Enterprises of St.Withdrawal from Investment company in 1-5 years is carried out though transmission of shares to strategic partner or venture fund or through buy-out of company’s management Expert support and consulting of project authors and innovation companies on investment support and preparation of investment projects The Fund advises entrepreneurs on venture infrastructure in St.High level of project development. manufacturing and promotion of commercial version of innovative product/service . Nonprofit organization “Fund for Venture Investment Development Assistance for Small Science and Technology Enterprises of St.Attraction of investments with the aim of acquiring. Petersburg 37 Sedova Street.  Contacts Fund for Venture Investment Development Assistance for Small Science and Technology Enterprises of St. Russian and international markets. Petersburg with the participation of the Committee on Economic Development.Transmission of more than 25% of shares to the Fund . copyrights. clear company development strategy and plan for application of investment resources . introduction of new and improvement of applied technologies .Qualified team . office 802. Petersburg Enterprise Europe Network .Volume of investment requested – from 10 to 90 million roubles . Industrial Policy and Trade. Russia Tel. Petersburg. The Fund aims to create and develop venture (risk) financing infrastructure for small science and technology businesses in St. potential for mid-term business development (4-7 years) at the regional.Project aimed at development of a new type of knowledge intensive products (works.7. Petersburg and provides information on government measures aimed at small business support.Volume of investment requested – up to 33.6.ru 171 . Petersburg” and (2) “Fund for Seed Investments of the Russian Venture Company”. 192148 St. certificates) . certificates) .ru Doing business in St. Selection criteria (1): .3 million roubles .2. services) or increase of its technical level. Petersburg was established by the Government of St.Availability of intellectual property rights (patents. development.vf-spb.

Information technologies is the key specialization of the residents. The total volume of investment equals 30 billion.   Contacts Ingria Technopark Business Incubator 70 Obukhovskoy Oborony prospekt.ru | www. building 2 192029 St. including Open Days Ingria (featuring lectures of famous speakers). Ingria residents are winners and finalists of many contests. Petersburg. BIT-Online. Train&Develop Program (specialized trainings).doingbusiness. business angels.ru . Petersburg. Petersburg | www.ru | www. Organization of events Every year Business Incubator Ingria organizes more than 100 events. Product/Solution of the year-2011 and many others. Petersburg. Petersburg Universities. Ingria Technopark is a member of the Association of technoparks in the sphere of high technologies of Russia since 2011. Russia Tel. round tables.: +7 812 313 10 85. During these events start-ups have an opportunity to receive expert feedback.7. including 64% of private investment.ru 172 Doing business in St. private and state funds. 7. The construction of the first stage will start in 2012 with the opening planned for 2013. including Web Ready. Business Incubator Ingria began operating as a pilot project of Technopark in December 2008.ingria-park. Services  Programs offered to the residents Pre-Incubation and Incubation: Pre-Incubation lies in formation of a business model. The project is a part of the federal program aimed at creating techno parks in the sphere of high technologies.7. Lead The Way (discussions of technology trends). Ingria is actively developing its cooperation with Russian and St. Module A Regional Center – St. Business Incubator Ingria has about 70 residents. IBTEC-2010. Petersburg Enterprise Europe Network . seminars. It is a subdivision of the managing company OJSC Technopark tasked with rendering assistance in accelerated development of innovative companies. VC Corner.7. Experts and mentors Ingria cooperates with major IT and technological companies and venture funds. As a part of joint programs Ingria engages leading experts as mentors of business incubator’s residents. Techno parks and business incubators Ingria Technopark and Business Incubator Ingria Technopark will be created on the principles of public-private partnership with the support of the Government of the Russian Federation and the Government of St.ingria-startup. Microsoft and DataArt have already announced their plans to locate their R&D centers in Technopark.Russia. Nowadays. while Incubation is aimed at progressing the business and entering the market. the best project in the cluster in St. companies can reside in the office during their cooperation with Ingria. StartupLynch. conferences as well as partners’ and residents’ events. During the first 3 years of its operation the Incubator's residents attracted more than 500 million roubles in investments from international IT companies.1. thus sharing its experience with other regions. Start-11. Regardless of incubation program. 313 10 86 | Fax: +7 812 313 10 87 startup@ingria-park. investment estimation of their projects and improve their presentation skills. the International Young Interactive Entrepreneur Award 2010.

its services and resident companies visit www.ru Doing business in St. Petersburg Enterprise Europe Network . Petersburg business incubator supports and facilitates the development of small innovation companies.Russia. events Education programs Seminars.start-business. 192148 St. The First St. information and creative environment for successful development of innovative business of residents.2. promotion. HR. economy. master classes Internationalization Business trips. internationalization External accounting services Promotion of the companies Advertising.7. trainings.ru | www. Petersburg Business Incubator 37 Sedova St. consulting Access to business incubator’s partnership network       To find more information about the First St. The First St. accounting. internships. Petersburg business incubator was founded in 2006 by the Administration of St. joint projects. taxation. PR-support. business planning. financing. computers and conditioning system at a reduced rental rate Consulting Consulting on legal issues. Petersburg business incubator is located in «Crystal» Business Center. marketing. It is managed by Managing Company «REO «Service». start-business. Petersburg. Petersburg | www. seminars. exhibitions. Petersburg Business Incubator The First St. Services The St. Contacts The First St. The First St.: +7 812 448 56 65 | Fax: +7 812 560 97 49 info@start-business.ru 173 . Petersburg business incubator provides following services:  Offices Renting comfortable offices equipped with furniture. loan services. Russia Tel. It is a unique business. PR. Petersburg in cooperation with the Ministry for Economic Development of the Russian Federation.doingbusiness. media. Module A Regional Center – St.7. Petersburg business incubator.ru.

Services   President Management Training Program State Plan for training managers of national economic organizations of the Russian Federation Postgraduate work with President Program’s alumni Supporting President Program graduates in career development.spbmrc.doingbusiness. Coaching. Educational programs and internships St.ru | www. business meetings in St. exhibitions Database of business contacts Business match-making for Russian and potential foreign partners Business exchange program Russian-foreign exchange management training program for top-managers in Russia and abroad        Contacts St. seminars. seminars Development and maintenance of international and interregional educational projects Special educational projects Trainings. 7. meetings.8. Petersburg – a state training program for managers of national economic enterprises of the Russian Federation.500 managers graduated from the Program during these years. Nearly 3. Consulting. educational programs.Russia. Petersburg State Institution “St. Petersburg. assistance in promotion graduate’s business and projects Regional University of small business Governmental support programs. Module A Regional Center – St.1. In 2005 St. Northwest Russia consortium coordination center Event management International conferences. SPIRC represents a new format of the President Management Training Program in St.7. Petersburg Enterprise Europe Network .ru 174 Doing business in St. Petersburg Interregional Resource Centre (SPIRC) was registered as State Institution.ru . Petersburg Interregional Resource Center" 88/90 Griboedova embankment 190068 St. Special Internships Wide range of partnership all over Russia Signed collaboration agreements with 18 regions of Russia. + 7 812 326 42 75 | Fax: +7 812 326 42 74 int@spbmrc. Petersburg Interregional Resource Center” (SPIRC) The President Management Training Program is a leading program in professional business education for managers since 1997. Petersburg | www. Petersburg Russia Tel. Petersburg State institution “St.8.

com | www. Petersburg Chamber of Commerce and Industry 46-48 Chaikovskogo Street 191123 St. office 506 191186 St.ru/spb Finnish-Russian Chamber of Commerce 4-6-8 B Bolshaya Konjushennaya Street.ru | www.rbcc.spb.doingbusiness.ru | www. Petersburg Chapter 24 Yakubovicha Street 190000 St.ru | www. Petersburg.ahk. Petersburg. Petersburg Enterprise Europe Network .spbsp.ru St. Russia Tel. Russia Tel.7. Petersburg 1 Smolny proezd.: +7 812 325 90 91.ru | www.ru St.com 7. Petersburg. 312 53 07 | Fax: +7 812 325 90 92 office@spiba. Petersburg International Business Association (SPIBA) 21 Nevsky prospekt.ru American Chamber of Commerce in Russia.petersburg. 252 38 10 www.amcham. Petersburg. Russia Tel.Russia.amcham. Petersburg.svkk.: +7 812 346 50 51 | Fax: +7 812 346 50 52 infospb@rbcc. Russia Tel. Petersburg.10. St. Petersburg | www.: +7 812 576 76 81 | Fax: +7 812 576 77 92 spp@spp.de Russo-British Chamber of Commerce 23A Vladimirsky prospect. Russia Tel.russland. Russia Tel.ru Doing business in St.: +7 812 252 39 50.ru | www.spp. Business associations Union of Industrialists and Entrepreneurs of St. Russia Tel.spbcci.ru Russian-German Chamber of Foreign Trade 4A Finlyandsky prospect 194044 St.spb. Letter B 191060 St.: +7 812 332 14 15 | Fax: +7 812 332 14 16 info@petersburg-ahk.: +7 812 448 16 46 | Fax: +7 812 448 16 45 all@spb. Chambers of commerce and industry St.9.ru | www. Petersburg Union of Entrepreneurs 16 Stachek prospect 198095 St. Module A Regional Center – St.: +7 812 322 21 21 | Fax: +7 812 322 21 21 info@spb. office 705 191002 St. office B301 191186 St. 252 43 50. Russia Tel.ru 175 .svkk.: +7 812 719 66 44 | Fax: +7 812 272 97 13 spbcci@spbcci. Petersburg. Petersburg.spiba.

com G.Russia.spb.7.doingbusiness.russia-consulting.: +7 812 332 13 55 www./Fax: +7 812 622 12 13 www.: +7 812 327 55 22 Fax: + 7 812 327 55 39 www.spb.ec-group. Audit. Module A Regional Center – St.com PKF Tel.: +7 812 606 66 24 Fax: + 7 812 606 66 23 www.: +7 812 326 69 69 Fax: + 7 812 363 66 99 www.ru Juralink Tel.pra.: +7 812 740 18 60 www.: +7 812 329 40 04 www.: +7 812 325 82 94.: +7 812 333 15 44 www.ru Prime Advice Tel.ru 176 Doing business in St.com Moore Stephens Tel.jurconsult.: +7 812 703 40 41 Fax: + 7 812 703 30 08 www. Group Tel.ru BDO Tel.rbsys.: +7 812 449 50 00 Fax: + 7 812 449 50 01 www.: +7 812 600 91 00 Fax: + 7 812 600 90 50 www.: +7 812 313 73 00 Fax: + 7 812 313 73 01 www. Petersburg | www. 327 38 92 Fax: + 7 812 325 82 93.: +7 812 334 55 61.ey.insei.ru .: +7 812 363 33 77 Fax: +7 812 363 33 88 www.: +7 812 332 28 51 Fax: + 7 812 332 14 88 www.spb.ru RBS Tel.fbd.mscis.hlbprime.: +7 812 324 73 24 Fax: + 7 812 274 68 09 www.hannessnellman.: +7 812 458 58 00 Fax: + 7 812 458 57 00 www.juralink.eu St.ibs.ru Konsu SP Tel.ru Ernst & Young Tel.com PROUD Tel.com IBS Tel.ru Hannes Snellman Tel.deloitte.gce.: +7 812 325 84 16 Fax: + 7 812 712 66 07 www.: +7 495 797 56 65 Fax: + 7 495 797 56 60 www.com Eccona Tel.moorestephens.ru Deloitte Tel. Petersburg Foundation for SME Development Tel. 321 29 96 www. 334 55 63 www.ru Energy Consulting Tel.intalev.ru InterComp Tel.E.impexconsult.com PricewaterhouseCoopers Tel.mcd-pkf.ru Jurconsult International Tel. 600 99 24 www.: +7 812 703 71 06 Fax: + 7 812 703 71 07 www.bankoaudit.bankoaudit.ru Russia Consulting Tel.ipp.spb.pwc.: +7 812 309 39 85 www./Fax: +7 812 702 07 03 www.konsu. Petersburg Enterprise Europe Network . tax and consulting firms BANKO Audit & Consulting Tel.: +7 812 703 78 00 Fax: + 7 812 703 78 10 www.ru Impex Consult Tel.intercomp.ru Institute of Independent Social & Economic Research (INSEI) Tel. 334 55 62.eccona.ru Institute for Enterprise Issues Tel.com KPMG Tel.: +7 812 232 84 54 www.ru Intalev Tel.kpmg.11./Fax: +7 812 677 90 67.C.

vtb24.ru Bank of Moscow Tel.reglamentsert.: +7 812 337 16 02. Banks Cetelem Tel. 712 67 01 www.quality.rshb. Petersburg | www.nordea.ru Center for Testing and Certification St.ru Raiffeisen Bank Tel. 766 19 40 Fax: + 7 812 766 1940 www.: +7 812 334 44 33 www.psbank. 328 62 02 www.: 8 800 500 89 98 www. Petersburg Tel.: 8 800 555 55 50 www.: +7 812 320 87 56 www.ru Center –Test Tel.bankuralsib.: 8 800 200 23 26 www.bm.swedbank.tcb.: +7 812 747 34 30 www.: +7 812 336 75 75 www.rosbank.cetelem.ru Swedbank Tel.rustest.ru Kvatro – Certification Center Tel.: +7 812 712 66 05. Petersburg Enterprise Europe Network .: +7 812 251 39 50 Fax: + 7 812 251 41 08 www.spb.kvatro-spb.ru TransCreditBank Tel.spb. 972 66 30.ru Bank Uralsib Tel.: +7 812 777 05 15.sertis.: +7 812 334 43 43 www.gemoney.: +7 812 747 34 30 www. Certification and testing Center for Certification and Marketing Tel.ru Mezhregiontest Tel.okp.ru VTB 24 Tel.: +7 812 332 12 29 www.: +7 812 301 99 99 www. Module A Regional Center – St.ru Citibank Tel.ru/ Gazprombank Tel.citibank.ru Russian Agricultural Bank Tel.13.ru UniCredit Bank Tel.ru Promsvyazbank Tel.ru 7.7.ru Reglamentsert – Northwestern Scientific and Technical Center for Testing and Certification Tel.ru 177 .doingbusiness.Russia.: +7 812 600 06 07 www.ru Rosbank Tel.: +7 812 335 06 30 Fax: + 7 812 335 06 30 www.12.raiffeisen.ru Certification Tel.: +7 812 275 41 54 www.ru Doing business in St.ru Sberbank Tel.megregiontest.ru Barclays Tel.unicreditbank.gazprombank.ru Nordea Bank Tel.: +7 812 321 20 20 www.ru GE Money Bank Tel.gost-spb.: 8 800 100 24 24 www.barclays.: +7 812 274 14 30 Fax: + 7 812 274 14 32 www.ru Center of Quality Control Tel.sbrf.: + 7 812 328 62 62.ru Rostest Tel.bancaintesa.: +7 812 927 94 11 Fax: + 7 812 633 05 16 www.spb.: +7 906 239 58 30 www.ru Banca Intesa Tel.: 8 800 700 73 00 www.: +7 812 703 44 30 www. 388 12 16 www.i-trade.: +7 812 313 63 63 www.

Petersburg Enterprise Europe Network .ru 7.ru SGS Vostok Limited Tel.com DLA Piper Tel.: +7 812 324 64 16 Fax: +7 812 596 38 14 www.congresscity. 600 11 68 Fax: + 7 812 600 11 69 www.Russian Register Tel.ru Castren & Snellman Tel: +7 812 325 80 85 Fax: +7 812 325 80 86 www.stachek47.ru PrimExpo Tel.doingbusiness. 320 24 55. 766 47 17 www.ru Monomax Tel.ru Restec Tel.: +7 812 320 24 57.restec.farexpo.: +7 812 448 72 00 Fax: + 7 812 448 72 01 www.sgs. 327 5552.: +7 812 369 01 34. Petersburg | www.expoforum.Russia.: +7 812 975 12 40.: +7 812 327 49 18 Fax: + 7 812 327 49 18 www.bakermckenzie.com Beiten Burkhardt Tel.: + 7 812 240 40 40 www. 448 36 55 Fax: +7 812 449 52 44 www.: +7 812 702 04 38 Fax: + 7 812 784 65 30 www.ru Vystavka.: +7 812 335 20 55.fi Clyde&Co Tel.rusregister.sovencon.: +7 812 303 90 00 Fax: + 7 812 325 60 13 www.sivel. 327 55 51.ru 7.: +7 812 449 04 66 Fax: + 7 812 449 04 67 www.: +7 812 346 79 90 Fax: + 7 812 346 79 91 www.imperiaforum.spb.primexpo.en.14. 575 0093 www. 369 08 45 www.ru FarExpo Tel.clydeco.cls. Petersburg Tel.bblaw. Module A Regional Center – St.ru Severnaya Palmira Tel.com Capital Legal Services International Tel. 369 00 16.com 178 Doing business in St.castren. 335 20 39 www.: +7 812 600 11 67. Exhibitions ExpoForum Tel.: +7 812 449 60 00 Fax: + 7 812 449 60 01 www.: +7 812 718 36 37 Fax: +7 812 777 04 07 www. LLC Tel.ru Stachek 47 Tel.y-expo.: +7 812 320 63 63 Fax: + 7 812 320 80 90 www.ru Test St.15.monomax.ru Imperia Tel.test-spb.: +7 812 380 60 00 Fax: +7 812 320 80 90 www.ru .ru Sivel Tel.ru Sovencon Tel./Fax: +7 812 334 02 62.: +7 812 232 22 97 Fax: +7 812 233 81 09 www.dlapiper. Law firms Baker & McKenzie Tel.

Petersburg Enterprise Europe Network .: +7 812 363 32 31 Fax: + 7 812 363 32 30 www.com ARIN – Agency for Development and Real Estate Research Tel.Russia.16.: +7 812 334 24 25 Fax: + 7 812 334 24 25 www.barona.ru BARONA Tel.spb.ru Kelly Services Tel.ru Knight Frank Tel. 222 37 58 www.ru BusinessLink Personnel Tel.ru Colliers International Tel.ru Salans Tel. Fax: + 7 812 640 90 34 www.Duvernoix Legal Tel./Fax: +7 812 702 70 99 www.17.ru Doing business in St. Petersburg | www.ru Egorov Puginsky Afanasiev & Partners Tel./Fax: +7 812 600 03 94 www.: +7 812 363 22 22 Fax: + 7 812 363 22 23 www.ru Business Kernel Tel.ru 7.business-kernel. 329 2211 www.com Unicomlegal Russia Tel.ru 179 .hrsolutions.case-hr.: +7 812 380 16 61 Fax: + 7 812 380 16 61 www.ru Jones Lang LaSalle Tel.ancor.ru 7. 329 00 11.arin.mannheimerswartling.salans.: +7 812 322 96 81 Fax: + 7 812 322 96 82 www.ru CASE HR solutions Tel.hkupartners.doingbusiness.spb.: +7 812 448 88 35 Fax: + 7 812 448 88 36 www.com HR Solutions Tel.spb.pgplaw.: +7 812 322 52 00 www. Goltsblat & Partners Tel. Recruitment ANCOR Tel. 222 52 51.: +7 812 335 23 00 Fax: + 7 812 335 23 01 www./Fax: +7 812 718 81 57 www.: +7 812 718 36 18 Fax: + 7 812 718 36 16 www.: +7 812 640 90 33. Module A Regional Center – St.joneslanglasalle.: +7 812 325 84 44 Fax: + 7 812 325 84 54 www.: +7 812 640 60 10 Fax: + 7 812 640 60 20 www.: +7 812 244 75 49 Fax: + 7 812 244 75 48 www.: +7 812 315 55 88.colliers.com Mannheimer Swartling Tel.epam.advecs.avenir. Real estate Advecs Tel.avantapersonnel.duvernoixlegal.kellyservices.knightfrank.ru Avenir Group Tel.ru AVANTA Personnel – Adecco Group Russia Tel.: +7 812 327 89 96 Fax: + 7 812 327 89 93 www.ru Hellevig Klein & Usov Tel.blp.: +7 812 702 62 00 Fax: + 7 812 702 62 55 www.: +7 812 332 22 44 Fax: + 7 812 332 23 35 www.unicomlegal.se Pepeliaev./Fax: +7 812 329 57 70.

com/ru IWM Tel.: +7 812 326 64 00 www.18.1000kadrov. Transport and logistics Ahlers Tel.: +7 812 325 88 25 Fax: + 7 812 571 59 30 www.iwm. Petersburg Enterprise Europe Network .ru Morgan Hunt Group Tel.dhl.: +7 812 324 46 46 Fax: + 7 812 324 46 47 www.ru FedEx Tel.: +7 812 703 39 39 Fax: + 7 812 703 16 50 www.: +7 812 393 70 54 Fax: + 7 812 309 12 12 www.morganhunt.: +7 812 336 38 28 Fax: + 7 812 336 38 27 www.: +7 812 640 20 01 www.com 1000 kadrov Tel.ups.: +7 812 635 86 16 www.ru .fedex.manpower.Manpower Tel.: +7 812 332 67 00 Fax: + 7 812 332 67 01 www.ru Staffwell Tel.ru TNT Tel. Petersburg | www.ru 7.staffwell.doingbusiness.Russia.com DHL Tel.ventra.ru Ventra Employment Tel.: +7 812 313 93 80 www.ahlers.tnt.com 180 Doing business in St. Module A Regional Center – St.: +7 812 718 33 30 Fax: + 7 812 718 34 95 www.com UPS Tel.

ru 181 .Doing business in St. Petersburg Enterprise Europe Network .Russia. Petersburg | www.doingbusiness. Module A Regional Center – St.

Bringing together 570 business support organizations from 49 countries. certification. conduct legal and tax due diligence on companies and property being acquired in Russia. render services for establishing subsidiaries. Petersburg Foundation for SME Development since 2008. Petersburg (since 1996). CASE successfully implements projects on the territory of Russia. Petersburg and is operated by St. Petersburg Enterprise Europe Network . Tel. benefits and compensation surveys. St. Petersburg The Enterprise Europe Network (EEN) is a key instrument to boost growth and jobs. Petersburg.doingbusiness. infrastructure. Authors and contributors Guide “Doing business in St. Enterprise Europe Network . T: +7 812 334 24 25 | F: + 7 812 334 24 25 www. we help small companies seize the unparalleled business opportunities on the world Market. Regional Center in St. German and Russian.Russia. Gate2Rubin Consortium.ru . labor market research. with a staff of over 300 specialists providing legal and tax consulting in Western and Eastern Europe. Today. personnel assessment. Module A Regional Center – St.Russia. customs. Petersburg Foundation for SME Development with the kind contribution of the following legal. Russia. Petersburg | www. Petersburg operated by St. Module A Regional Center – St. Petersburg” was developed by and under supervision of the Enterprise Europe Network. research and real estate firms. human resources.com 182 Doing business in St. consult on tax. HR Projecting. 325 8351. Gate2Rubin Consortium – Russia. reward system development. Ukraine and Kazakhstan. including Moscow (head office).: +7 812 325 84 16. personnel training and development. CASE is represented in 5 cities in Russia.ru BEITEN BURKHARDT BEITEN BURKHARDT is an international law firm. The firm's specialists provide comprehensive legal support for investment projects in the areas of manufacturing. Ukraine and China. T: +7 812 449 60 00 | F: +7 812 449 60 01 www. The major services include salary. BEITEN BURKHARDT's Russian Practice comprises offices in Moscow (since 1992) and St. 575 04 80 | Fax: +7 812 712 66 07 www.com CASE CASE was established in April 5. Perm and Novosibirsk.bblaw. Module A Branch – St. The working languages are English. ENN’s mission lies in helping small businesses make the most of the business opportunities in Russia and the European Union.doingbusiness. 2010 on the basis of the ANCOR Survey Services with the aim of implementation of consulting projects in the field of personnel management.8. joint ventures and branches. Petersburg is co-financed by the Government of the Russian Federation and the Government of St.case-hr. financial and other issues of activities in the Russian Federation. outplacement. health care and real estate. represented by 12 offices in 6 countries. labor law consulting. Rostov-on-Don.

employment.Russia. The firm offers integrated services delivered by expert teams worldwide to clients seeking increased value by owning. SGS is recognized as the global benchmark in quality and integrity. 2007. St. real estate and infrastructure. with a portfolio of approximately 167 million square meters worldwide. The firm advises on corporate law.sgs. Russia was voted Consultant of the Year in 2004. our St. St. Petersburg. The firm is an industry leader in property and corporate facility management services.ru SGS The SGS Group is the global leader and innovator in inspection. taxation. with branch offices in 30 countries of Europe. With 70. 2009. 2006.000 employees. Jones Lang LaSalle. Petersburg according to Chambers Europe and the leading corporate practice in the North West region in the view of the Legal500 directory. project finance. IP and IT protection. testing and certification services. the Russian subsidiary of the SGS Group. Founded in 1878.ru 183 . In 2007-2011. mergers and acquisitions. and possesses significant litigation capabilities and experience. employs a staff of 3. Module A Regional Center – St. T: +7 812 363 32 31 | F: + 7 812 363 32 30 www. Moscow and Consultant of the Year at the Commercial Real Estate Awards 2009.dlapiper. Operating in Russia since January 1981. verification. occupying or investing in real estate. T: +7 812 449 04 66 | F: + 7 812 449 04 67 www.350 offices and laboratories around the world. Petersburg.joneslanglasalle. including Northwest Russia.DLA Piper DLA Piper is one of the most highly rated global law firms. 2010 and 2011 at the Commercial Real Estate Awards. Petersburg practice constitutes the largest legal and full-fledged tax services provider in Russia's northwest. 2008. T: +7 812 448 72 00 | F: +7 812 448 72 01 www. customs and regulatory. In Russia and CIS Jones Lang LaSalle has offices in Moscow. With 39 lawyers and 4 partners. Petersburg | www. today SGS Vostok Limited.ru Doing business in St. Asia and also the USA. the Middle East. Petersburg Enterprise Europe Network .com Jones Lang LaSalle Jones Lang LaSalle is a financial and professional services firm specializing in real estate. Kiev and Almaty.300 people at the Moscow headquarters and the various offices and laboratories all over the Russian Federation. DLA Piper was recognized as the leading legal practice in St.doingbusiness. SGS operates a network of over 1.

ru .doingbusiness. Module A Regional Center – St.184 Doing business in St. Petersburg | www.Russia. Petersburg Enterprise Europe Network .

ru 185 .Doing business in St.doingbusiness. Petersburg | www. Petersburg Enterprise Europe Network . Module A Regional Center – St.Russia.

or settlements. If you have finished with this document. judgments. This information is not offered as legal or any other advice on any particular matter. done or not done wholly or partly in reliance upon the whole or any part of the contents of current brochure. Petersburg | www.Legal disclaimer All of the information included in this document is for informational purposes only. please pass it on to other interested parties or recycle it. Petersburg and the contributing authors expressly disclaim all liability to any person in respect of anything.doingbusiness. The Enterprise Europe Network. Petersburg Enterprise Europe Network . Gate2Rubin Consortium – Russia. and in respect of the consequences of anything. and may not reflect the most current legal developments.ru . Module A Branch – St. Thank you 186 Doing business in St. Module A Regional Center – St. No client or other reader should act or refrain from acting on the basis of any matter contained in this document without first seeking the appropriate legal or other professional advice on the particular facts and circumstances.Russia.

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Petersburg Enterprise Europe Network .Russia.doingbusiness. Module A Regional Center – St.ru .188 Doing business in St. Petersburg | www.