Download - Kaliningrad region - the territory of opportunities

8 “pros” of a new business in the Kaliningrad region

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8 “pros” of a new business in the Kaliningrad region

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Testing grounds for entering Russian marketKaliningrad is a real opportunity for trying out conducting business under Russian conditions with the subsequent entering the markets of the mainland Russia and the Eurasian economic space.

Proximity of European marketsThe Kaliningrad region has a common border with two EU states: in the North and East it borders on the Republic of Lithuania, and in the South – on the Republic of Poland. Since 1999 the volume of foreign trade has grown tenfold.

Support to investors from the regional Government“The open door policy” is aimed at supporting and developing business, enlarging interregional and international relations, establishing favorable investment climate. There is a gubernatorial Board on location of investment which allows businessmen to receive all the necessary permits and fi nal papers within a “one-stop shop” mode.

Advantage of the Special Economic ZoneThe provisions of the Federal Law of January 10, 2006 No. 16-FL “On the Special Economic Zone in the Kaliningrad region” and the Agreement of June 18, 2010 on the issues of free (special, exclusive) economic zones in the customs territory of the Customs Union and free customs procedure of the free customs zone provide investors in the territory of the region with customs and tax exemptions, with a guarantee not to apply measures increasing the total tax burden of a resident, and with visa support to foreign investors.

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Kaliningrad region

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Growing potential of the transportation system The volumes of freight turnover in the port and railway complexes of the region are growing annually. For the further development of transport potential, funding of infrastructure projects in the sphere of air, railway, sea and river transport is envisaged within the Federal Targeted Program.

Considerable tourism and recreation potentialMild climate, developed coastal area, wonderful natural landscapes, developed tourism infrastructure attract numerous visitors from both Russian regions and abroad. The implementation of initiatives on the establishment of a gambling zone as well as of the Special Economic Zone of tourism and recreation kind will promote a further growth of tourism attractiveness of the region.

Accessibility of Baltic and Atlantic sea routesThe port of Kaliningrad is the only ice-free Russian port in the Baltic with docks for ro/ro and passenger vessels, railway ferries, general and container cargoes, with a possibility of performing customs, border and other obligatory formalities.

Steady environment for making long-term decisions The priorities of the economic development of the region stipulated in the relevant long-term program documents (in the Federal Targeted Program (FTP) of development of the Kaliningrad region and sectoral FTPs, the Strategy and Program of the socio-economic development, the Concept of industry development) establish conditions of stability and certainty.

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Economic performance

47

67

82 103

144

179170

198 229

2003 2004 2005 2006 2007 2008 2009 2010 2011

Kaliningrad region

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In 2011 the Kaliningrad region recorded strong economic growth, steady growth of industrial production, a moderate rise in real incomes as well as a fall in the unemployment rate.

The economic product of the Kaliningrad region (i.e. the gross domestic product of the region) is about 227 billion roubles (approximately EUR 5.7 billion on offi cial exchange rate), growing at the rate of 8% in 2011 and well above the Russian average of 4.3%. The Regional Ministry of Economy predicts an

GDP of the Kaliningrad regionbln.rub

average annual growth rate of 5.5% per annum for the next fi ve years. Kaliningrad per capita GDP in 2011 reached a level of approximately EUR 6,000 on offi cial exchange rate (EUR 9,000 on PPP).

GDP growth dynamics, % (2000 y.=100%)

GDP per capita (thous.rub)

49

70

118

123,5

139

144

166

199

208

202,6

126

134

145158 166 159

87110

154

191 181

210

242

2003

2003

2004

2004

2005

2005

2006

2006

2007

2007

2008

2008

2009

2009

2010

2010

2011

2011

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Index of the physical volume of GDP, %

109,3112,6

103,6

115,3

119,9

114,7

91,5

106,5

2003 2004 2005 2006 2007 2008 2009 2010 2011

Rate of growth of industrial development indices in 2011, %

Kaliningrad regionRussia

industrial production index

manufacturing index

NEFR

18,8%

6,5%

8,9%

18,0%

4,7%5,3%

Kaliningrad region

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Breakdown of the Gross Regional Product, %

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2005 2006 2007 2008 2009 2010

Section А. Agricultural industry, hunting and forest sector 5,9 6,5 3,7 4,8 5,6 5,1

Section В. Fishing industry, fi sh-farming 2,2 2,3 1,8 1,1 1,6 2,1

Section С. Extraction of minerals 14,7 12,7 12,2 8,6 7,3 5,9

Section D. Manufacturing 17,3 14,1 17,2 18 16,5 16,4

Section Е. Production and distribution of electric energy, gas and water 2,6 2,3 2,6 2,4 2,3 2,5

Section F. Construction 5,6 5,5 8,8 10,1 7,6 5,7

Section G. Wholesale and retail trade; repairs of motor vehicles, motorcycles, household goods and personal demand items 17,1 19,5 17,8 19,6 20,9 21,4

Section Н. Hotels and restaurants 1,4 1,4 1,1 0,9 0,9 0,9

Section I. Transport and communication 11,6 10,6 8,3 9,2 6,7 9,8

Section J. Financial activities 0,3 0,2 0,1 0,1 0,2 0,2

Section K. Real estate operations, rental and provision of services 6,5 8,2 9,1 8,5 11,6 13,2

Section L. Public administration and military security; social insurance 6,4 7,8 6,9 6,8 8 8,1

Section M. Education 3,4 3,7 3,6 3,4 3,8 3,1

Section N. Public health service and provision of welfare services 4 4,1 4,2 4,3 4,8 4,4

Section O. Provision of other utility, social and personal services 1 1,1 2,6 2,2 2,2 1,2

Breakdown of the Gross Regional Product in 2010, %

Kaliningrad region

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13,2%

0.9%2,1%

2,5%

3,1%

4,4%

5,1%

5,7%

5,9%

8,1%

9,8%

16,4%

21,4%

0,2%

1.2%

In recent years the structure of Kalin-ingrad economy has not undergone any substantial changes, with manu-facturing, wholesale and retail being the most important sectors. In particular the manufacturing sec-tor shows signifi cant growth rates, becoming a largest sector in the economy over the last few years. The

sub-sectors with the highest growth rate were in car assembly, television equipment as well as production and design of reinforced concrete struc-tures and prefabricated elements. Overall, the manufacturing sector was very resilient to the global economic crisis, growing from 2008 to 2011 by 167.9%.

60463 55877

Capital investments, mln. rub

13699

19746

2995933148

42302

7081268958

2003 2004 2005 2006 2007 2008 2009 2010 2011

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Foreign investment, mln. USD

298.8

375.9

112.2

206.5

310.3

In 2011 the capital investment increased by 14.5 %. The largest increase was in the manufacturing activities, and here in particular in the chemical industry and the food industry.

2007 2008 2009 2010 2011

Kaliningrad region

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Export of the Kaliningrad region by countries —transactors in 2011

Country - transactor Share in export Main goods

Total export 100.00%

CIS countries (8 countries) 5.90%

Ukraine 4.10% off the peg fi sh products, food-industry waste

Other CIS countries 1.80%

Non-CIS countries (87 countries) 94.10%

Lithuania 13.10% mineral substances, fertilizers

Germany 12.80% oil products (light distillates)

Sweden 9.30% oil products (light distillates)

The Netherlands 8.90% oil products (light distillates)

Belgium 7.10% oil products (light distillates), plastic products

France 6.70% soybean oil

Denmark 6.30% soybean oil, oil products (light distillates),

UK 5.30% oil products (light distillates), soybean oil

Poland 4.20% ferrous scrap and waste, plastic products

Norway 2.90% soybean oil

Other non-CIS countries 17.50%

Kaliningrad region

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Import of the Kaliningrad Region by countries —transactors in 2011

Country - transactor Share in import Main goods

Total import 100.00%

CIS countries (7 countries) 1.10%

Ukraine 1.00% ferrous metals and goods from them, copper

Other CIS countries 0.10%

Non-CIS countries (135 countries) 98.90%

Germany 18.50% component parts for car assembly

Korea, Republic 13.00% component parts for car assembly

Slovakia 10.00% component parts for car assembly

China 9.30% electronic packages, component parts for LCD TV assembly, computers

Poland 7.70% component parts for LCD TV assembly, plastic products

USA 6.10% component parts for car assembly

The Netherlands 2.90% soybeans, meat

Paraguay 2.80% soybeans

UK 2.70% discs, bands and other data storage units

Brazil 2.50% soybeans

Other non-CIS countries 23.40%

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Special economic zone in the Kaliningrad region

Kaliningrad region

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Enterprises and organi-zations operating in the territory of the region enjoy various legal regu-lations concerning the order of application of tax and customs prefer-ences (enterprises of the “transition period” and enterprises-residents of the SEZ).In accordance with the Federal Law of January 10, 2006 No 16-FL “On the Special Economic Zone in the Kaliningrad region (further – SEZ) and on amending some legislative acts of the Russian Federation”: by SEZ the territory of the Kaliningrad region is meant in which a special legal treatment of conducting economic, production, and investment activities is in force, and also a procedure of a free customs zone is applied. The period of the SEZ functioning is till April 1, 2031.

How to become a resi-dent of the SEZ

A legal entity (further – Applicant) is to submit in written form the follow-ing to the SEZ Administration in the Kaliningrad region:

• an application about incorporation;

• notarially certifi ed copies of the foundation documents of the legal entity (founding charter);

• a notarially certifi ed copy of the registration certifi cate of the legal entity;

• a notarially certifi ed copy of the certifi cate of registration with a tax authority;

• an investment declaration;

• a business plan of the investment project.

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Economic entities conduct-ing their activities in the territory of the Kaliningrad region

General conditions of eco-nomic activities

Enterprises not exercis-ing special conditions of economic activities

SEZ residents in the Kalinin-grad region

Enterprises which were registered and conducted foreign-economic activities before 2006 (enterprises of “transition period”)

Special conditions of eco-nomic activities

Kaliningrad region

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The SEZ Administration considers the application about incorporation of the Applicant in the register within a pe-riod of no more than thirty days since the day of submitting the application to the SEZ Administration, makes a decision on the incorporation of the Applicant in the register or on the refusal to incorporate the Applicant in the register stating the reasons of the refusal, and on the day of the decision making a written notice is sent to the Applicant.

A decision on the refusal to incorpo-rate the Applicant in the register is made by the SEZ Administration only in case the Applicant fails to observe the conditions of incorporation in the register stipulated by the present Federal Law. The decision on the Applicant’s in-corporation in the register is docu-mented by issuing a certifi cate to the Applicant on his/her incorporation in the register.The Applicant has the right to operate on the basis of the special legal treatment of the Special МММVVVEconomic Zone since the date when the decision was made on the Applicant’s incorporation in the register.

Requirements to an in-vestor A legal entity is subject to be incor-porated in the register in case of complying with the following require-ments:

• a legal entity was established in ac-cordance with the legislation of the Russian Federation;

• the state registration of a legal entity was done in the Kaliningrad region;

• the production of goods is conduct-ed by the legal entity exclusively in the territory of the Kaliningrad region;

• the investment is made by the legal entity in the territory of the Kalinin-grad region;

• the investment project submit-ted by the legal entity meets the requirements set by the present Federal Law.

Legal entities applying special tax regulations stipulated by the leg-islation of the Russian Federation on taxation and revenue cannot be Residents of the SEZ.

Financial institutions including credit and insurance institutions as well as professional participants of the securities market cannot be Residents of the SEZ.

Requirements to an investment project The investment project must be implemented in the territory of the Kaliningrad region.

The investment project cannot be aimed at the following:

• oil extraction, natural gas extrac-tion, rendering services in the given areas;

• production of ethyl alcohol, of alcoholic products, production of tobacco goods and other excisable goods (with an exception of light motor vehicles and motorcycles) in accordance with the list approved by the Government of the Russian Federation;

• wholesale and retail trade;

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Kaliningrad region

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• repairs of household goods and personal demand items;

• fi nancial activities.

Investment must be executed in the form of capital investment.

The amount of capital investment in accordance with the submitted invest-ment project must total no less than one hundred and fi fty million rubles and must be implemented within the period not exceeding three years from the date of making the decision on incorporating the legal entity in the register.

Privileges and preferenc-es to the SEZ residents The SEZ residents enjoy a special order of paying corporate profi ts tax and corporate property tax set by the Article 288.1 and Article 385.1 of the Tax Code of the Russian Federation:

• during the fi rst 6 years since the date of the organization’s incorpora-tion in the register of residents, the said taxes are paid at the rate of 0%;

• from the 7th till the 12th year, the said taxes are paid in the amount of 50% of the rate set by the legisla-tion.

• The other taxes and charges are paid in accordance with the current legislation of the Russian Federation on taxation and revenue.

• Besides, the Federal Law estab-lishes:

• a possibility to apply a facilitated procedure of issuing Russian visas for citizens of foreign states – resi-dents’ representatives;

• an unalterable rental fee for the land plot leased to the resident during the whole period of the lease contract duration;

• a guarantee not to apply measures increasing the resident’s tax burden.

The SEZ residents bringing imported goods to the territory of the Kalinin-grad region and placing them under the customs treatment of a free cus-toms zone on the basis of Article 9 of the Agreement on the issues of free (special, exclusive) economic zones in the customs territory of the Customs Union and customs procedure of the free customs zone of 18/06/2010 are exempt from payment of import taxes and VAT paid when bringing imported goods. In addition to that, such goods are not subject to non-tariff regulatory measures.

Tax preferences

Guarantees to residents

profi t taxproperty tax

Rental fee: the rental fee for the land plot will remain the same during the whole period of the lease contract duration

Import duty /VAT for goods coming in Duty when taking out products after processing to the territory of the Customs Union

Tax guarantees: a guarantee not to apply measures increasing the resident’s total tax burden

Visa support: a facilitated procedure of issuing Russian visas for citizens of foreign states – residents’ representatives

Procedure of the free customs zone (bringing in and using foreign goods in the territory of the SEZ)

½ of the current rate

0%

0%

0%

01.04.2016

during the fi rst 6 years from the 7th till the 12th year

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Procedure of free cus-toms zone Following the establishment of the Customs Union between the Russian Federation, Republic of Belarus and Republic of Kazakhstan, the countries-counterparts adopted an Agreement on the issues of free (special, exclu-sive) economic zones in the customs territory of the Customs Union and customs procedure of a free customs zone of 18/06/2010.

Article 10 of the Agreement gives the defi nition of a free customs zone. “A Free customs zone is a customs procedure in accordance with which goods are treated and used within the territory of the SEZ or its part without payment of customs duties, taxes, and also without application of non-tariff regulatory measures regarding foreign goods and without application of bans and restrictions concerning goods of the Customs Union”.

Foreign goods treated under the customs procedure of a free customs zone retain the status of foreign goods. Thus, a legal entity, whose state registration was conducted in the Kaliningrad region, bringing imported goods in the territory of the SEZ and placing them under the customs procedure of a free cus-toms zone, by virtue of Article 9 of the Agreement is exempt from the payment of import duties and VAT paid when bringing imported goods. In addition to that, such goods are not subject to non-tariff regulatory measures.

Goods treated under the procedure of a free customs zone retain their status — foreign goods remain for-eign, and goods of the Customs Union remain such. The determination of the status of goods manufactured (re-ceived) with the use of foreign goods

placed under the customs procedure of a free customs zone is regulated by Article 19 of the Agreement.

Goods manufactured (received) with the use of foreign goods placed under the customs procedure of a free customs zone are recognized as goods of the Customs Union if in the course of the goods’ manufacturing (receiv-ing) one of the following conditions is fulfi lled:

• the goods classifi cation code of the single Goods nomenclature of foreign economic activity of the Customs Union was changed at the level of any of the fi rst four symbols;

• the share in percentage terms of the value of foreign commodities placed under the customs proce-dure of a free customs zone does not exceed the fi xed share in the price of the fi nished product, or the added value amounts to the fi xed share in the price of the fi nished product.

The commodity was exposed to con-ditions, production and technological operations suffi cient for recognizing the commodity manufactured (re-ceived) with the use of foreign goods, placed under the customs procedure of a free customs zone, as a commod-ity of the Customs Union.

Kaliningrad region

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The commodity manufactured (received) with the use of foreign goods, placed under the customs procedure of a free customs zone is not recognized as the commodity of the Customs Union if the commodity was exposed to only those opera-tions which do not meet the criteria of suffi cient processing irrespective of fulfi lling other conditions.

Changing of the goods classifi cation code of the single Goods nomencla-ture of foreign economic activity of the Customs Union at the level of any of the fi rst four symbols is not used as a criterion of suffi cient processing of commodities manufactured (received) with the use of foreign goods, placed under the customs procedure of a free customs zone in case the goods are subject to conditions, production and technological operations suffi cient for recognizing the goods manufactured (received) with the use of foreign goods, placed under the customs procedure of a free customs zone, as goods of the Customs Union.

When taking out foreign goods, placed under the procedure of a free customs zone, and goods that received the status of commodities manufactured (received) with the use of foreign goods, placed under the customs procedure of a free customs zone, from the territory of the SEZ in the Kaliningrad region, import duties and VAT are payable in the amount corresponding to the amounts of import duties and VAT which would be payable if the goods were placed un-der the customs procedure of turning out goods for internal consumption.

ContactsDepartment of special economic zones of the Ministry of industrial policy, development of business activity and trade of the Kaliningrad region

Address: 1, D. Donskogo Street, Kalin-ingrad, Russia, 12360073rd fl oor – Room 341

Telephones:+7 (4012) 599 327+7 (4012) 599 347

e-mail: [email protected]

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Programs of development

Kaliningrad region

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At present a package of documents ensuring the development of the region has been elaborated in the Kaliningrad region. These include the Strategy of development of the Kaliningrad region for the mid- and long-term prospect, the Program of the socio-economic development of the Kaliningrad region for the period of 2007—2016 and the Federal Targeted program of development of the Kaliningrad region till the year of 2015.

Russia’s joining the WTO and abolition in 2016 of a number of customs preferences required the introduction of amendments in the current program documents. At the moment, public discussions of the Strategy of the socio-economic development of the Kaliningrad region till 2031 are under way. The work on the document went on for more than 12 months; experts from McKinsey Company and the Centre for strategic developments from St. Petersburg were involved in the work.

Strategy of development of the Kaliningrad region

Program of the socio-economic developmentof the Kaliningrad region

Federal Targeted Program of developmentof the Kaliningrad region

Targeted ProgramsDevelopment of the Kaliningrad region as a tourism centre

Main areas of support to small and medium-sized businesses in the Kaliningrad region

Main areas of development of the agro-industrial complex in the Kaliningrad region

Development of education

Concept of development of industry in the Kaliningrad region

Concept of development of transport complex of the Kaliningrad region

Under considerationStrategy of development of amber industryof Russia for the period till 2021

Program of development of shipbuilding industry in the RF

Development of medicine Development of fi nancical sector

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Industry development Concept in the Kaliningrad region

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2031

2016

2015

2014

2013

2016

2016

2015

2020

2021

Kaliningrad region

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In 2011 the industry development concept in the Kaliningrad region for the period till 2015 was approved. It contains, in particular, the evaluation of the competitiveness of the Kaliningrad region and the tools of the Concept implementation.

food production

shipbuilding and shiprepairing

production of cars

production of television and

other household electronics

furniture production

production of prefabricated metal

goods

production of construction

materials

production of jewelry

from amber

chemical production

The Concept determined the priority areas of development of industry and its complexes. Among the priority areas within the sector of manufacturing are production of food, shipbuilding and ship repairing, production of cars; manufacturing of television and other household electronic equipment, furniture production, and production of jewelry from amber.

development of industry

production of machinery and

equipment

Main areas of development of the agro-industrial complex in the Kaliningrad region

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Agriculture in the Kaliningrad region is at present one of the main priority areas of the regional state policy. The Government of the Kaliningrad region in the course of its work from 2011 has established sustainable pre-conditions for increasing the volumes

of investment in the agro-industrial complex including foreign investment.

The introduction of new technologies of production in the agriculture is actively supported by providing assistance to effi cient agricultural enterprises. Enterprises are also given support as regards produce sales, development of land relations, conducting a complex of amelioratory activities, staffi ng, and social development in villages.

Kaliningrad region

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bee-farming

crop productionbeef husbandry

fi shing industry and fi sh-farming

agro-industrial complex

dairy cattle husbandry

beef husbandry

Development of the Kaliningrad region as a tourism centreDevelopment of education Concept of development of transport complex of the Kaliningrad regionDevelopment of medicine Development of fi nancical sector

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Kaliningrad region

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services

tourism

transport & logistics

education

fi nances

medicine

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State support to small and medium-sized businesses

Kaliningrad region

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Conditions and the order of providing support to entities of small and medium-sized business (SME) are set by the Targeted Program “Main areas of development of small and medium-sized businesses in the Kaliningrad region for the period of 2009-2013”. The Program is aimed at the development of SME in the spheres of innovation activities, housing and public utilities, social services, processing industry, amber industry, and tourism. Also, the most favorable treatment is set for those SME oriented towards exporting manufactured output and the services rendered.

The support to the SME is provided within the following areas:

easy micro-loans to SME – offering reimbursable short-term loans for the period of up to 1 year in the amount of up to 1 million rubles. The effective annual interest rate is 15%;

support to SME in the sphere of innovation and export – partial reimbursement of expenses connected with:

• payment of loan interest – up to 50% of expenses for the payment of interest, but not more than 1/2 of the rate of refi nancing in the event of loan being taken in rubles, and not more than 6% per annum in the event of taking a loan in foreign currency;

• the work on certifi cation, registra-tion or other forms of confi rma-tion of conformity – up to 50% of the expenses incurred on fulfi ll-ing obligatory requirements, but not more than 0.5 ml rubles for covering expenses connected with receiving one certifi cate, and not more than 1 ml rubles per one SME entity;

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subsidization of part of expenses connected with:

• payment of interest on the loans – for the fi rst 12 months of the use of the loan in the amount of up to 50% of the stated expenses, but not more than 1/2 of the refi nancing rate;

• payment of interest on the loans in amber industry – 2/3 of the refi nancing rate for the whole period of the loan, but not longer than the period of the Program validity.

• participation in the exhibition and fair activities – 2/3 of the expenses for the slot rent, stand building, registration fee;

• registration of the SME, purchasing of equipment, renting premises, connecting to the power grid - in the fi rst year of operating in the amount of up to 100 000 rubles.

The information about the kinds of support to ESMB and conditions of their provision is given on the page of the “Foundation of support to business activity” at www.fpmp39.ru

• participation in the exhibition and fair activities abroad – up to 2/3 of the expenses incurred, with the exception of travel expenses (to the venue and back), accommodation and meals;

• payment for the services on the development of means of identi-fi cation of a legal entity and the output – up to 50% of the expenses incurred;

registration and legal protection abroad of inventions and other outputs of intellectual activities subject to legal protection and means of identifi cation of a legal entity and the output – up to 2/3 of the expenses incurred;

a guarantee fund – offering to the SAI of the Kaliningrad region “Foundation of support to business activity” guarantees of return of up to 50% of the amount of the loan taken by the ESMB operating within priority areas but not having suffi cient assets, to the bank;

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Калининградская область

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Contacts“Foundation of support to business activity” Address: 13, Sovietsky Prospect, Kaliningrad, Russia, 2360004th fl oor – Room 4035th fl oor – Rooms 540, 541

Telephones:+7 (4012) 599 590+7 (4012) 599 556


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Board on location of investment

Kaliningrad region

35

Board on location of investment in the territory of the Kaliningrad region is a consultative body ensuring interaction between the federal bodies of executive power, bodies of state power, local self-government authorities, institutions, enterprises and other organizations with a view to implementing investment projects in the territory of the Kaliningrad region.

The objective of the Board is to consider projects and offer state support in the implementation of investment projects by reducing the period of issuance permissive, constitutive documents, reconciliation procedures, advancement of resolving the issues connected with selection and allocation of a land plot, and also providing state guarantees, tax preferences to investor in accordance with the legislation in force.

The Board members are: • representatives of the bodies of

state power of the Kaliningrad region;

• representatives of territorial agen-cies of federal bodies of executive power;

• representatives of administrations of municipal entities of the Kalinin-grad region;

• representative of other stakehold-ers.

The Board's activities are coordinated by the Ministry of Economy of the Kaliningrad region.

All the necessary forms of documents, recommendations on their fi lling in and the procedure of their submission can be found at the

www.investinkaliningrad.ru

ContactsMinistry of EconomyAddress: 1 D. Donskogo Street, Kaliningrad, Russia, 236000.3rd fl oor – Room 318

Telephones: +7 (4012) 599 319


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Industrialzones

Kaliningrad region

37

Industrial zone “Baltiiskaya”

Water supply, m³ a day Local water supply point Connection at the border of the IZ, local water supply point

Gas supply, ml m³ a year 20 no

Electric power, Mw 20 (not earlier than mid 2014) 0,5 (TA)

Infrastructure Projected capacity by the end of 2013 Available capacity (limits)

Draining (household drain), m³ a day 1,500 no

Civil engineering infrastructure and communications

Location – Urban district “City of Kaliningrad”

Total (prospective) area of the IZ – 119 (350) ha

Distance (km) from:

47 – sea port (Baltiisk);61 – border crossing point (Poland);127 – border crossing point (Lithuania); 1 – motorway of federal signifi cance.

Number of the population in the IZ – 419 100 people, including economically active population – 269 100 people.

Category of lands in the territory of the IZ – lands of industry

Development and encumbrance – land plots are the property of the company LLC “Balttechprom”

Specialization of the industrial zone – chemical industry

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Location – Municipal entity “Gurievsk municipal district”, village of Poddubnoye

Total area of the IZ – 229.1 ha

Distance (km) from:

8 – the Oblast’s center (Kaliningrad)8 – sea port1 – railway station 30 (Poland), 120 (Lithuania) – border crossing point1 – motorway of federal signifi cance

Number of the population in the ME including – 53,200 people, economically active population – 35,100 people

Pre-school institutions – 17

Comprehensive schools – 11

Institutions of vocational training – no

Developed sites – 10 sites from 11 to 53 ha

Category of lands in the territory of the IZ – lands of industry

Development and encumbrance – absent

Water supply, m³ a day Local water supply point Local water supply point


Electric power, Mw 50 (not earlier than mid 2014) 7 (TA)


Draining (household drain), m³ a day 3500 (not earlier than mid 2014) no


Industrial zone “Gurievskaya”

Kaliningrad region

39

Water supply, m³ a day Local water supply point Connection at the border of the IZ, local water supply point




Draining (household drain), m³ a day 1,500 no

Location – Municipal entity “Gurievsk municipal district”, village of Konstantinovka

Total area of the IZ – 75 ha

Distance (km) from:

11 – the Oblast’s center (Kaliningrad)25 – airport2 – railway station 56 (Poland), 96 (Lithuania) – border crossing pointless than 1 – motorway of federal signifi cance

Number of the population in the ME including— 53,200 people, economically active population 35,100 people



Institutions of vocational training – no

Developed sites – 3 sites: 41.3 ha, 16 ha, 16 ha

Category of lands in the territory of the IZ – lands of settlements, agricultural lands (site of 16 ha)



Industrial zone “Konstantinovka”

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Industrial zone “Sovietskaya”

Location – Municipal entity “Sovietsk urban district”

Total (prospective) area of the IZ— 100 (133) ha

Distance (km) from:

120 – the Oblast’s center (Kaliningrad)120 – sea port4 – railway station 5 (Lithuania) – border crossing point4 – motorway of federal signifi cance

Number of the population in the ME including – 41,800 people including, economically active population 26,700 people



Institutions of vocational training – 1 institution of primary vocational training, 3 institutions of secondary vocational training

Developed sites – a site of 100 ha was developed

Cadastre number – 39:16:010103:107

Category of lands in the territory of the IZ – lands of settlements


Water supply, m³ a day 200 – town mains (up to 2000 in 2014), local water supply point

200 – town mains, local water supply point

Gas supply, ml m³ a year 13.2 no

Electric power, Mw 25 (not earlier than mid 2014) 6


Draining (household drain), m³ a day 2000 – town mains no


Kaliningrad region

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Industrial zone “Technopolis Gusev”

Water supply, m³ a day town mains, local water supply point town mains, local water supply point




Draining (household drain), m³ a day 3,500 Town water treatment facilities at the border of the IZ

Location – Municipal entity “Gusev municipal district”

Total area of the IZ – 340 ha

Distance (km) from:

115 – the Oblast’s center (Kaliningrad)122 – airport1 – railway station 26 (Poland), 36 (Lithuania) – border crossing pointless than 1 – motorway of federal signifi cance

Number of the population in the ME 37,200 people including, economically active population 24,000 people



Institutions of vocational training – 1 institution of primary vocational training,1 institution of secondary vocational training, 3 institutions of higher vocational training

Developed sites – not delimited


Development and encumbrance – sites are the property of the company “General Satellite”


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Industrial zone “Chernyakhovskaya”

Location – Municipal entity “Chernyakhovsk municipal district”

Total (prospective) area of the IZ— 938.3 ha

Distance (km) from:

80 – the Oblast’s center (Kaliningrad)80 – sea port1 – railway station 42 (Poland), 50 (Lithuania) – border crossing pointless than 1 – motorway of federal signifi cance




Institutions of vocational training – 1 institution of secondary vocational training, 2 institutions of higher vocational training

Developed sites – the area of the IZ is partially delimited, 79 sites were developed

Category of lands in the territory of the IZ – lands of settlements, lands of industry


Water supply, m³ a day 4,000 – town mains, local water supply point

local water supply point


Electric power, Mw 70 (not earlier than mid 2014) no


Draining (household drain), m³ a day 4,500 – town mains (not earlier than 2015)

no


Kaliningrad region

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Industrial zone “Pravdinskaya”

Location – Municipal entity “Pravdinsk district”

Total (prospective) area of the IZ—130 ha

Distance (km) from:

57 – the Oblast’s center (Kaliningrad)57 – sea port19 – railway station (village of Zheleznodorozhny)28 (Poland), 120 (Lithuania) 37 – motorway of federal signifi cance




Institutions of vocational training – 1 institution of secondary vocational training

Developed sites – limits were determined; sites are being registered in the cadastre


Development and encumbrance – ruins and foundations of pre-war and Soviet buildings

Water supply, m³ a day 100 local water supply point

Gas supply, ml m³ a year 20 is being determined

Electric power, Mw 25 (not earlier than mid 2014) 1,5


Draining (household drain), m³ a day 750 500


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8

Innovation

Kaliningrad region

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Geographically, the major innovation projects and organizations of the region are concentrated in the city of Kaliningrad. However, two other towns in the region have been recently demonstrating signifi cant dynamism and innovation: Gurievsk, which is located just outside the city of Kaliningrad and Gusev, which has welcomed a number of innovative enterprises.The Council for Scientifi c and Technological Policy, headed by the Minister of Economy of the Kaliningrad region is in charge of formulating the region's scientifi c and innovation policy. In addition, the

region also has two non-commercial partnership projects: 'Kaliningrad Centre for Innovation and Technology' and 'Kaliningrad Technology Transfer Centre'. Other organizations that have to be mentioned include the Chamber of Commerce of the Kaliningrad Region, ‘Baltica’ Innovation and Technology Center, SME Support Foundation and “Innovation Park” of IKSUR.

One of the main features of innovation development is the fully-functioning ‘science-industry- government’ network. During 2009, the Russian Federation adopted a Federal Law on the creation of fi rms with participation of universities and research institutes. As a result, several of the Kaliningrad higher educational establishments have already launched a number of pilot start-ups. The main source of fi nancial support for the innovative enterprises in the region is the Federal Foundation for Development of Innovative SMEs.

The dynamic development of Kaliningrad’s IT sector has led to

46

outgrown the scales of the local market and actively marketing their services globally. Examples include fi rms developing Content Management Systems (CMS), Geographic Information System, plug-in software utilities for world-known brands, solutions for companies’ trade representatives etc.

However, there are many IT-companies providing support and other services to small and medium-size enterprises, such as ICT audits, introduction of Enterprise Resources Planning (ERP), Client Relationship Management (CRM) etc. software solutions.

The segment of computer game designing is also dynamically developing in Kaliningrad. The fi rst such company in the region was set up in 1992, and over the last 20 years the region gained the reputation as one of the best places in Russia for developing computer games.

Finally, the region also records a number of start-ups operating on the basis of self-developed innovations. Sectors include agricultural technology development, processing of raw materials, food industry, professional equipment development, healthcare and biotechnology, IT-solutions for agriculture, housing and utility services.

Kaliningrad region

47

Business-incubator in thecity of Kaliningrad Location – 6 Gaidara Street, Kaliningrad.

The business-incubator is being established with a view to supporting entrepreneurs at the initial stage of their activities by renting out premises and rendering services necessary for conducting business activities including the following:

• regular mentoring guiding;

• a wide network of sectoral experts;

• direct contacts with investors;

• extensive data bases;

• a library of books and electronic training courses;

• personal couching;

• consultancy services (marketing, promotion, development strategy, legal protection of business etc.);

• assistance in attracting investment;

• participation in promotion events, workshops and trainings of the incubator;

• enlargement of business relations;

• receiving services from other residents of the incubator (outsourcing of recruiting, design, accounting record-keeping, promotion etc.).

Residents of the business-incubator have an opportunity to have their projects supported by the regional authorities by means of specialized programs of grants, subsidies and privileges to innovative entrepreneurs, enterprises-exporters, novice entrepreneurs and others.

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The priority areas of the residents' business are the following:• software development for enhanc-

ing effi ciency in various spheres (medicine, tool-making facilities etc.),

• production of electrical equipment and electronic devices,

• manufacturing of jewellery, souve-nirs and other articles from amber,

• development of Internet services for different kinds of consumer services,

• development of mobile applications of different kinds of services,

• development of game applications including those for mobile phones,

• promotion of services in the Inter-net, social networks etc.,

• small innovative enterprises estab-lished to meet the needs of large companies, and also involving uni-versity professors on the bases of higher educational institutions and the scientifi c park of the Immanuel Kant Baltic Federal University,

• consultancy, recruiting and other companies which can offer out-sourcing services for the residents of the business incubator (incuba-tor's eco-system).

Kaliningrad region

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9

Investment projects

Kaliningrad region

51

In 2008, an Agreement on cooperation between the State Corporation “Rosatom” and the Government of the Kaliningrad region about the construction of the Baltic Nuclear Power Plant was signed.

The Baltic NPP will be located in the Kaliningrad region at the distance of ten kilometers from the town of Neman and fi fteen kilometers from the border with Lithuania.

The total capacity of the BNPP will be 2,300 MW (2 × 1,150 MW).

The BNNP will consist of two power generating units, whose construction is planned for the following periods:

• power generating unit No 1 – 2010—2016;

• power generating unit No 2 – 2012—2018.

On February 25, 2010, a grand ceremony of commencement of construction of the Power Plant took place in Neman district of the Kaliningrad region.

The Baltic NPP will ensure complete power independence of the Kaliningrad region, and it will also allow to export electric power to the neighboring countries. Its construction will give a powerful impetus to the development of the economy of the utmost western region of Russia. The construction will involve knowledge-intensive production, new opportunities for the construction and transport sectors. Besides that, the Plant will promote orders placing at regional enterprises, creating additional jobs, attracting highly qualifi ed experts to the region. The Baltic NPP will become one of the largest tax payers in the region.

The value of the project on the construction of the Baltic NPP will amount to approximately 140 billion rubles (without considering the scheme of power distribution). The project will be implemented involving Russian and foreign investors. Potential investors of the Baltic NPP are proposed two options of participating in the project: up to 49% in the Plant's capital, or long-term contracts for electric power supply.

Construction of the Baltic NPP

52

The annual turnover of electric power generation will come to 17.4 billion kWh, the expected personnel number is 1,100 people. The equipment service life of the Plant will be no less than 60 years.

The Plant will be built according to a commercial project “NPP-2006” with reactors of the WWER-1200 type. Water-Water Energetic Reactors (WWER) have already proven to be the most reliable and economical.

The developer of the Power Plant is the JSC “Concern Rosenergoatom”. The general contractor has been decided for the implementation of the top-priority works on the preparation of the construction site of the Baltic NPP – JSC “Severnoye upravleniye stroitelstva”.

Kaliningrad region

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Construction of thedeep-water port

The objectives and the main aims of the project implementation are the construction of a deep-water port, ensuring the main volumes of transshipment of foreign trade and transit cargoes in containers.

The construction of a deep-water port is stipulated by the Federal Targeted Program “Development of transport system of Russia (2010–2015)”. In accordance with the Program, a set of measures (design and construction) is going to be implemented in 2010–2015, the total volume of funding is approximately 100 billion rubles, including funds of the federal budget amounting at 30 billion rubles; 70 billion rubles is expected to come from the extra-budgetary funds.

The contracting authority of the project is the Federal agency of sea and river fl eet, the customer is the Federal state institution “Directorate of the contracting authority of programs of development of sea transport”.

It is envisaged to build in the port a complex for transferring container cargoes with the turnover of 65 ml

tons, or 6 ml containers annually, and a terminal for handling mechanical transport and rolling cargos with the capacity of 1 ml tons a year.

In order to ensure the stated turnover, it is planned to build 4 wide docks for simultaneous handling of 8 lead containers-ships with the capacity of up to 9,000 containers and 8 feeder container-vessels with the capacity of 2,500 containers, 2 berths for handling vessels of ro/ro type with automobiles.

The main aim of the construction of the deep-water port is ensuring the main volumes of transshipment of foreign trade and transit cargoes in containers.

Stages and schedule of the project implementation: design – 2012; construction – 2012–2015.

The main expected results of the project implementation are the establishment of a regional centre of transshipment of large-capacity containers and handling of mechanical transport and rolling cargos with the total annual turnover of 65 ml tons.

54

The objective of the project is the establishment of a high effi ciency shipyard, based on modern technolo-gies and advanced methods of plan-ning and production management.

The main parameters of the shipyard:

annual volume of production on steel processing – 20,000–22,000 tons;

construction of technically sophisti-cated vessels a year – 6–10 units;

shipyard's location – south-east of the village of Vzmoriye. The total area of the shipyard is 14.2 ha;

roofed production area – 7,6 ha;

maximal dimensions of the vessels produced L×B – 140 m × 26 m

Indicators of the shipyard's effi ciency:

number of full-time personnel – 700 people;

number of contractor employees – up to 300 people.

The main indicators correspond with the level of advanced European ship-building yards.

Financial indicators and payback:

Annual turnover is 10 billion rubles. Estimated profi t is 15%, i.e. 1.5 billion rubles.

Payback period:

In case of credit facility with the inter-est rate of 11% – 12 years.

In case of credit facility with the inter-est rate of 11% and indemnifi cation of the 2/3 of the rate of refi nancing (6%) – 8 years.

Project of the shipbuilding yard “Western Shipyard”

Kaliningrad region

55

Within the project, it is envisaged to modernize the port of Pionersky and turn it into a modern yacht marina for 950 vessels. The existing facilities allow to place 350 vessels, and the construction of a new pier to the east of the existing one will give an oppor-tunity to receive 600 more yachts.

The southern quay of the port will house pavilions of the covered fi sh market, where both visitors and local citizens will be able to buy not only fresh fi sh, but also vegetables, fruit and other local produce.

The north pier of the port is going to be reconstructed. Its length will be extended for 300 meters as far as the point where the natural depth is 12 meters, which will allow for a large cruise liners and ferries to freely ap-proach berths.

The north pier will house a passenger terminal with premises for customs and border control, as well as duty free shops.

It is planned to build a shopping centre on the embankments with the total area of 40,000 m² with a car park, and two concert halls: an open-air amphitheatre for 3,700 audience and a covered hall for 1,200 seats, and also several hotels.

The yacht-club of the “Amber coast” can become one of the largest centers for holding regattas and other water sports competitions in the Baltic. The athletes will be provided with facilities with the total area of up to 35,000 m², equipped with everything necessary for accommodating participants of compe-titions and for fl oating their vessels.

A beach adjoining the yacht-club will be developed to the east of the port. Sports grounds, a recreation site for the youth and numerous swimming-pools with sea water will be built both for adults and children.

“Amber Coast: yacht-club and resort” in the town of Pionersky

Kaliningrad region

57

The objective of the project is an increase of the pass-through function of the airport and ensuring compliance with the requirements of the exploitation of modern aircrafts.

Using the funds of the federal budget, it is planned to implement such works as: elaboration of design documentation, extension of the runway by 850 m, construction of a major taxiway and a new taxiway, reconstruction of the lighting equipment of the runway, construction of waste treatment facilities, of the take-off emergency centre, patrol way and the airport guard.

Other funds are going to be used to fi nance the reconstruction of the air terminal complex and of the cargo terminal.

The main results of the project are as follows: ensuring the required level of fl ights safety, improvement of the quality of the services offered, elimination of the negative impact of infrastructure limitations of the airport on the quality of services and an increase by no less than 200,000 passengers a year of the volume of transportation via the airport.

It is planned to implement the project within two stages: design stage – 2013, reconstruction – 2014-2015.

The total volume of funding is 11.3 billion rubles, including the funds of: the federal budget amounting to 3.8 billion rubles; extra-budgetary funds – 7.5 billion rubles.

Construction of objects of the airport complex “Khrabrovo”

Construction of the gambling zone “Amber”

Kaliningrad region

59

The placement borders of the Gambling zone Amber are defi ned in accordance with the Federal Government direction of 17/01/2008 #13-h. The area of the Gambling zone (479,1 ha) will be located in Zelenogradsk district of Kaliningrad region on the Baltic sea coast nearby Krasnotorovka, Okunevo, Povarovka, Russkoe.

Project plan provides approved land zonation in order to create a multifunctional gaming zone, which includes: hotels, entertainment facilities, sports, leisure and business facilities for recreation, relaxation, obtaining medical, spa and other services, with the possibility of gambling (including casinos).

Land for placement of commercial buildings, for the organization of the transport infrastructure (driveways, streets and squares) and green common areas (parks, squares), for engineering services construction is already identifi ed in the draft of planning project.

The Gambling zone will be positioned as an area for recreation and entertainment, for business conferences and special events.

Kaliningrad region

61

Preparation for the FIFA World CupThe initial bid of Russia for conducting the World Football Cup contained 16 stadiums in 13 cities, including Kaliningrad. The list of 12 stadiums where the matches will be held will be fi nalized in August-September 2012. In order to receive the World Cup matches in Kaliningrad, the town-planning concept of the territory development between the beds of the rivers Staraya and Novaya Pregolya was elaborated in 2011. The concept also includes the construction of a football stadium for 45,000 seats on Oktyabrsky island.

At present the Russian company “Mostovik” and the German GMP Architekten are jointly elaborating the Russian-German model of the island development and construction of the future central sports arena. The results of the joint work will be presented at the town-planning Council.

The Kaliningrad WC-2018 stadium can become a catalyst for the development of the undeveloped area adjacent to the historical centre of Kaliningrad and fi t well in the development plan of both the city and the region on the whole. Without state support private business will not be able to develop quite a diffi cult area in terms of the ground of more than 170 ha. A large territory of the island could become a perfect site for applying the mechanisms of public-private partnership.

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10

Demographyand human resources

Kaliningrad region

63

According to the data of the all-Rus-sian population census -2010, 941,500 people live in the Kaliningrad region with male population amounting to 442,700 and female - to 498,800.

Urban population amounts to 730,300, while the fi gure of people living in rural areas is 211,100. In terms of the population, the city of Kaliningrad ranks fi rst in the region with 431,900 residents.

In terms of age, the population can be broken down into the following categories:

63.6% – working-age population 15.0% – below working-age population21.4% – above working-age population

The region’s population is multi-ethnic with representatives of 30 na-tionalities and ethnic groups. Among them the largest in number are the Russians (82.4%), the Byelorussians (5.3%), the Ukrainians (4.9%), and the Lithuanians (1.5%).

From 2007 the Kaliningrad region has been among the pilot regions in Russia where the State Program of Support for the Resettlement in the Russian Federation of Compatriots Residing Abroad was launched.

64

The Kaliningrad region has a multidivisional and multilevel system of rendering educational services to the population featuring considerable innovative potential. The pivotal higher educational institutions in the region are Baltic State Academy of Fishing Fleet (BSA RF), Kaliningrad State Technical University (KSTU) and Immanuel Kant Baltic Federal University (IKBFU). Students are trained in those institutions within several dozens of spheres.

Kaliningrad StateTechnical Universitywww.klgtu.ru

1 Sovietsky Prospect,Kaliningrad

Faculties: Bioresources and natural resource management, Commercial fi shery, Mechanical and technological, Shipbuilding and power engineering, Manufacturing automation and man-agement, Humanitarian education, In-service training

Institute of management, economics and entrepreneurship

Centre of pre-university training of foreign citizens

Kaliningrad region

65

Baltic State Academy of Fishing Fleet www.bgarf.ru

6 Molodezhnaya Street,Kaliningrad

Faculties: Ship navigation, Marine engineering, Transportation, Radio-technical

Institute of applied economics and management

In the sphere of vocational train-ing, 11 regional state institutions of secondary vocational education are operating in the region where more than 9000 students are trained. 5 establishments of secondary vo-cational education are colleges and 6 are technical schools.

Immanuel Kant Baltic Federal University www.kantiana.ru

2 Universitetskaya Street,Kaliningrad

Faculties: History, Medicine, Economics, Law, Physico-Technical, Bioecology, Geog-raphy and Geoecology, Information Science and Applied Maths, Linguis-tics and Cross-Cultural Communica-tion, Psychology and Social work, Service, Physical Education and Sport, Philology and Journalism

Institute of Modern technologies in Education

European Business School of IKBFU

Town-planning college

Technical college

66

11

Municipalentities

Kaliningrad region

67

Bagrationovsk municipal district Territory – 1 018,1 sq.kmPopulation – 32 816 peoplebagrationovsk-mo.ru

Gvardeisk districtTerritory – 784,2 sq.kmPopulation – 28 494 peoplegvardeysk.gov39.ru

Gusev municipal districtTerritory – 642,7 sq.kmPopulation – 37 285 peoplewww.admgusev.ru

Krasnoznamensk municipaldistrictTerritory – 1 280,5 sq.kmPopulation – 11 732 peoplekrasnoznamensk.gov39.ru

Polessk municipal districtTerritory – 834,3 sq.kmPopulation – 19 390 peoplepolessk.gov39.ru

Nesterov municipal districtTerritory – 1 061,1 sq.kmPopulation – 16 996 peoplewww.admnesterov.ru

Yantarny urban districtTerritory – 15,5 sq.kmPopulation – 6 268 peoplewww.yantarny.net

Baltiisk municipal districtTerritory – 101,3 sq.kmPopulation – 36 974 peoplewww.baltijsk.net

Svetlogorsk districtTerritory – 80,2 sq.kmPopulation – 29 267 peoplewww.svetlogorsk39.ru

Pravdinsk districtTerritory – 1 283,9 sq.kmPopulation – 21 755 peoplepravdinsk.gov39.ru

Gurievsk municipal districtTerritory – 1 362,9 sq.kmНаселение – 52 433 peoplegurievsk.gov39.ru

Chernyakhovsk municipal districtTerritory – 1 285,8 sq.kmPopulation – 51 178 peopleinster39.ru

Mamonovo urban districtTerritory – 100 sq.kmPopulation – 7 815 peoplemamonovo.gov39.ru

Slavsk municipal districtTerritory – 1 349,1 sq.kmPopulation – 21 657 peoplewww.slavsk.info

Zelenogradsk districtTerritory – 2 016,5 sq.kmPopulation – 32 485 peoplewww.zelenogradsk.com

Ladushkin urban districtTerritory – 28,3 sq.kmPopulation – 3 941 peopleladushkin.gov39.ru

Svetly urban districtTerritory – 80,2 sq.kmPopulation – 29 267 peopleсветлый.рф

Pionersky urban districtTerritory – 8,3 sq.kmPopulation – 12 031 peoplepionersk.gov39.ru

Ozersk districtTerritory – 877,4 sq.kmPopulation – 16 106 peoplewww.ozyorsk.ru

Sovietsk urban districtTerritory – 43,8 sq.kmPopulation – 42 632 peoplewww.sovetsk-tilsit.ru

Neman municipal districtTerritory – 698,3 sq.kmPopulation – 21 738 peopleneman.gov39.ru

The city of KaliningradTerritory – 223,03 sq.kmPopulation – 431 100 peoplewww.klgd.ru

(!) страница с клапаном

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12

Reference information

(!) страница с клапаном

Kaliningrad region

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Coming to the Kaliningrad region

Visa regime and the legal status of foreign nationals in the Russian Federation.

The Government of the Russian Federation establishes a simplifi ed procedure for the processing of visas for foreign citizens who are the repre-sentatives of SEZ residents, investors and individuals invited to discuss opportunities in the Special Economic Zone.

Visas are issued at the Russian Fed-eration state border crossings by the offi ce of the Ministry of Foreign Af-fairs on the basis of invitations issued at the request of the Special Economic Zone Administration.

The legal status of foreign citizens in the Russian Federation is governed by the Federal law of 25 July 2002 (No. 115-FZ) “On the Legal Position of Foreign Citizens in the Russian Federation”. The law establishes the following three main categories of foreign nationals:

Foreign citizens temporarily staying in Russia: The period for a temporary stay of a foreign citizen in the Russian Fed-eration is determined by the validity period of his/her visa.

Foreign citizens temporarily residing in Russia.Foreign nationals are able to obtain permit for temporary residence with-out the involvement of the employer, in the local offi ce of the Federal Migration Service (FMS) in the place of his/her of residence. The procedure for obtaining the permit is set out in the regulation adopted by the Govern-ment of the Russian Federation on 01 November 2002 (No. 789).

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70

Foreign citizens permanently residing in Russia: A foreigner holding a residence permit is entitled to stay in Rus-sia for fi ve years. At the end of this period, a foreign citizen may apply for extension (the extension is allowed an unlimited number of times). In con-trast to the foreign nationals tempo-rarily staying or temporarily residing in Russia, the foreigners permanently residing in Russia are not required to obtain a work permit for employment.

Issuing work permitsThe procedure for issuing work per-mits to foreign nationals is governed by the decision of the Government of the Russian Federation dated 15 November 2006 (No. 861) “On the Procedure for Issuing Permits for Foreign Nationals to Carry out Tempo-rary Work in the Russian Federation”. A work permit for temporarily staying and temporarily residing foreign nationals should be obtained by the employer.

Permission to employ foreign workers are issued by the Federal Migration Service (‘FMS’) and are subject to a consent of the Federal Labour and Employment Service on the feasibility of employing a foreign worker.

After receiving of consent from the Federal Labour and Employment Service , the employer should apply to the FMS for the work permits for foreign worker who are temporarily staying in Russia on the basis of a visa or temporary residents. The employer should submit to the FMS an appli-cation in the form approved by the Or-der of the FMS of Russia of December 25, 2006 (No. 370).

3

The maximum term of a permit for temporary residence is 3 years. At the end of each year, the foreigner is obliged to submit to the local branch of the FMS of Russia a notice with confi rmation of his/her residence in the Russian Federation. A foreign national is entitled to work only in the territory of his temporary residence.

Kaliningrad region

71

The application should be accompanied by: • a notarised copy of the document

on professional education and skills obtained by the employee in a foreign country, or a certifi cate of conformance to the Russian diploma (certifi cate);

• a notarised copy of certifi cate of registration in the Uniform State Register of Legal Entities;

• a notarized copy of registration with a tax authority;

• a statement of the local branch of the Federal Labour and Employ-ment Service on the feasibility of attracting foreign labour;

• a draft labour agreement or other documents indicating a preliminary agreement with foreign nationals or foreign partners on the intention to employ such workers;

• documents proving payment of state duty.

Kaliningrad region

73

Charge: cold water, rubles/m³ including VAT 14,9

Charge: hot water, rubles/m³ including VAT 105,3

Charge: wholesale price of gas, rubles/thous.m³excluding VAT 3262,0

Charge: gas transportation, rubles/thous.m³excluding VAT 260,6

Charge: payment for logistics support anddistribution services, rubles/thous.m³excluding VAT 74,5

Payment for technological connection toelectricity networks, rubles/ kW including VAT 10898–14986

Charge: electric power (with voltage range –low voltage), rubles / Mwatt ×h including VAT 4057,6–4312,1

Charge: electric power (with voltage range –medium voltage), rubles / Mwatt *h including VAT 2898,8–3153,2

For reference only: Payment for the connection to water-supply network, wastewater disposal network, and to gas-distributing system is set by the local self-government bodies.

Resources cost (for legal entities) as of 2012

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Contactinformation

Kaliningrad region

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Ministry on Industrial Policy, Develop-ment of Entrepreneurship and Trade of the Kaliningrad region1, D. Donskogo Street, Kaliningrad, 236007tel.: 7 (4012) 599-337

Ministry of Economy of the Kaliningrad region 1, D. Donskogo Street, Kaliningrad, 236007tel.: 7 (4012) 599-024

Ministry of Infrastructure Develop-ment of the Kaliningrad region 1, D. Donskogo Street, Kaliningrad, 236007tel.: 7 (4012) 599-030

Ministry of Agriculture of the Kaliningrad region 1, D. Donskogo Street, Kaliningrad, 236007tel.: 8 (4012) 599-454

Agency for International affairs and regional cooperation of the Kalinin-grad region1, D. Donskogo Street, Kaliningrad, 236007tel.: 8 (4012) 599-082

Agency for Tourism of the Kaliningrad region 1, D. Donskogo Street, Kaliningrad, 236007tel.: 7 (4012) 599-140

Russian Union of Industrialists and Entrepreneurs8 Oktyabrskaya Street, Kaliningrad, 236000tel.: 7 (4012) 592-606

Kaliningrad Chamber of Commerce and Industry20 Vatutina Street, Kaliningrad, 236010tel.: 7 (4012) 590-650

Association of Foreign Investors in the Kaliningrad region8 Oktyabrskaya Street, Kaliningrad, 236000tel.: 7 (4012) 307-078

Сделано в Пикторикеwww.pictorica.ru

Kaliningrad region —the territoryof opportunities