INVEST LAND OF BOLD BEGINNINGS IN AND SUCCESSFUL INVESTMENTS

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LAND OF BOLD BEGINNINGS AND SUCCESSFUL INVESTMENTS Land of bold beginnings and successful investments

Penza region – DYNAMICALLY DEVELOPING REGION

DEAR FRIENDS, DEAR PARTNERS!

The Penza region is a dynamically developing region of . It is located at the intersection of major transport highways. A rich resource base, developed industry and infrastructure, as well as qualified personnel make the region attractive for investors.

All conditions necessary for successful investments have been created in the Penza region, and the principle of "one-stop"

IN PENZA project support makes it possible to minimize the time and effort required to obtain the necessary permits.

We are open for cooperation and are interested in developing cooperation in order to implement bold and large-scale investment projects in the Penza region. We guarantee investors optimal conditions for conducting business activities

INVEST and prompt resolution of all issues that arise. You are making the right choice by choosing the Penza region as a business partner.

Governor of the Penza region I.A. Belozertsev 4 5

Photo by Andrey Malyshkin Land of bold beginnings and successful investments

STEPS TO SUCCESSFUL INVESTMENTS IN PENZA INVEST

6 REASONS TO CHOOSE PENZA REGION

Convenient location and favorable logistics

Developed regional economy

Rich resource and raw materials base

Scientific potential and available skilled labor force

Tax benefits and government support

Available infrastructure

Powerful industrial and IT potential

Trust of global brands

Business and event tourism

Cultural and historical heritage

Favorable environment

7 Land of bold beginnings and successful investments

CONVENIENT LOCATION AND FAVORABLE LOGISTICS

TIME ZONE: UTC/GMT +3 HOURS (MSK) NEAR THE CAPITAL! CAR REGION CODE: 58

PHONE AREA CODE: 8412

Distance from Penza to Moscow by highway 610 km

Tambov

Kazan

Saratov 6 scheduled flights a day Moscow-Penza Penza

region

Ufa IN PENZA Flight time – 1 hour

47 million people INVEST live within 600 km

Territory Population Area of farmland 43,400 sq. km 1.3 million people 2.8 million hectares 8 FLIGHTS

Penza – , flight time – 1 h 10 min

Penza – flight time – 1 h 40 min DISTANCE FROM PENZA TO ADMINISTRATIVE Penza – flight time – 2 h 30 min CENTERS

Penza – Anapa flight time – 2 h 20 min

Penza – Sochi Saransk Saratov flight time – 2 h 142 km 224 km 3 million people 7 million people

Ulyanovsk Tolyatti 306 km 386 km HIGHWAYS 16 million people 18 million people

Federal highway M5 "Ural" (E 30)

Interregional highways: Samara Moscow • P158 "Nizhny Novgorod – Saratov" • P209 "Penza – Tambov" 409 km 608 km 21 million people 46 million people

RAILWAYS Kazan Kuybyshev Railway 595 km 836 km South Eastern Railway 45 million people More than 100 million people Euro-Asian Transport Corridor (TRACECA)

Direct access to Trans-Siberian Railway

9 Land of bold beginnings and successful investments

CONVENIENT LOCATION AND FAVORABLE LOGISTICS

Helsinki 2

Moscow Penza 1

1 One Belt, One Road

railway corridor Duisburg (China-Europe)

Milan

2 IN PENZA Trans-Siberian Railway Tel Aviv INVEST

North-South transport corridor

10 Profitable investment region 2

1

1

Vladivostok

2 Beijing

Tokyo

Delhi Chongqing

Mumbai

11

ECONOMY OF THE REGION Land of bold beginnings and successful investments

ECONOMY OF THE REGION

Rating in Federal District

1ST PLACE

• Growth rate of industrial production index in 2007-2017 (209%) • Growth rate of agricultural production in 2007-2017 (177%) • Road conditions are up to government standard

2ND PLACE

• Share of commodities exports in total exports volume • Growth rate of meat and fish production

IN PENZA 3RD PLACE

• Number of youth creative innovation centers INVEST 21ST PLACE

• In national rating of the investment climate of Russian constituent entities (improved by 24 places)

14 19% Manufacturing Gross regional product

14% Agriculture

1% 1% 6% 28% 10% Construction 7%

14% GRP structure GRP by type of other economic of economic activities activity

8% Transport and 17% communications

26% 12% Real estate transactions

Public administration Health and social services 16% Education Wholesale and Production and distribution of electricity, gas, and water retail trade Hotels and restaurants Other services Financial activities 21% 15 Mining Other Land of bold beginnings and successful investments

ECONOMY OF THE REGION

Industry

Government support of industry in the region: • special investment contract • industrial development fund • state programs of the Russian Federation • territories of advancing socioeconomic development (TOSER) • industrial parks and technoparks 177% 180%

160% 145% 140%

120% 129% "Union of Penza confectioners" "Biomed” engineering "Legprom" light industry 100% confectionery cluster and production cluster cluster 80%

60% 40 enterprises, 4th in production in Russia 21 enterprises, 65% of the production 27 enterprises of heart valves in Russia 40% 20%

0% 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

"Security" Penza instrument Information technology Furniture making cluster cluster cluster

50 enterprises, 1,500 types of unique 20 enterprises, 18 unique 150 enterprises IN PENZA products developments in 2016

209% Industrial production 210%

INVEST index 190% 170%

150% 126% Penza region 130%

110% 113% 90%

70% Russian Federation 50% 16 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Agriculture

Rating in Volga Federal District Indices of agricultural production 1ST PLACE 177% • Grain and legume yield 180% • Growth rate of milk yield per cow 160% 145% • Potato yield in agricultural organizations 140% 120% 129% 100% 2ND PLACE 80% 60% • Gross harvest of sugar beet 40% • Growth rate and volume of meat production 20% 0% 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 3RD PLACE Penza region Volga Federal Russian • Yield of sugar beet District Federation Land of bold beginnings and successful investments

RICH RESOURCE AND RAW MATERIALS BASE

Land resources Minerals

2.884 1.379 MILLION HA MILLION HA IN PENZA Total area of farmland Acreage in 2017 Clay Gypsum Marl

In 2017, 40,000 hectares of unused land were put into agricultural use

INVEST In 2018, 57,000 hectares of unused land are planned to be put into agricultural use Chalk Glass Sands Diatomite

722,000 HA 415,000 HA 203,000 HA Grains and Industrial Forage legumes crop crops 18 Limestone Glauconite Phosphorite Water resources Forest resources

15,455 KM 1 MILLION HA 1.15 MILLION CU. M

Total length of rivers and streams Total forest area Allowable cut

Provision by forecasted groundwater resources – Main forest-forming species: 6 cubic meters per day per person

Direct-flow water consumption – 193 million cubic meters per year

2% 33% Birch Pine Aspen Oak Agricultural water supply Domestic needs

65% Production needs Land of bold beginnings and successful investments

753,000 EMPLOYABLE POPULATION IN PENZA

INVEST $490 average wage level

20 SCIENTIFIC POTENTIAL AND AVAILABLE SKILLED LABOR FORCE

4 UNIVERSITIES

8 BRANCHES OF UNIVERSITIES

17 COLLEGES

14,000 3,000 graduates specialists international students

17 INTERNATIONAL PROGRAMS

21 Land of bold beginnings and successful investments

TAX BENEFITS AND GOVERNMENT SUPPORT

TAX NAME GENERAL RATES FOR SPECIAL CATEGORIES CONDITIONS, %

Newly created Agricultural Projects with 8+ billion Resident of Center enterprises producers rubles in investments for Regional (less than three ($128+ million) Development and years old) Industrial Park, for participants of regional investment projects

PROPERTY TAX 2.2 0 1.1 0 -

INCOME TAX 20 16 - 15.5 13

TRANSPORT TAX Depends 0 - 0 - on category and capacity of the vehicle

TERM OF 3 years from the date of commissioning 5 years from the date For the project’s BENEFITS the facilities provided by the project of commissioning payback period the facilities provided IN PENZA by the project INVEST

22 TAX BENEFITS AND PREFERENCES TO RESIDENTS OF A TERRITORY OF ADVANCING SOCIOECONOMIC DEVELOPMENT

TAX BENEFITS TO TOSER NON-TAX BENEFITS TO TOSER PARTICIPANTS PARTICIPANTS

• Income tax to the federal budget – 0% • Simplified VAT refund procedure • Income tax to the regional budget – 5% • No-cost connection to infrastructure facilities • Mineral extraction tax – 0% • Favorable lease of land • Corporate property tax – 0% • Land tax – 0% • Contributions to social funds – 7.6%

• Provision of land for lease without bidding • Consulting support • Reduction of income tax up to 13% (for participants of regional investment projects) Land of bold beginnings and successful investments M5

AVAILABLE INFRASTRUCTURE Р158 Narovchat

4 INDUSTRIAL PARKS Vadinsk TECHNOPARKS Zemetchino 2 Nizhny Lomov

REGIONAL BUSINESS

INCUBATORS 2 1 2 SOYUZ INDUSTRIAL PARK

MUNICIPAL BUSINESS Bashmakovo 7 1 9 INCUBATORS Pachelma

IT PARK Zarechny 1 Kamenka Р208 M5 IN PENZA 2 TOSERS Belinsky

INDUSTRIAL BUSINESS

INVEST PARKS INCUBATORS Tamala TECHNOPARKS IT PARK Bekovo

TOSER 24 Р158

* TOSER – Territory of advancing socioeconomic development M5

Р158

4 Nikolsk Lunino

2

Sosnovoborsk 2 Bessonovka 1 2 SOYUZ INDUSTRIAL PARK

7 1 9 Gorodishche Zarechny DAVYDOV 1 INDUSTRIAL PARK Р208 M5 2 Shemysheyka Kondol Neverkino Kameshkir

Kolyshley

SERDOBSKY INDUSTRIAL PARK Lopatino Malaya Serdoba

Р158 Land of bold beginnings and successful investments

Industrial parks

OTVEL SOYUZ INDUSTRIAL PARK INDUSTRIAL PARK

www.otvelpark.ru www.krpo.ru

Profile: Profile: Manufacturing industry Manufacturing industry

Location: Location: Penza region, Bessonovsky district, village of 1 Centralnaya St., Penza

IN PENZA Kizhevatovo (655th km of )

Free area: Total area: Free area: Total area: 83 ha 137 ha 18,000 sq. m 30,000 sq. m

Utility infrastructure: Utility infrastructure: • power supply – 4 MW • gas supply – 1,000 cu. m/hour INVEST • water supply and disposal – 5,320 cu. m/ • power supply – 4 MW day • water supply and disposal – 128.6 cu. m/day • gas supply – 16,500 cu. m/hour • on-site roads

Land lease: Lease of premises: $323/ha/year office – $30/sq. m/year, 26 production – $20/sq. m/year SERDOBSKY DAVYDOV INDUSTRIAL PARK INDUSTRIAL PARK

www.krpo.ru www.krpo.ru

Profile: Profile: Agro-industrial park Agro-industrial park

Location: Location: Penza region, Serdobsky district, Penza region, Shemysheysky district, city of Serdobsk town of Shemysheyka

Free area: Total area: Free area: Total area: 138 ha 418 ha 3 ha 115 ha

Utility infrastructure: Utility infrastructure: • power supply – 7 MW • gas supply – 4,500 cu. m/hour • gas supply – 116,000 cu. m/hour • water disposal

Land lease: Land lease: $21/ha/year $97/ha/year 27 Land of bold beginnings and successful investments

Technoparks

YABLOCHKOV RAMEEV TECHNOPARK TECHNOPARK

www.pnztp.ru www.technopark-rameev.ru

Location: Location: 6 Druzhby St., Penza 1v Centralnaya St., Penza IN PENZA Specialization: Specialization: • Information technology • Medical devices • Precise instrument making • Information technology • Materials science

Lease of premises: Lease of premises: INVEST • $30/sq. m/year – Office space • $54/sq. m/year – Office space • $30/sq. m/year – Production space • $36/sq. m/year – Production space

Equipment lease: Equipment lease: • 1 year – 1.5% of equipment cost • 5% of equipment cost per year • 2-3 years – 2.2% of equipment cost • 4 years – subsequent years – 3% 28 of equipment cost BUSINESS TERMS AND CONDITIONS

TARIFFS FOR CONNECTION: TARIFFS FOR UTILITY SERVICES: • Electric network: from $88 per 1 kW/h • Electricity – $0.08 per 1 kW/h • Gas networks: from $995 • Gas supply – $0.08/cu. m • Water supply – $0.38/cu. m • Water disposal – $0.25/cu. m

OFFICE SPACE: COMMERCIAL SPACE: • Class A – $191/sq. m/year • Class A – $337/sq. m/year • Class B – $113/sq. m/year • Class B – $145/sq. m/year • Class C – $34/sq. m/year • Class C – $56/sq. m/year

WAREHOUSE AND PRODUCTION AVERAGE CONSTRUCTION SPACE: PERIOD: • Class A – $191/sq. m/year • Logistics centers – 1 year • Class B – $113/sq. m/year • Production floor – 8 months • Class C – $34/sq. m/year • Multi-story buildings – 1 year • Buildings of the warehouse – 4-5 months

29 Land of bold beginnings and successful investments

PRIORITY INDUSTRIES

HIGH VALUE-ADDED IT SECTOR INDUSTRY

FOOD AND MANUFACTURE PROCESSING OF FURNITURE INDUSTRY AND ACCESSORIES IN PENZA

AGRICULTURE WOODWORKING INVEST

30 PHARMACEUTICALS

LIGHT INDUSTRY

TOURISM

31

PRIORITY PROJECTS Land of bold beginnings and successful investments

PRIORITY PROJECTS

Agro-industrial complex/Food and processing industry

PROJECT FOR ADVANCED PROCESSING OF WHEAT AND CORN

(succinic, gluconic, itaconic, glutamic, citric, lactic, xylonic, tartronic acids, polylactide, polyamides, polyethylene terephthalate)

Market conditions for project implementation:

• Separation of all valuable components of grain • Growth of export demand for biodegradable lactic acid- • Production of high value-added products based plastics • Products are used in various industries • Steady growth in demand for project products • Growth in economic efficiency of grain production • High potential for import substitution

Resource base: Government support:

• Grain surplus in Penza region – 1 million tons • Government stimulates grain production IN PENZA • Infrastructure-provided site in the TOSER Regional tax benefits

Sales market:

• Russian market • Export to foreign markets INVEST

250,000 tons of raw materials 12.8 billion rubles IRR – 7% Projected capacity Investment amount 34 35 Land of bold beginnings and successful investments

CREATING A CHEESE CLUSTER

(dairy farms + processing plant)

Market conditions for project implementation:

• Cheese imports are 25% of the market volume • Growing shortage of raw milk in Russia. • Demand has growth potential • Presence of skills in the region in the production and • High potential for import substitution processing of marketable milk, feed production, education and science

Resource base: Sales market:

• Large dairy farms and small businesses. • Domestic market of the Penza region • Stable growth in the production of marketable milk to • Russian market 210,000 tons IN PENZA

Government support:

• Income tax on agricultural producers – 0% • Subsidies to purchase livestock • Reimbursement of CAPEX – 30% (farm) • Reimbursement of part of milk production costs • Favorable loan rate – 1-5% • Subsidizing insurance costs • Obtaining land plots for lease without bidding • Subsidizing 30% of the cost of machinery and equipment for INVEST dairy cattle ranching

12,500 tons of products per year 2 billion rubles IRR – 22% Projected capacity Investment amount 36 37 Land of bold beginnings and successful investments

Industry

PRODUCTION OF MACHINERY ORGANIZATION OF FOUNDRY AND MACHINING CENTERS PRODUCTION

IRR – 27% IRR – 9%

Market conditions for project implementation: Market conditions for project implementation:

• Government support of the production of machinery and • Presence of demand for products on the part of regional accessories. beverage companies • Government support of localization of foreign production • High export potential in Russia • Devaluation of the ruble exchange rate relative to foreign • Existence of region’s skills in this industry currencies brings advantages when exporting products • High potential for import substitution of machinery (80%) • High share of imported products IN PENZA • Devaluation of the ruble exchange rate relative to foreign currencies brings advantages when exporting products Sales market:

Sales market: • Domestic market of the Penza region • Russian market • Domestic market of the Penza region • World market • Russian market • Export to foreign market Government support: INVEST Government support: • Targeted loans at a rate of 1-5% per annum for up to 7 years in the amount of 50 to 750 million rubles • Targeted loans at a rate of 1-5% per annum for up to 7 years • Guaranteed demand for domestic products in government in the amount of 50 to 750 million rubles procurement • Developed infrastructure of industrial parks • Creation by the government of a mechanism to form demand • Benefits for residents of industrial parks for foundry products

Projected capacity: Investment amount: Projected capacity: Investment amount: 38 1,000 machines and 1.57 billion rubles 3,000 tons per year 700 million rubles machining centers per year LOCALIZATION OF INSTRUMENT PRODUCTION OF FOOD INDUSTRY MAKING EQUIPMENT

IRR – 12% IRR – 24%

Market conditions for project implementation: Market conditions for project implementation:

• Great potential for import substitution – the share of imported • High share of imported products in the industry equipment ~ 100% • Government support for development of domestic production • Active government support of the modernization of Russian industry, organization of new industries, and provision of import Sales market: substitution • High demand in domestic microelectronics of state enterprises • Domestic market of the Penza region • Projected growth in market volume • Russian market

Sales market: Government support:

• Domestic market of the Penza region • Subsidies in the amount of 15% of the equipment price • Russian market excluding VAT (but no more than 15 million rubles)

Government support:

• Targeted loans at a rate of 1-5% per annum for up to 7 years in the amount of 50 to 750 million rubles • Guaranteed government purchases of Russian civil microelectronics

Projected capacity: Investment amount: Investment amount: 5% of the Russian market 2 billion rubles 730 million rubles 39 Land of bold beginnings and successful investments

Manufacture of machinery and equipment for agricultural and processing industry

PRODUCTION OF AGRICULTURAL CONFECTIONERY MACHINERY PRODUCTION (Eastern sweets)

IRR – 21% IRR – 24%

Market conditions for project implementation: Market conditions for project implementation:

• Active government support of the modernization of Russian • Growing demand for organic products industry, organization of new industries, and provision of import • Projected increase in consumption of project products substitution. • High speed of development of agricultural and processing Resource base:

IN PENZA industry. • High market share of imported machinery in the domestic • Production of 6% of sugar in Russia arket (46%) • High market growth potential Sales market:

Sales market: • Domestic market of the Penza region • Russian market • Domestic market of the Penza region

INVEST • Russian market Projected capacity: Government support: 750 tons of products per month

• Subsidies to Russian manufacturers of agricultural machinery (20%) Investment amount: • Compensation of a portion of expenses to machine manufacturers 862 million rubles • Developed infrastructure of industrial parks • Benefits for residents of industrial parks 40 • Favorable loans from the Industrial Development Fund PROJECT FOR PRODUCING PRODUCTION CANNED FRUITS AND VEGETABLES OF ANIMAL FEED FOR BABY FOOD

IRR – 19% IRR – 16%

Market conditions for project implementation: Market conditions for project implementation:

• Presence of a stable base for agricultural production • High development of livestock industry in the Penza region • Need to establish a balanced diet for young children • Plans for further development of the industry • High profitability of production due to the availability of raw Resource base: material surplus and low purchase price

• Gross harvest of vegetables and potatoes at farms of all Resource base: categories is 8,100 tons • Production surplus of grain – 1 million tons Sales market: Sales market: • Domestic market of the Penza region • Russian market • Domestic market of the Penza region

Projected capacity: Government support: 8 million standard cans • Income tax on agricultural producers – 0%

Investment amount: Projected capacity: Investment amount: 750 million rubles 170,000 tons 1.9 billion rubles 41 Land of bold beginnings and successful investments

Livestock

SHEEP AND GOAT BEEF CATTLE RANCHING RANCHING

IRR – 27% IRR – 18%

Market conditions for project implementation: Market conditions for project implementation: • Low share of industrial production (7.7% of the market) • Potential for substitution of imported products • Steady demand for manufactured products by a growing • Presence of skills in the region Muslim population • High share of imported products (22%) • Increased demand for marketable meat of sheep and goats • Sustained potential of lamb exports to the Asia-Pacific regions Resource base: Resource base: • Development of raw materials base • Large grazing pastures IN PENZA Sales market: Sales market: • Domestic market of the Penza region • Domestic market of the Penza region • Russian market • Russian market • Export to foreign market • Export to foreign market Government support: Government support: INVEST • Income tax on agricultural enterprises – 0% • Income tax on agricultural enterprises – 0% • Favorable loan rate – 1-5% • Favorable loan rate – 1-5% • Subsidizing insurance costs Projected capacity: Meat 6,000 tons Breeding stock 65,000 head

Investment amount: Projected capacity: Investment amount: 42 3.2 billion rubles Meat 4,000 tons 2.3 billion rubles 9,000 head Fish farming Crop production

CREATING FISH GROWING SOYBEANS IN OPEN FIELDS FARMS WITH IRRIGATION SYSTEMS (installation of closed water supply) (including seeds)

IRR – 23% IRR – 26%

Market conditions for project implementation: Market conditions for project implementation:

• Projected increase in demand for project products. • Availability of water infrastructure for irrigation • Presence of a trend in marketable production of aquaculture • Proximity to industrial consumers • Presence of skills in scientific support of the project Sales market: (Penza Agricultural Research Institute) • Possibility of inclusion in the rotation of existing enterprises • Domestic market of the Penza region • Trend of reduced imports of soybean meal • Russian market • Growth in commercial herds of farm animals and poultry in the Penza region Government support: Resource base: • Income tax on agricultural enterprises – 0% • 476,000 hectares of land not involved in crop rotation • Favorable loan rate – 1-5%

Projected capacity: Sales market: 500 tons of marketable fish • Domestic market of the Penza region 500,000 planting stock fish per year • Russian market

Government support:

• Income tax for agricultural enterprises – 0% • Favorable loan rate – 1-5% • Reimbursement of CAPEX – 30%

Investment amount: Projected capacity: Investment amount: 800 million rubles Cultivation – 5,000 ha 2 billion rubles 43 Processing – 660,000 tons/year cost of processing plant is 3.5 billion rubles. Land of bold beginnings and successful investments

Vegetable growing Gardening

GROWING TOMATOES ESTABLISH PERENNIAL GARDENS, IN GREENHOUSES BERRY AND OTHER FRUIT CROPS

IRR – 15,7% IRR – 27%

Market conditions for project implementation: Market conditions for project implementation:

• Insufficient tomato production • High share of imported products on the market (29-60%) • Introduction of food embargo increases the sales market and • Presence of skills and specialists helps reduce the project’s payback period • Volume of imported fruits and berries in the Penza region is 63,900 tons/year Resource base: • Based on natural and economic conditions, the Penza region is recognized as favorable for production of high-quality • Availability of land plots fully equipped with infrastructure strawberries, raspberries, currants, gooseberries and other fruit

IN PENZA • Possibility of low-cost electricity supply crops • Possibility of low-cost heat supply Resource base: Sales market: • Availability of land plots equipped with infrastructure • Domestic market of the Penza region • Russian market Sales market: • Domestic market of the Penza region

INVEST Government support: • Russian market

• Income tax on agricultural enterprises – 0% Government support: • Favorable loan rate – 1-5% • Reimbursement of CAPEX – 20% • Income tax – 0% • Tax benefits under TOSER • Subsidizing CAPEX 230 RUB/HA • Favorable loan rate – 1-5%

Projected capacity: Investment amount: Projected capacity: Investment amount: 44 Area of greenhouses 100 ha 13.2 billion rubles Garden area 300 ha 1.9 billion rubles 45 Production of 67,000 tons Network of farms of vegetables per year of 5-10 hectares PRODUCTION OF MUSHROOMS IRR – 9% (except champignons)

Market conditions for project implementation:

• Favorable climate • Low competition and high market capacity • High export potential

Resource base:

• Availability of land plots equipped with infrastructure

Sales market:

• Domestic market of the Penza region • Russian market • Export to foreign market

Government support:

• Income tax – 0% • CAPEX subsidies – 20% • Favorable loan rate – 1-5%

Projected capacity: Investment amount: 7,500 tons 2.3 billion rubles 45 Land of bold beginnings and successful investments

Domestic and business tourism Light industry

TRANSPORT AND LOGISTICS ESTABLISHMENT COMPLEX OF SEWING COMPANY

IRR – 11% IRR – 24%

Market conditions for project implementation: Market conditions for project implementation:

• Reduction of transport costs and time costs to deliver products • High potential for import substitution to consumers • Stimulates demand for domestic products in Russia and abroad • Presence of demand for manufactured products Sales market: Sales market: • Domestic market of the Penza region • Domestic market of the Penza region • Russian market IN PENZA • Russian market Government support:

Projected capacity: • Tax benefits when placed in TOSER 30,000 sq. km • Infrastructure-equipped sites in industrial parks INVEST Projected capacity: 132,000 products/year

Investment amount: Investment amount: 46 256 million rubles 332 million rubles Furniture industry and woodworking

PRODUCTION OF FURNITURE PRODUCTION OF FABRICS FOR FITTINGS FURNITURE INDUSTRY

IRR – 18% IRR – 14%

Market conditions for project implementation: Market conditions for project implementation:

• 4% of all furniture in Russia is produced in the Penza region, but • 4% of all furniture in Russia is produced in the Penza region, but it lacks production of furniture fittings. All fittings are imported it lacks production of furniture fabrics. All fabrics are imported • High export potential of products • High export potential • High potential for import substitution – volume of imported Sales market: products on the market is 85%

• Domestic market of the Penza region Sales market: • Russian market • World market • Domestic market of the Penza region • Russian market Government support: Government support: • Advantages of domestic products when participating in government procurement • Benefits for residents of industrial parks • Benefits for residents of industrial parks • Favorable loans from the Industrial Development Fund • Favorable loans from the Industrial Development Fund

Investment amount: Projected capacity: Investment amount: 1.6 billion rubles 200,000 linear meters 650 million rubles 47 of fabric/year Land of bold beginnings and successful investments

Production of construction materials

CEMENT PRODUCTION PRODUCTION OF GLASS CONTAINERS

IRR – 12% IRR – 18%

Market conditions for project implementation: Market conditions for project implementation:

• Presence of demand for manufactured products • Presence of demand for products on the part of regional • Demand of the construction industry of the Penza region beverage companies is more than 1.5 million tons • Presence of skills and production facilities in the region • Needs of the food industry are met through imports, the volume Resource base: of which is ten times higher than exports. Russian producers • Availability of raw materials in the region – own deposit of chalk do not meet the need for glass containers

IN PENZA and clay with a capacity of 90 million tons (up to 50 years of production) Resource base: • Availability of raw materials in the region – deposits of glass Sales market: sands • Domestic market of the Penza region • Russian market Sales market:

• Domestic market of the Penza region

INVEST Government support:

• Availability of a site provided with infrastructure Projected capacity: • Availability of a license to develop the deposit 550,000 tons of enriched sand Projected capacity: 850 million bottles 1.5 million tons of cement/year

Investment amount: Investment amount: 48 17.8 billion rubles 14 billion rubles MANUFACTURE PRODUCTION OF SOLID OF MEDICAL DEVICES PHARMACEUTICALS AND DIETARY SUPPLEMENTS

IRR – 26% IRR – 21%

Market conditions for project implementation: Market conditions for project implementation: • Growth of the Russian pharmaceutical market by 7-8% per year • Great potential for import substitution – share of imported on average equipment is 75% • Growth in exports of Russian pharmaceutical products by 13% • Plan to increase the share of domestic products per year on average • Availability of skills in the industry • Increasing consumer interest in healthy lifestyles and natural products to support health and longevity Sales market: • Availability of competencies: more than 25 patents for invention, 3 patents for a utility model, 5 patents for an industrial design • Domestic market of the Penza region in pharmaceutical production • Russian market Resource base: • more than 1,000 hectares of medicinal herbs in central Russia Government support: Sales market: • Subsidizing part of the cost of implementing projects for the • Domestic market of the Penza region creation of import substitution industries • Russian market • Subsidizing part of the cost of implementing projects for the • Export to foreign market creation of innovative medicines Government support: • Benefits for residents of industrial parks • Subsidizing part of the cost of implementing projects for the • Favorable loans from the Industrial Development Fund creation of import substitution industries • Subsidizing part of the cost of implementing projects for the creation of innovative medicines • Opportunity to carry out research and participate in international events as a Skolkovo resident Investment amount: Investment amount: 765 million rubles 9.8 billion rubles 49 Land of bold beginnings and successful investments

Transport infrastructure

CONSTRUCTION CONSTRUCTION OF 4-STAR HOTEL COMPLEX OF AIRPORT HELIPAD congress hotel in the city center

Market conditions for project implementation: Market conditions for project implementation:

• Lack of business class hotel services • Demand by regional consumers for helicopter services • Large volume of the interregional transport market Sales market: • Potential for government procurement of municipal transport services • Domestic market of the Penza region • Availability of a secured site for project implementation

Government support: Sales market: IN PENZA • Assistance in selecting land for the site • Domestic market of the Penza region • 15 regions within a radius of 700 km

Government support: Project parameters: 100 rooms 6,000 sq. m • Government procurement of helicopter transportation services for EMERCOM needs INVEST

Investment amount: Investment amount: 50 720 million rubles 300 million rubles CONSTRUCTION OF "PENZA-EXPO" INVESTMENTS IN HEALTH: SPA RESORTS, CONGRESS AND EXHIBITION CENTER REHABILITATION CENTERS

IRR – 27% IRR – 9%

Market conditions for project implementation: Market conditions for project implementation:

• Advantageous location of the complex among technoparks, • Presence of government demand for the facilities industrial parks, near the airport • Needs of regional businesses to present their projects Sales market: • Project implementation in the finished building of the industrial park • Domestic market of the Penza region • Russian market Sales market: Government support: • Domestic market of the Penza region • Cooperation as public-private partnership Government support:

• Favorable rate for land lease Projected capacity: • Providing the facility with infrastructure Medical complex – 3,000 sq. m

Projected capacity: Total exhibition area – 6,000 sq. m

Investment amount: Investment amount: 450 million rubles 250 million rubles 51 LandЗемля of смелых bold beginnings начинаний and и успешных successful инвес investmentsтиций IN PENZA INVEST

52 Земля смелых начинаний и успешных инвестиций

53 Land of bold beginnings and successful investments

City events

IN PENZA SECON International Conference JazzMay Annual International Jazz Music of Software Developers Festival INVEST

INNOMED All-Russian Forum "Effective Largest marketing festival in the Volga Models for Innovation in the Medical region, MARKETING FEST Industry and Healthcare"

54 BUSINESS AND EVENT TOURISM

Hotels in the city

Penza has more than 30 hotels with more than 4,300 rooms

Heliopark Residence Hotel VOYAGE hotel complex Hotel in the heart of the city with private parking 91 Hotel complex is located in the business 31 Rooms and historical center of Penza. Includes: Rooms hotel, 1st class restaurant.

Russian Hunting restaurant and hotel Chistye Prudy hotel complex complex 18 15 km from the city on the lakeshore. Largest 204 40 hectare complex in the style of Russian Rooms sculptural park in Europe, Legenda, is located Rooms architecture is located in a forested area 11 km at the complex 55 from the city Land of bold beginnings and successful investments

CULTURAL AND HISTORICAL HERITAGE

Tarkhany Lermontov Museum-Reserve V.E. Meyerhold Museum of Performing Arts IN PENZA INVEST

V.O. Klyuchevsky Museum Home V.G. Belinsky State Museum Estate

56 Troitse-Scanov monastery and cave complex Legenda Park (Narovchat)

Penza State Museum of Local History Museum of One Painting named after G.V. Myasnikov

57 Land of bold beginnings and successful investments

Your convenient guide to the Penza region

Cooperation with federal development institutions

Comprehensive support Selection of project for investors financing model

Development Attraction of industrial parks PENZA REGION of investments DEVELOPMENT CORPORATION IN PENZA

Formation Development of investment of innovative proposals technologies

Selection

INVEST of investment sites

Investment portal of the Penza region 58 investinpenza.com GOVERNMENT OF THE PENZA REGION Andrey Vyacheslavovich Luzgin Deputy Chairman of the Government of the Penza region +7 (8412) 59 23 12 [email protected] | penza.ru

MINISTRY OF ECONOMY OF THE PENZA REGION Sergey Viktorovich Kapralov Minister of the Economy +7 (8412) 59 31 31 [email protected] | econom.pnzreg.ru

PENZA REGION DEVELOPMENT CORPORATION JSC Dmitry Vladimirovich Polukarov General Director +7 (8412) 46 50 58 [email protected] | krpo.ru

Booklet compiled by: designer: Sergey Terin, photographer: Andrey Malyshkin, authors' group: Irina Muravyova, Yuliya Kireycheva, Elena Leontyeva, Kirill Chekh, Ksenia Timokhina, Marina Tarasova. We thank Andrey Luzgin, Mikhail Torgashin, Andrey Burlakov, Dmitry Polukarov for help in compiling the booklet. Thanks to the printing company Diamond LLC. 59 LAND OF BOLD BEGINNINGS AND SUCCESSFUL INVESTMENTS

Penza region