SVERDLOVSK REGION INDUSTRIAL PRODUCTION SPECIAL ECONOMIC ZONE. Invest in Sverdlovsk Region Russia

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SVERDLOVSK REGION INDUSTRIAL PRODUCTION SPECIAL ECONOMIC ZONE

2 SVERDLOVSK REGION INDUSTRIAL PRODUCTION SPECIAL ECONOMIC ZONE Why Special Economic Zone? to base new productions to improve regional infrastructure to develop regional clusters

3 Sverdlovsk Region Place to Invest

4 Industrial Production Economic Zone Location INDUSTRIAL PRODUCTION SPECIAL ECONOMIC ZONE Sverdlovsk Region Area 19 430 thous. hectare Population 4,4 mln.people ; Based in 1778 Area 7 thous. hectare Population 51 thous.people Verkhnaya Salda Special Economic Zone located between two leading industrial centers of Sverdlovsk Region: Verkhnaya Salda and Nizhny Tagil: They have advanced industrial and logistic infrastructure and hospitable urban resources, Distance to Yekaterinburg is 176 km. Nizhny Tagil Based in 1722 Area 30 thous. hectare Population 370 thous.people Yekaterinburg Based in 1781 Area 115 thous. hectare Population 1 344 thous. people Invest in Sverdlovsk Region Russ

Special Economic Zone Location Basic resident VSMPO-AVISMA is our Basic Resident Client base- more than 1 000 enterprises (Airbus, Boeing, Embraer, Goodrich, etc.) Experience in creature Joint Ventures with global companies (Boeing, NF&M) Market share not far from 100% of Russian Market China 12% 1% etc. 34% USA 23% Russia 9% Europe 21% Japan США Япония Европа Россия Китай Другие

Special Economic Zone Location Spheres of Perspective Residents Main shares in GRP of Sverdlovsk Region belong to: -Metallurgy (18,3%) -Machine-building (8,4%) METALLURGY* METALL-WORKING MACHINE-BUILDING CHEMICAL INDUSTRY Sverdlovsk Region Export Структура Structure Sverdlovsk Region Import Structure экспорта в 2009 г. Структура импорта в 2009 г. 46% Metallurgy and metal-working 16% 16% 22% etc. machine-building chemicals 48% 14% chemicals Машины, оборудование и транспортные средства Metallurgy and Продукция химической промышленности, каучук metal-working Другие 10% mineral products 13% 15% Machines, equipment and means of transport etc. Металлы и изделия из них Продукция химической промышленности, каучук Минеральные продукты Машины, оборудование и транспортные средства Другие *only companies which specialized in founding, aluminum semi-finished product and some others by SEZ low

7 Special Economic Zone Directory Area 725 hectare Distance to Yekaterinburg is I176 km Infrastracture Logistics Gas Water Electricity Truck / Railway etc. Staff Availability of educated staff at site area

8 Human Resources in Special Economic Zone The Ural Federal University (UrFU) (head office is located in Yekaterinburg) Number of students 50 000 persons Number of specializations- more than 20 Annual quality of graduates -10 000 Annual Access to 1 760 new specialist Nizhny Tagil Nizhnitagilsky branch of The Ural Federal University (UrFU) Number of students 7 700 persons; Annual quantity of graduates 1 540 persons Verkhnaya Salda Verkhnesaldinsky branch of The Ural Federal University (UrFU): Number of students 1 100 persons; Annual quantity of graduates - 220 persons.

9 SVERDLOVSK REGION SPECIAL ECONOMIC ZONE MAIN STEPS OF DEVELOPMENT December 2010 January 2011 December 2010 February 2011 November 2010 July 2011 January 2011 June 2011 November 2010 April 2011 The resolution of Sverdlovsk Region Government about SEZ creation The agreement about SEZ creation between the Government of the Russian Federation and the Government of Sverdlovsk Region Making the concept of the project Residents attracting Making the special taxing at the level of the region Preparation of the SEZ ground area January 2011 April 2011 Register and development of FEZ managing company 2011 2013 Creation of the first stage of the SEZ infrastructure 2013 2015 Creation of the second stage of the SEZ infrastructure

10 SVERDLOVSK REGION SPECIAL ECONOMIC ZONE Why to invest? 1. Developed infrastructure (utilities, energy) 2. Quick access to establish networks( rails, pipelines, roads, waterways) 3. Use of existing synergy (with region, SEZ and regional clusters) 4. Focus on core business (leadership and value chain) by outsourcing support processes using an integral site operator and service provider. 5. Speedy approval procedure with authorities ( Single window ) 6. Support from the state government and local communities 7. Rich resources base of the region ( mineral and natural resources) 8. High level of industrialization ( a lot of regional suppliers) We offer more than site..

11 TAXING IN SPECIAL ECONOMIC ZONE Russian Federation SEZ Profit tax The tax rate is 20% Decrease till 15,5% Property tax The tax rate is 2,2% Decrease till 0% Land tax The tax rate is 1,5% Decrease till 0% Transport tax The tax rate depend on the car capacity Decrease till 0% SPECIAL CUSTOMS TAXING Value-Added Tax At the SEZ territory the VAT for imported foreign goods will be 0 % Customs Duties At the SEZ territory the import duty will be cancelled

12 REGISTRATION IN SPECIAL ECONOMIC ZONE I Signing of the intention agreement with the Government of Sverdlovsk Region about future activity at the territory of Special Economic Zone <1 month II Singing the application documents of the investment project at the Ministry of Economic Development of the Russian Federation (investment >$3 mln.) <1 month III Registration at the territory of Verkhnaya Salda for the status of the Special Economic Zone Resident (investment >$1 mln. during the 1 st year) <1 month Resident IV Signing the agreement with J.S.C. Development Corporation of Middle Ural (SEZ managing company ) <1 month The resident of Sverdlovsk Region Special Economic Zone

13 Welcome to Sverdlovsk Region Special Economic Zone! Deputy minister of economy of Sverdlovsk region Ph.D. Victor Alex. Dolzhenko tel.+7-343-362-16-32 dolzhenko@gov66.ru