INVESTMENT PASSPORT of the Republic of WELCOMING ADDRESS OF HEAD OF THE REPUBLIC OF KHAKASSIA – Chairman of the Government of the Republic of Khakassia

The Republic of Khakassia is a region in the south of Eastern , surrounded by the powerful mountain systems: Kuznetsk Ala- tau, Eastern and Western . Our region is rich in various natural lands- capes, minerals, unique cultural and archa- eological monuments.

Khakassia is the very place where Russian archeology originates, as the first scientific excavations were carried out here by Da- niel Gottlieb Messerschmidt almost 300 years ago. Nowadays, the territory of the onal economic cooperation. Within the fra- republic hosts about 25 thousand ancient mework of the project, it is planned to cre- monuments of different eras and cultures, ate new enterprises, develop the southern among those, there are burial mounds, pe- route of the Trans-Siberian Railway, promo- troglyphic drawings, fortresses te tourism and agro-industrial complex.

Our republic has an advantageous geograp- Historically, Khakassia has been a favoura- hical location with large transport corridors ble region for farming. The vast areas provi- passing through it. Khakassia has the po- de unlimited opportunities for the develo- tential to increase the volume of processing pment of this industry. The republic with its and industrial production, as well as energy. unique climate, natural diversity, historical About 90 large enterprises are operating and cultural heritage is attractive for the in the republic, including the Sayano-Shu- development of the tourism industry. The- shenskaya HPP named after P.S. Nepo- se are priority areas that are reflected in the rozhny, aluminum plants, coal mining en- Development Strategy of Khakassia, aimed terprises, and ironworks. Copper, iron, gold, at increasing human capital and increasing marble are mined here. the competitiveness of the republican eco- nomy Khakassia takes an active part in national projects, which contributes to the constru- Khakassia is working to improve the mecha- ction of social facilities, development of nisms for supporting business, investment transport infrastructure, creation of favou- initiatives and is always open to effective rable conditions to support entrepreneur- interaction and partnership. ship, investment, and export potential of the republic. We will be glad to welcome you to our hospitable and sunny republic. Export of services is a new direction for the region, which appears to be very promising. We plan not only to expand the sales ge- ography of the Khakas goods but also to Head of the Republic of Khakassia - attract our manufacturers to tap into fore- Chairman of the Government of the ign sales markets. Republic of Khakassia Khakassia has taken part in the Yenisei Si- V. Konovalov beria complex investment project, which opens up great opportunities for interregi-

1 OVERVIEW TRANSPORT COMMUNICATION

Khakassia has a sufficiently developed transport infrastructure, which is represented Kopievo

Ustinkino KOPIEVO bySarala rail, air (international airport), and road transport. Ordzhonikidzevskoe Ordzhonikidzevsky Lake Tus Sunduki Lake Chernoe Iyus District Lake Bele Pervomaiskoe Priiskovoye Lake Fyrkal olotogorskaya Ivanitskys House Mineral Korelyk Polyana Shira water spring hemchuzhny SHIRA Ivanovskie Efremkino Cave Kashkulak Lakes Ancestors Trail The mostLake Shunet importantnamenka element of the air transport infrastructure of the Republic of Kommunar Tuim Shirinsky Tuim Failure Troitskoe

BOGRADSKY Bolshaya Erba District Bograd DISTRICT BOGRAD Khakassia is the international airport "", which serves the population of the Borodinskaya Cave Oglakhty Vershina Bidzha Ust-Abakansky UST-ABAKAN Republic of Khakassia,Prigorsk the southern regions of the Krasnoyarsk Territory, and the District Mount Kunya Salbyksky CHERNOGORSK Burial Mound Abakan Orbita ABAKAN Republic of . ThePodsinee modern runway surfacing allows receiving aircraft of various

Bely Yar Altaisky Lake Balankul Askizsky District categories.Biskamzha The key transport is the railway, as it accounts for 99% of the freight Balyksa BELY YAR District Birichkul Arbuz (Watermelon) Vershina Tei Beisky Novomikhailovka turnover KazanovkaandUitag 79% of the passenger turnover in the Republic of Khakassia. The railway District Askiz SAYANOGORSK Ulug-Khurtuyakh-Tas BEYA communication linksBabik Valley 33 settlements of the Republic of Khakassia. Trout Maral Farming Maina Bolshoy Monok Sayano-Shushenskaya TASHTYP Tashtyp HPP Cheremushki

Tashtypsky Pass Maloarbatskaya Pisanitsa ABAZA (petroglyphs)

Kanzhulsky Pass

Tashtypsky District Tourist area MOUNTAIN KHAKASSIA Bolshoy On Kyzlasov Mount Lake Pozarym Location – the centre of Asia, the south- Ulug-Hol Waterfall Soty Pass western part of Eastern Siberia Mosсow of the Russian Federation

Simferopol

Tomsk

Novosibirsk Krasnoyarsk Capital – town of Population Population Abakan Abakan Area density

thousand187 people thousand61,6 km2 thousand533,1 people people/km8,7 2

1.2% of the territory of the -Abakan Krasnoyarsk-Abakan Novosibirsk-Abakan Siberian Federal District, 4300 km 410 km 1000 km 0.4% of the territory of the Russian Federation Siberia Airlines, Aeroflot Airlines Siberia Airlines (Mon, Wed, Fri, Sat, Sun) KrasAvia Airlines (Mon, Wed, Fri) 5-hour flight (Wed, Fri) 1-hour flight flight of 1 hour 20 minutes Administrative division daily, from Yaroslavsky daily, daily, railway station, travel time - 11 hours travel time - 23 hours travel time - 75 hours daily, 8 runs, odd-numbered days, 8 5 87 vel time - 11 hours travel time 19 hours municipal urban settlements districts districts - - Tomsk- Kyzyl- Abakan Abakan Abakan Abakan 5280 km 350 km 800 km 400 km S7, Aeroflot Airlines daily SiLA Airlines (Mon, Wed, Fri, Sat, Sun) (Wed, Fri, Sun) daily, travel time - 8 runs, travel flight of 9 hours and 30 9 hours 2-hour flight minutes time - 7 hours (on even dates) (Wed, Fri, Sun) travel time - 5 days travel time -15 6 hours hours

2 3 BREAKDOWN OF GROSS REGIONAL PRODUCT IN 2020 Advantages of starting a business in the Republic of Khakassia Gross Regional Product 478,8 per head of population thousand roubles Reduced tax rates for taxpayers applying a simplified taxation system (STS) Process manufacturing 18,8 %

Mining 14,6 % % Electricity, gas and steam supply; 4 7,5% air conditioning 11,8 % STS STS "Income minus Wholesale and retail trade 11,5 % "Income" expenses" Public administration and military security, compulsory social security 7,7 % Real estate operations, rental and Tax incentives service provision 7,0 % 1 Other 6,9 % Regional investment Priority investment Large-scale investment project project project Transport and storage 6,4 %

Health care and social services 4,9 % tax incentives tax incentives provision of a land plot with no tendering process Building 4,2 % income tax up to incentives 10% property tax up to minimum requirements: incentive 0% Education 3,5 % up to property tax • the volume of investments in incentive 0% the field of tourism – from 8 Agriculture, hunting and forestry 2,7 % million rouble minimum requirements: minimum requirements: 05 10 15 20 • in the field of manufacturing 2• the total of (excluding metallurgical investments starts production), information and Indicators of the Republic of Khakassia in selected industries from 50 million • the volume communications – 15 million roubles provided they of capital roubles are invested within investments starts Industrial Mineral Processing Housing Nominal average three years from 15 million • in the field of mining, roubles provided transportation and storage - production extraction sector index of construction monthly • from 500 million they are invested 1 billion roubles index of production salary roubles provided they within three years production are invested within five • other industries – 0 million years roubles 103,1% 104,1% 101,3% 116,1% 43579 ₷

place in the Siberian Federal District Available infrastructure of business support organizations 2 2 5 1 5 place in 21 14 38 12 28 NON PROFIT ORGANIZATION GUARANTEE FUND MICROCREDIT COMPANY The Republic of Khakassia is a rapidly developing region, which in 2020 was OF THE REPUBLIC OF KHAKASSIA ranked 10th in Russia in terms of housing commissioning, which creates conditions for the development of related economy sectors

4 3 4 5 NON-PROFIT ORGANIZATION "GUARANTEE NON PROFIT ORGANIZATION FUND - MICROCREDIT COMPANY OF THE REPUBLIC GUARANTEE FUND MICROCREDIT COMPANY OF KHAKASSIA" OF THE REPUBLIC OF KHAKASSIA

LOYAL Government loan for small business Microloans:

1% up to 700 Provided for the purpose of: per annum 4,25% 24 thousand roubles for the first per annum months three months • working capital financing; up to 3 from 150 DEVELOPMENT • investment in non-current assets; years thousand roubles Government loan for small business for the period of the high alert regime for process manufacturing industries (Decree of the up to 1% and 3% • for the first instalment (advance Government of the 3 from 700 payment) stipulated by the Republic of Khakassia million roubles % for tourism and agriculture thousand roubles dated March 13, 2020 3 leasing agreement for equipment No. 102) - up to 2 years 24 (including devices, mechanisms, % for priority projects in monotowns 2,125 months vehicles (excluding aircraft), per annum up to 3 4,25% for other entrepreneurs million roubles machine tools, instruments, apparatus, units, installations, deferred payment of the primary loan up to 11 months UNSECURED machines; Government loan for small business for the period of the high alert regime (Decree of the Government of the Republic of Khakassia red paym • refinancing. r e fe n dated March 13, 2020 No. 102) - up to 6 months e t d up to 3 4,25% up to 18 up to 300 months per annum months thousand roubles

ROLLOVER Bank guarantees Government loan for small business for small and medium-sized business entities from 150 refinancing loans thousand roubles for small and 4,25% 24 medium-sized per annum months Banking products for small and medium-sized businesses businesses up to 3 million roubles Loan Preferential Investment Revolving Opening for salary lending lending lending of an account EASY START Government loan for small and medium-sized businesses that are newly registered or operating up to 1 year from from from from free of charge % monotown of 0% 11% 8,5% 7,75% red paym 2,125 the Republic of from er e 150 f n e t Khakassia d per annum thousand roubles

up to 6 24 Provided microloans to small % territory of up to months 4,25 the Republic months 1 and medium-sized businesses 237,1 per annum of Khakassia million roubles in 2020 in the amount of million roubles unsecured up to 500 thousand roubles, secured up to 1 million roubles 6 7 DEVELOPMENT FUND OF THE REPUBLIC OF INVESTMENT PORTFOLIO KHAKASSIA CENTRE OF THE REPUBLIC OF KHAKASSIA “MY BUSINESS”

The centre “My Business” was created in the region on December 16, 2019. Using the “one stop-shop” approach, it unites regional institutions for supporting entrepreneurship in one place.

Саяно-Шушенская ГЭС Khakassia Development Fund is the single governing body for the infrastructure имени П.С.Непорожнего organizations to support small and medium-sized business entities. The centre is a union of all organizations that provide government support or interact with entrepreneurs, geographically at one site.

Structure and services of Centre “My Business”

BUSINESS SUPPORT CENTRE The Centre carries out the organization and implementation of activities aimed at promoting entrepreneurship and starting own business, as well as the development of already functioning small and medium-sized businesses, by means of providing consulting services, organizing and conducting round-table discussions, conferences, seminars, trainings and webinars. Services in the Business Support Centre are provided for small and medium-sized businesses free of charge.

172,3 billion roubles 100,4 billion roubles EXPORT SUPPORT CENTRE Transportation and storage Mining The Centre coordinates measures aimed at support and development of non-resource export in the Republic of Khakassia. It provides informational and analytical, consulting 22,3 billion roubles and organizational support for foreign economic activity of small and medium-sized Power industry businesses, promoting attraction of investments and international expansion of export- oriented small and medium-sized businesses.

The total volume of 17,9 billion roubles investments is Process manufacturing INVESTMENT SUPPORT CENTRE The Centre specializes in consulting support of business entities interested in investing 330 billion roubles financial resources within the framework of an investment project in the Republic of 11,1 billion roubles Khakassia, as well as support of investment projects using the “one stop-shop” approach. Tourism

5,9 billion roubles MULTIFUNCTIONAL CENTRE FOR BUSINESS Agriculture Gratuitous provision of a whole range of services, including assistance in the preparation and submission of documents to various state structures and institutions to obtain state and municipal services. The Republic of Khakassia is a part of the Yenisei Siberia complex investment project

NON-PROFIT ORGANIZATION “GUARANTEE FUND - MICROCREDIT COMPANY OF THE REPUBLIC OF KHAKASSIA” Providing guarantees for loan agreements, leasing agreements and bank guarantees for small and medium-sized businesses.

The total investment The number of projects It is planned to create REGIONAL FUND FOR THE DEVELOPMENT OF INDUSTRY OF capacity of the project is from the Republic of more than THE REPUBLIC OF KHAKASSIA Khakassia Providing concessional loans (from 1% to 5%) for the development of industrial entities billion290 roubles 7000jobs implementing investment projects in the manufacturing sector. 13

8 9 Investment INVESTMENT OFFERS offers Light industry

Creation of a computer-aided garment Metallurgy Information manufacturing technologies

Light industry 200 billion Sayanogorsk

Tourism Advantages: a favourable geographic location will allow for import substitution of products from China, for the regions of Mineral resources Siberia and the Far East. The available site situated within the processing city and provided with an engineering infrastructure. Sayanogorsk is a monotown town with federal support measures envisaged for production. Low cost of electricity - 4.5 roubles / kW * hour. Public and private Agriculture partnership

Mineral resources processing Metallurg Creation of cement plants Creation of an enterprise for the production of pig iron, steel and steel products 12,8 billion Bogradsky district 27 billion Abaza

Advantages: high energy security of the republic; availability of a local Advantages: нavailability of a raw material base with good physical raw material base (Abakanskoe and Teiskoye deposits) with Fe content and mechanical properties in the vicinity of the transport and in raw ore; availability of power-generating coals of the Beysky coal logistics infrastructure; absence of competitors in the Republic deposit, suitable for the manufacture of cast iron; availability of a of Khakassia and the neighbouring regions relatively remote from developed transport and logistics infrastructure (railway, roads, other market players (Republic of Tuva, Republic of Altai); stable airport); opportunity to use the Abaza territory of priority social and high demand for cement. economic development as a site for manufacturing organization. The information is confirmed by calculations reflected in the Feasibility Study for the construction of a pig iron production plant (developer: Federal State Unitary Enterprise Central Research Institute for Ferrous Metallurgy named after I.P. Bardin). Organization of production of gypsum construction materials. Creation of a production for steel wire ropes in the Integrated1 development of the Khamkhazskoe gypsum deposit monotown1 of Abaza 250 billion Abaza 150 million Askizsky district, in the future - the industrial Advantages: an advantageous location between large industrial park «Chernogorsky» regional centres of the country (Krasnoyarsk Territory, Kemerovo and Irkutsk Regions) makes it possible to supply rope at competitive prices due to the lack of expensive logistics; availability of industrial Advantages: preferences for residents of the industrial park sites, availability of the necessary infrastructure; opportunity to use «Chernogorsky». the Abaza territory of priority social and economic development as a site for manufacturing organization. 10 2 2 11 INVESTMENT OFFERS INVESTMENT OFFERS

Agriculture Tourism Creation of a cluster for selection, cultivation and processing Priority tourist area Mountain Khakassia of fiber crop 509 million Tashtypsky district 3,125 billion Abakan and Chernogorsk, Bogradsky district Advantages: the territory of the project has not yet been developed Advantages: climatic conditions for cultivation of industrial hemp by numerous tourists; there is a potential to develop all-seasonal are similar to those of Krasnodar Territory. Variety zonation does types of tourism; there is a unique opportunity to design and form not require large costs, southern varieties perfectly take root in the an exemplary tourist cluster from scratch in a single architectural territory of Khakassia. Large research base: Federal State Budgetary style, based on requests; a regional road passes through the cluster, Scientific Instituton “Research Institute of Agrarian Problems of connecting the two regions and having access to Mongolia. Khakassia”, Federal State Budgetary Educational Organization of Higher Education “Khakas State University named after N.F. Katanov”, Krasnoyarsk State Medical University named after professor V.F. Voino- Yasenetsky. Priority tourist area “Shira Lakes”

Creation of a cluster for the cultivation and processing 2,35 billion Shirinsky district of rapeseed 1 Advantages: possibility to connect to electricity; popular tourist 800 million Bogradsky district attractions; transport accessibility - regional road “Achinsk - Uzhur - Shira - Troitskoie”. Advantages:1 geographical proximity to the main importing countries of rapeseed and rapeseed oil from Siberia - China and Mongolia. The possibility of direct road communication with Mongolia and further to China - eliminates the chain of intermediaries in the process of exporting rape oil seeds, increasing the final profitability of the project Priority tourist area “Podnebesie” and ensuring stable sales. 17,12 billion Askizsky district Advantages: availability of the Abakan-Askiz-Birikchul-Biskamzha Information technologies Road, availability of the Abakan-Balyksa and Novokuznetsk-Balyksa railway communication; various mountain routes, possibility to Creation2 of an innovative IT centre connect to electrical supply network. 600 million Abakan Advantages: availability of high-speed fiber-optic Internet communications; favourable electricity tariffs; availability of Priority tourist area “Priiskovy” qualified personnel; favorable tax conditions. 3 4 billion Ordzhonikidzevsky district Advantages: a unique area that is very popular among freeriders and snowmobile lovers; availability of the necessary infrastructure. Construction of a Data Centre Chernogorsk, from 800 million Sayanogorsk, Investment offer “Babik Valley” as part of the priority tourist 1up to 1 billion area “Karlov Stvor” Ust-Abakansky district 4 Advantages: high energy security in the region, demand for this 800 million Beysky district infrastructure. The volume of electricity consumption is from 20 Advantages: Road “Abakan-Sayanogorsk-Maina-Sayano-Shu- to 80 MW. shenskaya HPP”, 9 km to the Gladenkaya ski slope, breathtaking view of the Borus mountain range, plenty of excursion sites. 12 2 5 13 INVESTMENT STRUCTURE INVESTMENT OFFERS Industrial Park “Chernogorsky”

Tourism Transport accessibility

Complex investment project “Development of roadside ROAD Р-257 tourist infrastructure” 2 km Federal Road Regional centre Ust-Abakan Ordzhonikidzevsky district, Shirinsky P257 “Yenisei” (Abakan) 150 million district, Ust-Abakansky district, 5 km Altaisky district, town of Sayanogorsk, «CHERNOGORSKIE KOPI» Tashtypsky district, Askizsky district 2km 18km Advantages: high tourist potential, big tourist flow. 18 km

Abakan Airport railway Airport loading station “Abakan” “Chernogorskie Public and private partnership Kopy” Reconstruction of the existing 3-storey building of the 18km 5km 6State Budgetary Institution of the Republic of Khakassia “Sayanogorsk Rehabilitation Centre for Children”

420 million Sayanogorsk The territory of the industrial park is an industrial zone intended for the construction Advantages: reconstruction of the existing 3-storey building of State of enterprises of II-V hazard class. Budgetary Institution of the Republic of Khakassia “Sayanogorsk Rehabilitation Centre for Children” with an area of 3888 sq. m.; designing, construction and equipping of a residential complex with a There have been formed 13 vacant land plots ranging from 1 to 6 hectares. The total area swimming pool hosting at least 200 places, number of storeys  at least of the park is 40 hectares, with the possibility of expansion to 200 hectares. Industrial 3 floors; total area of at least 3300 sq. m. park concept - Greenfield. Advantages: the most popular medical profile is neurorehabilitation, traumatic and orthopedic rehabilitation of children, the growing need of the population in the rehabilitation of children. The industrial park is fully provided with engineering and transport infrastructure, created according to a unified general layout. Reconstruction of the State Budgetary Institution of the Republic of Khakassia “Chernogorsk Social and Health 1Centre named after A.I. Lebed ” with a building extension Advantages for residents of the cultural and recreational complex 180 million Chernogorsk • exemption from land rent for the construction period Description: reconstruction of State Budgetary Institution of the Republic of Khakassia “Chernogorsk Social and Health Centre • shortened waiting time for processing an application to obtain a resident status named after A.I. Lebed” with a building extension of the cultural and recreational complex; designing, preparation of the territory, reconstruction of a residential complex for 120 places, fitting with • possibility of buying out land plots equipment. Advantages: the most popular medical profile is neurorehabilitation, traumatic and orthopedic rehabilitation, the growing need of the population in rehabilitation. 2Construction and operation of a boiler house and heating networks in the Priiskovoye Ordzhonikidzevsky district, 128 million village Priiskovoye Advantages: the village of Priiskovoye is the centre of active development of the tourist cluster “Priiskovy”; today there are 12 hotel complexes of various categories (up to 4 stars) which are both operating and under construction. It is planned to actively develop the territory with the construction of additional collective accommodation facilities. 14 3 15 INVESTMENT STRUCTURE Priority Social and Economic Development Area “Abaza”

Transport accessibility

Federal Road Regional centre Аbazа P257 “Yenisei” OF THE PROJECT (Abakan)

REPUBLIC OF KHAKASIA km km 189 154

Airport railway loading “Abakan” station “Abaza” 148km 0,5km

Preferences for Priority Social and Economic Development Area residents

Priority Social Standard and Economic Tax type scheme Development Duration of incentives Area

Corporate income tax 20% within 5 tax periods from the Federal budget 2% 0 moment of receipt of the first profit Regional budget 18% 10 next 5 tax periods Corporate property tax 2,2% 0 10 years Land tax 1,5% 0 10 years

Mineral extraction tax from 3,8% Ktd-0 from the 1st to the 24th tax period (exemption - the use of a decreasing coefficient (Ktd) up to 16,5% Ktd-0,2 from the 25th to the 48th tax period

Requirements for investment projects of residents

• Types of economic activity in accordance with the Decree of the Government of the Russian Federation dated July 24, 2017 No. 870 • The volume of capital investments in the first two years amounting to 5 million roubles • The number of jobs created in the first two years  20 units • Attraction of foreign labour  no more than 25% • Contracts with a city-forming enterprise, or its subsidiaries, and (or) receiving profit from the sale of goods, rendering services to the city-forming organization of a monotown or its subsidiaries, in % of project profit  no more than 50%

16 CONTACTS FOR DEVELOPMENT ISSUES

MINISTRY OF DEVELOPMENT FUND NON-PROFIT ECONOMIC OF THE REPUBLIC ORGANIZATION DEVELOPMENT OF OF KHAKASSIA «GUARANTEE FUND - THE REPUBLIC OF MICROCREDIT COMPANY KHAKASSIA OF THE REPUBLIC OF KHAKASSIA»

Bogushevich Paul Sorokina Viktor Nikolaevich Denis Anatolievich Marina Leonidovna Minister of Economic Head Head Development 2a Druzhba Narodov Prospect, 2a Druzhba Narodov Prospect, of the Republic of Khakassia Abakan, Republic of Khakassia Abakan, Republic of Khakassia +7 3902 24 82 00 +7 800 350 37 53 +7 3902 24 86 88 [email protected] [email protected] [email protected]

BUSINESS SUPPORT CENTRE +7 3902 24 81 48

EXPORT SUPPORT CENTRE +7 3902 24 80 97 INVESTMENT SUPPORT CENTRE +7 3902 24 80 95

IVESTMENT PORTAL OF THE REPUBLIC OF KHAKASSIA

invest.r-19.ru

NON PROFIT ORGANIZATION GUARANTEE FUND MICROCREDIT COMPANY OF THE REPUBLIC OF KHAKASSIA