Yekaterinburg, Sverdlovsk Oblast, Ural Federal district, Russia

🇷🇺 Yekaterinburg, alternatively Ekaterinburg, formerly known as Sverdlovsk, is the largest city and the administrative centre of Sverdlovsk Oblast and the Ural Federal District, Russia. The city is located on the Iset River between the Volga-Ural region and Siberia Yekaterinburg is the fourth-largest city in Russia, and the largest city in the Ural Federal District, as well as one of the main cultural and industrial centres of Russia. Yekaterinburg has been dubbed the "Third capital of Russia", as it is ranked third by the size of economy, culture, transportation and tourism.

Yekaterinburg was founded on 18 November 1723 and named after the Russian emperor Peter the Great's wife, who after his death became Catherine I, Yekaterina being the Russian form of her name. The city served as the mining capital of the Russian Empire as well as a strategic connection between Europe and Asia. In 1781, Catherine the Great gave Yekaterinburg the status of a district town of Perm Province, and built the historical Siberian Route through the city. Yekaterinburg became a key city to Siberia, which had rich resources. In the late 19th century, Yekaterinburg became one of the centres of revolutionary movements in the Urals. In 1924, after the Russian SFSR became a part of the Soviet Union, and a socialist state, the city was named Sverdlovsk after the Bolshevik leader Yakov Sverdlov. During the Soviet era, Sverdlovsk was turned into an industrial and administrative powerhouse. In 1991, after the dissolution of the Soviet Union, the city returned to its historical name.

Yekaterinburg is one of Russia's most important economic centres and was one of the host cities of the 2018 FIFA World Cup. The city is currently experiencing an economic and population boom, which resulted in some of the tallest skyscrapers of Russia being located in the city. Yekaterinburg is home to the headquarters of the Central Military District of the Russian Armed Forces, as well as the presidium of the Ural Branch of the Russian Academy of Sciences, and will be the host city of the 2023 Summer Universiade.

The city on the border of Europe and Asia is included by UNESCO in the list of 12 ideal cities of the world along with New York, Tokyo, Stockholm and Paris – for its historical and cultural heritage, bright and very diverse architectural look.

Yekaterinburg is famous for its constructivist architecture and is also considered the "Russian capital of street art".

Economy Yekaterinburg is one of the largest economic centres in Russia. It is included in the City-600 list (it unites the 600 largest cities in the world that produce 60% of global GDP), compiled by the McKinsey Global Institute, a research organisation. In 2010, the consulting company estimated the gross product of Yekaterinburg to be about $19 billion (according to the calculations of the company, it should grow to $40 billion by 2025).

By volume of the economy, Yekaterinburg ranks third in the country, after Moscow and St. Petersburg. According to a research of the Institute for Urban Economics, in the ranking of the largest cities and regional capital cities according to economic standards for 2015, Yekaterinburg ranked 3rd. The city's gross urban product (GVP) was 898 billion rubles. Per capita GDP was 621.0 thousand rubles (18th place). In 2015, the gross urban product of the Yekaterinburg metropolitan area amounted to 50.7 billion international dollars (the fourth place in the country) or 25.4 thousand international dollars in terms of per inhabitant of the metropolitan area.

In the Soviet era, Yekaterinburg (as Sverdlovsk) was a purely industrial city, with a share of industry in the economy of 90% (of which 90% were in defense production). With Chelyabinsk and Perm, the three cities formed what to be the Urals industrial hub.

The former head of Yekaterinburg, Arkady Chernetsky, has set the goal of diversifying the city's economy, which has resulted in the development of sectors such as warehousing, transportation, logistics, telecommunications, financial sector, wholesale and retail trade, etc. in Yekaterinburg. Economist-geographer Natalia Zubarevich points out that at the present stage, Yekaterinburg has practically lost its industrial specialisation.

Living costs and the labour market The standard of living in Yekaterinburg exceeds the average standard across Russia. According to the Department of Sociology of the Financial University under the Government of the Russian Federation, it is among the top ten cities with the highest standard of living. Compared to other Russian cities with a population of around or over one million, in 2015, Yekaterinburg held a leading position in terms of average monthly wages and retail turnover, in terms of the total volume of investments in 4th place of fixed assets, and 2nd place in housing placement.

The average monthly wage in Yekaterinburg following the results of 2019 was 54,976 rubles. This is the 1st place among the millionth municipalities of the Russian Federation. There are on average 440,300 people employed by large and middle-sized organisations and companies. The unemployment rate at the end of 2015 was 0.83% of the total economically active population. Locals labelled the main problems of the city such the current state of the healthcare system, housing system, and transportation system. The budget of Yekaterinburg in 2015 was executed on income in the amount of 32,063.6 million rubles, for expenses in the amount of 32,745.8 million rubles. Among the budget expenditures: 17 billion rubles were spent on education, over 1 billion rubles on culture, and about 900 million rubles on health. The main part of the revenue of the city treasury was its own tax and non-tax revenues (more than 18 billion rubles). The revenues from the regional and federal budgets were at the lowest level in 10 years. Specialists noted a decrease in tax revenues and an increase in tax debt (exceeded 2 billion rubles).

The main budget expenditures are the development of the economy (which accounts for 19% of expenditures) and the social security of the townspeople (11% of expenditures go). Cities such as Perm, Kazan and Ufa, spend for these purposes in a smaller percentage of costs (from 2 to 6%). Also, a fairly strict budgetary discipline is noted—the budget deficit is kept at the level of 2% of its volume.

Finance and business Yekaterinburg is one of the largest financial and business centres in Russia, with offices of multinational corporations, representative offices of foreign companies, and a large number of federal and regional financial and credit organisations. The financial market of Yekaterinburg is characterised by stability and independence, based both on the broad presence of large foreign and Moscow credit organisations and on the availability of large and stable local financial holdings.

The financial sector of Yekaterinburg has more than 100 banks, including 11 foreign banks. The list of the largest Russian banks for assets for 2016 included 10 banks registered in Yekaterinburg, including but not all: Ural Bank for Reconstruction and Development, SKB-Bank, Uraltransbank, and UM Bank. IT "SKB Kontur" from Yekaterinburg – the largest software manufacturer in Russia – 1st place according to the RAEX rating

Also in Yekaterinburg is the Ural headquarters of the Central Bank of Russia. Since 7 August 2017, by order of the Bank of Russia, the branches of the Siberian, Far Eastern and part of the Prevolzhsky Federal Districts have been transferred to the control of the Ural Megaregal Directorate. Thus, this is one of the three main departments of the Mega-regulator in the territory of Russia.

A major role in the formation of Yekaterinburg as a business centre has its infrastructural potential, which is growing at a high rate: transport accessibility for Russian and foreign economic entities, the availability of hotels, advanced communication services, business related services (consulting, exhibition activities, etc.). Yekaterinburg has its own central business district, Yekaterinburg City.

Industry Yekaterinburg has been a major industrial centre since its foundation. In the 18th century, the main branches were smelting and processing of metal. Since the beginning of the 19th century, machine building appeared, and in the second half of the 19th century, light and food (especially milling) industry was widely spread. A new stage in the development of production occurred during the period of industrialisation – at this time in the city, factories were built, which determined the industry specialisation of heavy engineering. During World War II, Yekaterinburg (as Sverdlovsk) hosted about sixty enterprises evacuated from Central Russia and Ukraine. As a result, there was a sharp increase in the production capacity of existing plants and the emergence of new branches of the Urals industry.

At present, more than 220 large and medium-sized enterprises are registered in Yekaterinburg, 197 of them in manufacturing industries. In 2015, they shipped 323,288 million rubles worth of own-produced goods. Production by industry was divided accordingly: metallurgical production and metalworking 20.9%, food production 13.3%, production of electrical equipment, electronic and optical equipment 9.2%, production of vehicles 8.4%, production of machinery and equipment 6.4%, chemical production 5.5%, production of other nonmetallic mineral products 3.7%, production of rubber and plastic products 2.8%, pulp and paper production, publishing and printing 0.5%, and other 29.3%.

Several headquarters of large Russian industrial companies are located in the city: IDGC of Urals, Enel Russia, Steel-Industrial Company, Russian Copper Company, Kalina, NLMK-Sort, VIZ-Stal, Sinara Group, Uralelectrotyazhmash, Automation Association named after academician NA Semikhatov, Ural Heavy Machinery Plant (Uralmash), Fat Plant, Fores, confectionery association Sladko, Machine Building Plant named after M.I. Kalinin, Ural Turbine Plant, Uralkhimmash and others.

Retail and services Yekaterinburg ranks 1st in retail trade of the Russian Federation per capita, ahead of Moscow. The consumer market contributes significantly to Yekaterinburg's economy. Revenue of retail stores in 2015 amounted to 725.9 billion rubles, and the number of retailers totaled 4,290. As of 1 January 2016, 36 shopping centres operate in the city, taking up a total area of which was 1,502,700 m2 (16,175,000 sq ft). The availability of shopping centres per 1,000 inhabitants increased to 597.2 m2 (6,428 sq ft). Retail areas amounted to 2,019,000 m2 (21,730,000 sq ft), with the availability of retail space reached 1,366.3 m2 (14,707 sq ft) per 1,000 inhabitants. According to these statistics, Yekaterinburg holds leading positions among other major cities of Russia. In the consumer market of Yekaterinburg, 1041 network operators are represented. The number of wholesale enterprises totalled 1,435. Among the Federal construction stores represented in the city, you can select: Leroy Merlin, Castorama, Domostroy, Maxidom, OBI, Sdvor. Yekaterinburg has an agricultural market named Shartashsky. The revenue of catering in 2015 totalled 38.6 billion rubles. The network of catering enterprises in Yekaterinburg is presented as follows: 153 restaurants, 210 bars, 445 cafes, 100 coffee houses, 582 dining rooms, 189 eateries, 173 fast-food establishments, 10 tea shops, 319 other types of institutions (buffets, cafeterias, catering companies). 82.6% of catering enterprises provide additional services to consumers.

The revenue of the services industry in 2015 totalled 74.9 billion rubles. The fastest pace in the city is developing hairdressing services, sewing and knitting atelier services, pawnshop services, fitness centre services. The network of public service enterprises in Yekaterinburg includes 5,185 facilities. In 2015, the provision of service areas for service enterprises totaled 382.1 m2 (4,113 sq ft) per 1,000 citizens. The highest concentration of household services is observed in the Verkh-Isetsky, Oktyabrsky and Leninsky districts.

Greenwich Shopping Center, as of 2021, is the largest shopping centre in Europe.

The largest store in the world by area is Sima-Land.

Tourist Industry Yekaterinburg is a major centre for the Russian tourist industry. In 2015, the city was one of the top five most visited Russian cities (others being Moscow, St. Petersburg, Novosibirsk, and Vladivostok) according to the Global Destinations Cities Index, which represents the payment system Mastercard. In recent years, a lot of work has been done to create a positive image of Yekaterinburg as a centre for international tourism, including holding of summits for the Shanghai Cooperation Organisation (SCO) in 2008 and 2009 and the international exhibition Innoprom in 2009 and 2010. In 2014, Yekaterinburg ranked third among Russian cities in popularity among foreign tourists after Moscow and St. Petersburg.

In 2015, the total flow of inbound tourism grew by 10% compared to the previous year and amounted to 2.1 million people. In recent years, there has been a tendency to reduce the role of business tourism in the overall flow: if in 2013 about 80% of trips were business, in 2015 their number was already 67%. Most tourists go to "bow to the memory of the last and his family". In addition, new tourist ideas are developing such as the Bazhov theme, the geological and mineralogical theme, industrial tourism, and the event calendar.

Transportation Yekaterinburg is the third largest transport hub of Russia, behind Moscow and St. Petersburg. The city has 6 federal highways, 7 main railway lines, and an international airport. The location of Yekaterinburg in the central part of the region allows for 7 to 10 hours to get from it to any large city of the Urals. The formation of Yekaterinburg as an important transportation hub is largely due to the city's favorable geographical location on a low stretch of the Ural Mountains, through which it was convenient to lay the main roads connecting the European and Eastern parts of Russia.