RYAZAN REGION The region of your opportunities INITIATIVE INNOVATIONS DEVELOPMENT Dear investors, welcome to the Region! Attracting investments to the region is one of today’s major tasks. For our part we will provide investors with necessary support and establish the most-favoured partner regime. We build partnerships with our investors and it always yields mutually beneficial results. Nikolai Lyubimov, Governor Competitive advantages of Ryazan region General Overview Energy resources 39,605 km2 Ryazanskaya GRES area (Ryazanskaya SDPP) The largest power plant in Europe 3130 MW/h (capacity) Moscow 1.2 mln people Novo-Ryazanskaya Central Heating population and Power Plant(CHPP) 3,2 bln kWh 425 MW/h (capacity) Ryazan 29,100 rubles Dyagilevskaya CHPP Average monthly salary in 2017 110 MW/h (capacity) 9,6 bln kWh MOSCOW Annual production of electrical power 183 Annual energy consumption RYAZAN Vladimir oblast km 6,4 bln kWh Nizhegorodskaya Surplus SPAS-KLEPNIKI oblast KASIMOV Moskovskaya oblast Transport system RYBNOE Ermish 3 federal highways RYAZAN r. Oka Pitelino Ural KADOM Kaspiy Zakharovo SPASSK-RYAZANSKIY Kaluga -Tula - Ryazan SHILOVO SASOVO 2 railroad lines Republic of MIKHAILOV STAROZHILOVO CHUCKOVO Mordovia Moscow - Ryazan -Ural Moscow - Ryazan - Sochi PROISK PUTYANINO Cargo turnover in 2017 KORABLINO SAPOZHOK SHATSK 362.4 mln ton-km SKOPIN Tula oblast River Oka waterway UKHOLOVO RYZHSK Oriol - Kaluga - Ryazan - MILOSLAVSKOYE SARAI Nizhny Novgorod ALEKSANDRO- NEVSKIY Economy in Numbers 1st PLACE Construction activity growth rate (in 2017 in Central Federal District) 1st PLACE Investments growth rate (in 2017 in Central Federal District) Industrial Production Index in 2017 in comparison to 2016 102.4% Processing industry Processing industry 111.0% companies’ turnover Industrial Production Index in 2017 161.7% in different sectors 136.9% 132.9% 129.3% 115.9% Machinery and Pharmaceutical Production of other Motor vehicles and Furniture equipment production manufactured goods trucks production production production Export and Import The 1st in Russia in exporting Foreign trade turnover in 2017 -$ 1,632.8 mln Roofing and flexible roofing tiles, leather, car lighting equipment Export exceeded import by $ 360.3 mln nd 399.7 mln USD 932.7 mln USD The 2 in Russia in exporting Mineral insulation materials, 996.6 mln USD 1,632.8 mln USD electric distribution equipment Export Total Import Export Ryazan oblast’s major export partners: Industrial Radar equipment equipment China Belarus Tin Roofing material Poland Kazakhstan Elevators/lifts Leather / semi- Italy finished leather Egypt Equipment for Measuring Ukraine poultry farming equipment Natural Resources Limestone, fire clay, glass-making and construction sand, peat are the major minerals mined and produced in Ryazan region. Limestone 1,002.5 mln ton Cement raw materials 446.7 mln m3 volume Limestone for gravel 202.5 mln m3 889 K ha Forest resources Limestone for lime 483.1 mln ton Plaster 338.3 mln m3 Construction sands 105.7 mln m3 Brick clay 3.7 mln ton Peat Education and Human Capital 18 universities and campuses 7700 34 vocational training facilities people Number of graduates per year Higher education degree professionals 16 000 specialists 1,100 IT people Skilled blue and white collars, Number of mid-level specialists graduates per 2,600 Industry and year people construction 900 Agriculture and people Processing 8,300 people 1,900 people Humanities 1,200 Medicine people Exemptions and preferences Basic investment project Project of special importance Priority investment project A minimum of 25 or 10 mln rubles A minimum of 1 bln rubles A minimum of 150 mln rubles (for small and medium-size enterprises) It is implemented in priority areas Any investment project Fully or partially funded by Investfond of investment development: of the Russian Federation; for state corporations, import substitution state companies and business entities with the RF’s stake in the statutory capital exceeding 50% production on the territory of mono-cities pharmaceutical production production and processing of agricultural products transportation vehicles production introduction of energy efficient technologies, etc. Lower rates of the income tax for organizations from 20% to 15.5% to 16% to18% Lower rates of the property tax for organizations from 2.2% to 0% to 0.6% to 1.1% Exemption from transport tax Lower rental payments for land property use of the lands owned by Ryazan region by 99% by 50% by 20% Subsidies to compensate for the interest on loans, finance leasing, and connecting to heat, gas, and water supply sources Lower rates in the Simplified Tax System From 6% to 1% for the “Revenues” taxation scheme From 15% to 5% for the “Revenues less expenses” taxation scheme State support During an investment project’s pay-off period but no more than 15 years For 5 years or less for production upgrade Exemptions and preferences for residents’ of TOSER Preferential Tax Tax rate Term tax rate Lower rates of the income tax Federal budget 3 % 0 % 5 years from the first profit (not later than 4 tax period) Regional budget 17 % 3 % 5 years from the first profit (not later than 4 tax period) 13.5 % In the next 5 years Lower rates of the property tax 2.2 % 0 % For the first 5 tax period 0.5 % In the next 5 years Transport tax 10-150 Rub for 1 hp 0 % 10 years from the date of receipt of the status of resident Land tax 0.3% of agricultural 0 % 3 years from the date of receipt of land; the status of resident 1.5% - other areas Insurance premium 30 % 7.6% 10 years from the date of receipt of Mandatory pension insurance 22 % 6 % the status of resident no later than 3 years from the date of creation of PSEDA Compulsory social insurance 2.9 % 1.5% (Priority Social and Economic Development Obligatory medical insurance 5.1 % 0.1% Area) Industry Industry leaders Ryazan State Equipment Plant (GRPZ), JSC Measuring equipment electric devices, welding equipment, medical equipment, charging devices for electric cars Krasnoe znamya, PJSC The share Electric equipment and components, of industrial energy equipment, LED systems production in total GRP Ryazan Oil Processing Company (RNPK), JSC (OC Rosneft, PJSC) The design processing capacity is 18.8 mln ton of oil a year. Ryazan Radio Plant, JSC Radioelectronics, electric devices and components Infrastructure and industry support Tyazhpressmash, JSC Machine engineering plant. Oil and gas equipment. Serebryansky Cement Plant, LLC Regional Industry Development Fund Production of cement, lime, gravel Special Investment Contract Regional Competency Center ZMPK KRZ, CJSC in Labour Productivity Enhancement Roof and roofing materials. Cluster Development Center Crates and packaging materials. Insulation materials Engineering Center TekhnoNIKOL Group of Companies Roof and roofing materials. Construction materials Zernoproduct, JCS Volume of shipped goods Flour and flour-based mix production (bln rubles) Plasma, JCS Gas laser and gas-discharge device production Ruskaya Kozha (Russian Leather) Group of Companies Genuine leather production Companies with foreign capital Guardian Air Liquid Abicor Binzel Automotive MGK Svetovye Ryazanvest Steklo Ryazan Ryazan Svarochnaya Lighting tekhnologii tekhnika Ryazan branch USA France Germany Italy India Germany Cluster Policy Priority areas of strategic cluster development: Machine building, radio, and electronics and robotics cluster Food industry and agriculture cluster (construction of logistics warehouses, vegetable store houses, cereal crops drying facilities, processing facilities) Construction materials cluster (construction mix production and plant construction) Energy cluster Medical cluster (pharmaceuticals, medical Consumer goods industry equipment and devices production) (leather goods) Investment Areas Priority areas for cooperation: Transport and logistics Production of civil products in the segment of infrastructure development electronic and optical equipment Investment infrastructure formation Capital raising in the agricultural complex Attraction of competencies of foreign partners Industrial Sites Ryazansky Industrial Industrial site in Pronsky Gorodishche Industrial park S district S park P S=560 ha S=1083 ha S=173,8 ha Specialization: logistics, industry Specialization: machine building, Specialization: chemical industry, construction industry, leather products Location: Ryazan’s border (highway materials production Location: Ryazan oblast, Rybnovsky exit from Ryazan to Moscow, between district highway М5, p. Khodyninskie dvoriki Location: Ryazan oblast, Pronsky and railroad Moscow - Ryazan district, Novomichurinsk Gas: 21.7 mln m3/year Gas: 100 thousand m3/hour Gas: 20 K m3/h Electricity: 18.6 MW Electricity: 40 MW Electricity: 50 MW Industrial site in Varskie town Rybnoe-1 Industrial site P Rybnoe-2 Industrial site P S S=123 ha S=500 ha S=17.5 ha Specialization: development of Specialization: miscellaneous Specialization: miscellaneous information and communication Location: Ryazan oblast, Rybnovsky Location: Ryzan oblast Rybnovsky technologies, energy, energy efficiency, district (close to Rybninskie dvoriki district new materials technologies village) High pressure gas pipeline Location: Ryazan oblast, High pressure gas pipeline Ryazansky district, Barskie town Electricity: 2.6 MW Electricity: 20.7 MW Gas: 8.1 mln m3/year Electricity: 8 MW P – private property S – state property Industrial Sites Kondrata Industrial Stankozavodsky site P Industrial park P Production facilities: Production facilities: 129 thousand