Guide to Investment The Republic of Tatarstan

1st 1st in the national regional in innovation among investment climate ranking Russian regions PwC Russia (www.pwc.ru) provides industry-focused assurance, Content tax, legal and business consulting services. Over 2,700 professionals working in PwC offices in Moscow, St Petersburg, Kazan, Ekaterinburg, Letter of welcome, Rustam Minnikhanov President of the Republic of Tatarstan 2 Novosibirsk, Rostov-on-Don, Krasnodar, Voronezh, Vladikavkaz and Ufa share their thinking, experience and solutions to develop fresh Letter of welcome, Taliya Minullina Head of the Tatarstan Investment Development Agency 4 perspectives and practical advice for our clients. The global network of PwC firms brings together more than 236,000 people in 158 countries. Letter of welcome, Denis Derevyankin Managing Partner of PwC office in Kazan 5 PwC refers to AO PricewaterhouseCoopers Audit, or, as the context requires, other member firms of PricewaterhouseCoopers International Six reasons to invest in Tatarstan 6 Limited, each of which is a separate legal entity. Tatarstan as an entry point to the Russian market 8 Tatarstan as part of Russia 10 Development potential 12 Strategy-2030 14 Investment potential 16 Federal sites for investment projects 18 Advantageous geography 24 Tatarstan as a reliable business partner 26 State support for investors 32 Frequently asked questions by investors 34 Human capital 40 Tatarstan as global event centre 44 Made in Tatarstan 48 Visit Tatarstan 50 Things to do in Tatarstan 52 PwC in Russia 56 Contacts 58 This Guide to Investment has been prepared jointly with the Tatarstan Investment Development Agency. This publication contains information as of May 2018. The Republic of Tatarstan 1 Welcome letter Rustam Minnikhanov President of the Republic of Tatarstan

Dear partners, and manufacturing, and Innopolis To promote Tatarstan internationally for technological innovation—are and attract investment, a special The Republic of Tatarstan is a rapidly already in rapid development. Other intergovernmental body was established. growing region of the Russian projects include KIP Master, Khimgrad The Tatarstan Investment Development Federation. Technopolis, IT Park High-Technology Agency (TIDA) serves as a one-stop-shop Park, and Idea Technopark, as well as to meet investors’ needs. Our forward-looking economic policies various R&D centres and accredited have helped Tatarstan to create municipal industrial sites. Our economic policies are targeted favourable conditions for investors and at ensuring a favourable investment businesses. Another of Tatarstan’s competitive and business climate. Our priorities advantages is its geographic location are also spelled out in our Strategy for A number of well-known international at the intersection of major transport the Social and Economic Development brands have already selected Tatarstan arteries connecting Europe and Asia. of the Republic of Tatarstan to 2030 as a hub for their operations, including The Moscow–Kazan high-speed railway (Strategy-2030). 3M, Air Liquide, Daimler, Ford Sollers, will be laid here and become part of the Fujitsu, Haier, Hayat Group, Kastamonu, New Silk Road. The Republic of Tatarstan is always Marriott, Rockwool, Sisecam and pleased to welcome new business Wienerberger. Our republic’s social, Our republic frequently hosts high- partners and will continue to foster economic and political stability, legal profile global and Russian events, the conditions that support investors guarantees, and systems for supporting including economic forums, summits, and business. investment have helped us to establish intergovernmental commissions and a business-friendly environment. sporting events. In 2013, Tatarstan welcomed participants and guests of The Republic of Tatarstan has well- the Summer Universiade. In 2015, the developed infrastructure to provide republic hosted the World Aquatics investors with a variety of support. Championship, and FIFA World Cup Rustam Minnikhanov For instance, our two special economic matches in 2018. President of the Republic of Tatarstan zones—SEZ Alabuga for industry

2 PwC Guide to Investment The Republic of Tatarstan 3 Welcome letter Welcome letter Taliya Minullina Denis Derevyankin Head of the Tatarstan Investment Development Agency Managing Partner, PwC office in Kazan

TIDA was founded to provide investors PwC has operated in the Republic with support and assistance and to help of Tatarstan for more than 20 years, them feel both secure and confident as and our Kazan office celebrated its our long-term partners. The agency’s tenth anniversary in 2017. Over these work has been remarkably successful. years of fruitful work and engagement with business and the regional Tatarstan has well-developed investment government, we have seen the economy infrastructure and offers numerous expand and the region undergo a benefits, including land with free utility vast transformation. Simultaneously, connections to gas, heat, electricity and Tatarstan’s position in Russia and the other resources. Residents of our special world has changed. For many years economic zones enjoy zero taxes on land, now, the Republic of Tatarstan has property and transport for up to ten years held leading positions in prestigious after their first profits are generated. rankings, thanks to its investments Tatarstan is the only region in Russia in new production capacities, Dear colleagues, with six investment sites that enjoy Dear friends, the presence of numerous international federal tax breaks. Among the most unique and innovative We are pleased to present this Guide companies and the in-migration of Russian regions, Tatarstan is also the Tatarstan’s favourable geographic to Investment in the Republic of human capital from around the world. best place to invest in Russia. Indeed, for location provides easy access to Tatarstan together with the Tatarstan As a major economic centre, the region three years in a row (2015, 2016, 2017), an extensive consumer base throughout Investment Development Agency, a team has become an important hub for Tatarstan has had the highest-rated Russia, the Eurasian Economic Union of professionals dedicated to assisting international business, cultural investment climate among all Russian and the CIS. Ten of Russia’s 15 largest investors in establishing companies and and sporting events, thanks to its regions. cities are within 1,000 km of Kazan. ventures. well-developed infrastructure, local Today, Tatarstan is a globally Our main focus is on building partnerships To maintain a strong investment climate, hospitality and high-quality services. competitive region. The republic’s that are both reliable and sustainable. Tatarstan must be able to respond to We hope that this guide will become advantages include advanced We want to make it easy for companies to various challenges, including a rapidly a helpful tool for you. manufacturing facilities, extensive work in Tatarstan—and to be successful. changing economic environment. human capital resources, open and The region’s extensive resource base, high Welcome! Рәхим итегез! trust-based relationships, well- We welcome you to visit Tatarstan so levels of human capital and favourable developed infrastructure, a wide that you can see with your own eyes all geography are no guarantee of success. offering of tax breaks and a business- that we have to offer. Tatarstan’s experience demonstrates friendly climate. that collaboration between government The region has created a special and business is critical in achieving government body, the Tatarstan lasting results. Indeed, Tatarstan ranks Denis Derevyankin Investment Development Agency Taliya Minullina first among all Russian regions for its Managing Partner of PwC office (TIDA), to serve as a one-stop-shop Head of the Tatarstan Investment investment climate. in Kazan to meet investors’ needs. Development Agency

4 PwC Guide to Investment The Republic of Tatarstan 5 Six reasons to invest in Tatarstan 1 2 3 4 5 6 Entry point to the Development Well-developed Advantageous State support Human capital Russian market potential investment geography for investors infrastructure

Rankings Tatarstan is a dynamically developing region that has several 1st in business hospitality among Russian regions competitive advantages and holds leading positions in many ratings. (Leaders Club for Promoting Business Initiatives, a non-profit partnership) in the national regional investment climate ranking 1st in the efficient adoption of youth policies among Russian regions for 2015-2017 1st (Federal Agency for Youth Affairs) (Agency for Strategic Initiatives) 1st in innovation among Russian regions Best Russian region for tourism (Association of Innovative Regions of Russia) (National Geographic)

6 PwC Guide to Investment The Republic of Tatarstan 7 Tatarstan as an entry point 1 to the Russian market Kazan

International investors Global events Tatarstan has extensive experience Tatarstan hosts a variety of in working with international international events every year. investors. It is no accident that leading In 2013, it hosted the Summer international companies, including Universiade. Kazan is one of the 3M, Air Liquide, Bosch, Daimler, Ford, host cities for the 2018 FIFA Fujitsu, Hayat, Mercedes Benz and World Cup, and the region Rockwool, have established a foothold will welcome the WorldSkills in Tatarstan. Championship in 2019.

International best practices in investor Logistical relations advantages Tatarstan has adopted a number of Tatarstan has two international international best practices in investor airports and four major river ports. relations, including a one-stop-shop Important highways, railways and service for meeting their needs. The the New Silk Road pass through effective team of professionals and this the region. approach help to ensure that investment projects are implemented with both speed and quality.

International schools and higher education International trade institutions There are two international schools Tatarstan is an active player in the and over 50 institutions of higher international market. The republic has education in Tatarstan. WTO partners in over 170 countries. Tatarstan’s higher education institutions serve more than 152,000 students, including 8,500 international students from 97 countries.

8 PwC Guide to Investment The Republic of Tatarstan 9 Tatarstan as part of Russia

68,000 sq km 3.9m 74 years Total area Total population Average lifespan GMT +03:00 Kazan Time zone Capital

Tatarstan GRP, 2.12 RUB trillions 1.94 1.83 101.8% 1.66 Industrial Production 1.55 Index in 2017 1.44 1.31

1.00 RUB 2.12 trillion 2010 2011 2012 2013 2014 2015 2016 2017 Gross regional product (GRP) in 2017

2.4m Working-age population

RUB 32,000 Average monthly salary

50% of all Russian 3.5% citizens live within Unemployment rate 1,000 km of Kazan.

10 PwC Guide to Investment The Republic of Tatarstan 11 2 Development potential Tatarstan produces: 50% of the products made in Tatarstan are exported 47% 26% 33% of Russia’s polyethylene of Russia’s tyres of Russia’s trucks 170 countries have trade and economic relations with Tatarstan Oil production and refining Tatarstan exports:

35.7m RUB 386.5bn 98.2% 75% 15% 88% tonnes Refinery output Refinery yield of its petrochemicals of its plastics of its rubber Oil production in 2017 in 2017 (TANECO)

12 PwC Guide to Investment The Republic of Tatarstan 13 Strategy-2030 The priority goals of Strategy-2030 are to create an efficient and knowledge-based Digital economy economy, and to develop innovative The key message of our Strategy Key targets for Tatarstan’s businesses and the high-tech sector. for the Social and Economic development Development of the Republic of Major areas for development include: Tatarstan to 2030 is improving the Key objective • human capital; quality of life in the region. Per capita GRP by PPP, • real capital; Comfortable USD thousands life • markets; Health • institutions; 21.8 29.3 35.8 • innovation and information; 2017 2024 2030 • natural resources.

Human capital The key instrument for transitioning to an innovative economy is cluster Average annual population, Expected lifespan, activation. The economy will be divided millions years into three types of clusters.

Science and 3.9 4.0 4.1 74.0 74.6 75.3 education 2017 2024 2030 2017 2024 2030 Eurasian hub Light industry (transportation (based on smart Innovation and information and logistics) textiles) Construction Share of innovative production in overall Share of R&D expenditures Smart and new Shipbuilding industrial output, % in the GRP, % construction education materials Financial Smart Smart materials Aircraft and professional infrastructure (new plastics and manufacturing services composites) Oil-gas Smart machines and (transportation and Smart IT energy clusters Smart equipment) equipment 22.0 30.1 35.0 0.9 2.3 3.0 24/7 sales (robots, fuel Automotive Sustainable and power, food, 2013 2024 2030 2013 2024 2030 and consumer manufacturing services energy machine tool Agribusiness building, and its clusters 3D printing) Financial capital Institutions Wood processing (dairy, meat, sugar, Biosystems Cumulative direct foreign investment, Share of small- and medium-sized oil and fat, grain, and furniture vegetables and production USD billions enterprises (SMEs) in added value, % Agribusiness Smart medicine berries) and clean nutrition (a new way of food processing) Healthcare Main clusters Fusion of civilisations Innovative clusters (culture, tourism 1.8 16.4 44.0 25.6 30.5 33.0 to be created by 2030 and recreation) 2015 2024 2030 2013 2024 2030 Existing clusters

14 PwC Guide to Investment The Republic of Tatarstan 15 3 Investment potential

Tatarstan is the only region in Russia with six investment sites that enjoy federal tax breaks. Tatarstan has two special economic zones (SEZ) and four territories for advanced social and economic development (TASED). All six areas enjoy tax benefits and access to special infrastructure.

Investment map

Zelenodolsk

Kazan Alabuga

Innopolis Naberezhny Chelny

Nizhnekamsk

Chistopol

Investment site benefits

Tax breaks Human capital

TASED SEZ

Allocated land plots Convenient logistics

Infrastructure Effective facility 63 investment sites in place management are located in Republic of Tatarstan

16 PwC Guide to Investment The Republic of Tatarstan 17 Federal sites for investment projects: Special economic zones (SEZ)

Alabuga SEZ 1st in the category “Best Special Economic The Alabuga Special Economic Zone in Europe for Large-Scale Projects” Zone is a centre for attracting investors who are carrying out RUB 120m: minimum investment promising high-tech projects threshold for obtaining resident status in such fundamental economic clusters as the petrochemical, RUB 112bn of capital investment automotive and construction industries. Customs station for residents and customs clearance in 3 hours https://alabuga.ru/ Over 5,000 jobs

RUB 25.7bn of state investment

Tax and customs breaks and relief

Over 50 resident companies Innopolis SEZ Innopolis is spread out over more than Innopolis is a large-scale project to 300 hectares and includes sites in Largest industrial-production zone of this create a Russian hub for information the Verkhneuslonsky (193 hectares) and type in Russia and communication technology. Laishevsky municipal districts (119 hectares). The main purpose is to assist Russian and international Advantages of Innopolis: companies in implementing high- tech investment projects. • special tax regime; Companies specialising in various • access to modern business infrastructure; areas of innovation can become • preferential terms for land leases and Innopolis residents, with priority utility connections; given to those specialising in information and communication • access to highly qualified human technology. resources; http://www.innopolis.com/ • unique environment for employees of resident companies and their families with world-class social, educational and sports infrastructure, and broad opportunities for professional growth and development.

18 PwC Guide to Investment The Republic of Tatarstan 19 Federal sites for investment projects: Territories for advanced social and economic development (TASED)

Four TASEDs have been established in Tatarstan in the cities of: • Naberezhny Chelny (http://adt-chelny.ru/), • Chistopol (http://chistopolinvest.ru/toser/), • Nizhnekamsk (http://www.e-nizhnekamsk.ru/), • Zelenodolsk (http://zeldol.com/adz/).

TASEDs will diversify urban economies, weaken their dependence on single enterprises and increase their investment attractiveness, all while creating more than 17,000 permanent jobs and attracting more than RUB 32bn in investment.

Sectors that enjoy the benefits of TASEDs include:

Food Leather and leather Rubber and plastics Machinery goods and equipment

Beverages Woodworking Metallurgy Furniture

Apparel Pharmaceuticals Electrical equipment Publishing

20 PwC Guide to Investment The Republic of Tatarstan 21 Federal sites for investment projects: Tax breaks

Tax rate for residents Tax rate for residents Ta x Standard rate Priority projects Alabuga SEZ Innopolis SEZ TASEDs 20%: 2% for the first five years, Federal portion: 2% 5% for the first five years, 15.5% 2% for federal taxes 7% for the next five years, Regional portion: 12% for the next five years and Income tax then 15.5% until 2055 0% for the first five years, 18% for regional taxes 5% for the next five years, 13.5% after ten years

2.2% 0% for ten years 0% for ten years 0% for a newly established 0.1% Property tax entity or one acquired no earlier than 1 January 2014

Land tax 1.5% 0% for ten years 0% for five years 0% 1.5%

From RUB 25 0% for ten years 0% for ten years From RUB 25 From RUB 25 Transport tax (vehicles over 100 (vehicles over 100 (vehicles over 100 horsepower) horsepower) horsepower) Dependent on the type 0% Reduced customs duties 0% for technological Dependent of imported good equipment neither produced on the type of Customs duties imported good VAT (18%) excluded in Russia nor with an available equivalent in Russia

30% 30% 21% in 2018 7.6% 30% Social insurance contributions 28% in 2019

22 PwC Guide to Investment The Republic of Tatarstan 23 4 Advantageous geography 10 of Russia’s15 largest cities are located within 1,000 km of the Republic of Tatarstan

Tatarstan is located in the heart of the European part of Russia To Kazan at the intersection of major trade routes (land, air and water) connecting Europe and Asia. From Moscow 12 hours 1 hour 30 minutes 12-16 hours From St. Petersburg 21 hours 2 hours 30 minutes 23 hours

Finland Finland Norway Norway Russia Russia Sweden Sweden

39,000 1,880 BelarusBelarus kilometres of highways kilometres of railroads United United KingdomGermany KingdomGermany Poland Poland

DuisburgLux. DuisburgLux. France France DzungarianDzungarian Austria Austria Hunga ry Hungary Ala TauAla Tau Mongolia Mongolia Croatia RCormoaantiaia Romania KazakhstanKazakhstan Bos. Bos. Italy S Itearlyb ia S erbia

UrumqiUrumqi

LisbonSpain LisbonSpain TurkmenisTtuarnk menistan Turkey Turkey Tajikistan Tajikistan ChinaChina

Syria Syria LanzhouLanzhou Tunisia Tunisia Ir aq Iraq AfghanistaAnf ghanistan Xian Xian Iran Iran Jordan Jordan ShanghaiShanghai 8 Pakistan Pakistan 3 Algeria Algeria Cairo Cairo Nepal Nepal ChongqingChongqing Libya Libya Bahrain Bahrain federal highways spanning A-class logistics Egypt Egypt Qatar Qatar Macao MacaoTaipei Taipei 1,070 km Saudi UnSitaeudd iAr aUbn ited Arab facilities India India (Burma) (Burma) Arabia EArmaibiraate s Emirates Hong KongHong Kong Laos Laos MauritaniaM auritania Mali MaNliig er Niger Eritrea Eritrea Chad Chad Yemen Yemen Thailand Thailand Burkina Burkina Sudan Sudan Gu inea GFuianseoa Faso Côte Côte Nigeria Nigeria Central Central Ethiopia Ethiopia d’ Ivoire d’BIevnioinre Benin ColomboColombo African African CameroonC aRmeepubroolinc Republic New Silk Road

Uganda Uganda 16 days Rep. DemReopcr. atiDc emocraKtiecn ya Kenya SingaporeSingapore of the of the Transcontinental railway Re routepublic R fromwepubandlia c Rwanda 2 Congo Coof ngtheo Buorfund thei Burundi Chongqing through the Xinjiang Uygur Congo Congo International airports: Autonomous Region to Europe 40 destinations including • 36 days Angola Angola Malawi Malawi 4 Dubai, Frankfurt and Sea route Zambia Zambia river ports Istanbul ZimbabweZ imbabwe • 15 daily flights to Moscow Namibia Namibia BotswanaB otswana

24 PwC Guide to Investment The Republic of Tatarstan 25 South SoutShw aziland Swaziland Africa Africa Lesotho Lesotho Tatarstan as a reliable business partner

Tatarstan is a great place to live”. The Alabuga SEZ has Axel Bense, Project Manager Daimler Chrysler AG world-class infrastructure and it is real”. Ted Cannis, Director General Ford Sollers

Investors need professional teams Tatarstan has the best concept for to help them achieve their goals. working with investors. If we had to I’m proud to do business with select a new site for localising Kiekert the Zaints”. AG in Russia, we would choose the Republic of Tatarstan”. Alfred Fischbacher, President and Co-owner Mefro Wheels GmbH Jürgen Rudolph Poilen, Executive Vice President Кiekert AG

26 PwC Guide to Investment The Republic of Tatarstan 27

We decided to move to this wonderful city to see through our first refrigerator production project. We feel that the city’s administration actively supports and assists us”. Sung Zhenhua, CEO Haier Rus LLC

I could not believe that such business conditions exist in Russia. The main thing is that all promises Our factory is like a child to us, and its have been kept”. birth was quick and easy. We can now Viktor Semenov, Head of the Supervisory Board easily ship our products throughout Belaya Dacha Group Central and Eastern Russia”. Kim Aganimov, Vice President for CEE Huhtamaki One can envy the conditions Our goal is to organise world-class production here. We are dedicated to that have been our partnership with Tatarstan and created here”. the production of quality products”. Nihat Zeybekci, Minister of Bart Van Malderen, President Economic Affairs of Turkey Drylock Technologies

28 PwC Guide to Investment The Republic of Tatarstan 29

We have more than five years of experience running investment projects in the Republic of Tatarstan. We can state with certainty that our experience has been a success”. Onur Gyuven, Vice President KASTAMONU

Rockwool has built the world’s largest rock wool manufacturing facility. We admire how the Government of the It is of crucial importance for foreign investors to Republic of Tatarstan understand the conditions under which they'll be keeps its promises”. working in the region. It is likewise important for government to be transparent and enforce compliance Eelco van Heel, President Rockwool Group with normative regulations fairly. It is also key that the authorities never spring any surprises on enterprises. In this regard, Kazan and Tatarstan are among the best Russian regions for doing business. Here, work is always carried out without surprises, as both parties act in strict observance of the agreement. Air Liquide received a free From this perspective, I am ready and prepared to utility connection that helped purchase lots and launch new projects in Kazan”. us save USD 10m”. Kari Kauniskangas, President and CEO YIT Jan Keller, Vice President for Russia and CIS Air Liquide From dream to reality”. Olchen Orhan, CEO Sunrise Capital

30 PwC Guide to Investment The Republic of Tatarstan 31 5 State support for investors Tatarstan Investment Development Agency

For more than seven years, the TIDA has been helping investors by:

raising financing;

supporting and implementing investment projects using a one-stop-shop approach;

creating a favourable investment climate; The Tatarstan Investment Portal is a universal tool improving the investment appeal of the Republic of Tatarstan; that provides investors with extensive information about Tatarstan in 11 different languages: developing public-private partnerships. http://invest.tatarstan.ru

At TIDA, investors receive one-stop-shop services, including on: Investors

Designing project Establishing strategies companies

TIDA

• Business partners • Government Selecting Receiving investment sites benefits • Other authorities

32 PwC Guide to Investment The Republic of Tatarstan 33 Frequently asked questions by investors Where can I find the list of documents needed to register a legal entity? Procedures for establishing joint ventures The list of documents is available on the website of the Federal Tax Service. What procedures are in place The list of documents is specified in Article 12 for establishing joint ventures? of Federal Law No. 129-FZ of 8 August 2001, “On the State Registration of Legal Entities and First, the parties meet and identify their next Sole Proprietorships”. steps and, if necessary, sign documents such as a memorandum of intent and a confidentiality agreement.

To which tax inspectorate must I submit registration documents?

What does a memorandum of The registered address of a legal entity is considered intent usually contain? to be the legal address of the director (CEO, founder, etc.). The business address may be the In a memorandum of intent, the parties usually address of an office owned by the founder, or the specify the scope of their activity, confirm their home address of the firm’s CEO (rented premises mutual interest in setting up a joint venture, define may also be used as the business address). the law and judicial authority that will consider disputes between the parties, etc.

What law regulates the How long does it take to receive state procedures for registering registration documents? legal entities in the Russian Federation? If the documents you submitted are correct and complete, you will receive the following from the The procedures for registering legal entities in tax inspectorate within three business days: the Russian Federation, including companies with foreign interest or participation, are defined • Certificate of state registration of a legal entity; by Federal Law No. 129-FZ of 8 August 2001, • A copy of the corporate charter/articles of “On the State Registration of Legal Entities and incorporation signed by the registering authority; Sole Proprietorships”. • A list of records with the Unified State Register of Legal Entities (USRLE).

34 PwC Guide to Investment The Republic of Tatarstan 35 Investment protection law How is the hiring of foreign employees regulated?

What legislation is in place Where are the rights and obligations of foreign in Tatarstan to protect my citizens and the terms of their migration investments? registration defined?

The Republic of Tatarstan has adopted the In the Republic of Tatarstan, Federal Law following laws on protecting investments: No. 109-FZ of 18 July 2006, “On the Migration Registration of Foreign Citizens and Individuals • Law No. 1872 of 25 November 1998 without Citizenship in the Russian Federation” “On Investment Activities in the Republic is in effect. of Tatarstan”, • Law No. 2180-XII of 19 July 1994 “On Foreign Investment in the Republic of Tatarstan”.

What legislation regulates the right of foreign citizens to work?

What about federal Federal Law No. 115-FZ of 25 July 2002, legislation? “On the Legal Status of Foreign Citizens in the Russian Federation” regulates this right. The Russian Federation has adopted the following laws on protecting investments: • Law No. 39-FZ of 25 February 1999, “On Investment Activities in the Russian Federation in the Form of Capital Investments”, • Law No. 160-FZ of 9 July 1999, “On Foreign What do the registration procedures for Investment in the Russian Federation”, foreign citizens depend on?

• International treaties signed by the Russian Article 1.2 of Federal Law No. 115 defines three Federation on stimulating and protecting main types of foreigners: “temporarily staying”, investments. “temporarily residing”, and “permanently residing”. The registration procedures primarily depend on the status of the foreigner.

36 PwC Guide to Investment The Republic of Tatarstan 37 Limitations on the withdrawal of funds from the Russian Federation In accordance with Russian law, transactions involving individuals and legal entities that are currency residents (and non-residents) are subject to currency controls when transferring money abroad.

Main participants in foreign exchange transactions

Currency residents and Currency residents and non-residents: individuals non-residents: legal entities

These individuals may legally The main operations for transferring transfer money abroad in the following funds abroad: major ways: • transfer of funds to contractors • through specialised and (suppliers, creditors, borrowers); unspecialised payment systems; • various payments to individuals • through banks to other individuals (e.g. employees abroad); (acquaintances, relatives); • transfer of various duties and • through banks and payment charges to foreign government systems to legal entities. agencies.

Land rights (restrictions) (What restrictions are in place on foreign investors in Tatarstan?)

In the Russian Federation, land use and protection are regulated by the Russian Land Code and regional legislation.

Land is provided for rent (sometimes with the right of the first option) for terms of no more than 49 years. To receive land for rent or ownership (except for exclusive rights), it may be required to win a bid/auction.

38 PwC Guide to Investment The Republic of Tatarstan 39 6 Human capital Higher education and the workforce

More than 25 135 specialities resource centres for skilled workers

An economically 177 specialities active population of for mid-level specialists 2.4m people 116 professions requiring university degrees Innopolis University is a Russian higher education institution focused on IT and robotics. 74 years Average lifespan RUB 32,000 Average monthly salary 84 13 bachelor’s and research master’s programmes laboratories 81 7 professors research and from around the world development centres

150,000 Kazan (Volga) Federal University is students 5th among Russian institutions 45 of higher education, according to higher education Times Higher Education institutions

International schools in Tatarstan Instruction at the Alabuga International School and International School (Kazan) is in English in accordance with the International Baccalaureate (IB) programme. The programme is a globally recognised standard-bearer for high-quality education and is the best way to prepare for the rigours of university.

40 PwC Guide to Investment The Republic of Tatarstan 41 Republic of Tatarstan: a place for doing business, working and living

42 PwC Guide to Investment The Republic of Tatarstan 43 Tatarstan as a global event centre

The XXVII Summer Universiade was a global competition for student athletes

162 27 531 countries sports sets of medals

“The World Aquatics Championship in “The Universiade in Kazan, even before its Kazan was the best in the history of the start, could be rightly considered the best International Swimming Federation”, in the history of the event”, Julio Maglione, FINA President Claude-Louis Gallien, President of FISU

2018 FIFA World Cup in Russia Russia hosted the 21st FIFA World Cup from 14 June to 15 July 2018. Six matches, including a round of 16 match and a quarterfinal, were held in Kazan. The Kazan Arena has a seating capacity of 45,000 and one of the world’s largest media screens (3,700 sq m).

44 PwC Guide to Investment The Republic of Tatarstan 45 WorldSkills International economic summit It has become a leading international «Russia-Islamic world: platform for discussing issues of KazanSummit» cooperation and implementing joint projects. KazanSummit is the main platform for economic cooperation between the Russian The summit’s business programme is World championship for Federation and the Islamic world. followed by cultural and spiritual events. professional skills: Forum guests also enjoy an excursion This international economic summit programme as well as food and design between Russia and the member states of festivals. 2019 the Organisation of Islamic Cooperation Kazan will host the (OIC) took place for the first time in 2009. https://kazansummit.ru/ Championship

More than 75 Number of participants Number of visiting countries member countries and regions

More than 50 skills and professions More than 250 3000 18 50 2009 2018 2009 2018 More than 35 new WorldSkills member countries and regions

Since 1950, 15,454 people have taken part in WorldSkills

46 PwC Guide to Investment The Republic of Tatarstan 47 Made in Tatarstan

Tatarstan brands and products are well known all over the world. http://madeintatarstan.com/

KAMAZ trucks have won the Dakar Rally The Kazan branch of Tupolev has Nizhnekamskneftekhim is one of the largest Tatneft is one of the largest Russian oil 15 times. over 90 years of experience in aircraft petrochemical companies in Europe. companies. production.

The A-145 is a high-speed skimming The Ansat 2RC light helicopter represents a TANECO is a modern Russian oil refinery. Nefis Cosmetics produces chemicals for passenger boat. These types of vessels have new class of light military aircraft that has household and industrial use. never been produced in Russia before. no equivalent in Russia.

48 PwC Guide to Investment The Republic of Tatarstan 49 Visit Tatarstan

http://visit-tatarstan.com/ World events:

International Opera The Kazan Kremlin Festival named after The heart of the republic Fyodor Shalyapin Just metres away from one another, you can find an ancient cathedral and the Qol Sharif International Festival mosque, a symbol of Tatarstan’s of Classic Ballet named Islamic revival. Here you can find after Rudolf Nureyev the tomb of the Kazan khans and the mysterious leaning Suyumbike Tower. International Islamic Film Festival

International Jazz Festival Great Bolgar An ancient civilisation on the Volga River Sport venues: Here you can find the pride of Tatarstan: the largest printed Quran in the world. Sviyaga Hills Golf Club

Sviyaga Hills Ski Resort

Kazan International Horse Racing and The ancient island Sports Complex of Sviyazhsk A prototype of Pushkin's Buyan Island A fantastic island with an amazing and living history 10,000 maintained by its inhabitants. sporting venues operate in Tatarstan

50 PwC Guide to Investment The Republic of Tatarstan 51 Things to do in Tatarstan

While visiting Tatarstan, make sure to:

Get a copy of the Guide to investment

See the Orthodox cathedral and mosque in the Kazan Kremlin

Discover if the Suyumbike Tower is really leaning

Walk along Bauman Street, Kazan’s version of Moscow’s famous Arbat Street

Fall in love with the local cuisine

Ponder eternity at Sviyazhsk

See the world’s largest printed Quran in the city of Bolgar

Visit the home match of a professional sports club

Invest in Tatarstan

Plan your next visit!

52 PwC Guide to Investment The Republic of Tatarstan 53 Come to Tatarstan!

54 PwC Guide to Investment The Republic of Tatarstan 55 PwC in Russia PwC provides industry-focused assurance and advisory services, as well as tax and legal services for public and private clients. Our experienced staff, combined with our global network, make us uniquely positioned to help you to grow your business both at home and abroad.

Ranking and awards • companies make up our client base 3,000 • No. 1 in the 2017 rankings of audit firms • Leading consultancy on including 200 companies from the Expert Top 600. in terms of diversity, Vault (2017); establishing joint ventures and alliances, ALM Vanguard, 2017; • No. 1 in the 2018 rankings of firms • They account for 63% of the total revenue earned specialising in audit and financial • No. 1 in the 2018 rankings of audit firms by all of the companies in this rating. accounting, Vault (2017); in Forensics, Vault (2017); • No. 1 in the 2018 rankings of most • Among Top 10 Russian legal firms • PwC Russia’s share of the audit market among prestigious audit firms, Vault (2017); according to the Pravo.Ru-300. • Best provider of strategy services Expert 600 companies is 27%. for M&A, ALM Vanguard (2017);

Our audit and consulting clients include: Corporate social responsibility We believe that high quality corporate • of the largest financial companies and banks; 10 10 responsibility standards are a key • 9 of the 10 largest oil and gas companies; component of any business strategy. We seek to provide high-quality services, • 9 of the 10 largest metallurgical companies; follow a code of business ethics, help develop talent, get engaged in the • 9 of the 10 largest mining companies; communities where we have a presence • 8 of the 10 largest telecommunication companies; and promote environmental protection. • 6 of the 10 largest power industry companies; • 6 of the 10 largest retail companies.

56 PwC Guide to Investment The Republic of Tatarstan 57 Contacts Address: Ma Shao Hu Tong Jia 27, Dongzhimennei Dajie, Dongcheng District, Beijing, P.R. China, Post Code: 100600 Current Representative Offices of the Republic of Tatarstan Phone: +86 (10) 653-221-81, 653-246-56 People's Email: [email protected] Address: Bldg. 1, 13/15, 3rd Kotelnichesky Pereulok, Moscow, 109172 Republic of China Phone: +7 (495) 915-58-02, 915-05-02 Address: N1, vedado Ciudad de la Habana, Cuba Email: [email protected], [email protected] Phone: +53 (7) 204-56-65 Russia Email: [email protected], [email protected] Address: Room 2, 14/39, Line 11, Vasilyevsky Island, St Petersburg, Cuba 199178 Address: P.O. Box 116742, Office 2903, Citadel Tower, Business Bay, Phone: +7 (812) 323-12-27, 323-61-39 Dubai (UAE) Email: [email protected], [email protected] St Petersburg and Phone: +971-50 296-00-80, +971-436-05-477 Leningrad Oblast UAE Email: [email protected] Address: 3 Karl Marx St, Ufa, 450076 Address: 2650 Connecticut Ave NW, Washington, 20008 USA Phone: +7 (347) 246-52-84 Phone: +1 (202) 232-09-75, 232-59-88 Email: [email protected], [email protected] Email: [email protected] Bashkortostan USA Address: Office 2, 5/9 Bolshaya Pecherskaya St, Nizhny Novgorod, 603005 Address: 64B Myaty Kosaeva St, Ashkhabad, 744000, Turkmenistan Phone: +7 (831) 419-57-81 Phone: +99 (369) 68-07-07 Nizhny Novgorod Oblast Email: [email protected], [email protected] Email: [email protected] Turkmenistan Address: 75 Moskovskaya St, Saratov, 410600 Phone: +7 (8452) 279-200 Address: Blok 1, Kat 6, Kavacik, Ruzgarli Bahce Sk., Yesa Is Merkezi, Email: [email protected] Istanbul, Turkey Saratov Oblast Phone: +90 (216) 537-77-00, 537-77-01 Address: 24 Sacco and Vanzetti St, Yekaterinburg, 620077 Turkey Email: [email protected], [email protected] Phone: +7 (343) 371-43-19, 359-88-14 Address: 30a V. Vakhidova St, Tashkent, 700031, Republic of Uzbekistan Email: [email protected], [email protected] Sverdlovsk Oblast Phone: +998 (71) 120-30-17, 252-40-22 Email: [email protected], [email protected] Address: Office 116, 27 Studencheskaya St, Khanty-Mansiysk, Uzbekistan Khanty-Mansi Autonomous Okrug — Yugra, 628007 Phone: +7 (3463) 270-749 Address: Office 68, 28/2 Grushevskogo St, Kyiv, 252021, Ukraine Khanty-Mansi AO Email: [email protected] Phone: +38 (044) 253-04-01, 253-55-88 Email: [email protected], [email protected] Address: 19/1 А Turgeneva / Shmidta St, Simferopol, Ukraine Republic of Crimea, 295000 Phone: +7 (365) 227-20-56 Address: Neovostoliiton Kaupallinen, Edustusto Suomessa, Republic of Crimea Email: [email protected] 14 Tehtaankatu 1C, Helsinki, 00140, Finland Phone: +358 (9) 664-528 Finland Email: [email protected] Address: 22 Khan Shushinski St, Baku, Republic of Azerbaijan, AZ1007 Address: 6 rue du Dr Finlay, Paris, 75015, France Phone: +994 (12) 441-69-94 Phone: +33 (1) 462-230-03 Email: [email protected], [email protected] Azerbaijan Email: [email protected] France Address: Office 29, 8 Skaryny St, Minsk, Republic of Belarus, 220114 Phone: +375 (17) 234-16-07 Address: Sibirske nam 6 CR, Prague, 1027 16000, Czech Republic Email: [email protected] Phone: +420 602-613-383, 602-215-514 Belarus Email: [email protected], [email protected] Address: 6 Sunkar St., Lane Е231, BI Village Deluxe-1, Yesil District, Czech Republic Astana, 010000 Address: 17 Ruede la Rotisserie, Geneva, 1204, Switzerland Phone: +7 (7172) 572-421, 276-966 Phone: +41 (22) 310-85-58 Email: [email protected] Email: [email protected], [email protected] Kazakhstan Switzerland 58 PwC Guide to Investment The Republic of Tatarstan 59 Contacts

Republic of Tatarstan PwC Russia

President of the Republic of Tatarstan Moscow Rustam Nurgalievich Minnikhanov 10 Butyrsky Val, Moscow 125047 Office of the President White Square Business Centre of the Republic of Tatarstan Tel.: +7 (495) 967-60-00 Kremlin, Kazan, 420014 Fax: +7 (495) 967-60-01 Phone: +7 (843) 567-89-01 www.pwc.ru Fax: +7 (843) 292-70-88 president.tatarstan.ru Kazan 35/2 Pravo-Bulachnaya St, Kazan, 420111 Head of the Tatarstan Tel.: +7 (843) 233-07-07 Investment Development Agency (TIDA) Fax: +7 (843) 233-07-17 Taliya Ilgizovna Minullina 11 Agronomicheskaya St, Kazan, 420107 Denis Derevyankin Phone: +7 (843) 570-40-01 (05) PwC Managing Partner tida.tatarstan.ru in the Volga Federal District Tel.: +7 (843) 233-07-07 Investment Portal Email: [email protected] of the Republic of Tatarstan invest.tatarstan.ru Mikhail Nosov Director, Assurance Inbound Tel.: +7 (843) 233-07-13 Email: [email protected] Republic of Tatarstan official website tatarstan.ru

Made in Tatarstan information portal about the industrial potential of the Republic of Tatarstan madeintatarstan.com

Visit Tatarstan, official tourist portal of the Republic of Tatarstan visit-tatarstan.com

60 PwC Guide to Investment The Republic of Tatarstan 61 © 2018 AO PricewaterhouseCoopers Audit. All rights reserved. Further distribution is allowed only with PwC’s written consent.