Let us discuss the development potential of Moscow and St. Petersburg. In the post-Soviet
situation these two cities are the two most prominent cases. Functional structures in both cities
are much more intensive and perceptible than elsewhere in the “vastness” of Russia, they are
in the process of constant change, while city economics underwent rapid change along market
lines (BRADE, PERZIK & PITERSKI 2000, LAPPO & HONSCH 2000).
In absolute terms Moscow occupies a prime position within Russiaiv. In addition to the
functions of a capital city and cultural functions, Moscow also is the centre of Russians
economic power and financial capital. Here is where the distribution of investment is decided.
Besides the state, the most important economic decision makers, such as banks, economic
concerns, industrial finance groups, have their headquarters in Moscow. The regional and
local investors are as a rule closely linked to them. Before, it was the large Union Industry
Ministers and departments, who knew how to subordinate the regional policy and planning to
their own interests, now it is once again the economic structures which exert considerable
influence on regulating regional policy. Large areas of reconstruction, towering skyscrapers of
the large economic and finance concerns, new image making memorials, large business and
trade centres increasingly form the city structure of the former socialist capital of the Soviet
Union.
Generally it is to be observed that the influence of Moscow on plans and decisions in the
regions is as before very large, because the prominent state institutions, the central scientific
research institutes, the independent commissions of experts or the consulting firms in the
government and in economic structures are found in Moscow and still have the key role in
working out the significant planning projects. For the production of regional and urban
planning there are in principle only the planning institutes in Moscow and St. Petersburg
(Brade, Perzik & Piterski 2000; Piterski & Brade 2000b).
At the same time the post-Soviet development of St. Petersburg was largely framed by
changes in its geopolitical position, which led this city to become again an important gateway
from Russia to Western Europe..
Cities with a population over 100,000 are very interesting Perspectives of development of
these large Russian cities are different. For example, in such areas as the Urals
(Yekaterinburg, Perm, Cheliabinsk, Ufa), the Volga Region (Samara, Nizhni Novgorod,