Food industry, construction, hotel business and trucking industry are the main spheres of Russian and foreign investments in St Petersburg.
Most investments in 2003 were made in the markets of meat, dairy products, bread and bakery. These products are always much in demand, therefore the biggest amount of funds was directed here. However, it is hard to tell which of the products attract more investments (except for bakery industry). In 2003 antimonopoly institutions both of the city and the region of St Petersburg examined five written requests on receiving permissions for purchasing shares of bakery enterprises. Four permissions were granted, the fifth appeal was rejected.
These data are from the analysis of the results of 2003 and trends for 2004 conducted by the specialists of St Petersburg Regional Administration of Russian Ministry on Antimonopoly Politics and Supporting Businessmen.
Hotel business requests big capital investments, and it attracts foreign investors most of all. Foreigners purchase shares from authorized capital stock of the companies involved in hotel business.
Russian investors are involved in leasing services by funding reconstruction of buildings and establishing new big shopping, entertainment and business centers.
Investments in construction are booming. This results from the increased demand for housing and the opportunity to bid in tenders for constructing big federal and regional objects. The most common investors here are management companies (similar to holding companies) which initially do not have much funds, but they conduct the activity to satisfy their own needs.
Private individuals who have some shares but want to obtain controlling stock, are still very active in transactions with shares. Individuals often operate as company’s executive body.
There have been no major changes among the non-resident companies – joint-owners of St Petersburg enterprises. They are mainly off-shore companies registered in Cyprus, the Bahamas and the British Virginian Islands. It is often hard to reveal real owners of such companies.