Khabarovsk Kray

26a Turgeneva St., Suite 210, Khabarovsk, 680000 8 (909) 850-80-60 TERRITORY www.invest.khv.gov.ru khabkrai.invest OF SUCCESS [email protected] INVESTOR GUIDE GRP KEY FIGURES AIR DISTANCE AND FLIGHT habarovsk is the capital of Khabarovsk $10 M. TRAVEL TIME Kray and the Far Eastern Federal District. KIt is a key logistics and infrastructure hub for the exchange of goods between Russia and kray’s area Asia-Pacific countries. It lies on the right bank thnd square km of the Amur River 20 km away from the Chinese 787 border. Khabarovsk Kray is located in the center of population Moscow Beijing Tokyo Seoul the Russian Far East. It borders on the People’s Republic of China in the Southwest, Primorsky 1 328 thnd people Kray in the South, Jewish Autonomous and 7 hours 2 hours 2 hour 2 hour Amurskaya Oblast in the West, the Republic of Sakha (Yakutia) in the Northwest and North, countries exporters and Magadan Oblast in the North. 6 075 km 1 762 km 1 473 km 1 388 km Khabarovsk Kray is one of the largest and 107 most distinct entities of the Russian Federation. Kray’s area is the fourth largest in Russia. One- fifth of Russia’s forests grow in the territory of airports Khabarovsk Kray. 12 Chumikan

Moscow marine ports

Nikolaevsk-on-Amur KHABAROVSK 5 Beijing Seoul Anchorage POLINY OSIPENKO VILLAGE Tokyo Chekdomyn lengths of motor ways SOLNECHNIY VILLAGE KOMSOMOLSK-ON-AMUR km Amursk 10 788

Troitskoe Vanino Sovetskaya Gavan KHABAROVSK lengths of railways km Vyazemskiy 2 050 6 Bikin 7 REASONS TO INVEST IN KHABAROVSK KRAY

• It is the industrial, engineering and logistics center of the Far Eastern Federal District NATIONAL RANKING OF INVESTMENT CLIMATE • It is rich in natural resources 18 th • It provides tax and other preferences OF 85 ENTITIES OF RUSSIAN FEDERATION • It is located in close proximity to the countries of the Asia-Pacific Region • There are three territories of PSEDA and territory with the regime of Free Port 1st IN RUSSIAN FAR EAST

RANKINGS

DOING BUSINESS Russia improved its rating by 85 positions and now ranks 35th in the Doing business-2017 ranking compared to 2011.

8 9 MINERAL RESOURCES: FORESTS:

GENERAL DEVELOPED RESERVES 52 million hectares NATURAL RESOURCES 525 thousand hectares Platinum 23 tons forested area of hayfields and Gold 677 tons RESERVES pastures for livestock Silver 2 195 tons million cubic meters per year Copper 5 million tons 28 allowable cut LAND: Tin 354 thousand tons Raw materials for thousand km 993 million tons 79 million hectares 665 thousand hectares 98 thousand hectares 584 cement manufacturing 5 billion cubic meters per year total length Tungsten trioxide 27 thousand tons total Kray’s land of agricultural land of arable land total timber reserves area of rivers Coal 2.3 bln tons

LABOR FORCE:

736 thousand people 2nd ranking in Far Eastern Federal District 34% with higher education

10 11 Khabarovsk Shipyard (KS) Is one of the largest shipbuilding enterprises in the Russian Far East. The main activity of INDUSTRIAL POTENTIAL the company is the construction of vessels of all designations with water displacement up to 1500 tons. The plant has its own access roads, which are connected to National Transit railways and motor roads. basis for rapid industrial development of Amur Shipyard (AS) the region was established in Khabarovsk Kray.A High-tech manufacturing is seen as the Is the largest shipbuilding enterprise in the main development trend. Russian Far East. AS has all the effective capacity and technologies to manufacture civil and Khabarovsk & Branch of PJSC “Sukhoi” combat ships and vessels, including nuclear Komsomolsk-on- “Gagarin Komsomolsk-on- submarines with water displacement up to Amur Oil Refinery Amur Aircraft Production 25,000 tons. Major enterprises of the domestic Association (KoAAPA)” production in the Russian Far East, with Komsomolsk-on-Amur Aircraft Plant is processing capacities of 13 million tons of oil the leading production site of the United per year. Companies supply oil products to Aircraft Corporation advanced combat and consumers in Russian Far East and export to civil aircrafts: Su35, Su57 and Sukhoi Superjet Asia-Pacific region. 100. The plant also produces combat aircraft Su27SM and Su30. Production of Su35, Su27SM and Su30 is carried out under contracts with the Ministry of Defense of the Russian Federation. Company group TOREX (Amurstal Factory) Is the only metallurgical plant in the Far East that has been using electric steelmaking technology since 1935 with further re-division into long products and sheet metal. The company produces steel for the reinforcement of reinforced concrete structures, rolled angular, round, wire rod, wire, and billets.

12 13 INDUSTRIES TO INVEST

TRANSPORT LOGISTICS MANUFACTURING

TOURISM AND RESORTS CREATION OF HIGH-TECH AND INNOVATIONS

EXTRACTION AND PROCESSING OF MINERALS PHARMACEUTICALS

AGRICULTURAL PRODUCTION FISH PROCESSING WOOD PROCESSING

14 15 PREFERENCES FOR RESIDENTS PSEDA FREE PORT One-stop-shop approach to assist investors No-bid land lease PRIORITY SOCIAL Off-quota foreign worker employment AND ECONOMIC Regime of Free Customs Zone Accelerated VAT refund procedure (10 days) DEVELOPMENT AREA FREE PORT Management company’s right to plead residents’ cases before court Preferable rates for the lease of land plots Construction of infrastructure facilities is financed by the budget funds riority Social and Economic Development he Free Port is a territory covering some Area (PSEDA) is a territory with a special constituent entities of the Russian Relaxed Visa requirements for foreigners Plegal status for doing business, offering a TFederation in the Far Eastern Federal District (Visa-free entry to Russia for 8 days) number of tax incentives and administrative where to a mechanism of state support preferences for investors. to businesses, including tax incentives, administrative preferences and special visa regime, is applied. The regime of Free Port was extended to REGIONAL SUPPORT SYSTEM FOR INVESTMENT PROJECTS the Khabarovsk Kray, covering the territories Priority Investment Special Investment Regional Investment Grand-Scale of Vanino and Sovetskaya Gavan Municipal Support Project Contract Project Investment Project Districts. Tax rates ьготы налог COMPARISON TABLE OF TAX RATES FOR RESIDENTS OF PSEDA AND FREE PORT • profit tax 15,5% for 5 years 0% for 10 years 0% for 5-10 years • property tax 1,1 % for 5 years 1,1 % for 5 years Tax General tax rate Pseda Free port наTax on the • Tax on the Reduced tax extraction of 0% for 5 years 0% for 5 years extraction of Profit tax 20% natural recourses natural recourses next 5 years next 5 years 13% 13% Regional financial 0% for 5 years 0% for 5 years support* Property tax 2,2% 1,1 % next 5 years 0,5% for 5 years No-bid land lease *Financial support through specialized industry funds Land tax Up to 1,5% 0% for 3 years 0% for 5 years Social security payments 30% 7,6% for 10 years 7,6% for 10 years

16 17 13 725 hectares PSEDA KHABAROVSK total area

RAKITNOE AVANGARD AIRPORT LAZO

The site is offered to establish manufacturing capacities The site is offered to establish manufacturing Construction of modern passenger terminal with The site is offered to establish an in metallurgy, machine manufacturing, production of capacities in machine manufacturing, production of extensive and commercial infrustructure. agricultural production and other types of construction materials, agricultural production, logistics construction materials, agricultural production, logistics activity. and other types of activity. and other types of activity. Territory: Territory: Territory: Territory: 13 000 hectares 95 hectares 510 hectares 119 hectares area of land plots within cadastral blocks area of land plots within cadastral blocks area of land plots within cadastral blocks area of land plots within cadastral blocks 545 hectares 52 hectares 15,5 hectares 2,5% discount of cadastral price industrial site area hectares industrial site area hectares airport terminal area for land purchase 110 hectares 15 hectares “Brownfield” vacant land plots hectares vacant land plots type “Greenfield” “Brownfield” 2,5% discount of cadastral price type type for land purchase 2,5% discount of cadastral price 2,5% discount of cadastral price for land purchase for land purchase Infrastructure: 5,7 MW Infrastructure: Infrastructure: power supply 52 MW 5 000 m3/day 11,5 MW 1 200 m3/day 7,94 Gcal/hour power supply water supply power supply water supply heat supply 10 162 m3/hour 5 000 m3/day 9 300 m3/hour 1 200 m3/day 245 m3/day gas supply wastewater disposal gas supply wastewater disposal water supply 15 km Available 30 Gcal/hour Available 245 m3/day wastewater disposal motor roads rail and vehicle access heat supply rail and vehicle access

Lease price of land plots for PSEDA 2.4 US cents/m2 per year residents

18 19 8 250 hectares PSEDA KOMSOMOLSK total area

PARUS KHOLDOMI

The site is intended for establishment of high- Territory: Kholdomi is the modern ski resort, one of the Territory: tech enterprises and facilities for parts machining, largest and most popular recreation centers of the manufacturing of cutting tools and composite materials, 460 hectares Russian Far East. 1 800 hectares area of land plots within cadastral blocks area of land plots within cadastral blocks and other manufacturing facilities. 60 hectares “Greenfield” industrial site area type 25 hectares 2,5% discount of cadastral price hectares vacant land plots for land purchase “Greenfield” type Infrastructure: 2,5% discount of cadastral price 5,5 MW for land purchase power supply 700 m3/hour Infrastructure: gas supply 6,75 MW Available power supply rail and vehicle access 5 000 m3/hour m3/day gas supply 5 270 water supply 0,565 km 5 270 m3/day motor roads wastewater disposal 1 800 m3/day water supply 1 800 m3/day wastewater disposal Available rail and vehicle access

Lease price of land Lease price of land plots for PSEDA 5.1 US cents/m2 per year plots for PSEDA 1.9 US cents/m2 per year residents residents 20 21 “PRAVOURMIJSKOE” “OLOVYANNO-RUDNAYA” AMURLITMASH AMURSK SITE SITE

27:22:0040207 27:18:0000002 27:05:0000000 27:14:0010807 cadastral block cadastral block cadastral block cadastral block “Brownfield” “Brownfield” “Brownfield” “Brownfield” type type type type 65 hectares 94,1 hectares 288 hectares 2 250 hectares area of land plots within cadastral blocks area of “RFP Group” investment site industrial site area industrial site area 7 721 hectares Located in Verhnebureinskij Municipal Located in Solnechniy Municipal area of land plots within cadastral blocks District of Khabarovsk Kray on the right bank District of Khabarovsk Kray Infrastructure: of Urmi river headwater on the Festivalnoe deposit 2 500 m3/hour site description site description gas supply Infrastructure: 117 km away Suluk railway station 16 km away Solnechnoe village 6,6 MW 10 MW distance to key facilities distance to key facilities power supply power supply Construction of 117 km motor road Suluk – Construction of wastewater до 300 m3/day до 1 000 m3/day water supply water supply Provourmijskoe treatment station and motor road infrastructure development activities infrastructure development activities до 300 m3/day Centralized wastewater disposal wastewater disposal “Tin Ore Company”, JSC. Investment project: 10 Gcal/hour 31 Gcal/hour “Modernization of Solnechnaya Processing heat supply heat supply Site development stages: Plant”, total investments: $13.5 M, 150 jobs Available Available — Transport infrastructure construction: IQ 2018 – IQ 2020; potential resident information rail and vehicle access rail and vehicle access — Mining and Processing Complex design and engineering surveying: IQ 2018 – IIIQ 2019; — Mining and Processing Complex construction: IIQ 2019 – IVQ 2021; Commissioning: IIQ 2022

22 23 25 hectares PSEDA NIKOLAEVSK total area

The site is intended for establishment of fish farming, water transport, machinery and equipment repair and installation.

Territory: 530 000 hectares area of land plots within cadastral blocks “Brownfield” type

Sites: Longary river Perovskogo Cape Innokentievka Koshka Cape Nikolaevsk Chnyrrakh Oremif

24 25 BOLSHOY USSURIYSKY ISLAND

“ONE ISLAND TWO COUNTRIES”

168 square km (16797 hectares) Russian part with the adjacent islands 86 square km (8600 hectares) Chinese part

Bolshoy Ussuriysky Island The territory of the island is intended for the following activities: CHINA • Cultural and religional education • Nature resorts and recreation • Scientific research • Education • Sports • International exhibitions and congresses RUSSIA • Agriculture • Yacht tourism and cruises

26 27 Охотск

Komsomolsk agglomeration includes 10 800 thousand hectares the territories of: total area Komsomolsk-on-Amur city; AGRICULTURAL CLUSTER Amursk, Komsomolsk, Poliny Osipenko, Solnechniy Municipal Districts of Khabarovsk Kray. IN KOMSOMOLSK AGGLOMERATIONАян 67,4 thousand hectares of cultivated land 103,8 thousand hectares of agricultural land

arable land — 11,2 thousand hectares Chumikan 20,4 thousand hectares area of investment sites deposit lands — 3,8 thousand hectares perennial plantations — 5,2 thousand hectares hayfields — 52,7 thousand hectares pastures — 30,9 thousand hectares Nikolaevsk-on-Amur 369,5 thousand people population Poliny Osipenko region POLINY OSIPENKO VILLAGE CLIMATE — monsoon-continental, equated to the regions of the Far North.

Chekdomyn Solnechniyiy region SOLNECHNIY VILLAGE KOMSOMOLSK-ON-AMUR CROPS THAT GROW IN THE AREA ACCORDING TO THE CLIMATE — Amursk early cereals, potatoes, field and greenhouse vegetables, green fodder and Komsomolsk silage corn, annual and perennial grasses. Amursk region region Troitskoe Vanino Sovetskaya Gavan TYPES OF SOILS — peat-gley and meadow-gley soils. KHABAROVSK

Railway

Vyazemskiy Motor roads

Bikin 28 29 BUSINESS SUPPORT INFRASTRUCTURE INVESTMENT AND DEVELOPMENT AGENCY IN KHABAROVSK KRAY

KHABAROVSK KRAY INVESTMENT AND DEVELOPMENT AGENCY, • choose an investment site AUTONOMOUS NONPROFIT ORGANIZATION • provide advice on forms of investor support Mobilize investments in Khabarovsk Kray, monitor and provide consultative support to investment projects www.invest.khv.gov.ru • accompany the investment project at all stages of its implementation 26a Turgeneva St., Suite 210, Khabarovsk Tel.: 8 (909) 850-80-60 • make presentation of your project at congress and exhibition events in Russia and abroad [email protected] • find partners and co-investors EXPORT SUPPORT AND DEVELOPMENT CENTER OF KHABAROVSK KRAY • post information about the project on the Investment Portal of Khabarovsk Krai Making conditions for regional businesses enter foreign markets www.khabexport.com 51 Zaparina St., Khabarovsk Tel.: +7 (4212) 34-10-44, +7 (4212) 34-06-46 [email protected]

FAR EASTERN AGENCY FOR ADVANCEMENT OF INNOVATIONS, AUTONOMOUS NONPROFIT ORGANIZATION Promote innovations, partial recovery of modernization and certification expenses www.dasi27.ru 52 Dzerzhinskogo St., Khabarovsk Tel.: +7 (4212) 47-31-15, +7 (4212) 47-31-16, +7 (4212) 47-31-18 [email protected]

KHABAROVSK KRAY INDUSTRY DEVELOPMENT FUND Providing financial support to the subjects of industrial activity www.frp27.ru 57 Lenina St., Suite 807, 810, Khabarovsk Tel.: 8-800-350-48-27, +7 (4212) 358-848; +7 (4212) 358-868. [email protected]

KHABAROVSK KRAY AGRICULTURAL FUND Support for the comprehensive development of private property, agricultural cooperatives of farmers and businesses in the agricultural sector www.ksf27.ru 4 Lenina St., Suite 808, Khabarovsk Tel.: +7 (4212) 64-30-10 [email protected] 30 Khabarovsk Kray

26a Turgeneva St., Suite 210, Khabarovsk, 680000 8 (909) 850-80-60 TERRITORY www.invest.khv.gov.ru khabkrai.invest OF SUCCESS [email protected] INVESTOR GUIDE