Third Russian-Japanese Investment Forum Round Table Discussion: Investment in Russian Automotive Industry

Automotive Cluster of the Republic of

Minister of Industry and Trade of the Republic of Tatarstan Aleksandr A. Kogogin

4-6 September 2008 St. Petersburg WELCOME TO THE REPUBLIC OF TATARSTAN

Output in the Baltic sea

TATARSTAN Volga river

Moscow

Don river

The Volga-Don channel Synergetic effect from cluster-wise economic development of Tatarstan

Petrochemical cluster Automotive cluster

Nizhnekamsk Northeast of Tatarstan

Synergetic effect

Educational cluster of mechanical engineering 4 Structure of automotive cluster in the Republic of Tatarstan

Regional higher education establishments Suppliers from allied industries Level III Vocational education Network of establishments technoparks Level II

Financial Level I Suppliers of institutions Core of the cluster automotive OAO KIP MASTER components Research (OAO KamAZ, institutions OAO Severstal-Auto, SEZ Alabuga Local and republic’s and automotive Suppliers of authorities assembly plants) equipment Infrastructure

Insurance companies Centre for science & technology

Consulting companies Investment foundations

Service centres, dealers Professional and social organisations 5 Prospects of KAMAZ development for the period until 2010 in terms of value and units

‘000 US$ billion

„ Products of KamAZ sold, US$ billion. ‹ Manufactured trucks, ‘000 units 5 Interaction of OAO KamAZ with suppliers

Purchased 2010 components 55%

In-house made components 45%

2006

Purchased components 45%

In-house made components 55%

2003 Purchased components 36%

In-house made components 64% 8 List of basic priority projects of the Sollers Group

Project quantities in Sollers 2012 Sollers- Sollers-

75 000

7 45 000 50 000 35 000 45 000 7 Output of Sollers products in Tatarstan

‘000 US$ billion

forecast „ Products of Sollers sold, US$ billion ‹ Manufactured passenger cars, ‘000 units 8 KIP Master provides interaction of small, medium-sized and large businesses

Service package of KIP Master Leasing Lease of Coordination of KIP transactions workplace & Master & KAMAZ offices Digital participants’ actions Bank services communicatio n & Internet Full range of Health KIP Master & it’s accountant's services participants services

Juridical Catering 130 leaseholder enterprises service Annual turnover of over US$ 130 million Clearing Parking Customhouse broker service Courier Security services

Temporary Organizing railroad Loading/ unloading by Bonded storage freight services lifting machines & 9warehouse warehouse packing of cargoes Large republic’s manufacturers of automotive components

OOO CNT OAO Sollers NUR

ZAO KVART OAO PO YelAZ» ZELENODOLSK OAO KIP Master OOO NPC YELABUGA ALVAK N. CHELNY

OAO Tatelektromash FGUP PO Plant OAO n.a. Sergo Vakuummash technopark OAO Nizhnekamskshina

CHISTOPOL ZAINSK OAO Alnas

PF OOO LENINOGORSK Siemens FDO Automotive OOO SHARL

12 Tax Privileges for Participants of Special Economic Zone

Tax Rate 1. Profit Tax: 24.0% For SEZ residents: 20.0% 2. Property Tax: 2.2%

For SEZ residents 0% (for 10 years) 3. Land Tax: 1.5% For SEZ residents: 0%

4. Transport Tax: Rates depend on the vehicle type

For SEZ residents: 0%

6 THANK YOU

MinistryMinistry ofof IndustryIndustry andand TTraderade ofof thethe RepublicRepublic ofof TatarstanTatarstan

Address: 4 Ostrovsky St., Kazan, 420111

TEL.: (7-843) 299-10-07, 299-11-09 FAX: (7-843) 292-16-45

E-mail: [email protected] http://mpt.tatar.ru 12