Investment opportunities of Sverdlovsk region November, 2011

2 Sverdlovsk region HUMAN RESOURCES ECONOMY LEADERSHIP POSITION DEVELOPED INDUSTRY INVESTMENT INFRASTRUCTURE

3 Human resources Economically active population 2343 thousand people Doctors of Science 1000 PhD 5000 State Universities 19 Scientific and research organizations thousand sq. km 4.4 million people

4 Human Resources Ural Federal University Far East Federal University Nord East Federal University SiberianFederal University Ural Federal University KazanFederal University Arctic Federal University Ural Federal University students to % of foreign students Main specialization -Biological and chemical technology -Natural sciences - IT -Mathematics -Metallurgy -Machine building - New materials and materials science -Social political and human investigations and technologies -Economy and management -Construction -Energetics Southern Federal University

5 Economy leadership position The fifth place in Russia by GRP High investment ratings bln. euro Regional budget in ,085 bln. euro Capital investment in ,020 bln. euro Foreign investment ,025 bln. euro Finance Rating of Sverdlovsk Region : Industrial Production 5 Retail turnover 4 Wholesale turnover 4 Credit rating from Standart&Poors agency : BB, positive outlook, 2010 Sverdlovsk region ranks the 2 place among «Best Russian regions for business» according to Forbes survey of 2011 Ekaterinburg ranks the 3 place among «Best Russian cities for business» according to Forbes survey of 2010

Industrial character of economy Export structure in 2009Import structure in 2009 Structure of volume of the shipped goods and services in 2009 (in % to total amount) 44,8 Metallurgy 18,5 Machine-building 17,1 Other activities 80,4 Manufacturing activities 14,8 Production and distribution of energy, gas and water 4,8 Mining

Examples of Investment projects in Sverdlovsk region Siemens – Ural locomotive (Sinara Group) Creation of high-technology locomotive production Joint venture «Ural Boeng Manufacturing» (UBM) - rough machining of titanium forgings for the Boeing 787 Dreamliner Investment projects of LLC Maxime URAL and the French company Saint-Gobain of production dry mix for building «Pervouralsky novotrubny factory» Starting a new electric steel making facility (ESPK) «Iron Ozone» JSC «Ural Methanol Group» Creation of a complex of deep processing of natural gas - methanol producing plant Complex development project - district «Academichesky» in Ekaterinburg

8 High Priority Infrastructure Projects 1.Special Economic Zone Titanium Valley, Verkhnyaya Salda, Sverdlovsk region 2.High-Speed Railway «Ekaterinburg – Kazan – Nizhny Novgorod – Moscow» VSM 2 3. Chemical Park Tagil, 4.International exhibition Centre «Ekaterinburg-Expo» 5. Reconstruction of railway station in Ekaterinburg 6.Pharmaceutical Production Cluster

99 Special Economic Zone Titanium Valley Verkhnyaya Salda, Sverdlovsk Region Unique position for your business Wide opportunities for industrial cooperation Tax and customs incentives for residents Administrative support from the Government of Sverdlovsk region Reach resource base and high scientific and technical potential

Special Economic Zone Titanium Valley SPECIAL ECONOMIC ZONE DIRECTORYAREA hectare Ist STAGE hectare DEVELOPMENT in years PROVIDING WITH ENGINEERING SERVICES BY REGIONAL AUTHORITIES Gas supply Energy supply Water supply Heat supply Drainage system TAX AND CUSTOMS INCENTIVES IN SPECIAL ECONOMIC ZONE RUSSIAN FEDERATION SEZ SPECIAL CUSTOMS TAXING

Project goals: - New type of passenger rail transport development - High-speed rail - Business activity increase in result of multiple effects of project fulfillment - Positive Environmental impact in result of efficient resource-using techniques Development in Price – 20,5 mln. euro/km Suggestions to investors: - share in authorized capital; - participation in life cycle contract; - borrowing funding High-Speed Railway «Ekaterinburg – Kazan – Nizhny Novgorod – Moscow» ( km) VSM 2

12 Chemical Park Tagil Nizhniy Tagil, Sverdlovsk Region 100 hectares of the developed chemical industry area with buildings Network of engineering and technical support Developed transport infrastructure Service infrastructure Support of local and region administrations of Sverdlovsk region

International exhibition Centre «Ekaterinburg-Expo»

14 Project initiatorGovernment of Sverdlovsk region Construction Site Area Square80 hectare Total Exposition Area Square sq. m. I Stage Buildings Square sq. m. Planned start of I stage construction September 2010 I Stage construction endingJuly 2012 Total Investments175 mln EUR Payback period15 years I stage m 2 II stage m 2 Initial project of the exhibition centre – Ural international exhibition and forum of industry and innovations INNOPROM-2012 International Exhibition Centre «Ekaterinburg-Expo»

15 Reconstruction of railway station in Ekaterinburg Implementation of the electronic control system: management of the station ensuring the safety of passengers and baggage control of energy efficiency control of environmental stress and automation of all life support systems Development of the adjacent territory Reconstruction of the buildings Underground Parking Project of reconstruction of Ekaterinburg railway station Sverdlovsk railway 7 main railway roads The main transit and handling center for freight and passenger flows going in «Europe-Asia direction»

16 Pharmaceutical Production Cluster Main Lines of Activity Genetically engineered insulin in dosage form production Infusion solution for Hemo dialysis research and production Radio-pharmaceutical drugs research and production Anti-cancer nanotechnology drugs research and production Anti-virus drugs research and production Administrative support Federal level Approval of Russian governmental regulations about cluster forming and development Support from state corporations Rosnano, Vnesheconombank etc. Regional level Joint financing of R&D Status of the cluster as a Priority project of the Sverdlovsk region

Prepared Infrastructure for the investment Investment climat Friendly administrative environment for investment Financial mechanism, tax incentives Special education for human resources Support the Governor and concurrency of the government Sverdlovsk region Government support of investment activity Regional government guarantees more than 8 bln. Rbl. (annually) Subsidy of interest rates Changes in the legislation Bills signed recently: - 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%) Administrative support for priority investment projects of the Sverdlovsk region (Decree of the Governor of Sverdlovsk Region -> - > Commission on Modernization ->The status of a priority project - > 90 days) Development of the system «Single Window» (through the Ministry of investment and development of Sverdlovsk region) Direct, transparent and clear discussion with the Governor, regional authorities and partners (through Finance support Administrative support

18 Welcome to Sverdlovsk region! First Deputy Chairman of the Government +7 (912) – mobile for investors - Minister of investment and development of Sverdlovsk region Mikhail Maksimov Sverdlovsk region in Web