The Pskov region - the potential for business development is inexhaustible!

The Pskov region is the part of North-West federal district of Russian Federation. The Pskov region is the only subject of the Russian Federation, which borders at once with three states - Estonia, Latvia and Byelorussia. The length of outer boundaries is with Estonia - 270 km, Latvia - 214 km, Republic of Belarus - 305 km.

Within the state region adjoins to Leningrad, Novgorod, Tver and Smolensk regions.

The center of the Region, the city of Pskov, is situated is almost equal proximity to Saint-Petersburg (290 km) and Riga (260 km), distance from Pskov to Moscow counts 689 km, to Tallinn it is about 350 km.

The area of the territory of the Region counts 55.3 thousand square kilometers. Extension of the Region from the North to the South is 380 km, from the West to the East is 260 km. As for January, 1, 2010 the size of legal population is 688.6 people, 68% of which is city population. Pskov is inhabited by 191.76 thousand of people, the population of Velikie Luki counts 98.3 thousand people. The number of economically active population of the Region is 363.6 thousand people.

The Pskov Region is divided into 24 administrative districts, 9 of which are bordering districts.

The cities Pskov and Velikie Luki are the economic centers of the region.

The representation of Ministry of Foreign Affairs of Russia, and two representations of foreign states: Consulate of Latvian Republic and Pskov Chancellery of Consulate General of Estonian Republic in Saint Petersburg, operate in Pskov.

The main motor roads and railway network connect Pskov with Moscow, Saint Petersburg, Riga, Tallinn, Lvov, Odessa, ports of Murmansk and Kaliningrad.

The federal and international highways М-20 (Sankt-Petersburg-Kiev-Odessa) and М-9 "Baltic" (Moscow-Riga), and also highways Moscow-Riga, Moscow-Tallinn, Sankt-Petersburg-Kiev, Sankt-Petersburg-Pskov-Riga, Bologoe-Velikie Luki – Polotsk pass through territory of region.

The main railway lines are Moscow-Riga, Sankt-Petersburg-Odessa, Sankt-Petersburg-Vilnius-Kaliningrad, Sankt-Petersburg-Riga, Sankt-Petersburg-Lvov, etc.

The international airport for long-haul passenger and cargo aircrafts operates in Pskov.

Pskov river port can connect the region with ports of Estonia on the shore of Pskov and Peipus Lake (the biggest port is - Tartu).

The Pskov Region possesses developed infrastructure that provides implementation of foreign economic activity: the territory has 6 customs points, cargo flow over the border is controlled over by 6 international border crossing points and 2 customs, the Pskov one and the Sebezh one.

Within the framework of realizing “The Concept of customs processing and customs control over goods imported to places proximal to the state border” a customs point “Ovinki” (International Automobile Border-crossing point “Burachki”) has been opened in 2010. It became the first point if the North-West created of the basis of transport and logistic terminal (Warehouse of Temporary Storage “RUS-SERVIS Terminal”). In 2010-2011 similar projects are planned to be realized at IABCP “Shumilkino”, IABCP “Kunitchina Gora” and IABCP “Ubilinka”.

At present time the export-import freight flow between the Russian Federation and the European Union going through the Pskov region, makes about 30% of All-Russia volume.

The Pskov region keeps one of the leading positions in Russia in level of telecommunication structure development. All cities and district centers have access to INTERNET by wire circuits, as well as without tie to fixed Network Access Point (mobile INTERNET through 3G networks).

Energy complex of the region is represented by five enterprises, the main of which is Pskov Electric Power Station. At present time two power-generating units operate, producing 215 MW each.

As of 2008 gross regional product comprised 73448 million rubles, gross regional product per person comprised 104 thousand rubles. The structure of GRP includes 20.1% of manufacturing activity, 19.4% of wholesale and retail trade, 15.3% of transport and communication.

The raw materials resources of Pskov land are the basis for development of such industries like production of construction materials, timbering and woodworking, production products of peat, agricultural sector production, commercial fishery and fish processing etc.

The most valuable natural resources are: stocks of limestone, sand-and-gravel material, magnesian limestone, chalky clay, plaster, high and low melting clay, molding sand, raw materials for producing mineral colors, sapropel and medical oozes, underground mineral waters.

The Region possesses 28 developed deposits of low-melt brick-earth with total supply of 44.9 million of cubic meters according to industrial category. This total number of deposits includes 20 deposits with approved reserves of 32.7 million of cubic meters, 5 of them are deposits of keramzite clays with total supply of 17.3. Despite solid reserves of low-melt clays only 2 deposits are being developed (“Lukovskoye”, “Pridorozhnoye”).

The Pskov Region is one of the regions of the European part of the Russian federation amounted in peat. Peat fund of the Region includes 329 deposits of 563 369 thousand tons reserves (in equivalent of 40% of raw materials humidity), 101 deposits of which with 100 005 thousand tons of reserves are prepared for excavations, 292 deposits are expected to possess 181 846 thousand tons of peat. The largest reserves of peat are situated in the Bezhanitsy, Gdov and the Sebezh districts. Effective development of this branch demands creation of complexes for peat excavation and processing.

The therapeutic mud of the Pskov region is unique in healing properties. The Region has 4 developed deposits of mineral water for remedial and remedial and drinkable aims (health resort “Cherekha”, resort “Khilovo”, health resorts “Golubie ozera” and “Panino”).

The production and bottling of mineral water «Hilovskaya» with wide range of healing properties is established. On base of unique natural resources – mineral water springs and therapeutic mud (sulphate sapropel mud, the deposit – lake Lunevo) – there is operating over 150 years the well-known sanatorium “Hilovo”.

There are deposits of silica sand in region, which can be used for container-glass industry for the beer companies-producers.

Water reserves of the Pskov Region are its proud and wealth. The Pskov Region possesses more than 3700 lakes, more than 30 rivers, unique Pskov, Chudskoe and Teploye Lakes. The area of the present reservoir comprises 3566 square kilometers. It is the largest reservoir in the Region (65% from the total area of reservoirs) and is situated in the territory of international Agreement between Russia and Estonia.

238 lakes of more than 100 hectares each are of commercial fishing importance. This number includes ten largest ones such as Zhizhitskoye lake, Dvin-Velinskoye, Sebezhskoye, Orono, Netchertsa, Bolshoy and Maliy Ivan, Polisto, Uritskoye, Nevelskoye and lake Ale which area is more than 1000 hectares each.

Organization of industrial marketable growth of trout and whitefish is seen as promising direction for development fishery of the Pskov Region. Reservoirs that allow the specialists to realize this plan are situated mostly in the South part of the Region.

Timber industry complex of region presents great opportunities. The total forests area in region is about 2450 thousand hectares, or approximately 40% of territory. The total timber reserves are close to 250 million cubic meters (coniferous - 45%, birch - 35%).

Rated woodcutting is 3.76 million cubic meters of realizable timber including 1.18 million cubic meters of coniferous species per year (among which 768.5 thousand cubic meters of industrial wood and 461 thousand cubic meters of sawlog); 2.58 million cubic meters of deciduous species per year (among which 1.29 million cubic meters of industrial wood, 903.7 thousand cubic meters of fuel wood and 387.2 thousand cubic meters of dead wood).

Wood processing is one of the most economically profitable and promising branches of the Region.

The basis for agriculture of the Pskov Region is dairy farming and beef stock farming (66% of agriculture production), production of vegetables and potato.

The Administration of the Pskov Region provides significant support to the development of the agriculture. Regional long-term programs have been worked out in order to support agricultural producers. For example the program “Development of the agriculture in the Pskov Region” foresees subsidies for supporting such branches as production of animal products, livestock breeding, seed raising, flax raising and rape production. The volume of investment according the present program comprised 189 million rubles for the year 2010.

Separate target programs for 2010-2012 aimed at development of such branches as dairy cattle breeding and growth of milk production, beef cattle breeding, protected horticulture and potato growing. The program “Development of aquaculture in the Pskov Region in 2010-2012” foresees subsidies for melioration events aimed at reconstruction of ponds.

Concept of AIC development in the Pskov Region implies complex approach to the development of regional agriculture including measures for farms supporting and creating correspondent infrastructure around them, and building of agro towns.

The food industry takes considerable place in volume of manufacturing activities of region – food production, including drinks, makes almost 40 % in structure of manufacturing activities. The favorable ecological situation in region, growing demand for domestic products and quite low prices make the production of Pskov food industry very popular not only beyond the bounds of region, but also abroad.

The leading manufacturing activities of region include the following types: manufacture of electric equipment, electronic and optical equipment, manufacture of machines and equipment, textile and clothing manufactures.

In general, manufacturing activities of region are additional to such kinds of economic activities as leathers and footwear manufacture; woodworking and manufacture of wooden articles; pulp-and-paper manufacture; publishing and polygraphic activity; manufacture of rubber and plastic articles; vehicles and equipment manufacture.

In 2009 the Administration of the Pskov Region worked out the Concept of social and economic development of the Pskov Region up to 2020 that has been adopted at the federal level. The main objective of the Concept is diversification of the regional economics, development of the opportunities of the Pskov Region that are not efficiently used at present. The main objectives of activity shall be:

development of industrial agriculture,
protection of historical and cultural heritage,
development of tourism and its infrastructure,
development of transport and logistics direction.

Creation of logistics enterprises connected with transport corridors going through the Pskov Region, improvement of border infrastructure will help to use the potential of the region that nowadays holds the third part of Russian cargo flow.

The border location of the Pskov region is one of the key factors, which represents great opportunities for creation of joint businesses and realization of joint projects in abovementioned priorities.

Besides geopolitical factor as advantage of economic infrastructure of the Pskov Region, we shall mention the reservoir of electric and energetic capacities, raw materials resources, unexploited farmland as well as developed web of auto and rail ways and orientation of educational institutions at business demands.

One of the main mechanisms of investments’ attraction in the Pskov Region is providing tax advantages. According to the Law of the Pskov Region as of 12.10.2005 №473-OZ “On tax advantages and state support to the investment activity in the Pskov Region” the main mechanisms of supporting the realization of investment projects are accompanying strategic investment projects implemented at the territory, providing tax advantages, state guarantees on a competitive base at the expense of the regional budget.

The potential for investing in the Pskov region is very wide. The prioritized ones are also: deep wood processing, construction and production of construction materials, production of meal, light industry, peat processing, agriculture, tourism infrastructure and others. Administration of the Region is interested in development of mutually beneficial cooperation and provides support to Russian and foreign investors willing to invest in the economy of the Region.

Three industrial parks (“Moglino”, “Stupnikovo”, “Dedovichi industrial park”) have been created for placing industrial productions and logistics enterprises where an investor may receive any territory for development. The territory of the Region also possesses small industrial areas information about which can be provided on request.

In 2009 investments in capital assets comprised 12817.5 million rubles, that is 74.5% in comparison with the previous year. The sectors of economics the most attractive for investments are processing production (30%), agriculture, hunt and forestry (11%), wholesale and retail trade (11%). In 2010 during the period from January to October the volume of investments comprised 5649 million rubles.

The volume of foreign investments into the economics of the Region comprised 23229 thousand USD as for 2009. However in 2010 during the period from January to October the volume of foreign investments comprised 27001 thousand USD received from 12 countries: Latvia, Austria, Denmark, Cyprus, Belorussia, Estonia, Norway, Seychelles, Germany, the USA, Finland, Ukraine, the leading volume of investment provided Latvia (almost 47%).

The main business partners of region are Germany, Latvia, China, CIS countries – Ukraine, Kazakhstan, Byelorussia.

The largest investments projects including foreign funds realized at the territory of our region are: building factory for producing paper components for tobacco industry by the Austrian company “Tann-Papier GmbH” with total volume of investments of 900 million rubles; building pig-breeding complex of closed cycle for 100 thousand heads by the company “Idavang” (Denmark) with total volume of investments of more than 500 million rubles.

Total number of enterprises and organizations acting at the territory of the Region as of 01.05.2010 comprises 16976, more than 70% of which belong to private ownership. The number of small and micro enterprises form the total number of registered ones is 4276, 112 is the number of enterprises of medium size.

The potential for tourism development is inexhaustible. The list of architectural and historical-and-cultural monuments in Pskov land is great. The world fame belongs to the places related to the names of our brilliant compatriots: A. S. Pushkin, M.P. Musorgsky, N.A Rimsky-Korsakov, V.A. Kaverin, S.V. Kovalevskaya. The Pskov city, celebrated in 2010 it’s 1107 anniversary from the first mentioning in chronicles, strikes the guests and tourists by beauty and variety of architectural monuments – Old Russia defense and church architecture.

The ancient towns in Pskov lands - Izborsk, Pechory, Porkhov, Opochka, Ostrov present unique monuments of Old Russia architecture and defense construction. The Transfiguration of Our Savior cathedral of Mirozhsky monastery (XII century) in Pskov is the peak in fresco art of Old Russia. The history of Pskov-Pechory monastery counts over 5 centuries; it is one of the oldest orthodox monasteries. The monastery stones covered with winds of history should be preserved for many generations to amaze and please the look.

Despite the fact that our region possesses rich resources for development of various directions of tourism (cognitive, event, landscape, ecological), its infrastructure requires active actions from business and government.

The Administration of the Region has decided that main directions of tourist infrastructure development in short term perspective should be 2 main zones of cultural and informative tourism that are Pskov and Pechory and Pushkinskiye Gory that at the same time are conducive for developing tourism of other kinds. That is why the territory of the Pechory district will be transformed into special economic zone of tourist and recreation type where the following projects are planned to be realized with the help of possible investors:

Hotel facilities: building of 6 two- and three star hotels and 1 four star hotel;
Theme park: the theme park will have recreational facilities, public catering facilities, promenade areas, etc. the main theme for the park may become fortress cities of Russia;
Yacht club: center for yachting is planned to be built on the shore of the Pskov Lake;
Center for active rest: development of the present mountain skiing complex;
SPA-center: building of two spa-centers (including the use of local reserve of blue clay).

The second direction for tourist infrastructure development is Pskov itself where the key projects lacking investments are building of hotels, exhibition area of about 2-2.5 thousand square meters, trade and entertainment and sport centers as well as projects aimed at complex development of city environment of Pskov (reconstruction of embankments, parking zones, forming trade streets, etc.) that will prolong the tourists’ visits to our city.

Another direction of tourist infrastructure development is districts of the region where we already have developed investments projects and areas for projects implementation in the sphere of tourism.

The tourism infrastructure in the Pskov region is that sphere of activity that needs very much in the use knowledge, experience and investments.

The Pskov region today is the region with unique opportunities for realization of joint projects.

The potential of region for business development is inexhaustible!

The open-source information is used in this material:

Territorial body of the Federal State Statistics Service in the Pskov region, http://pskovstat.gks.ru
Administration of the Pskov region, www.pskov.ru
Investment memorandum of the Pskov region (2010), www.pskov.ru.