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Guide to Investment The Republic of

1st 1st in the national regional among the Russian regions investment climate ranking in innovation activity of in 2015, 2016 and 2017 organisations in 2019 Content PwC (www.pwc.ru) provides industry-focused Welcome letter, President of the Republic of Tatarstan 2 assurance, , legal and business consulting services. Over 2,700 professionals working in PwC offices Welcome letter, Taliya Minullina Head of the Tatarstan Investment Development Agency 4 in , St Petersburg, , Ekaterinburg, Welcome letter, Denis Derevyankin Novosibirsk, Rostov-on-Don, Krasnodar, , Managing Partner, PwC office in Kazan 5 Vladikavkaz, , Nizhny Novgorod and Perm share Six reasons to invest in Tatarstan 6 their thinking, experience and solutions to develop Tatarstan is for smart investors only 8 fresh perspectives and practical advice for our clients. The global network of PwC firms brings together Tatarstan as part of Russia 10 more than 250,000 people in 158 countries. High development potential 12 Strategy 2030 14 PwC refers to AO PricewaterhouseCoopers Audit, Well-developed investment infrastructure 16 or, as the context requires, other member firms of PricewaterhouseCoopers International Limited, each Federal sites for investment projects 18 of which is a separate legal entity. Advantageous geography 30 Strong state support for investors 32

Frequently asked questions by investors 34

High level of human capital 40

Tatarstan as a global event centre 44

Made in Tatarstan 48

Visit Tatarstan 50

Things to do in Tatarstan 52

PwC in Russia 56

This Guide to Investment has been prepared jointly Contacts 58 with the Tatarstan Investment Development Agency. This publication contains information as of March 2019.

The Republic of Tatarstan 1 Welcome letter Rustam Minnikhanov President of the Republic of Tatarstan

Dear partners, Tatarstan is one of the most “digitalised” into transcontinental routes like the regions in the Russian Federation. anticipated Moscow-Beijing railway The Republic of Tatarstan is one of the The republic leverages information or the New Silk Road. most dynamic, economically mature and technology to the fullest and attracts politically stable regions in the Russian cutting-edge projects. For example, Close relations and economic ties Federation. University hosted an with other Russian regions and CIS international school for autonomous countries, as well as the high level of The republic’s current level of economic vehicles here in 2019. internal development, make Tatarstan development provides investors with an excellent hub for foreign businesses equally favourable conditions regardless of The republic is continuously improving looking to enter local markets. a project’s focus, be it the construction its investment infrastructure. Tatarstan of an agricultural facility or the organisation is home to the Alabuga industrial The republic also serves as a stage for of high-tech processing centres. manufacturing zone and the Innopolis annual global events attended by local technology and innovation zone. residents and visitors, including the Global brands like General Electric, In 2019, a fifth territory for advanced Universiade, FIFA Confederations Cup, Ford Sollers, Daimler, Air Liquide, Haier, socio-economic development was set FIFA World Cup and WorldSkills 2019. Philips, Rockwool, Marriott, Hayat Group, up in . All of these sites Fujitsu, Kastamonu, Wienerberger and Supporting businesses, attracting large offer federal benefits and privileges to 3M, among others, have all experienced investment initiatives and increasing their residents. The existing production success in Tatarstan. the volume of non-commodity exports infrastructure was built in technoparks are the leading priorities for regional and municipal industrial sites. In order to make the process of economic policy. We are focusing on the starting a business in the republic Himgrad Technopolis, High Technology future, and we welcome partners who more transparent and comfortable Technopark IT-Park, Idea Technopark are ready to collaborate with us on large- for our partners, Tatarstan is actively and the republic’s engineering centres scale projects to attain ambitious goals. applying the “one-stop shop” concept, offer excellent conditions for launching which features a number of services high-tech production, including for submitting requests and obtaining opportunities to collaborate with experts documents. The Tatarstan Investment and research labs. Development Agency is an inter-agency government structure responsible for Tatarstan has an advantageous location attracting, maintaining and promoting since the country’s major thoroughfares investment projects, as well as for pass through the republic. These Rustam Minnikhanov promoting Tatarstan’s potential in routes are ready to be integrated President of the Republic of Tatarstan external markets.

2 PwC | Guide to Investment The Republic of Tatarstan 3 Welcome letter Welcome letter Taliya Minullina Denis Derevyankin Head of the Tatarstan Investment Development Agency Managing Partner, PwC office in Kazan

regard as well, with Moody’s currently the regional government and business rating Tatarstan as “stable”. community to unleash the region’s economic potential. For over 10 years, Tatarstan has provided investors with tax benefits and special For more than 10 years, PwC Kazan privileges. Today, depending on their has worked with a large number of local profile and location, investors can receive clients. Throughout this time, the regional a plot of land with infrastructure, free government has been relentlessly committed utilities connections and exemptions from to improving the investment climate in land, property and for Tatarstan. As more and more investors 10 years starting from their first profits, have come here, the number of investment as well as other benefits. Tatarstan is the projects has grown substantially. Tatarstan only region in Russia that has seven areas has firmly established itself as a reliable exempt from federal taxation. partner for investors from all around the Dear partners, Dear friends, world. The scale of the projects that have Tatarstan is a member of several national been made possible by the combined efforts We are proud to present Tatarstan, and international trade and economic For the past several years, we have joined of the government and investors has truly a unique region in Russia. associations, giving us and our partners with the Tatarstan Investment Development Agency to publish our Investor’s Guide to been staggering. Our competitive advantage originates access to both domestic and international the Republic of Tatarstan. We highly value from a rare combination of deep cultural markets. Along with supporting large investment the work that we have done together on roots, a thorough and systemic approach projects, Tatarstan also hosts a large We maintain sustainable, cordial and this collaborative project. This year, we are to everything, and the drive to make number of international athletic and cultural mutually beneficial relations with all of our releasing the Guide to coincide with the significant achievements, reach new events every year. The Republic’s image is partners, and those who complete projects KazanSummit, which we have supported horizons and adopt new technology. changing as the quality of life has improved. in the republic seek to do so again and as a partner for a number of years. Tatarstan is rich in opportunities and again. See for yourselves by investing We hope this study will help prospective appeal for investors. The purpose of in Tatarstan! We are very pleased to present the ninth investors evaluate the full range of the Tatarstan Investment Development version of the Investor’s Guide to the Tatarstan’s investment appeal. Agency is to convert this appeal into Republic of Tatarstan. real projects. Welcome! Рәхим итегез! Tatarstan today is a vivid example of how We have everything needed to achieve to build a dynamic and rapidly growing this goal. For four years in a row, economy. Tatarstan has been Russia’s leading I have no doubt you will discover region according to a ranking of the Taliya Minullina opportunities to develop your business Denis Derevyankin national investment climate. International Head of the Tatarstan here with success. One of Tatarstan’s Managing Partner of the PwC rating agencies hold the republic in high Investment Development Agency key advantages is the joint efforts of office in Kazan

4 PwC | Guide to Investment The Republic of Tatarstan 5 Six reasons to invest in Tatarstan 1 2 3 4 5 6 Tatarstan High Well-developed Advantageous Strong High level is for smart development investment geography state support of human investors only potential infrastructure for investors capital

6 PwC | Guide to Investment The Republic of Tatarstan 7 Tatarstan is for 1 smart investors only

International investors Global events Tatarstan has extensive Tatarstan hosts a variety of experience in working with international events every international investors. It year. In 2013, it hosted is no accident that leading the Summer Universiade. international companies, Kazan was one of the host including 3M, Air Liquide, Bosch, cities for the 2018 FIFA Daimler, Fujitsu, Hayat Group, World Cup, and the region Mercedes Benz and Rockwool welcomes the WorldSkills have established a foothold in Championship in 2019. Tatarstan.

International best practices International schools in investor relations and higher education institutions Tatarstan has adopted a number of international best practices There are two in investor relations, including a international schools and one-stop-shop service for meeting over 50 institutions of higher investors’ needs. An effective team education in Tatarstan. of professionals and this approach Tatarstan’s higher education institutions help to ensure that investment serve more than 152,000 students, projects are implemented with including 8,500 international students both speed and quality. from 97 countries.

International trade Logistical advantages Tatarstan is an active player Tatarstan has two in the international market. international airports and The republic has WTO partners three major river ports. in over 160 countries. Important highways, railways and the New Silk Road pass through the region.

8 PwC | Guide to Investment The Republic of Tatarstan 9 Tatarstan as part of Russia

67,800 sq km 3.9m 74.3 years GMT +03:00 Kazan Total area Total population Average lifespan Capital

Tatarstan GRP, 2.44 2.11 RUB trillions 1.93 1.87

1.66 1.55 1.44 1.31

1.00

2010 2011 2012 2013 2014 2015 2016 2017 2018 (at the rate)

102% 2.2m Industrial Production Working-age Index in 2018 population RUB 2.44 trillion 3.3% Gross regional product (GRP) Unemployment 50% in 2018 rate of all Russian citizens live USD 560 within 1,000 km of Kazan Average monthly salary

10 PwC | Guide to Investment The Republic of Tatarstan 11 High development 2 potential

Tatarstan produces Oil production and refining in Tatarstan

42.3% 33.5% 28.3% 36.4m USD 9.9bn 99.2% of Russia’s of Russia’s trucks of Russia's tyres, tonnes Shipping volume of the Refinery yield polyethylene tyre casing and Oil production oil-refining sector (at AO TANECO) inner tubes in 2018 USD 15.4bn of exported goods in 2018 (117.5% of the 2017 level) 58.5% share of non-resource exports 164 countries have trade and economic relations with Tatarstan

12 PwC | Guide to Investment The Republic of Tatarstan 13 Strategy 2030 The priority goals of Major areas for development include: Strategy 2030 are to • human capital; Key development targets for Tatarstan create an efficient and • available space, real capital; knowledge-based economy, The key message of our Strategy Key objective • markets; per capita GRP by PPP, USD thousands and to develop innovative for the Social and Economic • institutions; Development of the Republic of businesses and the high innovation and information; Tatarstan to 2030 is improving the tech sector. • quality of life in the region. 25.0 28.0 35.0 • natural resources; • financial capital. 2021 2024 2030

Human capital The key instrument for transitioning to an innovative economy is cluster activation. Average annual population, Expected lifespan, Cluster activation will be carried out in three stages, each with its own defined millions years target vision.

Tatarstan - 2017 - 2020 - 2030 - regional cluster activation

EC Engineering and other 3.9 4.0 4.1 74.6 78.0 80.0 manufacturing industries 2021 2024 2030 2021 2024 2030 Main clusters Innovative clusters Science to be created by 2030 and Innovation and information education Existing clusters Eurasian hub Light industry Composite EC Share of innovative production Share of R&D expenditures (transportation (based on smart production and logistics) in overall industrial output, % in GRP, % Construction textiles) sector cluster, cluster Smart of construction Metallurgical education Shipbuilding technologies industry and materials Financial Smart Smart materials Aircraft and professional infrastructure (new plastics and manufacturing services composites) Oil-gas and Smart machines petrochemical (transportation 27.6 3 0 . 1 35.0 1.9 2 . 3 3.0 Smart IT cluster Smart and equipment) 2021 2024 2030 2021 2024 2030 Energy equipment 24/7 sales complex (robots, fuel Automotive and power, food, and consumer manufacturing services machine tool Financial capital Institutions Sustainable building, Agribusiness energy 3D printing) Wood processing cluster (and its Biosystems Cumulative direct foreign investment, Share of small- and medium-sized and furniture sub clusters) USD billions enterprises (SMEs) in added value, % Healthy production Ecofood lifestyle (new way of food processing) Fusion Healthcare of civilisations (culture, tourism 2.5 3.4 5.7 29.2 30.5 33.0 and recreation) 2021 2024 2030 2021 2024 2030

14 PwC | Guide to Investment The Republic of Tatarstan 15 Well-developed 3 investment infrastructure

There are three ways of getting tax benefits in Tatarstan: becoming a resident of a special economic zone (SEZ), becoming a resident of a territory for advanced social and economic development (TASED) or being included in the Investment memorandum* as a priority project.

Investment map Tatarstan is the only region in Russia with seven investment sites that enjoy federal tax breaks. Tatarstan has two special economic zones and five territories for advanced social and economic development.

All seven areas enjoy tax benefits and access to special infrastructure.

TASED SEZ

Zelenodolsk Mendeleyevsk Kazan Alabuga

Innopolis

Nizhnekamsk Investment site benefits

Tax breaks Human capital

Allocated land plots Convenient logistics

* Investment memorandum is a document annually 85 approved by the Cabinet of Ministers of the Infrastructure in place Effective facility parks and investment sites are Republic of Tatarstan establishing the main provisions and priorities for investment activities management located in the Republic of Tatarstan in the Republic of Tatarstan for the planned year.

16 PwC | Guide to Investment The Republic of Tatarstan 17 Federal sites for investment projects: Special economic zones (SEZ)

Alabuga SEZ 1st place in the national rating of investment The Alabuga Special Economic attractiveness for Russian special economic zones Zone is a centre for attracting investors who are carrying out USD 1.9m: minimum investment threshold alabuga.ru promising high-tech projects for obtaining resident status in such fundamental economic Customs station for residents and customs clearance clusters as the petrochemical, automotive and construction in 3 hours. Duty-free zone regime industries. Over 6,500 jobs USD Air Liquide received USD 411m of state investment a free utility Tax and customs breaks and relief 1.9bn connection that helped Over 50 resident companies of capital investment us save USD 10m. Largest industrial-production zone of this type in Russia Jan Keller, Vice President for Russia and CIS Air Liquide

Our goal is to organise world-class production here. We are dedicated to our partnership with Tatarstan and the production of quality products. Bart Van Malderen, President Drylock Technologies

18 PwC | Guide to Investment The Republic of Tatarstan 19 There are enormous differences for residents Innopolis SEZ Innopolis is spread out over more than from other cities here: Innopolis is a large-scale project 300 hectares and includes sites in the to create a Russian hub for Verkhneuslonsky (193 hectares) and everything is done so that information and communication Laishevsky municipal districts ( hectares). IT professionals feel at ease technology. The main purpose is 119 to assist Russian and international and can comfortably pursue companies in implementing Advantages of Innopolis: high-tech investment projects. • special tax regime; www.innopolis.com their own goals. Companies specialising in various • access to modern business infrastructure; I went to the gym, where areas of innovation can become preferential terms for land leases and utility Innopolis residents, with priority • people were discussing Java or connections; given to those specialising in architecture, and went to a cafe information and communication • access to highly qualified human resources; technology. and encountered the same thing. • unique environment for employees of resident companies and their families with The environment in Innopolis world-class social, educational and sports infrastructure, and broad opportunities for is very supportive. professional growth and development. Arthur Meloyan, Executive Director, RTK Soft Labs

20 PwC | Guide to Investment The Republic of Tatarstan 21 Federal sites for investment projects: The following types of economic activity are supported in all TASEDs: Territories for advanced social and economic development (TASED) Food and beverage production Chemicals and pharmaceuticals Five TASEDs have been established TASEDs will diversify urban economies, in Tatarstan in the cities of: reduce their dependence on single Naberezhnyе Chelny • enterprises and increase their investment • Chistopol attractiveness, all while creating more than • 17,500 permanent jobs and attracting • Zelenodolsk Woodworking, furniture Other finished products • Mendeleyevsk in investment more than USD 607m. and pulp and paper industry

TASED Naberezhnyе Chelny

USD 582m of capital investment

Over 6,760 jobs

45 residents (21 launched their companies in 2018) adt-chelny.ru Investment project requirements

Volume of capital investment Number of new jobs USD 80,000 20 in the first year of implementation in the first year of implementation

USD 800,000 30 Tatarstan is the during implementation during implementation industrial heart of Russia. At the same Specific types of economic activities for TASED Naberezhnyе Chelny time, it is comfortable not only to work but also to live here.

Textile and Metallurgy and Agriculture, livestock and fisheries Alevtina Kuzmina, General Director light industry metalworking industry Kamastal

22 PwC | Guide to Investment The Republic of Tatarstan 23

TASED Nizhnekamsk TASED Zelenodolsk USD 552m USD 123m of planned capital investment of planned capital investment

Over 3,750 expected jobs Over 2,500 jobs

6 residents toser-nk.ru 4 residents тосэр.com

Investment project requirements Investment project requirements

Volume of capital investment Volume of capital investment USD 40,000 USD 40,000 in the first year of implementation in the first year of implementation We have more than USD 240,000 USD 160,000 five years of experience during implementation during implementation running investment Number of new jobs Number of new jobs projects in the Republic 10 in the first year of implementation 10 in the first year of implementation of Tatarstan. We can

20 during implementation 20 during implementation state with certainty that our experience Specific types of economic activity Specific types of economic activity has been a success. for TASED Nizhnekamsk for TASED Zelenodolsk Onur Gyuven Vice President, KASTAMONU

Resident of SEZ «Alabuga»

Textiles and Metallurgy and The TASED Textiles and Metallurgy and light industry metalworking in the Nizhnekamsk light industry metalworking industrial park has the best conditions Warehousing Cargo Machinery Production, repair and Production, repair for business! and storage handling manufacturing installation of equipment and installation of equipment Marat Giniatullin, General Director Metakam LLC

Publishing Production of films, videos and TV programmes and audio recordings 24 PwC | Guide to Investment The Republic of Tatarstan 25 TASED Chistopol TASED Mendeleyevsk In 2019, the fifth TASED appeared USD 100m on the investment map of Tatarstan of capital investment in Mendeleyevsk.

Over 3,000 expected jobs USD 77m of planned investment 38 expected residents chistopolinvest.ru/toser www.mendeleevsk.ru 630 expected jobs Investment project requirements 19 expected residents Volume of capital investment

USD 40,000 Investment project requirements during implementation Volume of capital investment Our factory is like Number of new jobs a child to us, and USD 40,000 during implementation 10 during implementation its birth was quick Number of workplaces and easy. We can

10 during implementation now easily ship our products throughout Specific types of economic activity Specific types of economic activity Central and Eastern for TASED Chistopol for TASED Mendeleyevsk Russia. Kim Aganimov, Vice President, Food Service Europe Resident of SEZ «Alabuga» Textiles and Metallurgy and Warehousing Production, repair and light industry metalworking The Republic of and storage installation of equipment Tatarstan, TASED Chistopol – the best place to do business Machinery Production, repair and Cargo Mining of other manufacturing installation of equipment of foreign investors. handling minerals Bao Li, Supervisor of Jin Feng Investment Project

Agriculture, livestock and fisheries Agriculture, livestock and fisheries

26 PwC | Guide to Investment The Republic of Tatarstan 27 Federal sites for investment projects: Tax breaks

Tax rate for residents Tax rate for residents Ta x Standard rate TASEDs Priority projects Alabuga SEZ Innopolis SEZ

20%: 16.5% until 2023 2% for the first five years, 2% for the first five years, 5% for the first five years, 2% for federal taxes and Income tax 7% for the next five years, 7% for the next five years, 12% for the next five years 18% for regional taxes 15.5% after ten years 15.5% after ten years

2.2% 0.1% 0% for ten years 0% for ten years 0% for a newly Property tax established entity or one acquired no earlier than 1 January 2014

Land tax 1.5% 0% for ten years 0% for five years 0% 1.5%

From RUB 25 0% for ten years 0% for ten years From RUB 25 From RUB 25 (vehicles Transport tax (vehicles over 100 horsepower) (vehicles over 100 over 100 horsepower) horsepower)

Dependent on the type of 0% Dependent on the type Dependent on the type Dependent on the type of imported good* of imported good* of imported good* imported good* Customs post for residents Customs duties Electronic declaration Customs clearance in three hours

30% 30% (28% in 2019 for 14%** 7.6% 30% Social insurance technical innovation contributions activities)

* In particular, imported technological equipment (including components and spare parts) without analogues manufactured in Russia is not subject to taxation ** Until 2024, residents carrying out activities in the field of IT can take advantage of a preferential rate of 14% if they meet the conditions defined in the Russian Tax Code. If not, standard rate 30% (28% in 2019) will apply.

28 PwC | Guide to Investment The Republic of Tatarstan 29 Advantageous To Kazan From Moscow 12 hours 1 hour 30 minutes 12-16 hours 4 geography From St Petersburg 21 hours 2 hours 30 minutes 23 hours

2 International airports: 39,200 3 1,880 8 3 • more than 45 destinations kilometres A-class logistics kilometres federal highways river ports including Dubai, Frankfurt of highways facilities of railroads spanning 1,073 km and Istanbul • 20 daily flights to Moscow

Tatarstan is located in the heart of the European part Finland of Russia at the intersection Norway Russia Sweden of major trade routes (land, air and water) connecting

Europe and Asia. United KingdomGermany Poland

DuisburgLux. Dzungarian Austria Hungary Ala Tau Mongolia Croatia Romania Bos. S erbia

Urumqi

LisbonSpain Tajikistan

Syria Lanzhou Xian Tunisia Iraq Iran Jordan Shanghai Pakistan Algeria Cairo Nepal Chongqing Libya Bahrain New Silk Road Egypt Qatar Macao Taipei Saudi United Arab (Burma) 16 days Arabia Emirates Hong Kong Laos 10 MauritanTranscontinentalia railway route from Mali Niger Chongqing through the Xinjiang Eritrea of Russia’s 15 largest cities Chad Yemen Thailand are located within 1,000 km UygurBur kAutonomousina Region to EuropeSudan Guine a F a s o36 days Côte Nigeria Central Ethiopia of the Republic of Tatarstan d’SeaIvoi rroutee Benin Colombo African Cameroon Republic

Uganda 30 PwC | Guide to Investment Rep. Democratic Kenya Singapore The Republic of Tatarstan 31 of the Republic Rwanda Congo of the Burundi

Congo

Angola Malawi Zambia

Zimbabwe Namibia Botswana

South Swaziland Africa Lesotho Strong state support 5 for investors Tatarstan Investment Development Agency

For more than eight years, TIDA has been helping investors by:

raising financing;

supporting and implementing investment projects using a one-stop-shop approach;

creating a favourable investment climate;

improving the investment appeal of the Republic of Tatarstan; The Tatarstan Investment Portal is a universal tool that provides investors with extensive information developing public-private partnerships. about Tatarstan in 11 different languages: http://invest.tatarstan.ru

At TIDA, investors receive one-stop-shop services, including on:

Designing project Establishing strategies companies

Investors • Business partners • Government Selecting Receiving investment sites benefits • Other authorities

32 PwC | Guide to Investment The Republic of Tatarstan 33 Frequently asked questions by investors

Where can I find the list The list of documents is available of documents needed to on the website of the Federal Tax register a legal entity? Service. Procedures for establishing joint ventures The list of documents is specified in Article 12 of Federal Law No. 129-FZ of 8 2001, “On the State Registration of Legal What procedures are in First, the parties meet and Entities and Sole Proprietorships”. place for establishing joint identify their next steps and, if ventures? necessary, sign documents such as a memorandum of intent and a confidentiality agreement. To which tax inspectorate The registered address of a legal entity must I submit registration is considered to be the legal address documents? of the director (CEO, founder, etc.). The business address may be the address of an office owned by the In a memorandum of intent, the What does a memorandum founder, or the home address of the parties usually specify the scope of of intent usually contain? firm’s CEO (rented premises may also their activity, confirm their mutual be used as the business address). interest in setting up a joint venture, define the law and judicial authority that will consider disputes between the parties, etc.

How long does it take to If the documents you submitted are receive state registration correct and complete, you will receive documents? the following from the tax inspectorate within three business days: What law regulates the The procedures for registering legal Certificate of state registration of a entities in the Russian Federation, • procedures for registering legal entity; legal entities in the including companies with foreign interest or participation, are defined • A copy of the corporate charter/ Russian Federation? by Federal Law No. 129-FZ of articles of incorporation signed by the 8 August 2001, “On the State registering authority; Registration of Legal Entities and • A list of records with the Unified State Sole Proprietorships”. Register of Legal Entities (USRLE).

34 PwC | Guide to Investment The Republic of Tatarstan 35 How is the hiring of foreign employees regulated?

Investment protection law Where are the rights In the Republic of Tatarstan, Federal and obligations of Law No. 109-FZ of 18 July 2006, “On foreign citizens and the the Migration Registration of Foreign What legislation is in place The Republic of Tatarstan has adopted Citizens and Individuals without terms of their migration Citizenship in the Russian Federation” in Tatarstan to protect my the following laws on protecting registration defined? is in effect. investments? investments: • Law No. 1872 of 25 November 1998 “On Investment Activities in the Republic of Tatarstan”, • Law No. 2180-XII of 19 July 1994 “On Foreign Investment in the Republic of Tatarstan”. What legislation regulates Federal Law No. 115-FZ of 25 July the right of foreign citizens 2002, “On the Legal Status of Foreign to work? Citizens in the Russian Federation” regulates this right.

What about federal The Russian Federation has adopted legislation? the following laws on protecting investments: • Law No. 39-FZ of 25 February 1999, What do the registration Article 1.2 of Federal Law No. 115 “On Investment Activities in the procedures for foreign defines three main types of foreigners: Russian Federation in the Form of citizens depend on? “temporarily staying”, “temporarily Capital Investments”, residing”, and “permanently residing”. The registration procedures primarily • Law No. 160-FZ of 9 July 1999, depend on the status of the foreigner. “On Foreign Investment in the Russian Federation”, • International treaties signed by the Russian Federation on stimulating and protecting investments.

36 PwC | Guide to Investment The Republic of Tatarstan 37 Limitations on the withdrawal of funds from the Russian Federation In accordance with Russian law, transactions involving individuals and legal entities that are currency residents (and non-residents) are subject to currency controls when transferring money abroad.

Main participants in foreign exchange transactions

Currency residents and Currency residents and non-residents: individuals non-residents: legal entities

These individuals may legally The main operations for transferring transfer money abroad in the funds abroad: following major ways: • transfer of funds to contractors • through specialised and (suppliers, creditors, borrowers); unspecialised payment systems; • various payments to individuals • through banks to other individuals (e.g. employees abroad); (acquaintances, relatives); • transfer of various duties and • through banks and payment charges to foreign government systems to legal entities. agencies.

Land rights (restrictions) (What restrictions are in place on foreign investors in Tatarstan?)

In the Russian Federation, land use and protection are regulated by the Russian Land Code and regional legislation.

Land is provided for rent (sometimes with the right of the first option) for terms of no more than 49 years. To receive land for rent or ownership (except for exclusive rights), it may be required to win a bid/auction.

38 PwC | Guide to Investment The Republic of Tatarstan 39 High level 6 of human capital Higher education and the workforce 31 2.03m 129 74.3 resource workforce training years – centres programmes for average skilled workers lifespan

Innopolis University 158 53 USD 560 is a Russian higher education institution training programmes enlarged groups average monthly focused on IT and robotics for mid-level of areas of higher salary specialists education 34 13 7 lecturers research research and laboratories development centres

About Kazan () Federal University is

150,000 5th among Russian institutions students of higher education, according to Times Higher Education 46 higher education institutions

International schools in Tatarstan Instruction at the Alabuga International School and International School (Kazan) is in English in accordance with the International Baccalaureate (IB) programme. The programme is a globally recognised standard-bearer for high-quality education and is the best way to prepare for the rigours of university.

40 PwC | Guide to Investment The Republic of Tatarstan 41 The Republic of Tatarstan: a place for doing business, working and living

42 PwC | Guide to Investment The Republic of Tatarstan 43 Tatarstan as a global event centre

The XXVII Summer Universiade Red Bull Air Race 2019 In July 2013, Tatarstan’s capital, Kazan, Kazan will host the Red Bull Air hosted the XXVII Summer World Students Race for the third time in 2019. Games, which was the largest sporting Competitions are held in the event in the history of student athletics. picturesque centre of the The Games attracted 7,980 athletes city above the River and 3,798 officials from 162 countries. overlooking the Kremlin. More than The event was also attended by around 150,000 guests and tourists. In 2018, the event attracted 20 pilots and more than 90,000 spectators. 90,000 spectators

Around

150,000 2018 FIFA World Cup guests and tourists in Russia Russia hosted the 21st FIFA World Cup from 14 June to 15 July 2018.

Six matches, including a round of 16 match and a quarterfinal, were held in Kazan.

The Kazan Arena has a seating capacity of 45,000 and one of the world’s largest media screens (3,700 sq m).

44 PwC | Guide to Investment The Republic of Tatarstan 45 WorldSkills

kazansummit.ru

Kazan is the host city for the 45th WorldSkills Championship in 2019: International economic summit Russia-Islamic World: KazanSummit KazanSummit is the main discussing issues of cooperation platform for economic and implementing joint projects. cooperation between the Russian In 2018, more than Federation and the Islamic world. 3,000 participants from more This international economic than 50 countries took part in summit between Russia and the Summit. 60 the member states of the member countries The Summit’s business Organisation of Islamic programme is followed by cultural and regions Cooperation (OIC) took place and spiritual events. Forum for the first time in 2009. guests also enjoy an excursion It has become a leading programme as well as food and 56 international platform for design festivals. competencies

More than Opened in 2018, Kazan Expo International Exhibition Centre is a modern, world class high-tech facility. 1,600 www.kazanexpo.ru participants Kazan Expo International Exhibition Centre The centre has a total area of more Kazan Expo International Exhibition More than than 75,000 square meters. It consists Centre is connected to Kazan airport of three exhibition pavilions connected and the Aeroexpress train station. by a gallery, the largest conference centre The capacity of the centre allows it to hold in the for 3,000 seats, large international events, exhibitions, 1,500 more than 30 conference rooms and over congresses, conferences, festivals and 3,000 parking spaces. concerts. experts 46 PwC | Guide to Investment The Republic of Tatarstan 47

Made in Tatarstan

Tatarstan brands and products are well known all over the world. madeintatarstan.com/

KAMAZ trucks have won the Dakar Rally The Kazan branch of Tupolev has over 90 Nizhnekamskneftekhim is one of the largest is one of the largest Russian 16 times. years of experience in aircraft production. petrochemical companies in Europe. oil companies.

With the help of quick-detachable equipment, the Ansat, a light twin-engine multipurpose helicopter, can be quickly re-equipped to perform a wide range of The A-145 is a high-speed skimming tasks, including transportation of goods TANECO is a modern Russian oil refinery. Nefis Cosmetics produces chemicals passenger boat. These types of vessels and passengers, surveillance, search and for household and industrial use. have never been produced in Russia before. rescue, fire fighting and medevacs.

48 PwC | Guide to Investment The Republic of Tatarstan 49 Visit Visit Tatarstan Tatarstan visit-tatarstan.com World events:

Fedor Shalyapin The International Heart of the Republic Opera Festival The white-stone fortress, where the Orthodox Annunciation Cathedral and the elegant Kul Sharif mosque peacefully coexist on the same site. International In the Kremlin, you can visit museums Ballet Festival and galleries, see the tomb of the Kazan Khans and the mysterious “leaning” tower of Suyumbike. International Islamic Film Festival

International Great Bolgar Jazz Festival Ancient civilization on the Volga Bolgar is a place of pilgrimage and Sport venues: a Muslim shrine. One of the ancient capitals of the , part of the Great Silk Road, Bolgar was the Hills Golf Club centre of the birth of Muslim culture in the Volga region. The site has the largest printed Quran in the world. Sviyaga Hills Ski Resort

Kazan International Horse Racing and The ancient island of Sports Complex Prototype of Pushkin's Buyan Island Sviyazhsk, with its primeval nature and amazing history that is kept alive by the residents, seems like it is out of a fairytale. In the churches on the island, unique sixteenth-century frescoes depicting Tsar have 10,000 been preserved. sporting venues operate in Tatarstan 50 PwC | Guide to Investment The Republic of Tatarstan 51 Things to do in Tatarstan

While visiting Tatarstan, make sure to:

Get a copy of the Guide to investment

See the Orthodox cathedral and mosque in the Kazan Kremlin

Discover if the Suyumbike Tower is really leaning

Walk along Bauman Street, Kazan’s version of Moscow’s famous Arbat Street

Fall in love with the local cuisine

Ponder eternity at Sviyazhsk

See the world’s largest printed Quran in the city of Bolgar

Visit the home match of a professional sports club

Invest in Tatarstan

Plan your next visit!

52 PwC | Guide to Investment The Republic of Tatarstan 53 Come to Tatarstan!

54 PwC | Guide to Investment The Republic of Tatarstan 55 PwC in Russia

PwC provides industry-focused assurance and advisory services, as well as tax and legal services for public and private clients. Our experienced staff, combined with our global network, make us uniquely positioned to help you to grow your business both at home and abroad.

Ranking and awards 3,000 24% 79% • No. 1 in 2017 ranking of law firms • No. 1 in 2017 ranking companies make PwC Russia’s share PwC clients in the category of Commercial Law of audit firms performing up our client base of the audit market account for 79% (Kommersant); valuation activities (Expert RA); including 290 among Expert 600 of the total revenue in 2017 ranking of law in the 2018 rankings of Russian companies from companies earned by the • No. 1 • No. 1 firms in the category Law Firm with legal firms (Pravo.ru-300); the Expert Top 600 Expert Top 600 a specialization in tax dispute resolution (Kommersant); • No. 2 in the 2017 rankings of Russian audit and consulting groups (Expert RA).

Our audit and consulting clients Corporate social 10 of the 10 largest 9 of the 10 largest responsibility financial companies and banks retail companies. We believe that high quality corporate responsibility standards are a key component of any business strategy. of the largest of the largest 9 10 7 10 We seek to provide high-quality oil and gas companies power industry companies; services, follow a code of business ethics, help develop talent, get engaged in the communities where 9 of the 10 largest mining we have a presence and promote and smelting companies environmental protection.

56 PwC | Guide to Investment The Republic of Tatarstan 57 Address: Ma Shao Hu Tong Jia 27, Dongzhimennei Dajie, Dongcheng District, Beijing, P.R. China, 100600 Tel.: +86 (10) 844 076 28 Contacts People's Email: [email protected] Republic of China www.russchinatrade.ru Address: N1, vedado Ciudad de la Habana, Tel.: +53 (7) 204 98 66 Email: [email protected] Current Representative Offices of the Republic of Tatarstan Cuba Address: POBox116742, Dubai, UAE, Business Bay, Citadel Tower, 29 Address: Bldg. 1, 13/15, 3rd Kotelnichesky Pereulok, Moscow, 109172 floor, office 2903, Dubai (UAE) Tel.: +7 (495) 915 58 02, 915 53 71 Tel.: +971 436 05 477 Email: [email protected], [email protected] Email: [email protected] Russia UAE dubai.tatarstan.ru Address: Room 2, 14/39, Line 11, Vasilyevsky Island, Address: 2001 Connecticut Ave NW, Washington, 20008 USA St Petersburg, 199178 Tel.: +1 (202) 232 59 88 Tel.: +7 (812) 323 12 27, 323 61 39 Email: [email protected] St Petersburg and Email: [email protected] USA www.usa.tatarstan.ru Address: Room 115, 3 Karl Marx St, Ufa, 450008 Address: 64B Myaty Kosaeva St, Ashkhabad, 744000, Turkmenistan Tel.: +7 (347) 246 52 83 Tel.: +993 61 16 15 29 Email: [email protected] Email: [email protected] Turkmenistan tatturkmen.tatarstan.ru Address: Office 2, 5/9 Bolshaya Pecherskaya St, Nizhny Novgorod, 603005 Address: 1. Blok Kavacık, Beykoz, Rüzgarlıbahçe Mh. Kayın Sokak., Yesa Tel.: +7 (831) 419 57 81 İş Merkezi, İstanbul, 34805, Turkey Nizhny Email: [email protected] Tel.: +90 (216) 537 77 00 Email: [email protected]; [email protected] Address: 75 Moskovskaya St, Saratov, 410600 Turkey tatturk.tatarstan.ru Tel.: +7 (8452) 279 200 Email: [email protected] Address: 30a V. Vakhidov St, Tashkent, 100031, Republic of Tel.: +998 (71) 120 30 17, 252 40 22 Address: 24 Sacco and Vanzetti St, Yekaterinburg, 620077 Email: [email protected], [email protected] Tel.: +7 (343) 371 43 19 Uzbekistan prtuz.tatarstan.ru Email: [email protected] Address: Neovostoliiton Kaupallinen, Edustusto Suomessa, 14 Tehtaankatu 1C, , 00140, Finland Address: Office 116, 27 Studencheskaya St, Khanty-Mansiysk, Tel.: +358 50 34 77 482 Khanty-Mansi Autonomous Okrug — Yugra, 628007 Finland Email: [email protected] Tel.: +7 (3467) 361 891 Address: 6 rue du Dr Finlay, , 75015, France Khanty-Mansi AO Email: [email protected] Tel.: +33 972 871 822 Address: office 1, 19 Shmidta/Turgeneva St, , Email: [email protected] Republic of , 295017 France france.tatarstan.ru Tel.: +7 (365) 227 20 56 Address: Sibirske nam 6 CR, , 1027 16 000, Czech Republic Email: [email protected] Tel.: +420 220 517 081 Address: 22 Khan Shushinski St, , Republic of , AZ1007 Email: [email protected] Tel.: +(99412) 440 96 29 Czech Republic czech.tatarstan.ru/rus Email: [email protected] Address: 17 Ruede la Rotisserie, , 1204, Switzerland Azerbaijan az.tatarstan.ru Tel.: +41 (22) 310 85 58 Address: 6 Sunkar St., Lane Е231, BI Deluxe-1, Nur-Sultan, 010000 Switzerland Email: [email protected] Tel.: +7 (7172) 572 421 Address: 35 Kowa Building, 1-14-15 Akasaka, Minato-ku, Tokyo, Email: [email protected], [email protected] 107-0052 Kazakhstan tatkazah.tatarstan.ru Japan E-mail: [email protected]

58 PwC | Guide to Investment The Republic of Tatarstan 59 Contacts

Republic of Tatarstan PwC Russia

President of the Republic of Tatarstan Moscow Rustam Nurgalievich Minnikhanov 10 Butyrsky Val, Moscow 125047 Office of the President White Square Business Centre of the Republic of Tatarstan Tel.: +7 (495) 967-60-00 Kremlin, Kazan, 420014 Fax: +7 (495) 967-60-01 Tel.: +7 (843) 567-89-01 www.pwc.ru Fax: +7 (843) 292-70-88 president.tatarstan.ru Kazan Head of the Tatarstan 35/2 Pravo-Bulachnaya St, Kazan, 420111 Investment Development Agency (TIDA) Tel.: +7 (843) 233-07-07 Taliya Ilgizovna Minullina Fax: +7 (843) 233-07-17 11 Agronomicheskaya St, Kazan, 420107 Tel.: +7 (843) 570-40-01 (05) Denis Derevyankin tida.tatarstan.ru PwC Managing Partner in the Volga Federal District Investment Portal Tel.: +7 (843) 233-07-07 of the Republic of Tatarstan Email: [email protected] invest.tatarstan.ru

Gulshat Nizamieva Director, Assurance Republic of Tatarstan Tel.: +7 (843) 233-07-13 official website [email protected] tatarstan.ru

Made in Tatarstan, information portal about the industrial potential of the Republic of Tatarstan madeintatarstan.com

Visit Tatarstan, official tourist portal of the Republic of Tatarstan visit-tatarstan.com

60 PwC | Guide to Investment The Republic of Tatarstan 61 This publication has been prepared for general guidance on matters of interest only, and does not constitute professional advice. You should not act upon the information contained in this publication without obtaining specific professional advice. No representation or warranty (express or implied) is given as to the accuracy or completeness of the information contained in this publication, and, to the extent permitted by law, PwC network, its members, employees and agents accept no liability, and disclaim all responsibility, for the consequences of you or anyone else acting, or refraining to act, in reliance on the information contained in this publication or for any decision based on it.

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