Feb 26, 2008: Foreign Investments in St. Petersburg in 2007

The total amount of foreign investments in St. Petersburg in 2007 was $6.3 bln, which is 19.6 percent higher than in 2006. 82 percent was invested in manufacturing. UK, US and Belarus companies provided 58.1 percent of the total investments.

According to Sergey Fiveysky, First Deputy Chairman, St. Petersburg Committee for Economic Development, Industrial Policy and Trade, “Big foreign… investors keep coming to St. Petersburg. In 2007, they were Hyundai that will build its own car factory as well as bring another 11 Korean component manufacturers, and Foxconn; Toyota launched its factory, thus continuing forming the automotive cluster. In 2008, that process will grow further by attracting car parts manufacturers. Another brand new cluster is also emerging—big home appliances manufacturers have arrived to bring even more components producers.”

Today, St. Petersburg Government and Flextronics are signing an investment agreement of $50 mln.

“St. Petersburg Government understands how attractive the city economy is for… foreign investors and is striving to create most favorable conditions for them, Fiveysky said. In particular, industrial zones receive engineering infrastructure, tax legislation is gradually being improved, import customs duties on electronic components to be used in high-tech manufacturing are considered for lowering. St. Petersburg’s investment attractiveness in high-tech industries will be improved by the Complex Action Plan for Innovative Policy in 2008–11. The favorable investment climate has already added to the city residents’ prosperity, which fully corresponds to St. Petersburg Socio-Economic Development Conception.”