The Region O ering Great Opportunities!

Russian Federation

SMOLENSK REGION smolinvest.com Сontents

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Geographical Smolensk Transport Competitive Support Smolensk location Region today accessibility edge for small Regional Fund for and medium Entrepreneurship enterprises Support

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State support for State support Logistics Priority Phoenix State Safonovo State investment for investment complexes investment sites activity of small Industrial Park Industrial Park activity of large and medium and terminals enterprises enterprises

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STABNA Priority Social Development Industry Agriculture Agricultural Special Economic Industry and priorities sector Zone Economic Development Area (PSEDA) of Dorogobuzh

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State support Education Healthcare Culture Sport Tourism for agribusiness potential

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Dear Friends, Let me cordially welcome you to our ancient and heroic Smolensk land. I would like to invite you to take a closer look at our region.

The present guide for investors will be an ideal way to highlight numerous opportunities revealed by the Smolensk Region. I feel perfectly sure that the up-to-date overview the sustainable economic development; extensive of the regional potential contained in this guide will eorts are made to improve the investment climate be of great interest to senior and top management and to ensure safe investments of foreign and of companies and enterprises, representatives of domestic capital. business community and a wide range of other The Administration of the Smolensk Region has people willing to know more about the Smolensk worked out a clear investment policy. Region. We provide real support to the investors who Being considered as the Western gate of Russia, strive to establish strong and mutually bene cial Smolensk has an economically advantageous relations with the representatives of the Smolensk geographical location which creates prerequisites Region in various business elds. needed to increase and ful l the investment poten- Our region is open to cooperation with the part- tial of the region. ners who pursue serious interests and good inten- The Smolensk Region is an important transpor- tions. We express our readiness for widening coop- tation and communication hub with the shortest eration in industrial, technological, investment and highways and railways running from Central Russia scienti c areas. to Europe. I believe that the Smolensk Region will always Vast territory and rich mineral resources, signi - be a hospitable home for investors. I sincerely wish cant technological and intellectual potential make all the business community prosperity and success the Smolensk Region attractive for investors, in implementing investment projects within the Russian and international companies and nancial region. organisations. The Smolensk Region of today can boast of its Governor most favourable environment created to ensure of the Smolensk Region Alexey Ostrovsky 3 Geographical location

The Smolensk Region is the most important transportation and communication hub 60 million people live within a 500-km radius of Smolensk

SWEDEN

Tallinn FINLAND NORWAY RUSSIAN Helsinki Saint-Petersburg Oslo Stockholm Tallinn Riga ESTONIA Yekaterinburg Riga DANIA LATVIA Moscow Copenhagen LITHUANIA Vilnius Vilnus RUSSIA Hamburg Minsk POLAND Smolensk Amsterdam BELARUS Rotterdam Warsaw Nur-Sultan Hamburg Berlin Brest Brussels Bremen Kiev Luxemburg Prague SLOVAKIA UKRAINE KAZAKHSTAN Paris GERMANY Vienna Bratislava MOLDOVA Rotterdam AUSTRIA Kishinev FRANCE Bern Budapest Zagreb ROMANIA ITALY Belgrade Sevastopol CROATIA Bucharest Novorossiysk Paris SERBIA So a GEORGIA Rome BULGARIA Tbilisi ALBANIA AZERBAIJAN Tirana ARMENIA Tashkent Berlin Ankara Baku Yerevan TURKMENISTAN GREECE Athens TURKEY Dushanbe Ashgabat

Bremen Tunisia

TUNISIA SYRIA Tehran Kabul IRAQ Damascus IRAN AFGHANISTAN 4 Tripoli Bagdad It includes 2 transport corridors East-West North-South R120 from Oryol to the E30 (M1 “Belarus”) border with the Republic of Belarus A130 from Moscow SMOLENSK to the border with The Baltic Pipeline the Republic System (BPS – II) of Belarus

Main railway line Main railway line

A highway from Shanghai GAS The Yamal-Europe to Hamburg (will be laid Gas Pipeline through the territory of the Smolensk Region, commissioning is scheduled for 2024) FEDERATION

Novosibirsk

Irkutsk Chita

Zabaykalye Khabarovsk

Ulaanbaatar Vladivostok MONGOLIA

Vladivostok Beijin Bishkek KYRGYZSTAN Beijin Tokyo NORTH KOREA JAPAN

SOUTH KOREA Tokyo Shanghai

CHINA Shanghai 5 Smolensk Region today

Saint-Petersburg

Pskov Tver Region MOSCOW Region Moscow Region GAGARIN

Vitebsk VYAZMA

R120

• 140 km from the border of the SMOLENSK Smolensk Region to Moscow • a number of highways connecting Russia with European countries R120 Kaluga Region • favourable conditions for logistics development and terminals А130 Belarus functioning ROSLAVL

• 1,900 deposits of mineral resources: Bryansk - brown coal Region - gravel and sand 35% of Russian and 75% - coal clay of international cargo is • 56 deposits of fresh underground waters transported from Western Europe to Russia through the territory • 12 deposits of mineral underground waters of the Smolensk Region

Total area: Population: 25 2 urban 10,700 km 1,259 km The main transportation 50,000 km2 1,000,000 municipal settlements of motorways of public hubs are: Smolensk, people districts railways Vyazma, Roslavl

6 Transport accessibility DISTANCE BETWEEN THE CITIES ON M1 “BELARUS” HIGHWAY SMOLENSK MINSK 348 km SMOLENSK MOSCOW 380 km

Riga 1 hour 35 minutes

Paris 3 hours 40 minutes

Riga 1 hour 10 minutes

Paris Moscow– Smolensk – 4 hours 2 hours 45 minutes

4 hours “Lastochka” – 4 hours Moscow 50 minutes Smolensk Moscow – Nice – 50 hours

Minsk Minsk– Smolensk – 3 hours

Berlin 1 hour 45 minutes

Warsaw 1 hour 10 minutes

Berlin 2 hours 40 minutes

Warsaw 2 hours

7 Competitive edge

Smolensk Region has entered the Top-20 list of the Russian Regional Investment Climate Index

VYAZMA

INVESTMENT DEVELOPED INDUSTRIAL PARKS, SPECIAL PREFERENCES INDUSTRY ECONOMIC ZONE AND PRIORITY SOCIAL AND ECONOMIC DEVELOPMENT AREAS SMOLENSK

TRANSPORTATION QUALIFIED LABOUR, CONGENIAL AND COMMUNICATION HUB AFFORDABLE WORKFORCE BORDER LOCATION

ROSLAVL

ENERGY APPEALING LEGISLATION PREREQUISITES FOR TOURISM SECURITY IN THE FIELD OF INVESTMENTS DEVELOPMENT: RECREATIONAL ZONES, CULTURAL AND HISTORICAL HERITAGE

8 State support for small INVESTMENT PORTAL and medium enterprises OF THE SMOLENSK REGION smolinvest.com

INVESTMENT DEVELOPMENT CORPORATION INDUSTRY DEVELOPMENT FUND SMOLENSK REGIONAL OF THE SMOLENSK REGION FUND FOR ENTREPRENEURSHIP frprf.ru SUPPORT corp.smolinvest.com The Fund stimulates modernization of Russian sofpmp.ru The Corporation serves industry, encourages new production facilities The Fund performs micro nance, consulting to increase investment appeal to appear and ensures import substitution. The Fund services for business management and of the Smolensk Region, attract oers easy terms of cofunding the projects aimed development. It also provides guarantees investments and launch at developing new high-tech products, technical for small and medium-sized enterprises. investment projects within retro tting and establishing competitive production It is entitled to function as state-supported the region, as well as create facilities based on the best available technologies, regional industrial development fund and is investment sites for the investors oering special-purpose loans with the annual authorized to give easy loans on behalf and manage investments interest of 1% and 5% granted for up to 7 years in the of the Federal Industry Development Fund. and borrowed capital. amount ranging from 50 to 750 mln. roubles.

FEDERAL DEVELOPMENT CORPORATION OF SMALL ENTREPRENEURSHIP AND MEDIUM SUPPORT CENTRE ENTERPRISES JSC OF THE SMOLENSK REGION corpmsp.ru cpp67.ru The Corporation is liable The Centre oers its partners free for rendering nancial, information, information and consulting services marketing, property and legal support in marketing, licensing and patenting to small and medium-sized business procedures, legal support, business entities and companies creating planning, recruitment, certi cation infrastructure to provide this support. of goods, works and services.

FUND FOR SCIENTIFIC CLUSTER AND TECHNOLOGICAL SUPPORT DEVELOPMENT OF SMALL ENTERPRISES CENTRE OF THE SMOLENSK REGION ckr67.ru export67.com The Centre renders state support of The Fund performs micro nance. It also fasie.ru small and medium enterprises in the provides guarantees for small and The Fund implements programmes Smolensk Region, united in clusters and medium-sized entities and promotes their of innovative development, aimed operating in the following branches of development. The organization is entitled to establish new high-tech companies the region’s economy: IT, ax breeding, to function as state-supported regional and encourage development of the domestic and inbound tourism, industrial development fund and is existing ones, as well as to increase their composite materials and plastic. authorized to give easy loans on behalf pro ts resulting from scienti c Ecient interaction of business of the Federal Industry Development Fund. and technological activities; it also attracts communities, non-governmental The Fund also assists in receiving lease investments of small innovative enterprises organizations, educational and research nancing on preferential terms. and creates new job opportunties. institutions, public authorities and nancial institutions. 9 Smolensk regional fund SMOLENSK REGIONAL FUND for entrepreneurship FOR ENTREPRENEURSHIP support SUPPORT

MICRO LOANS* 5% 8% 10% per year per year per year

DEPENDING ON THE KIND OF ECONOMIC ACTIVITY

PROVISION OF GUARANTEES FOR SMALL AND MEDIUM ENTERPRISES

Smolensk, +7 (4812) 777-077 [email protected] sofpmp.ru Engels St. 23

* Micro loans are provided by the Smolensk Regional Fund for Entrepreneurship Support Registration entry No. 6110167000500 dated 25.10.2011

10 Micro nance:

Loans for entrepreneurs and companies: - up to 3,000,000 roubles for companies working in manufacturing - up to 2,000,000 roubles for companies working in other spheres - from 1 up to 3 years depending on the type of economic activity

5% for companies 8% for companies working 10% for companies per year working in tourism per year in other spheres per year working in trade

To receive a bank loan:

• the borrower submits a limited number of documents • no security of the pledge • the loan is provided within 5 business days • early repayment of credit

Guarantee fund:

Guarantees up to 25 mln roubles for bank loans and letters of credit no longer than for 5 years • the commission for guarantee provision does not exceed 1/3 of the key interest rate de ned by the Central Bank of Russia • it covers up to 50% of the loan or the letter of credit • decisions are made within 5 business days To be eligible for the Fund loan/guarantee the applicant should: • be registered as a tax payer and function in the territory of the Smolensk Region • be included into the Uni ed Register of Small and Medium-Sized Businesses (SMB) (https://rmsp.nalog.ru) • not have any debts into the regional budget

Smolensk Regional Fund for Entrepreneurship Support is accredited by the Federal Development Corporation of Small and Medium Enterprises and SME Bank

11 State support for investment activity of big business > 250 > 2 bln employees roubles

TAX EXEMPTIONS FOR INVESTORS

0% ASSETS TAX 300 CORPORATE 10 years mln roubles 16.5% PROFIT TAX Exemption Investment period SUBSIDIES to provide partial reimbursement of corporate pro t tax for companies implementing the priority investment projects

10 years 3 200 bln roubles jobs

Main types of economic activity: - food industry - machinery and manufacturing - production of electric, electronic and optical equipment - vehicle production - pharmaceutical industry Reimbursing up to 30% of expenses incurred for purchasing equipment to upgrade and retro t production facilities OTHER KINDS OF SUPPORT:

Investment Project design Information project and business and administrative management counselling support

12 State support of investment activity of small and 250 2 bln medium enterprises employees* roubles

TAX EXEMPTIONS FOR INVESTORS

0% ASSETS TAX 50-300 CORPORATE 5 years mln roubles 16.5% PROFIT TAX Exemption Investment period

SUBSIDIES

Reimbursing up to 50% of expenses involved in technological connection Reimbursing up to 50% of to power grid facilities with expenses resulting from paying a capacity less than 1.5 MW rst installment (advance payment) under the equipment lease agreements Reimbursing up to 30% of expenses incurred concluded with Russian leasing for purchasing equipment companies to upgrade and retro t production facilities

OTHER KINDS OF SUPPORT:

Investment Project design Information project and business and administrative management counselling support

* For medium-sized enterprises, operating in consumer goods industry and included into the list prepared by the Ministry of Industry and Trade of the Russian Federation, this gure amounts to 1,000 employees. 13 ROSLAVLSKY CLT ROSLAVL TERMINAL LLC Logistics complexes LOCATION: Smolensk Region, Roslavl District, Roslavl, Karl Marks St. 166. • total area – 25,000 m2 and terminals • capacity – 140 cargo vehicles per day SMOLENSKY CLT KRASNINSKY ТCLT TRANSIT С LLC RHENUS TERMINAL LLC LOCATION: Smolensk, Lavochkin St. 105. LOCATION: Smolensk Region, Krasny District, • total area – 37,000 m2 Krasnaya Gorka Village, Zarechnaya St., Bld. 2. • capacity – 350 cargo vehicles per day • total open and surrounding area – 39,916 m2 • capacity – 109 cargo vehicles per day TRANSCOM LLC • 3 km from the Belarus border • The rst warehouse built by the international carrier LOCATION: Smolensk Region, Vyazma, Sychyovskoe Shosse St. 79. in the Smolensk Region • total area including open storage – 14,000 m2 ru.rhenus.com • capacity – 50 cargo vehicles per day transcom-russia.com KRASNOY CLT GREEN LINE GC ALFA TRANS LLC LOCATION: Smolensk Region, Olsha Village, within LOCATION: Smolensk Region, 454 km of the М-1 a 300-m distance to the North-East of the settlement. Motorway. 2 • total open and surrounding area – 34,753.90 m2 • total area – 72,144 m • capacity – 49 cargo vehicles per day • capacity – 60 cargo vehicles per day • 2 km from the Belarus border NIKOLSKY TERMINAL LLC WAREHOUSE alfa-trans.ru FOR TEMPORARY STORAGE LOCATION: Smolensk Region, Smolensk District, Nikolskoe Village 3. STABNINSKY CLT • total area – 40,000m2 ALFA TRANS TERMINAL LLC • capacity – 200 cargo vehicles per day LOCATION: Smolensk Region, Stabna Village. ELTRANS+ LLC WAREHOUSE • total open and surrounding area – 102,410.49 m2 • capacity - 1,000 cargo vehicles per day FOR TEMPORARY STORAGE • General competence terminal LOCATION: Smolensk Region, Yartsevo, Vtoraya • Terminal of excise duty Mashinostroitelnaya St. 5/3. • One of the largest terminals in Russia • total area – 28,400 m2 • Participant of the following projects: Simplied Customs • capacity – 200 cargo vehicles per day Corridor Russia Italy alfa-t rans.ru INVEST MULTIMODAL JSC WAREHOUSE FOR TEMPORARY STORAGE RUDNYANSKY CLT LOCATION: Smolensk Region, Yartsevo, EUROTRANSSERVIS LLC Vtoraya Mashinostroitelnaya St. 9, Premise 1. LOCATION: Smolensk Region, Rudnya, 14 Let Oktyabrya St. • total area – 19,922 m2 • Convenient terminal location on R-120 highway (from • capacity – 300 cargo vehicles per day Oryol to the border with the Republic of Belarus) which connects the region with the Baltic countries, North ALFA LOGISTIC WAREHOUSE Europe, the Ukraine and the Republic of Belarus FOR TEMPORARY STORAGE 2 • total area – 21,716 m LOCATION: Smolensk Region, Yartsevo (329 km of the М-1 • capacity – 133 cargo vehicles per day Motorway). • total area – 6,328 m2 OPTITRANS LLC • capacity – 85 cargo vehicles per day

LOCATION: Smolensk Region, Smolensk District, Olsha Village, VYAZEMSKY TERMINAL LLC WAREHOUSE within a 300-m distance to the North-East of the settlement. FOR TEMPORARY STORAGE • total area – 2,150 m2 LOCATION: Smolensk Region, Vyazma, Elevatornaya St. 12. 2 14 • capacity – 100 cargo vehicles per day • total area – 20,000 m • capacity – 50 cargo vehicles per day YARTSEVSKY (10113070)

STABNINSKY ZADNEPROVSKY (10113100) (10113080)

VYAZEMSKY (10113020)

VERKHNEDNEPROVSKY (10113010)

KRASNISNSKY (10113090)

ZAPADNY (10113040)

ROSLAVLSKY (10113050)

Logistics complexes and terminals MOSCOW

TVER SAINT PETERSBURG REGION

PSKOV REGION

VYAZMA

STABNA YARTSEVO RUDNYA R120 KATYN SMOLENSKСМОЛЕНСК

KRASNAYA TIKHVINKA GORKA

R120 KALUGA DESNOGORSK REGION

А130 BELARUS ROSLAVL

TEMPORARY BRYANSK STORAGE REGION WAREHOUSE CUSTOMS AND LOGISTICS EUROPE TERMINAL 15 Priority investment sites Industrial lands

Agricultural lands 9 VNPO Resurs* * Sites with favourable opportunities Site area – 52.5 hа of technological connection to power grid Investment Site facilities from 15 to 50 MVA 10 Stalkon* Industrial Zone Site area – 7.5 hа 1 Zamoshchye Investment Site Site area – 60 hа 11 Golynki* Investment Site Site area – 59 hа 2 Koshchinskaya 12 RAAZ* Investment Site Site area – 47 hа Investment Site Site area – 89.5 hа 3 Kovalyovka 13 Roslavlskaya* Investment Site Site area – 135 hа Investment Site Site area – 110 hа 4 Kamenka Investment Site Site area – 30 hа 14 Kardymovo Investment Site Site area – 99 hа 5 Shokino 15 Smolensk-Lavochkina Investment Site Site area – 310 hа Investment Site Site area – 26 hа 6 Demidov Investment Site 16 Dorogobuzh Site area – 3,340 hа Investment Site Site area – 39 hа

7 Boyady 17 Glushenki Investment Site Site area – 197 hа Investment Site Site area – 35 hа

8 Prechistoe 18 Belkino* Investment Site Site area – 9,228 hа Investment Site Site area – 382 hа

16 Priority investment sites

SAINT PETERSBURG MOSCOW

PSKOV REGION TVER REGION GAGARIN

KHOLM ZHIRKOVSKY 18

6 8 DUKHOVSHCHINA DEMIDOV 9 VYAZMA

10 4 SAFONOVO 1 5 11 YARTSEVO RUDNYA 16 R120 14 Reserve land fund for 17 KARDYMOVO DOROGOBUZH 15 agricultural usage of more SMOLENSK 3 2 than 720 thousand ha R120 MONASTYRSHCHINA Including: 7 POCHINOK Dukhovshchina District – 44 ths. ha Elnya District – 42 ths. hа KALUGA Krasny District – 36 ths. ha REGION А130 Monastyrshchina District – 54 ths. ha BELARUS Pochinok District – 35 ths. hа ROSLAVL 12 13 Roslavl District – 53 ths. ha Rudnya District – 70 ths. ha Safonovo District – 36 ths. ha BRYANSK Smolensk District – 37 ths. ha REGION Sychyovka District – 30 ths. ha EUROPE Kholm-Zhirkovsky District – 32 ths. ha Shumyachi District – 30 ths. ha

17 Northern part of Smolensk, PHOENIX Smolensk Region State Industrial Park indpark-fenix.ru Plots occupied by the residents Vacant plots

О Plots under infrastructure facilities highly qualified specialists Plots belonging to the management company complex engineering О infrastructure free technical connection to an electric grid of high voltage free using of land during construction 82.5 ha Specialization Modern production facilities (4-5th hazard class): О metal processing machine manufacturing Infrastructure: production of metal and plastic goods Electric power substation consumer goods industry PS 110/10 22 MW Gas supply system food industry Water supply system. Artesian wooden art well of 1,500 m /hour О Waste water treatment facilities logistic equipment for greenhouses of 1,500 m /hour other productions Distribution transformer substation Motorway (category 4)

TAX CONDITIONS: Vitebsk

LAND TAX Moscow PROPERTY TAX Minsk SMOLENSK TRANSPORT TAX 0% PROFITS TAX 16.5%

18 SAFONOVO Southern part of Safonovo, Smolensk Region State Industrial Park technopark67.ru

Plots occupied by the residents highly qualified specialists Vacant plots complex engineering Plots under infrastructure facilities infrastructure free technical connection to Infrastructure: an electric grid of high voltage Electric power substation free using of land during PS 110/10 26 MW construction О Gas supply system 6 ha Water supply system К Sewage system Specialization О Waste water treatment Modern production facilities facilities Motorway (category 4) (2-5th hazard class): ax processing metal processing instrumentation engineering production of composites reinforced plastic production 30 ha other productions

30 ha – Russian Linen Ltd., construction of a state-of-the-art ax mill 6 ha – a resident 130 ha

TAX CONDITIONS: Vitebsk

LAND TAX Moscow PROPERTY TAX SAFONOVO Smolensk TRANSPORT TAX 0% Minsk PROFITS TAX 16.5%

19 STABNA www.stabna.ru Special Economic Zone

FREE CUSTOMS MODE Tax Incentives and Cost Benefits Duty-free import of equipment, raw materials Accelerated depreciation rate and supplies into the SEZ territory equal to 2 Accelerated deduction of R&D expenditure Federal and regional tax privileges Vitebsk Regional and federal subsidies, including support of exports STABNA Moscow Minsk Smolensk

TAX CONDITIONS:

LAND TAX (5 years from the month of emergence of title to each Special Administrative land plot) PROPERTY TAX Regime (10 years from the month following the month One stop-shop approach of property registration) 0% Right of land redemption TRANSPORT TAX Stable investment environment (10 years from vehicle registration) guaranteed PROFITS TAX Infrastructure During the rst 7 years 2% Electricity supply: 25 MW 370 ha (reduced high voltage tariff) During the next 3 years 7% Gas supply: 6,000 m3 per hour Water supply: unlimited Until 2069 15.5% Priority Social and Economic Location: Dorogobuzh PSEDA advantages: Development Area (PSEDA) • the rst PSEDA in the Central Federal District of Dorogobuzh • Monotowns Development Fund Non-Pro t Organization nances: - PSEDA residents at annual interest rate of 5% in the amount ranging from 100 mln to 1 bln roubles PSKOV REGION TVER REGION - creating the monotown infrastructure ГАГАРИН • the best possible bene ts and incentives for PSEDA residents • developed infrastructure ДЕМИБОВ VYAZMA Accommodation of modern production facilities: R120 • food products, non-alcohol drinks DOROGOBUZH textile goods, clothing, leather and goods made SMOLENSK • R120 Smolensk – 110 km of leather Moscow – 330 km • woodworking and production of goods made KALUGA M1 Motorway – 30 km REGION of wood and cork Total area is 1,834 ha. printed products А130 Infrastructure: • BELARUS ROSLAVL electrical substation, • chemical substances and chemical products artesian well, gas, sewage (except for production of fertilizers and nitrogen treatment facilities, compounds) BRYANSK telecommunications. REGION • pharmaceutical products and materials for medical use • rubber and plastic goods other non-metal mineral products New jobs Exemption Investment • period • nished metal goods, except for cars and 20 20 employees 10 years mln roubles equipment • furniture as well as other nished goods • plant growing (construction of greenhouses PROVISION OF A LAND PLOT WITHOUT BIDDING for growing vegetables, grain crops) • dairy products Accommodation of modern enterprises in the TAX BENEFITS FOR service sector: THE PSEDA RESIDENTS: • healthcare system • sport, recreation and entertainment CORPORATE INCOME TAX • laundry and dry-cleaning CORPORATE PROPERTY TAX • hotel business • centres for call processing LAND TAX 0% • goods packaging • renting personal hygiene items and household INSURANCE PREMIUM 7.6% goods 21 Development priorities

LOGISTICS SERVICES COMPOSITE MATERIAL DAIRY FARMING 14 temporary storage warehouses, PRODUCTION AND MILK PROCESSING 6 customs and logistics terminals An available industrial park specialized Conductive market environment, in composite material production state support

INFORMATION TECHNOLOGIES FLAX CULTIVATION WOODWORKING IT-cluster, AND PROCESSING 2.5 million m3 of the unused specialized academic institution Good natural and climatic conditions, felling every year ax cluster available

GLASSHOUSE HORTICULTURE AGRICULTURE TOURISM Capability of connecting >2 mln ha of land for agricultural usage, 40 museums, 2,125 cultural heritage sites to FGC UES PJSC networks, rapidly developing animal (historical and cultural monuments), 703 prospective demand within husbandry and crop farming archeological heritage sites, nature the region and Moscow reserves, such as the Smolensk Lakeland metropolitan area National Park (“Smolenskoye Poozerye”) and the Gagarinsky Natural Park

22 Industry

The Smolensk Region is one of industrial regions of Central Russia

GAGARIN

VYAZMA SAFONOVO

YARTSEVO SMOLENSK DOROGOBUZH

DESNOGORSK

• 1/4 of workforce is employed ROSLAVL in industrial production • > 30% gross regional product • about 30% of tax revenues

Industrial centres totally manufacturing over 90% of the overall amount of industrial goods produced within the region 23 Structure of the industrial production

2.9% 0.6% 10.4% 0.5% 0.4% 20.9% 2.5% 0.3% 7.4% 0.1% 1.0% Ledvans JSC 0.9% EGGER DREVPRODUKT GAGARIN LLC (M.L.C. Electronics, China) EGGER GBMH, AUSTRIA 4.1% 12.5%

0.8% 4.4% 1.3% 0.05% 1.5% 4.4% 8.0% 2.5% Dorogobuzh PJSC 5.2% 3.3% 3.8% VKP LT LLC Vyazma Tannery (Acron Group) (Thimeco S.r.l., Italy)

Extraction of mineral resources Metallurgical production Food production Production of ready-made metal products except for machines and devices Beverage production Manufacture of computers, electronic and optical products Production of textiles Electrical equipment manufacturing Production of garments Production of machines and devices, not included into other classifications Leather and leather goods production Manufacture of motor vehicles, Wood working and manufacture of products from wood trailers and semi-trailers and cork, except for furniture items, as well Manufacture of other vehicles as production of goods from straw and wicker and transport equipment Paper and paper goods production Furniture manufacturing

Printing and data storage media copying Production of other finished goods

Production of chemical goods Repair and mounting of machines and devices and substances Production of medicinal products Electrical power, gas and steam supply, and materials applied in medicine air conditioning Production of rubber and plastic goods Water supply, water discharge, wastewater collection and waste recovery, pollution Production of other non-metallic elimination 24 mineral products THE SMOLENSK REGION HAS A HIGH POTENTIAL Agriculture FOR AGRIBUSINESS DEVELOPMENT

1. Land for agricultural usage: - 1.7 mln ha agricultural land - including 0.4 mln ha cultivated area IN 2018 2. Plant growing 3. Animal husbandry Gross yield of agricultural crops: Gross output: - grain – 265 thousand tons - milk – 190 thousand tons - ax – 3.5 thousand tons - livestock and poultry - rape – 13.3 thousand tons for slaughter (live weight - potato – 135 thousand tons basis) – 85 thousand tons - vegetables – 60 thousand tons - eggs – 270 mln 4. Social development of rural areas: - constructed (purchased) housing – 3.2 thousand m2 - constructed gas supply networks – 23 km - constructed water supply networks – 13.5 km - 6 socially important projects with citizen participation implemented

25 Agricultural sector INVESTMENT PROJECTS IN AGRICULTURE

Smetanino Poultry Farm LLC KRASNAYA GORKA LLC Russian Linen Ltd. Gorodnyanskie Sady LLC (Smolensk District) (Kardymovo District) (Safonovo Industrial Park) (Novodugino District) • expansion of the existing egg • construction of a goat breeding • construction of a ax • establishing an industrial apple orchard production through construction farm accommodating 1,000 dairy processing facility, based on an intensive tree growing of 3 poultry houses and goats and a workshop for goat including a ax straw technology at a total area of 102 hectares a warehouse for storing egg milk processing with the rated processing plant and a yarn and setting out an apple processing facility. packaging boxes. capacity of 5,000 litres per day. factory. Nasha Zhitnitsa PSKOV REGION Agro-Industrial Firm JSC (Gagarin District) Agroservis Smolensk • creating a livestock breeding TVER REGION Diversied Enterprise LLC complex for reproducing and (Smolensk District) Novodugino GAGARIN fattening meat cattle, able to • expansion of capacities by accommodate up to 2,400 heads means of increasing the of breeding ock and equipped reproductive herd consisting of with a slaughter and meat black-and-white Holstein heifers to reach 600 heads; purchase of processing house. modern farm machinery and SAFONOVO equipment; as well as Krol i K LLC construction of two cow sheds Kardymovo (Gagarin District) R120 and an administrative building. • extension of a rabbit-breeding farm based on a new feed lot to SMOLENSK accommodate 15,820 units of Baltutino LLC (Glinka District) parent stock and 1,024 units of • expansion of production to POCHINOK nucleus stock as well as expansion reach 2,100 units of milking of the processing workshop. dairy herd by means of KALUGA production upgrading. R120 REGION BELARUS Rusperepel LLC А130 (Dorogobuzh District) Sadki LLC (Roslavl Dstrict) ROSLAVL • setting up production of poultry products • setting up a sh husbandry with (quail eggs, quail meat and semi- nished a capacity of 1,000 tons, specializing products from quails, boiled and smoked BRYANSK specialty products made from quail meat). in breeding sturgeons with subsequent REGION caviar production. Galaktika-O LLC (Roslavl District) • construction of a sh farm, with the potential to PRIORITIES OF AGRICULTURAL breed 1,000.00 tons of commodity trout annually. COMPLEX DEVELOPMENT: Smolensky Greenhouse Facility LLC (Roslavl) • construction of a modern greenhouse complex, with • dairy cattle breeding, raw material processing, a capacity of 22 ths. tons of output products a year. nished goods production • beef cattle breeding • vegetable farming, including protected vegetable • 2.2 mln ha of land applicable for agricultural growing usage, including 1.7 mln ha of agricultural land • ax cultivation, primary processing and advanced • 213 agricultural organizations re nement, linen goods production • 326 farming enterprises and individual • rape growing and processing entrepreneurs • cultivating and processing grain and grain legume • 117 thousand people having private farm 26 crops into cereals (buckwheat, pea, wheat) households State support SUBSIDIES for agribusiness

REIMBURSEMENT PLANT GROWING ANIMAL HUSBANDRY FOR LOAN INTEREST RATES

1. Subsidies on partial reimbursement of 1. Subsidies on support of pedigree livestock 1. Subsidies on partial reimbursement of expens- costs for purchasing elite seeds. farming. es for paying interest on investment loans. 2. Green box subsidies for plant growing. 2. Subsidies on increasing productivity of dairy 2. Subsidies on partial reimbursement of expens- 3. Subsidies on partial reimbursement of costs cattle farming. es for paying interest on the loans given to farm- for carrying out land clearing operations and 3. Subsidies on partial reimbursement of expens- ing enterprises, to people having private farm adding ameliorants to reduce soil acidity of es related to keeping commercial dairy herd. households, and agricultural cooperatives (ex- cept for the credit ones). reclaimed territories involved in agriculture 4. Subsidies on partial reimbursement of expens- (soil liming and (or) phosphorite applica- es on sanitation measures to prevent bovine leu- tion). kemia virus. 4. Subsidies on partial reimbursement of costs 5. Subsidies on partial reimbursement of costs for AGROINDUSTRIAL COMPLEX for hydro technical reclamation activities. maintaining high yielding dairy cow population. MODERNIZATION AND 5. Subsidies on partial reimbursement of costs 6. Subsidies paid to milk processing plants on AGRICULTURAL MACHINERY for perennial plantations establishing and purchasing raw milk in the Smolensk Region for maintenance. producing whole-milk products. PURCHASING 7. Subsidies on partial reimbursement of costs for process audits. 1. Subsidies on partial reimbursement of costs for purchasing agricultural machinery used to pro- duce agricultural goods. 2. Subsidies on partial reimbursement of costs for RURAL DEVELOPMENT AGRICULTURAL INSURANCE purchasing agricultural machinery and (or) equipment for ax ber production and (or) pri- mary processing. 1. Social transfers on housing construction 1. Subsidies on partial reimbursement of costs for (purchase) for people living in rural areas, in- paying insurance premiums, charged under the 3. Subsidies provided to industrial processing en- cluding young families and recent gradu- agricultural insurance contracts, covering crop terprises on partial reimbursement of costs for ates. and (or) livestock insurance. purchasing milk processing equipment. 2. Subsidies on gas infrastructure develop- ment in rural areas. 3. Subsidies on developing water supply sys- BUILDING AGRICULTURAL tems in rural areas. GRANT SUPPORT FACILITIES CAPEX 4. Subsidies on integrated development of sites designed for building compact residen- 1. Grants given to beginning farmers for setting 1. Subsidies on partial reimbursement of direct tial housing in rural areas. up and development of farming enterprises. costs incurred for building and (or) upgrading 5. Grant nancing of local initiatives oered by 2. Grants for developing family cattle breeding agricultural facilities. people living in rural areas. farms on the basis of farming enterprises, includ- ing individual entrepreneurs. 3. Grants given to agricultural consumer coopera- tives for improving the supply of materials and machinery.

27 Education

PRE SCHOOL EDUCATION SCHOOL EDUCATION

373 organizations 375 organizations 42 thousand people 88.3 thousand people

133 organizations Vocational education: 56.9 thousand people 33 organizations 97 training programs

Higher education: 19 organizations 68 training programs

FURTHER EDUCATION PROFESSIONAL EDUCATION 28 Health care 73 REGIONAL STATE FUNDED HEALTHCARE FACILITIES

The major healthcare facilities: - Smolensk Regional Clinical Hospital, Regional State Funded Healthcare Facility (hereinafter RSFHF) - Smolensk Regional Children’s Clinical Hospital RSFHF - Smolensk Regional Clinical Hospital for War Veterans RSFHF - Clinical Hospital for Emergency Care RSFHF - Perinatal Centre RSFHF - Smolensk Centre for AIDS Prevention and Treatment RSFHF - Smolensk Blood Centre RSFHF - Smolensk Regional Institute for Pathology RSFHF - Research Institute for Antimicrobial Chemotherapy at the Smolensk State Medical University of the Ministry of Healthcare of the Russian Federation - Federal Research Centre for Resistance Monitoring

FEDERAL CENTRE FOR TRAUMATOLOGY, ORTHOPEDICS AND PROSPHETICS, FEDERAL STATE FUNDED INSTITUTION OF THE MINISTRY OF HEALTHCARE OF THE RUSSIAN FEDERATION SMOLENSK

29 THE SMOLENSK REGION BOASTS HUGE Culture CULTURAL POTENTIAL

Smolensk State Drama Theatre Smolensk named after A.S. Griboyedov Regional Philharmonia

Smolensk Regional Public Library Cultural and Exhibition Centre named after A.T. Tvardovsky named after the Tenishevs is acknowledged as one of the best regional libraries in Russia

518 60 4 3 LIBRARIES MUSEUMS PARKS THEATRES CULTURE PHILHARMONIA AND EXHIBITION CENTRE

30 THE SMOLENSK REGION ENJOYS A DEVELOPED NETWORK Sport OF RECREATIONAL AND SPORTS FACILITIES

2,458 sports facilities can accommodate over 60 thousand people simultaneously: 24 5 57 24 STADIUMS ICE PALACES SWIMMING POOLS SKIING COMPLEXES

FIELD OF PHYSICAL CULTURE AND SPORT EMBRACES: The Smolensk Region annually holds Smolensk State Academy of Physical Culture, Sport and Tourism special winter and summer olympiads, Smolensk State School of Olympic Reserve regional competitions in track and fields, Training Centre for Smolensk Region Sports Teams skiing and other sports for disabled children. Being members of regional Centre for Adapted Physical Culture and Sport in the Smolensk Region teams, they also take part in Russian 10 specialized sports schools of the Olympic reserve for children, national and international competitions. 30 sports schools for children and 29 sports clubs

The Smolensk Ring motor-racing track (in Verkhnedneprovsky urban settlement, Dorogobuzh District) meets all international standards of circuit races. The track is 3,357 m long and 12-15 m wide. www.smolenskring.ru 31 2,125 703 150 Tourism potential cultural archeological 88 40 natural tourist agencies museums heritage heritage sanctuaries sites sites

FOCUS AREAS:

recreational tourism religious tourism

educational, rural and ecological health tourism war history Yuri Gagarin Maria Tenisheva Mikhail Glinka tourism (1934-1968) – (1858-1928) – (1804-1857) − and event the rst human the founder of the Museum the founder tourism in space of Russian Antiquities of the Russian in Smolensk (“Russkaya classical music Starina” Museum) EDUCATIONAL TOURISM

EVENT TOURISM features fascinating spectacular shows:

International Fireworks Festival #Zvezdopad. Grand Prix Winner of the Russian Event Awards, included in Top-200 best events of the year (Smolensk)

International Historical Reenactment and Slavic Culture Festival at Gnezdovo (Smolensk)

SmetaninoFest, the main gastronomic event (Smolensk)

The Smolensk Region is annually included into the Top 5 low-cost travel destinations in Russia 32 Tourism potential RELIGIOUS TOURISM The main centres are Smolensk, Vyazma and Boldino.

Assumption Cathedral, Holy Trinity Boldino Monastery Smolensk, 1677 of St. Gerasim, Boldino village, Dorogobuzh district, 1530

Patriarch Kirill of Moscow and All Russia. Since 26 December 1984 – Archbishop of Smolensk and Vyazma. Prior to the patriarch enthronement – Church of Archangel Michael Church of Odigitria, Metropolitan of Smolensk (Svirskaya Church), Monastery of John the Precursor, and Kaliningrad Smolensk, 1180-1197 Vyazma, 1638

ECO TOURISM IN THE SMOLENSK REGION

Velizh Przhevalskoye Demidov Rudnya Sychyovka

Gagarin Ugra

THE GAGARINSKY NATURAL PARK • close proximity to the Moscow Region • implementation of an ambitious investment project of creating infrastructure of the Vazuza&Yauza park tourism cluster in the THE SMOLENSK LAKELAND NATIONAL PARK Gagarin District “SMOLENSKOE POOZERYE” THE UGRA RIVER COUNTRY • 35 unique glacial lakes “UGRANSKOE PORECHYE” • extensive network of hiking, water and cycling tourist routes and ecological paths • the Ugra river being one of the most popular • dozens of camping and recreation sites areas for water and recreation tourism in the • recreational facilities and accommodation Central Russia 33 ER N OFF ING NE GIO W O RE Governor of the Smolensk P E Region, Reception PO H tel. +7 (4812) 38-66-11, fax +7 (4812) 38-68-51 R T [email protected] admin-smolensk.ru T N U I Smolensk Region Administration Representative N T I S Under the Government of the Russian Federation T E tel. +7 (495) 221-23-36, fax +7 (495) 221-23-34, I [email protected] pred.admin-smolensk.ru/ E V S N ! I Department for Investment Development of the Smolensk Region tel. +7 (4812) 20-55-20, tel./fax +7 (4812) 20-55-39, [email protected] dep.smolinvest.com Investment Development Corporation of the Smolensk Region tel. +7 (4812) 77-00-22, [email protected] corp.smolinvest.com Smolensk Regional Fund for Entrepreneurship Support tel. +7 (4812) 77-70-77, [email protected] sofpmp.ru Entrepreneurship Support Centre of the Smolensk Region tel. +7 (4812) 67-20-90, [email protected] export67.com Department of Industry and Trade of the Smolensk Region tel./fax +7 (4812) 20-55-20, [email protected] dpt.admin-smolensk.ru Department of Food and Agriculture of the Smolensk Region tel./fax +7 (4812) 29-22-41, [email protected] selhoz.admin-smolensk.ru Export Support Centre of the Smolensk Region tel. +7 (4812) 20-55-75, [email protected] cpp67.ru Investment Portal of the Smolensk Region smolinvest.com Switchboard for SME Support +7 (4812) 638-038

Smolensk, 2019