Investment opportunities ofSverdlovsk region

October, 2010

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1. Regional economy performance

2. Ten reasons to invest into Sverdlovsk Region

Sverdlovsk regionStructure of the presentation

3. Investment infrastructure

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Regional economy performance

Sverdlovsk region

Sverdlovsk region

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Rating of Sverdlovsk Region (2009):

Industrial Production 6 Retail turnover 4

Wholesale turnover 4

Capital Investments 9

Foreign Investments 8

194.8 thousand sq. km4.4 million people

Sverdlovsk region

20,5

22

3,4

18,3

8,4

0,45,3

2,9

4,9

7Trade

Other

Mining

Metal production

Equipment production

Woodworking

Other manufacturing

Agriculture

Construction

Transport

66

GRP structure in 2008, %

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GRP 2008

The fifth place in Russia in 2008

GRP of Sverdlovsk region (bln.USD)

24,06

32,19537,926

26,41

05

10152025303540

Economic data

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SVERDLOVSK REGION FIXED CAPITAL INVESTMENT

Investments in 2009

Foreign investments (million USD)

Investments, overall 1336,9which includes:

Direct investments 88,0

of which: contribution to capital 58,1 credits from foreign owners 28,3

Portfolio investments 11,2

Other investments 1267,7

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Trade partners of the Sverdlovsk region

Foreign trade

Basic categories of goods exported from Sverdlovsk region

99

10 reasons to invest into Sverdlovsk Region

Sverdlovsk region

1010

The foreign trade turnover of the Sverdlovsk Region constituted more than $9 bln in 2009

We have trade partners from 125 countries

Foreign investments in Sverdlovsk Region constituted more than $1 bln

10 reasons to invest into Sverdlovsk Region

1. Stable Financial Position of the RegionCredit rating from Standart&Poor’s agency :BB, stable outlook, 2009

2. Business-friendly climate№ 3 among «Best Russian cities for business» according to Forbes’ survey of 2010

3. Active foreign economic activities125 countries – trade partners of Sverdlovsk region

1111

The main city of the region – Ekaterinburg ranks third among the transport centers of Russia:

6 federal autoroads, 7 main railway roads, airport “Koltsovo”

Developed motorways networkInternational transport corridor «West – East»Ekaterinburg ring-roadFederal motorway corridors

Koltsovo international airport hubDelivers services for international and domestic long-distance air traffic

Sverdlovsk railwayThe main transit and handling center for freight and passenger flows going in «Europe-Asia direction»

10 reasons to invest into Sverdlovsk Region

4. Developed transport-logistic infrastructure

111,1

114,8114

109,7 109,7

110,9

115,5

January February March April May June July1212

10 reasons to invest into Sverdlovsk Region

5. Positive dynamics at the Labor Market

6. Stable position of industry

A number of companies continue their technical re-equipment and implementation of innovative technologies to enhance their competitiveness.

Industrial production index (from the beginning of 2010 corresponding to the same period of 2009)

1313

More than 130 scientific and research organizations working in various fields :• Microbiology•Chemistry•Nanotechnologies•Physics•More than 20 others trends

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10 reasons to invest into Sverdlovsk Region

7. Unique scientific-research potentialSverdlovsk region is one of the biggest scientific-research centers of Russian Federation

8. Reach resource base

25 ore-bearing deposits8 copper mines

In Sverdlovsk region are mined and produced (of Russian volume):

100% of vanadium

and 70% bauxites,

72% of asbestos,

56,4% of talc and soapstone,

11,3% of limestone,

12% of kaolin,

11% of refractory clay

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10. Prospects for development of recreation zones

Sverdlovsk region is reach with natural resources, hot springs,

several ski mounting resorts are being developed.

10 reasons to invest into Sverdlovsk Region

9. Main city of the region is in compliance with international standards of business infrastructure

The developed financial infrastructure is presented by leading foreign banks, the international advisers

There are a lot of business centers and modern hotels.

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Sverdlovsk region

Investment infrastructure

Sverdlovsk regionDevelopment instruments

1.The Middle Ural development corporation

2.Venture capital fund of Sverdlovsk region

1.Technological parks2. Industrially parks 3.The exhibition center

SEZ “Titanium valley” (Verhnya Salda)

WWW.U2020.RU The Internet support of investment projects in Sverdlovsk Region

1717

1818

Regional government guarantees

Subsidy of interest rates

Changes in the legislationBills prepare:-Reduction of income tax for newly created enterprises during 5 years (18% -> 13,5%)-Reduction of property tax from addition of mid-annual property value of the enterprise (2,2% -> 0%)

Assistance in investors attraction Creation and promotion of regional brand

Investment activity of Region

Financial Support

Administrative Support

Sverdlovsk regionState Support of Investment Activities

Sverdlovsk region Small And Medium Enterprise

1919

Support of Small And Medium Enterprise:

Financial Support

Administrative Assistance

Information Support

Educational and Consulting Assistance

The guarantee under the credit from the Regional supporting fund of small enterprises- reimbursement of costs enterprises up to $ 165 000

Microfinancing and grants (municipal supporting funds of small enterprises)- Business start up grants up to $ 16 500

Cheap credit at the level of the refinancing rate

Investors attraction assistance for the innovative projects (Sverdlovsk venture fund)

Reduction of overhead costs of the start up level (business incubator)- 5 business incubators of the total area more than 7000 м2

Training for the first time entrepreneurs «Start your business»-more than 6 000 people a year are trained-more than 20 thousand people a year are consulted-more than 2 000 people a year open new companies

Welcome to Sverdlovsk region!

2020