Ulyanovsk. region of opportunities

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Ulyanovsk region of opportunities

General information about the region Ulyanovsk region is situated in the south-east of the European part of Russia, in the center of Privolzhsky Federal District ESTONIA FINLAND Kaliningrad St. Petersburg Territory of the region 37.2 ths. sq. km LATVIA Moscow Vologda Arkhangelsk Population 1.3 mln. people Berlin GERMANY BELARUS Nizhny Novgоrod Perm DISTANCE: Moscow - 875 km St. Petersburg - 1575 km Nizhny Novgorod - 440 km Kazan 210 km Samara -260 km Perm 868 km Togliatti 188 km Munich Kiev UKRAINE GEORGIA AZERBAIJAN Sochi Ulyanovsk Rostov-on-Don Saratov Volgograd Kazan Samara Ufa Chelyabinsk KAZAHSTAN Ekaterinburg Omsk Novosibirsk TRANSPORT INFRASTRUCTURE: Unique transit location at the crossing of international transport corridors North-South and West-East connecting Siberia and the Far East as well as the countries of Eastern Asia with European part of Russia and countries in Europe

Economy of the region in 2013 GRP of Ulyanovsk region within the period from 2005 to 2012 increased 3 - fold (bln. euro) Industrial production index in 2012 made 99.3 % Consumer price index in 2013 made 106.4 % в радиусе 1 000 км 193 тыс. Registered unemployment rate in 2013 made 0.53 % 1.612 2005 2, 2.040 550 2006 2.494 2007 3.022 2008 3.052 2009 > 50% > 44 mln. 3.494 2010 3.944 2011 4.808 2012 5.270 2013 Unemployment rate in 2013 according ILO made 5.1 % Clusterization of the regional industrial complex Aviation cluster Nuclearinnovative cluster Automotive cluster Cluster of the construction materials production cluster Agroindustrial Transportlogistical cluster

Aviation cluster of Ulyanovsk region в радиусе 1 000 км 4

Nuclear-Innovation cluster of Ulyanovsk region в радиусе 1 000 км

Automotive cluster in PFD and Ulyanovsk region Automotive cluster in PFD 1 st place in Russia on automobile production 1,5 mln pcs. annual automobile production 10 automobile assembly plants 1 st place in Russia on automotive components production 460 manufacturing enterprises 1 st place in Russia on the quantity of specialist educational establishments 24 higher educational institutions 51 secondary specialized institutions Ulyanovsk region is ranked 5 th region in Russia for automobile production

Ulyanovsk region automotive cluster Ulyanovsk region competencies in producing automotive components Enterprises that started formation of the automotive cluster New enterprises of the automotive cluster

Agroindustrial cluster в радиусе 1 000 км

Cluster of construction materials production в радиусе 1 000 км

Results of investment attraction Volume of investment into fixed assets (bln. rub.) 2 nd place on the state of investment climate * First National Rating on investment climate in Russian regions - 2014 в радиусе 1 000 км 2 nd place on investment attractiveness for German companies 193 тыс. 47 тыс. *Study of Russian-German Chamber of Commerce -2012 > 50% 15% 1 of 3 regions 11,4 12,9 21,7 32,5 47,8 > 44 млн. 48,7 44,8 2004 2005 2006 2007 2008 2009 2010 > 22 млн. 61,7 73,2 2011 2012 76,2 2013 named the most attractive for foreign investors *Study of KPMG and RSPP-2013 1 of 3 regions Named the most attractive for doing business *National rating «Business pulse»-2013

Conditions for implementing investment projects in the region. Administrative support. Priority task for Ulyanovsk region Team Implementation of investment projects within minimum terms and at minimum expense For supporting implementation of an investment project on the territory of the region a Project Team is created. This group assists in managing issues during pre-project preparation, construction and putting the plant into operation. 1 st place among Russian regions on the openness of regional Government * Rating of Information Society Development Institute Project implementation schedule of «Schaeffler Group»: 21.12.2012 Signing of Investment Agreement 4.06.2013 Start of construction Today

Residents of Ulyanovsk region в радиусе 1 000 км mycem 193 тыс. > 50% > 44 млн. 47 тыс. 15% > 22 млн.

Conditions for implementing investment projects in the region. Investment sites. в радиусе 1 000 км Special Economic Port Zone Area: 120 Ha 193 тыс. > 50% > 44 mln. 47 тыс. 15% > 22 mln.

Conditions for implementing investment projects in the region. Investment sites. Industrial zone «Zavolzhye» Residential area 250 thousand people 5 km International airport Vostochny SanPin 2.2.1/2.1.1 1200-3 Class IV sanitary protection zone 50 m Land plot area 1 ha Machine-tool plant. Investments: 20 mln. euro Existing road Projected road Existing gas pipe line Existing water plumbing Projected gas pipe line Plant for production of automotive components. Investments: 62,5 mln. euro Projected water plumbing Land plot size Plant for production of automobile tires. Investments: 300 mln. euro Nanotechnological center. Investments: 32,5 mln. euro Annual Warm period Cold period Road Ulyanovsk Samara Plant for production of cylinder heads and engine blocks Investments: 55 mln. euro Plant for production of plastic containers. Investments: 20 mln. euro Plant for production of automotive components. Investments: 20 mln. euro

Conditions for implementing investment projects in the region. Investment sites. Joint project with Dega AG (Switzerland) on construction of an industrial park Cheboksary Nizhny Novgorod Area 345 Ha Moscow, Saransk Ulyanovsk Project concept: Construction of the industrial park with prepared Greenfield land plots and buildings of Built-to-Suit type for placement of industrial enterprises Construction of the gas-generating station producing electricity, heat and cold. Syzran, Saratov For the residents of the industrial park all the resources will be provided at a significantly lower tariffs than approved in Ulyanovsk. Additional projects: retail park, residential real estate, hotel. Project start: summer 2014

Conditions for implementing investment projects in the region. Investment sites. More than 350 000 square meters of industrial property for sale or on lease Supply of required infrastructure. Flexible transaction terms. On-the-spot land plot matching according to the project specifications Favorable logistic position of all the platforms Offices and storage facilities are available BROWNFIELD Industrial park at the premises of OJSC «UAZ» Industrial park at the premises of OJSC «DAAZ» + more than 25 prepared land plots are available by lease or by sale for localization of industrial facilities

Conditions for implementing investment projects in the region. Tax incentives.

Conditions for implementing investment projects in the region. Investment sites. Land plot area 205 hectars First start-up complex: 120 hectars Special Economic Port Zone ENGINEERING AND TRANSPORT INFRASTRUCTURE FINANCED FROM THE BUDGET COST OF GRID CONNECTION 0 ROUBLES. LAND PLOTS AT A FRACTION OF THE COST AAR storage APRON At the first stage the land is offered for lease at the rate of 3306 roubles per year After the enterprise is set into operation the resident can buy out the land plot at the cost of 3000 roubles per hectar. Rostech Assy of regional aircraft AAR

TAX BENEFITS IN SPECIAL ECONOMIC PORT ZONE Taxes Russia, Ulyanovsk region SEZ Duration, since the moment of tax base incurrence Income tax 20% 2% 10 years Property tax 2,2% 0% 15 years Land tax 1,5% 0% 10 years Transport tax Differentiated 0% 10 years VAT 18% 0% On VAT created in SEZ during provision of services For the time of SEZ existence (not less than 45 years)

FREE CUSTOMS ZONE REGIME EXPORT/IMPORT OPERATIONS GOODS REGIME OF THE SPECIAL ECONOMIC PORT ZONE IS A SPECIAL CUSTOMS REGIME VALID ON THE WHOLE TERRITORY OF THE SPECIAL ECONOMIC PORT ZONE ABSENCE OF DECLARING FOR IMPORTED GOODS SEPZ CUSTOMS DUTIES VAT EXCISES GOODS ABSENCE OF CUSTOMS DUTIES AND VAT FOR IMPORTED EQUIPMENT OF DISTRIBUTION CENTRE AND OTHER GOODS QUICK CUSTOMS REGISTRATION PERIOD OF STORAGE OF GOODS WHICH ARE NOT IN FREE CIRCULATION ON THE TERRITORY OF RUSSIA IS NOT LIMITED VAT CAN BE APPLIED IN IMPORT/EXPORT OF CONSTRUCTION MATERIALS, EQUIPMENT, TRANSPORT VEHICLES ETC. SEPARATE CUSTOMS POST WORKING ONLY WITH THE RESIDENTS OF THE SPECIAL ECONOMIC PORT ZONE

Conditions for implementing investment projects in the region. Workforce and innovative potential. 807.2 thsd.people Labor resources в радиусе 1 000 км 385 euro Average salary 193 тыс. > 50% > 44 млн.

Contacts We invite you to establish long-term and mutually profitable cooperation! The Government of Ulyanovsk region First Deputy Chairman of the Government of Ulyanovsk region Alexander Smekalin tel. +7 (8422) 41-20-78, 41-29-43 fax. +7 (8422) 41-70-20 e-mail: mail@ulgov.ru http://ulgov.ru в радиусе 1 000 км OJSC Ulyanovsk region Development Corporation General director Sergey Vasin tel. +7 (8422) 44-45-73, 44-48-34 fax. +7 (8422) 44-45-73 e-mail: info@ulregion.com http://ulregion.com on.com OJSC Ulyanovsk Special Economic Port Zone General Director Denis Baryshnikov tel. +7 (8422) 24-94-17, fax. +7 (8422) 50-24-68 e-mail: ulyanovsk@russez.ru