PRIORITY DEVELOPMENT AREA «YEFREMOV» («YEFREMOV» PDA)

Priority Development Area «Yefremov» established in accordance with the Decree of the RF Goverment from 16.03.2018 №269 YEFREMOV CITY DISTRICT GENERAL INFORMATION MOSCOW

MOSCOW ADMINISTRATIVE CENTER REGION

YEFREMOV TOWN Zаoksky

М6 М2 Aleksin М4 KALYGA Yasnogorsk REGION TRANSPORT INFRASTRUCTURE Leninsky Venyov RYAZAN REGION М4 «DON» - 7 KM FROM YEFREMOV Suvorov Dubna TULA Novomoskovsk

Odoyev Shchyokino Uzlovaya Kimovsk Kireyevsk DISTANCE TO MAJOR CITIES Belyov

Arsenyevo Bogoroditsk Plavsk TULA LIPETSK ORYOL KALUGA MOSCOW Tyoploye Volovo LIPETSK 150 KM 150 КМ 180 КМ 250 КМ 310 КМ REGION

Куркино Chern RAILWAY MOTOR ROADS OF REGIONAL Arkhangelskoye YEFREMOV LINE IMPORTANCE

«MOSCOW-DONBAS» «LAPOTKOVO- YEFREMOV », «ORYOL-YEFREMOV», ORYOL «RYAZAN-RYAZHSK- YEFREMOV », REGION «CHERN- MEDVEDKI» YEFREMOV CITY DISTRICT ECONOMY

POPULATION FOOD 55 336 PEOPLE PRODUCTION 64% URBAN POPULATION - 34 734 PEOPLE RURAL POPULATION - 20 602 PEOPLE TRADE, SERVICES 17%

CHEMICAL NUMBER OF WORKING AGE PRODUCTION 7% PERSONS 29 492 PEOPLE ENERGY INDUSTRY 5% PDA ECONOMY PDA

AGRICULTURE 4% AVERAGE MONTHLY SALARY (2018) OTHER 3% SECTORAL STRUCTURETHE «YEFREMOV» OF 32 575 RUBLES Алексин Yasnogorsk

YEFREMOV CITY DISTRICT Leninsky Venyov LARGEST COMPANIES

Cargill is a leading foreign investor in Russia who has invested in the development of agricultureСуворов andfood industry of the countryДубна more than 1,100 million US dollars. The company successfully operates in the production and sale of grain, oil, sugar, cocoa products, beef, pork, turkey meat, chicken, etc. Novomoskovsk In Russia, the company has assets in the Volgograd, Voronezh, Leningrad, Moscow, Rostov regions, in the Krasnodar Territory. The production of vegetable oils, starch products, premixes, premixes and forage for livestock as well as poultry semi-finished products is located in the Tula region. Одоев Shchyokino Kimovsk Kubanmaslo-EMZ is the largest producer of corn oil in Russia today. Kubanmaslo-EMZ LLC is a universal enterprise that is capable to process almost all types Uzlovaya Kireyevsk of oilseeds (rapeseed, corn germ, sunflower, flax, etc.) and has substantial experience.Белев

Lactalis the world leader in the field of production of cheese and dairy products. The company has the status of a leading expert in cheese making. The history of Lactalis dates back over 80 years. In the Tula region, the company owns an asset of JSC "Yefremov butter and cheeseАрсеньево factory." Today, the plant is equipped with Bogoroditsk modern laboratories and high-tech equipment, the production process is maximally automated. Mozzarella Galbani is not the onlyПлавск example of a successful launch of the production of foreign cheeses at JSC "Yefremov butter and cheese factory". Specialists from Yefremov are proud of both tender Burrata cheese, which is made by hand, and feta pickled cheese, recently launched under the President brand. Tyoploye

Yefremov Synthetic Rubber Plant is one of the first synthetic rubber plants in Russia. On May 27, 1933, the Yefremov citizens shipped the first wagon of Volovo synthetic sodium butadiene rubber SKB, obtained by the method of academician SV. Lebedev. The Yefremov plant is still the only manufacturer of high molecular polyisobutylene (from the P-85 to P-200 brand) in Russia, which is widely used in the rubber industry, electrical engineering, and medicine. Unique equipment has been created and production of low molecular polyisobutylene grades from P-10 to P-50 has been launched. Also, the company produces Kurkino low molecular polybutadiene grades SKDN-N, SKDSN. Чернь

Yefremov bakery since 1965 has been successfully developing in the Russian market and has established itself as a manufacturer of first-class bakery,Arkhangelskoye confectionery and cake products. More than 260 employees work for the benefit of production. Products manufactured by our company are daily delivered to every corner of Russia. Today, approximately 300 counterparties are cooperating with us, including such sales giants as Auchan; Magnet; Pyaterochka; Lenta; Dixie etc. YEFREMOV Such large enterprises as JSC “VOZROZHDENIE”, JSC “SP RASSVET”, JSC “RODINA”, JSC “YEFREMOVSKY ELEVATOR No.2”, JSC “ SP Vyazovo”, JSC “MEZHDURECHYE AGRO” and JSC “COLCHOZ IM. SUVOROVA” operate in the field of agriculture as well. YEFREMOV PDA TAX BENEFITS

CORPORATE INCOME TAX (IN ACCORDANCE WITH ARTICLE 284 OF THE TAX CODE OF THE RUSSIAN FEDERATION AND IN ACCORDANCE 0% 12% Р WITH THE LAW OF THE TULA REGION OF 18.12.2017 NO. 103-LRA "ON PREFERENTIAL TAXATION OF TAXPAYERS-RESIDENTS OF THE TERRITORY OF ADVANCED SOCIAL AND ECONOMIC DEVELOPMENT, CEDAW FIRST 5 YEARS, 6-10 YEARS FROM THE MOMENT OF ON THE TERRITORY OF THE TULA REGION») RECEIPT OF THE FIRST PROFITS COMPANY PROPERTY TAX (IN ACCORDANCE WITH THE LAW OF TULA’S REGION OF 18.12.2017 №103-LRA "ON THE PREFERENTIAL 0% 1,1% 1,5% TAXATION OF RESIDENT TAXPAYERS OF THE TERRITORY OF ADVANCED SOCIAL AND ECONOMIC 1-5 YEAR, 6-7 YEARS 8-10 YEARS DEVELOPMENT ESTABLISHED ON THE TERRITORY OF THE TULA REGION») FROM THE MOMENT OF OBTAINING OF THE STATUS OF THE PDA RESIDENT

% LAND TAX 0% FOR 10 YEARS

INSURANCE CONTRIBUTIONS TO NON-BUDGET FUNDS OF THE RF (IN ACCORDANCE WITH SUBPARAGRAPH 12 OF PARAGRAPH 1 AND SUBPARAGRAPH 5 OF PARAGRAPH 2 OF ARTICLE 427 % % OF THE TAX CODE OF THE RUSSIAN FEDERATION) 7,6 UP TO 10 YEARS (INCLUDING 6%- PENSION RF, 1,5%- CSI RF, 0,1% - CHI RF) YEFREMOV PDA REQUIREMENTS FOR PDA RESIDENTS

INVESTMENT PROJECTS REQUIREMENTS FOR OBTAINING THE STATUS OF A PDA RESIDENT (IN ACCORDANCE WITH GD OF RF NO. 614)

REGISTRATION OF A LEGAL ENTITY ON THE TERRITORY OF A MONOTOWN

BUSINESS ACTIVITY IS CARRIED OUT EXCLUSIVELY ON THE TERRITORY OF A MONOTOWN

THE NUMBER OF WORK PLACES CREATED - AT LEAST 10 PLACES DURING THE FIRST YEAR, AT LEAST 30 DURING THE PROJECT IMPLEMENTATION PERIOD

A PDA RESIDENT CANNOT BE A CORE ENTERPRISE OF A MONOTOWN OR ITS SUBSIDIARY COMPANY

THE VOLUME OF FOREIGN EMPLOYEES DOES NOT EXCEED 25 PERCENT OF THE TOTAL NUMBER OF EMPLOYEES

THE AMOUNT OF CAPITAL INVESTMENT IS AT LEAST 2.5 MILLION RUBLES DURING THE FIRST YEAR

THE AMOUNT OF EARNINGS GAINED FROM COOPERATION ACTIVITIES WITH A CORE ENTERPRISE OF THE CITY DOES NOT EXCEED 50 PERCENT OF ALL INCOME

THE PRODUCTION OF EXCISABLE GOODS (WITH THE EXCEPTION OF CARS AND MOTORCYCLES) IS NOT INCLUDED

THE EXTRACTION OF CRUDE OIL AND NATURAL GAS; THE PROVISION OF SERVICES IN THE FIELD OF OIL AND NATURAL GAS EXTRACTION; PIPELINE TRANSPORT FIELD; PRODUCTION OF PETROLEUM PRODUCTS; WHOLESALE AND RETAIL TRADE; LOGGING; REAL ESTATE TRANSACTIONS – ARE NOT INCLUDED YEFREMOV PDA REQUIREMENTS FOR INVESTMENT PROJECTS ALLOWED TYPES OF ECONOMIC ACTIVITY WITH AN INDICATION OF MINIMUM INVESTMENT VOLUMES FOR RESIDENTS OF YEFREMOV «PDA» (IN ACCORDANCE WITH THE DECREE OF THE GOVERNMENT OF THE RUSSIAN FEDERATION OF 16.03.2018Г. №269)

Crop and animal production, hunting and provision Fisheries and fish farming of related services in these areas 25 mln rubles 25 mln rubles The production of non-alcoholic drinks; mineral water and Manufacture of food products 25 mln rubles other bottled drinking water production 25 mln rubles

Textile production 25 mln rubles Garment production 25 mln rubles

Production of leather and leather products 25 mln rubles Production of paper and paper products 25 mln rubles Manufacturing of fabricated metal products, Metal manufacture 25 mln rubles except machinery and equipment 25 mln rubles

Wood processing and the manufacturing of wood and cork Production of medicaments, and components used products except production of straw-work goods and goods 25 mln rubles for medical purposes 25 mln rubles made of plaiting materials Production of chemicals and chemical products Manufacture of rubber and plastic products 25 mln rubles (except for OKVED 20.17, 20.16) 25 mln rubles

Production of vehicles, trailers and semitrailers 25 mln rubles Manufacturing of other vehicles and equipment 25 mln rubles

Sports, recreation and entertainment fields of business 5 mln rubles Furniture manufacture 20 mln rubles

Education 5 mln rubles Healthcare activities 5 mln rubles YEFREMOV PDA STEPS IN GETTING RESIDENT STATUS

FOR LEGAL ENTITIES HAVING EXISTING FOR NEW LEGAL ENTITIES PRODUCTION CAPACITY 1. Registration of a legal entity on the territory of Yefremov municipality 1. Submission of an application for a conclusion of the agreement to the administration of the municipal district 2. Providing municipal administrations with an application for a conclusion of the agreement 1.1 Passport of the investment project (in due form) 1.2 Key indicators of the investment project (in due form) 2.1 Passport of the investment project (in due form) 1.3 Business plan of the investment project (in form) 2.2 Key indicators of the investment project (in due form) 1.4 Copies of constityent documents 2.3 Business plan of the investment project (in due form) 1.5 Document, which approves that the implementation of the investment project does not imply the performance of 2.4 Copies of constityent documents contracts concluded with core enterprise of Yefremov single-industry town or its subsidiaries and (or) receiving revenues from selling of products to, the provision of services to the core enterprise of Yefremov single-industry town or its 2.5 Document, which approves that the implementation of the investment project does not imply the subsidiaries in amount exceeding 50 percent of all income received from the sale of goods (services) produced performance of contracts concluded with core enterprise of Yefremov single-industry town or its (provided) as a result of the implementation of the Applicant's investment project subsidiaries and (or) receiving revenues from selling of products to, the provision of services to the core 1.6 Document, which approves that the implementation of the Applicant's investment project, does not require the enterprise of Yefremov single-industry town or its subsidiaries in amount exceeding 50 percent of all engagement of foreign labor force in an amount exceeding 25 percent of the total number of employees 2. Providing a certificate indicating the average number of employees of a legal entity for the last 3 years (or for the income received from the sale of goods (services) produced (provided) as a result of the period of its existence, if it exists less than 3 years), issued by the State statistical agencies (for small enterprises - implementation of the Applicant's investment project certified by the head of the organization) 2.6 Document, which approves that the implementation of the Applicant's investment project, does 3. Providing the information stated in the consolidated State register of legal entities; (for the date of not earlier than not require the engagement of foreign labor force in an amount exceeding 25 percent of the total one year preceding the year of application submission with simultaneous application of the original) 4. Providing the information on the Applicant’s registration with the tax authorities on the territory of Yefremov number of employees 5. Providing information on the fulfillment by a taxpayer (payer of a fee, tax agent) of the obligation to pay taxes, fees, 3. The conclusion of an agreement on the implementation of activities on the Priority Development penalties, fines, interest (presented as of not earlier than the last reporting date) Area “Yefremov” 6. Providing information on the status of payment of insurance contributions , penalties and fines (submitted as of not earlier than the last reporting date) 7. Providing information on the absence of commencing of insolvency (bankruptcy) proceedings against the Applicant and / or reorganization or liquidation of a legal entity that the Applicant has a relation to in accordance with the legislation of the Russian Federation. 8. The conclusion of an agreement on the implementation of activities on the Priority Development Area “Yefremov”. RESIDENTS OF YEFREMOV PDA

LLC “Yefremov-Pharma” IMPLEMENTATION INVESTMENT OKVED PERIOD VOLUME JOBS CONSTRUCTION OF A FULL CYCLE DEVELOPMENT AND LARGE-SCALE PRODUCTION OF ACTIVE PHARMACEUTICAL 21.10 2018-2021 2 038 50 SUBSTANCES OBTAINED BY BIOTECHNOLOGICAL SYNTHESIS Production of mln rub pharmacentical substance LLC “Lister” IMPLEMENTATION INVESTMENT OKVED PERIOD VOLUME JOBS CONSTRUCTION OF A PLANT FOR PROFESSIONAL INNOVATIVE DISINFECANTS 20.14.7 2018-2020 124 35 Production of mln rub other chemical organic LLC “Meat company Astra” IMPLEMENTATION INVESTMENT OKVED PERIOD VOLUME JOBS CONSTRUCTION OF MEAT PRODUCTS MANUFACTURING FOR SALE IN THE RUSSIAN FEDERATION AND FOR EXPORT ABROAD 10.11 2018-2019 313 220 Processing and mln rub THE FIRST PHASE OF THE PROJECT WAS IMPLEMENTED - JULY 2019 canning of meat

LLC “Prombiotechnologies” IMPLEMENTATION INVESTMENT OKVED PERIOD VOLUME JOBS CONSTRUCTION OF A PLANT FOR ADVANCED PROCESSING OF COARSE GRAINS AND PRODUCTION OF AMINO ACIDS AND OTHER 10.91.3 2018-2020 2 900 173 FUNCTIONAL ADDITIVES Production of feed mln rub microbiological protein, premixes ... RESIDENTS OF YEFREMOV PDA

LLC “Tula vegetable oil plant” IMPLEMENTATION INVESTMENT OKVED PERIOD VOLUME JOBS

CONSTRUCTION OF THE EXTRACTIVE PLANT FOR THE DEEP 10.41 2018-2021 4 000 100 Production mln rub PROCESSING OF SOYBEANS AND RAPESEEDS of oils and fats

LLC “Zdorovyy vybor” IMPLEMENTATION INVESTMENT OKVED PERIOD VOLUME JOBS THE PRODUCTION OF PET FOOD FOR THE RUSSIAN FEDERATION SALES ONLY 10.92 2019-2020 158 395 Production mln rub of finished feed for non-productive animals LLC “Mir Detstva” IMPLEMENTATION INVESTMENT OKVED PERIOD VOLUME JOBS PRODUCTION OF CONFECTIONERY 10.86 2019-2020 353 159 Production mln rub of baby food and diet food products

LLC “BWC- Techno” IMPLEMENTATION INVESTMENT OKVED PERIOD VOLUME JOBS THE PRODUCTION OF ANIMAL PROTEIN BASED ON MICROBIOLOGIC SYNTHESIS TECHNOLOGY 10.91.3 2019-2021 150 50 Production of mln rub microbiological protein, premixes, feed vitamins, antibiotics, amino acids and enzymes YEFREMOV PDA SUPPORT MEASURES OF INVESTMENT ACTIVITIES

GOVERNMENT OF THE TULA REGION

ALLOCATION OF LAND SITES WITHOUT HOLDING TENDERS PROVIDED THAT PROJECTS ARE IMPLEMENTED IN THE TULA REGION (Decree of the Government of the Tula Region of 01.06.2017 No. 214 “On measures of implementation of certain provisions of the law of the Tula Region dated July 5, 2016 No. 61-LTR “On the establishment of criteria that socio-cultural and public utilities shall meet, large-scale investment projects for the placement (implementation) of which it is allowed to provide a state or municipal land plot for rent without tendering”)

CONSTRUCTION OF TRANSPORT, ENERGY AND ENGINEERING INFRASTRUCTURE, AS WELL AS FOR THE IMPLEMENTATION OF CONCESSION PROJECTS AT THE EXPENSE OF THE INVESTMENT FUND OF THE TULA REGION

(in accordance with the Decree of the Government of the Tula region dated December 18.12. 2013 No. 759 “On approval of the procedure for the formation and use of budget allocations of the investment fund of the Tula region”)

SUBSIDIZING THE CONSTRUCTION OF TRANSPORT, ENERGY, AND ENGINEERING INFRASTRUCTURE OBJECTS, INCLUDING LINEAR OBJECTS OF THE FUEL AND ENERGY INDUSTRY, AS WELL AS BUYING BACK OF LAND IN ORDER TO IMPLEMENT HERE CAPITAL DEVELOPMENT THAT IS NECESSARY FOR INVESTMENT PROJECTS OF TRANSPORT, ENERGY, AND ENGINEERING INFRASTRUCTURE IMPLEMENTATION. (in accordance with the Decree of the Government of the Tula region dated 03.16.2013 No. 354 “On approval of the rules for granting subsidies from the budget of the Tula region to organizations that have made investments in the form of capital investments on the territory of the Tula region”) YEFREMOV PDA SUPPORT MEASURES OF INVESTMENT ACTIVITIES

Construction and subcontracting construction organizations Authorities 1 2 of the Tula Region TULA REGION DEVELOPMENT CORPORATION “ONE STOP SHOP” 3 Federal SUPPORT PROCEDURE authorities

4 24/7 Banks Р 5 Regional INVESTOR development institutes

6 Natural 8 7 monopolies

Municipalities Federal development institutes YEFREMOV PDA DEVELOPMENT INSTITUTES FUND OF MONOCITIES DEVELOPMENT SME SUPPORT

FINANCING OF INVESTMENT PROJECTS REGIONAL SUPPORT OF SME SUBJECTS FORM OF PARTICIPATION MICROLOANS - Provision of interest-bearing loan - Amount - up to 5 million rubles - Duration - up to 3 years TERMS OF PROVIDING SUPPORT BY THE FUND - Rate - 3% per annum -Loan amount - from 5 to 1000 million rubles - Interest rate: SUBSIDY PROGRAM 0% per annum (for loans up to 250 million rubles) 5% per annum (for loans over 250 million rubles) SME CORPORATION - Period - up to years 15 - Rate up to 8.5% per annum - Loan deferment - not more than years 3 - For investment purposes - from 3 million to 1 billion rubles - Period up to 10 years REQUIREMENTS FOR THE PROJECT AND THE PROPONENT (BORROWER) - For replenishment of working capital - from 3 to 100 million rubles - PROPONENT (borrower) - individual entrepreneur - Period up to 3 years (for loans up to 250 million rubles) or legal entity, resident of - Subsidies recipients - authorized banks that have been selected Russian Federation - Time-line of subsidy payments to banks – each monh - The proponent has no arrears to the budget and funds - The existence of a socio-economic benefits for a single-industry town SME UNITIES LOAN STIMULATION PROGRAM - Credit ceilings not less than 3 million rubles - up to 10.6% APR for SMALL enterprises LIMITATIONS - up to 9.6% per annum for medium-sized enterprises - The participation of the Fund in the project is not more than 80% of the total project cost - The resources of the Fund can only be directed to capital investments - The actual concluded General Development Cooperation Agreement made GUARANTEE SUPPORT FOR SMES with a Russian subject, in relation to a single-industry town. (on joint implementation of the integrated project) SME CORPORATION 83 RGO СОФИНАНСИРОВАНИЕ ОБЪЕКТОВ ИНФРАСТРУКТУРЫ - Provision of surety - Provision of guarantee - Amount - from 100 million rubles - Amount – up to 25 million rubles Фонд безвозмездно предоставляет средства бюджету Субъекта РФ в размере до 95% от стоимости объектов инфраструктуры SME BANK - Warranty ВОДОСНАБЖЕНИЕ ВОДООТВЕДЕНИЕ ГАЗОСНАБЖЕНИЕ ТЕПЛОСНАБЖЕНИЕ СВЯЗЬ - Amount - 25-100 million rubles АВТОМОБИЛЬНЫЕ ДОРОГИ ЖЕЛЕЗНЫЕ ДОРОГИ ЭЛЕКТРОСНАБЖЕНИЕ YEFREMOV PDA DEVELOPMENT INSTITUTES

PROGRAMMS OF INDUSTRIAL DEVELOPMENT FUND OF THE TULA REGION

PROGRAM «DEVELOPMENT PROJECTS» PROGRAM «COMPONENTS» - Loan amount - from 20 to 100 million rubles - Loan amount -from 20 to 100 million rubles - Loan period up to 5 years - Loan period up to 5 years - The base rate is 5%, 3% with a bank guarantee for the first 3 years, 3% in case of - The rate of 1% in the first three years, during the remaining period - 5% the purchase of Russian equipment, 1% in case of export - Co-financing by the applicant - 20% - Co-financing by the applicant - 50% RF INDUSTRIAL DEVELOPMENT FUND PROGRAMS

PROGRAM PROGRAM PROGRAM PROGRAM "DEVELOPMENT PROJECTS" «COMPONENTS» «COMPONENTS» "CONVERSION"

- Loan amount- from 50 to 500 million rubles - Loan amount - from 50 to 500 million - Loan amount - from 50 to 500 million - Loan amount from 80 to 750 million - Loan period - up to 5 years rubles rubles rubles - The base rate is 5%, and 3% in case ov - Loan period -up to 5 years - Loan period - up to 7 years - Loan period - up to 5 years receiving a bank guarantee for the first 3 - Rate 1% in the first three years, for the - The rate of 1% in the first three years, for - The rate is 1% in the first three years, for years, 3% in case of the purchase remaining the remaining term of 5% the remaining period of 5% of Russian equipment, 1% in case of export period - 5% - Co-financing by the applicant - 20% - Co-financing by the applicant - 20% - Co-financing by the applicant - 50% - Co-financing by the applicant - 20%

PROGRAM PROGRAM PROGRAM PROGRAM “MARKING OF MEDICAMENTS ” "DIGITALIZATION OF INDUSTRY" “LABOR PRODUCTIVITY” "FINANCE LEASE"

- Loan amount - from 5 to 50 million rubles - Loan amount - from 20 to 500 million rubles - Loan amount - from 50 to 300 million rubles - Loan amount from 5 to 500 million rubles - Loan period up to 2 years - Loan term up to 5 years - Loan period - up to 5 years - Loan period up to 5 years - 1% rate - 1% rate in case of using software of the - Payment 1% - 1% rate Russian Federation or system integrator, - Co-financing by the applicant - 20% - The maximum loan amount of the Fund is in other cases - 5% up to 27% of the total cost of industrial - Co-financing by the applicant - 20% equipment

TULA REGION DEVELOPMENT CORPORATION

4, Mendeleevskaya Street,Tula Тел. : (4872) 338 - 008 E-mail: [email protected] invest-tula.com