The “Investment Opportunities of the North-Western Region” discussion organized by “Rossiyskay Gazeta” was held on Wednesday, February 16, in the House of Journalists. The Head of Committee for External Relations and Tourism of St. Petersburg Vladimir Blank, Vice-governor of Leningrad Region Grigory Dvas and the Heads of Economical Departments of Novgorod Region and Karelian Republic took part in the discussion.

Among the issues brought up during the meeting there was the problem of competition of the regions in this field. Although all four participants admitted that it would be wrong to deny such competition, it does not make any problems for the regions. Each market has its own advantages and disadvantages, and strong points for investors. Among advantages of St. Petersburg Vladimir Blank mentioned good geopolitical position of the city, well-developed infrastructure, qualified human resources, meanwhile one of the most important resources of Leningrad Region is its large territory.

In the booklet issued by the Committee for External Relations and Tourism of St. Petersburg by the meeting, St. Petersburg is represented as an important industrial, transportation and communication center. Industry is a leading branch of St. Petersburg economy. It is more than one forth of gross regional product and almost one forth of working population of the city. At the moment there are more than 640 big and middle-size industrial enterprises in St. Petersburg.

According to the statistics, St. Petersburg has the second best combination of return and risks, that means financial stability of the region and support rendered by St. Petersburg government. Due to all these factors, for 9 months in 2004 volume of investments was $1 885 mln. including 611 mln. of foreign investments.

Among the reasons to invest into Saint-Petersburg there are the following:

· Political and economical stability

· Lots of human resources

· Potential market outlets (about 10 mln. people living in the North-Western Region)

· Tour center of the Northern Europe

· Good tax regulations, tax advantages for investors

· 41 councils of foreign states

· 32 scheduled flights from St. Petersburg to the largest cities of the world

· Plenty of Russian technical and engineering universities (49 higher educational establishments)

· St. Petersburg is the second capital of Russia

· Geographical position: not far from Europe, sea port, international airport, railways communication with the rest of the country, sea and river ports, motor-service)

· Well-developed information infrastructure

· Increase of purchasing capability of the population

· Various forms of state support for investors (warranties, allowances)

· Rather low costs for real property

· Safety provision for business

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