TATARSTAN: YOUR BUSINESS PARTNER Investor’s roadmap (Investor’s guide)

Kazan 2010  

Under the editorship of Ravil Zaripov, Minister of Industry and Trade of the Republic of Tatarstan

Editorial board: Vladimir Solovyev, Gulnara Akhmadeyeva, Farid Tuktarov, Artur Fatykhov, Oleg Vlasov

This publication was prepared with participation of: Rustem Akhmetgarayev, Denis Klimin, Sergei Mezentsev, Engil Ismagilov, Timur Mindubaev

© Ministry of Industry and Trade of the Republic of Tatarstan, compilation, 2010 4, Ostrovsky St., Kazan 420111 Phone: +7 (843) 299 10 07 Fax: +7 (843) 292 16 45 e-mail: [email protected] http://mpt.tatar.ru

© Publishing house “Foliant”, design and layout, 2010

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Quite visible are the results of the independent foreign eco- nomic policy pursued by the republic in the past ten years. Tatarstan has tripled its foreign trade turnover, forged stable economic ties with over a hundred countries and their regions throughout the world. The products manufactured by repub- lic’s enterprises and some Tatarstan-registered trademarks are well known both in Russia and abroad. Year by year manufac- turers from Tatarstan are awarded the prizes as the best Rus- sian exporters. All this enables the republic to enjoy a high in- ternational rating and ensures its harmonious integration into the world community. Much attention is paid in the republic to further enhance- ment of its investment image. Consistently improving is the legal framework of the investment process in conformity with the international standards related to protection of investors’ rights, and the necessary infrastructure is being developed. Tatarstan today is the location where many foreign companies are operating and renowned multinational companies are represented. We are always open for cooperation and hope that this edition will be a useful guide to the business world of Tatarstan and a reliable partner in the implementation of your business projects.

Rustam Minnikhanov, President of the Republic of Tatarstan

Ladies and gentlemen, visitors of the Republic of Tatarstan!

This Investor’s Guide entitled “Tatarstan: Your Business Part- ner” is intended for all those who seek to establish stable busi- ness contacts with our republic. This edition was prepared by the Ministry of Industry and Trade of the Republic of Tatarstan. The remarks and sugges- tions expressed by users of the previous guides are taken into account. Modern Tatarstan was one of the first Russian regions to start changing over to European standards, not only in the field of industrial production, but also in education, medicine and other sectors. Transition to European standards will largely support the optimisation of the management system and en- couragement of business initiative, which in turn will create favourable conditions for further development of the market economy in the republic.

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4 1. Doing business in the Republic of Tatarstan

1. Doing business in the Republic of Tatarstan

1. Doing business in the Republic of Tatarstan

1.1. FIRST STEPS TOWARDS STARTING YOUR BUSINESS IN THE REPUBLIC OF TATARSTAN Choosing a format of doing business is a most important step prior to the implementation of investor’s investment projects in the territory of the Russian Federation and in the Republic of Tatarstan, in particular. This choice is critical for fur- ther course of activities resulting in the differentiation of the rules of financial, tax, customs and administrative regulations. That is why one should pay special attention to this aspect in order to successfully achieve the objectives being sought. There are several formats through which a foreign company can conduct business activities in the Russian Federation: • By creating a Russian legal entity with 100 percent foreign investment or a joint venture company; • By opening a representative office or a branch;

5 1. Doing business in the Republic of Tatarstan 1. Doing business in the Republic of Tatarstan

1.1.1. OPENING A BRANCH OR A REPRESENTATIVE OFFICE the seal of the foreign legal entity, indicating the name, date OF A FOREIGN LEGAL ENTITY of foundation, location, types of activity of the foreign legal entity, objectives of opening and expected duration of a rep- Branch of a foreign legal entity is its economically autono- resentative office in Russia, and information on business rela- mous subdivision, which is not deemed to be an independent tions with Russian partners and prospects for its future devel- legal entity. It is established for the purpose of conducting the opment); activities which are carried out outside the Russian Federation 2. An extract from the Trade Register of the country of ori- by the foreign legal entity (parent organisation) and is liqui- gin of the foreign legal entity or other document confirming dated on the basis of a decision of this foreign legal entity. the fact of registration of the foreign legal entity in accordance A branch operates on the basis of statutes approved by the with the laws of the country of its location; parent organisation and performs all or part of its functions, 3. The Articles of Association (Charter) of the foreign legal including the functions of a representation, on behalf of the entity (in case the legislation of the country of registration of foreign legal entity which established it on condition that the the foreign legal entity does not provide for the Articles of As- purposes of the establishment of and the activities carried out sociation (Charter), a document issued by an authorised body by the parent organisation are of a commercial nature and the in the country of origin should be submitted to this effect); parent organisation bears direct material liability for obliga- 4. The decision of the foreign legal entity concerning the tions assumed by it in connection with the conduct of those opening of a branch/representative office in the Russian Fed- activities in the territory of the Russian Federation. eration; Representative office is an economically autonomous subdi- 5. The original and a notarised copy of the statute on the vision of a legal entity which is located elsewhere than at the branch/representative office of the foreign legal entity in the location of that entity and which represents and protects the Russian Federation; interests of the legal entity. 6. A reference letter from a bank, which provides services to A branch/representative office has the right to carry out its the foreign legal entity, confirming its solvency (this document activities in the territory of the Russian Federation from the should be valid for 6 months from the date of issue); day of its accreditation and ceases to carry out its activities 7. Reference letters from Russian business partners (at least from the day on which its accreditation is withdrawn. two letters in a free format on the letterheads of the compa- The authority which is carrying out the accreditation of nies signed by their heads and sealed with the companies’ branches of foreign legal entities is the State Registration seals); Chamber under the Ministry of Justice of the Russian Federa- 8. A notarised copy of the General Power of Attorney which tion. The accreditation of a representative office is granted for empowers the head of the branch/representative office of the the term of 1, 2, or 3 years, the accreditation of a branch is foreign legal entity with the required authorities in the Russian granted for the term of 1, 2, 3, or 5 years; if necessary, the ac- Federation; creditation may be extended. 9. A document confirming the address of the representative The time period for granting the accreditation is 21 work- office of the foreign legal entity in the Russian Federation (a ing days. guarantee letter or a lease agreement with a notarised owner- The amount of the State duty is: ship certificate enclosed); Term Amount Term Amount 10. A document confirming the consent of the adminis- of accreditation of the State of of trations of the constituent entities of the Russian Federation of a representative duty accreditation the State duty (administrations of provinces, regions, republics, national dis- office in Roubles of a branch in Roubles tricts) regarding the opening of the representative office; 1 year 30,000 1 year 75,000 11. A card with information on the branch/representative 2 years 60,000 2 years 90,000 office signed by a representative of the foreign legal entity and 3 years 75,000 3 years 105,000 sealed with the seal of the foreign legal entity, in 2 copies. 5 years 120,000 * All foreign documents are solely accepted in case they are List of documents required for opening (accreditation) of a legalised by a consulate or certified by Apostille unless the- ex branch/representative office: emption from these procedures is granted under international 1. A written application stating the request for permit to agreements of the Russian Federation and are enclosed with a open a branch/representative office of a foreign legal entity in translation into Russian which is certified by a notary or consular the Russian Federation, in a simple format (on the letterhead services. These documents are valid for one year from the date of of the foreign legal entity, signed by its head and sealed with their issue.

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1.1.2. PROCEDURE FOR THE CREATION • the foundation documents of the legal entity (originals or OF RUSSIAN LEGAL ENTITIES notarially certified copies); • an extract from the register of foreign legal entities of the For the creation of a legal entity one should undertake the relevant country of origin; following steps: • a document confirming the payment of the State duty 1. To determine its organisational-legal form, location, and (RUR 4,000). type of activity. State registration is effected within a period of no more than Joint-Stock Company (“AO”) is a commercial organisation five working days from the day on which the documents are sub- whose registered capital is divided into a certain number of mitted to the registering body. The documents must be issued shares which certify the liability rights of the participants in within 1 working day from the date of entering the corresponding the company (shareholders) with respect to the company. record to the State register. Shareholders are not liable for the company’s obligations and 3. To open accounts in any financial institution. bear the risk of losses which are associated with its activity 4. To register, within a year, an issue of securities for the within the limits of the value of the shares which they hold. OAO (with the Regional Branch of Financial Markets Federal The minimum amount of the registered capital of a joint- Service in the Volga-Kama Region). stock company is: 5. In case of the available long-term development plans • Open-end companies (“OAO”): no less than RUR100,000. and prepared business plan of the investment project, a legal • Closed-end companies (“ZAO”): no less than RUR10,000. entity may apply for being granted a State support. Limited Liability Company (“OOO”) is a business company es- 6. Procedure for creating legal entities with participation of tablished by one or more persons whose registered capital is foreign capital. divided into participating interests; the participants in a com- The procedure for the State registration of legal entities with pany shall not be liable for its obligations and shall bear the foreign founders (whether individuals or legal entities) is car- risk of losses arising from the company’s activities within the ried out along the same lines as that of resident legal entities, limit of the value of the participating interests held by them. in accordance with the Federal Law No. 129-FZ of 08.08.2001 The minimum charter capital of OOO is no less than “On State Registration of Legal Entities and Individual Entre- RUR 10,000. preneurs”, but with some peculiarities. 2. To undergo the procedure of the state registration in the In order to prepare the documents by Russian specialists, tax authority at the location of the permanent executive body. the following information and documents are needed: The applicant should submit the following documents: For each individual foreign investor: • an application for State registration, signed by the ap- Certified translation of the foreign investor’s passport into plicant (authenticity of the signature should be certified the Russian language. notarially); For each corporate foreign investor: • the decision on the establishment of the legal entity in the Full name and position of the head of the corporate foreign form of minutes, agreement or other document; investor who is authorised to represent the interests of the

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corporate foreign investor in the Company or a Power of At- Support of the “strong” manufacturers making leading com- torney* issued to the representative; modities, namely: • Oil refining products in all process stages (tyres, polyeth- * The foundation documents or an extract from the register ylene, rubbers, etc.); of foreign legal entities of the relevant country of origin or other • Crude oil; evidence, having equal legal force, of the legal status of the cor- • Aircraft equipment; porate foreign investor; • Motor vehicles; This document should state the following: • Woodworking products; • The country of incorporation of the foreign investor; • Produce of the republic’s agricultural sector. • The date of registration of the foreign investor; • The registration number of the foreign investor; 1.3. IMPLEMENTATION OF AN INVESTMENT • The name of the registering authority of the foreign investor; PROJECT IN THE TERRITORY • The country of registration (incorporation) of the foreign OF THE REPUBLIC OF TATARSTAN investor; • The address of the foreign investor. An investor who intends to implement an investment project in the territory of the Republic of Tatarstan should * — These documents of a foreign investor should be (one of apply to the relevant sectoral ministry of the Republic of the following options): Tatarstan with a proposal for implementing a project and its 1. Legalised by an Embassy of the Russian Federation or a technical and economic parameters, for the purpose of being consulate of the Russian Federation in the country of origin of the granted a practical and consulting assistance in the implemen- foreign investor; tation of the investment project. 2. Apostilled, in case the foreign investor comes from the The sectoral ministry will promptly establish coordination country which is a signatory to the Hague Convention of 1961; ties with potential partners of the investor, i.e. enterprises in 3. Neither legalised nor apostilled, in case the investor comes the republic, and will suggest a suitable investment site in the from a country which is a signatory to agreements of legal assist- territory of the Republic of Tatarstan with due account for the ance with the Russian Federation which grant exemption from location of the productive forces in the Republic of Tatarstan. legalisation. According to Article 19 of the Law of the Republic of Tatar- 4. Foreign language documents should be enclosed with a stan No. 2180-ХII of July 19, 1994 “On Foreign Investment in notarised translation. the Republic of Tatarstan”, foreign investors implementing investment projects in the territory of the Republic of Tatar- 1.2. MAJOR PRIORITIES FOR INVESTMENT stan should apply to the Ministry of Industry and Trade of the IN THE REPUBLIC OF TATARSTAN Republic of Tatarstan for being granted the necessary support and signing an Investment Agreement between the foreign in- The Law of the Republic of Tatarstan “On the Approval of vestor and the Cabinet of Ministers or the Ministry of Industry the Programme for Social and Economic Development of the and Trade of the Republic of Tatarstan concerning the condi- Republic of Tatarstan for 2005–2010” identifies the following tions of implementing the investment project in the territory priority areas for investment in the real sector of economy: of the Republic of Tatarstan.

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Model diagram of interaction with a sectoral ministry of the Republic of Tatarstan when implementing an investment project in the territory of the Republic of Tatarstan

Типовая схема взаимодействия с отраслевым министерством Республики Татарстан при реализации инвестиционного проекта на территории Республики Татарстан

1.4. INVESTMENT CLIMATE IN THE REPUBLIC OF TATARSTAN

Attraction of investment. The Republic of Tatarstan today is climate resulted in the persistent trends of economic growth one of the most developed regions of Russia with strong in- in the republic and positive outcomes of the industrial com- dustrial production, favourable investment climate, and high plex in recent years. scientific potential. The multifaceted work on implement- The Republic of Tatarstan is still one of the most investment- ing the State industrial and investment policies aimed at the favourable regions in the Russian Federation, which is con- creation of conditions for intensively developing real sector of firmed by international rating agencies such as Standard & economy and, first of all, favourable investment and business Poor’s, Fitch, and Moody’s.

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tions of doing business in the Russian Federation, which is due to relatively high efficiency of the procedures for starting a business and registration of property rights, lesser time for obtaining construction permits and going through the proce- dures associated with trading across borders. Investment. The outcome of the economic reform in the Republic of Tatarstan in recent years shows that attraction of foreign investment is a crucial element of its sustainable social and economic development.

Changes in Foreign Investment Received in the Republic of Tatarstan (US$ million)

2000 2001 2002 2003 2004

Total 142.9 651.1 642.5 176.1 596.1

Direct 53.6 8.5 2.5 77.1 79.2

Other 89.3 550.7 639.8 94.2 436.6

Portfolio - 91.9 0.2 4.8 80.3

2005 2006 2007 2008 2009

Total 683.6 483.7 1,679.4 2,593.8 2,240.3

Direct 54.5 134 417.9 722.9 113.3

Other 627.8 146.4 1,233.9 1,870.2 2,126.9

Portfolio 1.3 203.3 27.6 0.7 0.1

As of 1 January 2010, economy of Tatarstan accumulated US$5.8 billion of foreign investment. Other investment domi- nated with 87.3%, while direct investment accounted for 7.2% and portfolio investment, for 5.5%. The greatest contributor to the total amount of accumulated investment is Luxembourg with 36.6%, followed by France with 34.6 %, Germany with 8.2%, and the United Kingdom with 6.1%. Trends of international credit ratings An effective vehicle for implementing direct foreign invest- of the Republic of Tatarstan in 2003–2009 ment is joint venture companies. As of 1 July 2009, a total of 918 commercial organisations 2003 2004 2005 2006 2007 2008 2009 with foreign investment have been registered in the Unified State Register of Enterprises and Organisations of Tatarstan Moody’s Ba3 Ba1 Ba1 Ba1 Ba1 Ba1 - (against 712 as of 1 July 2008). Of these, 439 (47.8%) are fully Standard B- B- B BB- BB- BB BB owned by foreign investors, other enterprises were created & Poor’s stable positive positive stable positive positive stable* with participation of capital from the republic’s and foreign Fitch - - BB BB BB+ BBB- BBB- organisations. The geographical structure of commercial organisations * Rating withdrawn from 01.06.2009 with foreign investments shows that the enterprises with par- According to the World Bank’s first “Doing Business in Rus- ticipation of investors from Turkey, Cyprus, Uzbekistan, the sia” sub-national report of 2009, the capital of the Republic of USA, Germany, and Virgin Islands are the best contributors to Tatarstan - Kazan - ranks 1st as to the most favourable condi- the total number of the registered enterprises.

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The total number of countries participating in the creation Foreign companies working in the region of commercial organisations in the territory of the republic is 64 non-CIS and CIS countries. Wienerberger A. G. (Austria): construction of a brick-making The city of Kazan is the leader in the number of registered plant in the Republic of Tatarstan estimated at about 140 mil- enterprises (some 76.3% of joint ventures), followed by Nab- lion brick per year. Located in 40 kilometres away from Kazan, erezhnye Chelny (7.2%), Yelabuga (2.7%), Almetyevsk (2.3%), in the Vysokogorsky District; and Nizhnekamsk (2.6%). DeLonghi (Italy): production of electric heaters and Ken- wood meat grinders. ZASS Alabuga, a Turkish-Italian joint ven- Commercial organisations with foreign investments ture in Yelabuga. Schneider Electric (France): organisation of the licensed pro- duction of substations and high-voltage equipment by TATEK in Zainsk; FIAT (Italy): 1. Production of FIAT vans in the territory of SEZ Alabuga. Production output is 75,000 vans a year; 2. Production of FIAT cars in Naberezhnye Chelny by a joint venture company of Sollers-Naberezhnye Chelny and Fiat; Isuzu Motors (Japan): production of Isuzu trucks in the terri- tory of SEZ Alabuga, a joint venture between OAO Sollers and Japan-based Isuzu Motors and Sojitz Corp. Production output is estimated at 25,000 trucks cars a year; Zahnrad Fabrik (Germany): a joint venture between OAO KAMAZ and OOO ZF-Kama for the production of automatic transmissions for KAMAZ trucks in Naberezhnye Chelny; Daimler (Germany): a joint venture between OAO KAMAZ and Daimler, OOO Mercedes Benz Trucks Vostok for the pro- duction and distribution of Mercedes Benz trucks in Russia, the output of the plant is estimated at up to 10,000 trucks a year; Cummins (USA): establishment of the Euro-3 and Euro-4

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Cummins diesel engine production for OAO KAMAZ in Nab- Metro Cash & Carry (Germany): trade outlets in Kazan and erezhnye Chelny; Naberezhnye Chelny. Rockwool International (Denmark): establishment of the Quinn Group (Ireland): construction project of a warehouse East Europe’s largest mineral wool production in the territory complex and logistics park, Q-Park Kazan, with office premises of SEZ Alabuga; of 207,000 square metres of floor space in Laishevo District of IKEA (Sweden): Mega-Kazan hypermarket; the Republic of Tatarstan.

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1. Doing business in the Republic of Tatarstan 2. Legislation in the sphere of investment

2. Legislation in the sphere of investment

Basic laws and other regulatory legal acts related to the im- plementation of investment activities in the Republic of Tatar- stan are as follows: FEDERAL LEGISLATION: • Federal Law No. 160-FZ of July 9, 1999 “On Foreign Invest- ments in the Russian Federation” (as amended on April 29, 2008). • Federal Law No. 39-FZ of February 25, 1999 “On Invest- ment Activities in the Russian Federation Implemented in the Form of Capital Investments” (as amended on July 24, 2007). • Federal Law No. 225-FZ of December 30, 1995 “On Product Sharing Agreements” (as amended on December 30, 2008). • Resolution of the Government of the Russian Federation No. 883 of July 23, 1996 “On Privileges for Payment of Import Custom Duty and Value Added Tax in Respect of Goods Imported by Foreign Investors as a Contribution to Charter (Pooled) Capital of Enterprises with Foreign Invest- ments”, where it does not contradict the Tax Code of the Russian Federation.

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levies and comprises the Tax Code of the Russian Federation and federal laws on taxes and levies adopted in accordance with the Code. In accordance with the Tax Code of the Russian Federation, the following taxes are established: 1. Federal taxes and levies: • Profit tax; • Value added tax; • Excise taxes; • Personal income tax; • Insurance contributions to State non-budgetary funds; • Mineral extraction tax; • Payments for use of natural resources • Water tax. 2. Regional taxes: • Corporate property tax; • Transport tax; • Gaming tax. 3. Local taxes: • Land tax; • Individual property tax. Executive authorities of the Russian Federation and constit- REPUBLIC’S LEGISLATION: uent entities of the Russian Federation, in the cases provided • Law of the Republic of Tatarstan No. 2180-XII of July 19, for by the legislation on taxes and levies, may issue regulatory 1994 “On Foreign Investment in the Republic of Tatarstan” legal acts concerning the matters associated with taxation and (as amended on June 27, 2001, September 23, 2003, and levying, but are not entitled to modify or amend the legisla- January 22, 2008). tion on taxes and levies. • Law of the Republic of Tatarstan No. 1872 of November 25, 1998 “On Investment Activities in the Republic of Tatarstan” 2.2. SYSTEM OF TAXATION IN THE REPUBLIC (as amended on July 30, 2000). OF TATARSTAN • Resolution of the Cabinet of Ministers of the Republic of In the territory of the Republic of Tatarstan, the same taxes Tatarstan No. 123 of March 11, 2001 “On Additional Meas- and levies are charged as provided for by the federal legisla- ures of State Support for Enterprises (Organisations) of the tion. Republic of Tatarstan Implementing Investment Projects” (as amended on June 15, November 26, 2001, and Decem- List of basic taxes in effect in the territory of the Republic of ber 28, 2002). Tatarstan • Resolution of the Cabinet of Ministers of the Republic of Tatarstan No. 284 of May 7, 1999 “On Approval of the Distribution by budgets Regulations on Procedures for Granting State Support for Tax Rate Federal Regional Local Enterprises and Organisations Implementing Investment Projects in the Republic of Tatarstan” (as amended on Sep- 1. Profit tax 20.0 % 2.5 % 17.5 % - tember 26, 2008). 2. Value 18.0 % 18.0 % - - The legislation of the Republic of Tatarstan is aimed at creat- added tax ing additional guarantees to foreign investors within the terms 3. Property of reference of the Republic of Tatarstan. tax 2.2 % - 1.1 % 1.1 % 2.1. FUNDAMENTALS OF THE TAX SYSTEM 4. Land tax 1.5 % - - 1.5 % OF THE RUSSIAN FEDERATION Depending on Depending on 5. Trans- the kind and - the kind and - The tax system existing in the Russian Federation is gov- port tax horsepower of horsepower erned by the legislation of the Russian Federation on taxes and a vehicle of a vehicle

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In addition to the taxes listed above, legal entities are sub- ing a Land Plot for Construction of Future Production Facilities ject to certain liabilities for payments of pension, social and to be enclosed with layouts of each land plot approved by the environmental taxes. Customs duties are governed separately local government body on the cadastral plan or the cadastral by Customs Code. map of the corresponding territory in accordance with possi- ble selection options. 2.3. PROCEDURE FOR GRANTING LAND 6. After the decision is made by the Head of the munici- pality on the preliminary approval of the project location, the PLOTS FOR THE IMPLEMENTATION project initiator carries out the land plot survey and the State OF AN INVESTMENT PROJECT cadastral registration of the land plot. IN THE TERRITORY OF THE REPUBLIC 7. Based on the project initiator application enclosed with OF TATARSTAN the cadastral passport of the land plot, the Head of the munici- pality within a two-week period makes a decision on granting THE LAND CODE OF THE RUSSIAN FEDERATION the land plot for construction. Granting of land plots for the implementation of investment 2.4. PROCEDURE FOR TRANSFER projects is carried out upon the preliminary approval of the lo- cations for future construction projects. OF AGRICULTURAL LANDS 1. A project initiator submits a formal application to the rel- TO ANOTHER CATEGORY evant sectoral ministry of the Republic of Tatarstan requesting its assistance in seeking a plot of land for the establishment THE LAND CODE OF THE RUSSIAN FEDERATION of its production facilities in the territory of the Republic of FEDERAL LAW No. 172-FZ OF DECEMBER 21, 2004 Tatarstan. Providing that the project initiator is a foreign company “ON TRANSFER OF LAND OR LAND PLOTS FROM and/or foreign investors are planned to be involved in the ONE CATEGORY TO ANOTHER” project, the application is forwarded to the Ministry of In- RESOLUTION OF THE CABINET OF MINISTERS dustry and Trade of the Republic of Tatarstan whose terms of reference include the administration powers in the sphere of OF THE REPUBLIC OF TATARSTAN No. 523 OF OCTOBER 25, international, interregional and external economic relations 2006 “ON APPROVAL OF THE FORM OF REQUEST and attraction of foreign investments. FOR TRANSFER OF A LAND PLOT FROM THE AGRICULTURAL 2. The application should indicate the substantiation for LANDS TO ANOTHER CATEGORY AND COMPOSITION the estimated size of a land plot, the requested right to the land plot, specifications for provision with electric energy, nat- OF DOCUMENTS ENCLOSED THERETO” ural gas, service water, and railway transportation and should For transfer of the lands or land plots from agricultural to be enclosed with a project feasibility study. another category, the interested person submits an applica- 3. The time period for consideration of this application is tion for the transfer of the lands from one category to another 30 days. (further, “the request”) to the Ministry of Land and Property 4. Upon being provided with the options to locate its fu- Relations of the Republic of Tatarstan. ture production facilities in the territory of the Republic of Tatarstan by the sectoral ministry, the project initiator sub- The application comprises the following package mits an application to the relevant municipality administra- of documents: tion regarding the land plot selection and preliminary ap- 1. Copies of the documents certifying the identity of the proval of the project location. This application should state natural person applicant or an extract from the Unified State the project designated purpose, its suggested location, Register of Individual Entrepreneurs or an extract from the substantiation for the estimated size of a land plot, and the Unified State Register of Legal Entities.* requested right to the land plot. The application may be en- 2. An extract from the Uniform State Register of Rights to closed with the construction project feasibility study or nec- Immovable Property and Transactions Therewith evidencing essary estimates. the rights to the land plot.** 5. The local government body carries out the work on the 3. An extract from the State Land Cadastre concerning land plot formation (prepares a town-planning examination the information on the land plot, the land plot cadastral opinion, collects technical specifications, etc.). Results of se- plan.*** lecting a land plot are documented in the Certificate of Select- 4. The opinion by the State Environmental Expert Review

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Agency (in case it is provided for by federal laws). 11. The land reclamation project approved in accordance 5. The consent of the land plot legal owner to the land plot with the established procedure in the cases associated with transfer. mining operations, or the reclamation project for a part of the 6. The opinion by the Territorial Board of the Federal agricultural lands to be granted for the construction of trans- Immovable Property Cadastre Agency in the Republic of Tatar- portation, communications and utilities lines. stan containing the information on: *** 12. In case of transferring a land plot within right-of-ways • Cadastral value of the requested lands, average cadastral and roadsides of general-purpose highways, approvals by: value of similar lands in the district; • Executive governmental authority, local administration • Availability or absence of the documents of entitlement for (executive and administrative body of the municipality), the land plot and the information on the rights to the land natural person or legal entity owning highways by perpet- plot requested; ual right in accordance with the legislation of the Russian • Availability or absence of encumbrance (easements). Federation; 7. The power of attorney (in case the application is signed • Bodies of the State Road Traffic Safety Inspection of the by an applicant‘s representative). Ministry of Internal Affairs of the Russian Federation in the 8. A decision of the authorised bodies on the preliminary Republic of Tatarstan; approval of the project location to be enclosed with the Cer- • Republic’s Traffic Safety Authority (in case the land plots are tificate of Selecting a Land Plot (in case the land plot is pro- located within the roadsides of a general-purpose road of vided from the lands which are under State or municipal own- the Republic of Tatarstan). ership, with the preliminary approval of the project location). 9. Approvals by: * An extract from the Unified State Register of Legal Entities or the • The Ministry for Civil Defence and Emergency Management Unified State Register of Individual Entrepreneurs with the issue date of of the Republic of Tatarstan; no more than one month prior to the date of submitting the applica- • The Ministry of Culture of the Republic of Tatarstan; tion to the Ministry of Land and Property Relations of the Republic of • The Territorial Board of the Federal Agency for Subsurface Tatarstan. Use in the Republic of Tatarstan; ** An extract from the Unified State Register of Rights to Immovable • The Ministry for Ecology and Natural Resources of the Re- Property and Transactions Therewith evidencing the rights to the land public of Tatarstan; plot with the issue date of no more than six months prior to the date of • The Ministry of Agriculture and Foods of the Republic of submitting the application to the Ministry of Land and Property Rela- Tatarstan; tions of the Republic of Tatarstan. • The Water Resources Department in the Republic of Tatar- *** The documents specified in clauses 3 and 6 with the issue date stan of the Lower Volga Basin Water Board under the Fed- of no more than one year prior to the date of submitting the applica- eral Agency for Water Resources (in case the land plot is tion to the Ministry of Land and Property Relations of the Republic of located within the water conservation zone). Tatarstan. 10. A copy of the license for the right to use subsurface min- The time period for consideration of this application which was not eral resources and a copy of the mining allotment certificate returned to the applicant for rework, may not exceed 60 working days. indicating the mining allotment boundaries plotted on the plans and maps, properly certified (in case of the land plot 2.5. PROCEDURE FOR OBTAINING A PERMIT transfer in connection with mining operations). TO USE ENERGY CARRIERS, RATES AND PRICES. PROCEDURE FOR THE CONNECTION TO ELECTRICITY GRIDS

The connection is performed on a remuneration basis in ac- cordance with the contract signed between the grid organisa- tion and a legal entity or a natural person. The connection is an integrated procedure with the follow- ing steps: • Applying for the connection; • Preparing specifications and a draft contract including specifications by a grid organisation;

16 2. Legislation in the sphere of investment 2. Legislation in the sphere of investment

• Signing the connection contract; • Fulfilling the actions envisaged in the contract by the con- tracting parties; • Obtaining a permit from the Russian Federal Service for Ecological, Technical and Atomic Supervision for putting the applicant’s facilities into operation; • Performing the actual connection of the applicant’s facili- ties to electricity grids by the grid organisation; • Actual supply (reception) of voltage and power (fixing of a switching device in the ON position); • Drawing the statement of connection and the statement of delineation of balance inventory and operational respon- sibilities. The rates for the electric energy supplied by OAO Tatenergosbyt to consumers of the Republic of Tatarstan are established as follows:

Indicator Voltage ranges (customer groups broken down by Unit of tariff rates and measure- differentiated by ment HV MV-I MV-II LV time zones) RATES OF THE CHARGE FOR CONNECTION Other customers (tariffs indicated are without VAT) TO ELECTRICITY GRIDS Single-rate tariff differentiated by a number of hours of using the contracted power RESOLUTION OF THE BOARD OF THE COMMITTEE OF THE REPUBLIC OF TATARSTAN FOR TARIFFS from 7,001 hours RUR/ 1,557.90 1,816.20 2,766.20 3,852.60 and higher MWh No. 6-1/TP OF FEBRUARY 1, 2010 from 6,001 to RUR/ 7,000 hours MWh 1,674.90 1,968.70 3,053.70 4,102.80 In 2010, the charge for the connections rated at less from 5,001 to RUR/ 6,000 hours MWh 1,834.30 2,176.60 3,157.20 4,106.40 than 10,000 kVA to distribution electricity grids of OAO Setevaya Kompaniya with a voltage level of lower less than 5,000 RUR/ than 35 kV is established as follows: hours MWh 1,834.80 2,382.00 3,160.80 4,110.00 Double-rate tariff Charges for connection, Voltage Connected power, kW Roubles/kW RUR/MW- (without VAT) - incl. power rate month х х х х RUR/ Up to 30 incl. 8,814.00 - incl. energy rate MWh х х х х Tariffs differentiated by three time zones 0.23-1 kV From 30 to 100 incl. 8,148.00 - night zone RUR/ 1,301.89 1,594.29 2,830.69 3,115.09 MWh Higher than 100 12,776.00 Tariffs differentiated by two time zones RUR/ Up to 100 incl. 8,384.00 - night zone MWh 1,301.89 1,594.29 2,830.69 3,115.09 RUR/ 6-10 kV From 100 to 750 incl. 12,402.00 - day zone MWh 1,641.00 1,933.40 3,169.80 3,454.20 Organisations rendering electric power transmission services which Higher than 750 6,250.00 purchase the energy to compensate for the process consumption (losses) in electricity grids (tariffs indicated are without VAT) The charge for the connection rated at over 10,000 kVA and Single-rate tariff RUR/ 1,044.02 1,044.02 1,044.02 1,044.02 with a voltage level of no lower than 35 kV is determined for MWh each applicant individually.

17 2. Legislation in the sphere of investment 2. Legislation in the sphere of investment

location, technical and industrial characteristics of its fuel-con- suming installations, and the purposes of its use; 2) The statement by an energy-supplying organisation concerning its incapability to supply the applicant with heat energy with account taken for the available capacities of this organisation in respect of heat energy generation, transporta- tion, and distribution; 3) Estimated demand for heat and fuel and other informa- tion concerning the fuel-consuming facilities. Estimates should be carried out based on SNiP (Construction Norms & Regula- tions) proceeding from production capacity, annual output of products and advanced fuel consumption rates, use of the economical process designs yielding the best economic effect; 4) The technical and economic substantiation of the fuel choice and estimates of the fuel quantity; 5) The statement by the OOO Gazprom-Transgas-Kazan concerning the technical capability of supplying the request- ed volumes of gas through the gas distribution stations and gas pipelines of the enterprise; 6) The Russian certificate for imported gas equipment or the permit of the Russian Federal Service for Ecological, Technical and Atomic Supervision to use it; 7) The opinion by the State Board for Ensuring the Rational Use and Quality of Fuel and Energy Resources in the Republic of Tatarstan concerning the rational and efficient consumption of the fuel in question with the use of the highly efficient fuel- consuming equipment utilising the secondary heat and fuel power resources to the maximum extent possible; PROCEDURE FOR THE CONNECTION TO GAS 8) The letter of confirmation from ZAO Tatgazinvest con- cerning its interest in supplying the requested volume of natu- PIPELINE NETWORK ral gas as demanded by the gas-consuming enterprise, start- For being granted a permit to use the natural gas as a fuel, ing with this year; enterprises and organisations should submit the following 9) Approval by OAO Gazprom to the use of the natural gas documents to the Ministry of Industry and Trade of the Repub- by the consumer. lic of Tatarstan: In accordance with the legislation in force, charges for the 1) An application for issuing a decision on specifying the connection to gas distribution pipelines are agreed upon by kind of fuel, indicating the full name of the organisation, its the parties.

The 2010 rates for the natural gas supplied to consumers in the territory of the Republic of Tatarstan are as follows: RUR/’000 cubic metres (without VAT)

Wholesale End price for gas (by consumer groups) Effective price for over 500 from 100 from 10 date customers million cu- to 500 to 100 from 1 to from 0.1 to from 0.01 to 0.01 in Tatarstan bic metres inclusive inclusive 10 inclusive 1 inclusive inclusive inclusive

Orders of the Federal Tariff Service: No. 440-e/21 of December 18, 2009; starting No. 540-e/19 of December 24, from 2009. January 2,364.0 2,676.45 2,750.33 2,912.11 3,187.39 3,189.21 3,264.6 3,272.08 Resolution of the Tatarstan Com- 1, 2010 mittee for Tariffs No. 4-3/e of December 4, 2009

18 2. Legislation in the sphere of investment 2. Legislation in the sphere of investment

2.6. PROCEDURE FOR ENGAGING tional treaties of the Russian Federation; c) A document confirming the payment of State duty for is- AND USING FOREIGN WORKERS suing employer’s permit to engage and use foreign workers; The procedure for staying and working of foreign citizens 1) For a Russian legal entity: in the territory of Russia is under supervision by the Federal • a copy of registration in the Unified State Register of Legal Migration Service of the Russian Federation. According to the Entities; Russian legislation, entry of foreign citizens into the territory • a copy of its certificate of registration with a tax authority of the Russian Federation is carried out on the basis of a visa at the place of its registration; or in accordance with a procedure not requiring the receipt of 2) For a foreign legal entity: a visa; in this case, the period of the stay of a foreign citizen is • a copy of its certificate of registration as a legal entity; determined by the period of validity of the visa issued to him, • a copy of its certificate of registration with a tax authority and in the case when its receipt is not required, it cannot ex- at the place of its registration in the Russian Federation; ceed ninety days. • a copy of the certificate of opening a branch and a copy of The procedure for the migration registration consists of in- the accreditation certificate for this branch; forming (notifying) a territorial body of the Federal Migration • a copy of the permit to open a representative office and a Service on the arrival of a foreign citizen to his place of stay copy of the accreditation certificate for this office; and should be carried out within three working days after the Procedure for issuing work permits to foreign citizens who entry of the foreign citizen into the Russian Federation. In this arrived in the Russian Federation in accordance with a procedure regard, one should know that all procedures concerning the requiring the receipt of a visa migration registration are carried out by the receiving party, In order to receive a work permit, an employer should sub- and the foreign citizen does not need to apply to any organi- mit an application in the form established by the Federal Mi- sation. gration Service, enclosed with the following: The receiving party may be both citizens of the Russian Fed- 1. A colour photo of a foreign citizen of 30 x 40 mm; eration and foreign citizens who are permanently resident in 2. A copy of a document of vocational training or qualifica- the Russian Federation or stateless persons (who have a resi- tion received by the foreign worker in a foreign state; dence permit) and legal entities, their branches or representa- 3. A document confirming the payment of State duty for tive offices where the foreign citizen actually stays (resides) or the issue of the work permit. works. When submitting the application, an employer shall present An employer has the right to engage and use foreign work- his identity document and an identity document of a foreign ers only if it has a permit to engage and use foreign workers. A worker (its copy), provided that at least six months remain un- foreign citizen has the right to be engaged in labour activities til the expiry of the period of validity of the documents from in the territory of the Russian Federation only if he has a work the date of submitting the application. permit. Official documents issued in foreign states, whose copies are to be submitted for receiving a work permit, should be Procedure for obtaining a permit to engage and use foreign legalised in accordance with the established procedure in dip- workers (the document is only required for engaging the citizens lomatic representations or consular institutions of the Russian arriving from the countries with entry visa regime) For being granted a permit to engage and use foreign work- ers, an employer should submit, directly or by registered mail, an application to the migration service authority to be en- closed with the following documents: a) A statement by the Ministry of Labour, Employment and Social Protection of the Republic of Tatarstan concerning the expediency of engaging and using foreign workers; b) The draft labour contract or other documents confirm- ing the preliminary arrangements with foreign citizens or for- eign partners of the intent and conditions of engaging foreign workers. The conditions of remuneration to and labour safety of foreign citizens, their social security and insurance are de- termined by the legislation of the Russian Federation with account taken for the peculiar features envisaged by interna-

19 2. Legislation in the sphere of investment 3. Measures of State support

Federation abroad unless otherwise provided for by interna- of danger to the others, as provided for in the list approved by tional treaties of the Russian Federation. the Government of the Russian Federation, and the certificate In case the documents are made in a foreign language, they of absence in him of a disease caused by the human immuno- should be enclosed with notarised translations into the Rus- deficiency virus. sian language. When copies of the documents are presented A decision is made within 30 days. When an expert examina- without originals, they should be notarised as well. tion of the documents is required for making a decision, the When receiving the work permit, the employer should decision is made within a 15-day period after the receipt of an present medical certificates confirming the absence in the for- expert opinion, but no later than 45 days from the date of sub- eign worker of drug addiction and infectious diseases being mitting the documents.

20 2. Legislation in the sphere of investment 3. Measures of State support

3. Measures of State support

LAW OF THE REPUBLIC OF TATARSTAN No. 1872 OF NOVEMBER 25, 1998 “ON INVESTMENT ACTIVITIES IN THE REPUBLIC OF TATARSTAN” LAW OF THE REPUBLIC OF TATARSTAN No. 2180-XII OF JULY 19, 1994 “ON FOREIGN INVESTMENT IN THE REPUBLIC OF TATARSTAN” RESOLUTION OF THE CABINET OF MINISTERS OF THE REPUBLIC OF TATARSTAN No. 284 OF MAY 7, 1999 “ON APPROVAL OF THE REGULATIONS ON PROCEDURES FOR GRANTING STATE SUPPORT FOR ENTERPRISES AND ORGANISATIONS IMPLEMENTING INVESTMENT PROJECTS IN THE REPUBLIC OF TATARSTAN” Attraction of investment is a top priority task of the Govern- ment of the Republic of Tatarstan, that is why we offer the most favourable conditions for doing business in our region, such as institutes of development, legislative and tax privileges for in- vestors, administrative and financial support, developed net- work of industrial parks with infrastructure being prepared for the implementation of projects in any sectors, and training of skilled personnel as required by an investor.

21 3. Measures of State support 3. Measures of State support

foreign investors and commercial organisations with foreign investments, then, for the payback period of the investment project, but not more than for seven years, the conditions shall apply to them which were specified in the investment agreement or other agreement (arrangement, contract) and laws in force at the moment when the regulatory legal acts which impair the conditions of activity of investors were adopted. The Law of the Republic of Tatarstan No. 1872 of November 25, 1998 “On Investment Activity in the Republic of Tatarstan” (as amended on June 24, 2003) established the provision pur- suant to which the State guarantees the stability of rights of participants in investment activities. In case any legislative acts are adopted with provisions limiting the rights of participants in investment activities, which were granted to them by agree- ments concluded prior to adoption of these acts, the condi- tions of these agreements (contracts) hold true for their entire effective period. In addition, in accordance with the Resolution of the Cabinet of Ministers of the Republic of Tatarstan No. 123 of March 11, 2001 “On Additional Measures of State Support for Enterprises (Organisations) of the Republic of Tatarstan Im- plementing Investment Projects”, the enterprises (organisa- 3.1. RIGHTS OF INVESTORS tions) of the Republic Tatarstan which attract bank credits for the implementation of investment projects in priority areas AND THEIR PROTECTION of the republic's economy are granted State support through granting subsidies as a special-purpose assignment for pay- The Law of the Republic of Tatarstan No. 2180-XII of July 19, ing a part of interests envisaged by conditions of the credit 1994 “On Foreign Investment in the Republic of Tatarstan” (as agreement. amended on January 22, 2008) provides for the following State For the purposes of facilitating the investors' access to guarantees of protection of foreign investments: information on the financial and economic standing of en- • The guarantee of legal protection of foreign investors’ ac- terprises, the Resolution of the Cabinet of Ministers of the tivities; Republic of Tatarstan No. 780 of October 16, 1997 “On Addi- • The indemnification and compensation for damages to tional Measures for Increasing the Investment Attractiveness foreign investors; of Leading Enterprises of the Republic of Tatarstan” estab- • The guarantee of use and transfer of profits, incomes, and lished the provision pursuant to which the leading enterpris- other legally acquired money amounts; es of the Republic of Tatarstan should submit their external • The guarantee upon termination of investment activities; financial statements in conformity with requirements of in- • Financial support of foreign investors; ternational standards. • The guarantee against unfavourable changes in legisla- tion of the Republic of Tatarstan. 3.2. FORMS AND MEASURES OF STATE SUPPORT Article 14 of the Law establishes the measures of State sup- port for foreign investors in the territory of the Republic of OF INVESTMENT ACTIVITIES Tatarstan, where a body of executive power of the Republic of The Law of the Republic of Tatarstan No. 1872 of November Tatarstan performs information support of the foreign inves- 25, 1998 “On Investment Activity in the Republic of Tatarstan” tor and grants full support for the investment projects being (as amended on July 30, 2009) specifies the following forms of implemented in priority sectors of economy of the Republic the State support of investment activities: of Tatarstan. • Granting tax privileges; In accordance with Article 8 of this Law, in case any new • Granting subsidies to the enterprises and organisations to laws or other regulatory legal acts of the Republic of Tatarstan reimburse a part of expenses payable as interests on the enter into force which impair the conditions of activities of credits received in the credit organisations for the imple-

22 3. Measures of State support 3. Measures of State support

mentation of investment projects in priority areas of the 3.4. PROCEDURE FOR GRANTING STATE economy of the Republic of Tatarstan; • Providing prepared sites with infrastructural support for SUPPORT FOR ENTERPRISES the implementation of projects; AND ORGANISATIONS OF THE REPUBLIC • Other measures which is not prohibited by legislation in OF TATARSTAN IMPLEMENTING force. INVESTMENT PROJECTS MEASURES OF STATE SUPPORT FOR THE ORGANISATION IN THE REPUBLIC OF TATARSTAN OF INVESTORS’ ACTIVITIES IN THE REPUBLIC OF TATARSTAN RESOLUTION OF THE CABINET OF MINISTERS • Information support with regard to the structure and capacity of the republic’s and Russia’s markets, concen- OF THE REPUBLIC OF TATARSTAN NO. 284 OF MAY 07, tration of labour, industrial and infrastructural resourc- 1999 (AS AMENDED ON SEPTEMBER 26, 2008) es required for the implementation of an investment project; Submitting an application • Assistance in the implementation of projects with regard An application package to be submitted to the sectoral min- to the infrastructural and personnel policies within the istry of the Republic of Tatarstan should comprise the follow- territories where an investment project is being imple- ing documents: mented (investment sites). • An application of the enterprise for being granted State These kinds of State support are granted upon submission support, on paper and in electronic form; of an application by an investor to the relevant sectoral minis- • A business plan of the investment project; try of the Republic of Tatarstan. • Copies of constituent instruments of the legal entity; Information support for foreign investors is granted by the • A copy of its certificate of registration as a legal entity and Ministry of Industry and Trade of the Republic of Tatarstan, an a copy of its certificate of registration with a tax authority; executive authority authorised by the Cabinet of Ministers of the Republic of Tatarstan. Considering the application • Upon conducting a State expert examination of the busi- 3.3. TAX PRIVILEGES GRANTED ness plan submitted by a participant in investment activi- TO PARTICIPANTS IN INVESTMENT ties, the sectoral ministry of the Republic of Tatarstan for- wards its favourable opinion regarding the business plan ACTIVITIES OF THE REPUBLIC of the investment project to the Ministry of Economy of OF TATARSTAN the Republic of Tatarstan; • Upon conducting a State expert examination of the busi- The participants in investment activities who have signed ness plan, the Ministry of Economy of the Republic of agreements on the implementation of investment projects Tatarstan forwards its fa- with the authorised body of the Cabinet of Ministers are ex- vourable opinion regard- empted from federal taxes in the part payable to the budget ing the business plan of the of the Republic of Tatarstan, and the republic’s taxes in accord- investment project, esti- ance with legislation of the Russian Federation for taxes and mated shortfall in taxes, an levies. Agreement and the draft 1. Reduction in the profit tax from 20% to 16%; Resolution (Order) of the 2. Reduction in the property tax from 2.2% to 0.1%; Cabinet of Ministers of the 3. Reduction in the land tax from 1.5% to 0% (subject to Republic of Tatarstan for the corresponding decision by the legislative body of a Tatar- approval by the Ministry of stan municipality). Finance of the Republic of The tax privileges are granted to participants in investment Tatarstan. activities for the payback period of the investment project, but The time period for con- they may not exceed seven years from the date of commenc- sideration by each ministry of ing the investment. Investment activity entities implementing this application which was not projects in the field of mechanical engineering may be grant- returned to the applicant for re- ed tax privileges for the period of up to thirteen years from the work, may not exceed 15 days. date of commencing the investment.

23 3. Measures of State support 4. Special Economic Zone of Industrial Production Type Alabuga in the Territory of the Republic of Tatarstan

Approving the investment project the Agreement on Investment Project Implementation • After the investment project documents are approved with the Ministry of Economy of the Republic of Tatarstan by the Ministry of Finance of the Republic of Tatarstan, are granted tax privileges in accordance with the legisla- the Ministry of Economy of the Republic of Tatarstan for- tion on taxes and levies. wards the draft Resolution (Order) concerning signing • The Agreement on Investment Project Implementation an Agreement to the Cabinet of Ministers of the Repub- is signed with the participants in investment activities of lic of Tatarstan. After the decision is made by the Cabinet all forms of ownership who are implementing investment of the Republic of Tatarstan, the Agreement on Invest- projects in priority areas of the investment policies of the ment Project Implementation is signed between the en- Republic of Tatarstan, as specified by the Programme of terprise and the Ministry of Economy of the Republic of Social and Economic Development of the Republic of Tatarstan. Tatarstan and the Investment Memorandum of the Re- • The participants in investment activities who have signed public of Tatarstan.

24 4. Special Economic Zone of Industrial Production Type Alabuga in the Territory of the Republic of Tatarstan 3. Measures of State support 4. Special Economic Zone of Industrial Production Type Alabuga in the Territory of the Republic of Tatarstan

4. Special Economic Zone of Industrial Production Type Alabuga in the Territory of the Republic of Tatarstan

4.1. OVERVIEW The Special Economic Zone of Industrial Production Type Alabuga was established on December 21, 2005 in the terri- tory of the Yelabuzhsky District of the Republic of Tatarstan. There are two SEZes of industrial production type in Russia, the SEZIPT Alabuga being the largest with an area of 20 square kilometres. In the SEZIPT territory, investors are provided with prepared land plots with all necessary infrastructure facilities in place. There is a railway branch extending to over 5 kilometres and a container site intended for 1500 forty-feet containers. The site is crossed by a network of motor roads with a total length of over 20 kilometres. A total of 240 kilometres of electricity grids, gas and heat pipelines and other utilities are brought to each land plot.

25 4. Special Economic Zone of Industrial Production Type Alabuga in the Territory of the Republic of Tatarstan 4. Special Economic Zone of Industrial Production Type Alabuga in the Territory of the Republic of Tatarstan

Register of SEZIPT Alabuga residents as of January 1, 2010

Estimated No. Company Projects investment (US$ Million) OOO Sollers- Launching the Fiat 1. Yelabuga Ducato vans production 140 ZAO Severstal 2. Auto-Isuzu Production of trucks 14.5 Production of nonwoven 3. ZAO Polimatiz Spanbond and Spanmelt 50 materials OOO Rockwool- Production of mineral 4. Volga wool 105 Production of heat 5. ZAO Technical pumps and elements of 21.6 Equipment Plant climatic control systems Production of 6. OOO Septal equipment for local and 38 One of the best advantages of the SEZIPT is that the resi- small sewage systems dents are guaranteed considerable tax privileges and steady OOO P-D 7. Tatneft-Alabuga Production of fibreglass 86 rules of business for the entire period of existence of the Zone, Steklovolokno i.e. for 20 years. Production of technical The enterprises registered in the SEZIPT territory shall enjoy 8. OOO Air Liquide gases: liquid oxygen, 48 a number of preferences. In particular, the free customs area Alabuga liquid nitrogen, gaseous oxygen treatment, which means that foreign equipment is installed Launching the and used within the Special Economic Zone without payment 9. OOO Akulchev- confectionery and €11 million of customs duties and VAT. Besides, they shall not pay export Alabuga bakery production duties for their products. The residents of the Zone shall be ex- Kastamonu Launching the MDF empted from the property and land taxes. 10. Entegre and particle board 210 In order to ensure the most favourable treatment and to cut production bureaucratic expenses, the SEZIPT Alabuga employs the “sin- Building the plant for ZAO Trakaya production of float glass, gle window” approach. The customer service area located in 11. Glass Rus automotive glass and 300 the SEZIPT business centre hosts offices of 16 State regulatory mirrors. authorities. Residents of the SEZIPT Alabuga enjoy the oppor- tunity of solving all routine problems of interaction with gov- Prospects of SEZIPT Alabuga development. The number of ernmental authorities within SEZIPT borders. For the first time companies willing to become the residents of SEZIPT Alabuga in Russia this kind of system is being arranged in the territory does not shrink in connection with the current situation in of an industrial site. the world financial markets; however, some of them took a As of today, residents registered in the SEZIPT Alabuga are wait-and-see attitude, since many projects are associated with implementing large-scale projects in the fields of automo- raising the borrowed capital for their implementation. At the tive industry, petrochemical sector, construction industry, same time, the 2010 forecasts of the Ministry of Industry and and engineering equipment. In addition to the already reg- Trade of the Republic of Tatarstan suggest the increase in the istered residents, there are a number of companies engaged number of new SEZIPT residents up to 13–14 companies, that in the sectors of automotive components, mechanical en- is, 4–5 companies will be able to receive a SEZIPT resident sta- gineering, woodworking, chemistry, etc. who have plans to tus in 2010 subject to passing all relevant procedures. place their production facilities in this territory in the near KP BARS Petrochemical, a joint venture company between future. OAO Ak Bars and KP Chemical (South Korea) for PET produc- As of January 1, 2010, a total of 9 residents are registered tion. Total investment in the project will be over €100 million in the SEZIPT Alabuga. The total amount of capital invest- with an annual output of 300,000 MT of PET. ments of the SEZIPT residents at December 1, 2009 totalled OOO Sollers-Shtamp has plans to launch the production of RUR11,783.78 million. stamped parts for Fiat Ducato vans. Once implemented, the

26 4. Special Economic Zone of Industrial Production Type Alabuga in the Territory of the Republic of Tatarstan 4. Special Economic Zone of Industrial Production Type Alabuga in the Territory of the Republic of Tatarstan

project will make it possible to localise the production of the automotive components, heat pumps, building machinery, basic components for the vans within the formed pool of sup- hi-tech electronic equipment, aircraft components, oil prod- pliers. The total project cost is RUR3,200 million. OOO Sollers- ucts, polymers, building materials, household chemical goods, Shtamp will incorporate three workshops (pressing, welding & pharmaceutical products, etc. Placing the production facili- assembly, and tooling) and warehouse premises. ties in the territory of the SEZIPT Alabuga would create some ZAO Saria Bio-Industries Volga plans to build a factory for 30,000 new jobs and would bring investments into the coun- processing the by-products of meat and food industries. The try’s economy in the amount of no less than US$2 billion. factory will produce 17,500 MT of meat-and-bone tankage and 7,000 MT of animal fat a year. Investment in the new enterprise 4.2. PROCEDURE FOR OBTAINING A RESIDENT is estimated at RUR694 million. Some 90 new jobs will be cre- ated. STATUS IN A SPECIAL ECONOMIC ZONE Other new projects in the SEZIPT Alabuga are: The creation of the Synergiya Industrial Park of Automotive FEDERAL LAW NO.116-FZ OF JULY 22, 2005 “ON SPECIAL Components with an area of over 70,000 square metres to host ECONOMIC ZONES IN THE RUSSIAN FEDERATION” small and medium-sized businesses. The design work is cur- rently underway. The construction is scheduled to be started There shall be recognised as a resident of an industrial pro- in mid-2010. duction special economic zone a commercial organisation, The 5th Element Industrial Park for launching various pro- which has been registered in accordance with the legislation duction projects by small and medium-sized businesses. It is of the Russian Federation in the territory of the municipality planned to host the companies both with a SEZIPT resident within whose boundaries the special economic zone is located status and without it. and has signed with the authorities of special economic zones The medium-term strategy of SEZIPT Alabuga development an agreement on the conduct of industrial production activi- (with planning horizon of 2012) suggests completing all kinds ties in accordance with the procedure and subject to the con- of SEZIPT infrastructure facilities (utilities, customs, business) ditions which are envisaged by this Federal Law. by 2012. By this time, some 35 residents will be registered in To become a SEZ resident, a resident company should sign the SEZIPT to manufacture diversified products: cars, buses, the Agreement on the Conduct of Industrial Production Activi- ties with SEZ authorities and to invest in its production assets located in the SEZIPT no less than €3 million, including at least €1 million during the first year of its development. Documents required for signing the Agreement on the Con- duct of Industrial Production Activities: 1. An entity intending to obtain the status of a resident of a special economic zone submits to the authorities of the spe- cial economic zone an application for the conclusion of the Agreement on the Conduct of Industrial Production Activities, which must contain: • information on the applicant’s proposed activities which correspond to the type of the special economic zone; • information on the area of the land plot which is required for the applicant’s proposed activities; • information on the proposed amounts of capital invest- ments, including the amount of capital investments to be made within a year from the day of signing the Agreement on the Conduct of Industrial Production Activities. 2. The applicant encloses the following documents to the application for the conclusion of Agreement on the Conduct of Industrial Production Activities: • a copy of its certificate of State registration; • a copy of its certificate of registration with a tax authority; • a copy of its foundation documents; • a business plan, the form of which shall be established by

27 4. Special Economic Zone of Industrial Production Type Alabuga in the Territory of the Republic of Tatarstan 5. Industrial and investment sites

the Order of the Ministry for Economic Development and Trade of the Russian Federation No.75 of March 23, 2006; • a favourable opinion on the business plan submitted by the applicant, prepared by a bank or other credit organi- sation which meets the criteria established by the federal executive body. The application is considered by the authorities of the spe- cial economic zone within 10 days from the date of receipt of the documents and, in case of favourable decision, is brought for the consideration of the expert board on industrial produc- tion special economic zones. In case the application is approved by the expert board, the investor signs the agreement on obtaining the SEZ resident status.

28 4. Special Economic Zone of Industrial Production Type Alabuga in the Territory of the Republic of Tatarstan 5. Industrial and investment sites

5. Industrial and investment sites

5.1. INNOVATIVE PRODUCTION TECHNOPARK IDEA Innovative Production Technopark Idea is one of the largest ones in Europe in the areas occupied. The advanced infrastruc- ture available in the Park allows it to render to innovation com- panies located in its territory a full range of services required for the establishment and development of their science-inten- sive operations. The infrastructure of Technopark consists of 3 main subdivisions: Innovation Business Incubator, Innovation Technology Centre, and Business Park. In the territory of Tech- nopark Idea such brands are represented as GE Money Bank (data processing centre), Siemens (engineering centre), DHL (main operations office in Tatarstan), and Yokogawa Electric (main operations office and engineering centre in Tatarstan). By locating in the Technopark, the divisions of these compa- nies provide additional inflow of investment to the republic, raise investment attractiveness of the Idea site and the region in general, and create additional jobs (up to 700 in one com- pany). Some 30 percent of investments in the Idea Technopark are private ones.

29 5. Industrial and investment sites 5. Industrial and investment sites

ness processes, facilitating operational management and quality assurance. The Technopolis renders to its residents a full range of services along the entire value added chain from research and development to identifying the logistic flows of finished goods. The number of residents is some 230 companies. The esti- mated output is RUR16 billion a year. Khimgrad is hosted the project of ZAO Danaflex in the area of nanotechnologies with participation of the State-run Ro- snano Corporation. The amount of investment in the project totals RUR2.4 billion, of which 49% are allocated by Rosnano.

Legal address: 100, Vosstaniya St., Kazan 420095, Russia Phone: + 7(843) 227-41-40 Fax: +7(843) 227-41-49 E-mail: [email protected] Anchor residents do not enjoy privileges in the Technopark territory and ensure the inflow of private investment into its infrastructure. Small business residents are granted privileges at the expense of the Technopark and its partners and enjoy easy start-up opportunities. The Technopark is also a home to the Laser Centre. The total area of the Technopark site is 2 hectares, and the floor area of premises after reconstruction is 29,642 square metres. Privileges granted: Free accommodation in Building 26 up to 6 months, subject to a decision of the Technical and Com- mercial Board. The preferential rent for small businesses in the Sviyaga Business Incubator (Building 23) is from RUR220 per square metre. Number of residents is 95 companies, of which 5 are the an- chor residents.

Legal address: 50, Peterburgskaya St., Kazan 420107, Russia Phone: +7(843) 570-68-50 Fax: +7(843) 570-39-17 E-mail: [email protected] http://www.tpidea.ru 5.3. TECHNOPARK IN THE SPHERE OF HIGH TECHNOLOGIES (IT PARK) 5.2. TECHNOPOLIS KHIMGRAD The mission of the IT Park is the accelerated innovation de- Technopolis Khimgrad, a leading-edge industrial complex, velopment of hi-tech sectors, production of new kinds of high is intended for hosting small and medium-sized businesses technology products based on scientific, educational, and in- engaged in the chemical sector and processing of polymer dustrial potential of the Republic of Tatarstan. products. IT Park is a complex with the state-of-the technical infra- The total area of the Technopolis is 131 hectares. The floor structure intended for ensuring the most favourable condi- area of industrial and warehouse real estate is 500,000 square tions for the starting or developing IT companies at the stages metres. It offers land plots and production premises with an of design, creation and market introduction of a new hi-tech area ranging from 10 square metres to 2 hectares. Khimgrad product when they would be provided with resources, tech- suggests placing the manufacturing facilities, warehouse nologies and methodologies based on international stand- premises and offices in a single location thus optimising busi- ards.

30 5. Industrial and investment sites 5. Industrial and investment sites

The Park is a unique business platform intended to concen- trate the IT potential of Tatarstan. The IT Park is designed using smart building technologies to create favourable and com- fortable conditions for business development to its resident companies. The IT Park comprises: • The up-to-date Business Centre with open-office planning and an opportunity of arranging of up to 1500 workplaces; • The Call Сentre; • The Convention Centre with a conference hall, press cen- tre, and training & demonstration centres; • 2 hotels for the Park residents; • The Data Centre; • The Centre for Certification and Licensing. A special infrastructural component of the Park is its Data Centre with high fault-tolerance level, which is located on the 5th floor and incorporates: • The area for State information systems and resources of 250 square metres; • The area for resident company servers of 750 square me- tres; 5.4. OAO KAMA INDUSTRIAL PARK MASTER • 2.5 MW of guaranteed power supply from 2 independent sources; OAO KIP Master was established through support from the • Over 10 connections to nationwide and local Internet pro- Government of the Republic of Tatarstan with a view of provid- viders at 1–10 Gbit/sec; ing infrastructure assistance for the development of automo- • Diesel generators. tive component manufacturers. KIP Master stands as a link for The investments in IT Park totalled RUR2.9 billion. The total representatives of small, medium-sized and large businesses floor area is 30,000 square metres (including hotels,- invest and involves businessmen to the real sector of economy. The ment & venture module, and training & demonstration centre); Park may accommodate not only businesses who are engaged some 2,500 square metres have already been rented. A total of in the mechanical engineering sector, but KIP Master offers its 12 out of 80 planned residents are in place in the Park. production premises and offices for all businessmen as well. The up-to-date industrial buildings of the Park have a total Legal address: 50, Peterburgskaya St., Kazan 420107, Russia floor space of 107,000 square metres and office premises, of Phone: +7(843) 512-96-98 31,000 square metres. Fax: +7(843) 512-96-89 In addition to the low rent and an opportunity to prompt- E-mail: [email protected] ly modify the area occupied, residents of KIP Master enjoy a number of privileges, including: Residents of OAO KIP Master are recognised as privileged partners of OAO KAMAZ which enable them to participate in the outsourcing programmes of manufacturing the complet- ing parts to KAMAZ trucks. A logistic terminal of A category has been opened in the ter- ritory of OAO KIP Master with throughput capacity of 18,000 pallet places, with a state-of-the-art inventory control system and 3PL provider functions, allowing the optimisation of the storage expenses for finished goods. Opportunity of using a railway siding. All residents are provided with a wide range of services on favourable terms, such as accounting, legal, customs, leasing, consulting, and banking services, and website creation and promotion.

31 5. Industrial and investment sites 5. Industrial and investment sites

As of now, KIP Master is a home for 136 enterprises, of which cooperation, which makes it possible to increase the added 37 work with KAMAZ range of products. The total number of value in the products manufactured in Tatarstan. employees is 1,150. 3. Planet of Ideas Business Complex: The project is a unique concept of creating a complex in an entirely new for- Legal address: Promkomzona-2, Naberezhnye Chelny 423800, mat for the southeast region, which would incorporate a busi- Russia ness centre, a business incubator, production premises, and a Phone: +7(8552) 388 883 shopping centre. Fax: +7(8552) 388 883 E-mail: [email protected] Legal address: 1a, Promyshlennaya St., Leninogorsk 423250, Russia 5.5. OOO INNOVATION TECHNOPARK Phone: +7(85595) 2-75-00 IDEA-SOUTHEAST Fax: +7(85595) 2-73-90, 2-73-91 OOO Innovation Technopark Idea-Southeast located in 5.6. INDUSTRIAL PARK KAMSKIYE POLYANY Leninogorsk is a significant actor of industrial activities in the southeast of Tatarstan, its mission being the innovation A work is underway to activities aimed at the development of small and medium- create an industrial park sized businesses in the southeast of the republic through the for small and medium- creation of new and reorganisation and renovation of existing sized businesses in the production facilities; involvement of the unoccupied areas, immediate vicinity of equipment and skilled personnel; rendering of consulting and Kamskiye Polyany ur- outsourcing services; and working out of business plans. ban settlement. In 2009, The total floor space is 37,993.90 square metres. Phase 1 of the Park was A total of 37 residents are registered. completed. The area of Number of employees is 388. Industrial Park Kamskiye Polyany is 150 hectares (with eventual increase to 250 hec- Implemented projects: tares). The total project cost of the Park construction is esti- 1. OOO Agro-Idea: The core business of OOO Agro-Idea is mated at RUR1.7 billion. the production of attachment equipment and screwdriver as- It is most likely that an anchor enterprise to be served by sembly of agricultural machinery for the needs of the repub- Park residents will be OAO Nizhnekamskneftekhim. Processing lic’s agricultural producers. The total floor area of occupied in- of Nizhnekamskneftekhim polymers would be a core business dustrial and office premises is 5,994.14 square metres. To date, of the Industrial Park. it employs over 50 people. In the course of the project implementation, the creation 2. OOO Azalea-Southeast: an enterprise established in Jalil of new and renovation of existing utilities are planned, such working settlement by OAO Tatneft and OAO AChNF Alsou for as power facilities, communication networks and systems, the production of hosiery, which provides for the creation of sewage, water, heat, and gas supply installations, which are over 100 jobs in the settlement. owned by the Kamskiye Polyany municipality. The work on the park infrastructure creation is planned to be completed Planned projects: in 2010. 1. The automotive tyres processing project: Opening a fa- OAO Industrial Park Kamskiye Polyany has been created cility to mechanically process waste tyres of various diameter. within the framework of the republic’s Programme of Innova- Basic product is rubber crumb (0.1 mm to 1.0 mm and 1.0 mm tion Activity Development for 2004–2010. to 3.0 mm). By-products are scrap metal from tyre cords and Major shareholders are OOO NKNH-Invest (51%), OAO Nizh- crushed cord thread. nekamskneftekhim (25%) and OOO Managing Company for 2. OOO Southeast Pipe Company: Underway is the project Small Business Development (24%). on manufacturing parts of pipelines (pipe bends, pipe reduc- In 2009, the production under two investment projects was ers, and branch pipes) aimed at the interaction with OAO Tat- launched on the equipment of SML (Austria): neft as a general partner, creation of facilities and enterprises • polypropylene multifilament yarn, output: 1,000 MT a year focused on supplying OAO Tatneft with products manufac- • stretch film, output: 9,000 MT a year tured by them and previously imported from beyond the re- A total of 52 new jobs were created to date. public’s borders, including the same through the reciprocal In 2010, it is planned to launch another three projects:

32 5. Industrial and investment sites 5. Industrial and investment sites

1. Increasing the output of multifilament (polypropylene) products, at early stages of their activities by providing them yarn up to 2,016 MT a year; with rented non-residential premises and rendering consult- 2. Production of polymer network with an output of 7.8 mil- ing, accounting, legal, and other services. lion square metres a year; There is a system of preferential rent in regard to the premis- 3. Production of reinforced stretch film with an output of es of business incubators: 15,000 MT a year. • First rent year: 40% of the rate of the state-owned prop- erty rent; Legal address: Kamskiye Polyany, Nizhnekamsk District 423564, • Second rent year: 60% of the rate of the state-owned Russia property rent; Phone: +7(8555) 37-79-98, 37-59-44 • Third rent year: 100% of the rate of the state-owned prop- Fax: +7(8555) 37-79-98 erty rent; • Period of rent is up to 3 years. 5.7. GAU VOLGA REGION BUSINESS INCUBATOR To date, 6 residents have been registered in the Business OF LIGHT INDUSTRY Incubator. The mission of the Business Incubator is to support small Legal address: 80, Mekhovshchikov St., Kazan, Russia and medium-sized businesses, which were established for Phone: +7(843) 278-98-88 the purpose of manufacturing the competitive light industry Fax: +7(843) 278-98-88

33 Investment Memorandum of the Republic of Tatarstan for 2010 Investment Memorandum of the Republic of Tatarstan for 2010

Approved by Resolution of the Cabinet of Ministers of the Republic of Tatarstan No.850 dated December 14, 2009

Investment Memorandum of the Republic of Tatarstan for 2010

1. GENERAL 2. MAJOR DIRECTIONS 1.1. The Investment Memorandum of the Republic of OF INVESTMENT POLICIES Tatarstan (hereinafter, “the Memorandum”) establishes the 2.1. The major directions of investment policies of the Re- basic priorities for the development of investment activities in public of Tatarstan are as follows: the Republic of Tatarstan based on the Programme for Social and Economic Development of the Republic of Tatarstan for • shaping the favourable investment climate in the republic; 2005–2010. • developing the infrastructure for investment activities; 1.2. A responsibility centre for the implementation of pro- • enhancing the efficiency of the government measures visions of this Memorandum is the Ministry of Economy of the aimed at supporting the investment activities and of the Republic of Tatarstan (hereinafter, “the Coordinator”). government order system; 1.3. The support of high-priority investment projects is im- • strengthening the measures aimed at redirecting the in- plemented by GUP Agency for Government Order, Investment vestment flows into high-technology knowledge-inten- Activities, and Interregional Relations of the Republic of Tatar- sive industries; stan. • information and human resources support for investment 1.4. The Memorandum is aimed at achieving the strategic activities. objectives of the Government of the Republic of Tatarstan, that is, the improvement of the quality of life through innovation 3. ACTIONS TO IMPLEMENT INVESTMENT development of the economy of the Republic of Tatarstan, creation and development of highly beneficial knowledge- POLICIES OF THE REPUBLIC OF TATARSTAN intensive sectors, high technologies, and, primarily, technolo- IN 2010 gies in the real economy. 3.1. The main actions to implement the investment poli- 1.5. The Memorandum is recommended to investing enti- cies of the Republic of Tatarstan in 2010 are as follows: ties as a basis for developing and approving plans of invest- ment activities. • creating the favourable investment, innovation, and busi- ness climate in the republic through improving invest- 1.6. The monitoring of fulfilling Memorandum provisions is ment and innovation legislation; carried out by the Coordinator. • developing the innovation and investment infrastructure; 1.7. The wording of the annual Memorandum and its per- formance results are included into the list of public informa- • developing the inter-sectoral and territorial clusters; tion resources of the Republic of Tatarstan. • encouraging the development of small and medium-sized 1.8. The investment portal of the Republic of Tatarstan is businesses; located at: www.aidrt.ru • developing the intellectual property market;

34 Investment Memorandum of the Republic of Tatarstan for 2010 Investment Memorandum of the Republic of Tatarstan for 2010

• attracting investment in the sphere of high and knowl- • supporting the industries being potential sources for eco- edge-intensive technologies and projects, creating com- nomic growth: petitive products; • petrochemical and chemical industry; • attracting investment in the production renovation and • mechanical engineering, automotive industry; its structural reorganisation; • aircraft industry; • developing the transportation infrastructure; • agro-industrial complex; • developing mechanisms of long-term and syndicated lending for large-scale investment projects; • food industry • attracting the resources of pension, insurance, and mutual • production of building materials. funds for the implementation of the most important in- 3.2. The actions for the implementation of the investment vestment projects; policies specified in the Memorandum can be adjusted- fol • attracting federal investment resources in the economy of lowing the results and new priorities of social and economic the Republic of Tatarstan; development, as well as changes in the legislation. • developing mechanisms of public-private partnership; 4. INVESTING ENTITIES • attracting investors and supporting their priority invest- ment projects aimed at improving the quality of life and 4.1. Investing entities may be natural persons and legal en- substituting the products (jobs, services) imported to the tities including foreign ones, as well as states and international Republic of Tatarstan; organisations acting as investors, customers, contractors, us- ers of investment facilities, and other participants of invest- • efficiently using the institutes for economic development ment activities, including those implementing investment established by the federal public authorities; activities in the territory of the Technopolis. • providing the financing for the actions within the priority target programmes of the Republic of Tatarstan; 5. INTERACTION WITH INVESTING ENTITIES • rendering the government support for manufacturers in 5.1. The procedures for interaction with investing entities the form of tax privileges and investment tax credits within are established within the framework of the legislation in force the framework of the current tax legislation of the Russian and are governed by the regulations to be worked out by in- Federation; for the development of leasing mechanisms; vesting entities in accordance with international agreements for ensuring the priority of Tatarstan manufacturers in of the Russian Federation, federal laws and other regulatory public procurement procedures and import substitution legal acts of the Russian Federation, laws and other regulatory through Electronic Commodity Information System of the legal acts of the Republic of Tatarstan, regulatory legal acts of Republic of Tatarstan (hereinafter, “ETIS”); for participation local authorities. of the government in investment projects; for promotion of products manufactured by strategic enterprises of 6. OBJECTIVES OF PUBLIC AUTHORITIES Tatarstan to international markets; for reimbursement of a part of interests on the banking credits for enterprises OF THE REPUBLIC OF TATARSTAN implementing investment projects; AND LOCAL AUTHORITIES • encouraging the increase in investment activities of the IN THE REPUBLIC OF TATARSTAN enterprises in the Republic of Tatarstan, including the same through the full use of depreciation deductions for 6.1. The major objectives of the public authorities of the the renovation of production and reinvestment of profits; Republic of Tatarstan and the local authorities in the Republic of Tatarstan, which are determined by this Memorandum, are • creating the conditions for the improvement of invest- as follows: ment attractiveness of enterprises and organisations of the Republic of Tatarstan; • achieving the target values for estimating the efficiency of activities of the local authorities aimed at improving • optimising the budget expenditures; the quality of life, which are determined by annual agree- • creating conditions for increasing the wages of employees ments between the Cabinet of Ministers of the Republic of in all spheres of activities; Tatarstan and municipalities; • increasing the efficiency of power sector; • creating efficient mechanisms for attraction of investment

35 Investment Memorandum of the Republic of Tatarstan for 2010 Investment Memorandum of the Republic of Tatarstan for 2010

in the real economy by the authorised public authorities 14. “Launching of Spectacle Lens Production from Poly- of the Republic of Tatarstan. carbonate” (FKP Kazan State Government-Owned Gunpowder Plant); 7. PRIORITY INVESTMENT PROJECTS 15. “Launching of Nitrocalcite Production” (OAO Karpov FOR 2010 Chemical Plant); 16. “Equipment of Russian Aircraft Companies with Tu-334 In accordance with the Message of the President of the Short-Haul Airplanes” (OAO Kazan Gorbunov Aircraft Republic of Tatarstan to the State Council of the Republic of Production Association); Tatarstan and the Programme of Social and Economic Devel- opment of the Republic of Tatarstan for 2005–2010, the prior- 17. “Creation of Workshop for Ointment Production” (OAO ity projects for the implementation in 2010 are as follows: Tatkhimpharmpreparaty); 7.1. Investment projects: 18. “Launching of New Production of Gearboxes under Licence of ZF Friedrichshafen AG with High Level of 1. “Development of Kama Economic District” (Ministry of Localisation in Naberezhnye Chelny” (OAO ZF-Kama); Economy of the Republic of Tatarstan); 19. “Launching of Production of Euro-3 and Euro-4 Cum- 2. “Oil Refining and Petrochemical Complex in Nizh- mins Diesel Engines in Naberezhnye Chelny” (ZAO nekamsk” (OAO TANEKO); Cummins-Kama); 3. “Construction of New Integrated Complex for Pro- 20. “Construction of FIAT Automotive Plant in Naberezh- duction of Ammonia, Methanol and Granulated Car- nye Chelny” (OAO SeverstalAvto-Kama); bamide in Mendeleyevsk” (OAO Ammonium); 21. “Establishment of Joint Venture for Production of Mit- 4. “Development of Ashalchinsky Deposit of Super-Vis- subishi Fuso Canter Light-Duty Trucks and Their Pro- cous Oil” (OAO Tatneft); motion to the Market the Russian Federation” (OAO 5. “Launching of All-Steel Cord Tyre Production with An- KAMAZ, AO Daimler); nual Capacity of 1,200,000 Tyres at OAO Nizhnekamsk 22. “Establishment of Joint Venture for Production of Mer- CMK Tyre Plant (OAO Nizhnekamsk CMK Tyre Plant); cedes-Benz Trucks and Their Promotion to the Market 6. “Construction of Oil Heavy Residue Deep Processing of the Russian Federation” (OAO KAMAZ, AO Daimler); Complex of OAO TAIF-NK Refinery” (OAO TAIF-NK); 23. “Wiring Harness Production for OAO KAMAZ” (OOO 7. “Creation of Additional Facilities for Primary Oil Refining Prettl-NK); to Ensure Raw Material Quality for the Heavy Residue 24. “Expansion of Spare Parts Production for Trucks” (OOO Deep Processing of OAO TAIF-NK Refinery (OAO TAIF-NK); Industrial Commercial Firm Remstan); 8. “Launching of ABS Plastic Production with Capacity of 25. “Launching of Moulding Production for Automotive 60,000 MT a Year” (OAO Nizhnekamskneftekhim); Industry” (OOO Kvart-Sijit); 9. “Construction of EP-1000 Complex for Production of 26. “Launching of Sealing System Production for Automo- Olefine and its Derivatives (600,000 MT of PE; 370,000 tive Industry” (OOO Silinks Automotive-Kvart); MT of PP a year)” (OAO Nizhnekamskneftekhim); 27. “Creation of DANEM Unmanned Air Complex for En- 10. “Industrial Park Kamskiye Polyany” (Executive Commit- vironmental Monitoring” (OAO Development Design tee of Kamskiye Polyany Municipality, OOO Managing Bureau Sokol); Company of Industrial Park Kamskiye Polyany, Main Investment and Construction Board of the Republic of 28. “Re-equipment of OAO Teplokontrol (OAO Teplokon- Tatarstan, OAO Nizhnekamskneftekhim); trol); 11. “Extension of Large-Diameter Polymer Pipe Produc- 29. “Development and Re-Equipment of OAO ALNAS” tion by ZAO Techstroi” (ZAO Tekhstroi); (OAO ALNAS); 12. “Launching of Production of Methyl Chlorosilanes and 30. “Construction of TatStal Electrometallurgical Plant with Dimethyl Dichlorosilane Hydrolysate” (OAO Kazan Syn- capacity of 1.2 million MT per year in Leninogorsk Mu- thetic Rubber Plant); nicipal District” (ZAO TatStal); 13. “Launching of Production of Water-Soluble Cellulose 31. “Construction of Tatkabel Plant for Cable Production” Ethers” (FKP Kazan State Government-Owned Gun- (OOO Invent); powder Plant); 32. “Construction of Pipe-in-Pipe Plant” (OOO Invent);

36 Investment Memorandum of the Republic of Tatarstan for 2010 Investment Memorandum of the Republic of Tatarstan for 2010

33. “Construction of Workshop for Hot Galvanisation of 48. “Creation of Innovation and Technological Industrial Metal Structures” (OOO Invent); Park Melita (OAO Melita); 34. “Construction of Plant for Transformer Production” 49. “Creation of Technopark in the Sphere of High Tech- (OOO Invent); nologies in the Republic of Tatarstan” (OAO Innovation 35. “Construction of Plant for Production of Aluminium and Industrial Technopark Idea); and Copper Rolled Wire” (OOO Invent); 50. “Creation of Technopolis Khimgrad” (OAO Innovation 36. “Launching of Production of Electric-Welded Shaped and Industrial Technopark Idea); Pipes with Dimensions from 20х20 mm to 180х180 51. “Launching of Confectionery Production under Trade- mm” (OAO Almetyevsk Pipe Plant); mark of Zarya Confectionery Plant” (OAO Chistopol 37. “Launching of Production of Seamless Steel Drill Pipes Bakery); with Wear Resistant Blocks” (OOO VostokBurService); 52. “Reconstruction of Cheese-Making Facilities” (ZAO 38. “Launching of Highly Efficient Casting and Mechanical Edelveis-M Dairy Plant); Production for Release of Products from Synthetic Iron” 53. “Construction of New Facilities for OAO Kazan Fat (OOO Intellect Group Communications); Plant: Workshops for Production of Oil, Mayonnaise, 39. “Construction and Operation of Project A45-1 High- and Sauces (KZhK-2)” (OAO Kazan Fat Plant); Speed Passenger Vessel” (OAO Zelenodolsk Gorky 54. “Construction of Slaughter-House with Cold Treatment Plant); of Meat Products in Nurlaty Village of Buinsky District” 40. “Construction and Operation of Project А145 High- (OOO Avangard); Speed Passenger Vesssel” (OAO Zelenodolsk Gorky 55. “Construction of Dairy Unit milking 1180 Cows in Nur- Plant); laty Village of Buinsky District” (OOO Avangard); 41. “Launching of POZIS Cooking Stove Production” (FGUP 56. “Reconstruction of Poultry Plant” (OOO Chelny-Broiler); PO Sergo Plant); 57. “Construction of Integrated Pork Processing Unit” 42. “Reconstruction and Development of Production of (OOO Kamsky Bekon); Cooling Units and Medical Equipment with Switchover 58. “Reconstruction of Cattle-Breeding Unit for Dairy Cat- to Environmentally Sound Components (Cyclopen- tle” (OOO Aznakay Agrofirm); tane)” (FGUP PO Sergo Plant); 59. “Reconstruction of Cattle-Breeding Unit for Beef Cat- 43. “Upgrading of OAO Zelenodolsk Plywood Plant” (OAO tle” (OOO Aznakay Agrofirm); Zelenodolsk Plywood Plant); 60. “Reconstruction of Grain Storages and Replacement of 44. “BOR-1Investment Project” (ZAO Vasilyevo Glass Plant); Tractor and Machinery Fleet” (OOO Aznakay Agrofirm); 45. “Development and Creation of Autoclaved Rigid En- 61. “Reconstruction of Grain Storages and Replacement of doscopes for Endo-Surgical Sets” (State Non-Profit Or- Tractor and Machinery Fleet” (OOO Jalil Agrofirm); ganisation Foundation for Assistance to Development 62. “Reconstruction of Grain Storages and Replacement of of Small Businesses in Scientific and Technical Sphere, Tractor and Machinery Fleet” (OOO Zai Agrofirm); OOO ELEPS Research and Production Firm); 63. “Reconstruction of Grain Storages and Replacement 46. “Development of Technology and Equipment for of Tractor and Machinery Fleet in 2010” (OOO Kama Production of Framework Structure Elements for Agrofirm); Economy-Class Houses Constructed Within the So- cial Mortgage Programme in Rural Areas” (State 64. “Reconstruction of Grain Storages and Replacement Non-Profit Organisation Foundation for Assistance of Tractor and Machinery Fleet” (OOO Nurkeevo to Development of Small Businesses in Scientific Agrofirm); and Technical Sphere, OOO Research Centre of High 65. “Reconstruction of Grain Storages and Replacement of Technologies, OOO Narodny Dom Construction Tractor and Machinery Fleet” (OOO Sarman Agrofirm); Company); 66. “Reconstruction of Grain Storages and Replace- 47. “Construction of Plant for Production of Flexible Pack- ment of Tractor and Machinery Fleet” (OOO Vostok ages and Polymer Film Materials” (OOO Danaflex-Na- Agrofirm); no); 67. “Reconstruction of Grain Storages and Replacement

37 Investment Memorandum of the Republic of Tatarstan for 2010 Investment Memorandum of the Republic of Tatarstan for 2010

of Tractor and Machinery Fleet in 2010” (OOO Zainsky of the Republic of Tatarstan with Capacity of 60 Million Sakhar Agrofirm); Conventional Bricks a Year” (ZAO Tetushsky Construc- 68. “Project of Automated Production of Rabbit Meat tion Materials Plant); and Fur based on Up-to-Date European Technologies” 84. “Production of Aros Super-Plasticiser for Cement Con- (ZAO Pedigree Rabbit Plant); cretes” (State Non-Profit Organisation Investment and 69. “Development of Full Cycle Sturgeon-Breeding Unit Venture Fund of the Republic of Tatarstan, OOO TsNV Based on Closed Water Supply Plants” (OOO Poseidon); Aros); 70. “Installation of Energy Facilities” (ООО Maysky Green- 85. “Production of Low Water Demand Cements with the house Plant); Use of Non-Metallic Minerals of the Republic of Tatar- stan” (State Non-Profit Organisation Investment and 71. “Construction of Koshchakovsky Brick-Making Plant Venture Fund of the Republic of Tatarstan, OOO TsNV in Pestrechinsky District of the Republic of Tatarstan” Aros); (ZAO Keramik); 86. “Launching of Extraction and Integrated Processing 72. “Launching of Ceramic Brick Production in Chistopol- of Gypsum of Syukeyevsky Deposit, Kamsko-Ustinsky sky District of the Republic of Tatarstan with Capacity District of the Republic of Tatarstan” (OOO Fonika Gips); of 60 Million Conventional Bricks a Year” (OOO Chis- topol Plant of Ceramic Materials); 87. “Construction of Yashlek Housing Development, Nab- erezhnye Chelny” (OAO FON); 73. “Construction of Brick-Making Plant in Apastovsky Dis- 88. “Construction of 4–5 Residential District in Yelabuga” trict of the Republic of Tatarstan with Capacity of 60 (Executive Committee of Yelabuga Municipal District); Million Conventional Bricks a Year” (OOO Stroiservis); 89. “Construction of Tanaika Residential District in Yelabuga” 74. “Construction of Brick-Making Plant in Buinsk, Repub- (Executive Committee of Yelabuga Municipal District); lic of Tatarstan” (ZAO FON); 90. “Construction of Solnechny Gorod Housing Estate and 75. “Launching of Extraction, Transportation and Sales of Social Amenities” (OOO Solnechny Gorod); Inert Materials in the Republic of Tatarstan” (ZAO FON); 91. “Construction of Sedmoye Nebo Housing Develop- 76. “Launching of Workshop for Production of Solid Ce- ment in Kazan” (OOO Аk Bars Development); ramic Bricks in Verkhneuslonsky District of the Repub- lic of Tatarstan” (ZAO FON); 92. “Construction of Zamelekesye Housing Development (OAO Mortgage Agency of the Republic of Tatarstan); 77. “Clinker Grinding Plant with Capacity of 300,000 MT a year in the Territory of Vysokogorsky District of the Re- 93. “Construction of Pribrezhny and XVIII Housing Devel- public of Tatarstan” (ZAO FON); opments: First Line of Construction in Naberezhnye Chelny of the Republic of Tatarstan” (Non-Profit Organ- 78. “Re-Equipment of OAO Elabuzhskaya Keramika, isation State Housing Fund under the President of the Launching of New Production (OAO Elabuzhskaya Republic of Tatarstan); Keramika); 94. “Construction of Pribrezhny and XVIII Housing Devel- 79. “Creation of Plant for Lime Production in Baltasin- opments: Second Line of Construction in Naberezhnye sky District of the Republic of Tatarstan” (OOO Soyuz Chelny of the Republic of Tatarstan (3rd Residential Tekhnologiya); District)” (Non-Profit Organisation State Housing Fund 80. “Reconstruction of Reinforcement Metal Production under the President of the Republic of Tatarstan) at OOO Kamenergostroiprom (OOO Kamenergos- 95. “Construction of Residential District No.1 of Sevetlaya troiprom); Dolina Housing Development (OOO Аk Bars Develop- 81. “Launching of Ceramic Brick Production in Vysokogor- ment); sky District of the Republic of Tatarstan with Capacity 96. “Construction of Pyatidvorie Cluster Home Commu- of 150 Million Conventional Bricks” (OOO Wienerberg- nity: First Line” (OAO Mortgage Agency of the Republic er Kurkachi); of Tatarstan); 82. “Construction of Small Cement-Making Plant in 97. “Construction of Zeleny Dol Satellite Town (Develop- Yelabuzhsky District of the Republic of Tatarstan” (OOO ment of Territories Adjacent to Kazan-Zelenodolsk Tattsemservis); Motorway)” (OAO Mortgage Agency of the Republic of 83. “Launching of Brick Production in Tetyushsky District Tatarstan);

38 Investment Memorandum of the Republic of Tatarstan for 2010 Investment Memorandum of the Republic of Tatarstan for 2010

98. “Alsou Residential District (Land Inspection of Alme- Orenburg Federal Highway in the Republic of Tatar- tyevsk Municipal District); stan” (Ministry of Transport and Roads of the Republic 99. “17A Residential District: Third Line at Komsomolsky of Tatarstan); District of Naberezhnye Chelny Municipality” (OOO 113. “Sviyazhsky Interregional Multimodal Logistic Centre, Krasnye Chelny); Republic of Tatarstan” (Ministry of Transport and Roads 100. “Construction of Social and Housing Development in of the Republic of Tatarstan); Kazan on Gubkin Street” (OOO FON); 114. “Reconstruction and Upgrading of the Existing Rail- 101. “Construction of Kazanskaya Usadba Cluster Home road Branch with Arrangement of Passenger Service Community (OOO Аk Bars Development); between Kazan Railroad Station and Kazan Interna- tional Airport” (Ministry of Transport and Roads of the 102. “Development of 21st Residential District, Zameleke- Republic of Tatarstan); sye District (OOO Capital Construction Board of Kam- GESenergostry); 115. “Reconstruction of Kazan International Airport” (Min- istry of Transport and Roads of the Republic of Tatar- 103. “Development of 4А Residential District, Poselok GES, stan); Naberezhnye Chelny” (OOO Capital Construction Board of KamGESenergostry); 116. “Development of OAO Tatarstan Airlines” (Ministry of Transport and Roads of the Republic of Tatarstan); 104. “Development of Southwest Part of Block B of Zeleno- dolsk” (Non-Profit Organisation State Housing Fund 117. “Transport Map of the Republic of Tatarstan” (Minis- under the President of the Republic of Tatarstan); try of Transport and Roads of the Republic of Tatar- stan); 105. “M6 Residential District in Azino-1 of Sovetsky District of Kazan” (Non-Profit Organisation State Housing Fund 118. “Construction of Riverside Wharf in Yelabuga” (Ministry under the President of the Republic of Tatarstan); of Transport and Roads of the Republic of Tatarstan); 106. “M6A Residential District in Azino-1 of Sovetsky Dis- 119. “Construction of Permanent Wharfs (Verkhny Us- trict of Kazan” (Non-Profit Organisation State Housing lon, Studentsy, Nizhny Uslon, Sadovaya, Matyushino, Fund under the President of the Republic of Tatar- Pechishchi, Tashovka, Kyzyl Bairak, Shelanga, Klyuch- stan); ishchi)” (Ministry of Transport and Roads of the Repub- lic of Tatarstan); 107. “Construction of Residential District No.7 in Leninogorsk” (Non-Profit Organisation State Housing 120. “All-Season Ski Complex” (OOO Managing Company Fund under the President of the Republic of Tatarstan); KER-Holding); 108. “Integrated Development of Severny Zalesny Resi- 121. “Launching of Assembly of SM6, Okken and MСset dential District, Kazan” (Non-Profit Organisation State High and Low Voltage Electrical Distribution Cubicles Housing Fund under the President of the Republic of in the Republic of Tatarstan (OOO Schneider Electric Tatarstan); Equipment Kazan); 109. “Construction of Simfoniya Housing Development, Ka- 122. “Construction of the Fourth Source of Heat and Electric zan” (OOO FON-Riviera); Energy in Kazan” (OOO PvT Capital and BASCO Invest- ments); 110. “Construction of Residential District No. 3B on Fuchik St. of Sovetsky District of Kazan” (Non-Profit Organisa- 123. “Construction of 230 МW Combined Cycle Plant, Block tion State Housing Fund under the President of the No.1 of Zainsky State District Power Plant” (OAO Gener- Republic of Tatarstan); iruyushchaya Kompaniya); 111. “Creation of the First Line of Infrastructure of the Spe- 124. “Construction of Kazan 500kV Substation with Ac- cial Economic Zone of Industrial and Production Type cess to High Voltage Line of 500-220-110 kV” (OAO Alabuga” (Territorial Board of the Federal Agency for Setevaya Kompaniya); Administration of Special Economic Zones in the Re- 125. “Construction of Yelabuga 500kV Substation with Ac- public of Tatarstan); cess to High Voltage Line of 500-220-110 kV” (OAO 112. “Construction of Alekseyevskoye-Almetyevsk Toll Setevaya Kompaniya); Highway as a part of Shali (M7 Volga) – Bavly (M5 Ural) 126. “Construction of Water Intake under Bolshoy Zeleno- Highway for Development of New Route for the Kazan- dolsk Project (Zeleny Dol) (OAO Vodokanalservis);

39 Investment Memorandum of the Republic of Tatarstan for 2010 Investment Memorandum of the Republic of Tatarstan for 2010

127. “Expansion of Water Treatment Facilities in Vasilevo 8. “Launching of Industrial Production of Technical Gases Settlement with Capacity of up to 36,000 Cubic Metres (OOO Air Liquide Alabuga); a Day” (OAO Vodokanalservis); 9. “Establishment of Confectionery and Bakery Produc- 128. “Construction of Water Intake with Water Supply Pipe- tion with Capacity of 7,000MT of Products a Year” (OOO lines in Jalil Settlement” (OAO Vodokanalservis); Akulchev-Alabuga). 129. “Construction of Small Cogeneration Plant in Jalil Set- 7.3. Investment projects being implemented in the terri- tlement” (OAO Vodokanalservis); tory of Technopolis Khimgrad. 130. “Novo-Ometievskaya Sewage Pumping Station in Ka- 7.4. Investment projects being implemented in the terri- zan” (MUP Vodokanal, Kazan); tory of Kama Industrial Park Master. 131. “Initial and Final Sections of Novo-Ometievsky Sewage 7.5. Investment projects being implemented in the terri- Collector in Kazan” (MUP Vodokanal, Kazan); tory of Industrial Park Kamskiye Polyany. 132. “Gravity-Flowing Sewage Collector, Prospekt Stroiteley‑Vokzalnaya Street, Nizhnekamsk, Republic 8. LIST OF PRIORITY PROGRAMMES of Tatarstan (OAO Water, Sewage and Energy Facilities); FOR 2010 133. “Restoration of Hot Water Supply Circulation Line in Nizhnekamsk” (OAO Water, Sewage and Energy Facili- 8.1. Priority programmes recommended for implementing ties); and financing: 134. “Reconstruction of East Water Intake Using Up-to-Date 1. Programme for Small Business Support in the Repub- Methods of Drinking Water Treatment in Zelenodolsk, lic of Tatarstan for 2005–2010 (approved by Law of the Republic of Tatarstan” (OAO Vodokanalservis); Republic of Tatarstan No. 105-ZRT of 21.10.2005 “On Approval of the Programme for Small Business Sup- 135. “Creation of Production for Agriculture and Construc- port in the Republic of Tatarstan for 2005–2010”); tion Machinery in Naberezhnye Chelny” (OAO KamAZ, Case New Holland). 2. Programme for Development of Fuel and Energy Com- plex in the Republic of Tatarstan for 2006–2020 (ap- 7.2. The investment projects planned to be implemented proved by Law of the Republic of Tatarstan No. 7-ZRT in the Special Economic Zone of Industrial Production Type in of 13.01.2007 “On Approval of the Programme for De- the territory of Yelabuzhsky District of the Republic of Tatar- velopment of Fuel and Energy Complex in the Repub- stan: lic of Tatarstan for 2006–2020”); 1. “Launching of Production of FIAT Ducato Commercial 3. Programme for Energy and Resource Efficiency in the Vehicles” (OOO Sollers-Yelabuga); Republic of Tatarstan for 2006–2010 (approved by Law 2. “Construction of Enterprise for Production of Wide of the Republic of Tatarstan No. 24-ZRT of 23.03.2006 Range of Hi-Tech Polymeric Materials and Products “On Approval of the Programme for Energy and Re- Thereof with Capacity of 17,000 MT of PP Products source Efficiency in the Republic of Tatarstan for 2006– from a Year” (ZAO Polimatiz); 2010”); 3. “Production of Mineral Wool with Capacity of 100,000 4. Programme for Reform and Renovation of Housing MT a Year” (OOO Rockwool-Volga); and Public Utilities Complex in the Republic of Tatar- 4. “Joint Venture of OAO Sollers and Japan-based ISUZU stan for 2004–2010 (approved by Law of the Republic Motors and Sojitz Corp. for Production of Commercial of Tatarstan No. 65-ZRT of 11.12.2004 “On Approval of Vehicles” (ZAO Sollers-ISUZU); the Programme for Reform and Renovation of Housing and Public Utilities Complex in the Republic of Tatar- 5. “Production of Heat Pumps and Elements of Climatic stan for 2004–2010”); Systems” (ZAO Engineering Equipment Plant); 5. Government Programme of the Republic of Tatar- 6. “Production of Fibre Glass and Products on its Basis stan for Preservation, Studying and Development with Annual Capacity of 19,000 MT” (OOO P-D Tatneft- of State Languages of the Republic of Tatarstan Alabuga Steklovolokno); and other Languages of the Republic of Tatarstan 7. “Production of Equipment Components for Local and for 2004–2013 (approved by Law of the Republic Small Sewage Systems” (OOO Septal); of Tatarstan No. 52-ZRT of 11.10.2004 “On Approval

40 Investment Memorandum of the Republic of Tatarstan for 2010 Investment Memorandum of the Republic of Tatarstan for 2010

of the Government Programme of the Republic of Approval of Republic’s Target Programme for Tourism Tatarstan for Preservation, Studying and Develop- Sphere Development in the Republic of Tatarstan for ment of State Languages of the Republic of Tatar- 2009–2011”); stan and other Languages of the Republic of Tatar- 13. Republic’s Target Programme for Popularisation of stan for 2004–2013”); Blue Collar and Engineering Jobs Aimed at Attraction 6. Republic’s Target Programme for Development of and Placement of Professionals in the Enterprises of Transport Complex in the Republic of Tatarstan for the Republic of Tatarstan for 2008–2010 (approved by 2006–2010 (approved by Law of The Republic of Resolution of the Cabinet of Ministers of the Repub- Tatarstan No. 64-ZRT of 03.08.2006 “On Approval of lic of Tatarstan No. 245 of 18.04.2008 “On Approval of the Republic’s Target Programme for Development the Republic’s Target Programme for Popularisation of of Transport Complex in the Republic of Tatarstan for Blue Collar and Engineering Jobs Aimed at Attraction 2006–2010”); and Placement of Professionals in the Enterprises of 7. Republic’s Target Programme for Prevention of Ter- the Republic of Tatarstan for 2008–2010”); rorism and Extremism in the Republic of Tatarstan for 14. Republic’s Programme for Promotion of People’s Em- 2009–2011 (approved by Resolution of the Cabinet ployment for 2008–2010 (approved by Resolution of of Ministers of the Republic of Tatarstan No. 956 of the Cabinet of Ministers of the Republic of Tatarstan 31.12.2008 “On Approval of the Republic’s Target Pro- No. 623 of 29.08.2008 “On Approval of the Republic’s gramme for Prevention of Terrorism and Extremism in Programme for Promotion of People’s Employment for the Republic of Tatarstan for 2009–2011”); 2008–2010”); 8. Republic’s Target Programme for Preservation, Revival, 15. Programme for Development and Placement of Pro- Studying, and Development of National Artistic Crafts ductive Forces of the Republic of Tatarstan Based on in the Republic of Tatarstan for 2009–2011 (approved Cluster Approach until 2020 and for the Period until by Resolution of the Cabinet of Ministers of the Repub- 2030 (approved by Resolution of the Cabinet of Minis- lic of Tatarstan No. 957 of 31.12.2008 “On Approval of ters of the Republic of Tatarstan No. 763 of 22.10.2008 the Republic’s Target Programme for Preservation, Re- “On Approval of the Programme for Development and vival, Studying, and Development of National Artistic Placement of Productive Forces of the Republic of Crafts in the Republic of Tatarstan for 2009–2011”); Tatarstan Based on Cluster Approach until 2020 and 9. Republic’s Target Fire Safety Programme for 2009–2011 for the Period until 2030”); (approved by Resolution of the Cabinet of Ministers of 16. Integrated Programme for Demographic Develop- the Republic of Tatarstan No. 915 of 23.12.2008 “On Ap- ment of the Republic of Tatarstan until 2010 and for proval of the Republic’s Target Fire Safety Programme the Term until 2030 (approved by Resolution of the for 2009–2011”); Cabinet of Ministers of the Republic of Tatarstan No. 10. Republic’s Children of Tatarstan Programme for 2008– 6 of 12.01.2009 “On Approval of the Integrated Pro- 2010 (approved by Resolution of the Cabinet of Minis- gramme for Demographic Development of the Re- ters of the Republic of Tatarstan No. 743 of 24.12.2007 public of Tatarstan until 2010 and for the Term until “Republic’s Children of Tatarstan Programme for 2008– 2030”); 2010”); 17. Republic’s Programme for Implementation of Anticor- 11. Target Programme for Provision of Housing for Young ruption Policies in the Republic of Tatarstan for 2009– Families in the Republic of Tatarstan for 2008–2010 2011 (approved by Resolution of the Cabinet of Minis- (approved by Resolution of the Cabinet of Ministers ters of the Republic of Tatarstan No. 693 of 22.09.2008 of the Republic of Tatarstan No. 315 of 20.07.2007 “On Approval of the Republic’s Programme for Imple- “On Target Programme for Provision of Housing for mentation of Anticorruption Policies in the Republic of Young Families in the Republic of Tatarstan for 2008– Tatarstan for 2009–2011”); 2010”); 18. Republic’s Target Programme for Development and 12. Republic’s Target Programme for Tourism Sphere De- Application of Information and Communication Tech- velopment in the Republic of Tatarstan for 2009–2011 nologies in the Republic of Tatarstan – “Electronic (approved by Resolution of the Cabinet of Ministers Tatarstan for 2008–2010” (approved by Resolution of the Republic of Tatarstan No. 955 of 31.12.2008 “On of the Cabinet of Ministers of the Republic of Tatar-

41 Investment Memorandum of the Republic of Tatarstan for 2010 Investment Memorandum of the Republic of Tatarstan for 2010

stan No. 513 of 17.07.2008 “On Republic’s Target Pro- 6. Programme for Development of Physical Education gramme for Development and Application of Informa- and Sports in the Republic of Tatarstan; tion and Communication Technologies in the Republic 7. Programme for Energy Saving in the Republic of Tatar- of Tatarstan – “Electronic Tatarstan for 2008–2010”); stan; 19. Republic’s Target Programme for Development of Ag- 8. Programme for Development of Foreign Trade Activi- riculture in the Republic of Tatarstan for 2008–2012 ties in the Republic of Tatarstan; (approved by Resolution of the Cabinet of Ministers of the Republic of Tatarstan No. 711 of 14.12.2007 “On 9. Programme for Ensuring Availability of Medicines in Approval of the Republic’s Target Programme for De- the Republic of Tatarstan; velopment of Agriculture in the Republic of Tatarstan 10. Programme for Development of Oil Production, Pet- for 2008–2012”); rochemical Sector and Oil Refining in the Republic of 20. Actions within the framework of the Federal Target Tatarstan; Programme for Social Development of Rural Areas un- 11. Programme for Development of Mechanical Engineer- til 2012 (approved by Resolution of the Government ing in the Republic of Tatarstan; of the Russian Federation No. 858 of 03.12.2002 “On 12. Programme for Development of Construction and Pro- Federal Target Programme for Social Development of duction of Building Materials in the Republic of Tatar- Rural Areas until 2012”); stan; 21. Long-Term Target Programme for Development of Wa- 13. Programme for Development of Transport Complex in ter and Sewage Facilities and Heat Supply Systems in the Republic of Tatarstan for 2011–2020. the Utilities Complex of the Republic of Tatarstan for 2009–2015 (approved by Resolution of the Cabinet of Ministers of the Republic of Tatarstan No.194 of 9. POTENTIAL OF THE REPUBLIC’S 31.03.2009 “On Approval of the Long-Term Target Pro- COMMODITY MARKET gramme for Development of Water and Sewage Facili- ties and Heat Supply Systems in the Utilities Complex 9.1. The potential of the republic’s market of food and non- of the Republic of Tatarstan”); food commodities, that is yet to be developed by the repub- lic’s commodity producers, is determined by the volumes of 22. Long-Term Target Programme for Development of products purchased from Russian and foreign enterprises. Fisheries Industry in the Republic of Tatarstan for 2009–2013 (approved by Resolution of the Cabinet The 2010 market capacity forecast for basic consumer of Ministers of the Republic of Tatarstan No. 537 of goods is shown in annexes No. 1 and No. 2 hereto. 04.08.2009 “On Approval of the Long-Term Target Pro- gramme for Development of Fisheries Industry in the Republic of Tatarstan for 2009–2013”). 8.2. Priority target programmes recommended for the elaboration and approval: 1. Republic’s Target Programme for Capital Repairs of Apartment Houses for 2010; 2. Republic’s Target Programme for Provision of Territo- ries of Municipalities in the Republic of Tatarstan with Land Use Planning and Town Zoning Documents and Territory Planning Documentation for 2010–2012”; 3. Programme for Development of Competition in the Republic of Tatarstan; 4. Programme for Improvement in the Quality of Goods and Services in the Republic of Tatarstan; 5. Programme for Development of Education System in the Republic of Tatarstan;

42 Investment Memorandum of the Republic of Tatarstan for 2010 Investment Memorandum of the Republic of Tatarstan for 2010

Estimated volumes of products to be imported into the Republic of Tatarstan and financial resources to be exported from the republic, calculated based on the minimum consumer budget of a man of working age, in 2010

People’s demand, kg Proportion Imported Financial resources Product name of products products, exported from the per month per year per year, except for the imported into the republic, products grown in households republic, percent kg/year RUR/year Bakery products 35,119,467 421,433,600 421,433,600 0 0 0 Wheat flour * 4,703,500 56,442,000 56,442,000 50 28,221,000 584,423,045 Macaroni products 1,724,617 20,695,400 20,695,400 50 10,347,700 442,368,314 Rice 783,917 9,407,000 9,407,000 100 9,407,000 446,614,258 Cereals 3,355,163 40,261,960 40,261,960 41 16,405,808 426,365,848 Potato * 32,610,933 391,331,200 0 0 0 0 Vegetables 50,609,660 607,315,920 350,201,520 23 79,739,194 4,214,061,768 Fruit: 24,301,417 291,617,000 244,111,650 80 201,356,835 12,655,575,677 citrus 2,038,183 24,458,200 24,458,200 100 24,458,200 1,415,405,817 apples 15,835,117 190,021,400 142,516,050 70 99,761,235 5,471,544,599 pears 1,097,483 13,169,800 13,169,800 100 13,169,800 600,332,163 bananas 1,567,833 18,814,000 18,814,000 100 18,814,000 976,883,085 dried fruits 3,762,800 45,153,600 45,153,600 100 45,153,600 4,191,410,012 Meat and meat products: 22,105,196 265,262,349 228,920,069 25 61,025,505 10,946,225,116 beef 9,686,074 116,232,892 104,198,253 30 31,259,476 5,685,723,544 pork* 1,255,521 15,066,251 3,958,281 30 4,519,875 885,541,212 mutton 1,076,161 12,913,930 12,869,739 10 1,286,974 257,983,694 poultry 7,892,473 94,709,676 81,554,196 10 8,155,420 725,793,202 sausages, smoked meat* 2,194,967 26,339,600 26,339,600 60 15,803,760 3,391,183,464 Milk and products from whole milk (in milk 48,446,050 581,352,600 473,579,784 5 22,267,473 613,527,810 equivalent): milk, sour milk products 43,899,333 526,792,000 428,097,600 5 21,404,880 545,156,608 curd cheese 2,822,100 33,865,200 28,230,321 0 0 0 sour cream 1,724,617 20,695,400 17,251,863 5 862,593 68,371,203 Animal oil 1,881,400 22,576,800 22,576,800 0 0 0 Cheese* 940,700 11,288,400 11,288,400 55 6,208,620 943,819,512 Fish products 5,957,767 71,493,200 71,493,200 91 65,096,440 5,546,656,183 Sugar and confectionery: 11,758,750 141,105,000 141,105,000 21 29,914,260 2,348,084,732 confectionery 4,233,150 50,797,800 507,97,800 50 25,398,900 2,215,434,292 sugar * 7,525,600 90,307,200 90,307,200 5 4,515,360 132,650,440 Eggs (pcs) * 54,861,624 658,339,488 355,839,488 5 17,791,974 51,013,149 Vegetable oil, margarine and other fats: 3,449,233 41,390,800 41,390,800 62 25,492,970 1,635,762,911 margarine * 470,350 5,644,200 5,644,200 10 564,420 35,444,673 vegetable oil * 2,822,100 33,865,200 33,865,200 70 23,705,640 1,518,412,618 mayonnaise * 156,783 1,881,400 1,881,400 65 1,222,910 81,905,620 Others: 2,916,170 34,994,040 30,478,680 97 33,868,963 7,605,204,864 tea 376,280 4,515,360 4,515,360 100 4,515,360 836,107,405 instant coffee 501,707 6,020,480 6,020,480 100 6,020,480 4,496,460,509 cocoa powder 376,280 4,515,360 4,515,360 100 4,515,360 1,393,512,342 spices 156,783 1,881,400 1,881,400 99 1,862,586 718,430,712 iodised salt 1,411,050 16,932,600 16,932,600 100 16,932,600 159,870,836 yeast* 94,070 1,128,840 1,128,840 2 22,577 823,060 TOTAL 48,459,703,186

* production in the republic’s covers the people’s demand, but the products manufactured outside the republic is sold as well

43 Investment Memorandum of the Republic of Tatarstan for 2010 6. Reference information

Estimation of consumption rates and volumes of non-food commodities in 2010 calculated based on minimum consumer budget Proportion of consumed products, Standard Consumed in per cent Imported Financial resources exported Name consumption, Tatarstan, products, from the republic, pcs/year pcs/ year Produced in Produced outside pcs/year RUR/year Tatarstan Tatarstan Sanitary and hygiene items* 96.5/1 363,110,200 45.0 55.0 199,552,106 5,442,335,576.5 Medicines 189.8/1 714,179,440 9.4 90.6 646,838,440 15,302,956,978.3 Bed-clothes 15/5.3 10,649,434 1.0 99.0 10,541,059 2,450,809,364.0 Underclothing 15/1.75 32,252,571 0.4 99.6 32,137,752 3,067,360,770.1 Coats 3.5/4.32 3,048,565 4.1 95.9 2,923,572 7,343,650,156.6 Suits and dresses 12.5/2.66 17,682,331 4.1 95.9 16,957,331 15,656,715,397.7 Headgear 3.5/4.32 3,048,565 0.6 99.4 3,029,965 2,557,908,513.5 Shoes 8/1.85 16,271,568 10.9 89.1 14,504,168 11,060,571,859.0 Small-ware 25.7/2.32 41,682,741 5.3 94.7 39,455,541 5,895,958,049.8 Hosiery 7.5/1 28,221,000 63.6 36.4 10,277,000 615,843,881.0 Stationery 2.0/1 7,525,600 4.9 95.1 7,155,717 2,823,442,038.7 Cultural and household goods 35.8/6.61 21,916,460 3.7 96.3 21,115,411 12,303,688,060.8 TOTAL 84,521,240,645.9 * For some items of this group of commodities (toilet soap, detergents), production exceeds the demand.

44 Investment Memorandum of the Republic of Tatarstan for 2010 6. Reference information

6. Reference information

BODIES OF STATE POWER OF THE REPUBLIC OF TATARSTAN

PRESIDENT OF THE REPUBLIC OF TATARSTAN Rustam Minnikhanov 420014, Kazan, Kremlin, Presidential Palace Phone: (843) 5678901, 2927088 E-mail: [email protected] http://www.tatar.ru/president

STATE COUNCIL OF THE REPUBLIC OF TATARSTAN 1, Svoboda Sq., Kazan, 420060

Chairman of the State Council of the Republic of Tatarstan Farid Mukhametshin Phone: (843) 2676300 Fax: (843) 2927359 E-mail: [email protected] http://www.gossov.tatarstan.ru

45 6. Reference information 6. Reference information

CABINET OF MINISTERS OF THE REPUBLIC OF TATARSTAN Ministry for Youth Affairs, Sports and Tourism of the Republic of Tatarstan 1, Svoboda Square, Kazan, 420060 12, Peterburgskaya Street, Kazan, 420115 Phone: (843) 2643284 Prime Minister of the Republic of Tatarstan Fax: (843) 2643147 Ildar Khalikov E-mail: [email protected] Phone: (843) 2647701, 2928551 Fax: (843) 2643264 Ministry of Agriculture and Foods of the Republic E-mail: prav@ tatar.ru of Tatarstan MINISTRIES OF THE REPUBLIC OF TATARSTAN 1/1, Fedoseyevskaya Street, Kazan, 420014 Phone: (843) 2920382, (843) 2217600 Ministry of Industry and Trade of the Republic Fax: (843) 2920538 of Tatarstan E-mail: [email protected] 4, Ostrovsky Street, Kazan, 420111 Phone: (843) 2991007 Ministry of Construction, Architecture, and Utilities Fax: (843) 2921645 of the Republic of Tatarstan E-mail: [email protected] 10, Dzerzhinsky Street, Kazan, 420111 Phone: (843) 2311401 Ministry of Interior of the Republic of Tatarstan Fax: (843) 2311555 19, Dzerzhinsky Street, Kazan, 420111 E-mail: [email protected] Phone: (843) 2913217 Fax: (843) 2913217 Ministry of Transport and Roads of the Republic E-mail: [email protected] of Tatarstan 31a, Yershov Street, Kazan, 420045 Ministry of Land and Property Relations of the Republic Phone: (843) 2919010 of Tatarstan Fax: (843) 2919142 26, Vishnevsky Street, Kazan, 420043 E-mail: [email protected] Phone: (843) 2642450 Fax: (843) 2362771 Ministry of Finance of the Republic of Tatarstan E-mail: [email protected] 37, Pushkin Street, Kazan, 420015 Phone: (843) 2647906, 2643745, 2647833 Ministry of Information and Communications Fax: (843) 2643655 of the Republic of Tatarstan E-mail: [email protected] 8, Kremlyovskaya Street, Kazan, 420111 Phone: (843) 2317731 Ministry of Ecology and Natural Resources Fax: (843) 2211999 of the Republic of Tatarstan E-mail: [email protected] 75, Pavlyukhin Street, Kazan, 420049 Phone: (843) 2676801, 2676869 Ministry of Education and Science of the Republic Fax: (843) 2676870 of Tatarstan E-mail: [email protected] 9, Kremlyovskaya Street, Kazan, 420111 Phone: (843) 2929212 Ministry of Economy of the Republic of Tatarstan Fax: (843) 2924480 55, Moskovskaya Street, Kazan, 420021 E-mail: [email protected] Phone: (843) 5249111 Fax: (843) 5249123; 5249122 Ministry of Civil Defence and Emergency Management E-mail: [email protected] of the Republic of Tatarstan 50, Gubkin Street, Kazan, 420088 Ministry of Forestry of the Republic of Tatarstan Phone: (843) 2729124 59a, Kosmonavtov Street, Kazan, 420061 Fax: (843) 2736754 Phone: (843) 2910438 E-mail: mchs@ tatar.ru E-mail: [email protected]

46 6. Reference information 6. Reference information

Committee for Small and Medium-Sized Business Board of the Representative of the Ministry for Economic Development of the Republic of Tatarstan Development and Trade of the Russian Federation 50, Peterburgskaya Street, Kazan, 420107 in the Republic of Tatarstan Phone: (843) 5704001 1, Akhtyamov Street, Kazan, 420021 Fax: (843) 5704002 Phone: (843) 2932401 E-mail: [email protected] Fax: (843) 2932401 E-mail: [email protected] FEDERAL AUTHORITIES IN THE TERRITORY OF THE REPUBLIC OF TATARSTAN Department for Foreign Affairs under the President of the Republic of Tatarstan Board of the Federal Antimonopoly Service in the 9, Kremlin, Kazan, 420014 Republic of Tatarstan Phone: (843) 5678746, 5678726 26, Vishnevsky Street, Kazan, 420043 Fax: (843) 2920092 Phone: (843) 2368922 E-mail: [email protected] Fax: (843) 2381946 http://www.tatar.ru/append85.html E-mail: [email protected] Volga Customs Board – Tatarstan Customs House Board of the Federal Tax Service in the Republic 56, Korolenko Street, Kazan, 420094 of Tatarstan Phone: (843) (843) 5437302, 2919228 13a, Teatralnaya Street, Kazan, 420111 Fax: (843) 5437183, (843) 2919229 Phone: (843) 2351101 Teletype: 224313 TULPA RU Fax: (843) 2351311 E-mail: [email protected] E-mail: [email protected] Committee for External Relations and Tourism of Kazan Board of the Federal Service for State Registration, 2a, Kremlyovskaya Street, Kazan, 420014 Cadastre and Cartography in the Republic of Tatarstan Phone: (843) 2926121 74, Avangardnaya Street, Kazan, 420054 Fax: (843) 2929672 Phone: (843) 2788804 (reception), 2788808 (consultations) E-mail: [email protected] Fax: (843) 2788806 GUP Agency for International Cooperation Development Representative Office of the Ministry of Foreign Affairs under the Cabinet of Ministers of the Republic of the Russian Federation in Kazan of Tatarstan Spasskaya Tower, Kremlin, Kazan 35/2, Pravo-Bulachnaya Street, Kazan, 420111 Phone: (843) 2920127 Phone: (843) 2927902 Fax: (843) 2920157 Fax: (843) 2928776 Board of the Federal Migration Service in the Republic E-mail: [email protected] of Tatarstan 8/2, Chekhov Street, Kazan, 420012 Chamber of Commerce and Industry of the Republic Phone: (843) 2311212 of Tatarstan Fax: (843) 2311244 18, Pushkin Street, Kazan, 420111 E-mail: [email protected] Phone: (843) 2646207, 2382476, 2360804 Fax: (843) 2360966 ORGANISATIONS THAT SUPPORT FOREIGN E-mail: [email protected] ECONOMIC ACTIVITIES http://www.tpprt.ru Ministry of Industry and Trade of the Republic of Tatarstan 4, Ostrovsky Street, Kazan, 420111 Phone: (843) 2991007 Fax: (843) 2921645 E-mail: [email protected]

47 6. Reference information 6. Reference information

REPRESENTATIVE OFFICES OF THE REPUBLIC OF TATARSTAN IN FOREIGN COUNTRIES NON-CIS COUNTRIES USA Switzerland Permanent Representative Office Trade and Economic Representative Office under the Trade Representation of the Russian Federation in the Swiss Confederation 2001 Connecticut Avenue В. W. Washington, D. C.20008 USA 17, Rue de la Rotisserie, 1204 Geneva Phone: 1 (202) 2325988 Phone: +41 223108558 Fax: 1 (202) 2322917 Fax: +41 223108557

Turkey CIS COUNTRIES Plenipotentiary Representative Office in the Republic of Turkey Azerbaijan No. 10 Ataolgac Sokok, Emirgan, Istanbul, Turkey Permanent Representative Office Phone: (90212) 3231030, 3231031, 3231028, 3231029 in the Republic of Azerbaijan Fax: 3231032 84, Gasan bek Zardabi Pr., AZ 1122, Baku E-mail: [email protected] Phone: +994 (12) 4332791 www.tatartrade.com Fax: +994 (12) 4332893, 4328770 Е-mail: [email protected] France Plenipotentiary Representative Office Belarus in the French Republic Trade and Economic Representative Office 14, place General Catroux 75017, Paris, France in the Republic of Belarus Phone: (33) 146223003, 15, Revolutsionnaya Street, Minsk, 220037 Fax: (33) 146223004 Phone: 810 (37517) 2110134 E-mail: [email protected] Fax: 810 (37517) 2260035

Cuba Kazakhstan Trade and Economic Representative Office Plenipotentiary Representative Office in the Republic of Cuba in the Republic of Kazakhstan Phone: (537) 2049866 Office VP-2, 6, Bogembai Batyr Street, Astana Fax: 2045665 (Phone/Fax: 3272 790929) Branch: 23, Dosmukhamedov Street, Almaty Czech Republic Phone: (3172) 236403, 236404, 236405, 236062 Permanent Representative Office Fax: (3172) 236403, 236405 in the Czech and Slovak Republics E-mail: [email protected] Zufar Abdulgaleyev Sibirske nam., 1027, 16000 Praha 6 CR Uzbekistan Phone: (4202) 24311268 Permanent Representative Office Fax: 33325452 in the Republic of Uzbekistan E-mail: [email protected] 30A, V.Vakhidov Street, Tashkent, 700031 Phone: (99871) 1527045 Finland E-mail: [email protected] Trade and Economic Representative under the Trade Representation of the Russian Federation Ukraine Neovostoliiton Kaupallinen Edustusto Suomessa, Trade Representative Office in Ukraine Tehtaankatu 1 C 00140 Helsinki 14 Finland 28/2, Grushevsky Street, Kiev, 252021 Phone: +358405543383 Phone: +38 (044) 2530235, 2539205, 2535637 Fax: +35 (89) 652435 Fax: +38 (044) 2530235

48 6. Reference information 6. Reference information

HOTELS IN TATARSTAN

KAZAN: NIZHNEKAMSK:

Mirage Hotel, 4* Kama Hotel 1a, Moskovskaya Street, Kazan 18, Stroiteley Street, Nizhnekamsk Tel.: (843) 2780505 Tel.: (495) 9212219 Fax.: (843) 2789270 Suite, 2-room – 4,532 roubles/night E-mail: [email protected] 1-room, SGL – 2,640 roubles/night Internet: http://www.mirage-hotel.ru Single rooms from 4,680 roubles/ night. Paradise Hotel 46, Syuyumbike Street, Nizhnekamsk Korston Hotel&Mall, 4* Tel.: (495) 9212219 1a, Ershova Street, Kazan SGL King Size, DBL No 4 – 4800 roubles/night Tel.: +7 (843) 279 3000 Suite, 2-room, King Size – 7300 roubles/night Fax.: (843) 279 33 77 Е-mail: [email protected] Shinnik Hotel Comfort rooms from 2, 950 roubles/night 26, Gagarina Street, Nizhnekamsk Business rooms from 3, 800 roubles/night Tel.: (495) 9212219 Deluxe rooms 8, 000 roubles/night SGL Premium Class – 2,375 roubles/night DBL, 3-room – 4,438 roubles/night Shalyapin Palace Hotel, 4* 7/80 Universitetskaya Street, Kazan Tel.:+7 (843) 238 28 00 NABEREZHNYE CHELNY: Е-mail: [email protected] Standard rooms from 3,500 roubles/night Tatarstan Business Hotel Studio rooms from 5000 roubles/night 18a, Gidrostroiteley Prospect, Naberezhnye Chelny Tel.: +7 (8552) 37 60 33, Grand Hotel Kazan Tel./Fax.+7 (8552) 70 03 45 1, Peterburgskaya Street, Kazan Rooms: suite, studio, first class Tel.: +7 (843) 221 10 00 E-mail: [email protected] Е-mail: [email protected] Standard rooms from 2,800 roubles/night KamAZ Hotel Conference Hall for 400 persons 6, Rubanenko Prospect, Naberezhnye Chelny Tel.: (8552) 39-66-77, (8552) 39-68-20 Giuseppe Hotel SGL, standard – 2,100 roubles/night 15/25, Kremlevskaya Street, Kazan SGL 2-room – 2,700 roubles/night Tel.: (843) 292 69 34, 292 69 54, 292 34 88, 292 21 45 Premier Hotel Fax.: (843) 2926934 140 (52/03A), Moskovskiy Prospect, Е-mail: [email protected] Naberezhnye Chelny Standard rooms from 2,740 roubles/night Tel.: +7 (8552) 59-44-01; 59-84-82

49 CONTENTS

1. Doing business in the Republic of Tatarstan...... 4 4. Special Economic Zone of Industrial Production 1.1. First steps towards starting your business Type Alabuga in the territory of the Republic in the Republic of Tatarstan...... 4 of Tatarstan ...... 24 1.1.1. Opening a branch or a representative office 4.1. Overview ...... 24 of a foreign legal entity...... 4 4.2. Procedure for obtaining a resident status 1.1.2. Procedure for the creation of Russian in a special economic zone ...... 26 legal entities...... 6 1.2. Major priorities for investment in the Republic 5. Industrial and investment sites ...... 27 of Tatarstan...... 7 5.1. Innovative Production Technopark Idea . . . . . 27 1.3. Implementation of an investment projec 5.2. Technopolis Khimgrad ...... 28 in the territory of the Republic of Tatarstan ...... 8 5.3. Technopark in the sphere of high technologies 1.4. Investment climate in the Republic of Tatarstan. . 10 (IT Park) ...... 28 5.4. OAO Kama Industrial Park Master ...... 30 2. Legislation in the sphere of investment...... 12 5.5. OOO Innovation Technopark Idea-Southeast ...... 30 2.1. Fundamentals of the tax system 5.6. Industrial Park Kamskiye Polyany ...... 31 of the Russian Federation ...... 13 5.7. GAU Volga Region Business Incubator 2.2. System of taxation in the Republic of Tatarstan . . . . 14 of Light Industry ...... 32 2.3. Procedure for granting land plots for the implementation of an investment project Investment Memorandum of the Republic of Tatarstan in the territory of the Republic of Tatarstan ...... 14 for 2010 ...... 33 2.4. Procedure for transfer of agricultural lands 1. General ...... 34 to another category ...... 15 2. Major directions of investment policies ...... 34 2.5. Procedure for obtaining a permit to use energy 3. Actions to implement investment policies carriers, rates and prices ...... 17 of the Republic of Tatarstan in 2010 ...... 35 2.6. Procedure for engaging and using foreign 4. Investing entities ...... 36 workers ...... 18 5. Interaction with investing entities ...... 36

3. Measures of State support ...... 19 6. Reference information ...... 36 3.1. Rights of investors and their protection ...... 20 3.2. Forms and measures of State support of investment activities ...... 21 3.3. Tax privileges granted to participants in investment activities of the Republic of Tatarstan . . . 22 3.4. Procedure for granting State support for enterprises and organisations of the Republic of Tatarstan implementing investment projects in the Republic of Tatarstan ...... 22

50 6. Reference information

Investor’s roadmap

Ministry of Industry and Trade of the Republic of Tatarstan

52