Regional chambers
CCI of the Pskov region - contributes to the development of the Russian economy and its integration into the world economic system and provides favorable conditions for the development of all business activities

About the region

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

The Pskov region is the part of North-West federal district of the 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 comprises 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, 2013 the size of legal population is 661.5 thousand of people, 70,3% of which is city population. Pskov is inhabited by 206 thousand of people, the population of Velikie Luki counts 98 thousand of people. The number of economically active population of the region is (as of august-october 2013) 354,4 thousand of 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.

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

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.

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).

As of 2011 the gross regional product amounted 102276,9 million rubles, gross regional product per capita amounted 152,86 thousand rubles.

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 44.5 million of cubic meters according to industrial category. This total number of deposits includes 20 deposits with approved reserves of 32.3 million of cubic meters, 5 of them are deposits of keramzite clays with total supply of 17.1 million of cubic meters. Despite solid reserves of low-melt clays only 2 deposits are being developed.

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

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 563 060 thousand tons reserves, only 6 of which were developed as of 01.01.2013. 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 5 developed deposits of therapeutic mud among them the well-known sanatorium “Khilovo” in Porkhovskiy operating over 150 years.

The Pskov region is rich in ground and artesian water that are divided into fresh and mineral according to the amount of mineral substances dissolved in them. Water production was formed on the basis of sources of mineral water: water production and run for drinking, healing purposes. Among healing table mineral water the water «Hilovskaya» and «Pskovskaya» are the most popular.

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. Potential commercial production comprises approximately 1000 tones, however in the last years commercial catches in these lakes have amounted to only 20-50 tones. Ten species of commercial fishes are the most important for fishing industry: whitebait, vendace, pike perch, bream, pike, Lake Chud whitewish, perch, roach, burbot, ruff.

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 forests cover about 38% of Pskov region territory, the total area of forest lands comprised 2374,0 thousand hectares as of 01/01/2013, forest density is 327,0 million cubic meters. Rated woodcutting is 5675,3 thousand cubic meters among which 1694,3 thousand cubic meters of softwood.

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 (more 60% of agriculture production), production of vegetables and potatoes.

The Administration of the Pskov region provides significant support to the development of the agriculture. Regional long-term programs have been worked out and are being implemented in order to support agricultural producers. Among them there is a long-term program “Development of the beef stock farming in the Pskov region as of 2011-2020” and range of target programs for the period of 2012-2014: «Support of beginning farmers», «Development of life-stock farms based on farm households», «Development of pig breeding and increase of pork production in the Pskov region».

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. The favorable ecological situation in region, growing demand for domestic products and quite competitive 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, clothing manufacture.

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; publishing and polygraphic activity; manufacture of rubber and plastic articles; vehicles and equipment manufacture.

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 are:

  • 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 provides support to Russian and foreign investors willing to invest in the economy of the Region.

Two industrial parks: “Moglino” and “Stupnikovo” are being created for placing industrial productions and logistics enterprises near Pskov.

Industrial park “Moglino” received in 2012 status of special economic zone (SEZ) according to the Decree of the Government № 729 as of July 19, 2012.

This site of industrial and productional type where the following sectors of high-quality manufactures are planned to take place: agricultural equipment, municipal vehicle, electric and house equipment, production of automobile components, building materials, railway vehicle, packing as well as opening logistics institutes.

SEZ “Moglino” is situated in 8 kilometers to the South-west from Pskov.

The area of the park comprises 215 hectares. The site borders on federal automobile route and rail ways (Saint-Petersburg – Pskov – Riga). The distance to the border with Estonia is about 45 kilometers.

The amount of planned budget funds in infrastructure SEZ “Moglino” is more than 3,2 billion rubles, lead time – to 2015.

The Singapore company «Jurong Consultants» renders consulting, marketing and management services to the Pskov managing company “Moglino” that is responsible for this special economic zone.

SEZ “Moglino” in the Pskov region became the 5th zone of industrial and productional type in the Russian Federation (there are such zones in Tatarstan, the Lipetsk,

Samarskaya and Sverdlovsk regions) and the 2nd in the North-West Federal district considering SEZ «Saint-Petersburg». However both SEZ do not compete in the framework of one federal district because SEZ «Saint-Petersburg» is zone of technology development type.

Within the framework of events aimed at creation of favorable investment climate at the territory of the Pskov region the Regional Administration continues work on attracting domestic and foreign investments in the region.

As of January – December of 2012 78790,8 thousand dollars of foreign investments entered into the Pskov region that comprises 101,4% comparing to the level of 2011.

For the first half of 2013 30,7 million dollars of foreign investments entered into the Pskov region that comprises 54% comparing to the relevant period 2012. In 2013 foreign investments entered into economy of region from ten countries: Belorussia, Denmark, Cyprus, Latvia, Norway, the USA, Tyrkey, Ukraine, Sweden, Estonia.

About 200 companies are working on the territory of the Pskov region with the involvement of foreign capital. Among countries-leaders for creation of joint venture companies in region are the Latvian Republic – more than 140 companies, the second place takes Estonia - more than 40 companies.

Using the measures of state support in 2011-2013 the following huge investment projects with foreign capital have been implemented:

  • building a plant for producing paper components for tobacco industry – “Tann Nevskiy, Ltd.”by company “Tann Papir GMBH” (Austria) in Pskov;
  • building a pig-breeding complex in the Ostrov district for 99000 thousand heads by “Idavang, Ltd” (Denmark);
  • creation of wood-processing complex by “Rosbioprom, Ltd” (Sweden) in Sebezh district;
  • realization of “Tetra Electric” groups of companies project on heat supply system modernization in the region;
  • realization of the LLC “Dula RU” (Germany) project on development of furniture factory in Pskov;
  • building of the LLC “Dobruchi 2” (Danish agricultural company “Trigon Agr”) dairy farm in the Gdov district.

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 celebrates its 1111 anniversary in 2014 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.

The second direction for tourist infrastructure development is Pskov itself where the key projects lacking investments are building of hotels, exhibition area, 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,

- Administration of the Federal Tax Service for the Pskov region,

- Administration of the Pskov region,

- Regional periodical edition - newspaper “Pskovskaya Pravda”: