We offer great opportunities to our partners! Russian Federation SMOLENSK REGION www.smolinvest.com Contents 02 03 04 06 07 08 The welcome Geographical Smolensk Transportation Competitive speech location Region edge of the Governor today of the Smolensk Dear Ladies and Gentlemen! Region Let me heartily greet You in our ancient and heroic land. I invite You to get a closer 09 10 12 13 14 16 acquaintance with our region. Support for small Smolensk State support State support Logistics Priority and medium sized Regional Fund for investment for investment complexes investment sites The present business pages for investors will The Administration of the Smolensk Region has enterprises for the Support activity of big activity of small and terminals defi nitely provide You with the bright illustrations of worked out a clear investment policy aimed at the of Entrepreneur business and medium various resources of our Smolensk Region. improvement of the regional investment climate and ship sized enterprises I feel sure that the up-to-date overview of the provision of investment safety. We provide assistance regional potential will be of great interest for top for those partners who strive to establish mutual managers, representatives of business elite, relations in various business fi elds. 18 19 20 21 22 24 entrepreneurs, other specialists interested in the Our region is open to those partners who pursue Smolensk Region. serious and positive interests. We express our readiness State industrial Industrial Transportation Main priorities Industry Agriculture Being the Western gate of Russia, Smolensk for widening cooperation in industrial, technological, park «Phoenix» park «Safonovo» and logistics of the regional has a unique geographical location which creates investment and scientifi c spheres. industrial complex development «Stabna» the prerequisites necessary for increasing and I believe that the Smolensk Region will always be implementing the investment potential of the a hospitable home for investors. I wish all business region. Smolensk is an important transportation and community prosperity and successful implementation communication hub with the shortest highways and of investment projects. railways running from Central Russia to Europe. 25 26 27 28 29 30 The vast territory and rich mineral resources, signifi cant technological and intellectual potential State support Education Healthcare Culture Sport Tourism for agricultural make the region attractive for investors, Russian and producers international companies and fi nancial organisations. The Smolensk Region can boast its congenial Governor conditions for stable economic development. of the Smolensk Region A.V. Ostrovskiy 3 Two transport corridors Geographical location East-West North-South The Smolensk Region is an important М-1 «Belarus» А-141 «North-South» transportation and communication hub BPS - II –Baltic SMOLENSK А-101 «Moscow-Bobruisk» 68 million people are currently Pipeline System living within a 500-km radius major railways major railways from Smolensk The Yamal-Europe gas pipeline S S I A N F E D E R A E R U T I O Tallinn T H N Saint-Petersburg Riga Ekaterinburg Moscow Novosibirsk Vilnius Hamburg Chita Minsk Smolensk Irkutsk Rotterdam BELARUS Hamburg Berlin Brest Zabaykalsk Bremen Kiev UKRAINE Khabarovsk Rotterdam Paris Ulan Bator Vladivostok Sevastopol MONGOLIA Paris Novorossiysk Vladivostok Beijing Bishkek KYRGYZSTAN Berlin Beijing Tokyo NORTH KOREA JAPAN Bremen Tokyo SOUTH KOREA CHINA Smolensk Region today Transportation HIGHWAY M-1 “BELARUS” SMOLENSK - MINSK - 348 km SMOLENSK - MOSCOW - 395 км GAGARIN - MOSCOW - 180 км Pskov Tver 359)5= Riga 1 hour 35 minutes Paris <?'@3' 3 hours 40 minutes Е 30 Riga 180 km from Moscow 1 hour 10 minutes a number of highways connecting SMOLENSK Russia with European countries Paris Moscow– Smolensk – 4 hours 2 hours 45 minutes unique geographical location Kaluga and congenial conditions 4 hours 50 minutes Gagarin for logistics and terminals VIZA «Swallow» - 4 hours 30 minutes Moscow Smolensk Belarus Moscow – Nice – 50 hours 8592'<2 Minsk Minsk– Smolensk - 3 hours Bryansk 1900 deposits of mineral resources 56 deposits of fresh underground water Berlin 12 deposits of mineral underground water 1 hour 45 minutes 35% Russian and 75% international goods from Western Europe are transported Warsaw through the territory of the Smolensk Region 1 hour 10 minutes Berlin 2 hours 40 minutes total area: population: 25 2 10 700 km 1 259 km transportation 49 800 km2 1 000 000 municipal towns of highways of railways hubs: Warsaw people districts Smolensk, 2 hours Vyazma, 6 Roslavl 7 Provision of state support Competitive edge of the Smolensk Region SMOLENSK REGIONAL for small and medium sized FUND FOR SUPPORT enterprises OF ENTREPRENEURSHIP www.sofpmp.ru GUARANTEE FUND Microfinance, consulting Provision of securities for small services on business and medium sized enterprises. development. INVESTMENT PORTAL OF THE SMOLENSK REGION www.smolinvest.com AGENCY OF LOAN SECURITY VYAZMA www.acgrf.ru PREFERENCES DEVELOPED WOOD FOR INVESTORS INDUSTRY PROCESSING Initiation, management and INVESTMENT development of the national DEVELOPMENT guarantee system ensuring the CORPORATION dynamic development of the SMOLENSK entrepreneurship. Congenial investment climate. Attraction of investment. Launch of investment projects. Creation of investment sites. Investment management. INDUSTRY DEVELOPMENT FUND TRANSPORTATION HIGHLY QUALIFIED CONGENIAL AND COMMUNICATION SPECIALISTS BORDER LOCATION www.rftr.ru REGIONAL The Fund stimulates INTEGRATED CENTRE (RIC) modernization of Russian IN THE SMOLENSK REGION industry and encourages the production of competitive Business Support on Your Doorstep products which provide import www.eicc-smolensk.ru )81')256&,(17,),& substitution. ROSLAVL $1'7(&+12/2*,&$/6833257 Information support and consulting services for the regional enterprises on the establishment of 2)60$//(17(535,6(6 business contacts with partners from other Russian regions and abroad. www.fasie.ru ENERGY SECURITY RECREATIONALPROXIMITY ZONES, EDUCATIONAL CULTURALTO AND MEGAPOLISES HISTORICAL HERITAGE INSTITUTIONS The fund implements the programmes of innovative development designed to set up new and improve existing high-tech companies, increase their profits, attract investment, and create new work places. State support for small SMOLENSK REGIONAL Microfinance and medium sized FUND FOR SUPPORT Loans for entrepreneurs and companies: enterprises - 10 000 - 1 000 000 roubles; OF ENTREPRENEURSHIP - 1- 3 years depending on the type of economic activity. for companies working for companies working 8% in agriculture, 10% in other spheres per year industrial production per year including trade. and service. MICRO-LOANS 8% 10% To receive a bank loan • the borrower submits a limited number of documents • no pledge security perгодовых year per year • the loan is provided within 3-5 day • early credit repayment Guarantee fund DEPENDING ON THE KIND OF ECONOMIC ACTIVITY Guarantees upto 20 mln roubles for bank loans and letters of credit no longer than for 5 years. • the commission for guarantee provision does not exceed 1/3 of the key interest rate defined by the Central Bank of Russia • covers upto 50% of the loan or the letter of credit GUARANTEES FOR SMALL • decisions are made within 7 days To be eligible for the Fund loan/guarantee the applicant should: AND MEDIUM SIZED ENTERPRISES • be qualified as a small or medium sized enterprise (Federal law 209-FZ issued on July 24th, 2007) • be registered as a tax payer and function in the territory of the Smolensk Region • not have any debts into the regional budget Smolensk Regional Fund for Support of Entrepreneurship is accredited by the OJSC «Non-bank depository and credit company «Agency of credit guarantees» Smolensk Engels st. bld. 23 +7 (4812) 610-509, 777-077 E-mail: [email protected] www.sofpmp.ru 11 State support for State support for investment investment activity activities of the small >250 >1 bln rubles < 250 < 1 bln roubles of big business employees sales revenue and medium enterprises employees sales revenue TAX RELIEF FOR INVESTORS TAX RELIEF FOR INVESTORS CORPORATE PROPERTY CORPORATE PROPERTY 0% TAX 0% TAX 300 300 CORPORATE INCOME 10 years million roubles CORPORATE INCOME 10 years million roubles TAX 4,5% TAX 4,5% validity period validity period SUBSIDIES Subsidies in the amount of corporate income tax are annually given for reimbursement SUBSIDIES Reimbursement up to 75% of Reimbursement up to 3/4 of expenses incurred while implementing PRIORITY investment projects the expenses on technological Bank of Russia key interest rate connection to power grid which does not exceed 70% facilities less than 1,5 MW of all actually incurred expenses for interest payments under > 3 > 200 leasing agreements with Russian 10 years leasing companies bln roubles employees Reimbursement up to 50% Reimbursement up to 90% Priority economic activities: of incurred expenses for of expenses for the first install- purchasing equipment for ment (advance) payment - food production setting up and (or) developing to those subjects who signed - machinery and technical equipment manufacturing and (or) upgrading production a leasing agreement with - electrical facilities, electronic and optical equipment manufacturing process Russian leasing companies - vehicles and transport facilities manufacturing - pharmaceutical goods production OTHER KINDS OF SUPPORT: OTHER KINDS OF SUPPORT: Investment project Project design Information Investment