Investment Passport of the Saratov Region Investment Passport of the Saratov Region

INVESTMENT PASSPORT OF THE SARATOV REGION INVESTMENT PASSPORT OF THE SARATOV REGION

LADIES AND GENTLEMEN! The main priorities for the Saratov region are and will be a sustainable economy, investment attraction, creating a developed infrastructure, and the well-being of its residents. Today, we are actively building new roads, industrial enterprises, schools, and medical centers. We are setting the re- cords in agriculture and successfully solving the problem of import substitution, entering the foreign markets. Among our strong points are cutting-edge ideas, innovations, and power- ful production grounds and human resources. The region has a consistent investment policy. Together with our partner, the agency for strategic initiatives, we have developed new stan-

2 CREATE WITH SARATOV dards and roadmaps for working with investors. JSC “The Saratov region development Corporation” and the annual Saratov economic forum «Moving only forward!» also contribute to improving the business climate. We also associate the fulfillment of the huge investment potential of the region with the implementation of major infrastructure projects – a new modern Gagarin airport was intro- duced in 2019, TOSER operates in the single-industry town of Petrovsk, Saratov agglomeration, and a special economic zone was created in 2020. These and many other projects set the modern spatial and economic development of the territories of municipalities, using their advantages, providing em- ployment, increasing the well-being of people. All this great work gives significant results: the region becomes comfortable for life, interesting for business, and attractive for investment. The Saratov region sets ambitious goals and confidently looks to the future. Valery Radaev, Governor of the Saratov region

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COMPETITIVE ADVANTAGES • High human and scientific potential • Most-favored-nation treatment • Convenient location for investors and developed logistics • Prompt solutions • More than 600 free investment platforms of infrastructure issues for various purposes • Energy surplus

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• Differentiated resource and raw material base

• Favorable soil and climate conditions

• Low cost of construction of housing, industrial and commercial real estate

• Own regional gas production, complete gasification of settlements and enterprises

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SCIENTIFIC POTENTIAL: • 18 educational institutions of higher and higher vocational education • 60 enterprises engaged in research and development • 54 professional educational organizations • 7 scientific institutions of the Russian Academy of Sciences • 27 industry research institutes and organizations 6 CREATE WITH SARATOV

LABOR RESOURCES: • Population – 2 421,8 thousand people • Labor force of – 1 196,5 thousand people • 1 051,4 thousand people – are employed in the economy • Labor force with higher vocational education is – 32,4% of population 7 INVESTMENT PASSPORT OF THE SARATOV REGION

EXPORT AND IMPORT: Foreign trade turnover for 2019 • 2,016 billion $ 108 660 trading exporters partner countries Main export partners: Turkey, Kazakhstan, Germany, Brazil, Azerbaijan, USA Main import partners: • exports – 1,3 billion $ China, Indonesia, Austria, • imports – 0,7 billion $ Italy, Germany, Belarus

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• The second place in Russia for the export of sunflower husk • The second place in Russia for the export of railway equipment • The fourth place in Russia for the export of leguminous crops

ANO «EXPORT SUPPORT CENTER OF THE SARATOV REGION»

9 INVESTMENT PASSPORT OF THE SARATOV REGION ULYANOVSK PENZA Р228 TRANSPORT TAMBOV SAMARA Р158 Р226 INFRASTRUCTURE Р208 • The Volga river is a water Е38 ORENBURG connection with access to the Caspian, HAMBURG Mediterranean, Baltic (GERMANY) and Barents seas 645 km – SARATOV the longest section • River port VORONEZH Р298 • 9 federal highways Е38 Р226 • Airport Р228 Р236 SHANGHAI The implementation of the transit • South-Eastern (P.R. CHINA) and Volga Railways potential of the region is achieved • Developed by creating transport and logistics hubs VOLGOGRAD KAZAKHSTAN public transport and promoting goods in the «West – network East» directions 10 CREATE WITH SARATOV

• The new airport provides reception for all types of modern mainline aircrafts. • The terminal has a capacity of up to 1 million passengers per year. • The total area of the terminal Gagarin international airport is 23 thousand square meters. was put into operation in 2019 • 25 aircraft parking spaces are provided 11 INVESTMENT PASSPORT OF THE SARATOV REGION Construction of the Western bypass of the Saratov junction of the Volga railway Tatishchevo • Possibility to increase suburban railway traffic Volga river Kurdyum the within the city of Saratov Possibility to increase Saratov I suburban railway traffic within the city of Saratov Saratov- • Development of the additional volume of cargo Port transportation through the Saratov junction in the amount of 46.0 million tons: including 30 million tons in the direction Burkin of the Azov-Black sea ports • Moving the flow of freight cars with dangerous goods out of the city 12 CREATE WITH SARATOV

INDUSTRIAL STRUCTURE:

PROVISION OF ELECTRICITY, GAS AND PROCESSING STEAM; AIR CONDITIONING PLANTS 18,1%

EXTRACTION OF MINERALS 6,1% 73,7% WATER SUPPLY, SANITATION, 2,1% ORGANIZATION OF WASTE COLLECTION AND DISPOSAL, ACTIVITIES TO ELIMINATE POLLUTION 13 INVESTMENT PASSPORT OF THE SARATOV REGION

THE SARATOV REGION PROVIDES: • 27,4% of sofa production • 18% of sulfuric acid production • 13,3% of bearings production • 11,1% of mineral fertilizers production based on 100% of nutrients • 5,3% of synthetic detergents production • 3,9 % of electricity production

14 CREATE WITH SARATOV The energy hub, consisting of the Saratov HPP, CHPP-4, Balakovo NPP, and the Balakovo branch of JSC Apatit, is one of the largest in the Russian Federation

Balakovo NPP – provides the fifth part of electricity production in the Volga Federal district and the sixth one of the output of all nuclear power plants in the country

Saratov HPP is a major energy The total installed capacity facility in the region with of power plants is 6598 MW, an annual output regional consumption is only 32% of more than 5.4 billion kWh 15 INVESTMENT PASSPORT OF THE SARATOV REGION

The total capacity of solar power plants The project «Construction of a wind is 45 MW (Yershovsky, Novouzensky and farm» with total capacity of 228.6 MW Pugachevsky districts) Dergachevskaya SES (Krasnoarmeysky district) with a capacity of 60 MW is under construction has been planned (stage 1 – 25 MW, stage 2 – 20 MW) 16 CREATE WITH SARATOV

THE PETROCHEMICAL CLUSTER The Saratov region is one of the oldest oil and gas producing regions in Russia. It carries out its own oil production with full subsequent processing of oil, which ensures absolute stability and independence of the regional fuel market. The Saratov region is the only region where there is an almost complete technological chain of production of LARGE ENTERPRISES: PAN composites: from raw materials (acrylic acid • PJSC “Saratov oil refinery” nitrile) and fiber materials to carbon fiber. A number • LLC “Saratovorgsintez” of companies are the largest and the only producers • Balakovo branch of JSC “Apatit“ of such products. 17 INVESTMENT PASSPORT OF THE SARATOV REGION

METALLURGICAL ENTERPRISES • JSC «Balakovo Metallurgical plant» is the first manufacturer of rolled products in the Volga Federal district and the leading enterprise of the electrometallurgical industry in Russia. • JSC «Balakovo Centrolit» is a plant where automatic and robotic technological lines for forming and manufacturing rods, conveyors for casting steel operate.

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TRANSPORT ENGINEERING: • JSC «Plant of metal structures». Production of freight rolling stock – 4,500 units per year • JSC “Transmash”. Production of railcars, tracks and snow removal equipment – 2,000 freight cars per year • LLC “Robert Bosch Saratov”. Production of automotive components (spark plugs, mass air flow sensors, etc.) 19 INVESTMENT PASSPORT OF THE SARATOV REGION

UNCLAIMED RESERVES POTENTIAL RESOURCES OF MINERAL RESOURCES: GAS – 1 trillion m3 • Chalk, limestone OIL – 700 million tons • Clay rocks for the production of bricks, expanded clay, cement • Sands and sandstones • High quality mineral waters of balneological, medicinal, table kinds • Potassium and magnesium salts • Sulfur • Phosphorites • Siliceous rocks

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PRIORITY AREAS OF DEVELOPMENT: • Development of Savelievskoye, Ozinskoye, Kotsubinskoye deposits and mining of oil shale • Oil-dissolved gas utilization

AVAILABILITY OF STRATEGIC MINERALS: • Rare earth metal rhenium • Shale coke

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MINERAL RESOURCE POTENTIAL PRIORITY AREAS OF DEVELOPMENT: IS A BASE FOR THE PRODUCTION Modernization of production facilities and OF BUILDING MATERIALS: introduction of new technologies for the • Cement raw materials production of environmental construction • Construction, glass and molding sands and finishing materials • Brick and expanded clay • Crushed stone • Gravel • Chalk • Mineral paints

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FOOD AND PROCESSING INDUSTRY

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AGRICULTURE IN 2019: • The first place for the production of sunflower among the regions of the Russian Federation (2027,3 thousand tons) • The first place for the gross gathering vegetables of open and closed ground among the regions of Privolzhsky Federal District (380, 6 thousand tons), the 6th place in Russia • The 3rd place for the gross harvest of grain and leguminous crops (3182,2 thousand tons)

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THE CLUSTER OF GREENHOUSE VEGETABLES

• 5 large greenhouses • The total area of greenhouses of 101.4 hectares • Gross harvest of greenhouse vegetables is 35,9 thousand tons

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PRIORITY AREAS OF AGRIBUSINESS DEVELOPMENT: • Modernization and expansion of irrigated areas, contributing to the growth of crop production, as well as increasing the production of high-protein feeds • Dairy and beef cattle breeding • Modernization and creation of additional storage facilities for grain and oilseeds • Creation of production facilities for deep processing of agricultural (grain, technical, fruit and vegetable) crops • Reconstruction and construction of wholesale distribution centers that can work with a wide range of different products, including industrial ones

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SOIL STRUCTURE OF THE SARATOV REGION, % THE INVESTMENT IN AGRICULTURE 50,4% – 30,0% – IS FACILITATED BY: Chernozem Chestnut soils soils • availability of unoccupied agricultural land and its low cost • high scientific potential 11,5% – in the agricultural sector Saline complexes • close location of sales markets 6,3% – Alluvial soils 1,8% – other 27 INVESTMENT PASSPORT OF THE SARATOV REGION

TOURISM POTENTIAL: • Tourist flow of more than 1.2 million people

• 322 collective accommodation facilities Stepan Razin’s cliff The recreation park “Khvalyn” • 110 tourist camps and recreation centers • 44 rural tourism facilities • 20 health resort organizations • 282 tourist routes The Saratov State Conservatory The Theatre of Young named after L. V. Sobinov Spectators named after Yu. P. Kiselev 28 CREATE WITH SARATOV THE REGION TERRITORY INCLUDES: • more than 3000 archaeological monuments • 124 natural monuments • 18 old manors have been preserved • more than 300 architectural monuments • 26 state museums

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SUCCESSFUL FULFILLMENT OF PUBLIC-PRIVATE PARTNERSHIP PROJECTS • LLC Fresenius medical care holding Creation of a medical outpatient dialysis center – in the Balakovo municipal district, – in Saratov and Engels • JSC “ Airports of Regions” Construction of Gagarin international airport

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• PJSC “T Plus” Modernization of the city heating system • Management company “ Leader” – CJSC “Waste Management” Creation of a solid waste recycling and disposal system. The project is among the best regional practices in the housing and utilities sector in Russia • LLC “Water supply concessions – Saratov” Modernization of the municipal infrastructure of Saratov, improving the quality and reliability of water supply and sanitation.

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PRIORITY AREAS FOR INVESTMENT: • Innovation and science • Fuel and energy complex • Petrochemical complex • Mechanical engineering • Construction industry • Agricultural processing • Digital technologies • Efficient use of natural resources • Tourism

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MOST-FAVORED-NATION TREATMENT INVESTMENT TAX DEDUCTION PROVISION OF LAND REGIONAL INVESTMENT for income tax is carried out FOR RENT WITHOUT PROJECT in the amount of no more than 40% BIDDING is reduced tax rates for of the amount of expenses for the in order to implement income tax to be credited acquisition, creation or modernization large-scale investment to the budget of the of fixed assets of the third and eighth projects subject of the Russian depreciation groups Federation – in the amount of 10%, to the Federal budget – 0%

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MOST-FAVORED-NATION TREATMENT REDUCTION OF THE CORPORATE REDUCTION OF THE EXEMPTION FROM INCOME TAX RATE PROPERTY TAX RATE TRANSPORT TAX IN THE PART CREDITED for a period for a period TO THE REGIONAL BUDGET of 5 years of 5 years for a period of 5 years

% 17% 13,5% 2,2% 0,1% 0

BENEFITS ARE ALSO PROVIDED TO INVESTORS WHO HAVE CONCLUDED A SPECIAL INVESTMENT CONTRACT AND A PPP AGREEMENT 34 CREATE WITH SARATOV

600 FREE INVESTMENT SITES

THE AREA OF THE SARATOV REGION OF – 101,2 THOUSAND КМ2 35 INVESTMENT PASSPORT OF THE SARATOV REGION

TERRITORY OF ADVANCED SOCIO-ECONOMIC DEVELOPMENT «PETROVSK» • The town is a «crossroads» of inter-regional and inter-district roads • The number of free Brownfield sites is 20 • Greenfield Land plots – 10, with a total area of 406 hectares • The working-age population of the total population of the municipal district is more than 60%

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BENEFITS FOR THE RESIDENTS OF THE TERRITORY OF ADVANCED SOCIO-ECONOMIC DEVELOPMENT «PETROVSK»

NORMAL TAX REGIME TERRITORY OF ADVANCED DEVELOPMENT 0% – the first five years after receiving profit from activities FEDERAL INCOME TAX RATE 3% within the territory of advanced socio-economic development 5% – the first five years after receiving profit from activities THE RATE OF THE REGIONAL PROFIT TAX within the territory of advanced socio-economic development 17% 10% – from the sixth year after receiving profit from activities within the territory of advanced socio-economic development

PROPERTY TAX RATE 0% – for the first five years starting from the first day 2,2% of the tax period in which the property was registeredа

LAND TAX RATE 0% – the first five years from the date of ownership 1,5% of the land plot CONTRIBUTIONS TO THE PENSION FUND, 7,6% – for the residents received the status FEDERAL INSURANCE FUND, FEDERAL 30% in the first 3 years of operation of the territory COMPULSORY MEDICAL INSURANCE FUND of advanced socio-economic development 37 INVESTMENT PASSPORT OF THE SARATOV REGION

SPECIAL ECONOMIC ZONE OF TECHNICAL AND INNOVATIVE TYPE

BENEFITS FOR SEZ RESIDENTS • Regional budget income tax BALAKOVO is 0% for 5 years, 5% from 6 to 10 years, SARATOV 13.5% from 11 years. Federal budget – 3% ENGELS • Property tax 0% for 10 years • Land tax 0% for 5 years • Transport tax 0% for 5 years from the date of registration of the vehicle • In some cases, the absence of payment of export and import customs duties and VAT

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DEVELOPMENT INSTITUTIONS

• Saratov region development corporation • Entrepreneur center “My business” • Export support center • Guarantee fund for small businesses • Industrial development fund • Micro-credit fund for small businesses

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JSC “SARATOV REGION DEVELOPMENT CORPORATION” — «ONE WINDOW» PRINCIPLE IN WORKING WITH INVESTORS

• Support of investment projects, • Promotion of investment projects organization of information, on information resources marketing, financial and legal support and business events, forums and exhibitions • Attraction of financial resources

• Site selection

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