Saint Petersburg - Economy

Economy

Saint Petersburg is a major trade gateway, financial and industrial centre of Russia specialising in oil and gas trade, shipbuilding yards, aerospace industry, radio and electronics, software and computers; machine building, heavy machinery and transport, including tanks and other military equipment, mining, instrument manufacture, ferrous and nonferrous metallurgy (production of aluminium alloys), chemicals, pharmaceuticals, medical equipment, publishing and printing, food and catering, wholesale and retail, textile and apparel industries, and many other businesses. It was also home to Lessner, one of Russia's two pioneering automobile manufacturers (along with Russo-Baltic), Lessner; founded by machine tool and boiler maker G. A. Lessner in 1904, with designs by Boris Loutsky, it survived until 1910.

10% of the world's power turbines are made there at the LMZ, which built over two thousand turbines for power plants across the world. Major local industries are Admiralty Shipyard, Baltic Shipyard, LOMO, Kirov Plant, Elektrosila, Izhorskiye Zavody; also registered in Saint Petersburg are Sovkomflot, Petersburg Fuel Company and SIBUR among other major Russian and international companies.

Saint Petersburg has three large cargo seaports: Bolshoi Port Saint Petersburg, Kronstadt, and Lomonosov. International cruise liners have been served at the passenger port at Morskoy Vokzal on the south-west of Vasilyevsky Island. In 2008 the first two berths were opened at the New Passenger Port on the west of the island. The new port is part of the city's "Marine Facade" development project and is due to have seven berths in operation by 2010.

A complex system of riverports on both banks of the Neva river are interconnected with the system of seaports, thus making Saint Petersburg the main link between the Baltic sea and the rest of Russia through the Volga-Baltic Waterway.

The Saint Petersburg Mint (Monetny Dvor), founded in 1724, is one of the largest mints in the world, it mints Russian coins, medals and badges. Saint Petersburg is also home to the oldest and largest Russian foundry, Monumentskulptura, which made thousands of sculptures and statues that are now gracing public parks of Saint Petersburg, as well as many other cities. Monuments and bronze statues of the Tsars, as well as other important historic figures and dignitaries, and other world famous monuments, such as the sculptures by Peter Clodt von Jürgensburg, Paolo Troubetzkoy, Pavel Antokolsky, and others, were made there.

In 2007, Toyota opened a Camry plant after investing 5 billion dollars in Shushary, one of the southern suburbs of Saint Petersburg. Opel, Hyundai and Nissan have signed deals with the Russian government to build their automotive plants in Saint Petersburg too. Automotive and auto-parts industry is on the rise there during the last decade.

Saint Petersburg is the location of a significant brewery and distillery industry. It is known as the "beer capital" of Russia, due to the supply and quality of local water, contributing over 30% of the domestic production of beer with its five large-scale breweries including Europe's second largest brewery Baltika, Vena (both operated by BBH), Heineken Brewery, Stepan Razin (both by Heineken) and Tinkoff brewery (SUN-InBev).

The city has a lot of local distilleries which produce a broad range of vodka brands. The oldest ones is LIVIZ (founded in 1897). Among the youngest is Russian Standard Vodka introduced in Moscow in 1998, which opened in 2006 a new $60 million distillery in Petersburg (an area of 30,000 square meters, production rate of 22,500 bottles per hour. In 2007 this brand was exported to over 70 countries.

Saint Petersburg has the second largest construction industry in Russia, including commercial, housing and road construction.

In 2006 Saint Petersburg's city budget was 179.9 billion rubles (about 6.651 billion US$ at 2006 exchange rates), and is planned to double by 2012. The federal subject's gross regional product as of 2005 was 667.905 billion Russian rubles (about 23.611 billion US$ at 2005 exchange rates), ranked 4th in Russia, after Moscow, Tyumen Oblast, and Moscow Oblast, or 145,503.3 rubles per capita (about 5,143.6 US$ at 2005 exchange rates), ranked 12th among Russia's federal subjects, contributed mostly by wholesale and retail trade and repair services (24.7%) as well as processing industry (20.9%) and transportation and telecommunications (15.1%).

Budget revenues of the city in 2009 amounted to 294.3 billion rubles (about 10.044 billion US$ at 2009 exchange rates), expenses – 336.3 billion rubles (about 11.477 billion US$ at 2009 exchange rates). The budget deficit amounted to about 42 billion rubles. (about 1.433 billion US$ at 2009 exchange rates)