• 1/10/2018

Governor of the Leningrad Region on investments and cooperation

Now much is said about the changes in the country and in the regions that have occurred recently under the influence of economic sanctions. The Governor of the Leningrad Region, Alexander Drozdenko, talks about the direction in which the economy of the Leningrad Region is developing, about investments and cooperation with enterprises of St. Petersburg.

Governor Alexander Drozdenko is sure that under the influence of mutual economic sanctions the “portrait” of an investor in the Leningrad Region has changed. “If earlier it used to be mainly a large foreign investor, nowadays import substitution projects offered by both domestic and foreign investors following the path to localization have come first. For economic reasons related to exchange rate differences, it is profitable for foreigners to produce products in Russia, and then sell them both in our country and abroad.”

An important focus in the development of industry is made on the development of competencies within the clusters existing in the region. “The global experience testifies to the effectiveness of the cluster approach: nowadays more than 50 percent of the economy is developing within clusters in the developed countries, and more than 40 percent of employees are working in clusters. In the Leningrad Region, 11 cluster initiatives are currently being implemented.

Does proximity to St. Petersburg help? In terms of product sales and cooperation, of course, yes. For example, the regional automotive cluster, which includes 11 leading companies – manufacturers of auto parts from the Leningrad Region, is collaborating with Nissan's car manufacturing plant located in St. Petersburg.

Similar situation is observed in the radiopharmaceutical cluster. It includes over a dozen leading organizations performing R&D and introducing new technologies in the field of medicine and pharmacology. There are also examples when St. Petersburg is represented by scientific potential, and production sites are located in the Leningrad Region. In particular, they are engaged in preclinical studies of pharmaceuticals, specialized food products, biologically active compounds, and cosmetic products for domestic and foreign companies.

Now the third wave of investments is rising in the Leningrad Region. It is associated with the final transformation of the region into one of the main transport and logistics hubs of Russia, with the establishment of a pool of export-oriented petrochemical industries, with the further development of engineering, agricultural sector (the region already produces more than 40% of food products in the North-West of Russia), and residential construction.

Based on Expert magazine materials