Khanty-Mansiysk Autonomous Okrug – Ugra

INVESTMENT PASSPORT OF UGRA CONTENT

SECTION 1. UGRA IN FIGURES 04 Ugra in the structure of the Russian economy / 06 Business conditions / 13 Share of countries in global oil production / 08 Labor market / 14 Gross Regional Product (GRP) / 10 Investment portfolio / 15 GRP structure / 10 Investment in fixed capital / 15 Structure of investments by source of financing / 11 Investments per head of population / 15 Living standard and employment of population / 12

SECTION 2. INVESTMENT POLICY OF UGRA 16 Investment attracting system / 18 Support infrastructure / 20 Measures of State support / 19 Specialized information resources / 21

SECTION 3. SUCCESS STORIES 22 Plant for application of anti-corrosion protective Production of pumping units for hydraulic fracturing / 30 polymer coating on oil and gas field tubular goods / 24 Production of electric centrifugal pump Clinical Center for maternity and child welfare service / 26 units for mechanized oil production / 32 Complex inter-municipal solid waste disposal landfill / 28

Economic Development Department of the Khanty-Mansiysk Development Fund of the Khanty-Mansiysk Autonomous Okrug - Ugra / 34 Autonomous Okrug –Ugra / 34 Industry Department of the Khanty-Mansiysk Autonomous Okrug –Ugra / 34

3 Investment passport of Ugra

SECTION 1 UGRA IN FIGURES

4 5 Investment passport of Ugra UGRA IN THE STRUCTURE OF THE RUSSIAN ECONOMY

-st place

-nd IN OIL PRODUCTION place 236.5 million tons -rd IN INDUSTRIAL PRODUCTION VOLUME IN ELECTRIC POWER place GENERATION 4 388.5 billion rubles

88.7 billion kWh IN INVESTMENT VOLUME IN ECONOMIC AND SOCIAL IN GAS OUTPUT P IN FIXED CAPITAL SITUATION 36 billion m3 rating outlook 991.8 billion rubles ААА- “Stable” IN RECEIPT OF TAXES TO BUDGET SYSTEM OF THE RUSSIAN FEDERATION

Statistics digest “Regions of ”. Socio-economic indicators, 2017 3 421.4 billion rubles 6 7 Investment passport of Ugra SHARE OF COUNTRIES 1 13.4 % Saudi Arabia

IN GLOBAL OIL 2 12.6 % Russia 3 12.4 % USA PRODUCTION UGRA 4 5 % Canada 5 5 % Iraq 6 4.9 % Iran 7 4.6 % PR China 8 4.2 % UAE ~ 9 3.5 % Kuwait 5.4 % 10 2.8 % Venezuela SHARE OF UGRA IN GLOBAL OIL 2 PRODUCTION 4 7

3 5 9 6 1 8

10 12.6 % RUSSIA * As of 2016, according to VR oil and gas company

8 9 GROSS REGIONAL POTENTIAL GROWING PRODUCT (GRP) POINTS BILLION RUBLES WOOD INDUSTRY CLUSTER Sovetskiy, Kondinskiy districts 2 861 3 137 3 031 3 306 3 967 MINING CLUSTER Beryozovskiy district, city

SCIENCE AND INNOVATION CLUSTER city, Khanty-Mansiysk city 2014 2015 2016 2017 2018 BIOMEDICAL CLUSTER Surgut city, city, Khanty-Mansiysk city

HYDROCARBON PROCESSING GRP STRUCTURE (%) city, city, Nyagan city, city, Nizhnevartovsk city, Pyt-Yakh Extraction city, Surgut city, Urai city, Nefteyuganskiy district, 66.1 65.8 64.8 of minerals Surgutskiy district, Nizhnevartovskiy dostrict, Khanty-Mansiyskiy district Manufacturing STRUCTURE OF INVESTMENTS 2 2 2.1 activity BY SOURCE OF FINANCING (%) 2.6 2.6 2.7 Electric power WITHOUT SMALL BUSINESS ENTITIES Construction 5.3 5.5 7.2 90.5 86.0 Agriculture and 84.1 85.5 Equity capital 0.3 0.3 0.3 forestry management Activities in the information 15.9 0.5 0.5 0.5 14.5 and communication field 14.0 9.5 Money raised Transportation 6.9 7.0 7.2 and storage 3.4 2.5 Share of budget funds in total 15.8 15.6 15.2 Others 1.8 1.8 volume of investments

2016 2017 2018 2015 2016 2017 2018

10 11 Investment passport of Ugra LIVING STANDARDS AND BUSINESS CONDITIONS * EMPLOYMENT OF POPULATION 71 056 Average monthly rubles Average time to obtain Average number of procedures required salary (2018)* building permits to obtain building permits 131 98 65 days procedures 17 12 11

Average time of registration Average number of procedures for 14 471 rubles of property rights registration of property rights 15 13 10 days procedures 4 3 3 Minimum subsistence level **

Average time of connection Average number of procedures when 0.43 % to electric grids connected to electric grids The registered unemployment 85 82 51 days procedures 8 5 7 rate by 01.01.2019 according to data of Labor and Employment 2016 2017 2018 2016 2017 2018 Departure of Ugra

Data of the Federal state statistics service of the region, the Khanty- ** The Resolution of the Government of the Autonomous Okrug dated on Mansiysk Autonomous Okrug - Ugra and Yamalo-Nenets Autonomous 25.01.2019 No. 11-r “On establishment of the minimum subsistence level and * According to research Region the basic socio-demographic groups of population in the Khanty-Mansiysk ANCO “Agency for strategic initiatives to promote Autonomous Okrug - Ugra per IV-th quarter of 2018” new projects” in the framework of conducting the * The Resolution of the Government of the Autonomous Okrug dated on national status rating of the investment climate 14.11.2018 No. 599-рп “On the report of the Governor of the Khanty-Mansiysk in the subjects of the Russian Federation Autonomous Okrug - Ugra on the results of the activities of the Government of the Khanty-Mansiysk Autonomous Okrug - Ugra per 2018, including on the issues raised by State Duma of the Khanty-Mansiysk Autonomous Okrug – Ugra”.

12 13 Investment passport of Ugra LABOR MARKET INVESTMENT PORTFOLIO total number OF THEM 174 of projects

thousand 1 026. 7 people thousand people 1 068. 1 1 Healthcare service 3 Industrial parks 11 FIC Number of economically active are engaged population in economics IT technologies 1 Fuel manufacture 3 28 AIC Food manufacturing Data of the Department 4 industry House of the Federal Service 1 Industry 31 of the State Statistics of construction Tyumen region, 4 Transport 64. 5 % the Khanty-Mansiysk 96. 12 % Extraction and of Urga population Autonomous Okrug - Ugra and 33 Education as of January 1, 2019 Yamalo-Nenets 1 processing of solid 4 Consumer market Autonomous Region commercial minerals

Production of building 35 RMMD Construction 6 materials In 2018 the following is created*: 1 of gas pipelines, 3.4 thousand permanent and 23.8 thousand product pipelines 7 MSW recycling temporary work places. The share of unemployed who set up their own business - 4.11% (3rd place in Russia) of economically active population

*The Resolution of the Government of the Autonomous Okrug dated on IN FIXED CAPITAL INVESTMENTS PER HEAD OF POPULATION 14.11.2018 No. 599-рп “On the report of the Governor of the Khanty-Mansiysk billion rubles thousand rubles Autonomous Okrug - Ugra on the results of the activities of the Government of the Khanty-Mansiysk Autonomous Okrug - Ugra per 2018, including on Data of the Department of the the issues raised by State Duma of the Khanty-Mansiysk Autonomous 991.8 2018 582.1 Federal Service of the State Statistics Okrug – Ugra”. of Tyumen region, the Khanty- 942.2 2017 570.8 Mansiysk Autonomous Okrug -Ugra and Yamalo-Nenets Autonomous 799.3 2016 488.4 Region

14 15 Investment passport of Ugra

SECTION 2 INVESTMENT POLICY OF UGRA

16 17 Investment passport of Ugra INVESTMENT ATTRACTING MEASURES SYSTEM OF STATE SUPPORT

Congenial Supportive investment climate measures of investment activities

14-th PLACE Personnel potential in the National rating of investment climate

INFORMATION AND FINANCIAL PROPERTY Stability ADVISORY SUPPORT: SUPPORT SUPPORT: of investment legislation Obtaining permission Subsides: Land plots without documentation; for recovery of expenses; bidding; for reimbursement of part BASIC ELEMENTS Search and provision of of expenses; Property rental OF THE SYSTEM Well-developed land plots for location of for production development; benefits. OF ATTRACTING infrastructure production; Tax incentives; INVESTMENTS of business support Assistance in obtaining state support measures; Easy loans;

Interaction with resource State guarantees. The regulatory legal framework supply organizations. governing investment activities Reduction of is available at the Investment administrative portal of Ugra barriers

18 19 Investment passport of Ugra SUPPORT SPECIALIZED INFORMATION INFRASTRUCTURE RESOURCES

INVESTMENT PORTAL OF UGRA INVESTMENT MAP OF UGRA Government of Ugra Tel. +7 (3467) 33-20-95 INVESTUGRA.RU Information resource containing information about industrial E-mail: [email protected] Official information resource representing the investment sites of the Khanty-Mansiysk Autonomous Okrug - Ugra www.admhmao.ru potential of the Khanty-Mansiysk Autonomous Okrug - Ugra

Ugra Development Fund Support Fund Tel. +7 (3467) 388-616, 30-14-46 of Ugra business E-mail: [email protected] Tel. +7 (3467) 35-60-30 www.fondugra.ru E-mail: [email protected] www.sb-ugra.ru INVESTOR SUPPORT SYSTEM “ONE-STOP SHOP” SINGLE INTERNET PORTAL OF THE The information system is intended for communication and TECHNOLOGICAL CONNECTION information interaction of investors and participants of regulation The official portal of the Khanty-Mansiysk Autonomous Okrug - INVESTOR monitoring of investment projects in the Khanty-Mansiysk Ugra, which provides interaction between consumers and SUPPORT SYSTEM Autonomous Okrug - Ugra resource-supplying organizations in solving issues of technological “ONE-STOP SHOP” connection of consumers to gas, electric networks, heat and water supply networks, wastewater disposal network

Hi-Tech Technopark Fund “Ugra regional Tel.: +7 (3467) 36-18-89, 36-18-87 microcredit company” E-mail: [email protected] Tel. +7 (3467) 37-16-20 UGRA BUSINESS PORTAL, RF NAVIGATOR OF SUPPORT MEASURES www.tp86.ru E-mail: [email protected] Portal of small and medium businesses, providing relevant FONDUGRA.RU www.fundmicro86.ru information for SMB subjects, who want set up or expand their Interactive service, containing information on more than business 70 supportive measures for existing regional and Federal Fund “Center of Ugra programs export support” Tel. +7 (3467) 38-84-00 E-mail: [email protected] www.export-ugra.ru

20 21 Investment passport of Ugra

SECTION 3 SUCCESS STORIES

22 23 Investment passport of Ugra PLANT FOR APPLICATION OF ANTI-CORROSION PROTECTIVE POLYMER COATING ON OIL AND GAS FIELD TUBULAR GOODS

LLC “Highlon Pipeline Service” / Surgut city

2017–2018 650 2 150 years mln. rubles mln. running meters units

Project life Investment Production Work places volume volume

PROJECT GOAL:

The establishment of the factory on processing of drilling pipes with polymeric anti-corrosion coating in Surgut city.

CURRENT STATUS:

Industrial site purchased;

The investor is provided with a land plot without bidding;

Equipment purchased and assembled;

Commissioning works and production of trial lot of production are carried out; Contacts: Ugra Industry Department Ugra Development Fund Putting into operation – in 2018. +7 (3467) 35-34-04 +7 (3467) 388-616

24 25 Investment passport of Ugra CLINICAL CENTER FOR MATERNITY AND CHILD WELFARE SERVICE

LLC “VIS Infrastructure” / Surgut city

Total area of Center Floor space Public Private index 2014–2024 10.9 Partnership 50 64 442 m2 years billion rubles Agreement years 84 % Project life Investment Implementation Center design Total area of the volume mechanism lifetime diagnostic office 57 705 m2

PURPOSE AND OBJECTIVES OF THE PROJECT: CURRENT STATUS: THE CENTER IS EQUIPPED WITH AS FOLLOWS: Number of visits Number of beds Creation of the largest advanced scientific and technical base Construction is provided by the state program “Modern The most state-of-the-art medical equipment that will per shift in Russia for introduction of the innovative medical areas in the health care”; ensure introduction and availability of the advanced high- 315 field of reproductive health of population. tech methods of diagnosis, treatment and rehabilitation; In December 2014 the PPP Agreement was signed 165 Organization of high-tech specialized obstetric and neonatal between the Health Department of the Khanty-Mansiysk Energy-efficient automatic lighting, communications, video Facilities for patients’ Clinical and scientific departments care; Autonomous Okrug - Ugra (Public partner) and LLC “VIS surveillance systems and technological equipment; admission and treatment Infrastructure” (Private partner); Reduction of infant mortality (to the level of 3.5 per 1,000 live Reliable security, fire and chamber alarm systems, which Consultation- Planned construction and finishing works are in 24 births). Reduction of mortality of children under 5 years of together with the used planning solutions will provide the diagnostic and progress; age (to the level of 4.0 per 1,000 children), the level of child high level of security and convenience for people with limited Laboratories simulation-training disability; Arrangement of internal engineering networks, mobility. centers Improving life quality of newborns who have undergone including installation of ventilation, electricity and water 4 severe perinatal pathology; supply systems; Reducing expenses for the follow-up treatment and rehabilitation; Putting into operation in 2019. Increase in life expectancy and natural population growth;

Development of innovative medical areas. Contacts: LLC “VIS Infrastructure” Ugra Health Department Ugra Development Fund +7 (495) 789-85-55, 789-85-56 +7 (3467) 96-01-60, 33-16-71 +7 (3467) 388-616

26 27 Investment passport of Ugra COMPLEX INTER-MUNICIPAL SOLID WASTE DISPOSAL LANDFILL

LLC “Resource conservation KHMAR” / Nefteyuganskiy district, Nefteyugansk city, Pyt-Yakh city

2017–2038 1.1 Concession 10 years billion rubles agreement years

Project life Investment Implementation Center design volume mechanism lifetime

PURPOSE AND OBJECTIVES OF THE PROJECT: CURRENT STATUS: Total area of landfill Budgetary effect Waste sorting plant Improvement of the environmental situation in the The creation of the landfill is provided by the 37.7 950 capacity settlements of Nefteyuganskiy district, Nefteyugansk city and state program “Environmental safety”; ha mln. rubles Pyt-Yakh city due to introduction of the modern processing 100 thousand tons and waste disposal methods. December of 2014 the concession agreement was signed between the Industry Department of Landfill capacity Capital grant per year Meeting demands of population for quality services the Khanty-Mansiysk Autonomous Okrug - Ugra in the field of SMW handling; and LLC “Resource conservation KHMAR”; 90 224 thousand tons per year mln. rubles Introduction of the modern methods of waste The positive conclusion of the environmental treatment and disposal; expertise of the project documentation is received; Improving the environmental situation in the settlements at the cost of preventing damps; The design and estimate documentation is being Reducing the negative impact on the environment. developed. Contacts: LLC Ugra Industry Department Ugra Development Fund “Resource conservation KHMAR” +7 (3467) 35-34-04 +7 (3467) 388-616

28 29 Investment passport of Ugra PRODUCTION OF PUMPING UNITS FOR HYDRAULIC FRACTURING

LLC “Epic 380” / Nizhnevartovskiy district, urban-type settlement of Izluchinsk

208.5 29 mln. rubles units

Investment Work places volume

PRODUCTION DESCRIPTION:

Fabrication, welding, assembly and painting of mechanical part of hydraulic fracturing equipment;

Assembly of hydraulic fracturing plants on the towed vehicles;

Installation of the electrical and electronic wiring of hydraulic fracturing equipment, installation and configuration of software.

CURRENT STATUS:

Industrial site is purchased;

Production infrastructure is created; Contacts: Ugra Industry Department Ugra Development Fund Putting into operation in 2018. +7 (3467) 35-34-04 +7 (3467) 388-616

30 31 Investment passport of Ugra PRODUCTION OF ELECTRIC CENTRIFUGAL PUMP UNITS FOR MECHANIZED OIL PRODUCTION

Baker Hughes (LLC “Oilpump Service”) / Nizhnevartovsk city

7 636 m2 1 000 95 Area of production pumps units premises Plant Work places capacities

PRODUCTION DESCRIPTION:

Complete systems of the electric centrifugal pump units of the various unit sizes and their components: pumps, gas separators, dispersers, hydraulic protections, submersible electric motors.

CURRENT STATUS:

Industrial site is purchased;

Production infrastructure is created;

Putting into operation is 2018. Contacts: Ugra Industry Department Ugra Development Fund +7 (3467) 35-34-04 +7 (3467) 388-616

32 33 INDUSTRY DEPARTMENT OF THE KHANTY-MANSIYSK AUTONOMOUS OKRUG - UGRA The profile Department in the system of the executive authorities of the Khanty-Mansiysk Autonomous Okrug - Ugra, carrying out the functions on implementation of the unified state policy and statutory legal regulation, management of state property, provision of public services in the field of industrial development, including agro- industrial complex, tourism and food industry.

AREAS OF BUSINESS: 2, Studencheskaya str., +7 (3467) 35-34-04 ●● Stimulation of manufacturing industries Khanty-Mansiysk city, [email protected] ●● Agro-industrial complex development; the Khanty-Mansiysk depprom.admhmao.ru ●● Tourism development; Autonomous Okrug – Ugra, ●● Development of solid municipal waste recycling. 628011

ECONOMIC DEVELOPMENT DEPARTMENT OF THE KHANTY-MANSIYSK AUTONOMOUS OKRUG – UGRA The profile Department in the system of the executive authorities of the Khanty-Mansiysk Autonomous Okrug - Ugra, carrying out the functions on implementation of the unified state policy, statutory legal regulation in the field of small and medium business development, investment and innovation activities.

AREAS OF BUSINESS: ●● Implementation of the national business initiative; 5, Mira str, Khanty-Mansiysk city, ●● Arrangement of monitoring of investment projects according to “one-stop shop” principle; the Khanty-Mansiysk Autonomous ●● Promotion and popularization of the business activity, assistance of competition development on the Okrug – Ugra, 628011 basis of the standard of competition development in the subjects of the Russian Federation; ●● Provision of infrastructure activities of supporting the subjects of small and medium business; +7 (3467) 39-20-28 ●● Rendering of public services regarding arrangement and implementation of applied scientific [email protected] research and developments in the field of innovations. depeconom.admhmao.ru

DEVELOPMENT FUND OF THE KHANTY-MANSIYSK AUTONOMOUS OKRUG – UGRA Specialized organization to attract investments and work with investors. The State Fund of industry development of Ugra. PUBLIC-PRIVATE PARTNERSHIP: INVESTMENTS: ●● assistance in formation of the regulatory legal ●● implementation of the “one-stop shop” principle framework in the field of public-private partnership; for investors in cooperation with public and local ●● developing, structuring, organization of financing, government authorities, development institutions and monitoring of implementation of infrastructure projects participants in the investment process; using public-private partnership mechanisms. ●● investment promotion of the Autonomous Okrug. AGRICULTURAL COOPERATION: INDUSTRY: 45, Engels str., block “B”, ●● providing supportive measures to the subjects of ●● organizational and methodological monitoring for Khanty-Mansiysk city, activity in the sphere of industry; creation of infrastructure to support agricultural the Khanty-Mansiysk Autonomous ●● creation of the modern industrial infrastructure at cooperatives and small businesses; Okrug – Ugra, 628012 the territory of the Autonomous Okrug (industrial ●● performing of educational activities and consulting in (production) parks, industrial and technology parks). receipt of support measures; +7 (3467) 38-86-16, 30-14-46 [email protected] ● promotion of products of the agricultural cooperatives ● fondugra.ru, investugra.ru, of the Autonomous Okrug. map.investugra.ru

34 Khanty-Mansiysk Autonomous Okrug – Ugra

INVESTUGRA.RU Investment portal of the Khanty-Mansiysk Autonomous Okrug - Ugra INVESTMENT 2019 PASSPORT OF UGRA