Investment possibilities of municipal formation KINGISEPP MUNICIPAL DISTRICT. This project is funded by the European Union

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1 Investment possibilities of municipal formation KINGISEPP MUNICIPAL DISTRICT This project is funded by the European Union

2 Kingisepp municipal district is situated in the South-West of Leningrad Region. The district s area is 290,800 hectares, which amounts to 3.4% of the total area of Leningrad Region. The municipal unit consists of 2 towns Kingisepp and Ivangorod and 9 village settlements. There are 81,000 inhabitants in the district, and 20,000 of them live in rural areas. The district s geographical and historical location is unique it shares sea and land frontiers with countries of both former USSR and Western Europe, and is one of the windows to Europe. About half of the length of the district s border is a state frontier; one tenth of it borders with Estonia, the rest is the coast of the Baltic Sea offering access to Scandinavia and the rest of Europe. In the west and the north the district s area is adjacent to the eastern part of the Gulf of Finland, where the coastline is about 126 kilometres long: the Bay of Narva, the Gulf of Kopor, and the Gulf of Luga, which is accessible to seagoing vessels and is virtually free of ice in winter. These unique natural properties provide opportunity for year-round operation of port installations with only a very short period of ice-breaking necessary.

3 Kingisepp District also includes a great number of fairly large islands: Gogland, Moshchny, Seskar, and others. The lower reaches of two navigable rivers Narva and Luga are located in the district; it is crossed by several railroads and motorways, including those connecting St. Petersburg, the country s second largest city, and Tallinn, the capital of Estonia. The distance from Kingisepp to St. Petersburg is 138 km by rail and 110 km by motorway. The district s geographical location favours its development prospects are linked to the construction of port installations and the expansion of the port area. Wide investment opportunities in all branches of economy are an important advantage. The district has a widerange industrial alignment; it is based on its own natural resources and possesses high economic potential. Areas adjacent to the Gulf of Finland, Luga and Narva rivers, and the islands of the Gulf of Finland are characterized by diverse relief and prevalence of pine forests. Beautiful sandy beaches are offered by Kurgalsky Peninsula and its coast. The district contains 11 lakes, of which Kopanskoye, Lippovskoye, Beloye, Glubokoye, Babinskoye, and Khabalovskoye are the largest. A large part of the district s area is located on the Narva Lowland, while its eastern part is occupied by Izhora Elevation. In general, the district s relief does not cause any significant problems for town planning, industrial or agricultural reclamation. The district is rich in various natural resources and sources of raw materials; phosphorites, i.e. quartz sandstones, are the most important of these. The waste products of phosphorite concentration contain a vast supply of sand - about 85% of the raw material for the region s glass industry.

4 The district also possesses large reserves of limestones and dolomites, raw materials for production of lime, road metal, and building stone; Alekseyevskoye, the largest deposit in the region, is located here. Boulder, sand, and gravel materials have industrial significance: 15% of their total resources in the region are concentrated on the territory of Kingisepp District. The district is ranked first in the region by density of assured resources. Peat resources are also substantial. There is a deposit of peloid at Lake Muraveyskoye, south-east of Kingisepp. The south-western part of the district is heavily swamped. The central part is mostly covered with mixed birch, alder, and fir forest with some broad-leaved breeds; the north part with pine and fir forests. Forests occupy a total of 60% of the district s area, swamps about 12%. Over 650 enterprises are active in the district. It is a predominantly industrial district. The industry is based on the district s own natural resources and represented with these principal branches: chemical industry, food processing industry, glasswork industry, and wood processing industry. The specifics of Kingisepp District s geographical location favour the process of its integration into international transport system. The port of Ust-Luga on the Gulf of Finland is being built within the framework of the federal task programme Modernization of Russia s Transport System and its sub-programme Sea Transport ; the port includes installations for the transfer of various kinds of bulk cargo onto large-capacity vessels. The project s total cost is $2 billion. The port s freight turnover is intended to reach 35 million tonnes by Construction of port facilities in the area of Gorki-Vistino has been started. Formation of the adjacent industrial, customs and warehouse zone is being planned, which will also be able to accommodate processing enterprises.

5 With the development of these port facilities, Kingisepp Municipal District is gaining in importance as a vital transport nodal point between Russia and European Union. Once these port installations are put in operation, this will entail development of the complete infrastructure on the territories adjoining the port: growth of motorway and railroad networks, establishment of logistics centres, construction of housing, expansion of services sector, etc. The latter will create new opportunities for small and medium-sized businesses. All this causes the annual growth of investment into the construction of industrial objects in the district. In 2008, 8.3 billion roubles were invested into the district s economy, which is 1.6 times more than in Construction of a number of objects is being performed with the support of federal funds; the amount of federal assistance in 2008 was 2.9 billion roubles. The major part of investments is directed towards the construction of port facilities, railroad approaches to the port, and its infrastructure. The construction work was started in February In 2005, freight turnover at the Port of Ust-Luga amounted to 707,000 tonnes. Coal and timber terminals are in operation; construction of multipurpose trans-shipping facilities intended for reloading of iron, nonferrous metals, and general composite cargo has been completed; the first stage of the car terminal has been brought into service. Construction of a new town accommodating 36,000 people is being planned, to be located at the site of Ust-Luga village. The amount of announced investments into construction and development of the town is 36.7 billion roubles. Advantages of cooperation with our district are obvious. Kingisepp Municipal District is part of the sphere of interest of both federal and regional government in terms of development of its port and industrial potential owing to the expansion of commercial seaport of Ust- Luga into an international traffic and technology centre in the world s freight traffic system; therefore, one of the district s objectives is to use our territory to create a transit intersection of the communication lines with Europe in order to attract shipment flows and provide new stable jobs for the people of the district.

6 In addition, the district s favourable geopolitical location is conducive to the district s administration taking active part in cross-border cooperation and further advancement of external economic and cultural relations with neighbouring countries of the European Union. Thanks to the availability of recreation areas with attractive natural environment and water reservoirs, Kingisepp District holds great potential of developing ecotourism and interest tourism. Shaping of a competitive tourism and recreation industry in the district is also one of the chief strategic areas. The district s management is willing to assist construction of facilities for organized recreation, organization of tourist accommodation and transportation, and organization of group visits to fishing and hunting sites.

7 Kingisepp Municipal District welcomes anyone ready for cooperation. We will be happy to acquire serious-minded business partners in order to establish mutually beneficial business connections.

8 Administration of municipal formation Kingisepp municipal district Leningrad region tel/fax (81375) This publication has been produced with the assistance of the European Union. The contents of this publication are the sole responsibility of project EstRuClusters Development partner Kingisepp municipal district and can in no way be taken to reflect the views of the European Union.