Economy
St Petersburg, as the 2nd largest industrial centre in Russia, is a major manufacturing and research centre. Much of the engineering output was, however, geared to meet military needs and went into a steep decline with the break-up of the Soviet Union. Industrial output fell by about 75%, between 1992 and 1995. The past few years have, however, seen a major transformation towards modern technologies, with new industrial leaders coming up, taking over old city-centre factories for conversion or building new facilities on the 8 industrial zones on the border of the city. New players on the local scene include multinationals such as Coca-Cola, Rothmans and Unilever. The main district for business in the city is Nevsky prospekt, with most of the offices situated on or near it.
constructionwork associated with this transformation has in itself provided a big boost to the local economy. St Petersburg benefits from having an intellectual workforce, together with world-class educational and research facilities making it very attractive to inward investment, mainly in the field of high-tech industries. It is a major transportation hub and also the country’s largest seaport. The leading industries are transport, engineering, food processing, paper processing and shipbuilding.
Tourism is rising fast as a contributor to the economy and, with St Petersburg already attracting more tourists than any other Russian city, this lseems to increase, bringing with it more construction work and employment in the service sector.
The labour force of St Petersburg, at 2.6 million, is approximately half of the resident population, of whom around 3% may or may not be unemployed. Official statistics on unemployment and employment are notoriously unreliable, owing to the lack of financial incentives, under social security legislation, to register, as well as the size of the black or hidden economy. Unemployment in the Russia officially stands at 11%. Nonetheless, no account is taken of workers still registered with employers but receiving no pay, as many Russian workers continue to go to work but receive no pay and some stop going to workplaces that do not have the funds to pay their wages, although they may still be officially on their books.
Business Etiquette
Formal business etiquette is very vital in St Petersburg and both men and women should wear smart and sober business suits. Business visitors should start each meeting with a handshake and exchange business cards, printed both in English and Russian. Appropriate gifts are key rings, pens and lighters bearing the company logo. Visitors should always wait for the senior Russian present to begin the meeting and chip in only when invited to. They should also do some research and know a little about everyone present at the meeting. Referring to colleagues by their first name and patronymic is a way of showing some knowledge of Russian culture. There are not so many women in Russian business but Western businesswomen will not be treated much differently, they will be regarded as honorary males. When shaking hands, foreign businessman should never extend their hands to a Russian businesswoman, unless hers is outstretched, as such a gesture is considered very rude.
Normal office hours are Monday-Friday 1000-1800hrs, with a long lunch break, usually 1200-1400hrs, during which no work is done – even telephones are left unanswered. Although working outside business hours may be frowned upon, a business colleague may invite for a night on the town or dinner at home. |
