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Kaluga Region Law No.621-03 of 29.12.2009

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Kaluga Region Law No.621-03 of 29.12.2009 / 2016 1 2 CONTENTS VESTNIK QUICK REFERENCE HANDBOOK FOR INVESTORS 5. KALUGA REGION 19. WORKFORCE MIGRATION. 32. FOR SALE: AZLK BRANCH THE LATEST DATA CURRENT ISSUES 34. AGENCY FOR AGROINDUSTRIAL COMPLEX 6. FACTORS CONTRIBUTING TO SUCCESSFUL 21. TRANSPORT DEVELOPMENT REGIONAL BUSINESS DEVELOPMENT & LOGISTICS 8. WE DEVELOP AND MANUFACTURE 36. PPP INFRASTRUCTURE DEVELOPMENT 22. INDUSTRIAL PARKS PROJECTS 24. VORSINO 36. Tsentralniy Stadium 12. TAX BENEFITS 25. GRABTSEVO 38. Morozov Summer Estate 26. KALUGA-YUG 38. Schepochkin House 14. PRINCIPLES OF COLLABORATION WITH INVESTORS 27. ROSVA 38. Cultural & Educational Center 28. K-AGRO 40. Park Complex 16. KALUGA IPT SEZ 29. OBNINSK TECHNOPARK 40. Heating, Water Supply & Sewage PUBLISHED BY KALUGA NEWS AGENCY SINCE 2010 Director – Larisa CHUVIKOVA +7 (910) 860-35-43, [email protected] Editor – Tatiana ANTIPOVA +7 (910) 609-74-21, [email protected] Advertising – Elena BOCHENKOVA +7 (910) 915-00-58, [email protected] PUBLICATION OF THE MINISTRY All rights to information and photo materials and the logo of Kaluga Region FOR ECONOMIC DEVELOPMENT belong to the Agency for Regional Development of Kaluga Region: 41 bldg.2 Dzerzhinskogo St., Kaluga, 248001 Russia OF KALUGA REGION Tel.: +7 (4842) 27-87-85, 27-87-86, arrko.ru 3 4 STATISTICS KALUGA REGION THE LATEST DATA 160 94 8 investment projects new economy enterprises PLACE in progress (since enterprises already opened in 2016 In the National 2006) active Investment Climate 3 Rating (Agency for Strategic Initiatives) 14 472.7 investment billion rubles invested agreements under agreements (since signed in 2016 2006) 10 2,747 464 industrial industrial billion rubles — value of PLACE clusters companies industrial products shipped in the Central Federal in 2015 District by volume of 2 shipped manufacturing products per capita 1.9 fold 14,000 30,000 growth of industrial small and medium individual production in 2015 enterprises entrepreneurs (against 2009) place place AA-(rus) held by Anatoly Artamonov in the innovation development with “stable” outlook – the in the rating of governor rating (National Research region’s long-term rating (Fitch efficiency (Civil Society University Higher School of Ratings) 3 Development Foundation) 5 Economics) 5 OVERVIEW FACTORS CONTRIBUTING TO SUCCESSFUL REGIONAL BUSINESS DEVELOPMENT Beneficial economic and geographic location just outside of the Moscow 1 agglomeration High-quality transport infrastructure integrated with A-130 Moscow-Roslavl 2 the Moscow Region Independent regional model for 12 3 state support of investments and innovations Sukhinichi Lyudinovo 10 “Single window” services 1 4 for investors Stability and diversity of the regional 5 economy 165 km 1,009,772 from Kaluga to Moscow (Ring Road) people population of Kaluga Region 68 km from Kaluga Region’s border to Moscow 29,800 sq.km (Ring Road) area of Kaluga Region 6 OVERVIEW Moscow Borovsk FV Vorsino 11 1 Obninsk Availability of convenient sites 2 with technical facilities for 6 businesses 3 2 4 FV Rosva Kaluga Low land lease rates in comparison with Moscow 7 5 7 Region 8 6 M-3 Moscow-Kiev Comprehensive proposal for investors: land, tax benefits 8 and support 9 Experience in 9 implementation of 20,000,000 large-scale projects Good environmental people 10 conditions reside within a 180 km radius 559 76 place in Russia deposits of solid deposits of by birth rate minerals agrochemical resources 2 401 6 place place in Russia deposits by timber reserves by incoming internal of building in the European part migration materials of Russia 2 7 WE DEVELOP AND MANUFACTURE AUTOMOBILES, AUTOMOTIVE COMPONENTS TURBINE GENERATORS AND FARMING EQUIPMENT AND GAS TURBINE ENGINES 31 Our power equipment is companies installed and is successfully used The regional automotive in 38 countries cluster is among the top 3 automotive manufacturers PHARMACEUTICAL RAILWAY EQUIPMENT PRODUCTS AND DIESEL LOCOMOTIVES 109 varieties of medical products Many of our railway and pharmaceutical substances products have no produced by the regional competitors anywhere in pharmaceutical cluster the world > 80% of the cluster’s output are finished medical products TV AND HOUSEHOLD APPLIANCES BUILDING MATERIALS 100 % 546.4 % — cement of all Samsung TV sets production index in 2015, and monitors sold in Russia 2 place in the Central Federal are manufactured in Kaluga District by volume of completed Region construction works 8 PARTNERS IN BUSINESS DEVELOPMENT STAGES 1993: the newly-established company begins manufacturing at a leased industrial facility in Sosensky, Kaluga Region. 2004-2005: the company undergoes a modernization, commissioning new automated technological equipment. New REKAST is the first Russian shareholders are recruited; the company becomes a company specializing Russian-Swiss venture. in manufacturing of paper honeycomb filler, REKAST manufactures innovative packaging 2006-2007: honeycomb wrapping and products that are unique in Russia and that meet the company completes high international packaging industry standards. The construction of a new 3,000 packaging materials. REKAST JSC production site in Kaluga fully complies sq.m production building in with the requirements of the dynamically developing The global trend for use of packaging economy of the region and city. The new plant is not Sosensky, Kaluga Region, from fully recyclable environmentally only generating budget income, it has created new doubling its production harmless materials encourages a jobs for Kaluga’s residents and provides new types of capacity. continuous search for alternative packaging materials for many of the region’s industrial types of packaging to replace wood companies. and plastic. REKAST products are used June 21, 2016: in construction (manufacturing of interior doors and Russian-Swiss REKAST sound insulation wall panels); furniture manufacturing company officially opens (furniture elements); glass manufacturing (separators for storage and transportation of polished glass; its second production lodgments for transportation of fiber glass); in plant for manufacturing the chemical and automotive industries, machine of paper honeycomb filler engineering and advertising. based packaging in Kaluga South industrial park in Kaluga Region. 16a Tula Highway, Kaluga 248033 Tel.: (4842) 22-24-80, 22-24-81 www.rekast.org 9 WE DEVELOP AND MANUFACTURE METALWORKS AND METAL COMPUTERS AND PRODUCTS TELECOMMUNICATIONS EQUIPMENT 30% 107 of all galvanized metal struc- companies, tures in the Central Federal 30 research District are manufactured in organizations Kaluga Region operating in the IT segment PAPER, CARDBOARD AND PAPER/ TIMBER WARE AND FURNITURE CARDBOARD PRODUCTS 3 2 place 230 mln m in the world by volume of total timber reserves parchment manufacturing, in Kaluga Region 77% share in the Russian market of water-resistant paper CLOTHING, FOOTWEAR, COSMETICS, AGROINDUSTRIAL COMPLEX SPORTING GOODS Half of all cross-country 9 skis sold worldwide are agro segments, manufactured in Kaluga 100 robotized dairy Region farms 14.2% SERVICES, TOURISM HIGH-TECH 4000 PRODUCTS historic and cultural landmarks, — composite materials (more than 1000 products, more than 1000 patented inventions) 2.6-fold growth in the — radio electronic equipment number of tourists — satellite equipment — radioisotopes since 2008 — products and equipment for the nuclear power industry, nuclear medicine, etc. 10 11 BENEFITS TAX BENEFITS KALUGA REGION LAW NO.31-03 OF 16.12.1998 «On state support of investment activities» GUARANTEES THE FOLLOWING FORMS OF STATE SUPPORT: 1 Investor funding tax benefits participation of governmen- information from the regional tal agencies in development, support budget review and implementa- tion of special-purpose programs and specific investment projects KALUGA REGION LAW NO.263-03 OF 10.11.2003 «On corporate property tax» ENTITLES INVESTORS TO EXEMPTION FROM TAXES ON PROPERTY ACQUIRED IN THE FIRST THREE YEARS OF INVESTMENT PROJECT IMPLEMENTATION IF THE FOLLOWING 2 CONDITIONS ARE MET: the investment project is listed average monthly salaries are the amount invested in the first in the regional register of at least five times the minimum three years since the beginning investment projects wage for the labor active of project implementation meets population in Kaluga Region the levels indicated in the chart below: TOTAL AMOUNT INVESTED IN THE FIRST THREE YEARS OF PROJECT IMPLEMENTATION TAX BENEFIT PERIOD (% of tax relief) 100 to 300 million rubles, inclusive* 1 year – 100% over 300 up to 500 million rubles, inclusive* 2 years – 100% over 500 million rubles* 3 years – 100% over 500 million rubles** 5 years – 100% for pharmaceutical manufacturers if revenues from sales of manufactured pharmaceutical products account for at least 70% of total revenues from sales of manufactured products within the taxation (reporting) period 12 BENEFITS over 3,000 million rubles* years 1 to 3 – 100% For companies manufacturing: 4 year – 77% starch and starch containing products; 5 year – 55% fodder microbiologic protein, premixes; fodder vitamins, antibiotics, amino acids and ferments; 6 year – 36% rubber tire, casing and tire tube production and restoration; 7 year – 18% cast iron, steel and ferrous alloy; hot rolled profiled steel and rods. *The project start date for investors is the date of the resolution to include the investor in **The investment project start date for investors in this category is the date preceding the register of investment projects. Investors are entitled to claim tax benefits within
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