THE ORENBURG REGION ENERGY OF OPPORTUNITIES 2 General information The Orenburg region is the «trading window» from Europe to Asia Norway

Finland The shortest trading route Sweden from Moscow to China Helsinki Stockholm Saint-Petersburg through Orenburg – 4 422 km Estonia Latvian Ekaterinburg through Zabaikalsk – 6 641 km Copenhagen Moscow Novosibirsk Lithuania Kazan Minsk

Berlin Belarus Irkutsk Germany Warsaw Kiev Entry to Central Asia market Czech RepublicPoland Ukraine Over the past 5 years, the export Austria Kazachstan Ulaanbaatar has grown by: Mongolia Europe › to China – 2,5 times Rome Georgia Uzbekistan 3 days Azerbaijan Tashkent Kyrgyzstan Beijing China › to India – 11% Turkey Turkmenistan Tianjin Ashgabat Kyrgyzstan Kabul Syria Iran Afghanistan 3 days Amman Iraq Tripoli Cairo Transit potential Jordan Iran New Delhi 3 days Nepal More than 600 thousand trucks Libyen Butane Egypt Uzbekistan Doha China pass through the Orenburg Er-Riad UAE India 2 days Bangladesh 4 days Saudi Arabia region of the Russian-Kazakh Myanmar Oman Mumbai Chad Sudan India Yangon border annually Khartum Yemen Eritrea 6 days Bangkok N'djamena Thailand Vietnam Nigeria Cambodia Addis Ababa Somalia CAR Southern Sudan Ethiopia Sri Lanka 3 General information The Orenburg region on the map of Russia

GTM + 05:00 Orenburg 123,7 km2 2 mil. people 72 years time zone regional center total area population average life span

Petrozavodsk bln. ₽ 1 006,4 2018 823,9 2017 Vologda 765,3 2016 Kirov Perm 775,1 2015 Rybinsk Nishnij Tagil YaroslavlKostroma 2,2 times 731,3 2014 Yekaterinburg Tyumen Tver Ivanovo Nizhny Izhevsk 717,1 2013 Novgorod GRP growth in 2 hours Yoshkar-Ola 2010-2018 628,6 2012 Cheboksary Kazan Moscow 20 hours Chelyabinsk Kurgan 553,3 2011 Nizhnekamsk Ufa 25 hours 458,1 2010 Kaluga Petropavl Tula Ulyanovsk Sterlitamak Kostanai Penza Tolyatti Magnitogorsk Tambov % % Lipetsk Samara 103,2 3,7 Saratov Industrial Unemployment Voronezh Kursk Orenburg production index rate

Uralsk Aktobe 211,7 bln. ₽ 32 883 ₽

Volgograd Fixed capital Average 56 mil 1 expenditure wage people live within a radiusRostov- on-Don Atyrau mil. people of 1 000 km from the 1 2 $ bln. Orenburg region Working-age External Krasnodar Qysylorda population turnover Novorossiysk 4 General information The Orenburg region is an active actor in the world trade

1 715 $ mil. 86 % 2 002 $ mil. 14 % 287 $ mil. export export share external turnover import share in import in turnover turnover Extensive geography of trading partner countries ТОP-5 commodity groups of trading flows

ITALY UNITED STATES KAZAKHSTAN EXPORT STRUCTURE 733 $ mil. 760 $ mil.

47 $ mil. 303 294 219 34 $ mil. 40 $ mil. $ mil. $ mil. $ mil. basic products basic products basic products food products, plant chemical industry metals and metal mineral metals metals minerals beverages products products products products (2%) (2%) (3%) (43%) (44%)

114 $ mil. BELARUS UZBEKISTAN CHINA IMPORT STRUCTURE

48 $ mil.

38 $ mil. 185 109 98 15 $ mil. 17 $ mil. $ mil. $ mil. $ mil. basic products basic products basic products mineral plant metals and metal plastics, machinery, minerals plastics metals products products products rubber equipment (5%) (6%) (13%) (17%) (40%) 5 General information The Orenburg region is the choice of Russian and foreign companies

Denis Pasler LocoTech Governor of the Orenburg region ZHELDORMASH ORENBURG MINERALS

URAL Investment projects in STEEL the Orenburg region will meet full support at all levels of government, and business initiatives will be implemented in a reliable economic atmosphere RMK ORMET

NMGK COMPOSITE more than 450 companies GROUP OF COMPANIES GROUPS on the territory of the region are doing business with foreign investments RUSSALT

BANK FOR VEB DEVELOPMENT 6 General information The Orenburg region economy in figures

Agriculture Oil and gas Mining

6,1 mil. hectares 5,4 % 500 $ bln. Agricultural land’s area Share of Russian oil ang gas reserves Valuation of field reserves

The Orenburg region takes the 3rd place in The oil and gas is the basis of the raw The Orenburg region has a rich resource Russia in terms of agricultural land’s area, which materials economy in Russia. 3,7% of base. There are more than 2500 provides the 1st place for the gathering of hard Russian oil and 2,5% of Russian gas are reserves of 75 types of minerals. The wheat, melons and gourds, as well as the producing in the Orenburg region. East of the Orenburg region is the 3rd place for the gathering of sunflowers. The Orenburg gas and helium processing plants center of the metallurgical and mining Orenburg region is also takes the 7th place for are the largest gas chemical complex in industries cattle population among Russian regions (543 th. Europe heads) 7 Agriculture Agriculture is a priority economic sector

12,4 mil. hectares 6,1 mil. hectares 39 3,4 mil. tons 735 ths. people total lands area agricultural land area elevators storage capacity per year rural population hard wheat crop harvesting 1 among Russian regions place 260 ths. tons per year melons and gourds crop harvesting 1 among Russian regions place 800 ths. tons per year sunflowers crop harvesting 3 among Russian regions place 1 293 ths. tons per year cattle population 7 among Russian regions place 543 ths. heads AGRO 8 Agriculture Plant production in figures

Whole yield of oil-bearing and grain crops Consumption of plant products

Within the region Export from the region

533 ths. tons per year 1 900 ths. tons per year 750 ths. tons per year 250 sunny days oil-bearing grain crops oil-bearing a year

sunflower 369 mm 1 293 rye annual rainfall ths. tons 194 ths. tons hard wheat 260 crown flax barley 1 450 ths. tons per year 450 ths. tons per year 1 900 ths. tons per year 12 ths. tons foody seed grains grain crops ths. tons 554 oat Agricultural land distribution ths. tons 95 soft wheat ths. tons 6,1 mil. hectares 4,0 mil. hectares 0,7 mil. hectares agricultural land range areas hay harvesting 2 455 maize grain legumes ths. tons 81 60 ths. tons ths. tons Use of agricultural lands

2,8 mil. ha corn 0,9 ths. ha sunflowers 1 305 120,8 3 699 whole yield whole yield 0,9 ths. ha fallows ths. tons тыс. тонн ths. tons of oil-bearing of grain crops 0,8 mil. ha non-used 0,7 ths. ha grass plants and others 9 Agriculture Processing of plant products

General processing of grain crops General processing of oil-bearing crops

1 150 ths. tons per year 533 ths. tons per year

flour, flour-based food all-mash grain vegetable oil sunflower meal lecithin 227 167 19,6 229 213 1,4 ths. tons per year ths. tons per year ths. tons per year ths. tons per year ths. tons per year ths. tons per year

Russian market Russian market Russian market Russian market The good is exporting 21 ths. tons per year The product is The product is 99 ths. tons per year 126 ths. tons per year outside the region consuming within consuming within export the region the region export export export

3,2 ths. tons per year 130 ths. tons per year 57 ths. tons per year 1,4 ths. tons per year

sales outside the Orenburg region 10 Agriculture The Orenburg region stock raising

Poultry population Cattle population Sheep population Pig population 7 309 543 306 267 ths. heads ths. heads ths. heads ths. heads

** ** ** ** 5 707 256 222 145 ACO PSF PSF ACO ths. heads ths. heads ths. heads ths. heads 1 568 188 67 101 PSF ACO PF PSF ths. heads ths. heads ths. heads ths. heads 34 99 17 22 PF PF ACO PF ths. heads ths. heads ths. heads ths. heads

meat production meat production meat production*** meat production 62,8 ths. tons/per year 83,4 ths. tons/per year 8 ths. tons/per year 53,6 ths. tons/per year

egg production milk production wool production 1 023,5 mil.items/per 636,8 ths. tons/per year 0,5 ths. tons/per year year *** live weight

** PF – peasant farms, ACO – agricultural organizations, PSF – private subsidiary farming 11 Agriculture Processing of livestock products

Total raw milk production Total meat production in live weight basis

636 ths. tons per year 212 ths. tons per year

raw milk is on sale to raw milk is processed to meat is on sale to meat is processed to 446 190 107 105 ths. tons per year ths. tons per year ths. tons per year ths. tons per year

personal consumption commercial milk sour-milk products Russian market poultry milk pork, beef 260 ths. tons per year 58 ths. tons per year 20 ths. tons per year feeding butter milk-powder 52,4 ths. tons per year 38,2 ths. tons per year 31,8 ths. tons per year 69 ths. tons per year 2,5 ths. tons per year 2,4 ths. tons per year export sausage industry other types of meat Russian market and export cheese ice cream 117 ths. tons per year 0,5 ths. tons per year 0,5 ths. tons per year 15,5 ths. tons per year 22,7 ths. tons per year 12,3 ths. tons per year

sales outside the Orenburg region 12 Oil and gas Oil & gas production and processing are the basis of the economy

251 items 22 bln. m3 800 ths. tons per year 80%* 75%* oil & gas commercial gas production of wide light production of ethane production of helium fields production hydrocarbon fraction fraction ** gas** helium production 1 among Russian regions place 4,9 mil. m3 odorant production 1 among Russian regions place 3,7 ths. tons/per year oil & gas annual production among Russian regions 4 26 mil. tons of oil place 18 bln. m3 of gas jet fuel export 7 among Russian regions

place 43 ths. tons per year Z EXTRACTION 3 S ORENBURG * 402 ths. tons per year, 2,1 mln. m per year ** share of the total Russian production volume ORENBURGNEFT 13 Oil and gas Oil & gas areas on the Orenburg region map

Gas transportation infrastructure Oil & gas output production and reserves oil and gas areas geological reserves annual production Tatarstan oil gas oil gas Zainsk ~5 000 km Kazan length of main Tuymazy gas pipeline SGPP* Bashkortostan 470 800 26 18 Salavat – Ufa mil. tons bln. m3 mil. tons bln. m3 share of Russian Samara share of Russian share of Russian share of Russian Chelyabinsk– Ekaterinburg oil reserves gas reserves oil production gas production 2,5% 1,1% 4,7% 2,5%

UGSS** Oil production in the Orenburg region by companies Orenburg Gas pipe-line «Soyuz» OOGCF *** 14,5 mil. tons JSC «Orenburgneft»

5,7 mil. tons LLC «Gaspromneft Orenburg» KOGCF **** Karachaganak 2,0 mil. tons LLC «Sladkovsko-Zarechnoye»

1,5 mil. tons LLC «Gasprom dobycha Orenburg» Kazakhstan Bukhara – Ural 1,2 mil. tons JSC «Preobrazhenskneft» * Shkapovskiy Gas Processing Plant *** Orenburg oil and gas condensate field ** Underground gas storage station **** Karachaganak oil and gas condensate field 1,1 mil. tons other manufactures 14 Oil and gas Crude oil refining in the Orenburg region

2 and 3 places among The Orenburg region 10th place in Russia of 36 Russian plants* annually processes crude oil export Are taken by the Orenburg gas-processing and 5,2 mil. tons of crude oil 827 ths. tons per year helium plants of production capacity 27,5 bln. m3 of oil-associated gas * gas-processing plants 15 Oil and gas Natural and associated petroleum gas processing in the Orenburg region

* 100% of Russian production, ** 75% of Russian production, *** 80% of Russian production, **** wide fraction of light hydrocarbons 16 Oil and gas Oil & gas prospective production chains in the Orenburg region

Exploring Recovering Pre- Primary Secondary concentrate production production

Developed Oil and refined Gasoline fraction Gasolines ($35 mil) Gums ($14,2 mil) oil fields products Rubber ($3,6 bln) Kerosene cut Kerosene and aviation kerosene ($9,8 mil) Polymer ($65 mil) Plastics ($9,8 bln) Diesel fraction Lube oil ($726 mil) Paraffins ($2,6 mil) Paraffins ($2,6 mil) Acid residue and coal tar ($1,7 mil) Pine rosin ($5,7 mil) 26 mil. tons/per year Residue Light and vacuum gas oil ($36,9 mil) Dissolvent ($37,1 mil)

Black carbon Aniline ($20 mil) Fuel additive ($129 mil) Oil-and-gas Active gas and gas Methane Phenol ($22,4 mil) field ($7,8 mil) Redox rubber ($197 mil) condensate, Benzol ($30,1 mil) associated petroleum gas Spirits ($277 mil) Synthetic yarn ($18,9 mil) Ethan Polyethylene ($1,09 bln) Acetylene ($26 mil) Ethyl spirit ($1 bln) Lacquer materials ($1,9 bln)

Propane Ethylene Propylene ($173 bln) Blasting explosive ($55,2 mil) Butylene Isopropyl spirit ($26 mil) 470 mil. Tons of oil Propylene Methyl-tret-butyl-ether ($13,3 mil) 800 bln. m3 of gas 18 bln. m3 Bhutan ($20,4 mil) Butadiene ($1,4 mil)

Prospective production chains 17 Mining The raw material base of the Orenburg region manufacturing industry: natural resources and minerals

2 500 75 40 30 mil. tons 33%* minerals mining fields types of minerals large companies annual minerals processing copper concentrate producing

production and export of chrysolite asbestos 1 among Russian regions place 420 ths. tons per year export of chrome products 1 among Russian regions place 8 ths. tons per year export of cast iron 1 among Russian regions place 1 700 ths. tons per year export of metals 13 among Russian regions place 1 840 ths. tons per year METALLEX * share in the total Russian production volume ORENBURG MINERALS GMPP PRODUCTION OF METAL STRUCTURES MCSP 18 Mining The Orenburg region is the center of the Ural mining industry

Geography of minerals Reserves of minerals

Fe 300 Cu 6,3 Zn 2,5 mil. tons mil. tons mil. tons ironstone copper ore zink ore

Ni 1,7 Cr 1,2 NiCo 1,1 mil. tons mil. tons mil. tons nickel ore chromium ore nickel-cobalt Ni Ni Output Production

Cu Fe Te Zn Fe Ti Te Ni Cu Cu Ni Ni Co Ni Ni Ni Ni Fe Fe Cr Au Ni Au Ni Cu Fe Cu Co Fe Zn Au Cr Ni Te Ni Ni steel Co Fe iron-ore chrysotile Cu Ni Te Zn rolled asbestos Cu agglomerate Key-words: 3 000 1 200 420 ths.tons per year ths.tons per year ths.tons per year Fe Cu ferrum Zn Cooper-zinc amphibole, serpentine flux limestone

Ni Ni nickel Co nickel-cobalt puff-stone bentonite clays

Te tellurium calley-stone porphyrite, basaltic andesite quartzite Cr chrome clay rock gabbrodiabase granite copper ferrosilicon zinc Au aurum chalk drilling clay dolomite concentrate production concentrate Cu cooper limestone sodium salt refractory clay 230 25 23 Ti titanium marble gypsum asbestos jasper ths.tons per year ths.tons per year ths.tons per year 19 General information The leader among Russian regions in «green» energy

18 objects 330 МW 11 МW 2 430 МW 1 125 МW of renewable energy solar energy wind energy water energy steam electric station

solar energy production 1 among Russian regions place 14 Solar Electric Generating Stations

total power of the electric energy system 6 among regions of the Volga federal district place 3 780 MW

total electrical and thermal power 9 of Iriklinskaya SDPS: place among SDPS* of the Russian regions 2 430 MW; 120 Gcal/hour ELECTRIC GENERATION * SDPS– state district power stations INTER RAO 20 General information The Orenburg region has a well-developed investment infrastructure

greenfield and brownfield There are 223 investment sites in the Orenburg region

Orenburg Advantages of investment sites Novotroitsk Yasny Orsk Plug-n-go infrastructure Convenient communications logistics

SEZ* PSEDA** • 2 sites: • 2 sites: Tax benefits and Labor resources Orenburg and Orsk «Yasny» and «Novotroitsk» preferences

Technoparks* and industrial parks Other sites • 2 sites • 217 sites Land plots Locations in the industrial center * planned ** Priority Social and Economic Development Area 21 General information Special economic zone: tax benefits and plug-n-go infrastructure communications

SEZ Orenburg SEZ Orsk 380 ha total area 185 ha total area within the city Orenburg 280 km distance to Orenburg

Special conditions for doing business in SEZ

Income tax Property tax Land tax

2 % 0 % 0 % 5 years 10 years 5-10 years WITHOUT SEZ 20% WITHOUT SEZ 2,2% WITHOUT SEZ 1,5%

Import duties Transport tax Customs VAT

0 % 0 % 0 % equipment*, raw materials 5 years on imported goods WITHOUT SEZ 20% WITHOUT SEZ 1000** ₽ WITHOUT SEZ 10-20%

* imported foreign equipment ** for 1 hp 22 General information Priority Social and Economic Development Area: tax benefits and financial preferences

PSEDA «Novotroitsk» PSEDA «Yasny» 7 residents 8 residents 4 692 bln. ₽ of investments 239 bln. ₽ of investments 656 workplaces 523 workplaces

Mining Agriculture Manufacturing Mining Agriculture Manufacturing operations operations

Hotels and Culture Transportation Scientific Wholesale Health and social Food service and sport and storage and technical and retail services activities trade, auto repair information and Water supply Personal communication and SMW services

Special conditions for doing business development in PSEDA

Income tax Property tax Land tax Insurance fees 0 % 0 % 0 % 7,6 % 5 years 5 years 10 years 3 years WITHOUT WITHOUT WITHOUT WITHOUT PSEDA 20% PSEDA 2,2% PSEDA 1,5% PSEDA 30% Invest in the Orenburg Region!

Orenburg Region +7 (3532) 44-24-55

Development Corporation [email protected]

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