INVESTMENTS AND BUSINESS

IN THE KALININGRAD REGION

Representative office of the NEW OPPORTUNITIES Kaliningrad region government MAXIMUM LENGTH GENERAL OF THE TERRITORY INFORMATION

Sovetsk 108 КМ108

ADMINISTRATIVE CENTRE Svetlogorsk KALININGRAD

KALININGRAD Baltiysk Chernyakhovsk 15,1 K Gusev КМ² REGION TERRITORY

SOVETSK 205 КМ 40 K PEOPLE

CHERNYAKHOVSK BALTIYSK BORDER TERRITORIES 37 K PEOPLE 33 K PEOPLE 22 BALTIC SEA CITIES SVETLOGORSK GUSEV N REPUBLIC 22 K PEOPLE 28 K PEOPLE W E OF LITHUANIA S

Representative office of the REPUBLIC Kaliningrad region 2 government OF POLAND POPULATION

7 600 GRADUATES ANNUALLY

60% 16 1 WORKING-AGE HIGHER POPULATION MLN PEOPLE EDUCATION INSTITUTIONS 9 900 5,2% PEOPLE PER YEAR

MIGRATION UNEMPLOYMENT GROWTH RATE 66 PEOPLE/КМ²

POPULATION

Representative office of the DENSITY Kaliningrad region 3 government 12 PLACE IN RUSSIAN FEDERATION ECONOMIC 524 $ 0,04 $ 30 576 ₶ 3 ₶ PERFORMANCE PER MONTH Kw/H AVERAGE SALARY ELECTRICITY PRICE 400 $ 100 $ 26 000 ₶ 6 500 ₶ PER YEAR SQ M PER YEAR 8,5 INTERNET RENTAL COST FOR COMMERCIAL AND OFFICE BLN $ PROPERTIES

494 BLN ₶ 0,7 $ FOREIGN TRADE 45,4 ₶ PER L TURNOVER PETROL PRICES AS FOR 2017 0,02 $

1,17 ₶ 7 2,0 PER MINUTE OUTGOING CALLS BLN $ BLN $

410,7 BLN ₶ 118,9 BLN ₶

GROSS REGIONAL INVESTMENTS IN THE FIXED PRODUCT CAPITAL OF ORGANIZATIONS Representative office of the AS FOR 2017 AS FOR 2017 Kaliningrad region 4 government THE NATIONAL The National Rating of the investment climate assesses the efforts of the regional authorities about creating RATING favorable conditions for doing business, identifies best practices. OF ASI It’s results stimulate competition in the struggle for investment at the regional level.

15 POSITION OF THE KALININGRAD REGION PLACE IN THE RATING OF ASI 2018

39 PLACE 15 PLACE 2017

39 PLACE 71 PLACE 2016

71 PLACE

2016 2017 2018 Representative office of the Kaliningrad region 5 government SPECIAL ECONOMIC ZONE >117 1 BLN ₶ MLN ₶

UNTIL 1,9 BLN $ 0,02 MLN $ 2045 TOTAL AMOUNT MINIMUM INVESTMENT OF DECLARED AMOUNT THROUGHOUT THE REGION INVESTMENTS 2018 >190 2017 РЕЗИДЕНТ THE SEZ REGIME COVERS 137 THE WHOLE REGION RESIDENTS

FEDERAL LAW 2006 №16-FL OF 10.01.2006 1996 ADMINISTRATION OF THE SEZ IS IMPLEMENTED ESTABLISHMENT BY THE REGION SEZ FEDERAL LAW №13-FL OF 22.01.1996 Representative office of the Kaliningrad region 1991 SEZ «YANTAR» government 5 RESOLUTION OF COUNCIL OF MINISTERS OF RSFSR OF SEPTEMBER 25, 1991 № 497 SOCIAL PREFERENCES 7,6% CONTRIBUTIONS UNTIL 2025 FOR RESIDENTS FOR NEW JOBS OF SEZ FOR ORGANIZATIONS THAT BECAME RESIDENTS UNTIL 2022

0% RECYCLING FEE FOR EQUIPMENT BELOW 3 YEARS OLD AT THE DATE OF ACQUISITION 8 DAYS ELECTRONIC VISAS 0% 1.1% FROM 01.07.2019 PROPERTY TAX PROPERTY TAX REDUCED DURATION OF STATE EXPERTISE 1 YEAR 6 YEARSS 12 YEARS 60 45 PROJECT DAYS DOCUMENTATION 0% 10% 90 45 ENVIRONMENTAL INCOME TAX DAYS INCOME TAX

AS SOON AS FIRST PAYMENT IS RECEIVED

NOT AFTER 3 YEARS LAND TAX 0% FIRST 5 YEARS FROM RESIDENT STATUS RECEIVE DATE

Representative office of the Kaliningrad region government 7 SEZ RESIDENT TOTAL AMOUNT OF DECLARED INVESTMENTS IN 3 YEARS THRESOLD FOR ENTRY

IT WEB-MEDIA MANUFACTURING R&D AGRICULTURE OTHER HEALTH CARE TOURISM INDUSTRIES 1 10 50 150 MLN ₶ MLN ₶ MLN ₶ MLN ₶

CLASS OF OKVED CLASS OF OKVED 62/63/72 86

DEVELOPMENT OF HEALTH ACTIVITIES MANUFACTURING SOFTWARE FISHERY

INFORMATION TECHNOLOGY FISH FARMING

RESEARCH AND AGRICULTURE DEVELOPMENT RECREATIONAL ACTIVITIES

Representative office of the Kaliningrad region TOURISM government 8 SEZ RESIDENT 3 STEPS TO GET RESIDENTIAL STATUS OF SEZ

1 DOCUMENTS SUBMISSION TO UNIFIED REGISTER OF SEZ RESIDENTS

2 DOCUMENTS OVERVIEW

3 TIME-LIMIT FOR REQUIREMENTS FOR LEGAL ENTITIES ACQUIRING RESIDENTIAL STATUS IS 30 DAYS STATE REGISTRATION INVESTMENTS SHOULD BE IMPLEMENTED IN ARE MADE THE KALININGRAD REGION IN THE KALININGRAD REGION FEDERAL REGISTRATION OF THE LEGAL ENTITY IS PROCESSED GOODS ARE PRODUCED IN GENERAL SYSTEM IN THE TERRITORY OF THE THE KALININGRAD REGION OF TAXATION IS USED KALININGRAD REGION

Representative office of the Kaliningrad region government 9 CUSTOMS FREE ZONE

CONSUMPTION

THE EAEU MARKET 0% STORAGE, IMPORT DUTY SORTING 180 PAYMENT ALL GOODS, OF DUTIES DAYS COMPONENTS, IMPORT RAW MATERIALS 0% VAT DEFERMENT FROM ALL OVER THE WORLD IMPORT VAT DEEP RECYCLING CONCLUSION OF AN AGREEMENT WITH THE MINISTRY DAYS OF ECONOMIC DEVELOPMENT OF THE KALININGRAD REGION DUTY DRAWBACK

Representative 50 BLN ₶ office of the Kaliningrad region IN 2017 government 10 RESIDENTS OF KALININGRAD REGION

Representative office of the Kaliningrad region 11 government SAR CURRENCY SPECIAL REGULATION

ADMINISTRATIVE REGION TRANSFERS WITHOUT RESTRICTIONS OF FOREIGN CURRENCY AND CURRENCY WITH FLEXIBLE REGIME OF THE RUSSIAN FEDERATION OF TAX AND CURRENCY ON THE TERRITORY OF THE RUSSIAN FEDERATION WITHOUT OPENING ACCOUNTS REGULATIONS FOR TAX PREFERENCES TRANSFERS WITHOUT RESTRICTIONS INTERNATIONAL OF FOREIGN CURRENCY AND CURRENCY OF THE RUSSIAN FEDERATION FROM COMPANIES AND TO THE TERRITORY OF THE RUSSIAN FEDERATION WITHOUT OPENING ACCOUNTS INCOME TAX ON INCOME FOREIGN CURRENCY SETTLEMENTS TO WHOM 0% IN THE FORM AND CURRENCY OF THE RUSSIAN FEDERATION OF DIVIDENDS IC WHEN INTERNATIONAL COMPANY

INCOME TAX ON INCOME ON AUGUST 3, 2018, THE RECEIVED BY FOREIGNERS PRESIDENT OF THE RUSSIAN IHC IN THE FORM OF DIVIDENDS FEDERATION VLADIMIR 5% INTERNATIONAL ON SHARES OF IHC PUTIN SIGNED A PACKAGE OF HOLDING LAWS PROVIDING FOR COMPANY THE CREATION OF SPECIAL ADMINISTRATIVE REGIONS (SAR) WITH SPECIAL PIHC CONDITIONS FOR PUBLIC INCOME TAX CONDUCTING ECONOMIC INTERNATIONAL ON INCOME FROM THE SALE ACTIVITIES FOR FOREIGN HOLDING 0% OF SHARES OF FOREIGN COMPANIES COMPANIES COMPANY

Representative office of the Kaliningrad region 12 government WHY PREFERENTIAL TERMS 6 FOR CONNECTION KALININGRAD TO FACILITIES REGION?

STRONG POTENTIAL 7 OF TOURISM AND ENTERTAINMENT INDUSTRIES

MINIMAL LEGISLATIVE 3 FISCAL BURDEN 8 GUARANTEES OF IMMUTABILITY OF THE CONDITIONS

THE ENTRY POINT TO INTEGRATION INTO 1 THE EAEU AND THE 4 THE EU TRANSPORT EU MARKETS INFRASTRUCTURE

GROWING POPULATION 2 PROACTIVE 5 INVESTMENT POLICY OF THE AUTHORITIES

Representative office of the Kaliningrad region 13 government PROSPECTIVE AMBER-JEWELRY INDUSTRIES MANUFACTURING

MEDICAL TOURISM

IT CLUSTERS

SHIPBUILDING AND SHIP REPAIR

FISHERY MEDICINE AND AND FISH PHARMACEUTICS PROCESSING

RESEARCH ENGINEERING AND DEVELOPMENT

MEDIA BUSINESS AND FILM PRODUCTION

AGRICULTURE AND FOOD SUPPLY

TOURISM

AUTOMOTIVE AND MACHINE BUILDING CONSTRUCTION

Representative office of the Kaliningrad region 14 government ТOURISM TOURISM AND RECREATION CLUSTERS INDUSTRY OF THE KALININGRAD REGION «Raushen» in Svetlogorsk district;

«Krantz» in Zelenogradsk district;

«Neukuhren» in Pionersky district;

«Palminken» in Yantarny city district;

«Pillau» in Baltiysky district; Тоp-5 «European Baikal» in Nesterovsky district; BEACHES OF THE CURONIAN «Königsberg» in Kaliningrad city SPIT MOST POPULAR

10 CITIES FOR SUMMER WEEKEND TRIPS BEST IN RUSSIA 1st ACCORDING TO TOURISTIC ROSTOURISM CAPACITY BEACH IN PLACE IN OF THE REGION THE VILLAGE RUSSIA OF YANTARNY VALUE FOR MONEY Тоp-10 1,5 2017 1st MLN ACCORDING TO TRIVAGO.RU MOST POPULAR IN RUSSIA TOURIST DESTINATIONS 2,0 2018 TO RECEIVE REWARD BY FOREIGN TOURISTS MLN «THE BLUE FLAG»

ACCORDING TO POPULAR HOTEL BOOKING SITES 2,7 2020 MLN

Representative office of the Kaliningrad region 15 government JUST A FEW TERRITORIAL HOURS LOCATION RUSSIA

ANY KIND OF TRANSPORT

KALININGRAD REGION

IS A MODERN LOGISTICS CENTER YOU CAN REACH OR DELIVER YOUR CARGO TO MOST EUROPEAN COUNTRIES

STOCKHOLM

OSLO MOSCOW PSKOV 850 КМ 535 КМ 600 КМ RIGA 1,5 HOUR

COPENHAGEN 335 КМ 15 HOUR 1080 КМ 575 КМ 22 HOUR 350 КМ VILNIUS

550 КМ 300 КМ BERLIN 16 WARSAW TERRITORIAL 534 КМ INTERNATIONAL THE NETWORK WATERWAYS OF INLAND LOCATION WATERWAYS MARITIME TRANSPORT

THE ONLY NON-FREEZING PORT ON THE BALTIC

Cargo and passenger ships docs, railway ferries docs EUROPEAN Cargo and container warehouses TRANSPORT Equipment for customs, CORRIDORS border and other related procedures

PASS THROUGH THE REGION

Riga – Kaliningrad – Gdansk 519 Kaliningrad – Vilnius – Minsk RAILWAY CONNECTION Kaliningrad region has both: TRANS-EUROPEAN Narrow-gauge railway KM/THOUSAND КМ² TRANSPORT CORRIDORS (European)

Wide-gauge railway ROAD DENSITY 1А (former USSR countries) THIS SIGNIFICANTLY Riga – Kaliningrad – Gdansk EXCEEDS THE AVERAGE RUSSIAN LEVEL 9Д (61 KM/THOUSAND KM2) Kiev – Minsk – Vilnius – Kaliningrad AIRPORT

ROADS 5TH FREEDOM OF THE AIR Representative office of the Kaliningrad region 17 government LOGISTICS RUSSIA LATVIA (EU) RAILWAYS LITHUANIA (EU) RUSSIA BELARUS Sovetsk LITHUANIA

KALININGRAD Baltiysk Chernyakhovsk Nesterov

Mamonovo Bagrationovsk Zheleznodorozhny

BRANEVO

RAILWAY BARTOSZYCE TRANS- SKANDAVA CONNECTION POLAND (EU) EUROPEAN PASSENGER TRANSPORTATION TRANSPORT CORRIDORS Russia: MOSCOW SAINT-PETERSBURG ADLER CHELYABINSK RAILWAY HUBS: Belarus GOMEL gauge width 1520mm (Russian gauge) CARGO TRANSPORTATION Kaliningrad: 7 ROADS gauge width 1435mm whole Russia Chernyakhovsk: 4 ROADS (West European track) China-Europe-China

Representative office of the Kaliningrad region 18 government LOGISTICS LITHUANIA (EU) NIDA

ROADS PANEMUNE DUBKI Checkpoint under construction RAMONISKIAI Sovetsk

Гурьевск

KALININGRAD Baltiysk ЧерняховскChernyakhovsk Nesterov

KYBARTAI Mamonovo Bagrationovsk Zheleznodorozhny

GRONOWO GRZHECHOTKI POLAND (EU) BEZLEDY GOLDAP BORDER CROSSING WITH POLAND: WITH LITHUANIA: 8 Bagrationovsk - Bezledy Sovetsk - Panemune (via Queen Louise bridge through the BORDER WITHOUT Neman) Mamonovo - Gronovo TERMINALS DELAY Mamonovo 2 - Grzhechotki Chernyshevskoe - Kybartai Gusev - Goldap Morskoe - Nida 2 Frontier - Ramoniskiai TRANS- EUROPEAN HIGHWAYS Representative Dubki office of the Kaliningrad region 19 government LOGISTICS TRAIN-FERRY TRANSPORT MARITIME PORT OF BALTIYSK - PORT OF UST-LUGA TRANSPORT

SAINT- PETERSBURG 1,5 MLN TONS

PORT OF WAG/YEAR UST-LUGA 18 498 ESTONIA 521 MILES NON-FREEZING SEA PORTS RUSSIA HOURS KALININGRAD 36 BALTIYSK LATVIA PIONERSK well-developed logistics of cargo sea terminals

LITHUANIA SAINT- FERRYBALTIYSK TRAIN GDANSK PETERSBURG

PORT OF BALTIYSK

Representative office of the Kaliningrad region government 20 LOGISTICS EXPANSION OF GEOGRAPHY OF FLIGHTS AIR YEAR-ROUND SUMMER TERM TRANSPORT Moscow Krasnodar St. Petersburg Grodno / Brest Minsk Gomel Cherepovets Barcelona Tashkent Anapa Kazan Antalya AIRPORT CONGESTION Ufa Arkhangelsk New Urengoy Murmansk Prague Vitebsk Berlin PETERSBURG Ekaterinburg 50 20 CHEREPOVETS Warsaw TONS OF TONS OF CARGO/ CARGO/ DAILY DAILY KHRABROVO CAPACITY AT THE MOMENT AIRPORT MOSCOW КАЗАНЬ 5TH FREEDOM MINSK OF THE AIR BERLIN GRODNO WARSAW HOMEL RECONSTRUCTION BREST IS COMPLETE

PRAGUE

KRASNODAR

TASHKENT BARCELONA 21 INFRASTRUCTURE IN PROCESS PROJECTS

KHRABROVO MARINE TERMINAL AIRPORT IN PIONERSKY

AIRSTRIP ELONGATION CRUISE LINERS NEW TERMINAL RO-RO CARGO TERMINAL 5TH FREEDOM OF THE AIR

8,8 BLN ₶ 8,2 BLN ₶ SCHEDULED

2018 2019 2020

NORTHERN NORTHERN 7-9 PHASE OF 1 TRAIN-FERRIES EASTERN CONSTRUCTION BYPASS BYPASS BALTIYSK - OVERPASS PRIMORSKY RING (1 AND 2 SUB-STEPS (2 STEP OF 2 STAGE) (3 AND 4 SUB-STEPS UST-LUGA OF 1 STAGE) OF 1 STAGE)

4 BLN ₶ 550 BLN ₶ 10,3 BLN ₶ 29,2 BLN ₶ 14 BLN ₶

Representative office of the Kaliningrad region 22 government THE KALININGRAD CHPP-2 WITH A CAPACITY POWER OF 900 MW IS ONE OF THE MOST MODERN AND ENVIRONMENTALLY FRIENDLY POWER ENGINEERING PLANTS IN RUSSIA. COMMISSIONING OF THE SECOND BLOCK OF CHPP-2 ENSURED THE NEEDS OF THE REGION IN ELECTRICITY AND CREATED ENERGY SURPLUS.

CHPP-2 900 MW 2 BLOCKS THE VOLUME INCREASE OF THE KALININGRAD 1 UNDERGROUND GAS STORAGE

1 TALAKHOVSK AYA CONSTRUCTION 2 OF A LIQUEFIED NATURAL GAS IN 2018 PLANS TERMINAL 2 PREGOLSKAYA THREE GAS-TURBINE ARE IN 2018 POWER PLANTS WILL UNDERWAY TO BE COMMISSIONED WITH A TOTAL CAPACITY OF 602 MW 3 MAYAKOVSK AYA

Representative office of the Kaliningrad region government 23 INDUSTRIAL

Sovetsk

Neman PARKS KHRABROVO

TECHNOPOLIS GS CHERNYAKHOVSK KALININGRAD Baltiysk Chernyakhovsk Nesterov

ECOBALTIC

CHERNYAKHOVSK KHRABROVO Small and medium engineering 1146 HA (including the production 271,6 HA of components in the automotive SPECIALIZATION: 3 km from the airport/ and shipbuilding clusters) Transport and logistics 17km from Kaliningrad Production of building materials Manufacture of jewelery Glass industry and other products of amber Electrotechnical industry Biopharmaceuticals and TECHNOPOLIS GS ECOBALTIC production of pharmaceuticals

230 HA 43,1 HA

SPECIALIZATION: SPECIALIZATION: CONDITIONS: 189K ₶ PER YEAR FOR 1 HA h-tech products Manufacture of pharmaceutical products INVESTMENT PHASE Production of satellite dishes Cultivation of agricultural crops Manufacturing of cardboard Confectionery production 2,9 MLN ₶ FOR 1 HA corrugated packaging Warehousing services and customs clearance PRICE OF THE LAND Housebuilding IT

Representative office of the Kaliningrad region 24 government EDUCATION IMMANUEL KANT BALTIC FEDERAL UNIVERSITY

Institute of Living Systems Engineering and Technology Institute Institute of Physical and Mathematical Sciences and Information Technologies Medical Institute European Business School

Science and Technology Park KALININGRAD STATE and Factory 10 400 TECHNICAL UNIVERSITY Research Institute of Applied Informatics STUDENTS and Mathematical Geophysics IT and Situational Centre IN HIGHER EDUCATION PROGRAMS Agriculture and Aquaculture Center for Medical Biotechnology Food Biotechnology, high-technology PARTICIPANTS seafood processing Energy Security 5-100 Small-tonnage Shipbuilding and Ship Repair

Marine Convention Training

The main marine university of Russia

The main university for the economy of the Kaliningrad region

Representative office of the Kaliningrad region 25 government MULTIFUNCTIONAL SPECIALIZED 100 SERVICES CENTRE REGIONAL SUPPORT FOR BUSINESS 5 FUNDS IN ONE PLACE

loans to industrial enterprises

microloans

guarantees

business missions, exhibitions 60 consultations, training SEATS HIGHLY-QUALIFIED STAFF LECTORIUM 25 SEATS 60 CO-WORKING SEATS WI-FI FREE ZONE CONFERENCE-HALL COMFORTABLE WAITING AREA

Representative office of the Kaliningrad region 26 government CONCIERGE- SERVICE PROVISION OF SOCIAL FOR INVESTORS INFRASTRUCTURE FOR MOVING EXPERTS

ASSISTANCE IN FINDING EMPLOYMENT FOR THE MEMBERS OF MOVING EXPERT ASSISTANCE FAMILY IN SELECTION OF EMPLOYEES

ASSISTANCE IN ACCOMMODATION FOR STAFF MEMBER FAMILIES DEDICATED ACCOUNT MANAGER

SELECTION OF OFFICE SPACES AND INDUSTRIAL PREMISES

Representative office of the Kaliningrad region government BUSINESS EXPORT-IMPORT GOODS

ENVIRONMENT Food and agricultural raw materials

Products of fuel and energy complex

Products of the chemical industry, rubber

Wood and pulp and paper products 53 028 Metals and metals products Machinery, equipment and vehicles COMPANIES 1204

JOINT 4 851 1 393 127 COMPANIES MANUFACTURINGAGRICULTURE MINING OPERATIONS 1702 FOREIGN COMPANIES 94 FOSSIL FUEL EXTRACTION

36 EXCEPT FOSSIL FUEL EXTRACTION

Representative office of the Kaliningrad region 28 government SUPPORT MAIN WEBSITES FOR INVESTOR IN KALININGRAD REGION OF THE AUTHORITIES INVESTINKALININGRAD.RU MSK.GOV39.RU

REPRESENTATIVE OFFICE JSC « KALININGRAD REGION Ministry of industrial policy, DEVELOPMENT CORPORATION» entrepreneurship OF THE KALININGRAD and trade development REGION GOVERNMENT of kaliningrad region THE SINGLE WINDOW UNDER THE GOVERNMENT FOR WORKING Ministry of economy OF THE RUSSIAN FEDERATION, WITH INVESTORS AND COMPANIES of kaliningrad region MOSCOW IN KALININGRAD Baltic business club SINGLE POINT OF CONTACT TO COMMUNICATE 236023, Kaliningrad, Krasnaya street, bldg 63A Foreign investors association WITH INVESTORS inkaliningrad region AND ENTERPRISES IN MOSCOW Tel.: +7 (4012) 67-39-39 E-mail: [email protected] Address: 123242, Moscow, www.kgd-rdc.ru Kaliningrad chamber of trade and industry Krasnaya Presnya street, bldg. 7 tel.: (499) 252-66-00 Jsc «russian export center» fax: (499) 252-66-25 Kaliningrad branch e-mail: [email protected] www.msk.gov39.ru Business support center

Representative office of the Kaliningrad region government