Guide to Investment Republic of Tatarstan PwC Russia (www.pwc.ru) provides industry-focused assurance, tax, legal and business consulting ser- vices. Over 2,500 professionals working in PwC offices in Moscow, St Petersburg, Ekaterinburg, Kazan, Novosibirsk, Krasnodar, Voronezh, Yuzhno-Sakhalinsk and Vladikavkaz share their thinking, experi- ence and solutions to develop fresh perspectives and practical advice for our clients. The global network Contents of PwC firms brings together more than 180,000 people in 158 countries. PwC first appeared in Russia in 1913 and re-established its presence here in 1989. Since then, PwC has 4 Introduction by 22 The Republic of Tatarstan’s strategic eco- been a leader in providing professional services in Russia. Rustam Minnikhanov, nomic development priorities President of the Republic of Tatarstan • Chemical & petrochemical According to an independent survey of major companies and organisations in Russia from 2008 to 2012, Foreword • Machinery & automotive parts over the past five years PwC has remained the strongest brand among the Big Four. This survey was con- 6 ducted on an anonymous basis by an independent research organisation in accordance with ESOMAR by Managing Partner of PwC Russia • Development, real estate, services & standards. tourism 8 Tatarstan Investment • IT & telecommunications Development Agency • Construction • Medicine & pharmaceuticals 12 General information on Tatarstan • Agriculture & food processing • Halal industry • Overview • Education and science 34 Investment climate • Workforce • Sporting events • International investment forums • Transport infrastructure • Investment portal • Investment infrastructure 18 Brief data points illustrating Tatarstan’s • Alabuga Special Economic Zone economic potential and level • Investment areas of investment 45 Leading banks in Tatarstan • GRP and GDP • Industrial production 47 Trade and Economic Representative • Investment in fixed capital Offices of the Republic of Tatarstan • Foreign investment • Foreign trade 50 Contacts This overview has been prepared in conjunction with Tatarstan Investment Development Agency (TIDA). This publication has been prepared for general guidance on matters of interest only, and does not con- stitute professional advice. You should not act upon the information contained in this publication with- out obtaining specific professional advice. No representation or warranty (express or implied) is given as to the accuracy or completeness of the information contained in this publication, and, to the extent permitted by law, PwC network, its members, employees and agents accept no liability, and disclaim all responsibility, for the consequences of you or anyone else acting, or refraining to act, in reliance on the information contained in this publication or for any decision based on it. PwC | Republic of Tatarstan | 3 Introduction by Rustam Minnikhanov, innovation is the Kazan IT-Park, which fo- (schools, kindergartens, hospitals, shop- cuses on mass commercialisation of projects ping centres, restaurants, etc.), and several President of the Republic of Tatarstan in information and communications tech- classes of residential areas (from apartment nologies. A second IT-Park in Naberezhnye buildings to townhouses and cottages), the Chelny was opened in 2012. bulk of which will be rented to employees of resident companies with a purchase option. A priority development project that was launched this year is Kazan Smart City, We are proud to state with confidence that an urban development project designed to the work we are doing is yielding results. A Ladies and gentlemen, readers and partners: promote investment in high technology, range of leading multinational companies – medicine, education, and tourism. Kazan among them Ford-Sollers, Rockwool, Hayat Please allow me to introduce you to the Republic Smart City will lie on 650 hectares of land Group, Daimler, Cummins, ZF, Schneider of Tatarstan. Located at the crossroads of impor- three kilometres from Kazan International Electric, Fujitsu, Armstrong, 3M, RR Don- tant trade routes connecting East and West, North Airport and 15 kilometres from the Kazan nelley, Air Liquide, Piscar Vernici S.r.l., and South, Tatarstan is one of the most dynami- city centre. Kazan Smart City will have four Kastamonu Entegre, Saria Bio Industries, cally developing regions of the Russian Fede- main precincts: Central Business Precinct, Hygiene Technologies Ltd, and Kiekert AG – ration. Financial and investment experts alike Metropolitan Park, Knowledge & Education have already chosen Tatarstan as a location concur that our republic has tremendous potential Precinct, and a Special Economic Zone for for their business. for attracting foreign direct investment. high technology production. For my part, I can assure you that the key In addition, in June 2012 construction start- economic policy priorities of Tatarstan’s With this in mind, the Tatarstan Investment al parks and facilities, business services and ed on the Innopolis Innovation Centre, a leadership have always been and will contin- Development Agency (TIDA) was founded outsourcing centres, and other conditions new city in Russia specialising in IT business ue to be aimed at making the republic more in 2011 to increase the effectiveness of our that meet investor needs and expectations. and training. Innopolis is a smart city with attractive for global investors and support- investment facilitation and promotion. TIDA subdivided business infrastructure (tech- ing the development of business. operates as a one stop centre, helping inves- The most successful of these facilities is nological parks, R&D centres, etc.). It will tors along every step of the investment cycle. the Alabuga Special Economic Zone (SEZ), feature Russia’s first university specialis- We would be glad to see you join our list of where residents have access to fully-estab- ing in information technologies (working in successful investors and partners and en- TIDA joined the World Association of Invest- lished infrastructure for manufacturing, partnership with Carnegie Mellon University joy success and prosperity while realizing ment Promotion Agencies (WAIPA) in Septem- engineering, utilities, transport and cus- in the United States), as well as a full range your investment project in the Republic of ber 2011. In February 2013 TIDA was elected toms, while also enjoying a range of tax and of social and commercial infrastructure Tatarstan. to the WAIPA directorship for Eastern Europe. customs benefits. The Investment Board of the Republic of Ta- The best known site for chemical and poly- tarstan was founded in 2012 with the aim of mer production companies is the Himgrad boosting investor confidence and improving Technological Park. Furthermore, Kamsky the overall investment climate of our region. Industrial Park Master, which was specifical- ly designed for heavy engineering enterpris- Our republic is also active in establishing in- es, is one of the republic’s prized initiatives. Rustam Minnikhanov vestment infrastructure, including industri- The youngest facility in Tatarstan’s drive for President of the Republic of Tatarstan 4 | Guide to Investment | PwC PwC | Republic of Tatarstan | 5 Foreword by Managing Partner of city specialising in information technologies tries, the International Winter Forum Invest where the potential population is expected in Tatarstan, and the Kazan Venture Fair are PwC Russia to reach 150,000 people. annual events that help acquaint investors with Tatarstan’s potential, while at the same Furthermore, the creation of Kazan Smart time providing an important platform for City, a new urban development that will business networking. help advance high technology, medicine, education, and tourism, will help boost the We should also mention the impressive work republic’s potential for innovation-oriented that Tatarstan has done, as well as large- development. Kazan Smart City will foster scale projects that are just beginning as part sources of growth for the entire region, es- of preparations for the 27th World Summer tablishing Kazan as an international busi- Universiade of 2013, the 2015 World Aquat- ness hub. ics Championships, and the 2018 FIFA World Cup, for which a number of games will be The Tatarstan Investment Development held in Kazan. PwC is proud to be a Partner Agency (TIDA) was founded in 2011 to and Official Professional Services Provider help promote investment into Tatarstan for the 27th World Summer Universiade of and facilitate and support investors enter- 2013. The firm is also eager to help strength- ing the region. TIDA operates as a “one en Tatarstan’s image internationally. The Republic of Tatarstan has been one of ness, not only in traditional sectors, but also stop shop” for all investors and invest- the most attractive regions in Russia for in- in newly developing industries. For example, ment projects. We are confident that this guide, which vestors for many years. Thanks to the effec- the Baltach Halal Agricultural Park has been was prepared in collaboration with TIDA, tive work of the Government of Tatarstan in recognised for its contributions to business International forums and events play an im- will be a valuable resource for potential raising the attractiveness for investment and development in rural areas since this if the portant role in enhancing the investment at- investors and assist them in properly as- setting up support for investors, the republic first site of its kind for representative