Investment Potential OF REGION

2018 GENERAL INFORMATION

2 44 340 kм 7,42 MLN PEOPLE total area population 4,5 MLN PEOPLE economically active population 1 2 3 2rd place on turnover of retail 30 MLN PEOPLE trade live in the Moscow agglomeration, which accounts for 20% of the population of 1 rd 2 3 3 place

1/3 CONSUMER in terms of living expenses in Russia standarts

EXTERNAL TURNOVER 23,5 BLN USD (2016) >550 BLN EUR 3RD PLACE AFTER MOSCOW AND ST. PETERSBURG consumer basket 2 TRANSPORT INFRASTRUCTURE

REGULAR TRANSIT WORLDWIDE 77 MLN PASSENGERS PER YEAR

Development of transport 97, 1 MLN TONS infrastructure in Moscow Region ANNUAL TRUCKING BY ROAD TRANSPORT

CENTRAL RING ROAD 10,9 MLN TONS ANNUAL CARGO TRANSPORTATION BY RAIL 4,5 BLN. USD

320 KM 4 INTERNATIONAL AIRPORTS 77 MLN PEOPLE 70 000 VEHICLES PER DAY ANNUAL PASSENGER TRAFFIC FINAL IMPLEMENTATION: 2025 11 DIRECTIONS FEDERAL HIGHWAYS 3 SCIENTIFIC POTENTIAL OF MOSCOW REGION

JOINT INSTITUTE FOR NUCLEAR RESEARCH 8/13 3 cooperation with about 800 institutions RUSSIAN SCIENCE CITIES SPECIAL ECONOMIC ZONES in 62 countries located in Moscow Region , Istok, Stupino Quadrat

COLLABORATION WITH INTERNATIONAL №3 ≈ 90 CENTRES: BY THE NUMBER OF SPECIALISTS THOUSAND SPECIALISTS Involved in research and development Involved in innovative developments (after Moscow and St. Petersburg) UNESCO (United Nations Educational, Scientific and Cultural Organization), №3 50 CERN (European Organisation for Nuclear Research), BY EDUCATION LEVEL THOUSAND PEOPLE annually receive higher education CLAF (Latin-American Centre for Physics), 1/5 ICTP (International Centre for Theoretical Physics) RUSSIAN SCIENTIFIC RESEARCHES and research centres in France, USA, Japan and other are carried out in the Moscow Region countries.

4 EDUCATION

WORKERS FOR INDUSTRIAL BRANCHES OF THE TOP ENTERPRISES RUSSIAN UNIVERSITIES

MGIMO University () 6 2 49 16 Moscow State University () UNIVERSITIES OF THEM PROFESSIONAL OF THEM ARE ARE TECHNICAL EDUCATIONAL TECHNICAL National Research University Moscow Aviation SPECIALIZATION INSTITUTIONS SPECIALIZATION Institute (Stupino) Russian State University for the humanities (Domodedovo) 50000 Russian State Social University (Pavlovskiy Posad) PEOPLE ANNUALLY RECEIVE HIGHER EDUCATION CENTERS OF YOUTH №3 BY EDUCATION LEVEL 16 INNOVATIVE CREATIVITY (robotics, 3D-modeling, engine construction, design, machine and instrument making) 5 HOUSING CONSTRUCTION

1 st 2 1 place in Russia by the volume 3 of housing construction 1500 mln mln MANUFACTURERS m2 m2 9,6 4,6 AND ENTERPRISES Moscow Region Krasnodar Region OPERATE IN MOSCOW REGION IN THE CONSTRUCTION mln mln 3,9 m2 3,3 m2 MATERIALS INDUSTRY Moscow Tyumen Region

6 THE GROSS REGIONAL PRODUCT OF MOSCOW REGION

1 5,9 4,2 2 3 3rd place 5,3 4,3 after Moscow City and Tyumen region in terms of gross regional product = 54 billion 8,1 25,8 euros (5% of Russia’s GDP) The gross regional product of the subjects of the 18,1 20,8 Russian Federation billion euros RUSSIA 1106,46 MOSCOW

Wholesale and retail trade Public administration 226,55 TYUMEN Manufacturing Construction 97,88 Real estate transactions, Health and social services MOSCOW REGION lease and provision of services Production and distribution 53,76 ST. PETERSBURG Transport and communications of electricity, gas and water 50,59 TATARSTAN STRUCTURE OF THE GROSS REGIONAL PRODUCT, 2016 (%) 30,66 7 KEY INDUSTRIES

PHARMACEUTICALS CHEMICAL LOGISTICS LIGHT INDUSTRY AGRICULTURE AND PRODUCTION AND BIOTECHNOLOGY INDUSTRY FOOD INDUSTRY OF CONSTRUCTION MATERIALS

PRODUCTION TRADE AUTOMOTIVE INDUSTRY, PRODUCTION AERONAUTIC TOURISM OF FURNITURE MECHANICAL ENGINEERING, OF ELECTRONICS PRODUCTION AND PRODUCTION OF AUTO AND ELECTRONIC ASTRONAUTICS COMPONENT ENGINEERING

8 POINTS OF GROWTH

MULTIFUNCTIONAL AIRPORT HOTELS

BUSINESS CENTERS AREAS KRASNOGORSK – ISTRA SHEREMETYEVO SERGIEV POSAD – SHEREMETYEVO ZHUKOVSKY ISTRA DOMODEDOVO DOMODEDOVO KLIN

9 NATIONAL RATING OF INVESTMENT CLIMATE

Agency for strategic initiatives

1 2 21 9 3 place place

MOSCOW REGION 2016 MOSCOW REGION 2017, 2018

1 1 2 3 1st place* 2 3 1st place* by level of PPP development in Russia on development of industrial parks in 2017-2018

* National rating of the Association “PPP Development Center” * Geo-information system of the Ministry of Industry and Trade of Russia

10 KEY FOREIGN ENTERPRISES IN THE MOSCOW REGION

Food industry

Сonstruction materials

Mechanical engineering, automotive components, electrical engineering

Pharmaceuticals, biotechnology Medical products

Chemical industry

Retail

Manufacture of furniture and packing 11 Key BeNeLux Companies in Moscow Region

1 2 GUIDELINES FOR INVESTOR INVESTOR SUPPORT

Investor Support Institutes Support Areas

Ministry of Investments and Innovations Selection of a land plot; of Moscow Region; Providing a land plot without tendering; Moscow Region Development Corporation; Ministry of Investments and Innovations of Moscow Region Center for Support of Construction Activity Connection to the all infrastructure,

Tax benefits and subsidies;

Assistance in obtaining approvals and permits; Moscow Region Center for Development Support of Corporation Construction Activity Industrial development fund of Moscow Region (up to 3,9 mln EURO)

13 INFRASTRUCTURE

3 SPECIAL ECONOMIC ZONES

RESIDENTS OVER 1000 13 TECHNOLOGY PARKS

OVER 15 BLN EUR INVESTMENTS

TOTAL NUMBER: 74 INDUSTRIAL SITES 58 INDUSTRIAL on the territory of Moscow Region PARKS

14 COMPENSATION COSTS ON ENGINEERING INFRASTRUCTURE

REQUIREMENTS investments 1,1 to 13,3 mln EUR REQUIREMENTS reimbursement Registration of the enterprise on the territory up to of Moscow Region 30 NEW WORKPLACES WITH SALARY > 600 EUR 1,1mln Subsidy not more than 10% of the total project cost

investments 13,3 to 66,4 mln EUR REQUIREMENTS reimbursement up to 50 NEW WORKPLACES WITH SALARY > 600 EUR 1,3mln Water supply Electrification Gas Railway

investments from 66,4 mln EUR REQUIREMENTS reimbursement up to 100 NEW WORKPLACES Local treatment Heat supply Road infrastructure WITH SALARY > 600 EUR 2,7mln facilities

15 TAX BENEFITS FOR RESIDENTS OF MOSCOW REGION Regional Investment Contract

Investments > 664 000 EUR Special Investment Contract Conclusion of Special Investment Contract New project / Modernization with Russian Federation and Moscow Region required Agreement with Moscow Region required

Income tax (basic – 20%) – 15,5% for 7 years Investments 10 000 000 EUR Property tax (basic – 2,2%) – 0% for 8 years Income tax (basic – 20%) – from receiving the first profit: 0% till 2025 10% from 2026 to 2028 15,5% from 2029 New project Property tax (basic – 2,2%) – 0% for 10 years No agreement required

Income tax (basic – 20%) – 15,5% for 4 years Resident of Special Economic Zone Property tax (basic – 2,2%) – 0% for 4 years Residency agreement with Moscow Region required

Income tax (basic – 20%): Regional Investment Contract Conclusion of Regional Investment Contract 3% till 8 years 8% from 9 till 14 years 16,5% after 14 years with Moscow Region required Property tax (basic – 2,2%) – 0% for 10 years Income tax (basic – 20%) – 10% up to 2027 Transport tax – 0% for 5 years Property tax (basic – 2,2%) – 0% for 4 years Land tax – 0% for 5 years 16 SUPPORT MEASURES

UNIQUE TAX BENEFITS: on property on income

SPECIAL INVESTMENT CONTRACT

PROVIDING A LAND PLOT WITHOUT TENDERING

PARTIAL REIMBURSEMENT OF UTILITY NETWORK INVESTMENT COSTS

“One window” support: Center For Support Of Construction Activity (Css.Mosreg.Ru) 17 OPEN GOVERNMENT

For business: Annual meetings of Governor of Moscow Region with Ambassadors of foreign countries and representatives of foreign business

Regular meetings with representatives Meeting with the Vice-President of investment block and line ministries of Lombardy Region (Italy) Mr. F. Sala for challenges of foreign business

Participation in international forums

Official visits of Moscow Region delegation in foreign countries with presentation and G2B (B2B) Meeting with Extraordinary and Plenipotentiary Ambassador of France to Russia Ms. Sylvie Bermann 18 CONTACTS

ANTON LOGINOV Deputy Minister of Investments and Innovations of Moscow Region E-MAIL: [email protected] TEL: +7 (498) 602-08-30

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