THE REPUBLIC OF NORTH OSSETIA-ALANIA THE TERRITORY OF GROWTH Investor’s Guide Dear Investor, I would like to invite you to discover The Development Agency of the the Republic of North Ossetia- North Ossetia-Alania was Alania. This is one of the most established for this purpose. southern and warmest regions of Aiming to implement Republican Russia. I am confident that North Socio-Economic Strategy 2030 the Ossetia will provide you with Agency operates as an authorized business opportunities full of service for investors and investment enormous potential. Our region projects in the Republic in the one- offers not only a beautiful stop shop mode. environment and a mild climate, but We clearly understand what also a platform for forward-thinking investors need today. I assure you, and innovative people. that those who invest in North Every year, the business community Ossetia will feel comfortable on our launches dozens of new investment territory, and today all the projects in our region, and we host administrative resources are aimed many important international at this. business and cultural events. We Welcome to North Ossetia-Alania! have established positive long term relationships with international We look forward to seeing you partners, including Metro Cash & among our business partners! Carry, Leroy Merlin, Hyundai, Samsung, DHL, Glavbolgarstroy, etc. To boost the economics of the region the Socio-Economic Strategy 2030 was developed. V. Z. Bitarov Head of the Republic of North Ossetia-Alania GENERAL INFO ON THE REPUBLIC OF NORTH OSSETIA–ALANIA North Ossetia-Alania is one of the Total area: 8,000 km2 republics of Russian Federation. It is situated on the northern slopes Population: 701,745 people of the central Caucasus between Urban population share: 46% two of the highest mountain peaks in Europe, Elbrous and Capital city: Vladikavkaz Kazbeck. Language: Russian, Ossetian North Ossetia-Alania is one of the Time zone: GMT +3 hours smallest, most densely populated Airport: Beslan (airport capacity is and multi-cultural republics in Russian Federation more than 200 000 people per year) Watch more about North Ossetia: Ranked 7th in terms of population density in Russia https://www.youtube.com/watch?v=dDIqEB (87.8 people per 1 km2) KllZ4&feature=youtu.be 3 PLACE FOR LIVING North Ossetia has an original, rich and diverse culture. The republic is now experiencing an 136 libraries intensive development in music, visual arts, theatre and cinema. 137 community hall institutions State North-Ossetian Philharmonic which is the official branch of the «Mariinsky theatre» was opened in 2017 in Vladikavkaz. 18 museums Choreography is one of the most distinctive elements of Ossetian culture. And the State Academic Folk Dance 7 theaters Ensemble "Alan“ represents a long tradition of ancestors. 2 choral ensembles The medical treatment is free of charge for foreigners. The modern medical center is the biggest in North Caucasus was opened in Beslan, providing high quality medical services. 3 institutions of vocational education The Republic cares about the health of its citizens, holding mass fitness leading by Olympic champions with about 1 000 participants. 6 concert organizations The Republic of the North Ossetia-Alania takes leading position in the North Caucasian Federal District on a share of 275 monuments of the population, which play sports. 33 gold, 40 silver, 59 federal and 159 of bronze medals have been won by adult athletes Ossetians in regional significance. 2015 in different championships. Valery Gergiev Caucasus Musical and Cultural Centre will be built in Vladikavkaz. 4 HUMAN RESOURSES Republic enjoys availability of qualified personal 5 790 Graduates with average salary 290 euro that is 1,7 times 3 universities lower than average in Russia. Social Sciences Business incubator with 200 work spaces for 6 R&D institutes employees, graduate students and university 7 948 Students students who are implementing their own 2 041 Graduates innovation–driven business projects. Work spaces are leased out free of charge for terms of 3 years or 1 academy less. Economy 3 936 Students Average monthly wage, 2017 (in rub.) 10 private higher 1 163 Graduates €943 educational 67 899 institutions Technical Sciences €692 50 000 5 060 Students 24 schools of 1 711 Graduates €421 €485 extended 30 397 31 500 education €291 Natural Sciences 21 000 5 027 Students 875 Graduates TOP 2 in RF according to a High Education Rate among gainfully occupied population 5 TRANSPORT Air routes link the republic Two global transport Rail transport in RNO-Alania with major CIS cities as well corridors: is represented by North as several European The Georgian Military Road Caucasus Railways, a branch countries. is the shortest and the of OAO Russian Railways. The Under the Federal Program cheapest overland republic has 144 km of “Development of Russia's transport corridor for operating track. A special Transport System over the Russia and Transaucasian passenger express train, period of 2010–2015”, 1.08 Region from North to “Ossetia” runs from billion rubles was allocated South. Vladikavkaz to Moscow every for the renovation of the The Transcaucasian day. In addition, there are Beslan airport facility in Highway is the shortest trains to St Petersburg, Vladikavkaz in 2015. This way between European Novorossiysk, Adler and helped to increase freight center of Russia to Turkey Anapa. and passenger traffic as and Iran from West– East. well as improved the quality of service for aircraft, passengers, and luggage. 2,300km of public motorways and roads representing a density of 286 km of road per 1,000 km2 – 4th place among Russia's regions 6 1,923 km 2,365 km 4,058 km to Moscow Armenia – Vladikavkaz – Moscow Turkey – Vladikavkaz – Moscow 7 MARKET POTENTIAL Top priority sectors by investment inflow are: Direct investments by economy Logistics, Agriculture, Industry, Tour is m as sectors in m. rub., 2018 follows. The gross regional product is 2,2 times 13964 lower per capita than an average across 21057 Russia, but advances all the republics except Dagestan in Caucasus. The GRP structure by industry represents high 14953 level of social and innovative services 50,3 bln 24793 rub as well as trade, transport logistics complex 31 bln rub and agro-industrial complex which produced 24 bln rub of regional GRP in 2017 year. Tourism/Medecine Agriculture Logistics Industry GRP structure by industry, 2017 in m. rub. 50 356 30 864 24 044 15 689 2 572 4 271 4 075 Agro-industrial Energy and fuel Industry Construction and Trade transport Tourist and Social and complex complex housing logistics complex recreational innovative complex services LOGISTICS Market potential The trade-transport and logistics complex accounts for 23% of the gross domestic output of the Republic of North Ossetia- Alania, 19% of the average annual number of employees, 26% of the added value of products produced in the Republic, 24% of investment, 15% of tax payments, 19% of the average annual number of employees with a labor productivity of 0.497 million rubles per person. In general, the market of transport and logistics services is at the stage of formation and is represented by the following companies: . Ltd Green specializes in multimodal transportation to the countries of Transcaucasia, the countries of Eastern and Western Europe, China. International logistic operators . Ltd Stars of transport provides auto and railway transportation services and warehousing of goods on the territory of Russia. Ltd Continent carries out auto and railway transportation services and warehousing of goods on the Russian territory. TLK "Southern Gate" offers storage and transportation services and customs clearance of goods on the border with Georgia. 9 INDUSTRY North Ossetia–Alania has a well-developed RNO-Alania produces: manufacturing sector and diversified agriculture. 39,3% of Russia’s zinc The most common mineral resources: poly-metallic ores containing mostly zinc and 46,2% of lead lead, limestone, dolomites, marble and basalt, clay, sand, broken natural stone, gravel 15% of hard metal alloys 30% of electric contactors The non-ferrous metals industry is one of the republic’s core manufacturing segments, which 48,8% and about half of curtain has been developed largely on the basis of significant mineral fields and deposits. The fabric produced in Russia. republic is a home to manufacturers of zinc, lead, wolfram, copper mill products and hard The republic boasts 2 oil fields metal alloys and repair shops for railway rolling with total potential reserves of stock. 10 million tones. The Electrozinc and Pobedit plants specialise in the production of heavy and hard metal More than 500 industrial companies alloys based on wolfram, zinc and including 50 large and medium organizations. molybdenum. 10 KEY ONGOING PROJECTS Over 320 m. euro of direct investment inflow in 9 key development 2018/2019 years will boost the economy of the areas within socio- economic strategy republic, creating more than 500 jobs. of RNO-Alania until 2030 year: Top 9 priority Investment projects 2018/2019 Y AGRICULTURE INDUSTRY TOURISM LOGISTICS EDUCATION MEDEСINE DEVELOPMENT TEAM CULTURE & ARTS DEVELOPMENT SPATIAL & INFRASTRUCTURE DEVELOPMENT 11 INVESTMENT INCENTIVES Government of republic is keen to create an environment that is both business–and Additional advantages investment-friendly by granting guarantees, tax for investors incentives and also by offering administrative support. Investors support by Agency Tax holidays are granted for 2 years