CATALOGUE

OF INVESTMENT PROJECTS OF REPUBLIC (YAKUTIA)

investyakutia.com Dear friends!

Yakutia has unique investment opportunities. This is due to the presence of the richest reserves of natural resources, a stable social and demographic situation, a high level of human capital and strong economic positions in the Far East Federal District. Yakutia is actively developing interregional, international and foreign economic relations. Stimulation of investment activity and formation of a comfortable investment climate will be unconditional priorities of the economic policy of the republic. In Yakutia, the necessaryinvestment infrastructure has been created and is ready to provide comfortable conditions for doing business. We are open for productive cooperation and are sincerely glad to see you among our business partners!

Yours faithfully, Head of the Sakha Republic Aisen NIKOLAEV

investyakutia.com 3 AGENCY FOR INVESTMENT PROMOTION AND EXPORT SUPPORT OF SAKHA REPUBLIC (YAKUTIA) ABOUT YAKUTIA

Dear Ladies and Gentlemen!

Our professional team will provide you a full range of services from plan development to project implementation ased on Onestop-shop principle. The catalogue will introduce you to first priority investment projects of Sakha Republic (Yakutia). Looking forward to assisting you with discovering your investment opportunities in Yakutia!

Yours faithfully, Director General Agency for Investment Promotion and Export Support of Sakha Republic (Yakutia) Alexander KONDRASHIN

investyakutia.com 5 ABOUT YAKUTIA

YAKUTIA IS THE LEADING GENERAL INFORMATION REGION OF THE FAR EAST

AREA CAPITAL 1 place The Republic of Sakha (Yakutia) is the largest FEFD region of the Russian Federation and occupies 3,084,000 KM2 1/5 of its territory. The Republic of Sakha (Yakutia) is Founded in 1632. One of the largest Yakutia is a unique region with the rich and divers the largest region of the Russian industrial, scientific and cultural centers natural resources. Yakutia ranks 2nd place in the Federation; France, Austria, Germany, of the entire Far East Region. ~1 M Russian Federation in the rating of the natural Italy, Sweden, England, Finland and The fifth city in the Far Eastern Federal people resource potential of Russian regions (RAEX, Greece taken together constitute a District in terms of population (after 2019). smaller area. Republic is the largest Khabarovsk, Vladivostok, Ulan-Ude The Republic of Sakha (Yakutia) accounts for reserve of the Earth’s biosphere, a and Chita). The largest of the cities global ecological reserve and one of located in the seasonal permafrost 20% of the total gross regional product of the the planet’s climate regulators. zone. 3,1 entire Far East. million m2 Takes 21st place in the rating of the investment budget of Russian regions (RAEX, 2019). According to the human capital index, Yakutia ranks 6th in the Russian Federation. The leader POPULATION TIME ZONE ВВВ of the Far Eastern Federal District in terms of Fitch Ratings natural population growth and birth rate. 972,000 PEOPLE UTC +9, UTC +10, UTC +11 Yakutia is the only region in the Far Yakutia is the only territorial entity of East Federal District with a positive the Russian Federation, which covers population dynamics. three time zones. The birth rate is 2 times higher than the death rate.

CLIMATE DISTINCTLY CONTINENTAL Almost the entire territory of Yakutia is located in the permanently frost soil zone. It has a long winter and a short summer. The temperature difference between the coldest month - January and the warmest - July is 70-75 degrees.

6 investyakutia.com 7 MEASURES OF STATE SUPPORT REGIONAL INVESTMENT PROJECTS

Tax preferences: Tax preferences for 5 years: • Profit tax • Profit tax 0% for the first 5 years 0% • Wealth tax 10% for the next 5 years • Land tax • Reduced rate on mineral extraction tax

Other preferences: • Reduced contributions to extra- budgetary funds of the Russian Federation TERRITORIES OF for 10 years ADVANCED SOCIAL • Provision of land plot and preferential AND ECONOMIC connection to the infrastructure • Simplified visa regime for foreign citizens DEVELOPMENT and permission for foreign labor without quotas ELECTRONIC • Issuance of building permits within 40 VISA FOR days • Free customs zone regime VISITING THE • Unscheduled inspections only after FAR EAST approval of the Ministry of Regional REGION Development of the Russian Federation

• Available for citizens of 18 countries • Quick receipt: average time - 20 minutes online • Issued for free • Valid for 30 days, allowed to stay in the region for 8 days

8 investyakutia.com 9 MEASURES OF STATE SUPPORT

Tax preferences for 5 years:

• Profit tax CONTENTS 0% • Wealth tax 01. TRANSPORT AND 04. TOURISM...... 25 LOGISTICS...... 13 Construction of a 3-star hotel complex for Upgrading and development of Russian 150 rooms in Yakutsk...... 26 capacities to create modern river fleet for inland waterways...... 14 Construction of the international brand- Other preferences: managed of a 3-star hotel complex for Reconstruction (renovation) of Yakutsk 88 rooms in Yakutsk...... 27 • Subsidized insurance premiums airport’s international terminal...... 15 • State infrastructure support Construction additional objects in tourist complex Orto Doydu...... 28 • Simplified procedure for obtaining a Construction of port terminal in Megino-Kangalassky district of the land plot Sakha Republic ...... 16 Reconstruction, expansion and upgrade • Subsidizing of interest rate for loans of technical equipment of sports and • Reduced rate on mineral extraction tax entertainment complex Tekhtur...... 29 • Conducting inspections only after Creation of a tourist and recreation cluster approval of the Ministry of Regional 02. MINING AND DIAMOND- Pillars in Batamay of Khangalassky Development of the Russian Federation, CUTTING INDUSTRY...... 17 district...... 30 and in shortened time Creating a jewelry and diamond-cutting cluster in ASEZ Yakutia (stage 2)...... 18 05. OIL AND GAS Development of Ruchey Tirekhtyakh alluvial INDUSTRY...... 31 tin deposit in the Sakha Republic...... 19 Construction of a medium-scale LNG plant in the Sakha Republic...... 32 Development of mining and processing complex at the Malo-Taryn deposit ARCTIC occurrence...... 20 ZONE OF THE RUSSIAN 03. AGRIBUSINESS...... 21 FEDERATION Fish processing...... 22

Meat processing...... 23

Wild herbs processing...... 24

10 TRANSPORT AND LOGISTICS

•UPGRADING AND DEVELOPMENT OF RUSSIAN CAPACITIES TO CREATE MODERN RIVER FLEET FOR INLAND WATERWAYS

•RECONSTRUCTION (RENOVATION) OF YAKUTSK AIRPORT’S INTERNATIONAL TERMINAL

•CONSTRUCTION OF PORT TERMINAL IN MEGINO- KANGALASSKY DISTRICT OF THE SAKHA REPUBLIC

* Official exchange rate of USD on 12.01.21 was used to calculate the amount, and 1 USD = 74.5 RUB

01investyakutia.com 13 UPGRADING AND DEVELOPMENT OF RUSSIAN CAPACITIES TO CREATE MODERN RIVER FLEET FOR RECONSTRUCTION (RENOVATION) OF YAKUTSK INLAND WATERWAYS AIRPORT’S INTERNATIONAL TERMINAL

Initiator Initiator Lena united (river) steamship company PJCS, Zhatai Shipyard JSC Yakutsk Airport JSC

Total cost Investments required Payback period Total cost Investments required Payback period 77.1 M USD 12 M USD 9. 3 years 19 M USD 18.2 M USD 13 years

NPV IRR Discount rate NPV IRR Discount rate 25 M USD 13 % - 3.9 M USD 7. 6 % 5.8 %

Resume Parameters Resume Parameters Creation of technologically advanced Annual productive capacity: Creating a modern Total cost of the project USD 19 M min, shipyard with the aim to resume constructing up to 10 river international terminal of including: shipbuilding to rescue transport vessels with ship-breaking Yakutsk Airport, equipped USD 8.1 M - construction and installation infrastructure of Lena river basin. This plant. Creating over 600 jobs. with high-tech engineering USD 3.4 M - equipment for quality and safe project is the key to ensuring uninterrupted infrastructure, ensuring the passenger service delivery of necessary shipment for the airport’s passengers’ and USD 6.4 M — equipment for aircraft and population of the North Yakutia support guests’ security and top- airfield service zone, implementation of investment class comfort. USD 0.286 M - equipment for customs projects, bases of the Russian Emergencies control systems. Ministry and the Russian Ministry of Defense in the vast territory of the North-East of .

Investor’s involvement level Investor’s involvement level •Lending a credit Debt financing •Involvement in the project on the principles of public-private partnership

Project stages Project stages

Engineering company State Program for Approval of the Construction and Purchase and Reaching is established the Development Russian State installation; Purchase Purchase and installation of break- established; Business of the Arctic is Expertise; Obtaining Project and installation of installation of equipment for even plan and financial endorsed; Designing the ASEZ resident Construction of Commissioning; Finding preparation; passenger service aircraft and airfield customs control point model are elaborated the object status the object Lead ship laying investors Design estimates equipment service equipment systems

2016 2017 2018 2019-2021 2021 2019 2019-2020 2020-1 qtr 2021 2021-2022 2021-2022 2029

14 TRANSPORT AND LOGISTICS investyakutia.com 15 CONSTRUCTION OF PORT TERMINAL IN MEGINO- KANGALASSKY DISTRICT OF THE SAKHA REPUBLIC

Initiator State supply distribution of Yakutia SC Total cost Investments required Payback period MINING AND 29.9 M USD 29.9 M USD 12.6 years

NPV IRR Discount rate DIAMOND-CUTTING 3.7 M USD 14 % - INDUSTRY

Resume Parameters Goal of the project is to The length of operating area of the berth meet the needs of the is 150 running meters, which ensures, in Sakha Republic citizens and accordance with the current rules for in organizing transshipment organizing loading-unloading operations of the cargo both in direct on water transport, mooring of all types of water and rail, and in mixed vessels operating in the Lena basin. The list rail-water, road-water of services provided will include loading- communication. unloading operations on the railway, water and road transport; logistics and related •CREATING A JEWELRY AND DIAMOND-CUTTING CLUSTER IN ASEZ YAKUTIA (STAGE 2) services. •DEVELOPMENT OF RUCHEY TIREKHTYAKH ALLUVIAL TIN DEPOSIT IN THE SAKHA REPUBLIC

Investor’s involvement level •DEVELOPMENT OF MINING AND PROCESSING COMPLEX AT •Lending a credit THE MALO-TARYN DEPOSIT OCCURRENCE •Involvement in the project on the principles of public-private partnership * Official exchange rate of USD on 12.01.21 was used to calculate the amount, and 1 USD = 74.5 RUB

Project stages

Construction of a quay wall; Building up the necessary engineering Design and State infrastructure; Construction a highway; Expertise of Building administrative and other Providing access to estimates buildings the railway

2020-2021 2021-2023 2023-2024 16 TRANSPORT AND LOGISTICS 02investyakutia.com 17 CREATING A JEWELRY AND DIAMOND-CUTTING DEVELOPMENT OF RUCHEY TIREKHTYAKH ALLUVIAL CLUSTER IN ASEZ YAKUTIA (STAGE 2) TIN DEPOSIT IN THE SAKHA REPUBLIC

Initiator Initiator SAYBM LLC, JSCB ALMAZERGIENBANK JSC Yanolovo JSC

Total cost Investments required Payback period Total cost Investments required Payback period 24.4 M USD 22 M USD 6 years 5.1 M USD 5.1 M USD 9 years

NPV IRR Discount rate NPV IRR Discount rate 6.6 M USD 32,4 % 25 % 1.8 M USD 15,9 % 14,8 %

Resume Parameters Resume Parameters The project aims to create The production capacity is 600 kg of The project of Yanolovo JSC Reaching designed capacity of 3000 tons integrated infrastructure for jewelry worth USD 94.8 M and 84 thousand aims at separate surface of tin in concentrate per year. enterprises in jewelry and carat of diamonds worth USD 373.6 M by mining at Ruchey Tirekhtyakh diamond-cutting industry 2021. Land plot is available in ASEZ Yakutia alluvial tin deposit in Ust- and ensure favorable (with an area of 3.3 hectare). Second stage Yana District of the Sakha conditions for small and – building with an area of over 4000 sq m, Republic (Yakutia). medium business. and exhibition complex.

Investor’s involvement level Investor’s involvement level • Direct financing • Direct investment • Preferential credit • Debt financing • Recruitment of residents

Project stages Project stages

Yanolovo JSC obtains a license and starts works Finding investors for to resume tin mining; stage ll Exploration project was Design estimates prepared Finding investors

2017 2020-2021 2015 2020-2021

18 MINING AND DIAMOND-CUTTING INDUSTRY investyakutia.com 19 DEVELOPMENT OF MINING AND PROCESSING COMPLEX AT THE MALO-TARYN DEPOSIT OCCURRENCE

Initiator Boguslavets LLC

Total cost Investments required Payback period 49.6 M USD 12.2 M USD 7 years

NPV IRR Discount rate 18.5 M USD 18 % - AGRIBUSINESS

Resume Parameters Goal of the project is The project involves the construction of a the construction and modern mining and processing complex subsequent expansion at the Malo-Taryn deposit within the Taryn of a modern mining and ore field in the Republic of Sakha (Yakutia) processing complex on the with balance reserves of 2,993.9 thousand Malo-Tarynskoye field in tons of ore, 12,539.4 kg of gold. the Oymyakonsky district of the Republic of Sakha (Yakutia) with creation •FISH PROCESSING of the necessary energy •MEAT PROCESSING infrastructure. •WILD HERBS PROCESSING

Investor’s involvement level * Official exchange rate of USD on 12.01.21 was used to • State backing calculate the amount, and 1 USD = 74.5 RUB • Obtaining preferences

Project stages

Design and State Expertise of project Design and State Extension of documentation of Expertise of Construction of mining and mining and processing estimates of aerial mining and processing Construction of processing complex circuit complex aerial circuit complex

2019-2020 2020 2020-2021 2021-2023 2023 20 MINING AND DIAMOND-CUTTING INDUSTRY 03investyakutia.com 21 FISH PROCESSING MEAT PROCESSING

Initiator Initiator Ministry of Agriculture of Sakha Republic (Financial Agro-Industrial Corporation Tuymaada Ministry of Agriculture of Sakha Republic (Financial Agro-Industrial Corporation Tuymaada SC) SC) Total cost Investments required Payback period Total cost Investments required Payback period 1.8 M USD 1.8 M USD 8,8 years 0.8 M USD 0.8 M USD 8,8 years

NPV IRR Discount rate NPV IRR Discount rate 0.6 M USD 28 % 10 % 0.6 M USD 28 % 10 %

Resume Parameters Resume Parameters Organization a fish 157 tons of frozen trash fish; Organization a meat 104.8 tons of semi-finished meat products; processing company on 209 tons of high quality frozen fish; processing company on 78.6 tons of snacks; the territory of the Republic 75 tons of trash fish snacks; the territory of the Republic 52.4 tons of venison and horse meat of Sakha (Yakutia) based 950 thousand cans of canned fish; of Sakha (Yakutia) based products; on local raw materials, 105 tons of semi-finished fish products; on local raw materials, 52.4 tons of premium semi-finished meat oriented at the first stage 6 tons of caviar products; oriented at the first stage products; to the regional and Russian Creation of 31 workplaces: to the regional and Russian 52.4 tons of meat offal; markets, and in the future Administrative staff:5 people; markets, and in the future Creation of 25 workplaces: to the market of the APR Production staff:26 people. to the market of the APR Administrative staff:5 people countries. countries. Production staff:20 people.

Investor’s involvement level Investor’s involvement level Direct investment Direct investment

Project stages Project stages

Finding premises, repair, Finding premises, repair, Finding potential hiring personnel, purchase Finding potential hiring personnel, purchase investors; and installation of investors; and installation of Negotiations on the equipment, purchase of Negotiations on the equipment, purchase of start of project raw materials and supplies Start of production start of project raw materials and supplies Start of production

up to 6 months up to 6 months from 3 years up to 6 months up to 6 months from 3 years

22 AGRIBUSINESS investyakutia.com 23 WILD HERBS PROCESSING

Initiator Ministry of Agriculture of Sakha Republic (Financial Agro-Industrial Corporation Tuymaada SC) Total cost Investments required Payback period 0.2 M USD 0.2 M USD 3,6 years

NPV IRR Discount rate 0.8 M USD 41 % 10 % TOURISM

Resume Parameters Organization a wild herbs 149.8 tons of dry herbal preparatio based processing company on on Ivan-tea; the territory of the Republic 70.5 tons of jam; of Sakha (Yakutia) based 150.3 tons of fruit drink; • CONSTRUCTION OF A 3-STAR HOTEL COMPLEX FOR on local raw materials, Creation of 11 workplaces: 150 ROOMS IN YAKUTSK oriented at the first stage Administrative staff:5 people to the regional and Russian Production staff: 6 people (2 of them are • CONSTRUCTION OF THE INTERNATIONAL BRAND- markets, and in the future seasonal workers). MANAGED OF A 3-STAR HOTEL COMPLEX FOR to the market of the APR 88 ROOMS IN YAKUTSK countries. • CONSTRUCTION ADDITIONAL OBJECTS IN TOURIST COMPLEX ORTO DOYDU

• RECONSTRUCTION, EXPANSION AND UPGRADE OF Investor’s involvement level TECHNICAL EQUIPMENT OF SPORTS AND ENTERTAINMENT Direct investment COMPLEX TEKHTUR

•CREATION OF A TOURIST AND RECREATION CLUSTER IN BATAMAY OF

* Official exchange rate of USD on 12.01.21 was used to Project stages calculate the amount, and 1 USD = 74.5 RUB

Finding premises, repair, Finding potential hiring personnel, purchase investors; and installation of Negotiations on the equipment, purchase of start of project raw materials and supplies Start of production

up to 6 months up to 6 months from 3 years 24 AGRIBUSINESS 04investyakutia.com 25 CONSTRUCTION OF THE INTERNATIONAL BRAND- CONSTRUCTION OF A 3-STAR HOTEL COMPLEX FOR MANAGED OF A 3-STAR HOTEL COMPLEX FOR 88 150 ROOMS IN YAKUTSK ROOMS IN YAKUTSK

Initiator Initiator Republican Investment Company JSC, Property Management Company Centre LLC AEB Capital LLC, JSCB ALMAZERGIENBANK JSC

Total cost Investments required Payback period Total cost Investments required Payback period 19.4 M USD 19.4 M USD 11.6 years 16.3 M USD 13.1 M USD 12 years

NPV IRR Discount rate NPV IRR Discount rate 5.2 M USD 15.5 % - 2.4 M USD 18 % -

Resume Parameters Resume Parameters Construction of a 3-star Hotel complex — 9-storey monolithic frame Creating the city’s and The site’s total area - 1,538 m2 hotel complex to meet building, region’s first quality hotel of It’s a street-view site in the city’s central the growing demand for Land area 5,743 m2, 4* category, managed by street comfortable rooms and Number of rooms — 150 the international brand. Total area of the project – 5,005 m2 quality services in Yakutsk. Number of rooms – 89

Investor’s involvement level Investor’s involvement level Debt financing Debt financing

Project stages Project stages

Business plan development; Finding investors; Design Boundary determination of estimates Start of construction Commissioning the site Start of construction Commissioning

2019 2021 2022 2019 2021 2023

26 TOURISM investyakutia.com 27 RECONSTRUCTION, EXPANSION AND UPGRADE CONSTRUCTION ADDITIONAL OBJECTS IN TOURIST OF TECHNICAL EQUIPMENT OF SPORTS AND COMPLEX ORTO DOYDU ENTERTAINMENT COMPLEX TEKHTUR

Initiator Initiator Arctic CJSC Sports and entertainment complex TEKHTUR LLC

Total cost Investments required Payback period Total cost Investments required Payback period 0.6 M USD 0.4 M USD 5.1 years 1.4 M USD 1.3 M USD 8.3 years

NPV IRR Discount rate NPV IRR Discount rate 90,738 USD 21.5 % - % 0.2 M USD 15.8 % -

Resume Parameters Resume Parameters The project involves The hotel complex will have an equipped The implementation of this project The project is supposed to be construction of a hotel congress hall for 200 people, two restaurants: will create the necessary sports located on the land state at complex with architecture on the ground floor (with capacity for 200 infrastructure for tourists in the the address: Republic of Sakha reflecting the national people) and a restaurant with capacity for Khangalassky district of the Republic (Yakutia), Khangalassky district, Yakut style inspired by 50 people with an outdoor terrace, spa of Sakha (Yakutia), will make it Pokrovsky tract 45 km. There Olonkho, with interior center, gym, sauna, billiards, swimming pool, possible to satisfy the existing are 3 near the territory - decoration in the Yakut indoor guarded parking space, children's demand for year-round tourism and Oktemtsy, Chapevo and Tekhtyur. national style using the room with staff. sports services, which will positively •Transport accessibility, from works of local masters affect the overall development Yakutsk to the complex 45 km; strategy tourism industry of the • The area has a variety of slopes. Republic. There are tracks with long lengths, as well as the abundance of gentle slopes attracting skiers of all ages Investor’s involvement level and levels of training. Debt financing

Investor’s involvement level Project satges Debt financing

Progect stages Construction of Construction of guest Substation and additional guest houses; Purchase of On-Site electricity grid houses, garage, Equipment equipment improvements upgrade sauna Planning time-frame Project planning Objects construction purchase

April-July 2021 May 2021 June 2021 August-October 2021 2021-2030 2021 2021 2021

28 TOURISM investyakutia.com 29 CREATION OF A TOURIST AND RECREATION CLUSTER LENA PILLARS IN BATAMAY OF KHANGALASSKY

Initiator Aaryma Tours LLC

Total cost Investments required Payback period 6.3 M USD 5.7 M USD 7. 6 years NPV IRR Discount rate OIL AND GAS 0.9 M USD 22.3 % - Resume Prameters INDUSTRY The implementation of this project The project is supposed to be will create the necessary tourist located on a land plot with a infrastructure in a designated area total area of 7.44 hectares on of outstanding natural beauty. The the left bank of the river Lena. creation of an ecological tourist Construction is planned: complex will allow satisfying the - a visitor center for 5 rooms, existing demand for year-round tourist 3 double rooms and 2 triple services, rationally use the existing rooms, as well as a cafe- potential of this territory, which in turn restaurant with 30 seats; will have a positive effect on the overall - VIP houses - for 2 double •CONSTRUCTION OF A MEDIUM-SCALE LNG PLANT IN THE development strategy of tourism rooms; SAKHA REPUBLIC industry of the republic, focused on the - 60 modular houses for 2-3 development of domestic and inbound people; * Official exchange rate of USD on 12.01.21 was used to tourism. - Sports and technical center calculate the amount, and 1 USD = 74.5 RUB for equipment rental; - Bath complex; - Warm garage for 18 cars. Investor’s involvement level

•Lending a credit •Involvement in the project on the principles of public-private partnership

Project stages On-site Reconstruction of On-site Construction Design and improvements; the visitor center, improvements; of Construction of State Expertise Construction of guest Construction of engineering Construction of project of additional additional objects of houses and objects of pier for water support engineering support documentation utility area transport objects objects

1-2 qrt 1-3 qrt 2 qrt 2-3 qrt 1-3 qrt 2-3 qrt 2021 2021 2021 2021 2022 2022 30 TOURISM 05investyakutia.com 31 CONSTRUCTION OF A MEDIUM-SCALE LNG PLANT IN NOTES THE SAKHA REPUBLIC

Initiator Liquefied Natural Gas LLC

Total cost Investments required Payback period 224.1 M USD 198.6 M USD 5.1 years

NPV IRR Discount rate 139.7 M USD 51.5 % 22.3 %

Resume Parameters Creating LNG production Under the project, it is planned to use processing plant with natural gas for the LNG production from production capacity the Pavlovsk-Maya main pipe. Technical 530,000 tons of LNG a year. conditions for gas supply in the amount of In the I stage with capacity 0.75 billion cubic meters were received from 90,000 tons of LNG, in II and Sakhatransneftegaz JSC per year. III – 180,000 and 260,000 tons respectively.

Investor's involvement level Direct investment

Project stages

Implementation of I Implementation of Implementation of the stage: production of II stage: production III stage: production of 90,000 tons of LNG of 180,000 tons of 260,000 tons of LNG per year LNG per year per year

2020-2021 2021-2022 2021-2022

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