Dear friends! I am happy to welcome you on the pages of the Region Investment Profile

uzbass is a leading industrial re! the new generation development tool for us gion in the Siberian Federal Ok! that integrates educational, research and Krug. A relatively small area of the industrial activities. Its core activities will Kemerovo Region (95,500 sq. km) con! include: deep coal conversion, coal bed tains a powerful diversified cluster of in! methane extraction, further development dustries, constituting one!third of the fixed of mine equipment engineering, develop! capital assets of Western . ment and implementation of high technol! In the opinion of RF President Dmitry ogy in the areas of medicine, education, Medvedev the key vector of the national nature management, as well as solution of economy development today is towards the environmental problems. As of today, the upgrade of all its sectors. data bank of the park contains more than As a way of its implementation we pri! 100 projects that are ready to launch. Cur! oritized Kuzbass economy development as rently, twenty two companies received the a joint effort of the local government, pub! formal status of Kuzbass technopark resi! lic and private sectors. dents since their projects are already in the Kuzbass is a region. Of pipeline. course, we will not discontinue mining We have been the first in to coal. But our new target is not simply to launch coal bed methane extraction and continue producing coal, but also to pro! use project which we are doing jointly with cess it on site. OAO Gazprom. In February 2010 Russian The focus point of the future innovative President Medvedev took part in the launch infrastructure will be Kuzbass technopark – of this breakthrough project.

2 Kemerovo Region Investment Profile

Today methane extraction in Taldin! nearly five!fold increase of holiday!mak! skiy coalfield amounts to 12,000 cubic ers (from 42,000 to 240,000 people). Today meters per day; seven productive holes have is perceived as an international been drilled, a gas!filling station and a gas! level recreational facility. We have got ev! to!heat conversion boiler station are in op! erything to make this happen, including eration together with a modular power sta! unique nature and climate of Mountain tion. By 2015 we can be close to commer! Shoria land. cial methane extraction in the amount of Among other projects to have a sizable 1.5 billion cubic meters. social impact is the construction of the Re! For the last two years nearly 1 billion gional Centre of mountain skiing and rubles has been invested into the project, snowboard on the Tumannaya (Foggy) the overall cost project amounting to 85 bil! Mountain in . We have already lion rubles. arranged several ski runs, some sports fa! It means Kuzbass is becoming a differ! cilities, and ski lifts. This centre is sched! ent region. Not just a coal place they used uled to be used to train the Russian sports! to call it, but a coal and methane region. men for the 2014 Olympic Games in So! Implementation of all the regional in! chi. vestment and innovative projects is in These and other projects will lay the sync with a task of raising the standards foundation for further sustainable devel! of living of the population. The major opment of the economy and the social thing is how you treat your people. At the sector. same time a person should feel this from As a way of elimination of risks regard! the moment he was born. For this pur! ing inward capital investments in the econ! pose we are building a state!of!the!art omy, we take- measures at the regional lev! medical perinatal care centre in Ke! el to ensure investor security. This includes merovo. More than 1 billion rubles has state support, tax breaks, and plenty of other already been invested into the project im! measures. The regional budget envisages plementation. funds to support the most effective and fast! In the few years to come we will focus payback projects in the real sector of the our construction efforts on low!rise hous! economy. ing. Since 2007 Kuzbass has been imple! The leading Russian holding and mul! menting a pilot project of comprehensive tinational companies have their vested in! territorial development ! construction of terests in Kuzbass. The regional economy satellite town Lesnaya Polyana (Forest is integrated into the economy of more than Glade). It is the town of the future, a place 80 other countries of the world. And, as ex! for the young. perience has shown, the Kemerovo Region This new town is being built virtually continues to attract interest. from the scratch. As of today 700 families Our goal is make the region transpar! are among the new dwellers. Overall, there ent for investors, creating the favorable will be 35,000 residents in the town. In the conditions for inward capital flows. coming years we will continue building I am convinced that a constructive di! both apartment units and individual alogue with the representatives of the busi! homes, together with community and en! ness community will enable Kuzbass gineering infrastructure. turning into a promising investment mar! We place a strong emphasis on develop! ket thus contributing to the further eco! ment of the tourist and recreational poten! nomic growth of Kuzbass, Siberia and tial of the region. The focus here is on win! entire Russia. ter sports. Thus, in Tashtagol, we continue Yours faithfully, construction of the mountain ski resort , Sheregesh, the largest one east of the Urals , Mountains. For the last six years we saw a Kemerovo Region

3 The region in brief

The region in brief

The Kemerovo Region (another name of the region - Kuzbass) is located in the south-east of Western Siberia, almost midway between western and eastern borders of the Russian Federation.

he administrative boundaries of the of the population of Russia. Population!wise, Kemerovo Region are land based. In the Kemerovo Region places 2nd in the SFO Tthe north it borders on the Re! and 14th across Russia. gion, in the east – on Krasnoyarsk Krai and Population density – 29.5 per sq. km. Republic of Khakasiya. In the south the Kuzbasss places 1st in the Siberian Federal boundary lines stretch along the principal ridg! Okrug by population density. es of Gornaya (Mountainous) Shoria and the Administrative divisions: the Kemero! Range with Republic of Altai and Altay vo Region is divided into 223 municipali! Krai; in the west – it crosses the flat ground ties, including 16 urban okrugs, 18 mu! bordering on the Region. The nicipal districts. The principal regional extent of the Kemerovo Region, north to south, city is Kemerovo with the population of is almost 500 km, west to east ! 300 km. 526,200. There are 7 cities in Kuzbass with The Region acquired its current bound! the population exceeding 100,000. The aries on January, 26th, 1943. largest municipalities are urban okrugs: The Kemerovo Region area totals 95,500 (563,600) and Proko! sq. km that accounts for 4% of Western Sibe! pievsk (211,000). ria territory and 0.56% of the RF territory. The share of urban population in the Ke! Area!wise, the Kemerovo Region places 10th merovo Region is 84.9%, agricultural popu! in the Siberian Federal Okrug (SFO). lation accounting for 15.1%. By the level of Population – 2,820,600. It accounts for urbanization Kuzbass places 1st in the Sibe! 14.4% of the SFO population, with 2% share rian Federal Okrug.

4 Kemerovo Region Investment Profile

The economic potential of the Kemerovo Region

The Kemerovo Region is among the most developed industrial regions in Siberia possessing an immense natural, industrial, and raw materials potential

he Kemerovo Region is rich in vari! on ferrous metallurgy, coal industry, and ous mineral resources. chemistry. Kuzbass accounts for: 59.7% of TThe total geological coal reserves of the Russian coal, 12.8% of steel, 13.1% of down to 1800-meter depth rolled metal, 65% of broad gauge railway are estimated to be 733,400 million tons in! rails, and 100% of tram rails. cluding 724,300 million tons that meet the Coal mining in Kuzbass is a multisectoral requirements for mineable deposits (by seam complex including 110 coal!mining enterpris! thickness and ash content of coal). The Ke! es and 35 coal treatment plants. Possessing merovo Region accounts for 73% of such coal highly productive coal reserves (both in terms The potential of reserves in Russia. of quality and geo!mining conditions), the coal ore mining in Gorno- The western part of Kansk!Achinsk lig! sector of Kuzbass have chosen a route of in! Shor area is estimat- nite deposit is located in the north!east of the tensive coal mining. The coal sector of the re! ed at 2,168.7 million region. The lignite reserves are estimated to gion is completely privately owned. tons, including 639.5 be 64,200 million tons. The iron and steel sector of Kuzbasss has a million tons in the Deposits of iron ore in the Kemerovo Re! clearly marked domestic market specializa! industrial categories gion are mainly concentrated in Gornaya tion. It includes such major companies as: A + B + C Shoria and . There are de! OAO Novokuznetsk Iron!and!Steel Plant posits of manganese, gold, silver, tungsten, (NKMK), OAO ZapSib Iron!and!Steel Plant mercury, molybdenum, cobalt, nickel and (ZSMK) with a complete foundry cycle, OAO other minerals in Kuzbass. Guryevsk Iron!and!Steel plant, OAO Koks, The available reserves of nonmetallic min! OAO Kuznetsk Ferroalloys Works. Current! erals are mainly covering the need of iron and ly a large!scale refurbishing and upgrade of steel makers. Nearly 20 deposits of fluxing the iron!and!steel sector is under way in the limestone, dolomites, quartzite, fireclay, region. The purpose of the upgrade is the molding sands have been explored and are manufacturing of more competitive, value used for the needs of the steel sector. added products. The traditional industries are the leaders Kuzbass power supply network includes 8 ther! of Kuzbasss economy, with the sectoral focus mal power stations with the total installed ca!

5 The economic potential of the Kemerovo Region

Modern, highly pacity of 4,869 MW: ’!Usinsk GRES metallurgy, coal sector and railways. These mechanized coal (state district power station (1,272 MW); sectors account for 70% of the entire pow! companies/mines Belovsky GRES (1,200 MW); South er consumption. Kuzbass power stations operate in Kuzbass: Kuzbass GRES (554 MW); Kemerovo are known for their high utilization ratio of Raspadskaya UG GRES (485 MW); Novo!Kemerovo GRES the installed capacity and a low fuel con! mine, Zarechnaya (565 MW); the Western!Siberian thermal sumption rate. UG mine, Kotinskaya power station (TETS)(600 MW); Kuznetsk The agricultural sector accounts for UG mine, Kirov UG TETS (108 MW); Kemerovo TETS about 3.8% of a gross regional product. The mine. There are (85 MW). In parallel with the major power core products of the farming industry – crop largest coal-mining network there are three customer power growing and animal husbandry. Wheat, companies of Russia units: thermal power station at Novokuz! barley, oats, rye, peas, potatoes and vari! in the Kemerovo netsk Iron and Steel plant TETS with the ous vegetables are on the agriproduct list. Region, such as: installed electric capacity of 71 MW, The key sectoral investors are: the Siberian OAO Kuzbassrazre- TETS ! 91 MW and Anzhero!Sudzhensk Business Union (SDS) holding company, zugol, OAO SUEK, TETS ! 10 MW. The principal fuel is Kuz! Skomoroshka holding company, Volkov’s ZAO Raspadsky Coal netsk coal. A total heat rate of the power Farm, Kuzbass Food Kombinat and oth! Company, OAO supply network amounts to 7,000 Gkal/ ers. Southern Kuzbass hr. During the year Kuzbass produces up The farming land area totals 2.4 mil! CoalCompany, OAO to 27 billion kW/h of electric energy and lion hectares, including 1.5 million hect! Yuzhkuzbassugol, 41 million Gcal of thermal energy, includ! ares of arable lands and 0.9 million hect! Holding Company ing 24 million Gcal from municipal boil! ares of land for haymaking and grazing. The SDS-Ugol, er!houses. animal husbandry in the region is diversi! OAO Belon, The major part of Kuzbass power sup! fied, including cattle breeding, hog!breed! OAO Holding ply system is owned by: OAO SUEK (the ing, and poultry!raising. The agricultural "Sibuglemet” major shareholder of OAO Kuzbassener! sector receives regional support under the go), OAO Mechel (the owner of South auspices of the regional targeted program Kuzbass GRES) and Evrazholding (the “State support of agribusiness and social owner of Western!Siberian TETS). development in the rural areas in the Ke! The electric power sector of the Ke! merovo Region” in 2008!2012. merovo Region demonstrates a steady per! However, considering the fact that a formance. The key consumers of electric larger portion of lands are occupied by in! power belong to ferrous and nonferrous dustrial enterprises, and the region is a risk

6 Kemerovo Region Investment Profile

farming area, the agribusiness in the Ke! density is 26/100. Cellular communica! merovo Region is not a core economic ac! tions and Internet are going through the pe! tivity. riod of sweeping changes. The small business sector plays an in! The Kemerovo Region banking sector creasingly important role in the economy plays an essential role in achieving and of the Kemerovo Region. There are 19,200 maintaining high economic performance small enterprises operating in the region, indicators. The constant growth of region! mainly, in trading, public catering, con! al presence of bank branches from other struction, and manufacturing sectors. The towns is an indicator of growing investment number of employed in the SME sector is appeal. Since their arrival the inflow of in! More than 9,000 169,200, or 12% of the employed in the vestments to the region has sharply grown. loaded railcars entire regional economy. Besides, another The bank branches account for over 90% of including 7,000 50,000 people work in the capacity of sole the banking services in the region. One of railcars with coal traders without formation of the juridical the tasks facing the Kemerovo Region Ad! depart daily from the person. In 2009 the turnover of small en! ministration and the banking sector is the stations of Western- terprises exceeded 327 billion rubles. launch of the investment process aiming at Siberian Railways The Kemerovo Region places 1st in the large!scale structural re!organization of the Siberian Federal Okrug in terms of cargo economy of Kuzbass in line with the De! traffic volume by all common carriers. In velopment Strategy of the Kemerovo Re! 2009 the Kemerovo Region accounted for gion till 2025. 55% of all cargos conveyed by common car! The Kemerovo Region is one of the most riers in the Siberian Federal Okrug. The stable developing regions from the point of overall extent of motor roads of common view of socio!economics across other Re! use with a hard topping totals 5,367 km in gions in the Siberian Federal Okrug. the Kemerovo Region. The motor roads of The level of the existing regional policy the region are known for their high quality. is largely dependent on the available sys! Public conveyance by air in Kuzbass is tem of the long!term and medium term carried out through the airports of Kemero! planning for the socio!economic develop! vo, Novokuznetsk, and Tashtagol. The Ke! ment of the region. merovo airport has the international status In 2009, in view of the provisions of the and is capable of landing all types of air! “Strategy for social and economic devel! crafts. In the summertime, eight (8) air! opment of the Kemerovo Region till 2025” lines daily connect Kuzbass airports with the Kemerovo Region adopted the Program flights to 35 cities in Russia and abroad. of territorial planning (developed by the The Kemerovo Region enjoys all mod! group of authors from of the Russian re! ern forms of communication. The telephone search and design institute of Urbanistics (St. Petersburg) and OAO Lengiprogor). In the Kemerovo This program envisages allocation of capi! Region there is tal construction projects of regional signif! three-tier vertical icance, measures for protection of environ! system of compre- ment, change of boundary lines of munici! hensive planning at palities in the region. The territorial plan! regional level, the ning program allows identification of com! urban okrug level petitive socio!economic advantages of the and the level of given territory and confident development municipalities of economic activities and agriculture with! including smaller in municipalities. settlements with The master plans for each municipality long-term, medium are being prepared in parallel with the above term and current program designating the land use on the ba! planning process sis of socio!economic, environmental and in place other factors. The purpose of the plans is to enable sustainable development of territo! ries, and the development of engineering, transport and social infrastructure. The core strategic long!term target of the Kemerovo Region is raising competi! tiveness of the region and the consequent growth of well!being for the people of the region.

7 The key features of the socio-economic development in 2009

The key features of the socio-economic development in 2009

2009 was anything but an easy year for the Kuzbass economy. The world financial crisis impacted badly on the majority of macroeconomic indicators of the Kemerovo Region. The majority of the Siberian Federal Okrug regions experienced the same trend.

he size of the Gross Regional Product Financial and economic crisis in Q4 2008 (GRP) in the Kemerovo Region in crashed the markets. The metal prices for the T2009 totaled 500,600 million rubles ! first six months alone since October, 2008, by 7.7% less in comparison with 2008 (the av! plummeted by 35.6%, the prices for coal fall! erage - GDP reduction across Russia on year ing by 56.1%. On account of sharp reduction 2008 being approximately 7.9%). In many re! of both external and domestic demand for spects thanks to the anti!recession measures un! steel and non!ferrous metals, Kuzbass iron dertaken at federal and regional levels, Kuzbass and steel makers were forced to cut their out! managed to avoid the worst case scenario. put by one!third last year. It resulted in down! The situation in the industrial complex is turn in the two major sectors of the Kemero! the key factor impacting the size of GRP. vo Region economy ! coal and steel, which in Kuzbass is deeply integrated into the econo! aggregate contribute up to 40% towards GRP. my of more than 80 countries of the world. Naturally, the size of the entire economy of The Kuzbass share of the total amount of ex! the region shrank too. ports across the Siberian Federal Okrug Later on, however, the regional industry amounts to more than 28.8%. began to flatten out. In the second half of The region exports 54.9% of its metal, 2009 the key industrial sectors of Kuzbass, 50.9% of the extracted coal, and 34.7% of such as steel, coal and chemistry came back mineral fertilizers. to the pre!crisis output levels. The coal sec!

8 Kemerovo Region Investment Profile

tor operators managed to find new markets list of regional backbone enterprises, mono! for coal not only in Russia, but abroad as well. company town enterprises and socially sig! During the last six months of 2009 coal min! nificant enterprises. ing output figures in Kuzbass were exceeding The provision of state guarantees for bor! the performance level of 2008, year on year. rowed funds became yet another support Overall, in 2009, the Kemerovo Region ex! measure for the real sector enterprises. For tracted 181.3 million tons of coal. 2009 nearly 727 million rubles has been en! Overall in 2009, the Beginning from May, 2009 the leading visaged by Kuzbass budget towards issuing Kemerovo Region iron and steel manufacturers began to build loan guarantees. generated 20,009 up production. In May!November the pro! Since January the 1st, 2009 the regional new jobs, including: duction in the entire steel sector of Kuzbass profit tax rate was lowered down to 13.5% coal sector – 4,260; increased by 30%. By product type, during for processing enterprises, construction and iron and steel sector- this period, steel output increased by 48%, agricultural sectors. The enterprises that in! 608, mechanical pig!iron – by 51%, rolled ferrous products – vested into new competitive technologies have engineering - 406, by 38.5%. Current capacity utilization in this been completely exempted from the proper! construction sector- sector is virtually back at its fullest. ty tax. Various forms of state support to busi! 938, trading – 7,507, The principal factor that helped stabilize nesses, such as facilitation in attraction of social sector – 2,314. the regional economy was an antirecession loans as well as settlement of payables and As a result, the level program of the RF Government and those receivables, issuing state government guar! of registered measures undertaken by the regional author! antees, and providing tax breaks to 338 en! unemployment in ities to support the series of backbone enter! terprises resulted in a more stable situation Kuzbass turned out prises. With the purpose of raising economic in the industrial sector and helped prevent! to be quite low - 3.7% sustainability and rendering state support to ing industrial output from falling. of the economically businesses, 16 largest Kuzbass companies In 2009 the infrastructure development was active population (105 enterprises) were included into the fed! under way with 60 kilometers of motor ways eral list of the backbone organizations ap! and 6 bridges having been brought back to op! proved by the Government commission on eration. The construction of regional highway the RF economic sustainability. In addition, Kemerovo ! Leninsk!Kuznetskiy, Chugunash another 19 enterprises and organizations of ! Sheregesh road and the road connecting satel! the Kemerovo Region were included in the lite ! town Lesnaya Polyana (Forest Glade) and federal list of enterprises of regional stand! Kemerovo is also in progress. ing that was prepared by the RF Ministry of The only sector that demonstrated growth economic development. Yet another hundred in 2009 was agriculture. Specifically, Kuzbass twenty five enterprises were the part of the in 2009 harvested its biggest crops since 1966 –

9 The key features of the socio-economic development in 2009

The coal mining sector performance in the Kemerovo Region in 2003-2009 (million tons)

Gross croppage (in stored weight) in the Kemerovo Region in 1998-2009 (thousand tons)

more than 1.8 million tons. This high output more low!cost and higher quality domestic resulted from the two factors. Firstly, such products. branches as crop production and animal hus! Preliminary estimates indicate that by bandry make competitive products which are 2010 year!end the situation in the Kemerovo in demand in the market, which fact in turn Region economy should stabilize. One of the promotes quick turnover and payback of in! key goals of regional authorities is to switch vestments. Secondly, in this case the output is over from antirecession measures to a post! affected by import substitution process. Also crisis support phase regarding regional en! real income for the last year dropped by 14%, terprises and organizations. Such post!crisis and it promotes reorientation of users to development program has been developed

10 Kemerovo Region Investment Profile

Growth rate, residential housing, in the Kemerovo Region 2004-2009 (thousand sq.meters)

Cultivated crop area in 1998-2009 in the Kemerovo Region (thousand hectares)

and is currently implemented by the Ke! here is the effective development of small and merovo Region. medium sized businesses. And last, but not The priority objectives for 2010 are in! least, is bringing along innovations and im! dustrial refurbishment and upgrade with the proving investment appeal of the region. purpose of raising productivity and energy As a result, in the coming two or three years efficiency. The key focus areas for regional the economic growth rate in Kuzbass should development are: targeted public support, reach 3 ! 6%. In the future the outcome from development of monocompany municipali! accepted measures will be more considerable. ties and the social sector, and optimization It will allow the region strengthening its posi! of the budgetary process. One of the key goals tion in the new, post!crisis economy.

11 12 Kemerovo Region Investment Profile

Foreign trade activities of the Kemerovo Region enterprises

The foreign trade turnover of the Kemerovo Region in 2009 totaled 8,971.3 million US dollars which is 1,707.2 million dollars (or by 16 %) less than 2008 level. Decrease in the foreign trade turnover in the region resulted from reduction of export-import transactions with the countries of Newly Independent States (NIS) – by 823.2 million dollars (45.4 %), with the far abroad countries – by 884 million dollars (10 %).

In 2009 Kuzbass maintained trade ties with 74 coun- tries of the world. The countries with the maximum volume of turnover are Great Britain, China, Japan, Turkey, Netherlands, , Taiwan (China), Latvia, Kazakhstan, Poland. Overall, the trade turnover with these countries in 2009 totaled 5,936.7 million dollars (66.2% of the total amount of exports and imports)

he foreign trade turnover for Kuzbass of the foreign trade from 91.4% in 2008 to in 2009 totaled 26% of the export ! 94% in 2009. Timport operations in the Siberian Fed! Kuzbass exports in 2009 in money terms eral Okrug, in money terms. totaled 8,429.3 million dollars, which is a Trade turnover with the far abroad coun! 13.5% reduction in comparison with 2008. tries totaled 7,980.8 million dollars (89% of It has resulted due to the drop in supply to total trade turnover), the turnover with the NIS countries by 663 million dollars (or by NIS countries being 990.4 million dollars 44.9%), by 657.2 million dollars (by 7.9%) (11% of the entire trade turnover). to far abroad countries. The money!wise ex! The foreign trade of the Kemerovo Re! ports to far abroad countries totaled 7,614.4 gion is indicative of exports exceeding im! million dollars (90.3% of total exports); ports by a factor of 15.6. In 2009 the balance 814.8 million dollars to the NIS countries of trade surplus totaled 7,889.3 million dol! (9.7%). lars. The share of exports in the trade turn! The Kemerovo Region carried out export over reached 8,429.3 million dollars, with operations in 2009 with 66 countries. imports totaling 542 million dollars. In 2009 Across the entire Kuzbass export com! the Kemerovo Region trade turnover showed modity mix the mineral products are histor! a shift towards increase of export component ically predominant (mainly, bituminous coal,

13 Foreign trade activities of the Kemerovo Region enterprises

Following the results coke and semicoke), metals and metal fabri! coal exports grew by 15.5% (by volume) in of 2009 the largest cations, and also chemical products. comparison with 2008, the growth in value foreign traders in Mineral products ! mainly, bituminous terms totaling 5.9%. Kuzbass are the coal, coke and semicoke, are the most ex! The largest Kuzbass exporters of bitumi! enterprises from the portable items in Kuzbass for 2009. They nous coal in 2009 are: OAO Coal Company steel, coal, and accounted for 75.8% of all exports, or Kuzbassrazrezugol, OAO SUEK, OAO South! chemical sectors: 6,390.4 million dollars in money terms. In ern Kuzbass, OAO UG Mine Zarechnaya. OAO Coal Company 2008 mineral products accounted for 62% of The Kuzbass imports by value in 2009 Kuzbassrazrezugol, the total amount of exports that were handled by the Kemerovo customs OAO SUEK, OAO In 2009 in comparison with 2008 the share totaled 542 million dollars, which is by ZSMK iron and steel of this group of exports in value terms in! 387 million dollars less (41.7%) than in 2008. plant, OAO Rusal creased by 344.6 million dollars (by 5.7%) The overall decrease of imports can be at! Novokuznetsk, OAO which resulted from higher export deliveries tributed to lesser amount of importation from Novokuznetsk iron- of this commodity group to the far abroad NIS countries by 160.2 million dollars (by and-steel works, countries by 886.3 million dollars (or by 47.7%) and from far abroad countries – by OAO Southern 18%), whereas NIS countries had lesser 226.8 million dollars (by 38.2%). The share Kuzbass, OAO UG Kuzbass exports by 541.7 million dollars of imports in value terms from far abroad Mine Zarechnaya, (48.8%). countries in 2009 totaled 67.6%, from NIS KOAO OOO Pro- Mineral exports from Kuzbass are for countries – 32.4%. mugol servis, 98.3% bituminous coal (6,279.6 million In 2009 the Kemerovo Region was im! OAO Mezhdurechje dollars in value terms, 90.9 million tons by porting from 53 countries of the world. volume). Last year the overall freight tonnage The leading items on the Kuzbass imports handled by the Kemerovo Customs totaled list last year were: machinery, equipment and 97.2 million tons, which is 13.9% year!on! vehicles, chemical products, metals, and year growth (2009/2008). In 2009 Kuzbass metal fabrications.

14 Kemerovo Region Investment Profile

The implementation of promising investment projects

The Kemerovo Region is a dynamically developing region with wide investment opportunities that are attributed to its powerful industrial potential and low investment risks. Annually, the Kuzbass economy receives nearly 100 billion rubles worth of investments, and it tends to increase.

n 2009 the volume of investments (inclu! ding into the SME sector) totaled 109.43 Ibillion rubles which is 70.7% of 2008 lev! el in comparable prices. Medium sized and large enterprises received 76.2 billion rubles of investments (64.1% of 2008 volume) (Fig.1). Following the results of 2009 the largest share of overall investment fell on the miner! al mining sector (mainly,- steam coal min! ing) ! 48% (36.38 billion rubles), given that over the last three years this indicator was stable, being in the range of 44!48% of the overall regional investment bill (Fig. 2). As of 2009 the private investments prevail in the overall investment portfolio (64%, or and Shchedruhinskaya (Novokuznetsk City). 48.8 billion rubles), net foreign and joint for! New facilities were commissioned in Aba! eign and Russian investments accounted for gursky washery plant, and at Kuznetsk fer! 11%, or 8 billion rubles. (Fig. 3). roalloys plant. In 2009 over 600 million ru! In 2009 in Kuzbass three new collieries bles were invested in development of manga! were put into operation: UG Yuznhaya (Ke! nese deposit Selezen in Kuzbass. Yaya oil! merovskiy District), UG Baikaimskaya (Be! refinery construction is underway. The project lovskiy District) and UG Taldinskaya –Yuzh! cost is 11 billion rubles. naya (Novokuznetskiy District). Commercial extraction of coal bed meth! Two coal preparation plants were built: ane (to be done jointly with Gazprom com! Barzass Partnership (Kemerovskiy District) pany). The total amount of investments in the

Fig. 1. Growth rate of investments into the fixed capital

15 The implementation of promising investment projects

Fig. 2. Investments by sector, billion RUR

project makes 85 billion rubles. It is becom! northwestern Siberia. The extraction volume ing a new gas and coal industry in the Russian by this time will make 4 billion cubic meters fuel and energy sector. As a whole, the meth! of gas. Further expansion is expected to ane reserves in Kuzbass are estimated to be amount to 20!21 billion cubic meters of gas. 13 trillion cubic meters which is comparable From the Kemerovo Region the gas will be to the reserves of one of the world’s largest delivered to Western Siberia southern areas. gas deposit in Urengoy, Russia. This meth! As a part of long!term development of Sibe! ane resource estimate covers the depth of rian Federal Okrug the coal!bed methane 1800!2000 meters. The bigger depths of coal extraction project including its further con! field have the long!term potential of approx! version (motor fuel, electric power) is yet imately 20 trillion cubic meters of gas. Such another factor of development of the energy amount of reserves ensures possibility of the system. large!scale methane extraction in Kuzbass as The launch of state!of!the!art hi!tech pro! a stand!alone mineral resource At present, duction of mullite and mullite compounds as seven exploratory wells ensure a daily output well as some other marketable by!products, all of 12,000 cubic meters of methane, the near based on gold!quartz!topaz “Kopna” deposit term outlook being 100,000 cubic meters. (Guryevskiy District). The number of wells will gradually increase Ore reserves, up to the surface level, to 1,500. By year 2020 coal gas should com! amount to 180 million tons. It includes more pletely replace supply of natural gas current! than 30 million tons, or 96% of world’s avail! ly delivered to Kuzbass from deposits of the able reserves of topaz (not gemstone variety).

The solution of acute Effective symbiosis local problems by of coal and gas means of imple- menting investment project “Commercial Diversification of economy: creation Securing safety of min- Gasification of coal-bed methane of new economic activities regarding ers’ work by decon- rural and suburban extraction” capital investments, turnovers and tamination of the fu- settlements. levels of profit comparable to coal in- ture coal deposits: the dustry; development of coal bed gas sector will "prepare" methane extraction in Prokopievsk coal seams for the sub- region will enable solving employ- sequent safe coal ex- ment problem for redundant miners traction work by min- from closed UG mines in Prokopievsk ers. monocompany town.

16 Kemerovo Region Investment Profile

On February, 12th, 2010 President Dmitry Medvedev, while in Kuzbass, formally approved the commencement of commercial coal bed methane extraction in Taldinskiy Coal Fields. The Russian fuel and energy industry acquired a new sub-sector – gas and coal

The estimated cost of the deposit is 20 billion ing national projects at the local level – begin! dollars. ning from the planning phase up to the phases The project aims at producing high! of daily monitoring and control. quality pure mullite at low cost to be used The satellite town is located 8 kilometers instead or as a way of upgrading the majori! away from the city of Kemerovo. In 2008, it ty of existing refractory materials. It is ex! was formally absorbed into Kemerovo pected that the “Kopna” deposit!based com! boundaries. Total area – 1,615 hectares, of pany products can have 15% share of the which: 41% is allotted for homes, and 59% is world market of refractories. During the intended for sports and recreation zones with project implementation phase it is expected special town!planning considerations for the to create more than 200 highly skilled jobs protection of environment. The applied sys! and several facilities to process the deposit- tem of urban zoning takes into account the by!products. existing international standards and best prac! Building a satellite town Lesnaya Polyana tices. (Forest Glade) near Kemerovo. This is one of The population outlook is 35,000. The to! nine pilot programs of integrated development tal expected residential space exceeds of the Russian Federation under the auspices 1.1 million square meters. Young families and of the national high priority project “Afford! the families employed in the public!sector are able and Comfortable Housing ! to the citi! offered units in the apartment buildings (two zens of Russia”. Lesnaya Polyana project ex! and four!storied houses) (unit areas totaling emplifies a systemic approach to implement! 40 to 60 square meters). The families of mod!

Fig. 3 Investment by form of ownership, billion rubles

17 The implementation of promising investment projects

The concept of erate means are offered townhouses of 90 Initially, the components parts for assem! building a satellite - square meters floor space. The individuals with bly of HYUNDAI buses and trucks will be town entails higher income can buy detached homes rang! delivered from the Republic of Korea. In 2015 creation of condi- ing from 120 to 300 square meters with some the goal is to manufacture at least 50% of the tions for comfort- adjacent land. components parts at Kuzbass engineering fa! able residence. On the one hand, the project focuses on cilities. This will help diversify the regional Education, public the maximum reduction of housing costs by economy dominated by the coal industry, health services, means of using the most cost!effective hous! where, historically, engineering is focused on culture, sports, ing practices, using federal budget funds for the sectoral needs. housing and utility creation of social infrastructure and utilities, Upgrade of production facilities at Yurga services should all and wise land use planning; on the other hand, ferroalloy plant. In January 2010, Yurga fer! meet needs of a provision of comfortable living conditions roalloy plant (a part of Kuznetsk Ferroalloys modern city dweller with a key focus on durability, comfort and company) commissioned a new furnace. environmental friendliness. Nearly 410 million rubles was spent to do Car assembly plant KuzbassAuto, Leninsk! the entire upgrade. The new unit is equipped Kuznetskiy District. with a unique system of automated process In April, 2010 KuzbassAvto plant was control for smelting ferrosilicon. A daily ca! commissioned in the Kemerovo Region. It pacity of the new furnace is 60 tons of ferro! belongs to MarrTEK company group. The silicon. This is 29% higher than the produc! plant assembles HYUNDAI buses and trucks tivity of the existing furnaces. Experts say that under Russian brand KUZBASs. the new furnace will increase the company’s Initially the plant will produce buses for share in the ferrosilicon sector in Russia up urban, suburban and intercity service. The to 65%. In 2010!2011 two more up!to!date plan is also to launch the assembly of trucks. furnaces will be launched. It will double the Until the end of 2010 the plant will produce output of ferrosilicon in Yurga plant (bring! up to 1,000 motor vehicles: 700 buses and ing it up to 80,000 tons a year). At the same 300 trucks. In year 2011 it is expected to time, the number of jobs at the plant will grow double the output up to 2,200 vehicles. In to exceed a thousand people. 2014!2015 KuzbassAvto should achieve the Creating power engineering coal cluster design capacity of 2,000 buses and 2,000 Seraphimovsky (PECC) with deep coal con! trucks per year. The plant also intends to version. The project incorporates construc! build up the production capacity, which tion of coal mines in Seraphimovsky section would diversify the range and increase the of Ushakovsk coal deposit, construction of annual output up to 10,000 vehicles. The the coal enrichment plant with a coal prepa! plant second phase commissioning is ex! ration complex for PECC, construction of pected before 2013 end. PECC for deep coal conversion, as well as The target market for KuzbassAvto is the creation of the required engineering and Russian Federation. transportation infrastructure. The expected Total car assembly project investment design capacity for output products by type: amounts to 420 million rubles. Estimated petrol AI!95 – 594,200 a year; coal of G, GL, total investment for years 2011!2014 makes GZHO (enriched concentrate) grades – 1.4 billion rubles. 5.7 million tons per year; propane!butane

18 Kemerovo Region Investment Profile

mixture (LPG ) ! 59,400 tons per year; tech! centers, and development of transport and nical hydrogen ! 41.3 million cubic meters forwarding companies in Leninsk!Kuz! per year. netskiy. The basic precondition for inclu! The implementation Commissioning this industrial complex sion of the city in the agglomeration is avail! of pilot project will enable: utilizing low!quality coals, wash! ability of the high speed road. Currently, Seraphimovsky is ing coal wastes thus directing more resourc! the construction of road Leninsk!Kuz! one of the key areas es into the economy; obtaining marketable netskiy ! Kemerovo is underway in of innovation products for use in the region less the trans! Kuzbass. The length of the future road is development and port costs, which are inevitable when export! 24.6 kilometers. The road will include parts upgrade of the ing run of mine coals; increasing the yield ! of the first and second category roads. The economy of the up to 60% per ton of coal compared to its new road will improve road throughput ca! Kemerovo Region direct combustion; reducing environmental pacity reducing travel time to Kemerovo and the entire coal costs. by half (down to 30!40 minutes). The con! mining sector of The company plans to achieve the design struction of this stretch of road in 2010! Russia where more capacity in 2019, the total project cost being 2012 will be funded from the regional bud! than 20% of world’s 61.7 billion rubles. After achieving full ca! get in the amount of 3.5 billion rubles. proven coal reserves pacity the plant will generate 3,139 new jobs Construction of the Regional Perinatal are located. Based on and provide conditions for preservation of Center (Kemerovo). It will be a custom!de! the implementation more than 10,000 jobs at the existing region! signed facility, its overall cost being 2.47 bil! of this project and al enterprises. lion rubles. The new facility will generate 340 the set of the design Construction of Leninsk!Kuznetsk – Ke! new jobs, enabling significant reduction of documentation it merovo road. The Strategy of the socio!eco! infant mortality and improve the quality med! will be possible to nomic development of the Kemerovo Region ical care for mothers and newborns. In 2008! develop similar till 2025 envisages formation of bipolar ag! 2009, this project received 1.17 billion ru! power engineering glomeration, the centerpiece of which will bles worth of funding. The building is nearly systems in other coal be Belovo and Leninsk! Kuznetskiy with pro! complete with engineering and finishing work mines of the Ke- duction and logistics functions prevailing. currently under way, and medical equipment merovo Region Therefore, Kemerovo agglomeration will in! worth 120 million rubles purchased and in! clude another monocompany municipality ! stalled. Leninsk!Kuznetskiy, which decision will par! Construction of skiing tourist complex tially address the issue of this city future de! Sheregesh in Tashtagol, the largest one east of velopment. the Ural Mountains. The Project of Development of Kuzbass During the past six years Sheregesh faced agglomeration envisages accelerated devel! more than fivefold increase of tourist inflow: opment of transport and logistics infra! from 42,000 to 240,000 tourists. The con! structure and construction of storage ware! struction of ski resort facilities on Mountain housing, transshipment facilities, service Zelenaya (Green) is in progress. Since the

The photo shows: KuzbassAvto Plant was commissioned in April 2010 in the Kemerovo Region. The company belongs to MarrTEK group of companies. The plant assembles HYUNDAI buses and trucks under Russian brand KUZBASs

19 The implementation of promising investment projects

The development of beginning of construction 91 various assets Outlooks winter sports will were commissioned including 42 hotels able In 2010 Kuzbass coal sector is expected to most effectively to simultaneously accommodate more than receive 33.5 billion rubles worth of investments. address the goal of 2,000 tourists; 11 service facilities, 49 cafes It is planned to build and commission another exploring natural and restaurants, 4 entertainment centers, and six up!to!date coal!mining enterprises: four OC and recreational six parking lots for 1,800 vehicles. Today mines and two UG mines with a total produc! potential of the Sheregesh is a recreational area of the inter! tion capacity of 8.8 million tons per year. Those region to its fullest. national level. are Raspadskaya!Koksovaya UG Mine (Mezh! A particular focus is Construction of the Regional Centre of durechensk), Inskaya UG/OC mine (Be! on developing youth skiing and snowboard on Mountain Tumannaya lovskiy District), Cheremnova and Kuprinskiy and children's (Foggy) in Tashtagolskiy District. It is the cen! OC mines (Prokopyevskiy District), Novo! amateur sports and ter where it is intended to train a younger bachatskiy!2 and Karakanskiy ! Zapadny OC tourism in the generation of Russian skiers and snowboard! mines (Belovskiy District). The said projects Kemerovo Region ers. The ski runs have already been arranged are expected to create more than 2,300 new including some sports facilities and ski lifts. jobs. Construction of a domestic solid waste This will enable Kuzbass coal sector re! dump. turning to pre!crisis coal output levels ! up to In 2009, this regional investment project 185 million tons in 2010, processing more under the name of “Poligon TBO Novokuz! than 70% of coal at coal preparation plants, netsk, Markino” was supported by the RF and also increasing labor productivity in the Government. As a way of its implementation sector by 3%. regarding creation a transport infrastructure The upgrade of the regional economy in – access road to the waste dump ! the RF Kuzbass goes along with enhancement of so! Investment Fund allocated funds totaling cial infrastructure: with housing construction 212 million rubles (on co!funding terms). A on the rise, the upgrade of health and educa! similar project is expected to be implement! tion facilities in progress, and new recreation! ed in Kemerovo. al facilities appearing.

20 Kemerovo Region Investment Profile

21 The implementation of long range investment projects

Regional investment projects of Kemerovo Region included in "Strategy of Siberia - 2020"

¹Project Name Project Cost Investors (billion rubles) 1. Construction of oil refinery 37.0 ZAO NefteHimServis in Yaya area 2. Coal-bed methane extraction 57.31 Gazprom Dobycha Kuznetsk from priority areas in Kuzbass 3. Launching production of mullite 66.0 ZAO NPO Urskoe and mullite compounds as well as some other marketable by-products 4. The development of manganese resources 1.44 Management Company in Kuzbass (Selezen deposit) OOO UK Siberian Mining and Metallurgical Company owned by ÎÎÎ Regionstroy 5. Creating power engineering 61.73 ZAO Tehnoparkinvest- coal cluster (PECC) Kuzbass Seraphimovsky with deep coal conversion 6. Launching industrial pilot 1.08 OAO Promgazenergo facility for underground coal gasification to produce electrical and thermal energy in 7. Building a hi-tech facility 1.75 ZAO AFK to produce large size birch plywood in Anzhero- Sudzhensk 8. Building inter-regional road 14.00 GU KO Kuzbass Novosibirsk - Leninsk-Kuznetskiy- road directorate Kemerovo - Yurga (75 km leg) 9. Construction of Lesnaya Polyana (Forest Glade) 52.00 OOO Promstroy TP satellite town near Kemerovo 10. Construction of residential facility 15.00 ZAO Yuzhkuzbasstroy Novy Gorod (New Town) in Novokuznetsk 11. Construction of Uchulensk Cement Plant 7.91 OOO UK Siberian Mining Metallurgical Company 12. Construction of Yashkino cement plant 8.85 OAO Holding company Siberian cement 13. Construction of the Regional Perinatal 2.40 Administration of the Center Kemerovo Region co-financed by the federal budget 14. Sheregesh Tourist Complex 3.88 OOO Restfor in Tashtagolskiy District of the Kemerovo Region

22 Kemerovo Region Investment Profile

¹Project Name Project Cost Investors (billion rubles) 15. Skiing tourist complex 1.41 OOO Tanai Tanai 16. Launching production of geosynthetic 0.87 OAO Orton materials at KOAO Orton 17. Refurbishment of OOO Yurga 7.0 OOO Yurga Engineering Company with Engineering Company the purpose of manufacturing mining equipment and development a range of new engineering products 18. Construction of deep sewerage 9.16 Proposed by manifold in Kemerovo OAO Severo-Kuzbasskaya Power Company. The investor has not been identified 19. Launching foundry operations to 21.9 VEB Tcheck-SU.VK produce manganese ferroalloys 20. Launching development of copper 7.75 OOO MGK Shormed deposit in Tashtagolskiy District 21. Construction of the plant for deep 16.00 ZAO HC SDS coal conversion (semi-coke, producer gas), Prokopyevsk 22. Construction and operating a power 5.68 ZAO Karbonica engineering plant to produce semi-coke, electrical and the thermal energy (Leninsk-Kuznetskiy) 23. Construction of the coal fired thermal power plant 32.00 OOO UGMK -Holding with 500 MW capacity near Novokuznetsk 24. Expansion of Kuznetsk CHP at the expense 9.00 OAO SUEK of two gas turbine units with total capacity of 280 MW 25. Construction of 500 kV Kuzbass 7.00 OAO Federal Power substation Grid Company EES 26. Construction of additional rail bridges 10.00 Investors - to be identified across the Tom River at Erunakovo - Bardino, Karlyk - Tomusinskaya locations, reconstruction of the tunnel by means of adding second track at Kuregesh - Karlyk R/W district 27. Launching fast speed 1.80 Investors - to be identified passenger service at Novosibirsk-Tomsk-Taiga line 28. Building the state-of-the-art-facility 1.29 ZAO Kemerovo agrochemical to produce next-generation organic and mineral plant VIKA, GK Rusnano fertilizer, capacity- 50K tons per year (Kemerovo)

23 State support in the Kemerovo Region

State support of investment, innovation and manufacturing in the Kemerovo Region

here is a Council for investment and Law of the Kemerovo Region dated innovation at the Governor of the Ke! November 26, 2008 No 102!0Z “On state Tmerovo Region in Kuzbass, which support of investment, innovative and indus! deals with the development and state sup! trial activities in the Kemerovo Region”; port of investments and innovations in the Law of the Kemerovo Region dated Region. July 2, 2008 No 55!OZ “On technoparks The Council, chaired by the Governor, in the Kemerovo Region”; also includes Deputy Governors, heads of Law of the Kemerovo Region dated executive agencies, representatives of the July 2, 2008 No 66!OZ “On the policy of Council of People’s Deputies of the Ke! innovations in the Kemerovo Region”. merovo Region, representatives of the tax The laws of the Kemerovo Region iden! office, customs, business and science. tifying specific forms of state support: The regional targeted programs imple! Law of the Kemerovo Region dated mented to support the investment and inno! of January 28th, 2010 No 5!OZ “On tax vation activities: relief for the residents of technoparks and in! long!term term targeted program vestors engaged in coal!bed natural gas (meth! “Increasing investment appeal of the Ke! ane) extraction in the Kemerovo Region”; merovo Region in 2008 – 2012”; Law of the Kemerovo Region dated long!term targeted program “Devel! November 26, 2008 No 100!OZ “On ad! opment of innovations in the Kemerovo Re! ditional tax relief for some groups of tax! gion” in 2008 ! 2012. payers”; The legal framework of the Kemerovo Law of the Kemerovo Region dated Region regulating investment and innova! November 26, 2008 No 101!OZ “On tax tion: relief for the entities of investment, inno! Law of the Kemerovo Region dated vation and manufacturing, management July 8th, 2010 No 87!OZ “On Favoured companies of technoparks, and residents Economic Zones”; of technoparks”.

Forms of state support

Entities eligible for state support Forms of state support

INVESTMENT ENTITIES 1) determining the size of incentives on taxes and duties within the scope of authority of the RF subjects; 2) modifying the period of paying of taxes and duties in the form of deferred payments, installment plans , investment tax credits in accordance with the laws of the Kemerovo Region; 3) provision of the legal framework of the state guarantees in accordance with the RF laws and the Kemerovo Region as a security of investor obligations arising out of implementation of priority investment projects; 4) provision of partial subsidies out of regional budget for the bank loans interest rate with reference to the loans obtained by the investment entities; 5) The Kemerovo Region acts as share!holder in the open joint!stock companies; 6) provision of non!financial measures of state support to investment entities, including institutional, information and advisory measures; 7) development and (or) expert assessment of priority investment projects, on condition that the funds for these purposes have been appropriately allocated in accordance with the law on the Kemerovo Region budget.

24 Kemerovo Region Investment Profile

Entities eligible for state support Forms of state support

INNOVATION 1) providing, in accordance with the RF and the Kemerovo Region laws, the state ENTITY guarantees of the Kemerovo Region as a security for innovator obligations arising out of implementation of priority innovative projects; 2) determining the size of incentives on taxes and duties within the scope of authority of the RF subjects; 3) placement of orders for R&D, development work, innovative products and expert assessment services; 4) provision of non!financial measures of state support, including provision of organizational, reference and information and advisory services; 5) providing assistance in developing the infrastructure for innovations; 6) the Kemerovo Region acting as share!holder in the open joint!stock companies; 7) development and (or) expert assessment of priority innovative projects, on condition that the funds for these purposes has been appropriately allocated as per the law on the Kemerovo Region budget.

MANUFACTURERS 1) determining the size of incentives on taxes and duties within the scope of authority of the RF subjects; 2) modifying the period of paying of taxes and duties in the form of deferred payments, installment plans, investment tax credits within the scope of authority of the RF subjects in accordance with the laws of the Kemerovo Region; 3) provision of non!financial measures of state support, including provision of organizational, reference and advisory service.

TAXPAYERS ENGAGED IN 1) income tax reduction from 18 down to 13.5% in 2010. ACTIVITIES IDENTIFIED IN THE REGIONAL LAW № 100!OZ DATED December 26th, 2008 (the share of earnings received from the said activities – not less than 80% of the total earnings)

TECHNOPARK RESIDENTS 1) determining the size of incentives on taxes and duties within the scope of authority provided for the RF subjects and as appropriate by the laws of the Russian Federation and the Kemerovo Region; 2) modifying the period of paying of taxes and duties in the form of deferred payments, installment plans, investment tax credits within the scope of authority of the RF subjects in accordance with the laws of the Kemerovo Region; 3) provision in accordance with the existing law of the state guarantees of the Kemerovo Region as a security for obligations of technopark residents arising out of implementation of innovative programs and projects; 4) partial subsidies provided out of regional budget for the bank loans interest rates with reference to the loans obtained by the technopark residents, transfer of real estate owned by the Kemerovo Region to free temporary use, as appropriate by the RF laws; 5) transfer to free temporary use of the real property owned by the Kemerovo Region in accordance with the legislation of the Russian Federation.

25 State support in the Kemerovo Region

The procedure of providing state support to investment, innovation entities and manufacturers

*AKO - Administration of the Kemerovo Region

26 Kemerovo Region Investment Profile

Tax relief on regional taxes

Corporate profits tax – reduction Corporate property tax – from 18 down to 13.5% 100% exemption

Deferrals, installment payments, tax credit on regional taxes

Transport tax Corporate Property Tax

Investment tax credit terms – 1/4 of the CBR refinancing rate. Term – 5 years max

Terms for granting tax relief Recipient Terms for granting tax relief (for organizations mentioned in the Organizations Doing business in the sectors stipulated by the law ! 25 types of activities Law of the Kemerovo registered in the according to the Russian National Classifier of Economic Activities (OKVED). Region No 100-OZ) Kemerovo Region The share of earnings proceeds received from being engaged in the said activities – not less than 80% of the total revenue.

Recipient Terms for granting tax relief Terms for granting tax relief Investment (for organizations entities Registration with the List of projects of the Kemerovo Region (for residents of technoparks ! Registration in the Register of technoparks of the Kemerovo mentioned in the Innovation Region. Law of the Kemerovo entities The share of earnings received during the project – not less than 70% of total Region No 101-OZ) earnings of the company. Technopark The share of the fixed assets used towards the project implementation — not Residents less than 70% of total fixed assets.

Manufacturers To be engaged in the activities outlined in Law No 102!OZ (9(nine) activities according to OKVED). Registration with the List of the Kemerovo Region manufacturers. The share of earnings received from the said activity ! not less than 70% of the total company earnings. The share of the fixed assets used towards the project implementation — not less than 70% of total fixed assets.

Technopark managing Inclusion in the Register of technoparks of the Kemerovo Region. companies

27 28 Kemerovo Region Investment Profile

Changing the economic pattern of the Kemerovo Region to support innovations

The Kemerovo Region strategy (as well as the concept of RF long-term socio-economic development) envisages a no alternative path of development of the innovation economy.

nnovative development includes a range Legal framework for innovations: of measures to create an economy based Law of the Kemerovo Region dated Jan! Ion the upgraded traditional sectors, a well uary 28th, 2010 No 5!OZ "On tax relief for developed transport infrastructure and the residents of technoparks and investors engaged "new economy" – “Knowledge!based Econ! in coal!bed natural gas (methane) extraction omy”. in the Kemerovo Region coal deposits”. In the Kemerovo Region the upgrade of Law of the Kemerovo Region dated on traditional sectors of the economy is perceived November 26, 2008 No 102!OZ “On state sup! as a mandatory prerequisite for effective in! port of investment, innovation and manufac! novative development. turing activities in the Kemerovo Region”. Kuzbass possesses the reserve for the up! Law of the Kemerovo Region dated No! Kuzbass applies an grade of the traditional sectors of economy. vember 26, 2008 No 101!OZ “On tax relief for integrated approach Since the backbone of the GRP are coal and the entities of investment, innovative and man! to innovative steel sectors it is where we can get the largest ufacturing activities, management companies economy develop- added value. It is where the main reserves for of technoparks, and technopark residents”. ment, which takes upgrading are located. Law of the Kemerovo Region dated 2 the shape of effi- Kuzbass implements an integrated ap! July 2008 No 55!OZ “On Technoparks in ciently working proach in developing innovative econo! the Kemerovo Region”. regional system of my, which is translated into formation of Law of the Kemerovo Region dated 2 innovations an efficient regional system of innova! July 2008 No 66!OZ “On the innovation tions. policy of the Kemerovo Region”.

The upgrade of existing enterprises in Kuzbass should improve the following indicators

Use of energy efficient Better productivity and resource efficient technologies

Enhanced labor safety Reduced cost (which is especially vital of finished goods for the coal sector)

29 Changing the economic pattern of the Kemerovo Region to support innovations

The infrastructure available enterprises whose innovative projects are al! in the Kemerovo Region for ready in the pipeline received the status of promoting innovations Kuzbass Technopark residents. Kuzbass Technopark Attracting investments by OAO Kuzbass In order to boost the process of develop! Technopark: ing the effective innovation system in the re! in February 2009 the Kemerovo Re! gion, Kuzbass Technopark was launched in gion signed an agreement with OAO Rus! 2007. sian Venture Company (RVC) on develop! In December 2007 the Kemerovo Region ment of venture investment industry. In was included in the RF Government program March 2010 OAO Kuzbass Technopark be! on development of technoparks in the hi!tech came a RVC venture partner. The process of sector which entailed 300 million rubles registration of the seed investment fund is worth of federal funding for 2008!2010 on under way; co!financing terms. in March 2009 the Kemerovo Region June 2008 was the beginning of the prac! signed an agreement with OAO Ingosstrakh! tical phase of Kuzbass technopark for launch! investment to facilitate creation of the ven! ing the process of innovations: an expert ture capital industry in the Kemerovo Re! council was formed; the procedure was adopt! gion. OAO Ingosstrakh!investments made a ed for searching, selection and assessment of decision to participate in the formation of projects. As of March 1, 2010 the council re! the seed fund worth of 25 million rubles to viewed 59 applications, with 56 of them be! invest in Kuzbass Technopark projects; ing recommended for implementation, and in July 2009 the Kemerovo Region 20 projects being implemented. A standard signed an agreement with the Foundation for set of documents was developed and approved Assistance to Small Innovative Enterprises for the project applicants to receive the status in the sci!tech sector (Bortnik Fund). 650025, of a Kuzbass technopark resident. The tech! OAO Kuzbass Technopark received the sta! Kemerovo, nopark was involved in setting up six joint tus of the official representative of the Fund, UL. Volodarskoko, 16 ventures to implement innovative projects currently doing selection of projects under Ph: (3842) 36-53-16 with three more companies being in the stage programs U.M.N.I.K and START. E-mail: of formation. In May 2010 there was the first phase of technopark Design and construction work is in innovative projects selection among students, @technopark42.ru progress at Kuzbass technopark sites: No1 graduate students and young scientists who www.technopark42.ru area master plan was approved, power distri! applied in U.M.N.I.K ! 10 Fund (in Sep! bution station RP!10kV and the cable rout! tember there will be the second and the final ing were completed, construction of business selection phase). incubator occupying 9,500 square meters was The young researchers whose innovative commenced on site No1, the project cost be! projects were given a positive opinion from ing 400 million rubles with a commissioning the Youth Expert Council of Kuzbass Tech! date in 2011. nopark took part in the selection process. On July 13, 2009 the interdepartmental Following the selection 7(seven) young re! commission of the RF government formally searchers received financial support for im! approved the efforts made by the Kemerovo plementation of innovative projects under Region on establishing technopark and de! U.M.N.I.K!10 program; cided to continue full!scale funding for the Kemerovo Region and GK Rus! Kuzbass Technopark among other five parks nano are currently finalizing an agreement (out of nine). On the instruction of the Min! between the Kemerovo Region and GK Rus! istry a business plan for OAO Kuzbass Tech! nano, selecting projects for co!financing, and nopark was prepared for years 2009!2014. preparing applications to be submitted to In February 2010, the RF government inter! GK Rusnano; departmental commission confirmed the par! the Region established cooperation ticipation of the Kemerovo Region the RF with the Union of Business Angels of Russia Government High!Tech Program up to 2014. (SBAR) to invest into innovative projects. The Today Kuzbass Technopark acts as the private owners have been approached to in! innovation economy driver: more than 100 volve them into cooperation with the region! innovative projects are in the data bank of the al investment fund, some of them already ex! technopark, as of 1 March 2010. Twenty two pressing their consent.

30 Kemerovo Region Investment Profile

Innovative projects of the Kemerovo Region

*Kuzbass Technopark resident Project Title Project originators Overall project cost, million rubles 1. Design and production of the ÎÀÎ Kemerovo pilot plant 30.00 next level devices for respiratory of safety devices, Kemerovo protection of miners and rescuers with prolonged action using compressed oxygen 2. Manufacture of bioprostheses *ZAO Neocor, Kemerovo 400.50 for Cardiovascular Surgery 3. Extraction and disposal of coal bed methane ANO Uglemetan, Kemerovo 718.90 in Kemerovo Region 4. Design and manufacture OOO Yurga Engneering Plant, 6998.34 of the state of the art mining Yurga equipment 5. Design, production and implementation OOO Kuzbasslegprom, Kemerovo 6.74 in industry enterprises of special purpose suits “Elektroliznik” with removable overlays for pot and anode operators that work with electrolysers with lateral current supply 6. Upgrading of industrial and residential boiler ZAO Kuzbassenergosnabkomplekt, 2079.00 houses using steam and screw units Kemerovo to utilize steam 7. Technology of extra-deep cleaning and *OOO Center of Molecular 18.80 regeneration of dielectric liquids Technologies, Kemerovo 8. Design, upgrade and launching *ÎÎÎ Kuzbass Regional 120.00 production of safety monitors Centre of occupational safety, for underground mining Kemerovo 9. Recycling of liquid wastes of coke OOO Ekomash, Novokuznetsk 4.50 production to produce liquid composite fuel to be used in steel plant heating units 10. Recycling of old liquid OOO Ekomash, Novokuznetsk 39.43 and solid wastes from coke production to produce sintering softener used as a bonding agent in coal charge mix 11. Launched production of synthetic *OOO Ecological Regional 56.35 fluxing agents for the steel industry Center, Novokuznetsk using aluminum production CFC waste inputs 12. Plasma unit for decontamination Kemerovo Scientific 29.00 and disposal of medical technology Center of SB RAS, Kemerovo wastes 13. Automated farm to grow OOO Design Construction 36.70 seedling with closed Company, Kemerovo root system 14. Design and construction ZAO NPP Sibekotehnika, 148.00 of power engineering unit Novokuznetsk (mini – thermal station) to work on coal water suspension to generate electrical and (or) thermal energy 15. Disposal of old waste obtained *OOO Ekomash NK, 500.00 by magnetic separation of ores Novokuznetsk at agglomeration plants 16. Development and pilot production OAO VostNIGRI, 3.30 of devices for blowing ventilation Novokuznetsk of cul-de-sacs in coal, ore and polymetallic mines

31 Changing the economic pattern of the Kemerovo Region to support innovations

Project Title Project originators Overall project cost, million rubles 17. New techniques in the field *OOO Modern Medical 2.55 of prevention, treatment of chronic Technology Clinic, Kemerovo diseases and rehabilitation of patients of various age groups: the current conservative treatment and rehabilitation of children with pathology of lymph pharyngeal opening, geroprotective therapy for rehabilitation of elderly patients 18. Developing and piloting the process and Siberian State Industrial University, 100.00 prototyping the jetting emulsion reactor for Novokuznetsk testing new technologies of obtaining charge billets and profiled casting, manganese and titanium alloys, as well as gasification of coal to obtain synthesis gas and extraction iron from ash 19. Launching mass production *OOO EvroElement, 18.13 of filter elements for various Novokuznetsk purposes 20.Actuating device of the coal shearer OOO Initsiativa, Ossinniki 6.00 21. Launching the batch production OOO Novokuznetsk Boiler Plant, 20.00 of self-contained heating systems Novokuznetsk of the next generation 22. Creating a complex that uses OOO NPK INKOMP, 5600.00 electrical power technology to process Novokuznetsk brown coals 23. Launching processing facility *OOO Polymer-Vector, Belovo 18.00 to utilize ammonium nitrate polymer packaging to make marketable products (complete with wastewater recycling line) 24. Creating high-tech industrial *ZAO NPO Urskoe, Kemerovo 66000.00 complex to develop gold-quartz-topaz deposit Kopna 25. Setting up a Regional Training Center OAO OUK YuzhKuzbassUgol, 81.75 for Occupational Safety, training Novokuznetsk and retraining of coal sector employees based on the Training Center of OAO OUK YuzhKuzbassUgol 26. Construction of the next generation greenhouse *OAO Sukhovskiy, 327.22 blocks for year-round cultivation of cucumbers Kemerovskiy District using light-induced intensive vegetable farming in Siberia 27. Launching a production facility *OOO KuzbassPromResurs, 293.80 for processing waste tires Kemerovo 28. Upgrading the thermal power ZAO Kemerovo pilot 30.00 stations with hot plants to heat plant of safety tools, the mine air and production Kemerovo facilities of a large volume 29. Creating power engineering coal cluster *ZAO Tehnoparkinvest-Kuzbass, 38676.41 Seraphimovsky with deep coal conversion Kemerovo (pilot power engineering complex) 30. Establishment of the center OOO EO Ekspertpromugol, 35.00 of geo-monitoring and optimization Novokuznetsk of technological modes of coal mining blocks at coal mines

32 Kemerovo Region Investment Profile

Project Title Project originators Overall project cost, million rubles 31. Launching batch production *OOO NPP ELEKOR, Kemerovo 7.50 of safe and modern electrical equipment for surface mining 32. Setting up a test center for explosive OAO NC VostNII, Kemerovo 52.47 materials, explosive devices and dust explosion protection 33. Launch of mass production *OOO Tema, Kemerovo 3.62 of thermoplastic compound floor tiles for animal farms factory premises 34. Developing the formula and production OOO Kuzbasslegprom, Kemerovo 129.73 process for making skin protective purifying and regenerating creams to address the specific adverse impacts experienced by coal miners’ skin 35. Implementing the process of growing OOO Frolov Farm, Kemerovo 88.48 onions using power and resource saving method based on drip irrigation under the climatic conditions of the Kemerovo Region 36. Setting up a series of enterprises OOO Frolov Farm , 250.00 for comprehensive handling of potatoes Kemerovo Food Institute, and other vegetables Kemerovo 37. Mass production of modular purification *OOO ECOS-S, Novokuznetsk 15.00 units to treat domestic, rainfall and industrial wastewater 38. Extraction of coal-bed methane in the *OOO Gazprom Dobycha Kuznetsk, 84855.72 priority areas in Kuzbass Kemerovo 39. Launching production of high-strength OOO Berezovskiy road 15.00 concrete products by means of vibratory building department, casting using crushed diabase rock sweepings Berezovskiy 40. Launching the experimental-industrial plant *OAO Promgaz-energo, Kisselevsk 1078.53 of underground coal gasification to generate electrical and thermal energy 41. Construction of the plant to produce OAO SUEK, Moscow 400.00 of silica brick on the basis of ash-slag-wastes of OAO Kuzbassenergo (TGK -12) 42. Adaptation of existing technologies for timber Sibirsky Les (Siberian forest), 7731.87 processing and wood board production to Kemerovo accommodate to specific nature of raw material inputs prevailing in the Kemerovo Region 43. Improving the quality of surface AGR Oil and Gas Services (CIS) Pty Ltd, 468.19 decontamination of mine fields in Kuzbass Melbourne, Australia 44. Introducing high-tech protective coatings OOO KTTSNIIST, Kemerovo 4.02 made of composite polymeric materials and metals 45. Launching commercial production OOO Expocenter, Kemerovo 0.85 of railway weigh plates to be used statically and in motion 46. Construction of solid waste recycling OOO EkoLend, Novokuznetsk 1171.54 facility in Novokuznetsk 47. Launching hi-tech recycling of waste OOO Ekoplastik, Novokuznetsk 12.67 PET è HD polyethylene 48. Launching production-cum-processing *OOO KuzbassStroyNedra, Belovo 357.19 facility for natural stone in

33 Changing the economic pattern of the Kemerovo Region to support innovations

Project Title Project originators Overall project cost, million rubles 49. The introduction of new poly-functional OOO ATAKTIKA, Tomsk 2.00 modifier - oxidized atactic polypropylene (OAPP) in the petrochemical and road maintenance and construction enterprises of Kemerovo Region 50.Launching production of devices OOO Akvelit, Tomsk 3.00 AquaVallis for microbiological after-purification of potable water in Kemerovo Region 51. Launching production of mine automation Design and Technological Institute 66.îî means to equip mines with of Computer Engineering of management information SibBranch of the RF Academy systems of Sciences, Novosibirsk 52. Launching production of up-to-date *OAO Kemerovo Experimental 65.22 multipurpose road machinery Mechanical Repair Plant, with equipment for spreading Kemerovo de-icing agents 53. Develop and implement the installation OOO NPO Vrzryvnoye Delo, 20.00 to produce emulsion explosives for Prokopievsk charging boreholes in underground conditions 54. Construction of solid waste recycling *OOO EkoLend-Kemerovo 779.72 facility in Kemerovo 55. Mass production of energy saving *OOO Siberian Center of 81.82 and safety glass for Kuzbass Glass-Novokuznetsk, and neighboring regions Novokuznetsk 56. Launching production of track OOO PROMSTROYMASH, 3.00 and idle rollers for undercarriage Novokuznetsk of crawler tractors T-25.01, T-35.01 57. Setting up the enterprise to OOO Vector – Innovatsii, Kemerovo 10.10 process rubber and plastic waste by closed pyrolysis 58. The introduction of autonomous systems OOO TPK AISiT, Ossiniki 2.00 of thermal and electrical energy supply using geothermal and solar energy 59. Launching production of high OOO Kuzbass Scarabei, 110.00 quality cardboard using waste paper Kemerovo inputs based on the existing company OOO Kuzbass Scarabei 60.Creation of a regional system of record OOO Quartzite, Altaisky Krai 8.70 keeping, collection and processing of secondary wastes containing precious metals

Construction of Kuzbass Technopark facilities (draft layout)

34 Kemerovo Region Investment Profile

INPTS “INNOTECH” vestments with “INNOTECH” and the Innovative Science!Based Production Administration of the Kemerovo Rural Center "INNOTECH" is a part of the re! District having been conferred with diplo! gional network of SME support in the field ma for developing the project “Science – of innovations. The Centre has been regis! government ! business cooperation mech! tered on the decision of the Council of Rec! anism”. Another project ! "Forming inno! tors of Kuzbass, and in accordance with the vation thinking skills and raising social Resolution of the Kemerovo Region Ad! awareness across the residents of Tyazhin! ministration No 123 dated 30.09.2002. The sky Rural District on the basis of imple! founders of the Center are: the Committee mentation of approved projects" complet! for State Property Management of the Ke! ed in 2009, was awarded a diploma of IN! merovo Region, Kuzbass State Technical TECH NP National Agency for Technolo! University, Kemerovo State University, Ke! gy Support to Business. merovo Branch of the Russian State Uni! It is involved in practical implementa! versity of Trade and Economics, Kemero! tion of an important task of ensuring the vo Technological Institute of Food indus! on!going interaction of the science!based try, Siberian State Industrial University, Ke! and educational community with Kuzbass merovo State Medical Academy. manufacturers under the auspices of “In! novation Needs” project. “Innovation Needs" Commercialization of the results At present, a group of companies is project was awarded of intellectual activities of scientists from forming an innovation consortium, includ! gold medals and universities and research organizations ing: OAO Coal Company Kuzbassrazre! special diplomas at V of the Kemerovo Region zugol, OAO West Siberian Metallurgical and VI Moscow Under the agreement of the Adminis! Plant (ZapSib), OAO Holding Company International Salon tration of Kemerovo Region and the Foun! Siberian Business Union (SDS). The new of Innovations and dation for Assistance to Small Innovative consortium is planning to meet technology Investments Ventures in sci!tech sector the Center co! demands under the international program ordinated and finalized nearly 60 applica! “Global Development Alliance” on the tions for such programs as START, DE! subject of "Innovations, power saving and VELOPMENT, U.M.N.I.K over the past improving environment for sustainable re! six years. Overall, during that period, the gional development". This project aims at programs implemented by the Fund on the addressing the critical issue of Kuzbass coal basis on research efforts of the academic and steel sector regarding the need to clean and research staff helped create 18 small up the environment using the available re! innovative enterprises in Kuzbass. This re! search data in the region. sulted in signing public contracts for R&D Currently, one of the core objectives is work totaling over 80 million rubles. Small fostering the process of establishing business businesses produce competitive, high tech! units on part of the public research and edu! nology products in the housing and utili! cational institutions, under Federal Law No ties sector, steel industry, food sector as well 217!FZ dated August 2nd, 2009, with a view as IT and biotechnology. of putting intellectual efforts to practical use. The key focus is on dissemination of the The first business of the kind was registered findings of scientific and innovative busi! jointly with Kemerovo State Medical Acade! ness development and informing them di! my named OOO Innovative Research and rectly into municipal development. In Production Enterprise Gematogistochrom. 2006, the project “Ensuring sustainable so! The core company product will be a new gen! cial and environmental development of eration of Russian hematological and histo! Kemerovskiy Rural District” based on im! logical fixatives and dyes for staining histo! plementing cost effective power saving tech! logical specimens for diagnostic purposes. nologies. The project deliverables were Several more small ventures are in the stage awarded with silver metal at VI Moscow of formation in such areas as agro!food tech! International Salon of Innovations and In! nologies, synthesis of new materials, and IT.

35 Changing the economic pattern of the Kemerovo Region to support innovations

Examples of small innovative enterprises of the Kemerovo Region, established under the auspices of the Foundation for Assistance to Small Innovative Ventures in the sci-tech sector

¹Company Types of products

1. OOO NPP Teplo, Launched production of efficient hot water boilers Kemerovo with scale free piping and half the fuel consumption compared to analogues. 2. OOO Regional Launched production of synthetic fluxing agents for Environmental Center, the steel industry, using aluminum production Novokuznetsk CFC waste as raw inputs. 3. OOO Firma Lena, Launched production of unique natural syrups using local vegetal Novokuznetsk resources enriched with microelements. 4. OOO INPF Impulse, Pilot production of automated mining early Kemerovo detection complex to prevent explosions in hazardous environments. 5. OOO SEVA , Early stage in practical application of the findings resulting Novokuznetsk from many years of fundamental and applied research in the field of the new generation natural iron-carbon composite materials based on the modified iron smelting process. 6. OOO SibTenzoServis Marketing stage for unique weighing system showing stable performance in adverse production and natural conditions.

Business!incubators brella organization for business support in! As an infrastructure organization to sup! frastructure organizations, scientific commu! port small and medium enterprises, business nity, and innovation support infrastructure. incubators can be of great importance in sup! The business incubator in Kemerovo in porting innovation activities of resident com! 2009 hosted four young innovative startup panies. A business incubator must be an um! businesses.

Small innovative enterprises in the Kemerovo Region produce competitive high technology products in the field of housing and utilities, industry, food industry, IT and biotechnology

36 Kemerovo Region Investment Profile

State support of small and medium-sized enterprises in the Kemerovo Region

Legal framework Law of the Kemerovo Region dated December 27th, 2007 No 187!OZ "On Develop! ment of Small and Medium Business”; Resolution of AKO Collegiate dated June 26th, 2007 No 167 "On approval of the long!term targeted program “Development of small and medium enterprises in the Kemero! vo Region for 2008!2012”. Regional Benefits 1. Reduction of tax rate by the factor of 3 for the small businesses operating under the simplified taxation system (from 15 to 5%). 2. Reduction of the regional tax rate component for some activities from 18% to 13.5%. 3. Providing tax relief for investment, innovation and production entities (property tax; income tax; deferred payment, instalment program, granting investment tax credit on region! al taxes). Regional measures of state support 1. Provision of grants for SMEs start!ups to establish their own business (the size of the grant out of the regional budget ! 300 thousand rubles max.). 2. Financing the part of the interest rate for the bank loans granted to SMEs and organi! zations belonging to the SME support infrastructure. 3. Financing the part of expenses on financial lease costs incurred under the lease agree! ments concluded by SMEs with leasing companies for the investment purpose. 4. Institutional development of SME support infrastructure. 5. Financing the part of costs incurred by the SMEs in relation to business!planning, expert assessment and consulting services regarding investment and innovation projects. 6. Providing grants to municipalities for implementing appropriately legislated SME development programs. 7. Implementing educational programs for SMEs. 8. Partial financing of manufacturing and innovative SMEs. 9. Partial financing of costs of connecting a new business to the power network. 10.Partial financing of SMEs engaged in the craft sector. 11. Promoting the products made by Kuzbass SME enterprises in the regional and inter! national markets (Euro Info Correspondence Centre). 12.Internet resource www.dprpko.ru (the official website of the Department of the con! sumer market and SME of the Kemerovo Region). 13.Creation of business incubators. 14.In!kind support.

37 State support of small and medium enterprises in the Kemerovo Region

Other support measures (State Fund of SME Support of the Kemerovo Region, other SME infrastructure organizations) 1. Offering soft loans to SMEs towards implementation of investment projects at 5% p.a. interest rate for 2 year term. 2. Offering soft loans for SME startups at 5% for 3 year term. 3. The Loan Guarantee Scheme. The Guarantee Fund issues loan guarantees (for up to 70% of the required collateral). 4. Development of business plans, providing advice, conducting expert assessment of investment and innovative projects. New support measures in force since 2010: 1. Partial financing of costs related to introduction of energy!saving technologies and devices. 2. Development and support of SMEs in the field of domestic tourism and incoming tourism: implementation of educational programs for small and medium enterprises on train! ing, retraining and advanced training of tourism personnel; partial financing of costs of SMEs related to promoting tourist products; partial financing of costs of SMEs engaged in procurement of the equipment for tourist facilities. 3. Support of small and medium!sized enterprises established by science!based and educational institutions: providing grants to SMEs established by science!based and educational institutions for the purpose of practical implementation of the results of intellectual activity; partial compensation of the costs incurred by SMEs established by science!based and educational institutions associated with product promotion (certification, advertising, etc.).

38 Kemerovo Region Investment Profile

Prioritizing SME activities in Kuzbass

39 State support of small and medium enterprises in the Kemerovo Region

Infrastructure of SME support

State Fund of SME Kuzbass Technopark 34 business support Business Support Six business incuba- Support of the Ke- (creates conditions for centers in all cities and Center for the Ke- tors (on-going support merovo Region (fi- the efficient knowledge districts of the Kemero- merovo Region (es- to the projects imple- nancial support (soft and technology ex- vo Region (creation of tablished to ensure mented by business in- loans) to SMEs, acting change between edu- pre-requisites for pro- the comprehensive in- cubator residents; pro- as pledger, and / or cational institutions, viding full range of ser- teraction between viding services to busi- guarantor for the - science-based and re- vice in all areas of SME the government, reg- nesses, development of ligations of SMEs and search and design insti- support at the munici- ulatory bodies, sci- multilevel infrastruc- infrastructural com- tutes, enterprises, facil- pal level) ence-based and edu- ture of business support panies itating creation and cational institutions, in the Kemerovo Re- growth of innovative chambers of com- gion, interaction with organizations) merce and industry, SME business support voluntary associa- organizations in the Ke- tions of entrepre- merovo Region) neurs, financial insti- tutions)

Euro Info Correspon- Public expert council SME Councils in Council for promoting 21 Municipal Funds for dence Centre (assis- on SME support in each city and munic- SME development in SME support (con- tance to SMEs in the Ke- the Kemerovo Re- ipality in the Ke- the Kemerovo Re- sulting services, grant- merovo Region in estab- gion (involving SMEs merovo Region (an- gion (analyzing imped- ing soft loans) lishing and developing and business support alyzing impediments iments to SME devel- business cooperation infrastructure compa- to SME development, opment, drafting pro- with their counterparts nies in participation in drafting proposals for posals for SME develop- from EU countries) the implementation of SME development, ment, development of state policy for SME de- identifying “areas of measures to reduce the velopment to include growth” for the mu- excessive interference conducting public ex- nicipalities, drafting of state bodies in the pert assessment of proposals for munici- business activities, bet- draft laws of the Ke- pal SME development ter access of entrepre- merovo Region regu- program) neurs to loans and lating SMEs and devel- leased assets, the devel- oping recommenda- opment of business tions for the bodies of support infrastructure) the executive in the Ke- merovo Region as re- garding prioritizing SME development)

40 Kemerovo Region Investment Profile

The new elements of infrastructure Business Support Centers

In 2009, business support centers were launched in all cities and rural Business Support districts of the Kemerovo Region operating as “one stop” shops. Center of the Kemerovo he main purpose of the above centers and other formal payments. They also can Region is the reduction in every way possible provide additional assistance in developing Kemerovo, Tin bureaucratic barriers while address! business plans and investment projects ! at Ul. Krasnaya, 4, ing economic and legal problems encoun! reduced prices. The fairly wide range of ser! (3842) 58-71-98 tered by SMEs. Specialist consultants accept vices of business support centers includes: applications and documents from entrepre! registration or closure of business obtaining neurs or citizens who express their wish to licenses, registration of land and property re! become entrepreneurs, and then collect all lations, coordination with the construction necessary approvals from various agencies. of the investment facility, as well as assistance All work is done as appropriate by the law in obtaining state, provincial and municipal within the set time frame and free of charge: grants and preparation of documents for par! the applicants will only need to pay state duty ticipation in competitions and grants.

Regional Representative Office of the European Information Correspondence Centre (EROEIC) in Russia

The purpose of EROEIC is providing assistance to SMEs in the Kemerovo Region in establishing and developing business cooperation “EROEIC with their counterparts from EU countries. Kemerovo”: Russia, 650000, he regional office of EROEIC was es! dar cone waste into unique patented material Kemerovo, tablished at INPTS INNOTEKH Kedroplast possessing medicinal properties; UL N. Ostrovskogo, T(Kemerovo), under an agreement OOO Impuls (Kemerovo) develop unique 32, office 444, signed by the regional governor Aman Tuleev software system for early detection and pre! Ph/Fax (3842) 36-93-03, and the GD of the Russian Agency for Small vention of explosions in coal mines); e-mail: innotech- and Medium Business Viktor Ermakov. OOO Dominant Trend (Kemerovo) ! pro! [email protected] EROEIC office in Kuzbass provides a full duces and markets food ingredients. www.euroinfocenter.ru range of support services in establishing con! The precondition for a company to be tacts with potential partners. In addition, each placed in the EROEIC project pipeline is the entrepreneur can obtain complete informa! credibility of the posted information and tion on the EU policy and programs on SME patent protection of the products promoted support, on EU and Russian legislation in by the business. the field of entrepreneurship and foreign eco! Therefore, the Euro Info Centre in Ke! nomic activities, quality standards and other merovo Region is one of the elements of requirements of EU towards goods and ser! the regional SME support infrastructure vices. focused on foreign trade activities. It fos! Currently, EROEIC regional office has ters setting up a common information en! already placed requests from four Kuzbass vironment for entrepreneurship in Russia, exporters: OOO Firma Lena (Novokuznetsk) – providing for active participation of local know!how based production of natural syr! entrepreneurs in EU programs and ups from berries and wild plants; projects aimed at promoting economic co! OOO SibTech (Kemerovo) – recycling ce! operation.

41 Investment projects implemented in the Kemerovo Region

Investment projects implemented in the Kemerovo Region

¹ Project Project Project Name originator Cost, million rubles Mineral Mining 1. Development of Antonovsky group Belokamenskoe Administration of 15000.00 quartzite deposit (Anzhero-Sudzhensk) Anzhero-Sudzhensk 2. Feasibility report for building Taybinskaya Mine OOO Invest-Uglesbyt 4455.10 (Kisselevsk) 3. Construction of Kostromovskaya UG mine ZAO Kostromovskaya UG mine 3565.00 (Leninsk-Kuznetskiy) 4. Construction of Tikhov MIne OAO Koks 8591.00 (Leninsk-Kuznetskiy) 5. The investment program for sustaining coal SUEK-Kuzbass, 3102.10 mining in 2009-2013 (Polysayevo) coal mine Polysaevskaya 6. Reconstruction of coal washery Sputnik OAO mine Zarechnaya 102.70 (Polysayevo) 7. Improving ventilation system for mine Zarechnaya OAO mine Zarechnaya 148.39 (Polysayevo) 8. Reconstruction of sewage treatment plant OAO mine Zarechnaya 51.58 for mine water (Polysayevo) 9. Opening up and preparation of reserves OAO mine Zarechnaya 943.60 of Inskoi-3 coal seam (Polysayevo) 10. Locomotive shed construction (Polysayevo) OAO mine Zarechnaya 50.88 11. Construction of Karakanskiy-Zapadny ZAO mine Belovskaya 2388.00 OC mine. 12. Building a high-angle separator OAO Kuzbass fuel company 570.00 (Belovsky District) 13. Industrial refurbishment of Karakanskiy-Yuzhny OAO Kuzbass fuel company 2594.80 and Vinogradovskiy OC mines (Belovskiy District) 14. Construction of parking and repair pits for OAO Kuzbass fuel company 150.00 large dump trucks (Belovskiy District) 15. Construction of UG mine by ZAO Razrez OOO UK Promuglesbyt 2244.00 (mine Signal) (Belovskiy District) 16. The program of investment for the OOO Novobachatskiy OC Mine 1136.66 coal mining company (Belovskiy District) 17. The program of investment for the coal mining OOO Novobachatskiy OC Mine 86.17 company, Novobachatskiy-2 section (Belovskiy District) 18. Construction and operation South Korean firm 6500.00 of Lapicheskaya Mine Langfeld Enterprizes Ltd. (Kemerovskiy District) 19. Construction of the 2-nd phase of ZAO Stroyservice 600.00 OOO JV Barzas Partnership (Kemerovskiy District). 2î. Reconstruction of Chertinskaya-Koksovaya OAO Belon 3025.00 mine (Belovo) 21. Acquisition of heading equipment to increase the OAO Belon 850.00 rate of advance in Chertinskaya-Yuznhaya Mine (Belovo). 22. The development of transport OAO Belon 28.00 and service network for Belon Group (Belovo)

42 Kemerovo Region Investment Profile

¹ Project Project Project Name originator Cost, million rubles 23. Sustaining and upgrading of the existing production OOO Mine Development 862.00 facilities of OOO Koksovaya Mine (Prokopyevsk) Department at Prokopievsk 24. Sustaining and upgrading of the existing production HC SDS-Ugol 687.00 facilities of OOO Mine Krasnogorskaya (Prokopyevsk) 25. Sustaining and upgrading of the existing production HC SDS-Ugol 596.20 facilities of OOO Voroshilova Mine (Prokopyevsk) 26. Sustaining and upgrading of the existing production HC SDS-Ugol 499.00 facilities of OOO Mine Ziminka (Prokopyevsk) 27. Sustaining and upgrading of the existing HC SDS-Ugol 443.00 production facilities of OOO Dzerzhinskiy Mine (Prokopyevsk) 28. Construction of crushing and screening OOO Kuzbasstroy 1389.00 plant to produce syenite (2.7 million cubic meters/year (Tashtagol District) 29. Development of Selezensky manganese OOO Management Company 679.29 ore deposit (Tashtagol District) SGMK 30. Expanding capacity of Itatsky OC mine ZAO HK SDS 250.00 (Tyazhinskiy District) 31. Construction of mine Sibirginskaya (2 nd Phase) OAO UK Yuzhny Kuzbass 7020.50 (Mezhdurechensk) 32. Construction of mine Butovskaya OAO Koks 6850.00 (Kemerovo) 33. Construction of mine Raspadskaya-Koksovaya ZAO Raspadskaya Coal 5711.00 (Mezhdurechensk) Company 34. Construction of 2-nd stage of UG coal mine OAO UK Yuzhny Kuzbass 4479.40 Olzherasskaya Novaya (Mezhdurechensk) 35. Acquisition of coal planer for developing OAO Coal Company 1511.10 Mine Pervomayskaya (Berezovskiy) Severny Kuzbass 36. Technical refurbishment of one mine section Central Processing 252.00 to launch G coal enrichment facility Plant OAO Berezovskaya (Berezovskiy) 37. Construction of sewage treatment plant Central Processing Plant 60.00 for the site runoff of the coal washery OAO Berezovskaya OAO Berezovskaya (Berezovskiy) 38. Expansion of facilities to process ROM coal Central Processing 200.00 up to 5.2 million tons per year (Berezovskiy) Plant OAO Berezovskaya 39. Construction of crushing and screening plant OAO Evrazruda 424.70 and the reconstruction of Karachkinskiy OC mine (Guryevskiy District) 40. Development of Bannovsky sand and gravel deposit OOO Bannovskiy quarry 100.00 (Krapivinskiy District) 41. Development of Berezovopeschany sand OOO Sibgeolit 100.00 and gravel deposit (Krapivinskiy District) 42. Sustaining coal mining output for OAO SUEK Kuzbass 986.85 Mine Taldinskaya-Zapadnaya-1 Mine Taldinskaya-Zapadnaya (Prokopyevskiy District)

43 Investment projects implemented in the Kemerovo Region

¹ Project Project Project Name originator Cost, million rubles Mineral Mining 43. Sustaining the existing output SUEK-Kuzbass 1047.43 of mine ¹ 7 of SUEK-Kuzbass coal mine ¹ 7 (Prokopyevskiy District) 44. Increasing production capacity of Kotinskaya SUEK-Kuzbass coal 1761.33 Mine (OAO SUEK-Kuzbass) up to 5,000 mine Kotinskaya thousand t/year (Prokopyevskiy District) 45. Increasing production capacity of Eastern Kuzbass OAO SUEK-Kuzbass, 374. 34 coal handling plant (CHP) (Prokopyevskiy District) CHP Eastern Kuzbass 46. Building a coal preparation plant ZAO Kuzbass fuel company 3810.00 (Prokopyevskiy District) 47. Launching a high-angle separator ZAO Kuzbass fuel company 570.00 (Prokopyevskiy District) 48. Construction of Taldinskaya-Yuzhbaya OOO Taldinskaya Coal Company 2842.00 (Prokopyevskiy District) 49. Construction of coal washery OOO Berezovskiy OC mine 3000.00 (Prokopyevskiy District) 50. Construction of Erunakovskaya-VIII mine ZAO UK YuzhKuzbassCoal 6669.00 (Novokuznetskiy District) 51. Construction of Erunakovskaya Mine-I JSC UK Yuzhny Kuzbass 7020.50 (Novokuznetskiy District) 52. Construction of deep coal conversion coal plant ZAO HK SDS 16000.00 (semi-coke, power gas) in Prokopyevsk 53. Construction of the engineering plant for disposal ZAO HK SDS 1000.00 of methane from operating and abandoned mines in Prokopyevsk 54. Launching development of copper deposit OOO MGK Shormed 7750.00 in Tashtagolskiy District 55. Mineral Mining (placer gold) OOO Zoloto Shorii 550.00 in Tashtagolskiy District 56. Coal mine design and inception stage OOO MarrTEK 280.00 at Khmelevsky Section of Solonovski coalfield

Public Catering 1. Improving school catering services Administration of the 887.38 (Kemerovo) Kemerovo Region 2. Launching school catering services Administration of 70.92 (Mezhdurechensk) Mezhdurechensk

Chemical sector 1. Launching production of geosynthetic materials, KOAO Orton 869.40 Kemerovo 2. Building the state of the art facility to produce ZAO Kemerovo 1290.00 next-generation organic agrochemical plant VIKA 50 fertilizer, capacity - 50K tons per year (Kemerovo) 3. Converting ammonia and carbamide units to two-year Kemerovo OAO Azot 468.60 overhaul cycle (Kemerovo) 4. Refurbishment of AM-70 unit Kemerovo OAO Azot 564.30 (Kemerovo) 5. Expansion of production of shrink film wrapper ZAO Polymer 30.18 and greenhouse cover film (Kemerovo)

44 Kemerovo Region Investment Profile

¹ Project Project Project Name originator Cost, million rubles Engineering Sector 1. Construction of Komatsu service center Branch OOO Komatsu CIS 320.00 (Polysayevo) 2. Development of new product mix at OOO Yurga Engineering Company 1214.00 OOO Yurga Engineering Company (Yurga) 3. Refurbishment of the foundry operations OOO Yurga Engineering Company 1037.70 at OOO Yurga Engineering Company (Yurga) 4. Refurbishment of machinery operations OOO Yurga Engineering Company 827.18 at OOO Yurga Engineering Company (Yurga) 5. Refurbishment of power engineering OOO Yurga Engineering Company 413.50 facilities at OOO Yurga Engineering Company (Yurga) 6. Manufacture of railway wagons OAO Novokuznetsk Carriage 804.60 on the basis of Novokuznetsk Carriage Works Works (Novokuznetsk) 7. Expansion of Kuzbass wagon ZAO HK SDS 500.00 factory Novotrans in Prokopyevsk 8. Construction of the plant to produce modern OOO Transport Systems 1640.00 conveyor systems in Leninsk-Kuznetskiy 9. Production of conveyor belts OOO Kolchuginsky 250.00 in Leninsk-Kuznetskiy Chemical Company 10. Construction of the plan for kit assembly ÎÎÎ MarrTEK 100.00 of medium capacity buses (Leninsk-Kuznetskiy)

Road facilities 1. Construction of motor road Novosibirsk GU KO Kuzbass Road Directorate 5162.70 Leninsk-Kuznetskiy, Kemerovo - Yurga (Leninsk-Kuznetskiy – Kemerovo section) (Kemerovo, Kemerovskiy District) 2. Reconstruction of Taiga RW Station OAO RAO Railways 50.00 (extending passenger tracks), 3d phase (Taiga) 3. Construction of road Chugunash - GU KO Kuzbass Road Directorate 1186.65 Sport-Tourist Complex Sheregesh (Tashtagolskiy District) 4. Construction of a motor road between GU KO Kuzbass Road Directorate 2198.91 Ul Tereshkovoi and satellite town Lesnaya Polyana (Kemerovo) 5. Overhauling road between Octyabrsky Community Department of town planning 89.50 and village Kalenovo (Yashkinskiy District) of the Administration of Yashkinskiy District 6. Construction of the motor road Kisselevsk – GU KO Kuzbass Road Directorate 202.60 Malinovka - Mikhajlovka in Prokopyevskiy District

Production of household goods/sanitary ware 1. Development and reconstruction ÎÀÎ “Universal” factory 197.50 of OAO “Universal” factory (Novokuznetsk)

Solar power engineering 1. Construction of the factory to produce Administration of 16000.00 polycrystalline and monocrystalline silicon Anzhero-Sudzhensk (Anzhero-Sudzhensk)

45 Investment projects implemented in the Kemerovo Region

¹ Project Project Project Name originator Cost, million rubles Iron and Steel Sector 1. Preparation for and overhauling cum OAO Kuznetsk Ferroalloys, 332.60 refurbishment of ferroalloy furnace No 63 (Yurga) OSP Yurga Ferroalloy Plant 2. Upgrading the small-section mill 250-2 of the section OAO West-Siberian 56.00 rolling shop of OAO West-Siberian Steel plant (ZSMK) Steel plant (ZSMK) (Novokuznetsk) 3. Introduction of the splitting process at OAO West-Siberian 119.00 small-section mill 250-1 of section rolling mill plant Steel plant (ZSMK) at OAO West-Siberian Steel plant (ZSMK) (Novokuznetsk) 4. A unit for coal injection to blast furnace OAO West-Siberian 4136.00 (Novokuznetsk) Steel plant (ZSMK) 5. Upgrading the structural mill of OAO NKMK OAO Novokuznetsk 12784.00 steel works (Novokuznetsk) Iron and Steel plant 6. Upgrading gas purification-furnace OAO Kuznetsk Ferroalloys Plant, 925.00 facility Nos 62, 63 (Novokuznetsk) 7. Upgrading the equipment and the process OAO Rusal Novokuznetsk 85.42 for cryolite production line under the program of conversion to petroleum coke (OAO NkAZ) (Novokuznetsk) 8. Production of ferroalloys OOO UK SGMK 890. 00 (Novokuznetsk) 9. Construction of electrical steel plant OAO Energia-holding 9000.00 in Leninsk-Kuznetskiy

Public utilities 1. Reconstruction of water intake Urban Services 341.70 facilities on the River Municipal Enterprise (Ossinniki) 2. Upgrading the process of removal, OOO Vodokanal 64.30 storage and disposal of sludge at the pump and filtration station (Leninsk-Kuznetskiy) 3. Installing metering devices at the apartment OAO UEZ ZHKu 116.84 building to measure heat and electricity, in Leninsk-Kuznetskiy hot and cold water for energy saving purpose in the housing sector of Leninsk-Kuznetsk in 2009-2011 4. Reconstruction of sewerage system Capital Construction 138.78 (Polysayevo) Department at Polysayevo 5. Reconstruction of sewerage system City Administration 80.00 (Prokopyevsk) of Prokopyevsk 6. Construction of sewage treatment facilities Administration of Tyazhinskiy 146.00 in Tyazhinskiy settlement District 7. Reconstruction of residential buildings Office of public utilities 100.00 of 1-335 series in Yurga at Administration of Yurga 8. Construction of sewage treatment plant Administration of 55.00 (Yashkinskiy District) Yashkinskiy District 9. Reconstruction of pressure header Administration 65.00 (Mezhdurechensk) of Mezhdurechensk 10. Construction of the trunk sewer (Berezovskiy) OAO Northern Kuzbass 94.40 Power Company 11. Construction of sewerage water treatment OAO Northern Kuzbass 150.00 system at Yuznaya Mine settlement Power Company (Berezovskiy)

46 Kemerovo Region Investment Profile

¹ Project Project Project Name originator Cost, million rubles Construction Sector 1. Integrated development of Vostochny Administration of 15992.86 residential area (Anzhero-Sudzhensk) Anzhero-Sudzhensk 2. Suburban settlement Snegiry, OOO SK Rus, 841.00 (Kemerovskiy District) OOO Global (developer) 3. Suburban settlement Serebryany bor OOO BOR 1500.00 (Kemerovskiy District) 4. Suburban settlement Zhuravlevy gory Company KSK Yantar 6500.00 (Kemerovskiy District) 5. Suburban settlement Gubernskaya Usad’ba MUP UKS and MTS 900.00 (Kemerovskiy District) 6. Residential community “Little Italy” OOO SDS-Finance 770.00 (Kemerovskiy District) 7. Construction of apartment building Department of Capital 124.00 No 6-7 (Polysayevo) Construction in Polysayevo 8. Construction of apartment buildings Department of Capital 503.00 (Polysayevo) Construction in Polysayevo 9. Sports community center in the Administration of Belovo 92.50 3d microdistrict (Belovo) 10. Construction of water treatment facilities () Administration of Kaltan 500.00 11. Construction of apartment building Administration of Kaltan 99.928 No 2 in Block 15 (Kaltan) 12. Construction of a community MU Department of 82.05 sports center with a general purpose gym Youth Policy and Sports and a football field with Administration of Kaltan artificial turf (Kaltan) 13. Construction of kindergarten for 150 children Administration of 130.00 with a swimming pool (Krasnobrodsky City District) settlement 14. Addressing housing problems, including: Administration of Prokopyevsk 4357.8 Providing assistance to citizens from dilapidated homes in terms of obtaining (building) new homes in place of demolished ones; construction of new apartment housing (to address relocation needs for residents from dilapidated apartment buildings subject to demolition) (Prokopyevsk) 15. Construction of utilities infrastructure Administration of Prokopyevsk 316.40 (microdistricts 11, 16 (1st phase), Blocks 4À, 5 (Red Hill settlement) (Prokopyevsk) 16. Construction of pre-school facility Administration of Prokopyevsk 160.00 in microdistrict 10 (Prokopyevsk) 17. Construction of pre-school facility Administration of Prokopyevsk 190.00 in microdistrict 16 (Prokopyevsk) 18. Construction of community sports Administration of Prokopyevsk 103.00 center with general purpose gym (Prokopyevsk) 19. The center of choreography (Prokopyevsk) Administration of Prokopyevsk 70.00 2î. Building Wedding Rooms on Ul. Zholtovskjgo Administration of Prokopyevsk 100.00 (Prokopyevsk) 21. Construction of correctional Izhmorskiy specialized 222.70 juvenile boarding (correctional) juvenile school facility (8th category) in boarding school Izhmorskiy 22. Construction of 33-unit apartment building Administration of Izhmorskiy 49.00 in Izhmorskiy, microdistrict 21 District, ÍÎ Housing Development Fund for the Kemerovo Region

47 Investment projects implemented in the Kemerovo Region

¹ Project Project Project Name originator Cost, million rubles Construction Sector 23. Construction of 22 detached family homes on Administration of 51.70 Gubernatorskaya Ulitsa in Izhmorskiy settlement Izhmorsky District 24. Construction of Kindergarten in Tyazhinskiy settlement Administration of Tyazhinskiy District 116.00 25. Renovation of District community center Administration of 198.10 in Tyazhinskiy settlement Tyazhinskiy District 26. Construction of Maternity Hospital MUZ Tyazhinskiy 81.20 in Tyazhinskiy settlement Central District hospital 27. Construction of 36 unit building in Tyazhinskiy Administration of 50.00 settlement Tyazhinskiy District 28. Construction of District community center Department of 80.80 in Yaya settlement Culture and National Policy of the Kemerovo Region 29. The conversion of Children's Department of the city Health Board of 90.00 hospital No. 1 to maternity hospital and procuring Yurga Administration the equipment (Yurga) 30. Construction of deep sewerage manifold OAO Severo-Kuzbasskaya 9160.00 in Kemerovo Power Company 31. Construction of residential microdistrict OOO SDS-Finance 603.72 No 11 in Rudnichny District (Kemerovo) 32. Construction of the 2nd phase OOO Promstroy TP 2537.74 of the planning district of satellite town Lesnaya Polyana (Kemerovo) 33. Construction of residential, utility, OOO SDS-Finance 4328.75 and transportation infrastructure of the Central District (Kemerovo) 34. Construction of residential microdistrict No 12 OOO Progrand 3667.99 Rudnichny District, Kemerovo 35. Development of housing OOO Sibirinvestholding, 2527.00 and transport infrastructure OOO Investment-Komplekt-Stroy, of Zavodsky District (Kemerovo) OAO FSK 36. Development of housing and utility infrastructure OOO SDS-Finance 1117.07 in the a newly built microdistrict of the Central District (Kemerovo) 37. Construction of shopping center ZAO HK SDS 100.00 ‘Provincial Market’ (Kemerovo ) 38. Development of microdistrict No 24 OOO SK Terem 1000-3000 Novoilinsk District (Novokuznetsk) 39. Construction of 16-storied apartment building OAO Novokuznetsk Plant of 208.90 in the Central District of Novokuznetsk, reservoir fabrications Block No 43 (Novokuznetsk) 40. Development of the Zapadny District OOO Belavtosib, 1421.08 (Mezhdurechensk) ISK Mezhdurechenskstroy 41. Reconstruction of recreation camp "Ozerki" OOO Transit Plus 380.00 (Mezhdurechensk) 42. Conversion of school No 8 to Kindergarten Administration of Berezovskiy 65.00 (Berezovskiy) 43. Construction of 60-unit apartment building, Administration of Berezovskiy 75.00 No 40A in the 4th microdistrict (Berezovskiy) 44. Construction of 60-unit apartment building No 40B Administration of Berezovskiy 75.00 in the 4th microdistrict (Berezovskiy) 45. Construction of 100-unit apartment building No 37 Administration of Berezovskiy 160.00 in the 4th microdistrict (Berezovskiy) 46. Construction of kindergarten Administration of Berezovskiy 150.00 in the 4th microdistrict (Berezovskiy)

48 Kemerovo Region Investment Profile

¹ Project Project Project Name originator Cost, million rubles 47. Construction of a kindergarten in Tissul Administration of Tissulskiy 72.00 (Tissulskiy District) District 48. Construction of 45-unit residential building Sole trader Tarasov 53.00 (Tissulskiy District)

Production of Construction Materials 1. Construction of brickworks, 40 million pieces OOO StroiIndustria 430.00 annual capacity (Anzhero-Sudzhensk) 2. Production of fully complete houses made OOO UK Sibinvest 1000.00 of laminated square logs (windows, doors, staircases, molded products) (Anzhero-Sudzhensk) 3. Construction of glass-works Administration of 200.00 (Anzhero-Sudzhensk) Anzhero-Sudzhensk 4. Reconstruction of the plant ÎÎÎ Polysayevo 150.00 to introduce structural building construction bureau systems to build prefab residential and community assets (Polysayevo) 5. Launching high-tech innovative OOO Polymer-vector 120.00 production of the quality wood-polymer composite materials based on the existing production of pellets from waste polymer packing (Krasnobrodskiy City District) 6. Construction of brickworks (Taiga) Solomakhin N.B . 80.00 7. Production of furniture board (Taiga) Sole trader Sinitsyn G.V. 150.00 8. Construction of Uchulensk cement plant OOO UK Siberian Mining 7911.00 (Tashtagolskiy District) and Metallurgical Company 9. Expansion of the production facility OOO Metallurgmontazh 131.65 to make double T-beams for building metal frame buildings for commercial and industrial use (Yurga) 10. Achieving the design capacity OOO Strommashkomplekt 84.32 in OOO Transsibstroy (Kemerovo) (Samara), Sibirimpeks (Kemerovo), OOO Agric-Roof Systems (Kemerovo), OOO Elso-2000 (Moscow) 11. Construction of Yashkino cement plant OAO Holding company 8850.00 Siberian cement 12. Construction of the plant to make building OOO Siberian 100.00 materials (Topkinskiy District) Construction Company 13. The upgrade of cement mills ÎÎÎ Topkinsky Cement 118.90 Nos 8, 9, switching to closed loop milling cycle (Topkinskiy District) 14. The upgrade of the rotary kiln number 5 ÎÎÎ Topkinsky Cement 1009.80 for burning clinker (Topkinskiy District) 15. Construction of the facility to make building ZAO HK SDS 2000.00 materials (building blocks, ceramic tile et cet) in Prokopyevsk 16. Construction of the facility to make ZAO HK SDS 2000.00 building components and structures (reinforced concrete products; metal fabrications et cetera) in Prokopyevsk

49 Investment projects implemented in the Kemerovo Region

¹ Project Project Project Name originator Cost, million rubles Woodworking industry 1. Building a facility to produce large size ZAO AFK 1748.13 plywood with a capacity of 60 thousand cubic meters (Anzhero-Sudzhensk) 2. Building a facility to make pallets, OOO EPP 640.00 66K tons annual capacity (Anzhero-Sudzhensk) 3. Construction of woodworking facility OOO SPB Sibles 53.00 to make furniture boards (Kemerovo Region) 4. Construction of the wood facility in Temirtau OOO Shelkovy put 2000.00 settlement for deep wood processing (Tashtagolskiy District) 5. Building a facility to harvest, OOO Sibirskiy Les 7452.00 cut, and process wood including production of wood boards under the long term forest lease conditions (Mariinskiy District) 6. Launching new facilities for harvesting OOO Suslovsky LPH 960.00 and comprehensive processing of wood and wood waste (Mariinskiy District)

Public health 1. Construction of health center OAO AZOT at Kemerovo 189.40 for KOAO AZOT (Kemerovo) 2. Construction and equipping the Administration of the 1216.40 regional perinatal center: completion Kemerovo Region of the first construction phase (Kemerovo) 3. Building an outpatient clinic for 320 patient visits Department of Town 456.40 in Yashkino settlement planning of Yashkinskiy District Administration 4. Completing construction of the Administration of 450.00 outpatient clinic (Berezovskiy) Berezovskiy 5. Construction of hospital pathology Administration of 115.00 department building (Berezovskiy) Berezovskiy 6. Construction of maternity hospital Administration of 150.00 building (Berezovskiy) Berezovskiy

Oil Refining Sector 1. Construction of the oil refinery OOO Refinery Severny Kuzbass 4000.00 OOO Severny Kuzbass, capacity 800K tons p.a. (Anzhero-Sudzhensk) 2. Construction of Tyazhinskiy oil refinery ZAO HC Kuznetsky Ugol 6000,00 (Tyazhinskiy District) 3. The upgrade of oil treatment plant (UPN-40) in Itat ZAO HC Kuznetsky Ugol 50,00 settlement (Tyazhinskiy District) 4. Construction of Oil Refinery Severny Kuzbass OOO Refinery Severny Kuzbass 3000,00 (Yaiskiy District) 5. Construction of oil refinery OOO Anzherskaya HC Kem-Oil, OOO Anzherskaya 1250,00 Oil and Gas Company (Yaiskiy District) Oil and Gas Company 6. Construction of oil refinery OOO NefteHimServis OOO NefteHimServis 13000,00 (1st phase) (Yaiskiy District)

50 Kemerovo Region Investment Profile

¹ Project Project Project Name originator Cost, million rubles Food Industry 1. Launch of the line to make Winkler ÎÀÎ KDW Kemerovo 130.00 chocolate bars (Kemerovo) 2. Production line to make swakn stuffed ÎÀÎ KDW Kemerovo 170.00 hanuta wafers (Kemerovo) 3. Production line Eco Lean to make sour cream ÎÀÎ Unimilk Dairy at Kemerovo 190.00 and yogurt filled with pieces of fruit (Kemerovo) 4. Renovation and upgrade in OOO KDV Yashkino OOO KDV Yashkino 460.00 (Yashkinskiy District) 5. Construction of canola processing plant OOO VEMMA 60.00 (Krapivinskiy District) 6. Washing, grading and packing of vegetables OOO TD Fruits of Siberia 47.30 and potatoes (Topkinskiy District) 7. Renovation and construction ZAO Kolos 149.00 of poultry farm (Topkinskiy District)

Agriculture 1. Construction of dairy complex OOO Selyana OOO Selyana 550.00 to house 1500 heads of cattle and equipping it with new machinery (Kemerovskiy District) 2. Construction of cattle farm OOO Zvezdny State Farm 250.00 (Kemerovsky District) 3. Construction of cattle-breeding complex OOO Yurginskiy 200.00 in OOO Yurginsky (Yurginsky District) 4. Building 2nd phase of the pig-breeding ZAO Kuzbass Food Kombinat 500.00 complex (Prokopyevskiy District) 5. Upgrading the pig-breeding complex OOO SPK Chistogorskiy 2189.83 Upgrading the industrial wastewater treatment facility (Novokuznetskiy District)

Recycling of solid domestic wastes 1. Construction of municipal solid waste dump Administration of Prokopyevsk 150.00 (Prokopyevsk) 2. Construction of municipal solid waste dump Administration of 144.99 in Izhmorskiy settlement Izhmorskiy settlement 3. Construction of municipal solid waste dump Administration of 153.00 in Tyazhinskiy settlement Tyazhinskiy settlement 4. Construction of municipal solid waste dump Administration of 54.20 (Berezovskiy) Berezovskiy 5. Construction of municipal solid waste dump in Administration of 118.70 Leninsk-Kuznetsky District: Panfilovo, Krasnoe, Leninsk-Kuznetskiy District Shabanovo, Podgornoye Villages

51 Investment projects implemented in the Kemerovo Region

¹ Project Project Project Name originator Cost, million rubles Trading Sector 1. Construction of the shopping and community OOO Molodezhny 50.00 center Molodezhny (Tsinkzavodskoye Lane, City Park) (Belovo) 2. Construction of hypermarket Kora OOO Kora-TK 200.00 (microdistrict 5-6) (Belovo) 3. Construction of shopping and office space OOO Kuzbass-3 60.00 Maria Ra (Kaltan) 4. Construction of the shopping center, Sole trader Leonov A.N. 50.00 children's cafe and coffee shop (Yurga) 5. Construction of new Okey chain store, OOO Styer RTs 55.00 renovation of two existing stores of Okey chain (Yurga) 6. Construction of two petrol stations OOO RN Kemerovonefteproduct 100.00 (Yurga) 7. Construction of shopping mall Sole trader Chirkov NK, 60.00 (Kemerovo) Sole trader Chirkova M.V. Belovo 8. Construction of the shopping center in OOO Roznits K-1 150.00 Octyabrsky prospect, 101 (Kemerovo) 9. Construction of garage parking (Mezhdurechensk) Sole trader Schumacher I.D . 51.60

Sport, Tourism 1. Sheregesh Tourist Complex OOO Restfor 3405.39 (Tashtagolskiy District) 2. Construction of the Provincial Centre Administration 496.60 of snowboarding and skiing on Tumannaya of Tashtagolskiy District (Foggy) Mountain (Tashtagolskiy District) 3. Construction of the sports complex Administration of 201.00 with artificial ice seating 500 Tashtagolskiy District (Tashtagolskiy District) 4. Construction of general purpose sports OOO RMB Leasing, 426.70 center Kemerovo (Kemerovo) Administration of the Kemerovo Region, Kemerovo City Administration 5. Construction of sports center with Administration of 220.40 a skating rink in Zavodskiy District Kemerovo, ‘’ in Kemerovo (microdistrict No 60) party 6. Construction of sports center for Volleyball Administration of 165.34 in the Central District of Kemerovo Kemerovo, ZAO HK SDS 7. Construction of the City Stadium (Berezovskiy) Administration of Berezovskiy 235.00 8. Expansion of tourist camp Gornaya Salanga OOO Gornaya Salanga 250.00 (Tissulskiy District) 9. Construction of the hotel facilities in OOO Makarak 68.00 Makaraksk Village (Tissulskiy District) 10. Provincial skiing tourist complex Tanai OOO Tanai 1410.00 (Promishlennovskiy District)

52 Kemerovo Region Investment Profile

¹ Project Project Project Name originator Cost, million rubles Power engineering 1. Installation of hydraulic Kaplan turbines on water OOO Anzherskiy Vodokanal 85.50 intakes in order to reduce power acquisition costs Water Company (Anzhero-Sudzhensk) 2. Recovery of methane in SUEK-Kuzbass mines OAO SUEK-Kuzbass 730.00 to generate electric and thermal energy (Leninsk-Kuznetskiy) 3. Reconstruction of ash dump No (IVth bench) OAO Kuzbassenergo 541.10 to add sanitary protection zone (Belovo) 4. Sewage treatment facilities for rainfall runoffs OAO Kuzbassenergo 85.90 at Belovo Power Station (GRES) (Belovo) 5. Construction of the new ash dump No OAO Kuzbassenergo 2958.50 at Belovo Power Station (GRES) (Belovo) 6. Full scale reconstruction of South Kuzbass OAO South Kuzbass GRES 17267.80 Power station (GRES). Construction of power unit (Unit 330 Mw using combined-cycle process with coal gasification) (Kaltan) 7. Reconstruction of the utility water system (Kaltan) OAO South Kuzbass GRES 449.56 8. Reconstruction of district boiler house No 6 Administration of 223.00 (Prokopyevsk) Prokopyevsk 9. Reconstruction of boiler house No 76 Administration of 250.00 (Prokopyevsk) Prokopyevsk 10. Reconstruction of boiler house No 114 Administration of 242.00 (former Elektromashina Company) Prokopyevsk (Prokopyevsk) 11. Construction of the modular boiler house Administration of 153.90 of microdistrict 4A (Prokopyevsk) Prokopyevsk 12. Construction overhead power line 110 kV Administration of 482.22 TemirTau - Kondoma (Tashtagolskiy District) Tashtagolski District 13. Expansion of the dam of the ash dump Section Kemerovo branch of 132.75 1 up to 126 m. Kemerovo Power Plant OAO Kuzbassenergo 14. Detailed design of station No 14 with the purpose Kemerovo branch of 350.44 to reduce nitrogen oxide emissions OAO Kuzbassenergo 15. Construction of Pritomskaya substation Administration of 294.00 for 110/10 kV (Kemerovo) Kemerovo 16. Construction of the substation 35/6 kV OAO Novokuznetsk 86.35 Lapin Log (Novokuznetsk) Energy Company 17. Construction of overhead power line ZAO Raspadskaya 900.00 (Mezhdurechensk) Coal Company 18. Reconstruction of the district Administration of 253.00 boiler house (Mezhdurechensk) Mezhdurechensk 19. Design and reconstruction of boiler house OAO Northern Kuzbass 64.53 No 2 to switch the boiler KE-25-14 to work Energy Company as high temperature circulating fluidized bed unit and the outgoing steam temperature to be 250 degrees (Berezovskiy) 20. Design and construction of a mini heat OAO Northern Kuzbass 86.00 station at boiler room No 4 (Berezovskiy) Energy Company 21. Reconstruction of the coal storage site OAO Northern Kuzbass 53.30 (Berezovskiy) Energy Company 22. Recovery of methane in SUEK-Kuzbass OAO SUEK-Kuzbass 730.00 mines to generate electric and thermal energy (Prokopyevskiy District) 23. Construction of substation 220/10 kW (Novokuznetsk) OAO Kuznetsk Ferroalloys 2820.00 24. Construction and operating a power engineering plant ZAO Karbonica 5680.00 to produce semi-coke, electrical and the thermal energy (Leninsk-Kuznetskiy)

53 Executive authorities and agencies of the Kemerovo Region Administration

Executive authorities and agencies of the Kemerovo Region Administration

Administration of the Department of Industry of the Department of utility sector and Kemerovo Region Kemerovo Region Administration roads of the Kemerovo Region 650064, Kemerovo, Pr. Sovetsky, 62 650000, Kemerovo, Pr. Sovetsky, 63 650099, Kemerovo, Pr. Sovetsky, 62 Ph.: (3842) 36-34-09 Ph.: (3842) 36-30-98 Ph.: (3842) 58-38-41, Fax: (3842) 58-31-56 Fax: (3842) 58-40-37 Fax: (3842) 36-38-41 Press office: (3842) 58-56-12 E-mail: [email protected] E-mail: [email protected] E-mail: [email protected] www.ako.ru Department of Investment Policy Committee for State Property of the Kemerovo Region Management of the Kemerovo The Kemerovo Administration Region Region Governor 650099, Kemerovo, 650064, Kemerovo, Pr. Sovetsky, 58 Aman Tuleyev Pr.Sovetsky, 63 Ph.: (3842) 36-53-30 650064, Kemerovo, Pr. Sovetsky , 62 Ph./Fax: (3842) 36-50-51 Fax: (3842) 36-14-18 Ph.: (3842) 36-34-09 Office Head: Committee Chairman: Fax: (3842) 58-31-56 Ph. (3842) 36-27-43 Ph.: (3842) 58-15-50 E-mail: [email protected] E-mail: [email protected] Department of Land Use of the Kemerovo Region: Mass Media Liaison department Department of Strategic Develop- Ph.: (3842) 58-36-94 at the Kemerovo Region ment of the Kemerovo Region Department of Land allotment for Administration Administration legal entities at Kemerovo: 650099, Kemerovo, Pr. Sovetsky 62 650099, Kemerovo, Pr. Sovetsky, 63 Ph.: (3842) 58-04-01 Ph.: (3842) 58-13-21 Ph./Fax: (3842)58-72-67 Department of state property use: Fax: (3842) 58-30-49 Office Head: Ph.: (3842) 58-40-03 E-mail: [email protected] Ph.: (3842) 58-72-67 Legal Division: E-mail: [email protected] Ph.: (3842) 58-48-52 Department of Economic E-mail: [email protected] Development of The Kemerovo Department of prices and tariffs Region Administration of the Kemerovo Region Department of Public 650099, Kemerovo, Pr. Sovetsky, 58 650992, Kemerovo, Procurement of the Ph./Fax: (3842) 36-48-32 Pr. Sovetsky, 63 Kemerovo Region E-mail: [email protected] Ph.:/Fax: (3842) 58-48-51 650099, Kemerovo, Pr. Sovetsky, 63 E-mail: [email protected] Department Head: Ph./Fax: (3842) 58-59-85 Ph.: (3842) 58-48-51 E-mail: [email protected] Department of Coal Industry and Deputy Department Head: Energy of The Kemerovo Region Ph.: (3842) 58-53-02 Central Financial Department Administration E-mail: admin-dep-cen@ako. Ru for the Kemerovo Region 650064, Kemerovo, Pr. Sovetsky, 63 650064, Kemerovo, Pr. Sovetsky, 58 Ph.: (3842) 58-21-08 Department of Construction Ph.: (3842) 36-31-24 Fax: (3842) 58-69-73 of the Kemerovo Region Fax: (3842) 36-61-47, 58-43-24 E-mail: [email protected] 650064, Kemerovo, Pr. Sovetsky, 60 E-mail: [email protected] Ph.: (3842) 58-55-45 Department of Transport Fax: (3842) 58-71-81 and Communications of the E-mail:[email protected] Kemerovo Region www.dsko.ru 650064, Kemerovo, Pr.Sovetsky, 63 Department of Securities Ph.: (3842) 36-83-71 and Insurance Market of the Fax: (3842) 58-65-82 Kemerovo Region Administration E-mail: [email protected] 650064, Kemerovo, Pr. Sovetsky, 58 Ph./Fax: (3842) 58-55-87 E-mail: Malutina [email protected]

54 Kemerovo Region Investment Profile

Department of public health care Department of Education and Regional Energy Commission of the Kemerovo Region Science of the Kemerovo Region 650000, Kemerovo, 650064, Kemerovo, Pr.Sovetsky, 58 650064, Kemerovo, Pr. Sovetsky, 58 Ul. N. Ostrovskogo, 32 Ph.: (3842) 36-42-84 Ph.: (3842) 36-43-66 Ph./Fax: (3842) 36-28-28 Fax: (3842) 58-36-55 Fax: (3842) 36 - 43 - 21 E-mail: [email protected] E-mail: [email protected] E-mail: [email protected] www.kuzdrav.ru Department of State Technical Department of Culture Inspectors of the Kemerovo Department of Natural Resources and National Policy Region and Environment of the Kemerovo of the Kemerovo Region 650000, Kemerovo, Region 650064, Kemerovo, Pr.Sovetsky, 58 Pr. Kuznetsky, 22A 650064, Kemerovo, Pr. Sovetsky, 63 Ph.: (3842) 36-33-42 Ph./Fax: (3842) 36-53-09 Ph.: (3842) 58-55-56 Fax: (3842) 58-47-66 E-mail: [email protected] Fax: (3842) 58-69-91 E-mail: [email protected] E-mail: [email protected] Department of state building The State Service for Control and inspectors of the Kemerovo Department of Forestry of the Inspection in the Education Sector Region Kemerovo Region of the Kemerovo Region 650991, Kemerovo, 650036, Kemerovo, Ul. Ìèðíàÿ, 5 650000, GSP, Kemerovo, Ul. Krasnoarmeyskaya, 136 Ph.: (3842) 31-21-37 Ul. Chernyakhovskogo, 14à Ph./Fax: (3842) 58-70-12 Fax: (3842) 31-22-94 Ph./Fax: (3842) 36-00-09 E-mail: [email protected] E-mail: [email protected] E-mail: [email protected] Department of Consumer Market Department of Agriculture and State Housing Inspectors of the and SME support of the Kemerovo Food Industry of the Kemerovo Kemerovo Region Region Region 650099, GSP-2, Kemerovo, 650064, Kemerovo, Pr. Sovetsky, 63 650000, Kemerovo, Pr. Kuznetsky, 22à Pr. Sovetsky, 60 Ph.: (3842) 58-78-61 Ph.: (3842) 36-33-78 Ph./Fax: (384-2) 36-33-46 Fax: (3842) 34-96-59 Fax: (3842) 36-27-41 E-mail: [email protected] E-mail: [email protected] E-mail: [email protected] Department of Social Security of Representative Department of Central Department the Kemerovo Region the Kemerovo Region Administra- of Architecture and 650000, Kemerovo, tion at the RF Government Urban Development Pr. Kuznetsky, 19à, 115184, Moscow, Ul. Bolshaya of the Kemerovo Region Ph.: (3842) 75-85-85 Tatarskaya, D. 5/14, Build. 9 650000, Kemerovo, Pr. Sovetsky, 60 Fax: (3842) 75-92-52 Ph.: 8 (495) 953-54-89 Ph./Fax: (3842) 36-43-17 E-mail: [email protected] Department Head: Regional Department of the Ph.: (3842) 36-41-37 Department of Labor Federal State Statistics Service Division of Urban and Employment at the Kemerovo Region Planning and Design: 650060, Kemerovo, Pr. Lenina, 141g (Kemerovostat) Ph.: (3842) 36-45-81 Ph./Fax: (3842) 53-98-33 650000, Kemerovo, Pr. Kuznetsky, 25 E-mail: [email protected] Fax: (3842) 35-68-64 Ph./Fax: (3842) 36-50-20 E-mail: [email protected] E-mail: [email protected] The Department of Youth Policy www. kemerovostat.ru and sport of the Kemerovo Region Veterinary Administration 650064, Kemerovo, Pr. Sovetsky, 60 of the Kemerovo Region Territorial Department of the Ph.: (3842) 36-76-80 650055, Kemerovo, Federal Agency for Federal Fax: (3842) 58-45-82 Ul. Feodorovskogo, 15 Property Management E-mail: [email protected] Ph.:(3842) 28-95-29 at the Kemerovo Region Fax: (3842) 28-99-73 650099, Kemerovo, E-mail: [email protected] Ul. Arochnaya, 41 Ph.: (3842) 58-11-98 Fax: (3842) 58-71-70 E-mail: [email protected]

55 Local executive bodies of the Kemerovo Region towns and districts

Local executive bodies of the Kemerovo Region towns and districts

Towns Kisselevsk Novokuznetsk Anzhero-Sudzhensk Ul. Lenina, 30 Ul. Kirova, 71 Ul. Lenina, 6 Fax: (384-64) 6-39-20 Fax: (384-3) 35-64-28 Fax: (384-53) 6-10-14, 6-12-59 Krasnobrodskiy Ossinniki Belovo urban settlement Ul. Sovietskya, 17 Ul. Sovetskaya, 21 Ul. Komsomolskaya, 8 Fax: (384-71) 4-25-33 Fax: (384-52) 2-15-19 Fax: (384-52) 7-61-01 Polysayevo Berezovskiy Leninsk-Kuznetskiy Ul. Kremlevskaya, 6 Pr. Lenina, 22 Pr. Kirova, 56 Fax: (384-56) 4-27-60 Fax: (384-45) 3-03-12, 3-25-61 Fax: (384-56) 3-44-92 Prokopyevsk Kaltan Mezhdurechensk Pr. Shahterov, 41 Pr. Mira, 53 Pr. Stroitelei, 20à Fax: (384-6) 67-42-53 Fax: (384-71) 3-36-46 Fax: (384-75) 2-89-84 Taiga Kemerovo Ul. 40 let Oktyabrya, 23 Pr.Sovetsky, 54 Ul. Serafymovycha, 4 Fax: (384-48) 2-44-58 Fax: (3842) 58-18-91 Fax: (384-74) 2-05-58 Yurga Pr. Pobedy, 13 Fax: (384-51) 5-90-88, 5-92-25

Rural Districts Belovskiy District Mariinskiy District Topkinskiy District 652600, Belovo, Ul. Lenina, 10 652150, , 652300, Topki Fax: (384-52) 2-69-35 Ul. Lenina, 38 Ul. Lunacharsky, 21 Fax: (384-43) 5-30-39, 5-25-48 Fax: (384-54) 4-69-86 Guryevskiy District 652780, Gurievsk, Novokuznetskiy District Tyazhinskiy District Ul. Kommunisticheskaya, 21 654041, Novokuznetsk, 652240, Tyazhinskiy, Fax: (384-63) 5-00-66 Ul. Sechenova, 25 Ul. Sovetskaya, 6 Fax: (384-3) 77-94-51 Fax: (384-49) 2-12-53 Izhmorskiy District 652120, Izhmorsky Settlement Prokopyevskiy District Chebulinskiy District Ul. Leninskaya, 63 653033, Prokopyevsk, 652270, Verkh-Chebula, Fax: (384-59) 2-34-74 Pr. Gagarina, 1V Ul. Mira, 16 Fax: (384-6) 62-11-66 Fax: (384-44) 2-12-56 Kemerovskiy District 650010, Kemerovo, Promishlennovskiy District Yurginskiy District Ul. Sovkhoznaya, 1A 652380, Settlement, 652050, Yurga, Fax: (384-2) 25-12-31 Ul.Kommunisticheskaya, 23 Ul. Mashinostroiteley, 37 Fax: (384-42) 7-11-45 Fax: (384-51) 4-04-00 Krapivinskiy District 652440, Krapivinskaya, Tashtagolskiy District Yaiskiy District Ul. Yubileinaya, 15 652990, Tashtagol, Ul. Lenina, 60 652100, Yaya, Ul. Sovetskaya, 17 Fax: (384-46) 2-24-38 Fax: (384-73) 3-30-40 Fax: (384-41) 2-15-89

Leninsk-Kuznetskiy District Tissulskiy District Yashkinskiy District 652507, Leninsk-Kuznetskiy, 652210, Tissul, Ul. Lenina, 53 652010, Yashkino, Ul. Suvorova, 14 Ul. Grigorchenkova, 47 Fax: (384-47) 2-34-34 Fax: (384-55) 2-57-86 Fax: (384-56) 3-35-36

56 Kemerovo Region Investment Profile

How to contact us List of economic departments of the Kemerovo Region municipalities Urban Districts: Anzhero-Sudzhensk Ossinniki Novokuznetskiy Ph.: 8 (384-53) 6-12-18, Ph.: 8 (384-71) 4-37-74 Ph.: 8 (384-3) 77-87-80 E-mail: [email protected] E-mail: [email protected] E-mail: [email protected]

Belovo Polysayevo Prokopyevskiy Ph.: 8 (3842) 2-88-97 Ph.: 8 (384-56) 4-34-15 Ph.: 8 (384-6) 62-62-83 E-mail: [email protected] E-mail: [email protected] E-mail: [email protected]

Berezovsky Prokopyevsk Promishlennovskiy Ph.: 8 (384-45) 3-25-61 Ph.: 8 (384-6) 67-42-04 Ph.: 8 (384-42) 7-24-02 E-mail: econom_adm_berez@mail. E-mail: [email protected] E-mail: [email protected];

Kaltan Taiga Tashtagolskiy Ph.: 8 (384-71) 3-13-22 Ph.: 8 (384-48) 2-17-08 Ph.: 8 (384-73) 3-30-58 E-mail: [email protected]; E-mail: adm-@ako.ru E-mail: [email protected]

Kemerovo Yurga Tissulskiy Ph.: 8 (3842) 36-46-14 Ph.: 8 (384-51) 4-67-87 Ph.: 8 (384-47) 2-19-32 E-mail: [email protected] E-mail: [email protected] Ph./Fax: 8 (384-47) 2-34-34 E-mail: [email protected] Kisselevsk Municipal Districts: Ph.: 8 (384-64) 6-25-05 Belovskiy Topkinskiy E-mail: [email protected]; Ph.: 8 (384-52) 2-66-93 Ph.: 8 (384-54) 2-04-08 E-mail: [email protected] E-mail: [email protected] Krasnobrodskiy Ph.: 8 (384-52) 7-61-77 Gurievskiy Tyazhinskiy E-mail: [email protected]; Ph.: 8 (384-63) 5-01-10 Ph.: 8 (384-49) 2-19-49 E-mail: [email protected] E-mail: [email protected] Leninsk-Kuznetskiy Ph.: 8 (384-56) 3-00-95, 7-38-10 Izhmorskiy Chebulinskiy E-mail: [email protected] Ph.: 8 (384-59) 2-34-69 Ph.: 8 (384-44) 2-18-46 E-mail: [email protected] E-mail: [email protected] Mezhdurechensk Ph.: 8 (384-75) 2-83-43 Kemerovskiy Yurginskiy E-mail: [email protected] Ph.: 8 (384-2) 75-78-18 Ph.: 8 (384-51) 4-18-63 E-mail: [email protected] E-mail: [email protected] Myski Ph.: (384-74) 2-20-82 Krapivinskiy Yayskiy E-mail: [email protected] Ph.: 8 (384-46) 2-22-35 Ph.: 8 (384-41) 2-19-47 E-mail: [email protected] E-mail: [email protected] Novokuznetsk Ph.: 8 (384-3) 35-62-82 Leninsk-Kuznetskiy Yashkinskiy E-mail: [email protected] Ph.: 8 (384-56) 7-08-83 Ph.: 8 (384-55) 2-57-64 E-mail: [email protected] E-mail: [email protected]

Mariinskiy Ph.: 8 (384-43) 5-30-98 E-mail: [email protected]

57 Contents 1. The region in brief...... 4 2. The economic potential of the Kemerovo Region...... 5 3. The key features of socio-economic development in 2009...... ………...... …....8 4. Foreign trade activities of the Kemerovo Region enterprises...... ……….13 5. The implementation of promising investment projects...... 15 6. State support of investment, innovation and manufacturing in the Kemerovo Region.…………………………...... ……………………...... 24 7. Changing the economic pattern of the Kemerovo Region to support innovations...... 29 8. State support of small and medium-sized enterprises in the Kemerovo Region...... 37 9. Investment Projects implemented in the Kemerovo Region...... 42 10. Executive authorities and agencies of the Kemerovo Region Administration...... 54 11. Local executive bodies of the Kemerovo Region towns and districts...... 56 12. How to contact us. List of economic departments of the Kemerovo Region municipalities...... 57

58 Kemerovo Region Investment Profile

Prepared and printed by OOO Siberian Publishing Group Ph.: +7 (3842) 396-124, 396-125 www.delkuz.ru Size of print: 500 copies

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