Investment opportunities of Sverdlovsk region October, 2010

2 1. Regional economy performance 2. Ten reasons to invest into Sverdlovsk Region Sverdlovsk region Structure of the presentation 3. Investment infrastructure

3 Regional economy performance Sverdlovsk region

5 Rating of Sverdlovsk Region (2009): Industrial Production 6 Retail turnover 4 Wholesale turnover 4 Capital Investments 9 Foreign Investments thousand sq. km 4.4 million people Sverdlovsk region

6 GRP structure in 2008, % GRP 2008 The fifth place in Russia in 2008 GRP of Sverdlovsk region (bln.USD) Economic data

7 SVERDLOVSK REGION FIXED CAPITAL INVESTMENT Investments in 2009 Foreign investments (million USD) Investments, overall 1336,9 which includes: Direct investments88,0 of which: contribution to capital58,1 credits from foreign owners28,328,3 Portfolio investments11,211,2 Other investments1267,7

8 Trade partners of the Sverdlovsk region Foreign trade Basic categories of goods exported from Sverdlovsk region

9 10 reasons to invest into Sverdlovsk Region Sverdlovsk region

10 The foreign trade turnover of the Sverdlovsk Region constituted more than $9 bln in 2009 We have trade partners from 125 countries Foreign investments in Sverdlovsk Region constituted more than $1 bln 10 reasons to invest into Sverdlovsk Region 1. Stable Financial Position of the Region Credit rating from Standart&Poors agency : BB, stable outlook, Business-friendly climate 3 among «Best Russian cities for business» according to Forbes survey of Active foreign economic activities 125 countries – trade partners of Sverdlovsk region

11 The main city of the region – Ekaterinburg ranks third among the transport centers of Russia: 6 federal autoroads, 7 main railway roads, airport Koltsovo Developed motorways network International transport corridor «West – East» Ekaterinburg ring-road Federal motorway corridors Koltsovo international airport hub Delivers services for international and domestic long-distance air traffic Sverdlovsk railway The main transit and handling center for freight and passenger flows going in «Europe-Asia direction» 10 reasons to invest into Sverdlovsk Region 4. Developed transport-logistic infrastructure

12 10 reasons to invest into Sverdlovsk Region 5. Positive dynamics at the Labor Market 6. Stable position of industry A number of companies continue their technical re-equipment and implementation of innovative technologies to enhance their competitiveness. Industrial production index (from the beginning of 2010 corresponding to the same period of 2009)

13 More than 130 scientific and research organizations working in various fields: Microbiology Chemistry Nanotechnologies Physics More than 20 others trends reasons to invest into Sverdlovsk Region 7. Unique scientific-research potential Sverdlovsk region is one of the biggest scientific-research centers of Russian Federation 8. Reach resource base 25 ore-bearing deposits 8 copper mines In Sverdlovsk region are mined and produced (of Russian volume): 100% of vanadium and 70% bauxites, 72% of asbestos, 56,4% of talc and soapstone, 11,3% of limestone, 12% of kaolin, 11% of refractory clay

Prospects for development of recreation zones Sverdlovsk region is reach with natural resources, hot springs, several ski mounting resorts are being developed. 10 reasons to invest into Sverdlovsk Region 9. Main city of the region is in compliance with international standards of business infrastructure The developed financial infrastructure is presented by leading foreign banks, the international advisers There are a lot of business centers and modern hotels.

15 Sverdlovsk region Investment infrastructure

Sverdlovsk region Development instruments Development institutes Territorial development High technologies region Special economic zones 1.The Middle Ural development corporation 2.Venture capital fund of Sverdlovsk region 1.Technological parks 2.Industrially parks 3.The exhibition center SEZ Titanium valley (Verhnya Salda)

The Internet support of investment projects in Sverdlovsk Region 17

18 Regional government guarantees Subsidy of interest rates Changes in the legislation Bills prepare: -Reduction of income tax for newly created enterprises during 5 years (18% -> 13,5%) -Reduction of property tax from addition of mid-annual property value of the enterprise (2,2% -> 0%) Assistance in investors attraction Creation and promotion of regional brand Investment activity of Region Financial Support Administrative Support Sverdlovsk region State Support of Investment Activities

Sverdlovsk region Small And Medium Enterprise 19 Support of Small And Medium Enterprise: Financial Support Administrative Assistance Information Support Educational and Consulting Assistance The guarantee under the credit from the Regional supporting fund of small enterprises - reimbursement of costs enterprises up to $ Microfinancing and grants (municipal supporting funds of small enterprises) - Business start up grants up to $ Cheap credit at the level of the refinancing rate Investors attraction assistance for the innovative projects (Sverdlovsk venture fund) Reduction of overhead costs of the start up level (business incubator) - 5 business incubators of the total area more than 7000 м2 Training for the first time entrepreneurs «Start your business» -more than people a year are trained -more than 20 thousand people a year are consulted -more than people a year open new companies

Welcome to Sverdlovsk region! 20