1. General Provisions

INVESTMENT MEMORANDUM OF THE REPUBLIC OF TATARSTAN 2009

1.1. Investment Memorandum of the Republic of Tatarstan (hereinafter Memorandum) establishes the main priorities of the Tatarstan investment activity development on the basis of the Programme of social and economic development of the Republic of Tatarstan during 2005-2010 years. 1.2. The responsibility for the implementation of this Memorandum provisions is bearded by Ministry of Economy of the Republic of Tatarstan. 1.3. The priority investment projects maintenance is done by Agency of governmental order, investment activity and inter-regional relations of the Republic of Tatarstan. 1.4. Memorandum is focused on the Tatarstan Government strategic target implementation – the improvement of life quality on the basis of innovational development of Tatarstan economy, creation and development high-yielding science-absorbing industries, high technologies and above all technologies in the real economy sector. 1.5. Memorandum is being worked out annually in two weeks period after publication of Tatarstan President Annual Speech to the Tatarstan State Counsel. 1.6. Memorandum is recommended as a base for working out and confirmation of business-plans of investment activity subjects. 1.7. Monitoring of this Memorandum provisions implementation is made by Coordinator. 1.8. Text of annual Memorandum and the results of its implementation are included into the list of public informational resources of the Republic of Tatarstan. 1.9 The investment web-site of the Republic of Tatarstan is www.aidrt.ru.

2. Main Directions of Investment Policy

2.1. The main directions of investment policy are as follows: • Creation of positive investment image of the Republic of Tatarstan; • Development of investment activity infrastructure; • Measures effectivization of governmental support of investment activity, using of government-order system; • Improvement of measures on the reorientation of investments into the science- absorbing high-technological sectors; • Informational and skilled support of investment activity.

3. Actions on the Investment Policy Implementation in the year 2009

3.1 The main actions pointed to the investment policy implementation in the year 2009 are as follows: • Creation of favorable investment, innovational and entrepreneurial climate in the Republic of Tatarstan by modernizing of investment and innovational legislation; • Investment and innovational infrastructure development; • Inter-industry and territorial clusters’ development; • Stimulation of small business development; • Development of market of intellectual property;

5 INVESTMENT MEMORANDUM OF THE REPUBLIC OF TATARSTAN 2009

• Attraction of investments into the sphere of IT and science-absorbing technologies and industries, creation of competitive production; • Attraction of investment into production modernization and its structural reconstruction; • Development of mechanisms of large investment projects’ long-term and syndicated loan services; • Attracting of pension, insurance and unit investment funds’ financing in order to implement the most important investment projects; • Attraction of federal investment resources into Tatarstan economy; • PPP mechanisms development; • Effective use of institutes of development created by federal authorities; • Assure the financing of Tatarstan priority target programs implementation; • Governmental support of commodity production in terms of tax preferences in accordance with current tax legislation of the Russian Federation, leasing, state order on production and goods and service delivery for state need, participation in investment projects, promotion of commercial output of key enterprises of the Republic to the international markets, compensation of part of rates of interest on large bank credits for the enterprises investment projects; • Improving of enterprises investment activity at the expense of accumulative savings and full using of amortization expenses on the development and modernization of production; • Increase of enterprises’ and Tatarstan organizations’ investment attractiveness; • Creation of terms for the increase of salaries of workers of all spheres of activity; • Increase of energetic sector’s efficiency; • Support of sectors that are considered to be the potential points of economic growth: • Petrochemistry and chemical industry; • Machinery manufacturing and automotive industry; • Aircraft building; • Agroindustrial complex; • Food industry; • Production of construction materials. 3.2. The measures on the investment policy implementation defined by this Memorandum can be changed due to the results and new proprieties of social and economic development and the changing legislation as well.

4. Subjects of Investment Activity

4.1. The subjects of investment activity are investors, customers, contractors, users of investment activity objects and other participants of investment activity. The subject of investment activity can be represented as private and artificial people including foreign ones and countries and international organizations as well.

5. Interaction of Investment Activity’ Subjects

5.1. The process of interaction of investment activity’ subjects are defined by current legislation and procedural rules, that are designed by subjects of investment activity in accordance with international contracts of the Russian Federation, federal laws and other normative legal acts of the Russian Federation, laws and other normative legal acts of the Republic of Tatarstan, normative legal acts of local government bodies.

6 INVESTMENT MEMORANDUM OF THE REPUBLIC OF TATARSTAN 2009

6. Targets of Investment Activity’ Subjects

6.1. The main targets of investment activity’ subjects defined by this Memorandum are as follows: • Reaching of planned levels of indicators of efficiency of local government bodies activity on population life standard that are annually defined by agreements between The Cabinet of Ministers and municipals; • Creation of effective mechanisms of investments attraction in real economy sector by authorized government bodies of the Republic of Tatarstan.

7. Priority Investment Projects in 2009

In accordance with Tatarstan President Annual Speech to the Tatarstan State Counsel, Program of social and economic development of the Republic of Tatarstan for 2005 – 2010: 7.1. The priority projects for implementing in the republic in 2009 are as follows: • «Development of Kama Economic Area» (Ministry of Economy of the Republic of Tatarstan); • «Complex of oil-refining and petrochemical plants in Nighnekamsk city» (JSC «TANEKO»); • «Ammonia, methanol, carbamide and ammoniac saltpeter production on the basis of operating manufacture of Open Society «Ammonium» in Mendeleevsk city» (JSC «Ammony»); • «Designing of Ashalchinsky ultraviscous oil deposits» («Tatneft» JSC); • «Increase of ethane selection and nitrogen removal out of lean gas» («Tatneft» JSC); • «Utilization of associated petroleum gas» («Tatneft» JSC); • «Organization of production of truck and bus radial tires with metal cord in frame and breaker» («Nighnekamskshina» JSC); • «Creation of new productive capacities of oil-refining complex JSC TAIF-NK (JSC «TAIF - NK»); • «Construction of new facilities with the aim of high fuel issuing Euro-4 standards- driven» (JSC «TAIF - NK»); • «Construction of new facilities with the aim of high fuel issuing Euro-5 standards- driven» (JSC «TAIF - NK»); • “Construction of supplementary facilities on primary oil refining for providing raw’ quality of heavy still bottoms deep refining of oil refining factory» (JSC «TAIF - NK»); • “Construction of complex on heavy still bottoms deep refining of JSC «TAIF - NK»’ oil refining factory» (JSC «TAIF - NK»); • “Organization of production hardwares and automotive components on the basis of polymer refining» (LLC “Polymer - NKNH”); • “Organization of production of polymer refining in Industrial Park «Kamskie Polyany» (LLC “Polymer - NKNH”); • «Construction of ABS-plastics with the capacity of 60 thous. tones per year» (“Nizhnekamskneftekhim” INC); • «Organization of production of dehydrogenation catalysts of light paraffinic hydrocarbons in the volume of 2000 tones per year» (JSC «Chemical Plant after Mr.Karpov»); • «Production of chemical products of chemical refining of serpentine» (JSC «Tasma-Holding»); • «Production of cellulose out of ephemerals» (JSC «Tasma Holding»);

7 INVESTMENT MEMORANDUM OF THE REPUBLIC OF TATARSTAN 2009

• «Organization of stearic acid’ granulation » (JSC «Nefis Cosmetics»); • «Organization of heat power production for local needs” (JSC «Nefis Cosmetics»); • «Expansion of production of dry cleaning substances» (JSC «Nefis Cosmetics»); • «Organization of production of nonwoven fabrics by “span bond” technology (LLC «Elastic” Plant»); • «Development of production of CJSC “KVART” general mechanical rubber goods and fabrications made from thermoplastic elastomers” (CJSC “KVART”); • «Creation of shopfloor on ointments production» (JSC «Tathimfarmpreparati»); • «Production of thiokol sealants» (JSC «Kazan plant on synthetic rubber production»); • «Organization of new production of transmissions on ZF FRIEDRICHSHAFEN AG firm license with deep level of localization in Nabereghnie Chelny city» (LLC «CF KAMA»); • «Technical re-equipment of LLC «Autocomponent» production» (LLC «Auto- component»); • «Organization of production of diesel engines Cummins of Euro-3 and Euro-4 standard in Nabereghnie Chelny city» (CJSC «Kamminz-КАМА»); • «Production of motor vehicles КАМАZ Euro-3» (JSC «КАМАZ»); • «Production of motor vehicles КАМАZ Euro-4» (JSC «КАМАZ»); • «Production of front driving axle 6522» (JSC «КАМАZ»); • «Production of torque dividers КАМАZ-65224, 5350» (JSC «КАМАZ»); • «Re-equipment of watches production» (JSC «Innovaional production technopark «Vostok»); • «Construction of plant on motor-cars FIAT production in Nabereghnie Chelny city» (JSC «Sollers-Nabereghnie Chelny»); • «Organization of production of electric-weld shaped pipes sized from 20х20 mm to 180х180 mm» (JSC «Almetevsky trubniy zavod»); • «Organization of production of cast-iron matters for automotive industry» (LLC «Cristal - Plus»); • «Creation and development of plant on production of automotive supply by extrusion, casting and blowing using different polymers» (LLC «FPG «Simurg»); • «Production of harnesses for JSC «KAMAZ» (LLC “Prettl-NK”); • «Construction of electro metallurgy plant «Tatstal» with capacity 1,0 mln. Tones of steel per year in Leninogorsk city» (CJSC «Tatstal»); • «Technical re-equipment and reconstruction of mechanical processing production providing production of training herlicopter «Ansat - U» (JSC «Kazan Helicopter Plant»); • «Modernization of «Ansat» helicopter on the results of leader exploitation. R&D on providing the resource of Ansat helicopter 1000 and 2000 hours» (JSC «Kazan Helicopter plant»); • «Designing of light helicopter «Aktai» (JSC «Kazan Helicopter Plant»); • «Modernization of «Ansat» helicopter with changing of carrier system and increase of taking-off weight of created target variants of helicopter» (JSC «Kazan Helicopter Plant»); • «Technical re-equipment, reconstruction and construction of production buildings: а) №40, 40a, 40b (technical re-equipment and reconstruction) for providing production of helicopter’s vanes from composite materials; b) №№ 1, 2 (reconstruction) with providing serial assembling production of training helicopter «Ansat - U»; c) construction of paint and trimming frame of serial and perspective helicopters and reconstruction of painting room in bulk 1 under the lot for helicopters «Ansat», «Ansat - U» assemblage (JSC «Kazan Helicopter Plant»);

8 INVESTMENT MEMORANDUM OF THE REPUBLIC OF TATARSTAN 2009

• Adoption of new kinds of oil transit equipment (JSC “Alnas”) • «Organization of stamping production of refrigerant device details by limited edition» («PE «Plant after Sergo»); • «Statement on manufacture and development of serial release of new products of the modernised system of the state identification« the Password» («420», «420R», «623-3D», «623-ZDR») (JSC «Radio set»); • «Designing and absorption by serial production «The unified control system of brakes for the military automobile technics and fighting armour wheel cars of an easy category on weight» (the code number «the Column – ESU - Т») (JSC «Radio set»); • «Reconstruction of Kazan КТEC-1 with creation of PGU-95» (JSC «Generic company», КТEC -1); • «Construction of two gas-turbine rigs -18 MWt on district plant «Azino» (JSC «Generic company», КТEC -1); • «Construction of combined-cycle plant 190 MgW with the reconstruction of Kazan district heating plant КТEC-2» (JSC «Generic Company», КТEC -2); • «Reconstruction of steam generating unit st.№10 with automatic technological processes control system» (JSC «Generic Company», КТEC -2); • «Construction of Steam Raising Plant-230 MW unit №1» (JSC «Generic Company», Zainsk HPP); • «Construction of Steam Raising Plant -450 MW unit №11-12» (JSC «Generic Company», Zainsk HPP); • «Reconstruction of autotransformaters 1-2 AT» (JSC «Generic company», Zainsk HPP); • «Construction of two Steam Raising Plants -95» (JSC «Generic company», Elabuga TPP); • «Further construction of Nighnekamsk HPP and conservation reservoir» (JSC «Generic company», Nighnekamsk HPP); • «Technical re-equipment of JSC «Teplocontrol» (JSC «Teplocontrol»); • Designing and development of issuing of automatic gas distribution station of small production (mini-AGDS from 1,5 up to 1000 standard cubic meters per hour) (LLC “NPP “Aviagas-Souz +”); • «Construction of «Tatkabel» plant on the production of hardwire production in Kazan city» (LLC «Invent»); • «Construction of plant on production of aluminium and copper rolled wire» (LLC «Invent»); • «Construction of Plant on transformers production» (LLC «Invent»); • «Construction of Plant on waste-heat boiler production» (LLC «Invent»); • «Creation of production of preparation and processing of secondary material resources»» (JSC «Tatautoindustry»); • «Construction of new plant on production of mayonnaise, ketchup in polymeric packing» (JSC «Kazan lipoid mill»); • «Construction of auto transport enterprise JSC «Oil-extracting factory» • (JSC «Kazan Oil-extracting factory»); • «Reconstruction of distiller assembly on Aleksandrovsk, Mamadysh, Sarmanovsk, Tjurnjasevsk, Usadsk, Shumbut alcohol plants» (JSC «Tatspirtprom»); • «Construction of shop floors on refining of grains of alcohol plants JSC «Tatspirtprom» (JSC «Tatspirtprom»); • «Technical re-equipment of production on JSC «Tatkrahmalpotoka» (JSC «Tatkrahmalpotoka»); • «Technical re-equipment of production on JSC «Chistopolsky bakery plant» (JSC «Chistopolsky bakery plant»);

9 INVESTMENT MEMORANDUM OF THE REPUBLIC OF TATARSTAN 2009

• «Modernization of JSC «Zelenodolsky plywood Plant» (JSC «Zelenodolsky plywood Plant»); • «Construction of Plant on production of rigiflex packaging and polymeric film materials» (LLC «Danaflex»); • «Production of polyester threads and technical fabrics on its base» (LLC «Elabuga Plant of reinforcing polymeric fabric KREZ»); • «Creation of clothing manufacture in urban-type settlement Kamskie Polyani» (LLC «Kama»); • «Creation of innovational and technological industrial park «Melita» (Tatar fur trade and industrial JSC «Melita»); • «Modernization of production on JSC «Kukmor garment factory» (JSC «Kukmor garment factory»); • «Creation of IT-technopark in the Republic of Tatarstan» (JSC «Innovational production technopark «IDEA»); • «Creation of technopolis “Himgrad” (JSC «Innovational production technopark «IDEA»); • «Industrial park “Kamskie Polyani” (Executive committee of municipal district «Kamskie Polyani»); • «Development of Special Economic Zone Alabuga infrastructure»; • «Building and reconstruction of stock breeding complex» (JSC «Krasny Vostok Agro»); • «Building of stock breeding complex of LLC «Avangard» (JSC «Tatspirtprom»); • «Development of stock breeding complex of JSC «Holding company «Ak Bars» (JSC «HC «Аk Bars»); • «Construction of multipurpose elevator in Nabereghnie Chelny city» (CJSC «Agrosila-Group»); • «Reconstruction of poultry farm of LLC «Chelny-Broiler», Nabereghnie Chelny city» (CJSC «Agrosila-Group»); • «Construction of elevator in Kulanga (CJSC «HC «Zolotoy kolos»); • «Reconstruction of shop floors of eggs production on strategic economic section «Ubileinaya» in Gabishevo in Laishevo region» (CJSC «HC «Zolotoy Kolos»); • «Construction of stock breeding complex in Kurmashevo region» (CJSC «HC «Zolotoy Kolos»); • «Construction of shop floors on refining and preparation of fodder with granary» (LLC «Union-Agro»); • «Construction of hog farm of productive breeding sows with the zone of completion of growing and zone of herd replacements in Otari in Sabinsky region (LLC «Altin Saba»); • «Organization of Aqua cultural complex for the cultivation of sturgeon fish in the Republic of Tatarstan» (SUE «PE «Tatribhoz»); • «Construction of Kochakov Brickfield» (CJSC «Keramik» - NPO «Stroitelnaya keramika»); • «Construction of brickfield in the Republic of Tatarstan (Buinsk city)» • (CJSC «Fon»); • «Organization of extracting, transportation and implementation of inert materials in the Republic Tatarstan» (CJSC «Fon»); • «Construction of the plant on production of ceramic bricks with the capacity of 60 mln. units of conventional bricks in Verhnyuslon region of the Republic of Tatarstan» (CJSC «Fon»); • «Construction of Plant on cement production in Kazan city» (LLC «Bulgar»); • «Construction of brickfield in the Republic of Tatarstan (Tetushi)» (LLC «FGC «BASKO»);

10 INVESTMENT MEMORANDUM OF THE REPUBLIC OF TATARSTAN 2009

• «Adaptation of high technological production of modern materials for the town development on the plant of large-panel housing construction» (CJSC «Neftestroy»); • «Construction of reimbursable high-way «Alekseevskoe-Almetevsk» as a part of motor-way «Shali (М 7 «Volga») - Bavli (М5 «Ural»)» developing new route of federal motor-way Kazan-Orenburg in the Republic of Tatarstan» (JSC «Autostrada»); • «Sviyaghsky interregional multimode logistic center of Kazan transport hub» (CJSC «Dorstroyinvest»); • «Complex on utilization of dangerous medical (B and C levels of dangerous) and biological waste» (LLC «MBS»); • «Construction of cellular network of third generation of 3-G standard and modernization of existing cellular network on the territory of the Republic of Tatarstan» (JSC «Mobile Telesystems»); • «Residential compound «Yashlek» in Nabereghnie Chelny» (CJSC «Fon»); • «Microregion 4-5 in Elabuga city» (executive committee Elabuga Municipal Region); • «Microregion «Tanaika» in Elabuga city (executive committee Elabuga Municipal Region); • «Construction of complex of dwelling-houses and objects of social welfare value «Sunny city» (LLC «Sunny city»); • «Construction of residential compound «The 7-th sky» in Kazan city (LLC «Kazan of 21t century» - LLC «Ak Bars Development»); • Residential areas «Littoral and XVIII». The 1t stage of construction (State Housing Fund under the President of the Republic of Tatarstan); • Building development of the territory adjoined to the high-way «Kazan- Zelenodolsk» - «Zeleny Dol» (JSC «Mortgage agency of the Republic of Tatarstan»); • «Residential neighbourhood «Alsou» (JSC «SMP-Nefgtegaz», LLC «Elhovles», JSC «Mortgage agency of the Republic of Tatarstan»); • Construction of multipurpose hotel and entertainment complex «Riviera» (LLC ««Suvar-Kazan» company). 7.2 Investment projects that are to be implemented in the territory of SEZ Alabuga: • «Organization of commercial motor-cars «FIAT Dukato» production (LLC «Sollers- Elabuga»; • «Construction of enterprise on production of various high polymer materials and products made of it with the volume of production 17 thous. tones of products made of polypropylene per year» (CJSC «Polmatiz»); • «Production of mineral-cotton outputs, capacity: 100 thous. tones annually» (LLC «Rockwell - Volga»); • «Joint enterprise of JSC «Sollers» and Japanese corporations ISUZU Motors and Sojitz Corporation on production of lorries» (CJSC «Sollers - ISUZU»); • «Production of thermal pumps and elements of climatic systems» (CJSC «Plant of engineering equipment»); • «Production of 19 thous. tones of fiberglass and materials made on its base annualy» (CJSC «P-D Tatneft - Alabuga Fiberglass»); • «Production of elements of equipment in local and small sewerages» (LLC «Septal»); • «Organization of industrial production of technical gas» (LLC «R Liquid Alabuga»).

11 INVESTMENT MEMORANDUM OF THE REPUBLIC OF TATARSTAN 2009

8. Priority Target Programs in 2009

8.1. Priority target programs recommended for implementing and financing: • Program of economics of location of the Republic of Tatarstan development on the basis of cluster approach up to 2020 and for the period up to 2030 passed by the order of Cabinet of Ministers of the Republic of Tatarstan from 22.10.2008 №763. • Republic program «Tatarstan children» for 2008 - 2010, passed by the order of Cabinet of Ministers of the Republic of Tatarstan from 24.12.2007 N 743. • Republic target program «Development of transport complex of the Republic of Tatarstan for 2006 - 2010», accepted by the Law of the Republic of Tatarstan from 03.08.2006 N 64-LRT. • Republic target program «Increase of security of road traffic in the Republic of Tatarstan for 2008 - 2009», accepted by the order of Cabinet of Ministers of the Republic of Tatarstan from 16.10.2007 N 569. • Republic target program on the narcotization preventive measures for 2007 - 2009, accepted by the order of Cabinet of Ministers of the Republic of Tatarstan from 29, November, 2006, N 579. • Program of reformation and modernization of Housing and public utilities complex of the Republic of Tatarstan for 2004 - 2010, accepted by the Law of the Republic of Tatarstan from 11.12.2004 N 65-LRT. • Target complex program of preservation of cultural heritage «Miras – heritage» for 2007 - 2009, accepted by the order of Cabinet of Ministers of the Republic of Tatarstan from 02.07.2007 N 265. • Program «The efficiency of energetic resources in the Republic of Tatarstan for 2006 - 2010», accepted by the Law of the Republic of Tatarstan from 23.03.2006 N 24-LRT. • Program of small entrepreneurship support in the Republic of Tatarstan for 2005 - 2010, accepted by the Law of the Republic of Tatarstan from 21.10.2005 N 105-LRT. • Republic program of job safety and terms improving for 2007 - 2009, accepted by the order of Cabinet of Ministers of the Republic of Tatarstan from 10.07.2006 N 350. • Governmental support of the Republic of Tatarstan on preservation, studying and development of state languages of the Republic of Tatarstan and other languages of the Republic of Tatarstan for 2004-2013, accepted by the Law of the Republic of Tatarstan from 11.10.2004 № 52 LRT. • Complex program of the preventive measures on lawlessness in the Republic of Tatarstan for 2007-2010, accepted by the Law of the Republic of Tatarstan from 12.01.2007 № 6-LRT. • Republic program «Modernization of out-patient and polyclinic service in the Republic of Tatarstan» for 2007-2009, accepted by the order of Cabinet of Ministers of the Republic of Tatarstan from 23.01.2007 №15. • Republic target program of agriculture development in the Republic of Tatarstan for 2008-2012, accepted by the order of Cabinet of Ministers of the Republic of Tatarstan from 14.12.2007 №711. • Republic program of popularization of workers and engineering professions in order to attract and fix the specialists on the enterprises of the Republic of Tatarstan for 2008-2010, accepted by the order of Cabinet of Ministers of the Republic of Tatarstan from 18.04.2008 № 245. • Republic program on population employment in the Republic of Tatarstan for 2008-2010, accepted by the order of Cabinet of Ministers of the Republic of Tatarstan from 29.08.2008 № 623. • Republic target program «Development and implementation of informational and communicational technologies in the Republic of Tatarstan for 2008-2010», accepted by the order of Cabinet of Ministers of the Republic of Tatarstan from 17.07.2008 №513.

12 INVESTMENT MEMORANDUM OF THE REPUBLIC OF TATARSTAN 2009

• «Patriotic education of young people of the Republic of Tatarstan for • 2009 -2010», accepted by the order of Cabinet of Ministers of the Republic of Tatarstan from 15.12.2008 №876. 8.2. Priority target projects, recommended for designing and confirmation: • Program of capital investments of the Republic of Tatarstan on 2009. • Target program «Republic governmental support by providing population with accommodation in the Republic of Tatarstan on preferential terms» on the year 2009. • Republic innovational target program «Implementation of cellular medicine in the Republic of Tatarstan for 2008 - 2010», accepted by the order of Cabinet of Ministers of the Republic of Tatarstan from 29.12.2007 N 772. • Program of environmental protection measures of the Republic of Tatarstan. • Republic program on organization of children and young people’ leisure time, sanitation and employment. • Republic program, aimed at the improving of education level. • Republic program of development of physical fitness and sports in the Republic of Tatarstan. • Republic program aimed at the improving of innovational activity level in the Republic of Tatarstan. • Target program «Development of water-and-sewage and heat supply systems in public-service complex in the Republic of Tatarstan up to 2015» (Conception is in the process of agreement in the Ministry of Finance of the Republic of Tatarstan).

9. Potential of Tatarstan Commodity Market

9.1. Potential of Tatarstan commodity market that was not tapped by the Republic’s commodity producers is defined by the volume of trade purchases from Russian and foreign enterprises. Market capacity forecast for 2009 is represented in annexes № 1 and № 2.

13 INVESTMENT MEMORANDUM OF THE REPUBLIC OF TATARSTAN 2009

Annex №1

NORMS AND VOLUME OF NON-GROCERY GOODS CONSUMPTION, CALCULATED ON THE BASIS OF MINIMUM CONSUMER BUDGET (by prices of July, 2008)

Share of product Volume of consumption, % financial Volume of Volume of assets, Consumption consumption exported exported Name of goods rate, by Tatarstan Produced output, from population, Produced in units/year out of units/year Tatarstan, units/year Tatarstan Tatarstan mln rubles per year Health and hygiene 96,5/1 364384000 35,0 65,0 236849600 4590,8 items* Medicaments 189,8/1 716684800 8,7 91,3 654496602 13057,5 Bedclothes 15/5,3 10686792 0,1 99,9 10676619 2073,3 Laundry 15/1,75 32365714 0,4 99,6 32242466 2458,3 Coats 3,5/4,32 3059259 4,5 95,5 2921593 6521,2 Suits 12,5/2,66 17744361 3,6 96,4 17098761 13906,5 Headdresses 3,5/4,32 3059259 5,9 94,1 2878690 2133,7 Footwear 8/1,85 16328649 9,2 90,8 14825449 9684,9 Smallwear goods 25,7/2,32 41828966 0,02 100,0 41820965 5021,2 Legwear garment 7,5/1 28320000 62,1 37,9 10736000 493,5 School goods 2,0/1 7552000 4,9 95,1 7180819 964,8 Goods of cultural and 35,8/6,61 20450953 14,5 85,5 17495493 10394,2 general use TOTAL: 71299,5

* - on several items of this group of goods (toilet soap, soapless soap) the production exceeds the standard requires

14 INVESTMENT MEMORANDUM OF THE REPUBLIC OF TATARSTAN 2009

Annex №2

INFORMATION ABOUT THE PRODUCTS OF NON-TATARSTAN ENTERPRISES, PURCHASED FOR STATE NEEDS OF THE REPUBLIC OF TATARSTAN IN 2009 (forecasted indicators)

Consumption by population, kg Volume of Per year Share of Volume of financial assets, excluding imported imported Name of goods exported from the products produc- production, Per month Per year Tatarstan, thous produced tion, % kg per year in home rubles per year economics Bread and flour 35 242 667 422 912 000 422 912 000 0 0 0 products Wheat flour* 4 720 000 56 640 000 56 640 000 30 16 992 000 284 956 Alimentary products 1 730 667 20 768 000 20 768 000 78 16 294 000 508 210 Grits 3 366 933 40 403 200 40 403 200 65 26 071 200 568 491 Potato * 32 725 333 392 704 000 49 088 000 30 117 811 200 2 383 321 Vegetables 50 787 200 609 446 400 352 546 400 7,5 45 550 900 1 671 643 Fruits: 24 386 667 292 640 000 292 640 000 - - - Apples 15 890 667 190 688 000 143 016 000 90 171 619 200 7 678 243 Pears 1 101 333 13 216 000 13 216 000 100 13 216 000 415 775 Bananas 1 573 333 18 880 000 18 880 000 100 18 880 000 688 176 Dried fruits 3 776 000 45 312 000 45 312 000 100 45 312 000 3 244 339 Meet and meet 22 184 000 266 208 000 229 507 975 - - - products: Beef 8 496 000 101 952 000 92 056 895 63 64 722 352 8 247 569 Pork* 1 101 333 13 216 000 1 664 896 70 9 251 200 Mutton 944 000 11 328 000 11 303 012 99 11 233 986 1 783 283 Poultry 6 922 667 83 072 000 67 843 171 31 25 774 581 1 848 037 Wurst, smoked meet 2 202 667 26 432 000 26 432 000 60 15 859 200 2 410 598 Milk and milk products 71 791 200 861 494 400 718 691 430 - - - (in terms of milk): Milk, cultured milk foods 48 616 000 583 392 000 486 687 819 37 171 619 200 5 073 640 Curd 2 832 000 33 984 000 28 350 747 37 12 571 326 1 259 018 Sour cream 1 730 667 20 768 000 17 325 456 37 7 682 477 551 218 Tallow oil * 1 888 000 22 656 000 22 656 000 5 1 132 800 146 766 Cheese* 944 000 11 328 000 11 328 000 60 6 796 800 903 431 Fish products 5 978 667 71 744 000 71 744 000 97 69 947 000 4 264 669 Sugar and 11 800 000 141 600 000 141 600 000 - - - confectionery: Confectionery 4 248 000 50 976 000 50 976 000 80 40 780 800 2 774 318 Sugar 7 552 000 90 624 000 90 624 000 32 29 168 881 618 964 Eggs* 76 464 000 917 568 000 724 011 600 9 85 211 600 254 783

15 INVESTMENT MEMORANDUM OF THE REPUBLIC OF TATARSTAN 2009

* - the production of goods in the Republic covers the population needs, however marketing of imported products takes place as well

CONTACTS:

Ministry of Economy of the Republic of Tatarstan, Department of investment and innovational activity Head of Department Mr. Svyatoslav Gusev Web-site: http://mert.tatar.ru/ Address: 420021, Kazan city, Moskovskaya St., 55 Telephone: +7 (843) 524–91–30 Fax: +7 (843) 524–91–32

The state unitary enterprise «Agency for State Order, Investment Activity and Interregional Relations of the Republic of Tatarstan» General director Mr. Yakov Geller Web-site: http://www.aidrt.ru/ Telephone: +7 (843) 292-95-77 Fax: +7 (843) 292-95-87 ©2009 «Art&Fakt» tel. +7(843)292-45-90, translated I. Minullina Taliya by «Art&Fakt»©2009 tel. +7(843)292-45-90,