It is planned to create an industrial zone for manufacturing Italian footwear. This issue has already been approved by the RF Government and S. Petersburg authorities. According to the forecasts of officials from S.Petersburg city government, due to economy on transportation and customs expenses, lower labor force cost, the cost of the manufactured footwear will be 25-60% less than that of footwear imported from Italy. Consultation stage on all issues concerning creation of the industrial zone is to be finished by the middle of 2003.
According to Alexander Sidorov, head of Investment Policy Department of the Committee for Economic Development, Industrial Policy and trade of Petersburg administration, the place, the place for the development of the industrial zone has already been chosen. It is 7 hectares in Parnas industrial zone.
" The Italian party will determine the main enterprise of the zone (one of the options - leather or accessories producing enterprise), which will be surrounded both by Italian small-scale enterprises and Russian ones.
The space area for production premises will be divided between them on parity condition. A joint enterprise for managing the work will be established. The enterprises will be founded by Russian and Italian investors.
Currently a founders' pool is being created. Besides, a bonded warehouse will be opened on the territory of the zone, where imported Italian footwear will be kept without being cleared by the customs for up to 3 years. Clearance procedure will be performed only after being purchased by Russian wholesale dealers.
S. Petersburg government is going to take part in creation of the industrial zone. It is planned to invest part of the means from the target program of developing small-scale business, and to help in importing equipment without paying customs duties.
Footwear export occupies the third line in the list of main Italian commodities exported to Russia. According to Antonio Brotini, president of Italian National Footwear Manufacturers Association, Russia stands 12th among the countries buying Italian footwear in kind estimate, and the second - in cost estimate, with only Japan outstripping.
Until now the main streams of Italian footwear have been going through Moscow companies, whereas direct deliveries to the North-west will enable to reduce the value of the goods.
It is interesting that such zone on manufacturing footwear had been planned to be created in Moscow. But when a serious opposition of the capital's importers occurred, it was decided to develop the industrial zone in Petersburg and the Moscow region.

Source: Business Petersburg (Saint-Petersburg), Issue 208
25.11.2002