The Investment Environment In St. Petersburg

During the Soviet period St. Petersburg was a major military-industrial and Scientific centre, but these sectors have shrunk dramatically during the 1990's. The city's problems include de-industrialization and a declining population, but it is nonetheless acquiring new functions in Russian foreign trade and international relations. With Russia's largest ports, the city is well placed to attract infrastructure investments. St. Petersburg has some strengths (gateway location, technological potential, qualified labour, culturally rich milieu), which may attract foreign capital and business, especially if the investment climate in the country improves. Crime, rising social problems and political instability are among the most serious risk factors.