Download Information about Pskov region

Economic, industrial and investment potential of the Pskov region
Unique geographical location, favorable investment climate and rapidly growing
infrastructure make Pskov one of the most interesting and attractive regions for foreign and
domestic investments.
Pskov is one of two regions in Russia that borders on three foreign states: Estonia, Latvia
and Belarus. The distance to the access to the European markets is only 50 km.
One of the advantages of the Pskov region is proximity to potential demand centers, largest
markets and agglomerations of Russia: Moscow and St. Petersburg.
Beneficial geographical location guarantees a stable goods turnover in the Pskov region.
The economy of Pskov is quite diversified. Priority economic development sectors are
agriculture, production of electric & electronic goods, machinery & equipment, tourism, transport
and logistics, construction, timber processing.
Within the last 4 years, Pskov GRP has shown a steady growth.
The largest share in the industrial sector is taken by producers of electrical, electronic and
optical equipment and food processing.
Pskov has rich reserves of limestone, gravel, dolomite, marl, gypsum, refractory and fusible
clays, molding sands, raw materials for mineral colors, mineral water, sapropel, therapeutic mud,
and peat. Forests cover over one third of the region.
Pride and wealth of the Pskov region are water resources: over 3,700 lakes provide for the
image of Pskov as an intact nature reserve.
The industrial potential of the Pskov region is based on over 250 large and medium
manufacturing companies. Electrical and mechanical engineering is a traditional sector for the
Pskov region, it accounts for 40% of the total industrial production.
Among others, the most developed industrial areas are automotive equipment, wide range
of cable products, AC and DC electric motors, electric welding equipment, engineering and special
purpose equipment, mobile lifting equipment, machinery for forestry and agriculture, construction
materials (deep processed timber, ceramic bricks, ceramic tiles, metal products, steel, cast iron,
nonferrous metals, alloys).
The Administration of the Pskov region makes every effort to support a favorable
investment climate in Pskov.
The key mechanisms include comprehensive administrative support to investment projects
in the mode of "one stop shop approach", tax incentives, special support measures in strategic
sectors such as agriculture, tourism, industry, housing, concessional lending for SMEs, subsidies,
land lease on special terms.
A significant advantage of Pskov is availability of utility infrastructure such as vacant
power capacities and affordable technological connection to utilities.
Agriculture is one of the priorities of social and economic development of Pskov. This
sector accounts for 6.8% of GRP.
Production indices have shown a stable growth in recent years. 56.7% of Pskov land is
agriculture land, out of which 252.6 thousand hectares are vacant.
The most developed agriculture branches are cattle and pig breeding, poultry farming,
aquaculture, vegetable and fruit growing.
Pskov gives every opportunity for fish breeding. The local climate is conducive for
sturgeons, trouts, carps and other species of fish.
The most developed agriculture branch is cattle breeding. The recent years have witnessed
a stable growth in this sector. Four dairy units, 1200 animal each, were constructed in Pskov. They
produce 9 thousand tons of milk annually. The pedigree cows at these farms were imported from
Australia.
Pig breeding is one of the most dynamic sectors. Modernization and reconstruction of pig
breeding farms allows for annual increase in pork production.
The biggest meat producers are two meat plants in Pskov and Velikye Luki. The latter is a
flagship of the meat processing industry in the North West of Russia. Since 2002, it has been one
of seven largest sausage producers in Russia. During the last three years it has been stable No. 3.
Education services of high quality are a particularly important factor for businesses. Pskov
has 22 VET schools and 12 high schools. Over 3000 specialists graduate every year.
In 2011, the Pskov State University was established after the unification of five key high
schools specializing in teachers training, polytechnic & engineering, and vocational training for
various industrial occupations including construction. The University provides all three levels of
professional training: vocational, Bachelor’s and Master's programs.
Geographical location and mutual commercial and historical ties with the West make the
Pskov Region a natural “gateway” between Russia and the European Union. Every year,
approximately 5% of Russia’s imports and 10% of Russia’s exports go through 14 customs
checkpoints located in Pskov. 32% of international cargo turnover of the North West Federal
District pass through the Pskov region. Advanced “green corridor” project provides for a much
faster customs clearance. In addition, Pskov customs employs an e-declaration system for faster
and easier cargo and vehicles flow through the customs checkpoints.
Pskov is implementing several projects of affordable housing including more than 20
projects of the comprehensive special development with apartment blocks, cottage settlements,
and social infrastructure. Modern construction technologies are widely used.
Pskov healthcare system is currently implementing several large scale projects of perinatal
center, hemodialysis center, and cancer detection center. The hospitals are introducing high-tech
detection & treatment methods. The network of rural health posts is expanding, and first-aid
stations are also operating along key federal highways.
Pskov is an ancient Russian city with rich history and culture. Pskov has over 500 sites to
see.
The number of tourists in Pskov is growing every year. Tourist and recreational cluster
"Pskovsky" is a new project to improve the competitiveness of Pskov as a tourism destination.
This cluster consists of several investment projects in the spheres of hospitality, catering and rural
tourism.
Four key tourist destinations are Pskov, Izborsk, Pechory, and Pushkinskiye Gory.
Rural, eco-friendly tourism and craft tourism are developing actively.
Moglino Special economic zone is one of six industrial zones in Russia and the only one
in the north-west of Russia. The total area of Moglino SEZ is 215 ha which can host up to 50
manufacturing facilities. Moglino SEZ provides special business regime with unique advantages
for investors.
Our special taxation regime allows tenants to considerably cut start-up costs. Every SEZ
tenant can use the full range of benefits provided in accordance with the Russian legislature. Tax
holidays provided by the regional government shall last 5-10 years. An investment project can
save up to 30-40% of its costs due to these incentives.
Free customs zone allows tenants to locate and use foreign goods in free customs zone
territory without customs duties and value added tax; Russian goods can be used under export
conditions including excise but free from export customs duties. By the beginning of 2016 most
utility infrastructure objects in Moglino SEZ will be finished. First Moglino tenants will start their
construction works on site already in 2015.