Economic geography of Russian border regions Dmitry Zimin

Course’s internet site: – http: //ziminlectures. narod. ru • Reading list (optional) • Power. Point presentations of my lectures

Plan of this lecture: 1. Level of development 2. Dynamics of development 3. Economic development policies

Federal Districts of Russia

Northwest Federal District

Main economic branches of the Murmansk region • Extractive industries (metal ores and phosphates); • Metal industries (copper, nickel, aluminium, precious metals); • Generation of electricity; • Fishing and fish-processing; • Transport; • Naval bases.

Murmansk seaport

Fleet of icebreakers

Northern Maritime Route: ~ 7000 miles shorter than the route Through the Suez Canal.

Severomorsk Naval Base (from Google)

Submarine Base in Gremikha Bay

Kola Nuclear Power Plant

Nickel Plant in Pechenga (Petsamo)

Saami: reindeer herding

Main economic branches of the Republic of Karelia • Extractive industries (iron ore and nonmineral construction materials, e. g. gravel); • Pulp-and-paper industry; • Metals and metal products; • Forestry and wood-working; • Shipbuilding; • Transport and tourism.

Karelsky Okatysh: iron ore quarry

Karelsky Okatysh Plant in Kostomuksha

Segezha Paper Mill (makes paper sacks)

Kondopoga paper mill (makes newsprint)

Nadvoitsy Aluminium Smelter

Onega Tractor Plant in Petrozavodsk: CLOSED DOWN

Petrozavodskmash: oil rectification column

Petrozavodskmash: a tank for chemicals

Avangard Shipyard in Petrozavodsk: bankrupt

Hovercraft “Ivolga”

Onega shipbuilding plant, PZ

Valaam Monastery (archipelago in Ladoga)

Kizhi (an island in Onego Lake)

Solovetsky monastery (in the White Sea)

Main economic branches of the Leningrad region • • Transport (new seaports and pipelines); Construction + construction materials; Trade (retail and wholesale); Food industry (poultry meat processing); Shipbuilding and automobile industry; Chemicals and oil products; Pulp-and-paper industry; Generation of electricity.

Ford cars in Vsevolozhsk

Nokian Tyres in Vsevolozhsk

Kirishi Oil Refinery

Leningrad Nuclear Power Plant: control room

New Leningrad Nuclear Power Plant (LAES-2): under construction

Vyborg Shipyard: ships and oil rigs

Primorsk Seaport

Vysotsk Seaport

Ust’-Luga Seaport: coal terminal

New pipelines

Vyborg Castle

Main economic branches of St. Petersburg • Trade and services (education, healthcare, tourism, etc. ); • Construction and construction materials; • Transport and communications; • Food industry; • Power engineering industry; • Shipbuilding and car industry.

Baltic Shipyard: an icebreaker

Baltic Shipyard: cruiser (project)

Baltic Shipyard: Floating Nuclear Power Plant

Admiralty Shipyard: a submarine

Severnaya Shipyard

St. Petersburg Seaport

Elektrosila + LMZ + ZTL: turbines

Elektrosila: power generators

Toyota Plant in Shushary

Nissan Car-Assembly Plant

Gazprom Business Centre (project)

Stockmann on Nevsky: completed in 2010

Museums: The Hermitage

Historical City Centre

Corporate structures: • Most big companies are not independent – they are usually part of larger corporations: – RUSAL owns: Volkhov, Kandalaksha and Nadvoitsy aluminium smelters and Pikalevo alumina comibine; – Severstal owns: Kostomuksha and Olenegorsk mining combines and Izhora Pipe-making Plant; – Silovye Mashiny Corp. owns: Elekrosila, LMZ and ZTL; – Investlesprom owns Segezha Paper Mill; – Rosatom owns Petrozavodskmash, etc.

2. Dynamics of development

Main sectors of growth in St. Petersburg • Residential and non-residential construction; • Industry: automotive and foodstuffs; • Rapid development of trade and services; • Relocation of headquarters of several Russian oil and gas companies to the city

Development dynamics of the Leningrad region • Rapid development of transport: oil and gas pipelines, seaports, railways; • Strong growth in some industries: chemicals, automotive, foodstuffs, woodprocessing, pulp-and-paper; • Housing construction boom.

Russian Karelia & Murmansk region: STAGNATION • Karelia: positive dynamics only in extractive industries (iron ore and construction materials); • Murmansk: there are hopes to gain from expansion of Murmansk’s seaport, while the Shtokman gas project has been delayed.

3. Economic Development Policies: • Federal economic policies • Regional economic policies

Federal economic policies: • Public-private partnerships (e. g. the development of the Pulkovo Airport); • Deal for the car industry: – The Government abolishes customs duties on car parts, while car manufacturers “localize” supplies for their car plants in Russia; • Deal for the wood-working industry: – The Government increases export duties on Russian round-wood, and offers special preferences for investors in large woodprocessing ventures in Russia.

Regional economic policies: • Regions differ a lot in terms of their policies; • Russian Karelia and Murmansk region have the reputation of “closed regions”; • St. Petersburg and Leningrad region are more “open”: – Tax holidays for investors; – Technical assistance to investors; – Lobbying for large-scale projects in Moscow.