Government of the Tyumen region

Department of Investment Policy and State Support of Entrepreneurship of the Tyumen region

Institute of entrepreneurship of the Ural Federal District

Reference book for investors How to invest in the Tyumen region

Tyumen © Department of Investment Policy and State Support of Entrepreneurship of the Tyumen region, 2007 2007 Message of the Governor of the Tyumen region, Mr V.V. Yakushev

Dear Sirs,

On behalf of one of the largest Russian regions I am truly pleased to welcome you and offer to your attention the investment potential of the Tyumen region and the most perspective investment projects of our region. The Tyumen region belongs to the number of the most successfully developing regions of Russia and disposes herewith of considerable social-economic and scientific research potential… …The industrial production index was one of the highest among the regions of the Ural Federal District and exceeded significantly the allover Russian rate … …The region is situated advantageously in strategic point of view and a connecting link between the eastern and the western territories of the country, the oil and gas North and industrial Ural. The Transsiberian main line and highways of federal value pass through its territory. There is an international airport and large Tyumen and Tobolsk river ports. Supply of resources, required for the development of oil and gas complex in the north of the region, is carried out, mostly, through the south of the region … … Lately substantial growth of goods and services’ production has been achieved in the majority of branches of the regional economics. In 2005, in comparison with the year 2000, the gross regional product (in correlated prices) increased of 45%, the industrial production volume - by 1,5 times, whereas fixed capital stock investments increased by 2,6 times, and agricultural gross output – by 1,3 times. Attraction of investments to the regional economics represents one of the regional authorities’ major activities … …In the region foundations of legal, infrastructure and informational base to attract investments were created; a guarantee mechanism was worked out to protect investors’ rights. The regional law “About the state support and investment activity in the Tyumen region” was adopted … …The Government is ready to assist in granting land lots and other real estate items, which are in the ownership of the region. I would like to stress the idea, that in this situation Russian and foreign investors are in equal conditions. Development of processing industries is considered a priority in the regional economic policy. Nowadays we pay much attention to the development of tourist business using both historical- cultural memorials and a variety of natural-climatic conditions of the territory. The Government of the Tyumen region is open to cooperation with prospective investors, and I am sure, that this will be profitable to our partners and us; stimulate the market filling with qualitative commodities and services and the creation of new working vacancies. I hope, that the presented information will allow you to make a good choice and estimate at true worth the prospects of mutually beneficial cooperation. In the Tyumen region you may always reckon on support and understanding.

Governor of the Tyumen region, Mr V.V. Yakushev 1. General information on the Tyumen region...... 8 «Procedure for allocation of the state order in the Tyumen region») ...... 84 2. regional economics, social activities 13. Procedure for allocation of the state order by conducting an auction...... 90 GRP...... 14 14. Quotation inquiry ...... 91 Industry...... 14 15. Allocation of the order with the sole supplier ...... 92 Construction...... 17 APPENDIX №2. Investment legislation Agriculture...... 18 Law of the Tyumen region dated July 8, 2003 N 159 «About the state support of investment activity Communications...... 19 in the Tyumen region». It was adopted by the regional Duma on the 24th of June, 2003 (in the edition Budgetary sphere, finances...... 10 of the Laws of the Tyumen region dated December 08, 2003 N 175, December 10, 2004 N 289, Commercial immovable property...... 21 May 04, 2005 N 373)...... 93 External economic activity...... 22 appendix №3. Tariffs in the Tyumen region Small entrepreneurship...... 22 1. Resolution of the Regional Energy Commission of the Tyumen region, the Khanty-Mansijsk and Consumer market...... 24 Yamalo-Nenetsk autonomous districts, dated October 25, 2006 N 140 “About establishment of tariffs Tourism and recreation...... 26 for electric energy, supplied by providers of last resort, power supplying organizations and retail Healthcare...... 28 suppliers to consumers of the Tyumen region, the Khanty-Mansijsk autonomous district – Ugra Education and science...... 28 and the Yamalo-Nenetsk autonomous district in the zone of centralized energy supply” Culture...... 28 and Appendix to the resolution of REC “Electric power tariffs for consumers of the Tyumen region, Physical culture and sports...... 28 the Khanty-Mansijsk autonomous district – Ugra and the Yamalo-Nenetsk autonomous district...... 98 Population social security ...... 28 2. Regulation of the Government of the Tyumen region, dated December 20, 2006 N 1400-rp “About Security and public order ...... 28 making revisions to the decree dated May 24, 2006 N 504-RP” and Appendix to the regulation 3. investment climate in the Tyumen region of the Government of the Tyumen region “Limit pay tariffs for water supply and water disposal Large investors and projects...... 30 services, provided by organizations in the territory of the Tyumen region ...... 102 4. investment infrastructure. APPENDIX №4 procedures for implementation of investment projects Infrastructure of governmental authorities and local self-government agencies, participating forms of the state support of investment activity...... 34 in the support of investment activity and entrepreneurship in the territory of the Tyumen region..... 106 5. investment projects 1. Oil and gas complex...... 40 2. Electric power industry...... 41 3. Mechanical engineering...... 41 4. Wood industry...... 41 5. Trade and service...... 42 6. Agriculture and food industry...... 42 7. Construction and building material industry ...... 42 8. Transport and logistics...... 43 9. Tourism: participation in infrastructure development projects ...... 44 10. Textile industry ...... 44 APPENDICES Appendix № 1. Schemes 1. The procedure scheme of the investment project, applying for the state support (Description of the document procedure scheme when making a decision by the Investment council about utility of granting the state support)...... 48 2. Procedure for granting tax privileges in the Tyumen region ...... 50 3. Scheme of implementation of the investment project of the Tyumen region, which is granted the state support (Description of the scheme of implementation of the Tyumen region investment project, which is granted the state support) ...... 53 4. Procedure for accreditation of representations and subsidiaries in the territory of the Russian Federation (Description of the scheme « Procedure for accreditation of representations and subsidiaries in the territory of the Russian Federation»)...... 55 5. The state registration of a juridical person...... 57 6. Procedure for obtaining a building permit in the Tyumen region (Description of the scheme «Procedure for obtaining a building permit in the Tyumen region»), including as follows: Construction of capital house-building projects...... 59 General procedure for obtaining a building permit ...... 61 General procedure for obtaining capital construction project building permits as regards other land lots...... 64 7. Scheme «Construction of individual housing building projects»...... 66 8. Procedure for obtaining a project commissioning permit in the Tyumen region (Description of the scheme «Procedure for obtaining a project commissioning permit in the Tyumen region»)...... 68 9. Conversion of lands from one category to another...... 71 10. Procedure for conversion of dwelling premises into non-living premises (Description of the scheme «Procedure for conversion of dwelling premises into non-living premises») ...... 75 11. Procedure for the state registration of rights to immovable property (the ownership right, lease) (Description of the scheme «Procedure for the state registration of rights to immovable property (the ownership right, lease)») ...... 78 12. Procedure for allocation of the state order in the Tyumen region (Description of the scheme How to invest How to invest in the Tyumen region in the Tyumen region

By the end of the year 2006 the population of the region has reached 1317 thousand people, with the annual increase of 3 thousand people (0,2%).

The number of economically active population, according to official statistic data, 1 General information by the beginning of December 2006, was 610,8 thousand people (46% of the total population), with the annual increase of 4%. 556 thousand people (0,9% more, than on the Tyumen region by the early December 2005) were occupied in economics, the rest, according to the methodology of International Labour organization, were actively searching for a job (54,8 thousand people, or 9% of economically active population). By the end of the year 2006 The Tyumen region (the south) is situated in the territory of the West Siberian plain. unemployment rate decreased from 2,34% to 1,95% of economically active population. In the north the Tyumen region (without autonomous districts) neighbors the Khanty- Mansijsk Autonomous District, in the west it borders on the Sverdlovskaya region, in the south it has borderlines with the Kourganskaya region, the Republic of Kazakhstan, the Omskaya region, and in the east it neighbors the Tomskaya region. The Tyumen region with the city of Tyumen as the capital was founded on August 14, 1944. It included the Khanty-Mansijsk and Yamalo-Nenetsk Autonomous Districts. By sizes and outlines the region has almost coincided with the Tobolskaya Province formed in 1796. The region underwent a number of administrative and territorial reorganizations during the XX- th century. In 1919 the Tobolskaya province was renamed into Tyumenskaya, and in 1923 it became the part of the Uralskaya region with the center in Sverdlovsk. In 1930 in the Northern Ob area two national districts were formed: Ostyak-Vogulsk and Yamalo-Nenetsk. In 1934 the territory of the region was included to the Ob-Irtyshskaya region with the center in Omsk. The South of the Tyumen region is located in a forest steppe zone. Winter is rather severe here, summer is warm though short, and spring and autumn are not long either. Sharp temperature variations during a year, month and a day are typical. The Northern- Eastern part is characteristic for its low warm frequency and excessive humidity. For the northern part mainly lower warm frequency and optimal humidity are typical. The southern part of the territory represents a zone of sufficient warm frequency; optimal humidity in a damp year and it is insufficiently warm secured in an average and dry year.

Geological oil resources, put to a state balance, exceeded 1 milliard tons in 2006. Largest in the Russian Federation and all over the world peat resources are concentrated in the Tyumen region, there are fields of quartz sands, brick and keramzit clays, sapropels and lime stones. Fields of calc-tuff, chalky clay, manganese units and mineral paints are discovered. The region is rich in fresh and mineral water reserves, iodide–bromine deposits were discovered and the largest of them are Cherkashinskoye and Tobolskoye fields (iodide water deposits make up more than 60% of registered reserves of Russia). By the beginning of the year 2006 the territory has numbered 5 cities, 22 districts, 5 urban villages and 1269 rural settlements. The administrative center of the region - the city of Tyumen – was founded in 1586. The population numbers nearly 570 thousand inhabitants. The distance from Tyumen to Moscow makes up 2144 km. The city of Tobolsk was founded in 1587. It is situated in 254 km to the north-east of Tyumen. There are approximately 114 thousand people living here. The town of Ishim was formed in 1782 at the location of Korkina settlement, founded in 1670. The number of inhabitants is nearly 67 thousand people. The towns nearest to Tyumen are Yalutorovsk (located in 74 km to the south-east of Tyumen, the population exceeds 38 thousand people) and Zavodoukovsk (the population is over 25 thousand people).

  Tyumen region Tyumen

Zavodoukovsk

FGUO «West Siberian aerogeodezic organization» Ruscartography 2007 Tobolsk Yalutorovsk

Ishim

FGUO «West Siberian aerogeodezic organization» Ruscartography 2007 How to invest How to invest in the Tyumen region in the Tyumen region

The volume of shipped goods, executed work and services in the sphere of mineral recovery 2 Regional economics, amounted to 7,8 milliard roubles (127,6% as relative to the year 2005) in 2006, in processing productions – 47,3 milliard roubles (133,1%), in the sphere of production and distribution of electrical energy, gas and water – 16,3 milliard roubles (129,4%). social activities In the south of the Tyumen region, according to the statistical data, for the year 2006, 1,46 GRP million tons of oil have been produced, nearly 1,8 million tons of liquefied hydrocarbon gases The Gross Regional Product output (GRP) of the Tyumen region for the year 2006, according have been generated, 11,2 milliard kWt /hour of electrical power and 15,8 million Gcal of heat to a preliminary estimation, has made up 292 milliard roubles. In comparison with the year 2005 energy. it increased of 10% and this exceeds the GRP growth rate all over Russia in total. The electrical power engineering base of the south of the Tyumen region comprises of three In 2007, the Gross Regional Product is forecast to increase over 6,8 - 8,6% in correlated power stations of OJSC «Tyumen generating company-10»: Tyumen TPP-1, Tyumen TPP-2 and prices if compared to the year 2006 and will make up 337,3 – 344,6 milliard roubles in current Tobolsk TPP, which are included into the unified regional electric power system. The total rated prices. The service share will keep growing in the gross regional product production composition. capacity of the stations adds to 1679 MWt of electric energy. Existing generating capacities Priority rates are expected for the development of communications, transport, commerce and allow for full provision of current consumer loads. public nutrition. As preventive measures against power shortfall the Government of the Tyumen region, In 2009 the increase rate of the gross regional product is likely to add to 21,2 - 28,2% OJSC Russian Joint Stock Company «Unified Electric Power System of Russia», OJSC «TGK-10» (depending on the way of economics development) if compared to the year 2006. elaborated a range of undertakings to develop both generating capacities and electronetwork The GRP rate per capita in the Tyumen region is steadily higher than an average Russian sector. In particular, there is a provision for construction of the second block of a combined level. In 2005 it amounted for 185,5 thousand roubles, whereas an average rate in Russia is cycle gas plant 190/220 at Tyumen TPP-1, reconstruction of the equipment of Tyumen TPP-2 120,6 thousand roubles. It is expected that in 2008 the GRP volume per capita would be 1,5 and of Tobolsk TPP, construction and reconstruction of 12 substations rated at 500, 220 and times increased relative to the year 2005. 110 kV with feed lines. All in all up to the year 2010 increase of existing generating capacities is scheduled due to modernization of the equipment over 415 MWt. Jointly with Interteckhelectro- Industry Novaya Generatzia Ltd. a decision was adopted to construct TPP-3 in Tyumen with the rated power capacity of 325 MWt and 440 Gcal per hour of heat energy. For realization of the project Dynamic development of economics in the Tyumen region is provided by the growth of there is an intention to attract private investments. A construction site is chosen, and design and industrial production. The physical production output index for the year 2006, according to exploration work is being implemented. the information of state statistics authorities, has amounted for 111,8% in the total by the year Lately machine engineering of the Tyumen region has been demonstrating stable 2005, namely in mineral recovery – 102,4%, in processing industries – 112,8%, in production development. Thus, in 2006 the oil and gas processing equipment output (in actual prices) in and distribution of electric power, gas and water – 112,4%. the south of the region, according to the data of Tyumen statistics department, made up 422,4 Industrial production indices’ dynamics by economic activities million roubles (178% relative to the year 2005), the output of oilfield and drilling facilities and spare parts therewith – nearly 3,3 milliard roubles (135,7%); of medical instrumentation and spare parts therewith – 984,2 million roubles (122,2%); of instruments, automation equipment and spare parts therewith – 290,1 million roubles (102,7%). Moreover, 1,7 million items of accumulators and storage batteries are manufactured (107,8% relative to the year 2005). In the near future machine building and equipment engineering will make one of the key directions of industrial growth. High growth rates will be achieved mainly due to the fact that oil related service enterprises will set up new industries of their own in the territory of the region as well as allocate orders for production of equipment and constituents at local enterprises. It is supposed that the south of the Tyumen region will become a major base for arrangement and repair of purpose-built equipment designated for fuel and energy sector of the autonomous districts. Taking into consideration that the Tyumen region has considerable timber resources, forestry and wood industry is getting one of key factors for economic development of the region. In 2006, according to the statistics, enterprises of the south of the Tyumen region produced 122,2 thousand cubic meters of industrial wood, 49,5 thousand cubic meters of plywood and approximately 90 thousand conditional cubic meters of particle boards. Furniture manufacturing (without taking into account built-in furniture) in actual prices, without VAT and excise included, amounted for nearly 1,4 milliard roubles. By the order of the Government of the Tyumen region the Jaakko Poyry Forest Industry Consulting Company evolved a Strategy and a plan of wood industry development in the Tyumen region. An evaluation of strategic options of the regional wood industry development is completed, based on the analysis of the market, wood supplies, technologies, investment expenses and profitability.

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in conversion to milk (110,7%), 2,3 thousand tons of tallow oil (104,7%) and over 1 thousand tons of fat cheese (101,9%). 72,7 thousand tons of flour (126,5%), 71,6 thousand tons of bread and baked goods (95%), 154 tons of macaroni products (112,4%) were produced. Output of industrial food fish products, including tinned food, made up 3,8 thousand tons; meat tinned food – 531 thousand standard cans (t.s.c.), milk conserves – 50415 t.s.c. About 14 thousand tons of confectionery products (107,8%), 11,7 thousand tons of meal (multiple growth as relative to the year 2005) were produced. In 2007 a 6-10% surplus of production volumes, if compared to the year 2006, by companies, manufacturing food products, is forecast. Rated capacities of the branch enterprises allow for manufacturing a wide range of major food goods, including annual production of 270 thousand tons of bread and baked goods, 31 thousand tons of confectionery products, 8,5 thousand tons of macaroni products, 75 thousand tons of meat, 36 thousand tons of sausage products, 230 thousand tons of whole milk products, 23 thousand tons each of tallow oil and dry milk products, 73 million milk conserve standard cans, 360 thousand tons of flour and over 50 thousand tons of meal. By the year 2010 it is scheduled to 1,5 times increase food industry product output. One of the consultant conclusions is that despite of positive tendencies, outlined in In order to do that, investments at the amount of no less than 1,5 milliard roubles should be the operation of timber complex in the south of the region, the industry does not use all its forwarded to the industry in 2007-2010. opportunities. Wood processing enterprises have considerable development reserves; the Advanced alcohol industry companies are OJSC «Benat» and Ishimskiy wine and vodka capacities are 50-55% loaded; however lack in raw materials and lag in development of timber distillery Ltd., the share of which accounts for 90% of total volumes of products, produced in capacities keep having a restraining influence on company activities. the industry. Both enterprises implement investment projects. Thus, by the middle of the year Within the strategy framework investment projects are offered to construct factories of DSP 2008 it is planned to complete construction of a new Benat factory; its industrial capacity will (particle boards), MDF (medium density fiberboard), plywood and coniferous saw-timbers make 950 thousand decalitres of vodka, 150 thousand decalitres of distilled beverages and manufacturing plants. 100 thousand decalitres of wine drinks and juices. Ishimskiy wine and vodka distillery (the main Textile industry enterprises in 2006 produced 1,6 thousand tons of woolen yam (101,4% shareholder is Distillery «Osha») intends to purchase and commission Italian automatic filling relative to the year 2005), more than 3 million square meters of pre-fabricated woolens (105%), line at the capacity of 6 thousand bottles per hour. 96 thousand pairs of shoes (except for rubber shoes; 130,8% relative to the year 2005). The total production volume of the branch enterprises, according to the data of the regional industry Construction and forestry department, added to 823 million roubles. The branch share in the Gross Regional In the Tyumen region a powerful construction complex was created; indicators of its activity Product (GRP) does not exceed 0,8%, and in this case the textile industry accounts for 3% of are dynamically growing. In the structure of the regional economics the building complex takes the total number of workers. the forth position after transports, commerce and industry. In 2006 the volume of work, executed The consulting company «Reddle and partners» (Germany) evolved an investment strategy by own forces in the type of activity «construction», amounted for 54,2 milliard roubles, and the of the regional textile industry development. Nearly 20 branch enterprises were investigated; increase was 13,2% if compared to the year 2005. Housing construction is being carried out their requirements to attract investment resources for fixed-capital stock renewal and equipment rapidly. modernization were taken into consideration. The regional Government has been conducting For a year, organizations of all forms of proprietorship and individual building owners have negotiations with crediting organizations, which might credit enterprises with the proviso that commissioned 690,3 thousand square meters of housing, which is 24% higher in comparison they are granted state support. Moreover, textile industry small businesses may be granted low- with the level of the year 2005. 39% out of the total square is built by population at its own cost percentage special-purpose loans. and by crediting (in 2005 – 34%). The individual lodging commissioning output increased of Lately there has been a tendency for the growth of constructional material production 40,5% relative to the year 2005 and made up 268 thousand square meters. volumes. For the year 2006 the regional south enterprises have produced 196,4 million pieces Rapid development of housing construction is promoted by the activity of the Government of standard bricks (111,5% relative to the year 2005). Production of structures and structural of the Tyumen region, including the priority national project «Economic and comfortable precast concrete amounted for 571,6 thousand cubic meters (111,9% relative to the year dwelling for citizens of Russia». The implementation of this project in the territory of the 2005). region is carried out in accordance with the regional branch program, agreements, concluded Nevertheless, for a while, Tyumen construction industry enterprises cannot satisfy fully the between the Ministry of regional development of the Russian Federation and the Government demands of rapidly growing construction industry. There is a strong lack of walling materials, of the Tyumen region and between the regional Government and all municipal formations. A mainly, bricks in the region. Therefore, manufacturer support, stimulation of the growth of legislation base was created, adopted within the framework of realization of the Town planning production volumes, attraction of investors to the sphere of constructional material production Code of the Russian Federation, of the policy of state support for providing the Tyumen region is one of the regional authorities’ prior activities. inhabitants with dwelling. The regional purpose-oriented program «Major development Food industry of the Tyumen region represents one of strategic branches of the regional directions of the town planning policy and housing building for the years 2006-2008» is in economics. In 2006, according to the data of statistics bodies, enterprises of the region operation, the implementation of which must lead to the assurance and transparency of decision produced 43,5 thousand tons of meat, including by-products (108,4% relative to the year 2005), making by public authorities of all levels when performing a town planning activity; reduction 19,9 thousand tons of sausage products (109,1%), 160,5 thousand tons of whole milk products

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up to 1,5 months of the original approvals issue dates when drawing up titles for land lots and The regional purpose-oriented program «Major directions of agriculture development» construction of real estate projects; decrease of demand in populated territories, in resource operates, as well as a branch program within the framework of implementation of national and power consumption, utilities and transport lines. Besides, the program is designated to project «Development of agriculture». For execution of operations within the framework of enhance investment and business activity at the real estate market, in the sphere of production national project «Development of farming sector» in 2006 2,4 milliard roubles were appropriated and building products sales; investment attraction of territories of cities and settlements. The from the regional budget, and 26,1 million roubles from the federal budget (for credit and program implementation is expected to result in taxable base increase, growth of population loan interest rate subsidies). 15 dairy units were constructed, where 5 thousand cattle rooms dwelling security, social tense lowering; improvement of settlement architectural image. The were commissioned. 3,5 thousand cattle rooms were reconstructed for new milk engineering expected results of the program include as follows: creation of organizational and financial equipment to be erected. In pig-breeding facilities 15 thousand head stockbreeding premises mechanism, stimulating housing building development and providing citizens with economic were reconstructed. 7,9 thousand heads of high- production milk breed pedigree cattle were dwelling; ensuring stable and efficient operation of housing mortgage crediting system; purchased. 26 items of forage conservation facilities and blending equipment were purchased. quality improvement of transport services for population, enhancing carriage security, There is an intention in 2007 to enhance cow milk producing ability up to 4400 kg in stock- decreasing operational costs of transport companies, transport services availability; paved breeding; to get a cattle daily average gain of 530 grams, pigs - 450 grams. roads growth. The following actions are planned: construction of 5 modern dairy units; commissioning of Significant budgetary funds are deployed to stimulate housing building process and 8 passing stock-breeding projects; a pig-breeding complex with 48 thousand heads capacity attract new investors to the market. These funds are spent, firstly, for implementation of construction; building and commissioning of International training and production dairy stock- large infrastructure projects, for construction of dwelling buildings for preferential categories breeding center; construction of 10 stock-breeding small farms designated for citizens’ of citizens, social and cultural sites, for building and reconstruction of highways, and for personal subsidiary plots; purchasing 10 thousand heads of high-production pedigree cattle, gasification. At the cost of the regional budget funds, in particular, a sports building of the including a foreign breeding cattle. Tyumen State Architectural and Construction University, a 100 bed medical building of the In the sphere of plant cultivation in 2007 the following goals are determined: to get the white regional oncology dispensary, a motherhood and childhood security center and a museum straw crops’ yield per unit as of 24-25 hundredweight per hectare; to purchase more than 300 complex are built in Tyumen. More than that, the reconstruction of the Tyumen railway station pieces of highly productive agricultural machinery; to perform modernization of drying and and technical modernization operations of the Tyumen airport «Rosshino» are also financed by sorting systems in 8 specialized seed farms; to commission a permanent grass seed processing the regional budget. complex with 2 thousand tons per year output. More than that it is planned to improve seed Advanced engineering preparation of dwelling building lands has been carrying out intensively growing system; to execute seed-stock swap operations at the capacity of no less than 40 together with investors in the region; before the year 2010 it is scheduled to commission 1,2 thousand tons; to undertake plant protection actions not lower than 70% of white straw crops million square meters. The total amount of funds, deployed in 2006 within the framework of areas; to use resource-saving arable farming for 68% of areas, occupied with white straw implementation of the priority national project «Economic and comfortable dwelling for citizens crops. of Russia» to prepare building site engineering infrastructure in the Tyumen region, is more than1 milliard roubles, which exceeds the total financing volume for the last 2 years. This investment Communications capacity, starting from the year 2008, will allow for construction of more than 1 million square A range of communications services, provided in 2006, amounted for 6,9 milliard roubles, meters of lodging and as a result it will be possible to achieve dwelling availability indices up to and the increase relative to the year 2005 was 24%. 23-24 square meters per each inhabitant of the region. Telecommunications market of the Tyumen region (without autonomous districts) is In 26 municipal formations of the south of the Tyumen region 120 sites are designated evaluated as dynamically developing and competitive. According to the opinion of the regional for construction. The town planning documentation has been already prepared for them, and transmission and telecommunications administration, there is an overall positive tendency in network routing has begun. development of communications enterprises and transition of usage volumes from traditional communications services to new types of services, namely cellular transmission and multiple Agriculture communications network. Step-by-step a «digitalization» of telecommunications infrastructure Agricultural production in the region is provided by agricultural companies, farming – communications networks in cities and rural settlements – is performed; outdated equipment enterprises and personal subsidiary plots of the population. There are 1773 farming enterprises is dismounted and new digital facilities are installed; reconstruction of old linear transmission registered in the region having the total land area of 215,0 thousand hectares, or on the average structures and erection of new telecommunications networks on base of fiber-optic 123,3 hectares per one farming enterprise, the product manufacturing share in the total volume communication link lines continues. of agricultural production of the region amounts for 3,1 percent. There are 171,9 thousand personal subsidiary plots of the population; their share in the production output makes up 54,1 Budgetary sphere, finances percent. Organizational grounds of budgetary system of the Tyumen region comply with the federal Agricultural companies produce 85% of the total production volume of grain, 54% of meat, legislation requirements. The budget of a subject of the Russian Federation and local budgets 42% of milk and 94% of eggs. In agricultural gross product structure crop sector products take are executed on a treasury basis. Despite of a fiscal capacity high level (1,3 times higher than 52% and stockbreeding production occupies 48%. an average Russian level), over 50% of budget revenues are ensured with taxes, generated by According to official statistics, in the Tyumen region the agricultural production capacity for oil prices (mineral recovery tax, oil company profit tax), characteristic for high infirmity degree. the year 2006 in households of all categories is estimated in 24,7 milliard roubles, or 104,4% Therefore, one of the regional authority tasks is to form a profitable budget base, resistant to relative to the volume of the previous year. alterations in world oil price market situation.

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Budget expenses to implement regional purpose-oriented programs (RPP) grow. Thus, in for major parameter steadiness, customer database growth and enlargement of a range of 2006 specific weight of RPP implementation expenses in the total amount of the regional budget offered services. The market gradually passes from dealer operations to broker services, trust expenses made up 92%, over 30 RPP, mainly social programs, were executed. management and share investment assets (SIA). In Tyumen authorized representatives of over Jointly with the Khanty-Mansijsk and Yamalo-Nenetsk Autonomous Districts the regional 30 managing companies sell shares of more than 80 SIA. purpose-oriented program «Cooperation» is implemented. Significant part of the regional budgetary funds is designated for actions within this program, which presuppose improvement of Commercial immovable property organization and development of education and healthcare material base, housing construction, Commercial real estate segment is mainly concentrated in Tyumen. Thus, the trade development of farming sector, roads and other infrastructure projects. immovable property rent market, according to the opinion of AC «Expert-Ural», represents As a rule, during a year the regional budget is corrected. In February 2007, in particular, mainly the market of premises lease, and not of buildings. The key factor for price level is the initially accepted revenues of the regional budget were increased over 0,7 milliard roubles (at location of a site relative to people flows. the cost of federal budget funds), up to 79,5 milliard roubles; expenses – over 10,7 milliard Large companies prefer to build offices independently. The major bulk of erected structures roubles, up to 90,7 milliard roubles. The expenses were increased mainly due to the amount are dwelling buildings with office and trading premises on ground floors. Facing an obvious of the Cooperation program action funds, non-used in 2006. Besides, supplementary amount shortfall situation an average cost of offices in Tyumen is however lower than in neighboring of expenses is designated for implementation of the priority national project «Economic and Ekaterinburg, Perm and Chelyabinsk. comfortable dwelling for citizens of Russia», for salary increase to a number of categories Nevertheless, an average office-renting rate in the capital of the Tyumen region is one of the of budgetary sphere employees, for construction and modernization of roads and other highest in the region. undertakings. For the year 2006 the commercial immovable property purchase-sale price in Tyumen, By amount of budgetary revenues and expenses per one citizen the Tyumen region takes according to estimations of the Lex consulting group, has increased approximately over one the second position among six subjects of the Russian Federation, which are included in the third. Experts point out that the main reason for growth is increase of demand. An offer average Ural federal district. According to official statistics, by the results of 11 months of the year 2006, price in the office immovable property purchase-sale market by the end of the year 2006 has revenues of the consolidated budget of the Tyumen region (without autonomous districts) added to 51,5 thousand roubles per square meter as a whole in the city; the maximal price have made up 146 milliard roubles, expenses – 112 milliard roubles. 111 thousand roubles of — 100 thousand roubles per square meter. A trading immovable property square meter average revenues and 85,2 thousand roubles of expenses accounted for one citizen. cost amounted for 54 thousand roubles, the maximal price was 140 thousand roubles. By the beginning of the year 2007 a banking sector of the Tyumen region (including Commercial immovable property lease has turned 15-20% more expensive for the year. An autonomous didtricts), according to the data of the Regional Main Administration of Central offer average price in the office immovable property lease market by the end of the year 2006 has Bank, has been represented by 23 crediting organizations. Tyumen banks had 79 branches in added to 650 roubles per square meter as a whole in the city, the maximal price - 3000 roubles per the region and 25 – outside the region. In the territory of the region 50 branches of crediting square meter. In the trading immovable property market a lease average price has made up 950 organizations were operating, the head-offices of which are located in the territories of other roubles per square meter, and the maximal price was 3000 roubles per square meter. regions, as well as Western Siberian bank of Savings Bank of Russia with 20 divisions in the In the beginning of the year 2007 the trading areas security in Tyumen, according to the territory of the region and 12 divisions in the territory of the Omsk region. Dynamics of major opinion of the city administration, amounted for 746 square meters for 1000 citizens, which is parameters, characterizing the banking sector condition, testifies that crediting organization a little bit lower than in Moscow (800 square meters for 1000 citizens). 115 new trade projects activity was enlarged, total assets were intensified, and crediting capacity was increased. have been opened in the city for the year 2006. Sales volumes turn to trading centers, trade The structure of the insurance market of the Tyumen region is practically similar to the networks develop. New large trading centers and trading and entertainment complexes are Russian market structure as a whole. In the beginning of the year 2006 in the south of the region being constructed. Lately the following projects have been constructed: METRO trading center 9 regional insurance companies and 33 subsidiaries of companies from other regions, mainly (the company METRO Cash & Carry GmbH), trading and entertainment centers «Premier» from Moscow, operated. Nowadays the number of insurance companies in the region cuts (including the Megamart hypermarket), «Goodwin» (with the hypermarket «Perekrestok»), the down, which is explained by the process of insurance business consolidation. Thus, in 2006 Lenta network hypermarket, the trading center «Zeleny bereg» (including the Mosmart network Western Siberian finance and insurance group was registered, which intends to join some more hypermarket), and household appliances supermarkets «Technoshock», «М.Video», «Current regional insurers in the future. line». Meanwhile, the non-regional insurer share grows, which is indicative of the regional In 2007 in Tyumen nearly 10 commercial immovable property projects are planned to be insurance market attraction. Foreign insurance companies come to the region too. In particular, commissioned – trading and entertainment centers, hotels, office buildings. In particular, the in 2006 a branch of the insurance company «ERGO Life», which is included into the second business center «Nobel» has already been commissioned, in summer it is scheduled to open the largest insurance ERGO group in Germany, was open in Tyumen. Demand for insurance services trading and entertainment complex «Stolitsa». In the central part of the city (at the cross point in the Tyumen region is growing in many respects due to increase of the number of crediting of Respubliki street and M.Toreza street) there is a plan to build a changing storey hotel and programs, offered by banks, and obliging for insurance of borrowers’ property, pledges, life office complex, as well as the trading and office European format complex «Peter the Great». and health. More than that, construction of a multifunctional hotel and business complex in the down town Securities market in the Tyumen region was initially formed and developed precisely by of Tyumen is also planned by the Tyumen holding company «Partner», the investment and regional professional participants. Most regional companies are members of the National developer company «ALUR», the architectural bureau «Aedas», the hotel operator «Rezidor SAS Association of Fund Market Participants (NAPFM) – the largest self-regulated organization in the Hospitality», the fitness operator «World Class», the restaurant operator «Paulaner» and one of fund market of Russia. Leading Tyumen investment companies provide investors with practically international construction companies. all services possible in this market. The professional participant activity is characteristic

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External economic activity Major parameters of small businesses In 2006 trade turnover within the Tyumen customs area added to 7,3 milliard dollars, including export – over 7,1 milliard dollars, import – nearly 175 million dollars. Basically, participants of external economic activity of the south of the Tyumen region were on trade with far away foreign countries (76% out of the total trade turnover, or over 5,5 milliard dollars). The program «Development of investment and external economic activity of the Tyumen region» was worked out and is active. The program actions are designated for creation and development of transport and logistics, engineering and social infrastructure, financial market service organizations; for improvement of legislation, minimization of administrative barrier negative influence; for formation of the regional investment resources control mechanism; for assistance to the Tyumen region enterprises to search for potential investors, to conduct negotiations and conclude investment agreements, etc. In 2007 for implementation of the program «Development of investment and external economic activity of the Tyumen region» the regional government intends to appropriate 292,5 million roubles. In order to stimulate external economic activity an informational and consulting point (center) was set up, which provides enterprises –exporters of the Tyumen region with professional consulting services on practical issues, permanently and free of charge. Informational and search system export72.ru. was created to inform organizations of external economic activity of the Tyumen region, as well as of state purchases and commercial tenders, held outside the region. The Regional Department of Investment Policy and State Support of Entrepreneurship of the Tyumen Region publishes a monthly specialized booklet about exporting potential of the Tyumen region, which contains information on Tyumen commodity producers. Starting from the year 2007, the government of the Tyumen region will perform finance support State support and development of small businesses to enterprises-exporters (export subsidy granting).

Small entrepreneurship Nowadays, small entrepreneurship represents a stable economic sphere of the region, and its support is considered one of the important priorities of social and economic development of the region. Persons, occupied in this sphere, allow for up to 70 % of the retail trade turnover, and provide the population with 80% of the household service capacity. The number of small business enterprises has increased by 10% for the year 2006, and in comparison with the year 2000, it almost two times grew. Small business is still mostly developed in cities; among districts the following ones may be listed: Tyumenskiy, Kazanskiy and Ishimskiy. In small business sphere, including individual entrepreneurs, there are approximately 130 thousand people, or 20% of persons, occupied in the regional economics. In 2007, according to the forecast, the number of small businesses will increase by 5-7% if compared to the year 2006. By the year 2009 the number of small businesses is forecast to be increased up to 18 thousand (116% relative to the year 2006). The turnover of small businesses is anticipated to grow in 2007 by 7% as relative to the year 2006. The regional budget financing capacities for the state support of small entrepreneurship in 2007 will grow in comparison with the year 2006 by 35%. It is expected that in 2009 the monthly average wages of a person, working in small businesses, will grow and reach 12 thousand roubles. The turnover of small enterprises in 2009 will increase up to 91,7 milliard roubles. entrepreneurship for 2006-2008» is implemented. Small business enterprises, in particular, are Most small businesses deal with wholesale and retail trade and provision of services, provided with compensation of part of the interest rate by credits, which are already active, and construction, and operate in processing industries. The products, manufactured by small leasing payments; moreover, expenses to promote the regional product in home and foreign businesses of the region, are in demand and competitive in home and foreign markets. markets are partially reimbursed. The Fund of entrepreneurship development and support For successful development of small entrepreneurship in the Tyumen region the of the Tyumen region is active. It carries out investment, consulting, tutorial and methodical, regional purpose-oriented program «Basic directions of development of industry and small managerial and engineering, informational and advertising activities. Further on, the budgetary

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funds capacity is supposed to be increased annually for financial and credit support of small entrepreneurship, from 246 million roubles in 2006 to 280 million roubles in 2009 (by 14%). The cost of minimal food product set by the end of December 2006 has added to 1632,99 The entrepreneurship support non-state structure in the Tyumen region is represented roubles per person /month, which is 9,8% higher of the corresponding parameter in December by educational, research, marketing organizations; in the region more than 60 nonprofit 2005. partnerships, branch associations and businessmen associations actively operate. Most efficient organizations are Chamber of Commerce and Industry of the Tyumen region and Dynamics of consumer cost parameters for goods and paid services provided nonprofit partnership «Institute of entrepreneurship of UrFD», Association of enterprises with to population foreign investments «Sodruzhestvo», Association of builders of the Tyumen region, Tyumen Association of Realtors and Automobile business Association of the Tyumen region.

Consumer market Annual growth of retail trade capacity, paid services for population is observed in the consumer market of the Tyumen region. In correlated prices the retail trade turnover for the year 2006 has ranged up to 90,3 milliard roubles and has exceeded the level of the previous year by 20%. The major part of the turnover (77%) was formed by trading organizations and individual entrepreneurs outside the market, the sales share in clothing, mixed and food markets was not higher than 23% (in 2005 - 27%). The retail trade turnover per capita, according to the data of the Territorial Authority of Federal State Statistics Department in the Tyumen region, has made up 68674 roubles. Food commodities were sold to population at the amount of 42,3 milliard roubles, which was 20% higher than in 2005, nonfood products – at the amount of 48 milliard roubles (+20%). The retail trade turnover composition has not changed for the year and has accounted, accordingly, for 47% of food commodities and 53% of nonfood products. Meanwhile, according to the opinion of the Tariff and Pricing Policy Department of the Tyumen region, the population demand structure changed regarding nonfood products, that is, in 2006, if compared to the previous year, sales of cars, furniture, construction materials and jewellery increased. Public catering turnover for the year 2006 has amounted for 8,1 milliard roubles, with the increase of 26% in comparison with the year 2005. The highest turnover growth pace was observed in Tyumen. Catering services per one citizen of the region account for 6126 roubles. According to the data of the Regional Tariff and Pricing Policy Department, there are nearly As a whole the consumer market of the Tyumen region ranks the second as regards the 1800 catering facilities in the region, and 638 (35%) of them are located at general educational value and capacity after the Moscow market and has a great potential. Marketing researches are institutions, higher educational establishments and colleges. Within the network structure, in indicative of significant monetary fund capacity of the regional population and of high consumer the 4th quarter of the year 2006, 3% fell on restaurants, 15% - cafes and bars, 27% - snack bars, level. Thus, nowadays the consumer market of the region is characteristic for relatively high 55% - open type canteens, canteens at higher educational establishments and colleges and commodity saturation as well. at general educational institutions. Within the snack-bar structure nearly 70% are general type The population revenue growth stimulates the increase of consumer demand. The monthly snack bars, 10% - barbecues, and 8% - pizzerias. average earnings per capita in 2006 amounted for 10,6 thousand roubles, and the increase, if The biggest number of new enterprises was opened in Tyumen. Just in 2006, the following compared to the year 2005, made up 29%. Actual available monetary earnings of population catering facilities were open in the regional center: café network «Blinoff» (trading center «Zeleny (with the deduction of obligatory payments and taking into account the consumer cost index) bereg», trading and entertainment complexes «Goodwin», «Premier»), American Hot Pizza café grew by 11%. Within the monetary earning use structure the share of funds, designated for network (Trading center «Zeleny bereg»), restaurants «Sushi Planet» and «Sibirskaya Korona» purchasing goods (by 3,3 percent point) and dwelling premises (by 0,7 p.p.), for savings in (RosInterRestaurants enterprises), Rostix – KFC, restaurant «Witerra» (sports and recreation deposits and securities (by 1,8 p.p.), grew up. center «Fifth continent»), luxury complex «Carmak», bistro-bakery «PiroGami», coffee-house The population deposits, including contributions in foreign currency, in the Savings Bank «torTsher», karaoke-club «ARTiSHOCK», etc. institutions have increased by 26% for the year 2006 and by the beginning of the year 2007 have In spring and summer catering services get enlarged due to seasonal small retail network, made up 14,4 milliard roubles. On the average, the balance of deposits per capita amounted for namely open-air cafes. They are mainly designated for creation of supplementary conditions to 10,9 thousand roubles (by January 1, 2006 – 8,7 thousand roubles). According to the opinion provide population with drinks and food at mass pile-up and recreation places. of the Main administration of Central Bank of the Russian Federation in the Tyumen region, the In 2006 the Tyumen region population was provided with paid services at the amount of amount of population deposits in credit organizations has ranged up to 20,6 milliard roubles, or 24,2 milliard roubles, which was 7% higher than in 2005. The biggest part within the service 15,6 thousand roubles per capita. structure fell on transport and communications (20% each), public utilities (15%), and The monthly average wages of employees increased, in comparison with the corresponding education (13%). period of the previous year, by 14% in actual calculation and made up 12 thousand roubles

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Dynamics of monthly average charged wages of an employee, average monetary caused by natural factors (short summer tourist season, mosquitoes and gnat, etc.). earnings per capita, amount of living minimum wages In the south of the Tyumen region two state natural wildlife refuges of federal value— «Tyumenskiy « and «Belozerskiy», 33 wildlife refuges of regional importance, 29 natural sites are located. International value wetlands «Lakes of Tobolo-Isetsk forest-steppe» are also referred to as specifically protected territories All this is taken into consideration when working out the «Strategy of tourism development in the territory of the Tyumen region», which allows for the development of competitive tourist industry, improvement of social and economic results of the region. It is anticipated that the tourist number annual average increase rate till the year 2010 will make up 11%; by the year 2010 it is expected that the tourism turnover (monetary revenues) will increase by 2 times, employment growth of the population of the Tyumen region in tourism industry will be 30% higher, the tourism industry fund inflows to the budget will increase by 50%. The strategy implementation must result in preservation for future generations of historical-cultural heritage and unique natural resources: increase of the share of restored historical-cultural sites, preservation of ecological characteristics of wildlife refuges and recreation areas in compliance with rules. Within the framework of Strategy implementation the work to create a Western Siberia tourist center in Tobolsk is active. There are all conditions here for successful tourism development, namely, unique historical and cultural monuments, favorable climatic and natural conditions, In 2007-2009 the monthly average earnings of population are forecast to grow by nearly 7-8% per year in real terms and in 2009, they will make up about 16 thousand roubles a month per citizen, according to the estimation. growing interest of Russian and foreign tourists. Actions to create the tourist center, based on the historical-cultural heritage of the town of Tobolsk, are implemented within the framework of the regional purpose-oriented program «Major directions of tourism development in the Tyumen Tourism and recreation region». For the 1st half of the year 2006 the Program action financing volume has amounted for The economic capacity, wealthy cultural heritage, advantageous geographic situation, 65,9 million roubles, and 50,4 million roubles of them are capital investments. availability of hotel service organizations contribute to intensive development of tourism in the Except for the places of interest of Tobolsk itself, it is expected to restore and offer other Tyumen region. Here there are all conditions available for the development of both internal sites for tourists, namely, the Pokrovskoye village - the Motherland of Grigory Rasputin, Green and inbound tourism. The most valuable tourist regional resources are historical-architectural grove and the House of Decembrists in Yalutorovsk, as well as a number of places of interest in ensembles, historical monuments, architectural and cultural memorials, sanatoriums, Ishim. preventative clinics, balneal springs, diversified world of flora and fauna, multiple water sites, Forming of the unified complex tourist product of the south of the Tyumen region is planned. etc. It will include the following sites: Nowadays an inrush of both Russian and foreign tourists grows. It is expected that in 2007 the number of foreign tourists will increase up to 38-39 thousand people, and in 2009 it will • Tourist-recreation zone with tourist sites such as Ingalskaya plain, Marjino canyon; make up 44-48 thousand people. The number of Russian visitors in 2007 will grow by 8-10% in • Regional park where Siberian fauna representatives are freely kept in territory of the wildlife comparison with the estimation parameters of the year 2006 and in 2009 will amount for 570- refuge «Rafajlovskiy» in the Isetsk district; 627 thousand people. • The Isetsk Museum of Local Lore, History and Economy; Development of tourism industry in the region is getting one of priority lines. According to • The tourist base «Uzhnaya»; preliminary estimations, the tourist industry total investment capacity may exceed 3 milliard • The town of Yalutorovsk (the tourist-recreation zone «Grove of Decembrists» and «Merchant roubles in the near future. The Tyumen region has objective preconditions for the tourism block»). industry development at higher pace than in Russia on the average. Tourist cultural resources (tourist interest sites) include over 1000 of historical, cultural and When creating cultural tourism projects, it is important to form step-by-step the so-called recreation sites, among them 28 museums, 4 theatres; 764 cultural and recreation institutions; «locomotive» tourist-transport projects and new tourist itineraries of the Tyumen region. 2107 sports facilities, hundreds of archeological monuments, etc. By number of similar sites Healthcare the region is included into first seven regions of Russia and is comparable with a number of Over 300 medical-prophylactic institutions have medical licenses in the territory of the developed countries, such as Canada, Norway, Germany and etc. Tyumen region; about 60% of them are private institutions. There are several regional clinics The following towns are considered as historical: Tobolsk, Tyumen, Yalutorovsk and Ishim. in the region; such large institutions as ophthalmologic, oncology, anti-tubercular dispensers For a while these are local cultural points, but there are regional and even federal opportunities and others are under operation. Scientific researches in medical sphere are conducted in the in sight, if tourist and cultural projects have been implemented. Tyumen Medical Academy clinics, the Local Infection Pathology Institute and the Clinical and There are natural factors, favorable for the development of tourism. The region is situated Prophylactic Cardiology Institute of the Siberian division of the Russian Academy of medical within Western Siberian plain, mostly in an interstream area of the Tobol and Ishim rivers, in a sciences (The Tyumen cardiology center). forest-steppe and steppe natural zones. Ecologically clean landscape and recreation complexes, Within the framework of the national project «Health» in 2007, construction of a minimal wildlife refuges with diversified flora and fauna, multiple water objects are of particular interest invasive neurosurgery center and of a new oncology dispenser begins in Tyumen. Perinatal for ecological and hunting-fishing tourism, though there exist some objective restrictions, centers are under development and construction.

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Education and science strengthening program. The program originates from the fact that for qualitative improvement By September 2006 in the Tyumen region about 1300 educational organizations, including of the situation, it is required to change managerial approaches and methodologies within this 485 infant schools, 640 general education schools, 25 basic vocational education institutions, sphere, namely, unification of the activity of varied competent and involved parties, strengthening 21 secondary vocational education organizations, 11 institutions of higher education, 83 of the preventive role of district militia officers, combination of efforts of not only public continuing education institutions, 32 boarding schools have been active. authorities, but intensive attraction of non-state structures, public associations and citizens. Admission to postgraduate studentship is growing, graduation of economic, medical and An all-round and prevention approach to solving issues will allow, in a certain way, to stabilize engineering study postgraduates is increasing. On the average, annually 30 people study in the criminal situation. Starting from the year 2007, according to the forecasts, the decrease of the doctorate. number of gross crimes and felonies will most likely add to 3-5%. The scientific research complex of the Tyumen region consists of more than 30 organizations, Considerable attention is paid to the consolidation of the district militia officer institute. Work conducting research and development; among them there are 23 scientific research institutes, to provide them with required premises, hardware, including computers and vehicles, is carried 6 higher education institutions, 2 scientific testing stations. Over a third of branch organizations out. In order to strengthen the personnel and enhance labor motivation of militia employees, deal with oil and gas industry issues. salaries increase, depending on official activity results, is envisaged.

Culture In the Tyumen region there are nearly 1200 cultural organizations, including over 20 museums, several professional theatres, cinema houses and recreation centers. Tyumen is the center of cultural life; 3 professional theaters, the regional philharmonic hall, 8 museums, about 50 public libraries, including the regional scientific library and the children’s scientific library, operate here. National culture festivals are regularly held in the region, where representatives of nearly 140 nationalities and ethnic groups live.

Physical culture and sports There are more than 2300 sports facilities active in the region, including sports complexes, gyms, hockey courts, skiing lodges and swimming pools. The following kinds of sports are traditionally developed: winter sports, horseracing (The Horseracing Federation of the Tyumen region is active), parachuting, and aerial model sports (gliding). In Tyumen a Sports Palace, 6 stadiums, football exercising area and nearly 140 gyms are functional. Each year about 100 championships, sports competitions and tournaments, involving more than 10 thousand sportsmen, are held in the region.

The population social security The Tyumen region citizens are ensured to get minimal social standards, taking into consideration regional peculiarities, at the cost of the budget. Such social support measures under the legislation as targeted welfare benefits and social services are provided. Low-income families are granted budgetary aid for the development of personal subsidiary facilities, family, private business and professional education.

Security and public order According to the opinion of law-enforcement authorities, in 2006 the number of crimes, registered in the Tyumen region, has increased by 10%, if compared with the previous year, and has amounted for 61,8 thousands (28% of them are referred to as gross crimes and felony). The number of registered crimes per 100 thousands of the population has made up 4,7 thousands (in 2005 – 4,3 thousands). As experts point out, the growth of registered crimes is caused by the activation of district militia officers’ activities, subordinate and registration discipline strengthening, opening of a new center «02», and hot line operation. The crime detection rate has grown by 6%; at the same time the number of suspended criminal files has turned 18% higher. The Government of the Tyumen region, jointly with law-enforcement agencies and other involved bodies, implements a comprehensive offence prevention and criminality control

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of the region, and strives for creating reasonable conditions for their operation. Basics of legal, infrastructure and informational base to attract investments are formed in the region; the warranty mechanism to protect investors’ rights is worked out. Thus, in 2003 the regional 3 Investment climate Law «About the state support of investment activity in the Tyumen region» was adopted, which in the Tyumen region. stipulated a variety of support patterns for investment project holders as follows: 1. tax remissions given in the order, established by the federal and regional legislation; Large investors and projects 2. budgetary credits; 3. investment tax credits; Beneficial economic-geographical position, positive dynamics of social-economic 4. grants and subventions; development and political stability of the region make the Tyumen region attractive for 5. the state investments due to the regional budget funds; investments. 6. rendering assistance at the procedure of granting land lots and other real estate sites, The Tyumen region (including autonomous districts) occupies the most part of West Siberian being in the regional property; plain and reaches from steppes of Kazakhstan up to the Arctic Ocean. In the north the Tyumen 7. guarantees. region (excluding autonomous districts) neighbors Khanty-Mansijsk Autonomous District, in the east it borders on the Tomskaya region, in the south it has borderlines with the Kourganskaya These kinds of support may be used by both foreign and Russian investors. Some revisions region, the Republic of Kazakhstan, the Omskaya region and in the west it neighbors the were introduced to the Law. They are aimed at lowering the investor activity state control and are Sverdlovskaya region. based on an individual approach in relationships with each investor. Convenient economic-geographical position, first of all, proximity to Ural and major Russian The regional purpose-oriented program «Development of investment and external economic oil and gas production regions, add to the growth of the regional economic strength. activity for the years 2006-2008» is approved and active. It aims at forming an efficient investment The Tyumen region represents a significant transport junction point of Russia. The most policy, activating investment and foreign economic activities, and improving the investment important railway and automobile roads rise in Tyumen to the north, which allow for operation image and reputation of the region. Production and social infrastructure is under formation and of the Western Siberian oil and gas complex. Main Trans-Siberian railway, highways of federal it encourages investment activity. value pass through the region. There are 7 international airports and 5 river ports in the region The Government of the Tyumen region considers innovation and new technology adoption (taking into account the Khanty-Mansijsk and Yamalo-Nenetsk Autonomous Districts). In the as one of the major methods for enhancing the regional economics competitiveness. The territory of the region trunks pass, namely, oil and gas product pipelines, feeding hydrocarbons Western Siberian oil and gas innovation center (engineering promotional park) is under to refinery centers, located both in the Tyumen region (the Tobolsk petrochemical complex), creation in order to reinforce the Tyumen oil and gas complex positions in the global market, and outside it. to ensure stable development of the economics in Tyumen due to the strengthening of its Creation of favorable and stable investment climate in the region is one of the regional diversification and innovativeness, to fully discover a labor and creativity potential of the government key goals. Authorities tend to the economics diversification and attraction of regional population. The key specialization of the center will be innovation production for investments not only to the fuel and energy sector, but to other industries as well – mechanical the oil and gas sector, including all engineering chain elements, namely: field exploration, engineering and metal processing, woodworking, chemical, textile and food industries, production, transport, storage and refining of oil and gas. The technology park activities will construction material production and agriculture. The region development strategy involves also include such perspective directions as new materials, technologies in construction, forming and development of the following competitive clusters: power engineering, etc. The Tyumen industrial park will be oriented to support all innovation process stages, from formalization of an idea up to transfer of a technology to a large-scale the mechanical engineering cluster; production and business development. For financing science-intensive innovative programs the textile industry cluster; (projects) within the framework of the technology park, the regional Government set up the the wood industry and woodworking cluster; «Fund of Assistance to the development of small business venture capital investments in the the commerce and service cluster; research and technology field of the Tyumen region». the construction industry cluster; The best confirmation of a favorable investment climate in the region is that there are the agriculture and food industry cluster; strategic investors, including international corporations. One of the largest strategic partners the transport and logistics cluster. of the Tyumen region is ТNК-ВР company, which incorporated a profit center in the region. The company, being supported by the regional Government, for several years has been successfully The leading Russian and foreign consulting companies are recruited for the branch strategy implementing the investment projects «Extraction entrainment of hard to recover hydrocarbon development. Specifically, Finnish company Jaakko Poyry Consulting evolved a strategy of reserves at depleted fields of the Tyumen region» and «Securing the development of oil- development of the Tyumen region wood industry; German company Rödl & Partner Consulting producing sector in the Tyumen region by involving hydrocarbons to extraction operations in the worked out a strategy of investment development of the textile industry. In the near future Uvatskiy district and by adopting new technologies»; the volume of investments has made up evolvement of strategies of development of mechanical engineering, agriculture, transport and 3,9 milliard euros for three years. logistics, construction and construction material production is planned. These projects’ implementation gave a fillip to the development of other industries, related The Tyumen region is characteristic for stable growth of investment volumes to the fixed to oil production (transport, construction, elaboration of design concepts and etc.). In 2007 the capital stock, which is due to dynamic development of most regional economics sectors, and planned investments will amount for 588 million euros. is caused by active work of regional authorities to attract investments. The government of the An investment agreement was concluded with Schlumberger Company regarding the Tyumen region provides any support to investors, who intend to invest funds to enterprises state support of the project «Organizing oil recovery equipment and component production,

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developing scientific and methodical, training and engineering infrastructure of a oil-producing The major part of funds, designated for implementation of large infrastructure projects, complex in the Tyumen region». Production of electric submersible pumps and perforating social and economic programs of the region, is provided by the regional budget. Thus, the equipment has already been established; a Siberian oil and gas industry personnel training federal budget share keeps reducing steadily. center is under construction near Tyumen. The investor’s contribution to the project, designed In 2007 the expected volume of investments in the fixed capital in the south of the Tyumen for 5 years, will make up approximately 48 million euros. region will amount for nearly 74 milliard roubles. Private companies will invest the main part; A cooperation agreement with KCA Deutag Drilling GmbH assumes that Tyumen will make budgetary funds are planned to be designated for stimulating and supporting investment, not only a completing center, but the place, where inspection and maintenance of drilling units production and engineering infrastructures, developing and consolidating the social field using engineering potential of Tyumen industrial enterprises are executed. The proposed material base. amount of the company investments will exceed 15 million euros. An agreement with Bentec Drilling and Oilfield Systems Company was signed, according to which the company in 2007-2008 would establish production of drilling units and components in Tyumen. The declared volume of investments is over 18 million euros. An agreement of intent with DYNAenergetics GmbH & Co.KG Company was signed, which stipulated construction of a seismic survey perforating equipment manufacturing plant in the Tyumen region; the investments under consideration are 10 million euros. Thus, the Russian- German company «Perfoline» has been working for a number of years already in Tyumen, and one of the founders of this company is DYNAenergetics. Capital investments to the oil and gas-processing sector are growing. Thus, the company «SIBUR Holding» intends to build a large production of propylene and polypropylene at the territory of the Tobolsk petrochemical complex; the assumed capital costs (including expenses for construction of infrastructure and dwelling sites) make up 1,7 milliard euros. The first order of the Antipinskiy oil refining plant was commissioned. It is designed to refine 400-550 thousand tons of oil per year with the perspective to increase the capacity up to 2 million tons. The plant cost after coming up to full capacity will amount for nearly 320 million euros. Larger investment projects have been implemented in construction industry. The Turkish holding «MESA IMALAT» establishes the production of timbering for monolithic house building in Tyumen, investments to the project will add to over 10 million euros. MC-Bauchemie Company, in accordance with the concluded agreement of intent, plans to set up a production of dry building mixtures, and the initial volume of investments is estimated at 12 million euros. One of the largest investors in agriculture is the holding «UNIMILK», which builds up a cheese production factory in the region. The project costs more than 49 million euros. The Moscow alcohol-free beer producing plant «Ochakovo» completes the construction of an alcohol-free beer producing plant «Ochakovo» in Tyumen, designed for the output of 120 million liters of beer and 40 million liters of low-alcoholic and alcohol-free drinks per year. The volume of investments is 45 million euros. Provimi Company in 2007-2008 plans to construct a formula feed producing and open a personnel training center at the basis of one of higher educational institutions of Tyumen and a scientific research and development laboratory. The volume of investments comprises ???? Recognized international companies get a foothold in the consumer market of the Tyumen region. Thus, METRO Cash & Carry GmbH Company built a multifunctional trading center in Tyumen, and McDonald’s company intends to open a network of restaurants in the region. Branches of economics, fundamentally new for the region, appear. Thus, in the end of the year 2006 the Ural ore mining and smelting company began to construct a metallurgical factory in Tyumen. The investor’s contribution is estimated at 370 million euros. On the whole nowadays the tendency of fast growth of investments in a fixed capital is observed.. Thus, for the years 2000-2005 the volume of investments to the regional economics (in comparable estimation) has increased 2,6 times. In 2005 56,6 milliard roubles were invested, in 2006 – 70,3 milliard roubles. The main part of investments is designated for the development of transport and communications, mineral production, real estate operations, lease and providing services, production and distribution of power, gas and water. Therewith, a relatively small share of the processing sector in the investment structure is allocated by a number of engineering directions for each separate type of production.

32 33 How to invest How to invest in the Tyumen region in the Tyumen region

Investment council performs its activity on the basis of the resolution about investment coun- cil, adopted by the Government of the region. In accordance with the regional law № 159 «About the state support of investment activity in the Tyumen region» the investment council is formed 4 Investment infrastructure out of representatives of the Duma of the Tyumen region and executive governmental bodies of the re-gion on equal basis. The council examines investment projects, having a positive opinion Procedures for implementation of investment projects. of the ex-pertise, which is performed by an authorized body of the region in order to reveal Forms of the state support of investment activity economic and (or) any other useful effect, and makes a decision on granting the state support. The state support of investment activity is granted under condition of the conclusion of the investment agreement between the Government of the region and the investment project Department of Investment Policy and State Support of Entrepreneurship is formed in the holder (after the project has been approved). The investment agreement defines the volume Tyumen region. Within the limits of its competence it ensures the implementation of the uniform and dates of invest-ments; the list of parameters to be achieved, which characterize economic investment and external economic policy of the Tyumen region, and the policy of the state support and (or) any other effect useful to the Tyumen region; conditions and forms of the state support of entrepreneurship. Primary goals of the department include: formation of mechanisms of the of investment activity; re-porting forms, procedure and dates for submitting them. state support of investment activity in the territory of the Tyumen region, ensuring effective co- The authorized executive governmental body of the Tyumen region to implement the Law of operation of the Tyumen region with governmental authorities, representatives of official and the Tyumen region dated July 08, 2003 № 159 «About the state support of investment activity business circles of the Russian Federation and foreign countries. in the Tyumen region» is assigned by the decree dated January 17, 2005 № 2-pk «About In the sphere of investment policy the department collects and summarizes information, implementation of the Law «About the state support of investment activity in the Tyumen which characterizes the development and investment capacity of major branches and sub- region» branches of the regional economics, as well as information on key prospective investors for Obligatory terms of investment agreement between the Government of the Tyumen region these branches; coordinates investment activity and interacts with local self-government and an investor: agencies; coordinates the activity on the development of branch strategies, conceptions of - the volume and dates of investments; economic development, search for growth points, etc.; forms and implements programs and - the list of parameters to be achieved, which characterize economic and (or) any other a variety of actions, designated to attract Russian and foreign investments to the economics effect useful to the Tyumen region; of the Tyumen region. Moreover, the department is responsible for searching and attracting - conditions and forms of the state support of investment activity; investors and dealing with projects, directed to the development of the Tyumen region, - reporting forms, procedure and dates for submitting them. including organizational and informational assistance; coordinates the activity to ensure the Rights and obligations of the parties, the responsibility of the parties for violation of the in- implementation of investment projects as regards human resources; works out suggestions vestment agreement terms, the procedure and grounds for its pre-term cancellation and other concerning implementation of investment projects, related to the usage and (or) privatization of condi-tions are established according to the current legislation. the state companies and property; keeps the total register of investment projects in the Tyumen The investment project holder (holders) submits (submit) to the authorized executive region; organizes the activity of the investment council of the Tyumen region; performs, within govern-mental body of the region (hereinafter – authorized body of the region) the investment the limits of its competence, an analysis, evaluation and selection of investment projects in application and project with the required documents attached, following the procedure, order to grant the state support to holders of investments projects of the Tyumen region; works established by the re-gional Government. out and concludes, within the limits of its powers, investment agreements; outlines suggestions Investment projects are subject to the expertise, performed by the authorized body of the as re-gards annual volume of the regional budget funds, borrowed funds, credits and other re-gion, to reveal economic and (or) any other effect useful to the Tyumen region. The expertise resources, re-quired for financing investment projects and programs; executes co-operation posi-tive opinion and the investment project are forwarded for examination to the investment with international and Russian financial institutes, organizers of international programs of council. economic cooperation and tech-nical assistance, other organizations to attract investments The investment project accompanied with the positive opinion of the investment council to the economics of the Tyumen region; conducts the expertise of investment projects aiming shall be forwarded to the regional Government for approval. The investment project approval at providing investment project holders with the state support due to the funds of the Tyumen is drawn up with the instruction of the regional Government and represents coordination of the region development budget.

The state support of investment activity in the Tyumen region, in accor- 4) granting subventions and subsidies due to the regional budget funds; dance with the legisla-tion, may be performed in the following forms: 5) granting investments, which are carried out due to funds of the re- gional budget, and (or) the assets, being the property of the Tyumen 1) establishing for holders of investment projects of the Tyumen region of region; the preferential or-der of taxation within the limits of sums, enlisted to 6) organizational assistance to holders of investment projects at the pro- the regional budget; cedure of granting the land lots and other real estate items, being the 2) granting to holders of investment projects of budgetary credits due to property of the region; the regional budget funds; 3) granting to holders of investment projects of the Tyumen region of in- 7) granting to holders of investment projects the state guarantees of the vestment tax credits; Tyumen region.

34 35 How to invest How to invest in the Tyumen region in the Tyumen region

following pa-rameters: the list of rates, characterizing economic and (or) any other effect useful 11. Edict of the President of the Russian Federation dated September 17, 1994 N 1928 «About to the Tyumen region, and the state support forms of. private investments in the Russian Federation» (with revisions dated January 20, April 16, The Tyumen region investment project holder is obliged to ensure the achievement of the 1996). coordinated rates, characterizing economic and (or) any other effect useful to the Tyumen 12. Federal law dated November 22, 1995 N 171-FL «About the state regulation of methylated region. The coordinated parameters may be changed by the initiative of the Tyumen region alcohol and alcohol-containing products' manufacturing and turnover» (with revisions dated investment project holder or the regional Government. The parameters are considered changed January 10, 1997; January 7, 1999; Desember 29, 2001; July 24,25, 2002; November 2, from approving them by the regional Government. 2004; July 21, December 31, 2005). The Law of the Tyumen region dated August 16, 2004 The investment council implements its activity on the basis of the resolution about the invest- N 248 «About measures to develop the paper-pulp industry in the Tyumen region». ment council, adopted by the Government of the region. The investment council is formed out of representatives of the Duma of the Tyumen region The Tyumen region and executive governmental bodies of the region on equal basis. INVESTMENT ACTIVITY Presently investment activity in the Tyumen region is regulated by the following legislation of the Russian Federation, the Tyumen region and local self-government agencies. 1. Decree of the Governor of the Tyumen region dated October 20, 2004 N 73-r «About ap- proval of the investment council structure» (in the edition of instructions of the Governor of Main laws and legislative acts, regulating implementation of investment and entrepre- the Tyumen region dated April 29, 2005 N 40-r, June 06, 2005 N 51-r, July 06, 2005 N 109-r, neurship activity in the Tyumen region February 07, 2006 N 14-r); 3. Agreement dated May 14, 2001 «About cooperation of governmental authorities of the Federal legislation Tyumen region, Khanty-Mansiyskiy autonomous district, Yamalo-Nenetskiy autonomous INVESTMENT ACTIVITY district in the field of investment activity»; 1. Federal Law dated February 25, 1999 N 39-FL «About investment activity in the Russian 4. Charter of the Tyumen region dated June 30, 1995 № 6 (in the edition dated June 03, Federation, performed in the form of capital investments» (with revisions dated January 2, 2005); 2000; August 22, 2004; February 2, 2006); 5. Law of the Tyumen region «About preferential taxation in the Tyumen region», № 33 dated 2. Federal law dated July 21, 2005 N 115-FL «About concession agreements»; April 15, 1996; 3. Federal law dated July 22, 2005 N 116-FL «About specific economic areas in the Russian 6. Law of the Tyumen region dated January 13, 2001 N 260 «About making revisions and Federation»; sup-plements to the Law of the Tyumen region «About the procedure for using the regional 4. Federal law dated July 9, 1999 N 160-FL «About foreign investments in the Russian Federa- budget funds as borrowed funds». It was adopted with the order of the Duma of the Tyumen tion» (with revisions dated March 21, July 25, 2002; December 8, 2003; July 22, 2005); region dated Decem-ber 26, 2000 N 1403; 5. Federal law dated October 29, 1998 N 164-FL «About financial rent (leasing)» 7. Decree of the Administration of the Tyumen region «About implementation of the Law «About (with revisions dated January 29, December 24, 2002; December 23, 2003; August 22, the state support of investment activity in the Tyumen region», № 2-pk dated January 17, 2004; July 18, 2005); 2005; 6. Federal law dated December 30, 1995 N 225-FL «About products division agreements» 8. Decree of the Government of the Tyumen region «About approval of the procedure to con- (with revisions dated January 7, 1999; June 18, 2001; June 6, 2003; June 29, December trol the Tyumen region investment project holders’ achievement of coordinated rates» № 29, 2004); 44-p dated May 30, 2005; 7. Decree of the Government of the Russian Federation dated June 26, 1998 N 653 «About the 9. Law of the Tyumen region dated November 10, 2006 N 504 «About granting tax privileges procedure for granting to organizations of loans, financed at the cost of the state external for the year 2007 to certain categories of taxpayers». It was adopted by the regional Duma borrowings of the Russian Federation, to purchase import equipment, other goods and on the 27th of October, 2006; services for the imple-mentation of investment projects in the Russian Federation» (with 10. Law of the Tyumen region dated December 22, 1997 N 138 (edition dated July 06, 2005) revisions dated December 28, 1998); «About the procedure for granting and using credits at the cost of the regional budget 8. Decree of the Government of the Russian Federation dated July 23, 1996 N 883 «About im- funds»; port customs duty privileges and value added tax privileges in respect to goods, imported 11. Decree of the Government of the Tyumen region dated May 30, 2005 N 44-p «About ap- by foreign investors as contributions to the authorized capital (registered) of enterprises proval of the procedure to control the Tyumen region investment project holders’ achieve- with foreign invest-ments»; ment of coordinated rates» (in the edition of the decree of the Government of the Tyumen 9. Decree of the Government of the Russian Federation dated November 12, 1999 N 1249 region dated October 31, 2005 N 208-p); «About approval of Decree of granting the state guarantees to secure investment projects 12. Law of the Tyumen region dated July 8, 2003 N 159 «About the state support of investment of social and national economy importance» (with revisions dated October 3, 2002); activity in the Tyumen region». It was adopted by the regional Duma on the 24th of June, 10. Decree of the Government of the Russian Federation dated November 22, 1997 N 1470 2003 (in the edition of the Laws of the Tyumen region dated December 08, 2003 N 175, De- «About approval of Procedure for granting the state guarantees on competitive base at cember 10, 2004 N 289, May 04, 2005 N 373); the cost of the development budget funds of the Russian Federation, and Statutes about 13. Law of the Tyumen region dated December 26, 1995 N 17 «About international agreements evaluation of the ef-ficiency of investment projects when allocating on competitive base of the Tyumen region and contracts of the Tyumen region with subjects of the Russian Fed- of centralized investment re-sources of the Budget for the development of the Russian eration». It was adopted by the regional Duma on the 29th of November, 1995 (in the edition Federation» (with revisions dated May 20, September 3, 1998); of the Laws of the Tyumen region dated March 16, 2001 N 307, October 06, 2005 N 410);

36 37 How to invest How to invest in the Tyumen region in the Tyumen region

14. Order of the Government of the Tyumen region dated July 11, 2005 N 359-rp «About estab- Duma on the 24th of April, 2003 (in the edition of the Laws of the Tyumen region dated lishing the commission to assist investments to the mineral and raw material complex of the December 29, 2003 N 195, March 28, 2005 N 360, May 04, 2005 N 374); Tyumen region» (in the edition of the order of the Government of the Tyumen region dated 9. Decree of the Governor of the Tyumen region dated March 15, 2005 N 17-r «About the February 17, 2006 N 115-rp). commission to select small business enterprises for granting the state support»; 10. Law of the Tyumen region dated August 16, 2004 N 248 «About measures to develop Municipal formation – the city of Tyumen cellulose-paper industry in the Tyumen region». It was adopted by the regional Duma on INVESTMENT ACTIVITY the 12th of August, 2004 (in the edition of the Law of the Tyumen region dated May 04, 2005 N 374); 1. Resolution of the Duma of the city of Tyumen dated November 25, 2005 N 259 «About the 11. Decree of the Administration of the Tyumen region dated December 29, 2004 N 238-pk Order on local taxes of the city of Tyumen» (in the edition of the resolution of the Tyumen «About the procedure for selection of industrial enterprises and small business enterprises city Duma dated April 27, 2006 N 357, with revisions, made in the resolution of the Tyumen for granting the state support» (in the edition of decrees of the Government of the Tyumen city Duma dated May 30, 2006 N 379); region dated June 13, 2005 N 76-p, August 15, 2005 N 133-p); 2. Decree of the Mayor of the city of Tyumen dated June 2, 2006 N 16 «About approval of the 12. Decree of the Administration of the Tyumen region dated December 29, 2004 № 239-pk Order of the procedure for making a targeted investment program of the city of Tyumen»; «About approval of the procedure for partial reimbursement of the cost of the ordered and 3. Order of the City Administration of Tyumen dated June19, 2000 N 2280 «About ap-proval of paid equipment and other material resources for the year 2005». methods for evaluation of the investment project efficiency»; 4. Resolution of the Tyumen city Duma dated March 29, 2001 N 150 «About approval of the Department of Investment Policy and State Support of Entrepreneurship of the Tyumen order of investments to municipal real estate items» (in the edition of resolutions of the region assists to prospective investors to select land lots, unoccupied production areas, suitable Tyumen city Duma dated February 28, 2002 N 265, October 28, 2004 N 115, December 28, for placing items. 2004 N 145). The powers of a lessor and a seller when selling land lots or the right to conclude a land lot lease agreement are executed by the Department of Property Relations of the Tyumen region. The Tyumen region The state institution «Property Fund of the Tyumen region» or any other specialized organization, THE STATE SUPPORT OF INDUSTRY and SMALL BUSINESSES in ac-cordance with the contract, is authorized to act as the tender organizer when selling land 1. Appendix N 2 to the Decree of the Administration of the Tyumen region dated Decem- lots or the right to conclude a land lot lease agreement on tenders (contests, auctions). ber 29, 2004 N 238-pk «Order about the commission to select industrial enterprises for Local self-government agencies independently grant land lots to the ownership or lease in granting the state support»; cases, determined by the legislation of the Russian Federation and the Tyumen region. 2. Decree of the Governor of the Tyumen region dated March 9, 2005 N 16-r «About the commission on selection of industrial enterprises for granting the state support» (in the edition of the decree of the Governor of the Tyumen region dated June 16, 2005 N 55- r, decrees of the Govern-ment of the Tyumen region dated August 30, 2005 N 540-rp, February 12, 2006 N 109-rp); 3. Law of the Tyumen region dated December 28, 2004 N 295 «About supporting certain types of industrial activity in the Tyumen region». It was adopted by the regional Duma on the 23d of December, 2004 (in the edition of the Law of the Tyumen region dated October 06, 2005 N 410); 4. Law of the Tyumen region dated December 28, 2004 N 305 «About the state support of agricultural production in the Tyumen region». It was adopted by the regional Duma on the 23d of December, 2004 (in the edition of the Law of the Tyumen region dated October 06, 2005 N 410); 5. Decree of the Administration of the Tyumen region dated October 11, 2004 N 121-pk «About unification of regional purpose-oriented programs»; 6. Decree of the Government of the Tyumen region dated February 17, 2006 N 35-p «About using funds to support small businesses in municipal formations»; 7. Law of the Tyumen region dated November 13, 1996 N 56 «About the state support of small entrepreneurship in the Tyumen region». It was adopted by the regional Duma on the 10th of October, 1996 (in the edition of the Laws of the Tyumen region dated April 11, 2001 N 320, March 11, 2004 N 211, December 28, 2004 N 296, March 28, 2005 N 370, October 06, 2005 N 410, with revisions, made with the Law of the Tyumen region dated February 12, 2001 N 272); 8. Law of the Tyumen region dated May 6, 2003 N 138 «About the state support of manufacturers, producing beer and low-alcoholic products». It was adopted by the regional

38 39 How to invest How to invest in the Tyumen region in the Tyumen region

Assets: Siberia – Chistiye technologii –1 Ltd is provided with a dead-end track land lot 5 Investment projects (2Ha) spreading over 1,1 km (all approvals have been passed, is filed in Municipal Unitary Enterprise Cadastre), which is being registered to ownership. Territory dumping operations are The Tyumen Region Government is quite interested in creating the high add value production under completion. Approvals were received regarding electric power, gas, water and sewage. of outputs on the region’s territory and is ready to consider the possibility of providing the The designing estimates have been 70% completed. There is a part of engineering equipment. additional guarantees and preferences in a part of the investments. Also, in accordance with the Capital investments: 51 million roubles, required for purchasing equipment and regional legislation, investors can reckon on getting the tax privileges, subsidies, subventions, construction of a modular building and technical elevators. Payback time is 18 months. budget credits and other types of state support. Forms of cooperation: investments to the project implementation at participation interest conditions. 1. PETROLEUM AND GAS CHEMISTRY 1.1 Oil and gas recovery and transportations, 2. Cluster of electric energy Total amount of oil and gas engineering and service The agreement of the RAO «UES of Russia» with the investments 6 – TNK-BP (1,5 milliard Euros), OMV, Halliburton, Tyumen region about the development of region power and milliards euros LuKOil, Transneft, Zapsibgasprom, Salym Investors are uninterrupted power supply of the region on nearest 5 years. Petroleum (Shell), BGP CNPC offered to Construction of 5 generating objects in cooperation – Schlumberger (60 million Euros) establish oil and with leading international enterprises General Electrics and – KCA Deutag Drilling GmbH (15 million Euros) gas equipment Siemens, including the construction of TPP-3 in Tyumen and – Bentec Drilling & Oilfield Systems (18 million production modernization of Тobolsk ТPP. Euros) – Dyna Energetics (8 million Euros) 3. mashine–building – Equipment for seismological and maintenance operations in oil and gas extraction. 1.2 Petroleum refining, petroleum and gas chemistry and chemical – Agricultural machine-building (manufacturing of the equipment for cattle management and – Petrochemical complex industry olefins and polymer production (on the basis of Tobolsk- milk production; manufacturing of special items of agricultural equipment for vegeculture Neftekhim Ltd., the initiator – OJSC «Sibur Holding». The total volume of investments makes and grain culture); up 1,7 milliard Euros). Investors are offered to set up the production varnish products as – formwork production for construction well as other polyethylene and polyethylene products. – Antipinskiy oil refining plant (capacity 500 (at present) – 2000 thousand tons (by 2009) of 4. Cluster of a wood industry and wood processing oil per year, the volume of investments by 2009 will make 330 million Euros) – Wood industry – One more oil refining plant construction is offered to be carried out, the capacity of which – Plywood production is up to 1 million tons of oil and higher, and which is export-oriented. – Flake board production – Establishing of bitumen manufacture wish the capacity of 68 thousand tons. The volume of – OSB and MDF manufacture investments is 11,3 million Euros. – Coniferous and broadleaf timber production Clean technology project – Skeleton ired wood house-building

Name of offer: Introduction of innovative technology to process surfaces, reservoirs, tanks The elaborator of the strategy: Poyry Forest Industry Consulting Oy (Jaakko Poyry Consulting using a self-cleaning detergent. (Finland) Project description: Transportation of oil and other bulk liquids by railway, water and automobile transports is top important for the economics of the Tyumen region. Only industrial The priority projects are defined: companies of the region own over 5 thousand railway vessels, more than 50 specialized water 1. Creation of the enterprise on manufacture WSP with the capacity of 250 000 м3 /year. The crafts, 1420 vehicles transporting oil, over 400 petrol stations and approximately 70 bulk volume of the investments - 70 mln. Euros; plants. 2. Creation of the enterprise on manufacture FPAD with the capacity of 250 000 м3 /year. The Before oil-loading tanks should be processed (washing, ungreasing, steaming, etc.). volume of the investments - 80 mln. Euros; Similar procedures should be performed at gasoline service stations, oil storages and haulers. 3. Creation of the enterprise on manufacture of dry coniferous saw-timbers with the capacity However, the nearest vapor-steaming stations are located in Omsk and Perm. Large prospective of 100 000 м3 /year. The volume of the investments – 15 mln. Euros; product consumers are Antipinskiy oil refining plant and Tobolsk-Neftekhim. 4. Construction of a new plywood factory with the capacity of 60 000 м3/year. The The specified material may be also used when processing carriages, transporting formula volume of the investments - 48 mln. Euros; speed and other food commodities, storages in agricultural industry. 5. Creation of the enterprise on manufacture OSB with the capacity of 250 000 м3/year. In view of the abovementioned information an investor is suggested to take part in Volume of the investments - 87 mln. Euros; implementation of an investment project on introduction of the technology of processing Projects on manufacture of plywood (30 thousand m3/year), wooden frame houses (100 surfaces, reservoirs, tanks using a self-cleaning detergent. houses per year) are already realized. Negotiations on the organization of new manufactures wood Project initiator: Siberia – Chistiye technologii –1 Ltd. chip board, coniferous saw-timbers, plywood and medium density fibreboard are carried on.

40 41 How to invest How to invest in the Tyumen region in the Tyumen region

5. Trade and service project on manufacture of timbering for monolithic housing construction (volume of investments Construction of hotel and motel nets in the territory of the region - more than 13 mln. dollars ). MC-Bauchemie Russia is measured to realize the project on the organization of manufacture of dry building mixes (volume of investments - 13 mln. dollars). Now construction of 15 new hotels is conducted, 5 from which will be constructed in the Besides negotiations with other largest manufacturers of building materials are carried on. center of Tyumen, with attraction of the international operators (Radisson (SAS Residor), Domina Hotels and Resorts. Hypermarkets METRO, Lenta, Perekrestok, Mosmart, Monetka It is offered to investors: are constructed. Negotiations with companies Carrefour, Ramstor, Кastorama, IKEA are carried – organization of manufacture of brick on. – organization of manufacture of glass sheet Investors are suggested: – organization of manufacture of cement – Construction of big hotels of known brands; – organization of manufacture of roofing materials – Construction of hotel complexes; – organization of manufacture of finishing materials – Construction of hotels focused on transit flows; – organisation of manufacture of heat-insulating materials – Construction of apart-hotels; Total volume of – organization of manufacture of keramzit – Construction of motels net; investments — 350–500 – organization of manufacture of wall panels and gypsum cardboard – Construction in region of a large expocenter with millions euros – Manufacture of other materials used in construction attraction of a big international exhibition operator; – Increase of quantity and improvement of quality of sanatorium treatment and rest services granting on the basis of unique balneological resources of area. 8. Transport and logistics Development of exhibiting activities. – Construction of the logistic centers net with the area of up to 250 thousand m2 to satisfy the regional demands behind a byway with matching to federal lines. Construction of the logistic 6. Agriculture and food-processing industry centers net and invitation of big operators. As an option – Yalutorovskiy tract followed by the – Industrial butchering and cattie and pig processing way to «Vostochny obkhod » and Moskovskiy tract. Foreign and domestic partners run their and logistics complex with supplies to consumers of State support: oil business in the region in order to save their money on the customs taxes because all the the Tyumen region, KHMAD and YNAD annual volume of basic figures of the business are grouped in the Tyumen region. Besides, making Tyumen – Production of premixes and supplement feeds for the budget investments their headquarters, the producing and service companies gain easy access to the oil-and- animals is more than – gas province of Yamal, developing regions of East Siberia as well as Kazakhstan. There is a – Fish processing production 120 millions euro customs check-point «Kazanskoye» at the Kazakhstan-Tyumen boarder with the customs – Juice production and mineral water filling multilateral passage status. – Milk processing production – Development of navigation and shipbuilding on the basis of the working enterprises of the – Production of rape oil with the capacity of up to 30000 region. Development of navigation, prospecting to operate cargo flows when exploring the tons and deliveries for bio-diesel fuel production peninsula of Yamal and Yamalskiy shelf. – Manufacture of vegetable product processing, firstly In these later days, the Tyumen Region Government pays its particular attention to of potatoes (chips, mashed potatoes, etc.) implementation of investment policy and activation of external-economic activity of the region. – Other productions of food. Besides such international companies as Lukoil, TNK-BP, Gasprom, in Tyumen Region Offered projects: already started its business Schlumberger (France), Halliburton (USA), OMV (Austria), Shell – Manufacture and processing of vegetables (chips, french fries, mashed potatoes, (Netherlands-Great Britain). The Tyumen Region Government and enterprises of the region conservation and a frost of vegetables) carry on negotiations with other investors («Bentec Drilling», «Harvest Company», etc.), in the – Management of the state assets in sphere of processing of milk (Ishim) and grain nearest future opening of representative offices of major international banks: Raiffeisenbank – Construction of a factory on manufacture of bio - diesel fuel from colza and IMB is expected. In June 2006 international recruiting agency «Kelly Services» started its – Creation of manufactures on processing meat and fish activity on the territory of the region. Such companies as Schlumberger, KCA Deutag Drilling – Development of confectionery manufacture GmbH, DeLaval, Halliburton creates educational centers in Tyumen to prepare specialists in – Manufacture and processing of vegetables, including freezing accordance with highest international standards. – Manufacture of other food stuffs The Tyumen Region has a strategically important geographical position: it is situated in the center of Russian Federation, almost all strategic traffic lines, including Trans Siberian line and 7. Cluster of building construction and the industries of highways of the federal meaning cross it. Moreover, situated on the territory of the region Ob- building materials Irtysh rivers basin is the biggest in the country and has access to Kazakhstan, China and Europe (through the Northern Sea Route). The construction in Tyumen region develops rapidly. So, only on the south of area in 2006 Therefore, Tyumen Region has necessary high potential for active development of over 650 thousand sq.m. of habitation were put into service, without taking into account the shipbuilding. industrial and commercial real estate. It attracts huge demand for building materials. There Nowadays there are necessary for shipbuilding manufacturing facilities exists in the region. are the stocks of raw material necessary for manufacture of various kinds of building materials Besides that, in the region JSC «Ob-Irtysh River Shipping Company» carries out its business in the territory of our region. In 2007 turkish company Mesa Imalat will start realization of the since 1982. This company possess 47 units of self-moving dry cargo fleet with joint capacity 42 43 How to invest How to invest in the Tyumen region in the Tyumen region

over 31 thousands tons, 320 units of non-self-propelled shipping facilities with joint capacity Plan of a new factory «KROSNO» over 700 thousands tons, over 100 push tug boats. There are «river-sea» and «river-lake» motorships, which is used for export-import transportations on Baltic Sea, in Arkhangelsk, on 2. Sewing branch Kara and Caspian Seas. Since recently, Akimat of North-Eastern Kazakhstan is interested in CJSC «EVROTEX», sewing factory repairing its fleet on Tyumen enterprises. Production of finished textiles: curtain sets bed linen cushioned furniture slips Nevertheless, «Ob-Irtysh River Shipping Company» requires financial assets to renew its Demand in investments: 6 mln. euros fleet and to modernize its facilities. As well, ‘Transflot Ltd.» Company offers potential investors to participate in project, aimed at completion of 2 self-propelled river-sea tankers building. “Plushevy Ray” ltd. Investment capacity of the project is over 5 million. Children’s wear fabrication for age group of 0-5 y.e. In conditions of activation of projects aimed at development of new oil and gas fields on Childrens bed-linen fabrication Yamal peninsula and neighboring shelf it is possible to predict that in the nearest future the Demand in investments: amount of orders from oil and gas companies for cargo transportation (constructional materials, For renewal of equipment and development of production 162000 euros high-gravity oil and liquefied gas) will increase. For purchasing private production facilities. The Tyumen Region Government is quite interested in creating the high add value production For a new factory : 7,2 mil. euros of outputs on the region’s territory and is ready to consider the possibility of providing the additional guarantees and preferences in a part of the investments. Also, in accordance with the Sewing Factory «Sitzevy kray» regional legislation, investors can reckon on getting the tax privileges, subsidies, subventions, Fabrication of bed-linen, children’s wear, work clothes, knitted goods. budget credits and other types of state support. Demand in investments: – Development of the airport infrastructure with private investments and large airport For renewal and expansion of production: 80000 euros operators being attracted to develop cargo-carrying transit and cargo ways, as well as For repair of premises: 9000 euros trade and services. Development of the international airport “Rostchino”. For a new factory: 4,7 mln. euros – Attraction of a large forwarding company to provide services for production and trading companies of the Tyumen region (cargo trucking). OJSC « Yalutorovskaya sewing factory» – Construction of a ring-way «Vostochny obkhod» of 12,5 km around Tyumen. Production of winter and summer time work clothes for construction, oil and gas industry workers; 9. Cluster of tourism Fabrication of clothing for medical staff; Formation of complex tourist product Fabrication of bed-linen Stage 2 Demand in investments: Tyumen – Pokrovяskoye – Tobolsk – Abalak For renewal of equipment: 1,5 million roubles ( 44000eouros) For development of production and equipment: 6 million roubles (177000eouros). For a new Stage 1 factory: 11 million roubles (0,32 mln. euros). South direction “Ingalskaya valley” LTD «Profile», sewing factory 10. Light industry Work wear fabrication Demand in investments: Rounds in a direction hunting-fishing tourism in Nizhnevartovsk, Tobolsk, Vagaj, Yarkovo, For renewal and expansion of production: 147000 euros Viculovo, Armizone and the Kazan areas of the Tyumen area are formed. For a new factory: 10,9 mln.euros

Elaborator of the strategy: Rodl & Partner Consulting GmbH (Germany) Tobolskaya sewing factory LTD Fabrication of functional clothing for medical enterprises, builders. – Textile manufacture development Fabrication of women’s, children’s wear – Sewing manufacture development Demand in investments: – Fur manufacture development For renewal of equipment: 30000 euros – Shoe manufacture development CAD – system: 60000 euros The volume of the budget For a new factory: 2,1 mln.euros Investment priorities and projects investments is over 25 millions euros 1. Textile branch 3. Shoe branch OJSC «KROSNO», Tyumen Textile Corporation. CJSC «VOSKHOD», footwear production association Production of wool fabrics (costume, coat group). Work manufacturing. Madel footwear manufacturing. Demanding investments: Demand in investments: For renewal of equipment: 15,5 million euros For renewal of equipment: 44000 euros For operating assets: 10,9 mln. euros For development of equipment: 441000 euros

44 45 How to invest How to invest in the Tyumen region in the Tyumen region

Project “Production of multi-type bearings” 2. Setting up a computer equipment assembly enterprise with the output of 200 thousand Name of offer: establishing of multi-type bearing production computers per year and the volume of investments of 385 million roubles. Project description: One of the principal items of goods importation to the Tyumen region is Project financing is determined by the investor. importing multi-type bearings. The bearings’ area of application is diversified. Drilling equipment bearings are most largely provided and used in the oil and gas complex of the Tyumen region. Besides, bearings designated for transports, should also be included into a separate subgroup. The third subgroup contains bearings designed for operation in other economic activities. Taking into consideration high demand for the specified types of bearings, particularly for the oil and gas sector, in order to develop import-replacing manufactures and reduce transport and customs expenses, investors are suggested to set up production of multi-type bearings in the territory of the Tyumen region. Project implementation location: the project is suggested to be implemented either on the basis of operating companies (petroleum field equipment producing enterprises; Mechanitcheskiy zavod Ltd.) or at a vacant land lot with adjacent developed transport and engineering infrastructure and logistics. Sales markets: The south of the Tyumen region, the Khanty-Mansi autonomous district – Ugra, the Yamalo-Nenetsk autonomous district, Eastern Siberia – for bearings designated for oil and gas equipment and facilities. Ural Federal District, Far East, the Republic of Kazakhstan – for bearings designated for transports and for operation in a variety of economic activities. Major project activities: 1. Establishing production of high-precision ball cylinders with the volume of capital investments of 1,1 million dollars and profitability of 15%. 2. Establishing production of bearings for automobile industry with the output starting from 5 million items per year and with the volume of investments of 6 million euros and more. Project financing is determined by the investor.

Project “Production and assembly of consumer and computer equipment” Name of offer: Establishing of production or assembly of consumer and computer equipment Project description: In the Tyumen region there is an annual growth of the population paying capacity. Thus, in 2005 the average monthly salary accounted for 18 thousand roubles. Individual construction is rapidly developed in the region. Therefore, household facilities are regularly purchased for family needs as well as computer and office equipment is in demand for office and industrial use. Besides, large Russian and foreign companies, which are corporate customers of the mentioned above products (Zapsibgazprom, LUKoil, Sibnefteprovod, TNK-BP, Zapsibcombank, Salym-Petroleum and many others), operate in the region. In the Tyumen region consumer and computer equipment sales centers, supermarkets are opened at a regular basis (Big-Mag, Samsung, LG, Eldorado, Pozitronika, MIR, Technosila, etc.), larger companies dealers are actively involved (Hewlett Packard, IBM), which is indicative of a high paying capacity demand of the population and companies of the region. Investors are offered to consider an opportunity to establish production or assembly of consumer and computer equipment in the Tyumen region. Project implementation location: The project is suggested to be implemented either on the basis of operating companies or at a vacant land lot with developed transport and engineering infrastructure and logistics. Major project activities: 1. Establishing production of refrigerators, washing machines, electrical stoves, vacuum cleaners and other household equipment with the volume of investments of 4,5 million dollars and the payback time of 2 years;

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Description of the scheme № 1 of the document processing procedure when making Scheme № 1 a decision by the Investment Council about utility of granting the state support 1. Transferring the investment project to the authorized body (Department of Investment Policy and State Support of Entrepreneurship of the Tyumen Region) with corresponding documents attached; ; 2а. Registering the investment project and entering the information on this project into the register; 2b. Returning the documents for correction or registration rejection if the investment project holder submitted incomplete package of documents or provided untrue information; 3. Conducting the investment project’s branch expertise by the executive power authorities of the Tyumen region. Preparing the Finance Department’s report; 4. Drawing up of the expert opinion of the authorized body about the practicability to provide the investment project with the state support; 5. The investment project examination in the Investment Council; 6. The authorized body advises in a written form the investment project holder of the decision, adopted at the Investment Council meeting; 7а. Preparing the Investment Council’s report; 7b. Rejection to grant the state support and return of the documents or return of the documents to be corrected; 8. The Investment Council Decision (protocol), as well as all documents, attached to it, shall be transferred to the authorized body for peparing the draft of the Tyumen region Government’s decree about implementation of the state support to the investment project holder; 9. Examination of the investment project at the meeting of the Tyumen region Government; 10а. Preparing the investment draft contract (agreement) by an authorized body and its approval with the investment project holder and the executive power authorities; 10b. Rejection to grant the state support and return of the documents or return of the documents to be corrected; 11. Monitoring is executed according to the «Control procedure for achieving the coordinated rates by the Tyumen region investment project holders», adopted by the decree of the Government of the Tyumen region, dated May 30, 2005 № 44-p, and in compliance with the investment agreement clauses. An authorized governmental executive body of the Tyumen region to implement the Law of the Tyumen region, dated July 08, 2003 № 159 «About the state support of investment activity in the Tyumen region», shall be assigned with the decree dated January 17, 2005 № 2-pk «About implementation of the Law «About the state support of investment activity in the Tyumen region»

The obligatory clauses of an investment agreement between the Government of the Tyumen region and an investor:

- volume and dates of investments; - list of required rates to be achieved, confirming an economic and (or) other effect useful for the Tyumen region; - conditions and forms of the investment activity state support; - book-keeping (reporting) forms, procedure and dates to submit the accounts.

Rights and obligations of the parties, responsibility of the parties if violating the investment agreement clauses, procedure and reasons for the prior termination of the agreement, other terms shall be defined in accordance with the acting legislation.

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Scheme № 2 S cheme № 2

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Description of the scheme № 2 «Procedure for granting tax privileges in the Tyumen region» Scheme № 3

According to the Law of the Tyumen region № 33 dated April 15, 1996 «About preferential taxation in the Tyumen region», tax privileges are granted to categories of taxpayers and duty payers, registered and residing in the Tyumen region. A taxpayer and duty payer is entitled to refuse from using the privilege or suspend its usage for one or a number of tax periods. It is prohibited to fix tax privileges depending on a pattern of ownership, citizenship of individuals or assets place of origin. Tax privileges are granted for the period not exceeding one fiscal year and may be prolonged for the next fiscal year as advised by the Government of the region. The draft law about granting tax privileges to individual categories of taxpayers and duty payers for the next fiscal year is designed by an authorized governmental executive body of the region, including and taking into consideration privileging applications of taxpayers and duty payers. Tax and duty privileges are granted to organizations, having the status of a legal entity and listed in the preferential category of taxpayers and duty payers. Categories of taxpayers-enterprises, to which regional budget tax and duty privileges are granted, may be fixed according to the following factors: • type of activities they perform (type of manufactured products, rendered services, executed work); • principle of labor use of certain categories of employees; • principle of moving funds for financial support of certain branches in accordance with priorities of social and economic development of the Tyumen region; • other criteria in compliance with the laws of the Tyumen region about fixing taxes and duties or tax and duty privileges, including supplementary and/or précising criteria, determined in the third – fifth paragraphs of the present part.

In order to obtain tax privileges for the next fiscal year taxpayers and duty payers apply to the regional governmental executive body (Department of Investment Policy and State Support of Entrepreneurship of the Tyumen region), effecting coordination and regulation in the coordinate branch, and submit required motivation and documents before September 1 of the current year. (Items 1,2 of the scheme). Taxpayers and duty payers, initiating tax and duty privileging for the forthcoming year, are obliged to submit a package of documents to the regional governmental executive body for consideration. (Item 3 of the scheme). The regional governmental executive body, effecting coordination and regulation in the coordinate branch, within seven days examines the submitted documents, issues an adequate report and if the report is positive, forwards it accompanied by support documents to the regional financial authority (Finance department of the Tyumen region). (Items 4,5 of the scheme). The regional financial authority within a month examines the submitted documents and issues an adequate report. The regional Government, on the basis of reports of the regional governmental executive body, effecting coordination and regulation in a coordinate branch, and of the regional financial authority, makes a decision about inclusion of corresponding privileges to the draft law of the Tyumen region about granting tax privileges to certain categories of taxpayers and duty payers for the next fiscal year. The draft law of the Tyumen region about granting tax privileges to certain categories of taxpayers and duty payers for the next fiscal year is forwarded for approval to the Department of Federal Tax Administration of the Russian Federation in the Tyumen region. (Item 6 of the scheme) The draft law of the Tyumen region about granting tax privileges to certain categories of taxpayers and duty payers for the next fiscal year is forwarded as a part of the budget message of the Governor of the Tyumen region to the Duma of the Tyumen region for examination and adoption. (Item 7 of the scheme) The Duma of the Tyumen region in accordance with the Regulations of the Duma of the Tyumen region examines the documents, forwarded by the regional Government, and makes a decision on this issue.

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Description of the scheme № 3 of implementation of the investment project, obtaining the state support

1. In accordance with the Law of the Tyumen region dated July 08, 2003 №159 «About the state support of investment activity in the Tyumen region», the Tyumen region investment

project holders are granted the state support by the Government of the Tyumen region, S cheme № 4 which is available in the following forms: а) establishing for the Tyumen region investment project holders of a privileged taxation procedure within the sums to be enlisted to the regional budget; b) granting budgetary credits to the Tyumen region investment project holders at the cost of the regional budget funds; c) granting investment tax credits to the Tyumen region investment project holders; d) granting subventions and subsidies to the Tyumen region investment project holders at the cost of the regional budget funds; e) granting investments, implemented due to the regional budget funds and (or) the property which is in the ownership of the Tyumen region (hereinafter – state investments), to the Tyumen region investment project holders; f) organizational assistance to the Tyumen region investment project holders in the procedure for granting land lots and other immovable property objects, being in the ownership of the region; g) granting the state guaranties of the Tyumen region to the Tyumen region investment project holders.

2. The Tyumen region investment project holder enters into the agency agreement with its Agent and designates the state support funds for the project implementation;

2а. The Tyumen region investment project holder forwards monetary funds to Customers for capital construction/modernization according to concluded participatory construction site contracts and monitors application of the funds;

2b. On the basis of the contract agreements Customers transfer funds on the accounts of Contractors, executing construction modernization of investment objects.

3. Agent appropriates monetary funds to Customers for capital construction/modernization in accordance with concluded participatory construction site contracts and controls the funds’ intended application;

4. On the basis of contract agreements Customers transfer funds on the accounts of Contractors, carrying out construction/modernization of investment objects.

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Description of the scheme № 4 «Procedure for accreditation of representations and branches in the territory of the Russian Federation»

In order to complete accreditation or open a branch of a foreign legal entity in the territory of the Russian Federation it is necessary to apply to State Registration Chamber at the Ministry

of Justice of the Russian Federation (Chamber) and submit the required package of documents S cheme № 5 (3/5, Smolenskiy bd, Moscow, 119121, the Russian Federation). (Item 1 of the scheme). Within 21 working days, in the event, if there are no censures as regards the submitted documents, a Certificate of accreditation and entering into the state register of representations (branches) of foreign legal entities, accredited at the territory of the Russian Federation. The regional and municipal authority permits, in the territory of which a representation (branch) of the foreign legal entity will operate, are not required. cheme «The procedure for the state registration (incorporation) of a legal entity» for the state registration S cheme «The procedure

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Description of the scheme № 5 «The state registration of a legal entity (incorporation)»

Procedure for incorporation of a legal person is regulated by the Federal Law dated August 8, 2001 № 129-FL « About the state registration of legal entities and individual entrepreneurs». S cheme № 6 For incorporation of a legal person it is necessary to apply to the federal governmental authority at the location of a permanent executive body (for example, Director), indicated by applicants in the incorporation application. In the city of Tyumen a registering authority is Inspection of Federal tax and duty service of Russia acting in the city of Tyumen, № 3 (15, Tovarnoye highway, Tyumen) (Item 2 of the scheme). The documents are submitted directly to the registering authority or forwarded by mail. An application, submitted to the registering authority, shall be certified with the signature of an authorized person (applicant), which is subject to be notarized. In the state registration of a legal person the following individuals may act as applicants:

- manager of a permanent executive body of the legal entity under registration or any other person, entitling to act without a power of attorney on behalf of this legal entity; - a founding partner (founding partners) of a legal entity when incorporating it; - manager of a legal entity, acting as a founder of the legal entity under incorporation; - bankruptcy manager or a liquidation commission manager (liquidator) when liquidating a legal entity; - other person, acting under the authority, stipulated by the Federal Law or by an act of a purposely authorized state body, or by an act of a local self-government agency.

The document submitting date for the state registration is considered the day of receiving them by a registering authority. An applicant is issued a document receipt indicating the list and the date of receipt at the registering authority, in the event if the documents are submitted to the registering authority directly by the applicant. The receipt shall be issued the day of receiving the documents by the registering authority. The state registration is implemented within 5 working days from the date of submitting the documents to the registering authority. The state registration is considered legalized from the moment of introducing by the registering authority of the corresponding records to the Unified State Register of Legal rocedure for obtaining a building permit in the Tyumen region for obtaining a building permit in the Tyumen P rocedure Entities. The registering authority, within one working day from the date of state registration, shall issue (forwards) a Certificate of State Registration of a Legal Entity to the applicant. (Item 3 of the scheme). The registering authority, within five working days from the date of the state registration, shall provide the corresponding data to State non-budgetary funds for registration of legal entities, individual entrepreneurs as insured persons. (Item 4 of the scheme).

58 59 How to invest Appendix Appendix How to invest in the Tyumen region №1 №1 in the Tyumen region S cheme № 6 S cheme № 6

60 61 How to invest Appendix Appendix How to invest in the Tyumen region №1 №1 in the Tyumen region S cheme № 6 S cheme № 6

62 63 How to invest Appendix Appendix How to invest in the Tyumen region №1 №1 in the Tyumen region S cheme № 6 S cheme № 6

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Description of the scheme № 6 “Procedure for obtaining building permits Scheme № 7 in the Tyumen region”

Procedure of obtaining a building permit in Tyumen and the Tyumen region is established by the Town Planning Code of the Russian Federation dated December 29, 2004 N 190-FL (with revisions from July 22, December 31, 2005, June 3, July 27, December 4, 18, 29, 2006); the Law of the Tyumen region dated June 3, 2005 N 385 “About regulating the town planning activity in the Tyumen region” (with revisions from March 30, 2006); Resolution of the Government of the Tyumen region dated December 11, 2006 N 286-p “About approval of the Procedure for issuing building permits”, Decree of the Government of the Russian Federation dated December 27, 2000 N 1008 “About the procedure for implementing the state expertise and approval of the town planning, predesign plans and specifications and design documentation”; Instruction of the Administration of Tyumen dated September 20, 2005 №653-rk «About measures to execute statutes of the Town planning Code of the Russian Federation concerning building permit issuing and capital construction project commissioning» (with rev. from June 14, 2006), Resolution of the City Duma of Tyumen dated February 28, 2006 N 319 “About temporal regulations of the town planning and construction of the city of Tyumen”, Decree of the Mayor of the city of Tyumen dated May 15, 2006 N 99-rg “About organization of the town planning commission of the Administration of Tyumen” (with revisions from July 11, November 16, December 29, 2006) and other legislation. There are some peculiarities regarding the procedure for obtaining a capital and individual construction project-building permit, and also depending on the fact in which lands construction is intended to be performed. The specific feature is in the difference of the lists of documents, submitted tо obtain a building permit, that the authorities, issuing this permit, are different, and that the permit terms of validity are various too (refer to the Scheme). A capital construction project is defined as a building, a structure, works, sites, the construction of which is not completed (hereinafter – incomplete construction projects), except for temporal structures, kiosks, sheds and other similar buildings. Individual housing construction projects are defined as separately standing lodging houses with the number of floors not exceeding three, designed as one family residence areas. Town planning regulations determine established within the corresponding territorial zone types of land lot permitted use, as well as the application of all that is located over and under the surface of land lots and is used during construction and in further operation of capital construction projects; limiting (minimal and (or) maximal) dimensions of land lots and limiting parameters of the permitted construction, reconstruction of capital building sites, and limitations to the usage of land lots and capital construction projects. A building permit represents a document, certifying the compliance of design plans and specifications with the requirements of the town planning land lot scheme and entitling a building owner to perform construction, reconstruction of capital building sites, as well as their overhaul, except for the cases, stipulated by the Town planning Code. The building permit pattern is established by the Government of the Russian Federation. It is not required to issue a building permit in the following situations: 1) construction of a garage in a land lot, granted to an individual for activities, irrelative to entrepreneurship, or construction operations in a land lot, granted for keeping horticulture and summer cottage (dacha) facilities; 2) construction, reconstruction of sites, which are not considered as capital building projects (kiosks, sheds and others); 3) construction of supplementary structures and facilities in a land lot; 4) change of capital construction projects and (or) parts of them, unless such changes influence constructive and other characteristics of their reliability and safety, and exceed limiting parameters of the permitted construction, reconstruction, established by the town planning regulations; 5) other situations, if a building permit is not required in accordance with the present Code, town planning legislation of the subjects of the Russian Federation. Procedure for obtaining a building permit is presented in the scheme #4.

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Scheme № 8 Scheme № 8

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Description of the scheme № 8 «Procedure for obtaining a commissioning permit in the Tyumen region». Scheme № 9

A commissioning permit represents a document, which certifies the completion of construc- tion, reconstruction, capital construction site overhaul in the full volume and in accordance with the building permit; the compliance of the constructed, reconstructed, repaired capital con- struction project with the Town planning scheme of a land lot and design documentation. According to the Federal Law «About entering into legal force of the Town planning Code of the Russian Federation» dated December 29, 2004 г. N 191-FL before the 1st of January 2010 it is not required to obtain a permission for individual housing construction commissioning, as well as to submit such a permission for technical registration (stock-taking) of such project, and for drawing up and issuing of the project technical passport too. For commissioning a building owner addresses to the federal executive power authority, the Governmental authority of the subject of the Russian Federation or the agency of local self- government, issued the building permit, with an application to obtain a commissioning permit and a list of supporting documents (refer to the Scheme), where a check-up of availability and correctness of document drawing up is effected. The authority, issued the building permits, carries out inspection of the capital construction site (exception: when constructing, recon- structing and making overhaul of the site, state building supervision is implemented). After that an applicant is issued a commissioning permit or rejected to obtain such permission indicating the reasons of refusal. A commissioning permit (rejection to issue a permission) shall be issued within the period not exceeding 10 days from the receipt of an application. Rejection to issue a commissioning permit may be done only on the basis of part 6 of ar- ticle 55, part 18 of article 51 of Town planning Code of the Russian Federation. (Refer to the Scheme). In this case a commissioning permit shall be issued only after a building owner has eliminated violations of the requirements, fixed by the town planning legislation, or based on a judicial act, entered into legal force (in the event if rejection to issue a commissioning permit was contested in the courts). A commissioning permit is a basis for state registration of a built capital construction site, alterations to the documents of state registration of the reconstructed capital building site. A commissioning permit shall contain information on the capital construction site, required for state registration of the constructed capital building site or alterations into the documents of state registration of the reconstructed capital building site. The pattern for a commissioning permit is established by the Government of the Russian Federation. In territory of the Tyumen region the Main Administration of Construction of the Tyumen region represents an authorized governmental body to issue regional capital construction site and conversion from one category to another from L and conversion commissioning permits, where a land lot seizure for public needs is allowed; for capital con- struction sites located in land lots, which are beyond the force of town planning regulations, and for which there are no town planning regulations established. An agency of local self-govern- ment at the location of the land lot, where the site is constructed, is responsible for such activi- ties in respect to the remaining capital construction (in the city of Tyumen this is Department of Town planning Policy of the Administration of Tyumen).

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Description of the scheme № 9 «Converting lands from one category to another» Scheme № 9 Conversion of lands or land lots from one category to another is implemented under the Federal Law dated December 21, 2004 N 172-FL «About land or land lot conversion from one category to another «, Decree of the Government of the Tyumen region dated May 23, 2005 г. N 36-p «About the procedure of land or land lot conversion from one category to another « (with revisions from July 25 and September 19, 2005). In accordance with the Law of the Tyumen region dated October 05, 2001 N 411 «About the procedure of disposal and management of the state lands of the Tyumen region» an authorized governmental body of the Tyumen region, entitling to perform land conversion from one category to another, is Department of property relations of the Tyumen region (hereinafter Department). A person may apply a petition about land or land lot conversion from one category to another directly to a local self-management authority, in territory of which the corresponding lands or a land lot are located, or to Department, as well as to send it by the registered letter with notification (p.1 of the scheme).

The petition on land conversion from one category to another lists as follows (p.2 of the scheme): • land category, into which conversion is supposed to be done; • motivation of agricultural land conversion to another land category; • rights to agricultural lands, the conversion of which is supposed to be done.

The required package of documents is also attached to the petition (p. 2 of the scheme).

The person, accepted the petition, indicates the date of receipt and the incoming number on it. Department within 7 days from the date of receipt forwards the petition about land or land lot conversion from one category to another with attached documents, to a joint commission making decisions on granting and passing land lots to legal persons and citizens, which is formed in accordance with the decree of the Government of the Tyumen region (dated July 5, 2005 №99-p) (hereinafter – Joint Commission)(p. 4 of the scheme). Having considered the petition about land or land lot conversion from one category to another, Joint Commission, within a period of 1,5 month from the date the documents have been submitted to the secretary of the Commission, makes a decision about either land or land lot conversion from one category to another, or about rejection of such conversion. (p.5. 5а of the scheme). Department, on the basis of the positive decision of the Joint Commission and all submitted documents, within a week, issues a decree on land or land lot conversion from one category to another (p. 6 of the scheme). Decree on land or land lot conversion from one category to another is to contain the following information: 1) grounds for changing the land category; 2) border lines and description of land location, for land lots their square and cadastre numbers are required; 3) category of the land, conversion from which is implemented; 4) category of the land, conversion to which is implemented. Rejection to convert land or a land lot from one category to another may occur due to the following reasons: 1) limitations on conversion of lands or a land lot within these lands, fixed in accordance with Federal Laws, or prohibition of such conversion; 2) presence of a negative report of the state ecological expertise in the event if such is required by Federal Laws; 3) discrepancy of the applied purpose designation of lands or land lots with an approved

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document of the territory planning and documentation on territory planning and on organization of the use of lands or forests. Scheme № 10 The rejection is drawn up by issuing the Department’s decree (p.6а of the scheme). The governmental executive authority or the local self-government agencies, accepted the act of land or land lot conversion, forward the copy of such act, within 10 days from the date it has been accepted, to the authority, keeping the state land cadastre, for it to make revisions in state land cadastre documents within 7 days. (p.7 of the scheme). Conversion of lands or land lots within these lands from one category to another is considered completed from the date of making revisions about such conversion in the records of the Unified State Register of Rights to Immovable Property and Transactions therewith. Redrawing up of title documents for land lots, in respect to which acts on land lot conversion from lands of one category to another are accepted, is not required. A decree on land or land lot conversion from one category to another or a conversion rejection decree is forwarded by Department at the address of the person under consideration within 14 days from the date it has been accepted. onversion procedure of dwelling premises to non-living premises of dwelling premises procedure C onversion

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Scheme № 10 Explanation to the scheme № 10 «Conversion procedure of dwelling premises to non-living premises»

Procedure for conversion of dwelling premises to non-living premises is regulated by chapter 2 of Housing Code of the Russian Federation dated December 29, 2004 N 188-FL, Decree of the Administration of Tyumen dated September 9, 2005 № 598-rk « About adoption of approval procedure of reconstruction and alterations of dwelling premises, regulations about District Interdepartmental Commission…» dated July 28, 1998 № 2389. To convert dwelling premises to non-living premises an owner of adequate premises or his authorized person submits to the authority, implementing conversion of premises, a required package of documents. (Item 2 of the scheme). An authorized body, responsible for conversion of dwelling premises to non-living premises, is a self-management local authority -(Department of Town planning policy of the Administration of Tyumen). (Item 3 of the scheme). Decision about premises’ conversion or rejection of conversion is made according to the results of examination of the corresponding application and other submitted documents, by an authority, implementing premises conversion, not later than in forty days from submitting these documents to the present authority. (Item 3 of the scheme). Authority, performing premises conversion, not later than in three working days from the date the decision has been taken, issues or forwards to the applicant a decision adoption document at the address, indicated in the application. Simultaneously with issuing or forwarding to the applicant of this document, owners of the premises, attaching to the premises, in respect to which the decision is adopted, are informed of this decision. (Item 4, 4а). The document confirms completion of the premises conversion and represents basis for using the premises as dwelling or non-living premises, if for such use it is not required to reconstruct it and/or make alterations, and/or complete any other operations. If reconstruction and/or alterations of the converted premises and/or other work to provide for using such premises as non-living premises are required, the document, certifying the completion of premises conversion, should contain a requirement to perform them and a list of other operations, if they are required. After reconstruction and/or alterations have been completed, the applicant submits a package of documents to the District Interdepartmental Commission (secretary of the Commission), which acts as acceptance commission. (Item 7 of the scheme). Commission makes decisions (conclusions) within thirty days from receiving an application and other submitted documents. Decision (conclusion) of the Commission is drawn up in the form of an act. (Item 8 of the scheme).

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Scheme № 11 Scheme № 11

Procedure for the state registration of immovable property rights (ownership right, lease) (Civil Code of the Russian Federation, Federal Law «About the state registration of rights to immovable property and transactions therewith» dated July 21, 1997 №122-FL (with rev. from December 5, 2005)

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Scheme № 11 Scheme № 11

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Scheme № 11 Description of the scheme № 11 «Procedure for the state registration of immovable property rights (ownership right, lease)»

Origin of rights to immovable property, transactions therewith are regulated by the Civil Code of the Russian Federation, Federal Law «About the state registration of rights to immovable property and transactions therewith» dated July 21, 1997 №122-FL (with rev. from December 5, 2005), Decree of Ministry of Justice of the Russian Federation dated August 06, 2004 №135 «About approval of Instruction on the procedure for the state registration of immovable property lease contracts» (in the edition of Decree of Ministry of Justice of the Russian Federation dated December 24, 2004 №199) and other legislation. In accordance with the part 1 of Civil Code of the Russian Federation, we determined grounds for origin of right to immovable property ownership (refer to the Scheme). There are some limitations for ownership right possession of land lots for foreign citizens, apatrides and foreign legal entities (refer to the Scheme). Regardless the grounds of acquisition of ownership right to real estate, it is subject to the state registration in the Uniform State Register (USR) at the location of this immovable property within the registration district. Limitations (encumbrances) to immovable property rights are registered as well. A registration district means the territory, where a territorial authority of the Federal executive power body, authorized to perform operations in the field of the state registration, acts. Registration districts are organized by the Federal governmental authority, authorized to act in the field of justice. In the Tyumen region the Administration of Federal Registration Office of the Tyumen region, Khanty-Mansijsk Autonomous District and Yamalo-Nenetsk Autonomous District (hereinafter Administration) is responsible for registration of rights to immovable property and transactions therewith. A participant of legal relations in the state registration of rights to immovable property may be a foreign citizen, a stateless person, a foreign legal entity and a foreign state. To perform the state registration of rights to real estate, and transactions therewith, the state registration application of an established form as well as a package of documents in compliance with the current legislation of the Russian Federation are submitted to the registration authority. The state duty is tolled for the state registration of rights in accordance with tax laws (for procedure of registration refer to the Scheme). List of documents, required for the state registration of rights to immovable property and transactions therewith, is changed depending on the fact which right to real estate is registered, depending on the grounds of origin of the right, on the type of immovable property. In the present scheme we present a number of approximate lists of documents, which are to be submitted as supplements to the basic list, when registering the ownership right, acquired on various grounds, we define separately and describe in details the registration of immovable property lease (refer to the Scheme). The submitted documents must comply with the requirements of the article 18 of the Federal Law «About the state registration of rights to immovable property and transactions therewith» dated July 21, 1997 №122-FL (with rev. dated December 05, 2005). The procedure for the state registration of rights to immovable property and transactions therewith is presented in the Scheme. The state registration of rights may be suspended by the state registration authority where doubts in presence of grounds for the state registration of rights as well as in authenticity of submitted documents or credibility of information they contain, appear.

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Scheme № 12 Scheme № 12

Procedure for allocation of the state order in the Tyumen region (FL «About allocation of orders for goods supplies, execution of work, rendering services for the state and municipal necessities» dated July 21, 2005 № 94-FL (with rev. dated July 27, 2006)

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Scheme № 12 Description of the scheme № 12 «Procedure for allocation of the state order in the Tyumen region»

Relations regarding allocation of orders for product deliveries, execution of work, provision of services for the state or municipal demands (hereinafter allocation of order) in the Tyumen region and in Tyumen are regulated by the Federal Law «About allocation of orders for product deliveries, execution of work, rendering services for the state and municipal demands» dated July 21, 2005 № 97-FL (with rev. of July 27, 2006). This law defines a unified order allocation procedure tо ensure unity of economic area in the territory of the Russian Federation when allocating orders, to enlarge a range of opportunities for participation of legal persons and individuals in allocation of orders and stimulating such participation, to develop fair competition, to improve activities of the state authorities and local self-management bodies in allocation of orders, to provide for publicity and transparency of order allocation, to prevent from corruption and other abuses in allocation of orders. Such relations are also regulated by the Law of the Tyumen region dated March 22, 1999 № 89 (with rev. from 10.06.2005) «About the state regional food fund of the Tyumen region» and other legislation. In order to accomplish the Federal Law «About allocation of orders for product deliveries, execution of work, rendering services for the state and municipal demands» dated July 21, 2005 N 94-FL in Tyumen, based on the article 59 of the Charter of the city of Tyumen, a Decree of Administration of Tyumen dated January 27, 2006 N 73-pk was issued. It defines - Department of property relations of the Administration of the city of Tyumen as a body, authorized to perform functions to allocate orders for municipal customers and to keep the register of municipal contracts, concluded after allocation of orders (on the scheme – Customer); - Department of finances and tax policy of the Administration of the city of Tyumen as a body, authorized to fulfill control functions in allocation of orders. - The parliamentary newspaper «Tyumenskiye izvestiya» as an official printed edition for publishing information on allocation of orders. To determine an official site of the municipal formation: city district, the city of Tyumen as follows: http://www.tyumen-city.ru - for placing information on allocation of orders. The executive power body, authorized to perform control functions in the sphere of allocation of the state order of the Tyumen region, is the Committee for control in the field of allocation of the state order of the Tyumen region (hereinafter Committee), organized in accordance with the instruction of the Governor of the Tyumen region dated February 17, 2006 N 15-р. Moreover, in territory of the Tyumen region the state purchase administration of the Tyumen region (hereinafter Administration), which organizes the tendering procedure, auction, contest or quotation commissions act.

Administration carries out the following functions: 1. It puts forward suggestions to the Governor of the region and to the regional Government as regards securing and implementation of allocation of the state orders of the Tyumen region, as well as regulatory legal act drafts and regional legal acts in accordance with the acting legislation. 2. It allocates orders for goods supply (execution of work, provision of services) for the state requirements of the Tyumen region by all means in compliance with the legislation in force. 3. It makes summary accounting and registration of the state demands of the Tyumen region for planning, organizing and implementing authorities to allocate the state orders. 4. It coordinates the order allocation method with the only supplier (executor, contractor). 5. It determines the dates and the Tyumen region requirements’ order allocation methods by making a decision about allocation of an order in contests and auctions, by quotation inquiry and other methods.

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6. It makes a decision to establish contest, auction and quotation commissions, defines their - with the sole supplier (executor, contractor). The sole supplier order allocation (executor, structure, work process, and assigns the chairmen of these commissions or of the unified contractor) is a method for allocating an order, wherein the customer makes an offer to conclude commission, which carries out functions of the above mentioned commissions. state or municipal contract to only one supplier (executor, contractor). The order allocation with 7. It approves, as required, the state contracts for goods supply, execution of work, provision the sole supplier (executor, contractor) is carried out by the customer only in cases listed in the of services for the state requirements of the Tyumen region (and draft contracts). article 55 or article 55.1 of the Federal Law «About allocation of orders for goods supplies, work 8. It publishes information on the state order for goods supply, execution of work and provision execution and provision of services for state and municipal demands» dated July 21, 2005 N of services in official mass media, determined by the Government of the Tyumen region, and 94-FL. Refer to the Scheme # 15. on the site of the Tyumen region Government in accordance with the acting legislation. - at commodity exchanges – Allocation of orders for supplies of exchange goods for 9. It executes any other powers of an authorized body (customer), stipulated by the legislation public or municipal demands on the amount, exceeding five million roubles, may be done at of the Russian Federation and the Tyumen region of, except for authorities to conclude commodity exchanges. The order allocation procedure for supplies of exchange goods for contracts. public or municipal demands at commodity exchanges is determined by the Government of the Russian Federation. The subject of the state or municipal contract, concluded by the customer Accordingly as the state and municipal customers (in the table, customers) may act the with a participant of exchange trade during exchange tenders, are exchange goods supplies. governmental authorities of the Russian Federation or public power bodies of subjects of the Peculiarities of concluding the state or municipal contract during exchange tenders are defined Russian Federation and agencies of local self-government, as well as recipients of budgetary by the Civil Code of the Russian Federation, laws of the Russian Federation about commodity funds, authorized by the mentioned above public authorities or local self-government agencies exchanges and exchange trade, and requirements to the conclusion of public and municipal to allocate orders when dealing with orders for goods deliveries, execution of work, provision of contracts, established by the Federal Law «About allocation of orders for goods deliveries, services at the cost of budgetary funds. work execution, rendering services for the state and municipal demands» dated July 21, 2005 Ways of allocating the state order: N 94-FL. 1) tendering as - a contest: closed or open. Customer makes a decision to allocate the state order in the form of a contest, and a contest commission is organized. After that a notice of the forthcoming contest is published in an official printed edition (on an official site), when undertaking a closed contest such notice is not published, it is forwarded to the participants in written form. Then applications are submitted within fixed dates. Further on applications are opened, reviewed by members of the Commission, and finally a protocol on admission to the contest is drawn up. The next stage represents evaluation and collation of the contest participant applications, resulted in defining the winner (the one to whom №1 is assigned), and, as a rule, in concluding the state contract with the winner. In some cases the contest may be acknowledged as not taken place. (Refer to the Scheme # 12) - an auction (closed or open), including an electronic auction (it may be held if the contract sum does not exceed 500 thousand roubles): Customer decides on allocating the state order in the form of an auction, an auction commission is organized, followed by the procedure, similar to the contest procedure. The peculiarity is that Auction is conducted by lowering the initial contract price, indicated in the open auction notice, on an «auction step» (5% from the initial price of the contract), and a person, who offered the lowest contract price, is acknowledged as a winner of the auction. The auction is completed by concluding the state (municipal) contract with the winner (refer to the Scheme # 13) 2) without tendering - quotation inquiry - is a method for allocating an order, wherein the information on demands in goods, work, services for the state or municipal requirements is provided to a unlimited number of persons by publishing a quotation inquiry notice in an official site, and the participant in order allocation, offered the lowest contract price, is acknowledged as the winner of quotation inquiry. The customer is entitled to allocate the order by means of quotation inquiry, if the price of state or municipal contract does not exceed two hundred and fifty thousand roubles or when the auction is acknowledged as not taken place and the initial price of state or municipal contract does not exceed two hundred and fifty thousand roubles (except for allocation of state order by quotation inquiry at the territory of a foreign country or aiming at providing humanitarian aid or in order to liquidate consequences of force majeure natural or technogenic situations). The customer and authorized body are not entitled to allocate the order for similar name product delivery, execution of similar name work, provision of similar name services at the amount of more than two hundred and fifty thousand roubles, which is subject to payment quarterly, by means of quotation inquiry. The procedure for allocation of state order by price quoting is presented in the Table. (refer to the Scheme # 14)

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Scheme № 13 Scheme № 14 Procedure for allocation of the state order by means of an auction Chapter 3, FL «About allocation of orders for goods supplies, execution of work, rendering services for the state and municipal demands» dated July 21, 2005 № 94-FL (with rev. dated July 27, 2006)

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Scheme № 15 July3 ,2003 N 159

THE RUSSIANFEDERATION The Tyumen region the LAW of the TYUMEN REGION About the STATE SUPPORT INVESTMENT ACTIVITY In the TYUMEN REGION I t is accepted by regional Duma June, 24, 2003 ( in ed.of Laws of the Tyumen region Date of issue 08.12.2003 N 175, from 10.12.2004 N 289, from 04.05.2005 N 373)

Action of the changes brought in a preamble by the Law of the Tyumen region from 04.05.2005 N 373, is distributed to earlier made investment agreements, including on legal relationship, arisen from the moment of the conclusion of investment agreements.

The present Law is directed at development of investment activity in territory of the Tyumen region, in- cluding territories of autonomous regions, on increase of interest of the people who are carrying out invest- ment activity, in increase of manufacture of the goods, works and services, on activization of attraction and an effective utilization of domestic and foreign financial resources, advanced engineering, technologies and administrative experience. (in ed.of The law of the Tyumen region from 04.05.2005 N 373) The present Law defines forms of the state support of investment activity in territory of the Tyumen region, including territories of autonomous regions, and conditions of its granting by bodies of the government of the region. ( in ed.of The law of the Tyumen region from 04.05.2005 N 373) Action of the present Law is not distributed on legal rela- tionship, arised during realization of the Law of the Tyumen region “ About formation and financing of regional programs “. ( a part 3 in ed. of The law of the Tyumen region from 08.12.2003 N 175)

Chapter I. GENERAL PROVISIONS

Clause 1. It is excluded. - the Law of the Tyumen region from 04.05.2005 N 373.

Clause 2. The terms used in the Law

With a view of uniform interpretation of positions of the present Law according to the current legislation the following basic concepts are used: (in ed. of The law of the Tyumen region from 08.12.2003 N 175) The holder of the investment project - the legal or physical person registered as the individual business- man, realizing the investment project; (in ed.of The law of the Tyumen region from 04.05.2005 N 373) The holder of the investment project of the Tyumen region - the holder of the investment project who has signed with the investment agreement with the Government of the region, stipulated by the present Law, and observant to the conditions of the investment agreement; (paragraph is entered by the Law of the Tyumen region from 08.12.2003 N 175) (in ed.of The law of the Tyumen region from 04.05.2005 N 373) Investments - money resources, target bank contributions, shares, actions and other securities, tech- nologies, machines, the equipment, credits, any other property or property rights, the intellectual importance put in objects of enterprise and other kinds of activity with a view of reception of the profit (income) and (or) achievement of other useful effect; (in ed. of Laws of the Tyumen region from 08.12.2003 N 175, from 04.05.2005 N 373) The investment project - a substantiation of economic feasibility and (or) other useful effect, and also vol- ume and terms of realization of investments; (in ed. of The law of the Tyumen region from 04.05.2005 N 373) Investment activity - an investments and realization of practical actions with a view of reception of the profit and (or) achievements of other effect useful for the region; It is excluded. - the Law of the Tyumen region from 04.05.2005 N 373.

Clause 3. Investment projects of the Tyumen region

Action of the changes brought in a part 1 of clause 3 by the Law of the Tyumen region from 04.05.2005 N 373, is distributed to the investment agreements made earlier, including the legal relationship, arisen from the moment of the conclusion of investment agreements.

1. The projects providing reception economic effect, and (or) other useful for the Tyumen region and (or) autonomous region, included in its structure, effect, concern to investment projects of the Tyumen

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region (further - effect for the Tyumen region), adequate to conditions and authorized in the order which investment projects: - Taking place in a stage of liquidation or bankruptcy, and also having divisions are established by the present Law. (item 1 in ed.of the Laws of the Tyumen region from 08.12.2003 N which are in the named stages, or having the restrictions stipulated by the current legislation; ( in ed. 175, from 04.05.2005 N 373) of The law of the Tyumen region from 10.12.2004 N 289) - Having the delayed debts on earlier given 2. Objects of investment projects of the Tyumen region are anew created and (or) a modernized fixed from federal, regional or local budgets to means for a returnable basis, and also were in arrears on tax capital and (or) turnaround means in all branches and spheres of economy, securities, scientific and payments in any of levels of the budget and unappropriated state funds; - Having the delayed debts technical production, any other property, and also property rights and rights on the intellectual property. under bank credits. (item 2 in ed. of the Laws of the Tyumen region from 08.12.2003 N 175, from 04.05.2005 N 373) 3. The holder of the investment project of the Tyumen region has the right, including in case of 3. The holder (holders) of the investment project represents to the authorized agency of the government reorganization to carry out replacement of the person in the obligation according to the Civil code of of the region (further - the authorized body of the region) the investment application and the investment the Russian Federation. ( in ed. of The law of the Tyumen region from 04.05.2005 N 373) Investment project with the appendix of necessary documents in the order established by the Government of the advice considers the project of changes for working investment agreement and approves it in case the region. ( item 3 in ed. of the Laws of the Tyumen region from 08.12.2003 N 175, from 04.05.2005 N submitted documents testify to universal transition of rights and duties under the investment agreement 373) and on conformity of assignees to conditions of the present Law. In case of approval by investment 4. Investment projects are subject to the examination which is carried out by authorized body of the region advice of changes for working investment agreement, both parties sign the specified changes. ( the part for reception economic and (or) other effect useful for the Tyumen region. The positive judgement and 3 is entered by the Law of the Tyumen region from 10.12.2004 N 289) the investment project go on consideration to investment advice. ( item 4 in ed.of the Laws of the Tyumen region from 08.12.2003 N 175, from 04.05.2005 N 373) Clause 6. The investment agreement 5. The investment project with the positive conclusion of investment advice goes to the Government of 1. The investment agreement enclosed between the Government of the region and the holder of the the region for the statement. The statement of the investment project is made out by the order of the investment project after the statement of the investment project. ( item 1 in ed. of Laws of the Tyumen Government of the region and represents the coordination of the following parameters: the list of the region from 08.12.2003 N 175, from 04.05.2005 N 373) parameters describing reception economic and (or) other effect useful to the Tyumen the region, and 2. The investment agreement is in the order established by the civil legislation of the Russian Federation, forms of the state support. The holder of the investment project of the Tyumen region is obliged to and defines: - Volume and terms of investments; - The list of obligatory parameters to the achievement, provide achievement of the coordinated parameters describing reception economic and (or) other describing reception economic and (or) other effect useful to the Tyumen region; - Conditions and forms effect useful to the Tyumen region. of the state support of investment activity; - Forms of the reporting, the order and terms of its granting. The coordinated parameters can be changed under the initiative of the holder of the investment project Rights and duties of the parties, the responsibility of the parties for infringement of conditions of the of the Tyumen region or the Government of the region. Considered that parameters are changed from the investment agreement, the order and the bases of its preschedule cancellation, other conditions are moment of their statement by the Government of the region. Investment advice carries out the activity on the established according to the current legislation. ( a part 2 in ed.of The law of the Tyumen region from basis of position about the investment advice, confirmed by the Government of the region. Investment advice 04.05.2005 N 373) is formed with representatives of Tyumen regional Duma and agencies of the government of the region on an 3. Conditions of the conclusion of the investment agreement and the order of its signing are established by equal footing. ( a part 5 in ed.of The law of the Tyumen region from 04.05.2005 N 373) Investment advice car- the Government of the region according to the current legislation. ( item 3 in ed.of Laws of the Tyumen ries out the activity on the basis of position about the investment advice, confirmed by Administration of the region from 08.12.2003 N 175, from 04.05.2005 N 373) Tyumen region. Investment advice is formed with representatives of Tyumen regional Duma and Administra- tion of the Tyumen region on an equal footing. Chapter II. FORMS of the STATE SUPPORT INVESTMENT ACTIVITY Clause 4. Forms of the state support of investment activity ( clause 4 in ed.of The law of the Clause 7. Tax privileges ( in ed.of The law of the Tyumen region from 04.05.2005 N 373) Tyumen region from 08.12.2003 N 175) 1. It is excluded. - the Law of the Tyumen region from 04.05.2005 N 373. The state support of investment activity in the Tyumen region can be carried out by bodies of the govern- 2. Tax privileges can be given to holders of investment projects of the Tyumen region according to the ment of the region according to legislations of the Russian Federation and the Tyumen region in the following legislation on taxes and tax collections during validity of the investment agreement. ( item 2 in ed. Laws forms: of the Tyumen region from 08.12.2003 N 175, from 04.05.2005 N 373) a) An establishment for holders of investment projects of the Tyumen region of the preferential order of the 3. The bases, the order and conditions of application (use) by holders of investment projects of the Tyumen taxation within the limits of the sums enlisted in the regional budget; region of tax privileges are defined by the law of the region establishing the appropriate tax privileges. ( b) Granting to holders of investment projects of the Tyumen region of budgetary credits due to means of a part 3 in ed. of The law of the Tyumen region from 04.05.2005 N 373) the regional budget; 4. In case of realization of several investment projects tax privileges are given separately under each c) Granting to holders of investment projects of the Tyumen region of investment tax credits; investment project. d) Granting subventions and grants to holders of investment projects of the Tyumen region due to means 5. It is excluded. - the Law of the Tyumen region from 04.05.2005 N 373. of the regional budget; e) Granting to holders of investment projects of the Tyumen region of the investments which are carried Clause 8. Granting of budgetary credits out due to means of the regional budget and (or) the property being the property of the Tyumen region (further - the state investments); ( in ed.of The law of the Tyumen region from 04.05.2005 N 373) 1. By the government of the region budgetary credits can be given to holders of investment projects of the f) Organizational assistance to holders of investment projects of the Tyumen region at procedure of Tyumen region. ( item 1 in ed. of Laws of the Tyumen region from 08.12.2003 N 175, from 04.05.2005 N granting of the ground areas and other objects of the real estate which are taking place in the property 373) of the region; 2. The order and conditions of granting of budgetary credits from the regional budget, and also the order g) Granting to holders of investment projects of the Tyumen region of the state guarantees of the Tyumen of the control for target and an effective utilization of the given means are defined by the budgetary region. ( the item “g” is entered by the Law of the Tyumen region from 10.12.2004 N 289) ( in ed. of The legislation of the Russian Federation, normative legal acts of the Tyumen region. law of the Tyumen region from 04.05.2005 N 373) Clause 9. Granting of investment tax credits Clause 5. Conditions of the state support of investment activity 1. It is excluded. - the Law of the Tyumen region from 04.05.2005 N 373. 1. The state support of investment activity appears to the holder of the investment project under condition 2. It is excluded. - the Law of the Tyumen region from 04.05.2005 N 373. of the conclusion of the investment agreement. 3. Investment tax credits are given in the order and on the conditions stipulated by the Tax code of the 2. The state support of investment activity stipulated by the present Law, is not given to holders of Russian Federation.

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Clause 10. Subventions and grants from the regional budget ( clause 10 in ed.of The law of the Charges regarding means of the state support of investment activity should be paid for realization of the Tyumen region from 08.12.2003 N 175) investment agreement only from the specified detached bank accounts; ( in ed.of The law of the Tyumen region from 04.05.2005 N 373) 1. The government of the region has the right to give subventions and grants due to means of the regional - To give in the authorized body of region the reporting about achievement of the coordinated parameters budget to holders of investment projects of the Tyumen region according to requirements of legislations describing reception economic and (or) other effect useful to the Tyumen region, in the order, terms and of the Russian Federation and the Tyumen region. ( in ed. of The law of the Tyumen region from under forms which are established by the investment agreement. ( in ed. of The law of the Tyumen region 04.05.2005 N 373) from 04.05.2005 N 373) 2. Subventions and grants are given in the order established by the Government of the region, within the limits of the sums determined by the law of the Tyumen region about the regional budget for the next Clause 14. The control of achievement by holders of investment projects of the Tyumen region fiscal year. ( in ed. of The law of the Tyumen region from 04.05.2005 N 373) of the coordinated parameters describing reception economic and (or) other effect useful to the Tyumen region ( in ed.of The law of the Tyumen region from 04.05.2005 N 373) Clause 10.1. The state investments ( clause 10.1 is entered by the Law of the Tyumen region from 08.12.2003 N 175) The control of achievement by holders of investment projects of the Tyumen region of the coordinated parameters describing reception economic and (or) other effect useful to the Tyumen region, carries out the 1. The government of region has the right to give the state investments to holders of investment projects of authorized body of region in the order established by the Government of the region. the Tyumen region according to requirements of legislations of the Russian Federation and the Tyumen region. ( in ed.of The law of the Tyumen region from 04.05.2005 N 373) Clause 15. The discontinuance of the state support of investment activity 2. The order of granting of the state investments is established by the Government of the region according to current legislations of the Russian Federation and the Tyumen region. ( in ed.of The law of the Tyumen 1. The state support of investment activity stops in case of infringement by the holder of the investment region from 04.05.2005 N 373) project of the Tyumen region of the legislation of the Russian Federation and the legislation of the Tyumen 3. The state investments due to means of the regional budget are given within the limits of the sums region, regulating the order and conditions of granting of the state support of investment activity, and determined by the law of the Tyumen region about the regional budget for the next fiscal year. also on other bases established in the investment agreement. ( a part 1 in ed. of The law of the Tyumen region from 04.05.2005 N 373) Clause 11. Assistance to holders of investment projects of the Tyumen region at procedure of 2. The question about the discontinuance of the state support is considered by the investment advice. granting of the ground areas and other objects of the real estate ( clause 11 in ed.of The law of 3. The decision about the discontinuance of the state support is accepted by the Government of the the Tyumen region from 08.12.2003 N 175) region on the basis of the conclusion of investment advice. ( in ed. of The law of the Tyumen region from 04.05.2005 N 373) Organizational assistance to holders of investment projects of the Tyumen region at procedure of granting of the ground areas and other objects of the real estate which are taking place in the property of the region, is Clause 16. The responsibility of holders of investment projects of the Tyumen region ( clause made according to normative legal acts of the Russian Federation and the Tyumen region. 16 in ed. of The law of the Tyumen region from 08.12.2003 N 175)

Clause 11.1. The state guarantees of the Tyumen region ( clause 11.1 is entered by the Law of At non-observance of requirements of legislations of the Russian Federation and the Tyumen region, the Tyumen region from 10.12.2004 N 289) and also conditions of investment agreements, holders of investment projects of the Tyumen region bear the property and other responsibility stipulated by the current legislation and investment agreements. 1. The state guarantees of the Tyumen region according to the legislation can be given as maintenance of obligations of holders of investment projects of the Tyumen region on return of the extra money Clause 17. Coming into force of the present Law The present Law inures after its official resources involved for realization of investment activity. publication. 2. The total sum of given state guarantees of the Tyumen region is established by the law of the Tyumen region on the regional budget for the appropriate year. The Governor of the Tyumen region S.S.SOBYANIN 3. The state guarantees of the Tyumen region are given to holders of investment projects of the Tyumen Tyumen July,8,2003 N 159 region in the order established by the legislation of the Russian Federation and the Tyumen region.

Clause 12. Rendering of measures of support of investment activity by institutions of local government ( clause 12 in ed. of The law of the Tyumen region from 08.12.2003 N 175)

Institutions of local government independently define forms, conditions and the order of granting of support measures of the investment activity due to means of the local budget.

Chapter III. FINAL REGULATIONS

Clause 13. Duties of holders of investment projects of the Tyumen region ( clause 13 in ed. of The law of the Tyumen region from 08.12.2003 N 175)

Holders of investment projects of the Tyumen region are obliged: - To observe legislations of the Russian Federation and the Tyumen region; - To observe conditions of investment agreements; - To carry out the requirements showed by the state bodies which are not contradicting to norms of legislations of the Russian Federation and the Tyumen region; - To conduct the separate account of the activity concerning realization of the investment agreement; - To carry out calculations within the framework of realization of the investment agreement with use of the detached bank accounts. Subject to a direction on realization of the investment agreement of means of the state support of investment activity should be transferred to the specified bank accounts.

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REGIONAL ENERGY COMMISSION 1.2. Basic consumers, receiving electric power and generating voltage bus capacity (distributing gear) OF THE TYUMEN REGION, KHANTY-MANSIJSK AND YAMALO-NENETSK AUTONOMOUS DISTRICTS One-part tariff copeck/kVolt 63,9 63,9 63,9 63,9 ampere per hour

RESOLUTION Double rate dated October 25, 2006 N 140 - capacity fee rouble/kVolt 127,0 127,0 127,0 127,0 ampere per ABOUT ESTABLISHMENT OF TARIFFS FOR ELECTRIC ENERGY, SUPPLIED BY PROVIDERS OF LAST month RESORT, POWERSUPPLYING ORGANIZATIONS AND RETAIL SUPPLIERS TO CONSUMERS OF THE TYUMEN - energy fee copeck/kVolt 46,6 46,6 46,6 46,6 REGION, THE KHANTY-MANSIJSK AUTONOMOUS DISTRICT - UGRA AND ampere per hour THE YAMALO-NENETSK AUTONOMOUS DISTRICT IN THE ZONE OF CENTRALIZED ENERGY SUPPLY Tariffs, differentiated by day zones - night zone copeck/kVolt 31,2 31,2 31,2 31,2 In accordance with the Federal Law “About the state regulation of tariffs for electric and heat energy ampere per hour in the Russian Federation” dated April 14, 1995 N 41-FL, by the Order of Federal Tariffs Service, dated August 01, 2006 N 166-e/1 “About tariff limit scales for electric power and heat energy for the year 2007”, - midrange zone copeck/kVolt 63,9 63,9 63,9 63,9 Regional Energy Commission of the Tyumen region, Khanty-Mansijsk Autonomous District, Yamalo-Nenetsk ampere per hour Autonomous District decided of the following: 1. To establish and set in force for the year 2007 an average handling tariff for electric power, provided - on-peak zone copeck/kVolt 187,1 187,1 187,1 187,1 by suppliers of last resort, energy supplying organizations, retail suppliers, the consumers of which are ampere per hour population, to consumers of the Tyumen region, the Khanty-Mansijsk Autonomous District – Ugra and the Yamalo-Nenetsk Autonomous District in the zone of centralized energy supply, in the amount of: 93,54 2. Other consumers, including ESO (tariffs are indicated with VAT excluded) copecks/kiloVolt ampere per hour, differentiated by consumer groups, voltage levels and time zones, One-part tariff copeck/kVolt 96,5 121,2 121,5 132,1 according to the appendix. ampere per hour 2. To acknowledge as vitiated the resolution of REC, dated November 17, 2005 N 200 and the resolution of REC, dated August 11, 2006 N 60, from January 1, 2007. Double rate Chairman - capacity fee rouble/kVolt 435,4 573,7 574,9 673,5 E.I.DELOV ampere per month

- energy fee copeck/kVolt 33,2 35,9 36,3 38,0 ELECTRIC POWER TARIFFS ampere per hour FOR CONSUMERS OF THE TYUMEN REGION, Tariffs, differentiated by three day zones KHANTY-MANSIJSK AUTONOMOUS DISTRICT - UGRA AND YAMALO-NENETSK AUTONOMOUS DISTRICT - night zone copeck/kVolt 70,9 95,0 95,2 107,4 ampere per hour N Indicator (of consumer group with tariff Measuring unit Voltage range breaking up at - midrange zone copeck/kVolt 96,5 121,2 121,5 132,1 rates and day zone differentiation) ВН СНI СНII НН ampere per hour

- on-peak zone copeck/kVolt 166,2 192,6 192,8 199,3 1. Basic consumers (tariffs are indicated with VAT excluded) ampere per hour

One-part tariff copeck/kVolt 95,9 117,2 117,5 157,9 ampere per hour Tariffs, differentiated by two day zones

- day time zone from 7-00 a.m. till 11 p.m. copeck/kVolt 114,3 139,4 139,6 161,1 ampere per hour Double rate

- capacity fee rouble/kVolt 435,4 573,7 574,9 673,5 - night time zone from 11 p.m. till 7-00 a.m copeck/kVolt 70,9 95,0 95,2 107,4 ampere per ampere per hour month

- energy fee copeck/kVolt 33,2 35,9 36,3 38,0 2.1. Other consumers, receiving electric power and generating voltage bus capacity ampere per hour (distributing gear)

Tariffs, differentiated by day zones One-part tariff copeck/kVolt 63,9 63,9 63,9 63,9 ampere per hour - night zone copeck/kVolt 70,7 92,0 92,4 132,7 ampere per hour Double rate - capacity fee rouble/kVolt 127,0 127,0 127,0 127,0 - midrange zone copeck/kVolt 95,9 117,2 117,5 157,9 ampere per ampere per hour month

- on-peak zone copeck/kVolt 164,8 181,9 186,4 238,4 - energy fee copeck/kVolt 46,6 46,6 46,6 46,6 ampere per hour ampere per hour

98 99 How to invest Appendix Appendix How to invest in the Tyumen region №3 №3 in the Tyumen region

Tariffs, differentiated by two day zones Tariffs, differentiated by day zones - day time zone from 7-00 a.m. till 11 p.m. copeck/kVolt 72 72 72 72 - night zone copeck/kVolt 31,2 31,2 31,2 31,2 ampere per hour ampere per hour - night time zone from 11 p.m. till 7-00 a.m copeck/kVolt 36 36 36 36 - midrange zone copeck/kVolt 63,9 63,9 63,9 63,9 ampere per hour ampere per hour 3.2. Rural population - on-peak zone copeck/kVolt 187,1 187,1 187,1 187,1 ampere per hour One-part tariff copeck/kVolt 72 72 72 72 ampere per hour

2.2. Budgetary consumers (tariffs are indicated with VAT excluded) Tariffs, differentiated by two day zones

One-part tariff copeck/kVolt 84,0 101,3 101,5 104,9 - day time zone from 7-00 a.m. till 11 p.m. copeck/kVolt 72 72 72 72 ampere per hour ampere per hour

Double rate - night time zone from 11 p.m. till 7-00 a.m c o p e c k / k V o l t 36 36 36 36 - capacity fee rouble/kVolt 360,8 475,2 476,3 608,3 ampere per hour ampere per month 3.3. Consumers, eligible to population <**> - energy fee copeck/kVolt 24,3 27,0 27,1 29,6 ampere per hour One-part tariff c o p e c k / k V o l t 104 104 104 104 ampere per hour Tariffs, differentiated by three day zones Tariffs, differentiated by two day zones - night zone copeck/kVolt 71,9 83,6 84,2 94,4 ampere per hour - day time zone from 7-00 a.m. till 11 p.m. c o p e c k / k V o l t 104 104 104 104 ampere per hour

- midrange zone copeck/kVolt 84,0 101,3 101,5 104,9 ampere per hour - night time zone from 11 p.m. till 7-00 a.m c o p e c k / k V o l t 52 52 52 52 ampere per hour

- on-peak zone copeck/kVolt 117,2 148,2 148,6 133,9 ampere per hour Note: Tariffs, differentiated by two day zones <*> Consumers may use tariffs, differentiated by two day zones, only if adequate control instruments have been installed by March 31, 2003. - day time zone from 7-00 a.m. till 11 p.m. copeck/kVolt 92,5 113,2 113,5 115,5 <**> If a public billing meter is installed in TP 10-6/0,4 kV, electric power is supplied to consumers, eligible ampere per hour to population group, with a 12% discount.

- night time zone from 11 p.m. till 7-00 a.m copeck/kVolt 71,9 83,6 84,2 94,4 ampere per hour

2.3. For production demands of agriculture and consumer cooperation organizations

One-part tariff copeck/kVolt 85,4 85,4 85,4 85,4 ampere per hour

3. Population and consumers, eligible to population (tariffs are indicated with VAT included)

3.1. Urban population

3.1.1. Population, residing in buildings, equipped with gas stoves

One-part tariff copeck/kVolt 104 104 104 104 ampere per hour

Tariffs, differentiated by two day zones

- day time zone from 7-00 a.m. till 11 p.m. copeck/kVolt 104 104 104 104 ampere per hour

- night time zone from 11 p.m. till 7-00 a.m copeck/kVolt 52 52 52 52 ampere per hour

3.1.2. Population, residing in buildings, equipped with fixed electric hot plates and electric heaters, as required

One-part tariff copeck/kVolt 72 72 72 72 ampere per hour

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GOVERNMENT OF THE TYUMEN REGION REGULATION Engineerservice Ltd. 22,11 dated December 20, 2006 N 1400-rp Communalnoye khozyastvo Ltd. 21,74

ABOUT MAKING REVISIONS TO DECREE DATED MAY 24, 2006 N 504-RP 9 Kazanskiy municipal district Municipal Unitary Enterprise of 14,80 Communal Services of Kazanskiy district In accordance with the item 1 of the article 14 of the Federal Law dated December 30, 2004 N 210-FL «About basics for regulating the tariffs of the utilities complex organizations» (in the edition dated December 10 Nizhnetavdinskiy municipal district Municipal Unitary Enterprise 13,14 of Communal Services of RMF 26, 2005) the following revisions shall be made to the decree of the Government of the Tyumen region dated Nizhnetavdinskiy district May 24, 2006 N 504-rp «About limit pay tariffs for water supply and water disposal services, provided by organizations in the territory of the Tyumen region»: 11 Omutinskiy municipal district Municipal Unitary Enterprise of 9,79 Communal Services «Vagajskiy 1. Appendix to the decree to be read restated according to the present regulation’s appendix. comkhozservice» 2. The present regulation shall inure in one calendar month after it has been adopted. 12 Sladkovskiy municipal district Municipal Unitary Enterprise of 13,03 Communal Services «Sladkovskoye» The Governor of the region V.V. YAKUSHEV 13 Tobolskiy municipal district Municipal Unitary Enterprise 14,33 Bajkalovskiy KKP

Municipal Unitary Enterprise of 14,20 Communal Services «Bizinskoye»

14 Uporovskiy municipal district Municipal Unitary Enterprise «District 13,57 Appendix to Communal Services» the regulation of the Government 15 Urginskiy municipal district Department of Communal Services, 8,67 of the Tyumen region gasification, construction, transport dated December 20, 2006 N 1400-rp and communications

16 Yalutorovskiy municipal district OJSC «Service-Communal Services» 9,05 Limit pay tariffs for water supply and water disposal services, provided by organizations in the territory of the Tyumen region 17 Yarkovskiy municipal district Municipal Enterprise of Communal 8,38 Services «Yarkovskoye»

Municipal Enterprise of Communal 10,06 N b/o Name of municipal formation Name of utilities complex Limit pay tariff, Services «Guylevo» organization rouble/m3 (VAT excluded) Network water disposal Water supply 1 Tobolskiy municipal district Municipal Unitary Enterprise of 28,04 1 Aromashevskiy municipal district Spetzteploservice Ltd. 15,54 Communal Services «Bizinskoye»

2 Berdjuzhskiy municipal district Municipal Unitary Enterprise 14,27 Discharge water disposal «Selcomkhoz» 1 Berduzhskiy municipal district Municipal Unitary Enterprise 34,22 3 Zavodoukovskiy municipal district Zhilservice Ltd. 14,60 «Selkomkhoz»

4 Vagajskiy municipal district Municipal Unitary Enterprise of 14,07 2 Nizhnetavdinskiy municipal district Municipal Unitary Enterprise 32,66 Communal Services «Chernoye» of Communal Services of RMF Nizhnetavdinskiy district Municipal Unitary Enterprise of 13,56 Communal Services «Tukuz» 3 Yalutorovskiy municipal district OJSC «Service-Communal Services» 25,32

5 Vikulovskiy municipal district Municipal Unitary Enterprise of 16,35 4 Yarkovskiy municipal district Municipal Enterprise of Communal 23,59 Regional Communal Services Services «Guylevo» «Vikulovskoye»

6 Golyshmanovskiy municipal district Department of Communal Services, 16,98 gasification, construction, transport and communications of the Administration of Golyshmanovskiy municipal district Limit pay tariffs for water supply and water disposal services, provided by the Tyumen electric networks of OJSC «Tyumenenergo» in the territory of the Tyumen municipal district 7 Issetskiy municipal district Municipal Enterprise of Communal 16,72 Services «Irium»

Municipal Enterprise of Communal 16,72 N Name of Municipal Formation Limit pay tariff in roubles and copecks per m3 Services «Zaretchie» (VAT excluded

Municipal Enterprise of Communal 16,72 Water supply Water disposal Services «Arkhangelskoye» 1 Municipal formation Borkovskoye 11,23 32,27 8 Ishimskiy municipal district Municipal Unitary Enterprise 21,87 «Communalschik» 2 Municipal formation Embayevskoye 12,28 41,54

Individual Entrepreneur 21,70 3 Municipal formation Sozonovskoye 18,06 29,32 N.P. Fomin

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Limit pay tariffs for water supply and water disposal services, provided by subdivisions of Ishim, 1.1 Equipped with bathes, showers, wash-stands and washers: Tobolsk and Tyumen offices of oil-trunk pipelines of OJSC «Sibnefteprovod» - with centralized hot water supply 8,213

Name of subdivisions Limit pay tariff in roubles and -with quickly operating gas water heaters, equipped with multipoint hot 6,083 copecks per m3 (VAT excluded) running water indoor meter

Water supply Water disposal - with gas and electric water heaters 6,083

Ishim office of oil-trunk pipelines: - with solid fuel water heaters 4,563

1. Oil pumping stationVagaj, Vagajskiy district 6,48 - - gas supply buildings 4,563

2. Oil pumping station Novopetrovo, Aromashevskiy district 8,53 - - buildings without gas services and water heaters 4,563

3. Oil pumping station Voznesenka, Sorokinskiy district 8,94 12,15 1.2 With hip bathes, equipped with a shower, wash-stands and washers:

4. Oil pumping station “Abatskaya”, Abatskiy district 7,42 - - with centralized hot water supply 7,604

Tobolsk office of oil-trunk pipelines: - with quickly operating gas water heaters, equipped with multipoint hot 6,083 running water indoor meter 1. Linear operating dispatcher station “Setovo”, Tobolsk district 11,73 10,35 - with gas and electric water heaters 5,475 2. Linear operating dispatcher stations “Demyanskoye” and “Uvat”, Uvatskiy 8,36 6,62 district - with solid fuel water heaters 4,563

3. Linear operating dispatcher station “Mugen”, Uvatskiy district 8,09 17,03 - buildings with gas services 4,258

Tyumen office of oil-trunk pipelines : - buildings without gas services and water heaters 4,258

1. Linear operating dispatcher station “Torgili”, Nizhnetavdinskiy district 8,48 11,82 1.3 With a shower, wash-stands, washers; without bathes: - with centralized hot water supply 6,388

Note: - with quickly operating gas water heaters, equipped with multipoint hot 5,475 1. Limit pay tariffs, presented in the abovementioned tables, are considered weighted mean (final rates) and calculated as running water indoor meter с quotient of required gross revenues of the utilities complex organization for the regulation period and of the corresponding productive supply (drainage liquid withdrawal) to all consumer groups. - with gas and electric water heaters 5,171 2. Specified amounts of tariffs for water supply and water disposal are established by the utilities complex organizations managers, on the basis of the limit pay tariff data, depending on the technological cycle (and other factors), and are declared - with solid fuel water heaters 4,258 in the Department of Tariff and Pricing Policy of the Tyumen region. - buildings with gas services 3,042

- buildings without gas services and water heaters 3,042

Water supply and water disposal tariffs 1.4 With wash-stands, washers; without bathes and a shower: - with centralized hot water supply 4,563

Name of a service For domestic needs of population For enterprises and organizations - buildings with gas services 2,433 rouble/cub. m (VAT included) rouble/cub.m (VAT included) - buildings without gas services and water heaters 2,129 Water supply Water supply 2 Hostels: Village of Antipino 7,61 17,17 2.1 With a shower or bathes in all habitual rooms, with centralized hot water 6,996 Village of Utyashevo 5,78 13,05 running supply

Water disposal 3,37 7,50 2.2 With common kitchens and shower room blocks on floors at habitual rooms 4,867 in each section of a building, with centralized hot water running supply

Note: 2.3 With common shower rooms, with centralized hot water running supply 3,042 1. Water consumption is defined by the readings of water meters or water consumption standards, approved by the Administration of the city of Tyumen. 2.4 With water line and sewage; without shower rooms: 2. Volume of effluents, disposed from a subscriber to the sewage system, is accepted as either equal to the quantity of consumed water, or is defined by calculation. - with centralized hot water running supply 1,825 - without gas supply and water heaters 2,129 Water consumption standards for settlements with population 2.5 With common washing rooms 1,825

B Buildings with water line without sewage, without gas services and water 1,004 № b/o Comfort degree of dwelling buildings Monthly average volume of water heaters consumption, м3/person C Buildings with sewage without water line (if any other water supply resource 1,004 А Dwelling buildings with water supply line and sewage is absent), without gas services and water heaters

1 Appartment type dwelling buildings (boarding-houses) or individual D Buildings without sewage with water consumption out of water pumps, 0,715 appartments: without gas services and water heaters

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Infrastructure of governmental authorities and local self-government agencies, Department of tariff and price Director Sergey V. Evko 24, Respubliki st., Tel. : (3452) participating in the support of investment activity and entrepreneurship policy of the Administration of Tyumen, 625003 46-51-24, in the territory of the Tyumen region the Tyumen region 46-91-22, Tel./fax: (3452) 46-52-09 № The name Post Surname, name, The address Phone b/o patronymic Economics Department of the Director of the Oleg V. Zaruba Tel. : (3452) of the official Tyumen region Department 45-34-01, Tel./fax: (3452) Government of the Tyumen Governor Vladimir V. 45, Volodar- Tel/fax: 45-34-00 region Yakushev skogo st., Tyumen, (3452) 46- 625000 55-42 Economics Department of the Deputy director of Alexey N. Yanin Tel.: (3452) Tyumen region the Department 46-84-91 Government of the Tyumen Deputy governor Alexander V. 45, Volodar- Tel.: (3452) region Moor skogo st., Tyumen, 46-17-88, 625000 Fax: 46- Economics Department of the Head of branch Andrey A. Tel.: (3452) 93-52 Tyumen region and territory Besschastnov 46-66-86 development de- partment Government of the Tyumen Deputy governor Sergey A. 45, Volodar- Tel.: (3452) region Degtyar skogo st., Tyumen, 46-92-30 625000 Department of education and Director of the Irina N. Lyssakova 49, Volodar- Tel. : (3452) science of the Tyumen region Department skogo st., 24-14-03, Tyumen, 625000 Tel./fax: Government of the Tyumen Deputy governor Natalia A. 46, Volodar- (3452) [email protected] (3452) region Shevchik skogo st., Tyumen, 46-58-51, men.ru 24-14-95, 625000 т/ф.(3452) 24-68-66 46-50-40 Department of social develop- Director of the Olga A. 83a, Respubliki st., Tel.: (3452) Government of the Tyumen Deputy governor Sergey M. 47, Volodar- Tel. : (3452) ment of the Tyumen region Department Kuznechevskikh Tyumen, 625048 44-21-58, region Sarychev skogo st., Tyumen, 46-42-53, [email protected] Tel./ 625000 Tel./ fax:(3452) fax:(3452) 44-21-68 46-54-80 Finance Department of the Tyu- Deputy governor, Tatiana L. Krupina 17, Sakko st., Tel. : (3452) The Tyumen regional Duma Chairman Sergey E. Kore- 52, Respubliki st., Tel.: (3452) men region Director of the Tyumen, 625002 45-33-46, panov Tyumen, 625018 45-52-08, Department [email protected] Tel./ 45-50-81 fax:(3452) 45-33-16, The state purchase Administra- Head of Adminis- Sergey S. Solo- 24, Respubliki st., Tel.: (3452) 45-33-43 tion of the Tyumen region tration viyov Tyumen, 625003 45-66-36, 45-15-35, Finance Department of the Tyu- Deputy director of Irina A. Zayeva 17, Sakko st., Tel.: (3452) 45-33-90 men region the Department Tyumen, 625002 46-41-23 [email protected] Department of Investment Policy Director Vadim M. 24, Respubliki st., Tel.: (3452) and State Support of Entrepre- Shoomkov Tyumen, 625003 29-63-17, Main Administration of Construc- Head of the Sergey A. Ko- 11, Nekrasova st., Tel.: (3452) neurship of the Tyumen region fax: 29-65-05 tion of the Tyumen region Administration robov Tyumen, 625000 40-00-50, [email protected] 24-75-73 Department of industry, invest- Director Tamara V. 1, 8 March st., Tyu- Tel.: 23-03- ment and forestry of the Tyumen Medvedeva men, 625000 19, Tel/fax Main Administration of the Tyu- Head of the Almaz R. Zakiyev 143, Respubliki st., Tel.: (3452) region : (3452) men region, Administration of Administration Tyumen, 625026 32-08-71, 23-03-71, automobile roads of the Tyumen Offices: 305-307 Fax: 23-02-92, region 75-72-59 23-05-57, Tel./fax: (3452) 23- Main Administration of Federal Head of the Alexander A. 42, Lunachar- Tel.: (3452) 07-12, Registration Department in the Administration Odintsov skogo st., Tyumen, 24-23-00, 23-05-37 Tyumen region, the Khanty- 625048 Tel./fax(3452) Mansijsk and Yamalo-Nenetsk 43-43-18 Autonomous Districts Department of strategic develop- Director Victor V. Savran- 24, Respubliki st., Tel. : (3452) ment of the Tyumen region skiy Tyumen, 625003 46-50-64, Tel./fax: Administration of Federal Tax De- Head of the Anatoliy N. 15, Tovarnoye Tel.: (3452) (3452) 46-51- partment in the Tyumen region Administration Oksyuk shosse st., Tyu- 49-20-05, 04, 46-51-94, men, 625009 49-20-08, 46-50-59 Tel./fax: (3452) 45-61-90 Department of property relations Director of the Eugeniy G. 45, Volodar- Tel. : (3452) of the Tyumen region Department of Nesvat skogo st., Tyumen, 46-17-88, property relations 625000 46-39-33, Main Administration, The Pen- Manager Ivan F. Nekrassov 83, Respubliki st., Tel.: (3452) Tel./fax: sion Fund Division of the Russian Tyumen, 625048 44-21-50, (3452) 46- Federation in the Tyumen region Office 511 46-57-68 93-52 Main Administration, Administra- Head of the Vyacheslav F. 115, Moskovskiy Tel.: (3452) Department of property relations Deputy director of Natalya A. Grado- 48, Volodar- Tel.: (3452) tion of the Pension Fund of Administration Kasheyed tract st., Tyumen, 30-71-52, of the Tyumen region the Department boyeva skogo st., Tyumen, 46-62-41 the Russian Federation in the 625049 Office 205 30-45-12 625000 Tyumen district of the Tyumen region Department of property relations Deputy director Alexey I. 48, Volodar- Tel.: (3452) of the Tyumen region, Adminis- of the Depart- Sookhoroslov skogo st., Tyumen, 46-25-94, The State Statistics Federal Acting manager Nadezhda F. 76, Lenina st., Tel. : (3452) tration of Land resources at the ment of property 625000 46-26-58 Department Territorial body in Menova Tyumen, 625000 46-59-92, Department of property relations relations of the the Tyumen region [email protected] Tel./ of the Tyumen region Tyumen region fax:(3452) 46-50-68

106 107 How to invest Appendix Appendix How to invest in the Tyumen region №3 №3 in the Tyumen region

Federal Tax Department Inspec- Manager Svetlana I. 15, Tovarnoye Tel.: (3452) Hygienic and epidemiological Chief doctor Uriy V. 57, Kholodilnaya Tel.: (3452) tion № 4 in the city of Tyumen Serkova shosse st., Tyu- 29-61-06, Center in the Tyumen region Ustjuzhanin st., Tyumen, 20-50-06, men, 625023 29-61-10, 625048 20-43-95, 29-61-27, 20-72-93, 29-61-25 32-24-18 Federal Tax Department Interdis- Manager Svetlana M. 15/2, Tovarnoye Tel. : (3452) Territorial Administration of Rus- Manager Galina V. 45a, Rizhskaya st., Tel./fax: trict Inspection № 5 dealing with Zakharova shosse st., Tyu- 29-62-06, sian Consumer Inspection in the Sharukho Tyumen, 625026 (3452) 20- biggest taxpayers in the Tyumen men, 625023 Tel./ Tyumen region 88-24 region fax:(3452) 29-62-07 Main Administration, Ministry Head of the Victor B. Chip- 72, M, Gorkogo st., Tel. : (3452) of Emergencies of Russia in the Administration chay Tyumen, 625048 24-56-24, Federal Tax Department Inter- Manager Tamara A. Zykova 54, Malyghina st., Tel. : (3452) Tyumen region Tel./ district Inspection № 6 in the Tyumen, 625048, 40-48-49, fax:(3452) Tyumen region Tel./ 59-05-10 fax:(3452) 40-35-94, Fund of development and sup- Director Gennadiy A. Khokhryakova st., Tel.: (3452) 40-49-68 port of entrepreneurship in the Markov Tyumen 625000 46-57-52 Tyumen region Main Administration, Administra- Head of the Larissa I. Dor- 78, Lenina st., Tyu- Tel. : (3452) tion of Pension Fund of the Rus- Department okhina men, 625000 75-70-14, Duma of the city of Tyumen Chairman Sergey M. 20, Pervomay- Tel.: (3452) sian Federation in the Kalininskiy 75-70-12 Medvedev skaya st., Tyumen, 24-74-14, district of Tyumen 625000 Office 821 Fax: 24- 69-37 Main Administration, Administra- Head of the Tatiana A. 83, Respubliki st., Tel.: (3452) tion of Pension Fund of the Rus- Department Grudeva Tyumen, 625048, 39-08-66, Administration of Municipal For- Mayor of Tyumen Sergey I. Smetan- 20, Pervomay- Tel.: (3452) sian Federation in the Leninskiy office 505 39-08-71, mation, the city of Tyumen juk skaya st., Tyumen, 46-42-72, district of Tyumen 39-90-70 625000, Office 805 Fax: 45-53-51 Main Administration, Administra- Head of the Margarita V. 78, Lenina st., Tyu- Tel.: (3452) tion of Pension Fund of the Rus- Department Babushkina men, 625000 39-00-83 sian Federation in the Centralny district of Tyumen Administration of Municipal For- Deputy mayor on Andrey U. Nikitin 20, Pervomay- Tel.: (3452) mation, the city of Tyumen construction skaya st., Tyumen, 46-13-44 Main Administration, Tyumen Manager Sergey A. Pes- 16, Irbitskaya st., Tel.: (3452) 625000, Office 510 regional division of Social sotskiy Tyumen, 625001 34-29-44, Insurance Fund of the Russian 22-11-92 Department of property relations Director of the Peter M. Dorosh 20, Pervomay- Tel.: (3452) Federation of Administration of Tyumen Department of skaya st., Tyumen, 24-32-63, property relations 625036, Office 413 24-24-47, State Enterprise Tyumen Head Boris A. Yasjkov 58A, Kholodil- Tel.: (3452) 46-12-41, Customs naya st., Tyumen, 25-22-46 46-49-17 625048, Office 212

Department of Town planning Manager of the Valeriy I. Borissov 74, Melnikajte st., Tel.: (3452) Tyumen Department of Federal Manager Vassiliy A. Gor- 58A, Kholodil- Tel.: (3452) and organization of public Department Tyumen, 625048, 20-70-60, services of the Administration Office 222 Fax: Anti-monopoly Service in the bunov naya st., Tyumen, 25-21-02, of Tyumen 20-20-18 Tyumen region (FAS) 625048, Office 412 Fax: 32-27-63

Town Planning Policy Depart- Director of the Andrey G. Spiri- 69a, Lenina st., Tel. : (3452) Tyumenvodocanal Ltd General Director Vitaliy S. 31, 30 let pobedy Tel.: (3452) ment of the Administration of Department donov Tyumen, 625000, 46-90-86, Bogatchov st., Tyumen, 35-73-09, Tyumen [email protected] Tel./ 625007 Fax: 33-80-92 fax:(3452) 46-90-27 OJSC «Tyumenenergo» (subsidi- Director Andrey A. Snis- 44, Daudelnaya st., Tel.: (3452) ary) sarenko Tyumen, 625002 79-13-50, Economics Department at the Director of the Sergey G. Gor- 20, Pervomay- Tel.: (3452) 79-13-59, Administration of Tyumen Department batchov skaya st., Tyumen, 45-50-33, 625036 Tel./ 46-12-91, fax:(3452) fax: 24-05-73 24-65-26 CJSC «Polystamp-N» (stamp Director Pavel M. 175/1, Respubliki Tel.: (3452) MU Department of finances and Director of the Galina M. 20, Pervomay- Tel.: (3452) manufacturing) Chemyakin st., Tyumen, 32-08-96, tax policy of the Administration Department, Kulachenko skaya st., Tyumen, 24-33-58, 625000 32-15-23 of Tyumen Deputy mayor 625036 24-79-69 Tyumen trade company Ltd. Director Sergey V. 2, Kurskaya st., Tel.: (3452) Federal Tax Department Inspec- Manager Gennadiy I. 47, Khokhryakova Tel./fax:(3452) (stamp manufacturing) Stepanov Tyumen, 625048 26-69-47, tion № 1 in the city of Tyumen Egorov st., Tyumen, 24-48-22, fax: 26-67-95 625000, 25-03-18, i723000@r72. 24-58-89, nalog.ru 24-17-70, Can-Terria Ltd. (stamp manu- Director Oleg N. Lagunov 6/1, Fedorova st., Tel.: (3452) 24-23-73, facturing) Tyumen, 625007 32-51-91, 24-52-15 26-88-44

Federal Tax Department Inspec- Acting manager Uriy P. Efremov 15, Tovarnoye Tel. : (3452) tion № 2 in the city of Tyumen shosse st., Tyu- 29-60-06, men, 625023 Tel./ fax:(3452) 29-60-80

Federal Tax Department Inspec- Manager Ljudmila P. Pon- 15, Tovarnoye Tel.: (3452) tion № 3 in the city of Tyumen omaryova shosse st., Tyu- 79-23-00, men, 625023 T/f: 79-23-33

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