Special economic zones

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Special economic zones of the Russian Federation Ministry for economic development of the Russian Federation Department of special economic zones and projects of regional development

Location of 28 special economic zones 6 Industrial and production zones 14 Tourist and recreational zones 5 Technology and innovation zones 3 Port zones St.Peterburg Murmansk Region Samara Region Republic of Tatarstan Republic of Tatarstan Sverdlovsk Region Pskov Region Moscow Region Dubna Moscow Zelenograd Khabarovsk Region Kaluga Region Lipetsk Region Stavropol Region Ulyanovsk Region Chechen Republic Ski claster Ingushetia Krasnodar Region Kabardino-Balkaria Dagestan Tomsk Region Altai Region Russkiy island Adygeya Karachaeva- Cherkessia Osetiya Republic of Altai Irkutsk Region Republic of Buryatia 2

90000 80000 70000 60000 50000 40000 30000 20000 10000 0 The key figures of SEZ s efficiency More than 60 bln. RUB invested in infrastructure 4053,3 Investors assets 16543,9 16194,8 23876 24610,7 31816 33823,4 49412 33334,7 69299,8 47320,4 Federal budget 2006 2007 2008 2009 2010 2011 2012 2013 78451,1 55589 More than 300 residents in SEZ 350 329 306 318 300 257 250 200 150 143 207 39 5 60 214 Planned total investments more than $ 12 bln. 39 5 71 100 50 0 12 53 2006 2007 2008 2009 2010 2011 2012 2013 Industrial and production zones Technology and innovation zones Tourist and recreational zones Port zones 214

Be with us on the highway to success! Rockwool International has built the largest thermal insulation Thanks to free connection to utility lines Air Liquide saved up to $2 5 l f i t t materials producing $2.5 mln. of investments factory in the world and saved $12.6 mln. on customs incentives Nicholas Andrew Vince, General Director, Rockwool Russia Jan Keller, Vice-president Russia-CIS and member of Air Liquide executive Committee In such a large project like ours, tax incentives are of great importance We consider SEZ as the best place for business and investments in Russia Mechmet Ali Tiryaki, General Director, JV Saint - Goban and Sisecam Sekine Toshikazu, Director for economy, Yokohama

Why do investors choose us? Tax preferences Income tax Federal budget - 2% Regional budget - 18% Federal budget 0% Regional budget - 0-13,5% ( 0% is allowed in Republic of Tatarstan, Samara region, Lipetsk region) Property tax 22% 2,2% 0% for 10 years The free customs zone Exemption from import duties and VAT by import of raw materials, equipment, construction materials and components No export duties and VAT for finished goods Ready-to-use infrastructure Free connection to utility lines Favorable rent rates Buy-out of land is allowed on favorable conditions Transport tax ( in EUR/1 hp) Land tax Insurance fee payment 0.1-3.8 0 for 10 years 1,5% 0% for 5 years 34% 14% * The best area for investments in the Russian Federation! On the territory of Russian Federation On the territory of SEZ * Limited to residents of innovation SEZ, industrial SEZ involved in R&D activities and for residents of tourist cluster

Preferences Special administrative regime Decrease in administrative barriers, single window Transparent legislative and management Authorities involved: Ministry of economic development, JSС SEZ Access to qualified human resources Science and education centers Free customs mode No import duty, refundable VAT Allthe necessaryinfrastructureat at lower prices Office facilities, gas, water, energy etc. State guarantees and stability Investment agreement with the Government, zones are created for 20 years Special tax treatment Income tax decrease, property, land, transport tax exemption for 5 years 6

Obtaining the resident status -forming request to the Ministry - expert committee consideration STEP ONE STEP TWO STEP THREE STEP FOUR STEP FIVE -register the company -forming business plan - supervisory committee consideration - sign an agreement with the Ministry and the management company Friday, May 23, 2014 7

MANAGEMENT OF THE SPECIAL ECONOMIC ZONES 1 implementing general policy of SEZ (incl. legislation) Ministry of economic attraction of potential investors and management companies development of approval and registration of residents (investors) the Russian signing the agreements with residents and management Federation companies control over execution by residents of agreements 2 JSC «Special economic zones» Subsidiaries of JSC «SEZ» Professional management company Preferences: receives state subsidies tax preferences master-planning and development of SEZ designing and building of infrastructure attraction of potential investors management and operation of SEZ granting land to investors specifications of connection to engineering networks

Contact information Ministry for economic development of the Russian Federation Mr. Andrei Sokolov +7 (499) 795-66-47 Director of the Department of special economic zones and projects of regional development