The investment policy of the - Invest in Russia · 4 Kemerovo Region Investment Profile...

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The investment policy of theKemerovo Region has the followingpriorities:

creating a favourable investment climate;

improving regional legislation on investment andinnovation;

creating an investment infrastructure and newinvestment sites;

developing a transport infrastructure;

establishing intersectoral and territorial clusters;

making a better use of state support to investmentactivity;

strengthening measures to attract investment in hightech projects;

using pension, insurance and mutual funds to imple-ment major infrastructural projects;

developing public-private partnerships;

providing information and staff support to investmentprojects; and

eliminating administrative barriers and minimisingcorruption risks.

An excerpt from the Investment Memorandum ofthe Kemerovo Region(adopted by the Kemerovo Region AdministrationBoard, Regulation No. 1187-r of 30 December2011)

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Kemerovo Region Investment Profile

Foreword by Aman Tuleyev, Governor of the KemerovoRegion ..................................................................................... 4

Section 1.Introduction ......................................................................... 6

1.1. Geography ..................................................................... 6

1.2. Administrative and territorial divisions ................. 6

Section 2.Investment Policy and Investment Potential ......... 8

2.1. Investment strategy .................................................... 8

2.2. Investment priorities ............................................... 8

2.3. Resources ...................................................................... 92.3.1. Natural resources ............................................ 92.3.2. Recreational resources ................................... 102.3.3. Human resources ............................................. 11

2.4. Infrastructure ................................................................ 132.4.1. Transport infrastructure ............................... 132.4.2. Power supply infrastructure .......................... 142.4.3. Innovative infrastructure.Kuzbass Technopark. Register of Technoparkresidents ................................................................... 142.4.4. Favoured economic zones.Residents of favoured economic zones .............. 18

Contents

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3.3. Agency for Investment Promotionand Protection .................................................................. 36

3.4. State programmes for investment,innovation and enterprise support .............................. 40

3.5. Legal framework and key formsof state support ................................................................ 40

3.6. Company eligibility for state support .................. 40

3.7. Company eligibility for tax relief ........................... 42

3.8. Procedure for providing state support toinvestment and innovation entities andmanufacturers ................................................................. 43

3.9. Procedure for providing state support totechnopark residents ...................................................... 43

3.10. Procedure for investorsin capital construction .................................................... 44

3.10.1. Investor's plan of action ............................ 443.10.2. Block diagram.Procedure for providing landfor construction ........................................................ 463.10.3. Construction authorities ............................... 49

3.11. Supporting major projects of social andeconomic significance .................................................... 50

3.11.1. Major projects of social and economicsignificance ............................................................... 503.11.2. Priority projects ........................................... 513.11.3. Major active investment sites .................. 53

2.5. Business infrastructure .............................................. 212.5.1. Kuzbass Chamber of Commerce andIndustry ...................................................................... 212.5.2. Agencies in charge of foreign trade ......... 212.5.3. Exhibition companies ................................... 22

2.6. Single Window Principle of Providing State andMunicipal Services ......................................................... 23

2.6.1. Multipurpose centres of state andmunicipal services ................................................... 232.6.2. Regional Call Centre of Stateand Municipal Services .......................................... 242.6.3. Municipal centres for smalland medium-sized enterprise support ............... 252.6.4. Municipal funds for smalland medium-sized enterprise support .............. 28

2.7. Regional instruments of economicdiversification and prevention of dependenceon a single industry ......................................................... 29

2.7.1. Monotowns ..................................................... 292.7.2. Kuzbass agglomeration ............................... 292.7.3. Cluster policy ................................................. 302.7.4. Major industrial clusters ............................. 30

Section 3.State Support of Investment, Innovationand Production Activities.............................................................................................. 36

3.1. Agencies in charge of state support .................... 36

3.2. Investment commissioners ................................... 36

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Уважаемыедрузья!

It is my great pleasure to welcome you to our hos-pitable region!

Kuzbass is commonly known as Russia’s largestmining and metallurgical complex and one of its mostdeveloped industrial centres. However, we spare noeffort to make it more than just a region of big coal andchemistry – we are also developing our agriculture,year-round tourism, science and culture.

Today, Kuzbass has become a testing ground fornew technologies in coal mining. Its underground andopen-pit mines use 3D modelling of coalfields and con-trol with the help of the GLONASS system.

Over the last few years, Kuzbass has seen the de-velopment of new sectors, changing its traditional eco-nomic structure.

Our largest innovative project involves a commer-cial extraction of coal bed methane, which is a com-pletely new sector in the economy of both our regionand the country as a whole. Today, OAO Gazprom, jointlywith the Kemerovo Region Administration, is alreadyextracting methane as a pilot project in the Taldinskoyeand Naryksko-Ostashkinskoye coalfields in the Proko-pyevskiy and Novokuznetskiy districts, respectively. Thetransition to commercial production will soon be com-pleted. Methane is used as motor fuel and can also beused by gas engine power plants. By 2025, we expect toreach a commercial production of 4 billion m3 per year,which will provide our people and businesses with thisnew type of fuel and fully replace the gas coming fromthe north.

This project is a major step towards creating a neweconomic sector and shifting the region’s focus frompurely coal mining to coal and methane production.

Dearfriends!

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Today, the Technopark’s data bank contains over100 ready-to-launch projects. Some 28 resident com-panies are already implementing their projects.

The Kuzbass Technopark is also home to the Cen-tre for Cluster Development and the Regional Engineer-ing Centre that provide small and medium-sized enter-prises with access to the market and innovation envi-ronment and high-tech services.

Our Agency for Investment Promotion and Protec-tion aims to assist not only in implementing projects,but also in reducing investment risks and fund raising.The Club of Kuzbass Investors has also been set up tohelp businesses find an investor.

The Agency is very active in establishing contactswith foreign partners, investors, governmental agen-cies and businesses. Importantly, the Agency providesits services free of charge.

In addition, in recent years, we have significantlyincreased the region’s power generation capacity, whichallows us to implement major investment projects, in-cluding those in the south of the region. For example,the tourist and sports resort of Sheregesh, known allover Russia, will help us develop a powerful tourismcluster in Kuzbass.

Dear entrepreneurs! It is my great pleasure to in-vite you to visit Kuzbass and see with your own eyes oureconomic and recreational potential.

I wish us all a mutually beneficial and fruitful coop-eration, success and prosperity!

Yours faithfully,Aman Tuleyev,Governor of Kemerovo Region

The north of Kuzbass is building an oil-refining clus-ter, namely the Yaiskiy refinery with a design capacityof 6 million tons per year, the Severny Kuzbass refinerywith a capacity of 2 million tons and the Anzherskiy re-finery with a capacity of 1 million tons per year. Theiroutput will be sufficient to meet our needs in fuels andlubricants that are currently delivered here from otherregions.

We have an agreement with the Republic of Be-larus to start assembling BelAZ trucks in Kuzbass. An-other Belarusian partner, OAO Belkommunmash, hashelped us to set up a tram assembly plant.

The Kemerovo Region’s Law on Favoured Econom-ic Zones offers ample opportunities for the develop-ment of independent zones with favourable economicconditions for doing business in the region.

This Law makes provision for favoured economiczones in four areas, namely manufacturing, industrialagriculture, technology development and use, and tour-ism and recreation.

The Kemerovo Region already has severalfavoured economic zones with the first 11 residentcompanies in the cities of Leninsk-Kuznetskiy, Yurgaand Prokopyevsk, as well as a tourist and recreation-al resort of Gornaya (Mountainous) Shoria in Tash-tagol.

The focal point of our innovative infrastructure isthe Kuzbass Technopark, a new generation develop-mental institution that integrates efforts in education,research and manufacturing sectors.

Its core activities include deep coal conversion, coalbed methane extraction, advancement of mining engi-neering, development and use of high technologies inmedicine, education and nature management, as wellas solution of environmental problems.

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1.1. Geography

Lying in the southeast of Western Siberia, the Ke-merovo Region is almost equidistant from the westernand eastern borders of the Russian Federation. The re-gion is located at a latitude between 52°08' and 56°54'North and a longitude between 84°33' and 89°28' East,in the fifth time zone. It is 3,482 km away from, and 4hours ahead of, Moscow.

Occupying an area of 95,700 sq. km, which accountsfor 4% of Western Siberia and 0.56% of the RussianFederation, the Kemerovo Region is the 10th largestterritory in the Siberian Federal Okrug (SFO). It bordersthe Republic of Altai in the south, Altai Krai in the south-west, the Novosibirsk Region in the west, the TomskRegion in the north, Krasnoyarsk Krai in the northeastand the Republic of Khakassia in the east. Kuzbassstretches for almost 500 km from north to south and300 km from west to east.

The Kemerovo Region is located mainly in the Kuz-netsk Depression between the Salair Ridge (567 m) andthe Kuznetsk Alatau (2178 m). The main river is theTom. The climate is continental with average tempera-tures between -18 and -22°C in January and between 17and 22°C in July. Annual precipitation amounts to 300-500 mm. The soils are podzolic. Kuzbass has the larg-est deposits of coal in Russia, accounting for a quarterof all energy resources of the country. The south of theregion is famous for its unique tourist and recreationalresort, Gornaya (Mountainous) Shoria.

1.2. Administrative and territorialdivisions

In 1943, the Presidium of the Supreme Soviet of theUSSR by its Edict No. 5 of 26.01.43 separated Kuzbassfrom the Novosibirsk Region and established the Ke-merovo Region there. In 2013, the region celebrated its70th anniversary.

As on 01.01.2014, the region had a population of2,734,100 people, accounting for 14.2% of the SiberianFederal Okrug and 1.9% of the Russian Federation,where it is the 2nd largest and 14th largest region, re-spectively. Kuzbass has the highest population densityof 28.6 people per 1 sq. km in the Siberian Federal Ok-rug and east of the Urals. Some 85.4% of the popula-tion is concentrated in urban areas.

Administratively, the Kemerovo Region is dividedinto 220 municipalities, including 16 urban okrugs and18 municipal districts (raions). Kemerovo, with a popu-lation of 544,010 people, is its administrative centre.Altogether, there are 5 cities in the region with a popu-lation of over 100,000 people, namely Kemerovo, No-vokuznetsk, Prokopyevsk, Belovo and Leninsk-Kuz-

Backgroundto the KemerovoRegion

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proximity to the regions with a highly developedindustrial sector (Krasnoyarsk Krai), agriculture (Altai Krai)and a significant scientific potential (Tomsk, Novosibirsk);

opportunities for developing a diversified econo-my thanks to abundant natural resources and favour-able climatic conditions;

a well-developed territorial-industrial complex withstrong horizontal links between enterprises in the keysectors; and

economic specialisation ensuring strong positionsin the interregional and international division of labour.

netskiy. By the number of large cities the KemerovoRegion is second only to the Moscow Region. Kuzbass isalso the most urbanised region in the Siberian FederalOkrug.

The Kemerovo Region’s location and natural re-sources offer a number of economic advantages,namely:

the federal railway and motor roads running acrossthe north and a dense transport network covering thedeveloped parts of the region;

Section 1. Background to the Kemerovo Region

Gornaya (Mountainous) Shoria, located inthe south of the region, is an exceptionalplace of recreation and tourism with uniquenatural and climatic conditions.

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InvestmentPolicyandInvestmentPotential

22.1. Investment strategy

The Strategy for Attracting Investment in the Ke-merovo Region for up to 2030 is aimed at improving theinvestment climate and achieving sustainable socio-economic development in the region.

Achieving the stated aim involves a number of ob-jectives, such as eliminating administrative barriers,providing infrastructural and financial support to invest-ment projects, training qualified personnel and takingmeasures to stimulate the demand.

By 2030, the Strategy will have increased the vol-ume of investment in fixed assets by 31.3% (in constantprices) compared to 2011, resulting in a 50% rise in taxand non-tax revenues of the consolidated budget.

On 30 October 2014, the international rating agen-cy Fitch Ratings assigned the Kemerovo Region a long-term national rating of ‘A+(rus)’. The outlook for long-term ratings is ‘stable’.

2.2. Investment priorities

Coalbed methane industryThe coalbed methane industry will provide a valu-

able new source of energy and ensure mining safety inthe Kemerovo Region. The region’s methane reservesare estimated to reach 13 trillion cubic metres.

OOO Gazprom Dobycha Kuznetsk, a resident ofthe Kuzbass Technopark, is implementing a project ofcommercial production of methane. By 2025, the meth-ane output will have reached 4 billion cubic metres peryear.

By 2025, this coalbed gas will have completely re-placed the supplies of natural gas from the north-west-ern fields in Siberia. The methane produced in the Ke-merovo Region will be delivered to the RF constituentsin the south of Western Siberia.

Coal chemical clusterThe Kemerovo Region is developing an innovative

cluster of integrated coal and industrial waste process-ing, whose major residents are OAO Koks, OAO Azot,OAO SUEK, OAO HC SDS-Coal and OOO Khimprom.They are complemented by about twenty small inno-vative enterprises, specialized academic institutionsand universities, and a few specialized design organi-sations.

The coal chemical cluster employs 26,000 people,which is 2% of the employable population in the Ke-merovo Region.

There are plans to produce over 100 products fromdeep conversion of coal and industrial waste process-ing, including coke, semi-coke and coke oven gas, chem-icals (benzene, phenol, cresol), carbon materials (sor-bents, fibre, pitches, nanotubes), petrol and construc-tion materials.

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whose anchor resident is ZAO NeoKor producing bio-logical heart valves.

2.3. Resources

2.3.1. Natural resources

Mineral resourcesThe Kuznetsk Coal Basin (Kuzbass) is the major coal

producing region in terms of its reserves and coal qual-ity. There is no other place in the world where a smallarea of 26,700 square kilometres could be so rich incoal deposits with a wide range of coal grades suitablefor coking, producing liquid fuels, being used as rawmaterials for the chemical industry and other purpos-es. Kuznetsk coals are valued for their quality, includinglow ash content of 4.8-13% and a high heat value of6426 kcal/kg (up to 8650 kcal/kg from the best grades).Another important feature of Kuzbass coals is their hor-izontal bedding with almost 80% of flat and inclinedseams.

The total geological coal reserves of the KuznetskBasin down to a 1800-meter depth are estimated at733,400 million tons, of which 724,300 million tons meetthe requirements for mineable deposits, namely forseam thickness and ash content of coal. Most of thecoal deposits in Kuzbass are multiple seam coal bedswith an average seam thickness of 4 meters. A greatadvantage of Kuznetsk coals is the variety of theirgrades, with coking coal, the main fuel for iron smelt-ing, being the most valuable of them. Kuzbass accountsfor 77 % of such coal reserves in Russia.

The western part of the Kansk-Achinsk lignite de-posit is located in the northeast of the region. The mainlignite reserves of the Kuznetsk Basin are estimated at64.2 billion tons.

The Kemerovo Region has explored 167 peat de-posits with raw peat reserves of 128.6 million tons, in-cluding 34 large deposits of over one million tons. Themain deposits are located in the northern and southernparts of the region.

Iron ore deposits are mainly concentrated in Gor-naya (Mountainous) Shoria and the Kuznetsk Alatau.The Kemerovo Region’s total potential reserves of ironore, including siderite, are estimated at 5.25 billion tons,of which commercial reserves with 34-48% of pure ironreach 1.43 billion tons. The most significant reserves of2,168.7 million tons, including 639.5 million tons of com-mercial A+B+C reserves, are located in the iron orebasin in Gornaya Shoria. The Tersinsk deposits in theKuznetsk Alatau hold 68.1 million tons, including 17.9million tons of A+B+C reserves. The region’s commer-cial A+B+C gold reserves exceed 100 million cubicmeters. Some 74% of gold is mined by sand dredging.Geographically, the gold reserves are located in Gor-naya Shoria (43.7%), the Kuznetsk Alatau (31.9%) andthe Salair Ridge (24.4%).

Oil refining industryThree oil refineries are currently under construction

in the north of the region, namely in the Yaiskiy municipaldistrict and the Anzhero-Sudzhenskiy urban okrug.

In 2009, ZAO NefteKhimServis started the construc-tion of the Yaya oil refinery with a capacity of 3 milliontons per year and a refining efficiency of 92%. It is thelargest investment project in the Kemerovo Region andone of the largest in Siberia. During the project imple-mentation, it was decided to increase the refining ca-pacity to 6 million tons per year. The first phase of therefinery was commissioned at the beginning of the sec-ond half of 2013, whereas the second phase is plannedto be launched in 2019.

Another two oil refineries are being constructedin the Anzhero-Sudzhenskiy urban okrug. The first re-finery, whose construction started in 2006, will have acapacity of up to one million tons per year; the second,called Severny Kuzbass, two million tons per year.

Engineering clusters and maintenancecentres for servicing mining equipmentand specialised machinery

Severnaya Promzona, the favoured economic zonein the Leninsk-Kuznetskiy urban okrug, is developing a clus-ter of enterprises producing conveyor equipment. TheKemerovskiy, Novokuznetskiy and Prokopyevskiy urbanokrugs are implementing projects aimed to produce spe-cialised and universal gondola cars, tanks, coil steel carsand railway platforms for transportation of goods, as wellas to construct and operate a car-repair depot.

Tourism clusterThe Tashtagolskiy municipal district has a favoured

economic zone of tourism and recreation, Gornaya(Mountainous) Shoria, which is developing as a year-round international resort, with major investmentprojects building a ski resort and developing a tourisminfrastructure.

Waste processingThe Kemerovo Region has accumulated over 250

million tons of waste products of ferrous and non-fer-rous metallurgy, 100 million tons of ash waste and soon. With such massive volumes of waste, one of theregion’s investment priorities is processing industrialand municipal solid waste.

Innovation clusterThe Kuzbass Technopark is the core of the region’s

innovation cluster. Its residents implement innovativeprojects in the production of carbon materials, miningsafety, waste management, information technologiesand other sectors.

Biomedical clusterThe Kuzbass Technopark and the Kemerovo Cardi-

ology Centre are developing a biomedical cluster,

Section 2. Investment Policy and Investment Potential

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The region also holds deposits of silver, tungsten,mercury, molybdenum, cobalt and nickel.

The reserves of non-metallic minerals mainly coverthe needs of iron and steel makers. Nearly 20 deposits offluxing limestone, dolomites, quartzite, fireclay and moul-ding sands are explored and used for the steel sectorneeds. The major fields are as follows: Tayezinskoe do-lomite deposit (Gornaya Shoria), Guryevskoye, Karachin-skoye and Kiya Shaltyrskoye deposits of fluxing limestone,Antonovka quartzite deposit, 8 fireclay fields with 40.3million tons of A+B+C reserves in total, and 2 deposits ofmoulding sands in Chebulinskiy and Izhmorskiy districts.

Since the late 18th century, lead and zinc ores havebeen mined in the north-eastern slope of the Salair Ridge.Today, there are five explored barite-lead-zinc deposits,three copper-zinc and one copper-pyrite deposits there.All of these ores are of high quality. There is an explorednative copper deposit in Gornaya Shoria and rich man-ganese deposits of Usinskoe in Gornaya Shoria and Durn-ovskoe in the Leninsk-Kuznetskiy district.

Land resourcesTotal land – 9.6 million hectares, including: forests and scrubs - 65.1%; agricultural land - 27.7%; other land - 7.2%.

Forest resourcesTotal forest area - 5.4 million hectares;total stock of main kinds of timber – 663.5 million

cubic meters, includingfir wood - 309.5 million cubic meters (46.6%).

Special conservation areasThe biosphere reserve of Kuznetsk Alatau - 413,000

hectares;the Shor National Park - 414,000 hectares.

2.3.2. Recreational resources

The rich diversity of natural resources and condi-tions makes the Kemerovo Region a truly unique placein the world.

The Kemerovo Region is located at the junction ofthe West Siberian Plain and the mountains of SouthernSiberia. Much of the area lies in the Kuznetsk Depres-sion separating the Kuznetsk Alatau (up to 2178 m tall),the Salair Ridge and the ridges of Gornaya (Mountain)Shoria in the south. The region’s high recreational po-tential can be attributed to its climatic and orographicconditions, its scenery, culture and history, which makethis area favourable for almost any kind of tourism suchas hiking, water tourism, business, cultural, historicaltourism and others.

The region has great spa potential thanks to itsmineral waters in the Kuznetsk artesian basin, includ-ing: 1) nitric water with a complex chemical composi-

tion and a salinity of 2.8 to 11.2 g/l; 2) nitrogen-meth-ane sodium-bicarbonate water containing iodine, bro-mine and hydrogen sulphide with a salinity of 2-5 g/l;3) sodium chloride-bicarbonate water; 4) aciduloussodium-bicarbonate and sodium-calcium water (Ters-inskoe deposit, 75 km away from Novokuznetsk); and5) sodium-bicarbonate-chloride water containing 10-20 mg/l of hydrogen sulphide and over 33 mg/l of bro-mine, with a salinity up to 2 g/l (Borisovskoye depositin Krapivinskiy District). Several balneotherapy resortsmake use of these deposits. Apart from the mineralwaters, the Kemerovo Region has large reserves ofsapropelic therapeutic mud in the freshwater lakeBolshoi Berchikul in Tissulskiy District at the junctionof the eastern slope of the Kuznetsk Alatau and theKaychak forest steppe, in the interstream area be-tween the Tom and Yenisei rivers.

A scenic mountain terrain spreads over the south,east and west of the region, with its unique natural mon-uments such as the Spasskiye Dvortsy (Spassky Palac-es) cliffs, Alguiskiye Tremolites, Pily Taizhesu (the Sawsof Taizhesu), the Skalistye Gory (Rocky Mountains) can-yon, Krasniy Kamen’ (Red Stone), Gavrilovskiye caves,Orlinaya Gora (Eagle Mountain), the archaeologicalcomplexes of the Ur river, Kamennye Vorota (StoneGates), the granite buttes of Mustag bald peak, Pod-nebesnye Zubya (Sky-scraping Teeth), cave complexesalong the upstream stretch of the Mrassu river, and theUsinskiy karst area with the famous Pamyatnaya (Me-morial) cave, an underground river, a lake and othersights.

The Tom is the major river in Kuzbass, runningthrough the region for almost 300 km, and a favouriteroute among water tourists, especially such of its trib-utaries as Belsu, Mrassu, Usa, Kondoma, Verkhnyaya(Upper) Ters, Srednyaya (Medium) Ters, Nizhnyaya(Lower) Ters and Taydon. However, this river has quitelimited transport potential for industrial use. One ofthe most beautiful rivers in the east of the region is theKiya, which means ‘rocky’ in Turkic. Rising on the slopesof the Alatau main ridge, it flows through a deep gorgeover a stony bed. The Kiya abounds with luring anddangerous places, such as the cripples Serdity (An-gry), Kipuchiy (Seething), Lokhmaty (Shaggy) and Ban-ditskiy (Bandit) and the reaches Barkhatny (Velvet),Mramorny (Marble), Zolotoy (Gold) and Belokamenny(White Stone). Just as attractive and picturesque areits tributaries Mokry (Wet) Berikul, Klyuch Dinamitny(Dynamite Key) and the river Makarak.

The region’s climatic conditions are favourable forthe development of winter and summer tourism. Sum-mers are warm, with long sunny days totalling 2,118hours per year. Winters are known for generally clearskies and mild frosty weather, with a solid and thicksnow cover up to 1.5-2 metres in the mountain valleys.

Kuzbass is an ideal location for alpine skiing andother winter sports. Among the most popular modernskiing facilities, both in Russia and abroad, is the moun-

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tain ski resort Sheregesh located in the amazing areaof Gornaya (Mountainous) Shoria.

Over 850,000 holidaymakers visited Kuzbass in2013. The yearly volume of tourism services in theregion is worth about 3 billion roubles; that of hotelsand health resorts, 2 billion roubles. Tax revenues fromtourism amount to nearly one billion roubles.

2.3.3. Human resources

As on 01.01.2014, the population of the KemerovoRegion was 2,734,000 people.

The labour force reached 1,682,800 people, fall-ing by 132,000 people on 2004. The reasons for thatare a seven-fold rise in the number of foreign migrantworkers (up to 29,300) and a 30% increase in the num-ber of employed teenagers and people over retire-ment age (up to 101,700). The average age of a Kuzbassresident employed in the region's economy is 39.9years, which is almost a year above the same indica-tor in 2004.

In 2013, Kuzbass employed 1,303,000 people.Over the past years, the share of workers with a high-

er vocational degree had risen to 27.6%, whereas thepercentage of those with secondary vocational educa-tion increased to a quarter of total employment.

Over 2004-2013, the percentage of working-agepeople who were not employed in the economy hadsignificantly dropped from 20.8% in 2004 to 16.2% in2013. In 2013, some 85,300 people (aged 34-35 yearson average) were actively looking for jobs, a decline of59,000 on 2004, being classified as unemployed ac-cording to the International Labour Organisation. Theshare of unemployed people with higher educationwent up from 9% in 2004 to 13% in 2013.

On 1 September 2014, some 26,500 unemployedresidents of Kuzbass were registered with the Kemero-vo Region Employment Service. This indicator was low-er than that of every reporting year, except for 2012-2013. The maximum unemployment of 68,600 was reg-istered in August 2009, during the economic crisis.

On the whole, the share of the economically activepopulation aged 15 to 72 has risen from 65.1% 10 yearsago to 67.7%, which means that, despite a high level ofdemographic ageing, the population of Kuzbass re-mains willing to stay in employment.


Employable Population of Kemerovo Region(as on 01.01.2014)

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Labour Force Composition, people (in 2013 on average)

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2.4. Infrastructure

2.4.1. Transport infrastructure

The Kuzbass transport network consists of railway,motor and municipal electric transport, aircraft, pipelineand river transport, ensuring stable internal and exter-nal communications in the region. Having the most de-veloped network east of the Urals, the Kemerovo Regionis crossed by the Trans-Siberian Railway and the Trans-Siberian Highway, which are the basis of the Russiantransport network and a natural extension of the Pan-European Transport Corridor No. 2, recognised by UNES-CAP as a priority route between Europe and Asia.

Railway transportToday, the Kuzbass branch of the West Siberian

Railway is a powerful transport system that is second tonone in Russia in terms of freight transportation. About17% of total freight carried by Russian railways comesfrom Kuzbass. The region’s public service railways are1,681 km long, including more than 1,500 km of electri-fied railways. Kuzbass is crossed by several stretchesof two major railways of international importance, name-ly the Trans-Siberian and South Siberian Railways.

A distinctive feature of the Kuzbass branch is thatits main railway lines serve the needs of the region’smajor industries such as the coal and power sectors,ferrous and non-ferrous metallurgy, engineering andchemical sectors. Coal transportation by rail, account-ing for 83.4% of all coal shipments, is vital to Kuzbasswhich supplies coal not only to various regions of Rus-sia, but also to 51 countries worldwide.

Motor roadsThe Kuzbass network of motor roads has some

stretches of the federal road M-53 Baikal, as well asterritorial, municipal and departmental roads, which linkall parts of the region together. The total length of theentire network is 21,269 km, including 10,379 km ofmunicipal roads, 465 km of the federal road M-53Baikal, 5474 km of territorial and inter-municipal roadsand 4,951 km of departmental roads. On the whole, theKuzbass roads provide a fairly good level of service,although their technical parameters and engineeringfacilities vary markedly throughout the region. In par-ticular, a large share of inter-municipal and municipalroads has transition type pavement.

In August 2013, a new 19.4 km section of the roadKemerovo–Leninsk-Kuznetskiy was commissioned, witha bridge over the river Severnaya Un’ga, three viaductsand an interchange on two levels.

The route Kemerovo–Leninsk-Kuznetskiy–Novokuz-netsk, which joins the federal road M-53 Novosibirsk–Irkutsk, is the shortest way to the cities of Western Sibe-ria, and Russia as a whole, from the south of Kuzbass.The north of the region provides the shortest routes to

Altai Krai, Altai Republic, Kazakhstan, Central Asia andMongolia.

A bridge over the river Dal’niy Kuldos was commis-sioned on the road Belovo-Konovalovo-Prokopyevsk,improving road safety and ensuring smooth transpor-tation for coal enterprises.

Another important road for Kuzbass, commissionedin 2011, connects the settlement of Chugunash and thesports and tourist complex Sheregesh.

The road works in the direction of Sheregesh con-tinued in 2013. The construction of the section “Bypass-ing the village of Kaz” on the road Kuzedeyevo-Mundy-bash-Tashtagol, in particular, should increase road ca-pacity, enhance safety, reduce the impact of traffic onthe village, and make the sports and tourist complexSheregesh far more accessible.

Overall, 6 bridges and overpasses and 165 kilome-tres of roads were built and repaired in the region in 2013.

Air transportAir transport is of great importance for the devel-

opment of the region to ensure regular passenger andcargo traffic both within and outside the country. Thereare three airports in Kuzbass.

OOO Kemerovo International Airport is a Class IIIairport having a Class B paved runway and a round-the-clock operating permit. In 1998, it was certified to oper-ate international flights. The airport has border control,customs, quarantine and immigration control services.It operates scheduled flights to Moscow.

The Kemerovo International Airport is certified toserve the following models of aircraft: DC-10, A310, A319,A320, A321, B737, B747, B757, B767-200, B767, Il-96, Il-86, Il-76, Il-62M, Tu-214, Tu-204, Tu-154, Tu-134, Il-18,An-124, An-74, An-30, An-26, An-24, An-12, Yak-42, Yak-40, ATR-42, BAe125 and its modifications, as well as oth-er class III and IV aircraft and helicopters of all types.

The runway is capable of serving aircraft with a maxi-mum take-off weight of 210 tonnes. The airport can handle38 departing flights and over 118,000 passengers perweek. Having great potential for increasing air traffic,the airport has two operational terminals, for domesticand international flights, capable of handling 500 pas-sengers and 200 passengers per hour, respectively.

Spichenkovo (OOO Aerokuzbass) is an interna-tional Class II airport with a Class B airfield in No-vokuznetsk. Operating round the clock, the airport iscapable of serving such aircraft as Boeing 737-300/400/500/800, Airbus 319, 320, Il-76T (TD), Tu-204,Tu-154, Tu-134, Yak-40, Yak -42, Il-114, Il-18, An-24,An-26, BAE-125-700, ATR-42 and its modifications,as well as other class III and IV aircraft and all typesof helicopters.

Covered with steel fibre reinforced concrete, theairport’s runway is capable of serving aircraft with amaximum take-off weight of 185 tonnes. The Novokuz-netsk airport has a capacity of handling 70 departingflights and 7,000 passengers per week. Having great

14


potential for increasing air traffic, the airport’s terminalcan currently service 200 passengers per hour.

The local airport in Tashtagol (OOO Aerokuzbass)is an unclassified airport with a Class E airfield. It iscertified to serve Mi-8 helicopters and its modifications,as well as aircraft An-2, M101T, Yak-52, Yak-55, andother class IV and lower class aircraft in winter andsummer seasons during the daytime.

2.4.2. Power supply infrastructure

Over 2011-2014, the Kemerovo Region has seen asignificant increase in the capacity of the power grid,which improved the reliability of power supply to theexisting consumers and provided a possibility of servic-ing new industrial enterprises.

In 2013, the following major components of the pow-er supply network were commissioned in the region:

a 45 km power line of Kuzbass-West-Siberian, thefinal link in the power grid in the south of the KemerovoRegion which greatly improved the reliability of elec-tricity supply to large metallurgical and coal enterpris-es in Novokuznetsk;

the upgraded substations of Sosnovskaya, Kol-mogorovskaya and Ossinovskaya, providing a reservecapacity for connecting new consumers in the region;

the completely upgraded substation of Anzherskaya,ensuring stable power supply to Anzhero-Sudzhensk, itsindustrial enterprises and the electric traction of the WestSiberian Railway stretching in the area; and

the third transformer of 40 MW, as part of up-grading the Rudnichnaya substation, to provide reliableand uninterrupted power supply to new residential es-tates in the Rudnichniy district of Kemerovo.

The year 2014 has seen the commissioning of thefollowing components:

two units at the Tom-Usinskaya GRES (Myski) andone unit at the Belovskaya GRES (Belovo), increasingthe capacity of the power grid by 82 MW, as well as newturbines, generators and electric equipment, and up-graded hydrotechnical structures;

the Novokuznetskaya gas-turbine power stationof 298 MW, a new power station aimed to ensure thegeneration of additional power for the single nationalnetwork in case of power shortages in the south of theKemerovo Region; and

a new V.I. Lapin substation of 110 kV in Kemerovobuilt to provide power supply to the new housing es-tates with a total area of 570,000 sq. meters, as well asensure backup power supply for the whole city.

The upgraded Tom-Usinskaya GRES and Be-lovskaya GRES and the newly-built Novokuznetskayagas-turbine power station will generate additional powerof 6 billion kW/h.

Another 220 MW block will be commissioned at theBelovskaya GRES by the end of 2014.

On the whole, upgrading the Kuzbass power supplysystem in 2014 has been the most ambitious projectover the last 25 years, its total investments exceeding40 billion roubles.

2.4.3. Innovative infrastructure. KuzbassTechnopark. Register of Technoparkresidents

The Kemerovo Region has gradually developed aninnovative system that integrates all stages of the inno-

In 2013, the construction of a first-category road between Kemerovoand Leninsk-Kuznetskiy continued, with a new section with threeviaducts and an interchange on two levels commissioned in Augustthe same year.

15


vation process, from the generation of an idea, throughits development and testing, to its adoption and imple-mentation in production.

The innovative infrastructure also includes the Ke-merovo Region Governor’s Council on Investment andInnovation, innovation legislation, and innovative busi-ness incubators and technology transfer centres cur-rently being established in the region.

Kuzbass TechnoparkOpened in 2007, the Kuzbass Technopark is a key

element of the region’s innovative infrastructure. TheKemerovo Region is part of the Federal Programme onthe Development of High-tech Parks in Russia (RF Gov-ernment Resolutions No. 904 of 20.12.07 and No. 1912-r of 25.12.07), with the funding for creating the innova-tive infrastructure being under way.

The Kuzbass Technopark’s main areas of activitymirror the region’s profile. With its vast mineral resources(coal, iron ore, magnesium, silver, gold, molybdenumand others), Kuzbass has become one of the largestindustrial centres of Russia, hosting the country’s lead-ing enterprises in coal mining, metallurgy, engineeringand chemical industries.

The Kuzbass Technopark’s major areas of activityfocus on the development and use of technologies inthe following sectors:

Production, delivery and processing of coal, oreand non-metallic minerals;

Engineering and building of high-tech mining ma-chinery;

Production, utilisation and processing of new func-tional and structural materials, secondary energy re-sources (mine methane, waters and air) and waste,

and cost-effective use of energy, materials and re-sources;

Medicine, education, environmental managementand life safety; and

Creation of an integrated information environmentin the Kemerovo Region.

As a key element of the innovative infrastructure,the Kuzbass Technopark is actively involved in estab-lishing innovative territorial clusters in the KemerovoRegion.

The Kuzbass Technopark’s business incubator wasset up in 2011 to create favourable conditions for inno-vative companies to effectively implement their businessideas. With an area of over 11,000 square metres, thebusiness incubator can accommodate up to 100 smallenterprises. A new production and laboratory building,Ecology and Nature Management, was opened in July2013. It is also planned to build three more pilot produc-tion facilities for the Technopark’s residents, namely Med-icine and Biotechnology, Mining Safety and Energy Con-servation.

In 2014, in an effort to assist small and medium-sized enterprises in implementing high technologies,the Kuzbass Technopark set up the Centre for Clus-ter Development and the Regional Engineering Cen-tre.

Contact:E-mail: [email protected]: www.technopark42.ruAddress: Kemerovo, Sosnovy boulevard, 1Phone: +7 (3842) 77-88-99

In 2011–2014, the Kemerovo Region significantly expanded the capacityof its power grid network.

16


№ Date of registration(document)

Name of resident

1.

2.

3.

4.

5.

6.

7.

8.

9.

26.12.2008Resolution of the KemerovoRegion AdministrationBoard No.593of 26.12.2008

25.12.2009Resolution of the KemerovoRegion AdministrationBoard No. 512of 25.12.2009




14.01.2011Resolution of the KemerovoRegion AdministrationBoard No.603of 29.12.2010 (worded as inResolution of the KemerovoRegion AdministrationBoard No.283of 23.06.2011)

14.01.2011Resolution of the KemerovoRegion AdministrationBoardNo.603of 29.12.2010 (worded as inResolution of the KemerovoRegion AdministrationBoard No.283of 23.06.2011)



ZAO NeoKorTaxpayer IdentificationNumber (INN) 4205026550

ООО Gazprom DobychaKuznetskTaxpayer IdentificationNumber (INN) 4216000032

ООО Ekomash NKTaxpayer IdentificationNumber (INN) 4217113712

ООО EkoLendTaxpayer IdentificationNumber (INN) 4217097588

ООО SvarogTaxpayer IdentificationNumber (INN) 4217068996

ООО TaezhnyTaxpayer IdentificationNumber (INN) 4231001591

ООО Kuzbass SKARABEYTaxpayer IdentificationNumber (INN) 4205038193

ООО Sibir-EnergoTaxpayer IdentificationNumber (INN) 4253002711

ООО EkomashTaxpayer IdentificationNumber (INN) 4220022695

Expand and up-grade the manufacture ofbio prostheses for cardiovascular surgeryto enter international markets

Extract coal-bed methane in the priorityareas in Kuzbass

Dispose of old waste from magneticseparation of ores at agglomeration plants

Construct a solid waste recycling facility inNovokuznetsk

Produce high pressure hoses complyingwith European standards EN853, EN856

Reorganise OOO Taezhny productionfacility for harvesting and processing low-grade wood

Launch production of high-qualitycardboard from waste paper inputs usingthe existing facility

Set up a plant for low-tonnage productionof liquefied natural gas (LNG) and developinfrastructure for its consumption

Recycle old liquid and solid wastes fromcoke production to produce sinteringsoftener used as a bonding agent in coalcharge

Register of Kuzbass Technopark Residents

Project

17



Name of resident Project

10.

11.

12.

13.

14.

15.

16.

17.

18.

19.




10.12.2012Resolutionof the Kemerovo RegionAdministration BoardNo. 556of 06.12.2012




31.12.2013Resolutionof the Kemerovo RegionAdministration BoardNo.624of 27.12.2013



ООО RANK 2Taxpayer IdentificationNumber (INN) 4205118755

ООО DM GruppTaxpayer IdentificationNumber (INN) 4205193978

ООО VIST GruppTaxpayer IdentificationNumber (INN) 7708179975

ООО HC SDS-EnergoTaxpayer IdentificationNumber (INN) 4250003450

ООО LiomedTaxpayer IdentificationNumber (INN) 4205197355

ООО EkosystemaTaxpayer IdentificationNumber (INN) 4205198750

ООО Sibirskoye zdorovieTaxpayer IdentificationNumber (INN) 4205251796

ОАО SibirenergoinzhiniringTaxpayer IdentificationNumber (INN) 2464051792

ООО Kuzbass Regional MiningSafety CentreTaxpayer IdentificationNumber (INN) 4205044920

ООО KuzbassPromResursTaxpayer IdentificationNumber (INN) 4250000032

Introduce modern anchorage technologieson a large-scale

Develop an online advertising platformwith feedback DiscountMobile in Russiaand CIS countries

Develop a robotic transport control systemfor the mining and agricultural sectors

Create an energy-efficient heating systemin Mariinsk by optimising the heatingsystems (start-up complexes 1 and 2) andupgrading the boiler of ООО HC SDS-Energo

Launch production of iron exchange lensesfor treating eye burns

Start a pilot production of newenvironmentally friendly and fire-resistantinsulation materials and silicate paints

Produce dietary supplements and drugsusing the technology of mechanochemicalactivation

Construct new high-tech power generatingfacilities in Kemerovo Region and upgradethe existing ones by adding newequipment, technologies, processes andcontrol systems

Set up a serial production of GaSense gasanalyzers

Produce devices for creating axial cavitiesin the hole charges to improve efficiencyand reduce the effects of blasting

18


2.4.4. Favoured economic zones

Favoured Economic Zones (FEZ) are establishedin the Kemerovo Region as a mechanism of state sup-port to investment, innovation and production in theindustrial, agricultural and high-tech sectors, as wellas tourism.

The legal framework for this mechanism is pro-vided by the Kemerovo Region Law No. 87-OZ “OnFavoured Economic Zones” of July 8, 2010 and Reso-lution No. 451 “On Measures to Enforce the Law onFavoured Economic Zones” of October 19, 2010. Thelaw makes provision for the establishment of FEZs infour sectors, namely manufacturing, industrial agri-culture, technology development and use, and tour-ism and recreation.

Currently, there are 4 favoured economic zonesin the region, including three manufacturing zones inthe cities of Leninsk-Kuznetskiy (Severnaya Promzo-na), Yurga (Yurga) and Prokopyevsk (TyrganskayaPromzona), and a tourism zone in Tashtagol (Gor-naya Shoria). All of them are isolated areas with spe-cial conditions for doing business such as a simpli-fied administrative procedure and access to reduced-rate infrastructure, tax relief, subsidies and otherforms of state support. This support is available forboth legal entities and individual entrepreneurs reg-istered in a municipality that has a FEZ and can onlyapply to those activities that are in line with the FEZspecialisation. To gain access to the above benefits,legal entities and individual entrepreneurs enter intoa quadripartite agreement with the Kemerovo RegionAdministration, the municipal administration and theFEZ management company.

The parties of the above agreement undertakecertain obligations related to the implementation ofan investment (innovation) project, such as making acapital investment, creating new jobs and doing busi-ness in line with the FEZ type.

The regional favoured economic zones have beenrecognised at the federal level, in particular due totheir success in attracting investors. In 2010, the Ke-merovo Region received state support of RUB3.2 bil-lion from the federal budget to develop a transport,utilities and energy infrastructure in the monotownsof Leninsk-Kuznetskiy, Prokopyevsk and Tashtagol.

In August 2014, the Kemerovo Region Adminis-tration initiated another competition for the creationof FEZs to encourage the municipal administrationsto realise the investment potential of their territo-ries.

Severnaya PromzonaThe manufacturing FEZ Severnaya Promzona

(Northern Industrial Zone) is located in the Leninsk-Kuznetskiy urban district. Occupying an area of 400hectares, it focuses on the production of conveyorsystems and other manufacturing activities.

The FEZ’s first resident company, SibEkoProm-N,has set up a facility to recycle and process waste ty-res of all sizes and types, including OTR tyres for thecoal-mining sector. The facility produces crumb rub-ber, cordage fibre and scrap steel cord.

Another resident company, OOO Transport Sys-tems, is constructing a plant to produce modern con-veyor belts for the mining sector, the project termbeing 2011-2016.

Contact:The FEZ management company:the Leninsk-Kuznetskiy Municipal Fundfor Small Enterprise Support652523, Leninsk-Kuznetskiy, ul. Yurginskaya, 6Tel.: +7 (384-56) 3-87-11E-mail: [email protected]

Yurga PromzonaOccupying an area of 87.7 hectares, this manufac-

turing FEZ is located in the northern industrial part ofYurga.

Its key resident is the TekhnoNIKOL-Sibir plant pro-ducing modern types of insulation materials, such asrock wool, extruded polystyrene foam and roof water-proofing materials. The company is running a project tomodernise the production of roofing and insulationmaterials.

In addition, the zone accommodates a wide rangeof small and medium-sized enterprises, including theproduction of translucent PVC structures and alumini-um profiles, mineral water, medical equipment, load-ers and small boats. There is also a plan to implement ahigh-cost project to create an innovative pharmaceuti-cal company for the production of infusion solutions inplastic bags.

The zone’s infrastructure has all the necessary fa-cilities such as roads, railways and heat and power net-works.

Contact:The FEZ management company:the Municipal Management Company “Synergy”,Yurga650050, Yurga, ul. Komsomolskaya, 13Tel./fax: +7 (384-51) 4-74-33E-mail: [email protected], [email protected]

Gornaya ShoriaOccupying an area of 1965.9 hectares, the tour-

ism and recreation zone Gornaya (Mountainous) Sho-ria has 54 hotels for 3000 guests, 57 cafes and restau-rants, 18 lifts, 4 entertainment centres, and 19 world-

19


class ski slopes with a total length of 42 km, meetingthe FIS international standards. The zone hosts 8 res-idents.

In 2011-2015, the estimated number of touristsis expected to reach a million people a year owing tothe development of summer tourism. This requireshigh-quality, competitively priced services that meetinternational standards, which, in turn, calls for train-ing the existing staff, as well as introducing innova-tions in the hotel management and using energy-effi-cient and eco-friendly technologies. And, last but notleast, this tourist zone should have a year-round re-sort of Group 4, i.e. a resort certified to host interna-tional competitions, service foreign tourists, organ-ise both individual and group tours and offer spatreatment. With the view to promoting summer tour-ism on Mount Zelenaya (Green), the FEZ residentsare planning to invest their own funds in building aquaparks, improving beaches, developing spa treatmentand health rehabilitation services in hotels, and open-ing a medical centre.

This favoured economic zone is being providedwith all the necessary infrastructure facilities, suchas roads, electricity and water supply. Under themonotown modernisation programme, the newoverhead power line Temir-Tau-Kondoma (110 kV)was built in the Tashtagolskiy district, which re-moved the infrastructural constraints on the devel-opment of the FEZ. Besides, the newly built Chugu-nash-Sheregesh road significantly reduced the trav-el time to the FEZ.

One of the zone’s successes was the investmentproject “The Tourism and Recreation Cluster Sherege-sh” which won a competition for funding among 40projects from different regions of Russia and was in-cluded in the federal targeted program “The Devel-opment of Domestic and Inward Tourism in the Rus-sian Federation” for 2015-2018. As a result, the fed-eral budget is expected to contribute 1.296 billionroubles to the construction of the road Kuzedeyevo-

Mundybash-Tashtagol bypassing the village of Kaz.The main achievement is that big investors are keento implement high-cost investment projects here,worth about 1 billion roubles each.

Contact:The FEZ management company:the Municipal Company for theManagement of Favoured Economic Zonesin Tashtagolskiy District652990, Kemerovo Region, Tashtagol,ul. Lenina, 60Tel./fax: +7 (384-73) 3-24-72,8-903-946-51-15 (director Valery Maltsev)E-mail: [email protected]

Tyrganskaya PromzonaOccupying an area of 402.75 hectares, this manu-

facturing zone is located in the Prokopyevskiy urbanokrug. It was established mainly to increase the invest-ment attractiveness and innovation potential of Proko-pyevsk and to reduce its dependence on one industry.

The FEZ is expected to host a number of majorprojects of social and economic significance in the sec-tors of waste management, and mechanical and instru-ment engineering.

Contact:The FEZ management company:the Autonomous Nonprofit Organization“Training and Business Centre”653050, Kemerovo Region, Prokopyevsk,ul. Obrucheva, 42Tel.: +7 (384-6) 65-58-38

20


Register of Residents of Favoured Economic Zones

№ FEZ Resident Municipality FEZ Type

1.

2.

3.

4.

5.

6.

7.

8.

9.

10.

11.

Project

ООО SibEcoProm-N

ООО ZavodTechnoNIKOL-Sibir

ООО Kedr (Cedar)

ООО Egida

Sole traderM.V. Dergunova

Sole traderR.A. Nikolaizen

Sole traderO.V. Maltsev

ООО SV-ServisCompany

ООО Alpen Club

ООО Aquapark GoryZelenoy (GreenMountain Aquapark)

ООО Transport Systems

Leninsk-Kuznetskiy

Yurginskiyurban okrug

Tashtagolskiydistrict





Yurginskiyurban okrug



Leninsk-Kuznetskiy

manufacturing,Severnaya Promzona

manufacturing,Yurga

tourism andrecreation,Gornaya Shoria





manufacturing,Yurga


tourism andrecreation,Gornaya Shoriamanufacturing,

Severnaya Promzona

Disposal and recycling of largeand average-size tyres

Modernised production ofroofing and insulation materialsat OOO Zavod TechnoNIKOL-Sibir, Yurga, Kemerovo Region

Developing the Kedrovaya (Cedar)hotel services

Opening a cafe-restaurantfor 60 customers

Renovating the Tyrol guesthouse, building a health centreand a ski hire facility

Organising integrated touristservices

Expanding the Freestyle hotel

Modernised production oftranslucent PVC structures andaluminium profiles

Building a year-round hotelcomplex with an integratedservice infrastructure

Building an aquapark and itsinfrastructure on Zelenaya(Green) Mountain in Sheregesh,Tashtagolskiy district

Constructing a plant to producemodern conveyor systems

21


2.5. Business infrastructure

2.5.1. Kuzbass Chamber of Commerceand Industry

A key priority of the Kuzbass Chamber of Commerceand Industry (KCCI) is to promote a better business cli-mate and investment in the region’s economy.

A contest for “The Best Investor in the KemerovoRegion” has been a joint effort of the Kemerovo RegionAdministration and the KCCI since 2013. It is held forcompanies and municipalities with investment projectsin such sectors as manufacturing, construction, agri-cultural production and processing, trade and catering,tourism, telecommunications, energy conservation,healthcare, education and culture.

The system of training highly skilled personnel playsan important role in the investment policy. To this end,the KCCI has built strong partnerships with educationalinstitutions in the Kemerovo Region. For example, it hasmade a number of strategic partnership agreementswith the Kemerovo State University and the Kemerovobranch of the Plekhanov Russian University of Econom-ics, bringing together educational and business com-munities in training highly competent personnel withflexible skills.

The KCCI is doing a lot to develop inbound tourismand attract investment in this sector. For example, itactively cooperates with the major tour operators, suchas Pegas Touristik, with whom they organise annualinternships for students to develop their hotel serviceskills in the Turkish resorts.

In an effort to attract investment and effectivelypromote the key investment projects, the KCCI organis-es economic missions and official business visits to oth-er parts of Russia and abroad to present the region’sinvestment potential and provide all relevant informa-tion on investment areas and conditions.

The President of the KCCI sits on the board of theKemerovo Region Governor’s Council on Investment andInnovation.

2.5.2. Agencies in charge of foreign trade

The Kuzbass Chamber of Commerceand Industry

The Kuzbass Chamber of Commerce and Industry(KCCI) is a coordinator of activities aimed to establishand strengthen international and interregional relationsof the Kemerovo Region under the Agreement betweenthe Kemerovo Region Administration and the KCCI oncooperation in developing foreign economic relations.The KCCI’s new possibilities and powers can ensuremore comprehensive solutions for Kuzbass businessesin foreign trade.

The region’s international and interregional coop-eration is governed by the Concept for the Develop-

ment of Foreign and Interregional Economic Activitiesof the Kemerovo Region, adopted by the Kemerovo Re-gion Administration Board (No. 1123-p of 10.10.2006).

The cooperation between the Kemerovo Regionand other constituents of Russia and foreign countriesis based on the region’s competitive advantages, in-cluding rich natural resources, internal reserves fordeveloping and modernising various regional sectors,a well-developed industrial, financial and transport in-frastructure, and human resources.

The KCCI efforts to facilitate the development offoreign and interregional economic relations of Kuzbassenterprises and their participation in exhibitions andfairs focus on two major objectives, namely:

1) Promoting local products and services in otherregions of Russia and abroad; and

2) Encouraging investment in Kuzbass.

The KCCI’s web-site, namely the section on the Ex-ternal Economic Relations of the Kemerovo Region(http://ved.kuztpp.ru/), contains some relevant informa-tion for investors about the geography of foreign eco-nomic relations and quantitative indicators of foreigntrade, as well as a booklet “On placing goods under thecustoms procedure and on customs control of goods inthe Customs Union within the Eurasian Economic Com-munity”.

Contact:650002, Kemerovo, Sosnovy boulevard, 1,office 510Phone/fax: +7 (3842) 77-88-17, 77-88-22E-mail: [email protected]: http://ved.kuztpp.ru/

Kemerovo CustomsKemerovo Customs has a status of internal cus-

toms with some elements of border customs at the in-ternational airport in Kemerovo, without access to theborders of Russia. Located in the city of Kemerovo, it isresponsible for the whole region. Structurally, Kemero-vo Customs consists of 6 customs stations located inthe cities of Kemerovo, Novokuznetsk, Prokopyevsk,Mezhdurechensk, Leninsk-Kuznetskiy and Belovo.

Contact:650055, Kemerovo, ul. Sarygina, 36Phone: +7 (3842) 75-27-43Fax: +7 (3842) 36-28-69E-mail: [email protected]

22


The Legal Department of Kemerovo Customs givesinformation about customs legal acts and advises oncustoms matters and other issues within its competenceaccording to the Administrative Regulations of the Fed-eral Customs Service. This service is provided on week-days at the above address in the following hours:

Monday: 08.00-15.30Tuesday: 14.00-20.00Wednesday: 14.00-16.30Thursday: 14.00-20.00Friday: 08.00-15.30Lunch break: 13.00-13.48

Kemerovo Customsconstituents:

Belovo Customs StationAddress: 652600, Kemerovo Region, Belovo,ul. Lenina, 46Phone: +7 (38452) 2-32-97, 4-33-95

Leninsk-Kuznetskiy Customs StationAddress: 652000, Kemerovo Region, Leninsk-Kuznetskiy,ul. Topkinskaya, 6/3Phone: +7 (38456) 2-08-59, 2-08-78

Mezhdurechensk Customs StationAddress: 652881, Kemerovo Region, Mezhdurechensk,pr. 50-let Komsomola, 26aPhone: +7 (38475) 2-70-83, 2-57-53

Novokuznetsk Customs StationAddress: 654027, Kemerovo Region, Novokuznetsk,ul. Kuibysheva, 15, 16Phone: +7 (3843) 72-16-74, 72-16-75

Prokopyevsk Customs StationAddress: 653000, Kemerovo Region, Prokopyevsk,pr. Shakhterov, 21Phone: +7 (38466) 61-46-58, 61-46-59

Kuzbass Customs StationAddress: 650070, Kemerovo Region, Kemerovo, AirportPhone: +7 (3842) 39-02-50, 39-02-64, 39-02-54

2.5.3. Exhibition companies

ZAO Kuzbass Exhibition Company"Expo-Siberia"650000, Russia, Kemerovo, pr. Sovetskiy, 63Tel.: +7 (3842) 36-68-83, 58-11-66E-mail: [email protected], [email protected],[email protected]

ZAO Kuzbass Fair654006, Russia, Kemerovo Region, Novokuznetsk,ul. Ordzhonikidze, 11, office 201Tel.: +7 (3843) 468-260, 466-372, 464-958Fax: +7 (3843) 468-446, 452-886E-mail: [email protected]

OAO Kuzbass Technoparka permanent exhibition of the Technopark residents’projects “Kuzbass – a region of innovations”Kemerovo, Sosnoviy boulevard, 1Tel.: +7 (384-2) 77-88-99E-mail: [email protected]

Country US $ thousand Share, %

TOTAL including: 6 675 446.8 100UNITED KINGDOM 908 551.0 13.6TAIWAN (CHINA) 867 274.9 13CHINA 700 010.9 10.5JAPAN 512 147.3 7.7REPUBLIC OF KOREA 473 419.7 7.1UKRAINE 445 189.7 6.7TURKEY 401 133.0 6.0NETHERLANDS 356 121.6 5.3POLAND 231 498.5 3.5BELGIUM 227 069.8 3.4LATVIA 223 828.8 3.4GERMANY 222 506.2 3.3OTHER 1 106 695.4 16.5

Turnover by Major Trade Partners,January-June 2014

23

2.6. Single window principle ofproviding state and municipalservices

2.6.1. Multipurpose centres of stateand municipal services

The Multipurpose Centres (MPCs) of State andMunicipal Services are set up in the municipal districts

1.

2.

3.

4.

5.

6.

7.

8.

9.

10.

11.

12.


of the Kemerovo Region within the federal program‘Electronic Government’. These centres operate on asingle window principle and provide about 100 servic-es. About 40 centres are expected to be established inthe region by the end of 2015.

As on 15 September 2014, there are 20 Multipurpose Centres of State and Municipal Servicesin the Kemerovo Region, namely:

№ Name of Centre Contact Details

The Multipurpose Centre of State and Municipal Servicesin Yurga and Yurginskiy District

The Multipurpose Centre of State and Municipal Servicesin Tashtagolskiy District

The Multipurpose Centre of State and Municipal Servicesin Polysayevskiy Urban Okrug

The Multipurpose Centre of State and Municipal Servicesin Krasnobrodsky Urban Okrug

The Multipurpose Centre of State and Municipal Servicesin Kemerovo

The Multipurpose Centre of State and Municipal Servicesin Prokopyevskiy District

The Multipurpose Centre of State and Municipal Servicesin Promyshlennovskiy District

The Multipurpose Centre of State and Municipal Servicesin Guryevskiy District

The Multipurpose Centre of State and Municipal Servicesin Krapivinskiy District

The Multipurpose Centre of State and Municipal Servicesin Belovskiy District

The Multipurpose Centre of State and Municipal Servicesin Mariinskiy District

The Multipurpose Centre of State and Municipal Servicesin Novokuznetsk

Yurga, ul. Moskovskaya, 50Tel.: +7 (38451) 4-15-00http://mfc-yurga.ru

Tashtagol, ul. Pospelova, 20Tel.: +7 (384-73) 3-42-00; 3-42-20http://mfc-tashtagol.ru

Polysayevo, ul. Kremlevskaya, 3Tel./Fax: +7 (384) 56-2-51-81http://www.mfc-polysaevo.ru

Pgt. Krasnobrodsky, ul. Novaya, 53Tel./Fax: +7 (38452) 7-84-82http://mfckgo.ru

Kemerovo, ul. Kirova, 41aTel./Fax: +7 (3842) 77-21-76Hotline: +7 (3842) 77-21-79http://www.mfc-kemerovo.ru

Prokopyevsk, pr. Gagarina, 6Tel.: +7 (3846) [email protected]://www.admprokop.ru

Pgt. Promyshlennaya, ul. Kommunisticheskaya, 20aTel.: +7 (38442) 7-14-73http://www.mfc-prom.ru

Guryevsk, per. Shorsa, 1Tel.: +7 (38463) 5-63-13, 5-66-36, 5-54-64

Pgt. Krapivinskiy, ul. Sovetskaya, 16Tel./Fax: +7 (38446) 22-2-22, 22-4-78http://www.mfc-krapivino.ru

Belovskiy raion, s. Vishnevka, ul. Novaya, 8Tel.: +7 (384-52) 5-26-06, 5-26-05http://www.mfc-belovorn.ru

Mariinsk, ul. 50 let Oktyabrya, 73aTel.: +7 (38443) 5-01-55,Hotline: +7 (38443) 5-01-55http://mfc-mariinsk.ru

Novokuznetsk, ul. Pokryshkina, 22aTel.: +7 (3843) 32-20-25

24


As on 15 September 2014, there are 20 Multipurpose Centres of State and Municipal Servicesin the Kemerovo Region, namely:

№ Name of Centre Contact Details

13.

14.

15.

16.

17.

18.

19.

20.

Mezhdurechensk, ul. Kosmonavtov, 5Hotline: +7 (38475) 6-42-35, Fax: +7 (38475) 6-42-23http://mfc.mrech.ru

Prokopyevsk, ul. Institutskaya, 15Tel.: +7 (3846) 68-05-35, Hotline: +7 (3846) 68-06-60mfc-prk.ru

Kisselevsk, ul. Lenina, 32. Tel.: +7 (38464) 2-05-44Hotline: +7 (38464) 2-05-48, 2-05-98www.mfc-kiselevsk.ru

Topky, ul. Lunacharskogo, 23Hotline: +7 (38454) [email protected]

Leninsk-Kuznetskiy, pr. Tekstilschikov, 14Tel.: +7 (38456) 2-81-92www.mfc-lk.ru

Kaltan, pr. Mira, 39Tel.: +7 (38472) 3-01-09, Hotline: +7 (38472) 3-02-37

Berezovskiy, pr. Lenina, 21Tel.: +7 (38445) 3-27-47Hotline: +7 (38445) 3-46-56

Taiga, pr. Kirova, 48aTel.: +7 (38448) 2-20-00, Hotline: +7 (38448) 2-20-00

2.6.2. Regional Call Centreof State and MunicipalServices

The Regional Call Centre of State andMunicipal Services for Companies andIndividuals was set up in 2011 within theprogram of “E-Government”. Operatingon a 24/7 basis, the Centre provides back-ground information on how to apply forstate and municipal services, such as thedocuments required, the price of a ser-vice, the order and place of its provision,and contact details of an authority to ap-ply to. Such information can significantlyreduce the time and cost of service deliv-ery to companies and individuals andspeed up preparation of the necessarydocuments. The Kemerovo Region Ad-ministration supplied the Centre with adatabase of almost two thousand stateand municipal services. To access thisinformation, please phone the Centre at123 from a landline, or 555-123 from amobile phone.

The Multipurpose Centre of State and Municipal Servicesin Mezhdurechensk

The Multipurpose Centre of State and Municipal Servicesin Prokopyevsk

The Multipurpose Centre of State and Municipal Servicesin Kisselevsk

The Multipurpose Centre of State and Municipal Servicesin Topkinskiy District

The Multipurpose Centre of State and Municipal Servicesin Leninsk-Kuznetskiy

The Multipurpose Centre of State and Municipal Servicesin Kaltan

The Multipurpose Centre of State and Municipal Servicesin Berezovskiy

The Multipurpose Centre of State and Municipal Servicesin Taiga

25


2.6.3. Municipal centres for small and medium-sized enterprise support(or organisations acting as SME support centres)

№ Municipalities having SME Support Centres Postal address, telephone, e-mail, web-site

1.

2.

3.

4.

5.

6.

7.

8.

9.

10.

11.

Anzhero-Sudzhenskiy urban okrug

Belovskiy urban okrug

Berezovskiy urban okrug

Kaltanskiy urban okrug

Kemerovskiy urban okrug

Kisselevskiy urban okrug

Krasnobrodskiy urban okrug

Leninsk-Kuznetskiy urban okrug

Mezhdurechenskiy urban okrug

Novokuznetskiy urban okrug

Ossinnikovskiy urban okrug

652470, Kemerovo Region, Anzhero-Sudzhensk,per. Elektricheskiy, 1atel. +7 (838453) 6-44-75e-mail: [email protected], [email protected]: www.anzhero.ru

652600, Kemerovo Region,Belovo, ul. Sovetskaya, 21, office 85tel. +7 (38452) 2-96-25, 2-92-02e-mail: [email protected]: www.belovo42.ru, centrbelovo.ucoz.ru

652420, Kemerovo Region, Berezovskiy,pr. Lenina, 22, office 13tel./fax +7 (384-45) 3-21-60e-mail: [email protected]: www.berez.org

652740, Kemerovo Region, Kaltan,ul. Komsomolskaya, 7tel. +7 (38472) 3-01-19e-mail: [email protected]: www.kaltan.net

650036, Kemerovo,ul. 9 Yanvarya, 12tel. +7 (3842) 35-05-07, 35-06-28, 35-03-21e-mail:[email protected], web-site: www.csbkem.ru

652700, Kemerovo Region, Kisselevsk,ul. Mira, 34atel. +7 (38464) 2-04-53; 2-04-54e-mail: [email protected]: www.shahter.ru

652640, Kemerovo Region, pgt. Krasnobrodskiy,ul. Komsomolskaya, 8tel. +7 (38452) 7-61-88e-mail: [email protected]: www.agokrbrod.ru

652500, Kemerovo Region, Leninsk-Kuznetskiy,pr. Kirova, 56tel. +7 (38456) 7-08-55e-mail: [email protected]: www.leninsk-kuz.ru

652870, Kemerovo Region, Mezhdurechensk,pr. Stroiteley, 30tel. +7 (38475) 4-82-70, 2-26-13e-mail: [email protected]: www.mrech.ru

654005, Kemerovo Region, Novokuznetsk, ul. Pokryshkina, 22a, office 2, 6tel. +7 (3843) 538-926, 539-675e-mail: [email protected]: www.admnkz.ru

652800, Kemerovo Region, Ossinniki,ul. Sovetskaya, 5tel. +7 (38471) 4-41-78e-mail: [email protected]: www.osinniki.org

26


2.6.3. Municipal centres for small and medium-sized enterprise support(or organisations acting as SME support centres)


12.

13.

14.

15.

16.

17.

18.

19.

20.

21.

22.

652560, Kemerovo Region, Polysayevo,ul. Kosmonavtov, 57tel. +7 (38456) 2-43-40, 2-61-74e-mail: [email protected]: www.polisaevo.ru

653050, Kemerovo Region, Prokopyevsk,ul. Institutskaya, 15tel. +7 (3846) 65-55-60E-mail: [email protected]: www.pearlkuz.ru

652401, Kemerovo Region, Taiga,ul. 40 let Oktyabrya, 23tel. +7 (38448) 2-10-09e-mail: [email protected]: adm.tanet.ru

652050, Kemerovo Region, Yurga,ul. Komsomolskaya, 13tel. +7 (38451) 4-74-33e-mail: [email protected]: www.adm.yrg.kuzbass.net

652600, Kemerovo Region, Belovo,ul. Lenina, 10, office 38tel. +7 (384 52) 2-66-85, 2-48-12e-mail: [email protected]: www.belovorn.ru

652780, Kemerovo Region, Guryevsk,ul. Kommunisticheskaya, 21tel. +7 (384 63) 5-01-02, 5-01-03e-mail: [email protected]: www.admgurray.r42.ru

Kemerovo Region, pgt. Izhmorskiy,ul. Leninskaya, 63tel. +7 (38459) 2-33-91e-mail: [email protected]: www.izhmorka.ru

652440, Kemerovo Region, Krapivinskiy district,pgt. Krapivinskiy, ul. Yubileynaya, 15tel. +7 (38446) 2-24-19e-mail: [email protected], [email protected]: www.krapivino.ru

652507, Leninsk-Kuznetskiy,pr. Lenina, 7tel. +7 (38456) 7-35-10e-mail: [email protected], web-site: www.lnkrayon.ru

652150, Kemerovo Region, Mariinsk,ul. Lenina, 38tel. +7 (384-43)5-24-98e-mail: [email protected]: www.mariinsk.ru

654041, Kemerovo Region, Novokuznetsk,ul. Sechenova, 25tel. +7 (3843) [email protected]: www.admnkr.ru

Polysayevskiy urban okrug

Prokopyevskiy urban okrug

Taiginskiy urban okrug

Yurginskiy urban okrug

Belovskiy municipal district

Guryevskiy municipal district

Izhmorkskiy municipal district

Krapivinskiy municipal district

Leninsk-Kuznetskiy municipal district

Mariinskiy municipal district

Novokuznetskiy municipal district

27



653033, Kemerovo Region, Prokopyevsk,pr. Gagarina, 1vtel. +7 (3846) 62-62-83; 65-30-33e-mail: [email protected]: www.admprokop.ru

652380, Kemerovo Region,pgt. Promyshlennaya, 23/atel. +7 (838442) 7-24-02e-mail: [email protected]: www.ako.ru/promishrn

652990, Kemerovo Region, Tashtagol,ul. Lenina, 60, office 205tel. +7 (38473) 2-10-40e-mail:[email protected]: atr.my1.ru

652210, Kemerovo Region,Tissulskiy district, pgt. Tissul,ul. Lenina, 53tel. +7 (38447) 2-19-32e-mail: [email protected], web-site: www.tisul.ru

652300, Kemerovo Region, Topki,ul. Lunacharskogo, 21tel. +7 (38454) 2-04-24e-mail: [email protected]: www.admtop.ru

652240, Kemerovo Region, Tyazhinskiy district,pgt. Tyazhinskiy, ul. Sovetskaya, 5tel. +7 (38449) 21-9-30e-mail: [email protected]: tyazhin.ucoz.ru

652270, Kemerovo Region, pgt. Verkh-Chebula,ul. Mira, 16tel. +7 (384-44)-2-17-05e-mail: [email protected]: www.ako.ru/chebula

652050, Kemerovo Region, Yurga,ul. Mashinostroiteley, 37tel. +7 (838451)4-43-63e-mail: [email protected]: www.yurgregion.ru

652100, Kemerovo Region, Yaiskiy district,pgt. Yaya, ul. Sovetskaya, 17tel. +7 (384-41) 2-18-78, 2-25-96e-mail: [email protected], [email protected]: adm.yayacity.ru

652010, Kemerovo Region, Yashkinskiy district,pgt. Yashkino, ul. Suvorova, 14, office 21tel. +7 (384 55) 2-55-83e-mail: [email protected]: www.adm-rn.yashkino.ru

23.

24.

25.

26.

27.

28.

29.

30.

31.

32.

Prokopyevskiy municipal district

Promyshlennovskiy municipal district

Tashtagolskiy municipal district

Tissulskiy municipal district

Topkinskiy municipal district

Tyazhinskiy municipal district

Chebulinskiy municipal district

Yurginskiy municipal district

Yaiskiy municipal district

Yashkinskiy municipal district

28


2.6.4. Municipal funds for small and medium-sized enterprise support

№ Municipality Fund

1.

2.

3.

4.

5.

6.

7.

8.

9.

10.

11.

12.

13.

14.

15.

16.

17.

Telephone, e-mail

Kemerovo Region

Anzhero-Sudzhenskiy urbanokrug

Belovskiy urban okrug

Berezovskiy urban okrug

Kemerovskiy urban okrug

Kisselevskiy urban okrug

Leninsk-Kuznetskiy urbanokrug

Ossinnikovskiy urban okrug

Polysayevskiy urban okrug

Prokopyevskiy urban okrug

Yurginskiy urban okrug

Guryevskiy municipal district

Leninsk-Kuznetskiymunicipal district

Prokopyevskiymunicipal district

Tashtagolskiymunicipal district

Tyazhiskiy municipal district

Yashkinskiy municipal district

State-owned Fund for Enterprise Support inKemerovo Region

Business Incubator Nonprofit Fund

Municipal Small Enterprise Support Fund

Berezovskiy Municipal Small EnterpriseSupport Fund

Municipal Nonprofit Small EnterpriseSupport Fund

Kisselevsk Municipal Nonprofit SmallEnterprise Support Fund

Leninsk-Kuznetskiy Municipal SmallEnterprise Support Fund

Ossinniki Small Enterprise Support Fund

Polysayevo Municipal Small EnterpriseSupport Fund

Prokopyevsk Municipal SME Support Fund

Yurga Municipal Industry and EnterpriseSupport Fund

Guryevskiy Municipal SME Support Fund

Municipal Nonprofit Fundfor Small Enterprise and Farm HouseholdSupport

Prokopyevskiy Municipal Small EnterpriseSupport Fund

Tashtagolskiy Municipal Nonprofit SmallEnterprise Support Fund

Tyazhinskiy Municipal Enterprise Supportand Development Fund‘Business Centre’

Yashkinskiy Municipal Nonprofit SmallEnterprise Support Fund

Tel. +7 (384-2) 58-71-98,[email protected]






Tel. +7 (384-56) 3-87-11, 3-51-04,[email protected]







Tel. +7 (384-6) 62-22-65



Tel. +7-906-934-4082,[email protected]

29


2.7. Regional instruments ofeconomic diversification andprevention of dependence on a singleindustry

2.7.1. Monotowns

Kuzbass is a region where all the towns, except Ke-merovo, are dominated by a single industry, i.e. coalmining, metallurgy, engineering, or railway. Today, suchtowns are home to 70% of the region’s population.

Therefore, in 2010, the Governor of the KemerovoRegion set an enormous task of developing plans formodernising all the monotowns in Kuzbass. As a result,17 comprehensive investment plans were submitted tothe RF Government’s committee.

In the same year, 2010, the first 3 towns of Prokopy-evsk, Leninsk-Kuznetskiy and Tashtagol received statesupport worth RUB 3.2 billion. These funds helped thetowns to create 16,500 new jobs and reduce unemploy-ment from 4.3% at the peak of the crisis to 1.9% (2.3times). The estimates show that one rouble of state sup-port raised over 11 roubles of extrabudgetary funds.

2.7.2. Kuzbass agglomerationThe development of the Kuzbass agglomeration is an

important mechanism of preventing towns from theirdependence on a single industry and enhancing labourmobility. Over 2 million people (almost 83% of the re-gion’s population) residing in the Kuzbass agglomerationmake it one of the four largest agglomerations in Russia.

The Kuzbass agglomeration is the only dual-nucleusagglomeration in Russia, with two centres (Kemerovoand Novokuznetsk), being home to 40% of the region’spopulation, and five pivotal towns (Leninsk-Kuznetskiy,Belovo, Kisselevsk, Prokopyevsk and Mezhdurechensk),forming a belt of almost continuous settlement fromKemerovo to Mezhdurechensk.

The population density in the agglomeration is twiceas high as the average for the region, namely 60 peopleper sq. km vs. 29 people per sq. km. With 85.8% of urbanpopulation, Kuzbass is the sixth highly urbanised regionin Russia and the first in the Siberian Federal Okrug.

The Kuzbass agglomeration concept was formulatedby the Department for Investment and Strategic Devel-opment at the Kemerovo Region Administration and ap-proved by a working group chaired by the Deputy Gover-nor for Economy and Regional Development and repre-senting authorities, business, regional development insti-tutions, and architectural and scientific communities.

The agglomeration aims to improve the quality oflife and make the regional economy more competitive.The development of transport infrastructure is one of itspriorities.

The density of hard-surfaced public roads in the re-gion is already one of the highest in Russia, namely 87km per 1000 sq. km (vs. the average of 37 km per 1000sq. km in Russia).

A key project is to continue the construction of theroad of Novosibirsk-Leninsk-Kuznetskiy-Kemerovo-Yur-ga, in particular the 61.6 km section between Leninsk-Kuznetskiy and Kemerovo. A motorway with elements ofintelligent transport systems will ensure the optimal

30


speed in terms of energy saving and environmental fac-tors, reducing the travel time by 40%. All this will lowertransportation costs in the price of products by 12-16%.

Overall, the agglomeration project offers abundantopportunities for spatial planning, transport and utili-ties, economic and social development.

In 2014, an interdepartmental working group at theMinistry of Regional Development included the Kuzbassproject in the list of pilot projects for testing and im-proving the mechanisms of developing urban agglom-erations in the country.

2.7.3. Cluster policyThe Kemerovo Region’s Cluster Policy is a system

of measures aimed to develop and maintain a sustain-able regional network of partners in competitive areasof activity in order to strengthen their positions in thedomestic and foreign markets.

A cluster is a geographically localised group of in-terrelated companies, such as suppliers of equipmentand parts, providers of specialised services, infrastruc-ture and research facilities, universities and other or-ganisations, that create high added value productionchains, thus complementing each other and strength-ening competitive advantages of individual companiesand the cluster as a whole.

The Expert Council on the Cluster Policy, establishedby the Kemerovo Region Administration Board (Resolu-tion No. 149 of 20.04.2012) and represented by federal

and regional authorities, company owners, industry ex-perts, universities, research institutions and innovativestructures, formulates a strategy for developing inno-vation clusters in the Kemerovo Region. Such innova-tion clusters are currently being established in coalchemistry and biomedicine.

2.7.4. Major industrial clustersThe innovative territorial cluster ofintegrated coal and industrial wasteprocessing

Currently, Russia holds one fifth of total proven re-serves of coal in the world. Modern technologies makeit possible to produce over 130 kinds of chemical inter-mediates from coal, which are then used to manufac-ture over 5,000 kinds of commodities.

The strategic goal of the cluster is to develop anintegrated coal and industrial waste processing sectorbased on the region’s traditional production sites, indus-trial enterprises and small innovation enterprises throughresearch, development and introduction of new technol-ogies, staff training and infrastructure development.

The cluster will enable the Russian coal sector tochange its technology platform and develop a funda-mentally new type of economic activity with coal at thebeginning of a value added chain.

The cluster brings together businesses and indus-trial complexes, scientific, educational and innovativeorganisations located in the central part of the Kemero-

Developcluster

initiatives

The Cluster Policy Aims and Objectives

Facilitate investmentin modernisationand innovationdevelopment

Set institutional objectivesto develop the internal

market

Developcluster

specialisation

Create a beltof innovative

enterprises anda research and technology

environment

Encourage cooperationand subcontracting

withinthe cluster

Contribute to innovation development, cost savingand quality improvement

Create conditions for the developmentof public-private partnerships

31


vo Region, namely in the cities of Kemerovo, Leninsk-Kuznetskiy, Belovo, Kisselevsk and Novokuznetsk, whichare part of the Kuzbass agglomeration.

The cluster residents operate in 5 key areas ofdeep coal conversion, namely:

coal chemistry (coal gasification to produce chem-ical intermediates),

coke chemistry (coal coking to produce metallur-gical coke and chemical intermediates),

carbon materials (producing high-value-addednanomaterials from coal),

electrical power production (developing technolo-gies and equipment for clean and efficient coal firing), and

waste recycling (producing a range of construc-tion materials from industrial waste).

The cluster’s key residents are: OAO Koks, a leading metallurgical enterprise with

a product range of 30 items; KOAO Azot, one of the largest chemical enterpris-

es in Russia producing over 40 items for agriculture,coal mining and chemistry;

OAO SUEK, Russia’s major producer of thermalcoal;

OAO HC SDS-Coal, Russia’s leading producer ofhigh quality thermal and coking coal by opencast andunderground mining;

OOO PO Khimprom, a leading chemical enterprise;and

OOO Semi-coking Plant, producing semi-coke ofdifferent grades, coal tar, carbonised products and semi-coke carburisers.

COAL CONVERSION PROCESS

The following projects of the cluster have the mostcompetitive advantages:

1. An energotechnological cluster based on theKarakanskiy-Zapadniy opencast mine (investor – ZAOBelovskaya Mine);

2. An energotechnological coal conversion complexbased on the Mencherepskoye coalfield (investor – OAOInter RAO UES);

3. An energotechnological coal conversion complexof Serafimovsky;

4. An underground coal gasification complex in thefields of the Dalniye Gory (Remote Mountains) mine;and

5. A technological complex for deep conversion ofbrown coal based on the Itatskoye coalfield.

Over 20 small innovation projects are currently beingimplemented according to the production plan of theCluster Development Programme, with total invest-ments planned to reach up to one billion roubles by2017.

The implementation of the cluster’s large invest-ment projects and small innovation projects will enablethe Kemerovo Region to meet its targets for deep con-version of coal by 2020.

The total cost of all projects aimed to develop thecluster’s power, engineering, innovation and education-al infrastructure, investment projects, research anddevelopment, training, retraining and advanced train-ing for a period up to 2020 exceeds 260 billion roubles.

Within the current legal framework, the cluster res-idents implementing priority projects for the region canenjoy maximum tax benefits.

32


Cluster’s Key Investmentand Innovation Projects

33


Targets for Deep Conversion of Coalin Kemerovo Region

34


Innovative Territorial Cluster Map

35


Providing high-tech medical care is a keypriority of the cluster.

The innovative territorialbiomedical cluster

The Kemerovo Region’s innovative biomedical clus-ter aims to promote public health through prevention,diagnosis and treatment of socially significant diseas-es in a large industrial region, using innovative break-through technologies and advanced scientific research.

This innovative biomedical cluster is expected tospecialise in the following areas:

providing high-tech medical treatment for cardio-vascular diseases;

designing advanced models of medical treatmentfor cardiovascular diseases;

developing new biomaterials for cardiovascularsurgery; and

training in the treatment, diagnosis and preven-tion of cardiovascular diseases.

Modern biotechnologies are extending the frontiersof science. In Russia, they are recognised as one of the

priorities of the innovation economy. Kuzbass has suffi-cient resources and conditions to make a significantcontribution to the development of this area, such as itsscientific potential, administrative support and innova-tion infrastructure, including OAO Kuzbass Technopark,business incubators, and research and training centres.

The Kemerovo Region’s innovative territorial bio-medical cluster includes groups of interrelated compa-nies, namely specialised suppliers, health care provid-ers, and educational and research institutions.

Contact:The Cluster Development Centre,ОАО Kuzbass TechnoparkKemerovo, Sosnoviy boulevard, 1, office 607Tel.: +7 (3842) 77-88-70

36


State Supportof Investment,Innovationand ProductionActivities

33.1. Agencies in chargeof state support

The following agencies provide theadministrative framework of state supportin the Kemerovo Region:

1. The Kemerovo Region Administration Board

2. The Kemerovo Region Governor’s Council on In-vestment and Innovation

3. The Department for Investment and StrategicDevelopment at the Kemerovo Region Administration

4. The Kemerovo Region Department for the De-velopment of Enterprise and the Consumer Market

5. The Kemerovo Region Department of Agricul-ture and Food Industry

3.2. Investment commissioners

At the end of 2011, in an effort to encourage in-vestment in the region, Governor Aman Tuleyev in-troduced a position of an investment commissionerand appointed Deputy Governor for the Economy andRegional Development D. V. Islamov Investment Com-missioner for the Kemerovo Region (Kemerovo Re-gion Governor’s Order No. 185-rg of 23 December2011 “On the Investment Commissioner for the Ke-merovo Region”). The key function of the investmentcommissioner is to assist investors with implement-ing their projects in the region, including the simplifi-cation of administrative procedures at the regionaland municipal levels.

Since 2012, investment commissioners havebeen appointed in every municipality and district ofKuzbass.

3.3. Agency for InvestmentPromotion and Protection

In April 2014, the Kemerovo Region Administra-tion founded the Agency for Investment Promotionand Protection to create and maintain a favourableinvestment climate in the Kemerovo Region by re-moving the barriers to investment and entrepreneurialactivity and reducing investment risks. The Agency isfunded from the regional budget and therefore itsservices in support of investment projects are free ofcharge.

37

Section 3. State Support of Investment, Innovation and Production Activities

The Agency’s key activities are: Organising various events to attract investment

in the regional economy; Supporting the implementation of investment

projects, including assistance with administrative pro-cedures;

Implementing measures to reduce investmentrisks and raise the international and domestic creditand investment rating of the Kemerovo Region; and

Providing legal, accounting and auditing servicesand advice on various business and management is-sues.

As on October 1, 2014, the Agency for InvestmentPromotion and Protection was providing support to 28investment projects with a total investment of over RUB20 billion. Their successful implementation should cre-ate about 5000 new jobs.

One of the projects, for example, is the construc-tion of a timber processing plant to produce OSB boards

in Mariinsk, with a design capacity of 120,000 cubicmeters of boards per year and a planned investment ofRUB 5.46 billion.

Another major project involves the construction ofan engineering plant in Leninsk-Kuznetskiy to produceconveyor equipment, with an investment of about RUB3 billion.

Contact:Kemerovo, Sosnovy boulevard, 1, office 204Phone: +7 (3842) 77-86-00E-mail: [email protected]

38


Block Diagram.Providing Support to Investment Projects

Application

Is it a small or a microenterprise?

Applicant'sparticipation required

Referralto a Centre

for SMESupport

Yes

Appointment of responsiblepersons from both sides

Are there any steps(procedures) that require

support?No

Assessment of the situation,consultations with experts and

authorities

Applicant receivesrecommendations on theprocedure and documents

required

The Agency assessesthe documentation,studies laws andadministrativeregulations andadvises the applicanton how to apply forstate and municipalservices, as well asservices of naturalmonopolies.

End of service

No

Yes

39


Application to regional or localauthorities and organisations for

a service

Monitoring the progress,shortening the time of

consideration

Are the resultsin line

with the laws?

Application to commissions,supervisory and law-enforcement bodies

Participation in the work of thecommissions, monitoring the

requirements

Applicant receivesthe result

of the service

The applicationis preparedby the Agencyand the applicanttogether

A supervisor from theAgency's staff regularlymonitors the progressof the service and sendsrequests for a fasterconsideration of theapplication

Yes

No

40


3.4. State programmesfor investment, innovationand enterprise support

The Kuzbass Economic Development and Innova-tion Economy in 2014-2016 (adopted by the KemerovoRegion Administration Board, Resolution No.376 of 13September 2013);

The Development of Small and Medium-SizedEnterprises in the Kemerovo Region in 2014-2017(adopted by the Kemerovo Region Administration Board,Resolution No.413 of 1 October 2013).

3.5. Legal framework and key formsof state support

The following laws of the Kemerovo Region aim toimprove the investment climate and create favourableconditions for doing business in the region:

1) On State Support of Investment, Innovation andProduction Activities in the Kemerovo Region (No.102-ОZ of 26.11.2008);

2) On Favoured Economic Zones (No.87-ОZ of08.07.2010);

3) On Technoparks in the Kemerovo Region (No.55-ОZ of 25.06.2008);

4) On Tax Relief for Investment and Innovation En-tities and Manufacturers, Technopark ManagementCompanies, Technopark Residents, Favoured Econom-ic Zones Management Companies and Residents ofFavoured Economic Zones (No.101-ОZ of 26.11.2008);

5) On Tax Rates in the Simplified Tax System (No.99-ОZ of 26.11.2008);

6) On Tax Relief for Waste Recycling Companies inthe Kemerovo Region (No.64-OZ of 02.06.2011);

7) On Tax Relief for Technopark Residents and In-vestors Engaged in Coal-Bed Natural Gas (Methane)Extraction in the Kemerovo Region (No.5-ОZ of28.01.2010);

8) On the Innovation Policy of the Kemerovo Region(No.66-ОZ of 02.07.2008), and others.

Forms of state support(according to the Kemerovo Region laws):

1. Regional tax relief: profit tax reduction from 18% to 13.5%; 100% exemption from corporate property tax.

2. Deferred payments, instalment plans,credit for regional taxes:

transport tax; corporate property tax;

credit terms – 1/4 of the RF Central Bank refinanc-ing rate, up to 5 years.

3. Partial subsidies out of the regional budgetfor the interest on bank loans taken towardsthe project implementation

Recipients: investment entities, residents of tech-noparks of the Kemerovo Region, residents of favouredeconomic zones of the Kemerovo Region.

The size of a subsidy is based on 1/2 of the RF Cen-tral Bank refinancing rate as at the date of the loanagreement between the borrower and the lending com-pany, but no more than 1/2 of the actual interest on theloan.

4. Subsidies out of the regional budget toreimburse expenses for preparing projectdocumentation and project state appraisal

Recipients: investment entities, innovation entities,residents and management companies of favouredeconomic zones of the Kemerovo Region; residents oftechnoparks of the Kemerovo Region.

Subsidies can equal up to 90% of the actual ex-penses, subject to the investor’s confirmation of partic-ipation in the project.

5. Tax relief for taxpayers choosing thesimplified tax system

Tax rate reduction to 5%.Recipients:1) taxpayers engaged in one of the 19 economic

activities stipulated by Law No. 99-ОZ;2) investment and innovation entities under the

Kemerovo Region Law No.102-OZ of 26.11.2008;3) technopark residents under the Kemerovo Re-

gion Law No.55-OZ of 02.07.2008; and4) favoured economic zones (FEZ) management

companies and FEZ residents under the Kemerovo Re-gion Law No.87-OZ of 08.07.2010.

3.6. Company eligibilityfor state support

Tax relief can be granted to the following catego-ries of entities:

companies running investment or innovationprojects in the Kemerovo Region and investing only theirown or their own and borrowed funds in the priorityareas of the region’s socio-economic development;

legal entities and individuals, including foreignbusinesses, that are involved in manufacturing prod-ucts, processing raw materials or providing services inthe priority areas of the Kemerovo Region;

businesses and individual entrepreneurs imple-menting innovation projects and using technopark in-frastructure facilities (residents);

41

technopark management companies that provideresidents with a workspace in the technopark and ac-cess to its services;

legal entities and individual entrepreneurs regis-tered in a municipality of the Kemerovo Region that hasa Favoured Economic Zone (FEZ) and engaged in an


Oil refining is one of the priority projects in theKemerovo Region.

economic activity in this FEZ on the basis of an agree-ment on conducting this activity in line with the FEZ pro-file; and

FEZ management companies that attract business-es and individuals into the FEZ, accommodate them andprovide access to the FEZ services.

42


3.7. Company eligibility for tax relief

Type of tax reliefRecipient Terms for granting tax relief

Investment entities

Innovation entities

Technopark residents

Residents of favouredeconomic zones of theKemerovo Region

Manufacturers

Technopark managementcompanies

Favoured economic zonesmanagement companies

Taxpayers engaged in one ofthe 19 economic activitiesstipulated in Law No. 99-OZ

Favoured economic zonesmanagement companies

Residents of favouredeconomic zones

1. Profit tax - reductionfrom 18% to 13.5%2. Property tax - 100%exemptionPeriod of tax relief:1-5 years

1. Profit tax - reductionfrom 18% to 13.5%2. Property tax - 100%exemptionPeriod of tax relief:up to 5 years

1. Profit tax - reductionfrom 18% to 13.5%2. Property tax - 100%exemptionPeriod of tax relief:1-5 years

Tax rate reduction from15% to 5% for taxpayerschoosing the simplifiedtax system

1. Taxpayer's entry in the Register of InvestmentProjects of the Kemerovo Region, the Register ofInnovation Projects, the Register of Manufacturers,the Register of Technopark Residents and theRegister of Favoured Economic Zone Residents ofthe Kemerovo Region.

2. The share of earnings derived from the givenproject - not less than 70% of total earnings(for profit tax reduction).

3. The share of fixed assets used towards the projectimplementation - not less than 70% of total fixedassets (for property tax exemption).

1. Engagement in activities stipulated in Law No.102-OZ (9 activities according to the Russian NationalClassifier of Economic Activities).

2. Entry in the Register of Kemerovo RegionManufacturers.

3. The share of earnings derived from the sales ofgoods (services) produced as a result of the priorityactivity - not less than 70% of total earnings(for profit tax reduction).

4. The share of fixed assets used for the givenactivity - not less than 70% of total fixed assets(for property tax exemption).

Entry in the Register of Kemerovo RegionTechnoparks and the Register of Favoured EconomicZones of the Kemerovo Region.

1. Not less than 80% of the company's income in thereporting (tax) period, calculated according toArticle 346.15 of Section 26.2 of the RF Tax Code, isderived from one of the 19 economic activitiesstipulated in Law No. 99-OZ, provided the taxableamount is income less expenses.

2. FEZ management companies entered in theRegister of Favoured Economic Zones.

3. FEZ residents entered in the Register of FavouredEconomic Zone Residents.

43


3.8. Procedure for providing statesupport to investment andinnovation entities andmanufacturers

1. Applying to the Department for Investmentand Strategic Development at the Kemerovo RegionAdministration

2. Preparing a package of application docu-ments, namely:

an application for state support of investment ac-tivity;

copies of the foundation documents with all thesubsequent amendments and annexes;

a copy of the certificate of state registration; an extract from the Unified State Register of Legal

Entities obtained no earlier than ten days prior to thedate of application;

a copy of the certificate of registration with thelocal tax authority;

copies of documents verifying the manager’s pow-ers;

a business plan in electronic and paper forms,presented in due format;

a resolution of the Kemerovo Region Administra-tion’s departments or other executive bodies of the Ke-merovo Region, according to the sectoral affiliation ofthe investment project (activity), on the advisability ofproviding state support to the investment project (ac-tivity) in terms of the latter’s significance for the sectorand its compliance with the eligibility criteria, includingthe information on any previously granted state sup-port;

copies of balance sheets and appendixes theretofor the preceding year and the preceding quarters ofthe year under account signed by the tax office;

a statement from the tax office on the payment oftaxes, dues and fees, fines and penalties received noearlier than ten days prior to the date of application; and

a statement showing the average listed numberof employees and average wages over the previousreporting period, signed by the manager and certifiedwith the entity stamp.

3. Expert review of the documents by the De-partment for Investment and Strategic Develop-ment

4. Submitting the project to the Kemerovo Re-gion Governor’s Council on Investment and Inno-vation

5. Submitting the project to the Kemerovo Re-gion Administration Board (if approved by the Coun-cil on Investment and Innovation)

6. Signing the Agreement on investment, inno-vation or manufacturing between the KemerovoRegion and the entity receiving state support (ifapproved by the Kemerovo Region AdministrationBoard)

3.9. Procedure for providing statesupport to technopark residents

1. Applying to the technopark managementcompany

2. Preparing a package of application docu-ments to be submitted to the Department for In-vestment and Strategic Development, namely:

a statement verifying the status of a technoparkresident;

an innovation project designed in line with thetechnopark’s activities;

a statement of approval of the innovation projectby the expert council of the technopark included in theRegister of Technoparks of the Kemerovo Region;

an agreement between the applicant and the tech-nopark on the implementation of the innovation project;

a copy of the certificate of registration with thelocal tax authority;

copies of the foundation documents with all thesubsequent amendments and annexes;

a statement from the tax office on the absence(presence) of arrears to the budget; and

a statement showing the average listed numberof employees and average wages over the previousreporting period.

3. Expert review of the project by the techno-park management company and, in case of a favour-able decision, referring the latter to the Departmentfor Investment and Strategic Development at theKemerovo Region Administration

4. Submitting the project to the Kemerovo Re-gion Governor’s Council on Investment and Inno-vation

5. Submitting the project to the Kemerovo Re-gion Administration Board (if approved by the Coun-cil)

44


6. Signing the Agreement on cooperation in theproject implementation between the Kemerovo Re-gion, the technopark and the resident receivingstate support (if approved by the Kemerovo RegionAdministration Board)

3.10. Procedure for investors incapital construction

3.10.1. Investor’s plan of action

1. Searching for an investment site and defin-ing technical and economic indicators

An investment site can be chosen from the Registerof Investment Sites on the investment portal atwww.keminvest.ru, or by using the geographic informa-tion system of territorial planning of the Kemerovo Regionat www.isogd42.ru. Alternatively, investors can consult theAgency for Investment Promotion and Protection at650002, Kemerovo, Sosnovy boulevard, 1, office 204, +7(3842) 77-86-00 (open Monday to Friday 8.30-17.30, lunchbreak 12.00-13.00). Technical and economic indicators ofa construction facility are defined by investors themselves.

2. Registration of land rightsRights over municipal land are granted by local

authorities of municipalities, except for the city of Ke-merovo. Land located in the city of Kemerovo and in theKemerovo Region is managed by the Kemerovo RegionCommittee for State Property Management(www.kugi42.ru). Information on the administrative pro-cedure for granting land is available on the official web-sites of local authorities.

If there is a need for cadastral works, the applicantshould apply to any certified cadastral engineer listed inthe Register of Cadastral Engineers available on the web-site of the Federal Service for State Registration, Cadas-tre and Cartography (Rosreestr) at www.rosreestr.ru.

The registration of land rights is governed by the RFCivil Code.

To register land rights, the applicant should applyto the Rosreestr Office in the Kemerovo Region(www.to42.rosreestr.ru/) or its local departments (thelist of local departments is at www.to42.rosreestr.ru/under ‘Structure’).

3. Obtaining an urban development plan of landUrban development plans of land are granted by a

local authority of the municipality where the plot is lo-cated. The administrative procedure for obtaining anurban development plan of land is available on the offi-cial websites of local authorities.

4. Conducting engineering surveysEngineering surveys are conducted to study the

land’s natural conditions, identify factors of anthropo-

genic impact on the environment, and obtain informa-tion required for developing design documentation.Those surveys which can affect the safety of capitalconstruction shall only be carried out by individual en-trepreneurs or companies certified to perform such workby a self-regulatory organisation (SRO). The lists of suchindividuals and companies are available on SROs offi-cial websites. The Register of SROs can be found on thesite of the Federal Service for Ecological, Technologicaland Nuclear Supervision (Rostekhnadzor) at http://sro.gosnadzor.ru/.

5. Developing design documentationDesign documentation which can affect the safety

of capital construction shall only be prepared by indi-vidual entrepreneurs or companies certified to per-form such work by a self-regulatory organisation (SRO).The lists of such individuals and companies are avail-able on SROs official websites. The Register of SROscan be found on Rostekhnadzor website at http://sro.gosnadzor.ru/.

45

6. Expert review of design documentation andengineering surveys and the environmental impactassessment

In the cases under Article 49 of the RF Town Plan-ning Code, the design documentation and results ofengineering surveys shall be subject to expert review.The review can be conducted by state or non-state ex-perts depending on the project’s nature, risks and tech-nical complexity, as well as the sources of funding. Statereview is carried out by the Federal Autonomous Estab-lishment Glavgosekspertiza Rossii (Central State ExpertReview Board), www.gge.ru, or the State AutonomousEstablishment Upravlenie Gosekspertizy (The Depart-ment for State Expert Review), www.uge42.ru. Non-statereview should be conducted by accredited specialisedorganisations. The list of accredited reviewers is avail-able on the website of the Federal Service for Accredi-tation at http://fsa.gov.ru/ under ‘Registers’.

In the cases under Articles 11 and 12 of the FederalLaw No. 174-FZ of 23.11.1995 “On Environmental Im-pact Assessment”, the design documentation shall besubject to environmental assessment by the KemerovoRegion Department of Natural Resources and Ecology(www.kuzbasseco.ru).

7. Applying for a construction permitConstruction permits are granted by a local au-

thority of the municipality where the plot of land islocated. If the plot is located in two or more municipal-ities of the Kemerovo Region, construction permitsshall be granted by the Central Department of Archi-tecture and Urban Planning of the Kemerovo Region(www.guaig42.ru).

8. ConstructionThose works involved in construction, renovation

or overhauling which can affect the safety of capital


construction shall only be performed by individual en-trepreneurs or companies certified by a self-regulatoryorganisation (SRO). The lists of such individuals andcompanies are available on SROs official websites. TheRegister of SROs can be found on Rostekhnadzor web-site at http://sro.gosnadzor.ru/.

Article 53 of the RF Town Planning Code calls forbuilding control during construction. If the constructionis performed on a contract basis, building control is con-ducted by the developer or the project owner. The lat-ter should obtain permission for building control from aSRO.

In the cases under Article 54 of the RF Town Plan-ning Code, construction shall be subject to state super-vision. State supervision can be conducted by the Ros-tekhnadzor South Siberian Department (http://usib.gosnadzor.ru/) or the Kemerovo Region Inspec-torate for State Construction Supervision(www.igsnko.ru), depending on the project’s nature,risks and technical complexity, and if the project is re-lated to placement and disposal of I-V hazard classwaste.

9. Obtaining a permission for commissioningThe commissioning of a capital construction facility

is authorised by the authority that granted a construc-tion permit.

To access state services for procedures 2, 3, 6, 7, 8and 9, the investor can apply to a multipurpose centreor a single window service provided by local authori-ties.

In case the investor does not have a property de-veloper on staff, we recommend them to apply to speci-alised organisations performing a developer’s functionson a contract basis, for any procedures related to cap-ital construction.

46


3.10.2. Block diagram.Procedure for providing land for construction

* KUGI KO – Kemerovo Region Committee for State Property Management** Roseestr – the Federal Service for State Registration, Cadastre and Cartography*** The Kemerovo City Administration or the Kemerovo Region State Agency for Registration of Land Rights inKemerovo City

APPLICANT KUGI KO*

Applicationfor land

List of documents:

1. An application form

2. A land location map

3. An excerpt from theSingle State Register ofLegal Entities / the SingleState Register ofIndividual Entrepreneurs

4. A copy of the certificateof state registration of alegal entity or anindividual entrepreneur

5. A copy of a legalentity’s charter

6. A copy of anidentification documentof the representative

7. A copy of a documentcertifying the rights(authorities) of therepresentative or leaseaccording to land laws

10 days

Initial examinationof documents

A complete set ofdocumentscomplying withadministrativerequirementsand laws

The Committeesends a notificationto the Applicant anda request for landplot formation to theagency underthe agreement

Lack of requireddocuments

or failureof documents

to complywith laws

The Committeesends a refusalof land to theApplicant

Identification of thirdparty rights over landand a possibility of landplot formation for thepurpose requested

Rosreestr**Office in Kemerovo

Region

Technical InventoryCenter for

Kemerovo Region

Municipal RealEstate Bureau

Design organisation

30 days

Making a land planon the cadastral mapof the area

1

2

1 2 3

Refusal

47


Agency in charge of land plot formation ***

Kemerovo CityAdministration

25 days

Approvingthe land planon the cadastral mapof the area

Planningorganisation

45 days

Cadastral worksand a surveyingplan

Roseestr** Office inKemerovo Region

20 days

State cadastralregistrationof the land

Kemerovo RegionOffice of the

Federal Servicefor Supervision

of ConsumerRights Protection

and HumanWellfare

45 days

Reaching a sanitary-epidemiologicalconclusion on the land

Kemerovo CityAdministration

10 days

Issuing technicalconditions for connectingthe facility to the networkof engineering andtechnical support

Valuationorganisation

15 days

Preparing a reporton the market valueof the landor the right to lease

3

4

5

6

7

8

4

48


3.10.2. Block diagram.Procedure for providing land for construction

415 days (outside the term of publication)

KUGI KO*

Legal review of documents

1. A document certifying the absence of third party rights overthe land formed2. A cadastral plan of the land (3 copies)3. A land location map4. A municipal legal act approving the land location map5. Technical conditions for connecting the facility to the networkof engineering and technical support, specifying the connectioncharge6. A report by an independent appraiser (when land is subjectto tender)7. Documents confirming the costs of land formation8. A sanitary-epidemiological certificate of complianceof the intended use of land with sanitary regulations9. Other documents required by laws

Documentsproving theimpossibilityof land formation

Applicant notified of theimpossibility of grantingthe land for therequested purpose

Refusal

The Committee places an advertisement of the landplot offered for lease in the newspaper Kuzbass

Documentsconfirming the possibilityof grantingthe land

The Committeedecides to holdan auction

2 or more applicationsfor the land

1 applicationfor the land

The Committeedecides to grantthe land

Concluding a contract* KUGI KO – Kemerovo Region Committee for State Property Management

49


5 6Organiser of a tender

3.10.3. Construction authorities

The Kemerovo Region Department for Construction650000, Kemerovo, pr. Sovetsky, 60+7 (3842) 58-55-45, [email protected]

The Kemerovo Region Committee for StateProperty Management650099, Kemerovo, pr. Sovetsky, 58+7 (3842) 58-15-50http://www.kugi42.ru

The Kemerovo Region Department for StateExpert Review (The Department for ReviewingDesign Documentation and Results of Engineer-ing Surveys)650023, Kemerovo, ul. Tereshkovoy,18, office 2+7 (3842) 34-66-01, Fax: +7 (3842) 34-66-01http://uge42.ru

The Rosreestr Office in the Kemerovo Region650991, Kemerovo, pr. Oktyabrsky, 3 g+7 (3842) 72-53-59, 35-74-16http://www.to42.rosreestr.ru

The Central Department of Architecture andUrban Planning of the Kemerovo Region650099, Kemerovo, pr. Sovetsky, 60+7 (3842) 36-43-17http://www.guaig42.ru

The Kemerovo Region Department of NaturalResources and Ecology650000, Kemerovo, pr. Sovetsky, 63+7 (3842) 58-55-56http://www.kuzbasseco.ru

The Kemerovo Region Inspectorate for StateConstruction Supervision650064, Kemerovo, pr. Sovetsky, 60+7 (3842) 58-70-12www.igsnko.ru

The South Siberian Department of the FederalService for Ecological, Technological and NuclearSupervision (Rostekhnadzor)Kemerovo, ul. Institutskaya, 3+7 (3842) 64-54-20http://usib.gosnadzor.ru

KUGI KO*

6 days40 days

Concluding a contractOrganising and holding a tender

A report on the tender’s results

50


3.11. Supporting major projects of social and economic significance

№ Name of projectName of project initiator

1.

2.

3.

4.

5.

6.

7.

8.

9.

10.

11.

12.

13.

14.

15.

3.11.1. Major projects of social and economic significance

Constructing a plant to produce OSB/OPB and wood chip boards with a capacity of 120,000 m3 p.a. inMariinsk, Kemerovo RegionZAO MPK (Mariinsk Board Factory)

Constructing a plant to produce modern conveyor systemsOOO Transport Systems, Leninsk-Kuznetskiy

Producing multipurpose 12-9085 and 12-9850 open wagons with unloading hatchesOAO Novokuznetsk Carriage Works

Extracting methane from coal seams in the priority areas of KuzbassOOO Gazprom Dobycha Kuznetsk

Constructing the Severny Kuzbass oil refinery with a capacity of 2 million tons p.a. in Anzhero-SudzhenskOOO Severny Kuzbass Oil RefineryZAO Management Company KEM-OIL

Constructing an oil refinery with a capacity of 1 million tons p.a. in Anzhero-SudzhenskOOO Anzherskaya Oil and Gas Company

Upgrading the existing facilities at Tom-Usinsk GRES and Belovo GRES, expanding generating capacity atNovokuznetsk GTPP (gas turbine power plant) according to the RF Government Resolution No.1334-p of11.08.2010OAO KuzbassenergoOOO SGK (Siberian generation company)

Constructing the Yaya oil refineryZAO NefteKhimServis, Yaiskiy district

Constructing a joint factory to assemble BelAZ dump trucksOAO Holding Company SDS-MashZAO Management Company SDSOAO BelAz

Constructing a new facility to produce porous ammonium nitrate with a capacity of 400,000 tons p.a.OAO SDS-AzotZAO HC SDS

Constructing a facility to produce competitive sterile infusion solutions for parenteral nutrition for theRussian marketOOO Pharm Group

Overhauling and upgrading the house-building factory in KemerovoOOO Kemerovskiy DSK (house-building factory)

Constructing a dairy farm for 2100 forage-fed cows with a full breeding cycleOAO Vaganovo

Upgrading winter greenhouses for fruit and vegetable productionOOO Kaltanskoye

Upgrading production facilities and launching new packaging lines for dairy productsOAO Kemerovo Dairy Plant

51


3.11.2. Priority projects


Investor Project

1.

2.

3.

4.

5.

6.

7.

8.

9.

10.

26.12.2008Resolution of theKemerovo RegionAdministration BoardNo. 594 of 26.12.2008





14.01.2011Resolution of theKemerovo RegionAdministration BoardNo. 603 of 29.12.2010(worded as in Resolutionof the Kemerovo RegionAdministration BoardNo. 283 of 23.06.2011)

14.01.2011 Resolution ofthe Kemerovo RegionAdmi-nistration Board No.603 of 29.12.2010 (wordedas in Resolution of the Ke-merovo Region Admini-stration Board No. 283 of23.06.2011)




ZAO AFKTaxpayer IdentificationNumber (INN) 4246005341

ОАО Novokuznetsk CarriageWorksTaxpayer IdentificationNumber (INN) 4217101428

ООО SPK ChistogorskyTaxpayer IdentificationNumber (INN) 4238013194

ООО City Tennis CentreTaxpayer IdentificationNumber (INN) 4217125524

ООО Siberian CarriageRepair CompanyTaxpayer IdentificationNumber (INN) 4217112317

ООО SelyanaTaxpayer IdentificationNumber (INN) 4234002730

ООО Joy GlobalTaxpayer IdentificationNumber (INN) 4211010319

The charitable foundation‘Kuzbass Volleyball ClubSports Complex’Taxpayer IdentificationNumber (INN) 4205176901

ООО Naturalnoye Moloko(Natural Milk)Taxpayer IdentificationNumber (INN) 4205209219

ООО Kemerovskiy DSK(house-building factory)Taxpayer IdentificationNumber (INN)4205193907

Building a facility to produce large size plywoodwith a capacity of 60,000 cubic meters in Anzhero-Sudzhensk

Launching a facility to produce multipurpose12-9085, 12-9850 open wagons with unloadinghatches

Upgrading a pig-breeding complex and anindustrial wastewater treatment facility

Constructing a children's tennis school with 4indoor Taraflex-coated courts, on a total area of4,200 square meters, and 4 outdoor clay courts

Constructing a carriage repair shop with acapacity of 4,800 repairs p.a. in Novokuznetsk

Constructing a dairy farm to house 1280 heads ofcattle

A service centre for maintenance and repair ofmining equipment and excavators

Constructing a sports centre for physicaleducation and mass sports, health promotion andhealth protection in Kemerovo

Constructing a modular dairy plant to process 10tons of raw milk per day

Upgrading the Kemerovo House-building Factory

52



Investor Project












11.

12.

13.

14.

15.

16.

17.

18.

19.

20.

21.

3.11.2. Priority projects

ООО KuzbassptitsepromTaxpayer IdentificationNumber (INN) 4205168805

ООО AvtoElementTaxpayer IdentificationNumber (INN) 4217070120

ОАО VaganovoTaxpayer IdentificationNumber (INN) 4246017548

ООО KDV-AgroTaxpayer IdentificationNumber (INN) 4246017548

ZАО NefteKhimServisTaxpayer IdentificationNumber (INN) 4217102358

ZАО Mariinsk Board FactoryTaxpayer IdentificationNumber (INN) 4205223478

ZAO Kuzbass Food FactoryTaxpayer IdentificationNumber (INN) 4238008042

ОАО KuzbassenergoTaxpayer IdentificationNumber (INN) 4200000333

ООО New TechnologiesTaxpayer IdentificationNumber (INN) 4220035493

ООО KaltanskoyeTaxpayer IdentificationNumber (INN) 4238000029

ОАО Kemerovo Dairy PlantTaxpayer IdentificationNumber (INN) 4206008057

Upgrading a poultry farm

Producing filters for high-combustion engines

Constructing a dairy farm for 2100 forage-fedcows with a full breeding cycle

Launching an agricultural facility to growpotatoes for crisps production

Constructing the Yaya oil refinery, phase 1

Constructing a plant to produce OSB/OPB andwood chip boards with a capacity of 120,000 cubicmetres p.a. in Mariinsk

Constructing a complete cycle facility for meatproduction and processing

Upgrading the existing facilities atTom-Usinsk GRES and Belovo GRES, expandinggenerating capacity at Novokuznetsk GTPP (gasturbine power plant) according to the RFGovernment Resolution No.1334-p of 11.08.2010

Converting a winery into a plant to producereconstituted juices and juice drinks, cannedfoods and dairy products

Upgrading winter greenhouses for fruit andvegetable production

Upgrading production facilities and launchingnew packaging lines for dairy products

53


1.

2.

3.

4.

5.

6.

7.

8.

9.

10.

11.

12.

13.

14.

15.

16.

17.

Pond at the river of Talovka

Land under the dismantledbuildings of Farm 1

Industrial site of theliquidated coal preparationplant of Sudzhenskaya

Lake Pobeda

Industrial sitesof liquidated enterprises

Plot of land inPuteprovodnaya street inthe centre of Belovo

Investments sites No 1-17

Former fuel depot site

Area around the plannedsite of municipal solid waste

Former Shushtalepskayamine site

Plot of land(production site)

Plot of land forconstructing a productionand storage facility

Plots of land 1-8for construction

Premises of the formerYegozovskaya mine office

Severnaya Promzona

Site for a sportsand recreation centre

Site for a shopping mall

Belovskiy district

Belovskiy district

Anzhero-Sudzhensk

Anzhero-Sudzhensk

Anzhero-Sudzhensk

Belovo

Berezovskiy

Kaltan

Kaltan

Kaltan

Kemerovo

Kemerovo

Kisselevsk

Leninsk-Kuznetskiy

Leninsk-Kuznetskiy

Mezhdurechensk

Mezhdurechensk

3.11.3. Major active investment sites

Lease

Lease

NA

NA

NA

According to Article 38of the RF Land Code

Tender, lease

According to the RFLand Code


Auction

Tender

Tender

Lease

Subject to prioragreement on location

Subject to prioragreement on location

Auction

Auction

48.7

2.0

5.0

7.4

260.1(total for4 sites)

2.0


3.0

3.0

26.7

1.0

1.0

166.4 (totalfor 8 sites)

2.0

400.0

1.3

1.6

Sport, tourism

Industrialproduction


Sport, tourism


Construction

Construction





Construction

Sport, tourism,construction



Construction

Construction

№ Name of site Municipality Conditions Area, ha Uses/Sectors

54


Land for sporting facilities(sports centre)

Building a wholesalestorage facility

Building a shopping mallin Toreza street

Storage facilities of theWest-Siberian heat andpower plant

Communal storage area

Wholesale storage facility(Ordzhonikidzevskiydistrict)

Hotel

Administrative buildingand parking area

Wholesale storage facility(Ordzhonikidzevskiydistrict)

Logistics facilities(Kuibyshevsky district)

Area in Polevaya street

Area in Novostroika street

Suvorov park

Recreation area

Krasnaya Gorka (Red Hill)

Severniy Maganak

Investment sites 1-18

18.

19.

20.

21.

22.

23.

24.

25.

26.

27.

28.

29.

30.

31.

32.

33.

34.

Myski

Novokuznetsk

Novokuznetsk

Novokuznetsk

Novokuznetsk

Novokuznetsk

Novokuznetsk

Novokuznetsk

Novokuznetsk

Novokuznetsk

Ossinniki

Ossinniki

Polysayevo

Polysayevo

Prokopyevsk

Prokopyevsk

Taiga

Lease, buyout

Auction

Auction

Negotiations

Lease

Put up for tender

Documents underpreparation

Put up for tender





Lease on favourableterms for small andmedium-sizedenterprises

Lease on favourableterms for small andmedium-sizedenterprises

Lease for aconstruction term

Lease for aconstruction term

Tender, ownership,lease

Sport, tourism

Construction

Construction


Construction,industrialproduction


Construction

Construction

Construction

Construction



Sport, tourism

Sport, tourism

Construction

Construction

Construction

№


Name of site Municipality Conditions Area, ha Uses/Sectors

5.8

1.02

1.07

2.2

75.7

4.2

0.7

0.7

1.4

1.8

1.5

5.6

8.5

8.4

8.2

10.1

36.3 (total for18 sites)

55


№

35.

36.

37.

38.

39.

40.

41.

42.

43.

44.

45.

46.

Lease for constructionwith furtheragreement on thelocation of facilities.Lease of productionfacilities

Lease

Long-term lease onfavourable terms witha possible buyout ofland

Open tender in theform of an auction

Ownership

Auction

Auction

Lease

Lease

Auction and a lease

Auction and a lease

Investor's choiceof a site



Yurga, a manufacturingfavoured economic zone

Industrial site 2

Free sites

Plot of land alongthe federal roadM-53 Baikal

Gardeners' non-profitpartnership, Energiya,Zhuravlevo village

Developing a new coalseam on Krapivinskiy site,constructing a new mine

Developing a coal seam onKomarovskiy site ofZmeinskoye coalfield

Plot of land, Dal'niy

Land of Blagoveschenskiyfarm

Plot of land in the roadsidearea in Kuzedeyevo village

Building a wholesale/retailfacility in Atamanovovillage

Building a logistics centrein Sosnovskoye settlement

Yurga

Yurga

Guryevskiydistrict

Kemerovskiydistrict

Kemerovskiydistrict

Krapivinskiydistrict

Krapivinskiydistrict

Mariinskiy district

Mariinskiy district

Novokuznetskiydistrict



88.7

126.0


2.0

2.0

480.0

567.9

500.0

800.0

1.3

7.5

85.0



Industrialproduction, sport,tourism,construction

Construction

Sport, tourism,construction



Agriculturalproduction


Construction

Construction


56


№

47.

48.

49.

50.

51.

52.

53.

54.

55.

56.

57.

58.



Industrial production

Agricultural production,industrial production

Building a municipal solidwaste site 1

Regional centre for skiingand snowboarding

Sheregesh tourist complex,sector E

Building an industriallogistics centre

Livestock premises

Investment site 1(Rechnoy settlement)

Investment site forenterprises in the light,processing or foodindustries in Sudzhenkavillage

Investment site fordeveloping a recreationalarea

Investment site forenterprises in the light,processing or foodindustries in Yaya urban-type settlement

Sites of liquidatedenterprises

Krasnobrodskiyurban-typesettlement

Krasnobrodskiyurban-typesettlement




Topkinskiy district

Chebulinskiydistrict

Yurginskiy district

Yaiskiy district

Yaiskiy district

Yaiskiy district

Yashkinskiydistrict

According to Articles22-37, 87-93 of the RFLand Code

According to Articles22-37, 77-82,87-93 ofthe RF Land Code

Auction

Permanent (unlimited)use

Auction

Lease

Lease

Land lease

Lease/ownership

Lease followedby buyout

Lease followedby buyout

Lease or buyout

1.1

10.0

5.0

120.9

1 071.2

120.0

5.0

3.5

10.0

18.0


3.8


Agriculturalproduction,industrialproduction

Construction

Sport, tourism

Sport, tourism



Construction


Sport, tourism

Construction


The investment policy of the - Invest in Russia · 4 Kemerovo Region Investment Profile...

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